Penalty rates for retail casuals to jump 25 per cent after Fair Work Commission decision

TESSA AKERMAN
SEPTEMBER 28, 2018
The Australian

Casuals in the retail sector will see a 25 per cent bump to their Saturday penalty rates phased in over the next three years, increasing the pay from 135 per cent to 150 per cent, following a Fair Work Commission decision that will also increase weekday rates for work after 6pm.

A full bench headed by president Iain Ross said the current casual rates for weekday evenings and Saturday work “lack logic and merit”.

The commission said it accepted evidence the hike would only result in a ‘small’ drop in casual employment “which would not have a significant impact” on the opportunities for young and disadvantaged job seekers to gain employment.

However it added that while the aggregate effect of the pay increase would be small, the impact may be more significant for individual businesses, depending on the extent to which they utilise casual employees at the times which will be affected by the variations.

The Shop, Distributive and Allied Employees’ Association celebrated the full bench decision as a “major win”.

National secretary Gerard Dwyer said the decision would result in significant pay increases for more than 350,000 retail employees on the Award and have flow-on effects for employees on enterprise bargaining agreements.

“These measures go some way to addressing the unjust treatment of casual workers under the Award who are not properly compensated for the absence of sick pay, annual leave and the insecurity of work,” he said.

The Australian Retailers Association executive director Russell Zimmerman slammed the union’s response as “two-faced”.

He said it was hypocritical of the union and the Labor Party to seek to overturn full bench decisions they didn’t like such as the decrease in Sunday penalty rates but back the commission on decisions they agreed with.

Shadow workplace relations minister Brendan O’Connor today announced an elected Shorten government would restore penalty rate in their first 100 days and legislate so rate could never be cut.

Mr Zimmerman warned the impact of the gradual hike would be felt as soon as it took effect in November as retailers considered whether they could afford the previous levels of casual staffing over the holiday period.

“Retailers have two options — either try and cut staff or increase prices,” he said.

 “We’re going to see hours and shifts being cut where they can.”

 Mr Zimmerman said “mum and dad” retailers would end up working longer hours and cutting staff.