Penalty rate cut ‘failed to create one new job’

Cuts to Sunday rates haven’t prompted business to give any extra hours to workers.

Council of Small Business Australia chief executive Peter Strong. Picture: AAP

Cuts to Sunday penalty rates had not created one new job or prompted business to give any extra hours to workers, admits the small business lobby, which has declared the heated political debate over the reduction in workers’ pay to be a “waste of time”.

Federal Labor has pledged to reverse penalty rate cuts within 100 days of assuming office if Bill Shorten wins the May 18 election.

Council of Small Business Australia chief executive Peter Strong said the net impact of the phased-in cuts by the Fair Work Commission had been minimal because they had coincided with above-­inflation increases in the minimum wage. “There’s no extra jobs on a Sunday,’’ he said. “There’s been no extra hours. Certainly, I don’t know anyone (who gave workers extra hours). It’s been just a waste of time.”

He also said he did not expect Labor’s proposal to allow more than one million casual workers to seek permanency after 12 months with the same employers to have much impact on business.

The Opposition Leader said the election was the last chance for three years for voters to “get wages moving” by electing Labor.

ACTU secretary Sally McManus welcomed Labor’s workplace policy proposals, including the penalty rate cut reversal.

CFMEU national president Tony Maher said Labor’s policy would be a “game-changer for mineworkers exposed to dodgy casual labour hire”.

“Under the Coalition, we have seen thousands of good permanent jobs in mining converted to precarious casual labour hire positions,’’ he said. “Many labour hire mineworkers are casual for years on end, being paid much less than permanents. This is wrong.”

Recruitment, Consulting and Staffing Association chief executive Charles Cameron welcomed Labor’s acknowledgment that some workers liked the flexibility that casual work provided.

“There is a reason less than 5 per cent of all casual employees, working as agency workers, choose to convert to permanent employment, when given the chance, including enjoying the benefits of higher pay and increased work flexibility,” Mr Cameron said.