New data from the ACTU reveals that over 85,000 South Australian workers could be impacted by the Fair Work Commission’s ruling on the Australian Retailers Association’s application to abolish penalty rates and other key entitlements.
Unions warn that a successful application risks setting a precedent for penalty rate cuts in other award-reliant industries, including hospitality, health care, fast food and administration.
Australia’s largest retail companies have publicly endorsed the application, including Coles, Woolworths, Kmart, Barbeques Galore, Costco, 7-Eleven, and Mecca Cosmetics.
The Fair Work Commission’s ruling risks directly impacting permanent award-reliant workers as well as workers on enterprise agreements or contracts that these awards underpin.
The Retailers Association application covers permanent workers on the retail award earning $53,670 or more – only $6,000 more than the national minimum wage of a full-time worker and well below the ‘low paid’ threshold the Fair Work Commission considers when updating award wages.
The Retail Association proposes scrapping overtime, evening and weekend penalty rates; eliminating work breaks or ‘smoko’ breaks; reducing rest times between shifts; and removing annual leave loading, allowances, and protections around work hours– in exchange for a 25 per cent increase to buy-out award safeguards.
The retail industry made over $7 billion in profits as of September 2024.
In 2017, the Fair Work Commission decided to reduce penalty rates for people working in fast food, hospitality, retail and pharmacy. Opposition Leader Peter Dutton and the Coalition voted eight times against moves to restore penalty rates for those workers.
The Coalition has yet to comment on whether they rule out cuts to penalty rates if they win the upcoming election.
“These massive corporations and the business lobby are backing this assault on workers’ pay while raking in billions in profits. Instead of rewarding the workers who keep their businesses running, they’re trying to strip away penalty rates, break entitlements, and drive wages down even further.”
“The last time penalty rates were cut, the Liberal Party cheered it on. Now, Peter Dutton and the Coalition refuse to rule out further cuts if they win the next election. Workers deserve to know if their take-home pay is on the chopping block.”
“This isn’t just about retail—if the Fair Work Commission approves this attack on penalty rates, 85,000 South Australians in hospitality, healthcare, fast food, and admin workers will be next. SA Unions will fight this every step of the way to protect the wages and conditions of South Australian workers.”
“Big Business has shown their hand, they’re coming after your rights at work and Peter Dutton isn’t going to do a thing to stop them.”
| Award reliant industries at risk | permanent employees working overtime in SA (August 2024) |
|---|---|
| Retail Trade | 14,900 |
| Accommodation and Food Services | 6,500 |
| Administrative and Support Services | 4,900 |
| Healthcare and Social Assistance | 47,000 |
| Arts and Recreation Services | 4,300 |
| Other Services | 5,900 |