A Harvey Norman franchise in Melbourne has defied a directive from the retailer’s head office to cease offering Australian Workplace Agreements (AWA).

According to an article in this morning’s The Age newspaper, the franchise offered an AWA to at least one new employee in May. However, the Federal Government banned the creation of such agreements in late March.

To protect the identity of the employee, who still works at the store, the newspaper did not name the franchise.

Harvey Norman’s human-resources manager, who wished not to be named, told www.connectedaustralia.com today that the company itself did not yet know which of its franchises was involved in the newspaper report.

The manager noted that all franchises administered their own employee paperwork, but had been directed by head office not to offer AWAs.

"Draconian" clauses
According to The Age, a cover letter from Harvey Norman, dated in May, asked the employee to sign the AWA, explaining that if it was not signed the job offer would be terminated.

The AWA would see the employee paid up to $146.49 a week less than the award, depending on commissions, the newspaper reported. The agreement, which sets pay at about $15 an hour, also does not allow for overtime or penalties.

In the article, ACTU president Sharan Burrow described it as "shocking" that a major retailer such as Harvey Norman would continue to try to use AWAs.
 
"This AWA contains draconian clauses allowing the company to sack a worker without notice for minor misconduct and a demand to keep the rates of pay confidential," Burrow told The Age.