Millions of young Australians might be about to see a major pay rise. A landmark wage case currently being heard by the Fair Work Commission could mean better pay for those under 21, especially for those in industries like retail, fast food, and pharmacy. If the case is successful, workers like Ben Walker, a 20-year-old Woolworths employee, may finally see their experience reflected in their paycheck, instead of being stuck with a wage that doesn’t quite match their adulthood.
A Longstanding Pay Gap
Australia’s current junior wage rates have been a part of the landscape for decades. For young workers, it means that if you’re under 21, you’re often paid a percentage of the adult wage. An 18-year-old might earn only 70% of the award rate, while a 19-year-old might get 80%, and 20-year-olds receive 90%. For Ben Walker, who has worked at Woolworths for four years, this has meant getting paid less than his older, less experienced colleagues. He’s doing the same work, yet he’s still stuck with a “child’s wage,” as he puts it.
“I have a car, I pay board at home, I’ve got a motorbike as well. I’m paying adult fuel with still a child’s wage,” Ben said to ABC News. “The fact that I’ve had more experience and yet I still get paid a little less.”
Unions and Business Clash
This wage disparity has drawn the attention of the Shop, Distributive and Allied Employees’ Association (SDA), the union representing young retail workers. They argue that once someone turns 18, they should be paid an adult wage, considering they can vote, drive, and legally drink. The SDA believes that youth wages are outdated and don’t align with the realities of modern society. However, business groups like the Ai Group, representing large employers like McDonald’s and Coles, warn that changing these wage structures could have unintended consequences.
They argue that increasing youth wages too much would raise the cost of employing young workers, which might lead businesses to hire fewer young people, affecting overall employment opportunities. They also highlight that young workers are just starting their careers and haven’t yet built up the same level of skills or experience as older workers.
A Step Toward Fairness?
On the other side, unions have pointed out that businesses made similar arguments when women were fighting for equal pay decades ago. Sally McManus, the secretary of the Australian Council of Trade Unions (ACTU), says that when women demanded equal pay for equal work, employers claimed it would lead to fewer jobs for women, but history proved otherwise. She believes that young people should no longer be paid less for doing the same work, as life doesn’t cost them less just because they’re younger.
As it stands, almost half a million young people are on these junior rates. But if the union wins, the decision could spark a wider shift, possibly impacting workers across other industries with similar youth wage systems.
Looking Ahead
For many young Australians, this case could be a huge win. If the Fair Work Commission rules in favor of the union, it will be a major step forward in terms of fairness for young workers across Australia. They won’t just be recognized as adults by society; they’ll be paid like adults, too. But whether or not this will lead to a wave of positive changes for youth wages across all sectors remains to be seen. The case has yet to be decided, and no date has been set for the release of the ruling.
Still, it’s a crucial issue for young people who feel they’ve been stuck in a system that undervalues their time and experience. In the coming months, we’ll know if the pay disparity between young and adult workers will finally be addressed, or if employers will continue to argue that youth wages are necessary for maintaining jobs and keeping costs low. Either way, it’s a defining moment in Australia’s ongoing battle for fair pay.
