Skilled Occupation List (SOL)

Transcription

1 Skilled List (SOL) Tracking Code: Z5XWWF Name Individual * Steve Bletsos Organisation Auto Skills Australia What are the industry/industries and ANZSCO occupation/s that you or your organisation represents for the purposes of this submission? Industry Other 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 10

2 Group * Automotive and Engineering Trades Workers Unit * Automotive Electricians All Summary advice for SOL * Include Exclude Neutral Item 2 Group * Automotive and Engineering Trades Workers Unit * Motor Mechanics All Summary advice for SOL * Include Exclude Neutral Item 3 Group * Automotive and Engineering Trades Workers Unit * Panelbeaters All Page 2 of 10

3 Summary advice for SOL * Include Exclude Neutral Item 4 Group * Automotive and Engineering Trades Workers Unit * Vehicle Painters All Summary advice for SOL * Include Exclude Neutral Item 5 Group * Sales Assistants and Salespersons Unit * Motor Vehicle and Vehicle Parts Salespersons All Summary advice for SOL * Include Exclude Neutral Page 3 of 10

4 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? * Research and analysis conducted by Auto Skills Australia (ASA) indicates the following 9 occupations within the automotive industry as having medium to long term imbalances in the demand and supply of skills -i.e. where demand far exceeds supply of skills. These include: Motor Mechanic (General) Diesel Motor Mechanic Motorcycle Mechanic Small Engine Mechanic Automotive Electrician Panel Beater Vehicle Painter Motor Vehicle Parts Interpreter Motor Vehicle Salesperson Evidence for long term skill shortages in the above occupations is compiled by ASA from an annual national survey of 500 automotive businesses as well as extensive field interviews and focus group discussions with employers and industry stakeholders in all states. 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. There is strong evidence of non-metropolitan imbalances in the demand and supply of skills across the nine occupations identified. Field visits to automotive business conducted by ASA in regional areas across states reveal an exacerbating trend of skills shortages in non-metropolitan areas over the long term. These skill shortages have been compounded by a lack of sufficient courses and training providers, as well as the presence of very thin training markets in regional areas. Combining the results of employer field consultations together with a survey of 500 automotive businesses conducted by ASA, estimates of skill shortages were modelled out to 2020 incorporating ABS Census and labour force data, as well as ABS business counts data. The following average estimates of non-metropolitan imbalances were derived for each State out to 2020: NON-METROPOLITAN SKILL SHORTAGES BY STATE TO 2020 Motor Mechanics (General) Average non-metro supply shortages to 2020: NSW & ACT(1,273), VIC (1,150) QLD (1000), SA (817), WA (1000), TAS (100) NT (115) Page 4 of 10

5 Automotive Electrician Average non-metro supply shortages to 2020: NSW & ACT( 210), VIC (190) QLD (200), SA (115), WA (130), TAS (15) NT (45) Diesel Motor Mechanic Average non-metro supply shortages to 2020: NSW & ACT(270), VIC (225) QLD (200), SA (175), WA (205), TAS (25) NT (90) Motorcycle Mechanics Average non-metro supply shortages to 2020: NSW & ACT(110), VIC (90) QLD (80), SA (65), WA (90), TAS (20) NT (30) Small Engine Mechanic - Average non-metro supply shortages to 2020: NSW & ACT(150), VIC (130) QLD (140), SA (125), WA (100), TAS (18) NT (30) Panelbeater - Average non-metro supply shortages to 2020: NSW & ACT(500), VIC (420) QLD (380), SA (325), WA (419), TAS (25) NT (40) Vehicle Painter - Average non-metro supply shortages to 2020: NSW & ACT(375), VIC (298) QLD (212), SA (174), WA (252), TAS (25) NT (40) Motor Vehicle Parts Interpreter - Average non-metro supply shortages to 2020: NSW & ACT(320), VIC (290) QLD (265), SA (225), WA (242), TAS (10) NT (30) Motor Vehicle Salespersons - Average non-metro supply shortages to 2020: NSW & ACT(250), VIC (139) QLD (270), SA (100), WA (110), TAS (15) NT (10) 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 According to the Office of Fair Trading, all automotive mechanical, electrical and repair occupations are licensed in NSW. Other states also have similar licensing or registration arrangements. Page 5 of 10

