News Articles

40% of retailers expect wage bill rises under Fair Work - ARA says: further employer education essential

The Australian Retailers Association (ARA) said new survey results* indicated more education was needed to help employers manage their obligations under the Fair Work Act with over 40 percent of retailers expecting increases in wage bills and operating costs but only 17 percent are fully compliant with the new laws.

ARA Executive Director Russell Zimmerman said retailers were doing their best to grapple the new laws and hold onto staff but more help was needed.

“Currently, over 54 percent of retailers have made operational changes to comply with the Fair Work Act but over 83 percent of retailers need to do more before they are fully compliant.  Almost 72 percent of retailers don’t fully understand their obligations under the Fair Work Act,” Zimmerman said.

“Of the 40 percent of retailers who expect to see wage and operational cost increases as a result of new IR laws, over 42 percent expect these increases to be between five and 10 percent. However, good retailers understand holding onto staff is the best thing they can do for their business and for the wider economy.

“In fact, only 12 percent of retailers are reporting they will shed staff under the new Fair Work regime. When this is compared with 68 percent of retailers who reported they would let go of employees to cope with new IR laws in March last year, it is clear Fair Work education and information seminars are essential in helping employers manage their new obligations.

“Instead, retailers are now diligently looking at other ways to deal with cost increases as a result of Fair Work. They are attending Fair Work information seminars run by employer associations (almost 49 percent) and actively looking for assistance to comply with new laws and manage associated costs without shedding staff,” Zimmerman said.

• Over 12% of retailers will shed staff to cope with the new laws
• Almost 36% of retailers will limit hiring new staff
• 41.5% of retailers will make rostering changes
• Over 32% of retailers will give employees less hours
• Over 45% of retailers aren’t sure how the new IR laws will impact their business
  
  

“Retailers are telling us they would like more time to comply with the Fair Work Act, with over 93 percent supporting a grace period before penalties are issued.

Options:

View Archives