I was interested to see news coverage yesterday of consideration being given by Myer to close some stores on Sundays because of the high cost of penalty rates to the business. While Myer was part of the problem many years ago calling for Sunday trading, I am glad to see the company talking about the debilitating cost of penalty rates to efficient retail trade.
Retailers operate in a global economy. More and more our competitiors are worldwide. Just as politicians understand, and tell us, that Australia needs to be competitive on a global stage, they need to legislate to enable our businesses to be so competitive. The current penalty rate arrangements for weekend casual employees harms our productivity and sales.
I am certain that if newsagents and other small business retailers did not have to pay penalty rates for casual employees we would employ more people, improve customer service and sell more product and therefore pay more tax.
Read this: I support Nick Xenophon’s proposed penalty rate change.
It is not just the employers that are dis-advantaged, make no mistake, the employees are pissed about it as well, AND they know why…..
People want to shop 7 days a week, but most only want to work 9-5 mon to fri and they refuse to pay extra on a sunday or public holiday so something has to give, workers cannot have it both ways.
We either have 7 day trading where we have the same pay rate over the entire week or we continue on the loss leader approach to weekends.
In saying that as long as we have a labor Govt this is not going to happen, and we saw what happened to the others with work choices so it is a no go zone for the libs either.
KLLuke this is why I like Nick Xenophon’s bill so much. It directly addresses the issue.
No major political party is going to touch employment conditions, Nick can bat on as much as he likes as a senator but no one in Canberra is going to do anything in this climate as they fear what will happen come next September, maybe just maybe after that we get a clear winner and IF the libs get in we may see change as we have in the states but Labor is not going to “force” people to work sundays as long as the unions pull the strings.
I’m not agreeing with it but that is how I see it after the last few yrs.
While I don’t support Nick Xenophon’s bill, I do agree that some penalty rates are far too high.
FWA bears the brunt of blame for the current situation, due to its poor handling of the award modernisation process.
When trying to combine all state awards into one national modern award, FWA determined it would use the largest penalty rates found in any state award. For Sunday, this was a 100% penalty on top of the base wage rate. For many states that was a doubling of the penalty from a previous provision of 50%.
Despite a number of detailed submissions from employer groups on a number of provisions, that left employers worse off with no trade-offs to offset any decreased flexibility or increase in cost, FWA made very few alterations before implementing the modern award.
Luke,
The Liberal’s track record on small business is no better than Labor’s. Workchoices pandered largely to big business.
Nick’s bill won’t get a look in. Removing penalty rates altogether is just not palatable by either politicians or the electorate. A review, as is currently underway, of the award presents an opportunity to bring penalty rates back in line with what many states had before the award modernisation process. A direction from the Minister is more likely than Nick’s bill being passed. That is where our attention should be focused.
Please also write to your local member. We wrote to ours (who is Labor) highlighting the community service we provide to the electorate (people appreciate being able to get newspapers on Sundays and public holidays). His response was personal, direct and affirmative.
At the end the vote will be driven by the party room but the more ordinary members who get this message from us, the more chance it has of getting up.
Luke don’t hold your breath on the Libs or Nats helping small business, their track record is appalling – equal to Labor.