Click here for a copy of the new General Retail Award rates from Fairwork. It is important you take time to think about what you will do in your business about this. It is not as simple as applying the new rates, especially the lower penalty rates.
In March I wrote about why I will not apply the lower penalty rates in shops I own. In case you missed it, here is what I wrote then and stand by today:
Why I am not embracing the reduced Sunday penalty rates in my retail business
Here are my reasons for deciding to not embrace the Sunday penalty rates decision in my retail businesses:
- I value my employees. To pay them less as a result of the decision could suggest to them they are worth less. I have hated it when suppliers reduced margin or commission and argued then that they value me and my business less.
- I want to be competitive for good labour. Paying a competitive rate is key to this.
- The business reward. It is open to employees who are now told their pay will not be cut to return the favour to the business.
- Competition. A range of competitor business have made a similar announcement.
- While of economy fairness. While I agree with the decision, it should only be taken as a whole of economy review that fairly adjusts economic touch-points for all and not only salaried workers.
- Weighing everything up it is the right thing to do.
This is not a permanent decision. It is possible I will modify my position as the marketplace situation evolves. If I did and thereby embraced a saving in labour costs, I anticipate through would be invested in more hours.
All business owners need to reach their own conclusions on this matter. Unfortunately, as a country we are bereft of leadership on broader issues that should be confronted in any economic setting adjustment as has been done with Sunday penalty rates.
Think about what you feel is right for your business. This has to be a personal decision. The goal of this post is to encourage you to make your own decision, regardless of what the actual decision is.
I say make your own decision as there are implications for what you decide.
If, for example, you decide to not cut Sunday rates, there should be a benefit from employee engagement, as appreciation for your support. So, I would encourage discussion if this is your decision.
If, on the other hand, you decide to cut penalty rates, explain why this is important for the business and how that connects back to employees.
Unfortunately, this issue is highly politicised as a battle between classes. The reality in small business retail and small business generally is there is rarely a class. Indeed, employers often make much less than many in their workforce are paid.
Are all newsagencies in Australia covered under the General Retail Award? My employer is not meeting the requirements of the award.
Yes. If this is the case A you need to contact Fair Work right away. Make sure you have your roster details, pay slips and any other evidence.
Mark tells “A” to “contact Fair Work right away”.
How about having a chat with your employer first and try and sort it out?
Not sure about VIC but in WA that’s not true, if the store is a sole trader or unincorporated partnership or trust they come under the state award not federal.
Jon, I have not heard that the structure of an employer business determines the award under which employees are employed.
David, regardless of any chat with employer, Fair Work should be contacted as they will look at it from the employee perspective. Employers who pay according to the award have nothing to fear.
Mark, one thing that is overlooked in this discussion is that the people affected by this decision is a socio economic group whom we depend on:our customers. This group is becoming poorer in both relative and real money terms. We should remember that ‘demand’ means desire together the ability to pay. As retailer we are focused on creating desire, but we should remember that the less this socio economic group earns, the less retailers will sell.