Lainie Anderson: The Fair Work Commission got it right in reducing Sunday and public holiday penalty rates for some service workers

REDUCING Sunday and public holiday penalty rates for some services sector workers is the right decision, says Lainie Anderson.

• Penalty rates cut: Fair Work Commission decision handed down
• Political fight over Sunday penalty rates cut
• Penalty rates reduction will allow more hiring, say employers
• Opinion: Penalty rates belong in era of horse and buggy

THE Fair Work Commission got it right: Sunday and public holiday penalty rates should be reduced.

Forget the 1950s when national unemployment was two per cent and families popped on their finest clobber to commune with the Lord on Sunday.

In 2017, a perfectly-made espresso is about as close to a religious experience most of us get on the Sabbath.

And if anyone is praying, it’s most likely to be the hundreds of thousands of Australian kids calling on the Gods of retail and hospitality to help them beat youth unemployment rates of around 12 per cent.

It is, therefore, entirely appropriate that independent FWC president Iain Ross – after an exhaustive review of the pros and cons – has announced new Sunday penalty rates to reduce the salary burden on employers and make them more likely to open longer and employ more.

Let’s not forget, Sunday penalty rates have not been removed; they have merely been reduced – and modestly at that.

Those reductions vary across the retail, hospitality and fast-food industries and have also been tailored depending on whether the worker is casual, full-time or part-time.

Protesters outside the Fair Work Commission offices in Melbourne on Thursday. Picture: Alex Murray/AP

For example, full and part-time retail workers have had their Sunday penalty rates reduced from 200 per cent to 150 per cent of the weekday pay rate.

For casual retail workers, Sunday pay has been cut from 200 per cent to 175 per cent of the weekday rate.

Sounds like a reasonable compromise to me.

In the weeks and months ahead we will hear opposing arguments – Labor and the unions will insist that the lowest-paid workers are getting kicked in the guts at a time when wage growth is almost non-existent.

The Liberals will insist that the ruling of the independent umpire should be accepted.

Like those fighting for the status quo, I sympathise with anyone who is battling to make ends meet and will be worse off under these changes.

Mr Ross expressed the same sentiment on Thursday, recommending a phase-in period to help minimise any pain.

But as our economy becomes ever more reliant on service industries in place of manufacturing and resources – and small bricks-and-mortar businesses increasingly compete with 24/7 online stores – it’s time to calmly and systematically try new ways to stimulate growth.

Nowhere is that more important than in South Australia, where businesses are battling to survive despite huge electricity costs, and people who want to work are cursed by unemployment or underemployment.

Workers protest in Brisbane on Thursday after the decision to reduce penalty rates for workers.

In all the comments I heard this week, the most interesting were from former ACTU boss and now Tourism Accommodation Australia chairman Martin Ferguson, who urged his old union colleagues to “step back and take a cold shower” over their outrage at the announcement.

Mr Ferguson said the new rates meant full and part-time staff would be cheaper to roster on than casuals on Sundays and public holidays, which could mean more permanent roles being offered.

He said this offered greater surety for workers through superannuation and holiday entitlements, and boosted the reputation of hospitality as a long-term career option.

Likewise, Small Business Ombudsman Kate Carnell said the experience in New Zealand was that cutting penalty rates led to more businesses opening on Sundays and offering more hours to workers.

Let’s hope the Australian experience is similar. The challenge for business is to prove that this is not a huge long-term loss for Australian workers – that over time their sacrifice will be worth it.

Business owners must share the love by offering more hours or hiring more staff to improve customer service, or expect to feel our wrath.

“Trickle down” should mean just that – the wealth filters down and isn’t simply pocketed at the top.

AND ANOTHER THING ...

■ You can’t make this stuff up. A man charged over a violent attack, and under strict bail conditions that include regularly checking in with authorities and wearing a monitoring device, is granted permission in the District Court to attend the Green v Mundine boxing fight. That’s despite earlier being given a firm “No” from the Department for Correctional Services. Half an hour after the bout at Adelaide Oval, the man removes his tracking device and flees. He’s still on the run, so his trial has been abandoned and a new trial set for next year. That’s if he’s ever found.

■ Had the pleasure of catching up with our Vietnamese-born Governor, Hieu Van Le, and wife Lan Le during the week. What a generous, joyful couple – they do SA proud.