Skills Tasmania Tasmanian Transport, Freight and Logistics Industry Skills Plan Version 1.3 FINAL 14 January 2011
DOCUMENT CONTROL Revision History Version # Author Summary of Changes Date of Issue 0.1 Walter Chikwanha Draft 08 October 10 0.2 David Morgan Review and comment 28 Oct 2010 0.3 Walter Chikwanha Update 09 Nov 2010 0.4 Walter Chikwanha Update 11 Nov 2010 1.0 David Morgan Draft discussed with Skills Tasmania 12 Nov 2010 1.1 David Morgan Inclusion of training data to appendix, interstate 20 Nov 2010 workforce development initiatives 1.2 David Morgan Enhancement of recommendations 13 Dec 2010 1.3 David Morgan Inclusion of sponsor in recommendations and further 14 Jan 2010 enhancement of executive summary Final Approvals Name Initials Title Date of Issue Version # David Morgan DM Managing Director 14 Jan 2011 1.3 Commercial in Confidence
ORGANISATIONAL DETAILS Company Name: ACN: ABN: Registered Office: Explain IT Pty Ltd, trading as The Work Lab 117 586 633 78 117 586 633 1 st Floor, 373 Elizabeth Street North Hobart, TAS 7000 Street Address: 1 st Floor, 373 Elizabeth Street North Hobart, TAS 7000 Postal Address: Contact Name: Title: Telephone: Fax: Email: Web: PO Box 547, North Hobart, TAS 7002 David Morgan Managing Director 03 6234 9422 03 6234 9423 david@theworklab.com.au www.theworklab.com.au Commercial in Confidence Page 3 of 51
TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY... 5 2.0 RECOMMENDATIONS... 8 4.0 METHODOLOGY... 12 5.0 INDUSTRY OUTLOOK... 14 6.0 CASE STUDIES... 29 7.0 DISCUSSION OF FINDINGS... 37 8.0 CONCLUSION... 40 9.0 APPENDIX... 41 10.0 CONSULTATION LIST... 43 11.0 QUESTIONS ASKED TO STAKEHOLDERS... 44 12.0 WORKFORCE DEVELOPMENT INITIATIVES ACROSS AUSTRALIA... 45 Commercial in Confidence Page 4 of 51
1.0 EXECUTIVE SUMMARY In September of 2010, Skills Tasmania contracted The Work Lab to develop a comprehensive Skills Plan for the Tasmanian Transport, Freight and Logistics industry. The Skills Plan was to build on the findings of a March 2010 Industry Health Check survey that examined a range of workforce issues in the industry. The Tasmanian Industry is not unique regarding its skill development issues. An array of workforce development solutions and assistance are available through Government and Industry supported programs facilitated by Transport and Logistics Working Groups established through the Federal Department of Infrastructure and Transport and its State equivalents. A collaborative effort locally and across Australia is critical to solving the many skills issues faced within Tasmania. Collaboration is also critical in being able to harness Government support across jurisdictions. Issues affecting the industry are split across at least three State Government departments without a clear lead agency or visible collaborative effort. The industry is also without a single peak industry body to lead change and advocacy effort on its behalf. The Tasmanian Transport and Logistics Working Group must play a pivotal role in providing leadership and facilitation of this collaborative effort to drive positive outcomes for the industry. The imperative of this occurring is clearly illustrated by the findings below: As a result of continued economic growth the Tasmanian freight task will double in the next 20 years if the economy maintains a 3.9% per annum growth. 1 There will not be an adequate workforce to meet this increased workload (at the projected employment growth at 5.12% per annum). 2 Driven by the macro effects of an ageing population and continued difficulties recruiting younger workers, the industry has an ageing workforce. Over 40% of the current workforce is over 45 and by 2020, 45% of the workforce will be aged between 50 and 65 years old. The delayed retirements caused by a loss or reduction in superannuation due to the Global Financial Crises means more people will retire simultaneously over the next few years, worsening the skills shortage. 1 Tasmanian Freight Logistics Council: Doubling of Freight Task in Tasmania Report 22 July 2009 2 Occupational Skills Shortage Analysis Tasmania Phase One Report July 2008 - http://www.skills.tas.gov.au/skillstas/policy-and-publications/skill_shortages_report_-_final.pdf Commercial in Confidence Page 5 of 51
Numerous employers cite competition with lucrative alternative options in the mining industry as causing retention issues for certain occupations. The majority of training in the industry is compliance based. This takes two forms: o Regulatory licences most of which have a time based element attached and thus require maintaining currency; o Supply chain based where head contractors (companies that Transport and Logistic companies effectively work for) require the adoption of their own quality assurance systems and processes. As a result of this, the dependence of training based on national vocational competency standards is low and little evidence was found of the use of national qualifications to support workforce development activity. Most employers train new and existing staff on the job to compliance requirements. The Transport and Logistics Industry perceives itself as having a negative image and this image reduces its attractiveness to new entrants to the labour market. Awareness of careers within the industry is low and whilst the vocational training system provides qualification based career pathways, these are not widely used by industry. There are low student enrolment numbers in transport and logistics qualifications. Between 2008 and 2009, there was a 32% decline in enrolments. In addition there are low completion rates with only 300 students per annum between 2005-2008, which represents only 1% of the total industry workforce. Effective partnerships with training organizations require significant customization of training content to enterprise requirements. Models of good practice do exist which can be used as exemplars for broader application. The Chain of Responsibility provision, introduced in Heavy Vehicle Road Transport Amendment Bill of 2010 will likely impact employers, particularly around their systems and process a component of which is clearly related to human resources. Industry engagement initiatives relating to the Bill s implementation provide the opportunity to commence work on skill development initiatives and solutions. Commercial in Confidence Page 6 of 51
