What effects the new rates have
THE Fair Work Commission yesterday revealed cuts to the penalty wage rates for Sundays and public holidays. What were they and what does it mean for you?
What were the Sunday rate cuts and who do they affect? Anyone in hospitality or restaurants, fast food, retail or pharmacy. Union groups have tipped some workers will lose up to $6000 annually from pay packets. The cuts are:
Full and part-time hospitality staff Sunday rates from 175 per cent of normal wage (1¾ time) to time-and-a-half or 150 per cent (Sunday rates for casuals stay at 175 per cent).
Full and part-time level one fast food staff Sunday rates from 150 per cent to 125 per cent (but level two and three staff stay at 150 per cent).
Full and part-time retail staff Sunday rates from 200 per cent (double time) to 150 per cent. Casuals drop from 200 per cent to 175 per cent.
Full and part-time pharmacy staff Sunday rates between 7am and 9pm drop from 200 per cent to 150 per cent, with casuals from 200 to 175 per cent.
What about public holiday pay rates? They are dropping – from 250 per cent (double time and a half) to 225 per cent for full and part timers in hospitality, retail, fast food and pharmacy. Casuals – except in restaurants – will have the penalty rate cut from 275 per cent to 250 per cent. (Restaurateurs said the drop still wasn’t big enough to avoid 10 to 15 per cent surcharges on prices). Why cut the rates?
Retail and business lobby groups have been leading calls to reduce Sunday penalty rates from double time (200 per cent) to time-and-ahalf (150 per cent), so they are more in line with Saturday.
When do they come into effect? Public holiday cuts kick in from July 1. The Sunday cuts’ introduction will be staggered so staff can adjust but the Fast Work Commission has not yet outlined the timeline.
How will it help businesses? Employers say they will be incentivised to open longer hours on Sundays, put on extra staff and open on public holidays when previously they would have shut.
What does it mean for jobs? The business lobby believes it will create more jobs, particularly impacting youth unemployment which is high on the Gold Coast.
Are all Sunday workers affected? No. Casual hospitality staff will be paid the same as always, 1¾ time (but owners are lobbying for cuts).
How much less will people on current hospitality time and three-quarter penalty rates lose? Across an eight-hour shift, about $35 for your standard Glitter Strip bar tender. If on the national minimum wage of $17.70 per hour, your takehome pay from an eight-hour Sunday shift drops from $248 to $212, or a drop of $36. For higher earners on $30 per hour, hourly rates drops from $52.50 to $45 on Sunday meaning your takehome pay from an eight-hour Sunday shift drops from $420 to $360.