Retailers can’t absorb further costs as a result of the COVID-19 downturn, retail bodies argue.
The National Retail Association (NRA) has stated that due to a $1 billion March hit to retail the Fair Work Commission (FWC) should not impose further costs on the sector and maintain the current minimum wage level.
In its Annual Wage Review Submission, the NRA cited the devastating impact that COVID-19 has had on retail as the key reason why struggling retailers can’t sustain further business costs.
NRA CEO Dominique Lamb said that a survey of its nationwide membership revealed that a staggering 95 per cent of respondents have been negatively impacted by COVID-19.
“The unprecedented economic turmoil has hit the Australian economy harshly, with retail being no exception. By our forecasts, retail lost $1 billion across the month of March, meaning that many jobs and businesses hang in the balance,” Lamb said.
“The NRA has always supported a minimum wage that balances fairness with financial viability, and in the current environment struggling retailers simply won’t be able to afford a wage increase.
“Prioritising jobs during this crisis should be the focus of all industries and that is why we have proposed that the FWC maintain the current minimum wage level.
“Retail was already in a perilous state prior to COVID-19 and the onerous but necessary lockdown restrictions have only seen the situation further deteriorate.”