The Hospo Industry Is Campaigning Against Raising Wages In What Is Sadly Not An April Fools Joke

While the rest of Australia is fighting for the government to do something to improve wage growth, the nation’s hospitality industry is calling for the exact opposite in what — sadly — is not an April Fools joke.

The Federal Government failed to increase the minimum wage as part of the Budget, but there is still hope for an increase under FairWork’s annual review — which is currently accepting submissions.

A submission from the Restaurant and Catering Industry Association has called for no increase to the minimum wage — arguing that pay is already rising as a result of job shortages, super increases and bonuses in the budget. However, it’s worth noting that paying super is hardly a pay rise, job shortages simply mean people are working more hours, and any bonuses in the Budget are temporary measures that won’t help combat inflation unless higher wages are introduced.

As is to be expected, the argument of ‘you’ll pay $7 for a coffee’ has again been thrown around, with the association’s chief executive Wes Lambert asserting that it is “only a matter of time” before high wages result in $7 coffees.

“If we do see minimum wage rises of 5 percent or more … it is only a matter of time before we experience $7 coffees, which are common in other capital cities around the world with similar property prices, like Tokyo, New York and London,” he told The Guardian.

In an interview with The Guardian, Lambert asserted that wages in hospitality have increased by 3.5 percent this year alone — claiming this is “higher than any other industry”. However, we already know that wages are increasing, the problem is that they aren’t increasing enough to match inflation.

“That is absolutely evident in advertisements for nearly 100,000 open positions in accommodation and food services at rates that are well above the award, with some barista and kitchen hand positions earning nearly six-figures,” he told The Guardian. “So certainly the critical workforce shortage and low unemployment is naturally driving up wages.”

Contrarily, the Australian Council of Trade Unions has called for a $2,000 per year rise to minimum wage in its own submission to the review — noting that an increase from $20.33 to $21.35 would make a significant difference to employees amid rising inflation.

“The Morrison government has projected real wage cuts this year, following on from the $800 cut last year,” ACTU boss Sally McManus told The Guardian. “This can be avoided if they support this wage claim.”

Obviously, it’s worth noting that small businesses have racked up extreme amounts of debt throughout COVID, and having to pay higher wages will be an added stress on top of this. But to assert that the solution to this is to simply expect staff to work for a wage that they simply can’t live on is ludicrous.