The significance of these findings is: Tasmania is primarily an export state and therefore the road, rail, air and sea freight transport is crucial for the movement of goods and for the survival of the Tasmanian brand. 2008/9 saw the export of over 9.6 million tonnes of goods. 3 The transport and logistics industry in Tasmania is a vital component of the Tasmanian economy, employing 1 in 8 people and contributing 14.1% to GSP in 2007. 4 This research is a follow up to the March 2010 Health Check and the findings herein support previous responses. This skills plan combined with the Health Check covers a wide spectrum of industry stakeholders i.e. small and large business in all sectors including the rail sector and thus gives a cross sectional view of the industry as a whole. The limitations of these findings are: The case study information was collected from a small number of businesses and so should be considered as purely qualitative. Interviews with industry stakeholders were conducted at a time of flux, where the future of the two main governance bodies involved in industry development issues, the Tasmanian Freight and Logistics Council (TFLC) and the Tasmanian Transport and Logistics workforce advisory group (TTLWAG) was uncertain. 3 Tasports Annual Report 2008/09 Freight Statistics and Port Information 4 Australian Logistics Council Contribution of Transport & Logistics to the Economy - Dispelling the Myths (2007) http://www.austlogistics.com.au/dmdocuments/gdp2007.pdf Commercial in Confidence Page 7 of 51
2.0 RECOMMENDATIONS It is recommended that: Recommendation Responsibility By when The TTLWAG be reinvigorated through the reappointment of members by the Minister for Infrastructure. Its composition should include union representation (TWU), peak body representation (TFLC, TTA) and representatives of the 4 sectors of the industry namely rail, road, sea and air. with support roles from DIER, DEDTA, Skills Tasmania. Once reformed the TTLWAG will develop an action plan for implementation of skills plan recommendations. Sponsor Stakeholder TFLC Supporting Stakeholders DIER, Skills Tasmania By end Feb 2011 The TTLWAG support and feed into National and interstate initiatives aimed at implementing the outcomes and actions of the National Workforce Planning and Skills Working Group. At a minimum it is recommended that the TTLWAG support: National workforce gauge National repository for careers information LINC website That the outcomes and issues raised at TTLWAG meetings form substantive input into the network performance stream of the National Standing Committee of Transport. By way of an immediate follow up to this report, a kit should be distributed to the industry providing: Information on existing government initiatives that could benefit workforce development activity. A summary of this report and resulting actions, in particular the role of the TTLWAG. Skills Tasmania take the lead role in coordinating and facilitating workforce development initiatives in the Transport and Logistics Industry. Sponsor Stakeholder TTLWAG Sponsor Stakeholder TTLWAG Supporting Stakeholders DIER Sponsor Stakeholder TTLWAG Supporting Stakeholders Skills Tasmania, DEDTA John Furness Australian Apprenticeship Centers (AAC) Sponsor Stakeholder Skills Tasmania, Industry Liaison Officer 1 March 2011 onwards 1 March 2011 onwards Feb 2011 January 2011 onwards Commercial in Confidence Page 8 of 51
The Transport and Logistics Industry Skills Council (TLISC) be provided with a copy of this report and be invited to the TTLWAG to commence ongoing discussion and support between TLISC, TTLWAG and the Tasmanian industry. Invitation for TLISC to attend regular meetings of the TTLWAG There be a re-alignment of training supply to meet the current and future occupations that are in actual demand in the transport sector. Significant effort be placed on improving engagement of the vocational training system with the needs of the industry. Clearly, businesses are involved in workforce development activity in isolation from the opportunities offered by the VET sector. Forums with industry stakeholders then VET providers to communicate needs and strategies for implementation Implementation activity relating to the Chain of Responsibility legislation be used as a mechanism to market examplars of workforce development activity. The case studies portrayed in this report provide exemplars of the positioning of training into the operations of transport and logistics businesses. These could be further developed into how to kits and marketed to the industry. This should include comprehensive information on the qualifications frameworks that are available and the funding that exists to support engagement. Sponsor Stakeholder TTLWAG Supporting Stakeholders Skills Tasmania, TLISC Sponsor Stakeholder Skills Tasmania Supporting Stakeholders TLISC, Vet Providers Sponsor Stakeholder TTLWAG Supporting Stakeholders DIER (John Bessells), Skills Tasmania (ILO), TLISC March 2011 onwards March 2011 onwards Jan 2011 onwards. Commercial in Confidence Page 9 of 51
3.0 RATIONALE In March 2010 the Tasmanian Freight Logistics Council commissioned The Work Lab to undertake an Industry Workforce Health Check. A total of 69 companies with representation across different sectors of the transport and logistics industry took part in the online survey. The main topics participants were asked to comment on were staff recruitment, retention and training as well as skills shortages and their potential impacts. The Industry Health Check Report found that: The Tasmanian transport and logistics industry has an ageing workforce 40% of the workforce is over 45 and only 11% under 25. Labour issues are more acutely felt with blue-collar occupations; in particular, difficulties were expressed in: o o o Attracting new staff (this is compounded by high attrition levels) Maintaining productivity with the existing skill base Maintaining compliance with regulatory requirements. Across the industry, recruitment difficulties were cited. These were due to a perceived lack of required skills amongst job seekers and compounded by work conditions (shift work etc) inherent in the industry. Very few companies cited problems retaining staff but 35% perceived this as likely to be an issue for them in the next 18 months. A significant list of occupations was put forward as likely to cause recruitment problems in the next 18 months. Training, flexible hours and salary sacrificing were cited as common employee benefits. Training effort across the industry is generally focused on compliance skills and management development. There is low awareness of the National Training Package across the industry but some evidence of the use of competency standards for workforce development. No significant issues with current training delivery were raised. Commercial in Confidence Page 10 of 51
