Gillard gives more ground over higher penalty rates in modern awards

Federal Workplace Minister Julia Gillard has written to Australian Industrial Relations Commission (AIRC) asking for changes to draft awards it has made for the horticultural, banking, retail and pharmacy sectors.

The move comes after industry groups in these sectors called on Gillard to intervene before the new awards come into force on 1 January, 2010. These groups have warned that increases to penalty and wage rates could force some businesses to cut staff numbers or even close.

Gillard has specifically recognised the concerns of retail and pharmacy employer groups, who are worried about the introduction of penalty rates of 200% for Sunday shifts and escalating penalties for part-time staff who work more than their contracted hours.

Gillard again called on the commission to utilise the full five-year transition periods available under the award modernisation process.

“I believe it is imperative that this change is carefully and gradually phased in to ensure that its impact is reduced, particularly in light of forecast economic conditions,” she wrote.

Gillard has also moved to hose down the horticulture sector, which warned many growers could be pushed to the brink by changes to rules around ordinary working hours for fruit and vegetable pickers. The horticulture sector is concerned that it may have to pay penalty rates for worker on weekends, even if seasonal conditions dictate that food needs to be picked rapidly.

However, Gillard has acknowledged the need for flexible rostering and piece work rates in the sector.