By Luke Voogt
Local workers who are least able to afford pay cuts will suffer most from a national decision to reduce penalty rates, Geelong Trades Hall has warned.
But Geelong business leaders hailed the “landmark decision“ as a boon to local employment.
The Fair Work Commission’s ruling on Sunday and public holiday rates will affect at least 17,775 workers in Geelong, about 22 per cent of the city’s workforce.
Retail and hospitality are the second and fifth largest local industries, according to latest Enterprise Geelong statistics.
Trades Hall secretary Colin Vernon slammed the commission’s decision as unfair.
“No worker will be better off as a result of this decision,” he said.
“Cuts … for working Sundays and public holidays will negatively impact on workers’ take-home pay.”
Mr Vernon said the council would not accept the ruling and called on the Prime Minister Malcolm Turnbull to protect rates.
He added that with wage growth being at a “historical low” in the last two quarters it would put even more pressure on local workers.
“What it will do is put more profits into corporations and shareholders and out of the pockets of workers,” he said.
But Geelong Chamber of Commerce welcomed the “landmark decision”.
The chamber’s Bernadette Uzelac said local small businesses, comprising 97 per cent of chamber memberships, would be better off under the cuts.
Penalty rates adversely affected many of her members’ ability to employ staff and operate on Sundays without financial losses, she said.
“This decision will give business owners greater certainty towards future planning for their businesses, especially in the areas around hiring of staff and operations.”
Ms Uzelac said the changes would allow employers to hire more staff and combat the city’s youth employment – one of the highest in Australia.
“We all want to see young people getting a start in the workforce and being rewarded for their efforts in creating a thriving and healthy business community.”
Under the ruling, Sunday and holiday penalty rates will drop up to a quarter for full, part-time and casual workers in retail, hospitality, pharmacy and fast food.
