Do You Agree with Holiday Surcharge?

CrypticM on 01/01/2021 - 13:31
Last edited 01/01/2021 - 13:50 by 1 other user

Happy New Year folks…

Just want to get some opinions. Recently visited some malls on boxing day(to be specific DFO, Brisbane). obviously huge rush, literally every store is crowded, which may be understandable.

In the midst of this chaos, I saw multiple food stalls charging 20% holiday surcharge on everything. That's literally $10.50 sub costs at $13.50. I am really not sure, they pass on this benefit to the employees. (More than what they should legally get on public holidays, which is part of job contract).

Personally, I feel it is not justifiable considering 20% which is huge in my opinion, and some franchisee are charging and some not. (unless they pass on this extra benefit to employees).

What are your thoughts?

Food & Grocery

Comments

  • Soluble on 01/01/2021 - 13:34
    +12

    Wages are between 2 and 2.75 times the standard rate. So I'd say yes it is justified.

    • AustriaBargain on 01/01/2021 - 17:48

      Is it necessary though? Why don't many other stores do it. Subway could raise their subs by one cent all year round to offset the holiday pay, or they could just use their massive profits to offset holiday pay. Or they could just close down on public holidays, but when you see the line of hungry people on holidays you kinda get the impression that any popular business would never want to miss out on that kind of business no matter the cost. Unless it was an independent business that kinda wanted a day off for themselves and their employees anyway, which is rather the point of public holidays isn't it?

      • Diji on 02/01/2021 - 16:29
        +1

        use their massive profits

        The great promise of industrialisation, of automation: skyrocketing productivity, workers getting paid more and working less!

        The reality: bigger executive bonuses, yum yum!

  • ozhunter on 01/01/2021 - 13:41
    +3

    ( More than what they should legally get on public holidays, which is part of job contract).

    And that's how they help pay the employee's penalty rates.

  • DrRalph on 01/01/2021 - 13:50
    +7

    There's no need to pay it. Go else where. Businesses will soon learn.

  • p1 ama on 01/01/2021 - 14:00
    +21

    Personally, I feel it is not justifiable considering 20% which is huge in my opinion

    Nobody gives a rat's ass how anybody feels about pricing - it's an economic transaction. Market sets prices. You don't like it, you don't buy. Enough people don't buy, they will lower prices.

    I've never understood the idea of pricing being "justified" - there's no morality to pricing. Is Hermes "justified" to charge whatever they do for their handbags, is KFC "justified" to charge whatever they do for their chicken…etc.?

      • brendanm on 01/01/2021 - 14:10
        +6

        Irony.

      • p1 ama on 01/01/2021 - 14:33
        +7

        You asked silly question, I pointed it out, seems like you got offended ;)

        What do you mean by pricing being "justified"? The justification for pricing is sales and profits, not how CrypticM on OzB "feels".

      • slknv on 01/01/2021 - 16:17

        you care about rats ass size for your judgement

        Username checks out.

    • dizzle on 01/01/2021 - 14:14
      +1

      Enough people don't buy, they will lower prices.

      I agree with you, but it's more likely they would close on Public Holidays.

      There are two ways to look at it. They either need to be making money or they need to be making goodwill. Ie if staying open means that more customers think of them or more customers visit when not on public holidays, then it may be worth not making money.

  • SF3 on 01/01/2021 - 14:01

    I think OP missed the recent memos 1, 2

    • CrypticM on 01/01/2021 - 14:03
      -3

      Oops missed.

  • big1964 on 01/01/2021 - 14:33

    I work in retail business is usually up 20 % on public holidays because people are not at work they tend to go out.
    Having said that the business I work for have minimum staff and minimum casuals as they get paid more than the full and part timers a lot of people work and rely on the extra money on public holidays.

    The whole IDR system needs to be looked at and reviewed every few years as circumstances change the big multi corporations should be able to afford paying penalty rates it’s the small shops restaurants etc would struggle maybe just time and half on public holidays would be a better option than what it is now depending what state you live in, can’t see the pollies agreeing to anything though.

    • dizzle on 01/01/2021 - 16:52

      A problem with that is that legally (at least in retail) they can't force you to work a public holiday (I know it doesn't always work out like that). So it becomes a balance of what an employee is willing to accept for their time. As well as that, a permanent employee generally gets paid anyway, so why would they work for only 50% more? To make it worthwhile they get paid for the day + whatever hours they work - double time. and casual loading means they would get paid extra.

      If an employer doesn't pay enough, they close down for the day anyway because staff aren't willing to work it.

  • tabz on 01/01/2021 - 14:35

    Do You Agree with Holiday Surcharge?

