Bosses prepare to attack penalty rates

18 November 2013
Danica Cheesley

The Australian Retailers Association is no friend of workers. Its executive director, Richard Zimmerman, has declared: “The balance between employment and remuneration would be made right through … [the] reduction of penalty rates.” Zimmerman is just one of a growing number of voices calling for wage reductions for already underpaid workers.

Tourism and Accommodation Australia managing director Rodger Powell argues, “The idea that Sunday is different from other days of the week is a notion from the past.”

In the eyes of the likes of Powell and Zimmerman, working on weekends or at night, and missing out on the opportunity to spend time with friends and family, is not worthy of financial compensation. They would rather leave this money in the bosses’ pockets.

The Business Council of Australia is also behind the push. The council’s July Action Plan for Enduring Prosperity report insisted that something must be done about “the impact of penalty rates on business competitiveness and employment growth”.

South Australian Family First senator-elect Bob Day also considers that the minimum wage, a paltry $16.37 per hour, is “too expensive” for business.

The Liberal Party, a steadfast friend of big business, would no doubt slash the minimum wage and our penalty rates if it thought it could get away with it. Liberal Senator Eric Abetz previously said that wage increases above the cost of inflation will be blocked by his party, unless productivity trade-offs are made.

Increasing productivity always means increasing profits for the bosses. The Liberals have already pledged to review the current industrial relations system.

Unionists have fought for and won the right to a minimum wage and penalty rates. We will need to be prepared to fight again against any attack levelled by Abbott and Co.


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