A BID to halve Sunday penalty rates for workers in the retail, fast food and hospitality industries has been rejected by the national workplace relations tribunal.
The Fair Work Commission (FWC) handed down its decision on Monday to keep penalty rates unchanged, following a 15-month review process in which groups such as the National Retail Association, the Queensland Chamber of Commerce and Industry and Ai Group made submissions.
The groups sought to halve the penalty rates paid to employees on Sundays and remove the 25 per cent penalty rate for evening work.
The bid would have affected workers in the fast food, food and beverage, general retail, hair and beauty and general hospitality industries.
But a full bench of the FWC on Monday said "a case had not been made" to change the penalty rates, because the modern award recognised the "disabilities of working at unsociable times".
It also said the industries already had relatively low pay rates.
Australian Retailers Association executive director Russell Zimmerman said the decision would affect retailers already struggling in a tough trading environment.
"It's a tough ask for retailers at this moment," he told AAP on Monday.
"It's fair to say that the world is changing. There are employees in other industries who are not being paid penalties on Sundays.
"We are living in an era where we have to operate in a 24-hour environment, and all we were looking for is to make Sundays more competitive."
Mr Zimmerman said the decision would also mean the unemployment rate in the retail industry would rise.
"Particularly in regional areas, the less they trade, the less money is going into the community because the retailers will look to run the stores themselves.
"It takes employment out of the industry."
Workplace relations minister Bill Shorten said the government welcomed the decision.
"We believe that adequate compensation for unsociable hours at work is reasonable," he said in a statement.
"The question for the Liberals is do they support this decision, and do they support the safety net for some of Australia's lowest paid workers.
"Or are they seeking, should they win government, to allow penalty rates to be stripped from workers as was the case under WorkChoices."
Last week, Prime Minister Julia Gillard announced the government would enshrine worker penalty rates into workplace law, as a consideration for the FWC.
The proposal was slammed by business groups, including the Australian Retailers Association.
"Along with the prime minister's announcement last week, this process now amounts to a one-sided barracking for the trade union movement on penalty rates, doing union bidding as if small business employers, shops, restaurants, cafes and tourism operators are constituencies that don't exist," Mr Zimmerman said.
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