The Australian Council of Trade Unions is leading a renewed push for junior pay rates to be scrapped for adults aged between 18 and 21, in a move that could affect the livelihoods of about 500,000 young Australian workers.

Today younger workers can earn significantly less than their older colleagues, even when they share similar responsibilities. For instance, 18-year-olds in sectors such as retail, fast food and pharmacy may earn as little as 68% of the national minimum wage of $24.10 an hour, with pay rates dwindling further for those younger. This disparity costs young Australians a staggering $3.5bn in unearned wages each year.

The justification for youth wages often centres on the need for employers to provide extensive training to young, unskilled workers. The theory is that employers invest in their development and, in turn, they earn more as they gain experience. But in reality, this justification doesn’t hold up well any more. Many employers today expect workers to be job-ready from day one, with minimal or no training provided. In many cases, young workers invest in their own training before even stepping foot into the job, making youth rates feel misplaced and outdated.

The skills-acquisition argument might have some merit for........

© The Guardian