Mr. Cullinan stated that Woolworths first had to prove that the salary increase clause was ambiguous in order for Fair Work to want to amend the agreement. To reach an agreement, employers must submit to the Fair Work Commission indicative rolling charts that show people`s work schedules and compare premium rates with what they would receive under the agreement. The employer and the union also sign a legal declaration. It is fair to say that all parties have agreed on the content of a proposed new agreement, but it is the wage increase on which we still have to agree. SDA Secretary of State Gerard Dwyer argued that the decision to cancel minimum wages on July 1 was « the trigger for this wage increase to be applied to all employees covered by the Woolworths supermarket agreement. » Another strong consideration could be the implementation of an Individual Flexibility Agreement (IFA) which, in exchange for a change in overtime pay, would give the worker a monetary or non-monetary advantage, with the agreement of employers and workers favourable to both parties. We saw a real movement in the negotiations on Friday 4 September on the NEW ACCORD. A spokesman for Woolworths rival Coles, which does not have to pay an increase due to the expiry of the deal, said the company was considering a discretionary staff increase this year. There are also special cooking production provisions for shift work. There are no current members of the team who work in a pastry production team. Current team members can only become a bakery production worker by mutual agreement.
However, the Shop Distributive and Allied Employees` Association (SDA) said the company was violating its contractual obligations and this week filed an urgent request for additional payment and penalties from the Federal Court of Justice. While the minimum wage is traditionally tied by employers to sector premiums, many retail and fast food giants are now linking their annual wage increases to the decision, instead of setting firm increases. Each company had negotiated employment contracts with shop, Distributive and Allied Employees Association that exchanged penalty interest and other fees for a slight increase in hourly rates.