Latest news with #penaltyrates
News.com.au
10 hours ago
- Business
- News.com.au
Liberal Goldstein MP Tim Wilson says more consultation needed with small business on penalty rate ban
The Coalition has indicated it will delay Labor's proposed laws to ban the reduction of penalty and overtime rates in modern awards, with Liberal MP Tim Wilson stating more information was needed on the impact on small businesses. A new Bill, which was introduced by Employment and Workplace Relations Minister Amanda Rishworth on Thursday, will also override the Fair Work Commission (FWC) from substituting the entitlements if it reduces the overall take-home pay of even a single worker on a modern award. However, Mr Wilson, the Coalition's small business and industrial relations spokesman, accused Labor of trying to 'ram' the legislation through parliament and signalled the opposition was likely to push the Bill to an inquiry. While he confirmed he'd reviewed the legislation, Mr Wilson said Ms Rishworth was still unable to answer how the Bill would affect small businesses. 'There is a simple reality. There are no penalty rates on jobs that do not exist,' he said. 'The Coalition supports penalty rates. We support higher wages … but that isn't what we're getting from this government with their approach, where their focus is how they do their pay-offs as part of their legislative victory lap, rather than focusing on how to improve the economic conditions that list the standards of living and the wages of Australians.' While Mr Wilson said the Coalition would 'obviously talk to parties from across the parliament', the opposition had yet to take a firm stance on the Bill. Ms Rishworth urged the Coalition and Greens to support the legislation and said it was a 'key commitment' Labor took to the election. 'My message to the opposition is that they need to listen to the decision of the Australian people,' she said. 'The Australian people clearly back this government to get on with the job of getting wages moving and ensuring that Australians can earn more and keep more of what they earn.' In response, Mr Wilson said it was proper and 'standard' process to get an 'assessment of the impact of legislation'. 'This is standard, so they can make the claims about what their mandate may be, it doesn't mean it gives them a right to override the standard processes of legislative passage,' he said. As it stands, Labor will need either support of the Greens or the Coalition if it is to pass the legislation in the Senate. While the Greens have confirmed the party has reviewed the legislation, it has yet to reach a position. Greens workplace relations spokeswoman Barbara Pocock said the party was having a 'close look' at the Bill and would make a decision 'in the coming days'. She also pushed for stronger workers' rights like a four-day work week without a reduction in pay. Responding to whether the Greens would support pushing the legislation to an inquiry, she said the party would consider all options. 'This is a no-cost bill for small business, as I read it, but as I said earlier, I've just received the Bill,' she said. 'We're having a close look, and we will want to make sure that there are no unintended consequences and that we get the best possible Bill that we can for some of Australia's most vulnerable workers.' The election promise was prompted by a FWC review prompted by the Australian Retailers Association to allow senior management to take a 25 per cent wage increase above minimum award entitlements in exchange for overtime, weekend and public holiday penalty rates and rest breaks.
SBS Australia
16 hours ago
- Business
- SBS Australia
Labor to introduce penalty rates bill aimed at protecting millions of workers
A casual hospitality worker can expect to have weekend penalty rates of about $40 an hour protected under a bid to prevent take home pay for employees from being shaved. Measures to enshrine penalty and overtime rates in law will be introduced in the House of Representatives on Thursday by Employment Minister Amanda Rishworth. The bill aims to prevent variations to awards that would result in lower pay for workers. It will be among the first pieces of legislation introduced by Labor in its second term of power following the 3 May federal election. Workers can be entitled to higher pay rates when they are required to work particular hours or days, including weekends, public holidays or irregular hours. While rates can vary depending on an employee's specific award or agreement applicable to that industry, common pay rates for workers on a Sunday are double time (200 per cent) or time-and-a-half (150 per cent). A calculation of rates on the Fair Work Commission's website shows that for a casual hospitality worker, common penalties for a shift on Saturday are $40.85 per hour, while a day's work on Sunday could bring in $47.65 per hour. Protecting penalty rates was an Albanese government election pledge. Minister Amanda Rishworth says the bill will ensure the wages of about 2.6m workers are protected. Source: AAP / Mick Tsikas Rishworth said the bill will ensure the wages of about 2.6 million modern award-reliant workers are protected. "If you rely on the modern award safety net and work weekends, public holidays, early mornings or late nights, you deserve to have your wages protected," she said. "Millions of hard-working Australians rely on penalty rates and overtime rates to keep their heads above water, which is why this bill is so critical and should receive the support of both the opposition and the Greens." Labor's planned changes came after peak retail and business groups put forward proposals for large companies to opt out of providing penalty rates for staff in exchange for a raise on base levels of pay. Opposition employment spokesman Tim Wilson said the coalition supported penalty rates. "We will work through the legislation to make sure we consult the businesses and those it's going to impact to get the best outcome," he told AAP. Wilson said the absence of a regulatory impact statement, which lays out the potential impacts of the proposed changes, meant consultation was even more important to ensure it would be part of the future success of the economy. The Coalition also wants to assess how the changes would interact with the Fair Work Commission, which would be required to apply the new rules in addition to the modern awards objective in making its determination.
