NATIONAL: The Australian Retailers Association (ARA) has called for Award wage rises to be deferred for at least a year to protect jobs amid the downturn.
The move follows an ARA industry poll - undertaken from March 10 to 11 - showing increased wage bills would force over 65 percent of SME retailers to shed staff in the current economic climate, confirmed ARA executive director Richard Evans.
"With unemployment at 5.2 per cent and rising, retailers don't need the pressure of increased labour costs which will cut jobs. No other economy in the world is introducing new labour laws in the context of the global financial crisis and retailers need certainty and stability before they can cope with wage increases."
Struggling smaller retailers would need at least 12 months before they could manage wage increases without shedding staff, depending on the economic outlook, Evans said.
"The assumption inherent in the 'modern' retail award is that retailers are mass employers. The reality is small business is the engine room of the modern economy and small retailers simply cannot afford another blow in this tightening economic climate."
With a deal on the table from industry union the Shop Distributive and Allied Employees Association (SDA) allowing pay rises under the Modern Retail Award to be introduced over a five year period, a 12 month deferral remained the priority.
"Retailers have been calling for flexibility in the Award Modernisation process and we welcome the first sign of reasonable negotiation from the unions."