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Minimum wage rise: consumers will pay

Peak industry body the Australian Retailers Association (ARA) said consumers will pay for today's decision by the Australian Fair Pay Commission (AFPC) to increase minimum wages by $21.66 per week.

ARA Executive Director Richard Evans said while the ARA understands the AFPC's decision is a response to inflationary pressures, it's risky policy.

"Retailers are already under severe financial stress due to a drop in demand and the RBA's attitude to demand driven control of inflation. Retail demand in Australia is a barometer of the economy and if it is struggling it is a sure sign that times are tough.

"This minimum wage increase will surely be passed onto consumers, who are already carrying the burden of increased petrol prices and rising interest rates. In addition, this wage rise will now threaten jobs because smaller retailers simply can't absorb another blow," Evans said.

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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