Bosses love it, workers hate it, but will the new penalty rate reduction boost Cairns’ economy?
It could be boost or burden
CAIRNS employers want changes to Sunday penalty rates introduced as soon as possible to help the city’s economy.
Advance Cairns chief executive Kevin Byrne said he was not surprised at the Fair Work Commission’s decision to bring Sunday wage rates in line with lower Saturday rates.
“I think it’s going to be a shot in the arm for Cairns,” he said. “Regional economies are struggling, so the sooner these changes are brought in the better.
“I think it will increase jobs too. It might be part-time or casual roles initially but as businesses grow and thrive those jobs become permanent.”
Wharf One co-owner Will Nevile said the changes would create more flexible working arrangements.
“It will certainly increase our ability to put on more people. In the current situation the consumer gets less amenity, staff get less work, the government gets less tax and businesses get less turnover. I fail to see a winner,” he said.
Chamber of Commerce and Industry Queensland Far North Queensland regional manager Amy Turnbull said the group had told the Fair Work Commission employers reduced overall employment hours as a result of the penalty rates.
“This is a balanced solution that works for both employers and employees, contrary to fears that penalty rates would be abolished,” she said.
The Jack Hotel general manager John Lynch said, while the changes would be difficult for some staff who were used to more money, the decision would ultimately have a positive effect.
“Staff might find they get more hours,” he said.
“I think they’ve realised the squeeze on small business with regard to employment cost is too high and it is not allowing businesses to be profitable.”
Mr Lynch and Mr Nevile agreed working after hours and on weekends was part of a normal “modern” workforce.
“In the modern day and age people are working all over the place – they’re working days, nights, weekends,” Mr Lynch said.
“I think people realise in this industry that’s just when those hours are.”
But Cairns-based United Voice Queensland union representative Carolyn Macdonald said members were outraged at the cuts.
“The commission has abrogated their responsibility to uphold the safety net and many low-paid workers will now fall below the poverty benchmark,” she said.
“I think a lot of workers will not want to be working in outrage of it but a lot of them can’t afford not to.”
Chef Remya Geminiani agreed many would be annoyed at the decision.
“They often work hard on a Sunday – it’s often really busy,” she said.
“They want to have a day off so they can go camping. It’s not quite right.”
But Ms Geminiani was not personally bothered by weekend shifts.
“If I can go out during the week and have a night off then, it’s fine for me,” she said.
“In Cairns there is a lot of backpackers and we don’t have family here so we enjoy working.
“The cost of living is quite high so you have to work a lot.” TWO economic theories are set to clash when the reduced penalty rates decision comes into effect and Herron Todd White research director Rick Carr says it is hard to say which will prevail.
He said generally it would be expected that, if Sunday penalty rates were cut, more businesses would find it viable to open on Sundays and more jobs would be created.
“Also the dreaded Sunday surcharges should disappear, tourists and locals will have more choice on where to go each Sunday and the overall economy should benefit,” he said.
“At the same time, economic theory says that if Sunday penalty rates are cut then fewer people will be prepared to work on a Sunday as the financial reward for doing so is no longer there.
“Businesses could find it harder to recruit staff for Sunday work, making fewer businesses actually able to operate on Sundays and having a net economic disbenefit.”