The Morrison government has cautioned that increasing Australia’s minimum wage this year could constrain small business recovery and employment. “Higher labor costs during this challenging period could present a major constraint to small business recovery and may dampen employment in the sector,” the government noted in a submission (pdf) to the Fair Work Commission’s annual review, urging the Commission to consider the job creation and business viability during the post-pandemic economic recovery. “The risk of domestic outbreaks and ongoing disruptions to other major economies mean the economic environment remains uncertain,” the government stated. “Although the vaccine rollout is underway, COVID-19 outbreaks that would necessitate further containment measures remain a significant risk.” In response to the call, the Australian Council of Trade Unions (ACTU) is arguing for an increase of 3.5 percent, or $26.38 per week, for a full-time minimum wage worker. The ACTU argued that one-fifth of Australian workers receive …
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