The Fair Work Commission is currently hearing a case to abolish junior pay rates for workers aged 18 to 20.
Young adult workers in the retail, fast food and hospitality industries earn below the minimum award wage before they turn 21.
The Shop, Distributive and Allied Employees’ Association (SDA) is leading the case, arguing there is “no justification” for these rates.
A peak business group has argued the change would lead to higher youth unemployment, while the Government hasn’t committed to supporting any changes.
Junior rates
Employees in most industries are subject to “awards” which set out their pay and working conditions. The Fair Work Commission (FWC), the national workplace tribunal, determines these awards.
Currently, adult award minimum wages apply to workers aged 21 and older. Anyone younger gets the lower junior rates.
For example, if a 21-year-old gets $29.04 as a waiter, an 18-year-old is paid about $16.04 per hour for the same job.
Unions
The Australian Council of Trade Unions (ACTU) has called for junior rates to be scrapped for anyone legally considered an adult.
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ACTU President Michele O’Neil noted that “an 18-year-old needs 50 plus hours a week to earn what an adult makes in 38.”
The SDA is one of the unions representing retail and fast food workers, and filed the application with the FWC.
National Secretary Gerard Dwyer said 18 to 20-year-old workers “do not receive a discount on their rent or bills because they happen to be 18.”
The SDA shared the story of 19-year-old Ahnaf Haque, who has worked at in a Western Sydney fast food restaurant since he was 16. He is now a shift supervisor.
Ahnaf does not get adult pay, meaning he earns around $5 less per hour than some of the people he supervises.
“Even though… my employer thinks I am mature enough to supervise other workers and run the store, I am still being paid less than a 21-year-old who could walk into a job tomorrow with no experience in fast food at all,” he told the union.
Business response
In a statement on Monday, the National Retail Association (NRA) said: “Abolishing junior wages will create higher youth unemployment.”
Australian Bureau of Statistics data shows youth unemployment is at 10.2%, more than double the overall rate of 4.3%.
The NRA cited an internal survey finding 77% of retailers “would likely cut junior hiring if junior and senior rates were equalised.”
