Case Study 1: Revealing the Difference Between Woolworths’ EBA and Retail Award

Case Study 1: Revealing the Difference Between Woolworths’ EBA and  Retail Award

Table of content

  1. Pay Rates: Woolworths’ EBA VS General Retail Award
  2. How Much They Pay? Latest Woolworths’ EBA
  3. Comparison Overview for You
  4. How does Workstem keep compliance automatically, regardless of official award or EBA?

Woolworths, being a retail industry giant, offers a vast array of job positions. The Retail Award is an industry standard set by Australian compliance, applicable to employers and employees in the retail sector, closely related to employees’ payment.

Woolworths’ EBA , on the other hand, is a specific agreement reached between Woolworths Group and its employee representative, typically a union. Both are regulated by Australian law, but Woolworths’ EBA  can provide personalised conditions tailored to the company and its employees. How does Woolworths’ EBA work? Let’s take a look at the differences between these two.

Pay Rates: Woolworths’ EBA VS General Retail Award

Definition of Pay Rates from Fair Work

Retail award pay rates vary depending on job role, experience level, and any applicable awards or agreements. Additionally, pay rates may include base wages, allowances, penalty rates for overtime or weekend work, and other entitlements as outlined by Australian labour laws and regulations. It’s important for employers to ensure that they pay their employees at or above the minimum wage set by the Fair Work Commission and any applicable industry awards or agreements.

Learn more: General Retail Industry Award Guide [MA000004]

Woolworths’ EBA Pay Rates

Woolworths pay rates vary based on job positions. Hourly rates range from AU$15.75 to AU$28.05, with Order Selectors earning the highest average rate of AU$32.80 per hour and Deli Clerks earning the lowest average rate of AU$16.72 per hour.

Woolworths’ EBA – Minimum Rates

Effective immediately after the Woolworths Supermarkets Agreement 2018 commences, the following base pay rates apply:

Classification

Base Rate of Pay (Hourly) Weekly Wage Rate Equivalent (Base Rate of Pay x 38 Hours)
Retail Employee Level 1 $21.05

$799.90

Retail Employee Level 2 $21.55

$818.90

Retail Employee Level 3

$21.89 $831.82

Retail Employee Level 4

$22.32

$848.16

Retail Employee Level 5 $23.23

$882.74

Retail Employee Level 6

$23.70 $900.60

Tradesperson Level 4

$23.20 $881.60

Tradesperson Level 5

$23.59

$896.42

Clerical Assistant Level 1 $21.05

$799.90

Clerical Officer Level 2 $22.20

$843.60

Clerical Officer Level 3 $23.29

$885.02

General Retail Award-Minimum Rates

Employee classification

Minimum hourly rate Minimum weekly rate (full-time employee)

Retail Employee Level 1

23.38 888.50

Retail Employee Level 2

23.92 908.80

Retail Employee Level 3

24.29 922.90

Retail Employee Level 4

24.76

940.90

Retail Employee Level 5 25.78

979.60

Retail Employee Level 6 26.15

993.80

Retail Employee Level7 27.46

1043.60

Retail Employee Level 8 28.58

1086.00

Woolworths’ EBA – Overtime Rates

  • Full-time and part-time

Day

First 3 hours of overtime % of ordinary rate Subsequent hours of overtime % of ordinary rate

Monday to Saturday inclusive

150% 200%
Sunday 200%

200%

Public Holidays 250%

250%

  • Casual (includes Casual Loading)

Day

First 3 hours of overtime % of ordinary rate Subsequent hours of overtime % of ordinary rate
Monday to Saturday inclusive 175%

225%

Sunday 225%

225%

Public Holidays 275%

275%

Woolworths’ EBA – Penalty Rates

Days of the Week Hours Full-time and part-time rates of pay

Casual rates of pay (penalty rates are inclusive of 25% casual loading)

