The Australian Retailers Association (ARA) and National Retail Association (NRA) say the Federal Government's new penalty rates bill strips away genuine wage flexibility for workers and is built on a false premise.
ARA CEO Chris Rodwell said the Federal Government's proposed bill effectively forbids businesses and their employees from negotiating the incorporation of penalty rates into base salary, a further reflection that Australia's 'industrial relations' is not fit-for-purpose and incapable of lifting 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.
"The Federal Government's 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.
"To paraphrase the words of former Minister Tony Burke in September 2023, retailers need a system that is easy to understand and use, stable and sustainable. This legislation takes us further away from that objective.
"Further, the view that enterprise-bargaining agreements or for, small business, the multi-employer bargaining process should be the key vehicle for changes is simply impractical," he said.
The ARA's application to the independent umpire also included many other workplace flexibility options including the potential for some employees to lock in a 4-day working week.
"Retailers are committed to ensuring work arrangements are modern and flexible to support employees and their own business needs," he said.
"We are considering the potential impact of the legislation but remain deeply concerned that it cancels out a choice for both employees and employers to come to a reasonable, mutually beneficial work arrangement. In the case of proposed salary absorption, the value of that on average for retail managers who opt in would be enhanced financial security in the form of a pay increase of more than $5,800.
"Should the legislation pass in its current form, it is ultimately a matter for the FWC, as an independent body, to determine its impact on our proposal regarding the General Retail Industry Award."
About us: The ARA and NRA, which propose to amalgamate into the Australian Retail Council (ARC), represent a $430 billion sector that employs 1.4 million Australians across metropolitan, regional, and remote communities - making retail the largest private sector employer in the country and a significant contributor to the Australian economy. Our membership spans the full spectrum of Australian retail, from family-owned small and independent retailers that make up 95% of our membership, through to our largest national and international retailers that employ thousands of Australians and support both metropolitan and regional communities every day.
