In an unexpected move, some of Australia’s largest retailers have joined forces in support of a controversial application submitted to the Fair Work Commission (FWC) by the Australian Retailers Association (ARA). Backed by major industry players such as Woolworths, Coles, Kmart, and Costco, the application proposes significant changes to the General Retail Industry Award 2020 (GRIA), putting the retail sector at odds with unions and worker advocacy groups nationwide.
The ARA’s submission outlines 17 proposed amendments to the award, with one particularly contentious change raising alarm among the Australian Council of Trade Unions (ACTU). According to the ACTU, the proposal would see retail workers earning $53,670 or more under the award lose their entitlement to penalty rates, including overtime pay, annual leave loading, allowances, and designated work breaks. Instead, these protections would be replaced with a 25 per cent salary increase intended to compensate for the lost entitlements.
Defending the proposed changes, the ARA argues that the current award structure is overly complex, creating confusion for both employers and employees.
“The ARA acknowledges that the current framework, which spans 96 pages and includes 994 individual pay rates, is unnecessarily intricate and does not align with the evolving needs of the retail workforce. This complexity makes it difficult for businesses and workers alike to fully understand entitlements and embrace flexible working arrangements,” the association stated.
“The proposed amendments aim to provide clear and transparent guidelines on employment conditions, ensuring that retail employees are fully aware of their rights while also promoting greater adaptability in workplace arrangements.”
“Our focus is on modernising the system to strike a fair balance between the needs of workers and the operational requirements of retailers.”
However, the ACTU remains deeply sceptical, accusing Coles and Woolworths of attempting to dismantle long-standing worker protections, particularly in light of past wage underpayment scandals that saw employees short-changed by a combined $500 million.
“Australian unions urge all political parties to commit to safeguarding penalty rates and protecting workers from this kind of corporate opportunism,” said ACTU assistant secretary Joseph Mitchell.
“Retail employees worked tirelessly through the pandemic, often putting their health at risk to keep essential stores running. It is disgraceful that major retailers like Coles and Woolworths are now pushing for changes that would see their already undervalued staff working longer hours with fewer protections and lower pay.”
Mitchell warned that if these amendments are approved, they could set a dangerous precedent for other industries, opening the door to further wage reductions under the guise of ‘flexibility’.
“The language being used to justify these cuts—framing it as ‘workplace flexibility’—mirrors the rhetoric of Peter Dutton and the Liberal Party,” he stated. “If these changes go ahead, they will create a flood of new loopholes that allow big business to slash wages across multiple industries.”
“The agenda here is clear: maximise corporate profits by eroding workers’ financial security. This isn’t just a retail issue—if these proposals succeed, no worker in Australia will be safe from the threat of wage cuts.”
As the battle lines are drawn, the outcome of the FWC’s decision will have far-reaching implications for retail employees and could shape broader discussions around workplace rights and wage protections in Australia for years to come.
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