Ahead of the Fair Work Commission’s (FWC) decision on Sunday penalty rates, Australian Retailers Association (ARA) executive director, Russell Zimmerman, said reducing the rates will enable retailers to employ more staff. “If you’ve got an enterprise bargain agreement within your organisation, there will be savings up to three to four per cent on your total wages bill,” Zimmerman told Inside Retail Weekly. Zimmerman said retailers who work under the general retail award could save up to
around $10,000 per year as a result of reducing Sunday penalty rates.
The ARA and the retail industry have been engaged in a review of the General Retail Industry Award 2010 (GRIA) for the past 18 months, a reduction in Sunday penalties proposed from the current double time to time and a half.
“Retailers that we’ve spoken to have said that they won’t pocket this money. They’ve had to pay it out in the past in any case, they will in actual fact employ more staff on the floor either by giving more hours or by putting extra staff on.”
Instituting a rate reduction would have positive implications for retailers of all sizes, with Zimmerman signalling more employment opportunities for those under 25 years of age.
“Should Sunday penalties be cut, retailers will be able to afford to employ more staff for more hours. With youth unemployment rates at an all-time high, and retail being one of Australia’s largest private employers, this change will enable businesses to employ more staff, helping to reduce unemployment levels, particularly in the sector of under- 25s.”
Citing the Productivity Commission’s final report in December last year on workplace relations, which recommended that Sunday rates match those of Saturday penalty rates at time and a quarter, Zimmerman noted that the ARA was supportive of a reduction, not a removal, of penalty rates.
“Retail employees cite shortage of staff as one of the most significant negative aspects of Sunday work – a direct consequence of the high penalty rates in place under the current GRIA.
“A reduction in Sunday penalty rates will allow retail employers to be able to provide more labour hours to retail employees who would like to work on Sundays.”
Independent research commissioned by the retail industry found retail employees are prepared to work on Sundays for a lower penalty rate, with most retail workers indicating that their willingness to work on Sundays changes very little, whether they are paid at double time or time and a half.
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