Apprentice wages to rise after FWC decision

The Fair Work Commission (FWC) has issued a decision to change a number of award provisions relating to apprentices. Apprentice wages will increase and minimum award rates for adult apprentices will be increased.

The Full Bench’s decision included:

• Minimum award rates for first- and second-year apprentices should be increased.
• Special provisions should be made for rates of pay and wage protection for adult apprentices.
• Adjustment should be made to apprentice conditions of employment, including travel costs, training time, timely payment of training fees and attendance at training.

Under the decision, a first-year apprentice who has completed Year 12 will be paid 55% of the C10 award rate, which is $398.50 per week or $10.49 per hour. Second-year apprentices who have completed Year 12 will receive 65% of the C10 award.

Adult apprentices will receive 80% of the C10 award rate as first-year apprentices; second-year adult apprentices will receive the national minimum wage or the lowest adult classification rate in the award - whichever is higher.

The FWC’s decision has been condemned by Master Electricians Australia (MEA). According to MEA Workplace Relations Manager Jason O’Dwyer, the increase in junior apprentice wages threatens the industry’s productivity and Australia’s economy.

“The decision by the FWC to increase junior apprentice wages comes with hidden costs and represents an overall increase of up to 50% for employers,” O’Dwyer said.

“We need to take into account other factors such as TAFE training and the time required to attend them, tools and travel expenses, and loss of productivity from tradesmen teaching an apprentice on a one-on-one basis.

To fill the gap left by apprentices, Australia will have to import qualified tradespeople from overseas, O’Dwyer claims.

“This increase will present another unnecessary financial challenge for the majority of business owners at a time when they can least afford it, not to mention putting the employment of existing junior apprentices in jeopardy.”

For a full summary of the FWC decision, click here.