Swedish fast fashion giant H&M has failed in a bid to cut its wages bill at the expense of workers after the Fair Work Commission dismissed its enterprise agreement.

The application was thrown out on the basis that it failed to satisfy the so called better off over test or BOOT and would have left some workers worse off than if they were paid under the award, particularly staff rostered on weeknight and weekend shifts.

H&M's attempt to side-step costly penalty rates suggests major corporations believe they can get away with paying less than the award rates in Australia, according to Retail and Fast Food Workers Union spokesman Josh Cullinan.

"I think this reveals Australia is seen as a soft touch for retail and fast food workers," Mr Cullinan said.