THE government and unions have applauded a decision by the national workplace relations tribunal not to lower Sunday penalty rates for retail, fast food and hospitality workers.
But the decision has raised the ire of business groups.
The groups, including the National Retail Association, the Queensland Chamber of Commerce and Industry and Ai Group, sought to halve the penalty rates paid to employees on Sundays and remove the 25 per cent penalty rate for evening work.
The Fair Work Commission (FWC) on Monday handed down its decision saying "a case had not been made" to change the penalty rates, because the modern award recognised the "disabilities of working at unsociable times".
It also said the industries already had relatively low pay rates.
The decision means penalty rates would be safeguarded for workers in the fast food, food and beverage, general retail, hair and beauty and general hospitality industries until the next review.
ACTU president Ged Kearney said it was a major win for low-paid workers, to compensate them for working irregular hours.
"Working late nights or weekends is still a sacrifice for workers, particularly those with families, and penalty rates must remain to reflect this," she said in a statement.
Ms Kearney said the removal of penalty rates would have meant pay cuts for half a million low-paid workers.
Workplace Relations Minister Bill Shorten said the government welcomed the decision.
"We believe that adequate compensation for unsociable hours at work is reasonable," he said in a statement.
Monday's decision follows a proposal by Prime Minister Julia Gillard last week to enshrine worker penalty rates into workplace law.
The proposal was slammed by business groups, including the Australian Retailers Association.
The association's executive director, Russell Zimmerman, said the FWC decision and the government's proposal would "uphold archaic economic conditions".
"Along with the prime minister's announcement last week, this process now amounts to a one-sided barracking for the trade union movement on penalty rates."
Mr Zimmerman said the FWC decision would affect retailers already struggling in a tough trading environment.
"We are living in an era where we have to operate in a 24-hour environment, and all we were looking for is to make Sundays more competitive."
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