Coronavirus: IR deal altered as car sales plummet

An ‘unprecedented slide’ in car sales had plunged the vehicle industry into crisis.

An “unprecedented slide” in car sales had plunged the vehicle ­industry into crisis, with employers warning of business closures and job losses.

The Fair Work Commission on Monday took into account the warning as it approved an agreement between employers and ­unions to change the vehicle ­industry award during the corona­virus pandemic. Unions agreed to temporarily allow car dealerships and repair shops to slash the hours of workers in the wake of a sustained collapse in new car sales.

The Australian Chamber of Commerce and Industry said the temporary changes were aimed at preserving the viability of businesses and to support employees not entitled to JobKeeper.

“This is an industry in crisis,” a joint employer submission to the commission said. “Naturally, the measures proposed in the application cannot arrest this unprecedented slide in vehicle sales.

“Employers will inevitably need to make difficult decisions about how they structure their businesses in future, which will likely involve some job losses and no doubt business closures.”

Employers said the award changes would enable companies to keep workers “gainfully employed to some extent, as an alternative to redundancies”.

The ability to direct employees to take annual leave, closing down operations for a period and cut employee hours would provide employers with means of maintaining their viability without involving redundancies.

The agreement allows for a temporary reduction in working hours for full-time and part-time staff — down to 60 per cent for full-time workers and 75 per cent for part-timers.

Employees with reduced hours can request secondary ­employment, training or professional ­development.

Employers can ­direct workers to take annual leave provided the worker retains a balance of two weeks’ leave.