Bosses welcome penalty rates deal

The agreement announced yesterday between Business SA and the state's Shop, Distributive & Allied Employees Association would see penalty rates abolished on Saturdays and week nights, and reduced for Sundays and public holidays.

The deal, which is voluntary for employers and employees, would also guarantee workers a 3 per cent annual pay rise and the right to refuse work on a Sunday. Full-time employees would also get a higher base rate (equal to an extra $60 or so a week) and the right to take every second weekend off.

Tasmanian chamber of Commerce and Industry chief executive Michael Bailey mirrored the enthusiasm shown by Federal Industry Minister Ian Macfarlane, Employment Minister Eric Abetz and state Treasurer Peter Gutwein, claiming that the "chamber movement across the nation would be patting South Australia on the back".

"This is not about taking money from employees - it is about establishing a sensible pay structure (that) allows businesses to stay open and offer more employment," Mr Bailey said.

"It is a sensible outcome, and we've spoken with a number of retail members who are encouraged by the deal."

Tasmanian SDA state secretary Paul Griffin was more cautious in his support, but acknowledged the flexibility the deal would give employees.

"Yes, there's money lost [for employees] with the penalty rates, but there is a lot on the other side of the scale as well," Mr Griffin said.

Launceston True Brew cafe owner Jan van Asch said current penalty rates meant she could not afford to open nights, Sundays or public holidays.

"I'd love to employ more staff so we could open at night and all weekend, but there is no way we could, " she said.

George Street cafe owner Amelia Padgett said while the deal would have little effect on how she ran her business, providing better conditions for workers extended past finances.

"Good conditions also mean giving employees trust, responsibility, freedom and space," she said.