Photo of Scott Taylor. Supplied
Penalty Shootout
When it comes to public holidays, most people are pretty
darned happy. A day off work, time to chill or whoop it up – what’s not to
like? These days, if you ask a restaurateur what they think of public holidays,
you’re more than likely to get a chilly response. That’s due to the fact that
thanks to penalty rates on public holidays, they are paying through the nose
for staff.
Take Australia Day, for example. .Jacki O’Hara from The
Peasant Table in Mt Hawthorn recently went public on exorbitant penalty rates,
revealing it would cost her $900 extra in staff wages to open that day, and that
she would struggle to break even.
Meanwhile, restaurateur-about-town Scott Taylor says that
there is no doubt that the biggest cost in hospitality is labour, and penalty
rates play a major role.
“I know that in many well-run hospitality businesses,
38 per cent of revenue goes to labour costs, while in some businesses, it’s 50
per cent. So in other words, $5 every out of every $10 goes to labour,” says
Scott.
“When a public holiday comes around, if a casual chef
wants work, the existing industrial relations laws mean I’d have to pay $54.40
an hour for them – and my answer will be ‘sorry, you’re not working’. The young
casual guys who want to work on public holidays can’t, because industrial
relations laws have priced them out of the market.”
So what’s it all about then? Currently, there is
a massive debate going on around the country regarding industrial relations and
workplace laws, including penalty rates. Shortly, it will all go under the
microscope in a review held by the Productivity Commission in a quest to reboot
the entire industrial relations system. The Restaurant and Catering
Association, which has tabled a submission for the review, is pushing for penalty
rates to be standardised. But
with some
rates being as high as 275 per cent for casual workers on public holidays, it’s
no wonder smaller business operators are struggling to open on these days.
“It’s putting
lots of pressure on us. Weekend rates and public holiday rates are a bit out of
control, to be honest,” says Justin Bell, owner of Jus Burgers and Pinchos.
“On those days, we staff up with our salary staff and
our family on public holidays. You don’t make a lot on those days, but you have
to provide a service to the community. Australia Day is a tricky day to be open
because most people have already got a barbecue arranged or are watching the
fireworks, but people still expect you to be open.
WA Premier Colin Barnett has recently stated that penalty rates should remain, but admitted they should be made more realistic in order to encourage employment in the hospitality industry. The Australian Hotels Association's Bradley Woods has said he would also fight outdated penalty rates.
“Really, penalties need to looked at, and it would be
really good if Mr Barnett could come to the party,” says Justin.
“He said there needs to be an increment, but at this
point that increment is out-of-control. Something needs to get done about it
and pretty fast, because the penalty rates are really hurting our industry in
WA. Not everybody’s on a FIFO wage.”
