Fair Work Commission Reviews Junior Pay Rates: A Battle Over Wages for Under 21s
A significant wage case is currently before the Fair Work Commission concerning "junior pay rates" for workers under the age of 21. These rates apply to individuals in sectors with high youth employment, such as retail, fast food, and pharmacy. Under current provisions, 18-year-olds are paid 70 percent of the award rate, 19-year-olds 80 percent, and 20-year-olds 90 percent.
Worker Perspective: The Cost of Being 'Junior'
Ben Walker, a 20-year-old supermarket employee with four years of experience, described paying adult expenses while receiving a junior wage. He highlighted the financial strain this imposes.
He noted the perceived unfairness of being paid less than older, less experienced colleagues.
Employer Concerns: Impact on Youth Employment
Employer representatives, including Innes Willox from Ai Group, expressed concerns that substantial increases in staff costs could lead to reduced employment opportunities for young people.
Willox stated that junior rates account for new entrants to the workforce learning skills and their contribution. Woolworths, a major employer of young people, emphasized that the junior pay rate system has facilitated youth employment pathways for decades. The company, which pays full adult rates from age 20 and for supervisory roles, called for any changes to be introduced sustainably and responsibly.
Union Arguments: Call for Adult Wages at 18
Unions are advocating for the abolition of junior pay rates for workers aged 18 and over.
Australian Council of Trade Unions (ACTU) Secretary Sally McManus compared the employer arguments against change to historical opposition to equal pay for women, which proved incorrect.
She highlighted that 18-year-olds are legally recognized as adults for voting, driving, and military service, but not for wages.
Gerard Dwyer, National Secretary of the Shop, Distributive and Allied Employees' Association (SDA), stated the case aims to ensure adult pay rates for those 18 and older. The SDA's application seeks to vary the General Retail Industry Award 2020, Fast Food Industry Award 2020, and Pharmacy Industry Award 2020. If successful, this could impact nearly half a million young workers and potentially influence changes to approximately 70 other awards.
Case Status: Decision Pending
The Fair Work Commission's full bench heard evidence in the case during October and November. A decision is pending, and no release date has been set.