A proposal by the Construction, Forestry, Mining and Energy Union to increase the wages of first and second year apprentices would threaten as many as 12,000 construction jobs, according to a study conducted by Master Builders Australia (MBA).

The MBA concluded that the proposed first year apprentice training base wage 33 per cent increase and second year base wage by 18.3 per cent increase would have drastic consequences.

A Centre for International Economics study commissioned by Master Builders Australia and the Housing Industry Association said that the increases would make it more attractive to employ fully qualified tradespeople and reduce demand for apprentices.

Wilhelm Harnisch, Chief Executive of Master Builders Australia said the union’s proposal is a significant threat to the apprenticeship system and jobs for young Australians.

“It comes at a time when the Government is putting in place measures to create jobs for young Australians, such as the Kickstart apprenticeship bonus for the building and construction industry and National Jobs,” Mr Harnisch said.