Senate debates

Wednesday, 24 August 2011

Questions on Notice

Tertiary Education, Skills, Jobs and Workplace Relations: Penalty Rates (Question No. 895)

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

asked the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, upon notice, on 29 July 2011:

With reference to award penalty rates, is it correct that a baker employed by a wholesale bakery can commence work two hours earlier than the normal award hour, namely 5.00 am without being required to be paid penalties for the whole shift, whereas if a baker doing exactly the same work but for a retailer is so engaged, penalties have to be paid for the whole shift for the baker in the retail bakery.

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

The answer to the honourable senator's question is as follows:

From 1 January 2010, the General Retail Industry Award 2010 [MA000004] provides coverage for a baker employed by a retail bakery. The Food, Beverage and Tobacco Manufacturing Award 2010 [MA000073] provides coverage for a baker employed by a wholesale bakery.

An employee engaged by an employer who is covered by the General Retail Industry Award 2010, cannot be covered by the Food, Beverage and Tobacco Manufacturing Award 2010.

The General Retail Industry Award 2010 provides an entitlement to two hours at overtime rates (150%) for a baker working from 5:00 am to 7:00 am (work from 7:00 am onwards would be paid at the ordinary rate) Monday to Friday. Alternatively, if the baker is classified as a shiftworker, there is an entitlement to a 12.5% shift allowance, for a shift starting at 5:00 am. This is paid for the entire shift. Different penalties apply for work performed on Saturdays and Sundays.

The Food, Beverage and Tobacco Manufacturing Award 2010 provides an entitlement to one hour at overtime penalty rates (150%) for a baker working from 5:00 am to 6:00 am (work from 6:00 am onwards would be paid at the ordinary rate) Monday to Friday. Alternatively, if the baker is classified as a shiftworker, there is an entitlement to a 12.5% early morning shift loading. The loading is payable for the entire shift. Different penalties apply for work performed on Saturdays and Sundays.

However, clause 30.2 (c) of the Food, Beverage and Tobacco Manufacturing Award 2010 also provides that the ordinary spread of hours (6.00am to 6.00pm) can be altered by up to one hour at either end of the spread, by agreement between an employer and the majority of employees concerned or, in appropriate circumstances, between the employer and an individual employee. Where agreement is sought between the employer and an individual employee, the employer cannot have asked the group of employees as a whole to agree to the variation and the agreement can only be formed with less than half the employees in the affected area. Where an agreement is reached, the employer is required to keep a time and wage record of the agreement.