A number of constraints on doing business in Tasmania were identified as well as benefits, which were mostly lifestyle/value based. A number of participants indicated they would be interested in being kept up to date on the Tasmanian Transport and Logistics Workforce Advisory Group s findings. The report recommended further analysis into several areas to better understand the critical issues and enable the formation of recommendations and solutions. This further analysis is the basis of this report. Commercial in Confidence Page 11 of 51
4.0 METHODOLOGY This skills plan was developed using a mixture of desktop research and primary qualitative research consisting of structured interviews and case study development. A total of 11 structured interviews with Tasmanian Transport and Logistics Workforce Advisory Group members and 6 case studies with a cross section of businesses were carried out. Methodology stages Stage 1: Project Plan Stage 2: Desktop research This involved conducting of desktop research on skills and workforce development in relation to the: 2.1 National outlook - how the Australian transport industry and the Commonwealth and State governments are dealing with these issues 2.2 International outlook - what effect trends in other countries has had or will have on the nations own industry, and what we can learn from this 2.3 Policy framework - what industry related policies are likely to have a bearing on the industry 2.4 Regulatory framework - legislation and compliance-based regulations that has had or is likely have an impact on businesses Stage 3: Structured interviews Preparation, conduct and documentation of questions and issues from 11 one-on-one meetings with individuals from the Tasmanian Transport and Logistics Workforce Advisory Group (TTLWAG) Stage 4: Case study development Preparation, conduct and documentation of 6 separate case studies of various businesses 1 from rail sector 2 from small business sector Commercial in Confidence Page 12 of 51
3 from other sectors (who had previously been identified as using competency standards work workforce development) Stage 5: Determine Recommendations Discussion with TFLC to explore findings and to develop recommendations. Stage 6: Report compilation Discussion with TTLWAG to explore recommendations and to develop actions. Commercial in Confidence Page 13 of 51
5.0 INDUSTRY OUTLOOK The Transport and Logistics Industry fits within a broader economic context and does not exist as an isolated entity. There are various external influences that have a bearing on the industry in one way or another. The global financial crisis, which began in September 2008, has sharply weakened the world economic outlook for 2009 and beyond. The crisis has had far-reaching consequences and its effects have been felt by many sectors of Australian business. In the year to June 2009, annual gross value added for the overall economy was down by 7.9% compared to a growth of 0.6% the previous year. The transport and storage industry gross value was -4.3% to June 2009. 5 In response to the crisis, governments in the United States, China, Japan, Western Europe, Australia and many other advanced and emerging economies have implemented substantial monetary and fiscal policy measures aimed at supporting economic activity, stabilising markets and bolstering consumer and business confidence. Notwithstanding these efforts, the world economic outlook has continued to weaken. In March 2009, the Australian Bureau of Agricultural and Resource Economics (ABARE) in its Australian Commodities March Quarter 09.1 Report forecast economic growth in Australia to be 1% in 2008-09 and 0.75% in 2009-10. Towards 2013-14, Australian economic growth is anticipated to average around 3% a year. 6 Industry Size and Composition The Australian government has clearly defined the need for substantive action on issues pertaining to workforce planning in transport and logistics concerning, supply of skills, education and training, career development and safety issues. Vital for this is the need to establish a centralized coordination mechanism between government and the industry, which will enable these actions to be carried out in a structured manner. In Tasmania, three government departments play a role in the transport and logistics industry skills and workforce development issues. Skills Tasmania is responsible for the development of policy advice and support for skills development. The Department of Infrastructure, Energy and Resources (DIER) has a particular focus on Infrastructure Policy and Planning. The Department of Economic Development, Tourism and the Arts (DEDTA) 5 Coleen Coyne Property Research Impact of the GFC Winners and Losers November 2009 6 Tasmanian Freight Logistics Council: Doubling of Freight Task in Tasmania report 22 July 2009 http://www.tasfreightlogistics.com.au Commercial in Confidence Page 14 of 51
has overall responsibility for economic and industry development in Tasmania. The operations of all three agencies impact on workforce development. The Tasmanian Government recently announced the establishment of a new Tasmanian Infrastructure Advisory Council, with representatives from the major economic sectors, to provide advice to government on providing and planning economic infrastructure across transport, energy, water and digital infrastructure. This body may well subsume the activities of the TFLC. The future of the TTLWAG is also uncertain at the time of writing. The Australian Trucking Association (ATA) estimates the Transport & Logistics industry (excluding Maritime and Aviation) encompasses 165,000 businesses, employs 167,000 drivers and over 512,000 trucks nationally; small business accounts for over 90% of all businesses (in number) and the employment of 35 % of the industry s workforce. 7 According to the Tasmanian Freight and Logistics Council (TFLC), Australia s transport, storage and logistics industry accounts for about nine per cent of Australia s gross domestic product (GDP) or about $63 billion a year. Nationally, the industry employs one in eight people. 