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2017-05-19

penalty rates

Penalty rates cuts will hit regional economy says report

Cuts to penalty rates are set to cost regional communities as much as $667 million a year, according to new research. 

A report by the McKell Institute released this week says that the regions will be particularly hard hit by the cuts because retail and hospitality workers make up a higher proportion of the workforce in these areas. 

In February, the Fair Work Commission (FWC) decided to cut Sunday penalty rates for workers in the retail, hospitality, fast food and pharmacy industries. 

Labor has introduced legislation into the federal parliament aimed at stopping the cuts but while it has passed the Senate it has yet to be debated in the Lower House. 

Australian unions will be using the McKell findings to highlight the impacts of the FWC decision not only on individual workers and the families, but on whole communities. 

“The Turnbull Government can stop these cuts to penalty rates,” ACTU Secretary Sally McManus said, “and we urge them to act to do this before they are due to come in on 1 July.” 

“When the Bill comes before Parliament each politician will have to choose – do they put the take home pay of locals first?”

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