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Workers' Sunday penalty rates should be cut, says Productivity Commission Workers' Sunday penalty rates should be cut, says Productivity Commission
(about 4 hours later)
Australian workers in the hospitality, entertainment, retail, restaurant and cafe industries face cuts to their Sunday penalty rates if the Abbott government accepts changes recommended by the Productivity Commission.Australian workers in the hospitality, entertainment, retail, restaurant and cafe industries face cuts to their Sunday penalty rates if the Abbott government accepts changes recommended by the Productivity Commission.
The commission, in its draft blueprint for changes to the workplace relations system, also proposes a new type of statutory contract that would allow businesses to offer jobs with alterations to award conditions on a “take it or leave it” basis.The commission, in its draft blueprint for changes to the workplace relations system, also proposes a new type of statutory contract that would allow businesses to offer jobs with alterations to award conditions on a “take it or leave it” basis.
The contract idea is likely to trigger comparison with the Australian workplace agreements that were a hallmark of the former Howard government’s WorkChoices regime. The contract idea has triggered trigger comparisons with the Australian workplace agreements (AWAs) that were a hallmark of the former Howard government’s WorkChoices regime.
The commission’s 46 draft recommendations span a range of politically contentious areas including unfair dismissal, the minimum wage, penalty rates and workplace flexibility and are set to revive debate about what changes the Coalition could present to voters at the next election.The commission’s 46 draft recommendations span a range of politically contentious areas including unfair dismissal, the minimum wage, penalty rates and workplace flexibility and are set to revive debate about what changes the Coalition could present to voters at the next election.
The trade union movement immediately flagged a revival of its 2007 anti-WorkChoices campaign, while Tony Abbott played down expectations of imminent changes.
Related: Penalty rates campaign aims to cut Sunday rates to Saturday levelRelated: Penalty rates campaign aims to cut Sunday rates to Saturday level
The report says the nation’s workplace relations system is “not systematically dysfunctional” and needs “repair not replacement”.The report says the nation’s workplace relations system is “not systematically dysfunctional” and needs “repair not replacement”.
While penalty rates have a legitimate role in compensating workers for long hours or unsociable shift times, the report says, demand for weekend supply of services has increased in the past few decades. The commission suggests that in certain industries the Sunday penalty rates should be brought down to match rates that apply on Saturdays.While penalty rates have a legitimate role in compensating workers for long hours or unsociable shift times, the report says, demand for weekend supply of services has increased in the past few decades. The commission suggests that in certain industries the Sunday penalty rates should be brought down to match rates that apply on Saturdays.
“Sunday penalty rates that are not part of overtime or shift work should be set at Saturday rates for the hospitality, entertainment, retail, restaurants and cafe industries,” the report says.“Sunday penalty rates that are not part of overtime or shift work should be set at Saturday rates for the hospitality, entertainment, retail, restaurants and cafe industries,” the report says.
“Weekend penalty rates should be set to achieve greater consistency between the hospitality, entertainment, retail, restaurants and cafe industries, but without the expectation of a single rate across all of them.”“Weekend penalty rates should be set to achieve greater consistency between the hospitality, entertainment, retail, restaurants and cafe industries, but without the expectation of a single rate across all of them.”
The report says the Fair Work Commission (FWC) should give at least one year’s notice before implementing the changes to penalty rates.The report says the Fair Work Commission (FWC) should give at least one year’s notice before implementing the changes to penalty rates.
The Productivity Commission also suggests investigation of a new statutory contract to be known as an “enterprise contract”.The Productivity Commission also suggests investigation of a new statutory contract to be known as an “enterprise contract”.
The idea, which would allow small businesses to avoid union-negotiated enterprise bargaining, is not a formal recommendation but is floated as an option for further consultation. The idea, which would allow small and medium businesses to avoid union-negotiated enterprise bargaining, is not a formal recommendation but is floated as an option for further consultation.
“This would permit employers to vary an award for entire classes of employees (level 1 retail employees, for example), or for a group of particular employees, without having to negotiate with each party individually or to form an enterprise agreement,” the report says.“This would permit employers to vary an award for entire classes of employees (level 1 retail employees, for example), or for a group of particular employees, without having to negotiate with each party individually or to form an enterprise agreement,” the report says.
“It would effectively amount to a collective individual flexibility arrangement, but with some further flexibility. Employers could offer it to all prospective employees as a condition of employment (resembling enterprise agreements, where new employees are covered by an existing agreement when they are hired).“It would effectively amount to a collective individual flexibility arrangement, but with some further flexibility. Employers could offer it to all prospective employees as a condition of employment (resembling enterprise agreements, where new employees are covered by an existing agreement when they are hired).
Related: Workplace relations: government moves to ease inquiry fearsRelated: Workplace relations: government moves to ease inquiry fears
“No employee ballot would be required for the adoption of an enterprise contract, nor would any employee group be involved in its preparation and agreement unless the employer wished this to be the case. As in enterprise agreements, employers and individual employees could still negotiate individual flexibility arrangements as carve outs from the enterprise contract if they mutually agreed.”“No employee ballot would be required for the adoption of an enterprise contract, nor would any employee group be involved in its preparation and agreement unless the employer wished this to be the case. As in enterprise agreements, employers and individual employees could still negotiate individual flexibility arrangements as carve outs from the enterprise contract if they mutually agreed.”
The commission says the employer would have to lodge the contract with the FWC, but would not have to gain its approval. An employee would later be able to lodge a complaint if the agreement breached the no-disadvantage test.The commission says the employer would have to lodge the contract with the FWC, but would not have to gain its approval. An employee would later be able to lodge a complaint if the agreement breached the no-disadvantage test.
Employees could opt to exit the enterprise contract after one year and return to the standard award conditions without jeopardising their employment, the report suggests.Employees could opt to exit the enterprise contract after one year and return to the standard award conditions without jeopardising their employment, the report suggests.
Other recommendations include:Other recommendations include: