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The commitment comes after employer groups made a move to strip penalty rates from the Banking, Finance and Insurance (BFI) Award – the award that establishes our minimum employment terms and conditions – in favour of an ‘exemption rate’ clause that would apply to employees earning over a certain amount. 

If approved by the Fair Work Commission (FWC), this clause would allow employers to pay employees an annualised salary (a flat rate), which would replace things like penalty rates, allowances, overtime and annual leave loading. 

Labor’s promise to enshrine penalty rates into law would stop this from happening. 

FSU member Sandy Boudette said penalty rates had been a crucial factor in providing for her family over many years.  

“Raising a family as a single mum, I was able to support them through their education, keep a roof over their head, food on the table – and much of my income was propped up by my penalty rates. 

“My colleagues are now facing a similar situation where they rely heavily on their penalty rates to make ends meet. 

“They’re working weekends and evenings to get that extra money to provide a comfortable life for their kids and themselves. 

“The Labor Government’s commitment to enshrine penalty rates into law will mean so much, namely that our penalty rates will be safe from future attacks. 

“It will give workers that extra peace of mind that we can still rely on our penalty rates to keep us financially more secure.” 

Not a done deal  

While we welcome Labor’s commitment, penalty rates won’t be protected unless the government is re-elected.  

The submission made by employer groups to the FWC to scrap our penalty rates is the clearest sign yet that banks and big business want to water down our hard-won rights. 

We also know that Peter Dutton supports big business. The last time Peter Dutton and the LNP were in power, they went after penalty rates for hospitality and retail workers. And in the last parliament, Peter Dutton voted eight times against protecting workers’ penalty rates. 

The upcoming federal election is our opportunity to enshrine penalty rates into law. Find out more about what’s at stake for finance workers this federal election here.