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JB to keep paying existing staff full penalties

JB Hi-Fi joins Chemist Warehouse and My Chemist pharmacies, cosmetics retailer Lush Australia and New Zealand, and stationery retailer Kikki K, in honouring all existing penalty rate payments for current staff.
JB Hi-Fi joins Chemist Warehouse and My Chemist pharmacies, cosmetics retailer Lush Australia and New Zealand, and stationery retailer Kikki K, in honouring all existing penalty rate payments for current staff. MICK TSIKAS

ELECTRONICS retailer JB Hi-Fi will not pass on penalty rate cuts to existing staff after "careful consideration” of the Fair Work Australia ruling.

Chief executive Richard Murray confirmed the decision, which was announced internally last month.

"As a customer-facing organisation, our people are our most important asset - they represent our brand every day and we believe are one of our key competitive advantages,” he told The Australian.

"As a leadership team we gave careful consideration to the potential impact of the Fair Work decision on the group and our people, and decided the best outcome for our existing team members was to maintain their current pay and conditions.”

Earlier this year the FWC determined Sunday and public holiday rates would be reduced for workers employed under the pharmacy industry and retail awards, but announced the full impact of the cuts would be delayed until July 1, 2020.

Labor, which has vowed to fight the decision, welcomed JB Hi-Fi's stance.

JB Hi-Fi joins Chemist Warehouse and My Chemist pharmacies, cosmetics retailer Lush Australia and New Zealand, and stationery retailer Kikki K in honouring all existing penalty rate payments for current staff.

From the start of this month, full-time and part- time workers in the pharmacy and retail industries saw their Sunday rates reduced from 200% to 195% as the first step to them being cut to 150%.

Council of Small Business Australia CEO Peter Strong doesn't believe maintaining pre-July penalty rates will attract new customers, saying the majority of customers wouldn't know.

Topics:  fair work commission jb hi-fi penalty rate cuts penalty rates



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