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. There are a number of trends which are impacting on the demand and supply of skilled labour over the medium to long term within this sector. These include the following: 1) Consistent annual growth in the stock of motor vehicles on road There were approximately 17.6 million motor vehicles registered In Australia as at January This Is 2.6% higher than 2013 or 452,000 additional vehicles. Over the five years to 2014, the average annual growth rate of registered motor vehicles has been 2.5% (see ABS Motor Vehicle Census, Australia Jan 2013, Cat. No ). Extrapolating this average growth rate out to 2020, the stock of registered motor vehicles on road is expected to reach over 20.3 million vehicles, which translates into an additional 3 million vehicles on road by This large annual growth in the stock of motor vehicles on road is placing huge constraints on the capacity of the Australia's automotive repair and maintenance sector to service and maintain this growing fleet. Most automotive businesses profiled and surveyed by ASA within this sector are reporting that they suffering from backlogs of work and an inability to expand at the business level due to acute shortages of skilled labour across the nine occupations identified in this submission. Businesses do not envisage a solution to this crisis from the domestic labour market at any stage in the future. Businesses see independent skilled migration across the nine skilled occupations identified as critical in supplementing the domestic shortage of skilled persons within these trades over the long term. 2) Technological change Motor vehicle technology is constantly evolving and becoming ever more complex with the proliferation of computerized functionality and the merging of mechanical and electrical technologies within motor vehicles. The rapid emergence of hybrid and electric vehicles and turbo diesel technologies are a particular case in point. Businesses have reported a serious gap in the quantity and quality of skilled tradespeople available that are capable of conducting effective diagnostics and repair work with these technologies, especially on imported European vehicles which are gaining a prominent share of the marketplace. This gap is likely to widen over the medium to long term which also makes independent skilled migration across the occupations listed, an impending priority. 3) The loss of skilled automotive labour to other industries Page 6 of 10

7 Over the last five years, a significant proportion of skilled automotive labour within the nine skilled trades identified has left the automotive industry for the more lucrative salaries offered within the mining, resources and construction Industries. This has had a devastating impact on automotive businesses, particularly within Western Australia, Queensland, Northern Territory and South Australia. Even with the mining industry now entering a more subdued production phase, automotive businesses have reported little evidence of skilled automotive labour operating within these industries returning to the automotive industry. This reinforces the need for independent skilled migration within these trades to supplement the long term loss of skilled labour from the automotive industry towards other industries. 5) Accelerating business closures ABS statistics show that the automotive industry saw 2,800 net business closures in (see ABS Counts of Australian Businesses to June 2013 Cat. No ). This represents the largest ever net loss of businesses within the industry, and such losses are expected to continue over the next decade. Contributing factors include an inability on the part of many small business operators to keep up with technological change through a lack of investment in capital and skilled labour over time; an ageing cohort of small business owners resulting in many business closures, and the wind down and imminent closure of domestic vehicle manufacturing. Further business over the decade will have a significant impact on the quantity of available skills across the nine occupations identified over this period. Independent skilled migration within these occupations will need to be maintained to help alleviate a looming skills crisis within the automotive industry. 6) The declining proportion of automotive apprentices over the long term NCVER apprentice and trainees commencements data show a declining trend in annual automotive apprentice commencements. There were 2,000 fewer apprentices in-training in 2014 and this trend decrease is forecast to continue over to medium to long term. This will place further pressure on quantity of skilled automotive workers available in the future. There is no evidence of any foreseeable increase in the supply of automotive apprentices over the next decade in spite of Australia's growing population and labour force. Independent skilled migration will continue to be critically important in the future as a source of skills supplementation within automotive trades. 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. In addition to the estimates presented for supply and demand imbalances pertaining to the nine skilled occupations identified in this submission, it is also the case that these particular occupations satisfy the following criteria: Each of the occupations involve a long lead time to complete training - at least three years Page 7 of 10

