Master Electricians criticises ACTU’s plan to double apprentice wages

Master Electricians Australia has criticised ACTU President Ged Kearney’s call to double apprentice wages, claiming that it would “destroy the apprenticeship system” and end training opportunities for young Australians.

Jason O’Dwyer, Master Electricians Australia’s General Manager for Workplace Relations, said the ACTU’s apprentice wage test case with Fair Work Australia would make hiring and training apprentices “simply unaffordable” for contractors. Apprentices are generally employed by small-scale contractors, he said, who would not be able to afford the increased wages, leading to fewer apprentices being hired.

“Like the ACTU, we are concerned about trades shortages and training drop-out rates, but we don’t believe in hiking the cost to small businesses is the answer,” said O’Dwyer.

He said the resources sector will not create enough apprenticeships to ease the skills shortage, as it does not provide the variety of work required to ensure apprentices achieve the competencies they need to complete an apprenticeship.

“The nursery for the majority of apprentices is the small electrical contractors with up to 30 staff where they have multiple service streams and the apprentice can gain the required experience and competency to become fully qualified and licensed electricians,” O’Dwyer said.

He said that the proposed wage increase would make apprenticeships unviable for smaller operators who already subsidise apprenticeship costs such as tools, TAFE time, uniforms and safety equipment.

“In an environment of significantly higher wages for apprentices, many businesses will come to the view that that money is better spent hiring more experienced workers instead,” he said.

At existing pay rates, apprentices do not become profitable for two and a half years, said O’Dwyer. He claimed that increased wages would make employing an apprentice more difficult and costly. Master Electricians Australia is calling for a Productivity Commission inquiry into apprenticeship cost and funding structure instead of a wage increase.