By Clyde Mooney
Hotel industry representatives have criticised Fair Work Australia's decision announced on Friday to increase the national minimum wage by $17.10, warning that it will have a disproportionate effect on the hospitality sector.
The majority of hotels are faced with flat or even declining trade, and the wage rise of almost double the rate of CPI stipulated by Fair Work Australia will undoubtedly reduce employment hours available and may force job cuts.
The increase of 2.9 per cent will come into effect from the first pay period on or after July 1 and will coincide with the introduction of the carbon tax.
AHA National CEO, Des Crowe, says that most hotels are facing tough trading conditions for the year ahead.
"Last year's significant increase resulted in a 7.8 per cent reduction in working hours available in our industry and hoteliers will again be forced to assess their rostering to minimise the additional costs on their businesses.
"For businesses in the fast lane of the two-speed economy this increase is manageable, but for most hotels it will be a cause for serious concern," said Crowe.
rec: wouldn’t hurt to clarify that $17.10 increase is a weekly number and ‘only’ 45 cents/hr, or, at least providing links to Fair Wage Australia
http://www.fwa.gov.au/index.cfm?pagename=wagereview2012&page=decisions
just sayin’…
This will also effect restaurants and cafes. Employees can hardly make a career in hospitality as they can no longer secure enough hours to maintain any sort of life style. The industry is prodominantly full of casuals barely achieving 20hours per week, And customers wonder why service is lacking in Australia, Great service is unafordable. Customers wont pay $30 for a chicken parmi. The closure rate for businesses in Hospitality around the country is very sad.