8 In 2006/07, the transport and storage sector contributed 3.8% of Tasmania s GDP 9 The table below gives a breakdown of how the transport and storage workforce compared with all other industries nationally in 2007 Transport & Storage All Industries Number Employed 488 900 10 451 200 Employees (%) 86.5 88.3 Self-employed (%) 13.5 11.7 Age profile (%) 15-24 years 9.8 17.8 25-44 years 45.4 45 45+ years 44.8 37.2 Female (%) 25.7 44.9 Full-time/part-time status (%) Full-time 81.8 71.6 Part-time 18.2 28.4 Casual employees (%) 17.3 24.2 Level of highest qualification (%) 7 Facts and Statistics - Transport & Logistics Industry Skills Council www.tlisc.com.au 8 Tasmanian Freight Logistics Council: Doubling of Freight Task in Tasmania report 22 July 2009 http://www.tasfreightlogistics.com.au 9 Occupational Skills Shortage Analysis Tasmania Phase One Report July 2008 - http://www.skills.tas.gov.au/skillstas/policy-and-publications/skill_shortages_report_-_final.pdf Commercial in Confidence Page 15 of 51
Diploma and above 20.5 31.7 Certificate III/IV 19.2 17 Certificate I/II 6.1 6 No post-school qualification/not defined 54.2 45.3 Apprentices and trainees Commencements 16 400 272 500 Completions 8 800 142 900 In training (as at 30 June) 22 700 415 500 The above data shows that when compared to the whole of industry in Australia, the Transport and storage industry employ less young people (aged 15-24) and a higher number of people aged over 45. The transport industry has a larger number of full time employees and tends to employ less casual labour. Although over half (54%) of employees do not have post-school education compared to 45% in other industries, the transport sector has more people with Certificate I to IV than others combined. Only 20% of employees have gone beyond this to do a Diploma or above in comparison to 32% for other industries. The completion rate stands at only 1.7% of the total transport workforce. Industry Growth The Federal Government s Bureau of Transport and Regional Economics (BTRE) 2006 Working Paper 66 Demand Projections for AusLink Non-Urban Corridors focused on road, rail and coastal shipping freight tasks, which account for over 90 per cent of the domestic freight task. The national average annual growth for the twenty-five years from 1999 to 2025 is estimated to be as follows 10 : Mode %Avg Growth Road 2.98 Rail 2.38 Coastal Shipping 1.51 Air 6.1 All Modes 2.75 If the above growth happens, it will result in less than doubling of the freight task over that period in all transport modes apart from air freight. This will lead to increased road and rail system congestion, increased costs, and reductions in air quality, society amenity and greater noise. 10 Tasmanian Freight Logistics Council: Doubling of Freight Task in Tasmania report 22 July 2009 Commercial in Confidence Page 16 of 51
In Tasmania, the estimates are as follows 11 : Mode 1999 ( 000 tonnes) 2025 ( 000 tonnes) % Growth per Annum % Growth Over 20 Years Road 294.8 568.5 2.6 92.8 Rail 174.0 129.7-1.1-25.4 Coastal Shipping 295.0 377.3 1.0 27.9 All Modes 763.8 1075.5 1.3 40.0 This doubling of demand for the industry s services seems realistic. Between 1995 and 2009 alone, the combined import and export task in the state increased by over 37% from 10.8 to 14.9 million tonnes. 12 The Department of Infrastructure, Energy, and Resources (DIER) has started to develop the infrastructure elements of a $79 million transport hub in the Brighton Municipality. The proposed transport hub has been designed to accommodate the freight task growth with capacity to expand to meet longer-term growth projections. In addition to this, the Southern Transport Investment Program will see the construction of the $164 million Brighton Bypass, which involves upgrading the Midland Highway The Transport and Logistics Labour Market In 2006/07, the transport and storage industry employed 9,815 people in Tasmania, 4.4% of the total working population, after experiencing growth of 12.8% from 1998/99. Continued employment growth of 5.12% is projected to 2014/15. The table below ranks the projected increases in employment numbers by occupation for the period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the specific industry sector. The table also details the projected percentage change over the period, how the occupation ranks overall in projected growth and the actual number of people anticipated to be employed in that occupation (but not specific to the sector i.e. road, rail, water, air) in 2014/15.13 11 Tasmanian Freight Logistics Council: Doubling of Freight Task in Tasmania Report 22 July 2009 http://www.tasfreightlogistics.com.au 12 Tasports Annual Report 2008/09 Freight Statistics and Port Information 13 Occupational Skills Shortage Analysis Tasmania Phase One Report July 2008 - http://www.skills.tas.gov.au/skillstas/policy-and-publications/skill_shortages_report_-_final.pdf Commercial in Confidence Page 17 of 51
Top 10 Occupations by contribution to industry growth in Tasmania 14 Occupation Total Change % Average annual Change % Employed (No) 1 Store persons 33.31 3.66 5,579 2 Office Managers 52.83 5.44 4,919 3 Truck Drivers 11.61 1.38 4,556 4 Inquiry & Admissions Clerks 18.19 2.11 4,455 5 General Managers 61.79 6.2 3,318 6 General Clerks 50.62 5.25 2,965 7 Forklift Drivers 32.07 3.54 1,519 8 Supply & Distribution Managers 52.28 5.4 1,059 9 Bus Drivers 12.78 1.51 1,042 10 Transport Company Managers 60.38 6.08 454 29866 The table above shows that close to 30,000 people were employed in the Transport and Logistics Industry. The fastest growing occupations we managerial roles (i.e. high skill and experience occupations), followed by lower skill vocations such as forklift drivers and store persons. Skills and Training According to the Tasmanian Skills Strategy (2008-2015), Tasmania has made significant progress over the past decade in Vocational Education and Training. However, there are still many obstacles to overcome: 50% of Tasmanians do not have the literacy skills to function effectively in society; The retention rate for Tasmanians transitioning from Year 10 through to Year 12 is 65.3%; 41.4% of the population over 15 years have post school qualifications; 33.4% of the Tasmanian population aged 15 to 64 have Certificate III and above qualifications; The underemployment rate has remained fairly steady at 13.4% from 2003 to 2006; and The workforce participation rate in 2006-07 was 60.3% All these figures are the lowest in the nation. 15 14 ibid 15 Skills Creating our future - The Tasmanian Skills Strategy 2008 2015 Commercial in Confidence Page 18 of 51
