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Fair Work means fewer jobs and fewer shops

Posted by: [deleted]1248313515.919.7 on Wed, 11 March 2009 07:32:54

• SME retailers won’t cope with combined effect of new IR laws • 65 percent of SME retailers will shed staff • 82 percent of SME retailers will restructure their workforce • 52 percent of SME retailers will restructure staff rosters

The Australian Retailers Association (ARA) said the Rudd Government's proposed new industrial relations laws would force over 65 percent of small retailers to decrease employment levels and many to close their doors*.

ARA Executive Director Richard Evans said in the current economic climate small retailers wouldn't cope with labour costs associated with the planned introduction of the Fair Work Bill in July, followed by the Modern Retail Award coming into effect six months later.

"No other economy in the world is introducing new labour laws in the context of the global financial crisis and this Government policy is fraught with danger to the retail sector.

"We must consider the combined effect of the Modern Retail Award, the Fair Work Bill and an environment of economic instability.  Today retailers have clearly indicated the effect will be less jobs and retail shop closures.

"To save jobs and small retail businesses we're urging the Government to recommend the Australian Industrial Relations Commission (AIRC) defer the introduction of the Modern Retail Award for 12 months," Evans said.

"Retailers create jobs - full-time jobs, part-time jobs and casual jobs - they provide most Australians with their first job but new IR laws will force over 82 percent of small retailers to restructure their workforce*. For many of the 1.5 million retail employees in Australia this means either less work or no work," Evans said.

"As well as reducing staff levels, over 52 percent of small retailers indicated they will restructure staff rosters and a further 26 percent will restructure employment types to cope with increased wage bills as a result of the Fair Work Bill and the Modern Retail Award*.

"Working families who are struggling to keep their small business' doors open simply cannot afford the Fair Work Bill's restrictions on casual and penalty rate entitlements or the Modern Retail Award's average 14 percent increased wage bill," Evans said.

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.5 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, 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.

*Australian Retailers Association (ARA) industry poll 10 - 11 March 2009

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