The state's peak business lobby group supports a moderate increase in the minimum wage this year and warns that many employers will not be able to afford paying substantially higher wages.
The Chamber of Commerce and Industry WA said it supports a $12 a week increase to the minimum and award wages, much less than the $27 a week rise the ACTU is calling for.
"Anything more [than $12] is unsustainable and unjustified," CCIWA chief economist John Nicolau said.
"Business should be supported to create jobs, and continue to play a lead role in the country's economic comeback.
"An excessive increase in the minimum wage, as proposed by the ACTU, will place additional pressure on many already struggling smaller businesses.
"It is proven that excessive and unjustified wage increases have a negative impact on job creation. At this stage in our economic recovery, we can not run that risk."
CCI today lodged its submission with regards to the minimum wage, and outlined 10 reasons that supported a modest increase in wages over a substantial rise.
These include recent changes to the federal industrial relations system which is set to deliver higher wages for many workers, the cost of living has been rising at a slower rate and businesses were yet to recover from the global economic slowdown.
The Australian Industry Group, which represents 60,000 businesses in sectors ranging from manufacturing to call centres, also supported a $12 weekly increase in the minimum wage.
