Free Subscription

  • Access 15 free news articles each month

Professional

Try one month for $6
  • Unlimited access to news,insights and opinions
  • Quarterly and weekly magazines
  • Independent research reports and forecasts
  • Quarterly webinars with industry experts
  • Q&A with retail leaders
  • Career advice
  • 10% discount on events

Retailers warn ‘Fair Pay’ deals will drive inflation

(Source: Bigstock)

In an appearance before a Parliamentary Select Committee, Retail NZ has highlighted what it describes as significant impacts of the government’s proposed Fair Pay Agreement Bill.

Retail NZ says the bill will likely result in a price increase, leaving retailers to reduce store hours and replace jobs with automation. Expensive penal rates will likely return as the cost of living crisis exacerbates. 

“On average, net retail margins are just under 4 per cent in our sector.  This means that for every $20 spent, a retailer receives just 80 cents profit,” said Retail NZ in a statement.

Furthermore, 75 per cent of New Zealanders are concerned that prices would increase while 63 per cent worry that Fair Pay surcharges would be applied. Around 60 per cent fear increased freight costs for online shopping.

“Retail NZ is calling on the government to ditch the ‘Fair Pay’ legislation. This legislation must be rejected, based on the majority views of submitters, impact of industries and the views of New Zealanders about the control they want to have on their own employment contracts.” 

You have 7 free articles.