Employers, unions at odds over start date for new penalty rates.    


    The Australian
     March 7, 2017


Employers are pushing for evening and early morning penalty rate payments for fast-food workers to be cut within weeks but unions want the reductions delayed until July.

In its recent decision cutting Sunday and public holiday penalty rates, the Fair Work Commission also backed a reduction in the spread of hours that fast-food workers could claim penalty rates.   

The commission full bench said a 15 per cent penalty from midnight should be paid to 6am, not 7am, while a 10 per cent penalty should be paid from 10pm to midnight, not from 9pm.   

It said while a substantial proportion of award-reliant employees covered by the fast-food and restaurant awards were low paid, the changes would not reduce ­employee earnings “to a significant extent” and there was a need to have a simple and easy to understand award system.

The Australian Industry Group had wanted the 15 per cent penalty paid to 5am. In a new submission released yesterday, it said it would “need to revisit” the proposal while reserving the right to seek to pursue individual arrangements that would, by agreement, apply the 5am cut-off.

Both Ai Group and Restaurant and Catering Industrial told the commission that the reduction in available penalty hours should apply from March 27. United Voice and the Shop Distributive and Allied Employees Association said the reduction in penalty rate hours should be delayed until July.

United Voice said there was no material before the commission to enable an assessment of the ­impact of the changes on predominantly low-paid workers. It said businesses were accustomed to ­adjusting rates on July 1 each year, given the annual minimum wage adjustments.

The SDA said a substantial proportion of fast-food industry employees were low-paid, more likely to live in a low-income households and more likely to experience ­financial difficulties.   

“Any reduction in earnings for this group of workers, however small, is a matter which calls for reasonable and fair arrangements which allow employees sufficient opportunity to mitigate adverse effects,’’ it said. “The effect on employees of a reduction in late-night penalties must not be seen in isolation from the reduction in earnings, and the diminution in relative living standards, fast food employees will suffer by reason of the reduction in Sunday penalty rates.”

Public holiday penalty rates for full-time and part-time employees in the retail, hospitality, restaurant, fast-food and pharmacy sectors will fall from 250 per cent to 225 per cent on July 1. Sunday penalty rate cuts are expected to be phased in from July, with employers likely to push for reductions to be implemented by July next year.

Up the unions and to Hell with the employers - let them stay shut on Sundays.