Retailers Want to Raise the Minimum Wage, But Only By $8 a Week

The Australian Retailers Association (ARA) has recommended an increase of 1.2 per cent to the minimum wage for retail workers.

This increase would lead to an estimated additional $8.10 per week for the average worker. However, this falls under the rate of inflation, and essentially equals a pay cut.

The recommendation was made in conjunction with the Australian Chamber of Commerce, who explained that the low increase is due to economic uncertainties.

Sydney Morning Herald spoke to ARA Executive Director Russell Zimmerman, who explained that retailers were facing rising costs coupled with historically low inflation.

"With low to flat price growth we believe this is the best way to preserve employment within the retail sector," Zimmerman said.

The Australian Council of Trade Unions (ACTU) will look out for retail workers, with the secretary, Sally McManus, asking the Fair Work Commission to increase the minimum wage by $45 per week.

Just last month, retail workers saw a cut to penalty rates made after the Fair Work Commission’s review suggested the historical and cultural reasons for increased pay on weekends were no longer warranted in modern day Australia.

The changes, which are likely to take effect as early as July, have been seen as an attack on some of the lowest paid workers in the country.

Photo: ABC