NSW Business Chamber Mid North Coast regional manager Kellon Beard says there is a slight chance employees might leave their employment because of the decision to reduce penalty rates.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
“Workers are going to take a bit of a hit but there will be opportunities over the long term,” he said.
The Fair Work Commission on February 23 said Sunday penalty rates paid in retail, fast food, hospitality and pharmacy industries will be reduced from the existing levels.
Full-time and part-time workers in retail will have their Sunday penalty rates dropped from 200 per cent to 150 per cent of their standard hourly rate, while casuals will go from 200 per cent to 175 per cent.
Hospitality employees will face a reduction in Sunday pay from 175 per cent to 150 per cent, while casual hospitality workers' pay will remain unchanged.
Fast-food employees' Sunday rates will go from 150 per cent to 125 per cent for full-time and part-time staff, and casuals will go from 200 per cent to 175 per cent.
The pay cuts take effect from July.
Owner of Port Macquarie cafe Drury Lane Drury Woolnough said the biggest problem with penalty rates is it deters small businesses from trading on days like public holidays, on weekends and after hours.
“Unfortunately being a small business we have very small margins and it’s very difficult to be able to afford staff,” he said.
Mr Woolnough said he loves his staff and they are worth every penny.
“But I am not going to pay them cosmetic dentist wages for them to pour coffee,” he said.
“That’s ridiculous.”
Mr Woolnough said the slashing of penalty rates from an employer’s point of view is fantastic as it means he can give his customers the experience they want.
He said he knows how an employee might feel hard done by as he has previously been a worker himself.
Mr Woolnough said it will be beneficial for tourists to be able to go to places they want to enjoy due to businesses staying open for longer.
Mr Beard said businesses on the Mid North Coast are set to benefit as a reduction in penalty rates will give an opportunity for more profits for business and also give employers the chance to employ more staff.
The regional manager said all businesses on the Mid North Coast will be able to more effectively focus on operating within the tourism sector.
Mr Beard said the area is increasingly relying on on tourism and operating within a 24/7 economy to serve people who come to visit the region. He said the penalty rate changes are set to be critical for the region.
Australian Council of Trade Unions president Ged Kearney said ‘this is a bad day for working Australians’.
“Struggling workers won't be able to survive on a 25 or 30 per cent pay cut,” she told Fairfax Media.
