The Fair Work Commission has approved unprecedented changes to the vehicle-industry award as the ongoing COVID-19 pandemic continues to leave car dealerships around the country in desperate need of assistance.

With social distancing measures driving consumers away from dealers as the country looks to get on top of the spread of the virus, new car sales for the month of April plunged to depths not seen since the early 1990’s.

However, while the industry continues to struggle through these unprecedented times, most dealers have found themselves unable to access Government funding like the JobKeeper Payments, placing an even larger financial burden on them as revenue dries up.

Worried employers have spoken out, warning that job losses and business closures are imminent unless more is done to support them.

“This is an industry in crisis,” said a joint employer submission to the Fair Work Commission. “Naturally, the measures proposed in the application cannot arrest this unprecedented slide in vehicle sales.

“Employers will inevitably need to make difficult decisions about how they structure their businesses in future, which will likely involve some job losses and no doubt business closures.”

Listening to the pleas of employers and unions, the Fair Work Commission has decided to approve an agreement to temporarily alter the Vehicle Manufacturing, Repair, Services and Retail Award 2010.

Under the changes, dealerships and repair shops may opt to reduce employees’ hours, allowing them to retain staff rather than letting them go while reducing wages for the meantime. Employers will be allowed to reduce the hours of full-time staff to 60 per cent of normal hours worked, while for part-time staff, employers may reduce hours to 75 per cent.

Employees who have their hours cut may choose to request secondary employment, training or professional development during this time, while employers may also ask employees to take annual during this period, as long as the employee retains a minimum two weeks leave.

Source: The Australian (subscription required) | Coronavirus: IR deal altered as car sales plummet

12 May 2020