Retailers baulk at union push to increase junior wages, apprentice pay

Unions have put forward their ideas for the Fair Work Act review, with calls for adult wages to start at age 18 rather than 20 and an increase in apprenticeship pay to increase the attractiveness of apprenticeships.

But retailers have baulked at the idea, saying the sector is already under pressure.

Russell Zimmerman of the Australian Retailers Association says the push is “concerning” and would likely lead to retailers cutting jobs and hours rather than retain higher-paid employees.

“There is so much on record about the number of shops closing and jobs lost, and then we hear the unions want to change the rates and make it even more uncompetitive,” Zimmerman says.

“The Government of New South Wales wants to employ more people – one of the areas people can be employed is in the retail industry.

“It’s where so many people start, even on a casual basis. I have very grave concerns that unions are looking in this area.”

According to the Australian Financial Review, the Australian Council of Trade Unions secretary Jeff Lawrence has confirmed that its retail worker unit would be pushing the junior wage case in the review of the Fair Work Act starting next year.

Zimmerman says the Australian Retailers Association is surveying its members about its submission to the Fair Work review, but highlights these area for change:

• Uncertainty over whether retailers can employ schoolchildren to work just 90 minutes after school, rather than three hours after several legal appeals on the issue.
• The future of penalty rates on weekends.

Zimmerman says the rates – workers are paid 1.5 times on Saturday, and double time on Sunday – are costly and leading to retailers either not opening on the weekend or running the shop themselves.

The sector, which Zimmerman says employs one in 10 people directly, was buoyed by CommBank figures on Friday showing retail spending was the highest it had been in 25 months in October.