Business welcomes Fair Work ruling on student workers

Business group have welcomed a draft ruling by Fair Work Australia to allow students to work just 1.5 hour-shifts, rather than three.

Fair Work Australia vice-president Graeme Watson said the decision to scrap the three-hour minimum shift requirement might encourage employers to hire more students for after-school work.

The 90-minute shifts will only be permitted for secondary students working between 3pm and 630pm, and only if parents or guardians agree.

Peter Strong, executive director of the Council of Small Business of Australia, describes the ruling as “very pleasing”.

“The rules are well-designed and they’re based around kids,” Strong says.

He rejects warnings from the Australian Council of Trade Unions that the decision will lead to job losses, or encourage businesses to cut back on hours for adult workers in favour of cheaper teenagers.

Strong adds that while Labor’s industrial relations legislation had delivered the “fantastic result” of getting rid of the myriad old awards, FWA had taken too long to recognise problems caused by forcing three-hour shifts on employers and their workers. The minimum was brought in by the Rudd Government.

Strong adds that some parents had wanted their child to stay in a job so much that they offered to reimburse the employers for 1.5 hours, if the employer paid for three.

While the retail union, the Shop, Distributive and Allies Employees Association, had fought against changes to the law, the Australian Retailers Association yesterday welcomed the decision, describing it as logical and likely to save jobs.

“This is a win-win for students and retailers,” ARA executive director Russell Zimmerman said. “It’s just a pity this decision wasn’t made any earlier.”

“In an ARA survey of over 330 retailers in April 2010, 38% of respondents said they would stop employing school students as a result of the limitations imposed by the three hour minimum shift requirement.”

The Australian Chamber of Commerce and Industry, meanwhile, has described the decision as a “necessary victory for common sense.”

ACCI president Peter Anderson adds that that it is unfortunate “such a sensible step took three rounds of national arbitration to achieve.”

“That fact alone highlights restrictions imposed by Australia’s workplace relations system, and award rules which are yet to become truly ‘modern’”, Andreson says.

FWA has called for further submissions before releasing its final ruling.