Showing posts with label wages. Show all posts
Showing posts with label wages. Show all posts

Thursday 13 April 2017

Fair Work Commission 2017 Minimum Wage Review - heads workers lose, tails workers lose?


Fair Work Commission (FWC) website 10 April 2017:       

Every year an Expert Panel of the Fair Work Commission must review modern award minimum wages, and set a national minimum wage order for employees not covered by enterprise agreements or modern awards.
Each national minimum wage order made in an annual wage review comes into operation on 1 July in the next financial year, and continues in operation until the next national minimum wage order comes into operation.

The minimum wage hourly rate currently stands at $17.70 – and yes, we all probably know of an adult who is not even receiving this.

The  FWC Annual Wage Review 2016-17 (C2017/l) is being conducted by:
JUSTICE ROSS, PRESIDENT
VICE PRESIDENT HATCHER
DEPUTY PRESIDENT ASBURY
COMMISSIONER HAMPTON
MR COLE
PROFESSOR RICHARDSON
MR GIBBS,
MELBOURNE, 7 APRIL 2017

The 2017 final minimum wage decision will be handed down in sometime in June coming into effect on 1 July.

Here is the preliminary hearing dealing with transitional instruments and relevant to annual wage reviews and existing arrangements for employees with disability DECISION.

Shorter version of this decision is:

go away little low-skilled people and don’t expect a minimum wage rise larger than that which we gave you in 2013, 2014, 2015 or 2016 - if you are lucky it will be somewhere between 41-50 cents an hour for an estimated 196,300 low-paid workers;

as for workers with a significant disability - too hard, we’ll pass the buck.

Of course if Justice Iain Ross, Adam Hatcher et al listen to the business sector this year then these 196,300 workers will only receive about a 20 cents an hour increase.

Tossing a silver coin in the air right now……….

Turnbull Government dragging its heels on legislation to protect vulnerable workers?


The Age, 6 April 2017:

The peak body for the $150 billion franchise sector has launched an intense behind-the-scenes lobbying campaign to convince MPs to water down Turnbull government legislation designed to prevent future worker exploitation scandals.

Spearheaded by former Liberal minister Bruce Billson, the Franchise Council of Australia is targeting the government, opposition and crossbenchers as it seeks to pressure Employment Minister Michaelia Cash into changing course on the bill.

It has also directed its members - which include 7-Eleven, Pizza Hut, Caltex and other companies accused of underpaying their workers - to bombard MPs with calls and letters about the Fair Work Amendment (Protecting Vulnerable Workers) Bill.

The campaign comes as petrol giant United Petroleum became the latest company to be embroiled in an exploitation scandal, with the workplace regulator blasting it for rampant underpayment of workers across its franchise network. United Petroleum is not listed as a FCA member.

Mr Billson personally pressed the franchisor case with visits, calls and texts to MPs during the most recent parliamentary sitting fortnight in Canberra.

And in emails that have begun arriving in MP's inboxes in recent days, franchisors argue it is "unreasonable" to single out the franchising sector.

"The real issue here is that the risk of worker underpayment exists across the economy," the missives read.

The government's bill was introduced into Parliament last month but subsequently disappeared from the agenda, fuelling speculation from the Opposition that the council's campaign was succeeding.

However Senator Cash said the government remained "firmly committed to this policy"…..

The Franchise Council originally sought to kill off the bill entirely, warning it would lead to unavoidable unintended consequences.

It is now arguing for extensive amendments and is particularly concerned about the world-first "joint liability" provisions, claiming they will negatively impact investment, growth and employment.

It also wants courts and regulators to be explicitly forced to take a businesses size and resources into account, and further clarity about what "reasonable steps" actually means….

Franchises employ close to 500,000 people across 73,000 outlets across Australia and contribute up to 10 per cent of Australia's GDP.

The Age, 7 April 2017:

Shocking cases of wage fraud in the big brands of 7-ElevenDomino'sCaltex and United Petroleum, ricochet across the country, prompting all sides of politics to promise new legislation to rein in systemic wage fraud.

Or so we thought.

In the weeks before the election the Turnbull government promised to change the law to make franchisors jointly responsible with their franchisees for workplace abuses if they have significant control or influence on the franchisee……

But the sector decided to have none of that.

Enter Bruce Billson, the former small business minister who became chairman of the franchise lobby group just before the last election. His role as chairman of the Franchise Council of Australia has been to tell anyone who will listen that the proposed laws are too draconian.

