SKILLS TASMANIA West Coast Regional Profile Part 2: Industry, Business and Training Profile Commercial-in-Confidence TABLE OF CONTENTS INTRODUCTION ............................................................................................................. 4 MINING AND SUPPORT TRADES ................................................................................. 5 External Operating Environment...................................................................................... 5 Consultation: Henty Gold ............................................................................................ 8 Consultation: Setori Engineering .............................................................................. 10 Consultation: Alma Drilling........................................................................................ 11 Regulatory Environment ................................................................................................ 12 Consultation: John Kirwan and Associates ............................................................... 15 Human Capital Management ......................................................................................... 16 Consultation: Henty Gold .......................................................................................... 17 Consultation: Copper Mines ..................................................................................... 19 Consultation: TAFE Tasmania .................................................................................. 20 WILD FISHERIES AND AQUACULTURE ..................................................................... 23 External Operating Environment.................................................................................... 24 Regulatory Environment ................................................................................................ 28 Human Capital Management ......................................................................................... 30 Consultation: Australian Maritime College ................................................................ 31 Consultation: Seafood Training Tasmania ............................................................... 32 Consultation: John Kirwan and Associates ............................................................... 34 Synopsis ....................................................................................................................... 35 TOURISM AND ACCOMMODATION ............................................................................ 36 External Operating Environment.................................................................................... 37 West Coast Municipality Tourist Projects ................................................................... 38 Consultation: Federal Hotels and Resorts (Strahan) .................................................. 40 Consultation: Anchordown ......................................................................................... 41 Consultation: Castaway Holiday Apartments ............................................................. 42 Regulatory Environment ................................................................................................ 43 Commercial-in-Confidence Page 2 of 65 2 Human Capital Management ......................................................................................... 44 Consultation: Tourism Council of Tasmania ............................................................. 45 Consultation: Federal Hotels and Resorts ................................................................ 47 Consultation: JobNet ................................................................................................ 52 Synopsis ....................................................................................................................... 53 SMALL BUSINESS ENVIRONMENT ............................................................................ 54 SYNOPSIS .................................................................................................................... 57 THE IMPACT OF ECONOMIC AD COMMUNITY DEVELOPMENT ON THE WEST COAST.......................................................................................................................... 58 West Coast Infrastructure Projects ................................................................................ 58 West Coast Community Capacity Building Projects ....................................................... 59 Tasmanian Community Fund..................................................................................... 59 Community Support Levy .......................................................................................... 59 Sustainable Regions Program ................................................................................... 60 Bell Bay Pulp Mill .......................................................................................................... 63 Forestry Agreement....................................................................................................... 65 Synopsis ....................................................................................................................... 65 Commercial-in-Confidence Page 3 of 65 3 Introduction The analysis of census data identified the key industry and employment trends for the West Coast localities. These data suggested a continuum of industries that sustain the viability of West Coast localities. This continuum identifies resource based industries at one end and service industries related businesses at the other. Percentage of people employed via broad industry groupings Resource Mining Queenstown Rosebery Tullah Zeehan Strahan 12.6 18.6 13.7 23.4 5.0 Mining Mining Support Trades Government Services 6.1 4.7 2.8 8.7 3.2 8.9 Commercial Fishing Service Tourism Experiences Retailing, Accommodation, Cafes, Restaurants 8.5 4.0 6.0 6.4 18.1 Government Services Retailing, Accommodation, Cafes, Restaurants Resource The second part of this report examines the operating environment of both resource and service based businesses. Key business drivers that affect skill and training demand are identified. These drivers can be broadly classified as changes in the: 1. Industry or business external operating environment; 2. Regulatory environment; and, 3. Internal business operating milieu. The impact of change drivers on organisational human capital management and requirements are identified across the industry continuum. Examples of how individual businesses are responding to change drivers are highlighted in case study exhibits. The report concludes by providing a high level industry perspective on how community factors such as infrastructure and demographic trends are impacting on skill and training requirements. Tourism Experiences Service Mining and Support Trades Tasmania's mining and mineral industry employs over 3,500 Tasmanians directly and generates another 10,000 indirect jobs and pays more than $190 million a year in wages and salaries. The industry generates over $710 million of export sales and accounts for over $1,365 million worth of sales shipped through Tasmanian Ports. Historically Tasmania has produced gold valued at around $1 billion in today's value. A diverse range of commodities are exported, including ores and concentrates of iron, copper, lead, zinc, tin, gold, high grade silica and tungsten, as well as refined zinc and aluminium and ferro-alloys and cement. Tasmania is the major supplier of ferro manganese to the Australian steel industry and produces more than 10 percent of Australian copper. The in-ground value of discovered minerals is estimated to be over $31,000 million. External Operating Environment Changes in the external operating environment can create a need to train or retrain staff. Some examples of external operating changes are: Political Changes: Government policies and priorities Funding Legislation or