The Australian Retailers Association (ARA) is fighting for a reduction in penalty rate costs following calls from some of Australia’s largest retailers to reform wage costs in order to compete internationally.

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

“Even those who can afford to operate enterprise bargaining agreements have found their costs have been forced up to unsuitable levels due to the ‘minimum’ level being paid for out of ordinary hours work, making Australian retail wage costs some of the highest wage costs in the world.

“Not only has the retail sector been facing these increased costs in the face of international competition but we have also seen the Union and Government backing junior pay rates being abolished – which will only lead to further retail costs, a reduction in training and an increase in youth unemployment.

“While the ARA agrees with some out of the ordinary hour’s compensation, the move to current Sunday and public holiday penalty rate levels aren’t justified,” Zimmerman said.