Small business takes massive economic hit from public holiday

Thursday 1 December, 2016

Queensland small businesses will take a $58 million hit from the creation of an Easter Sunday public holiday in 2017.

The Chamber of Commerce and Industry Queensland (CCIQ) said the retail, accommodation and hospitality sectors would be impacted most by the decision.

CCIQ State Manager Advocacy Kate Whittle said workers – who were expected to be better remunerated by the legislation – would also miss out as businesses struggled with the extra costs.

Ms Whittle said the additional penalty loadings would make it difficult for small businesses to operate across the Easter period, while others would close their doors for the entire four days.

“Businesses will be forced to either absorb the increase in wage costs or reduce staff levels and opening times to minimise their losses. These are not big businesses – they are small and family-run businesses.

“This legislation undercuts the engine room of our economy. It impedes our visitor offering, hurts employees of small business and is entirely at odds with the State Government’s emphasis on job creation,” she said.

Employees already receive penalty rates of 175-200 per cent for working Easter Sunday. By making it a public holiday, hourly wages increase by another 75 per cent in hospitality and 50 per cent in retail.

“It is often argued that businesses should add a surcharge to offset the expense of increased penalty loadings. But this is wrong for several reasons,” Ms Whittle said.

“Accommodation and retail businesses are not in a position to do that and for hospitality businesses it ignores the fact that if you increase the price of goods or services then demand for it decreases.

“It is ironic that the legislation (in the Industrial Relations Bill 2016) seeks to better remunerate employees who work on this day – but in reality it will have the opposite impact.

“CCIQ has conclusive evidence that retailers and hospitality businesses reduce overall employment hours to the direct detriment of existing and potential employees due to additional penalty loadings.”

About 25,000 employees will not receive work on Easter Sunday 2017 and a further 32,000 employees have significantly reduced hours of work offered to them, which amounts to $12 million in lost earnings.