Ms SPENCE (Yuroke) — (12 396) My adjournment matter is for the attention of the Minister for Industrial Relations, and the action that I seek is for the minister to provide an update to Yuroke residents who will be affected by the Fair Work Commission decision to slash penalty rates for some of our lowest paid workers. As many of us know, working on the weekends and late at night can be difficult not just for us but also for our loved ones. That is why penalty rates are so important. We know which industries this decision will affect the most — some of our lowest paid workers will take a direct hit because of the decision. As just one example, Yuroke resident James Crane, who works in the hospitality industry when he is not studying animal and veterinary biosciences and biomedical sciences, will be worse off because of this decision. I know James and all Yuroke residents would appreciate an update from the minister on this issue.

Response:

The Victorian Government maintains our opposition to any reductions in penalty rates as outlined in our submission to the Fair Work Commission (FWC) on 11 March 2016. This is why we have written to the FWC to let them know that there are no transitional provisions that can soften the blow for affected workers.

The penalty rates decision will cause significant hardship for low paid workers in the retail, hospitality and accommodation sectors in Victoria. According to the Australian Bureau of Statistics there are many low paid sales workers in Yuroke who rely on award rates for their wage increases. Many of these workers are women and young people, who due to their family and study commitments have limited alternatives to award-based weekend work or are unable to find other work options.

The Victorian Government has emphasised these impacts in its submission to the Fair Work Commission’s Annual Wage Review 2016-17 and that the cuts to penalty rates for already low paid workers is a factor that should be taken into account when reviewing award wages – particularly when the affected sectors are significantly award reliant compared to other industries.

As we also emphasised in our original submission regarding penalty rates to the Fair Work Commission in March 2016, reductions in penalty rates will also affect small businesses in regional Victoria. There will be less discretionary income and therefore likely to be less spending in the cafes, restaurants, shops and hotels outside of metropolitan Melbourne.

Because of all our concerns about the impacts of the Fair Work Commission’s penalty rates decision, the Victorian Government has established a Parliamentary Penalty Rates and Fair Pay Select Committee, which will inquire into and report on the economic and social impact and cost of the cuts to penalty rates to thousands of Victorian workers (to report no later than 1 September 2017). I encourage your constituents to participate in the inquiry.

The Victorian Government will continue to advocate on behalf of all of the low-paid Victorian workers, families and communities affected by the Commission’s Decision.

Hon Natalie Hutchins MP

Minister for Industrial Relations