Vulnerable Workers: Young People
Issue Date: - Thursday, 8 May 2008
West Australian research has found young people are often wide open to exploitation in the workplace.
Fair Employment Advocate Helen Creed said today she had found many instances where teenagers had been unfairly treated at work.
Launching a Discussion Paper titled "Vulnerable Workers: Young People" Ms Creed said the research was part of a program looking into the conditions and obstacles faced by vulnerable workers, in this instance the special problems faced by those in the 15 to 19 year old age bracket, a group with an increasing presence in the workforce.
The Fair Employment Advocate found casual and/or part time work is increasingly prevalent amongst school aged children and tertiary students.
The Australian Bureau of Statistics (ABS) indicated that 68 per cent of young people aged 15-19 years were working part time in 2003/04, compared to 28 percent in 1983/4. In Western Australia, recent figures indicated that the majority (56 per cent) of young people aged 15-19 years in the workforce are part time.
A snapshot of the youth labour market in Western Australia confirms that young people aged 15-19 years of age are predominantly employed in low skilled, part time or casual positions in the retail sector. They are usually combining employment with education, i.e. school, TAFE or university". (For further statistic detail refer to the full report.)
The study found young people are vulnerable because
- They often had less experience of the workplace and consequently a lower awareness of their employment rights and obligations.
- Their level of knowledge about pay and conditions put them at a distinct disadvantage when entering employment.
- They are predominately casual or part time employees with less job security, lower training opportunities.
- They have lower expectations about their treatment in the labour market.
The Discussion Paper was drawn from national and international sources, and was also a direct response to complaints lodged with the Fair Employment Advocate's complaints line and queries to the states Wageline.
The discussion paper looks at AWAs, job security, pay rates, trainees and apprentices, unpaid wages and overtime, sham contracts, trial work, bullying, working alone, safety and health, under age workers and working hours.
Report Summary
Rates of Pay
Research shows that some groups of young people are experiencing significant hardship resulting from an increased cost of living and relatively low rates of pay. For example, in 2003, Mission Australia told a Senate Inquiry that there are more than 145,000 young Australians, aged 15 to 24, living in poverty.
The low level of knowledge about pay and conditions places them at a distinct disadvantage when entering employment. It impacts on their capacity and power to bargain with employers, particularly if limited support is available to them. It also opens up the possibility of exploitation by employers.
The Fair Employment Advocate found the previous Federal Government's Work Choices legislation had exacerbated the disadvantages faced by young people as a vulnerable group, citing as an example.
A 17-year-old part time shop assistant engaged in a medium sized retail outlet was issued with an AWA as a condition of her employment and was told to sign and return it that evening.
Under the AWA, overtime and penalty rates were removed. The wage rate specified was $9.02 for all hours worked including weekends and public holidays.
The AWA removed annual leave loading and reduced meal breaks and minimum hours provisions. It also removed the employee's choice of superannuation fund.
The AWA also required the employee to provide 48 hours notice of any absences. Failure to provide the required notice was taken to mean that the employee has abandoned their position.
The newly elected Federal Government has stated pay rates and skill based classifcation structures will form parts of an awards retionalisation process by the Australian Industrial Relations Commission. This process may provide an opportunity to reconsider alternative models to the current remuneration arrangements for juniors.
Trainees and apprentices
The Fair Employment Advocate found some employers exploit trainees and use them as a source of cheap labour, often without providing exposure to the skills required to gain
Complaints received illustrated the issue.
A 20-year-old full time employee was being paid a ‘traineeship' wage by an employer of $10/hour. The employee was expected to pay for the training courses, and had not received any certificates despite being told the courses had been completed. Each time a certificate was completed and the employee discussed a full adult wage based on qualifications, the employer required him to start another ‘traineeship'.
A young apprentice had $25 per week deducted from his wages without consent, to pay for transport to and from work. The employer bought a vehicle to provide transport for the employee and the money was used for petrol. This occurred every week for a year.
Under the award the apprentice was entitled to be paid a travel allowance or have the transport provided for free.
Unpaid wages/overtime
The ACIRRT Young People at Work Survey found that one in seven young people in casual work had been asked to work unpaid overtime. Most respondents expressed a feeling of being "ripped off" at work and said they had nowhere to turn except to their boss. Nearly 20 per cent said they would just leave work, rather than confront the problem.
The FEA is aware of alleged instances where young people have been disadvantaged in relation to unpaid wages, as shown in the following examples.
A 15 year old employee worked as a trolley collector and was not paid for six weeks work. After asking the employer about the money, he was told that another employee had stolen the wages and neither he nor the other employees would be getting paid.
A young worker who provided a medical certificate to her employer was told it ‘wasn't enough' and she wouldn't be getting paid for sick leave. This young worker also worked four days unpaid overtime.
A trainee carer was required to attend compulsory meetings, which she was not paid for.
Independent contractors
The Department of Consumer and Employment Education regularly receives calls alleging that children and young people are being hired as independent contractors. Evidence suggests that many of these employment contracts are "sham arrangements" and are being used to exploit young workers.
