Shrinking elasticity for Vic retail employers

Thousands of Victorian fashion retailers may find the flexibility of their staffing arrangements impaired following the introduction of a common rule award for shops.
The award was introduced on August 3 by the Australian Industrial Commission (AIRC), eight months after the introduction of the Clothing Trades Victorian Common Rule Award 2005.
During the intervening period the Australian Retailers Association of Victoria (ARAV) negotiated with the Shops union for better terms for employers, while employment provisions for shops remained under Victorian industry sector rules.
ARAV industrial relations manager Suzie White claimed the body had been successful in achieving more favourable penalty rates and hours of work for its members - around 12 per cent of which are fashion retailers.
However the legislation - which came into force on August 18 - was still "highly complex and more onerous than the previous system", she said.
"Some of our members will cope, some will not, depending on how they trade," she added.
Fashion chain Kookai - which is owned by clothing giant Republique - claimed it was relieved that "finally" Victoria was in line with other states, each of which has its own award.
However Republique human resources manager Arlene Reid said the numerous minimum requirements in the award would probably be "fiddly to administrate".
The award might impact heavily on large chain stores with a high proportion of casual workers, she added.
"Until now, part timers could work different shifts each week. Now all their shifts will have to be written into their contracts and anything above that would be considered overtime. This means there will be less flexibility for employers."
Reid said the change might induce retailers to move to an Enterprise Bargain Agreements (EBA) system or renegotiate existing EBAs where they did not match the requirements laid out in the common rule award.
A major difficulty for national retailers was the fact that each state was governed by different legislation, she said.
"This means different conditions such as leave entitlements and salaries for each state, which are very tricky to keep track of."