The Australian Retailers Association (ARA) has updated its salary absorption proposal as part of its application to the Fair Work Commission to amend the General Retail Industry Award (GRIA). But the unions are still against it, calling it an "opportunistic assault" on retail workers.
ARA chief industry affairs Officer Fleur Brown said the ARA has listened to feedback through the FWC hearing process and responded with a stronger proposal around payment arrangements for salaried managers who work later trading hours.
This includes increasing the salaried rate to 135 per cent for retailers with later trading hours to ensure individuals working any type of roster would receive a salary increase.
“This means retail managers could be on average $5,841.65 better off annually under an annualised salary option, providing greater income and financial stability,” Brown said.
“The enhanced proposal also provides a higher rate of 150 per cent for any hours of work over 43 in a week for both retailers with, and without, extending trading hours.”
The changes also introduce an obligation on employers to check how many hours beyond an average 43 in a week have been worked at the end of a six month period in order to identify whether employers are entitled to any additional payments, or equivalent time off in lieu.
"This is helpful for employees and businesses – giving employees even more choice while ensuring small businesses can confidently meet their obligations.”
According to the ARA, its updated proposal aims to reflect the diversity of the retail sector, where businesses of all sizes operate under the same award but have varying needs.
The move comes amid an ongoing spat between the ARA, the Shop, Distributive and Allied Employee's Association (SDA) and the Retail and Fast Food Workers Union (RAFFWU). Objections to evidence have been tabled by each of the parties.
ARA’s application has the support of the likes of Coles, Woolworths, 7-Eleven, Kmart and Mecca.
In a joint press release, Australian Council of Trade Unions (ACTU) secretary Sally McManus and the SDA national secretary Gerard Dwyer are claiming that the ARA’s bid is set to “wipe out” penalty rates for at least 200,000 retail workers.
The ARA has vehemently denied this, saying the state of penalty rates are not under scrutiny; that the only change is offering to move manager-level roles onto a matching salary so employers do not need to calculate penalty rates.
The ACTU and the SDA claim individual retail workers stand to lose $5,000 a year in wages earned through penalty rates, allowances and overtime, the opposite of what the ARA is claiming.
If upheld, the two union groups claim it will cost 200,000 retail workers over $1 billion, with the potential to flow onto a further 120,000 workers in other industries.
The retail award covers 350,000 workers and indirectly sets the pay and conditions for another 690,000 workers.
“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,” McManus said.
“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.”
Dwyer added that retail workers will thank the Albanese government for stepping in to protect their wages and conditions. Last month, Workplace Relations Minister Murray Watt stepped in to oppose the ARA’s submission.
“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,” Dwyer said.
“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.”
In retaliation, Brown said that despite this “misinformation campaign” by the unions, “it’s important to be clear that all penalty rates, overtime, and paid breaks remain unchanged under the GRIA.”
“Importantly, the choice to opt into the benefits of this salary model is entirely up to each employee,” she said.
Joining the ARA’s statement to market, the Council of Small Business Organisations Australia (COSBOA) CEO Luke Achterstraat said the updated proposal recognises the varying needs of businesses covered by the GRIA, while giving employees greater choice and financial certainty.
“In the retail sector alone, employers must navigate 994 different pay rates across 96 pages just to ensure their employees are paid correctly. It’s unworkable,” Achterstraat said.
“Red tape is killing Australian small businesses, and we welcome changes that provide more certainty for both employees and small business.”
Brown added that the ARA would continue to advocate through the Fair Work Commission, for a modern Award that truly reflects the needs of employees and businesses.
In response to the current review, the ARA put forward 13 recommendations to help simplify the award.