ONE of the Gold Coast's most successful chief executives has blasted the 'confusing and inconsistent nature' of the Federal Government's Fair Work modern award scheme.
Zarraffa's Coffee boss Kenton Campbell said casual hours in hospitality and retail -- the lifeblood of the Gold Coast -- would be dropped and there would be job losses because of the scheme, which started yesterday.
Mr Campbell, whose company franchises offer jobs to Gold Coasters on different levels of employment, said the new regime could not be sustained.
The Federal Government's new Fair Work regulations replaced the Howard government's WorkChoices laws.
The industry-based enforceable minimum employment standards apply in addition to the National Employment Standards and affect all employees with an income of $108,299 or less.
The increase, effective over five years, is expected to result in a 25 per cent increase in wages on Saturdays, 50 per cent on Sundays and a penalty of 10 per cent after 9pm each day.
Mr Campbell said that for Zarraffa's Coffee to maintain the wage increases, entry-level drinks would have to be as high as $4 plus GST.
He also called for a 'please explain' from both sides of politics.
"In our company alone some of our stores have been classified under two different award categories," he said.
"I've spoken to both of my parliamentary local members and consulted three industrial relations experts and it's becoming clear that the Government is setting many small businesses on a course toward closure."
The Gold Coast is the small business capital of Australia and is already feeling the sting from the global financial crisis.
"We're talking about people's livelihoods and the future of many small businesses and no-one can adequately explain the new modern award to me, let alone how it is supposed to benefit Australians in the long run," said Mr Campbell.
Zarraffa's Coffee employs a workforce of 800 -- of whom 95 per cent are casuals -- at its head office and 42 franchises.
He said his staff, many of whom were students, wanted to retain casual positions.
Mr Campbell also said that there would be an inflationary shift as businesses accounted for the wage increases.
"The future for the retail sector is bleak and we can expect a 5 to 10 per cent drop, which will inevitably lead to inflation. As of August 1, our in-store prices will increase as a result of CPI by about 3 per cent and another 2 to 3 per cent due to the reforms," he said.
Source: www.goldcoast.com.au