An analysis produced by the minimum wage panel shows that most of the economy has recovered from the pandemic and even the hospitality sector is close to regaining its pre-pandemic strength, placing doubts on employers’ calls to delay this year’s pay rise.
The analysis comes as major employer groups, including Australian Industry Group and the Australian Chamber of Commerce and Industry, have argued that there are exceptional circumstances justifying delaying the wage rise for aviation and tourism, hospitality, arts and recreation and some retail sectors until as late as November.
As a result, the sector was classified as almost recovered or just “marginally below the level prior to the onset of COVID-19”. “Accommodation and food services has consistently been recognised as one of the worst-affected sectors,” AiGroup said in its submission to the panel.“The economic conditions for accommodation and food services remain very difficult.”The minimum wage decision affects about 2.6 million workers, or 23 per cent of the economy, due to its flow-on effect to award rates.ANZ senior economist Catherine Birch said she expected the wage increase to be between 4 per cent and 4.
The question is “Do they deserve a “living” wage for their labour?”. Yes they do. If business can’t afford to pay appropriate prices (costs) for their inputs; and market and sell at competitive prices (income); they should shut their doors; not rape their work-force.