A report by Productivity Commission into industrial relations reforms suggested reducing the Sunday penalty rates in certain sectors to help maintain parity with the Saturday rates. The report, which was released on Monday, supported cuts in Sunday penalty rates in the hospitality, restaurant, cafe, entertainment and retail sectors.

Employment Minister Michaelia Cash said that any change in rates would be decided by the Fair Work Commission.

“Award penalty rates should continue to be set by the independent Fair Work Commission,” she told reporters in Perth on Monday while releasing the commission’s final report. “The Productivity Commission does not recommend any changes to overtime penalty rates, night penalty rates or shift loadings. It has not suggested any changes to the penalty rates of nurses, teachers or emergency service workers." The only recommendation that the Productivity Commission makes on penalty rates is directed to the independent Fair Work Commission, specifically for the retail and hospitality industry.

She added that the mandate of the Australian people will be sought in this regard. She said that the government will have a mature interaction with the Australian people to work out the changes.

According to industry leaders, the move would create 40,000 new jobs in the country. Kate Carnell, the chief executive officer of the Australian Chamber of Commerce and Industry, said the figure can be even higher than that. She added that more businesses will emerge into the picture if entrepreneurs find the venture to be more cost-effective.

The Guardian reported that Labor has opposed the idea and suggested that the move will result in reducing the worker’s income by 10 percent.

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