Local businesses facing wage hike

JOLENE OGLE
Local businesses are calling for reforms in a bid to break even this Easter as they face five public holidays in a week.

Shades Cafe and Wine Bar co-owner Gareth Doran said most employers can expect to pay more than double their normal wage bill, with hourly rates starting from $42 over the coming days. “In an industry where profit margins are always tight, this tips it over the scales,” he said. “It’s a busy period in Noosa and it’s unfortunate to see many businesses view it to be more advantageous to close rather than pay the penalty rates. “This does not help our image as a tourist destination.” The Chamber of Commerce and Industry QLD (CCIQ) predict the high wages will force many businesses to close rather than wear the cost, with tourist towns wearing the brunt. CCIQ general manager of advocacy Nick Behrens said Noosa is a prime example where two-thirds of businesses in Hastings Street and Gympie Terrace chose to close over the Easter weekend last year. Maisie’s Seafood and Steakhouse head chef Kelly Largaider said the cost of public holidays causes a vicious cycle that will impact the local tourism industry. “If businesses start to close, then tourists won’t come and if tourists don’t come, more businesses will close,” she said. Ms Largaider said it was time for reforms to modernise penalty rate laws. “The workplace has changed since penalty rates were brought in in 1919,” Mr Largaider said. “Businesses now open on Sundays and public holidays. The Government needs to update the laws or give businesses a tax break when they stay open on public holidays.” Mr Behrens agrees saying “we must change with the times” and “accept we are now a 24/7 society”. “Time and again we have suggested the first five shifts of an employee’s week be penalty rate-free before the additional rates kick in from six shifts onwards,” he said. Mr Behrens said this system would give employers greater flexibility to manage their rosters while also ensuring workers are rewarded for working a longer week. Mr Behrens said the contemporary idea of the working week is far different to that of the time when penalty rates were introduced and with a perfect storm looming over Easter, the discussion must be had.