Sunday penalty rates on the chopping block as Fair Work Commission considers plan for flat weekend rates
February 16, 2016
Herald Sun
SUNDAY penalties are again looming large as a major election-year issue after the Fair Work Commission agreed to consider a plan for a flat weekend rate across key industries.
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A plan which would end inflated Sunday rates for retail and hospitality workers was part of a Productivity Commission report last year into possible reforms to Australia’s industrial relations framework.
A ruling from Fair Work Commission president Iain Ross has boosted the hopes business group advocating for change after allowing key chapters of the report to be submitted by employers.
The full bench of the Fair Work Commission is due to receive closing submissions on both sides of the argument by April 1 with five days of hearings to begin from April 11.
Opposition employment spokesman Brendan O’Connor said the Government had set up the Productivity Commission review to give them cover for and ideological attack on penalty rates.
Mr O’Connor said the Fair Work Commission decision to consider the proposed cuts was the “final stage of the Government’s stealth attack”.
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“Malcolm Turnbull pronounced the death of the weekend, claiming that lower penalty rates are an inevitable part of a seven day economy, but the reality is that seven out of ten Australians still work Monday to Friday,” Mr O’Connor said.
The Retail Council has backed the recommendation to align Sunday penalty rates for the retail and hospitality sectors with Saturday rates and has encourage the Fair Work Commission support the measure.
Restaurant and Catering Australia has argued Sunday surcharges did not allow establishments to meet the shortfall and most restaurants and cafes trade had traded at a loss if they open on Sundays.
The Turnbull Government has argued the responsibility for setting award wages and conditions, including penalty rates, sits with the independent tribunal and not the Commonwealth.
Unions such as United Voice and The Shop Distributive and Allied Employees’ Association are drumming up support for a campaign ahead of this year’s federal election.
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They are warning that thousands of Victorian retail and hospitality workers and their families would struggle to make ends meet if penalty rates were cut.