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Nothing to stop young workers being paid above minimum : Comments
By Alex Philipatos, published 7/4/2014Youth wages acknowledge age can be a relatively good proxy for gaining workforce skills and experience, discipline, maturity and attitude.
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I am an electrician, and when I became an apprentice, wages were very low and apprenticeships easy to acquire. Every small company had more apprentices than tradesmen as they were considered cheap labour to do the more menial and repetitive tasks. Most employers took it for granted that the boys were not going to be of much use until they reached halfway through their second year of training. But that was alright because the low wages made it economic to hire them and time would sort out the winners from the losers.
This all changed with the election of the Whitlam government. The unions saw a chance to expand their union membership by supporting the case for much higher wages for young apprentices. This they hoped, would show young people the benefits of joining a union. The Labor government supported it because they wanted the youth vote.
Employers, especially the small contractors screamed that if youth wages were increased 200% then that would make apprentices uneconomic to hire. But the governments and unions refused to budge on their vote and membership buying idea. What happened was exactly what we are seeing today. First, the small contractors, who were the main ones who hired apprentices, stopped hiring them. Eventually, even the large companies stopped hiring apprentices.
Calls by the government for businesses to show some community spirit and hire young people at high wages fell on deaf ears. So, what did our stupid governments do then? What they always do when their stupid policies fail. They created a department to manage failure.
Suddenly we see the creation of quasi official "apprentice employment agencies" which hire apprentices out to business. These agencies only take the boys with the highest HSC marks. Apprentice numbers have subsequently fallen to below replacement of retiring members. Ain't socialism grand?