Bosses call for wages freeze, or jobs will go

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Master Grocers Australia has urged the Fair Work Commission to freeze award pay rates in the retail sector for 12 months in response to the coronavirus pandemic. The MGA warns in its submission to the FWC’s annual review of the minimum wage that the impact of the coronavirus is likely to be felt for at least a year, so it is not an appropriate time to be increasing award wages. Most workers employed by MGA members are paid minimum award rates:

Employers including IGA, FoodWorks and Mitre 10 have called for a one-year wage freeze to be imposed on retail workers, warning the coronavirus crisis could persist for at least 12 months.

Master Grocers Australia, which represents 4000 independent supermarkets, liquor, timber and hardware stores employing a total of 120,000 workers, said the “destructive effects” of the coronavirus, the impact of the bushfires and past annual minimum wage rises justified the pay freeze.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.