David Marin-Guzman
March 14 2017
AFR
Retailers are pushing to have cuts to Sunday penalty rates fully phased in over the next 15 months, the minimum length of time recommended by the Fair Work Commission.
The Australian Retailers Association told its members on Tuesday it would make submissions for a two-stage transition that would see permanent employees’ Sunday rates of 200 per cent reduced to 175 per cent by July 1, 2017 and 150 per cent by July 1, 2018.
Casual employees, however, would have their full pay cut within months, from 200 per cent to 175 per cent by July 1.
The retail group is the first to announce its preferred transition period after the Fair Work Commission decided to cut Sunday rates in retail, fast-food, pharmacy and hospitality industries last month.
ARA executive director Russell Zimmerman said retailers, who experienced the largest cuts, supported a phased-in reduction “provided this does not impact negatively on retailers’ capacity to increase employment”.
“Based on the evidence presented to the commission during this industry-wide case, employees in the industry would experience no, or very marginal, negative impact, if the penalty rate reduction was transitioned in this two-stage process.”
In its decision, the commission said “at least” two annual instalments were likely required for the cuts but no more than five.
It said the transition period would depend on the size of the cut and the availability of take-home pay orders, which allow existing employees to preserve their pay and were used during the nationalisation of awards in 2010.
Mr Zimmerman said retailers oppose take-home pay orders as “an unsustainable process moving forward”.
“Modern awards needs to be simple, steady and easy to implement.
“Take-home pay orders will add an unnecessary level of administrative complexity to this transition which will be superfluous.”
The position puts the association at odds with Small Business Ombudsman, and former Australian Chamber of Commerce and Industry CEO, Kate Carnell, who has backed take-home pay orders as a way to “take away some of the angst in this space”.
The commission has given parties until March 24 to make submissions on transitional arrangements.
Prime Minister Malcolm Turnbull has suggested phasing in the cuts over several years so that they were masked by annual wage increases.
However, it is understood the government will not be making submissions on the phase-in period itself, only whether the Fair Work Act allows for take-home pay orders in this case.
Follow us: @FinancialReview on Twitter | financialreview on Facebook
Subscribe to our free mailing list and always be the first to receive the latest news and updates.