Retailers demand zero pay rise for Australia's lowest paid workers   

Sydney Morning Herald
13 March 2018

   

One of Australia's top retail industry groups wants the country's lowest-paid workers to be denied any pay rise this year.      

In an extraordinary submission to the workplace umpire, the National Retail Association - one of the nation's major retail industry organisations - has called for a 0 per cent increase to the minimum wage on July 1.    

While most industry groups have recommended an increase at or near the current inflation rate of 1.9 per cent - which would translate into a modest $13-a-week increase - the Retail Association has called on the Fair Work Commission to give "full and genuine consideration" to withholding an increase altogether.


The national minimum wage affects the pay rates of up to 2.3 million Australians, many of them working in retail.

"Retail is currently undergoing a challenging period throughout the country," the group's submission says.


"Recent data from the Australian Bureau of Statistics show that the sector suffered a 0.5 per cent fall during the traditionally busy month of December and the figures for January 2018 again highlighted poor sales growth.



The Australian Council of Trade Unions has launched a campaign to increase minimum wage.

"During environments such as these, it is vital that retail businesses do not have conditions imposed on them that make it more difficult to operate."

The Retail Association says it is "highly likely" that a recent decision to grant an overtime entitlement to casual employees had resulted in "inefficiencies in the allocation of labour" that had led to a "hidden increase in the average wage".

The organisation did note however that "a very small minority of National Retail Association members have expressed the view that an increase in wages will positively affect productivity".

The union movement - which has called for a 7.2 per cent increase of $50 a week - called the Retail Association's submission "completely out of touch".


“Retail workers are already struggling with historically low wage growth, cuts to their penalty rates and insecure work. They urgently need a pay rise, not a pay cut," said Shop, Distributive and Allied Employees Association national secretary Gerard Dwyer. “If Australian retailers want to improve business, they should be calling for wages increases, not cuts.”

Labor's Brendan O'Connor said the association's position was "appalling". 

"This sector should understand better than any that falling wages affects consumption which will hurt the economy and hurt job prospects. It is a short sighted and callous submission that should find no support from any quarter including the Turnbull government,” he said.   

Another peak group for the $310 billion retail industry, the Australian Retailers Association, recommended a 1.9 per cent increase - a $13.20 per week rise that would take the national minimum wage to $708.10.

It says such an increase would be "realistic and reasonable", taking into account the slowly-improving economy, current and imminent wage bill increases for industries undergoing structural adjustment, and underemployment. The commission's recent wage decisions had been "generous", it said.

"We ask the panel to consider high national minimum wage increases over recent years as
compensation that the economy, employment levels and businesses can no longer afford."

The commission last year awarded a 3.3 per cent increase of $22. The ACTU had asked for a $45-a-week increase, while business groups had asked for between $8 and $10. The Retail Association asked for a 1.2 per cent increase for 2016/17.

The Australian Chamber of Commerce and Industry has also recommended an increase "not exceeding 1.9 per cent" this year.

"This is higher than the increase we recommended last year, acknowledging that key
economic indicators, when national aggregate data is considered, suggest signs of
improvement in the economy and labour market relative to last year," the organisation said in its submission.

"However we are also cognisant that these improvements in the economy and labour market are not consistent across all regions, states, territories and industries."

The ACTU's record claim - which would increase the full-time minimum wage to $744.90 a week - drew the ire of Australian Industry Group chief executive Innes Willox, who said it had been "plucked out of the air".


"The claim is nearly four times the current rate of inflation. If accepted by the Fair Work Commission, the claim would destroy jobs and harm low-paid workers," he said.

About 200,000 Australians are paid the minimum wage directly but it affects pay rates for a further 2 million award-reliant workers. The Fair Work Commission will deliver its decision by June.

   

You have to ask, besides not having to leave home, why people are shopping online?

I believe it's because our retailers are marking up the same cheap charlie chinese/Indian/Bangladeshi clothing by 3 & 4 hundred percent or more.

Our electrical retailers are worse.

The labour costs should be low if their business model is a good one.

None of them ever want to give staff a pay rise .... it only ever comes about when it is mandated by the Fair Work Commission.

And on the rare occasions that does happen they are always kicking & screaming howling doom & gloom.

Some of our lowest paid haven't had a pay rise in over 7 years.

And they are expected to cop all the increases in retail prices that are put upon them to live & eat as retail consumers.

Gnads wrote on Mar 14^th, 2018 at 7:51am:


Retailing is for many the traditional first job only a minority would stay at the lowest level or in the industry at all. Unfortunately for the low skill less motivate people this is an industry under stress the biggest competition is online. Its such a small part of the employment market that draws way too much media attention.

