MINERALS COUNCIL OF AUSTRALIA
SUBMISSION IN RESPONSE TO THE
APPRENTICESHIPS FOR THE 21ST CENTURY
EXPERT PANEL’S FINAL REPORT:
‘A SHARED RESPONSIBILITY’
JANUARY 2011
APRIL 2011
www.minerals.org.au
TABLE OF CONTENTS
1.
INTRODUCTION .............................................................................................................................................. 2
1.1
The Minerals Industry ........................................................................................................................... 2
1.2.
Minerals Industry Training .................................................................................................................... 2
2.
RESPONSE TO THE EXPERT PANEL’S REPORT........................................................................................ 3
3.
THE APPRENTICESHIP MODEL .................................................................................................................... 3
4.
THE QUALITY OF TRAINING ......................................................................................................................... 4
5.
NATIONAL CUSTODIAN ................................................................................................................................. 4
6.
ACCREDITATION PROCESS FOR EMPLOYERS ......................................................................................... 5
7.
ELIGIBLE APPRENTICES AND TRAINEES................................................................................................... 5
8.
EMPLOYER CONTRIBUTION SCHEME......................................................................................................... 5
9.
APPRENTICESHIP COMPLETIONS ............................................................................................................... 6
10.
PATHWAYS INTO APPRENTICESHIPS......................................................................................................... 6
11.
SUPPORT FOR APPRENTICES FACING SPECIFIC CHALLENGES ........................................................... 7
12.
RAISING THE STATUS OF APPRENTICESHIPS .......................................................................................... 7
13.
COMPETENCY BASED PROGRESSION ....................................................................................................... 7
14.
RECOGNITION OF PRIOR LEARNING .......................................................................................................... 7
15.
REVIEW OF APPRENTICE WAGES AND CONDITIONS .............................................................................. 8
16.
CONCLUSIONS ............................................................................................................................................... 8
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1. INTRODUCTION
The Minerals Council of Australia (MCA) welcomes the opportunity to make a submission in response to
the Expert Panel on Apprenticeships for the 21st Century’s Final Report: ‘A shared responsibility’, (the
Report) January 2011.
The MCA represents Australia’s exploration, mining and minerals processing industry, nationally and
internationally, in its contribution to sustainable development and society. MCA member companies
produce more than 85 per cent of Australia’s annual mineral output.
1.1
The Minerals Industry
The resources industry contributed 9.4 per cent of Australia’s Gross Domestic Product (GDP) in 200910, and contributed $138B or 54 per cent of Australia’s export revenues in 2009-101
The minerals industry is a source of highly skilled, well paid employment in regional and remote areas of
Australia. Employment in the minerals industry is at record levels. Labour force figures report
employment in the minerals industry at 194,000 in February 2011 (ABS mining data net of oil and gas),
an increase of 18 per cent from the peak employment recorded in November 2008, just prior to the
GFC. In the 12 months to February 2011, employment in the minerals industry grew by 23 per cent and
further strong growth is forecast. In contrast, national employment grew by around 3 per cent over the
same period.
The final report of the Government’s National Resources Sector Employment Taskforce forecast that
there will be a peak of 45,000 new construction jobs on resource projects in both 2012 and 2013 and an
additional 61,500 new mining sector operational jobs are expected by 20152. The report forecast
shortfalls of 36,000 tradespeople, 1,700 mining engineers and 3,000 geoscientists over next five years.
Overall, the minerals industry has suffered from skills shortages (lack of qualified tradespeople,
professionals, and experienced operators). Access to skilled human capital has been a significant
capacity constraint for the industry and minerals industry employers continue to experience difficulty in
recruiting sufficient numbers of appropriately skilled workers in both mining specific and traditional
trades such as fitters, electricians and diesel mechanics.
The critical shortages of tradespeople projected by the National Resources Sector Employment
Taskforce cannot be met by relying on the current traditional training regime alone to train sufficient
apprentices to meet the demand. Innovation to encourage alternative approaches is required.
1.2.
