The Australian Retailers Association (ARA) has proposed a 1.2% national minimum wage increase.
ARA executive director Russell Zimmerman said the increase addresses "fragility" in the retail sector.
“Our members have experienced significant cost pressures through international competition and reduced margins therefore we strongly recommend this wage increase remains realistic and reasonable for all businesses operating in the retail sector.
“We trust the Fair Work Commission will ascertain the best approach for determining a federal minimum wage increase during this fluctuating period where large sectors of the economy are either in decline or receiving minimal growth.”
Zimmerman said Australian retailers are continuing to face a difficult operating environment and this increase is the best way to preserve employment within the retail sector.
“Given economic uncertainties, historically low inflation along with rising costs for retailers this 1.2% increase will minimise employment losses in the weak labour market,” Zimmerman said.
The ARA consulted its membership base, including large members and numerous small to medium Australian retailers, in making its recommendation.
“The retail industry’s submission has outlined the difficult trading environment existing in the retail sector as a result of globalisation and advances in technology throughout the industry,” Zimmerman said.
“With low to flat price growth and increased wages costs well above our international competitors, it’s critical that the Fair Work Commission take into account the weak economic trading conditions when making their decision."