The ARA looking towards the future for retail

THE Australian Retailers Association (ARA) islooking forward to seeing further growth for small businesses and increased employment within the industry as the second stage of the penalty rate reduction will take place this weekend.

Russell Zimmerman, executive director of the ARA, said last year’s decision to reduce Sunday penalty rates under the General Retail Industry Award 2010 (GRIA) from double-time (200%) to time-and-a-half (150%) was an incredible outcome for Australian retailers as it will provide long-term benefits for employers and employees in the industry.

“This progressive decision made by the Fair Work Commission will present numerous opportunities and bring further relief for retailers, their staff and consumers,” Mr Zimmerman said.

“We certainly await the 1^st of July, as this next stage in the penalty rates transition will reduce Sunday penalties to 180 percent for permanent staff, and 185 percent for casual employees, alleviating some of the constant cost pressures retailers are facing today.”

Over the last three years, the ARA has been working with the Fair Work Commission (FWC) to adjust Sunday penalty rates as this small reduction delivers long-term employment outcomes for the retail industry and allows retailers to open their doors for longer.

“On average, the retail industry is increasing 2.76 percent year-on-year, therefore, our primary concern is for our members, especially small businesses struggling to open their stores seven days a week,” Mr Zimmerman said.

“With April’s retail figures representing a dismal 2.62 percent year-on-year sales growth – less than the average retail turnover for the last 12 months – these lower wage costs will help small retailers meet their overheads, and open their doors to consumers, stimulating the economy.”

With Labor’s recent moves to block the penalty rates reduction the ARA are concerned that some people have misunderstood the recent changes to penalty rates – or worse, are being misinformed.

“Sunday penalty rates have not been abolished, nor will they be. We have simply reduced the rate from 200 percent to 150 percent as these high penalty rates were deterring employers from giving their staff Sunday shifts, and forcing some retailers to close their doors,” Mr Zimmerman said.

“This next phase in the penalty rates reduction is a small step for the industry but a giant leap for retailers who are currently unable to open their stores on Sundays.”

As the Penalty Rates Decision was made by the FWC, an independent umpire established by the Labor Party, and then upheld by the Federal Court, the ARA trust all sides of politics, including Bill Shorten, will support this revolutionary decision for the industry.

“This now historic decision will be influential in improving overall customer satisfaction, sustaining industry growth and putting Australia’s economy back on track,” Mr Zimmerman said.

“If we don’t have trust in our Federal system and our national workplace relations tribunal - that Labor implemented - how are we ever going to move forward and grow as a country?”

 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and 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.

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