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The Forum > General Discussion > Business confidence is the big looser on the penalty rates debacle

Business confidence is the big looser on the penalty rates debacle

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Why should workers subsidise your failing business.. Grossly unnessasary.
Posted by doog, Tuesday, 14 March 2017 2:27:55 PM
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It has nothing to do with a failing business, its simply unsustainable for many to be opening on a Sunday and making so much less, when the staff get 100% more.

Nobody is taking anything away as they didnt have this 200% rate prior to Julias brain fart.

But hey, what would i know, ive just spent the past 40 years in retail.
Posted by rehctub, Wednesday, 15 March 2017 7:12:40 PM
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The cost of running a coffee shop includes materials, overheads and wages.

The cost of wages are already worked out over the days they intend to open and therefore should already take penalty rates into account.
The price you pay for a cup of coffee is typically the same every day.

Therefore the price you pay on Monday already includes the cost incurred by penalty rates on Sunday, so reducing penalty rates should either result in more employment or lower prices.

If they can't afford to pay 3 people at 200%, then why would they employ 4 people at 150% - it's the same cost (more if you take payroll tax into account).

If this reduction doesn't result in lower prices or more employment as they claim, then they should agree to to reinstate penalty rates.

Otherwise it will be seen as no more than the cheap grab for more profits it really is.
Posted by rache, Thursday, 16 March 2017 12:28:09 PM
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It's just a stupid rant. Worker funded subsidy. A gross mis justice. What sort of confidence is in a cup of coffee. The figures are a token gesture, but any figure is absolutely outrageous.
Posted by doog, Thursday, 16 March 2017 4:17:47 PM
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Rache and Doog, you may not see this now but here goes anyway.

Coffee shops are not the real victims, restaurants are and this is why.

For a $100 spend here is the industry standard breakdown. $30 cost of goods, $35 wages (normal rates) $10 GST (close enough) which leaves $25 to pay the bills and make a profit.

Now if you take Sundays, the food cost and GST are the same, but the wages are now $70, leaving a loss of $10 before paying the bills and making a profit. This is why many are closed on Sundays and PH's.

Now pubs and clubs are no so badly effected, for two main reasons, one being pokies, the other being no table service. Qualities restaurants don't expect you to wait for the buzzer and collect your own meal, and they most certainly don't have pokies.
Posted by rehctub, Sunday, 19 March 2017 8:50:46 AM
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Follow the lead butch and close on Sunday. Or get a cow bell and do what big venues do.
Posted by doog, Sunday, 19 March 2017 7:14:12 PM
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