At the start of the year, the Fair Work Commission announced plans to cut Sunday penalty rates for hospitality, retail and fast-food workers. Full-time and part-time hospitality workers’ rates have been reduced from 175 per cent of the regular wage to 150 per cent. In retail the drop was from 200 percent to 150 percent. The Commission argued that higher weekend rates were making it more difficult for businesses to operate, and forced them to reduce Sunday hours to balance paying staff more. The changes kicked off in July, but are being rolled out over three years.
Labor unions have protested the cuts, which they argue will lead to similar changes in other industries. Lawyers for United Voice and the Shop, Distributive and Allied Employees Association took the issue to Federal Court last month, where they argued the Commission hasn’t met its legal obligations or recognised the impact the change would have on low-income employees. But that challenge has now been rejected by the Federal Court, sounding the final death knell for the cherished Sunday wage.
Videos by VICE
The news will likely strike a massive blow with workers — especially young employees who relied on the higher Sunday rates to subsidise lower paying part time jobs. As anyone who has every tried to balance uni, rent, bills and managing to feed yourself knows, higher Sunday wages are often the only thing keeping a very thin budget together.
According to Australian Council of Trade Unions (ACTU) estimates, nearly 500,000 workers will be impacted by the changes. They’re expected to lose up to $6,000 a year.
Follow Wendy on Twitter.
Want to read more about how shit young workers are treated?
Retailers Are Excited to Hire Unemployed Young People For Free
Worked a Casual Job for 12 Months? You Can Now Demand Permanency
Things You Only Know When You’ve Worked in Retail