regulation Economic Changes: Resource availability Consumer demand Competition Demographic Changes: Availability of qualified labour Labour costs/wages Ageing Population Technology Changes: Introduction of new technology The Internet Commercial-in-Confidence Page 5 of 65 5 The following section provides a snapshot of changes in the external operating environment at an industry level. How changes are effective businesses is illustrated through a series of case study exhibits. Tasmanian Minerals Council (2005) has identified the following trends affecting the operating environment and skill requirements of mining enterprises: Since 1999 there has been an increase in the profitability of mining enterprises. This trend is expected to continue for at least another 2-3 years. The Tasmanian mining industry deals with 575 businesses. Because of the increasing demand for minerals in for example India and China, the mining supply chain is also likely experience a period of economic growth. The employment structure of the Tasmanian mining industries is changing. A flexible firm business model that employs a core workforce and out sources work to contractors has been an emerging trend. The number of employees in the mining industry decreased from 2646 in 1999/2000 to 2417 in 2004/2005. This represents a -9 percent loss of over a six year period. The number of contract however has increased from 988 in 1999/2000 to 3598 in 2004/2005. This represents a 20 percent increase of over the past six year period. In the West Coast Municipality four mine sites are operational: 1. Placer Dome Asia Pacific- Henty Gold 2. Zinifex Rosebery Mine 3. Intec Hellyer Metals Ltd - Hellyer Mine 4. Copper Mines of Tasmania Mt Lyell Mine Mine sites which have creased operations in the West Coast Municipality are: Commercial-in-Confidence Page 6 of 65 6 1. Renison Mine which cased operations in June 2003; and, 2. Savage River Mine which in ceased operations in 1996. At a statewide level mining exploration projects which may impact on West Coast labour market include two local projects (Allegiance and Zinifex) and three intrastate projects: Allegiance Mining has completed a feasibility study for the Avebury nickel project. A nickel mine and processing plant with a value of $94 million is to be built near Zeehan. Site work started in December 2005 and the first nickel is expected to be produced in the third quarter of 2007; Major explorations in the Mount Read Volcanics being undertaken by Zinifex Limited, Newcrest Operations Limited, Bass Metals Limited, TasGold Limited and Saracen Metals Proprietary Limited; Van Dieman Mines PLC is investigating the feasibility of commencing mining at two alluvial tin, gold and sapphire operations in the Pioneer-Gladstone area, northeast Tasmania; Australian Tungsten Pty Ltd has commenced a full feasibility study into resuming scheelite production on King Island and has lodged a development application to commence a 600,000 tonne per year, ten-year mining operation in early 2007; and, Tasmanian Titanium Proprietary Limited is scheduled to resume heavy mineral sand mining at Naracoopa on King Island. Commercial-in-Confidence Page 7 of 65 7 Consultation: Henty Gold Annual Revenue- $11 Million (AUD) The business operating environment of Henty Gold mine is summarised in Figure 1. The Henty mine lease expires in 2008 and although exploration for new deposits continues in lower levels of the mine, the return on investment to date has been negligible. Products- Gold and Silver Structure- Australian Public Company, Registered as Barrick (Henty) Limited Business Life Cycle- Maturing-Declining Business phase Employees- 107 FTEs, 60 contractors Internet Henty Negative Impact Demographic Changes Population Changes Resource Availability Political Changes Henty Positive Impact Technology Economic Changes Technological Changes With the impending lease expiring, Henty is hiring contract labour to replace employees who exit. International gold and silver have fluctuated and Henty’s current production targets are down when compared with the 2003-2004 and 2004-2005 financial years. Qualified Labour Labour Costs Consumer Demand Competition Legislation/Regulation Government Policy Government Funds Figure 1: The external operating environment for Henty Gold Mine Commercial-in-Confidence Page 8 of 65 8 Consultation: Copper Mines The external operating environment of Copper Mines is summarised in Figure 2. Copper mines reported strong international demand for copper concentrate. Even though their production volume has not changed since the 2004-05 financial year, there has been a 37 percent increase in the market value of copper concentrate. Structure- Copper Mines of Tasmania Pty Ltd are the current operator of the Mt Lyell mine, is a wholly owned subsidiary of Sterlite Industries (India) Limited, which, in turn, is a subsidiary of Vedanta Resources PLC. Business Life Cycle- Growth phase Employees- 160 FTEs, 100 contractors Copper Mines Positive Impact Copper Mines Negative Impact Demographic Changes Technology Population Changes Resource Availability Political Changes Products- Copper Concentrate Internet Economic Changes Technological Changes Social trends such as the increasing preference for people to commute from the North West municipality and made the recruitment of qualified labour more difficult. Consequently more reliance has been placed on contract labour. Annual Revenue- $140.1 million in 200405, a 37 percent increase from the previous financial year. Increased revenue due to strong global demand. Qualified Labour Labour Costs Consumer Demand Competition Legislation/Regulation Government Policy Government Funds Figure 2: The external operating environment of Copper Mines Commercial-in-Confidence Page 9 of 65 9 Consultation: Setori Engineering Setori Engineering provides contract labour hire to mining businesses. They currently do not employ apprentices or trainees, however previously the business was a Registered Training Organisation. Annual Revenue- $4,500,000 Products- Manufacturer Contractor Structure- Australian Proprietary Company, Limited by Shares Employees- 55 Setori Engineering Positive Impact Setori Engineering Negative Impact Demographic Changes Technology Population Changes Resource Availability Political Changes Business Life Cycle- Established business Internet Economic Changes Technological Changes Setori is competing with larger labour hire firms and perceived increasing competition associated with labour hire as having a negative business impact. Despite the negative impact of labour costs and availability, there is strong industr demand for contract engineering services. Qualified Labour Labour Costs Consumer Demand Competition Legislation/Regulation Government Policy Government Funds Figure 3: The external operating environment of Setori Engineering Commercial-in-Confidence Page 10 of 65 10 Consultation: Alma Drilling Annual Revenue- unknown Almac Drilling is a small business and has flexibility to respond to changes in market direction. Whilst most of Almac’s work is within the West Coast Municipality, the business also has interstate contracts (Figure 4). Almac Drilling has also successfully procured government contracts. Furthermore the demand for resources in China and India has had a positive impact on business revenue and the demand for drilling services is strong. Markets- West Coast Municipality and Interstate Structure- Australian Proprietary Company, Limited by Shares Business Life Cycle- Established business Products- Boring, Drilling Contractor, Employees- 12 Internet Alma Drilling Negative Impact Demographic Changes Population Changes Resource Availability Political Changes Alma Drilling Positive Impact Technology Economic Changes Technological Changes Almac currently has no apprentices or trainees. Qualified Labour Labour Costs Consumer Demand Competition Legislation/Regulation Government Policy Government Funds Figure 4: The external