Australian Unions are standing up to some of the country’s largest retailers in a fight to stop the abolition of penalty rates for retail workers nationwide.
ACTU Secretary, Sally McManus, and SDA National Secretary, Gerard Dwyer, are in Sydney today where a full bench of the Fair Work Commission is hearing a bid to wipe out penalty rates for at least 200,000 retail workers.
If the application succeeds, individual retail workers stand to lose $5,000 a year in wages earned through penalty rates, allowances and overtime.
The application is being led by the Australian Retailers Association with the support of some of Australia’s largest retailers, including Coles, Woolworths, 7-Eleven, Kmart and Mecca.
If upheld, Australian Unions warn it will cost 200,000 retail workers over $1 billion; with the potential to flow onto a further 120,000 workers in other industries, such as banks, finance, and admin, costing them at least another $640 million in lost wages.
The Retailers Association wants penalty rates, overtime and other entitlements removed for permanent workers, in exchange for a one-off 25 per cent increase for retail workers. The retail award covers 350,000 workers and indirectly sets the pay and conditions for another 690,000 workers.
The Australian Industry Group has lodged a similar Fair Work Commission application to scrap penalty rates in the clerical, banking, and finance sectors.
Employment and Workplace Relations Minister, Senator Murray Watt, has intervened in the case in support of retail workers, to stop their wages being reduced.
Opposition Leader, Peter Dutton has yet to intervene in either case and has not ruled out cuts to penalty rates.
In 2017, the Fair Work Commission cut penalty rates in similar circumstances. The then Coalition Government, which included Peter Dutton, voted against restoring those penalty rates eight times.
Quotes attributable to ACTU Secretary, Sally McManus:
“Penalty rates are a key element of workers’ take home pay. They also compensate people for working unsociable hours. We are not going to stand by while these major retailers try to take away wages from their employees.
“It’s insulting that the people who kept these retailers open during the pandemic could now face a $5,000 wage cut.
“This will force some lower-paid workers to skip meals, cut back on life’s necessities and go without even more just to stay afloat.
“If the Fair Work Commission signs off on this proposal, penalty rate cuts won’t end with retailers. Employers are also pushing to do the same thing in the clerical, banking and finance sectors and other employers will be vying to see who the next targets will be.
“This could be anyone in an industry where workers rely on awards and penalty rates, such as in cafes, restaurants, healthcare and hairdressing.”
Quotes attributable to SDA National Secretary, Gerard Dwyer:
“Retail workers will thank the Albanese government for stepping in to protect their wages and conditions from this unreasonable and opportunistic assault.
“The question is whether Peter Dutton will speak up in support of some of the lowest paid employees or return to the habits of the past when, as a Minister in the Morrison Government, he actively supported a decade of wage stagnation and suppression.
“Too many employers have so little regard for their loyal and hard-working employees that they only ever think of cutting wages and removing conditions. They are there to ensure an efficient and effective workforce.”
ENDS
NOTES:
At certain stores with extended trading hours, the proposed one-off increase is 35 per cent. The Australian Retailers Association’s bid to cut penalty rates would result in a Level 4-6 retail employee losing $5,000-$10,0000 in annual wages, penalty rates, allowances and overtime; based on typical rostering arrangements, involving afternoon, evening and weekend work.
