CCI calls for small pay rise

The Chamber of Commerce & Industry has called for a pay rise for low paid workers of $10 to $12 per week, about one-third the claim lodged by the union movement.

The business lobby urged the Fair Work Australia tribunal to exercise caution when determining the Federal minimum wage because the country's economic recovery is still patchy.

"This moderate wage rise takes into account the two-speed economy, and the impact that natural disasters, including droughts, floods, bushfires and cyclones that have affected several states and territories in Australia, will have on the Nation's economic recovery," CCI manager industrial relations policy Marcia Kuhne said.

"Many of the businesses which are still finding conditions tough, including community services, retail and hospitality, are those who can least afford a substantial hike to the minimum wage.

"The imminent return of severe labour shortages is already seeing their wages bill rise, eroding their ability to afford any other wage increases.

"A union bid to increase the Federal minimum wage by between $28 and almost $38 a week is an unjustified and irresponsible claim that could harm businesses still finding the economic conditions challenging."

Ms Kuhne said CCI is concerned that this bid is excessive and unsustainable for many, especially small businesses, already struggling under the financial strain of implementing the modern awards.