Minimum wage causes maximum employment loss

THE AUSTRALIAN Retailers Association (ARA) is concerned the National Minimum Wage increase of 3.5 percent announced today by the Fair Work Commission (FWC) will stifle jobs growth within the retail sector.

Today the FWC announced the National Minimum Wage will increase to $719.20 per week, or $18.93 per hour from 1 July 2018. The General Retail Industry Award (GRIA) will increase to $789.90 per week or $20.79 per hour for full-time and part-time employees and $25.98 per hour for casuals.

Russell Zimmerman, executive director of the ARA, said Australian retailers were already facing an unsteady trading environment and this increase will be detrimental to the growth and stability of the Australian retail industry.

“Monthly retail sales growth is currently around 2 percent however we would like to see this growth increase to 4 percent to ensure retailers can invest in their business and employ more staff,” Mr Zimmerman said.

“With retailers already struggling to keep their heads above water, today’s 3.5 percent minimum wage increase will stifle retail growth and delay staff employment across the sector.”

As the retail industry is volatile at present, the ARA sought a minimum wage increase of 1.9 percent to increase staff employment by 3.5 percent over the next 12 months.

Given the current state of the sector and recent store closures, Mr Zimmerman said today’s increase would certainly have a negative effect on retailers and could potentially result in job losses.

“The ARA are passionate about maintaining a sustainable wage growth and would like to see retailers given the chance to not only invest in their business, but invest in employment to promote retail as a vibrant career choice for all Australians,” Mr Zimmerman said.

“Today’s minimum wage increase is well above inflation, putting the brakes on employment and innovation throughout the industry, which is detrimental for the retail sector.”

With the Australian retail industry employing over 1.2 million people, the ARA believed a 1.9 percent minimum wage increase would have brought balance back into the industry and preserved jobs for Australia’s largest private employer.

About the Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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