It was a smart move by the FCA. In one newspaper article Billson described the new laws as "a media-inspired regulatory misadventure to introduce unprecedented laws that fit up the franchisor for the Fair Work Act breaches of their franchisees where they have had no actual involvement".

The article worked itself up into a fervour, arguing that the laws represent an "existential threat" to the successful franchise model of enterprise.

The reality is convenience store giant 7-Eleven became embroiled in a systemic wage fraud scandal in August 2015. It shocked the nation. The business model was flawed and head office agreed to repay exploited workers. More franchisors should follow its lead.

The Protecting Vulnerable Workers Bill was designed to do just that. It was introduced on March 1, with the legislation listed on March 20.

But it quietly disappeared from the program last week with two other Fair Work Bills listed in its place, without explanation.

When it will be re-listed is anyone's guess but it is unlikely to be the next sitting as it will be dominated by the federal budget.

According to the Australian Parliament website the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017: "amends the Fair Work Act 2009 to: increase maximum civil penalties for certain serious contraventions of the Act; hold franchisors and holding companies responsible for certain contraventions of the Act by their franchisees or subsidiaries where they knew or ought reasonably to have known of the contraventions and failed to take reasonable steps to prevent them; clarify the prohibition on employers unreasonably requiring their employees to make payments in relation to the performance of work; provide the Fair Work Ombudsman (FWO) with evidence-gathering powers similar to those available to corporate regulators such as the Australian Securities and Investment Commission and the Australian Competition and Consumer Commission; and prohibit the hindering or obstructing of the FWO and or an inspector in the performance or his or her functions or powers, or the giving of false or misleading information or documents.”

On 23 March 2017 this bill was referred to the Senate Education and Employment Legislation Committee.

Submissions were invited but none are listed on the Inquiry’s webpage to date. Public hearings are being held in Canberra on Wednesday 12 April and in Sydney on Thursday 13 April 2017.

Those giving evidence before the Senate  inquiry are:

Australian Chamber of Commerce and Industry (ACCI)
Council of Small Business Australia (COSBOA)
Franchise Council of Australia
National Retailers Association
The Australian Industry Group (AIG)
McDonalds Australia
Department of Employment
Fair Work Ombudsman
Fair Work Commission
West Justice (Western Community Legal Centre)
Prof. Andrew Stewart
Gerard de Valence
Australian Council of Trade Unions (ACTU)
Shop, Distributive and Allied Employees’ Association (SDA)
One other to be announced
           
The Committee is due to report to Parliament on 9 May 2017.

Friday 31 March 2017

Turnbull Government opposes rise in minimum wage because 9 out of 10 Australian workers on a low wage are NOT from highest income households


The Daily Telegraph, 30 March 2017:
Read the full article here.

Other statistics the Turnbull Government helpfully offered up to the Fair Work Commission in its submission of 27 March 2017:

* More than 50% of low income workers are in the bottom 1-4 percentiles of the 1-10 percentile range of household incomes;
* 20% of all female workers and 15.5% of all male workers are low-paid;
* 26.7% of all low-paid women and 30.3 % of all low-paid men were in the bottom two deciles of household incomes (ie. these households are likely to have an average disposable income of less than $300 to no more than $375 per week);
* 24.7% of all low-paid workers with a partner are the only breadwinner in the relationship; and
* 46.9% of all low-paid workers have children living at home, with 35.9% having dependent children ranging in age between under 1 year and 17 years of age.

Based on the figures cited in the government’s submission (much of it derived from 2012-2014 data) it appears Liberal and Nationals members of parliament and senators are quite content with the fact that so many of their fellow Australians live in either absolute income poverty or relative income poverty, while they enjoy parliamentary base incomes in excess of $195,000 per annum plus allowances and entitlements.

Sunday 12 March 2017

Next time a member of the Turnbull Government asks you, your family or community to tighten belts for the good of the country remember this......


Those people elected to govern the country and who decide national economic and social policies (which can make or break ordinary individuals and families) enter into to a class of salary earners whose members enjoy an above average lifestyle whilst in 'employment'.

A financial outcome which tends to cushion them from the harshest economic facts of life.

In 1901 the average annual wage of a person living in Australia was £46 [Australian Bureau of Statistics A Snapshot of Australia, 1901]. That represented less than £1 per week.

