Skilled Occupation List (SOL)

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1 Skilled List (SOL) Tracking Code: 5BDN9W Name Individual * John Hart Organisation Restaurant & Catering Australia What are the industry/industries and ANZSCO occupation/s that you or your organisation represents for the purposes of this submission? Industry Accommodation and Food Services The three dropdowns below accord with the ABS ANZSCO classification of occupations. Selections are required at the Group 2-digit level and at the Unit (4-digit) level, but can also be made down to the (6-digit) level depending on the occupation/s to which your submission relates. Additional occupations can be selected by way of the Add item button. For each occupation selected, please indicate whether your advice is to Include, Exclude, or is Neutral (other) with respect to the SOL. The rest of the form can be used to provide evidence/reasons to support your recommendations. Attachments can also be added after clicking the 'Submit' button. Item 1 Page 1 of 9

2 Group * Hospitality, Retail and Service Managers Unit * Cafe and Restaurant Managers Cafe or Restaurant Manager Summary advice for SOL * Include Exclude Neutral Item 2 Group * Hospitality Workers Unit * All Summary advice for SOL * Include Exclude Neutral Item 3 Group * Food Trades Workers Unit * Cooks Cook Page 2 of 9

3 Summary advice for SOL * Include Exclude Neutral Item 4 Group * Food Trades Workers Unit * Chefs Chef Summary advice for SOL * Include Exclude Neutral Are there any occupations that you represent where there is evidence of imbalances in the demand for and supply of skills in the medium-to-long term? * The Australian Government has set ambitious growth targets for the tourism industry under Tourism In order to achieve these targets, it is estimated that the total tourism labour force will need to increase to 638,000 by In the most recent State of the Industry Report 2014 it is estimated that tourism employment has increased by approximately 30,000 jobs to 543,600 jobs in , representing around 20 per cent of the required 152,000 new tourism jobs by The Service Skills Australia Tourism, Travel and Hospitality Environmental Scan 2014 highlights that strong domestic demand and a growing tourism base is expected to lead to phenomenal growth in employment in the café, restaurant and takeaway food sector over the next five years. The Department of Employment forecasts that employment growth in this sector alone will exceed any other in the Australian economy, with expected growth of 43,700 workers needed by 2018, or an increase of 8.5%. Page 3 of 9

4 The tourism and hospitality industry remains highly concerned over the shortage of skilled labour across the sector. R&CA's 2014 Industry Benchmarking Report found that 60.8% of businesses have vacancies, with 22.3% of businesses reporting extreme difficulty in finding staff. Chefs, Cooks and Managers ranked the most difficult positions to fill. This is supported by the Deloitte Access Economics Australian Tourism Labour Force Report 2011 which indicates the sector is currently experiencing a vacancy rate of approximately 9%, equivalent to 35,800 jobs. This vacancy rate is considerably higher than the national average of 2%. The number of vacant jobs in the sector is expected to increase to 56,000 by 2015 if no market intervention occurs. Of the 56,000 shortfall in jobs, it is estimated that 46% of these jobs will be skilled positions (25,760 workers), while the remaining 54% of job shortages (30,748 workers) will be for unskilled labour. The Deloitte Access Economics report highlights that Kitchenhands, Waiters, Café and Restaurant Managers and Chefs will be the most in-demand occupations within the sector by By 2015, demand for kitchenhands, waiters and café and restaurant managers is expected to account for approximately one-third of all demand for workers within the tourism sector. In terms of skilled workers, Chefs, Café and Restaurant Managers and Waiters are expected to experience the greatest shortfalls, representing 36% or 5,400 workers. Is there evidence of imbalances in the demand for and supply of skills in the medium-to-long term in non-metropolitan areas? If so, can you indicate in what part of Australia and the number in the occupation in over or undersupply. When determining the imbalances that occur in demand between metropolitan and regional areas, it is important to note that this is relative to the systemic labour shortages the industry has suffered over time. While regional destinations report greater difficulty in attracting staff, this is relative to chronic labour shortages the sector has experienced overall, with the difficulty in finding staff escalating from absolutely critical to nearly impossible In most regions. That being said, it is expected that shortages of skilled and non-skilled labour will continue to affect a majority of Australia's top tourism regions into the future, including non-metropolitan areas. Hospitality employers in regional locations report greater difficulty recruiting and retaining staff due to the seasonal nature of tourism, the remoteness of the destinations, as well as competition that exists with other sectors of the economy including mining. The state and regional summary prepared as part of the Deloitte Access Economics Australian Tourism Labour Force Report 2011 indicates: - vacancy rates are notably higher in the NT and ACT, and notably lower in TAS; - turnover rates are far higher in the NT and WA than other states; - recruitment difficulties are more prevalent in the NT and WA, though less prevalent in SA; - skills deficiencies are most prevalent in NT and WA; and Page 4 of 9

