A Shared Responsibility - Apprenticeships for the 21 st Century

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1 Stakeholder Submission A Shared Responsibility - Apprenticeships for the 21 st Century Vivienne Mallinson Chief Executive Officer BUSY At Work PO Box 303 Southport Qld 4215 Ph: Mob:

2 Response to: A Shared Responsibility - Apprenticeships for the 21 st Century BUSY At Work Apprenticeships Services welcomes the publication of A Shared Responsibility - Apprenticeships for the 21 st Century and respectfully offers the following submission in response to issues raised by the report. BUSY At Work Apprenticeships Services is Queensland s largest provider of Australian Apprenticeships Support Services. It is a Division of BUSY At Work (BAW), a provider of diverse Apprenticeships, Employment, and Community services. BAW employs 200 staff from 16 offices and has been providing these services for nearly 35 years. Mentoring/Structured Support (Recommendation 4, 5 & 12) Recommendations 4 and 5 of the Report discuss the need for structured support for employers and eligible apprentices and trainees. Since July 2010 the Department of Education, Employment and Workforce Relations (DEEWR) has been piloting mentoring schemes across Australia utilising the services of Australian Apprenticeships Centres. This focus on structured support and mentoring has been welcomed by both employers and apprentices with enthusiasm and early retention results reflect an increase in retention of between 17 20%. BUSY At Work has been trialling a mentoring scheme on behalf of DEEWR since 1 July The model engages both employers and apprentices at the onset of the Apprenticeship. The BUSY Risk Based model enables us to target apprentices considered to be in danger of non-completion and offers an outstanding return on investment whilst working in a tight fiscal environment. The model has two key drivers: statistical risk identification, and human engagement risk identification. Firstly, the model utilises the data gathered by 12+ years of delivering Australian Apprenticeships Support Services to identify Apprentices at risk based on a range of variables. These include: age gender qualification personal background Industry BUSY At Work 1 April 2011

3 geographical location. Secondly, BUSY utilises its extensive Field team and network of stakeholders including: Registered Training Organisations, Group Training Organisations and Employer/Industry Bodies, to identify Apprentices at risk. The issues that the Mentors are dealing with range from minor communication problems between the employer and apprentice, to major issues such as attempted suicide, homelessness and substance abuse. Often a Field Officer may identify a situation where an Employer and an Apprentice are unable to communicate, so a Mentor will mediate between the two parties usually leading to a positive outcome. This risk based approach is both cost effective and successful in the retention of Apprentices and BUSY At Work would embrace further progress towards a national scheme of this nature. Early indications from the first six months of this pilot is that retention rates have increased by between 17% and 20% Employers benefit in other ways from the Mentoring/Structured support model. Often employers need guidance as to the appropriate provision of on the job training, particularly regarding issues of competency based progression (Recommendation 12). This is a complex issue and many employers do not understand that the Apprenticeship is more than just the external training element. This is another example of how Mentors would support the delivery of the Apprenticeships system. Pre-Apprenticeships Training/ VET in Schools (Recommendation 8 & 9) It is important to consider the value of pre-employment/apprenticeship training in the retention and completion of Apprenticeships discussion. There are two issues to consider here: the role of Vocational Education and Training (VET) in schools, and pre-employment training for non school based entrants. Considerable progress has been made in Queensland to grow the delivery of Australian School-based Apprenticeships and Traineeships (ASBAs). In June 2010, BUSY At Work wrote a discussion paper entitled The Success of School-based Apprenticeships in Queensland. The paper identified that in 2007 the National Centre for Vocational Research (NCVER) reported that Queensland accounted for 74.3% of all school-based apprentices in Australia and 40.5% of all commencements in Despite the efforts of policy makers interstate, in the twelve months to September 2009, Queensland still accounted for 48.67% of the national intake. BUSY At Work 2 April 2011

