Small retail business owners forced to work over Easter

THE Australian Retailers Association (ARA) is asking Australians to spare a thought for the owners of small retail stores who will be forced to work over the Easter long weekend in order to bear the brunt of prohibitive labour costs as a result of penalty rates as high as two and a half times normal pay.

ARA Executive Director, Russell Zimmerman, said that should mum and dad owners of small retail businesses choose to open during the Easter long weekend period (where laws permit), most will forfeit their holidays as they will be unable to afford the stratospheric costs of penalty rates.

“The high cost of public holiday penalty rates will see the majority of mum and dad retailers stripped of their choice to work, with most left with no option than to work themselves or simply close their doors – missing out on crucial revenue,” said Mr Zimmerman.

“While the financial windfalls of excessive penalty rates are a boon to workers, small business owners are left at a major disadvantage as the payment of out of the ordinary labour costs eat into their bottom line. If a small retailer chooses to close instead of work themselves, they will still be forced to lose money, as the Australian consumer now expects to be able to visit stores across this period.

“If penalty rates were reduced, small business owners would be able to afford to employ staff on these days, giving them the opportunity to enjoy a day off – it is well known that the owners of small businesses are often too under resourced or financed to be able to enjoy the same holiday opportunities as paid employees.”

The ARA believes retail penalty rates must be addressed to allow business to respond to customer needs, rather than having to fit their allocation of labour to an antiquated system. The ARA is currently engaged in a review of General Retail Industry Award 2010 (GRIA), with the view to reducing costs for retailers, particularly on Sundays, with the independent arbitrator, Fair Work Commission (FWC).

“In light of online retail and the effects of globalisation, we now live in a 24/7 economy. Australian lifestyles are changing, and it is important to allow physical retailers the scope to be able to keep up with this change and compete effectively against these new challenges to provide consumers with the access and convenience to shopping they expect,” Mr Zimmerman said.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s more than $293 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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