A Labor stalwart has unloaded on a newly-struck penalty rates deal between the state’s business lobby and the ALP’s most powerful union.

Former Australian Workers Union secretary and Upper House president Bob Sneath says trading off penalty rates is “not the Labor way”, declaring “if Labor politicians stand up in the House and say they support this, they should resign”.

The SA branch of the Shop Distributive and Allied Employees’ Association (SDA) brokered a deal with Business SA – setting a national precedent – that allowed penalty rates to be scrapped on Saturdays and halved on Sundays in return for higher base rates and improved conditions.

Business has been spruiking the scheme, which gives workers a guaranteed three per cent annual pay rise and the right to refuse weekend work. It is voluntary for retailers but could affect up to 40,000 employees if adopted widely.

The SDA controls Labor’s dominant right faction, which effectively handpicks MPs and has given left-aligned Premier Jay Weatherill authority to govern.

Sneath, who retired mid-term in 2012, contacted InDaily to break ranks on the deal and the role played by the SDA, which he insisted was an “association”, rather than a union.

“I think some of these people in charge of associations are a bit naïve when it comes to what the workers need to survive out there,” he said.

“They’ve been paid pretty well, like some of the politicians, so they forget what it’s like to survive on a wage, especially a single wage … it’s a bit of a battle out there.”

SDA state secretary Peter Malinauskas has insisted workers will not be left worse off, with the opportunity to opt out of weekend work.

But Sneath calls that position “naïve”, saying: “I think it’s very dangerous and ask the secretary of the Shoppies’ to reconsider any proposal to play around with penalty rates”.

“It’s naïve to think this won’t result in workers getting discriminated against,” he said.

“This has been happening for years: once someone is prepared to work a lesser rate, nine out of 10 employers take that person … It’s the capitalist putting extra money in his pockets. It’s the capitalists that drive up prices and put down wages, and the union’s going along with it.

“He (Malinauskas) should go away and have a good think about it.”

Ironically, only two weeks ago a statement was posted on the association’s website assuring members that “the SDA continues to protect your public holiday penalty rates”.

It quotes Malinauskas as saying: “If employer lobby groups had their way your public holiday penalty rates would be slashed. The SDA understands that when you’re working on a public holiday you’re missing out on important time with family and friends. We will not allow your penalty rates to be taken away without fair negotiation for other benefits.”

Under the new deal, public holiday penalty rates will fall from 150 per cent to 100 per cent.

Malinauskas told InDaily today the new agreement, “if taken up by employees, provides a whole range of benefits which will leave them better off overall”.

“I’d encourage Mr Sneath to acquire the actual facts of how the arrangement benefits workers, both casual and part-time, before he goes making any comments,” he said.

“I’ve received no request from Mr Sneath to avail himself of the facts of the agreement before he’s decided to make these unfounded comments.”

Sneath, a one-time shearer, argued “if people want to keep down wages, they’ve got to keep down prices of what people are buying”, lamenting that the wage for shearing a sheep had not maintained parity with a schooner of beer in recent years.

“This will go to Woolworths, Coles and that mob, and people that own a chain of pubs … not Mum and Dad in the deli down the road employing a couple of casuals.”

The SDA had already struck similar agreements with major chains.

Sneath called on SA Unions, the major conglomeration of state unions, to oppose the SDA changes.

“Where are the other unions? What are they saying about this character wanting to weaken penalty rates?” he said.

“Don’t they think it will spread? When one lot gets it in, if the employers can see an advantage, others will want it … They always have.”

In a statement to InDaily, Premier Weatherill – who, like Sneath, cut his teeth in the AWU – said the penalty rates deal was “a good example of when unions and business work together to reach agreements that are beneficial to both parties”.