LOCAL cafes have joined a battle cry to abolish weekend and public holiday penalty rates, claiming both employers and customers lose out under the outdated scheme.
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Vivaldi cafe owner and manager Marilyn Webb said having to pay time-and-a-half to staff of Sundays meant she was forced to close her doors at one of the hospitality industry’s peak times.
“I don’t open on a Sunday because of the penalty rates,” Mrs Webb said.
“The penalties kill me.
“Customers are always asking if we’re open on a Sunday, which is when you see lots of people at cafes and restaurants.”
She said she would prefer Sundays to be treated like Saturdays, where she paid a “manageable” time and a quarter.
Addimi co-owner Michael Coffey said the system of penalty rates needed to evolve – living in the 21st century meant Sundays were no longer sacred and customers expected a service seven days a week. Mr Coffey said he was forced to cut back on staff on weekends – meaning they were working at a busier time with fewer staff – and that he would prefer to pay his staff a higher hourly rate, rather than penalties.
He said the rates meant a chef’s rate sometimes rose from $25 per hour to $75, and with eight-hour shifts and three chefs, the figures soared to dizzying heights.
Over the four days of Easter last year, the cafe operated to its own detriment, making a $1000 loss.
He said the higher rates of pay for staff meant the cafe also charged customers and extra 10 to 15 per cent.
“Customers are taking a hit as well. Both sides are losing out,” Mr Coffey said.
NSW Small Business Minister John Barilaro said the federal government was reviewing the penalty system under a productivity commission.
“I cannot see penalty rates abolished in the near future,” Mr Barilaro said.
“I think there will be movement on the loadings, where Sundays and public holidays would be treated the same as Saturdays.”
He said it was important to ensure small businesses were viable and profitable, but it was equally important to ensure young people attracted to hospitality jobs were also protected and paid well.
Small businesses were “doing it tough” and were forced to compete with online enterprises, Mr Barilaro said.
“We’re living in a different world – people now want access to shopping 24/7. We need to acknowledge the
market has changed.”
