Controversy surrounds a push from the Victorian Government to consider an additional public holiday on the eve of the AFL Grand Final, which according to MGA would be “catastrophic” for small businesses.
The body attests that an increase in the number of public holidays has already shaped to be a financial disaster for independent retailers in the state, siting proof from the recent declaration of Easter Sunday as a public holiday (marking four public holidays in a row over the Easter break).
“The declaration of Easter Sunday as a Public Holiday has cost our members more than $1.4 million in additional wages,” explains MGA CEO, Jos de Bruin.
“For the first time in recent memory, many smaller independent supermarkets and liquor stores were closed for trading on Easter Sunday.
Should the Friday before the AFL Grand Final become a Public Holiday, this will cost our members, independent supermarkets and liquor stores, more than $3.2m in additional wages. This is economic vandalism and is simply unsustainable for small businesses, let alone big businesses to absorb.”
Mr. de Bruin further queries the actions of the State Government on the need to impose, or even consider imposing, these new costs burdens on retailers.
“The Andrews Government might argue that there are social and economic benefits for Victoria by introducing additional State public holidays but there is also a massive downside for employers.”
Currently, a casual adult employee working on a public holiday receives $52.21 per hour under the retail award, almost $14.24 more per hour than working on a normal Sunday and $28.48 more per hour than working the Friday before the AFL Grand Final as a non-public holiday.
“How can a small independent grocer or liquor store, who is already struggling with high penalty rates, carry this additional cost burden?” Mr. de Bruin asked.
In Victoria there are over 1,500 independent supermarkets and liquor stores trading under various brands including FoodWorks, Friendly Grocer, IGA, IGA Xpress, Supa IGA, Bottlemart, Cellarbrations, Duncans and The Bottle O. Collectively, they employ 28,000 people and contribute $4.7b in sales per annum.
Stores range in size from small, medium and large, employing full time, part time and casual staff and are often a focal point of the communities they trade in.
“This is a poor economic decision at a time when unemployment figures are increasing, productivity levels are declining and there is increasing homelessness amongst young potential casual employees. No small business can carry such a massive financial imposition.
The government seems to be ignoring the need to grow job opportunities instead Mr Andrews is destroying them. Let’s hope that the government is realistic when it comes to making the AFL Grand Final Eve a public holiday and let’s hope that common sense will prevail.”
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