Half a million young Australians working in retail, fast food, and pharmacy sectors are set for a wage increase after the Fair Work Commission abolished junior pay rates for those aged 18 and over. The wage rises will be phased in over four years, a change unions have compared to the introduction of equal pay for women in the 1970s.
Under the relevant awards, workers aged 20 were paid 90% of the adult rate, 19-year-olds 80%, and 18-year-olds 70%. The decision by the commission's full bench will boost wages for employees at major retailers including Coles, Woolworths, McDonald's, and Hungry Jack's.
The Shop, Distributive and Allied Employees Association (SDA) said young adult workers struggle with the same cost-of-living pressures as other Australians. SDA national secretary Gerard Dwyer called it a 'landmark decision, up there with the introduction of equal pay for women in the 1970s'. Treasurer Jim Chalmers described the ruling as a 'great outcome' for young workers.
To receive the adult rate, 18-to-20-year-old workers must have been with their employer for six months. Junior rates will remain for those under 18. The union's legal debate focused on the 'substantive unfairness' of young adults being paid significantly less for the same job under the same conditions.
Employer groups argued that overhauling junior pay rates would deter hiring, making it harder for young adults to find work. However, the commission said continuing junior rates for minors while paying adult rates to those 18 and over 'strikes a balance between these competing perceptions that promotes both harmony and fairness'.
