Senate debates

Tuesday, 5 September 2017

Questions without Notice

Workplace Relations

2:21 pm

Photo of David BushbyDavid Bushby (Tasmania, Liberal Party) Share this | | Hansard source

My question is also to the Minister for Employment, Senator Cash. Is the minister aware of any recent analysis relating to penalty rates or the use of penalty rates in enterprise agreements?

Photo of Michaelia CashMichaelia Cash (WA, Liberal Party, Minister for Women) Share this | | Hansard source

I thank Senator Bushby for his question. Yet again, as we discussed yesterday, the Senate will be aware—and Senator Collins is clearly aware—that there has been a large amount of publicity recently regarding penalty rates in enterprise agreements. It is particularly concerning that hundreds of thousands of workers and a large number of employers are paid less on a Sunday than they would receive under the relevant award.

An analysis presented to the Senate's committee on education and employment looked at approximately 108 enterprise agreements that large employers made with various unions. Guess what? Of these 108 agreements, 70 set out pay rates less than the award rate for Sunday work. Can you believe it? That is for at least one group of employees. Now, of these 70 agreements, 55 of them—or 79 per cent—covered at least one union. That's right—79 per cent of those agreements negotiated by a union cut Sunday penalty rates. This is the interesting thing: these are the same unions that are currently running a campaign called Save Our Weekend. The interesting thing about that slogan is what is missing from it: Save our Weekend 'from us'. Because, the last time I checked, for those on the other side when a big union and a big employer do a deal to cut or abolish penalty rates, that is okay, but when the independent Fair Work Commission that they put together and appointed does it for small business, suddenly all bets are off.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Senator Bushby, a supplementary question.

2:23 pm

Photo of David BushbyDavid Bushby (Tasmania, Liberal Party) Share this | | Hansard source

Can the minister further comment on how the rates in these agreements compare to rates set by the independent Fair Work Commission's decision on penalty rates?

2:24 pm

Photo of Michaelia CashMichaelia Cash (WA, Liberal Party, Minister for Women) Share this | | Hansard source

I can. The analysis presented to the education and employment committee indicates that workers who work only or primarily on Sunday would, in most cases, be better off under the relevant award than they are under agreements negotiated by the unions those opposite represent. I'll give an example. Workers at McDonald's are receiving $8.08 less an hour on a Sunday than they would under the relevant award. Workers at Woolworths are receiving $5.26 less, and workers at Coles are receiving $5.42 less than what they would have received under the relevant award. The interesting thing is this: the SDA and United Voice, I have to say, get the gold star. They get the gold star for negotiating away workers' penalty rates, but not far behind, colleagues, you'd be pleased to know, are the AWU and Bill Shorten. (Time expired)

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Senator Bushby, a final supplementary question.

2:25 pm

Photo of David BushbyDavid Bushby (Tasmania, Liberal Party) Share this | | Hansard source

Can the minister explain the implications of these differences between the rates of pay for small and large businesses?

Photo of Michaelia CashMichaelia Cash (WA, Liberal Party, Minister for Women) Share this | | Hansard source

Yes, I can. This is what those on the other side don't understand. Or maybe they do, and that's why they stick up for big businesses and big unions doing deals to advantage themselves. But the current disparity, and we saw it in an article in today's paper, makes it difficult for small businesses—mum-and-dad businesses—which actually employ the majority of Australians to compete on a Sunday with larger businesses who pay their workers less as a result of doing a deal with the unions represented by those opposite. The biggest losers in these situations are actually the small businesses who can't afford to open their doors. When a business can't afford to open its doors, do you know what happens? It actually employs no-one. That is a lose-lose situation for the business and for the employee who could otherwise have been employed.