The National Retail Association has dismissed claims by the ACTU that raising the minimum wage by $50 a week will generate 87,000 jobs over two years.
A statement released by the NRA called it a fanciful policy proposal that will crush jobs rather than create them.
The ACTU recently released a reply submission to the Fair Work Commission claiming that a 7.2 per cent increase in the minimum wage would also generate 57,000 jobs in the first year.
NRA CEO Dominique Lamb said the proposal was ignorant of the challenges of running a business.
“Paying workers $50 extra a week is pointless if that same worker loses their job or has their shifts cut due to the business being unable to afford the higher wage.
“A $50 a week increase to the minimum wage smacks of something dreamt up by someone who's never had to pay wages out of their own pocket.
“The proposal from the ACTU is far more likely to crush jobs rather than create them.
“The notion that if you just keep upping the minimum wage, it will magically create jobs is economically flawed.
“By that logic, we could increase it by hundreds of dollars and more jobs would be created from nowhere.
“If the cost of employing people goes up, then the ability to employ people reduces.”