The Fair Work Commission’s recently-announced penalty rate cuts threaten to impact future enterprise bargaining agreement negotiations, Unions Tasmania says.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
An EBA is an arrangement that large companies enter into with their employees and with unions, negotiated in accordance with fair work standards.
It differs from an award, which stipulates a minimum pay rate and conditions for the majority of employees in a given industry.
The FWC’s ruling that Sunday penalty rates would be cut for employees in the retail, hospitality, fast food and pharmacy industries did not necessarily apply to those on EBAs.
As a result employees who had entered into EBAs were uncertain as to whether the decision would impact on future negotiations when their respective EBA came up for review.
Unions Tasmania secretary Jessica Munday said there was “a real danger” that large companies in affected industries would factor in the FWC’s ruling in future EBA negotiations.
She said the decision sent a “signal” to employers.
“Once we say the weekend isn’t special to one group of workers, it’s only a matter of time before other employers attempt to run the same line,” Ms Munday said.
Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said when EBA negotiations were entered into after July 1 2017 – which is when the FWC’s ruling takes effect – EBA-reliant companies in relevant industries would “take into consideration” the award alterations.
“If an enterprise agreement was being put together on July 2, and these changes do go through on July 1, then that enterprise agreement would take into account those changes to the penalty rates as they sit,” Mr Bailey said.
Australian Retailers Association executive director Russell Zimmerman said such changes to certain EBAs would not be unethical.
“You have to get your EBA registered and it has to be done by Fair Work Australia,” Mr Zimmerman said.
“So you can’t dud an employee.”
Tasmanian Labor Senator Justine Keay warned workers in the relevant industries who were on EBAs to “expect” penalty rate cuts.
“This decision is a slippery slope,” she said.
Tasmanian Liberal Senator Eric Abetz, meanwhile, clarified that employees needed to vote in favour of an EBA in order for it to “come into force”.