Opposition leader Tony Abbott encourages retail on future of penalty rates under a Coalition government

    by: EWIN HANNAN, Industrial Editor
    From: The Australian
    May 01, 2013

   

EMPLOYERS will seek the support of an Abbott Government to back a new bid to cut penalties paid to tens of thousands of workers after the Opposition leader opened the way for the coalition to support the push if it wins the September 14 election.         

The Australian Retailers Association yesterday revealed it would make a new application to the Fair Work Commission next year to cut the penalty rate for Sunday work from 100 per cent to 50 per cent and was "aiming to get support" from the Federal Government.

The Australian understands employers, working on the assumption that the coalition will win the election, have been privately lobbying senior Opposition figures to commit to having Commonwealth lawyers formally intervene in the commission in support of the application.

Employers yesterday were buoyed by Mr Abbott's comments on Monday leaving open the prospect of a Coalition Government intervening in favour of employers.


"I am confident that if the government were to back, for argument's sake, applications to the Fair Work Commission for adjustments in this area it may well be successful," Mr Abbott told a public forum.    

Opposition workplace relations spokesman Eric Abetz said yesterday that the commission had responsibility to make and vary modern awards.

"It's important that the Fair Work Commission look objectively at these matters and strike a balance between the needs of workers, their employers and the national interest," he said.

"Governments of all persuasions have conventionally made submissions in significant cases before the umpire and that is something that will continue as it has in the past regardless of who wins the next election."

Senator Abetz highlighted comments by former cabinet minister Martin Ferguson who said last year that weekend and public holiday "penalty on penalty" issues were a major obstacle for the hospitality industry in challenging economic times.

"The interaction between labour costs and job growth is something that the Fair Work Commission are required to consider under the laws written by Labor," Senator Abetz said.

Russell Zimmerman, the association's executive director, said his organisation would make a new application to cut penalty rates when the commission started its broad review of modern awards next year.    

In a decision in March, the commission, as part of a narrower transitional review, rejected an initial bid by employers to cut penalties, describing their evidence as "at best, limited". It said employers could make fresh applications during next year's broader review, but 'we would expect them to be supported by cogent evidence".

Mr Zimmerman said detailed evidence, including witnesses, would be provided in support of the claim. "We would be intending to make a submission again in 2014 because of what the commission has said," he said.

Mr Zimmerman said he would seeking the support of the Commonwealth for the application, regardless of the election result. However, the Gillard Government is opposed to the employer position, and is proposing to "protect" penalty rates in legislation.    

ACTU president Ged Kearney said the coalition needed to spell out exactly what it planned to do to penalty rates if elected so workers had a clear choice at the election.

"It is a huge concern for workers that Mr Abbott appears to be backing the big employer groups and their war on penalty rates," she said.

Workplace Relations Minister Bill Shorten said Mr Abbott had indicated "he could pressure the independent umpire to strip back penalty rates if in government"    

"Tony Abbott must immediately rule out ever supporting employer claims to reduce penalty rates or undermine the pay and conditions of Australian workers," he said.

Asked directly yesterday if a coalition Government would make a case to the commission to adjust penalty rates, Mr Abbott repeated his often made statement that the pay and conditions of workers were "safe" under the Coalition. "We trust the processes of the independent umpire to try and ensure that wages and conditions are properly set in a way that will maximise employment," he said. "That's the way it is, that's the way it should be, that's the way it will be under us."