FWC rules pay increase for young workers

26/11/2020

Young workers could see their pay more than double next year after the Fair Work Commission handed down a decision to increase pays from next February, according to a recent Inside Retail report.

The new ruling will see a Level Four junior worker (under the age of 21 years) have their rate of pay boosted from approximately $10 an hour to the full adult rate of $22.70 an hour, depending on their age.

Shops, Distributive and Allied Employees Union National Secretary, Gerard Dwyer, said the decision was a big win for young workers in retail, who are often expected to perform the same work as adult workers for half the pay.

The old system discriminated against both young and old, as young workers were expected to work for less and often got work that could have gone to an adult employee, who in turn missed out, Mr Dwyer said in the Inside Retail report.

However, NRA Deputy Chief Executive Lindsay Carroll said employers were baffled by the commission’s decision, particularly when considering the government’s recent incentives for businesses to hire young workers.

Image: Shuang Li / Shutterstock.com

Image: Shuang Li / Shutterstock.com

“This decision to drive up the cost of hiring teenage workers will inevitably lead to a shift away from hiring younger people, as the financial proposition simply does not add up for business owners anymore,”

“As a time when the Federal Government is stepping on the economic accelerator as hard as it can to get young people into jobs, it is baffling that the Fair Work Commission is pulling on the handbrake.” Carroll said in the report.