The instant analysis world we now have thanks in part to social media has seen the decision of the Fair Work Commission to cut Sunday penalty rates 12.5% turn into an ill-informed class battle for which the politicians are to blame.
The politicians created the independent umpire and left it to provide leadership on issues they consider too contentious for them to show leadership themselves.
Media reports and tweets reflect an ignorance about penalty rates.
For me, the question is: Is $39.82 an hour (plus super) for a 21 year old on a Sunday reasonable? Whether they are a retiree looking for extra money, a single mum or a uni student is not my concern. My concern as a retail business owner is – is $39.82 an hour fair pay?
I think $39.82 an hour is too much. I am happy with the 12.5% reduction. In fact, I think it could have been a bit more.
But this is where the politicians need to show leadership for you can’t have a conversation about cutting penalty rates in a climate where too many big companies are not paying a fair amount of tax, Centrelink is taking action against debts that often do not exist, politicians grant themselves above average pay rises every year, big business CEOs get millions for share price movement and large corporates are pitched a tax break.
Our politicians need to show leadership on the big picture here. If they did that, then genuine reform across multiple points of the economy might be possible.
As a business owner I am not responsible for the economic circumstances of my employees. I am responsible for paying the correct pay and meeting all other obligations. Circumstances outside the business are not my responsibility as that is what I pay payroll tax, company tax, GST, superannuation, PAYG, fuel excise and myriad other taxes for. The problem is, these many taxes are not used as well as they could be. Indeed, pigs on all sides of politics with their snouts in the taxpayer trough rort the system so much that is makes many of us look at issues like penalty rates as a what’s in it for me discussion.
Real leaders would step back and say: okay FWC, you have had your say. Now, lets look at the whole of the economy and make a series of moves in pursuit of fairness across classes on the basis that a healthy whole economy is more important that health for one class at the expense of another.
The debate that has been raging in Australia for the last two days since the FWC decision is a reflection of poor leadership on all sides in this country.
Please, can we pull this back from a debate? Can we have a conversation? And can we, for a moment, forget about pursuing headlines or a retweet?
Agreed, media beat up in full swing.
Political point scoring from all sides.
How many politicians are really looking out for the country rather than looking out for themselves.
Fake News !! The print and electronic media are rotten to the core No reporting about the major chains striking a deal with unions for even lower Sunday rates with enterprise bargaining
Oh yeah Mark R which major chains struck a deal with which unions?
Put up or you are the fake.
Cuddles, both Woolworths and Wesfarmers (Coles) pay their staff at a lower per hour rate than the award rate small business has to pay their staff. Which union?? Not sure of the exact name, but the Retailers Union that Woolworths and Coles staff are members of and pay membership $$ to.
I pay my staff on the WA Retailers and warehouse award, which is a state award and different again to the federal award FWC has reduced.
Oh so we are refering to the Shop Distributive and Allied employees association agreements struck with Coles in 2011 and Woolworths in 2012.
Mark R appears to be going crook because the media aren’t reporting on five year old news. Got it.
Firstly, Cuddles have the courage to use your name.
Fairwork has been very busy over the last few years looking into EBA’s where big business (Coles,Woolies etc), have banded together with Unions (especially Shoppies), to cut Weekend Award Penalty Rates.
Interestingly 2011 EBA (Cuddles mentioned) is under challenge now and if the Coles worker wins and the smart money says she will, even that could be thrown out. Coles could be up for hundreds of millions in back pay, followed by Woolies – sell your shares now!
All this decision does is bring small employers inline with large employers for Sunday trading, simple really.
Mark R is correct, journos today have no concept of back grounding a story (a few notable exception’s – Sloane & Sheridan), hence the public and our workers don’t fully understand the why of this decision .
If the correct context was placed on this story – it would be a no story.
The whole debate is rounding up the ants while the elephants are getting away.
Until there is real reform treating Saturday and Sunday as just another day, there will be winners and losers.
So in the new world I would save $30 in wages for a Sunday. That would have reduced my loss for today from $110 to $80 for 6 hours serving Lotto.
