The problem with public holidays
WHO could be upset about a designated day of sleeping in, sun, and government-sanctioned laziness? Lots of people.
THEY’RE the days we most look forward to, meant for sleeping in, firing up the barbie with friends or spending guilt-free hours doing not much at all.
But in a stark departure from the traditional Aussie attitude towards a well-earned day off, thousands are up in arms about upcoming public holidays.
They’re mainly business owners and they’re seriously dark on days off.
According to the Australian Industry Group, every leisurely free holiday we’re granted is expected to cost the national economy between $3 and $4 billion, and for business owners the personal costs are enormous.
Some Melbourne restaurants stand to lose tens of thousands this Friday as the Victorian Government introduces its new AFL grand final eve public holiday, and the penalty rates that come with it.
Melbourne hair salon owner Sofia Basile said, in a submission to the state, the impact on her business would be “enormous”.
“I will be forced to close three salons and only able to operate one,” she wrote.
“I will be forced to work myself because the labour costs will be extremely high and I cannot afford for other staff to be rostered on.
“Businesses are struggling enough as it is and with this public holiday announcement you are effectively taking away revenue from one of he busiest trading days of the week.”
In another submission, a Victoria plaster supplier said the one day would cost the business almost $10,000 in staff wages alone, and that it would impact construction deadlines and lead to significant loss of revenue.
But it’s not just business owners who miss out.
Victorian Employers Chamber of Commerce and Industry Chief Executive Mark Stone says the additional costs will also impact the healthcare, local government and community services sectors, and ultimately cost jobs.
“On grand final Friday, the cost to pay Victoria’s almost 2 million full time employees not to come to work could reach $543 million for the day,” he said in a statement.
“Over half a billion dollars could pay the salaries of more than 6,500 Victorians for a year. This waste strikes at the heart of efforts to improve the competitiveness of Victorian business and grow jobs.”
With businesses being forced to run at a cost of 250 per cent in wages thanks to public holiday rates, Restaurant and Catering Australia CEO John Hart explains, there’s a real possibility that those who don’t have to work won’t be able to enjoy their free day off the way they planned.
“What inevitably happens is what people actually want to do on their public holidays, like go out and eat, isn’t possible because the business is shut,” he tells news.com.au.
“Yes public holidays are good and fantastic for some people, so don’t punish the businesses that want to be open on public holidays. Let’s have that public holiday in a way that allows those businesses to be open, and allow public holiday takers to have lunch without the poor butter that’s going to be serving you baring these enormous costs. If a business isn’t going to make money when they open up, then they’ll choose not to open.”
Though the argument against public holidays has flared up ahead of this coming Friday, it’s not just about that for Mr Hart. He’s been fighting this battle for years and doesn’t want to come across as some sort of Grinch.
“There’s public holidays and public holidays,” he says.
“The real public holidays, defined in the national employment standards, are the Christmas Days, the Easter ones, Australia Day and the Queen’s birthday. The ones you would naturally think of are the public holidays, there’s 11 of them, and they’re reasonable.”
Mr Hart would like to see the public holidays stripped back to the basic 11 nationally, and the states unable to enforce penalty rates if they wanted to add additional days.
“39,000 people are being displaced that would otherwise be working if these extra public holidays were paid Saturday rates,” he said.
Chief executive of Australian Industry Group Innes Willox says the disparity in public holiday schedules across the states was hurting businesses and the national economy.
“Lack of synchronisation across the country is certainly costly and inconvenient, especially for businesses with a national presence or who operate across state borders,” he said in a statement to news.com.au.
“Some saving could be realised with a greater alignment of holidays.”
This Friday’s public holiday, which is just for Victoria, has been flagged by the AFL as a chance “for people outside the CBD to come in and enjoy what is a wonderful day”.
Thousands are expected to descend on the city, including around 20,000 West Australians.
Ahead of the weekend, businesses have been reminded to pay penalty rates on AFL grand final eve.
Fair Work Ombudsman Natalie James said employers should check what they were required to pay.
“Any underpayments have to be rectified, which means employers can end up facing bills for back-payment of wages they weren’t budgeting for,” Ms James said on Monday.