Paying younger people more ‘will crush retailers’

    PIA AKERMAN
    The Australian
    March 22, 2014


RETAILERS have called for the federal government to fast track reform of the Fair Work Commission so they can fight a decision awarding 20-year-old retail workers the same pay as 21-year-olds.      

A full bench of the commission yesterday ruled that 20-year-olds should receive the full adult rate of pay instead of the 90 per cent currently offered, saying the evidence showed little difference in the duties and skills between the two age groups.      

The change, to be brought in over two years, amounts to an extra $1.80 an hour for part-time workers and $2.25 an hour for casual workers who have worked at a business for at least six months.

Australian Retailers Association executive director Russell Zimmerman said the peak body wanted to fight the ruling, saying the move would “crush” small businesses and increase youth employment.      

“I don’t believe that Fair Work have handled this correctly,” he said. “We know that youth unemployment is at its highest level in 11 years, and with the unions’ case to remove junior wage rates now successful, young Australians are going to really struggle to find employment and support themselves through their studies.”

National Retail Association chief executive Trevor Evans said the group sought legal advice on appeal options as the ruling was inconsistent with previous Fair Work judgments.

“It’s a disastrous decision not only for retailers but also for young retail workers,” he said.      

A spokeswoman for Employment Minister Eric Abetz declined to comment.

In the ruling, commission senior deputy president Alan Boulton said there was little evidence about the extra cost to employers, which was ultimately assessed as “moderate”.

“We are not persuaded that the provision of adult rates to 20-year-old retail employees will have a significant negative impact on business costs, nor on the viability of retail businesses,” he said. “We are not persuaded it will have a discernible impact on employment growth.”

Shop, Distributive and Allied Employees Association national secretary Joe de Bruyn said the union would now seek to extend full adult rates to 18- and 19-year-olds, who receive 70 and 80 per cent respectively.    

He described the impact on employers’ wage bills as “tiny”.      

“The righting of this injustice is just as historic as the introduction of equal pay was 40 years ago,” he said. “If you go to a supermarket and look up and down the registers, you’ll find an 18-year-old is doing the same work as a 20-year-old who is doing the same work as a 30-year old.”

Sebastian Fernandez, 22, gave evidence for the union at the hearing, describing how his responsibilities working at Kmart in Sydney had barely changed since he started at the age of 18 though his pay had increased slightly as he got older.

Mr Fernandez, who works casually while studying politics and journalism, yesterday said the ruling would make a difference to his younger colleagues.

“That’s an extra $10, $20 or even $30 a week depending on the hours they work,” he said.

“It gives a bit more breathing space.”

No landlord discounts their rents to young people based on their age, nor any merchant, nor any utility company. Young people have the same costs as anyone else if they have moved out of home. Why should they accept discounts on their pay when they are doing the same work?

Anyone who advocates the abolition of weekend penalty rates on the grounds of being anachronistic cannot argue their case convincingly if they do not also agree with the abolition of aged-based pay discounts. It's all a part of the same system.

bogarde73 wrote on Mar 22^nd, 2014 at 10:28am:



Yes, and good on them for doing so.

http://100percentpay.com.au/

bogarde73 wrote on Mar 22^nd, 2014 at 10:28am:

Why not? 18-year-olds ARE adults. 

I can't wait until this generation with its reinforced sense of entitlement faces a true adversity and finds no-one there to do everything for them while they stand around and wait for things to happen.


Jeez so they get less than an adult, so friggen what?


No wonder less and less people want to employ the young to do the traditional work of the young, entry level sh1t jobs for entry level sh1t job money.



They will have the resilience and tenacity of a poodle.

BigOl64 wrote on Mar 22^nd, 2014 at 10:52am:



Once again the ADF imposter has absolutely no idea what he's talking about.

There are 18 year olds working in fast food, retail, and hospitality who are managers.

They supervise older staff, and run the entire operation.

However, they aren't paid adult rates.

Pull your little head out of that Walter Mitty arse of yours, and take a look at what's happening in the real world.

greggerypeccary wrote on Mar 22^nd, 2014 at 2:40pm:




Never stated anything to the contrary cretin; you need to rely less on  bullsh1t and lies and just stick to what is written you idiot.


A manager / supervisor is NOT an entry level sh1t job you friggen loud mouthed f-wit



BTW if you have any evidence that I am lying about my service feel free to present it to the Feds, or shut your knob gobbling mouth, you lying civilian nobody, POS.

greggerypeccary wrote on Mar 22^nd, 2014 at 3:36pm:




Is english not your first language or are you just friggen retarded?



Surely your maccas 'management job' will start soon and you will get 70% of what an adult gets and now you're just whinging, but 70% is more than you deserve and chip fryer.   


Now run along little boy, you're making a fool of yourself and we are laughing AT you. Again