ARA proposes two-stage transition for penalty rates

To create more jobs and offer additional hours.

The Australian Retailers Association (ARA) supports a two-stage transitional pay arrangement of the Sunday penalty rate reduction. This phased approach will allow retailers to implement the benefits of the penalty rate reduction in terms of additional hours of work and employment opportunities in a reasonable manner.

The ARA proposes the Sunday penalty rates reduction for permanent and casual employees be reduced to 175% from 1 July 2017. The second stage of this transitional arrangement proposes Sunday penalty rates for permanent employees be reduced to 150% from 1 July 2018.

ARA executive director, Russell Zimmerman, said phasing in these changes will assist retailers across the industry in creating more jobs, offering additional work hours and increasing levels of service to the community.

“After speaking with our members and legal providers, we propose the Sunday penalty rate reduction be phased through a two-stage pay arrangement. Based on the evidence presented to the Commission during this industry-wide case, employees in the industry would experience no, or very marginal, negative impact, as a result of this phased approach,” Zimmerman explained.

“Implementing a two-stage transitional pay arrangement for the reduction in Sunday penalty rates will allow retailers to roster additional staff on a Sunday, and give more employment opportunities to young workers seeking both extra hours and new employment over the weekend,” he added.

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