Jane Hume (Victoria, Liberal Party) Share this | Hansard source

I rise today to speak against the matter of urgency submitted to the Senate by Senator Cameron. The government opposes this motion and in fact denies the basic premise of this motion. The coalition respects the independence of the Fair Work Commission, and it was their decision to modify Sunday penalty rates in retail, pharmacy, fast-food and hospitality awards. It will help small businesses to open their doors and to compete on a level playing field, and it will help create more jobs.

It was Bill Shorten who, as workplace minister, established this review of penalty rates. It was Mr Shorten who called for the review. It was Mr Shorten who set the rules. It was Mr Shorten who appointed the independent umpire. And it was Mr Shorten who said he would accept that independent umpire's decision.

Labor is so hypocritical on the issue of penalty rates. As a union boss, it was Mr Shorten who was happy to make the deals that cut penalty rates to low-income workers. It was Labor that was happy for big businesses and big unions to lower Sunday penalty rates through the enterprise agreements. Labor is only now opposed to lowering penalty rates when an independent umpire is the one that modifies them for small businesses.

It is empathy for small businesses that seems to have been forgotten in this debate. There are over two million small businesses in Australia that turn over less than $2 million. Many of these are family businesses, either working for themselves on Sundays and public holidays, or not opening at all due to the cost of wages. Consumers are increasingly demanding that those businesses, large and small, operate seven days a week. By amending the Sunday and public holiday wage settings in the retail, hospitality and fast-food sectors, more of those small businesses will be able to meet consumer expectations, by staying open longer. In doing so, they offer their existing employees more hours—or they might take on additional staff, including some of the 259,000 young Australians currently struggling to enter the workforce.

This lowering of penalty rates on Sundays creates a more level playing field for small businesses. Thousands and thousands of small businesses have been competing on this uneven playing field against big businesses that have negotiated with unions through enterprise agreements that mean that they avoid paying those high penalty rates on Sundays. Let me give you a couple of examples. For permanent full-time and part-time staff on Sundays, a bed and breakfast, for instance, must pay $10 an hour more than a 5-star hotel. A family chicken shop must pay $8 an hour more than KFC. A family-owned takeaway must pay $8 an hour more than McDonald's, and a family greengrocer must pay $5 an hour more than Woolworths. The Fair Work Commission's decision will help small businesses open their doors and help them compete on a level playing field and create more jobs. The Liberal and National Parties will stand up for these small businesses who want to get ahead, and for the unemployed and underemployed who want to work.

Mr Shorten's hypocrisy on penalty rates knows no bounds. Mr Shorten was happy to make deals, cutting penalty rates to low-paid workers. He has always been happy for big businesses and big unions to have deals that cut penalty rates. He is only opposed to penalty rates when the modifications are made by the Fair Work Commission, the independent umpire, and when those modifications are done in favour of small businesses. Can I point out that the Fair Work Commission was in fact established by the Labor government in 2009. The commission was tasked by Labor to review all awards every four years. This is part of the four-yearly review of modern awards established by the Labor government in 2009. As workplace relations minister in 2013, Mr Shorten amended the Fair Work Act to specifically require the commission to consider penalty rates as part of that process. Labor appointed all the members of the commission who made the penalty rates decision. Mr Shorten owns this decision. He set the rules. He appointed the umpires. He has repeatedly said that he would respect the commission's decision.

In fact on the Neil Mitchell program on 21 April last year, when asked by Mr Mitchell whether he would accept the finding—given that it was an independent body assessing penalty rates for Sundays—if he was Prime Minister, Bill Shorten answered, 'Yes.' Neil Mitchell repeated the question: 'You will accept them?' And Bill Shorten said, 'Yes.' Neil Mitchell said once more, 'Even if the independent umpire reduces Sunday penalty rates?' And Mr Shorten said: 'Well, I said I would accept the independent tribunal.' Mr Shorten said he would accept this decision. But for him now not to accept the results is sheer hypocrisy and political opportunism.

When he was leader of the AWU, Mr Shorten reduced or removed penalty rates for some of Australia's lowest paid workers. Workers at Cleanevent were stripped of all penalty rates, with no compensation at all, under a 2006 agreement for which Mr Shorten was responsible as the national secretary of the AWU. The Melbourne & Olympic Parks Trust agreement, approved also by Mr Shorten in 2001 and 2003, stripped workers of all penalty rates and overtime, except 125 per cent penalty rates for work performed between 1 am and 6 am.

Since Mr Shorten became leader, the unions have donated more than $25 million to the Australian Labor Party. Last year, they not only donated nearly $10 million to the ALP; they also spent another $16 million on their own campaign to make Bill Shorten Prime Minister. Mr Shorten has made it clear that he will return that favour, and in the last year he has taken the side of union bosses ahead of the 35,000 owner-operator truck drivers, ahead of the 60,000 CFA volunteer firefighters, and ahead of the 300,000 small building businesses in the construction industry. And now he is putting their interests ahead of the small businesses yet again. When it comes to standing up to union bosses, Mr Shorten is proving himself to be the weakest Labor leader in a generation.

However, by contrast, the coalition understands that governments do not create jobs—employers create jobs. We stand side by side with the hardworking small business men and women who drive this country. We recognise that the decision to modify Sunday penalty rates will help small businesses open their doors, compete on a level playing field with large businesses and create more jobs. Many small shops, small pharmacies, takeaways and hotels have found it simply too expensive to open on Sundays.

This is also an independent decision. Just as interest rates decisions are made independently by the Reserve Bank to remove any suggestion of political interference, decisions about employment awards and conditions are made independently by the Fair Work Commission. And it is done this way to ensure that outcomes are evidence based and not political. The Fair Work Commission spent years studying the evidence, including evidence from 5,900 submissions and 143 witnesses. It carefully considered union and employer reviews and expert advice. This is the decision that the Fair Work Commission has made.

Senator Polley mentioned the impact on women—

Senator Polley interjecting—

and this is something that I would like to pursue a little bit further, because the Fair Work Commission—

Senator Polley interjecting—

Senator Polley, expressly considered whether reducing Sunday penalty rates for hospitality and retail workers would impact on the gender pay gap, and it noted—