Minerals Industry Training
The minerals industry continues to make a substantial investment in Vocational Education and Training
(VET); with figures indicating that on average the industry spends three times the national average per
employee on training. Whilst the vast majority of the minerals industry’s VET activity is privately funded;
the majority of apprenticeship training for the industry is delivered under government funded programs.
The minerals industry has recently been characterised as failing to deliver its ‘fair share’ of apprentice
training. However, recent National Centre for Vocational Education Research (NCVER) data shows that
in the September quarter 2010 the industry had 9,595 apprentices and trainees in training, up 32.6 per
cent over the figure for the same period in 2008. That is, close to 50 apprentices and trainees per 1,000
employees; greater than the national average. Figure 1 below shows the continuing upward trend in
apprentice/trainee numbers in the industry. Numbers of apprentices in training for traditional trades is
also increasing, with a total of 4,126 reported for the September 2010 quarter.
Minerals Council of Australia. The Australian Minerals Industry and the Australian Economy. 2011.
National Resources Sector Employment Taskforce (2010). Resourcing the Future: National Resources Sector Employment Taskforce Report
July 2010.
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2
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Figure 1: This table shows Minerals Industry Apprentices and Trainees in training as at
September Quarter 2003-2010
Moreover, apprentice completions in the minerals industry continue to exceed the national average.
Figure 2 below shows that cancellations and withdrawals in the minerals industry (June quarter 2010)
were 22 percent compared with an average of 44 percent for the Australian total.
Figure 2: This table shows Apprentices and trainees - Minerals* industry and Australia total Cancellations & Withdrawals as a percentage of commencements (June quarter 2010)
2. RESPONSE TO THE EXPERT PANEL’S REPORT
The minerals industry’s needs are principally in the traditional trades and any reference we make in this
submission to ‘apprentices’ is primarily directed at apprentices in these trades unless otherwise
specified.
The MCA agrees with the Apprenticeships for the 21st Century Expert Panel that training of apprentices
is a shared responsibility between industry, Governments, training providers and individuals. However,
we believe that whilst the current framework for training apprentices suits some, it is not the only
legitimate framework. Hence the need to encourage alternative and innovative training pathways for
apprentices to suit the specific needs of employers and apprentices alike.
We discuss the specific recommendations and conclusions of the Expert Panel below.
3. THE APPRENTICESHIP MODEL
Australia needs robust trades training to ensure that it has the skills required to maintain and grow
productivity. The MCA supports the current overarching model for apprentice training (depicted in
Appendix L of the Report) that is founded on the core elements of the employment relationship, high
quality on and off the job training, and the transferability of skills. However, given the current and
looming skills shortages, the MCA is concerned that the overall tenor of the report and its
recommendations is a ‘tweaking’ of the status quo rather than the identification and promotion of
innovative alternatives to the current pathways to full trade qualification.
The focus of apprenticeship training should be on the skills that industry needs, how skills are best
acquired, and how knowledge transfer and learning occurs to enable the formation of those skills. This
will require a variety of models more aligned to the specific people and enterprises (employees and
employers). No one model will suit all.
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The resources sector National Apprenticeship Program3 developed under the leadership of East Coast
Apprenticeships Group Training Company in response to recommendations of the National Resources
Sector Employment Taskforce is one example of an innovative model for advanced entry adult
apprenticeships.
4. THE QUALITY OF TRAINING
The report makes a number of valid observations on the need for high quality on the job training, which
is one of the key pillars of the apprenticeship model. However, MCA is concerned that the report makes
very little commentary on the critical issue of the quality of off the job delivery by Registered Training
Organisations.
The minerals industry has substantially moved away from publicly funded training4 due to its inability to
deliver the quality and consistency required by the industry, however, the majority of traditional trades
training for the industry is accomplished through government funded programs delivered primarily by
TAFE providers. Whilst employers on the whole are satisfied with the delivery of off the job
apprenticeship training, there remain concerns about the flexibility and consistency of training delivery,
particularly where there are inconsistencies in the requirements of the state and territory jurisdictions
that oversee apprenticeship training.
