A Consortium Approach to Apprenticeship Training
by Ron Tuff, HSTAC Secretary
As the baby boomer generation retires, replacing our skilled trade workforce will be one of
Canada’s greatest human resources challenges, but industry need not take on the work alone.
A consortium of regional employers, with representatives from their local unions, sector council,
school board, college/training institution and provincial government apprenticeship office can
ease the burden. The apprenticeship training process can be managed by developing worldclass training practices that advance the success of employers and skilled trades while meeting
the demand in the community.
Attrition planning is an important challenge facing almost every industry and every region in
Canada today. Nowhere is the challenge greater than in the area of replacing skilled
tradespeople that will be retiring in the coming decade. The 2011 Human Resources in the
Canadian Steel Sector 1 report commissioned by the Canadian Steel Trade and Employment
Congress (CSTEC) indicates the principal drivers of change in the steel sector are globalization,
demographics and technology. These drivers will shape human resources planning priorities
over the next decade. On a national basis, the steel sector will need to hire an average of 1,000
to 2,000 skilled trade workers each year over the next five years. The second challenge will be
the knowledge transfer from older workers to younger workers.
While there is a need to initiate and/or expand apprenticeship programs, many workplaces both
inside and outside the steel industry are reluctant to begin apprenticeship programs because of
the perceived costs and risks associated with apprenticeship programs. These include the
administrative resources required to initiate and run training programs, the costs of
apprenticeship, the fear of losing apprentices to poaching, etc.
1
O’Grady, J. &, Warrian, P. (2011) Human Resources in the Canadian Steel Industry: Final Report. Prism
Economics and Analysis, Toronto. This study is available at www.cstec.ca.
The concept of a regional consortium to address these concerns was first conceived in 2000,
when the pan-Canadian approach to apprenticeship training was introduced. The Hamilton
Co-op Apprenticeship Pilot Project created a consortium referred to as the Steel Industry Trades
Replacement Program (SITRP). Representatives from Dofasco, Stelco Hamilton, Stelco Lake
Erie, United Steel Workers, Mohawk College and the Ministry of Training Colleges and
Universities (MTCU) met together as stakeholders, with common apprenticeship training issues.
The initial purpose of the consortium was to develop a Co-op Diploma Apprentice (CODA)
model and to act as a sponsor to register college students to apprenticeship Training
Agreements. The employers agreed to a common co-op wage rate to eliminate any monetary
competition. SITRP sponsorship relieved the employers from a commitment to hire the co-op
apprentices as full time employees upon their college graduation. Those that were hired full-time
were transferred from the consortium as their sponsor to the employer as their sponsor, to
complete their apprenticeship.
The consortium pilot project resulted in approximately 300 apprentices being registered in the
steel industry in the Greater Hamilton region, most of which completed their apprenticeships.
Even more important, the consortium established a framework that could be adapted to allow
local workplaces to initiate and/or expand their apprenticeship programs in a way that minimized
risks.
Due to economic factors in early 2007, many of the co-op student work placements were
cancelled and SITRP meetings were suspended. Fortunately, other local employers were able
to provide work placements during the recessionary times. Reacting to the adverse economic
conditions, CSTEC and the steel industry, with the assistance of Human Resources and Skills
Development Canada (HRSDC), developed the Hamilton Apprenticeship Consortium proposal.
Hamilton Skilled Trades Apprenticeship Consortium
Building on the experience of the SITRP, the new organization was named the Hamilton Skilled
Trades Apprenticeship Consortium (HSTAC). Council Members felt it was important to
emphasize skilled trade apprenticeships rather than the steel industry and open membership to
other community manufacturers. HSTAC’s governance document guides the operation of the
consortium with a shared understanding of the relative roles and responsibilities of each of the
stakeholders and the by-laws that govern the consortium.
