Rescue deal in works

THE Turnbull government is working on a secret rescue package to compensate thousands of Queensland apprentices underpaid because of advice provided by its own workplace relations watchdog.

The embarrassing blunder could cost taxpayers $30 million in backpay, sparking high-level Cabinet talks of a bailout for training organisations and mum-anddad businesses faced with a blowout in wages.

It is understood there are fears a recent Federal Court decision, which found first and second year apprentices should have been paid higher rates since 2014, could send businesses broke and cost apprentices their jobs. One source said up to 10,000 apprentices may have been underpaid. Group training companies, which hire out apprentices, and mum-and-dad businesses also now have to pay their employees significantly more — in some cases an extra $150 a week.

The Fair Work Ombudsman published pay rates for apprentices in Queensland, which were found to be incorrect by a Federal Court decision in November.

The government is reportedly working on a compensation package but wants the Palaszczuk government to contribute.