The Fair Work Commission’s decision to cut Sunday penalty rates for casual employees in the restaurant industry has received a mixed bag of feedback in the local area.
For the restaurant industry’s employers, the decision has come as a blessing, set to save businesses millions of dollars. But for the employees who enjoy the penalty rates for their hard work on a Sunday, the news was bitter.
“I have worked Sundays, it’s horrible. Working the weekends is a really terrible thing so I think it really disadvantages the workers who are choosing to work,” said one local worker who wished to remain anonymous.
“They are doing something a lot of people don’t want to do sometimes because their circumstances force them to.”
Penrith resident, Lewis Wylie works as a chef and doesn’t receive penalty rates, but can understand workers’ frustrations.
“They will be angry at first but I don’t think it is something they will quit their jobs over,” he said.
The penalty rate for casual employees working on Sundays previously stood at 75 per cent, inclusive of a 25 per cent casual loading, and after the decision now stands at 50 per cent.
Restaurant and Catering Australia first appealed for changes to penalty rates in 2012, estimating the change would save the industry $112 million each year and even result in higher employment rates on Sundays, therefore benefiting both workers and employers.
The organisation saw the decision as a win, a feeling echoed by the Penrith Valley Chamber of Commerce.
“The issue of penalty rates has been seriously impacting business growth and greater employment opportunities,” said Chief Executive Officer, Jill Woods.
“These changes represent steps in the right direction to assist small operators to benefit through providing much better certainty. The collective voices of small businesses are finally being heard.”
For local businesses like Outback Steakhouse, penalty rates are a complication that can hurt the running of a business and its ultimate success.
“Labour is the number one cost for us in the business. It is a constant challenge for most in the industry, especially given the amount of staff we have,” said Mike Hicks, Outback Steakhouse Managing Partner.
“If you also have the added complication of deciding who you want to hire on weekends, based on penalty rates and how much each person will cost you, it becomes even more challenging.”
None of the local restaurant’s staff receive penalty rates, as all staff are hired on a part-time basis, which, according to Mr Hicks, allows staff to enjoy other benefits and more consistent, longer work hours on weekends, whilst benefiting the company and customer at the same time.
“Many [local businesses] who work with penalty rates say they can’t afford to have their older, more experienced staff members work on the weekends,” he said.
