Australian apprentice minimum wages in the national system

• Alice Dunn, and others
• Fair Work Australia

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03 June 2011In examining the history of Australian apprentices, the paper finds that the term ‘Australian apprentices’ can encompass employees in a wide variety of occupations and training with differing qualifications. It finds however, that from a wage-setting perspective, wage arrangements still distinguish between what are ‘traditional trades’ employees (apprentices) from non traditional trades employees (trainees). The report thus distinguishes between these two groups.

In relation to apprentices, the paper finds that take up rates of apprenticeships have tended to increase over ten years to 2009, although attrition occurrences were higher than completions in the same time frame. In examining the 122 modern awards in the national system the paper finds that 46 contain rates of pay and provisions for apprentices, typically expressed as a percentage of the tradespersons rate. Provisions for competency-based wage and training progression for apprentices were also examined and it was found that competency-based training progression is facilitated by wage arrangements in some select modern awards in the national system. Findings from qualitative research into competency-based wage progression for apprentices indicated that its operation varied according to the level of cooperation and communication between the employer, apprentice and the registered training organisation. The application of competency-based wage progression arrangements differed among employer participants according to a range of factors, with the research indicating that accelerated progression through training and wage levels was greatly influenced by the employer participant’s assessment of performance in the workplace.

In respect of trainees the report finds that commencements in traineeships either increased or remained steady over the ten years to 2009. Completions overtook attrition occurrences in 2004 and the gap widened in the years to 2009. Trainees in the national system typically rely on the National Training Wage schedule for their wage rates which is attached to 100 of the 122 modern awards. The paper finds some modern awards set wages for trainees which are separate from the National Training Wage schedule and  some trainees who are trained under state developed qualifications may not have coverage under the National Training Wage schedule. The report also identifies an issue concerning changing relativities in the National Training Wage schedule due to the application of a historical adjustment method over time.

Authors: Alice Dunn, David Rozenbes, Kim Maltman, Elizabeth Leung, Alice Pung, Ben Waugh, Courtney Dixon, Tom Cagorski, Adam Linehan, Rani Tisseverasinghe.