A crucial wage case is on the horizon, and it's got young people and businesses alike on edge. This case could be a game-changer, offering a significant pay boost to hardworking youth, but it's also sparking fears of a potential employment crisis.
Let's break it down. The so-called 'junior pays rates' apply to individuals under 21, and they're common in industries like retail, fast food, and pharmacy, which often employ a large number of young workers. These rates mean that an 18-year-old might only earn 70% of what an adult would make, with 19-year-olds at 80% and 20-year-olds at 90%.
Take Ben Walker, a 20-year-old working at a Woolworths supermarket in Victoria. He's been there for four years, pays his own way, and yet he's still earning a 'child's wage', as he puts it. And he's not alone; many young workers find themselves in similar situations, often working alongside less experienced colleagues who are over 21 and earning more.
"I don't think it's fair," Ben says. "I've had more experience, yet I still get paid less."
But here's where it gets controversial. Some of Australia's biggest businesses, like McDonald's and Coles, are worried that any changes to these wage rates could lead to a collapse in employment opportunities for young people. These companies often serve as a stepping stone to full-time jobs, with Woolworths alone providing first jobs for about one in eight Australians.
Innes Willox, speaking on behalf of employers through the Ai Group, warns that any significant shift in staff costs could have dire consequences. "If there are substantial changes, it will be incredibly difficult for employers to hire young people. Young people won't be hired, and that will be detrimental to them, the workforce, and the economy as a whole."
But unions aren't buying it. Sally McManus, secretary of the Australian Council of Trade Unions (ACTU), argues that this is a familiar tune. "When women were paid less than men for the same work, employers argued the same thing. They said there'd be fewer women in the workforce, but that turned out to be untrue."
Advocates point out that at 17, you can enlist in the armed forces, and at 18, you're legally an adult, entitled to vote, drive, smoke, and drink. Yet, wage laws haven't caught up with these societal changes.
"You've got to draw the line somewhere about when someone's an adult, and where you're an adult, you should get paid the same," says Ms McManus.
The case, heard by the Fair Work Commission in October and November, aims to vary three industry-wide 'awards', potentially impacting almost half a million young people. If successful, it could also lead to changes in around 70 other awards with similar provisions.
"This is about ensuring that anyone who's 18 or older gets paid the adult rate," says Gerard Dwyer, national secretary of the Shop, Distributive and Allied Employees' Association (SDA). "They can drink, drive, and vote. We treat them as adults in every way, except at work."
The impact of a change is disputed. Ai Group's Ms Willox argues that productivity, skill, and capability differ between a 16-year-old and a 21-year-old with five years of experience. The SDA, however, clarifies that their claim doesn't seek to change rates for 16 or 17-year-olds.
Woolworths, in a statement, emphasizes its commitment to young people, paying its junior team members above award rates. They call for a balance between value for customers and career pathways for youth.
Ms McManus from the ACTU sees it as a matter of fairness. "Think about those workers. They don't get discounts on rent or at the supermarket. It's about time they got a fair wage."
The hearings have concluded, and now it's a waiting game. The decision, which could impact hundreds of thousands of young workers, is pending, with no release date set.