operating environment of Almac Drilling Commercial-in-Confidence Page 11 of 65 11 Synopsis The external operating environment for resource based businesses varied according to the products being mined. The demand for mining copper and zinc on the West Coast, for example, is being driven by global demand. Gold and silver prices on the other had have fluctuated and Henty Mine operations are in a ‘declining’ business phase. Skill and labour shortages were reported by most mining and contract businesses as having a negative impact on operations. Increasingly workers in the mining industry have opted for contract employment arrangements. However, none of the businesses surveyed reported a reason for the aforementioned trend. Contributing to the labour and skill shortage issues were social and demographic factors. For example; Poor quality housing stock and rental accommodation has resulted in mine workers living outside the West Coast Municipality and commute to work. A lack of education beyond Year 10 and a preference not to board children has resulted in people choosing to reside outside the West Coast Municipality and commute to work. The partners of professional people working in mining (such as environmental scientists, geologists and engineers) have trouble finding suitable work in the area. Thus professional people are choosing to commute to the West Coast and reside in localities such as Penguin. A lack of social and other infrastructure results in a high turnover of professional and vocational employees. A lack of childcare and public transport for example is a barrier for the partners of mining finding suitable employment. One business however, Alma Drilling, reported no labour attraction or retention problems. This small business has a stable labour force and the average tenure was seven years. Regulatory Environment Commercial-in-Confidence Page 12 of 65 12 Licensing and regulatory controls can apply to the range of work environment layers in the mining industry (Figure 5): Work Practices Work Places Regulatory Environment Requirements Work Equipment Occupational Licensing Workers Figure 5: Scope of licensing and regulatory control For vocationally trained miners (e.g. open cut, underground and processing) there are no occupational licensing requirements. Work equipment however may require a certificate of competency under the Workplace Health and Safety Regulations 1998 (S.R. 1998, No. 152) SCHEDULE 5 - Specified tasks requiring a certificate of competency. Competency certificates are required for: (a) scaffolding, dogging and rigging, including – (b) crane and hoist operation, (c) pressure equipment operation (d) fork-lift truck operation, excluding pedestrian walk behind or pallet trucks; (e) order-picking fork-lift truck operation (f) Mine winder operation. Commercial-in-Confidence Page 13 of 65 13 Consultations with Workplace Standards Tasmania, revealed that there no impending changes to schedule 5 of the Workplace Health and Safety Regulations 1988 that would impact on the mining industry. In terms of the workplace, employers have a duty of care around occupational health and safety and consequently to provide training in first aid, confined spaces and risk management competencies. The Tasmanian mine industry typically contract Tracmin (a Registered Training Organisation in Western Australia) to conduct mine safety training. The safety training program is known as MATCSTA1 (Mining And Resource Contractors Safety Training Association- which is a not for profit peak body) and is a ‘ticket’ that is recognised across 85 percent of Australian Mines as a minimum job entry requirement. Like a first aid certificate MATCSTA certificates are valid for two years and require renewal. A consultation with Tracmin revealed that there are no anticipated changes to the MATCSTA course as the result of legislative or regulatory requirements. Accredited vocational training is the preferred method for which mines ensure work practices meet occupational health and safety requirements. This training is discretionary, however employers encourage workers to undertake accredited vocational training for performance and risk management reasons. 1 In Tasmanian the MATCSTA accredited trained is Marcus Taylor, from TAFE Tasmania. Commercial-in-Confidence Page 14 of 65 14 Consultation: John Kirwan and Associates Kirwan and Associates specialize in safety related training for industry sectors such as mining, aquaculture, forestry and food processing. Table 1 provides a summary of Kirwan and Associates registration scope of registration and the units of competency for which occupational health and safety related training is delivered in the West Coast Municipality. Kirwan and Associates reported that most of their training demand is based on composites of skill sets rather than qualifications. Table 1: Regulatory training delivered to mining support occupations Industry Job Roles No. Businesses Electricians Plumbers Mining Refrigeration and Airconditioning Mechanic Administration Assistants 3 No. Individuals 20 The skill sets for which training has been delivered to mining industry is presented in Table 2. Table 2: Competency skill sets related to workplace regulatory requirements TDMMR1901A TDTD197B TDTF197B TDTF397B MTMMP4 MTMMP70B Safely handle and stow explosive and flammable materials Shift materials safely using manual handling methods Follow OHS procedures Implement and monitor OHS procedures Follow safe work policies and procedures Participate in OH&S risk control process Commercial-in-Confidence Page 15 of 65 15 Human Capital Management There are a variety of approaches for human capital or workforce development (Figure 6). This section explores those strategies used by mining enterprises to retain, develop and manage their human resource functions. The following section focuses on three key human resource (HR) functions: 1. Workforce Planning 2. Selection and Recruitment 3. Human Resource Development (namely, training and career development) Figure 6: Facets of human capital management Commercial-in-Confidence Page 16 of 65 16 Consultation: Henty Gold Human Resource Planning Henty Gold Mine does not undertake formal workforce planning. The business does not have a Human Resource Information System and is unable to track key employee characteristics such as age, qualifications and tenure. The business does however have an electronic payroll system and tracks costs and full-time equivalent establishments (FTEs). Workforce Planning- Not currently in place Vacancy rates- 11.5 percent Recruitment strategies- Attrition program in place Qualifications, skills and training initiatives- 56 employees without qualifications undertaking a Certificate III in Metalliferous Mining Human Resource Development Programs- Leadership program, Safety Champions Program and Frontline Certificate IV (12 employees) Annual Human Resource Development BudgetUnknown Currently there are 107 FTEs, as well as 60 contractors hired from Setori Engineering. The business has 7 female FTEs and the remaining Human Resource Development Evaluations- None employees are all male. The average undertaken age and tenure of employees is estimated at 45 years and 5 years respectively. Because approximately 50 percent of the employees are replaced every 5 years, there is no apparent evidence of an ageing workforce. Furthermore it was reported that because the work is physically demanding it is common for people not to work beyond 54 years of age. Selection and Recruitment The business recruited approximately 5 people in 2005-06 financial year. Staff turnover rate was 11.5 percent and 22 people exited the business during the 2005-6 financial year. Recruitment methods include contract labour firms, newspaper advertising and word-of-mouth. Employee attraction strategies focus on promoting the nature features of the West Coast as a lifestyle choice. For example, Henty mine tries to attract professional and vocationally