Accommodation group fears minimum wage rise impact on regions

An organisation representing accommodation businesses says it fears an increase to the minimum wage would endanger the viability of many regional providers.

The Accommodation Association of Australia has made a submission to the Fair Work Commission's Annual Wage Review against a minimum wage increase.

The association is primarily made up of regional accommodation providers.

Chief executive Richard Munro says it is a tough time for regional motels and bed and breakfasts and an increase in costs would be devastating.

"All those costs that are being borne by these businesses without getting an increase in their price or their rate will have an eventual impact," he said.

"First of all their prices have been relatively back or going backwards, so if your actual takings are flat and your expenses are creeping up, your bottom line is going to be impacted."

The Australian Council of Trade Unions (ACTU) is calling for a $27 weekly increase.

The peak union group argues the wage has fallen well below the average salary in recent years.

ACTU secretary Dave Oliver told AM, the minimum wage should be $649.

"We are deeply concerned that over the last 20 years we've seen a widening gap between average wage earnings and the minimum wage," he said.

Source: ABC - 02 April 14