Retail penalty rates debate nears conclusion - ARA

THE FINAL week of hearings in the Fair Work Commission (FWC) has kicked off today with the Australian Retailers Association (ARA) confident the evidence it has put forward in the case demonstrates that current Sunday penalty rates under the General Retail Industry Award 2010 (GRIA) are costing jobs and impeding growth in the retail sector.

The ARA and the retail industry has been engaged in a review of GRIA for the past 18 months, with the view to reducing the costs for retailers who trade on Sundays, proposing a reduction in Sunday penalties from the current double time (100 percent) to time and half (50 percent).

ARA Executive Director, Russell Zimmerman, says a reduction in Sunday penalty rates will have a number of benefits for the community and economy, in addition to cost reductions for retail businesses.

“Should Sunday penalties be cut, retailers will be able to afford to employ more staff for more hours. With youth unemployment rates at an all time high, and retail being one of Australia’s largest private employers, this change will enable businesses to employ more staff, helping to reduce unemployment levels, particularly in the sector of under 25s,” said Mr Zimmerman.

“Retail employees cite shortage of staff as one of the most significant negative aspects of Sunday work - a direct consequence of the high penalty rates in place under the current GRIA. A reduction in Sunday penalty rates will allow retail employers to be able to provide more labour hours to retail employees who would like to work on Sundays.

“More staff employed for further hours will lead to more money in the pockets of these workers, increasing their spending power and fostering a stronger economy overall.”

Independent research commissioned by the retail industry demonstrates retail employees are prepared to work on Sundays for a lower penalty rate, with most retail workers indicating that their willingness to work on Sundays changes very little whether they are paid at double time or time and a half.

In December, the Productivity Commission’s (PC) final report on Workplace Relations Framework recommended that given changes to Australian lifestyles, Sunday rates should be brought into line with those of Saturday penalty rates - 25 percent, or time and a quarter.

"It is important to note that the ARA does not advocate for the removal of penalty rates, simply a reduction of the current Sunday penalty rate of double time and a half.

“The ARA and our legal teams believe the FWC is in the best position to make a decision on this important issue for the retail industry, and we are hopeful for a successful outcome,” said Mr Zimmerman.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $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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