NSW Utilities and Electrotechnology ITAB Ltd.
Ground Floor, 68 Campbell Street, Surry Hills NSW 2010
ABN: 49 073 767 5
Tel: (02) 9280 2986 Fax: (02) 9211 6870 Email: nswueitab@ozemail.com.au
Review of Skills base in NSW and the Future
Challenges for Vocational Education and Training
Independent Pricing and Regulatory Tribunal
PO Box Q290
QVB Post Office NSW 1230
6th March, 2006
Dear Chair and Members,
The NSW Utilities & Electrotechnology Industry Training Advisory Bodies (NSW
U&E ITAB) is the industry-based organisation supported by NSW Department of
Education and Training to provide advice on the training arrangements, products and
resources required by industry. The NSW U&E ITAB’s board comprises employer
and employee representatives from the water, gas, electrotechnology and electricity
supply industries. While this submission is concerned with the impact of VET in
NSW on all the qualifications under its scope, the immediate concern for the NSW
U&E ITAB is training for Electrotechnology and Electricity Supply.
In making this submission, the NSW U&E ITAB asks the panel to consider the effects
of continued market reform of the VET system in relation to trade training. NSW
relies on TAFE to train and qualify tradespeople, and NSW TAFE needs appropriate
investment by government to support this role. While there has been some opening up
of the training market, it is still imperative that TAFE as the primary provider of
apprentice training is properly funded and supported to ensure that trade skills can be
delivered where they are needed, when they are needed. As skills shortages in the
trades affect everyone in NSW, government should work with and support industry
and public and private registered training organisations (RTOs) to fund, monitor and
plan for a long term skilled workforce.
Skills Shortages
EE-Oz Training Standards (the DEST endorsed Industry Skills Council for
ElectroComms and EnergyUtilities) recently completed a report on the ‘Skills
Requirements of the EnergyUtilities Industry’. The reports highlights a number of key
issues currently faced by the EnergyUtilities industries including aging and
increasingly stressed infrastructure; urgency to invest in new and upgraded
infrastructure requirements; rising consumer demand; aging skilled workforce; current
and emerging chronic skills shortage; and a regulatory price framework that
influences investment in capital expenditure and operation expenditure which directly
links to recruitment, retention and re-skilling issues.
In relation to the current EnergyUtilities workforce across Australia the report by EEOz Training Standards found:
• there is a shortage of more than 1000 workers in the electricity sector;
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poaching of skilled workers is occurring between companies and across
countries leading to an unstable skills base;
there is a current shortage of mentors to support new entrants;
there is a current shortage of trainers, training facilities and training funds;
some overseas recruitment is being used as a "short term" fix, and there are
limited overseas workers with comparable skills available to recruit;
the current skills shortages are across all vocational categories: professional,
paraprofessional, trade (with job vacancies in this category very high) and
other related jobs, including non trades such as, administrative support staff
and non-electrical professional and paraprofessional workers.
DEWR National and State Skill Shortage Lists Australia – 2004 (NSW) reported State
wide shortages in the following areas:
Electrician: shortages are apparent across most sectors including commercial and
industrial work, domestic building maintenance, communications cabling and
electrical fitting.
Refrigeration and Airconditioning Mechanic: shortages are apparent across most
sectors, but especially for commercial airconditioning in Sydney.
Electrical Power Line Tradesperson: shortages are evident in maintenance and new
supply work in both the power generation and distribution sectors.
Electronic Instrument Trades: shortages are especially being experienced for
positions requiring highly specialised experience in specified types of PLCs and
control systems and positions requiring dual qualifications in electrical and
instrumentation work.
NSW TAFE
There are a number of issues arising from the operation of the current NSW TAFE
system that are impacting on trade training outcomes. Industry reports that some
TAFE institutes are consistently failing to meet industry’s needs, and are not willing
or able to offer the training in various electives and specializations when it is required.
This is evident even though there are skills shortages in trade areas, and government
and industry are attempting to correct these shortages by encouraging more people to
take up training. Trade training in regional areas is particularly problematic, with
delivery being reduced in regional areas.
As NSW DET’s ‘preferred training provider’ TAFE has a virtual monopoly on trade
training, with private RTOs unable to compete against TAFE institutes unless the
local TAFE confirms that it cannot or will not run a course. For the efficiency of trade
training delivery and open competition, the playing field should be leveled with
tenders called from public and private RTOs by NSW DET to run relevant courses.
