News Release

APPRENTICE WAGE RISE GOOD NEWS FOR SKILLS GROWTH

26 May 2006

SA Unions welcomes the Industrial Relations Commissions' decision to increase the minimum wages for mature age apprentices.

SA Unions Secretary, Janet Giles says the IRC has ruled that apprentices aged 21 or older who are covered by state awards will receive the minimum adult wage.

"This is a big step forward for older apprentices", Ms Giles says.

"Older workers are more likely to have families to support and mortgages to pay - and that can prove really tough on apprentice wages".

Apprentices are paid a percentage of the adult full time minimum wage of $12.75 an hour ($484.40 a week).  It is 1st year 42%, 2nd year 55%, 3rd year 75%, 4th year 88%.  The IRC's decision means that an apprentice aged 21 or older automatically receives 100% of the minimum adult wage.

"Lifting the base pay rate for older apprentices will hopefully make it easier for people to enter into apprenticeships and successfully complete their qualifications."

"This is an important boost to South Australia's ability to address its skills shortage.  Better pay means a greater likelihood of attracting workers to skilled trades."

"Mature workers wanting a career change may now be able to afford to do so."

"It also illustrates the importance of our strong, state based industrial system."

"Our IRC has produced a well-considered decision which responds to our state's unique needs.  Sadly, its decision applies only to workers covered by state awards.  The federal system doesn't take South Australia's circumstances into account.  Apprentices employed under federal awards aren't eligible for this improvement."

SA Unions will appear before the full bench of the IRC today (Friday) to oppose Business SA's attempt to limit access to the new minimum wage rate by restricting the awards it applies to, and altering the definition of apprentices.  Ms Giles says such a tactic is extremely short sighted and not in the best interests of industry or workers.

"Industry's skill shortages won't be addressed until workers receive wages they are capable of living on," she says.