Apprentices earn less than McDonald’s workers, study shows

Who earns more: a hard-working electrical apprentice or an unskilled McDonald’s worker? In many cases, being able to flip a burger will earn you more money than learning a trade.

These are some of the findings of a report produced by the University of Sydney’s Workplace Research Centre. The report, which was released at the Electrical Trades Union’s (ETU’s) national apprentice conference in Sydney, shows that electrical apprentice award rates are only slightly higher than welfare payments and fall mostly below the Henderson Poverty Line.

Not only is low pay affecting current apprentices, it’s also deterring others from undertaking an electrical apprenticeship. Financial pressures are also impacting on apprenticeship completion rates.

“The current system is from the 1950s, when apprentices were 15 years old and lived at home with mum and dad,” said ETU Assistant National Secretary Allen Hicks. “It has failed to address the fact that many people who want to enter trades in 2013 are aged in their twenties and thirties, and often have children and mortgages.”

Hicks said the current system also fails to take into account that many apprentices are independent adults who have completed year 12 and hold vocational education and training qualifications.

“Low pay rates are putting many apprentices below the poverty line, which this report has confirmed is a crucial tipping point impacting on the take-up and completion of apprenticeships,” Hicks said.

“If it’s hard for a 17-year-old apprentice to survive, imagine what it is like for a 35-year-old with a wife and kids. It’s no surprise we are failing to entice more Australians into these vital skill areas.”

“Financial incentives often become the tipping point which encourage young people not to take up a trade,” the report said.

“The prevalence of financial resource constraints associated with undertaking an adult apprenticeship makes it unattractive and difficult to commence and complete apprenticeship training.

“The wages and conditions of electrical apprentices are a critical factor in the recruitment and retention of apprentices, and apprentices are critical for the future skill base of Australia’s economy.”

Hicks said that with Fair Work Australia beginning hearings as part of its Modern Award Review Process, this report is an important step in identifying how retention rates can be substantially improved.

The full report is available here.