The Australian Parliament was established by the UK Australian Constitution Act 1900. Section 48 of the Constitution determined that all members of the Parliament would receive an ‘allowance’ of 400 pounds per annum, until the Parliament decided otherwise [Remuneration Tribunal, A Brief History Of Parliamentary Remuneration, 2012]. This averaged out at over £7 per week.
While in that same year a member of federal parliament’s base annual pay was $199,040 plus allowances & entitlements or est. $3,827.69 take home pay each week for each of the 224 federal parliamentarians – more if the member sits on a committee/s, is a parliamentary secretary, assistant minister, minister or one of a smaller number of shadow ministers. Plus a generous electoral allowance and free travel, as well as both a subsidised car and subsidised away from home accommodation & food 
Parliamentarians’ base salaries have increased 19 times in the last 20 years. Can the average worker say that about his or her hourly rate?
Remember this the next time the Turnbull Government asks you, your family or community to tighten belts for the good of the country. Just as importantly remember this when you vote in 2018-19.

Australian Fair Work Commission: Who's Who - a member cheat sheet for 2017 and other matters


The Fair Work Commission (FWC), formerly known as Fair Work Australia, is the Australian industrial relations tribunal created by the Fair Work Act 2009. It replaced the Australian Industrial Relations Commission (AIRC) and a number of AIRC members became part of the FWC organisational structure.

As part of a four-yearly review of modern awards the Full Bench of the Fair Work Commission handed down a decision on Sunday penalty rates for workers in hospitality and retail sectors on 23 February 2017.

For the purposes of this review the Full Bench was composed of:

Justice Iain Ross, President
Vice President Joseph Catanzariti
Deputy President Ingrid Asbury
Commissioner Peter Hampton
Commissioner Tim Lee

In 2016 the Queensland Labor Government made a submission to the FWC modern awards review opposing cuts to penalty rates, along with the ACT Labor Government, the Victorian Labor Government and South Australian Labor Government

As did the federal parliamentary Labor Party (The Loyal Opposition) as well as the state parliamentary Labor Party in Tasmania , New South Wales and Western Australia.

The Turnbull Federal Coalition Government was notable by its absence in the list of submissions. As was the Coalition state governments in Tasmania, New South Wales and Western Australia.


A full list of submissions, including those by unions and industry/employer groups can be found here.

As this probably will not be the last time the Fair Work Commission decides to extend its brief to cutting the hourly rates of ordinary workers, a closer look at who is making these decisions is merited.

This is as much as I could glean to date concerning the current makeup of the Commission in March 2017:

Fair Work Commission President

Justice Iain Ross AO  – Labor Government appointee 2012 to 2024

Vice Presidents

Joseph Catanzariti  - Labor Government appointee 2013 to 2024
Adam Hatcher SC  - Labor Government appointee 2013 to 2028

Deputy Presidents

Jennifer Acton – Labor Government appointee 1992 and then Labor Government appointee 2009 to 2020
Lea Drake – Labor Government appointee 1994 and then Labor Government appointee 2009 to 2018
Reginald Hamilton - Coalition Government appointee 2001 and then Labor Government appointee 2009 to 2022
Matthew O'Callaghan - Coalition Government appointee 2001 and then Labor Government appointee 2009 to 2021[resigned February, leaving April 2017]
Jonathan Hamberger - Coalition Government appointee 2004 then Labor Government appointee 2009 to 2024
Peter Sams AM – Labor Government appointee 2012 to 2021
Anna Booth – Labor Government appointee 2012 to 2021
Ms Ingrid Asbury - Labor appointee 2013 to 2028
Ms Anne Gooley - Labor appointee 2013 to 2018
Mr Val Gostencnik – Labor appointee 2013 to 2028
Jeffery Lawrence – Labor appointee 2013 to 2017
John Kovacic – Labor Government appointee 2013 to 2022
Geoffrey Bull – Coalition Government appointee 2015 to 2022
Melanie Binet – Coalition Government appointee 2016 to 2034
W. Richard Clancy - Coalition Government appointee 2016 to 2036
Lyndall Dean - Coalition Government appointee 2016 to 2037

