Don't jump at minimum wage cuts: business

Business Council of Australia boss Jennifer Westacott says recommendations to cut the minimum wage are too severe.

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The head of a major business lobby group says suggestions to cut the minimum wage are too severe. (AAP)

The head of a major business lobby group has spoken out against "really harsh" recommendations to slash the minimum wage.

Business Council of Australia chief Jennifer Westacott says she has a "real problem" with the national commission of audit's position on the minimum wage.

The commission, in a report to the Abbott government, recommended it be cut to 44 per cent of average weekly earnings.

"I think they're too severe and they're too harsh," Ms Westacott told ABC radio on Wednesday, adding the minimum wage was a very important social safety net.

The commission, headed by former BCA president Tony Shepherd, said the minimum wage was too high by international standards and was a barrier to young job seekers.

But Ms Westacott said the issue should be left to a Productivity Commission review of the workplace system.

"Let's not jump at a really harsh cut there," she said.

Unions have attacked the audit's recommendations, which they say would see the minimum wage fall to 1998 levels.


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Source: AAP


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