MEDIA STATEMENT
National Retail Association
Gary Black
Executive Director NRA
M. 0413 046 614
E: g.black@nra.net.au
NRA Helping Australian Business Grow.
14 October 2009
NRA Sets Out to Fix Modernisation Anomalies
The National Retail Association
(NRA) is Australia’s largest and most representative retail
organisation with over 3000 members and affiliates located across all Australian states
and territories.
Its membership includes the majority of Australia’s national retail chains
and extends across the retail take-away food and fast food sectors.
The NRA has applied to the Australian Industrial Relations Commission to vary the content
of the General Retail Award 2010. NRA’s Executive Director Gary Black says that “the
lodgement of the application follows general expressions of concern from across the retail
sector at the damage the proposed new award will cause in terms of retailer profitability
and viability, and the loss of job opportunities, particularly for young people”.
“NRA and its membership does not accept that the phasing-in of labour cost increases
resulting from the operation of the modern award is an appropriate fix for the broken
promise that the award modernisation process would not result in increased labour costs.“
Apart from asking the AIRC to revisit prior decisions which have the effect of significantly
increasing
labour costs, NRA has pointed out “that the modern award discriminates
against small business and businesses which do not operate shopping centre hours.“
“NRA has long advocated that the adoption of a Melbourne shopping centre award as the
template for the Australian retail sector is entirely inappropriate. There are many retail
businesses who trade substantially different hours to shopping centres and these
additional or different hours make an important contribution to the success of such
businesses and serve particular community needs. Accordingly the modern award should
incorporate provisions which reflect the actual operating hours of businesses and not apply
a “one size fits all shopping centre model” in the crafting of provisions which employers
reasonably expect to reflect a contemporary or modern operating environment.”
“Liquor store operators in NSW are one example. These stores typically trade through until
10pm at night –
Monday to Sunday. The current award (NSW Shop Award) specifically
recognises these longer and different hours and overtime rates are not payable until after
10pm. In the modern award however overtime is payable after 9pm at night Monday to
Friday, and after 6pm on a Saturday and Sunday. “
MEDIA STATEMENT
National Retail Association
Gary Black
Executive Director NRA
M. 0413 046 614
E: g.black@nra.net.au
NRA Helping Australian Business Grow.
“Another example is independent supermarkets in Queensland. At present the
Queensland award recognises that these businesses trade longer hours and fixes a
closing time of 12midnight for ordinary hours. These businesses trade longer hours
because larger supermarkets in Queensland close at 9pm and there is a need to service
consumers and tourists across longer hours.“
Mr Black said that “the current modern award will force these and many other employers
(typically small businesses) to pay significantly higher penalty rates and overtime rates,
and the imposition of these additions to labour costs will mean businesses will be less
viable and will cut
operating hours, reducing employment and curtailing the delivery of
important services to consumers in general and where relevant tourists.”
NRA has urged the AIRC to address the discriminatory or anti-small business provisions
currently included in the modern award.
NRA is proposing that the AIRC make the following key amendments
to the draft award
before its release on 1 January 2010:
1. Reduction of the Sunday penalty rate from 200% to 150%;
2. Reduction of the Sunday penalty rate for casual employees so that it mirrors the part
time rate.
This will mean casuals on Sundays would be paid 150% of the part time rate.
Currently the award provides that casuals are paid 225% of the part time rate for work
performed on Sundays;
3. Removal of the overtime penalties where part time employees work in excess of their
agreed hours;
4. The application of a more sustainable and practical set of classifications for supervisory
and shop management levels.
5. An extension of ordinary hours of work for businesses which currently trade outside the
ordinary hours prescribed by the award.
This would allow ordinary hours to be worked up
until 11.00pm, 7 days per week
A copy of the application can be found by clicking here.
MEDIA STATEMENT
National Retail Association
Gary Black
Executive Director NRA
M. 0413 046 614
E: g.black@nra.net.au
NRA Helping Australian Business Grow.
Mr Black said that it was important for the AIRC to note that “retailers continue to face a
very difficult trading environment. Rising interest rates, job insecurity and the removal of
stimulus measures, will directly and negatively impact on the discretionary spend of many
consumers going forward. Additionally for many retailers year on year sales are showing a
reduction in turnover of between 5% and 10%. This is not an environment in which
unbudgeted an unexpected labour cost increases should be imposed on retailers.”
“Young people will be most affected by the revenue and cost pressures on retailers.
One
in every two young persons relies
on retail for employment
and the youth unemployment
rate at present is around 17%. Less job opportunities for young people is bad news for
thousands of young people about to complete schooling and enter the job market.”
End.
NEWS 
