Home Tech How the minimum wage increase will sting you at the checkout

How the minimum wage increase will sting you at the checkout

Farmers warn that raising the minimum wage will mean Australians paying more at the supermarket checkout every day.

Queensland farmer Warren Jonsson told Today the increase will have “a dramatic effect” on his entire supply chain and affect his business to the tune of $85,000 a year.

“I can only see one outcome for us: There will be more unemployed, which is very unfortunate because so many businesses have struggled during the COVID-19 pandemic,” Warren told Today.

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Queensland farmer Warren Jonsson said he will have to raise his prices in the long run to handle the rise in the minimum wage. (This day)

READ MORE: PM promises more after salary increase

Warren said he is hesitant about raising prices for his Jonsson’s Farm Market customers, but in the long run he will have to do so to stay afloat.

“If the supply chain has to continue, we have to pass on these costs. Times are tough for everyone,” he said.

Warren said he knows he will lose customers if prices go too high and with lettuce costs rising to $10 as an example, he has already seen a drop in sales.

iceberg lettuce
Warren said he knows he will lose customers if prices go too high. (Getty Images/iStockphoto)

READ MORE: How inflation is affecting weekly grocery costs

You have also been told that your energy bill will increase by more than 35 percent in the next 12 months.

“Is that serious? Supposedly we have this renewable energy, there are windmills at my back door in Cobán and we have solar energy and the price still goes up,” he said.

“Something isn’t right, it’s not entirely sustainable, right?”

See the full interview with Warren above

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