The CEOs of two of the country’s biggest retail groups, Woolworths and Wesfarmers, have backed the Australian Retailers Association’s call for the Fair Work Commission to lift the minimum wage.

Woolworths CEO Brad Banducci ordered his support to the wage rise in an ASX statement with the company’s March quarter result.

“Importantly, we want to acknowledge the cost-of-living pressures that are being felt by our customers and our team,” Banducci said.

Brad Banducci, Woolworths.

“We also support the Australian Retailers Association’s position for an increase in team member wages that keeps pace with underlying cost-of-living increases.”

The ARA said the FWC should use the Reserve Bank’s “actual rate of underlying inflation at the time the annual wage review is handed down” to calculate increases to minimum wages.

Wesfarmers CEO Rob Scott agrees, telling reporters, “I suspect that we will see more wage inflation pressures in the year ahead,” he said.

“I should note that from a Wesfarmers point of view, I see real wage growth as a very good thing.

“Real wage growth is a good thing for the economy, and if it’s good for the economy, it’s generally good for Wesfarmers.”

The RBA has predicted a 3.25 per cent rise in underlying inflation this financial year.