trained workers who are interested in bushwalking and other outdoor recreational activities. Human Resource Development Programs Training is delivered mostly on the job where possible. Exceptions are courses such as First Aid which are classroom based. Training needs Commercial-in-Confidence Page 17 of 65 17 are aligned to business regulatory requirements and workplace standards. A loss control (safety) management training and development continuous improvement system was launched in the 2004/2005 financial year. The training and development system was based on Placer Dome Corporate standards. The program included implementing risk management systems and training, developing safety conscious leadership, and identified safety champions. The outcomes of this training are being evaluated on a continuous basis against key performance indicators such as accident and injury rates. Henty does not undertake succession planning, career development or similar human resource development programs. However it is embarking on leadership training. Twelve people have been identified to undertake a Certificate IV in Frontline Management. This will be delivered in house by a Registered Training Organisation via workshops and assessed through workplace assignments. Recognition of current competency may be offered to other employees who can gather evidence through a portfolio approach. Whilst some apprentices and trainees are employed, Henty prefers to source skilled contract labour. This is because the current mining lease expires in 2008. In terms of vocationally based training, Henty Gold cannot provide an exact head count, but estimates that 20 of the 107 employees have completed an accredited qualification. Henty Gold currently employs a second year Electrical apprentice and a third year Mechanical apprentice. In terms of traineeships, however, Henty has negotiated for Business and Employment to deliver a Certificate III in Metalliferous Mining to 56 eligible employees. A part of this negotiation, Business and Employment will provide a training coordinator onsite on a full-time basis. Henty Gold mine does not track training costs or have an allocated training budget. Rather training for legislative or regulatory requirements is an accepted as an operational cost. Henty Gold also delivers training to contract labour to meet regulatory compliance requirements. Internal records are maintained regarding the training delivered, as a risk management strategy. Commercial-in-Confidence Page 18 of 65 18 Consultation: Copper Mines Human Resource Planning Copper mines employ 160 contractors and 100 FTEs. Eight contractors and another eight FTEs are female, the remaining workforce is male. Selection and Recruitment Eighteen people exited the business in the 2005/2006 financial year; however only 10 people were recruited. This deficit was back filled using contract labour, the business would however rather have employed personnel. Workforce Planning- Not currently in place Vacancy rates- Approximately 10 percent Recruitment strategies- None Qualifications, skills and training initiatives- Multiskilling Human Resource Development ProgramsProfessional Management Development and vocational traineeships. Annual Training Budget- $300,000. Human Resource Development Training relating to regulatory and compliance issues is delivered inhouse. The focus of this training is on foreseeing risk and taking preventative actions to avoid occupational health and safety issues. The training is targeted at building a ‘safety mindset’. Programs are in place for succession planning, career and leadership for graduates. The object is to train managers for overseas mining operations. In particular, Copper Mines is targeting degree graduates in: Geology Metallurgist Mechanical engineer Environmental scientists For vocationally trained staff, Copper Mines is encouraging multi-skilling, In terms of multi skilling workers are given the opportunity to gain qualifications in for example underground mining as well as competency sets around transport. In the last two years the business has had three apprentices; 1 mechanical engineer and 2 electrical engineers. The business will employ additional apprentices when the current ones complete their agreements. In the 2006/2007 financial year, Copper Mines has identified 50 people for training in the Certificate III in Metalliferous (Processing). Their preferred training provider is TAFE Tasmania. Commercial-in-Confidence Page 19 of 65 19 In the 2005/2006 financial year $300,000 was expended on employee training and development. This amount excludes, for example, the costs associated with backfilling positions. Consultation: TAFE Tasmania TAFE Tasmania delivers training and assessment services for 27 qualifications in the Metalliferous Training Package. Currently TAFE Tasmania has about 175 people on Metalliferous training package related traineeships and apprenticeship. Approximately 115 in the open cut mining area and 80 in the mineral processing (some people are represented in both industry areas). Current Training Delivery is as follows: Zinifex at Rosebery about 70 people doing Certificate III in Underground Mining and Mineral Processing; and, Barminco has 12 people doing the Certificate III in Underground Mining and Mineral Processing. In the 2006-07 financial year, TAFE Tasmania anticipates training delivery contracts with: Henty Gold Mine who have approximately 60 workers undertaking the Certificate III in Metalliferous Mining Operations (Underground); and, About 10 mangers from number Henty Gold Mine will undertake A Certificate IV in Mine Operations (which has units that map to Frontline Management). Future training opportunities for TAFE Tasmania include: Renison Mine is anticipated to recommence operations in 200607 and will require delivery of qualifications from the Metalliferous training package: and, Allegiance Mining at Trial Harbour will be mining nickel and could require training in DRT21103Certificate II in Drilling - Water Well Commercial-in-Confidence Page 20 of 65 20 TAFE Tasmania reported that for all mining operators the preferred method for training delivery is on the job. However much of TAFE’s training uses an auspiced assessment model (training existing mining workers as the specialist who conduct the workplace assessment) with TAFE doing the RTO compliance paperwork. TAFE Tasmania ran a Pre-Employment Mining Course in Queenstown in 2005. This course bundled competencies into skill sets from the Certificate II in Open Cut Mining, Certificate II in Underground Mining and the Certificate II in Mineral Processing. The outcome was as follows: Two locals (residents of the West Coast) attended the pre-employment course. All other participants travelled from Devonport and Hobart they recognised it as an entry pathway into the mining industry. About 85% of the course participants have secured employment after successfully completing the training and assessment requirements (a number were employed on a contractual basis with Skilled Engineering). Mike Jack TAFE Tasmania reported that 180 people have completed their mining qualification from the West Coast since 2001 and that only three of graduates were female. TAFE Tasmania identified the following barriers around training delivery for the West Coast Municipality: Because the West Coast is an Isolated area and most training needs have to be accessed through Burnie; Induction Programs (MATCSTA) are only held at Beaconsfield or Rosebery and difficult for West Coast residents to access; Finally, a lack of transport (bus service between West Coast Towns) makes delivering group training difficult. Often training sessions are cancelled because group sizes are too small. Synopsis Human resource (or manpower) planning is not common practice within West Coast mining businesses. The mining businesses interviewed did not have a human resource information system or access to employee demographic