Jos de Bruin, CEO of Master Grocers Australia (MGA), is concerned that the increase to award wage rates by 3.3% will be a direct hit to small retailers.
Mr de Bruin said the high cost of running a business alongside the increase in competition in the Australian retail industry is already tough on smaller, independent enterprises.
MGA believes that a more moderate increase to wages by the Fair Work Commission would have been easier for such businesses to absorb and the higher rates may mean the closure of more retail outlets and a lack of job opportunities.
Mr de Bruin said, “The cost of doing business is higher than ever before and if it’s going to cost more to employ staff, then where is the incentive to provide more jobs? The simple fact is that retailers will not be able to pay these higher rates and remain in business.”