8 or more at the Certificate III level for over 68% of apprentices across the eight occupations listed; They are high use occupations - according to the NCVER, there is a high match of over 70% between the training and expected skills and employment outcomes across the eight occupations identified; The particular skills identified are categorized by businesses as being high risk. With the anticipated decline of the motor vehicle and parts manufacturing sectors, the automotive repair and maintenance sector will constitute largely what is left of the automotive industry. The long term skill shortages presented in this submission within the repair and maintenance sector, are in aggregate estimated to be in excess of 45,000 positions by When combined with imminent business closures due to age related retirements, low commencement rates for automotive apprentices and the forecast growth rate in the motor vehicle fleet on road over the next few years, this high risk environment is a very real certainty. There is the very real threat that the closure of business workshops and impending skill shortages identified will pose a significant risk to the community and broader economy. The possibility of consumers not being able to repair their vehicles in a timely manner represents a huge risk according to many business respondents. Time lags of weeks and even months have been cited by many business operators particularly in the vehicle body, mechanical and automotive electrical trades, as real possibilities for consumers seeking to repair their vehicles in the future. Would you like to make any additional comments on the SOL? The overwhelming advice provided to ASA by state Motor Trades Associations, Automotive Chambers of Commerce and other industry stakeholders representing thousands of members Australia wide is that: 1. The automotive occupations currently on the SOL should be retained 2. Such tradespersons should be permitted to migrate on their own initiative (without the need for direct employer sponsorship or via a migration agent) 3. Such method of migration is least costly in terms of investment as this method bypasses the need for migration agent fees / other substantial costs to the employer - in fact if the migrant is competent, placement will be at minimal cost to industry. 4. Where, as not infrequently occurs, a migrant seeks to enter Australia on a working holiday/ temporary visa for up to say 12 months, small business does get the opportunity to offer employment, assess the individual and apply for permanent visa status under one of the permanent visa arrangements. 5. There is capacity to extend the work visa if such migrant is out of time but is in the process of Page 8 of 10

9 obtaining a permanent work visa. 6. The sources of such migrants should not be restricted. 7. Clearly, small business with the least capacity to pay high costs of recruitment will suffer if the SOL restricts the flow of self-initiated migration 8. Apart from the drive shown by those who apply for self-initiated migration via working holiday/other visas, their competency is identified in terms of performance and attitude if they fail, they return to their country of origin with little financial risk to the employer by contrast where migrants are sourced via migration agents, such persons on temporary visas, do not always have transferable skills or competencies or conduct can be poor (cultural / social attitudes affect performance) and these persons frequently seek out others and attempt to stay in Australia having already cost the employer significantly, the threats made against employers are not infrequently a source of severe work stress and it leads to various outcomes. 9. The main issue with all migration is ensuring appropriate assessment of transferrable skills and competency prior to entering the country those migrants on a working holiday/ student work visas have to prove their competency with in the time limit set and employers do retrain on the job where such migrants have the potential. Conclusion:- The avenue of direct migration, either through a working holiday visa or permanent residency must be maintained to help address the automotive skills shortage in the listed trades. That list of trades must be maintained without it small businesses will suffer and larger businesses will simply poach labour when available from any source, based on higher capacity to pay and / or potential job opportunities. Independent skilled migration is viewed by ASA as well as the automotive industry and its key stakeholders, as a viable and credible source of skilled automotive labour which will be crucial as the industry undergoes significant transition over the next few years. It would be completely erroneous to remove any existing automotive occupations from the SOL for the purposes of independent skilled migration. 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 * Steve Bletsos Position * Senior Research Analyst Contact details * sbletsos@autoskillsaustralia.com.au Page 9 of 10

10 Tel: 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 10 of 10