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Sunday penalty rate cuts won’t mean less overall money in pay packet

WILL penalty rate cuts really mean you take home less overall pay on Sunday? See what your pay-packet will be this weekend.

Minister for Employment Michaelia Cash says the latest modelling debunks the Labor and union scare campaign on penalty rates. Source AAP
Minister for Employment Michaelia Cash says the latest modelling debunks the Labor and union scare campaign on penalty rates. Source AAP

EXCLUSIVE: Sunday pay for workers in retail, hospitality, fast food and pharmaceutical services will increase from this weekend, despite claims by unions and Labor that employees will be worse off, according to the peak business council.

The Australian Chamber of Commerce and Industry will today release modelling that shows the overwhelming majority of employees in the affected sectors will see a bump in take-home pay on Sunday despite a reduction to penalty rates as decided by the Fair Work Commission earlier this year.

News Corp Australia can reveal that only permanent level 1 fast food workers will see a $0.32 fall in their pay for a full Sunday shift.

Meanwhile shop assistants, store managers, pharmacy employees, cooks and casual fast food workers will all see more in their take-home pay — despite penalty rate cuts.

A level 6, grade 5 cook will be $10.34 better off per Sunday shift or $538 a year if they work every Sunday.

But the unions and Labor still dispute anyone will be better off as a result of the changes.

Chief Executive of the Australian Chamber of Commerce and Industry (ACCI) says pay will rise for most workers on Sunday. Source: News Corp Australia
Chief Executive of the Australian Chamber of Commerce and Industry (ACCI) says pay will rise for most workers on Sunday. Source: News Corp Australia

From this weekend the independent commission’s ruling to slash Sunday penalty rates from 200 per cent in some industries to 150 per cent or lower will begin being phased in over a three-year period.

However, paired with a 3.3 per cent award wage increase announced earlier this month their overall pay-packet for workers will be larger this Sunday.

Australian Chamber of Commerce and Industry CEO James Pearson said the figures showed the fear campaign around penalty rates was factually incorrect.

“The Fair Work Commission’s phasing of the penalty rates decision means that the 220,000 people affected by the changes — those who currently work Sundays on retail and hospitality awards — will see an increase in their pay from 1 July 2017, even on a Sunday,” Mr Pearson said.

“It is time the union movement came clean and ended their deliberate campaign of misinformation. It is time retail and hospitality industry staff are told the truth — they can expect a pay rise on 1 July.”

Australian Council of Trade Unions (ACTU) President Ged Kearney says penalty rate changes will leave 700,000 people worse off. Source: AAP
Australian Council of Trade Unions (ACTU) President Ged Kearney says penalty rate changes will leave 700,000 people worse off. Source: AAP

Employment and Workplace Relations Minister Michaelia Cash said the figures showed Labor’s campaign had “deliberately mislead the Australian people”.

“The adjustments to penalty rates will level the playing field for Australia’s small businesses so they can remain open on Sundays, serve customers and create jobs,” Senator Cash told News Corp.

“Unions and the Labor Party have deliberately misled Australians and are drowning in hypocrisy when it comes to the issue of penalty rates.”

Australian Council of Trade Unions President Ged Kearney said 700,000 workers would face a pay cut this weekend.

“We’ve spoken to many people who will face this pay cut, and often, they’re already struggling to get by,” she said.

“The Turnbull government is going to be causing real pain to many people, this weekend, and that’s just wrong.”

Leader of the Opposition, Bill Shorten (left) and Shadow Minister for Employment and Workplace Relations, Brendan O'Connor, speak with local business owner David Glover (right) during a visit to his Chemist in Sydney on Wednesday. Source: AAP
Leader of the Opposition, Bill Shorten (left) and Shadow Minister for Employment and Workplace Relations, Brendan O'Connor, speak with local business owner David Glover (right) during a visit to his Chemist in Sydney on Wednesday. Source: AAP

Labor leader Bill Shorten this week vowed to reverse the penalty rate changes if elected.

In March he said: “Courtesy of this government, on 1 July, a millionaire will get a $17,000 tax cut, but a retail worker will get a $77 a week pay cut. A retail worker on up to $40,000 will lose 10 per cent of their income.”

Yesterday he told News Corp: “Their penalty rates are being cut — which means they’re not getting what they deserve.”

Last week the SDA — representing retail and fast food workers — and United Voice — representing the hospitality sector — individually launched judicial reviews into the decision, claiming it would leave workers worse off.

CASUAL FULL DAY (8hr shift) RATES OF PAY THIS SUNDAY

Shop Assistant

2016-17: $311.04

2017-18: $313.28

Change: $2.24 better off

Store Manager

2016-17: $380.64

2017-18: $383.28

Change: $2.64 better off

Pharmacy Assistant

2016-17: $349.92

2017-18: $353.44

Change: $3.52 better off

Pharmacy manager

2016-17: $571.86

2017-18: $577.60

Change: $5.74 better off

Food/Bev/Kitchen attendant level 1

2016-17: $254.94

2017-18: $263.36

Change: $8.42 better off

Cook (L6, Grade 5)

2016-17: $314.86

2017-18: $325.20

Change: $10.34 better off

Fast Food worker level 1

2016-17: $272.16

2017-18: $273.12

Change: $0.96 better off

PERMANENT FULL DAY (8hr shift) RATES OF PAY THIS SUNDAY

Shop Assistant

2016-17: $311.04

2017-18: $313.28

Change: $2.24 better off

Store Manager

2016-17: $380.64

2017-18: $383.28

Change: $2.64 better off

Pharmacy Assistant

2016-17: $311.04

2017-18: $313.28

Change: $2.24 better off

Pharmacy manager

2016-17: $508.32

2017-18: $512.00

Change: $3.68 better off

Food/Bev/Kitchen attendant level 1

2016-17: $254.94

2017-18: $255.84

Change: $0.90 better off

Cook (L6, Grade 5)

2016-17: $314.86

2017-18: $315.92

Change: $1.06 better off

Fast Food worker level 1

2016-17: $233.28

2017-18: $232.96

Change: $0.32 worse off

*Source: Australian Chamber of Commerce and Industry

lanai.scarr@news.com.au

@pollietracker

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Original URL: https://www.dailytelegraph.com.au/business/sunday-penalty-rate-cuts-wont-mean-less-overall-money-in-pay-packet/news-story/59266cb1a1781d777d1f874329b411d6