AS the debate on penalty rates for hospitality workers continues, one Dubbo owner has weighed in to say that high rates affect her business.
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While another business owner declined to comment, Artology + café owner Kylie Horder said she does not open on Sundays and public holidays because of the costs.
“The wages are extensive, and for Dubbo where there’s not as many people around I don’t think it’s worth it for the time,” she said.
The federal government plans to complete the latest review of the Fair Work Act in May, which restaurant owners such as celebrity chef George Calombaris have said include “uneconomical” penalty rates.
Ms Horder stressed that while she was strictly a café with minimal staff, it still influenced the running of her business just as much.
“I don’t think people should have to work for peanuts but I absolutely agree that having high rates could result in job losses or closures,” she said.
“I open on Saturdays with extra wages for my staff and as a new business I’m already not making anything off it, being boss, but I want to offer customers somewhere to go because they’re loyal.”
Eating in Australia does not utilise a tipping system like in the United States, but from restaurateurs like Mr Calombaris to small business owners like Ms Horder all believe it is an increasingly expensive exercise.
“Costs count for everything, and you pay for the labour because we have the highest wages in the world, so you have to expect it,” she said.
“I do tip for good service when I go out, but maybe we should start doing that more if rates didn’t rise.”
Workplace Relations minister Bill Shorten denied Mr Calombaris’ claims that high penalty rates “greatly exceeded the opportunity for profit”.
“If George wants to bargain with his workers and improve productivity and be even more competitive, then the tools exist in our present workplace system,” he said.
“Penalty rates compensate wait staff and others who have to work late nights, public holidays and weekends while everyone else gets to spend this time with family and friends.”
Minimum wage for a full-time grade five cook under the NSW Restaurants, etc, Employees (State) Award is $19.71 per hour.
Penalty loading varies for those beginning employment before and after the recent switch in agreements, but those new to the agreement will receive 60 per cent loading from July 1.