Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Employment, Senator Cash. Is the minister aware of any recent reports of deals between registered organisations and large companies that actually lower penalty rates for workers?

Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Link to this | Hansard source

Unfortunately, Senator Reynolds, I am, but it probably comes as no surprise to you. We all saw reports today that workers at Big W were employed on, lo and behold, an enterprise agreement. But, guess what? It was negotiated by the SDA—a union—and the AWU, the former union of the current Leader of the Opposition, Mr Bill Shorten, and guess what it did? It significantly disadvantaged workers who worked on a Sunday. These workers are receiving $7.74 per hour less than the relevant award rate, and those who work a full Sunday shift—get this—need to work more than 50 hours during the week just to make up for what they've lost on a Sunday as a result of the deal struck for them by the union that was allegedly meant to represent them. Hypocrisy is thy name when it comes to unions negotiating penalty rate deals with big employers.

But at the same time—and this is probably why there is silence on the other side—we have a massive scare campaign being run by those on the other side in relation to the independent Fair Work Commission, set up by those on the other side; the president of the independent Fair Work Commission, appointed by those on the other side; conducting a process in relation to penalty rates, put forward by those on the other side; and making a decision that in a small way benefits small business. Those on the other side—again, dead silence today, colleagues—are very, very quiet when their union mates do deals with big businesses to lower or abolish the penalty rates of low-paid workers in this country. (Time expired)

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Reynolds, a supplementary question.

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

Can the minister also advise the Senate how these agreements compare to other wage-setting arrangements relating to penalty rates?

Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Link to this | Hansard source

Labor and the unions want it both ways. They want to be able to negotiate away penalty rates. In that respect, obviously, can I just remind colleagues that, when Mr Shorten was secretary of the AWU, workers at Clean Event were paid $10 less per hour than they would've been under the award—but, again, I think they were Mr Shorten's brilliant negotiating skills on display there. But those on the other side and unions want to have it both ways. They want to be able to negotiate away penalty rates for those working on a Sunday; however, when the independent Fair Work Commission makes a decision, based on many years of taking evidence, a considered decision under the process put forward by Labor, they have the audacity to stand up and say, 'That is not good enough.' They will always stand for big business and big unions doing deals to, quite frankly, screw employees but they will never stand for small business.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Reynolds, a final supplementary question.

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for her response. In light of her responses, can she also advise the Senate why it's important that such arrangements are subject to parliamentary scrutiny?

Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Link to this | Hansard source

We've seen some very important evidence given to the Senate Education and Employment References Committee about the deals that were done between the SDA, the AWU and big employers to undercut penalty rates. The inquiry heard evidence about deals made between the unions and McDonald's, Coles, Woolworths, KFC, Domino's, Hungry Jack's and David Jones, amongst others, that cut penalty rates on Sunday. It's been confirmed that the supposedly higher base rate for the weekday work is not enough to compensate for the loss of pay on a Sunday.

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

This is a gross misrepresentation of the better off overall test. What a joke! They are among the highest paid retail workers in the world.

Opposition senators interjecting—

Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Link to this | Hansard source

In other words—despite the calls coming from those on the other side—employees who are subjected to deals done by the union and big business are actually worse off under the union that is allegedly meant to represent them.