Business urges caution on wage claim

Business has warned against adding further imposts to small business in Western Australia, urging the Western Australian Industrial Relations Commission to tread lightly over a proposal to increase minimum wages.

Western Australia’s Chamber of Commerce and Industry has proposed an $11 per week wage increase, arguing it was the best way to support and protect the jobs of low paid workers.

UnionsWA have lobbied for a $42.50 per week increase in minimum wages, a spike that would add significant costs to small and micro-businesses, and could force employers to reduce workers’ hours, CCI manager of industrial relations policy Marcia Khune said.

“UnionsWA’s claim bears little or no relationship to what small and micro business employers and employees face day to day to ensure they remain financially viable or employed,” Ms Kuhne said. 

“Such a claim may be the last straw for struggling business owners facing higher business costs across the board, shrinking margins and all in an environment of weaker consumer spending.”

Ms Kuhne said the Chamber urged “caution and prudence” regarding the wage claim, to ensure it is consistent with balancing the needs of business and employees.

Commerce Minister Simon O’Brien yesterday recommended WA’s minium wage be increased in line with the Consumer Price Index.

“It’s also important in the current economic conditions that we support the viability and competitiveness of our small businesses,” Mr O’Brien said.

“An inflation-based adjustment represents a balanced and sustainable outcome for employers and maintains the standard of living of workers in this state.”

The commission’s hearing is scheduled for May 29 and 30.