Read The Times Australia

Daily Bulletin

Cutting Sunday penalty rates will hurt young people the most

  • Written by: Shirley Jackson, PhD Candidate in Political Economy, University of Melbourne

The Fair Work Commission decided to cut Sunday and some public holiday rates of pay across the hospitality, retail, pharmacy and fast food industries for full time, part time and some casual workers.

This will hit young people the hardest as research tells us that while a third of Australians rely on regular Sunday shifts as part of their wage, nearly 40% of young people rely on penalty rates to survive.

Penalising people on penalty rates

Penalty rates have been part of the labour market for almost 100 years, since the Australian Conciliation and Arbitration Commission ruled in 1919 that additional payment was required for working unsociable hours. This decision remains popular a century later. According to the latest polls, 82% of Australians support this compensation for working outside the usual working week.

The latest Fair Work Commission decision was the result of a full bench of commissioners hearing evidence from 143 witnesses after receiving 5,900 submissions. These submissions were from some of the largest interest groups in our society, such as the The Australian Council of Trade Unions (ACTU), the Australian Industry Group (AIG), Australian Chamber of Commerce and Industry (ACCI), National Retail Association (NRA), as well as submissions from individuals across Australia.

The timing of the release seems to be poor, as the latest Australian Bureau of Statistics (ABS) data shows that wage growth in the private sector is at an all-time low and that the cost of living is at an all-time high. Given this context, it seems ill advised to reduce the wages of a largely casual workforce that already lacks security and stability.

Second class citizens?

The decision to cut wages in industries where the majority of the workforce is under 25, while shocking, should come as no surprise. This undervaluation of the work done by young people is well established by our longstanding junior rates system.

We occupy an unusual position in the global economy as one of only a handful of countries to have lower legal minimum wages for young people, along with Chile, Luxembourg, New Zealand, and the UK. Unfortunately for Australia’s young workers, our country has the lowest youth wage compared to minimum wage, in the world.

There is no evidence to suggest that reducing minimum entitlements like penalty rates will lead to net employment growth. Yet for young people, working these unsociable hours has a real impact on their social lives, ability to engage in family life, and overall health.While Sunday is certainly not a religious day for most young Australians, research consistently finds that those who work on Sundays are most affected by the negative effects of working non-standard hours. In other words, while it no longer has religious significance, Sunday is still a day of rest.

Community, sporting and social events are also usually held on Sunday. While young people might be able to catch up with some areas of social life outside of the weekend, their parents and older family members are more likely to work in the week, making it difficult to find time to spend together as a family.

The loss of this additional pay will have large ramifications for the retail industry, where one in four young Australians are currently employed. By seeing their Sunday rates drop from A$38.88 an hour to A$29.16, young retail workers will need to pick up an extra hour’s work to make up for the lost Sunday pay, in order to maintain their current wage.

For those who work the minimum three hours on a Sunday, they will now have to work an additional hour. For those who work the maximum nine hour day, they will need to work an extra three hour shift to make up for the loss of penalty rates.

Otherwise, those who regularly work Sunday shifts in retail will be left between A$29.16 and A$86.78 worse off every week.

Living on the edge

The Life Patterns study conducted by the University of Melbourne’s Youth Research Centre has found that work-life balance and cost of living pressures are already creating a stressful transition to adulthood for young Australians.

Participants in this study are less likely to experience major milestones like starting a family, finding a secure job or putting a deposit on a house, due to their prolonged experience of low-paid, insecure work. They are increasingly reporting increased mental health issues and incidences of housing stress.

This study has also found those from Gen Y work consistently on weekends, well into their late 20s.

Ultimately, young people are at the coal face of any change to minimum entitlements, and face the greatest risk of losing out at the hands of this reform.

Authors: Shirley Jackson, PhD Candidate in Political Economy, University of Melbourne

Read more http://theconversation.com/cutting-sunday-penalty-rates-will-hurt-young-people-the-most-73511

Business News

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Brid...

Daily Bulletin - avatar Daily Bulletin

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...