Federal election 2016: no case made to slash penalty rates, Shorten says

Bill Shorten says the case has not been made for a reduction in weekend loadings.

Opposition Leader Bill Shorten says the best protection for low-paid workers is Australia’s system of conciliation and arbitration.

Bill Shorten has stood by his defence of the industrial umpire in determining penalty rates for low paid workers, saying the case has not been made for a reduction in weekend loadings.

“The case hasn’t been made to slash penalty rates in this country,” the Opposition Leader told 5AA radio in Adelaide. “The best defence workers have is a strong independent umpire. That is the best protection.”

Mr Shorten said the Greens position to legislate in defence of penalty rates was “dangerously naive” because it would open the door to a future Liberal government to unilaterally cut penalty rates through the parliament.

“All they are doing is loading the gun for a future conservative government if there is one, to cut penalty rates,” he said. “The best protection for low paid workers is our system of conciliation and arbitration.”

Mr Shorten said there 61 Liberal candidates and members of parliament who had said they were in favour of cutting penalty rates while Labour had a 128 year history of standing up for workers.

When asked about what actions Labor could take if the industrial umpire made a reduction in penalty rates, Mr Shorten played down the prospect as a hypothetical.

He has vowed to make a submission to the industrial umpire if he wins government, saying the submission would be backed by the power of his office if elected Prime Minister on July 2.

Professor Andrew Stewart at the University of Adelaide confirmed there was a case before the Fair Work Commission which could affect and possibly lower penalty rates for workers in the retail and hospitality industries.

However, Professor Stewart — an expert in industrial relations law — said any decision to change weekend loadings would be likely made after the election on July 2.

Professor Stewart clarified that even if Labor made a submission to the FWC to defend penalty rates, the final decision would still be made by the industrial umpire.

He sounded a more severe warning about legislating to protect penalty rates. Professor Stewart said this was problematic both in terms of trying to negotiate such a move through the Senate and in the sense that it would detract from the standing of the FWC.

“They could try and pass legislation ... the first problem with that is, whoever is in government after the next election is very likely to have to deal with a senate they don’t control,” Professor Stewart told Adelaide radio.

“It’s highly likely that Nick Xenophon is going to be part of any balance of power ... Right away a Labor government ... would have difficulty getting legislation through the Senate.”

Professor Stewart said there were a lot of problems with legislating to defend penalty rates and canvassed a range of possible problems such as whether it would lead to other award conditions being altered through legislation.

“It really detracts ... from having an independent umpire at all,” he said.