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Retailers to pay for unfair union advantage - ARA to submit to Fair Work Bill senate inquiry

Peak retail industry body the Australian Retailers Association (ARA) has attacked the unprecedented power given to unions in the Fair Work Bill 2008 currently undergoing a senate inquiry.

ARA Executive Director Richard Evans said the Fair Work Bill 2008 gives unions the power to enter retail premises and garner support from employees, potentially forcing employers operating under the Award to enter into workplace agreements with more substantial conditions.

"Under the Fair Work Bill 2008, unions have right of entry provisions allowing them to expose members and non-members alike to union pressure. Retailers will pay heavily for these union provisions by being forced to demonstrate good faith bargaining and participate in Workplace Agreements even though they are operating legally under the Award," Evans said.

"This has the potential to lead to collective bargaining and multi-enterprise bargaining for low-paid employees and currently the Bill offers no definition for low-paid bargaining. At the very least, we are calling for clarity around low-paid bargaining and whether it extends to employees currently being paid their award entitlements - if this is the case retailers could once again be burdened with increased overheads. 

"As well as the potential swell in wage bills, smaller retailers with limited knowledge of industrial relations laws may be additionally burdened with time and training costs during the agreement making process, as well as costs associated with the compulsory arbitration of agreements.

"Fair Work Australia's (FWA) ultimate ability to determine the terms and conditions of employment is a costly load for SME retailers who are already expecting to have higher wage bills and payroll obligations when the modern retail award comes into play on 19 December.

"This proposed legislation discriminates heavily against small business - the engine room of Australia's economy. The one size fits all approach to industrial relations is old-world thinking and will threaten those working Australians who have the ambition to be their own boss. FWA is obviously skewed towards the practices of large employers and ignores the need for flexibility within a small business.

"Retailers respect the fact that workers have rights, but so too do employers. Small business development and consequent productivity improvements so important to the Rudd Government will be negatively affected by the Bill's rigorous increase of union power.

"Retailers would prefer to have reasonable debate without the current overstated and ambiguous rhetoric. We call upon the Minister Gillard to listen to small business to help them achieve her goals," 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 supports and represents over 5000 members throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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