Businesses on Norfolk Island are hoping the island can establish its own wage system and do away with the recently imposed federal wage structure.
Photo: Norfolk Government
The federal system came into force on Norfolk at the beginning of July.
The Accommodation and Tourism Association's Rael Dondo said the system had plunged the island's economy into turmoil.
The Norfolk Chamber of Commerce had sought the support of a New South Wales business group to plead on its behalf before the Australian Fair Work Commission, Mr Donde said.
Norfolk businesses wanted special dispensation from the federal award system, he said.
"So a special labour award that would apply only to Norfolk Island. So that's progressing through the Fair Work Commision so in the meantime we had to implement the Australian existing award conditions and that has been terrible for the island," he said.
"Many of the permanent employees have become part time employees, hours have been reduced, services have been reduced."