BUSINESSES in the CBD are remaining closed on weekends and public holidays because of excessive penalty rates.
This is the view of Bunbury Chamber of Commerce chief executive Ray Philp who said closed businesses impacted the community on many levels, from loss of jobs to lack of vibrancy in the CBD.
Last week the Productivity Commission released a draft of the Fair Work laws report and put forward a case to have penalty rates reevaluated.
Penalty rate laws are an increased rate of pay for employees who work outside of normal business operating hours.
“It is certainly an issue in relation to employment, visitor expectations and the locals,” Mr Philp said.
“Penalty rates force people to close and that means people don’t get employed.
“It starts to become counterproductive because if you don’t get the patronage then shops won’t open and it negatively impacts the vibrancy of the CBD.”
Jolt Footwear owner Jo O’Dea opened on a Sunday over many months to see if it was worth her while trading on Sundays.
She said it ended up costing her money because on the Sundays she didn’t work she had to pay her staff penalty rates of almost $50 an hour, which just wasn’t viable.
“I don’t want to be working seven days a week but I’d have to sell more than a few pairs of shoes to make a profit just to cover Sunday wages,” Ms O’Dea said.
“I am prepared to open but the whole CBD needs to open to make it worthwhile.
“We need to promote Bunbury as a tourism destination to retract and retain tourism in the town because that’s where the dollar is.”
She said people come into town on a Sunday but don’t have faith that the CBD is going to be open and the whole community needs to support businesses to make it work.
But South West MLC Adele Farina said the suggestion penalty rates were the cause of small businesses closing was flawed.
“Small business in general must be supported but it should not come at the expense of low paid workers,” Ms Farina said.
Prime Minister Malcolm Turnbull has stated it was inevitable Sunday penalty rates will be reduced but there would need to be widespread acceptance from workers that they would not be left worse off.
Federal employment minister Michaelia Cash said the government made no recommendation to remove penalty rates but rather lower regulated penalty rates.
She said if the final report reflects sensible, fair change to the framework then it would be taken to an election for the Australian people to decide.
