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The National Retail Association (NRA) has criticised the Gillard Government’s support for a union campaign to abolish retail youth wage scheme, labelling it another blow to the already struggling industry.

Commenting on the decision, NRA chief executive officer Trevor Evans said the Government “didn’t even bother to consult the industry before joining the union campaign to abolish what is an important mechanism for bringing young people into the workplace”.

“It’s bad for jobs, and it’s bad for business – particularly on the back of the triple whammy on higher penalty rates, higher superannuation levies and national wage rises,” he said.

“This latest move has totally blind-sided Australian businesses and will further drain the capacity of small and medium businesses to provide jobs for young people with lower levels of experience.

“Why would a business provide work to a 18 year old with no experience for the same wage they could pay a 25 year old who is more experienced and skilled?”

Age-based junior wages in the retail industry are currently set independently and, according to the NRA, when last examined the Fair Work tribunal found they were not discriminatory because they provided an entry into the world of work and acted as a proxy for those with lower levels of experience.

“The latest Australian Bureau of Statistics retail trade data and the current cycle of decreasing interest rates all clearly show that retailers are still struggling, “ Evans said.

“Our industry is already being hit by high wage costs, escalating fixed costs and foreign on-line competition and the Gillard Government's move on retail youth wages is just another blow we don’t need.”

The NRA has since made a submission with the Fair Work Commission in support of the retail industry on junior wages.

The NRA is Australia's largest and most diverse retail industry organisation, and has been representing the interests of the retail, fast food and broader service sector for almost 100 years.

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