Retailers want Gillard to reconsider changes to new award

Employer groups are demanding Federal Workplace Minister Julia Gillard intervene in the Australian Industrial Relations Commissions’ award modernisation process, claiming the new awards will boost wage bills and force companies to lay off workers.

Gillard, who earlier this year directed the Commission to change the award covering the restaurant and catering sector, has also announced she is prepared to give special consideration to changing the award covering the horticulture sector, after industry groups warned 30,000 growers could be made unviable if their costs increased by up to 30%.

Now other industry groups who are bitterly opposed to the new awards want Gillard to hear their case too.

The Australian Retailers Association, which claims wage bills for its members will jump by up to 16.5% due to the new retail award’s penalty rate structure, wants special consideration.

“It’s hopeful to see some signs of flexibility during the award modernisation process but so far calls from small retailers have been ignored,” ARA Executive Director Russell Zimmerman said in a statement.

The ARA’s biggest concern surrounds penalty rates for hours outside the standard Monday-to-Friday week. It says penalty rates for Saturdays will jump 25%, Sunday penalty rates will double and rates for weekday evenings will be 25% higher.

“Retailing is driven by consumers and retailers no longer operate on a Monday to Friday working week because consumers don’t either. Retailers need a modern award to suit the modern consumers’ demand for deregulated shopping hours.”

Zimmerman has warned small retailers will shed staff to cope with the new laws.

The Pharmacy Guild of Australia also wants Gillard to look at its award. It has previously has written to the Australian Industrial Relations Commission warning that moving to the Government’s proposed new award will cost 4,000 jobs, including 2,541 sackings in New South Wales, 736 in Queensland and 597 in Western Australia.

Gillard has previously advised the Industrial Relations Commission to consider the state of the economy when it considers award decisions and make use of the full five-year transitional arrangements available under the new legislation.