The Australian Retailers Association (ARA) has defended its proposed amendments to the general retail industry award and clarified it does not propose the removal of penalty rates.

“There is no proposal to remove penalty rates, overtime or paid breaks from the award,” said Fleur Brown, chief industry affairs officer at the ARA.

“What the ARA has proposed is that managers can opt into a pay increase if they select the voluntary salary absorption option. This will only apply to employees that agree to it.”

The ARA’s proposed amendments include providing workers the option to work more flexibly for 38 hours across four days while allowing split shifts.

Workers will also be allowed to take their break at the end of their shift, should they opt to finish their work early.

Moreover, retail managers would be able to choose an annual salary at a higher fixed rate over variable, hourly penalty rates.

“Similarly, our proposal has never suggested removing breaks from the award,” said Brown.

“We are simply proposing that any employees who prefer to take an early mark can opt into that.”

The ARA’s statement comes amid what it calls as a misinformation campaign from unions.

On social media platform X, Federal Workplace Relations Minister Murray Watt said he will stop the big retailers from slashing penalty rates.

“Right now, the supermarket chains and other big retailers are trying to strip penalty rates from retail workers earning as little as $53,000 per year,” said Watt.

“We’re stepping in to try to stop this – weekends are special and those who work them deserve to be rewarded.”