Public Affairs & Policy
The NRA represents the views of retailers and the service sector to governments and policy makers. We take the opportunity of our regular meetings with Ministers and bureaucrats around the country to express the views and concerns of employers.
Politicians, from the Prime Minister down, have attended our meetings and functions. We have also hosted decision makers such as the Chairman of the Australian Competition and Consumer Commission and the Governor of the Reserve Bank.
Issues such as education and training, industrial relations, trade practices and taxation have all been on the agenda at these discussions.
We can also help on an individual basis if you need an issue raised with a politician or bureaucrat, or if you need submissions made to government or require advice about issues management.
Current Activity
NRA Sets Out to Fix Modernisation Anomalies
The National Retail Association (NRA) is Australia’s largest and most representative retail organisation with over 3000 members and affiliates located across all Australian states and territories. Its membership includes the majority of Australia’s national retail chains and extends across the retail take-away food and fast food sectors.
The NRA has applied to the Australian Industrial Relations Commission to vary the content of the General Retail Award 2010. NRA’s Executive Director Gary Black says that “the lodgement of the application follows general expressions of concern from across the retail sector at the damage the proposed new award will cause in terms of retailer profitability and viability, and the loss of job opportunities, particularly for young people”.
“NRA and its membership does not accept that the phasing-in of labour cost increases resulting from the operation of the modern award is an appropriate fix for the broken promise that the award modernisation process would not result in increased labour costs.“
Apart from asking the AIRC to revisit prior decisions which have the effect of significantly increasing labour costs, NRA has pointed out “that the modern award discriminates against small business and businesses which do not operate shopping centre hours.“
“NRA has long advocated that the adoption of a Melbourne shopping centre award as the template for the Australian retail sector is entirely inappropriate. There are many retail businesses who trade substantially different hours to shopping centres and these additional or different hours make an important contribution to the success of such businesses and serve particular community needs. Accordingly the modern award should incorporate provisions which reflect the actual operating hours of businesses and not apply a “one size fits all shopping centre model” in the crafting of provisions which employers reasonably expect to reflect a contemporary or modern operating environment.”
“Liquor store operators in NSW are one example. These stores typically trade through until 10pm at night – Monday to Sunday. The current award (NSW Shop Award) specifically recognises these longer and different hours and overtime rates are not payable until after 10pm. In the modern award however overtime is payable after 9pm at night Monday to Friday, and after 6pm on a Saturday and Sunday. “
“Another example is independent supermarkets in Queensland. At present the Queensland award recognises that these businesses trade longer hours and fixes a closing time of 12midnight for ordinary hours. These businesses trade longer hours because larger supermarkets in Queensland close at 9pm and there is a need to service consumers and tourists across longer hours.“
Mr Black said that “the current modern award will force these and many other employers (typically small businesses) to pay significantly higher penalty rates and overtime rates, and the imposition of these additions to labour costs will mean businesses will be less viable and will cut operating hours, reducing employment and curtailing the delivery of important services to consumers in general and where relevant tourists.”
NRA has urged the AIRC to address the discriminatory or anti-small business provisions currently included in the modern award.
NRA is proposing that the AIRC make the following key amendments to the draft award before its release on 1 January 2010:
1. Reduction of the Sunday penalty rate from 200% to 150%;
2. Reduction of the Sunday penalty rate for casual employees so that it mirrors the part time rate. This will mean casuals on Sundays would be paid 150% of the part time rate. Currently the award provides that casuals are paid 225% of the part time rate for work performed on Sundays;
3. Removal of the overtime penalties where part time employees work in excess of their agreed hours;
4. The application of a more sustainable and practical set of classifications for supervisory and shop management levels.
5. An extension of ordinary hours of work for businesses which currently trade outside the ordinary hours prescribed by the award. This would allow ordinary hours to be worked up until 11.00pm, 7 days per week
A copy of the application can be found by clicking here.
Mr Black said that it was important for the AIRC to note that “retailers continue to face a very difficult trading environment. Rising interest rates, job insecurity and the removal of stimulus measures, will directly and negatively impact on the discretionary spend of many consumers going forward. Additionally for many retailers year on year sales are showing a reduction in turnover of between 5% and 10%. This is not an environment in which unbudgeted an unexpected labour cost increases should be imposed on retailers.”
“Young people will be most affected by the revenue and cost pressures on retailers. One in every two young persons relies on retail for employment and the youth unemployment rate at present is around 17%. Less job opportunities for young people is bad news for thousands of young people about to complete schooling and enter the job market.”
Summary of Key Issues from National OHS Review as at May 2009
The tables attached provide a summary of key issues arising from the National Review into Model Occupational Health and Safety Laws, taking into account the Panel’s recommendations and the Workplace Relations Ministers’ Council’s response.
