Key industry bodies are up in arms over the Fair Work Commission’s decision to increase the minimum wages for apprentices, with some declaring it a major blow for employment opportunities.
The decision will see young apprentices, trainees and juniors across many industries receive a wage rise of between $60 and $100 per week.
Apprentices including electricians, plumbers, builders, manufacturers and more will be impacted, with first and second year apprentices set to benefit the most.
In addition, adult apprentice rates will be included where they are currently not present, and there will be an increase in the minimum award rates for adult apprentices.
The Electrical Trades Union divisional secretary, Allen Hicks, was pleased by the outcome, declaring it a “major win” for the campaign to modernise the apprentice system and make trade training more accessible.
He said the decision reflects that low pay rates are a “major contributor” to low apprentice retention rates, resulting in almost four in ten apprentices failing to complete their training.
“For too long our apprentice pay system has been a remnant of the 1950s, when those learning a trade were teenagers living at home with mum and dad,” Hicks said.
“Shifting demographics mean that today, more than a quarter of modern apprentices are aged over 25 when they enter the trade.”
“The expert advice was clear. If we want to address skills shortages, make training appealing to employers, and ensure adult apprentices can afford to live while undergoing their trade training, we needed to improve retention rates by ensuring they receive a liveable wage.”
The Union’s views were not reflected by Master Electricians Australia (MEA), who slammed the Fair Work Commission’s decision, saying it would destroy the apprenticeship system and kill future apprenticeship opportunities for the building and construction industry.
MEA Workplace Relations Manager Jason O’Dwyer said the approximate 40 per cent raise to junior apprentice wages represented a significant blow for productivity in the industry and for Australia’s economy.
“The decision by the FWC to increase junior apprentice wages comes with hidden costs and represents an overall increase of up to 50 per cent for employers,” Mr O’Dwyer said.
“We need to take into account other factors such as TAFE training and the time required to attend them, tools and travel expenses, and loss of productivity from tradesmen teaching an apprentice on a one-on-one basis.”
“This will force Australia to rely heavily on importing qualified tradesmen from overseas to fill the gap left behind by apprentices.”
Mr O’Dwyer said it was a blatant waste of taxpayer dollars for the Rudd Government to spend $200 million on Trade schools for youths if employers were unable to afford to take on apprentices.
“This is yet another example of industry’s views being sidelined and more talk yet little action from the Federal Government.”
“It is Master Electricians’ hope that the next Government will look to address this issue as a matter of urgency.”
