I’m amazed that the Fair work Commission still believes in the trickle down effect and that the various business associations are the only one’s that know how the changes to penalty rates will effect both employment and employees. If anyone believes that the reduction in penalty rates for Sunday will automatically result in increased employment is naive at best, lying at worst. I would expect the majority of employers will pocket the resulting savings because the Fair Work made its ruling to improve productivity. That is to say the Commission was looking for a reset where the same amount of work is carried out for a reduced cost. Employers will not increase employment by 25% if their current staff is meeting workplace output demands. Equally, employers not currently opening on Sundays because the wage outlay is unlikely to be covered by the Sunday trade will not have reason to believe that this has changed as a result of the 25% cut.
The problem is that no-one seems to have thought through the real effects on employees and the rest of the economy. This ruling has resulted in 600,000 employees having their Sunday penalty rates cut. Many of those affected are people who use weekend shifts as their sole income as they undertake full time study. Others use the weekend shifts to make it through the week to week struggle. I personally know people on the Disability Support Pension that have been able to undertake limited Sunday shifts which results in greater return for their restricted labour.
The Commissioners need to realise that their actions will result in the lowest paid workers in Australia having their wages cut and the likelihood that this will have an adverse effect on EBAs that will be negotiated over the next few years. It seems as if this is a deliberate attack on the poorly paid in an industry that provides services to the wealthy – are they aiming to reduce costs to the rich at the expense of the poor?