Commissioners

Paula Spencer - Coalition Government appointee 2001 then Labor Government appointee 2009 to 2029
Bruce Williams – Coalition Government appointee 2006 to 2023
Anna Cribb - Labor Government appointee 2009 to 2019
Ian Cambridge -
Labor Government appointee 2010 to 2033
John Ryan -
Labor Government appointee 2010 to 2017
Peter Hampton -
Labor Government appointee 2010 to 2025
Julian Roe -
Labor Government appointee 2010 to 2017
Michelle Bissett
– Labor Government appointee 2010 to 2022
Chris Simpson – Labor Government appointee 2010 to 2034
Tim Lee – Labor Government appointee 2011 to 2029
Susan Booth – Labor Government appointee 2011 to 2022
Donna McKenna Labor Government appointee 2012 to 2025
Bernie Riordan -
Labor Government appointee 2012 to 2027
David Gregory -
Labor Government appointee 2012 to 2019
Nickolas  Wilson - Labor Government appointee 2013 to 2025
Leigh Johns OAM - Labor Government appointee 2013 to 2034
Tony Saunders - Coalition Government appointee 2015 to 2039
Tanya Cirkovic - Coalition Government appointee 2015 to 2028
Christopher Platt - Coalition Government appointee 2015 to 2026
Katrina Harper-Greenwell - Coalition Government appointee 2016 to 2033
Jennifer Hunt - Coalition Government appointee 2016 to 2038

Additional members – can be found here.

Tuesday 7 March 2017

A Fair Day's Wages For A Fair Day's Work*: has an employment epoch finally come to an inglorious end?


Looking at the Australian employment market in 2016 and 2017 one has to ask if this country has entered the Era of Exploitation………

ABC News, 1 March 2017:

the Australian economy is currently growing at around 2 per cent per annum. That's about fast enough to keep the unemployment rate steady, but it's not fast enough to create lots of new jobs. To create jobs, it needs to grow at least 2.5 to 3 per cent per annum.

The economy isn't growing fast enough for a whole bunch of reasons, but the big picture is that we haven't been able to transition as smoothly as we would have liked from the mining boom, to an economy being driven by a number of different sectors.

The sectors of the economy that have enjoyed increased activity are healthcare, hospitality, and tourism. These sectors tend to be biased towards hiring part-time workers.

Nine2Three Employment Solutions in Sydney's Sutherland Shire specialises in placing candidates into part-time roles. Managing director, Kathryn MacMillan, say business is booming. Right now, she's placing job seekers into part-time roles including mining, tourism, retail, clerical and accounts-type roles, sales roles and business development.

Ms MacMillan explained to me that she's placing lots of mums re-entering the workforce, and people after just a few days of work a week. Part-time work can also be convenient for students, and for those returning to the workforce after an illness or injury.

You can't ignore, however, the hundreds of thousands of Australians over the past 12 months that have either lost their job, or would dearly like to work more (to help pay the mortgage, utility bills etc.).

We know, for instance, the economy shed 53,000 full-time positions in September last year. Another 44,800 full-time jobs disappeared in January.

It's really quite straight forward. The Australian economy is transitioning, and many workers are getting left behind.

Remember the kids' game, musical chairs? Everyone has a seat to start with. That was the mining boom. The music started playing during the financial crisis, and now that it's stopped, we've noticed quite a few chairs have been taken away. We're now seeing two or three people trying to squeeze onto the same chair in many cases!

Darren Coppin is the chief executive of Esher House. His company spits out all sorts of interest research. He told me recently that this big economic transition has also ignited a bit of a social change.

He explained to me that 30 years ago the man did most of the paid-for work (40 hours a week). Since then millions of women have entered the workforce. During the 1980s and 1990s both men and women were working more, and earning more (excluding the recession).

Recently, however, the economy's been unable to sustain those jobs.

Now, women tend to be working 25 hours a week, while men also work 25 hours a week (in trend terms). So, overall, the household is working more, but because both jobs may not be strictly full-time, the actual combined take-home pay at the end of the day is less.

So yes, you guessed it, overall we're working more, for less pay.

Record low wages growth is also rubbing salt into the wound.

Anecdotally I've met quite a lot of people who are doing their best to make the best of a bad situation.

Many couples with children, for instance, have decided to work nine-day fortnights. That means mum or dad takes one day off each week. That day's devoted to running errands, and, of course, child care... and cooking.

I spoke to a single mum last month who told me she felt quite isolated. She said she spends all of her waking hours working and looking after her child, with no time left over for friends, because the bills keep piling up (child care and rent being the ones that hurt).

While many Australians are working out how to get by, too many are really struggling.

