Wagga’s hospitality, retail, fast food and pharmacy workers will be hit by a reduction in Sunday and public holiday penalty rates, following a decision handed down by the Fair Work Commission this morning.
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Full-time and part-time retail workers will have their Sunday rates reduced from 200 per cent to 150 per cent, while casual employees will drop from 200 per cent to 175 per cent.
Sunday rates for full-time and part-time hospitality employees will fall from 175 per cent to 150 per cent, but the industry’s casual workers won’t be affected.
In the fast food industry, some full-time and part-time employees – classed as level one workers – will see a reduction from 150 per cent to 125 per cent, while casuals will be cut from 175 per cent to 150 per cent.
The Sunday pay cuts take effect from July, while Saturday penalties will remain the same.
Wagga Business Chamber president Andrew Bell was quick to welcome the rate reduction.
“It’ll be positive for business overall, although it may make it harder for businesses to retain staff on Sundays,” Mr Bell said.
Jardine's Cafè co-owner Melissa Illsley has also welcomed the changes.
“I do believe the reduction in penalty rates will help generate business and smaller economies in rural areas,” she said.
Mrs Illsley decided against opening on Sundays shortly after opening her cafe in mid 2014, citing high penalty rates along with the need for a healthy work-life balance.
“I've been on both sides of the debate, working for 15 years as an employee within the industry and relying on penalty rates to bring home income for my family.
“But now that I’m an owner I can also see the bigger picture benefits.”
Meanwhile, local Labor figure Tim Kurylowicz said the changes would be devastating for Wagga workers who rely on penalty rates to make ends meet.
“Average incomes in the Riverina are well below the national average and we know for a fact that a lot of people have been using penalty rates to supplement their regular income,” he said.
“That suggests that if you want to decrease Sunday rates, that’s fine, but you need increase the other six days of the week.”
Mr Kurylowicz said the cuts would not be entirely positive for business.
“By reducing penalty rates, we’re cutting the amount of disposable income that people have to spend in Wagga’s businesses,” he said.
“When you cut people’s income, you actually hurt local business indirectly too.”
PENALTY RATES DECISION IN A NUTSHELL
Why were penalty rates reviewed?
Hospitality and retail sectors made applications to vary penalty rate provisions as part of the Fair Work Commission's four-yearly review of awards.
Which awards were reviewed?
Fast food, retail, hospitality and pharmacy.
What did the Fair Work Commission base its decision on?
The full bench spent 39 days hearing evidence from 143 witnesses. It also received 5900 submissions.
Which weekend penalty rates have changed?
Saturday rates in the fast food, hospitality, restaurant and retail sectors will not change and were found to be fair. Sunday rates for retail, fast food and some hospitality industries will be reduced by 25 to 50 per cent. The Fair Work Commission said Sunday rates should generally be more than Saturday rates, but not as high as they were in the past.
Who will gain the most from the changes?
Business groups have welcomed the cuts saying they will help keep businesses open on Sundays and help employ more staff. Big retailers including JB Hi-Fi and Myer will be among those to benefit most from the changes.
The Federal Government will be under less pressure from industry groups to intervene.
Unions, the ALP and Greens, on the other hand, will now push for cuts to penalty rates to be overruled by legislation.
Who will be hit the hardest?
Retail workers will take the biggest hit, while casual workers in hospitality will keep their existing penalty rates.
Retail workers (full-time and part-time) will see their Sunday penalty rates cut from 200 per cent (double time) to 150 per cent (time and a half). The rates for casuals will fall from 200 per cent to 175 per cent.
