Reduction in penalty rates crucial to stimulating business and jobs growth

PEAK retail industry body the Australian Retailers Association (ARA) said reducing penalty rates is a crucial step in creating higher levels of employment for Australians.

ARA Executive Director Russell Zimmerman said the Australian Chamber of Commerce and Industry’s (ACCI) recent comments regarding the detrimental effects of penalty rates on both employers and employees were 100 percent warranted, despite union criticism about ACCI supposedly ‘misleading’ the community.

“It’s all over the news at the moment – Australia’s unemployment rate has soared to its highest level in 12 years.

“There’s no denying the fact that retailers would employ more staff if they did not have to pay penalty rates. SME retailers in regional areas in particular, who do not currently open on Sundays, would definitely consider their options if penalties were reduced.

“Retail staff in regional areas do not usually have the opportunity to work on Sundays and a lower penalty rate would mean these retail employees would have the opportunity to work extra hours. We cannot ignore the major benefits for all involved, including additional hours retailers will be able operate, if penalties are reduced.

“A number of larger retail members have advised the ARA that whenever their stores are not ‘forced’ to open under their lease requirement, they close the store completely due to severe double-time penalty rates. If these stores could afford to be open, they would in turn employ a number of staff on a Sunday and this would not only improve business in country and regional stores but increase employees discretionary spending.

“Seeking to be the voice of reason, the ARA is not calling for penalty rates to be abolished but there is a strong need to get the balance right so that retailers can operate competitively on weekends and offer increased employment opportunities,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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