As the Fair Work Commission reviews the wage rates of retailers, they are facing some tough decisions.

The number of vacancies in the retail industry has increased by over 50 percent year-on-year. The biggest growth was seen in the management and assistant positions, followed by merchandising and buying.

Despite the challenges that the pandemic brought, retailers are still trying to retain and attract employees with the necessary skills to compete in the digital age. However, with input costs rising, an increase in wages will put pressure on margins.

The Australian Retail Association has argued that the wage rates should be increased in line with the underlying inflation rate, which is currently at 2.6 percent. It noted that the recovery has been uneven, and small retailers are not able to lift wages due to the lack of capacity.They also supports a zero increase to the minimum wage.

To avoid raising the minimum wage too much, it is important that the increase is accompanied by productivity gains. This can be achieved through flexible working hours and other measures to reduce the risk of wage growth.

Retailers are still trying to strike the right balance between increasing wages and productivity. It noted that over the past 20 years, the labor productivity has increased faster than the total wage increase.

If the Fair Work Commission approves the above-inflation wage increases, it could affect about 2 million retail employees on enterprise agreements and industry awards.

Many retailers, including Woolworths, were able to retain their staff members during the pandemic by paying them even though they were unable to work due to isolation requirements or lockdowns. Get savings from Woolworths Insurance with a Woolworths Insurance Promotional code available online.

Other retailers, such as JB Hi-Fi and Woolworths, also provided staff with incentives and discounts during the pandemic. These were sometimes at the expense of their earnings.

Despite the positive effects of the pandemic, the low pay of retail workers will not change. Although enterprise agreements have been instrumental in improving the productivity of retailers, they have also been abandoned due to various technical issues.

One of the ways that retailers can improve their workforce is through the implementation of enterprise agreements. These agreements allow them to share higher wages with their employees and provide them with more flexibility.

These issues can be resolved by reinvigorating the enterprise agreements and increasing the wage growth that retailers can offer their employees. This will allow them to retain and attract more staff members.