Lay-offs, less hours if ALP lifts pay rates: poll

Small businesses would be forced to lay off staff and reduce workers’ hours if a 5 per cent wage increase is introduced, a poll says.

Chamber of Commerce and Industry Chris Rodwell says Bill Shorten should reverse Labor’s proposal to introduce a living wage. Picture: Jeff Camden

Many voters in Western Australia believe small businesses would be forced to lay off staff, reduce workers’ hours or delay hiring new staff if a 5 per cent wage increase is introduced, according to a statewide poll.

As Bill Shorten and Scott Morrison prepare for a leaders’ debate in Perth tonight, polling shows voters are wary of Labor’s plan to support the ACTU’s proposal for a 5 per cent wage increase.

The Opposition Leader and the Prime Minister are also expected to spend time campaigning in five WA seats that are up for grabs on May 18.

The survey of more than 900 voters, conducted by Patterson Research Group earlier this month, was commissioned by the WA Chamber of Commerce and Industry, which is campaigning against Labor’s wages policy.

Mr Shorten last month attacked the CCI over its stance on the issue, describing the business lobby group as a trade union for employers that “gets paid” to ­oppose wage increases.

He was responding to CCI’s survey of its members that found 76 per cent of businesses expected jobs would be lost, hours cut or ­hiring delayed under Labor’s wages policy.

According to the Patterson poll of voters, to be released today, 34 per cent of respondents believe firms will be forced to delay hiring new workers if a 5 per cent wage rise is introduced, while 25 per cent of people said businesses would cut staff and 19 per cent said existing workers’ hours would be cut.

Only 13 per cent of respondents said increasing the minimum wage was the best way to boost wages without job losses.

CCI chief executive Chris Rodwell said Mr Shorten should reverse Labor’s proposal to introduce a living wage.

He said the plan would hit WA, which has struggled to recover from the end of the mining boom.

WA has the second-highest ­unemployment rate in the country and business investment is forecast to fall a further 15 per cent this year.

“It is no longer just the business community providing the feedback,” he said.

“The overwhelming majority of WA households agree that Labor’s living wage policy would impact employment in WA.”