I spoke to a few people last week who told me the decision by the Fair Work Commission to scrap Sunday penalty rate had been a kick in guts.

Mandy Carr, for example, a retail worker on Queensland's Gold Coast, had decided to return to work (post maternity leave) on the Sunday shift so her and her husband could get ahead financially.

She says the decision will cost her $100 each and every week.

There are too many Australians though that are angry... really angry.

They're upset because they'd desperately like to make a go of life. They want a home, and enough money on the side to give their kids opportunities in life. But they're being held back by a job that doesn't offer them enough in terms of hours and/or pay, and the cost of living keeps rising.

There's also the emotional toll that workers face with heightened job insecurity, combined with ever-increasing debt repayments.

The Reserve Bank governor told a Parliamentary Committee last week that the situation households face (having to cut back on spending because of rising costs and low wages) is "sobering".

The recognition of the problem is heartening. At this very moment though, recognising the problem is all we seem to be doing.

Low wages growth is at record breaking level and underemployment is endemic in Australia in this second decade of the 21st Century.

By December 2016 seasonally adjusted wages growth was 1.9 per cent December Quarter 2015 to December Quarter 2016, with growth in the private sector being lower still at 1.8 per cent.

Trend percentages are even more dismal.

In December 2016 the Cost Price Index (CPI) showed rises in the cost of food, non-alcoholic beverages, alcohol, tobacco, clothing, footwear, housing, furnishings, household equipment & services, recreation & culture, education, insurance and financial services – with CPI rises ranging from 1.8 per cent to 5.9 per cent December Quarter 2015 to December Quarter 2016.

According the Australian Bureau of Statistics Labour Force Statistics in  December 2016 there were seasonally adjusted an:

est. 739,600 people who were unemployed and looking for full-time work – an est. 18,100 more individuals than in December 2015;

est. 3,814,200 people who were working part-time but would prefer to be working full-time – an est. 126,600 more individuals than in December 2015; and

est. 212,500 unemployed people who were exclusively looking for part-time work in December 2016 – an fall of est. 1,100 individuals since December 2015.

In November 2016 there were seasonally adjusted an est. 1,099,400 underemployed individuals - usually working less than 35 hours per week for a wage which does not meet economic needs. That represents an underemployment rate of 8.6 per cent.

In January 2017 there were around 129,800 more people working part-time than there were a year ago and around 40,100 fewer people working full-time and, despite an alleged small growth in full-time jobs in December 2016, the trend unemployment rate still stood at 5.7 per cent for the ninth consecutive month.


Affecting the take home pay of more than 700,000 workers, with those who regularly work Sunday shifts being left between $29 and over $80 worse off every week.

Many of these workers are already employed in industry sectors and regions which often allow only limited opportunity for changing employers.

According to the Internet Vacancy Index (based on a count of online job advertisements newly lodged on three main job boards SEEK, CareerOne and Australian JobSearch) in January 2017 job vacancies decreased in the Northern Territory, south west Western Australia, western Victoria and regional New South Wales - with the NSW North Coast showing a twelve month decline of -2.6 per cent and three month moving average of 1,700 job on offer to suitable applicants.



The effect of statistics such as this on individuals, families and communities are amplified across rural and regional Australia where the job market is usually tighter than in metropolitan areas and, I suspect that many of us living in the NSW Northern Rivers region have friends or family members struggling with poverty-level incomes due to unemployment or underemployment.

* The saying A Fair Day's Wages For A Fair Day's Work appears to have entered the public arena in or about 1839.

Friday 24 February 2017

Will cuts to Sunday penalty rates become a textbook example of unintended consequences?


ABC News, 23 February 2017:

Let's start by calling a spade a spade. Sunday penalty rates have been cut by the Fair Work Commission. Not "equalised" or "brought in line" with Saturday rates. Cut.

Business, big and small, has been seeking this cut for years, saying Sunday penalties are a legacy of a bygone era where families went to church — one that's costing them a tidy sum.

They also argue it's a legacy that's been costing jobs, with many employers choosing not to open on Sundays, or to maintain just a skeleton staff (although ask yourself, just how many retailers, restaurants, cafes and bars are actually shut on Sunday?).

But the cuts to Sunday penalty rates could become a textbook example of unintended consequences, where a move supposed to increase employment instead hurts the economy and increases business failures and job losses.

