Retailers Win Changes To Modern Awards

Win for NRA and Employers in Bid to Reduce Award Modernisation Costs

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. NRA's membership includes the majority of Australia's national retail chains.

Fair Work Australia today decided applications pursued by the National Retail Association with the object of reducing the labour cost burden imposed on retailers and fast food operators by the proposed modern awards.

In commenting on the FWA decision, NRA Executive Director Gary Black said that "while the decision falls short of delivering on the promise that the modern award process would not result in labour cost increases, we accept that the retail and fast food modern awards have been significantly improved by these decisions and employers will face a reduced labour cost burden as a result."

Mr Black said that "it was important that employers acknowledge the flexibility in the system and the willingness of the Tribunal to accept that prior award modernisation decisions in the retail and fast food sectors were deficient in some areas and required correction and improvement."

Mr Black indicated that "the changes made to the modern awards by FWA will contribute to significant reductions in labour costs for employers. When these reductions are applied in conjunction with established phasing in arrangements, there are now better prospects that employers will be able to avoid curtailing hours of operation and reducing hours of employment. Everyone will be better off as a result of these changes."

Summary of Decisions:

General Retail Industry Award 2010

* Definitions and Classifications - The Commission agreed with NRA's application to reclassify a Shop Manager to level 6 and an Assistant Shop Manager from Level 6 to Level 4. The AIRC concurred that the level 8 rate is not appropriate except in the case of very senior managers.

* Part-Time Employment - The Commission agreed to amend the part time provisions so that these employees may agree to work additional hours without the payment of overtime unless their hours exceed 38 in the week.

* Hours of work - The Commission agreed to extend ordinary hours for businesses that trade beyond 9pm Monday to Friday or 6pm Saturdays and Sundays. For these businesses ordinary hours will be able to be worked until 11pm.

* Sunday penalties - Casual employees will now receive the same rate for working on a Sunday as a permanent employee. This equates to 200% of the permanent rate instead of 225%.

* Laundry allowance - The Commission granted the NRA application to include a per shift laundry allowance for part time and casual employees. This means that instead of paying $6.25 per garment per week to all employees regardless of the number of shifts, part time and casual employees instead will be paid $1.25 per shift.

* Fast Food Industry Award 2010
Laundry Allowance - The Commission agreed to amend the laundry allowance from $4.53 per garment per week to:

-- For a full-time employee-$6.25 per week;
-- For a part-time or casual employee-$1.25 per shift.

* Part-time Provisions - The Commission agreed to amend the part time provisions so that these employees may agree to work additional hours without the payment of overtime unless their hours exceed 38 in the week.

Overtime and penalty rates

* Evening Penalty: The Commission has agreed to remove the 10% loading for all hours worked Monday to Friday from 6pm until midnight. A 10% loading will now apply for hours after 9.00 pm and a 15% loading to be payable after midnight instead.

* Sunday Penalty: The Commission has agreed to change the loading of 75% for full-time and part-time employees to 50% on a Sunday.

End.

Gary Black
Executive Director NRA
M. 0413 046 614
E: [email protected]

SOURCE: National Retail Association