Industry groups say a union call for Fair Work Australia to lift apprentice pay rates by as much as 70 per cent will deter employers from hiring apprentices, rather than attract more workers.
The Australia Council of Trade Unions launched a case to increase apprentices' minimum wages at the Fair Work Commission in Sydney today, appealing to FWA to lift the "grossly low" pay rates of apprentices Australia-wide.
ACTU Secretary David Oliver says current apprenticeship wage structures are decades old.
"The pay rates don't reflect the reality that many apprentices are adults and have adult responsibilities like kids and a mortgage," he told AAP.
"The wages are currently less than the minimum wage and sometimes only slightly higher than the Newstart allowance.
"They don't provide enough money for apprentices to survive."
Mr Oliver says more apprentices are dropping out of their training because of low wages.
"When you can get $7.60 an hour as an apprentice, or $11 an hour for flipping burgers, the dropout rate is pretty understandable," Mr Oliver said.
"We have employers complaining about apprentices not completing their courses but many apprentices can't because they're simply not paid enough."
Mr Oliver says unions want increased pay for all apprentices and for those over 20 to be paid the same rate as the lowest adult classification in the relevant award.
"In the long term this is an investment in Australia's skills base which will deliver major benefits for industry," he said.
Last week, the Electrical Trades Union released research showing many apprentices were beginning their training at an older age and were burdened with greater financial responsibilities.
Just 8.4 per cent of electrical apprentices were older than 25 in 1996 but this had jumped to 26.1 per cent in 2006, according to the research.
ETU national secretary Peter Tighe said many older trainees were battling to pay rent, bills and groceries, whereas apprentices in the past had traditionally lived at home with the help of their parents after leaving school aged about 15.
The Australian Industry Group says it's completely opposed to the wages claim because it would deter employers from hiring apprentices.
"We think that it is completely unsustainable and there's a risk existing apprentices could lose their apprenticeships," AIG Group chief executive, Innes Willox said.
He said a high proportion of apprentices were paid above award rates.
"Also, the nature of an apprenticeship is such that you earn low rates because of the amount of time spent off the job while at TAFE or college," he said.
Mr Willox warned that apprentice numbers have "decreased significantly" in the last year because of tough economic factors in industries such as manufacturing.
"Increasing the wage rate by 70 per cent is not going to fix that problem, it just makes it worse."
The peak body representing Australia's electrical industry, the National Electrical and Communications Association, warned of the damaging impact a large increase in apprentice pay rates would have on the sector.
NECA chief executive James Tinslay said many small and medium-sized firms were struggling to make ends meet while facing significant external pressures from uncertain economic conditions.
Mr Tinslay said a substantial increase wages would lead to apprentices only being taken on when business conditions are thriving, leading to the development of a boom-bust cycle.
“This will in turn perpetuate skills shortages in the electrical trades which have been an issue in recent years," he said.
“Unfounded claims of underpayment harms the reputation of electrical apprenticeships when in reality they lead to rewarding and well paid lifelong careers.”
