Minimum Wage Adjustment

Minimum Wage Adjustment

“We would ask the Government to show restraint in looking at any movement in the Minimum Wage” said Michael Baines Chief Executive of the Motel Association today.

“This is a far more complex issue than is being portrayed. Small businesses have only two choices they either cut workers hours to suit their wage budget and pick up the work gap personally or they take less return themselves” said Mr Baines.

“The idea of moving the base rate is seductive and populist but it actually moves all the relativities as well; it means that to a lesser or greater level all other wages move accordingly. If you are on $15 per hour and the Minimum wage moves to $15 per hour then you will be looking to go to $17.50 per hour to maintain the relativity and so on it goes up the scale”.

“In a finite economy those who cannot pass on increases in costs must bear them. Those who operate in the world of the final consumer are constrained by the ability or desire of the consumer to spend!” said Mr Baines.

“The costs for small businesses are increasing all the time with ACC levies, local body rates and other operating and compliance costs being imposed with little or no understanding of the outcomes. This is a cost that the Government can control and choose whether to impose on business operators or not. We urge the Government to exercise common sense and keep the Minimum Wage at its current level” said Mr Baines.

ENDS

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