Punishing workers by cutting wages and conditions will not solve retail’s problems

Published: 5/09/2011

Some of Australia’s lowest paid and most vulnerable workers would end up having their wages and conditions cut even further under flawed recommendations by the Productivity Commission.

The ACTU will today present evidence to a Productivity Commission inquiry into the retail sector which will show how retail workers could see their living standards eroded further by the removal or reduction of penalty rates and other basic conditions.

ACTU Secretary Jeff Lawrence, who will appear at the inquiry in Melbourne with Shop, Distributive and Allied Employees Association Secretary Joe De Bruyn, said the Productivity Commission had overstepped its mandate by rehashing factually incorrect employer claims about workplace relations in the retail sector.

“In its draft report, the Productivity Commission accepted unquestioned employer complaints about the award system that would essentially remove fundamental workplace rights that would lead to the reintroduction of WorkChoices by stealth,” Mr Lawrence said.

“Retail workers’ wages start as low as $17 an hour, and penalty rates, minimum starts and other conditions act as a safety net to provide them with a basic standard of living.

“The Australian community does not support a ‘race to the bottom’ approach that would see Australian workers paid wages and conditions of those in developing countries.

“The Productivity Commission was asked to look principally at the issue of placing GST on online purchases from overseas. It was not asked to undertake a review of wages and the award system, but this is what it has done.

“The retail sector is highly profitable, but it does face some future challenges. But punishing workers, by allowing employers to cut their wages and conditions, will not solve the problems faced by the sector.”

At today’s hearing, the ACTU will call on the Productivity Commission to remove the chapter about workplace relations from its final report into the retail sector.
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