$50 an hour penalty rates force businesses to stay shut this Easter

DANIEL MEERS
APRIL 02, 2015
THE DAILY TELEGRAPH

THE Australian Chamber of Commerce and Industry has launched a national ­campaign to fight madcap penalty rates that will allow teenagers to earn $50 an hour to serve tables over the Easter long weekend.
Dozens of restaurants and small businesses in Sydney will close for the whole long weekend because it is too ­expensive to pay junior staff $350 a day.
Those businesses have been asked to put glossy ­posters in the shopfronts ­urging the federal government to change penalty rates.
The posters will read: “We’re sorry we’re closed today. We’d like to be able to serve you. We’d like to give local people jobs. But the ­penalty rates are too high.”
“Customers lose because the services they want are harder to access, staff lose ­because they don’t get the hours many are seeking.” – Kate Carnell
The closures will affect employees, who will earn nothing this weekend despite being prepared to work at lower penalty rates.
Businesses are not allowed to pay lower rates.
Unions across NSW ­yesterday launched vicious campaigns against the ACCI and small business owners who are closing their stores.
A Facebook page has been started to “out” businesses who are closing and calling for penalty rates to change.
The laws, which mean pay rates at least double across ­tomorrow, Saturday, Sunday and Monday are crippling businesses and workers.
ACCI chief executive Kate Carnell said the existing ­enalty rate arrangement was a “lose-lose” situation.
“Customers lose because the services they want are harder to access, staff lose ­because they don’t get the hours many are seeking at work and business proprietors lose because they get ­little benefit from the holiday traffic,’’ Ms Carnell said.
“We are encouraging small retailers and hospitality businesses to put up posters in their windows explaining to their customers why they are closed or why they are ­operating with reduced staff.”
Ms Carnell said businesses were happy to pay incentives for employees to work ­weekend and public holidays, but said the existing penalty rates were outdated.
“We are encouraging small retailers and hospitality businesses to put up posters explaining why they are closed.” Kate Carnell
“A casual retail shop ­assistant or fast food ­employee is paid a minimum of $50.94 an hour on public holidays,’’ Ms Carnell said.
Federal Small Business Minister Bruce Billson is ­consulting employers to look at potential compromises.
Mr Billson declined to comment yesterday.
A landmark agreement was struck in South Australia last month which would ­reduce penalty rates on ­weekends in return for higher base pay rates.
Business groups believe there needs to be nationwide uniformity in the laws.