"There is a great deal of misinformation currently being generated about penalty rates. It is important that the facts are understood to avoid generating unnecessary community concern and ill-conceived proposals for legislative changes," the Australian Industry Group's Head of National Workplace Relations Policy, Stephen Smith, said recently.
Fact One: Many companies, for example McDonalds Australia, have enterprise agreements which incorporate weekend penalty rates within higher rates of pay for all hours worked. These agreements benefit employees and businesses, and have been held by the independent Fair Work Commission (FWC) to leave employees better off overall. The employees covered by such agreements have voted in support of them. It is in no-one's interests for flexible work arrangements which benefit all parties to be misrepresented and unfairly criticised.
Fact Two: Legislating penalty rates would be unworkable. There are large differences in existing penalty rates in different industries and occupations. Any attempt to implement a "one size fits all" approach in legislation would result in major winners and major losers. Also, penalty rates do not typically apply to managers and professional employees because they are paid a salary which takes into account any requirements to work beyond or outside the ordinary hours.
Fact Three: No-one is proposing that penalty rates should be reduced for firefighters, nurses, hospital workers or employees in most industries. The FWC Penalty Rates Case relates to workers in the fast food, restaurant, hospitality and retail industries. There are special circumstances in these industries. For example, the workforce in the fast food industry is heavily comprised of young people who are not available to work 9 to 5, Monday to Friday. Also, customers typically want to buy fast food at breakfast-time and dinner-time ? not during standard business hours. Penalty rates in the fast food industry need to reflect these realities. Ai Group has proposed that the Sunday penalty rate for fast food workers be aligned with the Saturday penalty rate. The Productivity Commission recommended a similar change during its recent inquiry into the Workplace Relations Framework.
"The community debate about penalty rates is important, but it should be based on the facts, not distortions and mistruths," Smith said.