Both associations previously shared their concerns with the commissioning body in the lead up to the decision, advocating that a wage increase of this size would be detrimental for the retail sector. Nevertheless, Fair Work has announced the approval of a wage increase, which is expected to lift the minimum wage to $18.99 per hour for a retail employee.
ANRA and MGA/LRA say the increase in minimum wage will add mounting pressure for retailers in a difficult marketplace, particularly for independents.
MGA/LRA CEO Jos de Bruin said last night: “The announcement today by the Fair Work Commission to increase wages by 2.5 per cent will be challenging for members.
“Wages costs continue to rise and are the biggest cost for our members to do business. This coupled with the burdensome Sunday Penalty rates, is proving to be challenging for independent supermarket owners, liquor stores and other independent retailers around Australia.”
Like Jos de Bruin, Anna McPhee, ANRA CEO recognised the new challenges facing retailers: “The flow on effects of the percentage increase in the minimum wage will be hard felt in the retail sector, which has a higher award and is characterised by penalty rates.”
“[The] decision will affect approximately 370,000 retail workers (or 30 per cent of the retail workforce) currently on the General Industry Retail Award 2010.
“In the current environment of lower business confidence, the increase could slow job creation.
“As an employer of more than 1.25 million Australians and top ten contributor to Australia’s Gross Domestic Product, today’s Fair Work Commission decision can have a sizeable negative impact on the retail sector’s capacity to grow, invest and create more jobs.”
Retailers are currently awaiting the Fair Work Commission’s announcement on how the increase will affect various classifications. Once announced, MGA/LRA will be creating new wage tables for its members.
The increase will be effective from July 1, with the announcement from Fair Work Commission expected to take place over the next few weeks.
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