The Short Sell: Penalty Rates, Reaganomics and the ‘Jobs Motive’

The recent decision to cut penalty rates in Australia is another step towards widening the gap between rich and poor, writes Ben Debney.

This week’s decision by the Fair Work Commission to cut Sunday penalty rates for retail and hospitality work is rationalised by a supposition that lower wages for working outside of regular hours aids jobs growth — one that has been championed by the Federal Employment Minister, Michaelia Cash, who claims that weekend penalty rates ‘seem to deter weekend work.’

Other defenders have echoed this thinking. “Our retailers have told us quite clearly that they will be employing more people where they are already employing people on a Sunday,” claims Australian Retailers Association spokesman Russell Zimmerman. “Where they have shops closed on a Sunday they will look at reopening the shops on a Sunday to ensure more employment throughout the industry.”

Read the rest on New Matilda