The Turnbull led government has had a significant impact on the Fair Work Commission’s decision to significantly reduce penalty rates in the hospitality and retail sector. Penalty rates for Australian workers working on days and times other Australians traditionally have off, is one way some of Australia’s most poorly paid workers are able to make ends meet. Removing penalty rates is a direct attack on some of the poorest and least organised workers in this country. Some of the biggest corporations in Australia – Seven Eleven, Hungry Jacks and Domino’s Pizza – all publicly listed companies, have been short changing workers for years.
It was calculated over half of all hospitality and retail workers under 25 in Ballarat Victoria were paid less than the award rate, in a recent survey. A significant number of small businesses ignore awards paying workers cash. Underpaying workers who are not unionised (currently only 22% of workers are in a union and less than 7% of privately employed workers are in unions) is widespread in Australia. The decision of the Fair Work Commission to decrease penalty rates will accelerate the trend to destroy the award system, a cornerstone of the Australian Labour Market.
Deregulating the labour market has been a long held policy of the Liberal/National Party. The destruction of the Trade Union Movement has now allowed them to pursue that agenda unopposed.
The Fair Work Commission’s decision to delay their decision to reduce penalty rates until after the last Federal election was solely due to political pressure. The Turnbull led government, fearing they would lose the last election if the decision was announced during the election campaign, put pressure on the Fair Work Commission to delay their decision. The Turnbull led government refused to make a submission to the Fair Work Commission to support the retention of penalty rates. The refusal of the Federal government to stand up for Australia’s hospitality and retail workers was instrumental in the Fair Work Commission’s decision to cut penalty rates for workers in what is traditionally a non-unionised sector of the workforce.
The Fair Work Commission has refused to cut penalty rates in the heavily unionised Health and Emergency Services sector – Fire, Police and Ambulance, knowing they would have a fight on their hands if they tried to remove penalty rates in these sectors. The Fair Work Commission’s decision to significantly reduce penalty rates in an area that is traditionally dominated by non-unionised students and women is an ideologically driven decision that puts the interests of employers before workers- especially part time workers. Driving down real wages decreases workers purchasing power, increases family violence and crime and puts downward pressure on the economy. It does not increase long term returns to employers and shareholders and it does not increase the number of jobs available to Australians.
Poor Fellow My Country - apologies to Xavier Herbert
Dr. Joseph Toscano