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PRODUCTIVITY COMMISSION CONFIRMS PENALTY RATES DO NOT AFFECT BUSINESS PROFITABILITY

October 23, 2015

 Labor calls on the Government to explain why it wants to cut penalty rates, following revelations from today’s Senate Estimates that penalty rates do not affect business profitability.

Senator Jenny McAllister asked Productivity Commission Executive Manager Ralph Lattimore if he shared former Treasurer Joe Hockey’s view yesterday that penalty rates are “profit murder for small business”.

Mr Lattimore rebuffed the former Treasurer:

“Long run profitability is not affected by penalty rates.” 

SENATE ECONOMICS COMMITTEE ESTIMATES – 22 OCTOBER 2015

Slashing penalty rates and attacking workers’ rights is core to the Liberals’ ideology.

Minister for Employment Michaelia Cash has previously claimed that penalty rates deter weekend work.

I welcome a debate in relation to penalty rates… they certainly seem to deter weekend work, and we have more and more people wanting to open on weekends…”

MICHAELIA CASH – ABC AM – 30 SEPTEMBER 2015

 There is no evidence that cutting penalty rates will create jobs.

And now the Productivity Commission has confirmed that cutting penalty rates won’t improve profitability.

We all know that a cut to penalty rates is a real cut to income – that means workers are worse off.

It is clear that Malcolm Turnbull just wants to cut the penalty rates of hard working Australians, claiming that lower penalty rates were an inevitable part of a seven day economy.

Australians know that the Government if elected it will slash the penalty rates of 4.5 million Australian workers.

Australia is facing the lowest wage growth in 25 years, yet from the second week of his Prime Ministership, Malcolm Turnbull and his newly appointed Ministers have been talking about cutting the income of millions of low paid workers.

Rather than a race to the bottom on wages, Labor believes the Government should focus on jobs and economic growth through investing in skills and training, infrastructure, innovation and entrepreneurship.


 

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