Swedish fast fashion giant H&M has failed in a bid to cut its wages bill at the expense of workers after the Fair Work Commission dismissed its enterprise agreement.
The application was thrown out on the basis that it failed to satisfy the so called better off over test or BOOT and would have left some workers worse off than if they were paid under the award, particularly staff rostered on weeknight and weekend shifts.
H&M's attempt to side-step costly penalty rates suggests major corporations believe they can get away with paying less than the award rates in Australia, according to Retail and Fast Food Workers Union spokesman Josh Cullinan.
"I think this reveals Australia is seen as a soft touch for retail and fast food workers," Mr Cullinan said.
Fair Work has dismissed H&M;'s application for a enterprise agreement.Credit:Piotr Malecki
"In retail and fast food (sectors) the industry is exploiting the workforce, we estimate that workers are being underpaid between $300 and $500 million a year."
He said there were also concerns about how H&M communicated this agreement to its workers.
"I think if there had of been a more robust analysis of that, it would have exposed a process where many months before it was put to the vote and before some stores were even opened, before workers were even employed who then voted on the agreement, they (H&M) say they conducted information sessions," Mr Cullinan said.
"If H&M want to negotiate an agreement that is more than the minimum rates in the award they will have to engage with their staff, if they want to negotiate an agreement that is inferior to the award then the SDA is the organisation they will try and negotiate with."
Mr Cullinan said the Shop, Distributive & Allied Employees Association (SDA) and its history of "close engagement" with major retailers and employers was to blame for agreements that robbed workers of their rightful entitlements.
"If an (H&M) worker had the majority of their hours on the weekends or week nights, they would be worse off under this agreement," Mr Cullinan said.
"Through this whole process H&M refused to provide us with any rosters."
H&M opened its first Australian store in 2014 and rapidly expanded its operation to a network of 10 stores and there are plans for new outlets in Wollongong and Toowoomba. It also trades through its three upmarket COS stores in Sydney and Melbourne.
The SDA also voiced concerns with the agreement at the commission and H&M responded by proposing an increase to the Monday to Sunday rate for casual employees, many of whom work the majority of their hours on weekends.
H&M argued this would ensure that every casual employee, based on average working hours was clearly better off under the agreement and it said the paid leave rates for permanent employees were higher than stipulated under the retail award.
However Fair Work said in its decision that the undertakings provided by H&M were not sufficient to satisfy the BOOT for casual workers.
"The additional undertaking provided by the applicant to increase the casual hourly Monday to Saturday (rate) is not sufficient in all potential rostering arrangements to provide a higher rate than the award," Fair Work deputy president Geoffrey Bull says.
H&M and the SDA were contacted for comment.