5 - retention difficulties are less prevalent in TAS, NSW and particularly SA. Despite these findings, Sydney and Melbourne are expected to experience the greatest demand for labour by 2015, equating to approximately 50% of all accumulated demand for tourism labour or 30,000 workers. However, based on the expected growth in the demand for labour and relative skilled labour shortages, Peterman (NT); Kakadu (NT); and Sydney (NSW) are expected to experience the proportionally greatest shortfall in skilled worked to This supports current data that suggests the Northern Territory; Rest of WA; and North and Inland NSW tourism regions are experiencing the most acute shortages in relative terms, whereas Melbourne and Port Philip Bay; NSW South Coast, Sydney and Surrounds; and Northern and Inland NSW are experiencing the largest number of total vacancies. Are there any occupations which require formal licensing or registration arrangements in order to practice/perform in this occupation? For example: Midwives are required to register with the nurses board in their state or territory Panelbeaters are required to be registered or certified with the state Motor Vehicle Repair Industry Authority The occupations of Café or Restaurant Manager, Chef, or Cook do not require workers to be registered or hold formal licenses. However, RCA believes food safety handling training should be mandatory in all states for workers involved in the preparation and handling of food in line with Standards and of the Food Standards Code, similar to the Responsible Service of Alcohol (RSA). Depending on the position and level of entry, most employers will seek evidence as to the experience and level of formal qualification achieved by the worker. The Restaurant Industry Award 2010 provides an indication of the skill/qualification level required for the most common positions found on the ANZSCO list. As for Café and Restaurant Managers, while a Certificate IV in Hospitality is desirable, these positions generally require a Responsible Service of Alcohol Certificate and/or Food Safety Supervisor Certificate. However, RCA believes it should be a mandatory requirement that all Restaurant Managers should take part in a Certified Professional Restaurateurs program (CPR). The certification program recognises the essential business management skills required to operate a restaurant. It defines these skills using National Competency Standards drawn from the National Hospitality Training Package. Page 5 of 9

6 Is it expected that your employment sector will be impacted by any medium-to-long term trends which will impact upon demand and/or supply (excluding costs associated with training, labour hire, and international sponsorship)? Please provide evidence (e.g. data source, policy document) which substantiates these claims. For example: New benchmarks for childcare centres mandate increased staff-to-child ratios and higher qualification standards for childcare workers. As mentioned, strong domestic demand and a growing tourism base is expected to lead to phenomenal growth in employment in café, restaurant and takeaway food sector over the next five years. As a result, employment growth in this sector is expected to exceed any other in the Australian economy. This will have significant impacts on the size, composition, and level of skills required for hospitality workers in the future. Some of the major macroeconomic trends expected to affect the sector in the medium-to-long term are listed below: CHANGING COMPOSITION OF INTERNATIONAL VISITATION TO AUSTRALIA Domestic and international visitors accounted for approximately 30.9% of all demand for food and beverage services in Australia. Therefore, growth or decline in domestic and international visitation affects the demand for hospitality services, and in turn the demand for skilled and nonskilled labour. While domestic visitation is expected to remain relatively flat, the Tourism Forecasting Committee expects to see an average increase of 4% per annum in international visitation to This growth is largely expected to be fueled by economic growth in Asia. Australia is already seeing significant increases in arrivals from eastern source markets, with these markets accounting for 47% of total international visitor expenditure or $14.1 billion in China is now Australia's second largest source market for international arrivals with a 12.2% increase in visitor arrivals to 785,100 for the Year Ending August Arrivals from India also increased by 16.2% over the same period. By , inbound arrivals from Asia are expected to account for 46% of all international arrivals to Australia. Tourism Australia has identified 'good food and wine' as one of the core motivators of travel particularly for Chinese visitors. This will have significant implications for Australia's tourism and hospitality workforce, including the need for language skills, culturally appropriate service skills, and business development. The industry are already reporting difficulty in sourcing Mandarinand Cantonese-speaking staff to address market demand, with expectations this difficulty will continue into the future. ALTERNATIVE SOURCES OF LABOUR A considerable body of work exists examining alternative sources of labour to alleviate shortages in the tourism and hospitality workforce. Alternative sources of labour include international Page 6 of 9

