Australia’s largest retailers are attempting to scrap overtime and penalty rates in a ruthless attack on some of the country’s lowest-paid workers.
Coles, Woolworths, Kmart and Costco are backing an application by the Australian Retailers’ Association in the Fair Work Commission (FWC) to cut penalty rates, slash break times and reduce rest times between shifts for retail workers.
If the application succeeds, any worker earning $53,670 or above on the retail award would lose these long-standing working rights entirely in exchange for a 25 per cent wage increase.
Big retailers have proven to be profit powerhouses with Woolworths, Coles and Kmart posting net profits of $1.7 billion, $1.1 billion and $958 million respectively in the 2024 financial year.
Corporate greed powering attack
The Australian Council of Trade Unions (ACTU) slammed the move, urging political parties to protect workers from “corporate greed”.
“It’s outrageous for big companies like Coles and Woolworths to demand their undervalued workforce work longer hours with reduced protections and lower wages,” ACTU Assistant Secretary Joseph Mitchell said.
“The supermarkets are arguing for these cuts to pay and conditions under the guise of ‘workplace flexibility’.
“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.
“No one is safe from wage cuts if this goes through.
“Unfortunately, this retail plan is part of a broader agenda by big business to maximise profits by making their employees’ lives less financially secure,” he said.
Positive plan for workers’ rights needed
IEU-QNT Branch Secretary Terry Burke said most Australians would prefer to see a positive plan for workers’ rights.
“Workers are undoubtedly feeling the pinch of the cost-of-living crisis,” Mr Burke said.
“They want to see a positive agenda for working rights, not a regressive plan that attacks the longstanding working conditions that make Australian workplaces fair.
“Many IEU members have children or students working in the retail sector who rely on penalty rates and would, quite rightly, find this plan offensive.
“At a time when wages are finally starting to grow, driven in large part by improved collective bargaining rights delivered by the federal Labor government, it’s shameful that big business has taken up the first opportunity to attack workers,” he said.
Mr Burke said with a looming federal election, Australians would be looking closely at which political parties are on their side regarding their working rights.
“Workers suffered under a decade of wage stagnation under the former Coalition government and big business clearly sees their opportunity should they return to power at the next election,” he said.
