A tearful cafe owner has stated that the shocking hike in the minimum wage could perhaps cause his establishment to close its doors.
Wednesday’s announcement of the rise in the national minimum wage was made by the Fair Work revealed that the new minimum pay will be $21.38 per hour or $812.60 per week, which is a weekly increase of $40.
The minimum rates for the modern award will also increase by 4.6%, with a minimum increase of $40 per week. This will become effective for most workers on July 1st.
Many people were taken aback by the verdict because it was even more generous than the 5.1% increase that had been supported by the Albanese government, and it was significantly more than the 2.5% to 3.2% increase that employer organisations had lobbied for.
Nevertheless, it was a decrease when compared to the increase of 5.5% that the Australian Council of Trade Unions (ACTU) had been advocating for.
However, those in the know, as well as business owners, have spoken out against the decision, which will have a knock-on effect for the 2.7 million Australians who rely on the national minimum or award wage. They have said that businesses cannot afford to absorb the increase and that as a result, prices could go up.
Phillip Salhab, owner of the Appetite Cafe in Five Dock, is one of the innumerable individuals who own small businesses that will be negatively impacted as a result of the ruling.
He told Sky News that, on top of the never-ending rise in electricity cost and supply expenses, the increase in the minimum wage could now force him to shut the doors of his cafe.
He said this was on top of other cost pressures such as the increase in the minimum wage.
Mr. Salhab was overcome with emotion, and he began to cry as he explained that it would be “easier” to just shut down.
“When everything is said and done, it’s a company.
We are in this business to make a profit.
I’m genuinely curious as to why our profit margin is getting lower and smaller with each passing day.
He questioned the point of continuing the event if there was nothing for the attendees to take away with them at the end of the day.
In the meantime, a number of businesses and industry associations have signaled their intention to hike prices in retaliation for the increase in wages.