Release Date: 15/05/2014
The reduction in Sunday penalty rates for some hospitality sectors will encourage additional working hours and jobs, according to the Tasmanian Chamber of Commerce and Industry CEO Michael Bailey.
The Fair Work Commission also accepted that some cafes and restaurants would be more likely to hire staff if wages were lowered.
The Commission ruled that the loading for working on Sundays would drop from 75 per cent to 50 per cent for some casual workers in July. The decision will see a reduction in the casual loading from 175 per cent to 150 per cent for grades one and two employees.
Mr Bailey said it was significant that the commission has now accepted higher penalty rates could lead to lower employment.
“This is consistent with what we have argued with State and Federal Governments and is being argued nationally by the Chamber movement.
“We’re not trying to create an employment underclass, as claimed by the union movement, but we need a common sense wage regime which allows cafes and restaurants to open on a Sunday.
“This now gives cafés and restaurants confidence to consider re-opening on Sundays and create more working hours which equates to more jobs.
“It certainly doesn’t mean a windfall for the industry but it gives employers a better chance of breaking even and not operating at a loss.”
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Contact: TCCI Chief Executive, Michael Bailey, mobile 0437 322 338