Why this win matters
Young workers in retail, fast food and pharmacy until now had been told that once they turn 18, they are adults in every part of life, except on payday. They could vote, drive, buy alcohol, and take on adult responsibilities, but at work they have still been paid junior rates simply because of their age.
That is what made the SDA’s Adult Age = Adult Wage case so important, and why the recent decision by the Fair Work Commission is such a significant win. The Commission has agreed with the SDA’s case to abolish junior rates for 18, 19 and 20-year-olds in the retail, fast food and pharmacy awards. This means young adults in these industries can no longer be paid less simply because they are younger.
This win was hard-fought. It came after a long campaign led by SDA members who stood up and made it clear that if you’re an adult, you should be paid like one.
How did we get here?
The SDA has been campaigning to remove junior rates for over a decade, and in 2014 we won the full adult rate for 20 year olds covered by the Retail Award. A range of factors, including the COVID pandemic, meant delays in further progress.
Then we launched another case in the Fair Work Commission in 2024, arguing that there is no fair reason for an adult worker doing the same job as someone over 21 to receive only a percentage of the adult rate. For too long, workers aged 20 were generally paid 90 per cent of the award rate, 19-year-olds 80 per cent and 18-year-olds 70 per cent, despite facing the same bills, rent, petrol prices and cost of living pressures as every other adult.
The win is especially important because of just how many workers it affects. Retail, fast food and pharmacy employ more than 1.5 million Australians, and a disproportionate number are under 21. If workers are covered by the relevant awards, or by an SDA-negotiated Enterprise Agreement that reflects those minimum standards, this decision will deliver real pay rises. The Commission has ruled that junior rates for workers aged 18 to 20 with six months’ service will be phased out over the next four years, and the SDA has made clear it will continue arguing for the full effect of the decision to be applied as quickly as possible.
How much more will 18-20 year olds be paid?
This decision will mean real pay rises for young workers. If you’re covered by the General Retail Industry Award, Fast Food Industry Award, or Pharmacy Industry Award, this is how your base rates will change once you’ve completed six months’ service and move onto the full adult rate of pay:
Younger workers made the case
This campaign mattered because it was built on the real experiences of young workers. Throughout the case, SDA members shared evidence of their experiences about what junior rates mean in real life.
An 18-year-old fast food SDA member said: “I have the same responsibilities and same financial pressures as 20-year-olds. I also need to save for a house, buy food and pay for rent, but I’m still being paid less than 21+ year olds for the same amount of work, so I have to work twice as much to live.”
Another young worker said: “Being old enough to work means having more responsibilities, which requires a level of pay that can make sure those responsibilities can be accomplished.”
These are the voices that helped cut through. They made clear that junior rates are not an irrelevant issue, but rather a real pay cut to young adults already carrying adult responsibilities.
Employers tried to have their say, and they were proved wrong
The case also exposed the attitude of employer lobby groups that fought to keep these lower rates in place. Employer witnesses were quoted claiming that younger workers are less capable, less independent and more likely to panic or make mistakes. One employer witness claimed workers under 21 “never identify a fake money note” in the same way as older workers, while another said it was “incredibly uncommon” for junior employees to work independently or without supervision.
But anyone who has worked in retail, fast food or pharmacy knows how wrong that is. Many have years of experience by the time they turn 18.
Many open stores, close stores, train co-workers and carry significant responsibility on shift. The Commission’s decision is a rejection of the idea that adult workers should be treated as worth less simply because of their age.
SDA National Secretary Gerard Dwyer described the outcome as a landmark moment. “It may take longer than we would have liked, but the principle has been established that no longer will 18 year olds be treated as second class citizens. Their work is as valuable as anyone else’s and before too long they will be paid accordingly.”
What happens next?
There is still more work to do. In its decision, the Commission ruled for these changes to be phased in over four years. The Commission is considering this timeline for how these changes will be implemented, and the SDA will continue representing young workers through that process. Members on SDA-negotiated Enterprise Agreements will receive further advice about how the decision affects them. The job now is to make sure this win is implemented properly, as quickly as possible, and in a way that delivers the full benefit to workers.
This is the proposed timeline set by the Fair Work Commission. But as any changes come through, SDA members will be the first to know.
Wins happen when members stand together
Most of all, this win belongs to the members who campaigned for it. It belongs to the young workers who told their stories, to those who put their names to witness statements, to everyone who shared the campaign, signed up, spoke to co-workers and backed the union’s case. The Adult Age = Adult Wage campaign has always been grounded in a simple idea: if you are an adult, you deserve an adult wage. Because of SDA members, that principle has now been won, and young workers across retail, fast food and pharmacy will be better off for it.