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The Forum > General Discussion > So what is Labors position on the Fair Work Commisions recomendation on penilty rates

So what is Labors position on the Fair Work Commisions recomendation on penilty rates

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Good point 579, despite what Butch would have us believe small business is not on the brink, and about to fall into the abyss of
un-affordability, due to Sunday penalty rates. In fact small business and business in general does very well in Australia. Small business operators average higher incomes than their workers.
Just on the 'coffee shop' issue, in my case there are about 10 such establishments within 10 minutes walk, and about 100 within 10 minutes drive. There is no crises in the coffee shop industry!

Butch, you demand workers abide by the umpires decision, but at the small time claim it is alright for renegades in business to set their own pay rates and conditions, despite the law, also allowing for massive tax avoidance at the same time, how hypocritical is that?
As for police officers and firemen etc, who on a Sunday would earn 5 times the coffee kids rids pay rate being exempt, it certainly has nothing to do with profits as you claim it is all based on, they don't make one! But more to do with politics and the political ramifications if their pay rates were challenged.
Posted by Paul1405, Sunday, 8 May 2016 8:30:20 AM
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579 and Paul
Here are the facts.

For each $10 spent, here is the breakdown (average)

Food cost $3, Labour $3.50, GST $1.10 gross profit $2.40. All running costs and owners profits come from here.

Double time Sunday the labour cost is $7, leaving a loss of $1.10. That's before running costs let alone a profit.

This is the reason so many pay cash in hand. It is also the reason why the FWC is likely to rule that Sundays be paid at 1.25 times the rate.

If they don't, coffee shops will not shut down, but the tax payer will continue to miss out on revenue.

BTW, very few these days will work for $10 cash in hand, unless of cause they are on welfare and wont work for anything other than cash in hand.

Let's hope the FWC announces its findings before the election.
Posted by rehctub, Monday, 9 May 2016 8:00:47 AM
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Why before the election, Bill has said the decision will stand.

If there was not so many coffee shops around there would be more ten dollars to go around. Supply is outstripping demand and that is no reason to penalise workers.

Bill said the workers will determine weather the pay rates are fair or not.
Corruption will be looked at because it was requested by Abbott. So back pay could be on the cards.
Posted by 579, Monday, 9 May 2016 8:17:35 AM
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back pay for what?

Besides, if we do have oversupply, then shut some down, that wont change the rate, it will just cost jobs. What does this achieve.

You and your unionised mate Paul just can't bare to see two consenting adults coming to an arrangement that suits them. Big brother just has to stick their noses in.
Posted by rehctub, Tuesday, 10 May 2016 5:18:29 AM
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It seems that workers in the Emergency, Police and Medical areas will be exempted from action on Penalty Rates so it must not be about a philosophical stance but a matter of taking punitive action against various and vulnerable workers.

The misleading notion that such cuts will result in more jobs is as likely that the "trickle down" effect actually works.

It's only about about increasing profits by cutting costs and labelling it productivity.

In the hospitality industry the cost of producing a cup of coffee is averaged over a whole week and not just on weekdays.
Posted by rache, Wednesday, 18 May 2016 8:38:49 AM
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Hi rache, you are absolutely correct. As 'Ten Dollar' Butch likes to point out it is all about gross profit and nothing much else. if that was the case the government would be out there arguing for a drop in pay for police etc as they are a direct financial loss. But that would be political poison as those people are well organised and have public sympathy unlike the coffee kid who has no community support or union to stop his over exploitation, just remember the 7-Eleven, workers robbed of $100 million.
Posted by Paul1405, Wednesday, 18 May 2016 9:43:23 AM
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