Unions are pushing for multi-employer apprentice bargaining, applying under the Fair Work Act to compel eight major South Australian group-training organisations to negotiate a single pay deal. This would cover roughly 1000 plumbing and electrical apprentices. If successful, experts say the model could be rolled out nationally. Therefore, it could set a new benchmark for apprentice pay in Australia.

.The move comes amid growing concern that low apprentice pay in Australia is discouraging young people from entering the trades.

This has contributed to national shortages in plumbing and electrical roles. Advocates argue higher wages would help apprentices support themselves during training and improve completion rates. However, critics warn the proposal could add significant costs and place pressure on employers.

At the same time, government housing and infrastructure targets mean Australia will require tens of thousands of new trades workers over the next decade.

Ensuring that more apprentices start — and finish — their training is considered critical to meeting future demand

So, what’s behind the push — and what are the concerns?

What’s behind the move?

Many apprentices are currently struggling with low wages.

Most group-training organisations pay apprentices close to the award minimum of $15.67 per hour — below the national minimum wage of $24.95. These early rates reflect the training period, and many apprentices go on to earn strong wages once qualified, particularly in plumbing and electrical roles.

However, some argue that without higher wages during training, many potential apprentices may never enter the industry at all.

Rising living costs also mean some apprentices simply can’t afford the four years it takes to complete an apprenticeship without family support. Proponents believe higher pay would help more young people stay the course. In the final quarter of 2024, more young people quit apprenticeships than commenced them. During this period, more than 7,000 people abandoned their apprenticeships. This trend is contributing to ongoing staffing shortages across the construction sector.

Supporters of the changes say multi-employer bargaining could provide more consistency in wages, conditions and support across different training providers. That, they argue, could create a fairer system that attracts new entrants. It could also help Australia build the skilled workforce needed to deliver major construction, energy and housing projects.

What are the concerns?

Industry experts warn the change could increase costs by up to $100,000 per apprentice.
This could potentially threaten the viability of the sector.

Group-training organisations often rotate apprentices across multiple employers, giving them broad experience and support.

Experts warn the model could come under pressure if costs rise sharply

Some also fear more employers may shift to hiring apprentices directly.

This can lead to lower apprenticeship completion rates due to less structured mentorship and pastoral care. Direct employment may benefit some apprentices. However, many rely on the flexibility, guaranteed placements and wrap-around support offered by group-training organisations.

Still, many believe reform could deliver long-term benefits. Higher wages could make apprenticeships more appealing, helping young Australians support themselves while they train. With strong national demand for skilled workers, more people may be encouraged to pursue long-term careers in plumbing, electrical and construction roles. This could help strengthen the pipeline of future tradespeople. A more secure supply of skilled workers would also help employers meet project deadlines and support Australia’s broader economic growth.

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Article References

Marin-Guzman, D (4 November 2025) ‘Union push on apprentices could add $100k for each, bosses warn’, Financial Review, accessed 10 November 2025

Master Builders Of Australia (19 June 2025) ‘Apprentice completions reach decade highs but new apprentice numbers still too low’, Master Builders Of Australia, accessed 10 November 2025