Sunday penalty rates: Labor introduces bill to stop changes as Malcolm Turnbull called the opposition ‘masters of hypocrisy’

SMALL business owners are already preparing to reap the rewards of Sunday penalty rate cuts with plans to open extra hours and hire new staff, as the Turnbull government accused Labor of being “masters of hypocrisy” over the issue.

The Sunday penalty rates topic dominated Question Time in federal Parliament. Picture: Kym Smith

• Sunday penalty rate cuts for thousands of workers
• Some business owners choosing to keep penalty rates

SMALL business owners are already preparing to reap the rewards of Sunday penalty rate cuts with plans to open extra hours and hire new staff, as the Turnbull government accused Labor of being “masters of hypocrisy” over the issue.

Penalty rates, which will be cut for hospitality and retail workers following a Fair Work Commission decision last month, dominated Question Time in federal Parliament, with Labor introducing a bill to try to stop the changes.

“You could fill a library with the quotations from Labor figures endorsing the Fair Work Commission,” Prime Minister Turnbull said.

The Sunday penalty rates topic dominated Question Time in Parliament. Picture: Kym Smith

Employment Minister Michaelia Cash accused Labor and the unions of being “masters of hypocrisy when it comes to penalty rates” after analysis showed the Rudd government oversaw similar cuts to hospitality and entertainment penalty rates.

Modernisation of penalty rates in 2009, when Julia Gillard was workplace relations minister, cut the Sunday award for NSW hotel workers by 25 per cent and public holidays by up to 50 per cent.

As the two sides of politics slugged it out, The Daily Telegraph rolled up its sleeves and visited the kitchens of restaurant and cafe owners on the front line of the penalty rates debate.

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On one stretch of Majors Bay Rd in Concord we found several proprietors who said the lower Sunday pay rate would allow them to open longer and hire more staff.

Steve Hadid at Maranello’s Pizza said he was hoping the penalty rate cuts would allow him to give his staff extra hours on weekends.

“I think small businesses will benefit the most,” Mr Hadid said.

Food bloggers Lydia Barakat and Nicole Kahlil support the rate cut. Picture: Justin Lloyd

Food bloggers Lydia Barakat, 28, and Nicole Khalil, 21, were eating out at Espresso Organica and said they supported the rate cut if it meant more businesses opening on weekends.

“There’s also such a demand for things to be open seven days a week. I’m so busy during the week and want to be able to go out on a Sunday,” Ms Barakat said.

Concord Caribbean Charcoal Chicken’s Charlie Yacoub said the penalty rate cuts would allow him to hire two extra staff at weekends.

“As an owner, the rate cut is great, but it’s also good for job hunters,” Mr Yacoub said.

Charlie and Simon Yacoub said he will be able to hire more staff. Picture: Justin Lloyd

However, Il Biscione Italian’s Alessandro Mandelli said he would still give his staff full penalty rates.

“It’s an easy way to say thank you for working weekends. Many businesses charge customers extra on weekends anyway so that makes up the penalty rates,” Mr Mandelli said.

Ms Cash said the Rudd government cut Sunday pay for South Australian cafe and restaurant workers by about 50 per cent, and public holiday penalties for permanent workers by 50 per cent while increasing it by 50 per cent for casuals, figures show.

Casual live performers had their Sunday penalty cut by 25 per cent as part of the ­simplification of awards. At the time, Ms Gillard said the process was “done not by me personally but by our industrial umpire”.

Prime Minister Turnbull accused Labor of being “masters of hypocrisy” over the issue. Picture: Kym Smith

Ms Cash said: “These reductions were not met with the fake outrage the Labor Party and the unions are now expressing over the most recent changes to penalty rates. Nor have we heard any outrage about the deals done by unions with big business to cut weekend rates under enterprise bargaining agreements.”

But Labor’s employment spokesman Brendan O’Connor said it was the Prime Minister “who was part of the government that introduced WorkChoices”.

“The fact remains the government is supporting a cut to people’s wages without any compensation,” he said.