More than 85 per cent of our workforce is covered by collective agreements. We recognise the right of our team members to negotiate either individually or collectively, with or without the involvement of third parties. Collective agreements typically include provisions for notice periods and provisions for consultation and negotiation. We also believe in maximising the flexibility of workplace arrangements available to our team members and their managers.
Consistent with this approach, in April 2019, team members in Bunnings’ warehouses and smaller format stores voted in favour of the proposed Bunnings Warehouse & Smaller Format Stores Agreement 2019 (Bunnings 2019 EBA). This aligns with Bunnings’ strategy to provide entitlements that attract, retain and reward the best team members. The key changes from the 2013 Enterprise Bargaining Agreement reflect feedback from team members and leaders including to change the ‘Bank of Hours’ model to a four-week roster model. This is similar to that in the General Retail Industry Award (GRIA). As at 30 September 2019, the Bunnings 2019 EBA is currently before the Fair Work Commission (FWC) for approval.
In late 2018, Kmart stores team members approved a new Enterprise Bargaining Agreement. While the FWC rejected Kmart’s application to approve the agreement on 2 September 2019, given the strong endorsement by Kmart team members and Kmart's belief that it has strong grounds for an appeal, Kmart lodged a Notice of Appeal on 13 September 2019. In the interim, the existing terms and conditions under the 2012 Kmart National Agreement continue to apply to all Kmart team members in Kmart stores.
Officeworks store team members demonstrated their support for a new Store Operations Agreement through a 97 per cent ‘Yes’ vote, in which participation was 83 per cent. This result reflected the strength of the proposal, which includes increased base pay, new leave entitlements, higher penalty rates and the option for team members to choose their own super fund. The new agreement received approval from the FWC in October 2019, with an effective date in November 2019. All team members covered by the Agreement received a two per cent increase on their base pay rate from 1 July 2019.
GRI Standards reference: GRI 102-41, GRI 103-1, GRI 103-2, GRI 103-3, 402-1, GRI 407-1