Pubs hit with minimum wage hike

Hotel industry representatives have criticised Fair Work Australia's decision announced on Friday to increase the national minimum wage by $17.10, warning that it will have a disproportionate effect on the hospitality sector.
 
The majority of hotels are faced with flat or even declining trade, and the wage rise of almost double the rate of CPI stipulated by Fair Work Australia will undoubtedly reduce employment hours available and may force job cuts.

The increase of 2.9 per cent will come into effect from the first pay period on or after July 1 and will coincide with the introduction of the carbon tax.

AHA National CEO, Des Crowe, says that most hotels are facing tough trading conditions for the year ahead.

"Last year's significant increase resulted in a 7.8 per cent reduction in working hours available in our industry and hoteliers will again be forced to assess their rostering to minimise the additional costs on their businesses.

"For businesses in the fast lane of the two-speed economy this increase is manageable, but for most hotels it will be a cause for serious concern," said Crowe.

Source: The Shout, 4 June 2012