Why? Because the hundreds of thousands of retail and hospitality workers affected by this decision are also customers.

What do you think happens when you cut someone's pay packet by as much as 25 per cent for their Sunday shifts?

(For a typical permanent retail worker on the award who always works Sunday shifts this will cut their annual pay by about $3,500).

They either have to work more, or they have to cut their spending to match their new, lower wage.

Given that unemployment is stubbornly high at 5.7 per cent, and underemployment is near record levels, it seems unlikely they'll actually be able to get more work to make up the lost pay — and, remember, these staff already work Sundays, so it's not like they'll benefit from any increase in jobs on that day.

According to the Australia Bureau of Statistics (ABS) an est. 850,300 people were employed in the accommodation and food industry sector in November 2016 as their main job and another est. 1.25 million people have their main job in the retail sector [ABS 6291.0.55.003 - Labour Force, Australia, Detailed, Quarterly, Nov 2016].

An est. 54.7 percent of female employees in the accommodation/food industry work part-time and an est. 45.3 per cent males do likewise. While in retail an est. 54.6 per cent of females and 45.3 per cent of males work part-time.

In accommodation/food businesses part time employees work for an average of 16.1 hours while in the retail trade part-time employees work for an average of 16.7 hours.

Underemployment appears to be highest in the food and hospitality sector, third highest in the retail sector and females highest in both sectors. [Workplace Gender Equality Agency, Gender composition of the workforce: by industry, April 2016]

Females with only one job were more likely to work on weekends - 73% compared to 68% for males.

These statistics tend to confirm that “hundreds of thousands” of single person and family households will be hit by cuts to Sunday penalty rates as set out in the Fair Work Commission’s 4 yearly review of modern awards – Penalty Rates Decision covering Hospitality, Fast Food, Retail and Pharmacy Awards and, I have no doubt that their loss of income will affect local economies to a significant degree.


Award Sunday Penalty Rate

Hospitality Award full-time and part-time employees: (no change for casuals) 175 per cent -> 150 per cent

Fast Food Award (Level 1 employees only)
Full-time and part-time employees: 150 per cent ->125 per cent
Casual employees: 175 per cent ->150 per cent

Retail Award Full-time and part-time employees: 200 per cent ->150 per cent
Casual employees: 200 per cent ->175 per cent

Pharmacy Award
(7.00 am – 9.00 pm only)
Full-time and part-time employees: 200 per cent ->150 per cent
Casual employees: 200 per cent ->175 per cent

Local and regional economies on the NSW North Coast - where often low levels of employment opportunity combined with the fact that few hospitality/food outlets in tourism-orientated towns and none of the big retail stores currently close on a Sunday anyway - suggest that this wages cut will be nothing more than a straight forward cost saving for local businesses, with no or very little additional full-time, part-time or casual employment eventuating.

That a backlash to the Fair Work Commission decision appears inevitable is indicated by this online poll active on the day the decision was published:



Tuesday 21 February 2017

Looking for work in 2017? Some advice on your rights from the experts


By and large businesses in the Northern Rivers region of New South Wales are fair to their employees.

However, there is no denying that there is an element amongst employers which attempts to take advantage of people desperate to find paid work and, under award rates, no payslips, wages not paid on time, deductions from wages for a little as dropping one small bottle of soft drink, unfair dismissal, are not unknown.

So it pays to know your rights upfront and this may help…….

Fair Work Ombudsman, media release, February 2017:
Fair Work Ombudsman out to smash myths relating to young workers
13 February 2017
The Fair Work Ombudsman is seeking to educate employees and business on the myths that are contributing to a concerning number of young workers being underpaid around Australia.
Fair Work Ombudsman Natalie James says too many people mistakenly believe that a range of workplace practices relating to young workers are OK when they are in fact unlawful.
“It’s time to address the myths that have achieved widespread levels of acceptance and are resulting in employers short-changing young workers around the country,” Ms James said. 
“Young workers make up about 16 per cent of the Australian workforce but account for a disproportionately high 25 per cent of requests for assistance to the agency. Last year 44% of the litigations we filed in court involved young workers.” 
“It is critical to raise awareness among employees and employers that they may be involved in serious contraventions of workplace laws by unwittingly continuing with practices that they believe are acceptable. 
“Young workers can be vulnerable in the workplace as they are often not fully aware of their rights or reluctant to complain if they think something is wrong. 
“We also come across too many employers who are short-changing young workers and when we contact them they say, ‘I just assumed what I was doing was OK’,” Ms James said. 
Ten common young worker myths the Fair Work Ombudsman encounters are:
MYTH 1: Paying low, flat rates of pay for all hours worked is OK if the worker agrees. 
FACT: Minimum lawful pay rates are mandatory. In many jobs, penalty rates must be paid for evening, weekend, public holiday and overtime work.

