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Restaurants and Cafes to have their own Modern Award

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In a move not taken with respect to any other industry, Minister for Employment and Workplace Relations, Julia Gillard, has amended her award modernisation request to require the Australian Industrial Relations Commission to publish a separate modern award for restaurants and cafés.

In making this requested, Minister Gillard stated that she had been provided with material supporting claims that the proposed modern Hospitality Industry (General) Award 2010 would result in significant labour cost increases for restaurants and cafés which operate under lower profit margins and different peak operating times to other businesses in the hospitality industry such as hotels and gaming venues.

In 2006-2007, labour costs for cafés and restaurants comprised 36.4% of all expenses.  The average profit margin was 3.8% for cafés and restaurants compared with 12.7% for all industries.

MST will communicate the terms of the new modern award for restaurants and cafés when published by the Australian Industrial Relations Commission.  Businesses with questions in the meantime should contact a member of the MST Hospitality Group on 03 8540 0200.

Author: Katrina Sweatman