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Fair Work Commission cuts Sunday, public holiday pay rates

RETAILERS and fast food outlets are planning to hire more staff in the wake of a Fair Work Commission ruling to slash Sunday penalty rates for thousands of workers.

Fair Work cuts penalty rates for thousands of workers

RETAILERS and fast food outlets are planning to hire more staff in the wake of a Fair Work Commission ruling to slash Sunday penalty rates for thousands of workers.

In a shock ruling today, the FWC cut Sunday penalty rates for permanent workers from 175 per cent to 150 per cent in the hospitality industry, 150 per cent to 125 per cent in the fast food industry and from 200 per cent to 150 per cent for workers in the retail sector from July 1.

Penalty rates for casual retail workers will drop from 200 per cent to 175 per cent

Unions warned the cuts would cost low-income workers up to $6000 a year but employer groups said they could now afford to employ more workers on weekends.

In a full bench decision, the FWC said the wage cuts were “likely to have some positive employment effects’’.

It said the existing level of Sunday penalty rates have led employers to restrict trading hours, staffing levels and services.

Sunday penalty rates have been cut by the Fair Work Commission. JUSTIN BRIERTY
Sunday penalty rates have been cut by the Fair Work Commission. JUSTIN BRIERTY

“The evidence also supports the proposition that a reduction in penalty rates is likely to lead to increased trading hours, an increase in the level and range of services offered on Sundays and public holidays and an increase in overall hours worked,” FWC president Iain Ross said on Thursday.

However, Mr Ross noted Sunday penalty rates would still be higher than for Saturdays.

“Generally speaking, for many workers, Sunday work has a higher level of disutility than Saturday work,” he said.

“Though the extent of the disutility is much less than in times past.” Sunday rates for hospitality workers will fall from 175 per cent to 150 per cent while those for fast food workers will drop from 150 per cent to 125 per cent.

Executive director Australian Retailers Association Russell Zimmerman welcomed the ruling and said it would allow businesses to employee more staff.
Executive director Australian Retailers Association Russell Zimmerman welcomed the ruling and said it would allow businesses to employee more staff.

Retail workers face a reduction from 200 per cent to 150 per cent. Pharmacy workers who work from 7am to 9pm will see their penalties cut from 200 per cent to 150 per cent.

Mr Ross said the changes would provide greater consistency to penalty rate settings in the hospitality and retail awards.

The Australian Retailers Association says reducing Sunday penalty rates from double-time to time-and-a-half will mean retailers can hire more people on their busiest trading day of the week.

Executive director Russell Zimmerman said many retailers had been forced to close their doors on Sunday because of high overheads.

They can now consider hiring more young workers.

“Reducing Sunday rates from double-time to time-and-a-half will give employers approximately a four to five per cent reduction on wages, which they will be able to reinvest in employing more staff, increasing employment in the retail industry,” he said in a statement.

Business sector lawyer Nigel Ward said the decision was the best outcome for Australian businesses.

WHAT IT MEANS FOR YOU

HOSPITALITY AWARD WORKERS

  • Sunday penalty rate for full-time and part-time employees reduced from 175 to 150 per cent
  • There will be no change to the Sunday rate for casuals which will remain at 175 per cent.

FAST FOOD AWARD WORKERS

  • Sunday penalty rate reduced for level one employees from 150 to 125 per cent for full-time and part-time employees and from 175 to 150 per cent for casuals.
  • No change to Sunday penalty rates for level two and three employees in that award.

RETAIL AWARD WORKERS

  • Sunday penalty rate for full-time and part-time employees reduced from 200 to 150 per cent.
  • Sunday rate for casuals will be reduced from 200 to 175 per cent.

PHARMACY AWARD WORKERS

  • Sunday rates for work performed between 7am and 9pm reduced from 200 to 150 per cent.
  • Sunday rate for casuals will be reduced from 200 to 175 per cent.

PUBLIC HOLIDAYS

  • Reduced public holiday penalty rates for hospitality and retail workers, but not for clubs
  •  Public holiday penalty rate for full-time and part-time employees will be reduced from 250 to 225 per cent.
  • The rate for casuals will be 250 per cent.

START DATE FOR CHANGES

  • Public holiday changes will start from July 1.
  • Early/late night work loadings in the restaurant and fast food awards will take effect in late March.

“We spoke to a lot of small shops when we prepared the evidence and pretty much everyone said to us ‘I’m the owner of the shop and if I have to open on a Sunday I’ve got to come here and work myself, I’ve got to work seven days a week’,” Mr Ward told reporters.

“It was a realistic approach to changing penalty rates in the modern era. “It will mean extra hours for people on a Sunday.”

Australian Council of Trade Union president Ged Kearney said workers on minimum wages relied on weekend penalty rates to survive.

“This is a bad day for workers in this country,” she told reporters. Australian Retailers Association executive director Russell Zimmerman said the decision would grow the sector.

“Reducing these rates from double-time to time-and-a-half, will increase retail growth nationally and reduce the unemployment rate in Australia,” he said in a statement.

Ms Kearney said that was a “complete furphy”.

“People whose pay is going to be cut ... will simply have to work more hours to make up that take-home pay,” she said.

The ACTU estimates the FWC decision will cost low paid workers up to $6000 a year.

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Original URL: https://www.dailytelegraph.com.au/business/fair-work-commission-cuts-sunday-public-holiday-pay-rates/news-story/e4f0ba95888774b0d505d38d4135187a