It is critical that formal off the job training is industry driven (demand pull, not supplier push), that is, it
meets the requirements of the workplace. A recent survey conducted by the Australian Chamber of
Commerce and Industry (ACCI)5 found that, whilst overall employers’ satisfaction with training providers
was good, they rated poorly in terms of academic standards and relevance to industry.
The quality and consistency of off the job training and its integration with on the job training must be
addressed to obtain optimum apprenticeship outcomes.
To meet the needs of the individual and industry in the modern economic and social climate, delivery of
off the job training must be available not only through ‘traditional’ frameworks, but also via more
innovative pathways that, whilst adhering to the underpinning characteristics and values of the
overarching apprenticeship model, allow competency based progression.
5. NATIONAL CUSTODIAN
The MCA agrees with the assertion of others that currently there is ‘no such thing as a national
Australian Apprenticeships System’ (Report p.26) and issues of inconsistency across state and
territories are confusing and frustrating, particularly for national enterprises. Consistency is required in
both apprenticeships training and licensing, and as highlighted above, the needs of employers must be
central to a truly national apprenticeship system.
Whilst the establishment of a National Custodian to oversee reform may achieve the goal of a nationally
consistent system, it is critical for such a position to have the appropriate authority and resources to
drive the reform required to deliver the quality of tradespeople required by employers, individuals and
the economy. One method of creating interest in a nationally consistent high quality apprenticeship
program would be for the Commonwealth to offer apprenticeships for national employers.
The National Apprenticeship Program engages participants from 25-40 years of age who have a high degree of relevant existing skills (e.g.
people with partially completed trade qualifications, qualifications in a related trade, or who have worked as an assistant to a tradesperson)
through a rigorous selection and RPL process to develop a training plan to complete a full trade qualification within 18 months, without
compromise to quality.
4 Whilst there are no reliable, comprehensive figures available on privately funded training effort for the minerals industry, current estimates are
that 80% of minerals industry is privately funded.
5 ACCI. Employers’ commitment to training: key findings of the ACCI National Workplace Skills Survey 2010. (March 2011)
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The alignment of the apprentice training systems of the eight State and Territory jurisdictions is one way
to achieve a consistent, high quality Australian apprenticeship system. The suggestion that the National
Custodian may be modelled on the Safe Work Australia model is valid.
The report correctly highlights the need to ensure that careful consideration be given to the entity best
placed to undertake the National Custodian role, and clearly the role would have substantial interaction
with other entities, particularly the VET Regulator. MCA strongly recommends that the National
Custodian not be a committee within the COAG bureaucracy, but rather an independent statutory body
similar in structure to Safe Work Australia.
6. ACCREDITATION PROCESS FOR EMPLOYERS
The quality of on the job training is principally the province of employers and is a critical aspect of
achieving the desired apprenticeship outcomes. An accreditation process for employers is an overly
bureaucratic response to ensuring quality training outcomes. There are already many barriers to
employers of apprentices, including lack of preparation of job seekers and lack of interest from job
seekers. MCA is concerned that an accreditation process would pose another significant barrier,
particularly for smaller employers, which is highly undesirable in view of the current imperative to
increase the pool of qualified tradespeople.
Rather than a prescriptive accreditation hurdle for employers, the MCA advocates:
 Identification of a set of key criteria to enable the self assessment to pre-qualify employers of
apprentices, but avoiding the need for a bureaucratic formal accreditation or registration
process;
 a recognition system, such as the Excellence in Employment Scheme proposed in
Recommendation 3 of the Report, that rewards employers who perform strongly and provides
an incentive for improving performance; and
 case managed support and mentoring for employers to assist them meet the key criteria.
7. ELIGIBLE APPRENTICES AND TRAINEES
The MCA strongly endorses the proposal that support and incentives be redirected to ‘eligible
apprentices and trainees ‘. This recommendation is entirely consistent with the Government’s
response6 to the recommendations of the Bradley review of Higher Education that ‘disciplines of
national interest’ be identified and supported in that sector. The successful Kick Start program
demonstrates the benefit of targeting particular areas.
