Today's decision by the Industrial Relations Commission brings the reality of change one step closer for many Victorian employers, says VECCI.

"It confirms that from the beginning of next year - in just over four months time - the bar will be significantly raised for many employers", says VECCI General Manager - Workplace Relations, Mr David Gregory.

"As a result of changes initiated by the Victorian Government in 2003 that have resulted in industrial relations powers being transferred to the Federal jurisdiction, thousands of Victorian employers will have to cope with a new regime of industrial relations regulation in Victoria.

"For many, particularly those in the service sector - including tourism, entertainment, hospitality and retail businesses, SME businesses and regional businesses, where a greater proportion of employers operate outside of Federal award coverage - the changes have the potential to significantly impact through the introduction of conditions like mandatory overtime payments, weekend penalty rates, and the return of the annual leave loading.

"These employers need to quickly understand the potential impact of these changes and the options they might be able to consider in response.

"While VECCI is not by any means an advocate of this process of change, we are at least pleased that the Commission's decision today has acknowledged some legitimate transitional issues associated with this process of change. For example, employers will have the opportunity of being able to offset any new obligations required to be met against any additional benefits already being provided to employees in circumstances where it is "fair and equitable" in the circumstances to do so.

"This concession acknowledges that the process is not about penalising employers twice - it is instead about lifting the bar in terms of the framework of minimum standards that exists in Victoria.

"Where employers are already providing benefits that are in excess of the minimum in certain areas they should not be penalised twice.

"The impact of change on any previously accrued entitlements will also be limited and existing employer funded superannuation obligations will also be protected from the impact of any changes that the reintroduction of award coverage might bring about.

"However, these concessions do not remove the potential impact of this process of change on many Victorian employers - it is now time for those employers to understand just what the changes are all about and what the impact might be upon them", says Mr Gregory.

For all media enquiries, please contact:
VECCI Strategic Communications
Ph:      (03) 8662 5226
email: media@vecci.org.au