Among weak trade and political uncertainty.
The Fair Work Commission has awarded a $15.80 weekly increase in the minimum wage. From 1 July 2016, the National Minimum Wage will increase to $672.70 a week, or $17.70 per hour. For retailers it will see the rate for shop assistants increase by $17.30 per week to $738.80 per week, or $19.44 per hour.
Australian Retailer’s Association (ARA) executive director Russell Zimmerman advocated before the tribunal a minimum wage increase of no more than $7.90 per week for the retail sector.
“We are concerned about the effects this decision will have on retailers and young Australians. They have been reliant on pay rates to enable retail to bring on low-skilled young staff and increase their skill levels, reducing youth unemployment.
“Many small to medium enterprise retailers are reliant on a minimum wage workforce and to increase wages during this time of low consumer confidence and low growth will sadly result in further job losses and business closures,” Zimmerman explained.
“The minimum wage increase, coupled with weak trade figures and penalty rates, will only cause further damage to retailers who are struggling to keep their heads above water as it is. With nervousness during the election period, weakening retail trade figures and global economic concerns the retail industry cannot simply keep up with excessive wage increases,” he said.