PEAK retail industry body the Australian Retailers Association (ARA) said the Reserve Bank of Australia’s (RBA) decision to keep the cash rate oh hold at 2.5 percent for the eighth consecutive month, although expected, was disappointing for retailers.

ARA Executive Director Russell Zimmerman said  today’s decision does little to ease the concerns that were raised after the Federal Budget announcement – including the impact that increased taxes will have on consumer spending and confidence.

“What we need to see now is every effort made not to harm consumer confidence further with a clear long term plan from Government to support consumers through future tax cuts and short term support from agencies such as the RBA.

“The ARA urges the RBA to cut interest rates in July given the concerns raised following the Federal Budget. It is also obvious, after todays’ retail trade results, that retailers are suffering after experiencing unseasonabaly warm weather in April and May.

“It’s being felt across the industry, from those selling winter coats and boots, to kitchenware products, such as soup makers and crockpots, electric blankets and heaters. Even if we get a sharp cold spell, it is now getting almost too late to purchase winter products.

“Interest rates must be reduced in order to aid in the growth for retailers and especially the SME sector,” Mr Zimmerman said.

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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THE construction industry employs almost 1 million Australians, or 8.6 per cent of all workers, which is the third largest workforce behind only the retail trade and health care industries.*

The industry is continuously expanding, and with the announcement of the upcoming road and rail projects, the Napthine Government has projected that 9,900* construction jobs in and around Melbourne will be created.

The Construction and Property Services Careers Hub will assist career seekers wanting to get a start in the industry and workers keen to advance or expand their skills, with information and guidance on current job opportunities, educational options for career transition and training and up-skilling initiatives.

With the imminent closure of the major automotive manufacturing facilities and the associated automotive parts manufacturers, many Victorian workers will be displaced. This group will be seeking advice to “reinvent their career”.

These workers may also be looking to the construction and property services sectors to provide a new career pathway.

The Construction and Property Services Industry Skills Council (CPSISC), Master Builders Association Victoria, Association of Wall and Ceiling Industries Victoria, Complex Training Academy (representing the security industry), Real Estate Institute of Victoria, Trade Institute of Victoria and the National Association of Women in Construction will come together to form the hub.

“People attending the expo will be able to get first-hand information on how they can take advantage and position themselves for current and future career opportunities. The hub will become part of the largest careers and employment event in Melbourne this year, showcasing over 500 careers, ranging from plasterers to property valuers,” said Nicholas Ricciuti CEO of Reinvent Your Career. 

CPSISC CEO Alan Ross said that “attendees will get to experience the innovative Construction and Property Services Hub and meet key industry people who will assist with understanding the careers roadmap and accessing employers to help reposition their career.”

The Melbourne Reinvent Your Career Expo will be held on the 21^st and 22^nd of June 2014 at the Melbourne Convention and Exhibition Centre, from 10am to 4pm each day. Tickets are available at the door or online for $10 for a day pass or $15 for a two day pass, under 18 are free.

For more information please visit www.reinventyourcareer.com.au

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PEAK retail industry body the Australian Retailers Association (ARA) is severely disappointed with the Minimum Wage Panel’s decision today to increase the national minimum wage by 3 percent.

ARA Executive Director Russell Zimmerman said this increase, which takes effect from the first full pay period after 1 July 2014, will increase the full time Retail Employee Level 1 rate to $703.90 per week (or $18.52 per hour), thereby adding to the stress retailers are already facing in the current economic climate.

“This minimum wage increase, together with sluggish retail trade figures and penalty rate rises under Fair Work Commission awards, will only cause further damage to retailers who are struggling to keep their heads above water as it is. Tuesday 1 July 2014 will see the last transition of penalty rates – meaning Sunday rates will increase to double time and Saturday rates will increase to time and a half.

“With most small to medium retailers being reliant on a minimum wage workforce under the General Retail Award, any move to increase wages within the sector during this time of low consumer confidence and low growth will only further job losses currently underway within the sector – a very distressing truth for retailers.

“The ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $8.50 or 1.3 percent in the 2014 Minimum Wage Review.

“The retail industry makes a significant contribution to the overall state of the national economy and employs more people (including more juniors) in Australia than any other private sector industry. The retail industry is more reliant on pay scales than any other industry, and also suffers a higher disproportionate effect in minimum wage increases than other industries due to deregulated trading hours and penalties across all retail awards.

“In response to ACTU Secretary Dave Oliver’s comments earlier regarding ‘productivity has been growing at its fastest pace in over the decade’ – this is simply incorrect.  Productivity growth over the year to the March quarter was 2.7 percent, and there have been many periods in recent years when it has been higher and sometimes lower. Productivity growth of 2.7 percent is simply in line with the average pace of expansion seen over the last five years.

“Earlier this year the ARA also condemned the FWC’s inexplicable decision to abolish junior wage rates for 20 year old employees. Retailers are still fuming over this decision which has certainly changed the face of employment for junior employees at a time when youth unemployment has never been higher. 

“For retailers to now be slammed with further costs through an increase to the minimum wage is simply unwarranted, and sadly, we expect to see many retail businesses reduce their staff further this year as a result.

"Today’s decision is not sympathetic to the small business economy which it bluntly attacks,” Mr Zimmerman said.

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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CHIEF Executive Mark Stone says VECCI does not dispute that those on the minimum wage deserve a pay increase but the $18.70 per week increase is significantly in excess of VECCI’s recommendation of an $8.50 per week maximum. 

"Despite acknowledging the weak growth in hours worked, continuing high youth unemployment and a falling full-time employment to population ratio, the Fair Work Commission has again ordered a minimum wage increase in excess of the rate of inflation," Mr Stone said.

"At the end of the day, business foots the bill and this 3% increase must be paid in addition to the further 0.25% increase in the Superannuation Guarantee Levy from 1 July 2014, putting further pressure on those Victorian businesses already facing increased costs of doing business and challenging economic conditions.

"VECCI is disappointed that there was no deferral of the increase in whole or in part for some struggling sectors of the economy such as retail, tourism, restaurants and catering, hospitality and manufacturing.

"Setting the minimum wage is a balancing act but the result must not end up being a barrier for entry into the employment market that discourages employers from taking on people or places existing jobs at risk," he said.

"Higher rates of pay do no good if the jobs that pay them disappear and recruitment opportunities, particularly for young people, dry up."

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The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

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