Unions slam new report on penalty rates

Unions say a new report by the Productivity Commission confirms their concern that an inquiry into the workplace relations system had been set up by the Abbott government to attack penalty rates.

The commission report recommended Sunday penalty rates should be reduced to Saturday rates for the hospitality, entertainment, retail, restaurants and cafe sectors.

"This is a pay cut for the thousands of Australians who work in restaurants, cafes and shops around the country," ACTU secretary Dave Oliver told reporters in Canberra.