Peak retail industry body the Australian Retailers Association (ARA) congratulated Minister Julia Gillard on her special consideration of the horticulture industry during the award modernisation process and called for the same rationale to be applied to retailers who keep their doors open on weekends to meet consumer demand.
ARA Executive Director Russell Zimmerman said, after giving special treatment to hospitality employers, Minister Gillard is now ready to do the same for the horticulture industry but small retailers will be lumped with increased wage bills of up to 16.5 percent due to the new award's archaic penalty rate structure.
"It's hopeful to see some signs of flexibility during the award modernisation process but so far calls from small retailers have been ignored.
"Among our concerns is the retail award's penalty rate structure reminiscent of the 1960s regulated Monday to Friday working weeks, including increases in penalty rates for hours worked on Saturdays (additional 25%), Sundays (additional 100%), and in the evening on Monday- Friday (additional 25%).
"Retailing is driven by consumers and retailers no longer operate on a Monday to Friday working week because consumers don't either. Retailers need a modern award to suit the modern consumers' demand for deregulated shopping hours.
"Just like the horticulture industry need workers to pick fruit when it is ripe - whether this is a Tuesday or a Sunday - retailers also need to be open for sale when consumers are ready to buy. This is the nature of working in the modern retail environment.
"To reflect modern consumers' demands on retailers, a truly modern retail award must include a penalty rate structure based on the sixth and seventh day of work and not penalise retailers for being open on weekends.
"The assumption inherent in the ‘modern' retail award is that retailers are mass employers. The reality is small business is the engine room of the modern economy and smaller retailers simply cannot afford another blow in this tightening economic climate.
"Any increased wage bills will simply be unsustainable for smaller retailers who will shed staff to cope with the new laws," Zimmerman said.
For over 105 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.5 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit http://www.retail.org.au/ or call 1300 368 041.
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