Debate over how to implement penalty rate changes

SBS World News Radio: Key stakeholders are arguing over how quickly changes to penalty rates should be introduced.

Debate over how to implement penalty rate changesDebate over how to implement penalty rate changes

Debate over how to implement penalty rate changes Source: AAP

The Fair Work Commission made the decision to cut Sunday penalty rates for many retail, hospitality and fast-food workers in a report more than 500 pages long.

But the commission's work is far from done -- it's now calling for submissions on how the cuts should be implemented.

And already, that debate is proving just as contentious.

One business group, the Australian Chamber of Commerce and Industry, wants the change to take effect as soon as possible.

James Pearson is the Chamber's CEO.

"We now need to focus on a transition and we believe that should happen as quickly as possible. So, we can see the benefits of the Fair Work Commission - the independent umpire - has identified. More hours for those who want them, more jobs for those who need them. And a greater level of customer service for the increasing number of Australians who want to shop on a Sunday."

The Commission has suggested it might phase in the changes over several years to lessen the impact on workers, but is open for submissions.

Today, in an opinion piece in the Fairfax newspapers, one idea emerged from Liberal Senator Eric Abetz.

A former employment minister in the Abbott Government, Mr Abetz thinks the cuts should only apply to new workers, not those already employed.

"Those who are on relatively low incomes, and we have to acknowledge this, who are in these particular sectors, have household budgets, they live week-to-week and they've made plans on the basis of what their income stream is now."

This so-called grandfathering of existing wages has already been considered by the Commission in its report.

It said the commission did 'not favour' the idea because it would force employers to calculate two different pay rates.

Treasurer Scott Morrison says his colleague's idea is not government policy.

"Eric's entitled to his view. But the position I'm putting forward is the position we took to the last election - that we said we would respect the independent umpire on this and that's exactly what we're doing."

Labor is still pushing for the government to overturn the cuts.

Opposition Leader Bill Shorten described the grandfathering idea as 'dumb'.

"I'll tell you what will happen, the rosters and the shift also go to the cheaper employees, not the more expensive employees. This is a government who lives on another planet."

Meanwhile in industrial relations, Immigration Minister Peter Dutton has announced that fast food businesses will no longer be able to bring in foreign workers on 457 visas under arrangements approved by the Gillard Labor Government in 2012.

He says Australian workers, particularly young Australians, must be given priority.

"My view is, particularly in areas where we've got high youth unemployment, those kids should be getting the jobs ahead of foreign workers. And it's beyond me why Labor would have put in place a system that provided preference to foreign workers over Aussie kids."

Labor has accused Mr Dutton of exaggerating the problem.

The labour agreement is believed to have been used to employ around 500 foreign workers in fast food over the past four years.

 

 

 


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By James Elton-Pym

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Debate over how to implement penalty rate changes | SBS News