Fast food, hospitality and retail workers will suffer cuts to their Sunday pay under major changes to penalty rates announced by the Fair Work Commission yesterday (23rd February 2017)
Sunday double-time pay is a thing of the past for retail and pharmacy workers employed under industry awards.
The decision comes following a Productivity Commission report last year that recommended bringing Sunday rates down to the same level as Saturday rates. The report argued the current levels were “anachronistic” and made it harder for the unemployed to find work. The commission said the cuts would lead to increased services and trading hours on public holidays and Sundays.
The Australian Council of Trade Unions (ACTU) said nearly half a million people, including some of the country's lowest-paid workers, would lose up to $6,000 a year.
But it acknowledged the changes would cause hardship to some workers.
Sunday pay rates for full-time and part-time hospitality workers will be cut from 175 per cent of their standard wage to 150 per cent.
In retail, Sunday wages will be reduced from 200 per cent of the standard rate to 150 per cent for full-time and part-time staff.
Sunday penalty cuts:
| Full and part time | Casual | |
| Retail | 200pc down to 150pc | 200pc down to 175pc |
| Hospitality | 175pc down to 150pc | No change |
| Fast-food | 150pc down to 125pc | 175pc to 150pc |
| Pharmacy | 200pc down to 150pc | 200pc to 175pc |
For fast-food workers, Sunday pay for some full-time and part-time employees — classed as "level one" workers — will be cut from 150 per cent to 125 per cent.
The public holiday penalty cuts will come into effect on 1 July 2017.
The Fair Work Commission has not yet decided when the Sunday rate cuts should come into effect, but indicated it should be within a year.
Labor to challenge Fair Work decision
Opposition Leader Bill Shorten said workers had been "kicked in the guts".
"We are going to do our best to convince the Fair Work Commission not to implement this decision," he said.
"If we are unsuccessful, we will also be changing the law in Parliament to change the rules that the Fair Work Commission operate under.
"I have never seen an argument which would justify wholesale pay cuts for the lowest paid workers in Australia."
Employment Minister Michaelia Cash said the decision would help unemployed people find work.
