Coalition to oppose ALP bid to reverse penalty rate cuts

Craig Laundy says looming penalty rate cuts “pale into insignificance” when compared to union deals with employers

Prime Minister Malcolm Turnbull and Workplace Minister Craig Laundy. Picture: Britta Campion

The Turnbull government will oppose Labor’s bid to reverse looming penalty rate cuts, ­accusing Bill Shorten and unions of “hypocrisy”, given they struck workplace agreements that traded away penalty rates.

Labor will this week seek to bring on a bill in parliament to ­reverse the second round of annual penalty rate cuts that the Fair Work Commission said would apply from July 1.

Workplace Minister Craig Laundy said yesterday Mr Shorten was “running roughshod over the independent umpire he once respected”.

“The Fair Work Commission’s decision pales into insignificance compared to virtual abolition of all weekend penalty rates Bill Shorten signed off to in his union leader days,’’ he said.

Mr Laundy said Mr Shorten’s “mates” at the shop assistants union had been slashing penalty rates on Saturdays and Sundays for young workers for years.

“For example, a 24-year-old uni student who started weekend work at McDonald’s three years ago would by now be around $15,000 worse off than if they’d been paid under the award,’’ he said. “At Big W she’d be around $13,400 worse off or around $9500 at Woolies. At that age, it’s a lot of money. A chunk off their HECS debt, their first car, or even a good start towards a home ­deposit.

“When the independent ­ump­ire Labor set up decides to align Saturday and Sunday penalties over many years in just four awards, Bill Shorten pretends to be outraged. It’s hypocrisy at its finest.”

Opposition workplace relations spokesman Brendan O’Connor said if Malcolm Turnbull and Coalition MPs did not want penalty rate cuts, they would vote for Labor’s bill.

“But given Turnbull voted for WorkChoices and the junior minister (Laundy) as a company ­director has always benefited from reduced penalty rates, we won’t hold our breath,’’ he said.

According to ACTU calculations, a level-six cook who works Sunday to Thursday every week will be $1000 worse off — $19.24 a week — over a year.

ACTU secretary Sally McManus said the tax changes would worsen inequality. “They’ve given themselves a $7000-a-year tax cut while people working in shops, cafes, take­aways and chemists get only $10 per week,’’ she said.

“Turnbull’s cuts to the wages of people who have to work weekends to pay their bills are unfair and undeserved. We will continue the fight to restore penalty rates and win fair pay for people in these industries for as long as it takes.”