A Bacchus Marsh hair salon has pledged to retain penalty rates after the Fair Work Commission left the door open for challenges to the Hair and Beauty Industry Award in a landmark ruling last month.
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In February the Commission ruled to cut penalty rates by as much as 25 per cent for retail, hospitality, fast food and pharmacy workers.
The ruling was endorsed by Prime Minister Malcolm Turnbull on Sunday.
Bacchus Marsh hair salon The Brazen Fox responded to the Commission’s ruling with a letter to staff vowing their penalty rates would remain regardless of any Commission decision.
The letter, since posted to Facebook, reads “We will not be apart of devaluing your profession, your passion, your time or you. You are safe and we care about you.”
Co-owner Nic Saunders said the stand was about valuing their employees.
“From what we’ve had as an experience as a small business we get out of our employees what we get in.
“On top of the fact we don’t think it's fair we don’t think we would get the best out of our business if our employees don’t feel valued for their time and their profession.”
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The Commission decision has been championed as a boon for battling “mum and dad” businesses however Ms Saunders said a cut to penalty rates was unfair regardless of the business owners’ circumstances.
“Our viewpoint is if we’re a small business that is struggling, then the people working for us must be struggling as well.
“For us it’s just not fair to work the weekends away from their family and not show their worth by paying from that.”
In its ruling last month the Commission sought expressions of interest from employers organisations in hair and beauty “prepared to take on the proponent role” in reviewing the industry’s penalty rates.
Ms Saunders said The Brazen Fox’s message had been well received by the community.
“People have definitely responded positively and we’ve had people say we’re booking in now because of your stance on it which wasn’t the intention of it but it’s nice to know we’re being supported for supporting our employees.”
Cosmetics retailer Lush Australia, as well as various cafes and restaurants around the country, have pledged to retain current penalty rates, which see employees earn 200 per cent of their standard hourly rate on Sundays as well as 250 per cent on public holidays.
Lush Australasia director Peta Granger reported the company had seen an increase in sales and footfall since taking a stand.
Under the Commission’s decision, handed down on February 23, full-time and part-time workers in retail will have their Sunday penalty rates dropped from 200 per cent to 150 per cent of their standard hourly rate, while casuals will go from 200 per cent to 175 per cent.
Hospitality employees will face a reduction in Sunday pay from 175 per cent to 150 per cent, while casual hospitality workers' pay will remain unchanged.
Fast-food employees' Sunday rates will go from 150 per cent to 125 per cent for full-time and part-time staff, and casuals will go from 200 per cent to 175 per cent.
Holiday penalty rates for full-time and part-time employees in hospitality and retail will also be slashed from 250 per cent, or "double-time and a half", to 225 per cent.
The Commission’s decision will come into effect July 1 this year.