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Wage increases likely to cost jobs

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A U S T R A L I A N HOTELS A S S OC I A T I ON 24 Brisbane Avenue Barton ACT 2600 · PO Box 4286 Manuka ACT 2603 · Australia email: theaha@ · Facsimile: (02) 6273 4011 · Telephone (02) 6273 4007

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Richard J Mulcahy National Executive Director


29 April 1998

Wage Increases Likely To Cost Jobs

The Australian Hotels Association has expressed disappointment with the decision of the Australian Industrial Relations Commission to increase award payments by $14 a week for the majority of the hospitality work force and has forecast job losses as a result.

The AIRC today ruled a pay increase of $14 per week for workers earning up to $550 per week, a $12 a week increase in award rates to those earning above $550 and below $700 per week and a $10 per week increase in award rates above $700 per week.

“The hotel industry has the greatest potential to assist in employment growth, however, this wage increase will only hamper development,” Mr Jim Stewart, spokesman for the AHA said today.

“The increases awarded by the AIRC are based upon base award rates and a significant multiplying effect will be encountered due to the penalty rates paid to employees on weekends and public holidays.

“The AIRC on the face of the decision, doesn’t seem to have understood the significant consequences of their decision which were outlined by employers during the case.

“Bodies such as the AIRC should be fostering an environment to improve economic growth leading to further employment particularly in light of the current downturn in tourism growth,” Mr Stewart said.

The Hospitality Industry - Accommodation, Hotels, Resorts and Gaming Award 1998, was one of the awards under consideration in the AIRC Living Wage Case.

States effected by the increase are Southern Queensland, NSW, Victoria and Tasmania which represents approximately 200,000 hotel employees.

Media Inquiries: Mr Daniel Leesong, Assistant to the National Executive Director, ph - (02) 6273 4007, 0417 253 753.