Part-time Workers: Are casuals or permanents better paid?

By ACIRRT

The earnings gap between women part-time permanents and women part-time casuals could be as much as 10% according to research presented to the HILDA conference in Melbourne.

The loading attached to casual work is meant t compensate for the lack of long service leave, sick leave, paid annual leave and maternity leave. Researchers faced few barriers trying to evaluate the efficiency and equity impacts of casual loadings on a broader scale. There is a lack of data on the size and prevalence of the loading. Other research shows the range of loadings that can be attached to casual work within a single industry and how workplace practice can shape the impact of a loading.

John Buchanan draws a distinction between the real value of a loading and its stated value. Loadings are calculated on award rates, but many permanents are paid over the award. Also in the expanding labour hire industry, evidence suggests that casuals are hired and paid at the lower end of award classifications than permanent counterparts.

The new research, conducted by Ian Watson from ACIRRT, considers whether casual or permanent part-time status brings about wage variation within this sector of the labour market. The research finds that women casual workers earn about 10% less than women part-time workers.

Ian Watson (2005) The Earnings of Casual Employees: the Problem of Unobservables" Paper presented to HILDA Survey Research Conference University of Melbourne 28-29 September 2005)

(Thomson Workplace Intelligence; October 2005)