2015/07: Should Australia abolish penalty rates?





Introduction to the media issue

Video clip at right:
On March 24, 2015, Channel Nine News ran a report on a South Australian agreement which allows workers in a given workplace to swap penalty rates for pay rises. If you cannot see this clip, it will be because video is blocked by your network. To view the clip, access from home or from a public library, or from another network which allows viewing of video clips.


What they said...
'Penalty rates for 60 staff on Good Friday, Easter Sunday and Monday mean it is not profitable'
Janine Livingston, Best Western Hobart, general manager

'Australians are being subjected to a false and misleading campaign about penalty rates by employer groups in the lead up to Easter...The share of business income going to wages in retail and hospitality has fallen in recent years'
Ged Kearney, president of the Australian Council of Trade Unions

The issue at a glance
Over the 2015 Easter long weekend, the Australian Chamber of Commerce and Industry encouraged retailers and restaurateurs to take part in a publicity campaign against penalty rates.
Businesses were advised to put up posters in their shop windows as part of their Small Business: Too Big to Ignore campaign. The posters read: 'We're sorry that we will be closed. We'd like to be open to serve you. We'd like to give local people jobs. But the penalty rates are too high.'
On March 24, 2015, it had been announced that the Shop Distributive and Allied Employees Association (SDA) has reached an agreement with South Australian business groups for cuts to weekend and public holiday penalty rates for shop workers.
South Australia's chamber of commerce, Business SA, said it had agreed with the union on a 'template' enterprise agreement that retailers can use to seek agreements with employees, allowing businesses to open on Sundays and public holidays.
Meanwhile, the fate of penalty rates in Australia is currently under review on two fronts - through the Fair Work Commission and via a government-instigated Productivity Commission review.