Award Modernisation

Modern Retail Industry Award 2010 - Now Released

The Modern Retail Industry Award 2010 has now been released. Download your copy of the award.

New Retail Award will drive costs up

After eight months of submissions, hearings, exposure drafts and further submissions the Australian Industrial Relations Commission (AIRC) today released the first of the new modern awards - the new modern Retail Award being a central feature of the announcement.

The new awards are in response to a direct ministerial request by Federal Minister the Hon Julia Gillard to modernise the Australian workplace and to do so in a manner which would "not disadvantage either employers or employees in a financial sense."

The ARA, after a review of the new Retail Award, can only conclude direct labour costs will go up; regulatory burden will increase as all employees are reclassified; casual employees paid a 10% premium for working on a Saturday and allowances will not only be maintained but increased.

Although the new award doesn't come into effect until 1 January 2010, when combined with the proposed new IR Bill (which gives unions greater right of entry and bargaining rights) will further dampen the confidence level of retailers.

The new Retail Award does not reflect the nature of the modern workplace. It refuses to acknowledge consumer expectations of trading hours, rostering requirements of employers to meet seasonal demands and the tightening economic environment all Australians and industries are facing.

The general consensus among employer groups has consistently shown the severe financial impacts and the ability of SME retailers to absorb these price impacts is questionable. There is no doubt consumers will foot the bill through price increases on goods and groceries.

How much will this cost retailers?

The ARA's costings analysis based on a roster for a small retailer with two full time and two casual employees indicates a $22,000 wage bill increase on average across Australia with state costings estimated to be the following:

New South Wales:                     $28,473p/a    (16.5% increase)
Victoria:                                    $18,821p/a    (11.5% increase)
Queensland:                              $25,402 p/a   (15.5% increase)
Western Australia:                    $19,496 p/a   (11.5% increase)
South Australia:                        $26,123 p/a   (15.6% increase)
Tasmania:                                 $23,693 p/a   (14% increase)
Australian Capital Territory:      $24,863 p/a  (15% increase)
Northern Territory:                   $15,581 p/a   (9.5% increase)

The new Retail Award at a glance:

1. Casual

A casual employee will be entitled to a casual loading of 25% in addition to the basic hourly rate of pay.

A casual employee will not be entitled to the additional penalty payment for evening work and Saturday work but must be paid an additional 10% for work performed on a Saturday between 7am and 6pm. A casual employee will however, be entitled to penalties as prescribed within the award for any work performed on a Sunday and on public holidays. Casual employees are also entitled to penalties subject to the shiftwork provisions within the award.

The minimum daily engagement for a casual employee is three hours.

2. Minimum Weekly Wages & Classifications

Eight new levels of classification based on skill levels or responsibilities required in the job (See Award for Detailed Definition). Classifications will also link in clerical officers working within the retail establishment.

• Retail Employee Level 1 $600.00 (previous Shop Assistant) Includes: Clerical Assistant Level 1
• Retail Employee Level 2 $615.00
• Retail Employee Level 3 $625.00
• Retail Employee Level 4 $637.60 Clerical Officer Level 2
• Retail Employee Level 5 $665.00
• Retail Employee Level 6 $675.00 Clerical Officer Level 3
• Retail Employee Level 7 $710.00 Clerical Officer Level 4
• Retail Employee Level 8 $740.00 (previous Store Manager) Clerical Officer Level 5

3. Ordinary Hours of Work

Ordinary hours of work mirror those contained in the Victorian Retail Award (SDAEA Victorian Shops Interim Award 2000). At first reading, the ordinary hours may appear broader than those contained in most current Retail Awards; however retailers should be aware that penalty rates will apply for working ordinary hours past 6pm Monday to Friday and Saturdays/Sundays.

Rostering under the Modern Retail Award allows for the same flexibility as provided in most current Retail Awards throughout Australia. The Modern Retail Award allows for ordinary hours to be averaged over a period of four consecutive weeks. Retailers will also be able to introduce rostering cycles inclusive of rostered days off.

Newsagents will be able to have their ordinary hours commence at 5am and Video Stores will have a 12 midnight spread of hours.

4. Penalty Rates

The current penalties provided for in the Victorian award will apply Australia wide. States and Territories around Australia may find there are variations to the current arrangements for hours worked that attract penalties.

The Modern Award provides penalties for hours worked on Saturdays (additional 25%), Sundays (additional 100%), Public Holidays (additional 150%) and in the evening on Monday- Friday (additional 25%). Hours in excess of the ordinary number of hours will also attract overtime penalties (time and a half for the first three hours and double time thereafter).

Further Information

For further information of the New Modern Retail Award or to register for an upcoming briefing session please contact the Employment Relations team on 1300 368 041 or email us.