Jane Harper
November 06, 2012
Herald Sun
SUNDAY penalty rates for shop workers should be cut to help balance the needs of weekend staff and struggling retailers, according to a major study.
Double-time Sunday wages mean some retailers are making a loss on weekends, despite busier sales, Monash University’s Sunday Trading in Australia report found. But staff would be nearly as happy if the Sunday rate was reduced to 1.5 times the regular wage.
Customer service is also taking a hit from higher wages, with retailers often reducing the number of Sunday staff or rostering on cheaper less-qualified workers.
The study also found that highly paid Sunday employees were often left worse off overall, as retailers paid more per hour but cut shift lengths to compensate.
The research follows months of intense pressure on the Government from retailers to abolish the higher Sunday rate. Businesses say they are being “pushed to the wall” by penalty rates, which can add up to an extra $100 in the pay packet of the typical Sunday worker and can see some casual waiters paid up to $40 an hour.
Industry groups have been making submissions to Fair Work Australia as part of a major review of industrial awards across the country.
“The retail sector is currently struggling to meet consumer demand to shop around the clock,” Australian Retailers Association executive director Russell Zimmerman said.
“Even when restrictions are lifted to allow extra trading hours, the costs often far outweigh the benefits.”
Mr Zimmerman said retailers weren’t looking to abolish penalty rates, but instead reduce them to a more competitive level
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