Australian industry groups have warned that the new wave of minimum wage increases could push businesses across the country to the verge of collapse.
Under the Fair Work Commission’s latest ruling on June 15, over 2.6 million Australians will be eligible for a pay rise of $40 (US$27) per week from July 1, an increase of 5.2 percent.
The highest wage growth in 16 years brings the hourly rate to $21.38, resulting in a minimum wage of $812.60 per week.
Nevertheless, employees in the aviation, tourism and hospitality sectors will have to wait until October to receive their pay rise.
While the Fair Work Commission’s decision was well received by unions and the Labor government, hospitality and retail peak bodies were worried that the high level of wage rise would lead to business closures….