Trainee wages to shoot up in 2014

APPRENTICE wages will rise substantially from next year – in some instances doubling – after the Fair Work Commission handed down a landmark decision.

The decision, which will affect multiple awards, will deliver substantial pay rises for first and second year apprentices with year 12 qualifications and adult apprentices, while third and fourth year apprentices will remain on the same level of pay.

Australia has more than 500,000 apprentices as of June 30 last year.

The new rates of pay will only apply to apprentices who commence their trade on or after January 1 next year. The variations to apprentice conditions will also kick in from January 1, but will apply to all apprentices regardless of their start date.

The FWC said current wage structures were set when most apprentices were 14, 15 and 16-years-old on commencement.

“Many are now 17 or older and have completed Year 12 schooling, and are already undertaking part-time or casual work with higher wages than they receive under an apprenticeship,” the decision read.

“The full bench considered that increased rates may as- sist to improve the attractiveness of apprenticeships compared to other training or employment options for young people.”

But Australian Chamber of Commerce and Industry chief executive Peter Anderson described the decision as a “body blow to the capacity and confidence of employers to offer new apprenticeships”.

“Australians wanting to tackle youth unemployment should view this decision with grave concern. The industrial relations tail has wagged the apprenticeship dog,” Mr Anderson said.