Labor vows to protect penalty rates if re-elected

The government has announced it would enshrine penalty rates in law, which would impact around three million Australian workers.

A barista working at a coffee machine.

Penalty rates could be a factor in how Australians vote this election. Source: Getty / Kriangkrai Thitimakorn

As the election campaign hits a brief pause for the Easter weekend, Labor has positioned itself as the for employees working during the holiday period.

On Saturday, the government announced it would enshrine penalty rates in law if re-elected.

That would prevent business groups, such as the Australian Retailers Association, from applying to the Fair Work Commission to cut the provisions from award agreements.

Industrial relations issues have worked in Labor's favour during the campaign, with polling showing Opposition leader Peter Dutton's short-lived pledge to force public servants back into the office fared poorly with voters.
With cost-of-living concerns at the forefront of the campaign, more polling has shown that how parties treat penalty rates could be a factor in how they vote.

The Essential Research polling, commissioned by Australian Unions, found 70 per cent of respondents said protecting penalty rates for workers would be an issue voters take into consideration at the ballot box.

The poll also said 44 per cent of people were more likely to vote for a party that had policies in place to protect penalty rates, compared to 10 per cent being less likely to give the party support.
A man in a suit speaking
Minister for Employment Murray Watt said workers deserve to be rewarded for working on weekends. Source: AAP / Mick Tsikas
Retail worker Pauline Lethborg said the extra money from penalty rates went a long way.

"If we lose penalty rates, it doesn't just affect the older workers, it's the younger ones as well. That bonus money goes to pay rent and food," she said.

"The cost of living these days is very hard, right across the board.

"It's not like we're being paid $100 an hour, a lot of retail workers are on $20 to $25 an hour ... penalty rates is what gives them their supplement income."

Earlier in the year, the Australian Retail Association submitted a proposal for some staff at large companies to opt out of penalty rates in exchange for a 25 per cent raise.
Employer lobby Australian Industry Group has backed a similar push for the clerks and banking awards, arguing the rise in working from home has made it impractical for employees to log their hours and compounds the regulatory burden on employers.

Labor had filed a submission to the Fair Work Commission opposing the changes, while also calling for the coalition to provide clarity on its penalty rate stance.

Around three million workers would be affected if Labor succeeds in legislating to protect penalty rates.

Workplace Relations Minister Murray Watt said employees deserved to be rewarded for giving up family time to work during weekends.

"We will always stand with workers to protect their wages so that we can help them deal with the pressures of today and get ahead in the future," he said.
Opposition employment spokesperson Michaelia Cash said in February that penalty rates would not be cut under a future Coalition government, dismissing Labor attacks as a scare campaign.

Anthony Albanese and Peter Dutton spent Good Friday in Sydney, amid a lull in campaigning for the Easter period.

But electioneering will heat up again next week, with early voting opening on Tuesday ahead of the 3 May poll.


 For the latest from SBS News, and .

Visit the to access articles, podcasts and videos from SBS News, NITV and our teams covering more than 60 languages. 

Share
4 min read
Published 19 April 2025 3:30am
Source: AAP



Share this with family and friends