Reducing penalty rates can boost jobs and work hours: ACCI

Patricia Forsythe, Spokesperson for the Australian Chamber, said today: "With 739,000 people unemployed, including 258,000 young people, we need to make it easier for businesses to hire staff. One way to improve the capacity of businesses in the retail and hospitality sector to take on staff is to reduce penalty rates.
 
"While our exact claim varies from industry to industry and from permanent staff to casuals, in general terms we want to bring Sunday rates down to match that of Saturday, and we want to reduce public holiday rates closer to the current Sunday rate.
 
"This proposal reflects changing public attitudes as we move towards a 24/7 economy. Consumers expect their cafes, restaurants and retailers to be open throughout the week, including on weekends and some public holidays, to meet their needs.
 
"Many people now treat Sundays similarly to Saturdays and are more willing to work on some public holidays. Our workplace awards should reflect this. Employers are not seeking to remove penalty rates entirely, but instead to ensure they meet community expectations and are set at a level that improves job opportunities.
 
"We know from past surveys that reducing penalty rates means that retail and hospitality businesses are more willing to open longer hours and take on more staff. At present in many small businesses the proprietor works on days with high penalty rates because it is too costly to offer hours to staff.
 
"Many people also prefer to work weekends and public holidays, including people who are studying and those that need to take on caring responsibilities. These people should not be disadvantaged by having few work opportunities available to them.
 
"The Productivity Commission last year documented the economic benefits to reducing penalty rates, including noting the superior performance of affected sectors in New Zealand, where similar penalty rates are not in place.
 
"The Fair Work Commission has a chance to follow the recommendations of the Productivity Commission. We look forward to putting the case to it."