2c an hour offer slammed
From: By Brad Norington

May 25, 2006
A MOVE by big fabric retailer Spotlight to offer new employees just 2c an hour extra in return for eliminating overtime, penalty rates, public holidays and other conditions has been endorsed by the Howard Government.
Unions estimate workers who accept jobs with Spotlight will lose up to $90 a week compared with serving employees, and say the offer is "a disgrace".
But Workplace Relations Minister Kevin Andrews confirmed last night that the company was simply following the Government's own example: of a fictitious character called Billy who appears in an information booklet on new workplace laws.
A spokesman for Mr Andrews said Spotlight - which employs 5000 people nationally - was legally entitled to offer jobs that traded off many conditions under the Government's Work Choices laws.
He said workers could not be forced to accept Spotlight's non-union individual contracts, but added: "It's up to you - if you want to get a foothold in the industry you may want to take the job."
The example of Billy was provided by the Government as a case of how an employer could eliminate penalty rates, overtime, leave loadings, bonuses, rest breaks and paid public holidays for new employees. Billy accepted a job with a Canberra clothing retailer and received the minimum hourly pay rate, no matter how many hours he worked.
At Spotlight, the minimum hourly award rate is $14.28, and serving employees get paid overtime and penalty rates of time-and-a-half and double-time if they work Thursday nights, weekends and public holidays.
New employers would get paid $14.30 an hour for all hours worked and would not get other entitlements including shift loadings, rest breaks, bonuses, incentive payments and annual leave loadings.
Spotlight last night defended its move, with general manager of marketing Jono Gelfand saying the company wanted to switch to individual contracts, called Australian Workplace Agreements, for all its workforce. "We are doing what we were told to do by the legislators."
Mr Gelfand said the company's AWAs met all of the Government's Work Choices legislative requirements.
"We are just doing whatever we are required to do to meet the minimum conditions set out by the Australian Fair Pay Commission."
Melbourne-based Spotlight employs warehouse staff and shop assistants for its retail fabric and curtain business, which has outlets across the country.
But the retail workers' union accused Spotlight of trying to create a second class of workers by paying new recruits much lower rates than serving employees.
Shop Distributive and Allied Employees Association national chief Joe de Bruyn said: "These AWAs are an absolute disgrace because what it does is pay the same rate of pay and take away all penalty rates and other conditions. It creates a second class of employees alongside others, and the Government's laws callously allow employers to do this."
Mr de Bruyn said Spotlight was a successful business that was exploiting its employees, and could not justify pay cuts on the basis that it was struggling.
Spotlight is the first big firm known to use the Government's workplace laws to maximum effect by cutting rates for new employees to the bare minimum.
http://www.news.com.au/story/0,10117...16-421,00.html
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