Unions are appearing before a public hearing of the Productivity Commission in Hobart today to respond to the Commissions’ Draft Report, warning its recommendations to reduce penalty rates, slow the growth in the minimum wage and bring back a form of AWAs will hit hardest in Tasmania.
Tasmania has by far the highest rate of award dependent employees, at 27.4% of the total workforce – typically the lowest paid workers.
The research compiled by the McKell Institute for the Shop Assistants Union (SDA) and United Voice reveals that workers in the electorates of Franklin and Denison are set to lose between $12.6 million and $23.5 million a year if a partial abolition of penalty rates were to proceed.
This amounts to a loss in disposable income for the Southern Tasmanian economy of between $5.8 million and $11.6 million a year.
“Taking such a large chunk of consumer spending out of the local economy would devastate our tourism, hospitality and retail sectors. It would be the biggest own goal the industry could ever make,” Unions Tasmania Secretary Steve Walsh said.
If a full abolition of penalty rates were to occur between $27.7 million and $46.1 million in wages would be ripped out of the pockets of Southern Tasmanian workers.
“Weekends still mean something here in Australia, and the argument that we live in a 24/7 economy is just rubbish – only 10% of Australians currently work on Sundays. The rest of us are enjoying precious downtime with friends and family. Workers who miss out on that should be paid accordingly,” United Voice State Secretary Jannette Armstrong said.
“Workers in Tasmania have the lowest average weekly earnings in Australia. They do not deserve and cannot afford a pay cut,” ACTU Assistant Secretary Michael Borowick said.
“Cutting penalty rates has nothing to do with job creation or productivity - it is about cutting people’s pay packets and putting the money back into business’ profits. Unions will fight any move to cut penalty rates. If the Abbott Government wants to make rights at work an election issue – bring it on,” Mr Borowick said.
Tasmania has by far the highest rate of award dependent employees, at 27.4% of the total workforce – typically the lowest paid workers.
The research compiled by the McKell Institute for the Shop Assistants Union (SDA) and United Voice reveals that workers in the electorates of Franklin and Denison are set to lose between $12.6 million and $23.5 million a year if a partial abolition of penalty rates were to proceed.
This amounts to a loss in disposable income for the Southern Tasmanian economy of between $5.8 million and $11.6 million a year.
“Taking such a large chunk of consumer spending out of the local economy would devastate our tourism, hospitality and retail sectors. It would be the biggest own goal the industry could ever make,” Unions Tasmania Secretary Steve Walsh said.
If a full abolition of penalty rates were to occur between $27.7 million and $46.1 million in wages would be ripped out of the pockets of Southern Tasmanian workers.
“Weekends still mean something here in Australia, and the argument that we live in a 24/7 economy is just rubbish – only 10% of Australians currently work on Sundays. The rest of us are enjoying precious downtime with friends and family. Workers who miss out on that should be paid accordingly,” United Voice State Secretary Jannette Armstrong said.
“Workers in Tasmania have the lowest average weekly earnings in Australia. They do not deserve and cannot afford a pay cut,” ACTU Assistant Secretary Michael Borowick said.
“Cutting penalty rates has nothing to do with job creation or productivity - it is about cutting people’s pay packets and putting the money back into business’ profits. Unions will fight any move to cut penalty rates. If the Abbott Government wants to make rights at work an election issue – bring it on,” Mr Borowick said.
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