The Australian Retailers Association has hit back at unions for reportedly spreading misinformation over the peak body’s submission to the Fair Work Commission to update the General Retail Industry Award (GRIA).
In a statement to media, ARA chief industry affairs officer Fleur Brown said there is no proposal to remove penalty rates, overtime or paid breaks from the award.
This hit back comes after the Australian Council of Trade Unions (ACTU) and Unions NSW shared statements claiming that the ARA's plan is to “abolish” penalty rates and other employee entitlements.
“The ACTU warns that today’s proposal by Australia’s largest retailers to abolish penalty rates and cut minimum conditions for supermarket employees risks hurting some of Australia’s lowest-paid workers and sets a precedent for other employers to do the same,” the ACTU shared in a media statement on its website late last month.
According to the ACTU, Coles and Woolworths have joined forces with Kmart and Costco to publicly back the ARA’s submission to “scrap” overtime, evening and weekend penalty rates, work breaks, and reduce rest times between shifts from 12 hours to 10 hours.
Unions NSW has voiced similar concerns according to various media reports. According to PS News, Unions NSW secretary Mark Morey said ARA’s proposal would undermine the protections workers had fought for and affect low-paid workers statewide.
“Retailers are making billions in profits, so it’s disgraceful that they’re targeting the penalty rates and entitlements of the very people who keep their businesses running,” Morey reportedly said. ”This is a cash grab at the expense of hard-working Australians.”
The ARA reported that, under its proposal, retail workers would be able to work a more flexible four-day week and finish shifts early. Retail managers would also be able to choose an annual salary at a higher fixed rate over variable, hourly penalty rates.
There are 13 proposals altogether in ARA’s submission, which also includes allowing split-shifts, which the ARA noted will provide working parents with greater flexibility for activities such as school pickup and drop off. “Workers that want to finish early can choose to take their break at the end of their shift.”
The ARA added that there is also a working precedent for the salaried managerial proposal, “which is already used broadly and effectively across a range of industries.”
“This choice and flexibility aligns with the shift towards more flexible ways of working which is in the best interests of workers and their employers,” Brown said.
“Our proposal addresses areas where the GRIA is out of step with the needs of a modern retail workforce and where there are obvious, counter-productive barriers to mutually agreed flexible work arrangements.
“It’s widely accepted that the GRIA is unnecessarily complex. There’s almost 1000 individual pay rates. The complexity and onerous detail puts an enormous burden on small to medium businesses in particular who simply want to focus on fairly rewarding their team, doing the right thing by their customers and being part of the retail sector which is a crucial element of the Australian economy. ”
Brown said the ARA and its members respect the Fair Work Commission process and that they look forward to next month’s hearing. “However, given the misinformation campaign that has been waged by unions in recent weeks around penalty rates, it’s important to correct the record.
“There is no proposal to remove penalty rates, overtime or paid breaks from the award. What the ARA has proposed is that managers can opt into a pay increase if they select the voluntary salary absorption option. This will only apply to employees that agree to it.
“Similarly, our proposal has never suggested removing breaks from the award. We are simply proposing that any employees who prefer to take an early mark can opt into that.”
The ARA has posted up a factsheet on its website, which can be found under the news tab section.
According to the ARA, more than half of retail businesses surveyed by the peak body said the current workplace relations laws create barriers to employment outcomes, such as the ability to work 38 hours over four days or to work split shifts to accommodate their personal needs of employees.