Labor’s plans to restore penalty rates will force businesses to close, Retail Association warns

The retail sector’s peak body has warned that if Bill Shorten wins the election, one of his policies will reduce jobs and force small businesses to close.

news.com.au May 11, 2019


The retail sector’s peak body warns the Labor Party’s promise to restore penalty rates will force small business owners to cut staff and drive many out of business.

Opposition leader Bill Shorten said last month he will scrap the industrial relations changes in the first 100 days in office if he claims victory at the election, and legislate to prevent the decision from being overturned.   :)

“Hundreds of thousands have had their penalty rates cut arbitrarily. They didn’t get an increase in the pay Monday to Friday; they just got a cut,” he told reporters at the time.

“We believe that the lowest paid workers in Australia, when they give up their time away from their family, when they serve and make sure the rest of us are having a great time, you shouldn’t have to pay for it with a cut to your own pay.”

The Australian Retail Association chief executive Russell Zimmerman says the sector is already on its knees, struggling to keep up with online competitors as profit margins continue to be squeezed.


Napoleon Perdis makeup stores were one of the Aussie businesses that went into receivership this year.

And the higher cost of business if wages are increased will force many into administration.

“What you’re going to see, especially in the small to medium enterprise sector, if things like penalty rates get over turned, is retailers will seek to reduce hours of their staff and there will be closures,” Mr Zimmerman told news.com.au.

“There certainly will be (small business) retailers that close their doors.”

The flurry of retailers going out of business last year, combined with the closures of chains Ed Harry and Napoleon Perdis this year, illustrates how frail the sector is, warns Mr Zimmerman.


He says retail employs more than 10 per cent of the working population and any further closures would be a “sad indictment” on the country’s state of business.

“We are an important part of the fabric of Australia’s economy and if we start to see retailers having to close their doors because of higher penalty rates … that would be a major shame for the industry but an even bigger shame for the economy.”



Brendan O'Connor says the Liberal Party’s cutting of penalty rates didn’t work.

Shadow minister for employment and workplace relations Brendan O’Connor told news.com.au the Coalition Government’s assurance that cuts to penalty rates would create more jobs did not eventuate.   :(

“The Council of Small Business recently confirmed that cutting penalty rates has not led to jobs growth, just real cuts to workers’ wages,” he said.

Australian Council of Trade Unions secretary Sally McManus called the changes to penalty rates an “own goal” and reinforced the notion that no jobs were created as a result.

“Instead, money was taken from 700,000 low-paid workers who have less to spend in retail shops,” she said.   :(

“It is not surprising retail sales have slowed. If low paid workers get a pay cut, so does small and medium business.

“Australians need a pay rise. These workers could not afford and did not deserve these pay cuts, only a change of government will fix it. 

Quote:

The retail sector’s peak body warns the Labor Party’s promise to restore penalty rates will force small business owners to cut staff and drive many out of business.

These guys don't mind a brazen lie or three.

Removing penalty rates has proven to have had no impact. No staff were employed and no additional businesses open their doors out of normal trading hours.

The arguments to justify reducing penalty rates were false and this comment is in the same category.

whiteknight wrote on May 12^th, 2019 at 6:33am:

Labor’s plans to restore penalty rates will force businesses to close, Retail Association warns

is this the same retail association that claimed cutting penalty rates would create jobs? :D :D :D :D

how many jobs were created? Zip, Nil, Nada, Nary a one.
Hours worked on sundays actually FELL after penalty rates were cut.

Given the past performance on their previous prediction, I'd put my money on increasing penalty rates actually creating more weekend work  8-)

John Smith wrote on May 12^th, 2019 at 9:15am:

whiteknight wrote on May 12th, 2019 at 6:33am: Labor’s plans to restore penalty rates will force businesses to close, Retail Association warns is this the same retail association that claimed cutting penalty rates would create jobs? :D :D :D :D how many jobs were created? Zip, Nil, Nada, Nary a one. Hours worked on sundays actually FELL after penalty rates were cut. Given the past performance on their previous prediction, I'd put my money on increasing penalty rates actually creating more weekend work  8-)

There is a high probability that the drop of employment in the industry was due to people walking away from employment in this industry due to the cuts.

Making this industry more attractive to workers may well have that impact.

Dnarever wrote on May 12^th, 2019 at 9:19am:

There is a high probability that the drop of employment in the industry was due to people walking away from employment in this industry due to the cuts. Making this industry more attractive to workers may well have that impact.

thats one side of it ... the other is that if you cut peoples disposable wages, they have less money to spend at cafe's and restaurants etc.

All true, lads - keep up the good work...