Businesses are urging the state government to reconsider plans for a Friday public holiday before the AFL grand final, as a survey of employers reveals three-quarters intend to close for the day to avoid the extra wage bill.
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Highlighting the significant economic impact of the holiday, a survey by the Australian Industry Group found eight out of 10 Victorian manufacturers and more than seven out of 10 services and construction businesses plan to shut their doors for the day, costing the state economy at least $1 billion.
That suggests about 158,000 companies will be closed for the day. A further 31,000 will stay open but will cut staff or their opening hours.
Ai Group Victorian director Tim Piper said the research highlighted the damage inflicted on Victorian business. On average, businesses that will not open will lose $15,800 in sales while still having to pay $9000 in wages. Those that will open expect to spend an average of at least $6700 extra on penalty rates.
"That's a headache, not a holiday," Mr Piper said. "There should be no doubt Football Friday is bad news for the state and its businesses. As we have stressed in our dialogue with the government and in the formal response process, we strongly urge reconsideration of this additional public holiday."
The analysis follows a government-commissioned study by accounting firm PricewaterhouseCoopers which found the Friday holiday will cost the state economy up to $852 million a year in lost production. It also said Victorian employers would pay up to $147 million extra a year in penalty rates.
Premier Daniel Andrews has been pushing to introduce the new public holiday, derided as a populist stunt by some, since 2011.
Immediately after winning last year's state election, he said it was "just the right thing to do", recognising that families were under pressure.
The grand final public holiday is yet to be officially gazetted, but the government says it will do so after considering feedback on the economic impact.
Innovation Minister Philip Dalidakis said the public holiday was about governing for all people, "not just sectional interest groups. We keep our promises and these public holidays are election commitments that we are delivering."
But businesses see things differently. In one response, included as part of the survey report, a national Melbourne-based business said Victorian businesses were already at a disadvantage to other states, with a higher number of public holidays.
Another firm said it would have no economic or social benefit, coming just before Christmas as manufacturers raced to complete jobs before the summer shut down.
The government has also announced it will make Easter Sunday an official public holiday, further adding to the wage bill.