information. Businesses did however tract recruitment and attrition rates. These were approximately 10 percent across the major employers. Commercial-in-Confidence Page 21 of 65 21 In terms of selection and recruitment strategies Henty Gold uses the Internet and newspapers and promotes the natural environment and life style choices. Copper Mines on the other hand, promotes an international career pathway for university graduates interested in developing management skills. For vocationally trained workers Certificate III qualifications from the Metalliferous training package were the most frequently delivered training course. The assessed training needs for vocational qualifications were as follows: Business Setori Engineering Qualification Certificate IV Frontline Management Certificate III Metalliferous Mining Operations (Underground) Certificate III Metalliferous Mining Operations (Processing) None Hellyer Mine Not Known Henty Gold Mine Copper Mines Numbers 12 56-60 50 nil The reported enrolments were as follows: Current Enrolments Zinifex Barminco Certificate III Metalliferous Operations 70 (Underground and Processing) Certificate III in Metalliferous Operations 12 (Underground and Processing) Commercial-in-Confidence Page 22 of 65 22 Wild Fisheries and Aquaculture As a state-wide industry the Fishing and Aquaculture sector contributes an estimated $280,000,000 to the Tasmanian gross production of $1,136,000,000, and $373,000,000 to the value added food production of Tasmania $2,091,000,0002. Salmonid production from the Macquarie Harbour region on the West Coast contributes approximately 11% to Tasmanian’s total Salmonid production. The Fishing and Aquaculture industry on the West Coast of Tasmania is represented by two sectors: 1. Wild Catch 2. Marine Farming Employment within these sectors covers three main occupational grouping areas: Fishing sector includes work undertaken by deckhands, fishers, skippers of fishing vessels, managers of fishing operations, business managers, divers and fishing charter operators. Aquaculture sector includes work undertaken by field hands, leading hands, technicians, supervisors, quality assurance officers, operations managers and aquaculture business managers, land-based, water-based and hatchery operations. Seafood processing, sales and distribution sector includes work undertaken by basic and skilled process workers, leading hands, distributors, seafood retailers and wholesalers, supervisors, managers and seafood importers and exporters. Australian Bureau of Statistics (ABS) data is not broken down in sufficient detail to be very useful for determining the contribution that the seafood industry makes to employment and regional development within the West coast region. The information provided also tends to be inconsistent with information collected from other sources such as the number of boats, fishing licenses etc, and other forms of fishing regulation. 2 Source: DPIW- The State of Growth Report 2005-2006 Commercial-in-Confidence Page 23 of 65 23 External Operating Environment Changes in the external operating environment can create a need to train or retrain staff. Some examples of external operating changes are: Political Changes: Government policies and priorities Funding Legislation or regulation Economic Changes: Resource availability Consumer demand Competition Demographic Changes: Availability of qualified labour Labour costs/wages Ageing Population Technology Changes: Introduction of new technology The Internet The following section provides a snapshot of changes in the external operating environment at an industry level. How changes are effective businesses is illustrated through a series of case study exhibits. The globalisation of commodity products and an increase in foreign competition has lead to the rationalization of investment in this sector. The structure and operation of the Tasmanian seafood industry along the whole production chain is changing at an accelerated pace. In response to these changes the sector has recognised the need to increase its skills and knowledge in the area of business development: 3 Understanding of the impact of climate change Understanding of marine resources and business development practices Understanding the economic and business environment Ability to apply human resource management practices Ability to apply best practice and quality management systems3 Future directions – Tasmanian Seafood Industry 2005/2006 Commercial-in-Confidence Page 24 of 65 24 Challenge of the industry is the maintenance and protection of both the marine environment and its resources. Showing accountability for environmental practices throughout the supply/value chain. Achieving balance between growth and environmental sustainability Creating environmentally sustainable practices and production technologies Developing standards designed to support and deliver products The information in the following section was provided by Peak Bodies rather than individual employers. This was because, despite persistent follow-ups, employers were difficult to contact. Desktop research and consultations with Peak Bodies provided the following snapshot of the West Coast fishing and aquaculture industry. Commercial-in-Confidence Page 25 of 65 25 Business Overview Wild Catch (including Rock Lobster) This industry is seasonal and fluctuates from 20 to 80 fishing vessels operating from the port of Strahan. The number of workers in this area is unknown due to the structure of operations Marine Farming 46 full time equivalent staff employed on the West Coast Main businesses: 1. Petuna Pty Ltd – trading as Petuna Seafoods Wholesale Contractors of Salmon, Trout and Shark Employees: 100 Statewide Annual Revenue : approximately $21,000,000 2. Tassal Group Limited Wholesale Distributor Producer of Atlantic Salmon Employees: 500 Statewide Annual Revenue: approximately $100,000,000 3. Southern Ocean Trout Pty Ltd Trout farming Operation Employees: 8 Annual Revenue: unknown Commercial-in-Confidence Page 26 of 65 26 Consultations: Australian Maritime College There is a reportedly huge demand on the West Coast for people who have the skills and meet the licensing requirements necessary to operate fishing vessels and tourism ferries, charter vessels. The globalization of commodity products and an increase in foreign competition has lead to the rationalization of investment in this sector. Government policy (for example changes in marine protected environments) and regulatory environment drive the need for training (Figure 7). GST Resource Availability Consumer Demand Competition Government Policy Government Funds Population Changes Internet Technology Tourism Qualified Labour Labour Costs Legislation/Regulation Economic Conditions Figure 7: Wild catch and marine farming operating environment Commercial-in-Confidence Page 27 of 65 27 Regulatory Environment Licensing and regulatory controls can apply to the range of work environment layers in the fishing and aquaculture industry (Figure 8): Work Practices Work Places Regulatory Environment Requirements Work Equipment Occupational Licensing Workers Figure 8: Scope of licensing and regulatory control For vocationally trained fishing and aquaculture workers there are no specification occupational licensing requirements. In terms of work equipment no specific competency tickets are required. Commercial wild-harvest fishing is a very hazardous occupation because the sea is an inherently dangerous environment. The seafood industry mainly uses small boats; ports are often distant from fishing grounds; and workers are on a mobile platform, usually wet and often at night, close to moving machinery. The fatality rate, at 89 deaths per 100,000 workers (nationally) per year, is 16 times higher than the all-industry rate of 5.5 deaths. The seafood industry is investing more in improvements in workplace safety and associated training. Training directly related to regulatory environment: Coxswain