This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/world-australia-39060356
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Why baristas are about to earn less in Australia | Why baristas are about to earn less in Australia |
(about 5 hours later) | |
On Thursday, Australian officials made a decision that prompted an immediate backlash around the country. | On Thursday, Australian officials made a decision that prompted an immediate backlash around the country. |
The nation's workplace tribunal, the Fair Work Commission, slashed a pay benefit for workers in the hospitality, retail, fast food and pharmacy industries. | The nation's workplace tribunal, the Fair Work Commission, slashed a pay benefit for workers in the hospitality, retail, fast food and pharmacy industries. |
Known as penalty rates, it afforded employees higher wages - as much as 200% in some cases - on Sundays and public holidays. | Known as penalty rates, it afforded employees higher wages - as much as 200% in some cases - on Sundays and public holidays. |
The decision triggered anger from unions, who claimed it would cost some workers up to A$6,000 (£3,700; $4,600) a year, and passionate criticism on social media. | The decision triggered anger from unions, who claimed it would cost some workers up to A$6,000 (£3,700; $4,600) a year, and passionate criticism on social media. |
Brisbane bar worker Selina Young is among those affected, estimating she will now earn A$50 less on Sundays. She says she relies on penalty rates to boost her Sunday pay from A$19.90 per hour to just under A$30. | Brisbane bar worker Selina Young is among those affected, estimating she will now earn A$50 less on Sundays. She says she relies on penalty rates to boost her Sunday pay from A$19.90 per hour to just under A$30. |
"I don't lead a luxurious lifestyle," Ms Young told the BBC. "I'm at a bit of a loss for what to do." | "I don't lead a luxurious lifestyle," Ms Young told the BBC. "I'm at a bit of a loss for what to do." |
So what is changing? | So what is changing? |
In Australia, penalty rates in fact apply to working weekends, public holidays, overtime and late-night or early morning shifts. | In Australia, penalty rates in fact apply to working weekends, public holidays, overtime and late-night or early morning shifts. |
But this week's changes affect only Sunday and public holiday pay, and vary across industries. Employees will still earn more than on weekdays. | But this week's changes affect only Sunday and public holiday pay, and vary across industries. Employees will still earn more than on weekdays. |
The Australian Council of Trade Unions said the take-home pay of nearly one million workers would be cut by up to A$6,000 a year, but that figure was disputed by some business advocates. | The Australian Council of Trade Unions said the take-home pay of nearly one million workers would be cut by up to A$6,000 a year, but that figure was disputed by some business advocates. |
Who wanted the changes? | Who wanted the changes? |
Employers argued that penalty rates were "excessive" and prevented many businesses from opening on Sundays because they could not afford to pay wages. | Employers argued that penalty rates were "excessive" and prevented many businesses from opening on Sundays because they could not afford to pay wages. |
They claimed cutting penalty rates, which have existed since the early 20th Century, would give employees more working hours and better satisfy customers. | They claimed cutting penalty rates, which have existed since the early 20th Century, would give employees more working hours and better satisfy customers. |
Australia's Productivity Commission agreed, describing Sunday rates rates in shops, restaurants and cafes as "anachronistic" and recommended changes. | Australia's Productivity Commission agreed, describing Sunday rates rates in shops, restaurants and cafes as "anachronistic" and recommended changes. |
Who made the decision? | Who made the decision? |
The Fair Work Commission (FWC), an independent body set up in 2009 to be a workplace relations "umpire". Among its several workplace-related responsibilities, the FWC reviews penalty rates every four years. | The Fair Work Commission (FWC), an independent body set up in 2009 to be a workplace relations "umpire". Among its several workplace-related responsibilities, the FWC reviews penalty rates every four years. |
In making its decision, the commission said Sunday and public holiday penalty rates were no longer a "fair and relevant" safety net for workers. | In making its decision, the commission said Sunday and public holiday penalty rates were no longer a "fair and relevant" safety net for workers. |
FWC president Iain Ross said the purpose of penalty rates should not be to deter businesses, arguing it increases employment. | |
But he did acknowledge the changes would hurt some people. "Many of these employees earn just enough to cover weekly living expenses," Mr Ross said. | But he did acknowledge the changes would hurt some people. "Many of these employees earn just enough to cover weekly living expenses," Mr Ross said. |
Australia's conservative government did not oppose the changes, but Opposition Leader Bill Shorten - a one-time union leader - said they were "a kick in the guts". | Australia's conservative government did not oppose the changes, but Opposition Leader Bill Shorten - a one-time union leader - said they were "a kick in the guts". |
How does Australia's minimum wage compare? | How does Australia's minimum wage compare? |
Australia has one of the highest minimum wages in the world, A$17.70 (£10.90; $13.60) as of July 2016. | Australia has one of the highest minimum wages in the world, A$17.70 (£10.90; $13.60) as of July 2016. |
That compares to A$11.70 (£7.20; $8.95) in the UK and A$9.40 (£5.80; $7.25 ) in the US. | That compares to A$11.70 (£7.20; $8.95) in the UK and A$9.40 (£5.80; $7.25 ) in the US. |
However, Australian workers aged under 21 can make less than half the minimum wage, based on a sliding scale that increases as people get older. | However, Australian workers aged under 21 can make less than half the minimum wage, based on a sliding scale that increases as people get older. |
In a further complication, wages are growing at their slowest pace on record - less than half compared with 10 years ago, according to Australian Bureau of Statistics data. | In a further complication, wages are growing at their slowest pace on record - less than half compared with 10 years ago, according to Australian Bureau of Statistics data. |
Previous version
1
Next version