Where are we on penalty rates in Election 2016?

The issue of penalty rates will be in play during this election period because the Fair Work Commission is examining weekend rates for hospitality workers. Their decision will come after election day but Labor is being asked to take a stand now.

Leader of the Opposition Bill Shorten fielded questions about penalty rates during campaigning on Monday, May 16 Source: AAP

Opposition leader Bill Shorten was asked again and again by reporters if he could guarantee penalty rates wouldn’t change if he won the election during a campaign event in Victoria today.

So where is the issue of penalty rates up to?

This explanation may help:

The Fair Work Commission is currently looking into penalty rates where workers are paid extra for after hours and weekend work.

In this case they are looking at weekend penalty rates mainly in the hospitality sector.

The decision by the Fair Work Commission isn’t expected to be handed down before polling day on July 2.

Click here for the Fair Work Commission material on this case.

The awards that are being examined include:

These hospitality awards: 

• Hospitality Industry (General) Award 2010
• Registered and Licensed Clubs Award 2010
• Restaurant Industry Award 2010

These retail awards: 

• Fast Food Industry Award 2010
• General Retail Industry Award 2010 
• Hair and Beauty Industry Award 2010 
• Pharmacy Industry Award 2010 

It follows a report by the Productivity Commission that recommended weekend penalty rates be examined and that Sunday rates be replaced by a uniform weekend rate, mainly for hospitality workers.

Click here for the Productivity Commission report that was delivered in December last year.

Submissions are currently being received by the Fair Work Commission.

The ACTU has asked Labor to take a stronger line to protect workers rates if the decision goes against their submission.

Greens leader Richard Di Natale today said the Greens supported legislation to protect penalty rates.

‘I simply say to the Labor Party this: If you are so committed to penalty rates protect them in law.’

The statement puts the pressure on Labor because Greens are of course trying to win votes from Labor in this election.

Angered by the Greens suggestion of legislation Opposition leader Bill Shorten said he wouldn’t legislate because a future Government could use that legislation to turn back the clock on penalty rates if it wanted to.

He accused the Greens of ‘loading the gun’ for future Government action.

With Greens and the ACTU asking Labor to go further on penalty rates, this will be a difficult subject for Bill Shorten to negotiate.

One reporter suggested to Mr Shorten today at his press conference that his guarantee on penalty rates in his election campaign material would be more accurate if it said it was a promise to ‘defend penalty rates.’

Mr Shorten indicated he didn’t agree with that view saying Labor will continue to fight for working Australians.