Deck Coxswain Navigation Commercial-in-Confidence Page 28 of 65 28 Coxswain Engineering Elements of shipboard safety Live transport and chemical safety Marine Radio Operators Certificate of Proficiency Wader Safety Fork lift license Deck machinery and lifting appliances Food Safe Handing Standards Commercial-in-Confidence Page 29 of 65 29 Human Capital Management There are a variety of approaches for human capital or workforce development (Figure 6). This section explores those strategies used by mining enterprises to retain, develop and manage their human resource functions. The following section focuses on mainly training issues surround the fishing and aquaculture industry. Figure 9: Facets of human capital management Commercial-in-Confidence Page 30 of 65 30 Consultation: Australian Maritime College The Australian Maritime College (AMC) reported a high demand on the West Coast for people who have the skills and can meet the licensing requirements necessary to operate fishing vessels and tourism ferries, charter vessels for example Coxswains, Master 4, Master 5 and engineering certificates. While AMC is training a number of Tasmanian’s they also cater for interstate students as well. This workforce is described as being highly mobile (as the certification and qualifications are recognised all over Australia). Delivering training to West Coast students may not always result in an increased skilled workforce on the West Coast, as experience has shown skilled workers will travel wherever the work is. Recent growth in tourism on the West Coast has led to a demand from for deckhands training in Strahan. Recently AMC have provided a deckhands course that included training in: shipboard safety, first aid, food handling safety, providing hospitality, communications etc. This training was designed as a response to the industry requirements, focusing on specific skill sets rather than qualifications. Barriers to undertaking training were identified as: Distance and time requirements “ Time Off Work Factor” The Master 5 (for example) means weeks and possibly months away from the work environment to complete. People are undertaking this level of training while between employment as they can not take that much time away from work. Training for this sector needs to be scheduled in the off fishing season Recruitment Strategies Companies general recruit for this sector using newspaper advertisements, but an increasing number of employers are making contact with AMC to promote job opportunities to those students about the graduate. Larger companies in this sector are providing subsidized housing to attract and retain staff. During September companies are ramping up their operations and the work force can double at this time of year. Commercial-in-Confidence Page 31 of 65 31 Consultation: Seafood Training Tasmania Seafood Training Tasmania is an RTO and a not for profit born out of the old Industry Training Advisory Board. The training needs were identified as follows (Table 3): Table 3: Training requirements of the wild catch and aquaculture industries Area Wild Catch Aquaculture – salmon farming and oyster farming Training Requirements Sector does not embrace training Those working in the industry are paid a percentage of the catch and are not classed as employees – not eligible for funding incentives Wild Catch is the worst sector (than any other) for deaths and injuries but these statistics not reported within Workplace Standards data as they are not considered employed. Could really do with: OH & S Training, Sea survival and Food Safe Handing Standards Training is provided under the traineeship model – mainly at Certificate III level Training in licensing requirements: Food Safe Handing Standards- identified as high risk when standards come in May 2007 Forklift and Coxswains Currently has about 3 trainees on West Coast Rock Lobster Training is only within the regulator framework licensing requirements: Masters 4, MED2, MED3 Other skills in demand on the West Coast were identified as: Maritime sector (particularly in Strahan) for people with deckhand skills to work for the ferry operators. This is a growth industry and training required would be : Shipboard safety, first aid and communication skills Training in response to the licensing requirements of the Food Safety Standards Commercial-in-Confidence Page 32 of 65 32 Barriers to undertaking training: Training providers need to recognize and work around the industry seasons- providing training in the “out of fishing season”. Seafood Tasmania responds to West Coast training requests by going to the region in non fishing seasons and structuring courses to minimize time away from work – but still find that people don’t turn up and running programs with less than 8 participants is not cost effective. Other Issues The recent changes to the incentive scheme (removal of the rural and regional incentives) has meant a loss of about $2000 per traineeship and this will reduce those employers willing to take a new trainee on – “the incentive isn’t worth it now” Commercial-in-Confidence Page 33 of 65 33 Consultation: John Kirwan and Associates Kirwan and Associates specialize in safety related training to the aquaculture industry. Over the past 12 months Kirwan and Associates have delivered occupational health and safety [and related] training to six West Coast businesses and 25 individuals. Registered Training Organisation Employees- 4 FTE Specialises- Regulatory and Legislative Compliance This training is around regulatory and legislative skill clusters rather than whole qualifications. Units of competency delivered to the aquaculture industry in the 2005-06 financial year were: SFIAQUA310B SFIAQUA405B SFICORE106A SFIDIVE301A SFIDIVE302A SFIDIVE303A SFIDIVE304A SFIDIVE305A SFIDIVE306A SFIDIVE307A SFIDIVE308A SFIFISH201B SFIOBSV303A SFIOHS301B Oversee emergency procedures in an aquacultural enterprise Develop emergency procedures for an aquaculture enterprise Meet workplace OHS requirements Work effectively as a diver in the seafood industry Perform diving operations using surface-supplied breathing apparatus Perform diving operations using self-contained underwater breathing apparatus Undertake emergency procedures in diving operations using surface-supplied breathing apparatus Undertake emergency procedures in diving operations using self-contained underwater breathing apparatus Perform compression chamber diving operations Perform underwater work in the aquaculture sector Perform underwater work in the wild catch sector Provide support for diving operations Collect routine fishery management data Implement OHS policies and guidelines In consultation with industry, Kirwan and Associates have adopted blended training and assessment strategies. For example, the competencies of divers are developed through theoretical classroom based sessions and then assessed and reinforced on-the-job. On the other hand, infection control training is delivered online and competency assessments are conducted in the workplace. Commercial-in-Confidence Page 34 of 65 34 Synopsis The West Coast Fishing and Aquaculture industry is primarily located in the Macquarie Harbor, Strahan and represented by the Wild Catch and Marine Farming sectors There are three main operators involved in Marine Farming on the West Coast and information about the Wild Catch sector is difficult to obtain due to the nature of wild fishing operations. The globalization of commodity products and an increase in foreign competition has lead to the rationalization of investment in this sector. The structure and operation of the Tasmanian seafood industry along the whole production chain is changing at an accelerated pace. The seafood industry is investing more in improvements in workplace safety and associated training. The focus of training in this industry is mainly to do with meeting regulatory requirements, ensuring safety requirements than achieving nationally accredited