Penalty rates for retail casuals to jump 25 per cent after Fair Work Commission decision

ACTU secretary Sally McManus hails decision that gives casual workers in the retail sector a 25 per cent bump to their Saturday penalty rates.

The FWC said it accepted evidence the hike would only result in a ‘small’ drop in casual employment.

Casuals in the retail sector will see a 25 per cent bump to their Saturday penalty rates phased in over the next three years, increasing the pay from 135 per cent to 150 per cent, following a Fair Work Commission decision that will also increase weekday rates for work after 6pm.

A full bench headed by president Iain Ross said the current casual rates for weekday evenings and Saturday work “lack logic and merit”.

The commission said it accepted evidence the hike would only result in a ‘small’ drop in casual employment “which would not have a significant impact” on the opportunities for young and disadvantaged job seekers to gain employment.

However it added that while the aggregate effect of the pay increase would be small, the impact may be more significant for individual businesses, depending on the extent to which they utilise casual employees at the times which will be affected by the variations.

The Shop, Distributive and Allied Employees’ Association celebrated the full bench decision as a “major win”.

National secretary Gerard Dwyer said the decision would result in significant pay increases for more than 350,000 retail employees on the Award and have flow-on effects for employees on enterprise bargaining agreements.

“These measures go some way to addressing the unjust treatment of casual workers under the Award who are not properly compensated for the absence of sick pay, annual leave and the insecurity of work,” he said.

ACTU secretary Sally McManus.

Australian Council of Trade Unions secretary Sally McManus said the decision was a major win by the SDA and the union had stood up to a “concerted and well-resourced campaign” by employers to cut workers’ pay.

“But the cuts to Sunday rates, along with earlier cuts show our system is out of balance and gives big business too much power,” she said.

“The Fair Work Commission should not be allowed to cut people’s pay.... We need to change the rules so that the Fair Work Commission can protect and advance the minimum standards in awards, instead of being pressured by big business to cut the pay of working people.”

The Australian Retailers Association executive director Russell Zimmerman slammed the SDA’s response as “two-faced”.

He said it was hypocritical of the union and the Labor Party to seek to overturn full bench decisions they didn’t like such as the decrease in Sunday penalty rates but back the commission on decisions they agreed with.

“The Modern Award system is already complex, and we are concerned the Australian Labor Party’s selective acceptance of Fair Work’s employment decisions will continue to jeopardise the Australian retail industry,” Mr Zimmerman said.

“We are disappointed with the casual employment decision, and would like to remind the Labor Party that the Fair Work Commission was established for a reason, and that they should not try to overturn an independent body when they don’t agree with their decisions.”

Mr Zimmerman warned the impact of the gradual hike would be felt as soon as it took effect in November as retailers considered whether they could afford the previous levels of casual staffing over the holiday period.

“Christmas trade is the biggest trading season for retailers, and these increases to casual workers pay on Saturday’s and weekday evenings will certainly impact on trading hours around the country,” he said.

“Retailers have two options — either try and cut staff or increase prices,” he said.

Shadow workplace relations minister Brendan O’Connor today announced an elected Shorten government would restore penalty rate in their first 100 days and legislate so rate could never be cut.

“Penalty rates are not a luxury, they are what pay the bills and put food on the table,” he said.

Industrial Relations minister Kelly O’Dwyer said sometimes political parties didn’t support decisions by independent umpires like the Fair Work Commission.

“But Labor only wants to accept decisions they and their union boss mates like,” she said.

“Australians know that is contrary to every notion of fair play. And just like if it happened on a football ground this weekend it is a recipe for chaos.”