Cotton On: Deal struck over tea breaks, wages

  • Breaking
  • 01/04/2015

Working conditions for employees at Cotton On have substantially improved since the company received bad press for planning to cut tea breaks last month, FIRST Union says.

The clothing business planned to remove paid tea breaks for its workers when an amendment to the Employment Relations Act came into effect in March. The law change relaxed the rules around breaks and made them negotiable, rather than obligatory.

The company later bowed to pressure over the proposal, ensuring workers would continue to be paid for their smokos.

First Union's general secretary Robert Reid says Cotton On has now struck a deal with the union and workers.

"Cotton On’s chief financial officer arrived from Australia for the negotiations and we managed to settle on substantial improvements to wages and working conditions," says Robert Reid.

"Not only were rest and meal breaks restored, but wages were lifted from levels around the minimum wage to levels approaching the living wage. The new collective agreement also includes a redundancy package and penal rates for overtime work." 

Mr Reid says workers at the company's distribution centre were pleased with the outcome.

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source: newshub archive