Young workers across the country could soon get a pay rise as unions try to bring the earnings of 18-year-old workers in line with adult wages.
Unions submitted a ‘groundbreaking’ application on Thursday asking the industrial relations watchdog to scrap ‘discriminatory’ junior rates in retail, fast food and pharmacy prices and pay the full adult rate for workers aged 18 and over.
Currently, workers under the age of 20 in the retail, fast food and pharmacy sectors are paid less than the full adult wage.
Younger workers in these sectors across Australia will see an increase in wages if the case is successful, with benefits expected to flow to junior rate enterprise agreements.
The proposed changes could also result in a pay increase of between five and 10 percent for workers under 16, up to 50 percent of pay, and a 15 percent pay increase for 17-year-olds.
The lower rates in retail, fast food and pharmacy prices could be abolished and workers could be charged the full adult rate for workers aged 18 and over
Shop, Distributive and Allied Employees Association national secretary Gerard Dwyer said some workers in retail and fast food chains had many years of experience in the sector by the time they were 18.
“If you’re an adult, you should get an adult’s wage,” Mr Dwyer said
“There is no justification for them being paid 30 percent less.”
The union said young people in Australia faced the same cost-of-living pressures as everyone else, but were discriminated against in terms of wages.
The Australian Retailers Association accused unions of rushing through the bid without consultation with the industry.
CEO Paul Zahra said there is a fine line to keep conditions sustainable for both employees and employers.
“Junior rates are used to boost the employment of less skilled youth, giving them a starting point for their careers,” Zahra said.
“Without these rates, these young people might otherwise struggle to compete with older, more experienced applicants.”
He is concerned about the impact the proposed changes could have on struggling retailers facing a cost of doing business crisis.
“Many employers in the retail, fast food and pharmacy sectors are small businesses – mom-and-pop operators – that are in dire straits and simply cannot afford another wage increase,” Zahra said.
The Fair Work Commission increased the minimum wage on Monday, increasing wages by 3.75 percent from July.