Restaurant sector backs call for minimum-wage freeze   


    The Australian
    March 15, 2018


Restaurants and cafes have backed retailer calls for a zero pay increase for the nation’s lowest-paid workers, claiming challenging economic conditions justify a minimum-wage freeze.   

Restaurant and Catering Industrial, representing 45,000 restaurant, cafe and catering businesses across the country, said a significant minimum-wage rise would jeopardise employment growth.

The call for a wage freeze mirrors the push by the National ­Retail Association and, if granted, would represent a pay cut for minimum-wage employees, given the inflation rate.   

In a submission to the Fair Work Commission, RCI criticised the past two annual increases awarded by the tribunal, describing last year’s $22.20-a-week rise as “overreach”. “RCI ­argues that the prevailing economic conditions do not warrant any increase in the minimum wage,’’ it said.

Jane Liu, who has run the boutique Hair Additions in an arcade off the Bourke Street Mall in Melbourne’s CBD since 1994, backed a minimum-wage freeze. “If you don’t freeze it, Australian young people will lose their jobs. There is no chance for them to find these jobs,” she said. “With rent going up, wages going up, we make nothing. Six years ago it was no problem. We had people, we gave them a pay rise, big bonuses at the end of the year, because the business made money. But now we don’t make money. We can’t ­afford to hire staff anymore.”

ACTU secretary Sally McManus said the “retail bosses union” was demanding no one gets a pay rise. “Have they worked out who buys their stuff?’’ she said. “Workers can’t spend money they don’t have.”

Master Grocers Australia, whose members included IGA, FoodWorks, Bottle O and Mitre 10, called for a maximum below-inflation increase of $7.60 a week.   

“Increases in labour costs associated with wage increases in ­recent years have been borne by small businesses as opposed to their large counterparts (eg Coles and Woolworths) whose operations are governed by enterprise agreements with favourable penalty rates,’’ it said.

“If independent retailers need to cope with an unreasonably high wage increase they will have no choice but to ­implement measures such as staff reductions, and the employment and allocation of more shifts to juniors in preference to senior staff members. There would also be an increased risk of redundancies or, at the most extreme, store closures.”

Along with the Australian Chamber of Commerce and ­Industry, the Australian Retailers Association called for a 1.9 per cent, or $13.20-a-week rise, in line with inflation. The shop assistants union said the call for no increase was a slap in the face for hardworking employees.

 

whiteknight wrote on Mar 15^th, 2018 at 5:51am:


That is one of the toughest business sectors to operate in the stats are very bad ..... if your such an expert in stuff you just cut and paste why not start a restaurant and go figure it out your self.

You say fair what does that mean ?
Wage growth is at a snails pace so its fair they get little or nothing !

You such a shallow character that just bleats irrelevant rubbish !

RightSaidFred wrote on Mar 15^th, 2018 at 6:08am:


Tough, eh? They should close down their businesses, stop bleating about how tough things are - and find something that makes a bit more profit.

^ Too many cafes, in fact.

Its not the wages that are the problem. Its the electricity.

Spot

Sir Spot of Borg wrote on Mar 15^th, 2018 at 7:15am:


You can cut staff but not electricity ..... sorry your wrong with a $50 / week rise that would be more likely.

Brendon wrote on Mar 15^th, 2018 at 6:39am:


Yes, that's pretty well what is likely to happen. Pushing any cost, including wages above the market clearance rate only subdues demand. Wages growth is only sustainable in the long term with productivity growth.