Message to Productivity Commission: drop recommendation to cut penalty rates

Thu 17 Sep 15 United Voice Union

United Voice today called on the Productivity Commission to withdraw its recommendation to cut the weekend penalty rates of two million people employed in the hospitality and retail industries.   

In Sydney this morning United Voice’s National Secretary Jo-anne Schofield and hospitality member Mary Quirk gave evidence at the Commission’s public hearing.

In its draft report released last month the Commission recommended that Sunday penalty rates that are not part of overtime or shift work be reduced to Saturday rates for the hospitality, entertainment, retail, restaurants and cafe industries.

Jo-anne Schofield says “United Voice has told the Productivity Commission that cutting weekend penalty rates means a pay cut for people who can least afford it.

“Given the lack of evidence that a cut in penalty rates would fundamentally change employment levels, this recommendation would cause hardship to working Australians without the anticipated benefits to the economy. 

“The push by employers to cut penalty rates is not about creating more jobs. This is about cutting the pay of working people and putting the money straight into employers’ pockets.   

“Hard working people like Mary Quirk deserve to get a decent wage for working on weekends.

“Penalty rates mean they can afford the necessities of life.

“If weekend penalty rates are cut people will have to work longer hours or leave these industries altogether.

“It’s time for a reality check on weekend pay.

“Despite the talk of a 24/7 economy, the weekend is still very important in Australia. Saturday and Sunday are not like Monday to Friday.

“The overwhelming majority of Australians believe people should receive fair and decent compensation when they give up their weekends to work.      

“As there is no credible evidence to substantiate the claim that there will be more jobs if weekend penalty rates are reduced but the cost of doing so will be devastating, the prudent course of action for the Productivity Commission is to withdraw this recommendation,” says Jo-anne Schofield. 

Nah. And removing penalty rates now will only deepen the recession, a recession Myers and Woolworths may not survive, increasing unemployment.

____ wrote on Sep 19^th, 2015 at 7:56am:


Yes rejecting industrial relation reform is a bad decision.

Message from the Productivity Commission to the United Voice Union.......

Unions and penalty rates cause unemployment....

ImSpartacus2 wrote on Sep 19^th, 2015 at 8:10am:


No one would get a wage cut.

But that has not been established.

The economy is in recession, wages growth is stalled so let us rob those on lower income of penalty rates. That will fix unemployment—what a puerile argument!

Demand is too low now!

Of course, all this is part of a push to get rid of the weekend and some of those now pushing for an end to penalty rates will end up ruing that!

Swagman wrote on Sep 19^th, 2015 at 8:15am:
Workers who used to get penalty rates no longer get get penalty rates == wage cut =Lose for workers, gain for business with profits in pockets and more unemployment because workers have less money to spend. 

Its that old adage. Believing business lies causes unemployment.

Swagman wrote on Sep 19^th, 2015 at 8:12am:


Paying people less for more work is a pay cut.