Bosses plan to trim the penalty rates for stylists, beauticians

August 26, 2019
The Australian
Hair and beauty industry employers will today press their bid to cut the Sunday and public holiday penalty rates of thousands of employees, claiming they would use the reduction in labour costs to increase the hours of existing employees and potentially hire more staff.
But unions say hairdressers are already the “lowest-paid tradies” in Australia and success for employers in the case would embolden companies in other industries to seek penalty rate cuts.
The Fair Work Commission has convened four days of final hearings into the 22-month-old case with employers seeking to cut the pay of workers by up to $91 a week.
Employers want Sunday penalty rates cut from double time to time and a half, and public holiday rates reduced from double time and a half to double time and a quarter.
About 54,400 hairdressers and 35,400 beauty therapists work across the industry. Hourly minimum award rates for permanent staff on weekdays range from $21.41 to $24.66 and casuals receive $26.76 to $30.83. On Sundays, permanents are entitled to receive hourly pay ranging from $42.82 to $49.32, with employers seeking a new permanent rate of $32.11 to $36.99.
When the commission cut Sunday and public holiday penalty rates in the retail, hospitality and pharmacy industries in 2017, it announced penalty rates would be reviewed in the hair and beauty industry.
Australian Industry Group chief executive Innes Willox said there were “obvious similarities” between the hair and beauty industry and the retail and pharmacy industries.
Opening hours were often the same and businesses operated from shopping strips and shopping centres, with many required to open on Sundays due to their leasing arrangements.
Employers said the lower costs resulting from penalty rate cuts would mean many were no longer “unprofitable” and could increase trading hours, giving more work to existing employees and potentially hiring staff.
“For the same reasons that Sunday and public holiday penalty rates have been adjusted in the retail, hospitality and pharmacy industries, penalty rates need to be adjusted in the hair and beauty industry,’’ Mr Willox said.

“The existing penalty rates are no longer fair or relevant in contemporary workplaces.”
Hair Stylists Australia, the national hairdressers union backed by the Australian Workers Union, said employees already performed tough, physical work for low pay.
“Their day is spent on their feet dealing with potentially noxious chemicals,” said HSA spokeswoman Vanessa Watt. “They are frequently the victims of wage theft. And now the bosses want to slash their already modest pay. It’s disgraceful,” she said.
AWU national secretary Daniel Walton said the employer bid should be of concern to workers in other industries.
“Everyone thinks it won’t happen to me,” Mr Walton said. “No one thought they were going to lose penalty rates in retail hospitality many years ago, but now they’re gone. Now they’re coming for hairdressers.

“Everyone who works on the weekend is in the crosshairs. We have to hold the line here or we are going to see penalty rates slashed across the board.”
Newcastle hairdresser Jessica McMillan, 24, said the impact of the proposed penalty rates cuts on workers would be “devastating” given they were already low paid.
She said the cuts would force many salons to close on Sunday because employees would not want to work for reduced pay.