21 Apr 2016, 5:50 p.m.

A Labor government would accept the decision of the Fair Work Commission on Sunday penalty rates, even if the commission opts to reduce them, Opposition Leader Bill Shorten says.

Opposition Leader Bill Shorten told 3AW's Neil Mitchell that while Sunday penalty rates should not be cut "just like that", he would accept the independent tribunal's decision on the issue.

ACTU Secretary Dave Oliver says any cut to penalty rates would be a "crippling blow" for hundreds of workers. Photo: Dominic Lorrimer

Employment Employment Michaelia Cash seized on the comments. Photo: Alex Ellinghausen

A Labor government would accept the decision of the Fair Work Commission on Sunday penalty rates, even if the commission opts to reduce them, Opposition Leader Bill Shorten says.

Mr Shorten's commentscame as reports suggested the commissioncould hand down its decisionby July, potentiallylobbing it into the middle of a knife-edge election campaign.

The concession would appear to undermineLabor's ability to usepenalty rates as a political weapon, in which the Coalition is accused of plotting to cut penalty ratesand Labor is cast as their protector.It also threatens to put Labor at odds with its key union backers, who have pledged to fight any adverse decision.

Fair Work is reviewing penalty rates forseven retail and hospitalityawards, and will evaluatedemands by employers to bring Sunday rates down to Saturday levels.Asked on Melbourne's 3AWwhether a Labor government would accept the commission's decision, Mr Shorten said: "Yes."

"I've said I'll accept the independent tribunal," he said. WhileSunday rates should not be cut "just like that", it was ultimately up to the commission, he said.

"I've got my opinion. At the end of the day though, the way minimum wages get set in this country is throughevidence, it's through the submissions of workers, their representatives and employers," Mr Shorten said.

The Coalition seized on theremarks, with Employment Minister Michaelia Cash labelling Labor's campaign on penalty rates a "sham", and asserting the ALP's position was now the same as the Coalition's.

However, Labor made a submission to the commissiondefending the current system of penalty rates, while senior members of the Coalition have openly entertained the idea of cuts. Prime Minister Malcolm Turnbull has described the Sunday allowances as a quirk of history that would inevitably be done away with. Under Tony Abbott, the government referred the matter to the Productivity Commission, which in December recommended the FWC reduce Sundaypenalty rates.

The Greens immediately sought to draw a distinction with Labor, promising to consider legislation that would get around any decision to cut penalty rates.

"The Greens will wait to see the commission's ruling, however we will not rule out legislating," employment spokesman Adam Bandt said.

As recently as last week, the country's biggest unions were calling on the government to guarantee penalty rates would go untouched. United Voice national secretary Jo-anne Schofield warned:"If the Prime Minister does not commit to retain weekend pay rates, workers will ramp up campaigning on this issue in marginal seats across the country."

On Thursday, Ms Schofield would not be drawn on Mr Shorten's comments but said the "critical issue" was that Labor openly supported penalty rates while the Coalition did not.

Australian Council of Trade Unions secretary Dave Oliver said it was "difficult to overstate the importance of penalty rates" and that any cut would be "a crippling blow" for hundreds of thousands of workers. TheACTU would "explore all its options" if the commission decidedto cut penalty rates, he said.

Polls show penalty rates are overwhelmingly popular with voters. Evenin conservative Coalition seats, support for maintaining or increasing Sunday penalty rates exceeds 70 per cent, according to recent research.

Mr Shorten compared his non-interventionstance to the government's recent abolition of the independent Road Safety Remuneration Tribunal, which published a controversial rulingon minimum pay rates for owner-driver truckies."When the government didn't like what the tribunal did, they abolished it," Mr Shorten said.

Labor sees industrial relations as one of its electoral strengths, particularly since the successful 2007 campaign against WorkChoices. With a July 2 election looming, the commission's decision may feed into a broader debateabout workers' interests and union corruption.

The benchmark turnaround time for Fair Work to hand down its decision is three months from the date of the final hearing, which would mean about the middle of July. But it could come earlier or later, Fairfax Media understands.

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The story Labor won't fight any Fair Work Commission decision to cut Sunday penalty rates: Bill Shorten first appeared on The Sydney Morning Herald.

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Labor won't fight any Fair Work Commission decision to cut Sunday penalty rates: Bill Shorten - Western Advocate