Government under fire for do-nothing approach to penalty rates debate

The Federal Government's laissez-faire approach to the issue of penalty rates and public holidays has attracted criticism from the hospitality and retail sectors. 

Australian Retailers Association executive chairman Russell Zimmerman has expressed disappointment, saying that he will "most definitely want to talk" to the Minister for Workplace Relations. 

The government's submission to the Fair Work review on penalty rates and public holidays has said that the current penalty rates and public holiday provisions are sufficient, and no change is needed. However, figures such as John Hart, chief executive of the Australian Restaurant and Caterers' Association, disagree, saying that the debate about casual workers in the restaurant sector is "still yet to be had." Small businesses have been asking for cuts in penalty rates for some time, claiming that the downturn in retail makes paying staff extra on weekends impractical. They instead suggest that workers not be paid penalty rates automatically on weekends, but rather when they surpass a certain amount of hours for the week. They also want reductions in penalty rates for public holidays, and the elimination of the obligation to pay public holdiay rates for two days when a holiday falls on a weekend.

The government has disagreed with this position, saying that it would reduce pay for the lowest-paid workers. Workplace Relations Minister Bill Shorten has said that workers should be fairly compensated for work done, and on public holidays when most Australians are not working.

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