qualifications. Training is provided primarily with this focus in mind and around specific skill set areas. There is a high demand on the West Coast for people who have the skills and can meet the licensing requirements necessary to operate fishing vessels and tourism ferries, charter vessels eg : Coxwains, Master 4, Master 5 and engineering certificates. Barriers to Skill Development for the Fishing and Aquaculture industry were identified as: Distance and time requirements “ Time Off Work Factor” Training for this sector needs to be scheduled in the off fishing season Commercial-in-Confidence Page 35 of 65 35 Tourism and Accommodation Tasmania's economy continues to benefit from a strong tourism industry. The Tasmanian Visitor Survey results showed a record 855,100 people visited the state in the 12 months ending March 2006, up 7% from 2005. A key contributor to Tasmania’s record tourism growth is the vastly improved access to the state and keen competition between transport carriers. Of the 855,100 people who visited the state in the 12 months ending March 2006, 805,300 were scheduled air and sea visitors, 48,000 were passengers and crew from cruise ships, and 1,700 were navy ship personnel. Tasmania's visitors generate approximately $1.8 billion in expenditure annually. Visitor expenditure in Tasmania comprises: domestic visitors $983.2 million (Tasmanian Visitors Survey: March 2006) international visitors $163.5 million (Tasmanian Visitors Survey: March 2006) intrastate visitors $599 million (National Visitors Survey: Tourism Research) While tourism to Tasmania continues to grow annually, the spectacular rate of growth experienced in recent years is softening. Altered travel patterns, increased competition and rapid technological change are creating a new environment for the Tasmanian tourism industry. In response to the increased availability of low-cost airfares, Tasmania’s visitors are taking shorter and more frequent trips, and increasing numbers are coming here to visit friends and relatives. Commercial-in-Confidence Page 36 of 65 36 External Operating Environment Changes in the external operating environment can create a need to train or retrain staff. Some examples of external operating changes are: Political Changes: Government policies and priorities Funding Legislation or regulation Economic Changes: Resource availability Consumer demand Competition Demographic Changes: Availability of qualified labour Labour costs/wages Ageing Population Technology Changes: Introduction of new technology The Internet The following section provides a snapshot of changes in the external operating environment at an industry level. How changes are effective businesses is illustrated through a series of case study exhibits. The Tourism Council Tasmania identified the following factors that are impacting on the external operating environment of accommodation and tourism businesses across Tasmania: The intention of interstate people to holiday in Tasmania is declining; The growth in low cost airfares has resulted in a reduction in the length of stay by holiday visitors. As a consequence of the declining length of stay, industry yields have plateaued; There is however a growth in the number of people who visit their Tasmanian friends and relatives. These people are staying longer than holiday visitors; Total employment in Tasmania continues to grow while the tourism job growth rate has plateaued ; Commercial-in-Confidence Page 37 of 65 37 There is a trend for Tasmanians to holiday interstate. This is a result of low cost airfares; and, The outlook for Tasmania is for a period of relatively flat domestic performance with the potential for decline in the face of increasing competition in the domestic marketplace from other states. West Coast Municipality Tourist Projects Current accommodation and tourism projects in the West Coast Municipality are: The Corinna Tourism Resort (Corinna) is currently under construction and should be completed in 2007. The proprietors are Tarkine Wilderness P/L (Ken Boundy) and the facility will provide wilderness and eco tourism experiences. The Value of this project is approximately 7 million (AUD); An initiative of the Cradle Coat Authority, the Cradle Coast Touring Strategy, is upgrading roadside infrastructure for touring in the West Coast Municipality. The value of the project is 3.5 million (AUD) and it should be completed by late 2007; Cradle Coast Mining Heritage Experience Strategy (2006-2009) aims to build a tourism experience that recognises the West Coast’s mining heritage and cultural assets; and, Cradle Coast Walking trails project is reviewing recreational trails (walking, horse riding and cycling trails) throughout the region to development a strategy for networked multi-use trails. Recently completed projects in the West Coast Municipality are: Mulawa Management Pty Ltd (Federal Resorts) West Coast Wilderness Railway. The value of this project was 32 million (AUD); and, The Lady Jane Franklin 2 which is a luxury catamaran operated by Federal Resorts (owned by Mulawa Management Pty Ltd. The value of this project was 4 million (AUD). Current tourism activity levels for West Coast Localities are contained in (Table 4); Commercial-in-Confidence Page 38 of 65 38 Table 4: West Coast tourism activity levels Destination: Visitors Passed Through Visitors Stopped Visitors Stayed Overnight Total Visitors Queenstown 54460 80280 44440 179180 Strahan 5840 49090 111850 166790 Tullah 69030 28580 8790 106400 Zeehan 60840 57330 13130 131300 Other West Coast 24070 27760 31000 82830 8230 5780 14010 Pieman River/Corinna Commercial-in-Confidence Page 39 of 65 39 Consultation: Federal Hotels and Resorts (Strahan) Structure- Australian Proprietary Company, Federal Hotels and Resorts reported that the Tasmanian tourism market has plateaued. Annual Revenue- Mulawa Management Pty Ltd (unknown) Consequently the business is consolidating and building its ‘brand’. Products- Experienced based tourism (Strahan Village, West Coast Wilderness Railway, Gordon River Cruises Limited By Shares Employees- 200 Federal Resorts Positive Impact Federal Resorts Negative Impact Demographic Changes Technology Population Changes Resource Availability Political Changes Business Life Cycle- Established business Internet Economic Changes Technological Changes Labour market issues were reported to be a significant driver of business strategy. In particular difficulties attracting employees from the West Coast community and high turnover rates in some occupational groups (e.g. Food and Beverage Attendants). Qualified Labour Labour Costs Consumer Demand Competition Legislation/Regulation Government Policy Government Funds Figure 10: The external operating environment of Federal Hotels and Reports Commercial-in-Confidence Page 40 of 65 40 Consultation: Anchordown Anchordown is a micro-business (or life style business) and has been trading for two years. The business is positioned to offer boutique style accommodation and meals. Currently most of Anchor down’s bookings occurred over the Internet. Products- Accommodation & Restaurants. Structure- Trading Trust Business Life Cycle- Start up, trading 2 years Internet Population Changes Resource Availability Political Changes Demographic Changes Technology Economic Changes Technological Changes Anchordown reports challenges that face most new Employees- 2 business. Namely how to group the business, maintaining cash flow and competition from Federal Hotels and Resorts (Figure 11). Anchordown Positive Impact Anchordown Negative Impact Qualified Labour Labour Costs Consumer Demand Competition Legislation/Regulation Government Policy Government Funds Figure 11: The external operating environment of Anchordown Commercial-in-Confidence Page 41 of 65 41 Consultation: Castaway Holiday Apartments Castaway Holiday Apartments is an owner operator micro business located in Strahan. The owners have position the business to capture a self-catering