Labor out to block penalty rates changes with amendment to Fair Work Act

LABOR will move to ban any reduction in penalty rates if a worker’s take home pay is negatively affected.

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LABOR will move to ban any reduction in penalty rates if a worker’s take home pay is negatively affected.

In an effort to block last week’s Fair Work Commission’s decision from taking effect, the Federal Opposition will give notice of its intention to introduce changes to the Fair Work Act, which would effectively create a new fairness test.

Labor leader Bill Shorten has written to Prime Minister Malcolm Turnbull imploring the Government to work with the Opposition on the issue.

“A decision not to intervene is a decision to endorse the proposed cuts to pay,” Mr Shorten said in the letter.

“There is no doubt that this decision will cause genuine financial hardship. It is simply unacceptable to reduce penalty rates without compensation.

“That should be the basis for acting, if nothing else convinces you.”

Mr Turnbull and business groups have said the decision of the independent umpire should be respected.

The Government has been quick to point out that during last year’s Federal Election campaign, Mr Shorten promised to respect the Commission’s decision.

It also highlighted that in 2013, as Workplace Relations Minister, Mr Shorten amended the Fair Work Act to require the Commission to review penalty rates as part of the four yearly review process.

“The amendments that I made in 2013 were intended to ensure the FWC took into account ‘the need to provide additional remuneration for employees working outside normal hours, such as employees working overtime or on weekends’,” Mr Shorten said in his letter to the PM.

“We know that at least 600,000 people will be hurt by this pay cut, and the brunt of this decision will be borne by low income earners.

“A significant majority of those affected will be women, so this pay cut will also exacerbate the gender pay gap.”

Australian Council of Trade Unions president Ged Kearney said Mr Turnbull had a chance to “act for workers”.

Finance Minister Mathias Cormann said the Government had “absolutely no reason to disagree or second-guess” the Commission’s decision.

“I did not conduct the review, the Government did not conduct the review; the Fair Work Commission conducted the review,” he told Sky News

Over the weekend, the Opposition was still working out details of the Bill it would put before Parliament but said it would ensure penalty rates for Sundays and public holidays were protected “now and into the future”.

It could be introduced later this week but may not be ready in time. The Opposition does not have the numbers to pass the Bill in the Lower House without support from the Government.

The Greens’ industrial relations spokesman Adam Bandt took credit for Labor committing to “backing up their words with action”.

“We have successfully pulled Labor around from supporting the FWC decision just a few months ago to now copying our legislation to stop these devastating cuts,” he said.