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The Fair Work Commission (FWC) has decided to eliminate junior pay rates for employees aged between 18 and 20 who have been working for at least six months in the retail, fast food, and pharmacy sectors.
This change will see the phased removal of the discounted wage rates over a four-year period within these industries.
The ruling comes after a persistent “adult age, adult wage” campaign spearheaded by the Shop, Distributive and Allied Employees Association (SDA).
Currently, workers under 21 in these sectors receive a portion of the standard adult wage.
Specifically, the pay scales are set at 70% for 18-year-olds, 80% for 19-year-olds, and 90% for those aged 20.
While advocating for these changes, the union also sought to increase wages for 16 and 17-year-olds; however, this suggestion was not approved by the FWC.
Treasurer Jim Chalmers said the decision to lift rates for workers over 18 as a “great outcome for young workers” in retail, fast food and pharmacy.
”The independent Fair Work Commission decided to get rid of junior pay rates for people over 18 in these industries, but with phasing periods for businesses to adjust,” he said.
“It’s one of those decisions that recognises there was an unfairness here when it came to younger workers who were over 18 in those industries, but also providing for a sensible phasing period for businesses to adjust to the new arrangements.
“This is all about ensuring that Australians get fair and decent wages.
“The outcome announced by the Fair Work Commission will help achieve that.”
SDA national secretary Gerard Dwyer said the ruling was a “landmark decision, up there with the introduction of equal pay for women in the 1970s”.
“It may take longer than we would have liked, but the principle has been established that no longer will 18-year-olds be treated as second-class citizens,” Dwyer said.
“Their work is as valuable as anyone else’s and before too long they will be paid accordingly.”
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