Many small firms unhappy with minimum wage

Many small business in retail and hospitality are unhappy with the latest minimum wage increase, saying it will have a negative impact.

Only about one in three small businesses have taken the latest 2.5 per cent increase in the minimum wage in their stride.

A survey by business software provider MYOB has found businesses in the hospitality and retail sectors are particularly hostile to the July 1 wage hike, with over half saying it will have a negative impact.

MYOB boss Tim Reed said these sectors are struggling with the change and, because of the nature of their businesses, they are hit by the multiplier effect on penalty rates.

"(It) makes the increase something of a double whammy for them," Mr Reed said on Wednesday, releasing MYOB's inaugural monthly SME Snapshot survey.

However, for the third or so of the 500 respondents who support the rise in the minimum wage, it shows an element of confidence among some smaller businesses, he said.

The monthly survey will aim to capture sentiment among small and medium-sized businesses to topical issues.

The feedback on the minimum wage coincides with the Productivity Commission's release last week of its interim report into the workplace relations framework.

The report offers a wide range of recommendations, including more flexible arrangements for hospitality and retail over penalty rates.

Mr Reed agreed with the commission that this timely report is about repairing weaknesses in the system rather than replacing long-standing protections for employees.

"We'd like to see all participants enter into a mature discussion around this idea," he said.


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Source: AAP


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