Retailers call for manageable minimum wage for ‘here-and-now’


Australia : Peak retail industry body the Australian Retailers Association (ARA) called on Fair Work Australia to consider wage bill increases already facing small to medium retailers and apply a realistic and manageable minimum wage increase of $10.50 per week.

ARA Executive Director Russell Zimmerman said ARA’s submission to Fair Work Australia indicated this year’s minimum wage review must not attempt to play ‘catch-up’ or compensate for last year’s nil’ minimum wage increase which was a landmark decision for the time and saved jobs.

“We are operating in a two-speed economy and small to medium employers, including retailers, are still struggling to recover after the economic downturn,” Zimmerman said.

“March retail trade showed a dull increase of 0.3 percent and followed February’s dismal 1.2 percent fall in retail sales. This is indicative of the sort of inconsistent and patchy recovery the sector is facing across the board, with smaller retailers fighting to stay on top of wage bills and hold onto staff while their revenues stagnate.

“The here-and-now for award-reliant small businesses must be the key consideration for any Minimum Wage increase. These are the very employers who will be impacted by the minimum wage rise and they don’t have the capacity to pay the exorbitant increases Unions are suggesting.

“Already retailers are dealing with increased tenancy costs, six interest rate rises in eight months resulting in dampened consumer spend and from 1 July their wage bills will increase under the new Award.

“In a recent ARA industry snap poll, over 40 percent of retail respondents said they planned to respond to wage bill increases by cutting staff hours* - a direct indication of their limited capacity to pay escalating employment costs during a period of patchy recovery.

“Fair Work Australia must look forward, not backwards when considering the Federal Minimum Wage for 2010 and once again make a decision that protects jobs – not one that threatens them,” Zimmerman said.

Source: http://www.retail.org.au/index.php/news/Retailers_call_for_manageable_minimum_wage_for_%E2%80%98here-and-now%E2%80%99

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