A "meaningful" wage rise for retail and fast food workers would be one of the "best and fairest investments" for regional communities, their union says.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The SDA is backing an ACTU push to increase the minimum wage by 5 per cent, which would benefit many retail and fast food workers.
Modeling for the SDA by think tank Per Capital found retail wages contributed $302 million a week to the economies of rural areas, country towns and regional cities across Australia.
Meanwhile, rising costs were a big concern for workers.
"A survey of SDA members found increasing household bills and cost of living is the main concern, followed by high rental and house prices and lack of jobs for younger people," the union said.
It said 46 per cent of regional SDA members were concerned about the effect of high rental and house prices on the future health and liveability of their local area.
"Retail workers have been on the frontline of the pandemic and this service, along with their massive contribution to the local economy, should be recognised with a meaningful wage rise," the SDA's Barbara Nebart said.
"The pandemic crisis and recent instability has highlighted the critical role of stable, essential jobs and this new report shows retail plays a significant contribution to local economies.
"One of the best and fairest investments for regional communities is increasing the take-home pay of retail and fast food workers and placing more dollars back into household budgets.
"This wage rise needs to happen right now to help with cost of living skyrocketing and a decade of sluggish wage growth."
Ms Nebart said wage increases had failed to keep up with rising costs of living, including food, housing and childcare, with more pressure on the way.
She said the federal budget forecast up to 4.5 per cent inflation over the next year alone.
Per Capita's Retail in the Regions report found there were about 420,000 retail workers in rural areas, country towns and regional cities.
It found retail workers tended to be younger and in lower income categories, so the "vast majority" of their wages would be spent quickly, and mostly in their local areas.
As well as retail workers tending to have relatively low incomes, the report said the coronavirus pandemic had "negatively and acutely" affected them.
"Hours have become more uncertain due to trade restrictions and staffing shortages, customers have hurled abuse and frustration at frontline staff, and the public facing nature of their roles mean that retail workers are on the front lines of the virus' spread," it said.
"Yet, despite the essential nature of the work and the risks that these workers have assumed during the pandemic, the workforce remains undervalued in our economic and political discourse."
The report said retail workers made up about 9.5 per cent of the workforce in the greater capital cities and 10.7 per cent in country towns.
It estimated that of the three city municipalities in Tasmania's northern half:
- Devonport had 1147 retail workers out of 9647 workers in total;
- Burnie had 1030 out of 7680; and
- Launceston had 3404 out of 27,531.
Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey argued a 5 per cent minimum wage rise would damage the economy.
"The ACTU claim would directly result in fewer people in work and would stall the economic recovery that's under way," Mr Bailey said.
"It would also put the housing crisis on the North-West into overdrive because it would cause inflation to spike, which would cause interest rates to go up, which would make it almost impossible for people already battling with the cost of living to afford a mortgage.
"Of course employees should be paid a fair amount, but what the ACTU is calling for would do more harm than good."