Latest Wage Hike Destroying Businesses

#wages #economy #heisesays
Just what struggling businesses need.


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  1. Small businesses that are not making big money will either close or reduce staff. Like the family business I am in, we prefer to take less work rather than work more but most profit goes to paying employee.

  2. One numb-nut Prime Minister has been replaced by another numb-nut Prime Minister.
    Wage increase? I'm a self employed service provider and my clients are also suffering from increased costs – do I maintain my usual fees so as to reduce my effective income or do I continue a charge a rate that is more financially convenient to my clients. Who wins?

  3. Remember Florian that the average worker who CARES about their job and their progression will certainly receive a higher return in role-specific expertise as compared to wage growth of the same period. I 100% agree with your pragmatic approach to justification of a minimum wage, and perhaps my view isn't compatible with your doctrine which applies more broadly to the working class, however I feel since you have mentioned this idea multiple times that it's appropriate to add this disclaimer.

    At a federal level we should be vouching for the LCD, so I suppose the onus is on a forward-looking private enterprise to remunerate appropriately, not the public system, and not enforced via legislation. I can see the need for this particular increase though given current economic conditions.

  4. I think there are a few problems here:

    We live in a world where increasing productivity means reducing human labor. If you have 1 person stacking shelves in Woolworth and after and they got better by 4% every year for 20 years that's 219% better would Woolworth pay them $72/hr $140k/yr base wage to stack shelves?

    2.7mill people were affected by the increases in a market of 12.7mill does 20% of the workforce affect inflation. Consumption would remain similar as their money will be eaten away by already existing inflation. The cafes I go to have 3-4 full-time staff, which seems like a small amount of $180 with super a week extra, I would imagine they are suffering from more than wage inflation by this point. If you are paid the same amount as last year and inflation increases your money is worth less than last year which is an effective pay cut.

    Big business: Traditionally having employees was a sign of success the more a company made the larger the number of people could be hired and the more they could be paid.
    The idea is that your productivity contributes to the success of the business, since human productivity is capped we have relied on new machines and new methodology to get that boost in productivity. If these processes add new complexity you can specialise and get a pay rise, If you work in a job that requires manual labor the amount of skill generally decreases over time, soo should you be stuck on the same wages for decades? that where the free market comes in but there is always a downwards pressure on these lower-skilled jobs because of unemployment.

  5. You are not wrong …. Answers for the future .. are in the past .. Tinker .. tailor .. soldier .. sailor .. rich-man .. poor-man .. beggar-man .. thief .. a lesson is in S.E Asia .. street-food / food-truck .. become a gypsy .. develop a great menu .. pay no tax .. just like the taxi-industry does

  6. The market is supposed to decide which jobs are most important by paying wages appropriately to attract employees. And yes the minimum is always zero.
    Thế government also interferes with wages by flooding the job market with international students and migrants on purpose to drive down wage competition for business.
    Ideally the businesses which provide the most value to their customers will survive.
    Though the high number of public servants is going to be a tax drag as that gets increased unnecessarily and often regardless of the value.

  7. I didn't vote Labor, but well done for the minimum wage increase. It didn't go far enough, but its a start.
    The thing is, frankly, if businesses cant afford the increase, then they don't deserve to be in business. Australia is not a third world country we deserve much better.

  8. You struggle to bring yourself to pay cafe prices? well if you care so much about the cafe itself being able to afford this why don`t you go to your local small cafe and buy yourself a nice breakfast and coffee, because that would actually help these guys out. and if you already do then credit to you. And now workers have an extra $40 per week will they be more incentivized to go out and spend more thus helping out these businesses and there workers?

    This article is also not really addressing the minimum wage as the business owner is already offering $42 and upwards to get staff, but this is well above the national minimum wage. is this all sky news could come up with? did they forget to mention the apprentices who start working on $11-12ph?

  9. We have a Socialist government now and the people want their Freebies (Welfare) for the people who don't understand , it's just getting very interesting and very scary !!.

  10. The Labor party don't care it's tax by stealth as they get a large portion in tax and causes inflation to rise which more taxes as 10% on today's rate compare to 10% on higher prices government win again and then when you loose your job and cant pay your mortgage repayments they get cheaper houses them and their rich mates can buy then rent back to you from the wealth fare payment guaranteed income
    They been trying to kill small businesses for 50 yrs we'll looks like they succeed this time and have control of everything thing you buy and do through corporate business and we know where they'll be out sourcing from they just started talking to that particular country who they give their speeches before hand I'd say the name but probably get locked up as that country doesn't abide by human rights in their country

  11. I’m looking for full time permanent warehouse / store persons in Sth west Sydney @ $29.50 per hr. Can’t get applicants.
    Hit me up if you’re not liking minimum wage.

  12. I'm confused, if wage rises cause inflation , what caused the inflation in the last 12 months before the wage rise that has been announced ? The wage rise is in response to higher inflation, it's not the cause.

  13. 30,00 an hour, in the philippines its 30.00 a day no penalty rates , i met many who work out of manila when i traveled to the philippines with my wife , we are pricing ourselves out of the market, if i had a drafting business accounting business call centre accounting direct importing, software design ,i would be working out of manila if i had to employ people that's why a lot of call centres have branches in manila .your spot on heise .A coffee shop will need 15 dollars for a cappuccino just to stay afloat.Governments always say small business is the lifeblood of the nation ,well they have a funny way of showing it,increasing the tax free threshold to 25000 would of been a better investment.

  14. $40 a week …. Come on – even if you have 10 employees and it’s $400 a week. Not a major rise in workers comp and super etc …
    If that hurts you then your business is going no where. Maybe time to give up!

  15. The reserve bank is putting up interest rates to try and suck money out of economy because there is to much cash in society.

    Middle to high income earners will get 2000 to 12000 less tax to pay then they did last finnacial year. Low middle high income earners will get an extra 2000 a year wage rise. This will put tremendous pressure on inflafion, so food, petrol, electrisity, gas, goods and services must rise as the demmand will be way way greater then the goods and services we produce.

    So goods and services goes up and interest rates go up, rates go up and rents go up. Then pop, the property bubble hits and property dropes, then mass unemployment or underemployment, then deflation and because of the huge debt and debts become greater because of deflation caused by less productivity the govenments and businesses take Austerity and mass unemployment, no money, hardly any goods and service.. this is called a econmic crash.

    The markets correct and after about 2 years we recover back to more realistic responsable economic growth. Gravy train over.

    If you have savings, gold and or own your home outright and have the deeds, you will be fine.

    If you have debt, home loans, shares, superanuation, investments, a business with loans, live week to week..

    Ouch.. hard times ahead.

    But who knows, anything is possible.

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