The flawed economics of cutting penalty rates

Penalty rates for working on weekends were an important \u27sleeper\u27 issue in the recent federal election. On the surface, both Labor and the Coalition agreed the future of penalty rates would be determined by the Fair Work Commission (FWC). But that superficial consensus couldn’t hide deep differences in what the respective parties were actually hoping for. Labor explicitly urged the FWC to maintain existing penalties: double-time on Sundays, and time-and-a-half for Saturdays. Many Coalition candidates, on the other hand, endorsed a reduction in penalties – consistent with the views of business lobbyists who want lower operating costs on weekends