Alan McDonald: Employers and Manufacturers Association Head of Advocacy on minimum wage going up by 35 cents from April

Business advocates believe the latest minimum wage increase strikes the right balance during an economic downturn.

The minimum wage will rise 1.5 percent - or 35 cents an hour - to $23.50.

The Government says the moderate increase reflects the current economic climate and labour market. 

Employers and Manufacturers Association Advocacy Head Alan McDonald says this won't cause businesses to cut jobs - but they will be more cautious. 

"If you're thinking about hiring people - and people are still hiring people - if you can get someone for $25-$26 an hour who's done a few years in the workforce and has a proven track record - are you going on someone at $23.50 who doesn't?"

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Episode Transcript

Speaker 1 (00:00):
The minimum wage will increase spy one and a half percent,
or thirty five cents to twenty three dollars fifteen hour
from April. Training wages and starting wages will increase to
eighteen eighty, remaining at eighty percent of the minimum wage,
as they always do. The worker unions have criticized the move.
They say it's effectively a pay cup for low paid workers.
Alan mc donald is the Employees of Manufacturers Association Head

(00:20):
of Advocacy, Finance and Strategy. Alan Good Evening got on
Good to have you on the show. Do you think
this is a fear increase.

Speaker 2 (00:29):
Well, just look at the announcement earlier today and look
at the economic conditions. You know, there's no money in
the tin, so a moderate increase after several years of
quite large ones is probably the right balance.

Speaker 1 (00:44):
Is this still high enough that businesses might look at
either laying staff off or reducing hours.

Speaker 2 (00:54):
I don't think it's there. It's just every cost at
the moment is something that business is taking into account
and not sure it will cause them to lay off people,
but what it will do, I think make them think
about who the people are that they're going to take on,
because if you're thinking about hiring people, and people are
still hiring people. If you can get someone for like

(01:15):
twenty five bucks an hour something like that, twenty six
who's done a couple of years in the workforce with
a proven track record, Are you going on somebody at
twenty three and it doesn't have that kind of track record?
And sometimes you know that decision comes down to all
how much time and work and effort training do I
have put into that new person as opposed to someone
with a track record, So it may affect who they

(01:37):
hire rather than they're hiring intentions.

Speaker 1 (01:39):
Yeah, true, there'll be the minimum age workers listening to
this will go well. Actually, inflations up, you know, two
point two percent to the September quarter. This is less
than inflation. I've got rent to pay rents through up
four point four percent, a four point one percent, I
should say, from November last year November this year. You know,
surely you can find it in yourselves.

Speaker 2 (02:00):
Well, you know, the minimum wage rent up forty five
percent and five years, which was well of heading inflation.
And I don't think anyone in the workforce is getting
or won't. They haven't for the last couple of years anyway,
got anything that even looked close to matching inflation, So
you know, we are all doing it a bit tough
at the moment, and thirteen and a half billion short
on revenue. Said that this morning, that.

Speaker 1 (02:23):
Books that you mentioned earlier, I personally quite sad and
like almost upset looking at the government's books today, especially
when you look ahead. Everyone's saying survive to twenty twenty five,
and then you look at growth of twenty twenty five
and it's a kneemic to the point where on a
per capita basis, we're still going backwards in twenty twenty five.

(02:43):
How do businesses feel about those books.

Speaker 2 (02:47):
I'm sure they've taken a note of that and just gone, well,
we could have told you that was going to be
the case, because businesses are still doing it very hard,
and while the Finance Minister is quite right some of
the indicators are turning, it's still probably at least six
and more likely twelve months before that kind of turn
is going to have it. And even then, as you said,

(03:07):
it looks pretty anemic.

Speaker 1 (03:10):
Yeah, all right, Ellen, thank you very much for that.
Alan McDonald Employer's Manufacturers Association with us talking about the
increase to the minimum wage.

Speaker 2 (03:17):
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