Sunday penalty rates for hairdressers would be reduced from double time to time-and-a-half under an Australian Industry Group application for a change to the award on behalf of Hair & Beauty Australia.
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Ai Group chief executive Innes Willox said it would file proposed award variations in the hair and beauty penalty rates case on Friday.
It will propose the Sunday rate be reduced from 200 per cent to 150 per cent and public holiday rates be changed from 250 per cent to 225 per cent.
"In its major penalty rates decision in February this year, the Fair Work Commission expressed its intention to review weekend penalty rates in the Hair and Beauty Industry Award 2010," Mr Willox said.
"The commission highlighted that the hair and beauty industry has some similar characteristics to the retail and hospitality industries in which Sunday and public holiday penalties were adjusted.
"Ai Group, on behalf of HABA, will propose the following adjustments to Sunday and public holiday penalty rates in the Hair and Beauty Industry Award 2010."
Hairdressers have formed a new union to fight the bid to reduce their penalty rates.
Newcastle hairdresser Melanie Coombes is among those who are preparing to oppose the decision, saying they already get "paid peanuts".
The hairdresser of nine years has said she is "absolutely furious" at the threat to weekend penalty rates.