Despite growth in the industry, between 2005 and 2008, the transport and logistics qualification completion rate in Tasmania has remained stagnant, averaging 300 students annually. This represents a mere 1% of the total workforce in this industry (compared to 1.7% nationally). 16 Enrolment figures (below) show a disparity between the demand for occupations and the qualifications being provided by the training system. For instance, over 5,000 store persons were employed in 2008, and enrolments amounted to only 673 that year. To exacerbate this situation, there was a 21% drop in enrolments in 2009 in this field. A steeper 65% drop was recorded for drivers (at all certificate levels) from 673 in 2008 to 392 in 2009. 16 2009 National VET Provider Collection - Qualification completions ('000) by Industry Skills Councils, Tasmania, 2005 08 Commercial in Confidence Page 19 of 51
Transport and Logistics Enrolments by Qualification and Matching Occupation 17 ASCO Code Qualification Occupation 2007 2008 2009 7122-11 TLI30907 Cert III In Transport And Logistics (Mobile Crane Operations) Crane, Hoist or Lift Operator 4 Total 4 7313-11 TLI10207 Cert I In Transport And Logistics (Road Transport) Hire Car Driver/Chauffeur 11 Total 0 0 11 615 TDT11102 Cert I In Transport And Distribution (Administration) Material Recording & Despatching Clerks 2 2 615 TDT21102 Cert II In Transport And Distribution (Administration) Material Recording & Despatching Clerks 3 5 1 615 TDT31102 Cert III In Transport And Distribution (Administration) Material Recording & Despatching Clerks 21 25 14 615 TLI11107 Cert I In Transport And Logistics (Logistics Operations) Material Recording & Despatching Clerks 1 615 TLI31107 Cert III In Transport And Logistics (Logistics Operations) Material Recording & Despatching Clerks 1 11 6151-11 TLI21107 Cert II In Transport And Logistics (Logistics Operations) Production Recording Clerk 1 Total 26 33 28 731 TDT10202 Cert I In Transport And Distribution (Road Transport) Road & Rail Transport Drivers 256 214 14 731 TDT20202 Cert II In Transport And Distribution (Road Transport) Road & Rail Transport Drivers 106 161 64 731 TDT30202 Cert III In Transport And Distribution (Road Transport) Road & Rail Transport Drivers 265 249 180 731 TDT30297 Cert III In Transport And Distribution (Road Transport) Road & Rail Transport Drivers 1 2 731 TDT40202 Cert IV In Transport And Distribution (Road Transport) Road & Rail Transport Drivers 2 3 3 7314-11 TLI20207 Cert II In Transport And Logistics (Road Transport) Drivers (Delivery) 20 7314-11 TLI30207 Cert III In Transport And Logistics (Road Transport) Drivers (Delivery) 19 111 Total 630 648 392 7993-11 TDT10102 Cert I In Transport And Distribution (Warehousing And Storage) Storeperson 73 83 22 7993-11 TDT20102 Cert II In Transport And Distribution (Warehousing And Storage) Storeperson 165 140 24 7993-11 TDT20197 Cert II In Transport And Distribution (Warehousing And Storage) Storeperson 1 7993-11 TLI10107 Cert I In Transport And Logistics (Warehousing And Storage) Storeperson 33 7993-11 TLI20107 Cert II In Transport And Logistics (Warehousing And Storage) Storeperson 227 261 7993-11 TLI30107 Cert III In Transport And Logistics (Warehousing And Storage) Storeperson 15 113 7993-01 TDT30102 Cert III In Transport And Distribution (Warehousing And Storage) Supervisor, Storepersons 209 198 89 17 Data supplied as qualification enrolments by Skills Tasmania VET Provider Collection and matched to corresponding occupation. A Student is counted each year they are enrolled in the qualification. Commercial in Confidence Page 20 of 51
7993-01 TDT40102 Cert IV In Transport And Distribution (Warehousing And Storage) Supervisor, Storepersons 22 10 2 7993-01 TLI40107 Cert IV In Transport And Logistics (Warehousing And Storage) Supervisor, Storepersons 10 Total 470 673 554 1223-11 TLI50107 Diploma Of Logistics Supply and Distribution Manager 20 Total 0 0 20 3393-11 TDT51002 Diploma Of Logistics Management Transport Company Manager 1 1 3393-11 TDT61002 Advanced Diploma Of Logistics Management Transport Company Manager 89 59 31 3393-11 TLI40207 Cert IV In Transport And Logistics (Road Transport) Transport Company Manager 36 3393 TDT41102 Cert IV In Transport And Distribution (Administration) Transport Company Manager 2 2 3 Total 92 62 70 Commercial in Confidence Page 21 of 51
Student enrolments for transport and logistics courses show a declining trend over the three years from 2007 to 2009. In the table above, driver related qualifications for example experienced a 65% drop over one year. The selected occupations list shows an overall fall in total enrolments in 2009 of 33% in comparison to 2008. Over the next 15 years, the workforce will continue to grow but its age structure will change significantly. By 2020, people aged between 50 and 65 will comprise 45% of the workingage population. As previously reported the industry is top heavy with older workers and attracts very few younger workers. Left unchecked - a poor community perception of the industry leading to an inability to attract younger generations will continue to be a major contributing factor to future recruitment difficulties and potential skill shortages. The Heavy Vehicle Road Transport Amendment Bill of 2010 introduced a key feature - the Chain of Responsibility provision, which extends the general liability for offences to all parties involved in the consignment, packing, loading and receiving of road freight. The new laws also include improved enforcement and investigative powers, risk-based categorisation of offences (minor, substantial and severe) and a wider range of sanctions and penalties. This will impact all business in the Transport & Logistics industry, particularly around the development of mandatory systems and process to manage risk of responsibility. This will have a corresponding impact on the requirements for additional compliance skills of the industry s workforce. The implementation of this Bill provides an opportunity to position workforce development activity as a constructive part of embedding systems and processes. This legislation is in different stages of implementation with Victoria and NSW having started in 2005. The following state government departments have oversight of Chain of Responsibility: Queensland - Queensland Transport New South Wales Roads and Transport Authority South Australia - Department of Transport, Energy and Infrastructure Victoria VicRoads Western Australia Department of Transport Northern Territory Northern Territory Transport Group Tasmania Department of Infrastructure Energy and Resources Commercial in Confidence Page 22 of 51
