The way retail staff across Australia take breaks and manage their shifts could soon change following a one thousand page submission by the Australian Retailers Association (ARA) to the Fair Work Commission.
The submission by the ARA also included witness statements from 10 senior leaders at Australian retailers such as Kmart and Target, Coles, Woolworths, Mecca, Barbecues Galore and Costco.
The ARA shared 13 amendment proposals, including the allowance of split shifts in a single day, changing the minimum break between shifts on different days, and allowing 38 ordinary hours to be worked across four days.
Managerial and senior staff may also be exempt from penalty rates if they are paid 125 per cent of the minimum award rate (around $67,000 annually), with another proposal to allow staff to waive meal breaks and go home early.
In a statement within the 1,083-page submission, Kmart Group head of supply chain operations Chris Melton said staff desire to have a tea break - or 'smoko break' - “has diminished in today’s modern workplace”.
“I am aware from my time working in stores and in my visits to stores in my more recent roles that at Kmart, the majority of our workforce is representative of a younger demographic who would often prefer to waive their meal break because they already carry water with them during shift and because smoking rates are now far less prevalent,” Melton said.
“The ARA’s proposal would strongly align with the preferences of our younger workforce.”
Another proposal by the ARA includes cutting the split between shifts on different days from 12 hours to 10 hours, which was supported by a majority of the respondents.
According to Melton, a majority of Kmart Group’s salaried managers have signed contracts to allow 10-hour differences between shifts on different days already.
The Shop Distributive and Allied Employees Association is preparing to oppose most of the proposed changes, according to the Australian Financial Review, “due to concerns they would leave workers significantly worse off”.
“We just don’t accept arbitrary percentage figures to ‘buy out’ a whole host of entitlements,” SDA national secretary Gerard Dwyer told the AFR.
“These people would be in senior positions in stores and they work incredibly hard, work extremely long hours and their work is valued as it is under the award. A 25 per cent buyout might buy administrative ease, but it doesn’t provide fairness and it doesn’t provide adequate compensation for the hours that people would do.”
The ARA shared in a statement today that the proposed changes will make the General Retail Industry Award clearer and more flexible for all parties.
“This application was in response to the review of modern awards initiated by the Federal Government and conducted by the Fair Work Commission,” the ARA stated.
“The ARA recognises that the current award, with 994 individual pay rates spanning 96 pages, is unnecessarily complex and misaligned with the evolving needs of the retail workforce. This leads to employees and employers struggling to understand workplace entitlements and cultivate flexibility within working arrangements.
“The ARA’s proposed variations to the GRIA seek to promote clearer guidelines around working conditions, empowering employees to understand their rights while also fostering greater transparency and flexibility in working arrangements. The case will be heard by the FWC in March 2025.”
The ARA added that it recognises the importance of safeguards for workers.