Penalty rates cuts to cost workers thousands

WORKERS will lose thousands of dollars every year after the Fair Work Commission slashed Sunday penalty rates in a landmark decision yesterday.

Retail, fast food and hospitality workers will have their Sunday penalty loadings reduced, but not to the Satur- day rates sought by business groups during the industrial umpire’s long-running inquiry.

Hospitality workers on an award will have their Sunday penalty rate cut from 175 per cent to 150 per cent, retail workers’ rates will get cut from 200 to 150 per cent and fast food workers will have their rate cut from 150 per cent to 125 per cent.

The public holiday rate in retail, hospitality, and fast food will also be cut.

Under the changes, retail workers would lose more than $4000 a year, while pharmacy managers would be without more than $6000.

Prime Minister Malcolm Turnbull said he supported the independence of the Fair Work Commission and the Government would not intervene in the decision.

Employment Minister Michaelia Cash said Labor leader Bill Shorten, during his tenure as workplace minister, changed the Fair Work Act to require the Fair Work Commission to review penalty rates as part of a four-yearly process.

“Today’s decision by the commission to adjust penalty rates is, therefore, a direct result of the review process put in place by Bill Shorten,” Senator Cash said.

But Mr Shorten said it was a “kick in the guts” for some of the nation’s lowest paid workers. “The reality is that the unthinkable has happened – we are seeing mass pay cuts under a Turnbull government,” Mr Shorten said.

The Greens joined Labor, saying they would introduce legislation to try to stop the cuts going ahead.

The lower penalty rates will start from July 1.

“The reality is that the unthinkable has happened – we are seeing mass pay cuts under a Turnbull government” BILL SHORTEN