The Australian Retailers Association (ARA) has warned that retailers opening their stores on the Easter public holidays this weekend will be forced to bear the brunt of higher costs, with penalty rates applicable for up to four days in some states.
“Consumers are expecting retailers to be open and trading this Easter long weekend where laws allow, and retail businesses will be forced to wear the higher costs as a result,” says ARA executive director, Russel Zimmerman.
The ACT, NSW and Victoria all recognise Good Friday through to Easter Monday as public holidays, and the ARA believes many retailers won’t open at all over the long weekend because the cost of labour associated with public holiday rates is too high.
Zimmerman says that changing lifestyles in Australia mean that standard working hours in 2016 no longer fit the traditional pattern of ‘normal’ hours being 9 to 5 Monday to Friday, and so penalty rates need to change to reflect this.
“For most Australians, weekends and public holidays are seen as normal shopping days, making above the norm penalty rates unnecessary,” says Zimmerman.
“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.”
The ARA is currently engaged in a review of the General Retail Industry Award 2010, with a view to reducing costs for retailers, which Zimmerman says would benefit the community and economy.
“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,” he explains.
“With youth unemployment rates increasing at a rapid rate, and retail one of Australia’s largest employers, this change will enable businesses to employ more staff, thereby helping to reduce unemployment levels, particularly in the sector of under 25s.”
For more information on penalty rates: www.fairwork.gov.au
By Ruth Cooper
