Cuts to Penalty Rates Get a Big Thumbs Up from Australian Parliament

Yesterday, the House of Representatives voted on a private member’s bill that would put an end to the Fair Work Commission’s (FWC) proposed penalty rate cuts.

Unfortunately for many of Australia’s lowest paid workers in the retail and hospitality sector, 72 politicians voted in favour of scrapping the cuts while the government’s 'against' vote held the majority at 73.

This means that the proposed cuts are still likely to go ahead.

George Christensen, a Queensland Nationals MP, voted with Labor against the Liberals in a move that’s called “crossing the floor”, but it wasn't enough.

Just crossed floor & voted to save penalty rates from Fair Work Commission cuts & unions bargaining them away in EAs. Sad vote lost 73-72.

— George Christensen (@GChristensenMP) June 20, 2017

It has been revealed that the cuts will be introduced gradually over a four-year period, meaning that many are likely to take effect by 2019 or 2020.

In the retail and pharmacy industry, the Sunday penalty rates will be decreased to 150 per cent from 200 per cent over the next four years. By 2019, hospitality employees will have their Sunday pay reduced from 175 per cent to 150 per cent and fast-food workers will have theirs cut from 150 per cent to 125 per cent.

The bill was originally conceived in February in retaliation to the FWC's proposals. The cuts will begin to take effect from July 1 this year.

Photo: iStock