Monday, Tuesday, Wednesday, Thursday, Friday 7:00am to 6:00pm Base rate

Base rate +25%

Monday, Tuesday, Wednesday, Thursday, Friday

6:00pm to 11:00pm Base rate +25%
  • From 7 January 2019 to 30 September 2019: Base rate +30%
  • From 1 October 2019 to 29 February 2020: Base rate + 35%
  • From 1 March 2020 to 30 September 2020: Base rate + 40%
  • From 1 October 2020 to 28 February 2021 Base rate + 45%
  • From 1 March 2021 Base rate + 50%

Saturday

7:00am to 11:00pm Base rate + 25%
  • From 7 January 2019 to 30 September 2019: Base rate + 40%
  • From 1 October 2019 to 29 February 2020: Base rate + 45%
  • From 1 March 2020: Base rate + 50%

Monday through Saturday

11:00pm to 7:00 am
  • First 3 hours: Base rate + 50%
  • Additional hours in this span over 3 hours: Base rate + 100%

First 3 hours: Base rate + 75%

Additional hours in this span over 3 hours: Base rate + 125%

Sunday

Midnight to 9.00am Base rate + 100% Base rate + 125%
9:00am to 11:00pm
  • From 1 January 2019 to 30 June 2019: Base rate + 80%
  • From 1 July 2019 to 30 June 2020: Base rate + 65%
  • From 1 July 2020: Base rate + 50%
  • From 7 January 2019 to 30 June 2019: Base rate + 85%
  • From 1 July 2019: Base rate + 75%
11:00 pm to midnight Base rate + 100% Base rate + 125%
Public Holiday Base rate + 125%

Base rate + 150% (inclusive of casual loading)

Woolworths’ EBA – Allowance

Allowance

Application

Special clothing allowance

  • Woolworths provides and maintains necessary protective gear for team members, such as gum boots, white coats, hats, sunscreen lotion, insulated gloves, and insulated parkas.
  • Team members will receive training on the appropriate use of protective gear.
  • If Woolworths requires team members to wear special clothing like uniforms or dresses, the company will reimburse the cost of purchasing and replacing them when necessary, except when the clothing has already been supplied or paid for by Woolworths.
  • Woolworths ensures that team members are not required to wear revealing or offensive clothing.
  • Team members required to launder special uniforms or clothing will receive the following allowances:
    • Full-time team members: $6.25 per week.
    • Part-time or casual team members: $1.25 per shift.

Cold work allowance

  • Fridge Allowance: Woolworths team members who primarily perform tasks in cold chambers or are responsible for restocking refrigerated storage areas, such as dairy cases or freezer cabinets, will receive a cold work allowance of $0.29 per hour while engaged in such duties.
  • Freezer Allowance: In addition to the Fridge Allowance mentioned above, Woolworths team members who are required to work in a cold chamber with temperatures below 0°C will receive a Freezer Allowance of $0.44 per hour (a total of $0.73 per hour) while engaged in tasks such as cleaning, de-frosting, or rearranging stock within a back-of-house freezer room.

First aid allowance

Where a team member holds an appropriate first aid qualification and is appointed by Woolworths to perform first aid duty they will be paid an allowance of $10.89 each week.

Transport allowance

Where Woolworths asks a team member to use their own motor vehicle in the performance of their duties, the team member will be paid an allowance of $0.79 per kilometre.

Recall allowance

  • Call Back to Work: If a Woolworths team member is called back to work before or after completing their normal rostered shift or on a non-working day due to unforeseen emergencies or tasks like resetting an alarm, they will be paid for all hours worked at the appropriate rate.
  • Minimum Payment: On each occasion of being called back to work, the team member will receive a minimum payment of 3 hours.
  • Calculation of Time Worked: The time worked will be calculated from the moment the team member leaves home until they return home, taking the most direct route.
  • Providing Evidence: Woolworths may require team members to provide evidence of the time taken for the call back to work.

Higher duties allowance

Team members engaged for more than 2 hours during 1 day or shift on duties carrying a higher rate than their ordinary classification are to be paid the higher rate for such day or shift.

