Increasing apprentice pay could damage industry, NECA says

Increasing electrical apprentice pay rates would have a damaging impact on the industry and result in fewer employers taking on new apprentices, the National Electrical and Communications Association (NECA) has said.

NECA made the comments in response to a report released by the Electrical Trades Union (ETU) and the University of Sydney’s Workplace Research Centre.

“The ETU’s campaign to substantially increase wages for apprentices in the electrical and communication industry represents the most important test for industry in decades,” said James Tinslay, CEO of NECA.

“The campaign is part of a concerted effort by unions to increase wages and conditions for apprentices irrespective of an employer’s capacity to pay and is part of the Modern Awards Review 2012, soon to be before the Fair Work Commission.”

Tinslay said that union claims could see the award wage more than double, which would be “devastating” for the industry. He said many employers have above-award wages and conditions, including informal arrangements to reward better workers.

“Over recent months the electrical industry has faced significant pressures with many smaller and medium firms struggling to make ends meet,” Tinslay said.

“A substantial increase across the board in apprentice wages as advocated by unions will adversely impact on apprentice numbers and lead to another boom and bust cycle of apprenticeship intakes with apprentices only being taken on when business conditions are thriving. This will in turn perpetuate skills shortages in the electrical trades, which have been an issue in recent years.”