In a bold move to reshape wage structures, Australian Unions are throwing their support behind an initiative aimed at abolishing junior pay rates for younger workers. This effort, spearheaded by the Shop, Distributive and Allied Employees Association (SDA), has been formally presented to the Fair Work Commission. The primary goal is to ensure that workers aged 18 and above in sectors such as retail, fast food, and pharmacies receive full adult wages.

Currently, young employees under the age of 21, working within these industries, are not eligible for adult-level compensation. Instead, their pay is determined by a decreasing scale, which unions argue fails to align with the rising cost-of-living expenses that these young workers face.

Under the existing wage framework, employees under the age of 20 receive only 90 percent of the standard adult award rate. This percentage drops further for 19-year-olds, who are compensated at just 80 percent of the adult rate. This proposed change seeks to bring much-needed financial relief and fairness to these younger workers.

They are paid lower wages on a sliding scale which unions say is out of touch with the cost-of-living pressures confronting young workers.

Workers under 20 are paid 90 per cent of the adult award rate, while 19-year-olds are paid 80 per cent of the award rate.

Employees who are 18 get just 70 per cent of the full award rates in retail, fast food and pharmacies.

ACTU President Michele O’Neil said employer groups have got it wrong when they claim a change will cost young workers their jobs.

“If you’re 18, you’re legally an adult. You can vote. You can drive. You can work the late shift. But in retail and fast food, you’re still paid like a kid,” O’Neil said.

“That pay gap isn’t small. An 18-year-old needs 50 plus hours a week to earn what an adult makes in 38.

“The bills don’t get reduced because you’re younger. The rent doesn’t care about your birthday.

“The SDA – the union for retail and fast-food workers – has asked the Fair Work Commission to fix this.

“Once you’re legally an adult, you should be paid the adult wage. It’s straightforward and fair.”

A case starts in the Fair Work Commission today.