Michele O'Neil, President of the Australian Council of Trade Unions (ACTU), at the National Press Club

Australian labor unions are rallying to abolish reduced pay rates for younger employees.

The Shop, Distributive and Allied Employees Association (SDA) has filed an application with the Fair Work Commission to eliminate junior pay rates for workers aged 18 and above in sectors such as retail, fast food, and pharmacies, advocating for them to receive full adult wages.

Currently, individuals under the age of 21 working in these industries under the relevant awards are not eligible for adult pay rates.

Michele O'Neil, President of the Australian Council of Trade Unions (ACTU), at the National Press Club
Michele O’Neil, President of the Australian Council of Trade Unions (ACTU).(Alex Ellinghausen)

Instead, their compensation is determined by a declining scale that unions argue fails to keep pace with the living expenses faced by young employees.

For instance, those under 20 earn 90 percent of the adult rate, while 19-year-olds receive 80 percent.

Meanwhile, 18-year-olds are compensated at just 70 percent of the complete award rate in these industries.

ACTU President Michele O’Neil said employer groups have got it wrong when they claim a change will cost young workers their jobs.

“If you’re 18, you’re legally an adult. You can vote. You can drive. You can work the late shift. But in retail and fast food, you’re still paid like a kid,” O’Neil said.

“That pay gap isn’t small. An 18-year-old needs 50 plus hours a week to earn what an adult makes in 38.

“The bills don’t get reduced because you’re younger. The rent doesn’t care about your birthday.

“The SDA – the union for retail and fast-food workers – has asked the Fair Work Commission to fix this.

“Once you’re legally an adult, you should be paid the adult wage. It’s straightforward and fair.”

A case starts in the Fair Work Commission today.

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