Government opposes push to slash penalty rates

An attempt to wind back penalty rates has been opposed by the federal government, in a bid to protect workers' wages and rights.

Workplace Relations Minister Murray Watt will file a submission to the Fair Work Commission in response to a proposal that would allow retailers to take away penalty rates, meal breaks and overtime pay for a 25 per cent pay rise.

"We're for pay rises, but we don't think that minimum safety net conditions ... should be stripped away for what will end up being a fairly small pay rise for low-paid workers," he told ABC on Friday.

"If anyone thinks that Woolies and Coles and the other big retailers are doing this to pay their workers more ... well, I've got a Sydney Harbour Bridge to sell you."

While some workers may prefer this offer, Senator Watt says negotiations should take place in a "safer, more supervised context" like enterprise bargaining.

About one million Australian workers are covered by the retail award, and many earn about $54,000 a year.

The Australian Retailers Association, which filed the original submission, claimed changes could help simplify General Retail Industry Award.

"But you can simplify award without cutting workers pay," Senator Watt said.

"We need to remember that the workers we're talking about here are not highly paid people ... (they) don't have enormous bargaining power, and we need to preserve those minimum conditions through our safety net.

"We want to see wages grow in this country, not go backwards, and we're prepared to step in and try to protect penalty rates and those other conditions."