A draft report from the Productivity Commission has recommended Sunday penalty rates for cafes, hospitality, entertainment, restaurants and retailing should be aligned with Saturday rates.
The report, Australia’s Workplace Relations Framework, found that penalty and overtime rates should be maintained overall, however both days of the weekend should be treated equally in response to changing social norms around shopping hours.
The Productivity Commission predicts employment and hours worked on Sundays would rise if the change is adopted, in particular, for more experienced employees, who currently have a particularly high hourly rate.
The National Retail Association (NRA) strongly backed the Productivity Commission’s recommendations and called on the Abbott government to adopt the proposed changed.
NRA CEO, Trevor Evans, said the recommendations are “sensible, measured and well-considered” and address concerns facing small businesses in the retail sector.
“Whenever we talk with members about trading conditions, they almost always raise the issue of labour costs on Sundays and public holidays. We can say with certainty there are many thousands of businesses across Australia whose customers want them to open and but whose owners simply can’t afford to pay staff on those days,” he said.
“There is a ready workforce, including youth, students and others wanting some additional weekend work, who would jump at the opportunity to work on Sundays, but they are being denied the chance because businesses can’t afford to open.”
He said it was also becoming increasingly difficult for business owners to compete with online shopping, where penalty rates and often basic labour standards did not apply.
“We need to accept that we live in a 24/7 digital world,” Evans said. “If we force the shops closed, all workers will suffer and no amount of penalty rates will compensate for long-term job losses.”
The NRA is part of an industry submission to the Modern Award Review calling for Sunday work to be treated in the same way as Saturdays.
“The NRA is not arguing for the abolition of penalty rates, and anyone who attempts to characterise this debate as an attack on workers simply fails to understand that what a worker needs more than anything else is a job.
“We support sensible reform that applies a more realistic penalty rate for Sundays and public holidays, ensuring businesses will open and there will be increased job opportunities,” he said.
The Australian Retailers Association (ARA) also approved the Productivity Commission’s move to open up discussion on penalty rates. The ARA is arguing for a reduction in Sunday penalty rates from 100 per cent, known as double time, to 50 per cent, or time and half for retail workers.
“We fully support the recommendations of the Productivity Commission’s report and look forward to working with the Government to implement these reforms,” said Russell Zimmerman, executive director of the ARA.
