Fair work commission cuts penalty rates

Fair Work Commission has decided to cut Sunday penalty rates which will cut down salaries of many people.

Australian dollars in Sydney, Friday, Jan. 15, 2016. (AAP Image/Joel Carrett) NO ARCHIVING

Source: AAP

The long-awaited decision of Fair Work Commission was handed down today and it was revealed that they have agreed to cut Sunday penalty rates. This change was one of a number of workplace recommendations made by the productivity commission last year. A decision was first expected by the end of last year but was delayed. Now that the decision has been handed in, thousands of retail, fast food and hospitality workers will be affected with this change.
Portrait of confident waiter carrying serving tray in restaurant
Portrait of confident waiter carrying serving tray in restaurant Source: AAP
Retail and business groups were running this case as they wanted to reduce the Sunday penalty rates in line with the Saturday penalty rates which means it will now be reduced from double time to time-and-a-half.

While the Prime Minister Malcolm Turnbull had earlier said that he will accept the decision of the independent umpire, labour had remained concerned that the decision will come at the wrong time for the working families.  Labor workplace spokesman Brendon O’Connor has warned that the pay packets are already under stress, growing at a record-low rate of 1.9 per cent.

The business groups, on the other hand, say that the commission must balance the interests of employed people with those seeking work, as well as business operators and customers. 

If you or anyone you know are affected by this change, we would like to hear from you at preeti.mccarthy@sbs.com.au

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By Preeti K McCarthy

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