Industrial Relations
This assignment addresses on the advantages of having youth wages increment in Australia, and if the regime of this state should retain the wage arrangements which mainly targets the younger generation under the age of 21. It will evaluate on advantages of hiring young people in Australia and why the government should assist young people get increment and be recognized in the employment cycle.
All over the world the issue of youth wages increment is being addressed. Australia has traditionally set the wage of the youth relatively at a lower rate compared to those of adults. Over the years there have been wrangles as to how the youth wages issues should be addressed. However the process have taken much longer to be fully implemented, but over the last few years Australia have formulated a conducive system that addresses this issues.
Commissioning of the youth wage
Commissioning of the youth wage has led to development of a very unique and complex structure which commissioned the youth wage; these commissions addressed three extensive forms of wage packages to be deployed in the employment of young people. Only 52% of youth under the age of 21 are the only ones legible to junior wage employment. This is because most of the employees shy away from employing juniors as they say they have no work experience and so they require more resources on training and this cost the organizations lot of revenue as they reason.
This is also apply to the number of trainees who are juniors under the age of 21 under the category only 13% apply, this also sees a 1% of those that seek the employment as trainees or apprentice 11%. This is the cause of the high unemployment rate among many juniors below the age of 25 in Australia this is according to the ABS data collection on the youth unemployment. This analysis showed that the youth are either dependants or have separate income units.
This has brewed up mixed up reaction among most employees as they consider the importance of the existence of junior wage rates when they contemplate on employing of the youth. The importance of junior wages have been highlighted by very many researcher and non governmental bodies, recently a survey done by (CAI) Confederation of Australian Industry that is currently known as (ACCI) Australian Chamber of Commerce and Industry also advocated for these acknowledgement in the year 1990.
From these factors it is stated that 65% of the employers confessed that with consideration of the low wages on the juniors, they consider this a very important aspect while contemplating of hiring a junior or an adult, this is because they come with less requirements. Some of the benefits that most employers stated were mostly no social security funds, insurance, hefty allowances and no retirement benefits, however if they are employed on a permanent basis as most are employed as casual laborers, those requirement come at a later date.
Youth Wages Rates
Youth wages rates are very economical to the employers and most are nowadays generally advocating for the employment of the youth rather than adults. A recent survey showed that there are more important issues why it more preference to the employment of the youth other than the employment of adult apart from wage based factors. Some of the major point which was highlighted in these surveys includes attitude and competency, as the key element when selecting employees.
According also to the survey by the NSW Board of Vocational Education and Training, on their 500 companies research complied that, majority of the employers in these institution insinuated that reduction of the youth wages down below the current margin, will not be a significant factor in their employment choice. They mostly concluded that, the most influential factor, that would best suit the selection of employees for entry level positions would mostly be accessed by enthusiasm and the basic willingness for work which harbors basic literacy and numeracy, also considered by others were communication, presentation and manifestation and interpersonal abilities.
According to the research conducted by CIA also factors which were deemed to be of much value than the wages angle were, cost of training due to the advancement of technology, cross-elasticity’s demand and this was perceived through the analysis of the literature of Hamermesh (1993) which suggest that, there is high elasticity’s in the youth than older employees in own wage, this is viewed to be partially compatible with empirical evidence of the demand for lees skilled employees is deemed to be more elastic. From this point of view it is said that empirical evidence proposes that wage increment is mostly going to have bigger impact on the youth than in the case of adults.
Conclusion
From the findings of the research we can conclude from the evidence discussed herein that, there is great need to keep youth wages competitive compared to those of the adults8. These will secure them a place in the pricing of the work force which is believed that it alienate them. Another issue is because there are no clear potential benefits in the reduction of youth wages, so the increment in the youth wages may bring forth desire for the employment of the youth by the employers.
Bibliography
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OECD. 2010. “Australia Should Intervene Quickly To Avert A Major Rise In Youth Unemployment.” Organization for Economic Co-operation and Development, Web.
Patty, Anna. 2009. “Crisis For Teens In Earning, Learning.” The Sydney Morning Herald, Web.
Sappey Bergh. Industrial relations in Australia: Work and work places. Sydney: Pearson Education, 1994.