4 A key ambition of the Queensland Australian School-based Apprenticeships and Traineeships (ASBAs) program has historically been to improve retention rates of Year 11 and 12 students by offering more appropriate career pathways involving training and employment. If the success of ASBAs in Queensland can be replicated on a national basis, they can become a key part of the National Youth Participation agenda thereby encouraging students to stay in education and training until they are 17 years old. This can also be used to assist States to reach the 90% year 12 education attainment targets by 2015, as well as fulfilling the broader national skills agenda. The following key factors were identified as contributing towards making Queensland the leader of ASBAs in Australia: appropriate Industrial Relations and regulatory legislation/framework the early initiation of the system government leadership and investment the perception of ASBAs as a valued career path marketing and promotion dedication and honesty towards continuous improvement. However, the one challenge that remains with ASBAs in Queensland, and more noticeably nationally, is that some schools have engaged with the system far more enthusiastically than others. Some schools, notably in the private sector, do not regard it as a valued career path compared to University. If we are to ensure that VET in schools provides the results required to create the skilled work ready individuals we need in the future, then systems must be consistently applied nationally. The profile of VET and ASBAs in schools must be raised nationally, so that all schools offer it as a valued career option for all students. In a paper written by BUSY At Work in June 2009, entitled The Future of Skills Support Services in Australia it was identified that: the relevance of schools in a discussion on skills and training support services is the lack of consistency or clarity on career advice from school to school. The ability of schools to meet the needs of students regarding career advice is determined by the interest or passion played by the Principal and the ability of the staff member who provides the advice. There are a range of outsourced career services available to schools in Australia, however this again suffers from the frailties of a disparate system. Schools must be provided with the ability to offer consistent careers support and advice, including VET, to all students. This guidance must come from appropriately, nationally qualified providers who can offer not only advice but also access to work readiness skills for all students. It is vital to the development of our future workforce that schools have access to a dedicated Career Advisor with the qualifications, skills and experience to assist students BUSY At Work 3 April 2011

5 develop their ability to enter the workforce. However, schools still need the ability to link students with industry. This is a perfect opportunity for Australian Apprenticeships Centres (AACs) with their extensive links to industry/employers to facilitate this process. There is a significant cost saving opportunity to link the School Business Community Partnership Brokerage system to the AAC support services. Despite the disparate nature of VET services in schools, the one consistent service nationally provided in this field is that by Australian Apprenticeships Centres. AACs have relationships with nearly every school in Australia. There is a significant opportunity to leverage these relationships and expertise so that AACs provide more comprehensive VET and career support services to all schools. Case Study Salisbury Christian College BUSY At Work is currently working with Salisbury Christian College, a private High School in Brisbane, to develop a VET programme. The school will sequentially offer one month of schooling including regular classes and work preparation, followed by a month of paid work. The programme is being run in Year 11 and 12 for a dedicated class of fifty students. Each month 25 will be in work and 25 in school. They will undertake an Apprenticeship or traineeship as part of the process, and will not only finish school with a senior certificate and a vocational qualification, but also the ability to adapt quickly to the workplace. Holistic Services (Recommendation 2) Career Advice Services could be part of a broader use of AACs as a One Stop Shop in the skills and training environment nationally. As identified in the Apprenticeships for the 21 st Century Report there is a need for clarity and consolidation of service providers in the system (Recommendation 2). Presently there is a myriad of providers in the system including: TAFE, Registered Training Organisations, Job Services Australia Providers, Disability Employment Networks, State Training Authorities, Group Training Organisations, Industry Skills Councils, and Industry Bodies. This has resulted in confusion and lack of clarity in the Apprenticeships and Skills system by the end user. There is now an opportunity, as we progress through this process, of redesigning the Apprenticeships system to offer a genuine One Stop Shop for skills and apprenticeships advice. Currently AACs predominantly provide advice and support around incentives. However, they could offer advice and direction on a range of other services to enhance the system. Mentoring and career advice in schools has already been identified. This can be enhanced by providing independent career and skills advice to the broader community demographics based on the targeted needs of the Australian economy and skills shortage agenda. BUSY At Work 4 April 2011

