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General

Industrial Relations

Workers lose 1/3 of their pay

A new government-funded report released today confirms that Australia's 1.7 million retail and hospitality workers have been hit the hardest by the introduction of the WorkChoices IR laws, with some workers losing up to a third of their incomes.

ACTU President Sharan Burrow said: "This report is further proof that ordinary working Australians have suffered massive cuts to their pay and conditions under the WorkChoices IR laws and it underlines the importance of voting to get rid of the Coalition Government at the coming federal election."

The study by the University of Sydney's Workplace Research Centre found that some liquor store employees had lost up to 31 per cent of their take home pay, while many who work in bakeries and fast food outlets had seen their wages fall by up to 25 per cent.

The report analysed all 339 collective agreements in hospitality and retail from Victoria, NSW and Queensland that were lodged with the Office of the Employment Advocate between 'WorkChoices' taking effect on March 27 last year and December 8.

It found the big losers under WorkChoices were workers on non-union job contracts in the retail and hospitality sectors, with:

80 per cent of these agreements removing annual leave loadings,

79 per cent dropping laundry allowances

76 per cent no longer containing Saturday penalty rates

71 per cent removing Sunday penalty rates.

68% removing overtime rates,

60% axing public holiday penalty rates

55% removing paid meal and rest breaks.

The study found that workers in retail had their pay cut by between 2% and 18% on average and hospitality workers lost between 6% and 12% on average.

The cuts to take home pay were mainly due to the loss of penalty rates and the report noted that the real loss would be significantly larger due to the significant loss of other conditions such as paid breaks, annual leave loading and overtime.

The study also noted workers who worked Sunday had their pay reduced in some cases by up to 30%.

Justine Evesson, who led the research team, said employees of smaller business fared the worst while workers in larger businesses, such as department stores and supermarkets, usually fared better, with collective contracts that built on the award minimums.

Two-thirds of the agreements that stripped away these formerly protected award provisions are based on templates provided by lawyers, consultants and employer groups and show next to no sign of individual negotiation or flexibility - the supposed aim of the Howard Government's IR laws.

The report concluded that: "Redundancy rights and severance pay have been largely eliminated, casual loadings have been significantly reduced, and part-time workers in particular have lost important hours provisions to allow for work-family balance."

"This is a damning report card on the Federal Government's disastrous IR laws", said Ms Burrow.

More information:
Lowering the standards: From awards to Work Choices in retail and hospitality collective agreements, synthesis report, Justine Evesson et al, prepared for the Queensland, NSW and Victorian governments by the Workplace Research Centre, September 2007

Contact Details
WWW	:	<http://www.rightsatwork.com.au

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Last Modified: 14 Sep 2007

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