ABC News
19 hours ago
- Business
- ABC News
Penalty rates set to be secured
Sabra Lane: More than two million workers will have their penalty rates locked in under new laws being introduced into federal parliament today. The laws will stop an attempt by big retailers like supermarkets from negotiating to pay their workers a larger salary instead of penalty rates for overtime and weekend work. The major retailers lobby opposes the change, saying businesses want some certainty in what they pay their staff. Political reporter Isobel Roe. Isobel Roe: The Australian Retailers Association, which represents big supermarket chains such as Coles and Woolworths, wants to see less of a reliance on penalty rates. It's applied to the Fair Work Commission, proposing to allow some staff to opt out of penalty rates, overtime and some allowances in favour of a 35 per cent pay rise. But federal Labor will introduce legislation today to prevent that. That move is backed by the Shop, Distributive and Allied Employees Association. Their national secretary is Gerard Dwyer. Gerard Dwyer: The legislation will provide proper protection for lower paid workers working unsociable hours in the service sector like retail, like hospitality. Isobel Roe: The Retailers Association says it's not trying to remove penalty rates. It argues workers opting into an annual salary would gain financial stability. And businesses would have more certainty on worker wages, improving productivity. The shop union's Gerard Dwyer rejects that. Gerard Dwyer: It's got nothing to do with improving productivity. People are saying, oh, this will be simpler. But that's not the motivation. The motivation is to reduce the payment to lower paid workers who work unsociable hours. Isobel Roe: It's rare for the federal government to intervene in a Fair Work Commission matter. But in a statement, Workplace Relations Minister Amanda Rishworth says the government wants to protect the penalty rates of 2.6 million of the country's low paid workers. The legislation is likely to receive the support of the Greens, although there's been no decision made by the party yet. The Coalition's industrial relations spokesman, Tim Wilson, has been briefed on the bill and is not yet guaranteeing his party's support either. Tim Wilson: When the minister was asked whether it was going to have an impact on small business, she gave a very explicit firm commitment that it wouldn't. But we're not going to know that till we have a clear consultation with small business and hear that from them. No penalty rates are being paid on jobs that don't exist. Isobel Roe: Not all small businesses see it that way, like Nat Latter, who owns a bookstore in Perth. Nat Latter: We choose to stay closed on a public holiday because we don't make enough money on those days to cover penalty rates. However, we're happy to do that. We're happy to have the day off and for other organisations they might make a different choice. Isobel Roe: Labor's bill will be introduced to the lower house later today. Sabra Lane: Isobel Roe there.
