Wage rise for Apprentices

Business groups and Industry associations have warned of a serious threat to the apprenticeship system after significant pay rises were awarded to apprentices by the Fair Work Commission.

The Tribunal awarded an increase of 30% to first year apprentices and 18% to second year apprentices.
This equates to pay rises of between $70 and $100 a week.

Penny Cornah, the Executive Director of Master Plumbers’ Association of Queensland is appalled by the decision, saying "it will increase costs to businesses which in turn will decrease apprenticeship opportunities for younger people resulting in less skill within the industry as a whole".

Peter Anderson, CEO of the Australian Chamber of Commerce and Industry said the decision will be the "nail in the coffin" of the apprenticeship system, and a "body blow" to the capacity of employers to offer new apprenticeships.
"Australians wanting to tackle youth unemployment should view this decision with grave concern," Mr Anderson said.

"The industrial relations tail has wagged the apprenticeship dog," he added and "dramatically increased employment costs will cruel the capability of employers to take on apprentices in an affordable way. Increasing the costs of employing an apprentice not only impacts employers, but destroys the opportunities for many young people wanting to develop a career."

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ISSUE 5 - aug/sept 2013

Wage rise for Apprentices

Business groups and Industry associations have warned of a serious threat to the apprenticeship system after significant pay rises were awarded to apprentices by the Fair Work Commission.