Unions are mobilising a campaign against proposals to cut penalty rates on Sundays, claiming it is an attack on workers’ wages and conditions.

The Australian Chamber of Commerce and Industry (ACCI) is planning to apply to the Fair Work Commission to have Sunday penalty rates cut across restaurants and catering, retail and for pharmacists. The prime minister, Tony Abbott, has declared he would like to see productivity increased but has stopped short of declaring support for the cut.

Secretary of the Australian Council of Trade Unions, Dave Oliver, said unions were already planning meetings in the next couple of weeks to mobilise a campaign against the proposals.

“Employees want to dress this up as [being] about productivity and employment levels [but] let’s be very clear, this is a move by business to cut wages and conditions of workers across the country. We know they’ve had penalty rates in their sights for years, we know that they’re fairly emboldened now, with an Abbott government in Canberra, and that’s why we’re seeing this move,” he said.

“We know there are many people in the community who want to fight this.”

Oliver rejected arguments it could boost employment or productivity, saying the tribunal had rejected the assertion of a relationship between them and penalty rates “year after year after year”.

A campaign to lower Sunday penalty rates is being pushed by business groups who are planning to apply to the Fair Work Commission for the cut, arguing it is in the community’s interests.

The Australian Chamber of Commerce and Industry (ACCI) is leading the campaign, with retailers, the restaurant and catering industry and pharmacies joining the charge. The prime minister, Tony Abbott, has declared he would like to see productivity increased but has stopped short of declaring support for the cut.

ACCI chief Kate Carnell said she would like to see Sunday penalty rates lowered so they are equal with Saturday rates. Sunday rates vary from industry to industry and from state to state, with pharmacists paid up to 200% more on Sundays, and hospitality workers and retail workers receiving up to 100% more an hour.

ACCI’s campaign comes in the wake of the FWC last month lowering Sunday penalty rates for young casual workers in the restaurant and catering industry.

“It’s very much reflective of the society we live in, not necessarily the one we desire to live in – right now we want to shop weekends, we want to go out to a restaurant on weekends, we want the services that we need, get our haircut, go to the butcher’s, all those sorts of things on weekends,” Carnell told ABC radio.

“Australians have spoken with their feet already. The problem is, especially for small to medium businesses, the cost of opening can be absolutely prohibitive. If those costs were reduced, small to medium businesses could employ more of our young people.”

Carnell called it “win-win” for Australians and young people who want jobs. When questioned about whether it was more important for Australian families to be together on Sundays rather than working, Carnell said Australians expected to be able to access services on the weekend.

“Shop owners would much rather be home with their families as well but the reality is Saturdays and Sundays are most often the busiest days of the week now. So for many businesses they simply have to open because of the expectations of me and you and the majority of the rest of Australians,” she said.

Asked if she accepted that reducing Sunday penalty rates could reduce the incentive to work for workers such as nurses in hospitals, Carnell replied “no”.

“If wages were too low to attract people, wages would go up, it’s that simple,” she said.

Carnell did not directly address the question about whether ACCI had told the government about its FWC application, saying it would be no surprise to the Coalition.

Tony Abbott trod carefully when asked if he supported the push, saying it was not up to the federal government.

“Well, I certainly think that we need to lift productivity, and this is one of the big features of the budget, to lift productivity by building infrastructure, by ensuring that we live within our means, by getting taxes and regulations down over time,” he told ABC’s AM program.

“Yes, we must boost productivity if we're going to pay our way in the world successfully. But penalty rates are a matter for the Fair Work Commission, and people are perfectly entitled to bring applications to the Fair Work Commission to ensure that their businesses are profitable and they can continue to maximise employment.”

FWC decided in favour of businesses in March when it lowered Sunday penalty rates for the two lowest grades of employees in restaurants, bar and cafes. From July, their Sunday penalty rates will be lowered from 75% to 50%.



United Voice, the union which represents the hospitality industry, among others, is a strong campaigner for maintaining penalty rates.



“It’s an acknowledgement that working unsociable hours can contribute to an unsociable life,” the union’s website says. “You miss out on family events like birthday parties or joining friends for dinner. And children miss out seeing their parents or their grandparents who work unsociable hours. If you’re in a relationship you might see your partner less often. As much as we talk about a 24/7 society, there is still a mainstream that works Monday-Friday from 9 to 5.”



The union argues most workers who work unsociable hours are low-paid and rely on penalty rates.