Business groups can minimum wage rise

MINIMUM wages are set to rise by $22.20 a week starting next month in a move Tasmania’s peak business body says is out of step with regional economic realities.

The Fair Work Commission ruled yesterday the country’s lowest paid workers should have their wages increased 3.3 per cent to $18.29 an hour.

That’s compared to price rises of 2.1 per cent for everyday goods and services for the year ending March, according to Australian Bureau of Statistics figures.

The new minimum weekly wage is $694.90, the Fair Work Commission said.

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the decision would be met with concern from regions still lagging the booming capital cities.

“One of the issues of the national wage case is that it as- sumes that all parts of the nation are economically equal,” Mr Bailey said.

“Although many businesses will find this frustrating, they will accept the decision of the independent umpire, which is the Fair Work Commission.

“As we would expect unions to do the same regarding of the recent Fair Work decisions on penalty rates.”

In its ruling, the commission said “modest and regular wage increases” did not have a significant impact in slowing growth in jobs.

The minimum wage increased by $15 a week last year, while the Australian Council of Trade Unions had been pushing for a $45 rise this year.

It came a day after the commission ruled cuts to Sunday penalty rates should be phased in over three to four years.

Sunday pay for retail workers will be lowered from 200 per cent to 195 per cent of regular pay starting next month, falling to 150 per cent by July 2020.

Shop, Distributive and Allied Employees Association national secretary Gerard Dwyer said the wage increase fell well short of what was needed to lift the take home pay of retail and fast food workers who were about to see their penalty rates cut as they face massive cost of living pressures.

Retailers have expressed unhappiness at what they say is an “excessive” phase-in time, while unions have vowed a campaign against the Turnbull Government.

“Penalty rates will allow retailers to extend staff working hours and increase employment across the board, therefore these sluggish arrangements will unnecessarily delay the creation of new retail jobs,” Australian Retailers Association boss Russell Zimmerman said.

Hospitality workers will have their Sunday penalties cut from 175 per cent cent to 170 per cent next month, falling to 150 per cent by July 2019.