For me its not so much the savings its the time, for me shopping is not therapy.
Often when you go to a store they don't have the item in stock.
Online is Superior in most was except instant gratification.

Small part of the employment market?

Retail makes up 11% of the market.

Health Care and Social Services is the only group with a higher percentage (around 13%).

RightSaidFred wrote on Mar 14^th, 2018 at 8:50am:


That's not what you said, though.

You specifically singled out retail employees.

Try harder in the future, please.

BigOl64 wrote on Mar 14^th, 2018 at 9:52am:


Its not the "labor/green" dream its the government dream. All the parties seem to want to make the poor poorer and the rich richer.

Spot

Sir Spot of Borg wrote on Mar 14^th, 2018 at 10:08am:


No this is about industry sustainability the quicker way to make them poorer would be to double the minimum wage so half of them would have to go on the dole.

Sir Spot of Borg wrote on Mar 14^th, 2018 at 10:08am:



I think you'll find it is the labor / green coalition that demands sh1t tourism jobs be prioritised over proper jobs. They will actively destroy good mining jobs to make sure that these sh1t tourism jobs are maintained.

No-one wants these types of povo jobs, but soon that is all there will be left for us.

RightSaidFred wrote on Mar 14^th, 2018 at 11:26am:


Well shorten and puddle duck are working hard to destroy our mining and construction jobs, so no matter what qualifications you have, you'll be cleaning toilets and washing dishes as that is about all we will have thanks to their belief in low paying tourism jobs. 

BigOl64 wrote on Mar 14^th, 2018 at 12:59pm:


A lot of cleaners are self employed contractors, I know one guy does body corporate cleaning makes $200-$400 per complex cleaning common areas. does about 10-20 per week, drives a brand new SS Commodore. Our house cleaners are the same, 2 of them show up for about 1.5 hrs and they make $130 that is $43 / hr. They do the cleaning for a lot of our friends. I forgot to leave the money out once so I drove to their house to drop it off.  5 Bedroom house with a swimming pool ..... the whole family is involved in the business.

Gnads wrote on Mar 14^th, 2018 at 7:51am:


I can buy a double outlet plug for $25 off line or I can get a pack of ten for $34 online.

What would you ask me to do?

RightSaidFred wrote on Mar 14^th, 2018 at 11:26am:


You cannot expect the minimum wage to stay stagnant for years & years & still expect those people to pay for the ever increasing prices on all retail consumables, electricity, rent, rates, rego, public transport, etc. etc.

It's absolutely ridiculous to suggest reasonable wage growth against increased costs is only a concern to retail business.

To say - like they do - that every time there's an increase in the minimum wage it's going to impact employment growth or cost jobs is just scaremongering. 

Trickle down economics has been an abject failure & has not created more employment one iota.

Baronvonrort wrote on Mar 14^th, 2018 at 12:10pm:


How much is yours worth?

You're another Joe Hockey ... what an elitist arrogant arsehole he is..... where do you fit in there?

I bet there are thousands of TA's, labourers & low paid workers across this country that work harder than you ever have.

You ought be ashamed of making that comment.

Gnads wrote on Mar 14^th, 2018 at 7:03pm:


I see so how many operating coal power plants have they shut down ?
So what has the coalition sold off to foreign nationals ?
Sounds like you think like a communist to make such a daft statement

Meanwhile people with degrees are slinging burgers at Macfries and Hungry Jills....

Grappler Truth Teller Feller wrote on Mar 14^th, 2018 at 10:06pm:


Maybe certain degrees and for how long ?

This is the thing I seem to be the only one pointing out minimum wage jobs are very transient for most. Why would you hang around in a minimum pay job unless you have capability issues which would be the minority.

In some areas minimum wage might be a living wage in most I assume it would not will never be ..... with or without the $50 the dodgy unions are asking for.
Its called minimum wage for a reason

Gnads wrote on Mar 14^th, 2018 at 7:03pm:



Most of QLD assets were sold off by Disaster Anna 1 and that fkkwit Beattie. And they were kind enough to sell almost everything as well as leave a massive debt.

BigOl64 wrote on Mar 15^th, 2018 at 8:08am:


Beattie in his new gig is really keen on the Cronulla Hawks
Loves those St George Muffin Biters or those Manly Turtles
The guy has not changed he is still clueless.

BigOl64 wrote on Mar 15^th, 2018 at 8:04am:


The LNP didn't regionalise anything either ... in fact they cut more services to regional QLDers.

Slash & burn ... L oot N P illage.