The Latest News About Penalty Rate Cuts Has Somehow Upset Everyone
They changes will start to come into effect from July and the full impact will be spread over four years.
Remember that controversial penalty rate cut to the hospo, retail and fast food industries? Turns out it will start to come into effect from July and the full impact will be spread over four years. It’s a move that’s angered both sides of the debate. For businesses, that’s two years too many. For workers, it’s far quicker than they had expected.
The Fair Work Commission (FWC) handed down this decision — to gradually reduce penalty rates until 2020 — this afternoon. Workers in hospitality, retail and pharmacy will start feeling the impact in July with a cut of five percent. Public holiday rates will drop by 25 percent next month. The rate of cuts is expected to get steeper over 2018 and 2019.
The FWC acknowledged the sudden nature of these cuts, with less than a month before they start to take place. “It is appropriate that the first step in the transition be smaller than subsequent steps,” the FWC said in a document released today.
Retailers nationwide are angry at the decision to carry out penalty rate cuts over four years. Russell Zimmerman, head of the Australian Retailers Association, believes the cuts are not quick enough to start producing more jobs. “These sluggish arrangements will unnecessarily delay the creation of new retail jobs,” he told Guardian Australia.
In a press conference, Australian Council of Trades Unions secretary Sally McManus described the cuts as “devastating” and a loss for the lowest earners in the Australian economy. “This money goes to multinationals, to shareholders that are overseas, not back into the community.”
McManus says the cuts will lead to an average income of $70 less per week for affected workers. “This is a pay cut that workers can’t afford and don’t deserve.”
The ball is now in the Turnbull gment's court. They have 4 weeks to stop workers & their families getting a penalty rates pay cut #auspol
— Sally McManus (@sallymcmanus) June 5, 2017
Australians need a pay rise, not a pay cut. Our politicians can vote to protect our #penaltyrates
Pls watch and share #auspol pic.twitter.com/lQcw3tSqBy— Australian Unions (@unionsaustralia) June 5, 2017
Other affected unions, such as United Voice, have expressed their concern at how sudden the cuts are going to come into effect. The Labor opposition has introduced a bill which will halt any cuts to penalty rates. Bill Shorten has called on the Turnbull Government to overturn the cuts.
“Today’s transitional arrangements decision by the Fair Work Commission has confirmed the worst fears of workers,” he said. “The solution is simple — these cuts can be stopped if Malcolm Turnbull supports Labor’s legislation to do so.”
The decision to cut penalty rates was made by the FWC in February. Better make good use of those weekend shifts while you can.
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Feature image: Chewing Gum/Netflix.