| A recent press article reported issues associated with workplace relations in the retail shops industry. It was reported NSW retail shops employers will face wage increases of 14% in 2010 as a result of the introduction of modern awards. This increase is on top of annualised national wage increases. Changes to penalty rates will see these costs further increase.
Through the introduction of the new modern award system for Australian businesses, MTA must remain diligent in an attempt to maintain the flexibilities that the industry presently enjoys. New higher penalty rates can only limit employer options and MTA must work hard to prevent such events occurring in this industry. To limit the risk MTA has committed to drafting the new modern award with the view to driving the agenda nationally in order to secure an industry award for the retail motor industry. This award we anticipate will be the basis for negotiation, conciliation and arbitration. MTA is also working to ensure the vehicle manufacturing industry remains separate from manufacturing generally with its own award.
Those members with less than 100 employees will need to brace themselves for the reintroduction of unfair dismissal laws. The Government prior to Christmas bowed to union pressure and has bought forward the introduction date by six months to 1 July, 2009. Outcomes in the Senate will determine the actual detail of these laws.
The changes to ordinary time earnings for superannuation purposes which became effective from July 2008 are still being bedded down as business continues to realise the effect of these changes. Whilst for many it became evident that commissions would be included within the ordinary time earnings assessment for the 9% contribution, many have missed the fact that in addition regular contractually obligated overtime work would also be included. This latter aspect has the potential to add substantially for an employer’s total superannuation liability.
Since July 2008 the Australian Tax Office has seen fit to further review its draft Ruling on what constitutes ordinary time earnings. To this end it appears to be seeking to broaden the overtime that would be included within ordinary time earnings (OTE) by incorporating overtime that is regularly worked. The ATO, in compiling this draft ruling, have only managed to further complicate the situation, as well as possibly expand the liability for employers. At what point of working overtime does it become regular? How on earth is an employer supposed to sleep at night when uncertainty such as this exists.
This draft ruling is up for public comment. MTA is hopeful of seeking an outcome that will assist employers to clearly identify their obligations with respect to superannuation. In addition, the peak employer body, Australian Chamber of Commerce and Industry has approach Government and the ATO in an effort to remove overtime completely from the OTE assessment.
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