ARA slates new draft award

NATIONAL: Peak retail industry body the Australian Retailers Association (ARA) has lambasted a draft retail award from the Australian Industrial Relations Commission (AIRC) for ignoring Minister for Workplace Relations Julia Gillard's objectives for modernisation. ARA executive director Richard Evans said the draft award - handed down on September 12 - was over simplified and failed to respond to demand for a modernised  penalty rate structure for retailers that recognised "a modern deregulated retail market."

"Minister Gillard's call for modernisation has been sacrificed for a more conservative simplification and rationalisation outcome. Modern workplaces, modern consumer demands and modern workforce arrangements have not been acknowledged in the draft award.

"The ARA's submission to the AIRC strongly recommended a retail award (for 1.2 million employees) should reflect community demand for deregulated shopping hours by producing penalty rate structures within the context of a seven day / 24 hour trade period - but this has been ignored. The penalty rate structure in the draft award is reminiscent of the 1960's regulated market of Monday to Friday working weeks. This is not flexible enough for the modern retail market," Evans said.

"The modern consumer wants seven day trade, and in some cases, 24 hour shopping access. Retail is very competitive and driven by consumer demand. A retailer should not be penalised for being open to meet consumer demand, but under the current structure for penalty rates they are. Penalty rates such as overtime and loadings should take effect after prescribed working hours and not prescribed days."

The new draft retail award provided more bad news to the retailers already hit hard with this year's interest rate increases and rising petrol prices, Evans said.

The ARA would work with retailers and industry groups to respond to AIRC the within a pre-set two week deadline, he confirmed.