Report also uncovers widespread exploitation of young workers in Australia
Young workers across Australia are being underpaid at an alarming rate, according to a new report, which uncovered widespread exploitation of young workers in the country.
The Melbourne Law School has released the final report of its Fair Day's Work project, which surveyed 2,814 workers aged between 18 and 30 to identify the scope of underpayment among young workers.
It found that 33% of the respondents were underpaid, receiving only $15 or less, much lower than the current $24.95 minimum wage rate.
The survey affirmed the alarming rate at which young workers are underpaid, the report read.
Underpayment remains one of the most pervasive issues confronting Australian labour law. In this context, young persons are a group especially vulnerable to workplace exploitation.
Other forms of exploitation
In addition to being underpaid, the report found that young workers are also subject to other forms of workplace exploitation such as:
Required to complete additional work outside their usual responsibilities without pay (43%)
Forbidden to take breaks that they were entitled to (36%)
Had timesheet hours reduced by their employer (35%)
Not paid for work during a trial period (34%)
Not paid superannuation (24%)
Forced to return some or all of their pay to their employer (8%)
Young workers' lack of knowledge of their entitlements, low rates of union membership, precarious employment arrangements, and limited leverage to negotiate working conditions each contribute to their susceptibility to mistreatment by those for whom they work, the report read.
It also noted that other indicators of exploitation include: transgender status, disability, non-permanent and precarious working arrangements, non-permanent residency, and a native language other than English.
Sectors where non-compliance with labour laws and exploitation of younger workers were most frequent included:
Electricity, gas, water and waste services
Manufacturing
Mining
Transport, postal and warehousing
Public administration and safety
Information media and telecommunications
Accommodation and food services
Retail trade
Education and training
Reporting to authorities
The Fair Work Ombudsman (FWO) has described young workers as often vulnerable because they are new to the workforce, lack experience, and have limited knowledge of industrial relations, according to the report.
The FWO has a help page for young workers and students who may be seeking information about their rights and protections, and where they can potentially get assistance in resolving workplace issues.
But the report found that there is a reluctance among people aged 15 to 19 to seek assistance from the FWO or the Fair Work Commission.
Only a third (33.7%) of the respondents said they sought help about a pay issue, with just 20% of them seeking assistance from the FWO and the FWC.
Recommendations
According to the researchers, their findings can be addressed through a combination of law reform, targeted resourcing, and strategic enforcement. It recommended the following actions:
Compliance measures directed toward poorly performing industries
Regulatory strategy with reference to serious noncompliance
Addressing requirements to pay for work items, specifically for mid-sized businesses
Equitable loaded rates for junior employees
Promoting resources for assistance, especially the FWO
Further exploration of data science and digital tools
https://www.hcamag.com/au/specialisation/employee-engagement/alarming-report-finds-a-third-of-young-workers-underpaid/542668