Whilst we recognise that greater support for eligible apprentices and trainees in critical skill shortage
areas (such as the traditional metals and engineering trades) will result in less support for
apprenticeships and traineeships with a lesser contribution to the economy; the overall national benefit
must be the prime consideration.
8. EMPLOYER CONTRIBUTION SCHEME
The MCA does not support the introduction of an Employer Contribution Scheme. In the past such bond
or financial surety schemes have only served as a disincentive to participation and encourage supply
rather than demand driven training; and poor quality delivery.
6
DEEWR, Transforming Australia’s Higher Education System. 2010.
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Incentives generally lead to better outcomes than application of penalties for those who don’t conform to
requirements, that is, the carrot has better outcomes than the stick. An alternative mechanism is to
provide mentoring support to employers as discussed above.
9. APPRENTICESHIP COMPLETIONS
The MCA considers that apprentice completions, together with the quality of training as outlined above,
are the two key issues that must be addressed to achieve a step change in apprenticeship outcomes.
Apprentice completions are impacted by a number of factors:
1. The inflexibilities of training delivery within the current system are negatively impacting on
apprentice retention. Provision of new flexible, responsive pathways for apprenticeships
training, within the overarching model, that are customised for generational differences in
learning and attitudes will make trades training more attractive to individuals and enterprises
alike. A ‘one size fits all’ approach is no longer relevant.
The training pathway, and the outcomes achieved, must not only be more “attractive” but more
competitive against the alternatives available, whilst maintaining a robust trade-skills
development framework that enjoys the confidence of all stakeholders.
2. The gradual decline of pastoral care and mentoring within the apprenticeship system for junior
apprentices. A mentoring and support program, for example, building on the current mentoring
project for Kickstart and Kickstart Extension apprentices is worthy of consideration.
3. The ad hoc nature of information and understanding of work in industry, career opportunities
and the nature of work and learning during an apprenticeship. NCVER research has found that
pre-apprenticeships increase the likelihood of completion in some trades and reduce it in
others7.
A greater consistency and quality in pre-apprenticeship and pre-vocational training that
articulates into full apprenticeship training may well address this issue.
10. PATHWAYS INTO APPRENTICESHIPS
Key barriers to high quality school based apprenticeships and VET in Schools training have been the
difficulty of timetabling vocational courses, access to suitably qualified staff, and the difficulty of
accessing appropriate work placements. An increase in access to, and improved quality and
consistency of, schools-based apprenticeships and pre-vocational courses is highly desirable, but must
be accompanied by good teaching and engagement of industry and enterprises in a truly collaborative
sense.
Readily accessible transition pathways from school based apprenticeships to Certificate 111
apprenticeships are required. This could be achieved through credit of units gained during the school
based apprenticeship. However, this may require a review of training packages where Certificate II
units do not articulate into apprenticeship Certificate III courses.
Rigorous pre-employment assessment to ensure that aspiring apprentices have the requisite attributes,
including the health and fitness for the work in their chosen trade, adequate literacy and numeracy, and
an aptitude for the trade is also essential.
7Karmel
and Oliver. Pre-apprenticeships and their impact on apprenticeship completion and satisfaction. NCVER, 2011.
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For those who do not complete a pre-apprenticeship or pre-vocational course, high quality career advice
and counselling is critical to ensuring that they understand the career and training they are undertaking.
11. SUPPORT FOR APPRENTICES FACING SPECIFIC CHALLENGES
The minerals industry is engaged in specific projects to increase the number of Indigenous apprentices
and tradespeople in the sector. This work requires considerable co-ordination and partnership between
the industry, Government and the relevant local community. The Memorandum of Understanding
between the MCA and the Australian government on Indigenous Employment and Enterprise
Development is one such instrument that facilitates this endeavour.
