Dnarever wrote on Mar 22
nd, 2016 at 7:40pm:
Swagman wrote on Mar 21
st, 2016 at 7:43am:
(outside the market compulsory) Penalty rates keep unemployed people from getting gainful employment.
Labor are totally "out of touch".
Penalty rates have been part of the market for many decades and they have no impact on employment numbers.
For chrissake, to be part of the market, penalty rates have to respond to demand and supply. They don't.
A market is just a collection of buyers and sellers. In a labour market 'Employers' buy labour whilst 'Employees' sell labour.
Penalty rates
are fixed. They
are compulsory. They are
imposed by regulation, which is
outside the market.
If there is a lack of supply of labour on Sunday, then the market rate for wages will go up as employers will likely offer higher pay to attract the labour.
That is a market.
Likewise in a labour market if there are lots of unemployed workers (an over supply of labour) then the price of labour will come down (unless an outside the market force like GOVT regulation or Collusion by Unions) interferes with the market.
In a market, if the price of product is too high, demand for the product decreases.
In a labour market, if the price of labour is too high, then demand for labour decreases. People become
unemployed.For some businesses the price of labour increased by penalty rates on Sunday is too high, so their demand for labour drops on Sundays. That leads to unemployment.
Unemployment is the price society pays for fixed, outside the market penalty rates. Simple but unpalatable fact

This price, used to be affordable say 40 years ago or so. Australian business arguably had the productivity and competitive edge 40 years ago for these IR extravagances but times have changed.