Small steps towards big benefits for retail employment - ARA

WITH the changes to Sunday penalty rates due to take effect this weekend, the Australian Retailers Association (ARA) is conscious the minimum wage increase will counteract the impact of the first stage reduction in penalty rates.

ARA Executive Director, Russell Zimmerman, said while the first stage of penalty rates reduction will commence this weekend there will be little benefit to retailers with the recent minimum wage increase.

“This first stage of the penalty rates transition will only see a five percent reduction in Sunday penalty rates, meaning retailers and the wider industry will not be able to see the immediate benefits to employment and growth within the sector,” Mr Zimmerman said.

“The four-stage transitional arrangement is a much slower approach to what the industry hoped for, and now with the high increase to minimum wage taking affect on July 1, retailers won’t be able to reap the benefits from the penalty rate cuts for a number of years.”

The ARA was hoping for a faster transitional arrangement, allowing retailers to increase trading hours, ramp up employment and offer additional hours to employees.

“Retail employees are the heart and soul of the industry, and we need to ensure both employers and employees are being looked after,” Mr Zimmerman said.

“With the current pressures already affecting the retail market, retailers need to invest in their customer service and staff.”

Mr Zimmerman said the unions have been broadcasting outlandish statements about the penalty rate reduction and they should instead get behind the reduction to improve employment across the nation.

“Retail is the largest private employer in Australia and we want to ensure employees working within the sector are supported, and to do that we must first address the issues their employers are facing in the current retail environment.”

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 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 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

ends