JPMorgan analyst Shaun Cousins said productivity programs and operational efficiency would help retailers manage higher wage costs. 2016 proved to be a turbulent year for the Fair Work Commission to approve enterprise agreements (or not, as has been the case for many employers). Vice President Sams` decision to approve the Beechworth Bakery Employee Co Pty Ltd 2016 (agreement) agreement has been a hope for employers in an otherwise bleak licensing landscape. When the case was approved last year, the SDA argued that the agreement had not passed the best overall test (BOOT). Vice-President Sams also expressed his concerns on this issue. Subsequently, Beechworth proposed commitments to address these concerns and ultimately proposed that a worker be able to request a four-month salary comparison if he felt that, overall, they were not better under the agreement to address any workers` compensation deficits relative to the corresponding modern bonus. In deciding to approve the agreement, the Vice-President took into account the proposed commitment, the SDA`s response, higher base rates of wages and the fact that the vast majority of workers work regularly from Monday to Friday. Vice President Sams noticed that the application…… Other retailers, such as Coles and Woolworths, are benefiting from improved in-store productivity, such as cardboard packaging.

B, and better pallet assembly to reduce costs in stores. According to Citigroup research, a 1 per cent increase in wage costs would be Myer`s earnings before interest and taxes of 5.7 per cent, Woolworths down 3.1 per cent, Wesfarmers (owned by Bunnings, Kmart, Target and Officeworks) down 2.6 per cent, Super Retail Group 2.3 per cent and JB Hi-Fi 1.6 per cent, with no condition to change the number of staff or hours. If a job has a registered contract, the premium does not apply. However, analysts say retailers are trying to minimize the impact of new agreements through a variety of means, including automation, branch simplification programs and strengthening of turnover charts, but they will struggle to offset the entire increase in the first year, resulting in a cost-price scissor. “Combined with the penalty interest rate cuts introduced in 2017, these wage results have pushed retail employees backwards and many are now struggling to get by,” Dwyer said.