Unions, employers clash over proposed tribunal for workers reclaiming funds lost to wage theft
One in five young Australians are paid below the minimum wage for their age, with those in insecure work disproportionately impacted, according to a new report.
Analysis by the Australian Council of Trade Unions of ABS data revealed that 19% of workers under the age of 25 are paid less than the legal minimum rate of pay.
"Wage theft is a hidden epidemic that is worsening people's cost-of-living pressures, and young workers are bearing the brunt of it," said Sally McManus, ACTU secretary, in a statement.
ACTU's analysis also found that 30% of 18-year-old workers in casual work are also paid at least $1.50 an hour less than the applicable junior rate, leading to underpayments of $1,560 annually for someone working 20 hours a week.
"That money should be in the bank accounts of young Australians, not in the pockets of bosses," McManus said.
The findings come in the wake of recent legislation in Australia that criminalises wage theft, or the intentional act of underpaying an employee.
The government also increased the civil penalty amounts for underpayment for both individuals and organisations guilty of committing wage theft.
"The Albanese Government made it easier for wage theft victims to seek justice, but unions recognise there's more to be done," McManus said.
ACTU is seeking the establishment of a new tribunal that will make it easier for workers to reclaim funds lost to wage theft – a move strongly opposed by employers.
Innes Willox, chief executive of the Australian Industry Group, said the plan would be "another stick to beat employers with."
"We don't need another avenue for unions to drag employers into costly litigation. We need to see if the recently introduced legislative changes work," Willox said in a statement.
