The passing of the Federal Government’s penalty rates bill undermines the independence of the Fair Work Commission and is a missed opportunity to create greater choice and flexibility that would lift salaries and improve job security, the Australian Retailers Association (ARA) and National Retail Association (NRA) said today.

ARA CEO Chris Rodwell said it was concerning that the Federal Government chose to intervene in the determination by an independent body by creating legislation that overrides the Fair Work Commission process.

Rodwell argues the law adds, “Yet another layer of regulatory burden which creates more problems than it solves.”

He says it shuts down a pay-setting option that would allow staff to roll penalty rates into their base pay.

He says the bill “effectively forbids businesses and their employees from negotiating,” despite modelling that base salaries could be lifted “by as much as 135%”

It seems penalty rates aren’t going anywhere

Rodwell also claims Australia’s IR framework is “not fit-for-purpose” and the bill’s “premise…is a fiction”.

Rodwell insists that “there has been no effort to abolish penalty rates,” and that retailers aimed to give workers more choice and job security.

Rodwell also criticised the reliance on enterprise and multi-employer bargaining, arguing that most small retailers lack the resources to utilise these pathways.

The result of the Federal Government’s actions, he warns, will be more red tape, lower productivity, and less confidence in the system.

None of which, he believes, will deliver better outcomes for Australia’s retail workers.