The South Australian Business Chamber Executive Director Industry and Government Engagement, Anthony Penney, said the increase would make it difficult for business owners to absorb the extra wages, and could make them question whether they can afford to take on new staff.
“South Australia’s businesses have already been hit with spiralling electricity, gas and water costs in an economy still shifting to absorb the loss of auto-manufacturing,” Mr Penney said.
“The South Australian economy has been slowly turning in the right direction, but today’s decision will make it harder for employers to continue on that pathway.”
Since the Fair Work Commission started setting the National Wage increases in 2010, it has been set consistently higher than national and state inflation averages. In the year to March, South Australia’s CPI increased 2.3 per cent, and the national rate at 1.9 per cent, which is significantly below the 3.5 per cent increase awarded to both the national minimum wage and all Modern Awards.
Mr Penney said the Fair Work Commission had not placed enough emphasis on the states which were struggling under tough economic conditions.
“South Australia is already battling significant underemployment, high youth unemployment, and the second lowest labour force participation rates in Australia,” he said.
“The Fair Work Commission’s decision to increase the minimum wage by 3.5 per cent is a significant disincentive to South Australian employers taking on more staff, and unhelpful to an economy struggling to grow.”
In light of this decision, Mr Penney said, it was time for the key independents and minor parties to stand up for employers and the South Australian economy by supporting the new State Government’s promised payroll tax reforms and changes to shop trading hours, to help businesses grow.
For interviews and comment please contact Verity Edwards, Director of Media and Communications on (08) 8300 0221 / 0412 678 942 or email veritye@business-sa.com
