Today’s decision by the Fair Work Commission (FWC) on apprentice rates of pay will threaten and undermine the capacity of many employers to take on apprentices, Group Training Australia (GTA) said today.

GTA, the national peak body representing the network of over 150 Group Training Organisations (GTOs) and the largest network employing apprentices and trainees, said the decision would add significantly to employer costs.

From 1 January 2014, the rates for first year apprentices who have completed Year 12 will be 55% of the adult tradesman rate. The second year rate for an apprentice who has completed Year 12 will be 65%.

“At a time when employers are already facing a difficult business environment and the scaling back of some employment incentives for apprentices, the Commission’s decision will be a major setback,” said the Chief Executive of GTA, Jim Barron.

“While the living standards of apprentices has long been a concern for group training, we have consistently argued that any additional increase in apprentice pay should be borne by government, and not by employers.

“This decision puts the added cost burden of taking on apprentices squarely, and unfairly, on the shoulders of employers,” Barron said.

“GTOs are all about providing maximum opportunities to as many young Australians wanting to do an apprenticeship as possible, and this decision will deny many of them that opportunity,” he said.