More than three-quarters of retailers would stop hiring young people if junior wage rates were abolished.
New research, commissioned by the Australian Retailers Association (ARA) and National Retail Association (NRA) in response to a Fair Work Commission (FWC) application to equalise junior wages, found 77 percent of retailers would cut junior hiring if junior and senior rates were equalised.
ARA CEO Chris Rodwell said abolishing junior wage rates would significantly reduce retail employment opportunities for young Australians as many small businesses would select more experienced workers.
“Current junior rates reflect lower levels of experience and are an incentive for employers to take a chance on younger, less experienced workers and provide them with the supervision and support to develop important workplace skills,” Mr Rodwell said.
He said the survey results came at a time when youth unemployment was rising and sat at more than double the national average at 10.2 percent.
“Retail is the single largest employer of young Australians, employing more than 500,000 workers under the age of 24 years.
“If junior rates are tampered with, the impact on already high youth employment could be dire – particularly in regional areas.”
Mr Rodwell said in addition to higher youth unemployment, equalising junior and senior rates would narrow critical pathways into work for young Australians, especially in small and family-run businesses that operated on tight margins and couldn’t absorb additional costs.
He said more than half (56 percent) of retailers surveyed said such a move would increase costs for their businesses, raising concerns these costs would ultimately be passed on to customers.
“A significant proportion of retailers also cited the shift would force them to reduce store opening hours.”