6 Job Placement One of the most distinct gaps in the Apprenticeships system in Australia is the absolute lack of somewhere for a jobseeker to go to find an Apprenticeship vacancy. This obvious exclusion has never been addressed and with the review of the system, an opportunity exists to correct this. There are some services such as Group Training Organisations (GTOs) or Jobs Services Australia providers, however the former can only offer opportunities from employers that want to use a GTO (less than 10 percent nationwide) and the latter is limited to eligible jobseekers. In addition, employers are reluctant to use recruitment agencies due to the additional cost involved. We have a need in Australia for a place that employers can utilise and jobseekers can use to find an Apprenticeship. Such a place should provide appropriate screening and pre employment training to ensure the best fit between the employer and the apprentice. This would also address the issue that when an Apprentice starts work the employer alludes to spending up to three months addressing work readiness and preparation skills. Many small employers lack recruitment skills and this service would significantly address the impact poor recruitment has on low retention and completion rates. Consolidation of Service Providers (Recommendation 1 & 2) A further opportunity for the consolidation of roles in the Apprenticeships system (Recommendation 2) is the clarification and streamlining of roles between Australian Apprenticeships Centres and State Training Authorities (STA). Each state will differ, however as a Queensland based organisation there are a number of examples where functions could be consolidated by AACs. The process for integrating these services will require significant Federal/State Government negotiation and success may differ from State to State. However, the foundations for success are laid with the report s recommendation for a National Custodian to oversee reform (Recommendation 1). The opportunities for consolidation relate to areas such as: monitoring visits skill shortage lists, and correspondence between the parties to the training contract This consolidation would enhance the One Stop Shop concept by streamlining what is currently a complex and multi-faceted system. There needs to be a consistent national system that has the flexibility to meet specific local labour market needs for example the recent natural disasters of BUSY At Work 5 April 2011

7 flooding in Queensland and Victoria. This will provide clarity and cohesion in the future. National Custodian (Recommendation 1) BUSY At Work supports the concept of a National Custodian to oversee reform that will ensure that Australia has a high quality Australian Apprenticeships system (Recommendation 1). As noted in the Apprenticeships for the 21 st Century report, there are significant differences between States and Territories as regards the administration of the Apprenticeships system. The Report clearly demonstrates the detriment that differing administration between the States/Territories has on the Apprenticeships system. Reducing Federal administration will only increase the level of frustration felt by national employers and apprentices moving interstate. Likewise, a move to create a nationally consistent system is a long term strategy and it is highly unlikely that consensus will be met on all aspects of the Apprenticeships system in the short term. The creation of a nationally consistent system is a long term endeavour and changes are likely to be incremental over a sustained period. Each State and Territory has its own needs, opinions and character, therefore the creation of a National Custodian can take a long term view of the situation and progressively work towards national consistency in the forthcoming years. Formal Accreditation Process for Employers (Recommendation 3) It is important that the future Apprenticeships system is streamlined, flexible and performance driven. The formal accreditation process of employers of apprentices (Recommendation 3) is a potential obstacle to the attainment of this vision. Many employers already find the bureaucracy of the system inhibiting to the recruitment of an apprentice and this new layer of accreditation could potentially exacerbate the situation. It is also a costly exercise for whoever provides this service and should that be the local STA, then considerable demand will be levied on their human resource capability. Should the accreditation process lie with the AAC, then cost efficiencies can be made and the system will not be slowed by the need to bring in another stakeholder. In addition, AACs can take a risk management approach to accreditation as per the recent mentoring pilots, and this will ensure that additional resources are targeted at employers new to the system or who seem to be finding the process challenging. BUSY At Work 6 April 2011

