LOCAL business are pushing for penalty rates reform after many were forced to shut their doors over the Easter holiday period.
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The annual debate was reignited by two prominent local businessmen who claimed they could not afford to pay their staff exorbitant wages.
"No one is asking for them (penalty rates) to be abolished, there certainly needs to be some compensation for people working, however, current rates are excessive for business," said The Western Hotel owner, Dan Cronin.
According to the Fair Work Ombudsman, public holiday rates for casual workers under the Hospitality Industry Award are 275 per cent.
Full and part-time hospitality workers are also entitled to 250 per cent extra on public holidays.
Mr Cronin said his business, which was closed on Good Friday and Monday, suffered from being shut, but would have incurred bigger loses had the hotel been open.
Forge Pizzeria director Tim Matthews shut both his Ballarat restaurants throughout the holiday period, saying wages would outstrip sales.
He suggested costs could potentially be passed onto consumers through high surcharges, which was not what the company wanted to do.
Mr Matthews said five years ago penalty rates were at 150 per cent and suggested a tailored plan of penalty rates for each industry was required.
"Current rates are excessive for business."
- Dan Cronin
Australian Retailers Association (ARA) executive director Russell Zimmerman said penalty rates were introduced in the early 1990s for nine to five professions, but they needed to be updated to suit modern work patterns.
He said the ARA believed penalty rates should be determined by a regulatory body within an appropriate regulatory framework.
However, the Australian Council of Trade Unions (ACTU) believe the penalty rates debate was an annual money grab by employers.
"Cutting penalty rates have nothing to do with job creation or productivity - it is about cutting people's pay packets and disposable income, " ACTU president Ged Kearney said.