Apprenticeship programs benefit both apprentices and their employers. Apprentices get paid to learn skills and gain hands-on experience, while employers get to invest in future talent.
In spite of the win-win nature of apprenticeships, the wages they offer are not always commensurate with the work involved. This can be demotivating for apprentices struggling to make ends meet.
Fortunately, there are several ways to try and increase apprenticeship compensations, including negotiating higher wages, gaining additional qualifications, or leveraging union membership.
Apprenticeships offer an excellent career pathway to employment in various skilled trades. These paid programs combine classroom teaching with hands-on skill acquisition. The difficulty is that an apprentice’s wages are not always reflective of the hard work they put in. This article explores the ways and means of negotiating higher apprenticeship wages and suggests alternative pathways to high-paying jobs.
Apprenticeships combine classroom instruction with on-the-job training to prepare entry-level workers for successful careers in the trades. These programs cover trades like plumbing and electrical, technical fields like IT and engineering, and creative industries like graphic design and media production.
The best part about these programs is that apprentices can earn a wage while picking up skills and experience under the mentorship of an experienced professional. They also receive credits upon successful program completion.
The typical workweek of an apprentice lasts 30-40 hours so they have enough time to simultaneously attend a technical college, university, or vocational training program.
Despite these positives, apprenticeship wages rarely reflect the amount of work and responsibilities young workers take on. What’s even more frustrating is the wage disparity between apprentices and fully qualified workers. Add to that the pressures of inflation and rising living costs and it’s no wonder that apprentices frequently feel discouraged, even disillusioned with the system.
Perhaps that explains why apprenticeship completion rates are below 35%, as per the US Department of Labor.
The good news is there are several options available if you are tired of low wages as an apprentice. In this article, we explore the reasons behind the low wages for apprentices, your rights as an apprentice, and the steps you can take to navigate your way to better-paying positions.
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Why Do Apprentices Make Such Low Wages?
The average apprenticeship salary in the US is $19.05 per hour in 2024, which works out to $38,100 annually assuming a 40-hour workweek. For reference, the average wage for a US worker was $66,621.80 in 2023, according to Social Security Administration data.
The considerable disparity between the two figures comes down to multiple reasons:
Entry-Level Status: An apprenticeship joining a trade comes with little or no professional skills or experience. Employers see them as an investment in future talent. The understanding is that they will gain the necessary skills over time to justify a higher pay.
Lack of Full Productivity: Apprentices are typically not as productive as regular workers. As a result, employers may not be able to bill their clients for apprentice work at the same rate as their regular employers. That’s why their wages are lower.
Cost of Training: Employers have to invest material costs, equipment usage time, and manpower resources to train apprentices and give them the skills that merit regular employment and full pay. That investment is partially compensated by a lower wage.
Legal Wage Structures: The US has minimum wage laws specifically for apprentices, which tend to be lower than the minimum wage for regular workers. Employers are bound by these wage structures even though they don’t always reflect the work done by apprentices.
On the bright side, 90% of apprentices retain employment after completing the program and go on to earn an average starting salary of $80,000 per annum.
They also earn $300,000 more over their lifetime compared to apprentices who do not complete the program.
Understanding Your Rights as an Apprentice
Apprenticeships in the US are governed by specific labor laws and regulations designed to protect the interest of both the apprentice and the employer.
Minimum Wage Requirements: As already explained, apprentices are entitled to a minimum hourly wage set by the government. If your employer is paying you less than the minimum wage, you can report the issue to your labor union or relevant authority.
Apprenticeship Contract: This is a legally binding agreement between apprentice and employer that outlines the pay, working hours, job expectations, other conditions, and consequences for breach of contract. It can be used as a reference in the event of a dispute.
Perks and Benefits: Apprentices may be entitled to various benefits while on the job, depending on the jurisdiction, the industry, and the specific program. Benefits can include healthcare coverage, paid time off, public holidays, and sick leave.
Overtime Pay: Apprentices in certain industries and regions are entitled to receive overtime pay for hours worked beyond the standard workweek. This is subject to program guidelines and applicable laws and may not apply to all apprenticeship programs.
Besides these, apprentices also enjoy all commonsense rights guaranteed to US workers, including the right to a safe and healthy work environment and protection from discrimination.
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Strategies to Improve Your Wage Situation as an Apprentice
Trade apprenticeships can be demanding, both physically and mentally. They call for a combination of technical knowledge acquisition, hands-on work, and the need to improve skills while working under tight deadlines constantly.
Performing well under such conditions can be especially hard if you’re demotivated for not being adequately compensated.
With that in mind, here are five strategies that can help you dig your way out of a low-paying apprenticeship.
1. Negotiate Higher Wages With Your Employer
Although asking for a pay raise can be a daunting prospect, it is a legitimate option if you believe you are being paid too low as an apprentice.
Here’s how you can approach your employer:
Prepare Your Case: Start by quantifying your achievements as an apprentice and showing how fast you are improving your skills while being a reliable employee. You can reasonably argue for better pay as long as you can demonstrate increased competency.
