A study of 253 apprentices by AMWU showed that the union’s case to boost the first year wage to above half the adults’ trade rate would add no more than 2.53 per cent to the wage bill for apprentices, with the total increase to manufacturing employers’ overall expenses would be just 0.7 per cent.
The study findings were presented to a Fair Work Commission wage case led by the AMWU, as witnesses at the hearing told of the struggle some have in trying to survive on pay well below the minimum wage as little as $7.80 an hour for first-years.
Sally Taylor, head of research unit, AMWU says, “Our survey asked apprentice members what concerned them and they told us stories of real hardship. It’s low wages, travel costs and not enough workplace instruction, advice or opportunity to practice new skills. Apprentices don’t want to be used as cheap labour.”
Commissioners were told some apprentices could not afford to pay accommodation when doing block release training in another town or city.
Nixon Apple, economist, AMWU says, “We would suggest to the Commission that it is hard to envisage a realistic scenario where the AMWU proposed changes represent more than a three per cent weighted average increase in the apprentice wages bill of manufacturing employers.”
The AMWU’s format claim for a junior apprentice with a Year 10 school standard is a 19 per cent pay increase, from $7.80 per hour to $9.29 per hour.
Apple says that if the inquiry decided not to grant the union claim it would ‘further entrench the negative perception’ of apprenticeships in manufacturing.
“Such perceptions are considered by both business and union leaders as a major impediment to the future success of the industry,” concludes Apple.
The Commissioners have heard all evidence from unions and employers and have adjourned to consider their decision which is expected to be delivered in the next few months.
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