Small businesses pay cost of wage increase
Both the Queensland-based National Retail Association (NRA) and the Victorian-based Australian Retailers Association (ARA) have added their voices to those criticising last week's decision by the Federal Government's wage-setting body to award an increase of $27.36 per week for all pay scales up to $700 a week. A pay rise of $22 a week has also been awarded to workers earning $700 a week or more.
ARA chief executive officer David Edwards said the decision had shocked retailers and would be unsustainable by many in the sector.
Edwards singled out those in the apparel industry as among those likely to "hurt" the most from the decision.
"The decision means a whopping $1750 per year increase for shop assistants that regularly work key retail trading hours including Saturdays and Sundays. The figure is even higher once the flow on the superannuation and payroll tax is taken into consideration."
NRA executive director Patrick McKendry said the increase was 50 per cent more than the highest general wage increase ever awarded by the AFPC predecessor and employers were entitled to expect consistency in outcomes of wage fixing tribunals.
"In failing to deliver a decision which was consistent with past increases, the AFPC has placed at risk the viability of many small retailers who are struggling to survive in the face of intense competition, slowing consumer spending and increasing rents."
Edwards said the ARA was "extremely disappointed" the commission had ignored its calls to take into consideration the real cost of wage increases in a sector where penalty rates attach to busy trading times.
At Christmas, retailers would now be paying up to a public holiday rate of $37.63 per hour on Boxing Day, New Year's Day, Australia Day and over Easter, he said.