11 Sep Aldi Enterprise Agreement Prestons
Nevertheless, the Commission found that acceptance of the undertakings would not entail any financial risk for the workers and therefore accepted the undertakings and approved the agreement. For example, the ALDI agreements submitted to the Commission provided that workers were not entitled to overtime and penalties without additional payments being made for adequate overtime work of workers or for work on Saturdays, Sundays and public holidays. The agreements also provided for a single “bank hours arrangement”. As part of bank-time arrangements, staff receive a constant payment every two weeks, regardless of the hours the employee actually works. If an employee does not meet their total contract duration per week, the hours reserved for the employee have a negative balance. All negative banking hours “must be replanted using the employee`s future overtime” before transferring or paying for excess hours. However, the SDA still questions the approval of Aldi`s WA and SA agreements three years ago due to their use of the word “Leader” and the failure of the better ongoing global test. The claims raise all questions about how the “better off combination test” should be applied to an agreement that wraps penalties and other benefits into encumbered wage rates. In order for a company agreement to be approved, it must pass the better off over over (BOOT) test outlined in the Fair Work Act 2009 (BOOT), which requires that any current and future employee with bonus coverage be better off overall if the proposed agreement applied to them and not to the corresponding Modern Award.
Employers who sign agreements with dependent rates of pay must ensure that the rates are high enough to compensate workers for the premium rights that workers waive. In particular, where penalty rates or overtime entitlements are offset, employers should be willing to provide the Commission with evidence and, where appropriate, obligations to address the Commission`s concerns. “The heavy wage rates do not appear to be high enough to compensate staff for a number of modern bonus rights that are not provided for in the agreement,” the Commission told Alid, while raising concerns about the calculation of leave pay and the flexibility of working conditions. . . .