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Now is the time for small business retailers like newsagents to engage on penalty rates

With the new Malcolm Turnbull led government retailers including newsagents have a moment in time opportunity to engage on matters important to us, such as the issue of weekend penalty rates.

The new PM had spoken about the issue and we know the Productivity Commission is working on a report on this and employment terms more broadly.

I urge newsagents to leverage the opportunity of the new Turnbull government by letting local members and appropriate ministers know your views on penalty rates. The PM has said he wants to have an intelligent conversation on a range of matters. To our small businesses, weekend penalty rates are one such issue.

While some prefer shrill argument on the matter, the reality is there is plenty to discuss calmly and based on facts – and that is what is needed here. Calm discussion. Not in the media. Not by politicians and acolytes who refuse to consider any alternative to their view.

No, we need rational discussion on what could be, for the benefit of everyone.

My concern is specifically around weekend penalty rates. I’d like to see them pulled back to a 25% premium on top of regular hourly rates. I think 25% is fair. The current model is especially unfair in businesses where retailers have little control over the price of what they sell.

The adult casual employee hourly rate is $23.74 plus superannuation. Businesses have on-costs such as workcover and other overheads that need to be considered when assessing the cost of employees.

The Saturday rate for this casual employee is $25.64 while the Sunday rate is $37.98. The public holiday rate is $52.22.

I would prefer a flat penalty rate of $29.67 for Saturdays, Sundays and public holidays.

I know of many newsagents who would roster employees on for Sundays and public holidays if there was a lower cost of penalty rates – rather than working themselves. I also know of newsagents who would increase rostered hours if the hourly cost was less. Both examples show where people not getting shifts today would benefit.

There will be those who say such a move is not fair to the workers. I can understand that view since I am proposing we take something away they have today. However, $52.22 for a public holiday is unjustified in my view. I think it reduced the opportunity for more to get work. For many I speak with there is no burden of working a public holiday. Further, there is no bonus revenue windfall for the retailer, no extra capacity to pay a higher hourly cost.

Now is a good time to make the case to your local member of parliament and to the various new ministers who will consider the new government’s position on this matter.

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