Workers pay the penalty for cuts

WEAKNESS in the Australian economy is further proof of the need to stop cuts to penalty rates, according to Labor and unions.

But the Government says it didn’t choose the cuts and is trying to give people more money to spend through its promised tax cuts.

About 700,000 retail, fast food, hospitality and pharmacy workers had their Sunday penalty rates pared back yesterday, as part of a gradual easing of the loading initiated by the Fair Work Commission.

Labor has long railed against the cuts, but leader Anthony Albanese said stopping them was even more important while the Reserve Bank indicates the economy is softening.

“At a time when wages are not keeping up with the cost of living for so many Australian families, this is a blow to them, but it’s also a blow to the national economy,” he said yesterday.

Labor’s workplace spokesman Tony Burke said it was simply not fair that many people would earn less this Sunday than a week before.

However Finance Minister Mathias Cormann stressed the Fair Work Commission decided on the changes to penalty rates independently.

He said the wage price index, which tracks wage growth, was picking up and the Government was trying to put more cash in people’s pockets through its tax cuts.

Looking to the economy more broadly, he said spending big on infrastructure was also in the Government’s sights to keep things moving.

“We are very focused on making sure that we continue to deliver our pro-growth agenda,” Senator Cormann told ABC Radio National.

“It is what is reflected in our Budget and it is what we will continue to do into the future.”

Australian Council of Trade

THIS (CUTS TO PENALTY RATES) IS A BLOW TO THEM, BUT IT’S ALSO A BLOW TO THE NATIONAL ECONOMY ANTHONY ALBANESE

Unions president Michele O’neil agrees the economy would be best served by keeping Sunday rates higher, meaning many workers have more money to spend.

“It would be good for small business, good for local businesses and good for the economy,” she said.

Hospitality union United Voice also said the penalty rate cuts needed the boot for equity’s sake.

“Working people need jobs that are secure and pay them fairly – not more cuts that stop them from being able to pay for life’s essentials,” said national secretary Jo-anne Schofield.