Thursday, February 23, 2017

Penalty rates

Can I regain some "cred" to my "conservative leaning" claim at the top of the blog by noting that I think the Fair Work Commission's decision to reduce Sunday penalty rates is overdue and justified?  In fact, I think they should have gone a bit further, especially with casuals.

Of course, it won't affect a great many small businesses that dealt with the excessive penalty rates by just ignoring them.   Maybe I can even make a bit of a Laffer-like argument here, and note that the result might mean a net improvement for hospitality workers as a whole, if it encourages businesses to actually pay to the award.  But that could be being too optimistic.

4 comments:

not trampis said...

well you aint no social conservative!

Sunday these days is the only day where the family can get together. If employers want to open on Sunday then they should have to pay higher wages. If consumers want to shop then they can pay higher prices.

I also find it strange no-one ever talks about the supply of labour

John said...

if it encourages businesses to actually pay to the award.  But that could be being too optimistic.

Your faith is unbounded. Even Dominos which generates huge profits has been underpaying workers. This won't encourage anyone to pay to the award, what it will do is encourage employer groups to go after more wage cuts.


not trampis said...

Steve,

Ask yourself why Tradies put up their rates something fierce on sundays

Steve said...

Sorry: hospitality does most of its business when the rest of us don't have to be at our businesses. So, while I'm not against penalty rates per se, they can get too out of whack with what's reasonable given the nature of the business.