The federal government wants the minimum wage to rise in line with inflation, but business groups are worried

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The federal government has backed a wage rise for the nation's lowest paid workers in line with inflation, arguing they should not see their real wages go backwards.

"It's reckless in the extreme, and it could create, unfortunately — for us at a time of a slowing economy — the potential to tip us over the edge into a recession, and nobody wants that," Mr Willox told The Business."This is about trying to find a balance and a proposal for minimum wage increase, which is above where inflation stands today, is just completely reckless.

Unions and business groups agree workers deserve a pay rise, but they don't see eye to eye on how big a rise it should be. "They're the ones who most commonly pay people on the minimum award wages. They're the ones that are under the most pressure, in terms of profitability. Many of them are going backwards in that regard.

"This is not going to break the bank for most businesses, but we are in coming into a slowdown in the economy, a sharp slowdown and, obviously, there's not a lot of dollars to go around. She said that a more reasonable wage increase would be similar to what the FWC delivered last year: a 5.2 per cent increase to the minimum wage, to match inflation, and a 4.6 per cent increase for 2.5 million workers on industry awards.

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Are worried it will eat into their profit margins

If your business model relies on paying employees the minimum wage, you need to rethink this.

Myth busted.

Yet a lot of these hard done by small business owners have no problem with taking advantage of lower income earners expecting them to work overtime for no extra pay.

let them worry, they aren't the ones struggling

More unemployment this way comes. Sorry people, i didn’t vote for them.

Just pay the rise you do know who pays its us the consumer .

If you're a multi-billion dollar company lobbying against raising the minimum wage in line with inflation on one hand, then bragging about record profits on the other, you don't get a voice in this debate. Bye.

BS, calling BS

If you can't afford to pay your staff a decent wage then you shouldn't be in business.

it's a double whammy, because as soon as you hand out money, people will simply put their prices up to get it - i.e. it won't actually help.

Remember, businesses are never in favour of a pay rise whether they make record profits or not. They just cart out the 'what about the poor small businesses' excuse to hide behind.

Why? They still raised prices during lockdown , while the libs were In , when wages growth were and still are low

Will I have her quite a few liberal national party politicians say if you can't afford to be a business don't be in business if you can't afford to employ somebody don't be in business if you can afford to be in business don't be in business

Yes yes ... the sky will fall down & ita will have to halve the abc budget

Now provide context on why they would say such a thing? They caused it in the first place, and they have enough in the kitty, don’t you think? It’s also about the minimum wage, not all wages Mind you, all other wages will rise appropriately, over time, with inflation as well

They should be worried that they can supply the stock that low wage workers will want to buy when they have a little extra cash in the pay packet.

Business must think before increasing the prices. Also companies sponsoring work&business visa must pay monthly fees to government for development of infrastructure.

How about tackling the cost of living like they promised?

Have these business groups not seen the super profits that big business are making?

A lot of folks here think when you say 'business' it means million dollar stuff, or more. Take a moment to consider the 30% of GDP from small businesses. We make enough to live, nothing more. So you want cheap service? Or you want high pay? Can't have both.

Read: capital doesn't want to share profits

Minimum wage definitely needs to raise, but people on higher wages don't necessarily need as big a wage increase because the lowest paid get as much.

Saying that our current inflation rate has not been driven by rising wages is absolutely right but adding higher wages to the mix now will add to increased prices and/or higher unemployment. Economics 101.

Business groups are always worried when talk of wage increases does the rounds. Such a tired old argument and an embarrassment for business groups to trot it out again and again. Don't do business if you have to rip off your workers. Simple.

Here we go again most businesses have put their prices up because they are greedy if they can’t pay a liveable wage to people don’t be in business

Worried about their massive profits off the backs of workers.

Shh the RBA will continue to raise raise rates.

Remove some inflation in the economy, start with ABC.

'Worried'...please use accurate terminology! 'GREEDY'

the made in OZ policy needs a rethink if the inflation determines it ...........government inputs can be controlled

Business groups need to remember who it is that spends money on their goods and services ....if an employee is happy they will refer others to the company they work...if they aren't they will tell everyone within hearing distance to go anywhere but the company they work for

hello inflation .. this is what Bob Hawke worked so hard to repair

Business groups are always worried. It never matters what the the economy is doing they never want to pay fairly, most are just greedy buggers. If they had there way they’d still be putting kids up chimneys. Thank goodness for unions.

To save time, you could cut and paste this story every time minimum wage is discussed.

Australians do not care about business groups anymore...they have had their say for too long

The government is sucking the life out of our economy with over regulation, carbon taxes, subsidies, interventions, compensations, bloated bureaucracy, ABC, SBS, NDIS, payments to anyone with their hand stretched and a Voice, and then it wants to increase minimum wages.

Noooooo!!!! Not the heckin good corporinos!! The struggling business buddies just trying to make an honest dollar in the free markerino!! How can they remain over leveraged to expand growth if they have to pay their wagies fair paysies!!

How much of a pay rise are you guys at the ABC getting?

Translation: 'Business groups want the lowest-paid workers to take a pay cut, but the federal government wants their pay to remain the same.'

What a surprise, business groups don’t want wages to rise….

Price-gouging business groups are worried that workers might earn a decent living. auspol

Who wouldn’t be worried.

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