VECCI’s objection to the Fair Work Commission’s annual national minimum wage increase

VECCI Chief Executive Mark Stone said the organisation "acknowledges that those on the minimum wage deserve a pay rise but the 2.5 percent increase ($16 per week) is well above ACCI’s recommendation that any rise should not exceed $5.70 per week".

Mr Stone said, "The increase must be paid for by business, including small business, many of which are already doing it hard in the current economic environment. 

"Employment on-costs, including 9.5 percent superannuation, workers’ compensation and payroll tax, compound the impact of this increase and will be detrimental to small business cash flow and investment. 

"VECCI is disappointed that there was no deferral of the increase given the fragile economy and persistently high unemployment, especially among young people. Today’s decision takes effect from 1 July 2015," he said.

"Setting the minimum wage is a balancing act but the end result must not put existing and future jobs at risk.

"Higher rates of pay do no good if they are not linked to productivity growth and result in declining employment opportunities."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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