Big business launches bid to scrap penalty rates for retail workers
January 28, 2025 ACTU.
The ACTU warns that today’s proposal by Australia’s largest retailers to abolish penalty rates and cut minimum conditions for supermarket employees risks hurting some of Australia’s lowest-paid workers and sets a precedent for other employers to do the same.
Coles and Woolworths have joined forces with Kmart and Costco to publicly back the Australian Retailers Association’s application in the Fair Work Commission to scrap overtime, evening and weekend penalty rates, work breaks, and reduce rest times between shifts from 12 hours to 10 hours.
The ARA is proposing that any worker earning $53,670 and above on the retail award would lose their penalty rates, overtime, annual leave loading, allowances, breaks and protections around hours of work in exchange for a 25 per cent increase to buy-out award safeguards.
Woolworth and Coles are seeking to tear up the rules around working hours that saw them underpay workers by $500 million, citing rostering restrictions as part of the reason for the underpayments.
The retail industry made over $7 billion in profits as of September 2024.
Quotes attributable to ACTU Assistant Secretary, Joseph Mitchell:
“Australian Unions call on all political parties to pledge they will protect the penalty rates of working Australians from this type of corporate greed.
“Retail workers risked their health to keep supermarkets open during the pandemic. It’s outrageous for big companies like Coles and Woolworths to demand their undervalued workforce work longer hours with reduced protections and lower wages.
“The supermarkets are arguing for these cuts to pay and conditions under the guise of ‘workplace flexibility’ – the exact same management-speak used by the Dutton and the Liberals.
“Make no mistake: big businesses everywhere will use this as a precedent to push for lower wages in other industries, especially if the Coalition wins the election and rips open more loopholes. No one is safe from wage cuts if this goes through.
“The retail lobby’s proposals are an attack on retail workers’ ability to deal with cost-of-living pressures. Not only do these workers have to deal with price gouging from the big retailers like everyone else, but now they are also expected to stand by while the supermarket duopoly pushes to strip away their wages and conditions.
“The greed of these giant companies knows no bounds. Unfortunately, this retail plan is part of a broader agenda by big business to maximise profits by making their employees’ lives less financially secure.”