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Young Workers
Home Campaigns Young Workers Resources

Fair pay for young workers

05 October 2006

Usdaw has launched a campaign to have the adult rate of the National Minimum Wage (NMW) paid at 18 after its own survey uncovered alarming evidence of the plight of young workers.

The survey looked into the experiences of the union's young members aged 18-21 and found depressing evidence to back up the Government's own figures.

"More and more young adult workers are being dragged into the lower pay band as employers seek to offset annual rises for older workers," said general secretary John Hannett.

"According to Labour Force Survey figures, in 2001 9 per cent of 18-21 year olds earned less than the adult rate of the NMW. By 2005 the proportion had increased to 16 per cent - covering nearly 300,000 young people.

"The NMW gives employers the ability to pay a lower rate of pay to young workers under the age of 22 - encouraging them to specifically take on young people for low-paid, low-skilled jobs. But most retail work requires little formal training, and young people can be fully productive members of the workforce after very little time. So there is no justification for paying these young workers less than the full adult rate.

"On 1 October the adult rate of the NMW is increasing to £5.35 an hour, and the 30p increase is very welcome to millions of low-paid workers. Yet the youth rate is only increasing by 20p an hour to £4.45 - making the difference between the adult and youth rates even greater, and increasing the financial incentive for employers to introduce lower youth rates. Already, over 25 per cent of retailers questioned by the British Retail Consortium have said that they will be bringing in youth rates to offset the rise in the adult rate.

"Worryingly, the age discrimination legislation which will also take effect on 1 October is more likely to compound the problem rather than help young workers. The regulations state that where employers do have age rates for young workers, they have to follow the same age bands as the minimum wage (i.e. 16-17 and 18-21). All such youth rates must be less than the NMW adult rate.

"So while Usdaw is determined to eliminate age rates by gradually decreasing the difference between the youth and adult rates of pay, the new age discrimination legislation threatens to force young people's pay back below the adult rate of the minimum wage.

"Many young people start their working lives in low-paid, low-skilled jobs. Yet whether they're working full-time, or in higher education and working part-time to support their studies, young people's experience of the world of work can be daunting.

"With little awareness of their rights at work, young people can find themselves pressured into working the shifts that no one else wants, into doing heavy lifting, or other dangerous work.

"It's also a well-known fact that younger members of staff are less likely to claim compensation from their employer for injuries or work-related stress. Usdaw operates in sectors where hundreds of thousands of young people are employed.

"We owe it to these workers to protect them and help them stand up for their rights. They are our sons and daughters and they deserve better in the 21st century."


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