More jobs being created? That $30 doesn’t even buy an extra hour.
Bill
You have brought up a good point for those newsagencies in the high street or strips. i am in a strip.
Sunday is usually a poor day for GP, for profitability. Good for PR with customers.
Lots of Lotto checking and some lotto and isi sales. Newspapers. some greeting cards. few gifts, toys and little stationery. not many mags sales.
Difficult to make GP on mostly newspapers and Lotteries.
I would be interested to hear if those in mall situations do a bit better on Sundays, given that mall shopping is an entertainment thing for many customers.
I would like to open longer on Sundays (past 12) but it seems likely to be unprofitable even with a few dollars shaved off wages.
The other factor in this is the actions of too many big businesses in minimising tax, ripping cash out of the economy – Apple, Google, News Corp., mining companies. This is another example of an issue that needs to be part of the discussion.
Why are you operating if it is at a loss?
Bruce G, I am in a Westfield.
Chris, I operate at a loss on Lotto because if I open my doors I have to have lotto open.
Cuddles it is all relative.
Coles and Woolworths get a financial advantage over every other retailer before the door is opened because they are permitted to pay staff less than every other retailer.
I spoke with a Coles staff member yesterday and she spoke about it in full detail. She is employed as a permanent part-time worker and MUST work Saturday and Sunday. She cannot pass her Sunday shifts onto casual staff members.
Personally, I think if the Sunday wage is cut, then Saturday should increase to be the same as Sunday.
Take the politics out of it, and you are asking people to work on the weekend, where they may miss their family time, kids sport etc… For this very reason ALL employers should pay a premium, or alternatively choose to close the doors, or heaven forbid work it yourself.
It really is a windfall for our major retail competitors.
No new jobs will be created from this decision. Employees may however be required to work an extra hour or two by their employer, for which they will receive less payment from their employer than they currently receive.
If newsagents actually did something about getting better commissions on lotto, news and mags then it would not be an issue.
Bill, if you are in a Westfield and not selling over $500 worth of gifts on a Sunday then you are doing plenty wrong. Don’t blame the penalty rates. Take a good look at your business.
Amanda, if you read my comments again you will note I never mentioned anything about my retail business. I was talking about the 1 staff member I have serving, mainly payout customers, on Lotto.
To the consumer it’s just another day. They aren’t going to pay extra on weekends. It’s time IR laws reflected this.
And comments here reflect why there needs to be a whole of economy approach to reform, not just in one small corner. However, that takes leadership and Australia (and the world) is beret of this at this moment in time.
Amanda no one forcing anyone to work on a Sunday or even a Saturday , the worker decides if they want to or not. If your not happy about it simply leave that job and find another . Something’s wrong when I kid earns more money than the mum and dad that works all week . Now I am only talking about my business where my seniors do not want to work on weekends and juniors can only work on weekends .
So Shauns are you going to open longer hours because of the penalty rate changes?
Are you going to imply more staff?
“employ”
Amanda yes more staff hours but don’t quite see why I would now open longer ? Any reason why you think I would ?
I remember when I worked for other people I would do what ever the employer would ask for, what ever hours basically because that was the person that was putting food on my table , paying my bills , putting kids through school etc basically I was thankful to have a bloody job but these days the employees think they can work on what ever terms they want but yet they say there’s no work out there . Last time we advertised a delivery driver job one person that I was interested in told me he would get back to me well WTF is going on in the world when a potential employee calls the shots ….A manager of a BP servo that I was talking to told me a story about one he was looking at that said “well I can work this day that day not that day but never that day ” you either want work or you like centrelink way to much . Rant over have a great day
Shaun why wouldn’t you be happy with a potential employee advising you of what there availability is before you hire them?
Employees and we as employers both have to meet the market. If that means flexibility with hours – then that is what is required.
Shauns, ONE of the key arguments for a drop in penalty rates is that businesses would stay open longer if penalty rates dropped.
That is why I asked. I am not having a dig at you.
FYI…Our store will not open any longer either.