Wage rage

Last month's increase in the minimum wage will pound those sectors already experiencing record insolvencies

The Fair Work Commission Minimum Wage Panel last month decided to lift the national minimum wage to $622.20 per week or a 2.6 per cent increase. R&C Australia chief executive officer John Hart said the decision rejected arguments for differential treatment for sectors that are experiencing record insolvencies and business related bankruptcies.

The Fair Work Commission acknowledged that the carbon tax and planned superannuation increases were taken into account in awarding a lower increase than last year, however, small businesses must find a way to pay these ongoing increases, Hart said. The multiplier of penalty rates will mean that this decision will increase the hourly rate of a typical casual waiter working on a Sunday from $33.90 per hour to $34.88 per hour, including the superannuation levy. This rate will, for most businesses, compound the reason to curtail trading on Sundays, Hart said.

R&C workplace relations director Greg Parkes said the Fair Work Commission decision ensures Australia has one of the highest minimum wage systems in the world and creates a disincentive for small business entrepreneurs to invest in Australia. Mr Parkes said he was disappointed that the Fair Work Commission rejected a differential rate for small businesses as these businesses do have different cost structures compared to large businesses.

Source: Restaurant & Catering Magazine, 5 July 2013