Should there be penalty rates in Australia? Why not? How it influences? Who are affected?

The Sunday pay rate cuts that form a recommendation made by the Productivity Commission is deemed to take effect from the beginning of July and the decision by the Fair Work Commission is deemed to impact businesses and employees. The Sunday pay rate cuts spell some doom and sends hospitality and retail workers to some mourning mood, as small business owners smile and cheer with the slash also posing some confusion to other members or consumers in the general public (Haynes, 2017).

There will be absolute changes courtesy of the slash. In many industries, employees earn some overtime and extra pay for working on public holidays and weekends, but some people, on the difference of opinion, agree not with such a remuneration. Business groups and other retail vendors have been advocating the reduction of the Sunday penalty rates down from doubled figures to one time and a half in relation to Saturday penalty rates. However, the rates have been slashed varyingly across retail, fast-food and hospitality. Also, the slash posts some variable changes to late night and early night employments loading for fast food and restaurant workers (Jager, 2017).

The slash hits hard those workers in the hospitality, retail and fast food businesses. In Australia, those that work and depend much on the penalty rates are those that earn considerably low salaries and wages. The worker unions are therefore arguing against the slash in favor for such workers arguing that the slash will just but bring more doom and lower living standards for them and their families. With unemployment on the high, the slash is seen as one that will spell more misery to many of the families that are on a low wage. The unions argue that the slash changes are just but “a pay cut for the lowest paid workers and people across Australia” (Chung & Burke, 2017).

Those that work for in hospitality places, be it on fulltime or part-time basis, will see Sunday pay rates slashed down from 175% to 150%.  During the public holidays the cut goes down from 250 percent to 225 percent with casuals only retaining the 250 per cent for working on holidays. For fast food workers, level one part-time and full time workers will see a slash from 150mper cent to 125 per cent with the level three workers retaining their 150 per cent. Retail workers on fulltime and retail have their rates reduced from 200 per cent down to 150 per cent with casuals getting a reduction from 200 per cent to 175 per cent (Haynes, 2017).

There are quite divide opinion on the changes, some for, others against. These that re for the change argue that the change will enable employers to have more employees so reducing unemployment. They too say that more hospitality stations will be able to operate on Sundays providing better experience for consumers and meet their growing expectations. It will also allow for more study time for the workers. However, those that are against the change argue that the change will directly and unfairly “steal” money from the pockets of those that work on Sundays. They argue that there is no any guarantee that the change will attract more employment with the change also depriving family time and cutting earnings hence more poverty and lower living standards among other negative impacts (Jager, 2017).