Pay confusion highlights need for retail- specific education program

Peak retail industry body the Australian Retailers Association (ARA) said today’s findings reported in the Australian Financial Review that incorrect advice from the Fair Work Ombudsman (FWO) may have led to retailers unintentionally contravening their employer obligations was further evidence of the important role industry associations play in providing industry specific advice and education programs to avoid costly pay errors.

ARA Executive Director Russell Zimmerman said the findings that FWO had made 40 changes to fix errors in its online pay calculator, which may have led to pay errors, made it easy to understand why small retailers are confused about their employer obligations particularly when they were receiving incorrect information from the very same body applying the penalties.

“Errors found with FWO’s reporting of pay rates under the Retail Award shows retail industry associations have an important role in filling the gap between general information and retail- specific information, as well as offering education programs specifically for retailers.

“The ARA is calling on government support for ongoing education provided by retail industry associations as retailers make efforts to ensure they proactively comply with their obligations under the Modern Award.

“Small retailers don’t have access to in house HR expertise. So, they’re dealing with incremental changes to the Modern Award over five years on top of all their other duties as store owners which often stretch from being on the shop floor, cleaning, training and merchandising all the way through to bookkeeping and keeping up with various other regulations.

“Retailers who aren’t members of an association need to be aware of possible shortfalls when seeking advice from non industry- specific experts and should probably weigh up the benefits of joining an industry association against the possible cost of back paying their staff and keeping up with often confusing changes.

“ARA members have access to 35 retail- specific industrial relations experts, as well as the online Employment Relations Management System (ERMS) to support them through IR changes and ensure they’re not unintentionally in breach of their responsibilities.

“The results of the FWO report showed retailers were making a concerted effort to meet their obligations as employers with three quarters paying their staff correctly, but retailers can avoid costly back pay by turning to their industry associations for retail- specific advice,” Zimmerman said.

For over 100 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia’s $240 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Fair Work (Registered Organisations) Act 2009 and with a range of member services including policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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For interview opportunities with ARA Executive Director Russell Zimmerman
contact: Andie McMaster, Media & Communication Officer T: 0408 613 178 E: media@retail.org.au

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