The SDA commissioned the South Australian Centre for Economic Studies to assess the economic impact on the South Australian economy of the retail and fast-food pay rises that come into effect in July 2016.
The research found that: –
- Over 50,000 retail and fast-food workers, covered by SDA-negotiated Agreements and the Retail Award, will receive a pay rise from 1 July.
- The estimated wage increase in the retail and fast-food sector will lead to a net increase in wages income of $26.4 million.
- Taking into account the additional incomes generated by household spending, the total impact to the South Australian economy of these wage rises are estimated to be $41.2 million.
- $550,000 will go to hard-working South Australians this week alone
SDA Secretary Sonia Romeo says the SDA-negotiated pay rises come at a crucial time for workers and the economy.
“Retail and fast-food workers need fair and decent wage increases as the cost of living continues to rise.
“When retail workers receive a pay rise it’s good for the economy as a whole because they spend that money locally, in shops, restaurants and cafes.
“Time and time again employer lobby groups call to slash the wages of workers without considering the consequences to local businesses and the economy.
“If you cut the wages of workers, then they’ll have to cut spending – this will hurt local businesses and the economy,” said Sonia.
The Economic Impact of Retail and Fast-Food Wages Report provides an important analysis of how pay rises affect workers, spending and the economy.
SDA Assistant Secretary Josh Peak says a strong economy is underpinned by a growing middle class, not a shrinking one.
“Rising income inequality is a growing problem in Australia; sensible wage growth goes a long way to stop it from worsening so we don’t end up like the U.S.
“Wages growth in Australia is continuing to sit at record lows but unions, like the SDA, continue to fight for wages to go up, not just for workers but for the economy and local community,” said Josh.
If you would like a copy of the research – Economic Impact of Retail and Fast-Food Sector Wage Rises – conducted by the South Australian Centre for Economic Studies, please contact the SDA on 8139 1000.