MYTH 2: Lengthy unpaid work trials are OK.
FACT: Unpaid trials are only OK for as long as needed to demonstrate the skills required for the job. Depending on the nature of the work, this could range from an hour to one shift.

MYTH 3: Employees don’t need to be paid for time spent opening and closing a store or for time spent attending meetings or training outside their paid work hours.
FACT: If a meeting or training is compulsory, then it is work. Employees must be paid for all hours they dedicate to work and this includes time spent opening or closing a store. For example, if an employee is required to be at work at 7.45am to prepare for an 8am store opening, they need to be paid from 7.45am.

MYTH 4: Employers can make deductions from an employee’s wages to cover losses arising from cash register discrepancies, breakages and customers who don’t pay.
FACT: Unauthorised deductions from an employee’s pay are unlawful. Deductions can be made only in very limited circumstances. 

MYTH 5: Employees are obliged to buy store produce such as clothing or food.
FACT: Employers cannot require staff to purchase store produce. This includes any items for which the worker may receive a staff discount. For example, an employer cannot require workers to purchase the particular clothing stocked in a retail outlet. 

MYTH 6: Unpaid internships are OK for all inexperienced young workers looking to get a foot in the door.
FACT: Internships can only be lawfully unpaid when they are a requirement of a course at an authorised educational or training institution.

MYTH 7: Employers can pay young workers as ‘trainees’ or ‘apprentices’ without lodging any formal paperwork.
FACT: Employers must negotiate and lodge a registered training contract for an employee in order to lawfully be able to pay trainee or apprentice rates. An employer cannot pay an employee trainee rates just because they are young or new to the job. 

MYTH 8: Paying employees with goods such as food or drink is OK.
FACT: Payment-in-kind is unlawful. Employees must be paid wages for all work performed.

MYTH 9: If a worker has an Australian Business Number (ABN) they are an independent contractor and minimum pay rates don’t apply.
FACT: Having an ABN does not automatically make a worker an independent contractor. Fair Work inspectors apply tests of fact and law to determine whether a worker’s correct classification is as an independent contractor or an employee. Whether an employer has labelled a worker as a contractor and required them to obtain an ABN may not be relevant.

MYTH 10: Pay slips aren’t mandatory – employers only need to give employees pay slips if they ask for them.
FACT: Employers must give all employees a pay slip within one working day of pay-day. Employers can give employees paper or electronic pay slips, such as a link sent via email. 

Ms James says that in 2017 her Agency will have a particular focus on proactively checking that employers of young workers are doing the right thing. 
“Young workers can be vulnerable, so we place high importance on checking and treat cases of their rights being contravened more seriously, which means we are more likely to pursue enforcement action,” Ms James said. 
Between July 2011 and June 2016, the Fair Work Ombudsman received more than 27,000 requests for assistance from young workers and recovered over $18 million for young workers who had been short-changed.
Employers and employees seeking assistance can visit www.fairwork.gov.au or contact the Fair Work Infoline on 13 13 94. An interpreter service is available by calling 13 14 50 and information on the website is translated into 27 different languages.
Resources available on the website include the Pay and Conditions Tool (PACT), which provides advice about pay, shift, leave and redundancy entitlements and an employer’s guide to employing young workers.
Online resources available for young workers include a guide for young workers, the ‘starting a new job’ online learning course and a range of helpful tips.
Follow Fair Work Ombudsman Natalie James on Twitter @NatJamesFWO , the Fair Work Ombudsman @fairwork_gov_au  or find us on Facebook www.facebook.com/fairwork.gov.au .
Sign up to receive the Fair Work Ombudsman’s media releases direct to your email inbox at www.fairwork.gov.au/mediareleases.


Awards

If you are not covered by an agreement, your minimum wages and conditions are likely to be set by a modern award

The modern award will deal with:

minimum wage rates
annual leave, and annual leave loading
other types of leave
hours of work
penalty rates, overtime and casual rates
allowances
consultation, and
many other minimum conditions.