EMPLOYER GUIDE: HIRING AN APPRENTICE Is it the right thing for your company. APPLICATIONS MANAGEMENT CONSULTING LTD. Contents Introduction..................................................3 Employer Responsibilities...............................4 5 Good Reasons to Hire an Apprentice...........5 Government Financial Incentives.....................7 Getting an Apprenticeship Program Started.....8 Alberta’s Occupational Outlook......................9 Occupational Demand and Supply Chart........10 List of Trades..................................................11 Employer Awards...........................................12 The Alberta Apprenticeship Forum..................14 APPLICATIONS MANAGEMENT CONSULTING LTD. 2 Does Hiring An Apprentice Pay Off? Apprenticeship training has been around for hundreds of years, passing on valuable knowledge and trade skills from one generation to the next. Hiring an apprentice is an investment in the future of your business and the economy. (Source: Government of Canada’s Sector Council Program) Across Canada skilled trades people are high in demand. One third of Canada’s workforce will retire by 2030. This means competition will get tough for employers looking to attract and retain good workers. Chances are if you own or manage a business that requires skilled tradespersons you are finding it harder than it used to be to fill these positions with people with the right mix of skills and experience. This employer guide will explain how apprenticeship in Canada works, the benefits to your company in hiring an apprentice, what it takes to create an apprentice position and how to access government financial incentives when hiring an apprentice. What is Apprenticeship? (Source: Government of Canada’s Sector Council Program) ✓ Apprenticeship is a post secondary education that allows people to learn a particular trade or vocation by combining technical training and instruction and on-the-job training ✓ Depending on the trade, an apprenticeship period will range from two to five years with the average taking about four years to complete ✓ After completing the apprenticeship training the individual can obtain full journeyperson status APPLICATIONS MANAGEMENT CONSULTING LTD. 3 Who pays for it? (Source: Industry Training Authority) ✓ As the employer you are responsible for As an employer when hiring an apprentice you are responsible for:(Source: Industry Training Authority) paying the apprentice’s hourly wage as they train on the job. ✓ The apprentice is payed at a portion of the trained rate of pay for the occupation. This increases as the apprentice completes each level of the program ✓Hiring and training the apprentice ✓Registering with the ITA ( Industry Training ✓ The apprentice is responsible for paying for ✓Tracking and reporting the apprentice’s Who is in charge? Authority http://www.itabc.ca) progress ✓Allowing the apprentice to be absent during their in class technical training ✓Evaluating and recommending the apprentice for certification their tuition and books (Source Industry Training Authority) ✓ The content of both training and instruction is government regulated and must meet provincial trade standards. This is to ensure everyone gets the same instruction ✓ You and your apprentice will need to sign a contract specifying the length of training, the technical training required, the skills to be learned and the wages to be earned APPLICATIONS MANAGEMENT CONSULTING LTD. 4 Five good reasons to hire an apprentice: Source: Canadian Apprenticeship Forum Reason 1: Reason 3: By having your most talented journeypersons as mentors you are guranteeing that their knowledge and expertise is transfered to your next generation work force. Employers receive an ROI of $1.47 for every $1 they invest in apprenticeship training. Reason 4: Reason 2: Apprentices can be trained to meet the unique needs of your business. They are immersed in your business’s culture and environment while learning the specific technology you use on a day to day basis. At the end you have a specialist who knows your business and your customers. Employers who have self reported home grown journeypersons are: ✓More Productive ✓Make Fewer Mistakes ✓Have better Health and Safety Training Records APPLICATIONS MANAGEMENT CONSULTING LTD. 5 Reason 5: Apprenticeship is cost effective. Temporary foreign workers cost employers ✓between $5,000 and $20,000 per person ✓ Apprentices show a positive net return in most industries by the second year You may also be eligible for tax credits or ✓other incentives (see page 6 for details) Apprentices learn your business first. The way you do things and the unique specialized skills that best serve your business. Co st s Apprentice’s Wage: increases as Benefits Increased productivity and revenue the apprentice becomes more experienced Journeypersons time to train: Improved product quality and decreases as the apprentice customer satisfaction becomes more experienced Time to administer training plan Competitive edge from knowing the and confirm training documents latest technology Enhanced skills of all staff Improved health and safety Profitable return on training investment Reduces employee turnover costs APPLICATIONS MANAGEMENT CONSULTING LTD. 6 How to Access Government Financial Incentives When Hiring an Apprentice The Canadian government realizes that apprenticeship is an important part of the economy and therefore helps employers offset costs through incentive programs. (Source: Canadian Federation of Independent Business) ✓ Apprenticeship Job Creation Tax Credit (AJCTC): After hiring an eligible apprentice you can claim a non-refundable tax credit. This