Under proposed WA legislative reforms, persons who engage children (i.e. aged under 18 years of age) as independent contractors will be required to provide employment conditions "no less favourable" than those prescribed by the relevant State award.
Trial work
Some studies indicate that an expectation of unpaid trial work or training is widespread. A recent publication by the Workplace Ombudsman states that unpaid "trial periods" are generally unlawful.
A DOCEP & UWA research project found that students (37 per cent) were subjected to inappropriate working conditions such as extensive trial periods (up to two months).
The following FEA call illustrates this issue.
A young person seeking an apprenticeship in hairdressing undertook a one day unpaid trial with a hairdressing company. After the trial, she was asked to return to complete a further one week unpaid trial.
The young person said that 25 other young girls had undertaken a one day unpaid trial, and from that group, five girls were each doing a further one week unpaid trial. This equated to ten weeks of unpaid labour.
Under proposed WA legislative reforms, unpaid trial work will be limited to one day per calendar year.
Safety and health
Evidence suggests that young people are at higher risk of workplace injuries due to their lack of work experience and appreciation of potential risks, non-use of safety equipment, as well as inadequate training and supervision.
Incidents of young workers not receiving adequate on the job training or supervision are identified in a DOCEP and UWA Research Project. The survey revealed that 57 per cent of the respondents had not received OSH training in any of their jobs while 16 per cent had not been told how to identify hazards at work
In The First Step, WorkSafe WA identifies new and young people as a priority.
It states that all employees who are new to the job are at risk of injury, with young people aged 15 to 19 the most likely to be hurt. (For WA case studies refer full report).
Working alone
The following FEA complaints were received from young employees working on their own.
A 16 year old employee was left alone in a food shop, and was required to lock up at the end of the night. After informing the employer she was uncomfortable being left on her own with drunk patrons and large sums of money in the till, her employer said if she didn't like it she could leave.
Furthermore, the young employee was required to work on Sundays and late night trading and was not provided with the appropriate penalties or loadings.
When the employee questioned the pay, her employer responded by saying "if she didn't like her pay she could leave".
A 17 year old was required to work alone until 10pm. On one occasion she was abused by a drunken customer, and was concerned about a skate park next to the store, where ‘drunken teenagers' hang out. She approached the employer who refused to deal with the issue. On one occasion when the employee refused a shift because of a lack of transport to get home, the employer suggested she walk home at 10pm.
Underage workers
Under the Children and Community Services Act 2004, children generally need to be at least 15 years of age to be employed in part time, casual or holiday jobs.
If the child is aged 13 years and less than 15 years, they may, after providing a parent's written permission, be employed in number of different occupations provided certain requirements are met.
There have been a number of prosecutions for the illegal employment of children under 15 years. In the following cases, despite warnings to the employers concerned, breaches continued to occur.
In December 2007, two McDonalds franchisees were fined a combined total of $46,900 after pleading guilty to breaches under WA's Children and Community Services Act 2004.
Klepeach Pty Ltd was fined $33,200 for employing 21 children under the age of 15 years in 106 shifts of work outside the hours restricted by the Act, including finishing times up to 2.40am, and engaging 33 children without the written consent of their parents.
Hours of work
A study commissioned by the NSW Teachers Federation found that approximately half of all students from Years 10 - 12 work 10 or more hours per week. It also showed a clear relationship between the amount of hours worked (more than 10) and fatigue. This fatigue negatively impacts on school work, and creates conflict between work and study commitments.
A similar result was found in a DOCEP and UWA Research Project. School students in Years 10-12 worked 2-20 hours a week, with a small proportion working late at night.
Parents' concerns
As the examples indicate, young people and/or their parents (acting on their behalf) contact the FEA about a wide range of concerns. However, some parents or relatives who have contacted the FEA for advice are unable to act on it as their child does not wish to pursue the complaint.
The following two calls from parents illustrate this issue.
"The only thing stopping me having a go at the bloke is that my daughter enjoys working there and I think it is good for her (experience in the workplace
- not the remuneration) - and she doesn't want me to cause trouble…."
Another caller said that "her son doesn't want her to interfere and though there has been previous issues with unpaid overtime, he enjoys his job so he doesn't want to complain".
In conclusion the Fair Employment Advocate's Discussion paper looks at a range of other countries and policies and practices they have evolved for young workers (refer full report) and seeks further examination of whether
- The experiences and issues explored in the paper are indicative of young workers in Western Australia?
- How do the experiences and issues canvassed in the paper resonate with employers and employer groups?
- Are further protections needed for young workers? If so, what are the priority areas?
This is the third in a series of discussion papers by the FEA. As from May 2008 it is proposed the Office of the Fair Employment Advocate will be absorbed by other Government agencies, principally the Labour Relations Division of the Department of Consumer and Employment Protection, which would welcome your comments.
Further information
For further information please contact Wageline on 1300 655 266