There needs to be more flexibility in the User Choice system and if TAFE can’t
deliver in an area due to teacher shortages or class numbers, then the course needs to
be opened up at short notice. Trainees are currently missing out on jobs because
private RTOs are not able to get permission to deliver courses in a timely manner.
While delivery of trade course core modules is not currently problematic, there is a
need for more regular review of the trade course to ensure that it is in line with what
industry needs. This will improve output, and allow further investment training for a
more efficient and effective labour force.
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In order to ensure the sustainability of a skilled trade workforce, the NSW
government also needs to support more post trade training. NSW DET should fund
training for existing workers so that employers and employees have incentives to
upgrade skills sets and ensure they are able to use new technology when it is
introduced.
The NSW U&E ITAB asks the tribunal to note that the lack of trade teachers is now
critical, with courses in some areas not able to be delivered because of teacher
shortages. It is widely known that over fifty percent of electrical trade teachers
currently working in TAFE will be retiring in the next 5 years. Casualisation of staff
is also causing difficulties for trade training, with trade teachers not getting
appropriate incentives and remuneration. Core trade training for Utilities &
Electrotechnology apprentices needs to be face to face, and the quality of training is
severely impacted by a lack of available teachers.
The NSW U&E ITAB submits that TAFE management has to take responsibility for
funding resources, lesson plans and professional development for teachers as a
priority, and allocate appropriate funding for these, including administrative support
so that teachers can be utilized where they are needed. TAFE needs to ensure that
teachers with trade training expertise are spending the majority of their time in face to
face contact with students. TAFE institutes and management should ensure that these
trade teachers are supported with enough administrative assistance so they are able to
keep their paperwork and reporting up to date, and maintain appropriate contact with
students and employers.
TAFE teachers and curriculum staff have advised the NSW U&E ITAB that TAFE
will not allocate funds or teacher hours for curriculum and resource development.
This is hugely problematic when NSW DET is no longer funding resource
development by independent industry organizations. It means resources will not be
developed as industry have advised they will not pay for the development of tools
used by TAFE. The NSW U&E ITAB suggests that government investigate the
possibility of establishing a university press style publishing house for the
development and publication of training materials.
In order to ensure the continued supply of skilled trades people in NSW, TAFE needs
to:
• ensure that only those people with a valid Contract of Training are enrolled in
Trades courses.
• advise employers in a timely manner of apprentice attendance and results of
training
• more closely monitor the on-the-job training of apprentices in EnergyUtilities
by using a nationally recognized ‘profiling’ system, such as the one developed
by EE-Oz Training Standards specifically for and by the industry
• be more flexible with delivery of trade courses in regional areas including
sending teachers for short periods to areas of needs (as private RTOs do),
rather than making trainees travel
• be more flexible in the hours of face to face teaching
• ensure that the NSW TAFE Manufacturing, Engineering, Construction &
Transport Curriculum Centre is able to mandate and monitor procedures and
policies for relevant trade training at all NSW TAFE institutes.
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The NSW U&E ITAB understands that TAFE is NSW DET’s preferred employer,
and believes that this situation appears to be contributing to TAFE’s virtual monopoly
and inflexibility in delivering training for certain types of trade. Private RTOs need to
be allowed to deliver more trades courses under the ‘User Choice’ system than is
currently the case to ensure that there is real competition in the marketplace.
The NSW U&E ITAB has had reports from industry and apprentices that the skills
TAFE is teaching are not relevant to the work they are required to do on-the-job, nor
do they align directly with nationally endorsed competency standards. To ensure the
stardard of delivery of trade training there needs to be more capital expenditure and
long term strategic investment in TAFE’s training facilities to ensure that they are
kept up to date. The NSW U&E ITAB also recommends that each TAFE Institute
establish its own Electrical Board to keep industry in touch with TAFE and vice versa,
comprising of teachers, employers and associations, as a formal mechanism to ensure
that TAFE training is keeping up with changes in industry. Regular professional
development needs to be a priority for trade teachers and scheduled industry visits
should be mandatory.
Employers in the Utilities and Electrotechnology industry have advised that TAFE
fees that are not problematic, and that industry is willing to pay a fair market price for
its training needs. However, if the fee for service model is to be fairly applied, there
must be openness and accountability within the training market, so that employers are
able to engage an RTO based on their ability to deliver the service, not because there
is no other choice because of restrictions on competition.
