Facing the 'painful facts' on penalty rates

R&CA is currently awaiting the outcome of an appeal to the Fair Work Commission to review penalty rates set in the Restaurant Industry Award. R&CA CEO John Hart said it's important for industry to understand that workplace relations is regulated by the Federal government.

"Penalty rates are determined nationally, Award by Award, by the Fair Work Commission. They are not set by state governments or by legislation.

"The issue is the impact of penalty rates is far reaching, affecting operators large and small, across all states and territories.

"As industry waits for the determination of its case, it's important to encourage the Federal Government to understand the impact - state to state, business to business," R&CA CEO John Hart said.

We need the Federal government to understand the impact this is having on state and territory economies, particularly in terms of operator productivity and employment," Hart said.

"Data presented by R&CA at the original Fair Work Commission hearing showed that 3,500 jobs have been lost in the industry due to restaurant closures, largely attributed to penalty rates.

"Approximately one third of restaurants are now closed on Sundays, due to prohibitive labour costs. This does not send a message to investors, consumers or visitors that Australia is open for business," Hart said.

"R&CA is currently working with respective state and territory governments to demonstrate the impact of penalty rates on operators in each state," Hart said.