Retail groups have backed Queensland Senator James McGrath’s calls for the reform of weekend and evening penalty rates for workers in cafes, restaurants, and shops.
On Wednesday, Senator McGrath said penalty rates were like a “cyclone” devastating tourism dependant areas of Queensland’s coast. His comment follow similar calls by NSW MP Alex Hawke last week.
Trevor Evans, CEO of the National Retail Association (NRA) says there is an unarguable link between businesses closing on weekends because they couldn’t afford to pay their staff penalty rates, and the impact on tourism and youth unemployment.
“I’m sure these comments will be met with the usual hysteria about workers’ rights being attacked,” Evans said.
“But the greatest right any worker has, is the ability to work. If businesses are forced to close because they cannot afford to pay their staff on weekends or at night, then workers are robbed of that fundamental right.
“It is well and truly time for us to have a calm, rational discussion in this country about how the cost of labour is impacting on employers’ ability to hire more people and create more jobs. The NRA does not advocate the abolition of penalty rates; rather we believe very strongly that their quantum or their application in some instances is a clear impediment to jobs creation.
“When the shops aren’t opening at the times when the highest penalty rates apply, everyone loses – businesses, workers, and the customers we are all here to serve. It’s definitely a topic we need to talk more, so we commend Senator McGrath for having the courage to put it on the agenda.”
The Government has ruled out taking any action on penalty rates for now, saying any changes will be left to the independent Fair Work Commission in rulings on industry awards.
Earlier this week, Russell Zimmerman, executive director of the Australian Retailers Association (ARA) said reducing penalty rates was a crucial step in creating higher levels of employment for Australians.
“There’s no denying the fact that retailers would employ more staff if they did not have to pay penalty rates. SME retailers in regional areas in particular, who do not currently open on Sundays, would definitely consider their options if penalties were reduced,” Zimmerman said.
“Retail staff in regional areas do not usually have the opportunity to work on Sundays and a lower penalty rate would mean these retail employees would have the opportunity to work extra hours. We cannot ignore the major benefits for all involved, including additional hours retailers will be able operate, if penalties are reduced.
“Seeking to be the voice of reason, the ARA is not calling for penalty rates to be abolished but there is a strong need to get the balance right so that retailers can operate competitively on weekends and offer increased employment opportunities.”
