ARA urges Senate to review the BOOT for retailers at today's hearing

THE Australian Retailers Association (ARA) will be appearing in front of the Senate Education and Employment Committee today to discuss improving Enterprise Bargaining Agreements (EBA) for retailers in Melbourne today.

The ARA have put forward a submission to the Committee regarding to the Senate’s Penalty Rates inquiring to improve the flexibility of EBA’s and rectify the Better-Off Overall Test (BOOT).

ARA Executive Director Russell Zimmerman said the ARA strongly recommends a review of the BOOT as its current function discourages enterprise bargaining and creates uncertainty during the agreement approval process.

“The BOOT was implemented to provide a simple, flexible and fair framework that enables collective bargaining for enterprise agreements that deliver productivity benefits,” Mr Zimmerman said.

“We are highly concerned that the BOOT is failing to achieve its objectives, and believe it is essential that Fair Work take a more practical approach to its application which is more focused on efficiency.”

The ARA believe the application of the BOOT by the Fair Work Commission (FWC) is a primary reason for the retail bargaining decline.

“Retail employers filing enterprise agreements approved by an overwhelming majority of their workforce are being met with a demanding FWC process,” Mr Zimmerman said.

“This process appears to be directed towards rejecting enterprise level arrangements rather than approving them although employees are clearly better off.”

As retailers are continually facing a fluctuating trading environment, the ARA believe the FWC needs to re-evaluate the unnecessary complications surrounding the BOOT.

To view the ARA’s full submission to the Senate Standing Committees on Education and Employment, please click here.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368.

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