8 Wage Review (Recommendation 6 & 14) Recommendation 14 is Support a review of apprenticeship and traineeship provisions, wages and conditions by Fair Work Australia. BUSY At Work supports this recommendation. There is clearly misalignment by new Fair Work industrial relations provisions and the need to encourage a flexible apprenticeships system. The issue of wages is a point of ongoing discussion. It is important to ensure Apprentices have a reasonable means of living above the poverty line whilst also considering the impact on employers of increasing wages. There is also an ongoing discussion that University students are not paid to attend so why should Apprentices be paid. The reality is that Apprentices are offering a productive resource for employers. If we are to truly ask Employers to take a shared responsibility for the system (Recommendation 6) then an increase to wages is a simple method of achieving this. In addition, the demographics of Apprentices have changed considerably in the last decade and the cohort is no longer dominated by teenage school leavers, but now reflects a broader cross section of the community, including mature aged workers. This cross section has a range of pre existing work skills and as a result Apprentices in general terms would now be considered to be more productive sooner than previously thought. Such an increase to wages could potentially negate the need for certain personal benefits thereby reducing the burden on Government. It is argued that the notion that increased wages will reduce employer take up of Apprentices would not eventuate. History is littered with examples of industrial relations and social changes that have not impacted staffing numbers as predicted. Indeed, we are yet to see recent Fair Work changes impact on Apprenticeship sign up rates. Disadvantaged/Priority Groups (Recommendation 10) Additional support for Apprentices and trainees who face specific challenges, such as Indigenous Australians, people with a disability, people living in remote and regional Australia, and people with poor language, literacy and numeracy skills is both a positive recommendation morally and strategically for Australia (Recommendation 10). Currently specific incentives and wage support exists for people in some of these cohorts. In addition, Australian Apprenticeships Centres are targeted on the number of commencements from certain priority groups. These initiatives are highly valued and needed. Australia cannot purely rely on BUSY At Work 7 April 2011

9 immigration for human capital. We must ensure that all Australians are given the opportunity to succeed. Sadly, many employers continue to view certain jobseekers from disadvantaged groups in a negative light and although we would like their engagement based on altruistic reasoning, there continues to be a need for an incentives based approach. Australian Apprenticeships Centres in a new One Stop Shop model could collectively ensure that skills shortage engagement strategies, develop and utilise the skills of disadvantaged groups. In addition, AACs could ensure that all Apprentices have the literacy, numeracy and language skills to undertake an Apprenticeship. Currently this is considered by the RTO. As independent organisations, AACs could ensure that all Apprentices have the necessary skills and if they need development, the AAC should facilitate training. This would result in more successful outcomes. Skills Formations and Development value of Traineeships (Recommendations 5 & 12) Skills development is a key facet of the traineeship model. Recent discussions have concerned the reduction of incentives in this area (Recommendation 5). Traineeships are often undervalued as a means of career progression. Often they are a stepping stone to many other careers. Without them, many individuals would lose the pathway to success. There has been considerable media coverage of large organisations in the retail and hospitality industry receiving incentives. The coverage overlooked the use of traineeships as a serious career pathway. It also overlooked the ability to prevent these industries from entering skills shortages themselves. With the recent reduction of certain visa categories, Australia is already experiencing a challenge finding new hospitality workers. By decreasing incentives, we will encourage the casualisation of the industry and further reduce the talent pool available. Summary of BUSY At Work s response: The following is a summary in response to the Apprenticeships for the 21 st Century report: The Mentoring services recently piloted by Australian Apprenticeships Centres should be rolled out as a national programme using a risk based model. Mentors would support both Apprentices and Employers, and could assist with a range of challenges in the current system. This would include personal issues, communication issues and difficulties employers have facilitating on the job training. All schools should offer VET and Career Advisory services based on nationally consistent standards. BUSY At Work 8 April 2011

10 There is an opportunity to create a One Stop Shop for skills and apprenticeships based on the current Australian Apprenticeships Centre model. This service could include: open career and skills advice services apprenticeship job placement services, and strategic support for National Skills Shortages. One of the simplest methods of consolidation is to clarify and streamline the roles between AACs and STAs. BUSY At Work supports the concept of a National Custodian, however it must be provided with long term strategic goals. Any formal accreditation process must be risk based otherwise it has the potential to severely limit the Apprenticeships system. BUSY At Work supports a review of wages for Apprentices. BUSY At Work supports the recommendation to provide additional support to certain groups. Traineeships are overlooked as a career pathway and incentives should be retained to reflect this. BUSY At Work 9 April 2011