Retail and hospitality workers will be up to $6000 a year worse off under a Fair Work Commission decision to slash penalty rates by as much as 25 per cent, Ballarat Trades Hall said.
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The Commission’s ruling, handed down on Thursday, will see Sunday and public holiday penalty rates cut for hospitality, retail, fast food and pharmacy workers effective from July this year.
Full or part-time hospitality workers will face a reduction in Sunday penalty rates from 175 to 150 per cent of their standard hourly rate, a cut which could slash as much as $6000 from their take-home pay if they regularly work Sundays, Ballarat Trades Hall secretary Brett Edgington said.
Retail workers will see the biggest cut into their Sunday penalty rates, from 200 per cent to 150 per cent. Casual workers will drop from 200 per cent to 175 per cent. Casual hospitality penalty rates will be unchanged.
Mr Edgington said the ruling was a “kick in the guts” and would affect thousands of workers in the region.
“We know with illegal payments and black economy that there is already a significant part of the economy that are not even getting penalty rates. For the people lucky enough to be receiving them this will have massive ramifications.”
He denied a cut to penalty rates would spur businesses to take on more staff.
“Places open on Sunday because it’s profitable. Ultimately it comes around to bite them because the very people who spend money in their businesses now have less money in their pockets.”
Commerce Ballarat chair David Wright said he expected member businesses to pass the penalty rates win on to staff through additional hours or by hiring new employees.
“Because we’re in a 24/7, seven day a week economy we certainly support our members working within that emerging economy and hopefully this ease in penalty rates will allow them to do that. It’s a great opportunity for all businesses to be looking at what they’re paying their staff and ensure they are paying their staff the correct rates.”