Dnarever wrote on Dec 23
rd, 2010 at 12:37pm:
Looks like this employer coud afford to pay the correct penalty rates and did not require their workforce to subsidise the change for the interum period.
It is not compulsory to underpay if the company can afford the correct rate.
Most companies have no problem providing management their full bonuses, maybe they should stage them as well - 20% the first year etc?
There is no underpay, its paying the correct rate.
Its about applying the awards as they stand with their transitional provisions correctly and legally.
Its not about paying more than you should if you can, but if you pay under its all hell to break loose.
Many employers have paid the higher rate not because they can afford to, but because they have misunderstood the changes and if you underpay you will be raped by the fair work tribunal.
DNA, you obviously havent had to deal with the fairwork changes in real detail, but its a mine field. My payroll staff almost made the same mistakes these others have. We looked at implementing without the transition and it was going to cost about $60k a year more.
Can we afford it, well yeah, it wont send us broke. Will our staff work any better, provide better service and look after the best interests of the business as a result, not on your life.
You spead small increases here and there in allowances without being able to take in the reductions at the same time spead over a decent sized workforce the amounts add up.
You should always meet your obligations, and only pay higher for selected staff who perform at a higher level.