He said Labor would restore penalty rates within 100 days of forming government.

"I do not think you are greedy or selfish. I do not think the pay you earn today is unreasonable. I do not think you are an unreasonable expense that our economy cannot afford.

"I understand that you are working today because you need the money and your penalty rates will always matter to me and Labor just as much as the Prime Minister's giveaway to the big banks and multinationals matters to him and the Liberal Party."

However, Labor's argument that Sunday penalty rate cuts would hurt vulnerable workers did not stack up, because workers on many union-negotiated enterprise bargaining agreements (EBAs) already worked for lower rates, said Peter Strong, chief executive of the Council of Small Business Organisations Australia.

Bill Shorten has sharpened class warfare attacks on Malcolm Turnbull and vowed to reverse cuts to penalty rate loadings for weekend work. Dean Sewell

While Sunday loadings for full-time and part-time hospitality workers had now reduced from 175 per cent to 160 per cent since July 1, 2017, and from 200 per cent to 180 per cent for retail workers, Mr Strong said workers under EBAs at large corporations like Coles, Woolworths and McDonalds already worked Sundays for time-and-a-half.

Under the Fair Work Act phase-in of Sunday rate cuts, hospitality and retail workers would not reach the 150 per cent equivalent of Saturday rates until 2019 and 2020 respectively.

"I know a lot of small business owners that won't cut their penalty rates because they care about their staff, yet the fact is the big guys have been paying less than award for years," Mr Strong said.


Sunday's cut to penalty rates coincided with a 3.5 per cent rise to the minimum wage, which would leave most workers better off, said Kate Carnell, the Australian Small Business and Family Enterprise Ombudsman.

Deputy Labor leader Tanya Plibersek and NSW Opposition Leader Luke Foley at the conference. Dean Sewell

"Unless you only work Sundays and work a lot of hours on Sundays, you are better off after today than before," Ms Carnell said.

Mr Shorten's speech doubled down on key Labor promises, seeking to draw a line under dissatisfaction over last week's announcement that Labor would fully repeal legislated cuts to reduce tax rates for companies with turnovers between $10 million and $50 million.

Amid a string of "super Saturday" byelections on July 28, Labor has acknowledged it faces a tough fight to win back the Queensland seat of Longman with the Tasmanian seat of Braddon considered very difficult.

A loss in the seats could raise further doubts about Mr Shorten's leadership and boost Mr Turnbull.

Small Business Ombudsman Kate Carnell says most workers will be better off despite the penalty rates cut. Louie Douvis

Mr Swan praised Mr Shorten's leadership, saying that being Opposition Leader was "just the toughest gig in politics". "He has done extraordinarily well as Opposition Leader and he deserves the opportunity to get out there and take government at the next election," the former federal Treasurer told the ABC's Insiders program.


Mr Swan said that Mr Shorten's "only error" had been an "honest" one in announcing a repeal of tax cuts for small and medium businesses before the decision was considered by shadow cabinet.

Labor moved to partially dump the rollback plans on Friday, saying a Shorten government would not repeal tax cuts for companies with turnovers between $10 million and $50 million.

Mr Swan said he had been comfortable with the original decision by the key economic committee of shadow cabinet to reverse the tax cuts for smaller companies.

But he said the Coalition's proposal to cut the 30 per cent tax rate for bigger companies to 25 per cent would drive inequality and poison society. International experience suggested that company tax cuts simply financed share buybacks and higher executive salaries.

"If you look at what's going on, where basically the top end of town, and those on the highest incomes, are basically gorging themselves." he said.

"Executive pay in Australia now is back to the levels it reached prior to the global financial crisis. We need to see some of our corporate rules change, which ensure that executive pay is brought under control.

"That's very important, because the example that it sets for the rest of the workforce is shocking."

Mr Swan said governments should have the option of placing higher corporate tax rates on companies seen to be overpaying their executives and for legislation to require workers' representation on the Reserve Bank and ABC boards.

"We've got to reinforce the voice of labour, not just through trade unions ... our society, particularly at its upper levels, suffers from the blindness of affluence.

"Too many people and business leaders in our community don't mix with working people. We need to hear the voices of working people ... and, yes, I do regret I didn't put a worker on the Reserve Bank board.

"The fact is that we are in favour of reward for work. If people are working a bit of overtime, to get a bit more money in their hand. We're always in favour of giving working people a fair go in the wage system. What we're not in favour of is this largesse at the top, in the company system and the personal income tax system."