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Wage Increase Will Add To SME Strain And Unemployment

June 3, 2015 Association No Comments Email Email

The Accommodation Association of Australia (AAA) believes the 2.5% wage increase announced by the Fair Work Commission (FWC) today may place further strain on many accommodation businesses, particularly on smaller businesses which are already experiencing difficult trading conditions. The increase will have a multiplier effect on penalty rates, which already is a disincentive to employ more staff when those penalties apply.

The Fair Work Commission has announced a 2.5% wage increase, to take effect from the first full pay period on or after 1 July 2015.

“The Accommodation sector has been beset by increases from a number of sources over recent months and this increase will only serve to further strain an already challenging business environment particularly for SMEs, and regional operators”, said AAA, CEO, Richard Munro.

The increase will add $16 to the minimum national wage from July 1. Award employees in all award classifications will receive an increase of 2.5%. Wages for junior employees and for trainees and apprentices will also increase.

The commission believes the increase to be a modest one, saying that against a backdrop of low inflation, they hoped the modest increase would promote greater social inclusion, assist low paid employees and increase participation.

The Association will publish the new award wage schedules and summaries in the near future and make those available to members as soon as they are prepared.

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