Ask for a Performance Review: They monitor an apprentice’s progress, identify areas for improvement, and provide targeted feedback. Performance reviews are a good opportunity to discuss a pay raise by linking them with achievement milestones.
Be Realistic: Although a pay raise is always worth discussing, you must understand they are not always possible. That can be due to government regulations or other factors like a company’s financial health, budget constraints, and labor market dynamics.
Negotiating higher wages can also be tough because of macroeconomic factors like recessions and instability caused by geopolitical events.
2. Seek Additional Qualifications
The best way to increase your earning potential is by investing in further education, training, or industry-specific certifications. Acquiring additional qualifications can make you a more valuable asset to your employer and position you for a higher-paying apprenticeship role.
Short-Term Online Courses: For those who aren’t keen to commit to a full-time college degree, online courses from platforms like Unmudl are the perfect alternative. These hands-on courses are designed by industry experts to help you gain the necessary skills for in-demand roles in as little as 10 weeks.
Industry-Specific Certifications: Many organizations offer specialized, industry-approved certifications that help you set yourself apart from other apprentices. Certifications validate your skills and are sometimes necessary for career advancement to higher-paying roles once you complete your apprenticeship.
Apprenticeship-to-Degree Programs: Some programs combine classroom instruction with hands-on training for a direct pathway to a college degree. Such programs are becoming increasingly popular in the US because of severe labor shortages in multiple domains. They are typically offered at universities and vocational schools.
3. Look for Alternative Apprenticeship Opportunities
Not all apprenticeship programs are created equal. Many offer better wages, benefits, and working conditions. Changing your employers or moving to another region can sometimes lead to better-paying opportunities.
Here’s what you can do to improve your prospects:
Research Pay Rates in Different Industries: Some industries like construction, plumbing, and electrical work typically offer higher apprenticeship wages compared to others like healthcare or hospitality. Changing industries might lead to the higher wages you are looking for, as long as you are ready to put in the extra work that comes with it.
Find Higher-Paying Regions: Apprenticeship wages can vary depending on the region. Areas that have a higher cost of living and greater demand for skilled labor usually pay higher wages to apprentices. An electrician apprentice in San Diego, California, can expect to earn significantly more than his counterpart working in Des Moines, Iowa, for instance.
Establish and Leverage Industry Networks: Join and participate actively in trade groups, online communities, or social media forums related to your field. Having an extensive industry network can help you find out about better-paying opportunities and make the shift to an employer that offers better wages and benefits.
4. Consider Freelancing or Side Jobs
There are several ways of supplementing your apprenticeship wages in the current economy as long as you have some skills to offer or time to spare.
Freelancing: Identify the skills you have to offer as a freelance writer, graphic designer, virtual assistant, or data entry operator. Try to find a niche area where you can stand out and attract more clients. Finally, create profiles on platforms like Upwork and Fiverr and take on freelancing jobs for extra income.
Part-Time Work: If freelancing doesn’t work for you, look for part-time work in the field in which you are experienced. If you are an apprentice electrician or plumber, for instance, you can take up small repair or installation jobs over the weekend. That will give you a chance to polish your skills while making a few extra bucks.
The Gig Economy: A gig economy is one that favors short-term contract or freelance work over permanent jobs. Platforms like Uber, TaskRabbit, and DoorDash can help generate a significant supplemental income. Gigs typically have no minimum hours and most do not require any academic qualifications.
5. Unionize or Pursue Collective Bargaining
If you are part of a trade union or association like the AFL, CIO, or Teamsters, you may be able to negotiate better wages as an apprentice through collective bargaining. Many trade unions in the US have stellar records of getting higher wages and better working conditions for apprentices.
Union Membership: Most trade industries in the US are unionized, which means the union can speak and act on behalf of all its members. They also provide legal and financial support for apprentices engaged in disputes with their employers.
Collective Bargaining: It’s a process where apprentices and their chosen trade union representatives negotiate for better wages, working conditions, and other benefits with employers. The result is often a written agreement that outlines the new terms of employment.
Union membership and collective bargaining are not without significant downsides in many instances. They can lead to adversarial relationships with management and workplace tension. In some cases, they can impact an apprentice’s prospects of future employment and merit-based promotions.
Explore Alternative Career Pathways
Even though apprenticeship programs are a great way to gain industry-relevant skills and experience, they are by no means the only career pathway available to you.
If you’re thoroughly dissatisfied with the pay or career progress in your current apprenticeship, there are other options you can consider.
Here are your most relevant options:
Vocational Schools: Also known as trade schools, they offer focused training on specific job skills that are in high demand. Although you won’t be paid anything while undergoing vocational training (which can last from a few months to two years), they may lead to better-paying jobs and a faster path to employment.
Paid Internships and Entry-Level Jobs: These are positions that offer some pay but do not require much by way of formal education or prior experience. Paid internships and entry-level jobs can be part-time or full-time and usually include on-the-job training. They often lead to full-time employment and competitive wages.
Entrepreneurship: Probably the fastest way out of a low-wage apprenticeship is starting your own business, provided you have the necessary skills, drive, and a way to raise enough money to get started. Many apprentices in trades like plumbing, construction, and carpentry eventually end up setting up their own businesses after gaining enough experience.
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