Labour market economic—policy commentary Essay Example
The Fair Work Commission decision to cut pay rate for both casual and permanent employees working in the hospitality and retail sector is witnessing mixed reactions. The decision to reduce pay rates to 150 percent for both the hospitality and retail sector is being welcomed by retailers. The retailers are of the view that it will help them to employ more people during Sundays when maximum people prefer to shop. It will also help certain establishments to open in Sunday which are shut at the moment due to the cost associated with employees pay. The decision will help the retail sector and would create a positive impact on the overall market. This would help the sector to ensure lower cost which would thereby help the market to grow and flourish.
The employees on the other hand feel that the decision is unfair as it will have an impact on their earning. They are of the opinion that they prefer to work on holidays due to higher pay and reducing the pay is injustice on them. This will have a negative impact on their earning and would make certain section of the society away from being properly compensated. The employees feel that the casual employees will be impacted heavily as they rely on daily earnings and reducing the pay will have a negative impact on their overall earning. This could also lead towards people moving to other sectors which would thereby decrease the supply of employees and have a negative impact on the entire industry.
Apart from it the decision is seen to be backed by the political party in power but other political parties are against the campaign. They feel that the government is acting unfair and is biased against the poor community. Imposing such a decision would lead towards huge financial loss and would have an impact on the overall people looking to work. The opposition parties are looking towards opposing the same and are looking for a dialogue so that better decisions can be taken and wants the government to roll back their decision.
Some proponents are of the view that the decision has both directives. They feel that reducing pay rates on Sundays and holidays will reduce payment for the employees but it would also provide an incentive where the employees can look forward towards not working. This will provide an opportunity where they can spend valuable time with their families and friends which would thereby increase output. The overall decision will have a fair impact and would bring about the transformation which the society needs.
The decision by the government is thereby witnessing mixed reactions from different sections of the society and the imperative it will have in real sense needs to be watched over a period of time.
More Important Things