The push by big business to scrap penalty rates has spread to the finance sector and all administrative workers.
Major employers, led by the Australian Industry Group have applied to the Fair Work Commission to abolish penalty rates for nearly one million finance and administrative workers nationwide.
Employers want bank staff and other finance and administrative workers to give up their penalty rates, overtime, annual leave loading, other allowances and breaks, in a move that will result in substantial pay cuts.
Workers would lose all their award protections in exchange for banks and other finance employers no longer requiring staff to keep a record of their working hours and a one-off 25 per cent wage rise.
The employer application would apply to the banking finance and insurance and clerks awards which together underpin the pay and conditions for nearly one million workers.
The move to end penalty rates in these sectors follows the current bid by large retailers – including Coles, Woolworths and Bunnings – to scrap penalty rates for retail workers.
The ACTU estimates that a further one million workers could lose out on their penalty rates if the bid by the Australian Retail Association succeeds, including workers in hospitality, fast food, administration, health care and social assistance.
Quotes attributable to ACTU President, Michele O’Neil:
“Australians who rely on penalty rates and overtime to survive deserve better than to be attacked by the major banks and our largest retailers.
“This is a disgraceful attack on workers’ pay and Australian Unions will fight this all the way.
“Employer groups blame the trend to work from home, as an excuse to argue that penalty rates and overtime are outdated.
“That argument is highly insulting to bank finance and administrative workers who simply want to get paid properly without the big banks having their hands in their pay packets.
“Using the excuse that working from home means award conditions are outdated, is just a nasty cover to go after widespread substantial wage cuts and Australian Unions won’t stand for it.
“When the Coalition was last in power, they allowed penalty rates to be cut and oversaw wage stagnation for nearly a decade. Opposition Leader, Peter Dutton has to come clean with workers – will he intervene to protect penalty rates or side with employers?”
Quotes attributable to Finance Sector Union National Assistant Secretary, Nicole McPherson:
“Big business can’t be bothered to comply with the bare minimum legal requirement to make sure workers are paid properly and are working fair hours.
“This is a clear sign the banks and big business are already trying to implement a Dutton-style industrial relations agenda.
“If the employer and business groups get their way, banks will be able to pay their employees a flat rate which means that penalties, loadings, overtime and other entitlements won’t be paid.
“This sets a bad precedent for other employers and all Australian workers should be alarmed.”
Quotes attributable to Australian Services Union National Secretary, Emeline Gaske:
“This proposal undermines essential worker protections by allowing employers to sidestep penalty rates and overtime obligations.
“The 25 percent exemption rate does not adequately compensate for the potential loss of earnings from penalty rates and overtime, leading to significant pay cuts for employees.
“The challenges of recording work hours in a WFH environment should be addressed through improved management practices, not by stripping away fundamental worker rights.
“Reintroducing outdated exemption rates is a regressive step that fails to consider the modern complexities of work arrangements and the need for fair compensation.”