tax credit is equal to 10% of the salaries and wages payable to the apprentice in respect to employment with a maximum credit of $2,000 for each apprentice ✓ Tradespersons and Apprentice Mechanic Tool Deductions: The cost of eligible tools purchased to earn employment income as a tradesperson and eligible apprentice may be tax deductible ✓ Apprenticeship Incentive Grant (AIG): Once an apprentice has completed their first or second year/level they can apply for a taxable cash grant of $1,000 per year up to a max of $2,000 APPLICATIONS MANAGEMENT CONSULTING LTD. 7 Getting An Apprenticeship Program Started in Your Company Once you have decided that it is the right fit for your company to hire an apprentice, finding and hiring the right one can still be challenging. (Source: Government of Canada’s Sector Council Program) 1. Decide what sort of skills your business needs and what sort of training you can provide. Before you start looking for an apprentice clearly define what sort of role you are wanting them to fill. What types of jobs do you want them to be carrying out and what sort of skills will they need. Make sure that you have the necessary tools and safe facilities for training this trade. After this talk to your staff and identify the journeyperson who the new apprentice. Also ensure you check policies and agreements. 2. Find an apprentice. See the red box on the right for ideas on how to find an appropriate apprentice 3. Receive Training Material. Part of having an apprentice is making sure you are following the provincial regulations and abiding by the terms of the Apprentice Agreement. The Apprenticeship Authority office will need to approve and monitor you throughout the process. They will also provide a checklist of competency tasks the apprentice will need to master. Where to find an apprentice: ✓ On staff: ask any current employees if they would like to learn a new trade or if they know anyone who would ✓ Local unions, trade and industry associations ✓ Schools: Talk to the local secondary schools ✓ Career Ads 4. Prepare your journeyperson. Ensure they review the training materials. 5. Monitor the apprentice’s progress and keep accurate records. 6. Make sure to keep in touch with the Apprenticeship Authority office throughout. is capable and committed to taking on APPLICATIONS MANAGEMENT CONSULTING LTD. 8 Alberta’s Occupational Outlook (source: Government of Alberta) From 2013-2023 Alberta’s labour market is going to grow at an annual average rate around 1.6%. Thats approximately 407,000 workers. The supply of workers, on the other hand, only appears to be increasing at an annual rate of 1.2% or 311,0000 workers. That leaves us with a shortage of approximately 96, 000 workers. One way to ensure that you secure the labour your company is going to need in the coming years is to start acquiring and training employees now. For more information and the full report for all occupations go to http://work.alberta.ca/documents/occupational-demand-and-supply-outlook-2013-2023.pdf APPLICATIONS MANAGEMENT CONSULTING LTD. 9 Results of Alberta’s Occupational Demand and Supply for 4-Digit NOC-S Occupations. Showing the projected shortage for each given year. (Source: The Government of Alberta http://work.alberta.ca/documents/occupational-demand-and-supply-outlook-2013-2023.pdf) Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 27,463 34,727 39,693 51,247 56,510 69,924 76,990 85,328 91,196 96,111 75 135 196 265 234 321 314 276 304 308 H121- Carpenters 246 511 752 978 902 1,235 1,229 1,131 1,235 1,320 H131- Bricklayers 26 56 84 109 93 132 126 107 116 121 H141- Roofers and shinglers 24 55 84 111 96 136 131 113 123 129 H211- Electricians (except industrial and 375 550 710 920 808 1,000 988 928 1,005 1,006 H324- Ironworkers -16 -6 0 23 11 44 38 23 29 28 H326- Welders and Related Machine -72 18 82 250 194 427 405 323 385 412 182 346 512 728 808 1,106 1,214 1,275 1,441 1,575 All Occupations H112- Steamfitters, pipefitters and sprinkler system installers power systems) Operators H611- Heavy Equipment Operators (Except Crane) APPLICATIONS MANAGEMENT CONSULTING LTD. 5 Most popular trades to study in Alberta: (Source: NAIT March 14, 2013) 1. Electrician 2. Pipestrades* 3. Welder 4. Carpenter 5. Heavy Equipment Technician *Pipestrades include - plumber, steamfitter, pipefitter and gasfitter Trades List: • A • Electric Motor Systems Technician • • • • • Electrician M Elevator Constructor • • • • Agricultural Equipment Technician • Appliance Service Technician • • Auto Body Technician Automotive Service Technician B • • • Baker Boilermaker Bricklayer C • • • • • Cabinetmaker Carpenter Communication Technician Concrete Finisher Cook Crane and Hoisting Equipment Operator E F • Floorcovering Installer Gasfitter Glazier H • • Hairstylist Heavy Equipment Technician I • • • Instrument Technician Insulator Ironworker • R Lather • Recreation Vehicle Service Technician • Refrigeration and Air Conditioning Mechanic Rig Technician Millwright • • Motorcycle Mechanic S Natural Gas Compression Technician • • • • Locksmith Machinist O • Outdoor Power Equipment Technician P • • • • Powerline Technician Landscape Gardener N G • • • L Painter Decorator Parts Technician Roofer Sheet Metal Worker Sprinkler Systems Installer Steamfitter-Pipefitter Structural Steel and Plater Fitter T • • Plumber W Power Systems Electrician • • Tilesetter Transport Refrigeration Technician Water Well Driller Welder APPLICATIONS MANAGEMENT CONSULTING LTD. 11 The success of apprentices and the Alberta Apprenticeship and Industry Training system is largely due to the efforts from employers and the Top Employer Award is a way of