Coles to pay casual staff $15m more in wages

Coles supermarket will have to pay its 17,000 casual workers as much as $15 million more a year in wages.

Coles supermarket will have to pay its 17,000 casual workers as much as $15 million more a year in wages after the industrial relations umpire intervened in a bargain struck between the supermarket and the shop assistants union.

A day after the issue of unions and companies colluding to undermine the workplace rights of staff was aired before the Royal Commission, the Fair Work Commission certified an agreement that unwound a cosy deal between the supermarket and its employees’ union.

The Fair Work Commission today approved the long-awaited agreement that will boost the pay cheques of casual workers aged 17 and 18.

However, some union officials argued the Commission did not go far enough and that the enterprise agreement leaves the majority of the long term workforce “underpaid”.

The Commission intervened to seek changes to the three-year workplace agreement between Coles and the retail union, the Shop, Distributive and Allied Employees’ Association (SDA) because it was concerned an initial agreement did not pass the “better off overall” test, when compared to the retail award.

Under today decision by Commissioner Bull, adult casual workers receive a 5% pay rise, 17-year-olds receive a 10% pay rise, and 18-year-old casuals receive 7.5%.

Non-casual 17 and 18 year olds will also be paid more than they would have under the previous deal. There was no concession on the deal for the rest of the workforce, however, which will be paid less than the award overall according to an analysis submitted to the commission.

Josh Cullinan, a union official who was not a party to the agreement, but sent the Fair Work commission an analysis of the deal said: “Never before have so many low paid workers benefited from the intervention of the broader community despite a deal done by an employer and a so-called union.”

He added: “However ... many thousands of ongoing adult staff will be worse off, particularly those who work on weekends and in the evening.”