Existing Industry Specific Workforce Initiatives In an effort to assist the Transport and Logistics Industry, the Australian Transport Council, in November 2009, committed itself to establishing a collaborative mechanism to improve the connection and working arrangements between all levels of government and industry, through the development and implementation of a National Workforce Planning and Skills Strategic Action Plan (Strategic Action Plan). The National Workforce Planning and Skills Working Group established the Strategic Action Plan, in consultation with a cross section of industry stakeholders, to provide a foundation for this government and industry collaboration. The Network Performance Standing Sub Committee of the Standing Committee on Transport was given the responsibility for developing and facilitating the delivery of a detailed implementation plan based on comment and input received during the consultation phase, as well as providing regular progress reports. The Sub Committee consists of representatives from all State, Territory and Commonwealth Transport Agencies, with direct connection to the Transport and Logistics Industry at all levels. The strategic areas of focus were identified as: Collaboration and Coordination - to improve connections and working arrangements between industry and government agencies at the national and state/territory level regarding Transport and Logistics Industry workforce planning and skills issues; to identify an appropriate national mechanism for ongoing industry and government collaboration including the facilitation of a regular national industry workforce planning and skills forum. Skills Supply and Labour Market to identify and publish skills gaps and other relevant workforce information, data and statistics on the Transport and Logistics Industry; to undertake regular reporting including recommendations on Transport and Logistics Industry workforce planning and skills requirements. Education, Training and Qualifications to promote the uptake of nationally recognised portable qualifications to support transport and logistics supply chain efficiency; to ensure the national training system is responsive to the emerging skills demands of the industry; to support the continuing alignment of industry certification, licensing and qualifications with nationally recognised training. Careers to promote the coordination and development of industry career pathways information and resources; to promote and support national industry initiatives to support Commercial in Confidence Page 23 of 51
workforce planning and skills; raise awareness of the Transport and Logistics in schools, higher education and in the community Safety and Security to ensure the impacts of changes to safety and security policy and legislation on Transport and Logistics Industry workforce planning and skills are understood and addressed. 18 In October 2010, a National Transport and Logistics Workforce Planning and Skills Forum titled Securing a Skilled Workforce tor the Transport and Logistics Industry into the 21 st Century, was held in Canberra. It was hosted by the Australian Government Department of Infrastructure and Transport and pledged to: Improve connections and working arrangements between industry and government agencies at the national and state/territory level; and Identify an appropriate national mechanism for ongoing industry and government collaboration. The forum concluded a need to develop concrete actions on four other themes: Skills supply and the labour market Education, training and qualifications Careers Safety and security The outcomes of this forum and subsequent actions are strongly supported by this Skills Plan and it is recommended that resulting initiatives be implemented in Tasmania. The Transport and Logistics Industry Skills Council (the Skills Council) is one of 11 national organisations that have a key role in advising government on national industry skill requirements, and providing advice to industry around national workforce planning initiatives, training package development and the national vocational education training system. The Skills Council receives funding from the Commonwealth Government and attracts funding support through other Governments projects, non-government projects and industry sponsorship. It has a responsibility to liaise with a broad range of industry, government and 18 Australian Transport Council - Transport & Logistics: National Workforce Planning And Skills Strategic Action Plan November 2009 Commercial in Confidence Page 24 of 51
community key stakeholders including, business organisations, industry peak bodies, training organisations, unions, government departments and regulators. The Skills Council service provision centres on: Providing accurate industry intelligence to the vocational education and training sector about current and future skill needs and training requirements Supporting the development, implementation and continuous improvement of quality, nationally recognised training products and services, including industry Training Packages Provision of workforce planning services to industry Working collaboratively in research and policy projects focusing on the industry skill and labour requirements Developing learning and assessment resources to meet targeted industry training needs TLISC is currently scoping work on the continuous improvement program for work in the following areas: A steering committee is currently being formed and will start work in December 2010 on the creation of this unit/s of competency for Chain of Responsibility Several qualifications have been now been included in the Transport and Logistics Industry Training Package. Work is being done to introduce new units in Road, Rail, Aviation and Maritime. TLISC will be increasing activities in assisting employers in all industry sectors in regards to supporting the development of employee literacy and numeracy. Where organisations believe that productivity could be increased through improved literacy and numeracy, TLISC will provide advice and access to funded programs to assist organisations to achieve this. Broader Workforce Development Initiatives In November 2009, The Commonwealth Government announced it would release an additional 11,000 places from Productivity Places Program aimed at assisting individual enterprises increase their productivity as well as the skill levels and mobility of workers, by providing employees with opportunities to increase their qualification levels. Around $25 million was set aside for this phase of the program known as the Enterprise Based Productivity Places Program (EBPPP) and the Transport and Logistics Industry Skills Commercial in Confidence Page 25 of 51
