Penalty rates cut is good news for business

THE Mid North Coast NSW Business Chamber believes the decision by a full bench of the Fair Work Commission regarding penalty rates on Sundays is a great win for the region.
The commission has reduced the penalty rates payable to a casual worker who works on Sundays in the hospitality sector from 75 per cent to 50 per cent.
“The NSW Business Chamber was one of the employer groups that made this application, because we know the crippling impacts penalty rates are having on small business,” chamber regional manager Kellon Beard said.
“The commission found there was a link between penalty rates and employment prospects, something that we have argued since day one.
“The health and well-being of the Mid North Coast region is linked to our attractiveness as a tourist destination, and with the amount of venues that couldn’t afford to open on Sundays, it was becoming a real problem.
“The NSW Business Chamber has been calling for a proper root and branch review of the penalty rate system, and this decision by the Fair Work Commission should make people sit up and take notice about the impact these prohibitive rates have on creating and maintaining jobs, especially on the Mid North Coast region.
“I know some parts of the union movement will be split by this decision. However, we’ve said all along that if cafes and restaurants can’t afford to open at all on Sundays, not only will their members not receive any penalty rates, but they won’t get paid a wage at all.
“This is, and was never about ripping penalty rates away from workers. It’s about finding the middle ground to make it financially possible for owners of businesses to continue to trade on Sundays, as opposed to closing their doors because of their wage bill.
“Since the decision, I’ve been amazed by the number of restaurant and cafe owners who’ve said to me they will revisit their Sunday trading hours because it’s become more attractive for them to open their doors and keep residents of the Mid North Coast employed.”

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