If engaged for 2 hours or less during 1 day or shift on duties carrying a higher rate than their ordinary classification, the team member is to be paid the higher rate for the time they worked on those duties only.

Liquor licence allowance

A team member who is required by law or by Woolworths to hold a liquor licence will be paid an extra $25.96 per week.

Broken Hill allowance

A team member in the County of Yancowinna in New South Wales (Broken Hill) will in addition to all other payments be paid an hourly allowance for the expenses of working in Broken Hill of $0.94.

Source: Woolworths Supermarkets Agreement 2018

General Retail Award-Overtime Rates

When Overtime Is Worked

Full-Time & Part-Time Employees (% of minimum hourly rate of pay)

Casual Employees (% of minimum hourly rate of pay ; inclusive of casual loading)

Monday to Saturday -first 3 hours

150% 175%

Monday to Saturday-after 3 hours

200% 225%
Sunday 200%

225%

Public holiday 250%

275%

General Retail Award-Penalty Rates

Time of ordinary hours worked

Full-time and part-time employees(% of minimum hourly rate of pay) Casual employees (% of minimum hourly rate of pay ; inclusive of casual loading)
Monday to Friday-after 6.00 pm 125%

150%

Saturday-all ordinary hours

125% 150%

Sunday-all ordinary hours

150%

175%

Public holiday-all ordinary hours 225%

250%

General Retail Award-Allowances

Meal allowance

  • work overtime of more than 1 hour; without at least 24 hours’ notice; cannot reasonably return home for a meal
  • $20.01 per occasion
  • overtime exceeds 4 hours
  • $18.14 per occasion

Special clothing allowance

  • $6.25 per week for a full-time employee
  • $1.25 per shift for a part-time or casual employee

Motor vehicle allowance

  • $0.91 for each kilometre travelled

Cold work allowance

  • $0.32 per hour while cold chambers or to stock or refill refrigerated storages
  • $0.50 per hour while cold chamber below 0℃
First aid allowance
  • $12.23 per week

Liquor licence allowance

  • $29.17 per week

Broken Hill

  • $1.06 per hour

How Much They Pay? Latest Woolworths’ EBA

Wages

  • Minimum 8% wage increase per year of the agreement
  • Adult rates payable at 18 years of age

Allowances & Classifications

  • First aid allowance extended to mental health first aiders ($12.23/week)
  • New weekly technology and data allowance of $8.43
  • Higher pay for assistant department managers (Level 5 rate)
  • Higher pay for department managers with 10+ team members
  • Higher pay for self-serve checkout supervisors

Work & Care  – Rostering

  • 4-day work week option for full-time and part-time (averaging 5 days/week)
  • Minimum 15 hours/week for part-time, 4-hour daily engagement
  • 4-hour minimum engagement for casual team members

Leave

  • 5 weeks annual leave with 17.5% loading and penalty rates
  • Personal leave payout into superannuation on termination
  • Increase in days not requiring evidence for personal leave

Source:  Woolworths Supermarkets Negotiations 2023

Comparison Overview for You

Currently, the Woolworth EBA indeed provides higher wages and benefits compared to the General Retail Award, as it’s a tailored agreement negotiated directly between Woolworths and its employees or unions. This results in Woolworths employees enjoying superior wages and benefits in certain aspects, exceeding the minimum requirements outlined in the General Retail Award.

How does Workstem keep compliance automatically, regardless of official award or EBA?

Simplify your payroll process and ensure accurate pay rates with Workstem’s automated payroll system. Our pre-built modern award interpretation software covers 122+ awards and 34 EBAs, and keeps you up-to-date with penalty rates and other award entitlements.

Choose between our Standard and Advanced plans, and enjoy a range of benefits such as Fair Work compliance, an employee self-service App, and customised rule set.

Book a free demo with our payroll experts. Experience the efficiency and accuracy of Workstem today!

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