Lower penalties and create jobs
COLIN Scott says he could save up to $37,500 a year and employ more staff if Sunday penalty rates were reduced in line with Saturday’s, as proposed by the Productivity Commission.
The managing director of Frontline Hobbies in Newcastle says, despite the weekends being the busiest time for his store, he was forced to have reduced staff levels because of wage costs. ‘‘I don’t believe in Santa Claus but it would be nice for Sunday rates to be the same as Saturday, Mr Scott said.
‘‘I could afford to put more staff on, increase their hours and re-invest in the business.’’
He said he employed seven people on Sundays and penalties cost an extra $50,000 a year.
‘‘People forget that it’s not only the wage increase, but the increased superannuation, payroll tax and workers’ compensation fees that increase when the wages go up.
‘‘The Productivity Commission is an independent body and has taken a good hard look at the issues facing industry.
‘‘The government should take notice,’’ Mr Scott said.
Unions slammed the idea as a ‘‘raid on people’s wages’’ and said there was no evidence to show that cutting penalty rates increased employment or productivity.
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