Business Franchise Australia


FCA Congratulates Fair Work Commission on Wage Reform

The FCA welcomes yesterday’s Fair Work Commission decision handed down at 11.00am as a balanced and measured response to the review of penalty rates in a number of awards in the retail and hospitality sectors.

“The support from the Franchise Council of Australia was invaluable in engaging the best legal team possible along with having ARA’s and the Franchise Council’s members present to the Fair Work Commission,” said Mr Zimmerman, Executive Director of the Australian Retail Association.

The FCA has actively supported the ARA’s leadership on this issue and has been a ‘contributing party’ on behalf of our members. The ARA, Master Grocer Association (MGA) and the FCA along with many national retailers have been working with the Fair Work Commission over the past two years to implement rate changes to encourage retail growth and reduce unemployment rates within the sector.

 “Reducing Sunday rates from double time to time and a half will give employers approximately 4-5% reduction on wages which they will be able to reinvest in employing more staff, increasing employment in the retail industry,” said Mr Zimmerman.

We are pleased with the efforts of the ARA and the other contributing industry parties to compile the evidence and make the case that has seen the independent umpire, the Fair Work Commission, determine that a recalibration of penalty rates is justified to support increased opportunities to work and to better enable businesses to viably open when customers are wanting service.

“The adjustment to the rate of penalty rates for franchise businesses in the retail, fast food and hospitality sectors is a positive step towards improving small business operations and their capacity to employ local people and compete with the many larger enterprises that have already secured adjusted penalty rates through union-endorsed enterprise bargaining agreements,” said Bruce Billson, Executive Chair of the Franchise Council.

The changes to Sunday rates in workplace awards in each of the sectors are:

Retail: In the retail award, Sunday rates for full and part time workers will decrease from 200% of the regular hourly rate to 150%. For casual workers the rate will decrease from 200% to 175%.
Hospitality: In the hospitality award, the loading for full and part time workers will be reduced from 175% to 150%, while there will be no change for casuals.
Fast food: Full and part time “Level 1” employees in the fast food sector will have their Sunday rates reduced from a 150% loading to 125%. Casual “Level 1” employees will have their Sunday loading reduced from 175% to 150%.
Pharmacy: There will be changes to pay rates for pharmacy staff working between 7:00am and 9:00pm, while those working before 7:00am and between 9:00pm and midnight will continue to get the existing loading.

The ARA will work with the Fair Work Commission to ensure this decision is implemented correctly across the board.

Penalty Rates Decision Summary can be viewed by clicking here.


About the Franchise Council of Australia
Formed in 1983 as a not-for-profit trade association, the Franchise Council of Australia Limited (FCA) is the peak body for the $146 billion franchise sector in Australia, representing franchisees, franchisors and service providers to the sector. As the peak body for franchising, the FCA continues to add value to the businesses of its members by providing a range of services relevant to franchising.  The FCA works constantly to ensure that all activities and services which benefit franchising benefit the broader community including franchisees, franchisors, employees and their local economies and communities.
The FCA is closely affiliated with franchising associations around the world, and is a founding member of the Asia Pacific Franchise Confederation (APFC). It is also a member of the World Franchise Council (WFC) and for 1999 and 2000 managed the secretariat for the World Franchise Council.