Mandurah business has swung behind a decision of the Fair Work Commission which would reduce Sunday penalty rates for some hospitality and retail workers from double-time to time-and-a-half.
The decision, which was announced in late February, has attracted criticism from unions who opposed the change but business groups – including Mandurah’s chamber of commerce – have said it would help solve the regions escalating unemployment problem.
Western Australia’s Chamber of Commerce and Industry chief executive Deidre Willmott said the decision would allow small businesses in the region to employ more staff on Sundays and provide tourists and other customers with a better experience, leading to more business.
“It’s an incredibly important decision for small business to be able to grow their businesses, to be able to employ more people – particularly younger people – but it’s also incredibly important for our tourism industry,” she said.
“We want people visiting the regions to have a fun time where they feel like they’ve had great service and people have been able to take time to look after them.
“Our small businesses are trying to open on these days using their own labour, or not opening businesses; it’s not allowing us to show our regions and our tourism industry off in its best light.”
Ms Willmott said small businesses would be looking to employ more people who would be happy to work for the reduced penalty rates.
“If they can work for a penalty rate of 150 per cent [down from 200 per cent], they would be happy to do that work, so for them it’s the choice between a job and no job, it’s not a choice between an extortionately high penalty rate and a lower penalty rate,” she said.
“This is not a massive decrease, but if it gives small business more flexibility to be able to create more jobs, that is a win for business, a win for their employees and a win for their customers.”
Peel Chamber of Commerce and Industry president Donna Cocking said the decision was particularly significant for regional areas like the Peel.
“Many businesses in the Peel region choose not to open on Sundays due to wages being a substantial fixed cost, yet Sunday is a significant trading day due to the huge day-tripper market we experience in this region,” she said.
“Retail, hospitality and tourism related businesses will be able to employ more staff, or offset the hours worked during the week to account for this added opportunity, which in some CBDs is better trading than a weekday.
“The flexibility of rosters will be appealing to many staff, who may prefer to work on a Sunday, due to other weekday commitments.”
The Fair Work Commission decision was met with anger from UnionsWA secretary Meredith Hammat who said the cuts were “incredibly harsh”.
“This is a pay cut that working people in retail and hospitality can't afford and don't deserve,” she said after the changes were announced.
“There will be many working people and their families who will be feeling shocked and angry...and feeling worried about how they will pay the bills.”
But Ms Willmott said she was disappointed by the reaction by the unions.
“Our unemployment rate in Western Australia is six per cent, youth unemployment is 15.6 per cent and those young people would love the opportunity and the data shows people working in those industry on weekends tend to be younger people,” she said.
“Our members are saying they could create more work for young people if it wasn't prohibitively expensive.”
Nathan Hondros
Senior Journalist for the Mandurah Mail, Australian Community Media, and Fairfax Media.
Senior Journalist for the Mandurah Mail, Australian Community Media, and Fairfax Media.
