Sunday penalty rates to dominate as parliament resumes

A political row over a decision to reduce Sunday penalty rates is set to dominate the return to Canberra for Federal MPs. But it's not just cross-party tensions that will be on display - as the government continues to deal with repeated criticism from former Prime Minister Tony Abbott.

Cafe worker

Women will reportedly be the most affected by the cuts to Sunday penalty rates. Source: AAP

On Thursday, the Fair Work Commission handed down a much anticipated verdict to reduce Sunday penalty rates in hospitality, retail, fast food and pharmacies.

It's a boost for small business owners who will be able to increase their profit margins.


But for employees, it's effectively a pay cut.

Cafe owner, Anne Perre, says despite the Fair Work Commission's decision she'll continue to pay her staff the same Sunday wages.

"We've got some really good workers here and they know what they're doing and I'm happy to just keep the rates as they are. It's always nice to make extra money, but if I don't have the workers I'm not going to have the service that we get, that the customers get, that's really important to us."

Ms Perre's been running her business in the New South Wales town of Queanbeyan for 15 years, and admits that longevity may be the reason why she can afford to pay her staff a higher Sunday wage.

Federal Labor says many other businesses will not be able to do so.

It has already prepared legislation to try to stop the Fair Work Commission's decision from going ahead.

Opposition Treasury spokesman Chris Bowen has told the ABC that he fears there will be a major flow-on effects.

"As bad as this is with 700 thousand workers losing out. As bad as this is, it's the thin edge of the wedge because bigger companies who are on EBAs (Enterprise Bargaining Agreements) will look at this now and say 'This is the new standard, this is the new benchmark.'"

Labor doesn't have the numbers in parliament to successfully pass the bill but hopes it will send a message.

It's a sharp turnaround from last year when the Opposition Leader Bill Shorten said he would respect the independent umpire's findings.

Speaking to Sky News, Finance Minister Mathias Cormann criticised the change in position.

"The reality is, Bill Shorten is a complete hypocrite on this and he is undermining the independence of an organisation that Labor set up. I mean the people that made the decision were appointed by Labor and they've reviewed the facts and information and all of the data and they've come to a view on the appropriate arrangements moving forward."

Rae Cooper is Associate Professor in Work and Organisation Studies at the University of Sydney Business School.

She says the cut to Sunday rates will affect female workers most, given that women represent more than 50 per cent of employees in retail and hospitality.

"This decision is a double whammy for Australian women. We already know that we have a very concerning gender pay gap among men and women in the Australian labour force. What this will do is actually disadvantage those employees who are among the lowest paid in our labour force.

"What's also really concerning is that we know that among this labour force, often the reason they work on weekends is because they don't have care available to them on other days, so taking this hit out of their pay and also taking this hit out of their care arrangements will have a really significant impact."

The Abbott effect

It's not just cross party tensions though that are set to dominate the week in Canberra.

Tony Abbott's recent criticism that the government faces electoral defeat is still hitting a nerve with his colleagues.

After admitting on Friday that the former Prime Minister is not helping himself, Finance Minister Mathias Cormann told Sky News that public comments are now the only way to deal with him.

"Obviously private messages hadn't been heeded and I thought it was important to send a very clear message that essentially signal that enough is enough.

Strong words from a man who used to be one of Tony Abbott's closest allies.


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4 min read

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By Marija Jovanovic


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Sunday penalty rates to dominate as parliament resumes | SBS News