7 workers encompassing skilled migrants, international students and working holiday makers and non-traditional workers including mature-age workers, indigenous employees and workers with a disability. The ability of these alternative sources of labour to alleviate labour shortages will largely depend on immigration policy and access to appropriate training to facilitate their participation in the sector. The Deloitte Access Economics report indicated a large proportion of employers were investigating non-traditional sources of labour, including skilled migration. However, current visa regulations severely restrict the ability of these businesses to access international workers. Virtually all tourism and hospitality-related roles were removed from the General Skilled Migration Skilled List in The industry welcomed the addition of Chefs to the Skilled List in July this year, but believe Cooks and Restaurant Managers should be added as a matter of urgency. In addition, international students are limited to working a maximum of twenty hours per week, and working holiday makers may only work for an employer for six months with tourism not included as one of the industries which allows workers to extend their visa into a second year by working in regional Australia. RCA believes immigration policy must be at the forefront of solutions to provide employers with greater access to international workers in the short-to-medium term to ease labour and skills pressures in Australia. LACK OF SKILLED STAFF AFFECTING EMPLOYMENT OF UNSKILLED WORKERS The inability to attract suitably skilled labour has led to increased difficulty in hiring and attracting unskilled labour. As highlighted in the Deloitte Access Economics report, Kitchenhands, Waiters, Café and Restaurant Managers and Chefs are the most in-demand occupations. However, the inability to hire Chefs, Cooks, and Restaurant Managers in now having flow-on affects to semiskilled and unskilled labour such as Kitchenhands and Waiters. This is because many small businesses will never grow to a size where an expanded HR structure is required. Instead, as critical skilled positions remain vacant, so too do many supporting roles within the business. WORKFORCE DEMOGRAPHICS AND IMPLICATIONS FOR RETAINING STAFF Tourism and hospitality sector has traditionally been characterised by a younger workforce, with 45.7% of workers aged 15-24, compared to 16.8% for all other Australian industries. However, as a result of an ageing population, the proportion of younger people available to work in the sector will also decline. The availability of staff at the junior or frontline level continues to be an area of great concern among senior tourism executives. This inherently creates two issues: the need to retain staff for longer within the sector through career path development, and ensuring alternative forms of labour including mature-aged workers receive the appropriate levels of training. The Deloitte Access Economics report found 46% of businesses experience problems retaining staff. Continual training and the promotion of talent are considered two key aspects in retaining staff, and reducing the cost associated with high staff turnover. However, the Deloitte Access Economics report found that only 20% of businesses pursue structured career paths as a strategy to retain staff. A major contributor to the lack of career pathways is the large number of Page 7 of 9

8 businesses that are small or micro-sized. Consequently, an industry strategy similar to RCA's Apprentice Mentor Program is required to facilitate career progression within the sector and with different employers within the industry. Industry also report discrepancies between the required supply of skilled labour and that which is being delivered through the training system. A Service Skills Australia survey in 2009 found that some training programs are not providing individuals with the skills and knowledge that employers require. RCA believes that if vocational issues are not addressed within the sector, then the shortage of skilled and non-skilled labour will only be further compounded in the future. Please provide any other information you consider relevant evidence to support your submission For example, you may know of some independent studies about your occupation that supports your advice to us. Would you like to make any additional comments on the SOL? RCA have ongoing concerns regarding the selection criteria used to determine occupations featured on the Skilled List (SOL). RCA believe the criteria do not reflect the market demand for skilled tourism and hospitality workers in Australia now or in the future. In particular, the criteria around the length of time in occupation and the utility of the occupation to the Australian economy does not take into the account the transient nature of the sector, nor the expected importance of this sector to the national economy in the future. By nature the industry experiences high turnover among the sector, yet has a lower attrition rate outside the industry. Indeed, RCA's own Industry Benchmarking Report found 77.4% of respondents have been in the hospitality industry for over 10 years. RCA believe the SOL criteria need to reflect the demand being experienced for tourism and hospitality workers, in particular Chefs, Cooks, Café and Restaurant Managers and Waiters. The current SOL criteria excludes a vast majority of tourism and hospitality positions, despite considerable evidence to suggest the sector is experiencing chronic shortages, and that these Page 8 of 9

9 shortages will increase in the future. Please provide the name, position and contact details of a person within your organisation who is willing to be contacted if any further information or follow-up is required. Name * Carlita Warren Position * Research & Policy Manager Contact details * or (02) All information, including name and address details, contained in submissions will be made available to the public on the Department of Industry website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in s do not suffice for this purpose. Respondents who would like all or part of their submission to remain in confidence should provide this information in an to gov.au. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission. Page 9 of 9

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