Removal of junior rates adds to the mounting pressures on businesses
Employers across Australia are warning that abolishing junior pay rates will reduce the employment opportunities for young people amid higher labour costs.
The Australian Industry Group (Ai Group), the national employer association, said businesses don't have the endless capacity to absorb the "dramatic cost increases" without consequences.
"The decision will undoubtedly cause many businesses to reconsider the viability of maintaining current trading hours and staffing arrangements," said Ai Group chief executive Innes Willox in a statement.
"Ultimately, the entirely foreseeable likelihood is that there will be fewer employment opportunities for younger workers, or even employment opportunities as a whole, in these sectors."
The Australian Chamber of Commerce and Industry (ACCI) aired a similar warning regarding the Fair Work Commission's decision.
"This is a disappointing decision that will make it even harder for young adults trying to forge a career," said Andrew McKellar, chief executive of the ACCI, in a statement.
McKellar further warned that the changes will make the situation more difficult for small businesses to offer jobs.
"This only makes young people who are wanting to go off, go and get their first job, it makes it less easy for them to compete in the marketplace," he said in an interview on 2GB Afternoons.
"It makes it less easy for the small business that wants to create that job, wants to...
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