‘Out of date’: Push for wage boost for junior workers

Oct 02, 2024
New Daily



Junior pay rates for workers over 18 should be scrapped, the head of Australia’s peak union body says, labelling the wage as discriminatory.

Australian Council of Trade Unions president Michele O’Neil has urged the federal government to make workplace law changes that would allow for workers aged 18-21 in industries such as retail and fast food to be paid adult wages, rather than junior rates.   


But business groups have argued the move, which would affect more than 500,000 workers, would lead to young people not being able to get into the workforce.

O’Neil said adult wages for junior workers would allow for them to keep up with rising living costs.

“Paying junior wage rates for workers aged 18 and over is discriminatory and out of date,” she said.

“Young workers aged 18-21 in retail, fast food and pharmacy are being paid less, solely based on their age. They aren’t paying less for their rent, groceries or energy bills.”   


O’Neil said younger employees should not be forced to accept a percentage of the adult rate for doing the same jobs as other workers.

“They are doing the same work, with the same skills and facing the same cost of living pressures as older workers,” she said.

Business Council of Australia chief executive Bran Black argued the move would create complexity for companies.

“This approach could have the consequence of stopping many young people getting a start in life with their first job,” he said.


“The burden of increased workplace red tape is harder and harder to bear, so these types of changes would come at precisely the wrong time.”

Australian Chamber of Commerce and Industry chief executive Andrew McKellar said the union’s calls were an attempt to influence the Fair Work Commission.

“Youth unemployment is already much higher than the general population at 9.8 per cent; the ACTU should not be seeking to circumvent the commission,” he said.

Greens join push to scrap junior worker pay rates   

Financial Review
Oct 3, 2024

The Greens have joined a push to abolish junior wage rates for young workers, ramping up pressure on the Albanese government for another round of industrial relations changes after next year’s election.

ACTU secretary Sally McManus this week urged Labor to scrap lower pay rates for workers under 21 employed in retail, fast food and pharmacy. The change, which union leaders want if Labor wins next year, would help as many as 500,000 workers over the age of 18 but who are paid less than their older colleagues.   




In what would be a third tranche of major industrial relations reform since 2022, laws allowing workers to be paid a percentage of adult rates would be abolished. Some workers in the sectors are paid as little as 70 per cent of the full adult wage, despite being over 18.

But employers warn the rises would be unaffordable for parts of the economy. Employment and Workplace Relations Minister Murray Watt declined to comment on Thursday, but Greens employment spokeswoman Barbara Pocock confirmed her support for the plan.

Polling suggests Labor could lose its slim majority at the election, a scenario that could hand the Greens significant negotiating power in both houses of parliament. 



’Less pay for the same work’
Senator Pocock said an 18-year-old hospitality worker should not be paid $12 an hour less than a 21-year-old worker.

“Young people don’t get junior prices at the supermarket or a junior discount on their rent. They have to live through this cost-of-living crisis just like everyone else so why should they get less pay for the same work?

“Junior pay rates guarantee an endless supply of cheap labour for employers willing to exploit the skills and talents of young people often desperate to get a start in the workforce. This idea that employers provide entry-level jobs for young workers only because they can pay them a lower wage is a furphy.”

The change is already opposed by employer bodies including the Australian Industry Group, the Business Council and the Australian Chamber of Commerce and Industry,

Opposition industrial relations spokeswoman Michaelia Cash said the calls were badly misguided.

“The ACTU needs to explain how much their latest campaign will cost Australian small and family businesses, who are already struggling under the Albanese government,” she said.

“With the youth unemployment rate at 9.8 per cent, the government should not be introducing measures to discourage employers from hiring young Australians which helps many get a foot in the door.”

Low rates help young compete
Senator Watt told ABC radio this week he would closely consult unions ahead of the election, due by May. But he said his priority remained “bedding down” substantial reforms Labor has passed through parliament.

Australian Retail Association Paul Zahra said junior rates played an important role in helping younger workers gain work and experience.

“Without these rates, young people might otherwise struggle to compete against older, more experienced applicants for the same role,” he said.

“Junior workers typically require extra supervision, mentorship or training that more experienced workers may not need. Paying junior workers the same as more experienced workers would fail to recognise the differences in skill level and expertise among these different cohorts.”

Mr Zahra said he was concerned some employers could not afford the change in the current economic climate.

“Many retail employers are small businesses on small margins, who are already severely challenged and simply can’t afford another wage hike,” he said.

Funny thing is that the Junior is often expected to do most of the work.

Depending on the industry, juniors often aren't worth the money as you have to constantly supervise them, and often go back over their work fixing errors. Same can be said for 1st year apprentices, irrespective of age.

My oldest is now 15yrs old. I wouldn't expect ANYONE to hire him now for $30hr even though he is very clever and picks things up pretty quickly (he works for me a couple of mornings a week anyway).

And as an employer, If I had to pay $30 and hour, it wouldn't be to a 15 or 16 yr old. I'd rather hire an adult who tend to be more reliable.

John Smith wrote on Oct 8^th, 2024 at 9:16am:


Quote:


The min Award rate is not $30. ($24) The Junior rate is about $11 to $16 (18 years) age dependant.

The 18 year old may have 3 years experience.

John Smith wrote on Oct 8^th, 2024 at 9:16am:


Go to Macca's and you likely find a 17 year old on junior rates with 3 years experience who is the shift manager.

UnSubRocky wrote on Oct 8^th, 2024 at 12:00pm:


Only a guess but I suspect that my statement is true and yours not so much.

The people I am referring to are required under legislation to do that at an accuracy above 97%.

John Smith wrote on Oct 8^th, 2024 at 5:28pm:


The rate is not $30 it is $24 + 25%

For a junior it is the age percentage of $24 which can be something like $11 then + 25% casual loading. Something like $14 to $19.