The National Retail Association (NRA) has condemned the Fair Work Commision's decision to life the national minimum wage.
The NRA believes that the 2.4% increase could trigger job cuts across the retail sector as small businesses struggle to cope with added financial impost.
“The NRA proposed a sensible 1.6% increase, which was calculated with regard to the economic trade-offs between factors such as unemployment levels, productivity gains in the sector, business conditions, and the inflation rate as a measure of the increased cost of living.
“The 2.4% increase, which is above the current rate of inflation, seems to imply that there is a significant productivity component included in the decision.
“This is contrary to the conditions that are currently being experienced in the retail industry.
“It highlights a fundamental problem with centralised wage fixing decisions, which do not adequately consider the economic conditions that exist in individual industry sectors.
“Our proposal was the same as that of the Australian Industry Group, however a number of other groups proposed much lower increases.
“We believe our proposed 1.6% would have been a far more equitable outcome in the midst of a very challenging economic period, and at a time when retail employers are facing unprecedented competition from online, overseas-based retailers."
Despite its criticism of the wage increase, the NRA has applauded the Fair Work Commission for rejecting the Australian Council of Trades Union's proposed increase of $30 per week to minimum wages.