Minimum Wage Increase Impacts Everyone
Raising the minimum wage at the present time from $12.00 to $15.00 as has been suggested in some quarters, would impact everyone and some businesses may struggle to stay open, says the Motor Trade Association (MTA).
“Increasing the minimum rate of inexperienced and unskilled staff has a flow on effect within the business, especially in sectors like automotive. There are many heavily differentiated workplaces with a wide range of skill and experience amongst staff that are all seemingly doing the same job and they will all want to maintain the appropriate relativity. If pay rates for new and unskilled staff increase, as has been suggested, other staff can become dissatisfied if they do not get a subsequent increase.” says MTA spokesman, Ian Stronach.
“The needs of certain sectors whose profit margins are already small should also be considered. For example, independent service stations unlike other industries, have very little opportunity to recover these increased costs.”
According to MTA, increasing the minimum wage by just 50c would result in a $7 million increase in the yearly wage bill for that sector alone.
Stronach adds that increasing the minimum wage means employers may be reluctant to take on unskilled or inexperienced staff, this contributes to a fewer new job opportunities being created.
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