4 December 2017
Nick Xenophon and his party are turning their backs on South Australia’s unemployed youth, mum and dad small business owners and retailers if they support the Federal Labor Party's motion to increase penalty rates in the Senate today.
Business SA Executive Director of Business and Government Engagement, Anthony Penney, says the NXT Party’s decision to support Labor's moves to increase penalty rates will mean fewer businesses will be able to provide additional hours and take on new staff because of crippling weekend rates.
“Business SA is extremely disappointed the NXT Party has indicated it will support Labor’s underhanded amendments to increase penalty rates because of the impact it will have on under-employed and unemployed youths,” Mr Penney said.
“NXT has taken advantage of a political situation to support Labor’s procedural bill on penalty rates, which will overturn the Fair Work Commission's independent decision.”
Mr Xenophon has campaigned in South Australia about a need for “good government”, being more accountable and trying to support a change in the tide of public cynicism to politics.
“This latest Canberra stunt shows Mr Xenophon's words are hollow and he is only interested in winning votes, not good government. It’s disheartening to see NXT caving to union pressure.”
In July, the independent Fair Work Commission awarded workers across Australia an increase in Award rates of 3.3 per cent - significantly above CPI - and arguably to compensate for the change in penalty rates. If this Bill is passed, businesses will have to pay increased penalty rates.
Business SA fears Mr Xenophon and his party’s underhanded play proves he cannot be trusted if he is elected to the South Australian Parliament in 2018.
“An overwhelming majority of SMEs supported the smoothing out of penalty rates on Sundays and public holidays; the same penalty rates big business has already negotiated away with the unions,” he said.
“While South Australia is showing signs of improvement, it still has a staggering youth unemployment rate. One in six youths aged under 25 are unemployed and 50,500 people across all ages are out of work. Mr Xenophon does not care about their future and is only looking for votes.”
Mr Penney said the NXT decision to support Labor’s Bill would kill off any positive movement in the state’s economy and make any future workplace reforms near impossible.
With Amazon on the verge of entering the Australian retail market, bricks and mortar businesses will face even great pressure from competitors which are not restricted by penalty rates. We need to level the South Australian retail playing field.
“The damage of high penalty rates is felt by workers, employers, consumers and suppliers. These are the real victims of the politically-motivated campaign against the penalty rates decision.
“Increasing penalty rates will affect South Australia’s 50,500 unemployed and 90,000 underemployed, and South Australian consumers when businesses close on Sundays and public holidays”
Business SA calls on businesses in the South Australian Electorate of Hartley to contact Mr Xenophon’s office to express their concerns about his abandonment of the South Australian business community.