    Yep

  • oscargamer on 01/01/2021 - 14:44
    +4

    OP - you said "That's literally $10.50 sub costs at $13.50."

    That is not right………………. 1.2 x 10.50 = $12.60 - Did you sneak in a New Years cookie ?

  • Drakesy on 01/01/2021 - 15:47
    +2

    It's a bit of a strange one.
    Yes wages are 2-2.5x the normal wages, but same goes for those working retail and they don't charge a public holiday fee.

    However as hospitality is a labour intensive industry i feel it is necessary, else the business wouldn't bother opening on public holidays as the labour cost would be too exorbitant. I know of a fair few cafe's where it's touch and go on public holidays because of this.

  • tsunamisurfer on 01/01/2021 - 16:23
    -7

    In retail and hospitality there should be no penalty rates whatsoever.

    Their normal hours of operation are virtually every day.

    I do not support the surcharge and definitely not the penalty rates.

    • raptormesh on 01/01/2021 - 16:30

      They will then struggle to fill shifts during holidays as it's usually really hectic and stressful.

    • dizzle on 01/01/2021 - 17:32
      +1

      I am assuming you are either self employed or an employer.

      Whether it's a 7 day a week operation or not, people deserve compensation for working hours that other people won't or don't want to. Really no one wants to work on Sundays unless they have to. Public holidays are traditionally so that family can spend special days together (as well as religious reasons), and working those days is still a sacrifice for families.

      If it's a case of they knew the job was 7 days when they signed up - They also knew they would get compensation for those days. You could say the same for mining/oil rigs and many other industries - Why get paid extra for being away from their families for 3 months?

      • tsunamisurfer on 01/01/2021 - 18:15
        -1

        I have no problem with paying workers more on those days, but let the market decide, don't make it law.

        If there are no workers prepared to work for minimum then let the employer and prospective workers negotiate.

        The topic of family time is just noise, if they chose to work these industries they already knew family time was to be sacrificed.

        I believe more people are willing to work for minimum on weekends and holidays than not.

        • dizzle on 01/01/2021 - 20:42

          Having worked in retail for a long time, the only reason people want to work weekends is penalty rates or extra commission.

          There is always the exception, but from experience even those students who study Mon-Fri are more likely to put in for government assistance if there are no penalty rates for Sundays and PH. Even with penalty rates I know plenty of casuals that don't want to work weekends.

  • raptormesh on 01/01/2021 - 16:29

    As long as it is not vital services and goods, it's fair game. You can always not purchase them.

  • Donaldhump on 01/01/2021 - 16:49

    Of course they pass on the benefits, it’s called penalty rates

  • brad1-8tsi on 01/01/2021 - 16:58

    A lot of places are trying to recoup losses incurred over the past 10 months. I don't like it but I don't blame them.

    If you think something is too expensive then don't buy it.

  • dasher86 on 01/01/2021 - 18:42
    +3

    I'm in two minds about surcharges.

    Even though they pay penalty rates, there would also most likely be additional sales on these days that they would otherwise not get.
    Overall it is a balance act.

    In the end the consumer is paying for it either by higher prices all the time to cover penalty rates, or a surcharge on the day.

  • yellowfever on 01/01/2021 - 19:47
    +1

    You want to enjoy eating lunch made by someone on a public holiday, you pay the surcharge. It's a fair transaction.

    You can otherwise cook for yourself.

  • pencilman on 01/01/2021 - 20:15
    +5

    If a business wants to charge a holiday surcharge they can, but they must make it very clear to the diner at time of ordering or be clearly displayed in the store.

    I had an unpleasant 20% holiday surcharge levied on a seafood meal recently, and until paying the bill was not made aware of the surcharge.
    If I had known, I would not have had an expensive seafood meal that day.

  • xylarr on 02/01/2021 - 10:58

    I actually thought a percentage surcharge was illegal. The policy idea is that a customer cannot easily work out how much something is going to cost without doing "complicated" maths.
    The allowed solutions were (are) a fixed dollar surcharge - for example, at a restaurant you might have a $5 surcharge per head; or print out different menus with updated pricing.

  • OzHunterNSW on 02/01/2021 - 11:40
    -1

    That's complete BS and the only way to deal with it is to not shop there.

    What audacity

  • bloopzorm9 on 26/01/2021 - 16:00

    I've never quite understood the surcharge. I get that the pay-rate for the day is double, if not more, but stores usually roster on less staff and have increased business.
    If it keeps people in jobs, then sure, whatever. If it's just extra money for the millionaire execs, then its a bit of a rort.

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