The Fair Work Commission is currently reviewing the award system across a number of sectors, and industry bodies have pushed for penalty rates to be cut.

Tasmanian Hospitality Association general manager Steve Old said Sunday penalty rates were preventing pubs, restaurants and cafes from opening.

‘‘Hospitality businesses want to be open on weekends, they want to be employing people and generating economic activity,’’ he said.

‘‘The fact is that businesses that aren’t open aren’t paying wages.

‘‘We need to be able to employ more staff, invest in skills  and be able to provide world-class service to visitors and locals alike.’’

He said the THA was conducting a survey of Tasmanian businesses to demonstrate the full impact of penalty rates on weekend and public holiday trading.

Mr Old said the current award system was outdated  and hampering the sector.

‘‘We understand that discussion around penalty rates isn’t easy for everyone, but it’s a discussion we need to have,’’ he said.

‘‘We can’t expect an industry to be essentially servicing customers 24-7 when it is based on a Monday-Friday 9-5 award system.’’

Unions Tasmania secretary Steve Walsh said penalty rates were a fair return for workers who had to sacrifice their weekends.

‘‘It shouldn’t be classed as a penalty rate – it’s an extra rate for working when everyone else is enjoying a day off,’’ he said.

‘‘We reject this notion that there’s got to be a change to penalty rates –  it’s a race-to-the-bottom argument that employers are hell-bent on pursuing.’’

Mr Walsh said it was ‘‘simplistic’’ to argue that penalty rates were stopping businesses from opening on Sundays.

‘‘An employer can choose to open or not open on a Sunday – I don’t think the penalty rate argument is the real reason why they’re not open,’’ he said.

The review will conduct hearings throughout the year.