Industry pain at wage pitch
Capes accommodation providers will be hit hard by a proposed minimum wage increase this year, according to industry leaders.
A fourth consecutive minimum wage rise could be on the cards for Australia as the Fair Work Commission conducts its annual wage review. The Australian Council of Trade Unions has proposed employees get between $8 and $27 extra a week.
The Accommodation Association of Australia has opposed the rise due to superannuation increases and increases in weekend and public holiday rates.
Association chief executive Richard Munro said an additional increase would affect the industry’s ability to retain staff.
Margaret River Restaurant owner Anthony Janssen said payroll costs were getting harder and harder to manage.
“We deal with it, but it’s quite a challenge, ” he said.
“We can’t put the price of products up at the same rate.
“Anyone is hospitality would say the same thing.”
Smith Beach Resort and Indjidup Spa Retreat operator Lisa Maclaren said it was already difficult enough to get occupancy in the area.
“There’s a small window throughout the year where we run at full capacity, ” she said.
Ms Maclaren said while Perth occupancies were “outrageously high”, the regions had not been seeing the spin off from that.
The Australian Hotels Association of WA has recommended a minimum wage increase of $8.50 per week, in line with the cost of living.
Chief executive Bradley Woods said occupancy levels in the regions were falling behind Perth.
“Regional WA and the South West is experiencing challenging market conditions and could do a lot better, ” he said.
“Until we see a substantial increase in regional tourism and occupancy improvements, times will be tough.”
Mr Munro said an increase would have wide ranging effects on all industries. “Largest operators to very small ones, it will be widespread, ” he said.
Mr Munro said WA accommodation occupancy had “essentially” gone backwards in the past 12 to 18 months and believed if wages go up along with penalty rates there would be less employment.
“We need to contain wages, ” he said.
“Effectively we’re saying there has been increases the last three or four years, now it’s time to take a rest and consolidate.”
Mr Janssen said consumers needed to understand that with a wage increase, will come a price increase.
