Shorten hoping to nullify penalty rate cuts

LABOR will move to ban any reduction in penalty rates if it will reduce a worker’s takehome pay in an effort to block the Fair Work Commission’s decision from taking effect.

The Federal Opposition will give notice of its intention to introduce changes to the Fair Work Act into the Parliament which would effectively create a new fairness test.

Labor Leader Bill Shorten has written to Prime Minister Malcolm Turnbull imploring the Government to work with the Opposition on the issue.

“A decision not to intervene is a decision to endorse the proposed cuts to pay,” Mr Shorten said in the letter.

“There is no doubt that this decision will cause genuine financial hardship. It is simply unacceptable to reduce penalty rates without compensation.”

Mr Turnbull and business groups have said the decision of the independent umpire needed to be respected.

The Government pointed out that during the last federal election campaign, Mr Shorten promised to respect the commission’s decision.

It also highlighted that in 2013, as Workplace Relations Minister, Mr Shorten amended the Fair Work Act to require the commission to review penalty rates as part of the four-yearly review process.

“The amendments that I made in 2013 were intended to ensure the FWC took into account ‘the need to provide additional remuneration for employees working outside normal hours, such as employees working overtime or on weekends’,” Mr Shorten said in his letter to the PM.

“We know that at least 600,000 people will be hurt by this pay cut, and the brunt of this decision will be borne by low income earners.”