The way in which adult apprentice wages are supposed to be calculated remains unclear, creating a potential liability for builders, Australian builders say.

Master Builders Australia, the peak body for the building and construction industry, today lodged an application asking Fair Work Australia to clarify adult apprentice wages under the Modern Award

Mr Wilhelm Harnisch, CEO of Master Builders Australia said: “Like many aspects of the hastily drafted Modern Award, the way in which adult apprentice wages are supposed to be calculated remains unclear. This creates a potential liability for builders.”

“The litigation Master Builders has launched focuses on adult apprentice wages, which were introduced into the general on-site building and construction sector on a national basis for the first time with the commencement of the Modern Award.

“This will lead to significant labour cost increases particularly in economic downturns. Master Builders considers it vital that Fair Work Australia clarifies adult wages in a manner which takes into account the effect of cost pressures on apprenticeship commencements.”

This is important litigation that Master Builders has commenced with Fair Work Australia to clarify apprentice regulation under the main Modern Award for the building and construction sector, the Building and Construction General On-Site Award 2010.

“This issue is not confined to adult apprenticeships. For example, the rate to which casual loadings are supposed to be applied is basically undefined under the Modern Award, while the application of weekend and overtime penalty rates is also unclear.

“In a Modern Award with more than 60 potentially applicable allowances which may or may not form part of an employee’s basic wage, is a significant regulatory burden and can only act as deterrent to the up skilling of the work force.”