ABC News
21 hours ago
- Business
- ABC News
Labor seeks to legislate to protect penalty rates for award workers
Workers employed under the award system could not have penalty or overtime rates bargained away under new government legislation to be introduced in the House of Representatives today. The bill is a response to a proposal from the retail employer lobby to allow some low-paid retail managers to opt out of those entitlements in exchange for a 35 per cent pay rise, a matter currently before the Fair Work umpire. The Albanese government took the unusual step of making a submission to Fair Work, arguing that pay loadings in awards were a safety net for low-paid workers and should be protected, and had foreshadowed legislation to override the matter. The bill would prevent Fair Work from varying any award to reduce or substitute either overtime or penalty rates, which Workplace Relations Minister Amanda Rishworth said would protect the "safety net" for Australia's 2.6 million award workers, roughly one in every five of the total number employed. "Hard-working Australians rely on penalty rates and overtime rates to keep their heads above water, which is why this bill is so critical," she said. The award system, which sets out minimum pay and conditions for all workers in certain sectors, has declined in usage over time as the alternative approach of bargaining has grown, but it remains common for staff in retail, hospitality, and the care sector. The proposal to vary the retail award applied to store managers earning between roughly $54,000 and $62,000, and was backed by Coles, Woolworths, Kmart, and Costco. The legislation is likely to draw frustration from industry groups and support from unions and the Greens, although a party spokeswoman told the ABC it had not made a decision yet. Shadow Industrial Relations Minister Tim Wilson said the Coalition had been briefed on the bill, and is not yet guaranteeing his party's support either. "When it comes down to it, we have concerns about making sure it doesn't hurt small businesses. "When the Minister was asked whether it was going to have impact on small business, she gave a very explicit firm commitment that it wouldn't. "But we are not going to know that until we have a clear consultation with small business." The issue also dovetails with ongoing discussions about how workplace contracts should accommodate working-from-home rights. Fair Work is considering that question in the context of the award for clerical and administrative workers, and business groups have argued that those given the right to work flexibly should not be entitled to overtime or weekend pay loading, since they can choose when they want to do their work. Unions have instead suggested the right to work from home should be presumed unless an employer can offer a compelling justification for refusing it. Depending on the details, a bill protecting penalty rates and overtime rates in all circumstances for award workers could prevent Fair Work from adopting the business groups' suggestions. The government has given some indication that it may consider legislating work-from-home rights, but has not suggested it favours any particular model for doing so.
News.com.au
a day ago
- Business
- News.com.au
Labor to introduce new Bill to protect penalty, overtime rates for 2.6 million award workers
Labor will move to protect penalty and overtime rates for about 2.6 million workers, saying 'hardworking' Aussies rely on the entitlements to 'keep their heads above water'. Employment and Workplace Relations Minister Amanda Rishworth will introduce the Bill on Thursday, and urged the Greens and Coalition to support the proposed legislation. The law would prohibit the Fair Work Commission to reduce an overtime or penalty rate, or substitute the entitlements if it reduces the overall take-home pay a worker would otherwise receive. An award would not be able to be altered if there was evidence that even a single worker would be worse off under an arrangement which traded an overtime or penalty entitlement. Ms Rishworth said the change would protect about 2.6 million award-reliant workers. 'If you rely on the modern award safety net and work weekends, public holidays, early mornings or late nights, you deserve to have your wages protected,' she said. 'Millions of hardworking Australians rely on penalty rates and overtime rates to keep their heads above water, which is why this Bill is so critical and should receive the support of both the Opposition and the Greens.' The election promise was prompted by a FWC review launched the Australian Retailers Association to allow senior management to take a 25 per cent wage increase above minimum award entitlements in exchange for overtime, weekend and public holiday penalty rates and rest breaks. The move has been backed by the supermarket giants, plus beauty giant Mecca, as well as Kmart, Costco and 7-Eleven. Prior to the election, then employment minister Murray Watt wrote to the FWC to stop large retailers from cutting the entitlements, in a rare act of government intervention. Enshrining penalty rates was a key demand from the Australian Council of Trade Unions, with secretary Sally McManus previously arguing workers should be compensated for sacrificing their weekends. However, the legislation will likely will likely be opposed by the Coalition, with industrial relations and employment spokesman Tim Wilson stating the independent FWC was already responsible for ensuring 'workers get the best arrangements possible for a fair days work'. Instead he lashed Labor's proposed Bill as being politically motivated. 'There is no threat to penalty rates,' he said on Saturday. 'What there is, is a political focus of the Government that isn't focused towards improving the economic conditions to help small businesses grow, to enable them to go on and employ the next generation of workers, to give those first generation, those first jobs to young Australians so that they can be independent and be able to get on with their economic futures.'
