Paying penalty rates means potentially profitable periods like Easter are a dead zone

[nero_bolt]

Paying penalty rates means potentially profitable periods like Easter are a dead zone 

• Ross Greenwood
• From: The Daily Telegraph
• April 23, 2014 4:24PM

IF you wandered around cities or country towns over Easter and wondered why nothing seemed to be open ... get angry. 

The main reason is this: penalty rates.

The argument for penalty rates is that people don’t like to be inconvenienced having to work on weekends or public holidays.

So they should be paid extra money for losing that time with family.

That sort of argument might have flown in a different era — the 1950s maybe — but in a 24-7 world, it makes no sense.

For example, you can now internet shop any day of the year, at any time.

You can do your banking, trade shares and order pizza.

It makes no difference to you if this happens to fall on a Sunday, Tuesday or Easter Monday. In other words, your shopping and consumption habits have changed.

But the rules regarding penalty rates have barely moved.

Under the previous Government they went backwards, as enterprise bargaining agreements and workplace contracts were stiffened up by Fair Work Australia.

The Labor government called it “modern awards” — perhaps the worst misnomer ever attributed to any piece of Australian law.

“Modern awards” mean’t employers often had to pay their employees higher hourly rates.

This weekend waiting staff who worked on the four days declared public holidays by the state government earned up to double time and a half their normal rate.

You can see the impost on employers.

And the general rule of thumb for expenditure for many small businesses is this: quarter rent, a quarter wages, a quarter stock and a quarter profit.

But if you double the wages bill a public holiday, the maths tells you the owners profit share from the business quickly evaporates.

That’s where the lack of fairness lies; and it’s why so many shops and tourism attractions were closed over Easter.

And far from helping all employees (some, it should be said, prefer to work weekends because it helps couples with child-rearing) penalty rates are a handbrake on youth employment because if businesses close on weekends, there is less opportunity for young workers trying to get a few shifts.

But if the Federal Government says it can’t stop this archaic system — at least not before another Federal Election — then a simple way to tweak it would be to follow the NSW Business Chamber’s model.

That is to pay people their normal-time wages on the first five days they work (be that Monday to Friday or Wednesday to Sunday).

Then, if they work an extra day — they should then be paid some form of penalty rate.

I recognise this as a compromise — but at least it’s better than the system we have now.

[*crikey*mate*]

I didn't read all that, but I agree with penalty rates.

MY kids go to school Monday to friday.

For years, MY OH worked every weekend and most nights having a weekday off.

He missed out on so much time with his kids and his kids missed out on time with their father.

Last Christmas was his first Christmas home in 22 years I have known him.

There has to be some recompense for missing out on all that, otherwise no one would ever want to work during those times.

[debra9275]

I was in a country town over Easter & it was great, everything was open & it was really busy. That's what attracted the tourists like us there.. We went out for dinner on Easter Sunday & we played the pokies. We did our bit for the local economy. The staff everywhere were lovely and working hard. I hope they got paid penalty rates for working on Easter Sunday, they deserved to IMO. Thanks to them. We had a great time.

[lakeland27]

greenwood doesn't take into account that a shop in a country town might not be open merely for one or two customers. in many cases the business owner would operate the business themselves on that day if it were worthwhile. if the owner was not willing to work on that day, perhaps wanting to do something else.. why would an employee want to for very little reward .. greenwood says 'does it make you angry ?''  i'd suggest if it makes a person angry they have an inflated sense of entitlement 

[cherry*135]

There are more occupations who get penal rates than restaurant/cafe staff, retail and holiday accom staff. Nurses, disabilty support workerrs etc. Hospitals, permanent accommodation for intellectually disabled persons are open EVERY day.

Cafes charge 10% more on weekends and Public Holiday. Hotels and other accomdatiom have a higher rate on long weekends.
Retailers bonus is more shoppers - a lot of people off work who go shopping, spending money in their stores on long weekends.

I have a relative that is a disabilty support worker..if he didnt get penal rates he would quit. It is not an easy job. He is experienced and been doing it for a long time. Would there be heaps of people applying for his job with no penal rates?

[cherry*135]

No dead zone where I live. Any small towns in tourist areas are open for business and jam packed with visitors on long weekends.

[spotweldersfriend]

This place was buzzing with tourists.Shops were doing great business.
Are they willing to drop their prices if penalty rates go? I don't think so.

[the_hawk*]

Went to Handorfe in the Adelaide hills on Sunday and the place was packed out with all restraunts and hotels having people standing around waiting for a table to be vactaed so they could get a feed.

No shortage of places open or customers.

perhaps some of these places that are doing it tough is because their penny pinching tight wag ways no one wanyts to be there and not because they cant get people to work as slaves.

[cherry*135]

The NSW Public Holiday Act was changed in 2010. For Easter all 4 days Fri -Mon were made Public Holidays. That could be a bit excessive, only 2 days were Pub. Hols before that change.

[polksaladallie]

That sort of argument might have flown in a different era — the 1950s maybe — but in a 24-7 world, it makes no sense.

There was no such thing as penalty rates in the 1950s.