The passing of the Federal Government's penalty rates bill undermines the independence of the Fair Work Commission and is a missed opportunity to create greater choice and flexibility that would lift salaries and improve job security, the Australian Retailers Association (ARA) and National Retail Association (NRA) said today.
ARA CEO Chris Rodwell said it is concerning that the Federal Government chose to intervene in the determination by an independent body by creating legislation which overrides the Fair Work Commission process.
"The bill is yet another layer of regulatory burden which creates more problems than it solves. It effectively forbids businesses and their employees from negotiating the incorporation of penalty rates into base salary, an option which could lift that salary by as much as 135%.
"This is a further reflection that Australia's industrial relations system, is not fit-for-purpose. Its rigidity undermines efforts to lift labour productivity.
"The premise on which this bill is based is a fiction. There has been no effort to abolish penalty rates. The focus has been on giving employees a choice around their salary, allowing them to opt for a higher base salary in lieu of penalty rates, and to improve job security," Mr Rodwell said.
"Time and time again during the debate of this bill there has been a complete misunderstanding of the penalty rates application before the FWC. We even saw union testimony at the August penalty rates hearing where case studies put forward were unrelated to the case, including statements of junior employees who would not be impacted, given this aspect of the application would only have applied to more senior employees.
"At the same time the Federal Government is aspiring to genuine productivity growth and reduction of red tape, the continued heavy-handed regulation of workplaces has the effect of tangling businesses, especially small retailers, in cost and compliance. It undermines efforts to improve productivity and lift living standards. It also undermines confidence in the system without improving outcomes for workers.
"We are deeply disappointed that the reasonable proposal of some parliamentarians to examine the impact of this legislation on small businesses has not occurred.
"The view that enterprise-bargaining agreements and multi-employer bargaining act as the key vehicles for improved productivity is simply impractical," he said. "It is clear that most small businesses lack the resources and the expertise to pursue bargaining outcomes as is evidenced by the poor uptake of that option," he said.
