Penalty rates decision a shot in the arm for small business: ASBFEO

Penalty rates decision
ID:121257200

A reduction in Sunday and public holiday penalty rates in select industries will help ensure small business owners in these sectors can operate longer hours, offer their staff more work, and in doing so meet consumer expectations, Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell said.

“Today’s decision by the Fair Work Commission to reduce rates in the retail, hospitality and fast-food industries is a win for common sense that will ultimately boost jobs and stimulate growth across the economy,” Ms Carnell said.

“While it wasn’t quite to the extent proposed by some, it’s certainly a big step in the right direction; it will be important now for a transition period to be put in place to ensure employers and employees are fully across the changes.

“Small businesses are telling me that up until now, the wage costs on weekends and holidays are just so high that they have no choice but to close their doors. For those who do stay open, they’re basically providing a community service for their regular clientele, who simply expect them to be open each and every day.

“This penalty rates decision decision – backed by previous Productivity Commission findings – means small businesses will be able to trade longer, which means their staff will be given more hours, while communities will benefit from the increased economic activity it will generate; particularly in our rural and regional areas.

“Let’s not forget, the big players in this space – the supermarkets, the big fast-food chains – have already traded-away penalty rates in their Enterprise Bargaining Agreements (EBAs), so the only people who have been forced to pay the higher wages on Sundays are mum and dad small business owners.

“I just don’t understand why some continue to argue against allowing small businesses the chance to grow, particularly given they’re doing more than their fair share of heavy lifting when it comes to creating jobs in this country.

“In fact, latest figures show the number of small businesses in Australia is on the rise; so too the number of people they’re employing.  If we want to see this trend continue, if we want to see small businesses grow, they’ve got to be able to make a profit, and changing weekend wage settings in the retail, hospitality and fast-food sectors, will give them a fighting chance to do just that.”

Inside Small Business