The Australian Labor Party is preparing to introduce a new bill that seeks to protect penalty and overtime rates for an estimated 2.6 million workers across the country.
The proposed legislation, revealed by Employment and Workplace Relations Minister Amanda Rishworth, aims to ensure that workers who depend on these entitlements for financial stability are not adversely affected by any changes to their pay structures.
According to Minister Rishworth, these workers rely heavily on these rates to “keep their heads above water.” News sources indicate that the bill is expected to be presented this week, although many details remain unclear.
Labor’s New Bill Details of the Proposed Bill
The bill will prevent the Fair Work Commission (FWC) from reducing or substituting overtime or penalty rates if such changes would result in a decrease in a worker’s overall take-home pay.
According to the proposal, no award can be altered if it would negatively impact even a single worker, particularly in cases where overtime or penalty rates are involved.
The bill’s supporters and underlying rationale
Minister Rishworth emphasized that millions of Australians who work on weekends, public holidays, or during unsocial hours rely on penalty rates and overtime to make ends meet. She stated,
If you rely on the modern award safety net and work weekends, public holidays, early mornings or late nights, you deserve to have your wages protected – She added,
Millions of hardworking Australians rely on penalty rates and overtime rates to keep their heads above water, which is why this Bill is so critical and should receive the support of both the Opposition and the Greens.
The bill is expected to provide additional protection for these workers, many of whom struggle financially without the additional income from penalty and overtime rates.
Additionally, the bill has received backing from major retail giants, including Mecca, Kmart, Costco, and 7-Eleven, all of which are in favor of maintaining these entitlements for their workers.
Opposition from the Coalition
Despite the support from labor unions and some retail industry representatives, the proposed bill faces strong opposition from the Coalition.
Industrial relations and employment spokesperson Tim Wilson argued that the FWC already ensures that workers receive fair pay.
He criticized the bill as politically motivated and focused on Labor’s agenda rather than addressing broader economic issues. Wilson stated,
Workers get the best arrangements possible for a fair day’s work – He also emphasized,
There is no threat to penalty rates – Adding,
What there is, is a political focus of the Government that isn’t focused towards improving the economic conditions to help small businesses grow, to enable them to go on and employ the next generation of workers, to give those first generation, those first jobs to young Australians so that they can be independent and be able to get on with their economic futures.
