Retailers lose bid to stall pay rise

As reported in The Australian 25th June 2014

RETAILERS have failed to delay wage rises due to be paid to young workers from next week, after the Federal Court found the rises would have little impact on employers.

The National Retail Association sought a stay on a Fair Work Commission ruling that 20-year-olds should get the same pay as 21-year-olds.

In March the commission found 20-year-olds should receive the full adult rate of pay instead of the 90 per cent currently offered, saying there was little difference in duties and skills between the two age groups.

Under the decision, the pay of 20-year-olds increases to 95 per cent of the adult rate from July 1 and to 100 per cent from July next year. The association was seeking a stay pending an appeal before a full federal court starting in August.

In its judgment yesterday, the court found there was no tangible evidence that pay rises could not be recovered if the commission decision was overturned on appeal.

“The fact that 20-year-old employees in the retail industry are, in general, in receipt of low pay, was not disputed,’’ it said. “It is reasonable to infer that the increase in wages ordered by the commission while (on the evidence before the court) of little impact on relevant employers, would be of some importance to low-paid workers.’’

The Shop, Distributive and Allied Employees’ Association accused the retailers of trying to “rob’’ 20-year-old workers.

The union’s national secretary, Joe de Bruyn, said 20-year-olds were adults doing the same job as their adult co-workers and deserved to be paid appropriately.

“By launching this attack, the National Retail Association has shown a complete disregard for the younger workers keeping the retail industry running,’’ he said.

“That some retailers are intent on denying younger workers their basic rights is manifestly unjust, particularly given the fact that they’ve seen all the evidence which shows that paying younger workers fairly doesn’t have any negative impact on employment levels at all.

“Paying 20-year-old retail workers the full adult rate will only have beneficial outcomes for employment in Australia.’’

The association’s deputy chief executive officer, Bianca Seeto, denied employers were trying to rob workers. “We are looking forward to the court hearing the merits of the appeal come August,.’’ she said.

Employers maintain the “baffling’’ commission decision will force young workers to compete against “highly experienced older personnel’’.

-Ewin Hanna, Industrial Editor, Melbourne