Another challenge for businesses.
The Australian Council of Trade Unions (ACTU) claims that raising the minimum wage by $50 a week will generate 57,000 jobs, but the National Retail Association (NRA) has described the claim as “a fanciful policy proposal” that will crush jobs rather than create them.
On Thursday, the ACTU released a reply submission to the Fair Work Commission claiming that 87,000 new jobs would be created over two years by a 7.2% increase in the minimum wage with almost 60,000 jobs generated in the first year.
NRA CEO Dominique Lamb has said the proposal was ignorant of the challenges of running a small business. “Paying workers $50 extra a week is pointless if that same worker loses their job or has their shifts cut due to the business being unable to afford the higher wage,” she said.
“The proposal by the ACTU will just provide yet another challenge for mum-and-dad small business owners trying to make ends meet. A $50 a week increase to the minimum wage is out-of-touch from the realities of running a small business.
“The notion that if you just keep upping the minimum wage, it will magically create jobs is economically flawed – by that logic we could increase it by hundreds of dollars and more jobs would be created from nowhere.
“Small business owners are not charities who can afford to just bankroll higher and higher wages. If the cost of employing people goes up, then the ability to employ people reduces,” Lamb added.