As a volunteer stakeholder council, the members all have
permanent jobs within the community. HSTAC has no
government financial support, although CSTEC, which helped
establish the Consortium, has partnered with the Council when
promoting the skilled trades as an occupation at career fairs,
schools and college events. The opportunity to reach out to
senior public school students is also important as they consider
their high school curriculum choices. A program which includes
Grade 12 English, Math and Physics are all recommended
prerequisite courses. The Specialist High Skills Major and the
Ontario Youth Apprenticeship Program in high schools are also
experiential pathways into apprenticeship training.
HSTAC was officially registered as a MTCU apprentice
sponsor on July 7th 2009 and concentrates on apprenticeships
identified in the Apprenticeship and Certification Act 1998
(ACA). The priority voluntary trades include:
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429A
421A
442A
433A
447A
430A
456A
“Arcelor Mittal Dofasco was one
of the original employer
stakeholders in the Hamilton
Skilled Trades Apprenticeship
Consortium. During the past
decade the community group
has worked together to promote
the value of a skilled trades
career through apprenticeship
training, which will ensure we
are able to fulfill our future
needs for highly qualified trades
people”
Dave Suess – HR-L&D Senior
Specialist Apprenticeship,
Maintenance & Reliability
Programs, Arcelor Mittal Dofasco
General Machinist
Heavy Duty Equipment Technician
Industrial Electrician
Industrial Mechanic Millwright
Instrumentation and Control Technician
Tool & Die Maker
Welder
An “Apprentice Sponsor Terms & Conditions Agreement” was drafted and approved, which
clarified that HSTAC was a sponsor, not an employer. As such, HSTAC cannot sign off skills in
the MTCU Training Standards, however HSTAC agrees to remain the sponsor on record for a
full year after graduation. At that time, if the apprentice has not been officially transferred to a
new employer, the apprentice is notified of the change and the apprenticeship remains active.
Apprentices agree to keep their personal information up to date and HSTAC maintains a
spreadsheet of all registered apprentices, tracking their progress. The Consortium may be able
to help connect employers with unemployed graduates hoping to complete their hands on
experience. Using these metrics, our goal is to increase the number of Certificate of
Apprenticeship and Certificate of Qualification completions in the community. In 2010, HSTAC
registered 121 apprentices.
HSTAC Benefits
Acting as an apprentice sponsor is a major benefit for students. Experience has shown that
employers, especially small or medium ones, are more likely to get involved in apprenticeship if
their first step is limited to offering work placements to an already registered apprentice. Work
placements are typically 4 -12 months in duration, but are not a commitment for full time
employment. Once an employer recognizes the benefits of apprenticeship first hand, the
objective is to officially transfer the sponsorship to that employer, who is then eligible for other
government tax credits and benefits.
Apprenticeship registration is an important qualification on a resume. It also provides an
opportunity to access the $2,000 Canada Apprenticeship Incentive Grant and the $2,000
Canada Apprenticeship Completion Grant as well as funds to purchase tools. These financial
supports during the CODA program along with Canada Employment Insurance during the fourth
semester at college all assist the struggling apprentice.
Membership in the HSTAC Council provides a voice, leadership and an opportunity to solve
common apprenticeship issues, as well as access to talented and committed apprentices to
meet future workforce needs. Both the federal and provincial governments provide employers
with financial assistance including the $3,000 maximum Ontario Coop Education Tax Credit, the
$40,000 maximum Ontario Apprenticeship Training Tax Credit, the $2,000 Ontario Employer
Signing Bonus and the $2,000 Canada Apprenticeship Job Creation Tax Credit for Red Seal
Trades.
So what makes the Hamilton Skilled Trade Apprenticeship Consortium different? Our Mission is
to build a better future for our community by advancing the success of employers and skilled
trades. Our Vision is to foster world-class training practices that meet the demands for skilled
trades in our community. Simply put, to put a process in place today that will provide sufficient
highly qualified trades people in tomorrow’s workplaces.
Council’s Next Steps
This managed approach to the apprenticeship process recognizes the balance between the
number of apprentices and the number of employer apprenticeship opportunities. The Council
regularly discusses the number of work placement opportunities and the number of students
interested in a coop work placement.
