Short reflective essay on a contemporary labour market issue Example


On introduction, this reflective essay on current policy commentary gives comments on the issues that are currently contemplating problems in the labor market. The issue of concern is the reduction of the rates imposed on the penalty as was settled on in 2017, February by the Fair Work Commission (FWC). The penalties rates are the extra pay given to workers after servicing in the overtime session (Hamermesh, 2017, pp. 38). Since these penalty rates are always set by the FWC, a recommendation has been made that the Commission reduces the Sunday penalty rates to their workers. The rates reduction is necessary for matching the charged deducted on Saturdays aiming at reducing the employee’s overall pay and attainment of maximum profit and adequate servicing and goods production. The reduction of penalty rates corresponds to the theory of economic rate which talks about the economic value of services and products being determined by the total summation of the required human labor for its production instead of its use as well as the profit achieved by the owner (Measham, 2017, pp. 40).

In the discussion, I found out that on Sundays labor is highly demanded in many organization in Australia, and mostly the quick servicing firms as well as health agencies since many public employees are off from work. Therefore goods and services are in high demand. Therefore the FWC got to realize it used large amounts to settle the penalty rates. As the economic labor theory claims, the FCW has to work towards ensuring that the total energy given is proportional to the goods and services in the firm without considering the loss to be incurred by the employees. The penalty rates are granted to employees as an extra pay over overtime session services and are almost twice the regular salary provided. Therefore, the FCW is to reduce the rates to as a way of reducing a number of hours spent by small business owners at their work, in increasing the hours dedicated to trading during public holidays and Sundays along sides increasing the ranges and rates offered to customers as well (Hamermesh, 2017, pp. 39).

Therefore, on the reduction of the penalty rates on laborers leads to more goods and services being offered to the consumer at a cheaper labor from the workers with Neglection of the use of the products and services and the profit obtained by the business’ owner. The initiative also led to more profitability to the firm as well as provision of a solution to the contemporary issues facing the labor market currently. Besides, several companies have been found to accumulate significant rates of pay as penalty rates due to work required from the workers to the customer. They include the fast food, retails, hospitality, as well as pharmaceutical organizations whose servicing and goods production, are highly demanded on Sundays and public holidays (Measham, 2017, pp. 42).

It’s a conclusion to the thoughtful commentary that the FCW reduces the penalty rates for the benefit of the organizations no that of the employees. The action will result in better servicing and goods production on Sundays and public holidays to their consumers due to increased work hours in these significant days. Working hours of small business owners are affected too by the penalty reduction that was decided by the FCW in 2017, February (Hamermesh, 2017, pp. 44).


Hamermesh, D.S. and Trejo, S.J., 2017. The demand for hours of labor: Direct evidence from California. Review of economics and statistics, 82(1), pp.38-47.

Measham, Fatima. «Swift injustice in modest penalty rates proposal.» Eureka Street 27.4 (2017): PP.40-42.