While convenience stores are set to capitalise on the upcoming Easter long weekend they will still be forced to bear the brunt of much higher costs, with penalty rates applicable for up to four days in some states and as high as double time and a half.
The Australian Retailers Association (ARA) says penalty rates of up to two and a half times regular pay will place financial pressure on all retail businesses, with small and medium businesses to be the hardest hit by the additional costs. The ARA believes retail penalty rates must be addressed to allow business to respond to customer needs, rather than having to fit their allocation of labour to an antiquated system.
Good Friday (March 25) and Easter Monday (March 28) are national public holidays, but in some states and territories, Easter Saturday and Easter Sunday are public holidays. The ARA is currently engaged in a review of General Retail Industry Award 2010 (GRIA), with the view to reducing costs for retailers, particularly on Sundays, with the independent arbitrator, Fair Work Commission (FWC).
It is seeking to have regular Sunday penalty rates reduced from double time to time and a half. The Government’s Productivity Commission report has recommended penalty rates be lowered to 125 per cent (time and a quarter) which would bring Sundays in-line with Saturdays.
Russell Zimmerman, executive director of the ARA, said excessive penalty rates not only hurt business owners, but impact on the shopping experience, which is crucial to a retailer’s capacity to compete.
“Retailers will be forced to operate with a lower number of employees than required, and workers will have to be offered less hours of employment in order for retailers to afford penalty rates over the Easter long weekend.”
Penalty rates were introduced in the early 1900s as compensation for employees’ work performed outside ‘normal’ hours, however, in 2016, standard working hours no longer fit the traditional pattern of 9 to 5, Monday to Friday.
“A reduction in penalty rates will have a number of benefits for the community and economy, in addition to cost reductions for retail businesses. Retailers would be able to afford to employ more staff for more hours, which will lead to more money in the pockets of these workers, increasing their spending power and a stronger economy overall,” Mr Zimmerman said.
“Penalty rates should be determined by the FWC within an appropriate regulatory framework, and we look forward to collaborating with the Government to ensure the needs of both retail businesses and their employees are met by any changes that may occur to the payment of penalty rates.”
Also in support of a review into penalty rates is the Australasian Association of Convenience Stores (AACS). Speaking to C&I Week, AACS CEO Jeff Rogut said: “Penalty rates affect the franchisees and the owners, and when times are tough it means they are reducing their profitability. In many cases franchisees and owners are putting in a lot more hours themselves if they having difficulty in paying the additional costs.”
“Our members don’t close [during Easter] because it’s a very important time of year, after all we are in the business of convenience. We do recognise that there should be some additional benefits for employees working additional holidays and weekend but not to the extent that it is at the moment because it is excessive in some cases,” Mr Rogut said.
Bob Little, deputy chair of the SPAR Guild Council, told C&I Week: “At some point in time it will have to be accepted that the supermarket industry is a seven day business and most people expect us to be open every day, especially convenience stores.”
“Paying double time and a half what you normally pay means you throw away a considerable amount of profit. Not only that, you are paying your full and part time employees for not being at work. Sometimes you feel like you are open for no financial gain,” he said.
Alf Maccioni, CEO of the Australian Newsagents’ Federation, said the association would like to see more moderate penalty rates on public holidays.
“Trade is getting better but when you get a batch of all these public holidays in one go it does affect trade, double time is a lot of money for a retailer.”
If retail and hospitality workers are not adequately compensated, will they continue to work after 5 PM, weekends and public holidays? I would not like to. I am being very inconvenienced so that the convenience outlet or venue can operate it’s musical boxes (tills.) Then telling me to continue in my job or be sacked amounts to emotional and financial blackmail. Seems like greed, profitability and pandering to business far exceeds the welfare of workers. In general, as I am rostered weekends, a drop in the penalty rates will leave me far worse off. Even more sinister is the terrible possibility of being sacked because I refuse to obey an order to work the inconvenient hours for less money. Ever seen a productivty commission or employers body recommend higher pay when it’s often cut, cut, cut? Operating from ivory towers with fat salaries, such so-called experts are clueless what happens at the coal face; either that or they have entirely forgotten what it is like to be a lowly, hourly paid worker. Most of us are causual workers; we get: no paid 3 or 4 weeks holiday, no paid carers leave, no paid compassionate leave, no paid sick leave, no paid sabbatical leave, minimal increases, no easy access to credit and no respect. Even if we become permanent part-time workers, overall pay is not that much better than being on the casual rates. Telling get me that I will have more time with the family is such a furphy; with less money, how are we going to enjoy ourselves. What must we do; watch the leaves fall from the trees, as that’s free to do? Bull dust really baffles brains.