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Time to overhaul penalty rates

Penalty rates were introduced in Australia back when the weekend was, well, a weekend, when the majority of the population did work Monday to Friday.  Now, with so many businesses open seven days a week, it is time to look at the penalty rate structure.

Overtime should be for people who work beyond the usual, or what is expected in their situation. A casual employee, a university student, working Sunday because it suits their schedule, should not get a 100% hourly rate bonus. They are not doing anything extra. retail businesses, like newsagencies, can’t charge extra to cover for the significantly higher cost on a Sunday. Indeed, the sunday penalty payment makes retail businesses worth less for these trading days.

I am watching the campaign by the banks on this issue closely. I am sure other newsagents are too.

This is not about trying to rip employees off. No, it’s a matter of making use that everyone is treated fairly. As it stands today, most newsagencies operating under management would lose money on Sundays.

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  1. Derek

    I agree, it is not about trying to rip employees off.

    If we look back to a few years ago, the Work Choices policy some would argue lost the election for the government of the day. I cannot see the current government backflipping however we must find a middle ground where emploers & employees are winners.

    Their would be good and bad flow on affects as it will affect employees to name a few could be financially, socially, family dynamics. Because once the door opens we could possibly see a 38hr working week fit within a 7 days period

    Small business employers may find themselves relieved of the burden of high wages, possibly have some time off from working a 7 day week and having a flexible team.

    I think small business retail needs this, however I would not necessarily agree with Banks and multi million dollar business’s. Its only my view, so if you have a different view why not share it.

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  2. h

    Overtime is for people who have to work more than the standard full week of 35 – 38 hours (depending on which union you are in).
    Part-timers should not get overtime until they have worked a full week, just like the full-timers. At the moment there is a “Saturday Loading” – perhaps there could be a “Sunday Loading” and a “Public Holiday” loading, but not penalty rates.
    Why do people who only ever work 9 – 5.30, get a 17.5% leave loading when they are on holidays?
    Leave loading should only apply to employees who have earned some other loadings for working on weekends and holidays in the past year.
    Just my 2c worth.

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  3. Brendan

    h, I recall an American teacher from my school days who could not believe that staff were worth more when not working (on leave) than when at work. We do have some strange facets to our awards in this country.

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  4. Blake

    To answer the question “Why do people who only ever work 9 – 5.30, get a 17.5% leave loading when they are on holidays?”

    Leave loading only exists to compensate employees from loss of pay due to overtime, shift work, commissions, bonuses, piece rates and other loadings etc.

    The other half is on a salary, 9-5. She gets leave loading, because when she takes holidays – there is no opportunity to earn bonuses for meeting monthly targets. Her normal bonuses are 15% for each of 2 targets.

    If she took 2 weeks off spanning 2 months, she could potentially loose 30% of 2 months pay. So if she times leave for say 2 weeks in a month where she is only likely to hit 1 target anwyay – her pay would stay the same.

    Not saying that applies to everyone – but its a good reason for leave loading on her 9-5 job.

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  5. Brendan

    It still comes down to getting paid more to do less.

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  6. James

    Brendan,

    You obviously don’t understand why the 17.5% loading applies.

    Workers forwent a series of pay rises to secure the 17.5% loading when people were working a lot of overtime.

    It was paid when workers took holidays INSTEAD of being paid to them weekly as a higher per hour rate.

    How quickly people forget and want to take back what is not theirs to start with!

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  7. Mark Fletcher

    It also comes down to what businesses can afford. Small businesses have less fat against which they can offset awful Sunday rates.

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  8. Derek

    Its a tough one this subject, I am not sure if most people are aware, their has been a shift to the Casual or Partime employees over recent years, I am not really sure why, Maybe H’s post touches on this.

    Employees want security (set number of hours a week) to make ends meet, I think Retail is totally differrent to other other work environments. In some cases employees take home more money than their employer. I still believe meeting in the middle, for the example H’s post regarding Part-timers / Casuals should not get overtime or penalty rates until they have worked a full week in hours.

    I am sure Small Business people who employ multiple people should know whether this would be possible and whether this would be good for the business financially and nearly as importantly will the quality of employees work capacity & work ethic suffer therefore the business suffers.

    It interests me what you employers really want, a middle ground, the whole nine yards or something totally different.

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  9. Mark Fletcher

    Middle ground here.

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  10. peter stewart

    i would like the middle ground also

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