Penalty rates under threat from retailers, Coalition

February 25, 2025
Issue 
Young people and those working in lower paid jobs rely on penalty rates to get by. Photo: Retail and Fast Food Workers Union members at the Invasion Day rally in Gadigal Country. RAFFWU/Facebook

The 聽(ACTU) has launched a campaign to push back against supermarket giants and other large employer groups wanting to abolish penalty rates in the retail sector.

鈥淧enalty rates鈥 are higher rates that can apply when a worker works evenings, weekends or public holidays. The Ben Chifley Labor government introduced them in 1947, after years of campaigning by the union movement.

The Australian Retailers Association (ARA) submitted an application to the Fair Work Commission on January 28, proposing to scrap overtime, evening and weekend penalty rates, work breaks and reduce rest times between shifts from 12 hours to 10 hours.

It wants any worker earning a miserable $53,670 and above on the retail award to lose their penalty rates, overtime, annual leave loading, allowances, breaks and protections around hours of work.

It said it鈥檚 proposal on by a 25% rise in pay, revealing that the penalty rates give workers higher pay overall.

ACTU Assistant Secretary Joseph Mitchell said the retail lobby鈥檚 proposals are 鈥渁n attack on retail workers鈥 ability to deal with cost-of-living pressures鈥.

the move to limit penalty rates. Employment minister Murray Watt told the ABC on February 21 that the move would risk entitlements for 353,200 workers.

The Fair Work Commission review is looking at the , which was prompted by the large number of submissions made to the broader modern awards review requested by former employment minister Tony Burke.

Coles, Woolworths, Kmart and Costco have joined the retail employers鈥 push to cut awards. If successful, it would apply to level four to six roles where employees earn between $53,670 and $61,958.

, the large retail employers made more than $7 billion in profits, as of last September.

Mitchell said while the supermarkets want these cuts to pay and conditions 鈥渦nder the guise of 鈥榳orkplace flexibility鈥,鈥 big business will 鈥渦se this as a precedent to push for lower wages in other industries, especially if the Coalition wins the election and rips open more loopholes鈥.

If the ARA鈥檚 proposal is agreed, it would mean retail workers in so-called 鈥渁ssistant managerial roles鈥 and above could choose to not be聽protected by maximum daily hours provisions.

If workers agreed to the pay rise, or salary absorption offer, they would forego their right to consecutive days off and would not be covered by the right to disconnect.

They would also waive their meal breaks rights.

A 200-strong Unions NSW meeting in the Sydney Trades Hall on February 21 condemned the ARA plan to remove penalty rates.

Jenny, a casual retail worker and full-time student, told the meeting that 鈥減enalty rates for after-hours work are essential for students and other part-time workers, who rely on the extra income to pay their bills鈥.

Raj, a security guard, said that penalty rates for night work and variable shifts were 鈥渧ital鈥 for migrant workers like himself to support their families in the cost-of-living crisis. 鈥淭hose of us in the security, cleaning and hospitality industries especially need to unite to defend our penalty rates.鈥

Watt and Labor Senator Tony Sheldon addressed the meeting, with Sheldon saying Dutton had 鈥渧oted 48 times鈥 against industrial relations reforms aimed at improving rights for workers and their unions.

[Sign the Unions NSW campaign to defend penalty rates .]

You need 麻豆传媒, and we need you!

麻豆传媒 is funded by contributions from readers and supporters. Help us reach our funding target.

Make a One-off Donation or choose from one of our Monthly Donation options.

Become a supporter to get the digital edition for $5 per month or the print edition for $10 per month. One-time payment options are available.

You can also call 1800 634 206 to make a donation or to become a supporter. Thank you.