Penalties mean working for nada

Business is demanding the Federal Government revamp penalty rate laws, with restaurants and retail owners paying more than double time to workers over Easter.

The Australian Chamber of Commerce and Industry said many business owners would work for nothing or lose money if they opened.

One facing a hit today is Nola Bliss, who with husband Richard recently reopened the York Palace Hotel in the Avon Valley town.

The hotel's bistro usually opens Friday through Sunday but with so many visitors expected in town for Easter Monday, Mrs Bliss said it was important to open today.

But that means Alice, who works at the Palace, will get double time and a half, or almost $45 an hour.

Mrs Bliss said she would get no financial benefit from opening.

"I've got 10 to 11 people, young people, who want to work and are enthusiastic and are doing a great job but that doesn't help if it's just too expensive to open," she said. "It means my husband and I are going to be working for basically nothing."

Mrs Bliss said she believed there should be special treatment for regional areas where businesses had to work hard to bring people to town.

Chamber of Commerce chief executive Kate Carnell said penalty rates meant workers, business owners and customers were hurt. Just 13 per cent of hotel operators expect to turn a profit on Easter Sunday and Monday and more than half expect a loss.

"Customers lose because the services they want are harder to access, staff lose because they don't get the hours many are seeking at work and business proprietors lose because they get little benefit from the holiday traffic," Ms Carnell said.

"Most of us would be aghast at having to pay 2½ times the regular cost for a cup of coffee on a public holiday, yet the cafes are forced to do just that in paying their staff."