Holiday pay rates hit wineries
Margaret River wineries paying public holiday penalty rates of $40 to $50 an hour to unskilled staff to pick up dishes are choosing not to open on New Year's Day, one of the region's busiest days.
The owners of Hay Shed Hill in Wilyabrup and Yallingup's Wills Domain have backed a call from South West Liberal MP Barry House to phase out penalty rates.
Mr House, who is President of the Legislative Council, said visitors firmly expected businesses in the tourist region to open on Sundays and public holidays, but penalty rates on those days often made it unviable.
"It's a general lament of businesses in the hospitality industry down here that penalty rates are so high for public holidays that they can't afford to open in some cases or they barely make any profit, sometimes run at a loss," he told _The West Australian _.
"To phase them out over a period of time would be the sensible way to go," he said.
Most wineries in the region will be closed today, Boxing Day, but Hay Shed Hill and Wills Domain are among the few which will also close on New Year's Day, citing little incentive to open.
Hay Shed Hill owner and winemaker Michael Kerrigan said his kitchen had run at a loss since it opened five years ago.
"The fundamental reason I can't make it a profitable part of the business is wages - no question about it," he said.
"I've got people being paid $40 an hour to pick up plates.
"We can't charge enough to get that back."
Mr Kerrigan said he did not begrudge his staff earning that much because it was expensive to live in the region but the reality was the winemaking side of the business subsidised the restaurant.
Wills Domain managing director Darren Haunold said New Year's Day was so burdened by cost, he preferred to give his staff the day off.
"A lot of our sales are alcohol and if the customers have had a big night the night before and are just going out for a nice feed, the spend per head goes down, and it really becomes quite a battle."
Mr Haunold called for WA to embrace a European and USA-style tipping culture to reward staff for excellence.
"Extra effort equalling extra reward, what a bizarre proposition," he said.
