Greg Jericho
Chief Economist

Debate host Laura Jayes has asked about penalty rates and why the ALP will not let the Productivity Commission look at those.

The thing is that penalty rates do not affect productivity, they affect profits.

Productivity is how much you produce with the hours you work and the tools you use.

How much you are paid to do that does not affect productivity. If you are paid less to do your job on a Sunday or public holiday that does not improve productivity – it just cuts wages and increases profits