CCI calls for penalty rates reform

The state’s peak business body has called for reforms to the penalty rates system, which it says is out of date and causes many Western Australian businesses that open on Sundays and public holidays to lose money.

Chamber of Commerce and Industry WA chief executive Deidre Willmott said penalty rates didn’t have to be abolished, but awards should be reviewed based on the relevant circumstances of industries and occupations.

“Our members in the tourism, hospitality and retail industries have been forced to close on weekends and public holidays because paying penalty rates has made operating unprofitable,” Ms Willmott said.

“When these businesses shut it hurts WA consumers, who are left with fewer choices, and employees who don’t get the chance to earn any income.”

She suggested modern awards be varied to establish a penalty rates system that reflected the need of the industry, as well as taking into consideration the change in community expectations.

The CCI made the statement in its submission to the Productivity Commission’s review into the Workplace Relations Framework.