Fair Work Ombudsman to target down on retailers

The Fair Work Ombudsman Nicholas Wilson has announced his agency will write to 50,000 retailers and conduct random audits of 1,500 workplaces as it steps up its campaign to get business to comply with the new Fair Work regime.

The retail sector is a real problem area for workplace issues, with 20% of all complaints to the Ombudsman – or around 4,200 separate complaints – coming from that industry.

But some retail employer groups are unhappy with the timing of the campaign, complaining that retailers are struggling with the implementation of the new modern awards for the retail sector, which comes into force on July 1.

The National Retailers Association’s executive director, Gary Black, has slammed the timing of the campaign as “not defensible”.

“What it ought to be doing is giving retailers a reasonable time to fully inform themselves of their obligations, to get advice, make adjustments, and implement arrangements that accommodate the transitional obligations and the new modern award obligations. This sort of activity is highly premature. It should not be happening at least until 2011,” he told The Australian.

The Australian National Retailers Association chief Margy Osmond agrees.

“This decision places another compliance impost on retailers at a time when they are already facing a raft of changes to pay scales and an increase in their administrative burden under the modern award system to be introduced on July 1, 2010.

“In light of these changes I would urge Fair Work Australia to reconsider this initiative for implementation at a later date.”

But Australian Retailers Association executive director Russell Zimmerman says retailers shouldn’t be too worried about the crackdown and instead should use it as a chance to get their houses in order.

“The Ombudsman is not out in this first round to knock on the door and become the policeman. At this stage they are looking to work with retailers. Retailers have got to realise that and not become scared.”

While he admits retailers do have a bit on their plate with the new IR regime, Zimmerman says it is far better to get any pay or condition issues sorted out now, rather than face hefty back pay orders next year.

Ombudsman Nicholas Wilson says 1,500 retail outlets throughout Australia will be asked to supply employment records for audit.

The sectors to be targeted include furniture, floor covering, houseware, manchester and textile, electrical and gas, computer, hardware and building supplies, garden supplies, sport and camping equipment, entertainment, toy, book, marine, clothing, footwear, watch and jewellery, department and antique stores, as well as newsagents, pharmacies and florists.

Food retailers and those in the hospitality sector, security and hair and beauty industries will escape the crackdown after recent campaigns targeted those industries.

It appears special attention will be given to employers who are not paying workers for their work outside a store’s normal trading hours.

“Some businesses think it is okay to require staff to arrive early to prepare a store for opening and stay late to clean up afterwards without paying them for that time – but it’s not, it’s unlawful,” Wilson said in a statement.