The first table lists key positives arising from the proposed model OHS Act that are likely to be positive overall for employers, while the second table lists key concerns. The issues are in approximate rank order of strength of concern (e.g. listed by issues of most concern down to issues of less concern), therefore the most significant positives or concerns should be found towards the top of each table.
To view tables click here
Modern Awards But Job Prospects for Young People are History
Recent employment data shows that youth unemployment is rising rapidly. The unemployment rate for young males has risen from 11.9% in February 2008 to 17.9% in February 2009. Over the same period unemployment for all persons has risen from 3.9% to 5.2%.
In the 1980’s recession the male youth unemployment rate peaked at 26% in July 1983, while in the 1990’s recession the same rate peaked at 26.1% in February 1993. Youth unemployment is now trending to crisis levels in the current recession.
In the circumstances, a focus on measures which preserve jobs for young people should be a high priority for all. Not unfortunately for the Australian Industrial Relations Commission! Inadvertently or otherwise the AIRC has singled out the retail and fast food sectors, which provide work for more than half of all young people in a job, for unprecedented wage increases which will cripple some businesses and substantially curtail the operating hours of others.
To view media statement please click here
NRA submission to AIRC regarding exposure draft of Retail Industry Award 2010, October 2008.
The NRA has warned the AIRC, in a joint submission with ANRA, that the exposure draft of the Retail Industry Award 2010 will have devastating effects in the very broadly defined “retail industry” and will result in significant labour cost increases for almost every retailer. The NRA has submitted that the AIRC has failed to comply with the Minister’s request to perform the task of award modernisation without increasing costs for employers. The exposure draft will result in cost increases of up to 50% on current arrangements for some retailers.
The key elements of the NRA submission are:
- The modern retail industry award must comply with the Minister’s request not to increase costs for employers;
- The penalty rates do not reflect the modern retail industry (ie penalty rate after 6pm, double time on Sundays);
- The current “seven day shift worker” definition will add significant costs and administrative obligations and should be amended in line with the Workplace Relations Act;
- The part time provisions should allow a reasonable degree of flexibility;
- The casual loading of 25% is too high and should be reduced;
- The classification structure is unwieldy and needs to be rationalised, with a requirement for supervisors to be appointed;
- The modern award should not extend award coverage to shop managers;
- The special clothing reimbursement (laundry allowance) is unrelated to the actual cost of laundering uniforms and is an unjustifiable cost increase to all retailers operating outside of Victoria;
- Providing voluntary Sunday work is out of touch with modern retail industry;
- Fast food, video hire, hairdressing and beauty, and community pharmacy should be dealt with in separate awards to mainstream retail;
- Small business should be exempt from redundancy provisions;
- Employers should be free to nominate any complying default fund for superannuation.
NRA submission to SafeWork SA regarding proposed Child Employment Legislation, October 2008.
The NRA has cautioned the South Australian Government against introducing legislation regarding child employment that may act as a disincentive to youth employment by adversely impacting on employers through the introduction of complex and costly compliance burdens. In its submission to SafeWork SA, the NRA has argued that if legislation is introduced, it should:
· not seek to fundamentally alter the employment conditions that would ordinarily apply to the employer;
· not regulate the employment of minors, but should be limited to children of compulsory school age only (i.e. under 16 years);
· limit any restrictions on hours of work to school days and school weeks;
· not introduce any new record keeping obligations;
· allow for a simple process for applying for exemptions in special circumstances.
NRA submission to Parliamentary Joint Committee on Corporations and Financial Services inquiry into the Franchising Code of Conduct, September 2008.
The NRA has questioned the need for a further inquiry into the Franchising Code of Conduct as frequent inquiries into the code inevitably cause uncertainty and contribute to a destabilising effect on the franchising sector. In its submission the NRA has argued that:
· The current review is not justified;
· The scope of the review is too broad;
· The Code should not be amended to interfere with commercial arrangements entered into freely by the parties;
· The Code should not be amended in respect to the treatment of “good will”, as it will inevitably lead to higher costs;
· The Code should not be amended to incorporate “good faith” obligations, as adequate
· Further regulation of the franchising sector should be avoided.
Productivity Commission Draft Report into Paid Parental Leave, September 2008.
The Productivity Commission has released its draft report into paid parental leave. The key elements of the draft report are:
· Tax-payer funded 18 weeks paid parental leave for the primary caregiver;
· Paid at the federal minimum wage (currently $543.78/week) or relevant junior percentage;
· Additional 2 weeks paid paternity leave on a “use it or lose it” basis;
· Employee must have worked an average of at least 10 hours per week for 12 months prior to expected date of birth;
· Employers required to act as paymaster for paid parental leave for eligible employees;
· Employers required to pay 9% superannuation on parental leave payments for eligible employees.
To view the Productivity Commission’s draft report please click here
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