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MGA Independent retailers succeed in penalty rates case!

MGA Independent Retailers, together with ARA and other retailers successfully fought for a reduction in Sunday Penalty Rates in the Fair Work Commission. The Fair Work Commission decision to reduce Sunday penalties for permanent employees from 200% to 150% and from 200% to 175% for casuals represents massive savings and relief for independent retail and liquor businesses across Australia.

This result marks an enormous reversal of previous decisions in the Commission in regard to Sunday penalties. The Fair Work Commission stated that reduced penalty rates would “increase employment trading hours and service levels”. MGA supports this view. Jos de Bruin, CEO of MGA said, “This result will give many businesses that have struggled to cope with high Sunday penalties an opportunity to grow their businesses, establish a more balanced worklife and remain viable. They now have a chance to employ more staff and therefore increase productivity. Isn’t this exactly what we want - jobs and growth? At last the Regulator has offered a solution to struggling businesses.”

Mr. de Bruin continued, “Financially, achieving this outcome has not been easy but will be a worthwhile result for our members, particularly if we are able to withstand any subsequent challenge to this impressive and desperately needed decision.”

MGA anticipates strong objections from the unions in relation to this decision. However, in the meantime the Fair Work Commission will now proceed to consider how this decision will be implemented.

Jos de Bruin
MGA Independent Retailers

For further comment contact:
Jos de Bruin – 0418 312 723
MGA Independent Retailers
23rd February 2017