Young workers across the country could soon receive a pay rise as unions seek to align the incomes of 18-year-old workers with those of adults.
Unions on Thursday submitted a “groundbreaking” application calling on the industrial relations watchdog to abolish “discriminatory” youth rates on retail, fast food and pharmacy premiums and pay workers the full adult rate 18 years or older.
Currently, workers under the age of 20 in retail, fast food and pharmacy are paid less than the full salary of an adult.
Younger workers in those sectors across Australia will see a rise in wages if the case is successful, with benefits expected to flow into junior rate enterprise deals.
The proposed changes could also result in a pay increase of between five and 10 per cent for workers under the age of 16 and 50 per cent severance pay and a 15 per cent pay increase for 17-year-olds.
Youth rates in retail, fast food and pharmacy premiums could be abolished and workers would pay the full adult rate for workers over 18.
Shop, Distribution and Allied Employees Association national secretary Gerard Dwyer said some retail and fast food workers had many years of experience in the sector by the time they were 18.
“If you’re an adult, you should be paid an adult salary,” Dwyer said.
“There is no justification for them to be paid 30 percent less.”
The union said young people in Australia face the same cost-of-living pressures as everyone else, but are discriminated against in terms of pay.
The Australian Retailers Association accused the unions of hastily approving the offer without consulting the industry.
Chief executive Paul Zahra said there was a fine line in maintaining sustainable conditions for both employees and employers.
“Junior rates are used to encourage the employment of less qualified young people, offering them an entry point into their careers,” Mr Zahra said.
“Without these fees, these young people may have difficulty competing against older, more experienced applicants.”
He is concerned about the impacts the proposed changes could have on struggling retailers experiencing a “cost of doing business” crisis.
“Many employers in the retail, fast food and pharmacy sectors are small businesses (mom and pop operators) who are facing serious difficulties and simply cannot afford another pay rise,” Mr Zahra said.
The Fair Work Commission on Monday increased minimum and award wages by 3.75 per cent since July.