Via The Australian:
The government is rallying backbenchers and business to make the case for the employment boost that will come from the lower pay rates, while endorsing the need for a “transition period” that could soften the impact of reduced penalty rates on up to 450,000 workers.
Employment Minister Michaelia Cash yesterday hit back at the “simplistic” view that the government could not convince the public about the rates decision’s merits, after more than a week of conflicting signals from ministers and backbenchers.
“We embrace the benefits that the decisions will bring,” Senator Cash said. “Those benefits are outlined in the commission’s decision — the positive impact that the decision will have on employment.”
Answering business calls for a stronger defence of the reforms, the government will frame the contest as a battle for small companies and family businesses that could hire more of the 741,100 unemployed Australians that Labor claims to be concerned about.
“Small businesses and family businesses are the backbone of the economy. They are what we stand for as Liberals. We need to back small business every step of the way,” Senator Cash said. “We need to ensure they are incentivised to grow, they are incentivised to employ more people, and if they are saying that this decision is a step in the right direction then let’s all embrace the benefits the decision will have.”
Senator Cash has asked her department to draft a “factual” submission that will set out legal options without arguing for a specific time period.
As Specufestor Cash trawls through her “facts” she might consider the following. The Fair Work Commission itself noted that it is “improbable that … existing workers’ hours on Sundays would rise sufficiently to offset the income effects of penalty rate reductions”.
Thus, the evidence that cutting penalty rates alone will boost employment is weak.
Second, it is worth pointing-out that workers in Accommodation & Food Services and Retail Trade already suffer from the highest underemployment in the nation:
Third, wages growth in Accommodation & Food Services has been the lowest of all sectors over the past 12 years, whereas retail trade has also experienced some of the lowest wages growth:
And this comes on top of record low earnings growth across the broader economy:
Thus, the FWC’s decision will adversely affect workers in sectors already containing Australia’s most vulnerable and poorly paid workers.
In policy terms, this is class war not reform.
In political terms, that the sell job is being put in the hands of Specufestor Cash – fresh from hiding the purchase of her fourth property from the public – tells you all you need to know about the government’s competence.
