The Fair Work Commission has made the brave decision to modernise Sunday and public holiday penalty rates, recognising the impact these unviable rates have on employment.
“This is really a win for the unemployed and underemployed. Not to mention consumers and business,” the South Australian Business Chamber Executive Director Industry & Government Engagement, Anthony Penney said today.
“For too long South Australian businesses have been crippled by Sunday penalty rates. By modernising these rates more of our State’s young and unemployed will be offered jobs.”
“With South Australia’s unemployment rate at 6.4 per cent and 56,600 South Australians looking for work in January 2017, this is an important step towards jobs growth,” Mr Penney said.
Adjusted Sunday rates will also help South Australia’s 90,800 underemployed workers. The South Australian Business Chamber welcomes the opportunity for employers to now provide Sunday work to their employees.
The Fair Work Commission concluded that the deterrent effect of high Sunday penalty rates did not meet the objectives of the Fair Work Act to provide a balanced framework for national economic prosperity and social inclusion for all Australians. This is evidenced in high unemployment, businesses not opening in peak times and business closures.
“South Australia has a staggering youth unemployment rate of 16.9 per cent. With the majority of retail workers under the age of 25, this decision is a win for all those looking for a job or for extra hours. Stores will be able to open on Sundays and offer work which was previously unprofitable,” Mr Penney said.
This decision is also good news for South Australian consumers. Customers, particularly those from interstate and overseas, expect businesses to be open on Sundays and public holidays. This decision means employers can once again open their doors, and meet this expectation, without doubling their wages bill.
The decision to modernise Sunday and public holiday penalty rates continues to recognise the social inconvenience for working on those days but balances this with the need for businesses to operate and be profitable.
“The Commission received almost 6,000 submissions and heard from 143 witnesses and experts over 39 days, demonstrating a robust process with a well-considered decision,” Mr Penney said.
The South Australian Business Chamber calls on all sides, including the unions and politicians, to respect the Fair Work Commission’s decision. A major obstacle for doing business has been recognised and addressed by Australia’s independent industrial umpire.
“The last thing businesses and South Australia’s unemployed need is uncertainty following this decision,” Mr Penney said today.
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