Leichhardt could lose millions in penalties
A NEW study has suggested the Far North electorate of Leichhardt could be the hardest hit in the country thanks to the Fair Work Commission’s recommendation to cut penalty rates.
The report, compiled by Labor think-tank the McKell Institute, found workers would lose more than $21 million in disposable income as a result of the government-backed changes.
The commission wants to reduce weekend and holiday penalty rates for hospitality, fast food and retail workers by between 25 and 50 per cent.
But Leichhardt MP Warren Entsch has questioned the accuracy of the McKell Institute report. He said it was funded by the unions as part of an ongoing campaign.
“If you feed the right numbers in you can get any result you want,” he said.
“Labor appointed the Fair Work Commissioner, it was Bill Shorten who gave them the terms of reference to review this, they wanted to have a look at that stage and they accepted it.
“A lot of these young people say they would be happy to work for normal time (pay rate) to get some work but businesses cannot employ them.”
Labor’s Australian Jobs Taskforce chairwoman and Longman MP Susan Lamb said workers in Leichhardt should take the McKell Institute’s report seriously.
“This is research that is based on fact,” said Ms Lamb, who was in Cairns yesterday for a public hearing on penalty rate cuts.
“We are talking $21 million, we are talking nearly 10,000 workers in the Cairns region that will be impacted.” $2253 each.
Leichhardt will be the worst hit electorate, with another North Queensland electorate, Dawson, the third worst.
It also found nationwide, regional and rural workers stand to lose around $667 million in disposable income, with regional and rural economies collectively set to lose at least $289.5 million as businesses shift money previously allocated to labour costs into other jurisdictions.