PEAK retail industry body the Australian Retailers Association (ARA) has strongly condemned the Fair Work Commission (FWC) junior wage decision which risks the future of Australian retail workers after the FWC today announced that 20 year old employees will now be paid adult rates.

ARA Executive Director Russell Zimmerman said the shock decision was based on no evidence and will kill jobs for youth as well as hinder skills developments. 

"This decision is inconsistent with previous FWC decisions, making it obvious this was a narrow review. Previous FWC decisions have held that major changes like this require expert evidence.

“It is extremely concerning to business in Australia that the only substantial decisions coming out of the 2012 Review resulted in increased conditions for employees and increased costs for employers. 

“The ARA calls on the new government and Employment Minister Abetz to do everything in his power to halt this increase and fight against the already promised claims from the union movement to move on under 20 year old pay rates. 

“The former government should be ashamed at the dishonest approach it took to this case – they provided the FWC with deliberately misleading information and supported a flimsy case when they took the polar opposite approach to the ARA’s application to allow some relief on Sunday penalty rates. 

“This junior wage increase will severely hit retailers financially, as well as change the face of employment for 20 year olds. 

“We know that youth unemployment is at its highest level in 11 years, and with the unions case to remove junior wage rates now successful, young Australians are going to really struggle to find employment and support themselves through their studies. 

“What retailer is going to employ a young Australian without any experience in the industry, when they can employ someone a few years older with more experience for exactly the same wage? This decision will prove detrimental to both employers and employees.

“Retailers and young Australians have been reliant on pay rates to enable retail to bring on low-skilled young staff and increase their skill levels. Young employees will now find it extremely difficult to find vital training and development opportunities.

“The industry has already been hit with increases to Sunday wages as we transition to 100 percent on Sundays and 50 percent on Saturdays, and if the adult rate is taken down to 18 and 19 year olds then we will see an even larger percentage of youth unemployed.

“The inflexibility in wage costs has already forced some retailers to become unviable or not open on peak trading days such as Sunday.

“Weaker labour market conditions also argue for moderation in the Annual Minimum Wage Review, particularly against the backdrop of a record low youth participation rate and an almost three percent contraction in youth employment in the past year. Young people are done a disservice if our system of wage regulation locks them out of employment opportunities.

“The retail sector is struggling, and although the industry is just starting to show signs of improvement in terms of retail employment, this is certainly a blow to employment confidence,” Mr Zimmerman said.

Visit http://www.fwc.gov.au/decisionssigned/html/2014FWCFB1846.htm to view the decision

s $258 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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VICTORIA's announcement of $1.2 million in funding for the upgrade of the Nobbies Centre at Phillip Island.
 
“VTIC welcomes the State Government making tourism a priority and encourages further government investment in tourism infrastructure right across the state,” says Victoria Tourism Industry Council (VTIC) Chief Executive, Dianne Smith, who was at the launch today.
 
“It’s vital that our iconic tourism experiences are regularly refreshed. Rejuvenation of the Nobbies Centre and better activation of the surrounding boat tours will reinforce Phillip Island as one of Victoria's nature-based tourism jewels.”
 
This government funding underpins additional investment of a combined $3 million contributed by local tour operator, Wildlife Coast Cruises, and Phillip Island Nature Parks.
 
“We applaud the State Government and the private sector for working together for the benefit of visitors and the regional economy,” says Ms Smith.
 
Phillip Island relies hugely on the tourism industry, as it contributed $619 million to the economy (39 per cent of gross regional product) and employed approximately 5,000 people (33.5 per cent of regional employment) in 2011-12.
 
Phillip Island Nature Park is the biggest employer on the island.
 
Phillip Island is a popular destination for both domestic and international visitors to Victoria. The nature-based product (including the renowned penguin parade) is particularly popular with international visitors including those from China, which is one of the fastest growing tourism markets for Victoria.

www.vtic.com.au

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PEAK retail industry body the Australian Retailers Association (ARA) welcomed the latest Ernst and Young report which confirmed Government employment data and highlighted the fact that the retail sector will lead jobs growth through to 2020. 

ARA Executive Director Russell Zimmerman said the Ernst and Young report also indicated that if the Government doesn’t remove obstructions such as Low Value Threshold (LVT) GST in relation to goods under $1000, this predicted jobs growth and overall jobs growth in the economy will be put at risk.. 

“There are several significant cost factors that have blocked jobs growth in recent years. Clearly, as indicated in this report, overseas businesses are getting away with paying no tax while Australian retailers must pay tax – and this is costing us Australian jobs. This significant cost to employment will continue unless urgently addressed. 

“The ARA represents both large and small independent retailers, including Australian online retailers, and our members see the impacts of overseas businesses avoiding taxes every day.

"Ernst and Young estimates more than 93,000 jobs have already been foregone to the growth of online retailing, and by 2020, more than 142,000 traditional retail jobs will have been lost. It is time to act to ensure these jobs can be transitioned within Australia.

“Australia can also not afford the $6 billion in lost GST revenue to the states between now and 2020 as a result of the LVT staying at $1000. A loss of $6 billion in GST revenue to fund our much needed community and emergency services is simply unacceptable. 

“The Ernst and Young report also shows some 87,990 jobs being generated over the next four years. 

"In states such as Victoria where there have been significant manufacturing job losses, we know firsthand that retailers are creating many valuable jobs such as support roles in the retail sector to make up for the employment slack. 

“The ARA continues to meet with the Federal Government and State Treasurers on reducing the LVT GST and is seeking meetings with new State Treasurers including the new Western Australian Treasurer to finalise its reduction. 

“Based on the Ernst and Young forecasts, when the LVT GST is abolished, between $10 billion and $16.8 billion will move back to Australian online and traditional retailers from overseas businesses. This is simply too important to ignore,” Mr Zimmerman said. 

ARA Executive Director Russell Zimmerman is a key note speaker at next week’s red tape reduction forum in Canberra.

As additional measures to help the retail sector, Mr Zimmerman will be advocating the need to remove red tape, address market dominance issues through efficient delivery and competition policy along with the need to have sensible workplace penalty rates put in place through the Fair Work Commission process.

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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