The Australian Retail Association (ARA) has voiced its concerns for retailers and employees over the minimum wage increase.
The Fair Work Commission awarded a $16 a week increase in the minimum wage, which the ARA has labelled 'unmanageable.'
ARA executive director Russell Zimmerman believes the decision needs urgent reconsideration and is pushing for no more than a $5.70 a week increase.
Zimmerman said that pushing for pay increases during a period of low consumer confidence could result in job cuts.
“The minimum wage increase, coupled with weak trade figures and penalty rates, will only cause further damage to retailers who are struggling to keep their heads above water as it is.
“While interest rates are currently at a record low (with the Reserve Bank of Australia today deciding to keep rates on hold at 2.0 percent) and there is support from the recently released Federal Budget, the retail industry cannot simply keep up with excessive wage increases.”
Changes to the National Minimum Wage will start from July 1st, ensuring a weekly take home of $656.92 per week or $17.29 per hour.