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Bill Shorten to say Labor won't accept penalty rate cuts that leave workers worse off Bill Shorten to say Labor won't accept penalty rate cuts that leave workers worse off
(about 1 hour later)
Labor will seek to protect low-paid workers by proposing cuts to penalty rates be accompanied by beneficial pay and conditions so workers are not left worse off.Labor will seek to protect low-paid workers by proposing cuts to penalty rates be accompanied by beneficial pay and conditions so workers are not left worse off.
The policy will be announced by Bill Shorten on Wednesday to sharpen Labor’s attack against the Turnbull government on penalty rates as the Fair Work Commission decides whether to cut penalty rates for up to 800,000 people in the retail and hospital industry.The policy will be announced by Bill Shorten on Wednesday to sharpen Labor’s attack against the Turnbull government on penalty rates as the Fair Work Commission decides whether to cut penalty rates for up to 800,000 people in the retail and hospital industry.
But Greens employment spokesman, Adam Bandt, has warned the policy is a “sleight of hand” that still leaves the door open to penalty rate cuts.
Before the 2016 election the Greens promised to legislate the current levels of penalty rates as a floor below which the commission could not cut rates or require that weekend rates be set higher than weekday rates and Sunday rates higher than Saturday.Before the 2016 election the Greens promised to legislate the current levels of penalty rates as a floor below which the commission could not cut rates or require that weekend rates be set higher than weekday rates and Sunday rates higher than Saturday.
Labor refused to guarantee current levels of penalty rates but, in a speech to the John Curtin Research Centre in Melbourne, Shorten will promise a bill to ensure workers will not be worse off if rates are cut.Labor refused to guarantee current levels of penalty rates but, in a speech to the John Curtin Research Centre in Melbourne, Shorten will promise a bill to ensure workers will not be worse off if rates are cut.
The Fair Work Commission is currently considering an employer-led application to cut Sunday penalty rates in retail and hospitality awards.The Fair Work Commission is currently considering an employer-led application to cut Sunday penalty rates in retail and hospitality awards.
Unions fear a 2014 decision by the commission to cut Sunday penalty rates by about $4 an hour for lower-level casual employees in the restaurant industry would act as a precedent that would open the floodgates for cutting Sunday rates in other industries.Unions fear a 2014 decision by the commission to cut Sunday penalty rates by about $4 an hour for lower-level casual employees in the restaurant industry would act as a precedent that would open the floodgates for cutting Sunday rates in other industries.
The government’s position is to allow the Fair Work Commission to set penalty rates.The government’s position is to allow the Fair Work Commission to set penalty rates.
In his speech on Wednesday night Shorten will say that Labor understands “penalty rates are not a luxury” but are spent on necessities such as food and petrol.In his speech on Wednesday night Shorten will say that Labor understands “penalty rates are not a luxury” but are spent on necessities such as food and petrol.
“That’s why, when I was the minister for workplace relations, Labor changed the modern awards objective so that the Fair Work Commission had to recognise the sacrifice of working unsocial, irregular or unpredictable hours, and on weekends or public holidays when setting awards.”“That’s why, when I was the minister for workplace relations, Labor changed the modern awards objective so that the Fair Work Commission had to recognise the sacrifice of working unsocial, irregular or unpredictable hours, and on weekends or public holidays when setting awards.”
Shorten will accuse the Turnbull government of “doing nothing” to protect penalty rates at a time when inequality is at a 75-year high and wages growth is the lowest on record.Shorten will accuse the Turnbull government of “doing nothing” to protect penalty rates at a time when inequality is at a 75-year high and wages growth is the lowest on record.
“In fact, more than 60 members of the government, from Malcolm Turnbull down, are on the record arguing that penalty rates should be cut – or abolished altogether.”“In fact, more than 60 members of the government, from Malcolm Turnbull down, are on the record arguing that penalty rates should be cut – or abolished altogether.”
Shorten will label the Greens policy, which more directly protects penalty rates, a “stupidity” and “impractical”.Shorten will label the Greens policy, which more directly protects penalty rates, a “stupidity” and “impractical”.
Labor will not legislate penalty rates “but, if necessary, we would consider changing the rules, which guide the exercise of the commission’s discretion”, Shorten will say.Labor will not legislate penalty rates “but, if necessary, we would consider changing the rules, which guide the exercise of the commission’s discretion”, Shorten will say.
“If the commission were to cut penalty rates for hundreds of thousands of already low-paid workers without sufficient compensation, leaving people worse off, Labor would not accept this.”“If the commission were to cut penalty rates for hundreds of thousands of already low-paid workers without sufficient compensation, leaving people worse off, Labor would not accept this.”
Shortens proposal implies cuts to penalty rates may have to be accompanied with higher base rates of pay so that workers’ take-home pay is not reduced.Shortens proposal implies cuts to penalty rates may have to be accompanied with higher base rates of pay so that workers’ take-home pay is not reduced.
However, if non-monetary conditions are able to satisfy the test of whether workers are not worse off, then employers may seek to use other improvements to justify a cut to penalty rates and take-home pay.However, if non-monetary conditions are able to satisfy the test of whether workers are not worse off, then employers may seek to use other improvements to justify a cut to penalty rates and take-home pay.
Bandt said that Labor’s policy amounted to allowing the Fair Work Commission to cut penalty rates “as long as weekly hourly rates are lifted or some other vague compensation is offered”.
“Labor is apparently defending the approach taken at places like Woolworths and Hungry Jack’s, where the commission approves penalty rates being traded off for vague compensation elsewhere and workers end up thousands of dollars out of pocket.”
Bandt said protecting total take-home pay was not sufficient either, because employers could use routine wage rises to cover the rising cost of living “dressed up as compensation for penalty rate cuts”.
Although the government could block any proposal to protect take-home pay in the lower house, Labor could pass a bill in the Senate with crossbench support to put pressure on the Coalition over pay.Although the government could block any proposal to protect take-home pay in the lower house, Labor could pass a bill in the Senate with crossbench support to put pressure on the Coalition over pay.