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Turnbull's pitch on penalty rates draws scepticism from unions and Labor Turnbull's pitch on penalty rates draws scepticism from unions and Labor
(about 3 hours later)
The ACTU says it needs a lot more information before it believes that Malcolm Turnbull’s new pitch on penalty rates is more than just “rhetoric”, while Labor leader Bill Shorten has rejected it out of hand. The ACTU says it needs a lot more information before it believes that Malcolm Turnbull’s new pitch on penalty rates is more than just “rhetoric”, and the Labor leader, Bill Shorten, has rejected it out of hand.
The new prime minister has tentatively opened debate on reductions in Sunday penalty rates, but has said any changes would have to be included in a package of policies that left workers better off, or no worse off. The prime minister has tentatively opened debate on reductions in Sunday penalty rates, but has said any changes would have to be included in a package of policies that left workers better off, or no worse off.
ACTU president Ged Kearney said she was “happy to talk to the prime minister” but was sceptical Turnbull could make good on his pledge. The ACTU president, Ged Kearney, said she was “happy to talk to the prime minister” but was sceptical Turnbull could make good on his pledge.
“How is he going to do that? For some workers penalty rates make up 30% of their take-home pay. Is he talking about increasing the minimum wage by 30%? There has been some talk of tax credits, but that would be a very expensive and complicated exercise moving some of the responsibility of for paying wages from employers and putting it onto taxpayers,” she said. “How is he going to do that? For some workers penalty rates make up 30% of their take-home pay. Is he talking about increasing the minimum wage by 30%? There has been some talk of tax credits, but that would be a very expensive and complicated exercise moving some of the responsibility for paying wages from employers and putting it on to taxpayers,” she said.
“And we also need to understand why they want to do this in the first place. There is no economic case, no evidence that penalty rates are hurting the hospitality and retail industries … so why are we having this conversation?” “And we also need to understand why they want to do this in the first place. There is no economic case, no evidence that penalty rates are hurting the hospitality and retail industries … So why are we having this conversation?
“I’m happy to talk to the prime minister but I hope this isn’t just a change in rhetoric because it is hard to see how he could leave no worker worse off without an enormous expense for the taxpayer.”“I’m happy to talk to the prime minister but I hope this isn’t just a change in rhetoric because it is hard to see how he could leave no worker worse off without an enormous expense for the taxpayer.”
Bill Shorten rejected Turnbull’s new pitch, saying it was based on “an argument run by the top 1% of income earners in this country that the future of this country depends on the lowest paid workers taking a pay cut.” Shorten rejected Turnbull’s pitch, saying it was based on “an argument run by the top 1% of income earners in this country that the future of this country depends on the lowest-paid workers taking a pay cut”.
“Malcolm Turnbull today has … given WorkChoices the kiss of life. He has come back and said ‘We should cut penalty rates so long as people aren’t worse off’. Malcolm Turnbull, what planet do you live on? It is out of touch to say if you cut someone’s pay, somehow you will be better off. No you’re not. Why is it in this country that some people believe the only reform for this country to go ahead is for millions of ordinary Australians to take a pay cut? That is not Labor’s way,” he said. “Malcolm Turnbull today has … given WorkChoices the kiss of life. He has come back and said: ‘We should cut penalty rates so long as people aren’t worse off.’ Malcolm Turnbull, what planet do you live on? It is out of touch to say if you cut someone’s pay, somehow you will be better off. No you’re not. Why is it in this country that some people believe the only reform for this country to go ahead is for millions of ordinary Australians to take a pay cut? That is not Labor’s way,” he said.
“There is a myth that somehow the only people who get penalty rates are people who serve coffee on a Sunday morning. The truth is a lot of Australians depend upon penalty rates. They depend upon the penalty rates to be able to afford the things in life which give them a chance to have aspiration and hope,” he said. “There is a myth that somehow the only people who get penalty rates are people who serve coffee on a Sunday morning. The truth is a lot of Australians depend upon penalty rates. They depend upon the penalty rates to be able to afford the things in life which give them a chance to have aspiration and hope.”
Turnbull had earlier suggested that any changes to penalty rates would have to be included in a package of policies that left workers better off, or no worse off.Turnbull had earlier suggested that any changes to penalty rates would have to be included in a package of policies that left workers better off, or no worse off.
“I think over time you will see a move to a more flexible workplace … you do nonetheless have unions and workers who are naturally reluctant to give up benefits they have and any reform has got to be able to demonstrate that people are not going to be worse off and overall, ideally, in net terms better off … it is important for someone in my position as prime minister to be able to empathise with the position of employers and workers and to understand that each have legitimate claims,” he told 3AW. “I think over time you will see a move to a more flexible workplace … You do nonetheless have unions and workers who are naturally reluctant to give up benefits they have and any reform has got to be able to demonstrate that people are not going to be worse off and overall, ideally, in net terms better off … it is important for someone in my position as prime minister to be able to empathise with the position of employers and workers and to understand that each have legitimate claims,” he told 3AW.
“If you want to get the support of workers and of unions .… to changes like that then inevitably you would have to persuade them in net terms they are better off … If you put yourself in the shoes of a union official and you have someone saying ‘I want you to give up certain conditions or work practices which are inflexible or create inefficiencies’, then you as the union organiser would say, ‘I would only consider that if I was better off or at least no worse off’.” “If you want to get the support of workers and of unions .… to changes like that then inevitably you would have to persuade them in net terms they are better off … If you put yourself in the shoes of a union official and you have someone saying, ‘I want you to give up certain conditions or work practices which are inflexible or create inefficiencies,’ then you as the union organiser would say, ‘I would only consider that if I was better off or at least no worse off.’ ”
Turnbull and resources minister Josh Frydenberg had tentatively suggested cuts to penalty rates could be considered by the Coalition as employers ramp up demands for change and say Sunday rates are preventing some businesses from opening, or employing more staff. Turnbull and the resources minister, Josh Frydenberg, had tentatively suggested cuts to penalty rates could be considered by the Coalition as employers ramp up demands for change and say Sunday rates are preventing some businesses from opening, or employing more staff.
Employment minister Michaelia Cash has said any changes should be taken to the next election. The employment minister, Michaelia Cash, has said any changes should be taken to the next election.
“If there are fair and reasonable changes that will make the workplace relations system or the Fair Work relations system better, and will not leave employees worse off, you may well see this government takes them to the next election,’’ she said. “But we are asking for a mandate from the Australian people”. “If there are fair and reasonable changes that will make the workplace relations system or the Fair Work relations system better, and will not leave employees worse off, you may well see this government takes them to the next election,’’ she said. “But we are asking for a mandate from the Australian people.”
The productivity commission’s draft report into workplace relations released in August recommended cutting Sunday double-time loadings to the same level as Saturday penalty rates (150% of the normal hourly rate) for workers in the entertainment, hospitality and retail sectors. It said existing penalty rates should be retained for other industries like healthcare and emergency services. The productivity commission’s draft report into workplace relations released in August recommended cutting Sunday double-time loadings to the same level as Saturday penalty rates (150% of the normal hourly rate) for workers in the entertainment, hospitality and retail sectors. It said existing penalty rates should be retained for other industries such as healthcare and emergency services.