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Slashing penalty rates: a misguided response to problems of the past

10 Oct 2017
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There needs to be more of a focus on the adverse effects of lower wages for the economy as a whole, argues John Quiggin.

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A Senate committee has finally handed down a report on the Fair Work Commission’s decision to reduce Sunday penalty rates for workers in a range of service industries.

The report recommends that the government bring in legislation to overturn the decision, citing mixed evidence of the impact of the penalty rate cut, and the fact that “penalty rates are not a luxury”.

However, as I presented in evidence to both the Senate and the Commission, there needs to be more of a focus on the adverse effects of lower wages for the economy as a whole. While there has been much discussion about the implications of the decision for workers and employers, the broader context has been missing.

Read the full article on The Conversation.

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APO URI: http://apo.org.au/node/113736
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CC BY-ND