Unions are on the prowl for higher pay for workers under 21. Will the Federal Government sign up for this ‘feel good’ clever play for young people’s standard of living and their votes? How will this affect the economy?

Unions want higher pay for under-21 workers and it’s going to be interesting to see if the Federal Government signs up for this ‘feel good’ clever play for young people’s standard of living and their votes.

The core of Anthony Albanese’s success (and that of Labor party groups around the states) hasn’t just been the implosion of the Coalition as it grasps with issues such as climate change and immigration. And it’s not just because the Coalition has a leadership talent shortfall, at a time when Teal candidates have shown them what a lot of their former supporters want.

No, there has also been a cunning plan hatched up by Labor and the unions to give the majority of voters i.e. employees what they want. Important things to real people (who don’t employ anyone) are falling interest rates, tax cuts, low unemployment and niceties that other people pay for, such as supporting work-from-home and perceived action on climate change demands.

While I’d like to call this the Roman equivalent of “bread and circuses” to keep the masses happy, employers and small business owners might feel that Labor is feeding them to the lions! The facts are what Labor’s offering deeply affects people’s lives.

That’s why Labor owning these needs of ordinary voters is a clever political strategy that won’t be undermined by the Coalition finding a leader of Howard’s or Menzies’ legendary stature in the minds of voters.

No, only an economy going backwards creating higher jobless rates, higher inflation and interest rates, with a blowout budget deficit and public debt, will rattle voters and Labor’s grip on political power at a federal level.

The Daily Telegraph’s Elidah Sproul-Mellis reports that

young shelf-stackers and ‘fry cooks’ could be in for a significant pay rise if their union is successful in its push to uplift fast food, retail and pharmacy

wages for under-21s.”

The union in question is the Shop, Distributive and Allied Employees’ Association (SDA) and it has

asked the Fair Work Commission to abolish ‘junior’ wages for workers aged between 18 and 21, who can be paid less than the ‘adult’ award rate.

What is the current situation?

1. 18-year-olds are paid 70% of the award.
2. 19-year olds get 80%.
3. 20-year olds get 90%.

No change is wanted for under-18 employees, but at 18 the unions think employees are trained and are coping with a high cost of living, especially if they don’t live at home.

While The Telegraph looked at a 19-year old who supervised 18 staff but was paid only 80% of the award (which underlines how dumb some employers are), minority cases like this don’t build the case for increasing wages across the board for young workers, without regard to their actual competence and the employer’s ability to pay.

Sure, you can hit big supermarkets and international food franchises with higher wages for young staff. While it might hit profits and share prices, the impact on smaller businesses of a blanket increase in pay for under-21s needs to be assessed economically and fairly for those who have to find the money i.e. employers.

While the Government’s position on this play for young workers/voters isn’t clear, historically the Albanese Government, especially under former Minister for Employment and Workplace Relations, Tony Burke, simply rubber stamped whatever the unions wanted.

This is cleaver politics and good economics for young workers. Not until the economy goes pear shape and AI and robots start replacing workers, will Labor be challenged by a Coalition that currently looks totally out of form. This means small business employers need to brace for higher wages for young workers, and they need to become innovative or else they might find themselves going out of business!

The union case goes to the Fair Work Commission today.