Page 1213 - Week 04 - Wednesday, 6 April 2016
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Those opposite seem to be of the opinion that penalty rates are a cash grab by overpaid workers. The truth is, though, if you are a single parent who relies on public transport, there are costs associated with work that put you at a significant disadvantage. Working on a Sunday or a public holiday could mean using a taxi or Uber to get to and from work. It could mean hiring a babysitter or looking after children while you are there. These are very high costs that special rates help to cover and could be the difference between taking home your standard hourly wage after costs and what could be in real terms working for no personal benefit.
Qualitative analysis has been commissioned by the McKell Institute to determine the broader impact that any change in penalty rates is likely to have on these employees that receive them and the communities in which they live. Overwhelmingly, the McKell Institute survey found that any reduction in penalty rates was likely to result in a substantial negative impact on both the emotional wellbeing and financial security of workers.
Not surprisingly, penalty rate cuts are expected to result in a reduction in disposable income, resulting in less money being available for one-off payments or discretionary spending. Most respondents indicated they would need to reduce their expenditure on items and activities, including paying bills, dining out, social activities in their area, tourism events, home renovations, extracurricular activities for their children, insurance products and minor leisure items.
As a former small businessperson, I understand the nature of small business. I understand trying to grow a business, and I know that success can occasionally be elusive. However, I also understand that well-paid workers are happy workers, that penalty rates encourage harder work during difficult hours and that we should compensate fairly for working those hours. Penalty rates drive spending. For these reasons the Assembly should endorse this motion.
MR GENTLEMAN (Brindabella—Minister for Planning and Land Management, Minister for Racing and Gaming and Minister for Workplace Safety and Industrial Relations) (4.29): I thank Mr Hinder for bringing this important motion here today.
The Fair Work Commission is currently undertaking a four-yearly review of modern awards on the matter of penalty rates in a number of awards in the hospitality and retail sectors. On 21 March I wrote to the Fair Work Commission on behalf of the ACT government to express our opposition to any change in the penalty rates in the hospitality and retail awards which are now under review.
Various business and employer organisations, including the Australian Chamber of Commerce and Industry, the New South Wales Business Chamber and Australian Business Industrial, have also filed written submissions in the proceedings. Amongst other things, some of their submissions seek to reduce the public holiday penalty rate for full-time and part-time employees employed under the restaurant award and the retail award from 250 per cent to 200 per cent on public holidays; to reduce the public holiday rate for casual employees under the restaurant award and retail award from 250 per cent to 125 per cent, including the casual loading; and to reduce the Sunday
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