Fast-food plea: hold the penalties

Employers want part-time fast food and retail workers to be able to agree to work extra hours without getting penalty rates.

Australian Industry Group chief executive Innes Willox says ‘union mania for rigid workplace rules’ risked undermining part-time work.

Employers will push for part-time fast-food and retail workers to be able to work extra hours without getting penalty rates, declaring “union mania for rigid workplace rules” risks undermining a legitimate form of employment that has worked well for decades.

The Australian Industry Group will use the Fair Work review of part-time employment to push for a new clause in the fast-food and retail awards that would remove automatic access to overtime payments if a part-timer worked more hours than initially agreed. Under the proposal, the clause could only be activated by agreement between the employer and employee. Employers said the current restrictions in the two awards meant they often had to employ casuals or labour hire in place of part-timers, and the new clause would give extra pay to part-timers if they were happy to work additional hours.

Ai Group chief executive Innes Willox said most awards contained clauses governing part-time employment that were far too complex and restrictive, with employers forced to engage staff as casual workers rather than on a permanent part-time basis.

“Ai Group has proposed that awards be varied to make it easier for employers to offer part-time workers additional hours without facing the need to pay penalty rates, where an employee agrees,” he told The Australian.

“The practical reality is that many part-time employees would value the opportunity to earn ­additional income from working extra hours from time to time, where an employer can offer it.”

He said the “sensible” change would greatly increase permanent employment opportunities across a range of industries.

“We can’t allow union mania for rigid workplace rules and regulation to undermine a legitimate form of employment that has worked well for employers and employees for decades,” he said.

“At a time of a cost-of-living crisis, the ability to provide ­additional work when it is available to the part-time workforce without major additional costs and restrictions should be a priority for the workplace relations system.”

ACTU president Michele O’Neil hit back at the employer claims, saying unions would ­oppose the business lobby push.

“Some employer lobby groups are proposing less protections, pay and certainty for part-time workers, including being able to unilaterally change hours and exclude overtime payments,” she said.

“Unions oppose this approach. It flies in the face of workers’ ­capacity to balance their work commitments with their obligations and lives outside of work, including caring for others. If employers succeeded, it would worsen the gender pay gap and make part-time work more ­insecure.”

Unions want workers to be given advance notice of 28 days for rosters, except in exceptional circumstances, with roster changes made by mutual agreement only. Some awards have zero or two-hour minimum payment periods and the ACTU is seeking a four-hour minimum ­engagement period as a baseline entitlement for workers, including part-timers and casuals.

AEG Ogden chairman Harvey Lister said that while it might be time for a review of part-time work arrangements, he was ­concerned flexibility be maintained for workers in the hospitality sector. “The hospitality sector, including conventions and entertainment, is spasmodic, meaning there can be a lot of events some months and then very few,” said Mr Lister, who runs Australia’s largest convention and stadium business.

Most workers in the hospitality sector are employed as casuals rather than part time, meaning different rules apply. “I know at Suncorp Stadium during the football season it can be very busy and then it just drops off,” he said.

He said people working in the sector also liked the flexibility of casual work, particularly if they were students. “They sometimes can only manage to do a few shifts each week,” he said. “It is not a matter of one size fits all.”

Flight Centre managing director Graham Turner said more flexibility in part-time work would be welcome as it could be difficult for firms, particularly small ones, to navigate the complexities of the current system. He said that while Flight Centre had some employees working from home, as a retail organisation most people had to work in shops and on the front line. “Hopefully, any changes in work-from-home rules will not ­affect us,” Mr Turner said.

Australian Chamber of Commerce and Industry director of workplace relations Jessica Tinsley said the commission review provided the opportunity to remedy confusing differences across part-time award provisions in modern awards, which particularly impact the retail, hospitality and fast-food sectors.

“It will be important that any standard term developed by the Fair Work Commission is fit for purpose. Critically, it must avoid the imposition of further restrictions on part-time employment, which has the potential to undermine the current flexibilities that such work provides,” she said.