Labor states unite against penalty cuts

The Fair Work Commission has been told its penalty rates cuts can't be rolled out in a fair way for low-paid workers.

Two Labor state governments and the NSW opposition say there is no way proposed penalty rate cuts can be phased in without hurting low-paid workers.

The Fair Work Commission has set a deadline of 4pm AEDT on Friday for submissions to the implementation of its decision to reduce the penalty rates of modern award workers in the retail, hospitality, fast food and pharmacy sectors.

The commission wants advice on how the transition to the new rates can be made while minimising the hardship for affected workers.

NSW Labor leader Luke Foley wrote in his submission, released on Thursday, there was no conceivable process that would protect the take-home pay of workers under the awards or future employees.

Mr Foley said it was not possible to prevent the penalty rate cuts from being used by employers in future bargaining to reduce workers' take-home pay and ensure modern awards are a guaranteed minimum safety-net of take-home pay.

"Instead of determining how this decision should be implemented, I invite the full bench to reconsider the decision altogether," Mr Foley wrote.

Mr Foley noted women constitute 57 per cent of take-away food workers, 62 per cent of retail workers, 57 per cent of hospitality workers and 85 per cent of pharmacy and cosmetics retailers.

"The penalty rate cuts will significantly and adversely impact those workers who can least afford it and the decision will disproportionately impact women workers."

In a brief submission, the Victorian Labor government said it maintained its opposition to any reductions in penalty rates.

"On that basis, we do not intend to make any submissions in relation to possible transitional arrangements," the submission says.

A Victorian parliamentary inquiry into penalty rates and fair pay will report by September.

The South Australian Labor government said the commission should not be considering a transition period or start date for the penalty rate cuts.

"It should reconsider its decision and restore previous rates paid to workers who need it the most," Deputy Premier John Rau wrote.

Federal Labor leader Bill Shorten asked the prime minister in parliament on Thursday whether the government would be lodging a submission in support of the cuts.

"The Fair Work Commission is bringing Sunday rates closer to Saturday rates because they have been satisfied, after a huge inquiry, that it will create more jobs, more opportunities for small businesses to remain open on weekends, create greater opportunities for employment," Mr Turnbull said.

"We're backing small business and so should Labor."

Meanwhile, former Australian Chamber of Commerce and Industry chief Peter Anderson and Corrs Chambers Westgarth partner Alan Colman have been appointed deputy presidents of the FWC.

Former National Farmers' Federation legal affairs general manager Sarah McKinnon will be a commissioner, Employment Minister Michaelia Cash said on Thursday.


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Source: AAP



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