Growing call for Australia to introduce big change to junior pay rates

There is a growing push to abolish junior pay rates across the country, with Aussies branding the current system a “scam”.

A large amount of Aussies are backing a push to abolish junior pay rates across the country, claiming it isn’t fair that younger workers are being paid less than their older colleagues in situations where they have the same responsibilities.

Under the current laws, workers aged 20 and under get paid a percentage of the relevant adult pay rate, unless the award, enterprise agreement or other registered agreement doesn’t have junior rates.

Junior rates apply to 75 awards, including in the retail, fast-food and pharmacy sectors.

The National Minimum Wage is currently $24.10 per hour, or $915.90 per week.
At the moment, current junior pay rates mean impacted workers aged from 18 to 20 years old are paid between 68.3 per cent and 97.7 per cent of the national minimum wage.

For 16 to 17 year olds, that rate decreases to 47.3 per cent and 57.8 per cent and those under 16 are paid 36.8 per cent of the minimum wage.

Now, a significant number of Aussies are backing a push from unions to scrap junior wages for those aged 18 and over, with hundreds of people sharing their views in a recent Reddit discussion on the subject.

There is a major push for junior pay rates to be abolished for 18 to 20-year-olds. Picture: iStock

Multiple people noted that people are considered “adults” when they turn 18 and questioned how it could then be justified to pay them less just because of their age.

“Nothing else in this country treats someone as an adult only from the age of 21 except for full pay,” one commenter said.

One added: “Old enough to vote, drink, and for all intents and purposes be a full adult. Old enough to get a full adult wage.”

Many commenters claimed that, for the most part, pay should be based on experience, not on a person’s age.

“If the young person has more experience than the older person in the same job, I’d expect the young person to be paid more,” one person said.

“It’s a scam. An excuse to reduce wages against someone who is doing the exact same job as other people. It’s ageism. It’s also a relict of a distant past where literacy and education levels were significantly dependent on age,” another claimed.

However, there were those that agreed that for people under the age of 18, junior pay rates made more sense as they were likely to need more supervision or training.

This year the Shop, Distributive and Allied Employees’ Association (SDA) submitted an application to the Fair Work Commission seeking to remove junior rates for employees who are 18 years or older from the General Retail Industry Award, Fast Food Industry Award and Pharmacy Industry Award.

The SDA is also seeking to raise rates for those under the age of 16 to 50 per cent of the minimum wage and 75 per cent for 17-year-olds.

The Australian Council of Trade Unions (ACTU) is backing the application, branding junior pay rates “discriminatory” and claiming they represent “massive pay cuts” for young people.

Sally McManus, ACTU Secretary, questioned why young people should be getting “youth wages” when they don’t get discounts on their rent or grocery bills.

“Eighteen-year-olds have the same social and legal responsibilities as other adults and deserve the same minimum pay rates,” Ms McManus,

“The cost of living and housing disproportionately falls on young workers. Wage discrimination in the forms of youth wages, discriminatory super rules, and forms of unpaid work such as internships, are compounding economic insecurity for young people.

“The cards are already so heavily stacked against young workers. It is unfair for them to have to work harder and longer to pay the same bills as other adults.”

However, not everyone agrees with the move.

Tammie Christofis Ballis, a recruiter and career coach at Realistic Careers, told news.com.au that, in her opinion, scrapping junior awards is “not necessarily a good idea”.

She warned abolishing junior pay rates could remove the incentive for businesses to hire younger people.

“You’ve got two candidates. One’s got work experience and life experience and one doesn’t. They’re both at the same award rate. At the end of the day, a business is a business. They hire skills and they are going to hire the one that has already got the skills,” she said.

The Australian Council of Trade Unions (ACTU) has branded junior pay rates ‘discriminatory’. Picture: NewsWire / Nicholas Eagar

Ms Ballis said a business is not going to pay someone who they have to train for six months the same wage as a person who doesn’t need the same training and attention.

Bran Black, Business Council Chief Executive, has urged the government to rule out changes to junior rates, saying it could have the counter-productive impact of locking out young people from getting into the workforce.

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

“Businesses are facing serious economic challenges, and record insolvencies rates, and I hear constantly from businesses that 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.”

The Australian Chamber of Commerce and Industry (ACCI) said the proposed changes would mash businesses that are already struggling.

Andrew McKellar, ACCI Chief Executive Officer, lashed out at claims from the ACTU that the union would push for the government to legislate scrapping junior pay rates if the Fair Work Commission application fails.

“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.

Originally published as Growing call for Australia to introduce big change to junior pay rates