Council has played an integral part in the application process. EBPPP is designed to increase the skills of existing workers in occupations on the priority occupations list. Qualifications will be part-funded from Certificate III to Advanced Diploma level. 19 Depending on the size of the company, the Department of Education, Employment and Workplace Relations funding will range from 50% (for firms employing over 200 staff) to 90% (firms with under 100 staff) of the total cost for training places. These places were made available to the following groups: Small to Medium Enterprises Professional Associations and Industry Bodies Enterprise and businesses with multi state operations 20 In Tasmania, out of the 39 business granted approval in the first round program (which ended in May 2010) there were no companies from the Transport and Logistics sector. This was despite an application oversubscription at a ratio of 6:1. In 2009, the Australian government adopted the Workplace Innovation Program to provide grant funding for innovative, one off projects that address workforce and skills development needs. For example projects could seek to identify and pilot ways to: lift the innovative capacity of Australian workplaces and workforces in a region or industry sector identify leadership, culture and management initiatives at the workplace level aimed at improving innovation, driving productivity and ensuring sustainability improve the responsiveness of the national education and training system to the modern labour market sustainably address labour and workforce skill demands in a region or industry sector develop high performance workplaces facilitate joint industry/rto pilots to develop innovative solutions to training problems being faced by industry and extend the learning to other sectors 19 Department of Education, Employment and Workplace Relations Enterprise Based Productivity Places Program 8 February 2010 20 Transport & Logistics Industry Skills Council National Enterprise Based Productivity Places Program www.tlisc.com.au 25/10/2010 Commercial in Confidence Page 26 of 51
develop, test and provide support tools, frameworks, blueprints and guidelines on best practice to help enterprises lift productivity through improved skills utilisation identify the gaps between workers existing skills and the skill needs of enterprises in a low carbon economy, and then demonstrate pathways to assist workers meet these skill needs in the transition to a low carbon economy 21 The provision of government funding through the Workplace Innovation Program gives industry the impetus to be innovative and initiate practical workforce and skills development projects. The onus is on both government and businesses to play a part in this regard, relieving businesses of the need to self-fund the one-off projects. The Department of Economic Development Tourism and Arts has developed the Better Workplace Resources Kit to assist Tasmanian small business with modern employment and workplace practices. They have also initiated the Employer of Choice Program to recognise and promote businesses that create workplaces of choice by being able to attract and retain workers successfully. The Youth Participation in Education and Training (Guaranteeing Futures) Act 2005, which became law in 2008, requires all young Tasmanians completing Year 10 to participate in education, training or full-time employment until they have turned 17. This provides industry with a point of leverage to influence the career pathways of young Tasmanians. Good examples of where the industry has attempted to influence career pathways are: In May 2010, the TFLC sponsored and arranged the Australian Trucking Association s (ATA) The Road Ahead exhibition. This was a tour of Tasmania schools by state of the art semitrailer to promote the Australian transport industry using interactive exhibits and structured class group programs. The Council also participated in a July 2010 Careers Expo at Rosny College to get prospective school leavers to start thinking about a possible career in the transport and logistics industry. A flyer on the Logistics Information and Navigation Centre (LINC) website was sent out to all human resource and recruitment companies statewide as well as high schools, TAFE and 21 Dept of Education, Employment & Workplace Relations Workplace Innovation Program WIP Feb 2010 http://www.deewr.gov.au/skills/programs/documents/wipguidelines.pdf Commercial in Confidence Page 27 of 51
higher education facilities. A LINC advertisement was placed in the three major Tasmanian daily newspapers during the 2010 year to bring attention to the freight industry. The site has a dedicated career section, detailing the different pathways and salaries of over one hundred different careers in rail, road, sea, air and services to the freight industry. 22 22 http://www.the-linc.com.au/home/tas/careers/careerbriefs/tabid/856/loc/tas/default.aspx Commercial in Confidence Page 28 of 51
