Disappointing wage increase does not reflect business reality
All All Industry Insights Industry News Media Release Member Only Articles NRA Events NRA Legal NRA Partners NRA Projects NRA Training and Development Policy & Advocacy Policy Updates Technology Tenancy & Leasing Testimonials Thought Leaders Weekly CEO Update WHS Update

Disappointing wage increase does not reflect business reality

June 02, 2015

The National Retail Association (NRA) said today’s 2.5 per cent national minimum wage increase did not reflect the reality of employment and business conditions for Australian retailers.

NRA CEO Trevor Evans said the increase awarded was particularly disappointing in an environment where youth unemployment is growing at an alarming rate.

“At a time when the Australian retail industry is only just returning to average sales growth on the back of a long period of incredibly challenging times, today’s increase will only hinder businesses,” Mr Evans said.

“Australian business owners are already dealing with some of the highest wages in the world, in addition to irregular shop leasing agreements, which vary from state to state, causing confusion and adding unnecessary costs and regulatory burden to retailers.

“This decision is even more concerning given that the Commission acknowledged concerns about suppressed economic growth and rising unemployment.

“Many businesses will be held back from increasing staff numbers or hours, amid the often unavoidable trade-off between jobs and wage increases that aren’t strongly linked to productivity or efficiency gains.

“It comes at a time when retail employers are facing unprecedented competition from online, overseas-based retailers,” he said.

The 2.5 per cent increase will be applied to industry awards including those covering the retail, fast food and the hair and beauty sectors.

“This policy decision could be damaging for businesses, workers and consumers, considering the uncertainty of the sector’s performance in recent times.

“Coupled with other cost burdens, the rise could end up having the opposite of its desired effect by leading to an overall reduction in employment levels, leaving some workers worse off in the long run.”
The NRA is Australia’s largest and most diverse retail industry organisation, and has been representing the interests of the retail, fast food and broader service sector for almost 100 years.¬†


NRA Media

  • National Retail Association strengthens support for members on leasing and tenancy
    June 01, 2021

    We are pleased to have strengthened our partnership with Lpc Cresa, a leading advisor to retail tenants across Australia and New Zealand, to assist our…

    Read More
  • ELECTION NOTICE
    September 03, 2018

    To download the nomination form, click here

    Read More
  • Closing Loopholes Bill No. 2 passes Parliament¬†
    February 20, 2024

    Earlier this month, it was confirmed that both Houses of Parliament passed the second tranche of amendments to the Fair Work Act 2009 (Cth) under…

    Read More
  • Jump start your business for 2021 and step ahead of the competition
    November 20, 2020

    2020 has undoubtedly been one of the most challenging years for all of us. It has created unprecedented trends in every industry, and shown retailers…

    Read More
  • NRA members winners in new partnership with Aussie Broadband
    November 16, 2020

    You must be logged in to view this content.

    Read More

What our clients say

Want to chat?
Contact our team today!