Accommodation industry to shed more jobs
Australia's accommodation industry is disappointed with the outcome of the minimum wage decision, which saw the Fair Work Commission ("FWC") award a 2.6% increase to the minimum wage to $622.20 per week or $16.37 per hour.
The Chief Executive Officer of the Accommodation Association of Australia, Richard Munro, said the ruling will have negative consequences for the industry.
"The Accommodation Association argued for any increase in the minimum wage to be capped at 1.5 per cent, so to be hit with a 2.6 per cent increase, is a poor outcome for a labour-intensive industry, such as ours, and smacks of union appeasement," Mr Munro said.
"The decision does not seem to take into account the circumstances of small businesses, particularly regional business, despite the Panel's recognition that the needs of these employers had to be considered as they were a significant part of the economy and within which there was higher than average award reliance.
"Expenses for accommodation businesses are out-stripping revenue which makes for lower return on investment.
"It comes at a time when new costs to businesses have been introduced in the past 12 months, such as the carbon tax and the upcoming increase in the level of compulsory superannuation.
"Inevitably, the decision will result in further job losses in the accommodation industry."
Given this decision and the previous two increases – which were 2.9 per cent (2012) and 3.4 per cent (2011) – it's important that the pressures that businesses in our industry are under are given greater consideration.
"There has been a recent trend of larger-than-expected increases in the minimum wage and this is unsustainable in the long-term for our industry, as well as tourism more broadly," Mr Munro said.
The decision has been a further hit to members consistent with the approach of the ongoing modern award review, having a less than favourable impact, in particular a refusal by the FWC to make changes to the penalty rates regime.'
Source: Accommodation Association of Australia, 3 June 2013
