Turnbull says reducing Sunday penalty rates likely

Prime Minister Malcolm Turnbull said that weekend penalty rates are very likely to face changes, but that the support of workers for any adjustment would be highly important.

According to the prime minister, the difference in the penalty rates between Saturday and Sunday is akin to an outdated economy. Sunday penalty rates, which are at present double the regular hourly rate compared to Saturday’s time-and-a-half rate, will be reduced to ensure more flexibility in the workplace.

The prime minister also assured that workers are required to accept and support the changes, and stressed that such changes would not leave them worse off.

"You do have unions and workers who are naturally reluctant to give up benefits that they have," he told Melbourne radio 3AW. "Any reform has got to be able to demonstrate that people are not going to be worse off."

Turnbull’s comments about possibly reducing weekend penalty rates followed that of Employment Minister Michaelia Cash’s to the ABC, when she earlier said the government doesn’t, at present, plan to rescind the penalty rates.

The productivity commission had suggested that Sunday rates be made uniform with that of Saturday’s hospitality and retail sectors. But unions argue that such changes would affect lower income groups since those on penalty rates are the lowest paid.

Turnbull, after ousting former Prime Minister Tony Abbott, said the issue was up for consideration by his government. Resources Minister Josh Frydenberg has since been trying to slash Sunday penalty rates, citing that it would boost the economy and reduce the high youth unemployment rate. While Cash also supported the idea but promised any such changes would be brought to an election, Treasurer Scott Morrison remains the only federal minister to consider the change as a barrier to the economy.Opposition leader Bill Shorten lashed out at Turnbull’s comments, saying that he has brought back WorkChoices, which was put to rest by Abbott.

"Tony Abbott said on 3AW that WorkChoices was dead, buried and cremated," Shorten said in a press conference on Tuesday. "Malcolm Turnbull today has gone on 3AW and given WorkChoices the kiss of life. He's come back and said, 'Well we should cut penalty rates as long as people aren't worse off.’ Malcolm Turnbull: What planet do you live on?"