Thousands of workers in western Sydney could lose crucial penalty rates and workplace entitlements if the Australian Retailers Association’s application to the Fair Work Commission succeeds, new data has revealed.
The proposed cuts seek to abolish overtime, weekend and evening penalty rates, reduce rest time between shifts, remove work breaks and scrap annual leave loading for retail workers.
In exchange, workers will receive a salary increase of 25% under the proposal, which falls seriously short of compensating for the significant loss of these protections.
If successful, the application could set a precedent for penalty rate cuts in other award-reliant industries including hospitality, health-care, fast-food and administration.
According to ABS data, 8,140 permanent award-reliant workers in Parramatta would be affected by the proposal, losing thousands of dollars of hard-earned money.
Secretary of Unions NSW Mark Morey said the changes undermine hard-fought worker protections and severely impact low paid employees already struggling to make ends meet.
“Retailers are making billions in profits so it’s disgraceful that they’re targeting the penalty rates and entitlements of the very people who keep their businesses running,” Mr Morey said. “This is a cash grab at the expense of hard-working Australians.”
The proposed cuts target retail workers earning just $53,670 per year - just $6,000 above the minimum wage and far below the Fair Work Commission’s definition of a low paid worker.
The move is backed by some of Australia’s largest retailers including Coles, Woolworths, Kmart, Costco, Mecca Cosmetica and 7-Eleven.
“We’ve seen this happen before. When penalty rates were cut in 2017, workers across retail and hospitality lost thousands from their annual pay,” Mr Morey said. “We can’t let history repeat itself. These cuts will hit the lowest-paid workers hardest, especially in regions where penalty rates are vital to making ends meet.”
Opposition Leader Peter Dutton and the Coalition voted eight times against moves to restore penalty rates for workers in fast-food, hospitality, retail and pharmacy since 2017. The Coalition is yet to comment on whether it will rule out cuts to penalty rates if they are successful at the 2025 federal election.
Contact details:
Lauren Ferri: 0422 581 506 // lauren@hortonadvisory.com.au