5. Youth Wages

The CFMEU is committed to increasing employment opportunities for young Australians. In particular, we have consistently encouraged training opportunities in the industry, where young people may receive a discounted wage while they are receiving formal training that results in industry recognised qualifications.

The CFMEU strongly opposes discounted wages for young people in the absence of formal training, primarily on the grounds that it is blatantly discriminatory to pay a person a lower wage on no other basis than their age. We also argue that due to the physical nature of the work in the industry young workers are likely to be as productive, or even more productive, than older workers and should not be paid a lesser amount. The CFMEU has sought to advance this policy of non-discrimination in a variety of forums over more than a decade.

Most recently the CFMEU played a leading role in the Junior Rates Inquiry conducted by the Australian Industrial Relations Commission. Our submission to the Inquiry concluded, in part, that:

“The building industry has consistently been the highest employer of people in traditional apprenticeships (i.e. 3 or 4 year contracts of training) over the past ten years. Further, for the period 30th June 1995 to 1997, there were more apprentices and trainees in the building industry than in any other industry. Although there has been a reduction in commencements over recent years, wage rates have not been raised as a major issue by any industry party.

“The Construction and General Division firmly believes that discounted wage rates should only apply where there is a formal contract of training that results in industry recognised qualifications. In all other situations, the proper criteria should be that if the worker can perform the work required, then they should be paid the going rate set by an award or certified agreement irrespective of age.”

When the Australian Industrial Relations Commission sought proposals for non-discriminatory alternatives to junior rates the CFMEU submitted that junior rates should be removed from existing awards in the building and construction industries to be replaced by the competency based classification structure currently contained in Appendix S of the National Building And Construction Industry Award 1990.

The Inquiry concluded that the issue of junior rates should be investigated on an industry by industry basis. In relation to the construction industry the Inquiry stated that there was very little utility in the almost defunct junior rates classifications. A process of identifying problems of maintaining a reasonable youth share of available employment through the training contract classifications and other entry level options was recommended. Further comments from the Inquiry are included below.

“Both the CFMEU and the AFMEPKIU in their respective submissions about the construction and metals industries placed emphasis on the priority that should be given to training in the promotion of junior entry level employment in association with competency based classification of work and payments.

“Both unions have done much to foster the use of apprenticeships and training arrangements. Especially they have done so in response to the relative collapse of the apprenticeship system that occurred from 1990-1991.” (Junior Rates Inquiry, Australian Industrial Relations Commission, June 1999, Print R5300, p 187)

The Minister for Employment, Workplace Relations and Small Business, Mr. Reith, is a strong supporter of discriminatory youth wages. His Ministerial website biography states that:

“In August 1999 Mr. Reith secured the passage of legislation to protect youth wage rates and promote employment opportunities for young people.” (www.dwrsb.gov.au/ministers/reith)

Mr. Reith has made no secret of the fact that he would like to see youth wages introduced in the building industry. In a press release Mr. Reith stated that 6,000 jobs would be created in the industry if youth wages were introduced. He based this claim on “preliminary research” by his Department. (Press Release, 4/3/99, Peter Reith) The research on which this spurious claim is based has never been released and the CFMEU challenges Mr. Reith to disclose his evidence.

We suspect that the Department have merely calculated the amount of reduced wages for all current workers under 21 and presumed that employers would then use that money to employ additional youth labour. The presumption that this money would be invested in additional employment seems naïve, particularly when current construction industry profits before tax already stand at $292 million (seasonally adjusted, June 1999, construction industry company profits before tax, Ausstats)

United we bargain - Divided we beg.

Contact the National Office, Construction Division at:
Level 12, 276 Pitt Street, Sydney, NSW 2000
Ph: 02 8524 5800
Fax: 02 8524 5801
Email: queries@fed.cfmeu.asn.au

Postal address: PO Box Q235, Queen Victoria Building Post Office, Sydney NSW 1230.