Steve Georganas (Hindmarsh, Australian Labor Party) Share this | Hansard source

I rise to support this important motion. The proposed changes to penalty rates approved by the Fair Work Commission—and still, I have got to say, unopposed by the Turnbull Liberal coalition government—is an absolute devastating blow to 700,000 workers around the country.

These 700,000 workers could lose up to $77 a week from their pay cheque. As we have heard today from other speakers in this place here and downstairs, this is money that could be used to pay for food, to pay for schools, for kids for their shoes, the electricity bill, the rent et cetera

In my electorate of Hindmarsh, it would affect over 12½ thousand people who live in my electorate alone. These are people who are already earning low wages and give up their valuable Sundays and public holidays to work. Protecting penalty rates goes hand in hand with protecting workers' rights.

Why is this important?

It important because we know workers are the engine of our society. They are the ones who absolutely get the economy going—money going around, paying for their day-to-day living et cetera. As I said, they are the engine of our society and our economy. That is why it is important.

According to research undertaken by the Economic Policy Institute,

Improved worker rights have been shown to offer a solid foundation for strong and stable economic growth by supporting demand and stabilizing local currencies and banking systems.

The research tells us that this is not only morally correct; it also makes good economic sense to ensure that workers have good conditions, are paid the proper wages and are renumerated for giving up a very important weekend without their families, without taking the kids to sport or perhaps not going to the church services that they may regularly go to on Sundays. That is why it is important to ensure that they are rewarded on these days because they are working when the rest of us are enjoying everything else. It is morally correct, and, as I said, it also makes good economic sense. The research finds that better workers' rights result in high productive growth, thus leading to faster economic growth. Also, improved workers' rights tend to result in a better distribution of income among workers and between different companies and firms. As the benefits of faster growth are more evenly distributed, local demand is stronger and more stable, thus reducing the chance of a financial crisis.

As opposed to what the Liberal government would have us believe, it is not just unions that are fighting for penalty rates; even the Organisation for Economic Cooperation and Development, OECD, has, in recent years, found that the argument for higher wages stifling employment does not stand up. In 2006, the OECD concluded, after an exhaustive examination of research literature, 'The level of the minimum wage has no significant direct impact on unemployment,' and 'highly centralised wage bargaining significantly reduces unemployment'. Penalty rates are an absolute fundamental part of protecting the rights of workers, especially ensuring that workers receive fair compensation, as I said earlier, for giving up their weekends and public holidays to work.

Those that work on weekends and public holidays are usually low-income workers, part-time workers, students and, perhaps, part-time mums that top-up the family budget to ensure that they keep the bills paid and to make a little bit extra to get the kids some extra clothing or for that outing once a week or once a month. It is very important. To penalise these workers, who often earn lower than average wages and who are often on casual and precarious employment conditions, is a very low blow indeed.

This brings me to the other compelling argument for protecting penalty rates. It is morally correct, as I said earlier. I believe you can judge a country on the way it treats its most vulnerable, and kicking them when they are down has been the habit of this particular government. It is not a very nice way to treat anyone. I know that a country I want to live in is one that is fair and respects its workers. This is why I join my Labor colleagues on this side in calling on the government members and senators to stand up with us to protect low-paid workers, take-home pay and support Labor's Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017. It is the only fair thing to do.

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