FAQs on ARA GRIA Submission

  Claim  ARA Fact 
1  Retailers are trying to abolish penalty rates, overtime and meal breaks 
  • Incorrect. The ARA application does not include a proposal to remove penalty rates, overtime or paid breaks from the award.  
  • In line with other awards and common arrangements for senior employees, it seeks to introduce a voluntary option for engaging and paying salaried managers, including a higher rolled-up rate calculated at least 135% of the minimum base rate of pay for the managerial level – as with other awards it is known as a salary absorption.  
  • Managers receive the higher salary even if they do not work the number of hours incorporated into their salary.  Such arrangements enhance productivity without disadvantaging employees. 
  • The arrangement operates successfully in other awards. 
  • The proposal includes significant safeguards to ensure that managers are not disadvantaged by the arrangement. If managers work above a certain number of hours a week or on a public holiday, this would be paid on top of their salary (or they can choose to take time off in lieu). 
2  Retailers are trying to scrap work breaks and reduce rest times between shifts from 12 hours to 10 hours. 
  • Incorrect. There is no request to remove work breaks or smoko breaks – only to provide flexibility found in many other awards and agreements. 
  • There is a proposal, where it is initiated by an employee, to introduce flexibility in break requirements, including taking it in the first and last hour of a shift so employees can go home early if and only if they choose to do so. This benefits employees and employers. 
3  1 million retail workers are at risk 
  • Incorrect. The salary absorption proposal only applies to senior salaried managers – such as Store Managers, Assistant Managers and Department Managers.  
  • Managers are commonly a small minority of retail employees in a store.  
4  Workers will not be given a choice 
  • Incorrect. No employee can be forced to agree to the salary absorption option, it is at the employees election and employees wishing to do so would need to confirm their agreement in writing for the exemption rate to apply to them.      
5  Workers will be worse off 
  • Incorrect. The proposal applies to workers in senior roles on an agreed annual salary of at least 135% of the minimum rate for their level.   
  • Employees remain covered by the GRIA, with protections like capped hours, and mandatory breaks both during and between shifts. 
  • Employees working beyond the capped hours or on public holidays are entitled to additional payments or time off. 
6  Retailers have launched a coordinated campaign to boost profits 
  • Incorrect. The review into the GRIA was initiated by the Federal Government in September 2023, with the FWC undertaking the review as part of the award review cycle 
  • Due to its complexity, the retail award was chosen as the priority, with the objective to make it clearer, simpler and more flexible for all parties.  
  • Enhanced flexibility and productive arrangements are in the interests of employees and employers. 
  • Salary exemption is not a new modern award concept. It already exists in a number of awards, including the Hospitality Industry Award. 
  • The ARA has submitted an application in response to the review, which includes 17 recommendations. The FWC hearing is scheduled for March 2025. 

 

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