Fair Work Commission to consider penalty rate cut timing reset in line with delayed minimum wage rise

Extraordinary circumstances have led to ‘very significant co-operation’ between employer and employee groups.

The Annual Wage Review Panel on June 19 determined that the country’s minimum wage should increase by 1.75 per cent. Picture: Jason Edwards

The retail sector workers union has argued that the final cut to Sunday penalty rates, due to come into effect next week, should be delayed until February 1 to coincide with the postponed lift in the minimum wage.

The Annual Wage Review Panel on June 19 determined that the country’s minimum wage should increase by 1.75 per cent.

However, in a concession to the intense pressure on shop owners from the restrictions associated with the COVID-19 crisis, the panel delayed the pay rise for employees covered by the general retail industry award from July 1 to the start of February, 2020.

In a submission to the Fair Work Commission, the Shop, Distributive & Allied Employees’ Association argued that there should be an “alignment” between the penalty rate cuts and the delayed wage increase.

“Part of the rationale for that commencement date in the penalty rates review decision was that employees would most likely be obtaining an increase in wages” from the start of the coming financial year, the SDA submission said.

“The implementation of the decision was staged in that way to ameliorate the effects of the reduction.”

The union said that the extraordinary circumstances associated with the health crisis had led to “very significant co-operation” between employer and employee groups in reaching variations to the awards.

In that vein, resetting the timing of the penalty rate cuts to coincide with the delayed minimum wage rise “will ensure that to some extent the burden is eased on those employees who are, no less than their employers, suffering from the effects of the dislocation arising from the pandemic”.

The Fair Work Commission will conduct a hearing into the matter on Monday, with the potential for a decision that day.