Other factors
Other problems with trade training are more systemic and entrenched within the
industrial relations system. For example, the current apprenticeship pay structure is
based on a system for 15-16 year old school leavers and needs to be reviewed. Current
pay rates do not offer a liveable wage for adult apprentices, and competency based
pay rates need to be linked to results of ongoing testing. Suggestions to encourage
adults to take up electro apprenticeships such as reducing the rate of tax paid by older
apprentices (over 21), and employer incentives, such as having workers comp paid by
the government for trade apprentices in skills shortage areas to encourage employers
in small-to-medium enterprises to take on trainees.
While there are definite benefits to a national training framework, the processes need
to be further refined, particularly between DEST and STAs. There has been too much
politicization of the training agenda, which means that we are not training enough
people with the right skills to ensure that Australia retains its place in the highly
competitive global marketplace.
NSW is currently facing high unemployment rates compared to the rest of Australia,
and an economic downturn is predicted. Fluctuations in building and construction
have long term implications for trades such as the Electrical trade, which are already
suffering skills shortages. Some RTOs are already reporting that employers are unable
to place apprentices in work situations that will give them enough scope to complete
their training. This situation will only worsen as the market contracts. Small to
medium employers are the most reluctant to take on apprentices, yet this is the sector
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where qualified trades people are most needed. The NSW U&E ITAB has also been
advised by industry that OH&S requirements and compliance issues are affecting the
willingness of small-to-medium sized employers to take on apprentices.
While in the past state owned corporations trained the bulk of energy trade
apprentices, this is no longer the case. To meet the constant demands of maintaining
the states infrastructure and services there needs to be incentive for private sector
uptake of this role and long term investment by the government in training skilled
workers.
Government projects have a 4:1 ratio of apprentices across all trades, but this policy is
not enforced or policed, which is exacerbated by the increasing number of contractors
on government worksites. The NSW U&E ITAB recommends that the 4:1 ration
policy be regularly monitored, and that the NSW Government ensure government
contractors employ the appropriate number of apprentices directly or via a Group
Training Company.
Encouraging Uptake of VET
The NSW U&E ITAB submits that there needs to be better promotion and funding of
pre-employment programs in NSW, and that NSW DET needs to refine the funding
process. Currently there is not enough lead time between funding being approved and
the start date of DET funded courses at Electro Skills and DET needs to ensure
realistic timelines are able to be followed and programs can be properly promoted.
The NSW Government and DEST also need to have an appropriate program for
funding advertising and promotion of career days, rather than the current ad hoc
approach.
ECA Training Pty Limited (trading as NECA Group Training), a company
incorporated in New South Wales and wholly owned by the National and Electrical
Communications Association – New South Wales Chapter (NECA N.S.W.), reported
from a recent recruitment drive, that only 25% of applicants were suitable candidates.
School leavers need to be made aware via a consolidated, supported marketing
campaign, that they require good maths and English skills in order to be trade
apprentices, rather than seeing trades as an alternative career for ‘dummies’ who are
not able to achieve high enough marks for university entrance.
The Utilities & Electrotechnology ITAB and industry are supportive of the proper
implementation of Vet in Schools for Electrotechnology. Vet in Schools should not be
the sole domain of NSW TAFE and private RTOs (ie ElectroSkills) should be able to
run VET in Schools programs. NECA reports that its employers are keen to take on
school-aged trainees through VET in Schools. One central industry body (eg the
ITAB) should be funded to coordinate a comprehensive VET in Schools program for
the utilities and electrotechnology industry. For such a program to be effective and
lead to employment outcomes, there must be clear identification of what students will
receive as evidence of vocational trade skills outcomes.
Appropriate industrial instruments also need to be developed including paid
attendance at technical training for part-time apprentices. There will also need to be
proper monitoring of the on-the-job component.
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Auditing of RTOs
The key to strengthening trade training and ensuring quality outcomes is to ensure
there are appropriate checks and balances on all training providers. Public and private
RTOs should be treated equally to promote effective competition between training
providers, as agreed by The Council of Australian Governments (COAG) at its
meeting in February 2006. Under the agreement reached by COAG the Ministerial
Council for Vocational and Technical Education is to report to COAG on the progress
of competition between training providers under the new vocational education and
training (VET) legislation and arrangements.