6.0 CASE STUDIES The Industry Health Check Survey of February 2010, made recommendations that case studies should form part of an all encompassing industry Skills Plan to get a clearer understanding of issues relating to problems with recruitment, skills shortages and the use of competency standards and the national training packages in workforce development. These studies, documented below, highlight the positioning of training and workforce issues by businesses and illustrates the criticality of workforce development to industry but at the same time the lack of connection to the infrastructure of the vocational education and training sector. Where appropriate, interviewees own words have been quoted. TNT EXPRESS 23 Thomas Nationwide Transport was founded in 1946 in Australia. TNT Express is TNT s express delivery services unit, has operations in 65 countries, and delivers documents, parcels and pieces of freight to over 200 countries. TNT s training programs are all coordinated through an online portal, ExpressNET an internal training database that contains over 40 courses. Every course or module of this program relates to various tasks and functions required in the workplace. Each course contains sections that have either video or powerpoint presentations followed by a must pass knowledge test. Workers can undertake the course/test as often as they like so long as they pass. Training records are kept for every worker and reminders are sent when topic refreshers or retesting is required. TNT carries out Regulated Air Cargo Agent (RACA), Dangerous goods and forklift training. They are approved as a certifying body under the auspices of Department of Transport and Regional Services (DOTARS). Some courses e.g. forklift require one to one follow-ups and practical tasks. TNT sends worker test responses to DOTARs who audit them and thereafter provide certification. Each year all staff are sent a training manual and a National training calendar. Salaried employees can choose from this and discuss their attendance at six monthly performance reviews of their progress against position key performance indicators (KPIs). The review includes a look at training done, progress/actions against KPIs and training required. If the 23 Interview with Grant Pitchford - State Compliance Coordinator Commercial in Confidence Page 29 of 51
required training is not in the calendar, it can be sourced from other approved providers or on the open market. TNT s induction module covers job tasks, position attributes and experience. TNT does not require a national qualification for entry. They would like to recruit more young people, but have found issues with reliability and willingness to work. Licensing issues are not a barrier to employing young people for TNT. TNT does not face problems in recruiting and retaining staff. They have a highly structured, well planned and managed training regime that begins soon after recruitment and continues with the employee throughout their employment. The training is compliance based to meet client quality assurance standards as well as their own internal performance standards. SRT LOGISTICS 24 Formerly known as Statewide Refrigerated Transport, SRT Logistics is a Tasmanian, family owned trucking service that transports perishables. They operate in Tasmania and across the Bass Strait into Victoria. They have been in the business for over 20 years. In the 5 years Jo has worked for the company, it has doubled in size and currently has a workforce of 177. SRT specialise in clean pallet food freight dealing with big firms such as Inghams and Coles and Woolworths. As a result, they have to adhere to stringent compliance on food safety as determined by the contracting company. SRT has a great relationship with Pat Kearney and Brett Brown of EDA RTO. Brett is a former manager of SRT and his internal knowledge has benefited the relationship they have with this RTO. Initially, EDA was putting over 60 staff through existing worker traineeships. SRT was not overly happy with the content and assessment provided by the RTO. This was overcome by the development of workbooks for every unit across the organisation. The workbooks map to units of competency but are based on real workplace tasks and with workplace specific context and content. Refrigeration aspects of the business have been added to the range of context and incorporated into the materials as appropriate. This gives SRT significant confidence that what is being trained and assessed fits their requirements exactly. Workbooks provide required flexibility because training can be done at any time. The emphasis of the workbook 24 Interview with Jo Tye - Human Resources/Compliance Manager Commercial in Confidence Page 30 of 51
is learning rather than assessing. The workbooks are assessed in-house by SRT staff and validated by third party assessors. All salaried staff are offered applicable national certificate qualifications as an outcome of completing workbooks. Position descriptions show desirable applicable qualifications but these are not mandatory for employment at SRT. SRT places a big focus on customer service and recruits on this basis but the down side is that these skills do not always compatible with good truck driving skills. SRT does not engage its staff under apprenticeships but does offer national certificates as outcomes of training. This has significant quality assurance outcomes for SRT i.e. 18% of the workforce hold a Certificate III or higher in Transport and Logistics with a further 19% at various stages of course progression. The formal credentialing of the workforce is perceived as highly favourable when tendering for work with large National companies. The employment of young people is not a conscious issue for SRT. They have had predominantly bad experiences with young people 50% related to reliability and work ethic and 50% to the capacity of management/supervisors to look after young recruits. SRT Logistics have developed an exemplary relationship with a Tasmanian RTO. This relationship has been built over several years and the core to its success is the contextualisation of national training material and standards to enterprise specific requirements. They use workbooks that are AQTF compliant for training purposes and use trainers with extensive industry knowledge. The underpinning of all training effort to national standards and qualifications is a win win situation for SRT it provides for a quality workforce and assists in procuring new business. They do not have difficulties recruiting or retaining staff. FRESH FREIGHT 25 Fresh Freight is a privately owned refrigerated transport company founded in 2003. They employ over 50 staff and provide freezer, chiller and dry transport services to Tasmania and to all the other states. They have two depots in Tasmania and one in Victoria. 25 Interview with Dean Hart - Managing Director Commercial in Confidence Page 31 of 51