Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

The decision of the Fair Work Commission to cut Sunday penalty rates for as many as 700,000 hardworking Australians was as shocking as it was unprecedented. In the past month, I have received so many calls, messages and emails from people in my community who are angry and, indeed, worried about this decision, which the Turnbull government supports.

I have heard from parents who are worried about how their children will get by when their wages are cut from July this year. I have also heard from workers who have been directly affected but are terrified about speaking out for fear of losing their jobs. On the positive side, I have also met with local employers, like my local cafe, Terminus on Darby, who have decided from day one not to go down this path of cutting Sunday penalty rates.

I will be writing to the Prime Minister to communicate the sentiments that I have received from my community, but I also want to share some of those with the House today. Many people who spoke against the cuts raised the sacrifices that weekend workers make as they forego recreational and family time to serve their communities—people like Ms Margie Rushton, who challenged us all when she said: 'Ask a Monday-to-Friday person if they would work weekends for the same money. The answer is a resounding "no".' She notes that in this era of a 24/7 economy, it is right to assume that a Monday-to-Friday job is no longer the norm for so many people, but she makes the point very clearly that workers should be duly compensated for all the things that they give up whilst working on weekends.

Others made clear that penalty rates are most certainly not a luxury item but a necessity helping low-income workers meet their ever-increasing cost-of-living expenses. Without them, these low-paid Australians would struggle to pay the rent and keep the lights on, let alone cover unexpected bills or ensure the car is maintained. Mr Tait wrote to me that his daughter relies on Sunday penalty rates to keep her car on the road and to pay for her board.

Malcolm Turnbull argues that cuts to low-paid workers' wages are actually a good thing, suggesting they will somehow drive jobs and growth. But there is simply no evidence of this. In fact, if these cuts proceed, millions of dollars will be ripped out of workers' pockets and out of regional economies. What Australian businesses stand to gain through reduced labour costs they will pay for through greater competition for a reduced pool of customers. The fact the Turnbull government is backing in pay cuts for low-paid Australians while it continues to mount a case for $50 billion worth of tax cuts for big business is utterly appalling. It also highlights how blind the government is to inequality, which now sits at a 75-year high.

I received a very well-thought-out letter from Mr Lindsay Gardner, who lives in my electorate. He rightly warned that inequality will only get worse if these cuts proceed. On this issue, he said:

The removal of penalty rates advantages the powerful and punishes the poorer members of our society. The removal of penalty rates accelerates further division within our communities.

Mr Gardner has raised an important issue and one we must heed. And we need to understand that this is just the beginning. Today, it is hospitality, retail, fast-food and pharmacy workers in the firing line. Tomorrow, it may well be nurses, teachers and cleaners facing these savage pay cuts.

But there is another way. This week, Labor introduced legislation which would not only protect the pay of workers affected by the recent decision but also prevent future decisions that would slash minimum wages. This has never been more important. Only last month, ABS data showed companies recorded a massive 20.1 per cent boost to profits in the last quarter. In the same period, workers' wages went backwards by 0.5 per cent.

Mr Falinski interjecting—

Members opposite protest at this, but there is very clear evidence that company profits are up and workers' wages are down. The Turnbull government needs to reverse this trend by standing up for Australian workers and supporting Labor's legislation.

I would like to end with a few words from Mr John Kelly, who sees the penalty rates cuts as just the latest in a series of attacks on workers' pay and conditions. Mr Kelly's passion was clear when he said:

Please, give me and these defenceless people a break.

I couldn't agree more. (Time expired)