12. RAISING THE STATUS OF APPRENTICESHIPS
Lack of understanding of career opportunities and progression post apprenticeship completion detracts
from the attractiveness of the trades as a career option.
The funding and support structures in all jurisdictions that provide career advice and work-readiness
programs (such as pre-apprenticeship training) would benefit from enhanced coordination and focus
within a broader national policy framework.
13. COMPETENCY BASED PROGRESSION
An underlying premise of the current industry-driven VET system is that it is based on achievement of
competency in the skills required under a particular qualification. Unfortunately, the lack of opportunities
for competency based progression in many apprentice training pathways is a denial of this fundamental
premise.
The current model of apprentice training has stood the test of time, but in many cases the way it is
currently applied overlooks the fundamental premise of competency based training with inherent
flexibility of entry and exit points. Rapid changes in the culture, expectations and social norms of the
generations who will form the future workforce need to be managed and accommodated and hence a
need for innovation in the models of apprenticeship training.
14. RECOGNITION OF PRIOR LEARNING
The current dearth of valid RPL opportunities presents a barrier to apprenticeship commencements,
particularly for existing workers, most of whom have a wide range of unrecognised skills and
knowledge.
For people with existing experience and skills, development of a wider range of options to have their
competencies recognised should be progressed and made more widely available. In this context the
rigour and quality of the recognition process must be above reproach to ensure that it is recognised by
individuals, current tradespeople and employers as a valid process towards achieving a trade
qualification and not just a ‘tick and flick’ exercise.
This may require a rethink of State Government funding models for RPL and must include RPL
assessment processes that have equal rigour with more mainstream assessment processes such as
examinations and assessment by observation.
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A nationally agreed process for RPL in specific trades may provide a way forward. Such an approach
will challenge “traditionalists”, but with the wealth of VET expertise and industry knowledge accessible in
Australia, this challenge should not be beyond resolution.
15. REVIEW OF APPRENTICE WAGES AND CONDITIONS
There are varying views on the impact of wages and conditions of apprentices on apprenticeship
commencements and completions. MCA notes the recommendation of the Expert Panel for Fair Work
Australia to review apprenticeship wages and conditions.
16. CONCLUSIONS
The MCA agrees with the Apprenticeships for the 21st Century Expert Panel that training of apprentices
is a shared responsibility between industry, Governments, training providers and individuals. However,
we believe that, whilst the current framework for training apprentices suits some, it is not the only
legitimate framework. Hence the need to develop new and innovative training pathways for
apprentices.
The MCA supports the current overarching model for apprentice training that is founded on the core
elements of the employment relationship; high quality on and off the job training; and the transferability
of skills. However, given the current and looming skills shortages, innovative alternatives to the current
pathways to full trade qualification should be encouraged.
While the report makes a number of valid observations on the need for high quality on the job training,
which is one of the key pillars of the apprenticeship model, the MCA believes that improvements in the
quality and consistency of off the job training and its integration with on the job training are central to
obtaining optimum apprenticeship outcomes.
The MCA supports many of the recommendations of the Report, and in particular:
 Endorses the need for consistency across jurisdictions, and proposes a national approach
under Commonwealth Government leadership. The concept of a National Custodian for
apprenticeships is supported, provided the necessary arrangements are in place to make the
position effective in driving the development of a truly national apprenticeship system.
 Strongly endorses the reallocation of resources and incentives to identified ‘eligible
apprenticeships and traineeships’ that contribute most to productivity in the national economy.
 Supports a recognition system for highly performing employers and the provision of support
and mentoring to assist employers achieve the required on the job training standard. MCA
does not support a formal accreditation process for eligible employers of apprentices as this
would only serve as a barrier to the training of more apprentices.
 A rigorous assessment process for the recognition of prior learning is a necessary pre-requisite
to engaging people with existing experience and skills in apprenticeships. It is essential that
the RPL process is above reproach as it is critical that individuals, current tradespeople and
employers value the outcomes.
The MCA does not endorse the establishment of an Employer Contribution Scheme as similar schemes
in the past have led to perverse outcomes.
ENDS
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