The Australian Council of Trade Unions (ACTU) has voted to campaign for the abolition of junior wages, prioritising the needs of young workers over the coming years.
This decision was made during a nationwide meeting of union groups, where it was highlighted that younger workers can legally earn as little as 40% of the wages of their older counterparts, despite having the same responsibilities.
Justice for young workers
The ACTU’s highest decision-making forum, Congress, has endorsed a range of measures to ensure justice for young workers.
This includes campaigning to end wage discrimination and advocating for superannuation to be paid to all workers under 18.
The campaign aims to create a fairer system that bases pay on the level of duties performed rather than age.
Currently, employers only need to pay superannuation to workers under 18 if they work more than 30 hours a week.
Junior wages, applicable in numerous awards across Australia, impact industries such as hospitality and retail, which employ significant numbers of young people.
For instance, under the current Fast Food Industry Award, a 15-year-old worker is entitled to 40% of the applicable rate for a person aged over 21.
This rate increases by 10% annually until the employee turns 21, irrespective of their experience or responsibilities.
Similarly, under the Retail Award, a 15-year-old earns 45% of an adult wage, while in the Restaurant Award, workers under 17 are paid half the adult wage.
The ACTU's youth committee promoted the issue at Congress. The proposed measures include scrapping junior wages, raising apprentice wages, ending unpaid university placements, and extending superannuation to all employees under 18.
Lack of incentive
Younger workers argue that being paid less than their colleagues negatively affects their self-worth and discourages them from working harder.
Despite the push for change, several industry bodies have expressed support for the current system.
Suresh Manickam, head of the Restaurant and Catering Association, voiced concerns about the impact on small businesses if junior wages were altered.
Denita Wawn, CEO of Master Builders Australia, highlighted the need for incentives in the building and construction industry to attract more apprentices.
Paul Zahra, CEO of the Australian Retailers Association, emphasised that junior rates incentivise employment for less-skilled young people, providing an entry point for their careers.
He argued that without these rates, young people might struggle to compete against more experienced applicants.
Countries such as New Zealand, Canada, and South Korea have already moved to abolish or limit the use of junior wages, setting a precedent for potential changes in Australia.