Hospitality king pin: Freeze minimum wage or pay $7 for coffees

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Wes Lambert, chief executive of Restaurant and Catering, has called for pay rises for low-paid workers to be delayed by up to seven months, warning the price of a coffee will soar to $7 if the minimum wage is increased in line with inflation:

Restaurant and Catering ­Australia chief executive Wes Lambert argued that minimum wage ­increases, due in July, should be pushed back to November and February in industries, such as hospitality…

“Any minimum wage increase that is close to CPI runs the risk of severely hampering the recovery of the hospitality industry after Covid, as consumers are not going to be prepared for major price ­increases,” Mr Lambert told The Weekend Australian.

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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.