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Gillard's call for award modernisation falls on deaf ears

Peak retail industry body the Australian Retailers Association (ARA) said the simplified draft retail award handed down by the Australian Industrial Relations Commission (AIRC) today has ignored Minister for Workplace Relations Julia Gillard's objectives for modernisation.

ARA Executive Director Richard Evans said the new retail award's focus on simplification and rationalisation failed to answer retailers' call for a penalty rate structure recognising the modern deregulated retail market.

"Minister Gillard's call for modernisation has been sacrificed for a more conservative simplification and rationalisation outcome. Modern workplaces, modern consumer demands and modern workforce arrangements have not been acknowledged in the draft award.

"The ARA's submission to the AIRC strongly recommended a retail award (for 1.2 million employees) should reflect community demand for deregulated shopping hours by producing penalty rate structures within the context of a seven day / 24 hour trade period - but this has been ignored. The penalty rate structure in the draft award is reminiscent of the 1960's regulated market of Monday to Friday working weeks. This is not flexible enough for the modern retail market," Evans said.

"The modern consumer wants seven day trade, and in some cases, 24 hour shopping access. Retail is very competitive and driven by consumer demand. A retailer should not be penalised for being open to meet consumer demand, but under the current structure for penalty rates they are. Penalty rates such as overtime and loadings should take effect after prescribed working hours and not prescribed days. Why should someone flipping burgers on a Sunday get paid more than someone doing the same job on a Monday?

"Retailers are risk takers, they are creating employment - yet they haven't been listened to. Instead, the new draft retail award provides more bad news to the retailers who have already been hit hard with this year's interest rate increases and rising petrol prices.

"There are always winners and losers - and unfortunately this time the loser is the consumer. The new draft retail award has ensured prices will go up and the consumer will pay.

"The ARA's call for rostering over a 12 month period rather than the current four week structure was also dismissed, disregarding the seasonality of the retail sector.

"The ARA will now work with retailers and the industry groups that have been considered under the draft to be part of the retail award (including pharmacies, hair and beauty salons, butchers, bakeries and take-away food and video stores) to respond to AIRC the within the two week deadline," 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 1.2 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.

For interview opportunities with ARA Executive Director Richard Evans contact:
Kath Christie, ARA Policy & Media T: 0422 293 544 E: kath.christie@retail.org.au

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