Casual penalty rate decision leaves retailers with empty stockings this Christmas

THE Australian Retailers Association (ARA) is crushed with the Fair Work Commission’s (FWC) decision to increase penalty rates for over 350,000 casual retail workers on Saturdays and after 6pm on weekdays, as it claims this increase will create more strain for retailers already working in such an overwrought market.

Russell Zimmerman, executive director of the ARA, said this decision is a grave outcome for Australian retail, as 135,000 independent retailers currently operate under the General Industry Retail Award (GRIA).

“With this decision taking place from November 1 this year, we can be certain retailers will have to re-think their Christmas trading strategy,” Mr Zimmerman said.

“Christmas trade is the biggest trading season for retailers, and these increases to casual workers pay on Saturday’s and weekday evenings will certainly impact on trading hours around the country.”

Although the ARA welcomed the FWC’s decision to reduce Sunday penalty rates for full-time and casual shiftworkers, the ARA is concerned these inconsistent Fair Work decisions bring more complexities to the GRIA.

“The Modern Award system is already complex, and we are concerned the Australian Labor Party’s selective acceptance of Fair Work’s employment decisions will continue to jeopardise the Australian retail industry,” Mr Zimmerman said.

“We are disappointed with the casual employment decision, and would like to remind the Labor Party that the Fair Work Commission was established for a reason, and that they should not try to overturn an independent body when they don’t agree with their decisions.”

Due to the inflexibility around part time employment and the reduced number of Enterprise Bargaining  Agreements (EBAs) the ARA believes this disastrous decision will see many retailers out of pocket at their busiest time of year.

“Retailers usually thrive during the Christmas period, however this year, I’m concerned many retailers will bear the brunt of an unjust and detrimental decision,” Mr Zimmerman said.

“Casual staff are the lifeblood of the retail industry, and instead of seeing our retailers shine this Christmas, we will see them undertake more pressure and have to make serious decisions about their Christmas trade.”

 

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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