Retailers across Australia struggled to open their doors this Easter weekend due to excruciatingly high labour costs associated with public holiday penalty rates.
Australian Retailers Association (ARA) Executive Director Russell Zimmerman said penalty rates of up to two-and-a-half times regular pay prompted some businesses to close over the weekend.
"Excessive penalty rates not only hurt business owners but also impact on the shopping experience which is so crucial to a retailer’s capacity to compete.
"Retailers are prevented from engaging the number of employees that will provide the best customer experience – they’re forced to operate with a lower number of employees than required and this also means that older, more expensive employees are disadvantaged compared to younger, lower cost employees when it comes to allocation of hours over public holidays.
"Penalty rates must be addressed to allow businesses to respond to their customer’s needs, rather than having to try to fit their allocation of labour to an antiquated system. Times have changed and penalty rates must keep pace with the modern retail industry.
"Penalty rates were introduced in the early 1900s as compensation for employees’ work performed outside ‘normal’ hours. But, as well all know, standard working hours no longer fit the traditional pattern of 9 to 5, Monday to Friday. Technological, economic and demographic changes have contributed to what we now accept as a 24/7 lifestyle.
"The ARA believes penalty rates should be determined by an appropriate regulatory body within an appropriate regulatory framework. Our recent submission to the Productivity Commission outlined our view that penalty rates must be addressed as a matter of urgency.
"The ARA and a number of other industry associations will be providing materials to the FWC as part of this matter which will be of relevance to the Productivity Commission’s consideration of the basis for, and mechanisms for the setting of penalty rates.
"In order to create more employment opportunities for Australians, retail wages need to be flexible," Zimmerman said.