Friday, 19 June 2020
The South Australian Business Chamber says a 1.75 per cent increase to the national minimum wage is disappointing for South Australian businesses owners who are facing an uncertain future amid the global COVID-19 pandemic.
Fortunately, today’s decision from the Fair Work Commission will be delayed until 1 February 2021 for heavily impacted businesses, which is a small win according to the peak independent business body.
The South Australian Business Chamber CEO, Martin Haese said with the threat of a second wave of COVID-19 still possible, the delay for heavily impacted industries will provide minimal comfort for business owners.
“The 1.75 per cent increase from 1 February for heavily impacted businesses will provide some breathing space however, it won’t mean much if a second COVID-19 wave hits and businesses are once again shut down and left paying hefty wage bills,” said Mr Haese.
The 1.75 per cent increase to the minimum wage is used as a catalyst to set all Award wages, with the National Minimum Wage set to increase $13 a week to $753.80 per week.
“Add this 1.75 per cent wage increase into the mix with catastrophic declines in sales due to COVID-19 and it is not an ideal outcome for business owners,” said Mr Haese.
“The South Australian Business Chamber – William Buck March Quarter Survey of Business Expectations found a staggering 70 per cent of businesses had seen their revenue impacted by at least 30 per cent while 28 per cent of businesses said their sales had fallen by 80 per cent.
“With business confidence at an all-time low, many will find the minimum wage increase another body blow as they attempt to get up off the canvas and re-establish themselves.”
An Australian Chamber of Commerce and Industry submission, supported by the South Australian Business Chamber, recommended that due to the bushfires and COVID-19 the Fair Work Commission should not increases wages at all. However, the Australian Council of Trade Unions advocated for a 4 per cent increase. Last year, The Fair Work Commission increased the minimum wage by three per cent, well above the national inflation rate of 1.6 per cent. In fact, over the past decade, the minimum wage has increased by 30 per cent, while inflation has increased by 20 per cent.
“The 1.75 per cent wage rise will cost South Australian businesses an extra $90.7 million over the next 12 months. It is disappointing small businesses are once again left to carry the load.”
The South Australian Business Chamber will hold a free webinar next week to help businesses across South Australia understand and prepare for the Annual Wage Review Decision featuring practical advice from the South Australian Business Chamber’s expert Industrial Relations consultants.
The South Australian Business Chamber’s Are you prepared for the Annual Wage Review Webinar will be held on Wednesday 24 June from 10:30 – 12:00pm.
