Union push to pay young workers adult wages will kill off jobs, small businesses warn

BRUCE McDOUGALL
July 04, 2013
The Daily Telegraph

JOB opportunities for thousands of young workers will dry up if unions are successful in a controversial claim to pay them adult wages.

Small businesses warned yesterday they would no longer employ and train teenage staff if they were forced to pay adult rates to workers as young as 18.

The jobs threat will hit young people in some of Sydney’s most disadvantaged suburbs – such as Claymore and Airds – where youth unemployment is as high as 41 per cent.

Unions have launched a campaign including TV commercials to extend full adult pay rates to teenage workers.
The powerful Shop, Distributive and Allied Employees’ Association has started a retail industry test case in the Fair Work Commission in a bid to increase the weekly pay packet of 20-year-old retail worker from $615 to $683.
If successful, the union has promised to move to extend the full adult rate to both 18 and 19-year-olds covered by the general retail award.

About 120,000 people employed in the retail sector may be affected.

Chief executive officer of the NSW Business Chamber Stephen Cartwright accused the union of making it harder for young people to get their first job: “There are parts of NSW and Australia that have more than 30 per cent youth unemployment and the union’s solution to this challenge is to price more teenagers out of the job market.
“Youth wages exist for a good reason – to provide that first important point of entry into the workforce and the development of basic employment skills that will be carried through a person’s career.

“The unions should be working with business to reduce the barriers to employing young Australians, not making it harder.”

Small business sector unhappy with govt

The Australian Retailers Association said attempts to abolish junior pay rates would affect job opportunities for “thousands” of young workers.

“Retailers in service industries will ask why they should bother training young people,” executive director Russell Zimmerman said.

“They will take on new staff members who are mature.”

SDA national secretary Joe de Bruyn has warned that, if the wage case is won, unions will then seek a similar increase for young people covered by other awards such as in the fast food industry.

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