The NSW U&E ITAB supports the COAG initiatives to ensure the quality of trade
training in Australia, including the accelerated implementation of an outcomes-based
auditing model for registered training organisations. COAG agreed that Australian
Quality Training Framework (AQTF) standards will be reviewed and amended to
place a stronger focus on quality skills outcomes, and that an outcomes-based auditing
model for registered training organisations developed to support the new standards to
ensure national consistency of the application of the revised AQTF standards by
States and Territories.
All RTOs (public and private) delivering training for the Utilities &
Electrotechnology industry must regularly audited by external subject matter experts,
to ensure they are compliant with all national standards. These audits must be on site
and not ‘desk audits’. Audits should focus on the capability of the RTO to deliver, and
the NSW U&E ITAB submits that the NSW VETAB’s Quality Assurance Branch
should be properly funded and empowered to ensure that both public and private
RTOs are compliant. Findings of non-compliance should be made available to the
relevant NSW ITABs so that industry can act accordingly. Furthermore, registration
and auditing of relevant public and private RTOs should involve the ITAB as the
independent industry endorsed subject matter experts.
The NSW U&E ITAB also asks that TAFE establish up a central online
apprenticeship database so that employers monitor employee details and results via a
secure log in. Currently there is often little communication between TAFE teachers
and employers, which leads to lag time between the identification of an apprentices
knowledge gap and the ability of the RTO and/or employer to act to correct the need.
The industry has further concerns that with the DEST funded Australian Technical
Colleges, will have a separate reporting régime and will not deliver training in
consultation with industry. There NSW government must ensure that any ATCs
located in NSW are monitored and audited in line with other public and private RTOs.
Funding
There are a number of areas within the vocational training system that are
underfunded or poorly resourced. While the NSW U&E ITAB acknowledges that
these are systemic issues that cannot be easily corrected, there are a number of urgent
priorities that should be addressed if the government is serious about addressing trade
skills shortages.
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Accommodation for apprentices needs to be properly financed. The current level of
funding means that apprentices living in remote and regional areas (where skills
shortages are particularly severe) are particularly disadvantaged. These apprentices
have to do their TAFE training in block periods and are only paid $28 per day as an
accommodation allowance. This figure needs to be reviewed, and where possible the
preference should always be to send a teacher to the trainee rather than the other way
around.
Funding also needs to be made available to update trade training facilities at TAFE
and for industry skills centres in areas of needs. Funding for trades training in NSW
needs to be reviewed and brought into line with that of other states. NSW is lagging
behind in investment in skills. Funding should be priorities to traditional trades
apprenticeships, especially in skills shortage areas, rather then traineeships and
courses that do not provide trade skills.
All RTOs delivering trade training (including TAFE) need to be audited by subject
matter experts to ensure they are delivering National Training Packages qualifications
against National Competency Standards. There is also a need for State ITABs and
Industry Skills Councils to be more involved in the registration of private RTOs.
These bodies are the industry appointed, independent experts on training for their
industries and should be referred to as the primary source for information about
training in their respective industries by STAs.
The NSW U&E ITAB recommends additional funding be allocated by government to
trade training and suggests the following:
• More appropriate allocation of current funding to traditional trades and skill
shortage areas that provide long term employment outcomes
• Raise more revenue for training by establishing a Construction Industry
Training Fund. In other states and territories a levy is placed on construction
and the money raised is then available to assist employers to take on
apprentices in the skills shortage areas associated with construction. While this
levy may not initially be popular with industry, it will ensure that a skilled
workforce is maintained to allow continued construction in NSW.
• Funds raised from the levy should also be made available to conduct preemployment classes, post trades classes, to expand the skills sets of existing
workers, train additional teachers and assist group training companies to
employ more field officers as they are in other states and territories.
• Additionally, funding could also be used to increase the living-away-fromhome allowance for apprentices and to pay for accommodation and travel and
to support trade training through funds for curriculum and learning resources,
teacher training and the financial support of ITABs, group training companies
and ACPET.
Trade training must continue to be the core of NSW TAFE’s service, and apprentice
training must be its priority. If delivery of trade training is not cost effective for NSW
TAFE’s business model, then trade training for skill shortage areas at TAFE be
subsidized by government. If NSW cannot rely on TAFE to train skilled trades
people, then there are grave implications for the future of NSW, particularly in the
areas of maintenance and delivery of essential services, energy, water and
construction.
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Thank you for taking the time to consider this submission. Please feel free to contact
me if you require further information or clarification of the NSW U&E ITAB’s
recommendations.
Yours sincerely,
Naomi Dinnen
Executive Officer
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