recognizing excellence to ensure success of this program in the future. Top Employer Award in Apprenticeship Training The Alberta Apprenticeship and Industry Training Board provide two awards each year (one to northern and one to southern Alberta) to reward employers who demonstrated excellence and exceptional apprenticeship training. (source: Alberta Apprenticeship and Industry Training with the Government of Alberta) Top Employer Recipients 2013: - Alberta Newspring Company, Whitecourt - Propak Systems Ltd., Airdrie 2012: - Option Industries Inc. - W. Pidhirney Welding Ltd. 2011: - Fortis Alberta - LaPrairie Crane Ltd. Award Criteria ✓ Demonstrates a strong support of apprenticeship training through: •a long history of training apprentices •offering a variety of trades for apprentices to train •providing opportunities such as dual apprenticeship opportunities or hiring entry level apprentices •participating in career fairs to promote careers in the trades and the apprenticeship program APPLICATIONS MANAGEMENT CONSULTING LTD. 12 •being involved in the Apprenticeship and Industry Training Board and or their Local or Provincial Apprenticeship Committee •involvement in CAREERS •involvement in Skills Canada ✓ Works to increase the likelihood of an apprentices success in their chosen trade by: •providing an exceptional environment in which to train •ensuring that management in supportive of the training •encouraging the apprentice has a strong work ethic ✓ Provides an environment of excellence where: •the apprentice gets the chance to experience most areas of the trade •career progress is acknowledged and rewarded •there is an opportunity for long term employment Other Available Awards Presented by Alberta Apprenticeship and Industry Training ✓ Top Employer of Aboriginal Apprentices Award ✓ Top Instructor Award ✓ Top Apprentice Award ✓ Chairmans Award of Excellence ✓ Special Award APPLICATIONS MANAGEMENT CONSULTING LTD. 13 What is The Alberta Apprenticeship Forum - Interview with Glenn van’t Wout Learning Manager at Shell, Albian Sands. stakeholders, before, during and after their apprenticeship. We exist to... Create a community of stakeholders focused on enhancing the success of trade-related career opportunities in the Wood How do you work to improve the apprenticeship program in the Wood Buffalo region? In general, we look regionally at key issues and come up with sub committees to help address these issues. In 2012, we organized the first ever Apprenticeships Conference for Alberta. This was a little What is the Wood Buffalo Apprenticeship Forum? different because we were able to come up We exist to create a community of Most recently, we have focused our energy on two main need areas. The first major stakeholders focused on enhancing the success of trade related career opportunities to the Wood Buffalo region. We make sure to provide a collaborative forum while enhancing access to regional opportunities and to support apprenticeship with strategies and potential action plans that could be leveraged province wide. them understand the potential of apprenticeship opportunities at an early age. The second area of focus comes from those around the age of 25-30. We have seen employment opportunity gaps along with many questions from persons in this age demographic. We look to focus attention on this age group so they too can have access to the knowledge and resources to begin an apprenticeship. In the coming year, we will have information nights and presentations that will be moving outside of normal work hours and be available in the evenings to accommodate more people. These will start being held in the spring of 2015. focus is helping those still in the secondary school system. We want to increase understanding of the trades and give exposure to those who are being introduced to career opportunities and help APPLICATIONS MANAGEMENT CONSULTING LTD. 14 Who participates in the Wood Buffalo Apprenticeship Forum? Everyone who wants to learn more and participate in the furthering of apprenticeship in the Wood Buffalo region is welcome and encouraged to come out to our meetings. Participation is on a volunteer basis and those who comes out is continually changing and transitioning. It has included stakeholders from teachers and administrators in K-12 all the way through to post-secondary education, to employers of large companies and sub-contractors, to government representatives from Alberta Human Services and Apprenticeship & Industry Training. There are no membership fees or prerequisites to participate. Just an interest in gaining knowledge and perhaps adding your own insight to the apprenticeship industry in Alberta. What are the most in demand trades in Wood Buffalo? Contacts for the Wood Buffalo Apprenticeship Forum Unofficially, the top trades in this region would be Heavy Equipment Technician, Electrician, Steamfitter-Pipefitter, Welder, Millwright, Instrument Technician and Crane and Hoisting Equipment Operator (Mobile Crane). ✓ Glenn van’t Wout : 780-531-4689 ✓ Peter Lawlor: peter.lawlor@keyano.ca - How does one get involved? The best way to participate is to come out to our meetings. To find out more about the forum, one can contact one of the members listed on the side or check out the Wood Buffalo Apprenticeship Forum website: http://www.woodbuffaloapprenticeshipforum.com/index.php 780-791-4882 (office) ✓ Kerry Ferguson: kerry.ferguson@keyano.ca 780-791-4883 ✓ Melissa Coish: melissa.coish@keyano.ca 780-792-5609 APPLICATIONS MANAGEMENT CONSULTING LTD. 15 • Provincial Building 9915 Franklin Avenue Fort McMurray AB T: 780-743-7192 APPLICATIONS MANAGEMENT CONSULTING LTD.