PEAK retail industry body the Australian Retailers Association (ARA) is severely disappointed with the Minimum Wage Panel’s decision today to increase the national minimum wage by 3 percent.

ARA Executive Director Russell Zimmerman said this increase, which takes effect from the first full pay period after 1 July 2014, will increase the full time Retail Employee Level 1 rate to $703.90 per week (or $18.52 per hour), thereby adding to the stress retailers are already facing in the current economic climate.

“This minimum wage increase, together with sluggish retail trade figures and penalty rate rises under Fair Work Commission awards, will only cause further damage to retailers who are struggling to keep their heads above water as it is. Tuesday 1 July 2014 will see the last transition of penalty rates – meaning Sunday rates will increase to double time and Saturday rates will increase to time and a half.

“With most small to medium retailers being reliant on a minimum wage workforce under the General Retail Award, any move to increase wages within the sector during this time of low consumer confidence and low growth will only further job losses currently underway within the sector – a very distressing truth for retailers.

“The ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $8.50 or 1.3 percent in the 2014 Minimum Wage Review.

“The retail industry makes a significant contribution to the overall state of the national economy and employs more people (including more juniors) in Australia than any other private sector industry. The retail industry is more reliant on pay scales than any other industry, and also suffers a higher disproportionate effect in minimum wage increases than other industries due to deregulated trading hours and penalties across all retail awards.

“In response to ACTU Secretary Dave Oliver’s comments earlier regarding ‘productivity has been growing at its fastest pace in over the decade’ – this is simply incorrect.  Productivity growth over the year to the March quarter was 2.7 percent, and there have been many periods in recent years when it has been higher and sometimes lower. Productivity growth of 2.7 percent is simply in line with the average pace of expansion seen over the last five years.

“Earlier this year the ARA also condemned the FWC’s inexplicable decision to abolish junior wage rates for 20 year old employees. Retailers are still fuming over this decision which has certainly changed the face of employment for junior employees at a time when youth unemployment has never been higher. 

“For retailers to now be slammed with further costs through an increase to the minimum wage is simply unwarranted, and sadly, we expect to see many retail businesses reduce their staff further this year as a result.

"Today’s decision is not sympathetic to the small business economy which it bluntly attacks,” Mr Zimmerman said.

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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CHIEF Executive Mark Stone says VECCI does not dispute that those on the minimum wage deserve a pay increase but the $18.70 per week increase is significantly in excess of VECCI’s recommendation of an $8.50 per week maximum. 

"Despite acknowledging the weak growth in hours worked, continuing high youth unemployment and a falling full-time employment to population ratio, the Fair Work Commission has again ordered a minimum wage increase in excess of the rate of inflation," Mr Stone said.

"At the end of the day, business foots the bill and this 3% increase must be paid in addition to the further 0.25% increase in the Superannuation Guarantee Levy from 1 July 2014, putting further pressure on those Victorian businesses already facing increased costs of doing business and challenging economic conditions.

"VECCI is disappointed that there was no deferral of the increase in whole or in part for some struggling sectors of the economy such as retail, tourism, restaurants and catering, hospitality and manufacturing.

"Setting the minimum wage is a balancing act but the result must not end up being a barrier for entry into the employment market that discourages employers from taking on people or places existing jobs at risk," he said.

"Higher rates of pay do no good if the jobs that pay them disappear and recruitment opportunities, particularly for young people, dry up."

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The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

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PEAK retail industry body the Australian Retailers Association (ARA) congratulates Yasmin King on her new role as Chief Executive Officer of Service Skills Australia (SSA) and thanks predecessor Jeanette Allen for her 10 years of outstanding service to SSA and the retail industry.

ARA Executive Director Russell Zimmerman said the ARA and ARA Retail Institute have always had a strong working relationship with Jeanette Allen during her time as CEO of SSA.

“On behalf of the ARA and the retail industry, I would like to wish Ms Allen all the best for her future endeavours.

“The ARA and Retail Institute have also maintained a strong working relationship with Yasmin King during her time as Small Business Commissioner for NSW.

“We congratulate Ms King on her new appointment and look forward to continuing a long and fruitful relationship once her new role officially commences on 17 June,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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THE Victoria Events Industry Council (VEIC) has praised the announcement that Melbourne will host a rugby league State of Origin match in 2015, for the significant benefit it will bring to Victoria’s tourism industry.

The match reportedly has the potential to bring $20 million to Melbourne and VEIC Chief Executive Dianne Smith says business across the industry will reap the rewards.

“It will be wonderful to have State of Origin at the MCG again for the first time since 1997,” says Ms Smith.

“There will be significant flow-on benefits throughout the economy to hotels, restaurants and visitor attractions from the Victorian and interstate visitors coming to enjoy the match and experience what our great state has to offer.

“This reinforces Melbourne’s credentials as a global leader for sporting events and complements a rich calendar of events across a range of sectors.

“In the past State of Origin has played host to sell-out crowds of up to 100,000 fans, so we look forward to people getting behind it once again.” 

Ms Smith says Melbourne will be showcased nationally as four million television viewers around Australia reportedly watched last week’s match.

Victorian rugby will also benefit, as the event will enhance the reputation of local team, Melbourne Storm, and grow the popularity of the game throughout the state.

www.vtic.com.au

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