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The Victorian government has launched an inquiry into the federal Fair Work Commission’s controversial decision to cut penalty rates for workers in retail, hospitality, pharmacy and fast food.
In the inquiry, the state government plans to look into the impacts of the cuts, which were supported by the Turnbull government and the Coalition opposition in Victorian State Parliament.
The cuts to penalty rates announced in February 2017 were met with scathing criticism from politicians, unions, media and community representation groups (but generally praise from small business owners) because it meant workers in the targeted fields would lose their extra pay for working on weekends and public holidays.
Understandably, workers panicked about the certain financial losses they would suffer as a result of the cuts, which led to a march in the Melbourne CBD comprised of affected workers protesting the Fair Work Commission’s new policy.
Federal Opposition Leader Bill Shorten was also staunchly opposed to the cut to penalty rates, saying that “with inequality at a 75-year high, wages growth at historic lows and underemployment at record highs, there could not be a worse time to cut workers’ take home pay”.
Now, the state government’s Legislative Assembly will form a select committee that will look into the detrimental effects such changes will have on Victoria’s lowest paid, award reliant workers, women, young workers, workers in regional Victoria, single parents, the detrimental effects on the Victorian economy, and other industries that are now potentially open to the same wage cuts.
The inquiry comes as 78 leading Australian economists signed an open letter to the Fair Work Commission earlier in April 2017, commenting that cutting award wages will likely hurt the national economy.
The state government, which has asserted that it is “firmly opposed” the cuts to penalty rates, is looking to the Committee for ideas of what can be done in Victoria to assist those impacted by the cuts.
Victorian Minister for Industrial Relations Natalie Hutchins said the Victorian government will continue to campaign against penalty rate cuts and urges Victorians’ to provide evidence and submissions to the committee.
“Workers are tired of working longer hours for less pay to make ends meet,” Ms Hutchins said.