One of Council’s mandates is to meet with college instructors to discuss, review, advise and
recommend changes to the Technician Curriculum. The in-school training lectures and labs
schedule is compared to the minimum hours mandated by the MTCU. The specific course
content and hands-on experience can be aligned with on the job examples. With a better
appreciation of the curriculum, employers can then tailor their work placement experience with
the apprentice’s knowledge and skills.
It also recognizes that not every employer can provide training experience in all the related
Training Standard skill sets. Our goal is to consider what skills can be taught by each employer
and determine if full time apprentices can be rotated on short term work experiences to
complete their Certificate of Apprenticeship.
Many new, small- or medium-sized employers no longer have the staff to effectively plan and
administrate an apprenticeship program. HSTAC has developed tools such as new apprentice
checklists, daily logs, competency analysis spreadsheets, interview forms, evaluations and sign
off sheets to assist with training program management both for new and experienced
employers. A working group is also to developing a comprehensive roles and responsibilities
DACUM.
Another concern is ongoing skilled trade training and upgrading. Employers often find that they
are unable to release the minimum number of participants to attend expensive training sessions.
A collaborative event could address this concern. Subtle differences can be addressed by the
individual employers.
The Future
Organizing a local apprenticeship consortium in your community may be the perfect opportunity
to connect stakeholders together to discuss training issues. In addition to understanding each
other’s differences, it will also identify common solutions that can be shared effectively.
Employee retention is a major employer concern considering the resources required to develop
a tradesperson. Some may consider leaving to pursue better opportunities. The consortium may
not be able to prevent this, but can offer a managed approach to the apprenticeship process,
which reduces training barriers, increases the Certificate of Qualification completions and
results in more satisfied employees.
10 Steps to Developing a Consortium
1. Visit to the local college and/or training institution(s) to discuss the training programs
available, the schedule and availability of students for work placements. This will vary by
the trade’s requirements and curriculum.
2. Contact local employers and their union representatives to determine their interest in
providing apprenticeship work placement experience. During a follow-up site visit, discuss
the employer’s responsibilities and possible membership in the consortium.
3. If these discussions indicate a sufficient interest to create a consortium, develop a
governance document indicating the organization’s overall goals, roles/responsibilities and
consortium by-laws. Share this with the local stakeholders and ask for their input.
4. Visit the provincial apprenticeship office to discuss the consortium’s “Sponsor Agreement”
registration. A few representatives from industry and the college/training institution should
be invited to show their support.
5. Each Council Member is required to complete a Consortium Council Member Form. The
information from the forms can also be used to create a Consortium Contact List. A copy of
each member’s Consortium Council Member Form must also be submitted to the provincial
apprenticeship office during registration. Ongoing changes to the Council and a copy of the
form must be provided to the Ontario Ministry of Training Colleges.
6. Employers providing apprenticeship training must meet the requirements of the provincial
government and verify they are able to meet the training standards. The employer cannot
receive any tax credit unless they are registered and the apprentice is officially transferred
from the consortium to the employer’s sponsorship.
7. Schedule a meeting of all the Consortium Council Members (employer representatives,
local union representative(s), college and/or training institution representative(s), provincial
apprenticeship office to elect a Chair and Vice Chair. A secretary should also be appointed
to provide administrative support as required.
8. The first order of business for the Consortium Chair and Secretary would be to file a MTCU
Sponsor Agreement on behalf of the new consortium. This officially recognizes the
consortium as a sponsor for a specific trade code(s). The Consortium Chair and the
Secretary are recognized as the Sponsor’s Signing Authority. At least one must be present
during apprenticeship registrations.
9. A facilitated discussion on the Vision, Mission and Values along with strategic plans and
tactics should begin as soon as possible. All Council Members should be invited and
encouraged to attend. Although this may require several brainstorming sessions, it is very
important that all parties clearly understand the Consortium’s goals and refer back to them
when making difficult decisions.
10. Keep the lines of communication open. Many Council Members joined the Consortium
because they needed help with apprenticeship training. An issue is often a common
problem that can be solved with the help of others.