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Young workers will suffer from Sunday pay cuts

Photo: Getty

Photo: Getty

Young workers are furious with a proposal to slash their pay and make frugal money management an even bigger problem than it already is.

Part-time and casual employees who spoke to The New Daily said they were frightened about their penalty rates being under threat in the wake of a new government-commissioned report.

“People won’t work Sundays if pay is cut,” Matthew, a retail assistant said. “People rely on the extra pay the government want to get rid of.”

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On Tuesday, the Productivity Commission said the Abbott government should abolish penalty rates on Sundays for those employed in hospitality and retail industries, some of whom are the lowest-paid workers in Australia.

Most workers who benefit from penalty rates are young, often balancing study and internships while trying to save or pay their way in life.

In the hospitality and retail sectors, workers commonly receive double pay on Sundays.

According to the Queensland Council of Unions, the proposed cuts would cost the average worker about $80 a week – that kind of money could go toward a student’s textbook budget, petrol for their car or be put away for the future.

Photo: Shutterstock

For some workers, Sunday can be an extremely busy shift. Photo: Shutterstock

For some workers who spoke to The New Daily, it could mean earning up to $5000 less over a six-month period.

Here’s how a cut to Sunday penalty rates would impact on the lives of three young workers.

Matthew, 22

Job: Supermarket assistant
Study: Third-year Bachelor of Exercise Science, will then complete a Diploma of Education

Matthew wants to save before starting a Diploma of Education next year, so he has enough money to sustain him during his stints of unpaid work placement.

Teaching students are required to complete these blocks of unpaid placement during their study. Unless they have savings, while they’re essentially volunteering in classrooms from 9am to 5pm Monday to Friday, they need to work on weekends as well.

All of a sudden a 38-hour working week of unpaid placement becomes a 50-hour-plus week, when paid weekend work is factored in.

Sunday rates mean if someone does need to earn money while on work placement, they don’t need to do crazy hours to cover costs.

Matthew added: “It’s busier on Sundays and we have to work a lot harder. I would be turned off if I wasn’t getting the extra money.”

Photo: Getty

Retail workers are among the lowest paid in Australia. Photo: Getty

Henry, 20

Job: Waiter and retail assistant
Study: Third-year Bachelor of Arts student

The difference between Henry’s Sunday pay rate and his normal wage is significant. During the week his retail job pays $24 p/h but on Sunday it doubles to $48 p/h.

If Henry worked an eight-hour shift every Sunday for six months without penalty rates, he would earn $4992 less than if he did get penalty rates.

That drop represents 31.2 per cent of the average half-yearly wage for retail assistants in Australia.

If penalty rates were dropped to time-and-a-half, as has been proposed by the Productivity Commission, workers would be out of pocket by close to $2500.

After paying for essentials like mobile phone usage, petrol, car insurance, university textbooks, etc, there’s not a lot left over – and that’s under the existing penalty rates structure.

“You don’t want a society where workers rely on tips,” Henry said.

“People are out having breakfast on a Sunday morning and it’s quite a busy time for retailers. But because they need to pay more they are hesitant to put on extra staff.”

Photo: Getty

One worker has called for an increase to award wages if Sunday rates are cut back. Photo: Getty

Jess, 20

Job: Three different casual jobs across the retail and hospitality industries
Study: Bachelor of Arts (Sociology and History), aims to complete a Diploma of Education

Jess expects to begin a teaching degree after completing her undergraduate, and said planning for long periods of unpaid work is a lot tougher without Sunday benefits.

Arts degree contact hours are 13 hours for four units. Each subject suggests four hours of study outside of tutorials and lectures. Therefore, commitment for arts students is 29 hours per week.

Add this to Jess’ average working week of around 32 hours, and then work and study take up 61 hours of her time.

Jess is well above the 38-hour working week that many Australian workers hold dear. If Sunday rates were cut she would soar far above that mark.

“Cutting the rates would be a bad decision. I will only work Sunday for the increased rates,” Jess said.

“If they do remove Sunday penalty rates I think that they should increase the weekly hourly rate.”

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