Sunday penalty rates increases since the introduction of award modernization (full time employees) Year NSW South Australia Queensland 2009( prior to award 50% 60% 50% modernization) 2010 60% 68% 60% 2011 70% 76% 70% The benchmark for the Sunday penalty rates in the retail industry was the former Victorian Shops award, where the Sunday penalty rate was already 100%, which meant that some States are required to significantly increase their wage rates upwards to meet the common denominator. As retailers continue to feel the impact of annual wage increases they are also compelled to be cognizant of the increases in the penalty rates over the next few years when they consider creating job opportunities. It should be noted that although the increases in the Sunday penalty rates are a major concern, there are other high penalty rates in the modern award that continue to cause difficulties for employers including the 250% penalty rate on public holidays in most States and Territories which ranges between $44.97 per hour for a casual employee in the Northern Territory to $47.20 for a casual employee in the ACT. Award modernization may have a positive result in the retail industry in that ultimately one award will prevail throughout Australia, but uniformity will come at a price for the retailers and for the employees. Employers will not be in a position to sustain the high rates, payable under the modern award, and therefore job numbers will be reduced and job growth is highly unlikely in the independent supermarkets in the future. The combination of casual employment restrictions, the increases to penalty rates and the lack of flexibility will continue to inhibit growth amongst independent retailers and consequently productivity is likely to remain at a low ebb for some time unless there are significant changes. Agreement making. In the period 2007- 2009 independent supermarkets were enthusiastic about making enterprise agreements. During that period employers were required to satisfy either the
Sunday penalty rates increases since the introduction of award modernization (full time employees) Year NSW South Australia Queensland 2009( prior to award modernization) 50% 60% 50% 2010 60% 68% 60% 2011 70% 76% 70% The benchmark for the Sunday penalty rates in the retail industry was the former Victorian Shops award, where the Sunday penalty rate was already 100%, which meant that some States are required to significantly increase their wage rates upwards to meet the common denominator. As retailers continue to feel the impact of annual wage increases they are also compelled to be cognizant of the increases in the penalty rates over the next few years when they consider creating job opportunities. It should be noted that although the increases in the Sunday penalty rates are a major concern, there are other high penalty rates in the modern award that continue to cause difficulties for employers including the 250% penalty rate on public holidays in most States and Territories which ranges between $44.97 per hour for a casual employee in the Northern Territory to $47.20 for a casual employee in the ACT. Award modernization may have a positive result in the retail industry in that ultimately one award will prevail throughout Australia, but uniformity will come at a price for the retailers and for the employees. Employers will not be in a position to sustain the high rates, payable under the modern award, and therefore job numbers will be reduced and job growth is highly unlikely in the independent supermarkets in the future. The combination of casual employment restrictions, the increases to penalty rates and the lack of flexibility will continue to inhibit growth amongst independent retailers and consequently productivity is likely to remain at a low ebb for some time unless there are significant changes. Agreement making. In the period 2007- 2009 independent supermarkets were enthusiastic about making enterprise agreements. During that period employers were required to satisfy either the