Thousands of Coast workers to lose out if penalty rates are cut

Unions NSW says thousands of Central Coast workers are set to suffer under proposed cuts to penalty rates for retail staff.

The organisation, which advocates and campaigns for workers in NSW, says crucial penalty rates and workplace entitlements could be lost if the Australian Retailers Association’s application to the Fair Work Commission succeeds.

The proposed cuts seek to abolish overtime, weekend and evening penalty rates, reduce rest time between shifts, remove work breaks and scrap annual leave loading for retail workers.

In exchange, workers will receive a salary increase of 25% under the proposal, which Unions NSW says falls seriously short of compensating for the significant loss of protections.

According to ABS data, 14,894 permanent award-reliant workers on the Central Coast could be affected by the proposal.

“If successful, the application could set a precedent for penalty rate cuts in other award-reliant industries including hospitality, healthcare, fast food and administration,” Unions NSW Secretary Mark Morey said.

Morey said the proposed changes undermined hard-fought worker protections and severely impacted low-paid employees already struggling to make ends meet.

“Retailers are making billions in profits so it’s disgraceful that they’re targeting the penalty rates and entitlements of the very people who keep their businesses running,” he said.

“This is a cash grab at the expense of hard-working Australians.

“The proposed cuts target retail workers earning just $53,670 per year – just $6,000 above the minimum wage and far below the Fair Work Commission’s definition of a low-paid worker.”

Morey said the move was backed by some of Australia’s largest retailers including Coles, Woolworths, Kmart, Costco, Mecca Cosmetica and 7-Eleven.

“We’ve seen this happen before,” he said.

“When penalty rates were cut in 2017, workers across retail and hospitality lost thousands from their annual pay.

“We can’t let history repeat itself.

“These cuts will hit the lowest-paid workers hardest, especially in regions where penalty rates are vital to making ends meet.”

He said Opposition Leader Peter Dutton and the Coalition had voted eight times against moves to restore penalty rates for workers in fast food, hospitality, retail and pharmacy since 2017.

The Coalition is yet to comment on whether it will rule out cuts to penalty rates if successful at the 2025 Federal election.