market that wants to prepare their own meals etc. The business is established and has started entered a growth phase. Products- Self-Catering & Accommodation services Structure- Sole Trader Business Life Cycle- Established, growth phase Political Changes Economic Changes Demographic Changes Technological Changes The business receives most of its bookings via the Employees- 2 internet and receives customers from mainly interstate and overseas. The owners of Castaway are experienced in the tourism industry and have positioned their business to be ‘immune for population and labour market drivers of skill change’. The owners attend trade and tourism events to stay abreast of industry changes (Figure 12). Internet Technology Population Changes Qualified Labour Castaway Holiday Apartments Positive Impact Labour Costs Castaway Holiday Apartments Negative Impact Resource Availability Consumer Demand Competition Legislation/Regulation Government Policy Government Funds Figure 12: The external operating environment of Castaway Holiday Apartments Commercial-in-Confidence Page 42 of 65 42 Regulatory Environment Licensing and regulatory controls can apply to the range of work environment layers in the hospitality and tourism industry (Figure 13): Work Practices Work Places Regulatory Environment Requirements Work Equipment Occupational Licensing Workers Figure 13: Scope of licensing and regulatory control For vocationally trained hospitality and tourism workers there are no specification occupational licensing requirements. In terms of work equipment no specific competency tickets are required. Work places however have licensing and other requirements. Examples include meeting council requirements around the Building Code and food handling. Specific work practices of some job roles may however required evidence of best practice training. Examples of the job roles affected included: Tour guiding, which requires remote area first aid and search and rescue; Deckhand, which requires Coxswain Competency and Senior First Aid; Chefs, who require HASSOP training. Responsibility for currency of competency regulated work practices is an employer’s duty of care. Employers typically keep training records for employee competency and contract a registered training provider to deliver specialist duty of care related training. Commercial-in-Confidence Page 43 of 65 43 Human Capital Management There are a variety of approaches for human capital or workforce development (Figure 14). This section explores those strategies used by mining enterprises to retain, develop and manage their human resource functions. The following section focuses on three key human resource (HR) functions: 1. Workforce Planning 2. Selection and Recruitment 3. Human Resource Development (namely, training and career development) Figure 14: Facets of human capital management Commercial-in-Confidence Page 44 of 65 44 Consultation: Tourism Council of Tasmania Tourism Council Tasmania undertook a skills development analysis in the West Coast and the following findings and recommendations were reported in March 2004. The Council’s objectives were: 1. To develop a formal for identifying skill development clusters; and, 2. To develop cooperative arrangements with training providers for the effective delivery of training [through the framework of the National Tourism Accreditation Business Development Program]. The findings of this project were as follows: Skill development was not always the most appropriate option to help a business address their needs. Other options such as specialist advice, development of policies and procedures, performance management, or recruitment were often more relevant. Analysing the training needs of participating businesses proved to be difficult, as many did not want to pursue training that addressed knowledge and skill gaps. Training organisations were reluctant to tailor solutions to tourism business requirements (particularly in relation to the size and experience of the business operator). Businesses were slow to uptake training because it was often marketed poorly. For example, venues at appropriate locations (particularly regional), affordability, tailored courses and workshop times were all barriers affecting the uptake of training programs. Relationships and networks with local associations and organizations are a driver of training uptake. For example, businesses are reluctant to support a training course unless it is endorsed by a trusted organisation (e.g. local tourism association or business enterprise centre). Barriers or difficulties that West Coast tourism operators reported as reasons why they were not interested in training included: Commercial-in-Confidence Page 45 of 65 45 Lack of reliable staff to cover either managers or other employees to attend training; Operators did not understand the relationship between skilled staff, productivity and profit; Confident businesses felt that they have excellent skills- and cannot see how anyone else could help; Previously unsuccessful initiative have left a negative impression about the value of training interventions; Perceived inflexibility of training providers to be able to deliver in modes that are appropriate to individual businesses; and, Businesses did not see value in generic courses. Such courses were perceived as lacking relevance to individual business needs. Also, the lack of options in terms of times and values alienate businessesbusinesses have the attitude that delivery factors are driven by training providers rather than the customer. Tourism Council Tasmania has done some specific work on some of the problems faced by the State’s tourism industry as a whole and provide the following comments. There is a need for a coordinated education program for the tourism and hospitality industry on human resource planning to focus on accessibility (maximizing the use of digital media) and be communicated in simple terms which make sense to industry. “Packaging” of career opportunities needs to be made more attractive to potential employees, and should not create unrealistic expectations. This should encompass better coordination with the training sector, including VET in schools. The tourism industry is characterised by a high percentage of casual labour, reflect the dynamics of the industry. Casual employment should not be a barrier to government subsidized training programs. Re-entry or mature-age programs should be further investigated; the success of such programs is highly dependent on achieving outcomes of the abovementioned objectives. Commercial-in-Confidence Page 46 of 65 46 Consultation: Federal Hotels and Resorts Human Resource Planning Federal resorts are rolling out a human resource information system. The businesses will soon have the capacity to track undertake human resource planning and measure key human capital metrics. Federal’s west coast businesses employ 200 people: 55 on the West Coast Wilderness Railway; 25 on the Gordon River Cruises and 120 and Strahan Village. Accurate data is available for attrition and recruit rates for the 2005 calendar year. Workforce Planning- Implementing a Human Resource Information System to accurately apply human resource accounting and planning Career Planning- Implementing strategies to develop lateral and horizontal career pathways between VET in schools and Federal resorts Training & Development- Positioning Federal Hotels and Resorts as a market leader in quality training Employees55 West Coast Wilderness Railway 25 Gordon River Cruises 120 Strahan Village Selection and Recruitment In the 2005 calendar year Federal’s Strahan operation had the following employee exit rates: 9 full-time 2 part-time 12 salaried 57 casual Separation rates by position titles are as follows: 28 Food and Beverage attendants (including 8 Stewards for the railway that have some basic guiding/interpretation responsibilities and require some specialised legislative/safety training/skills) 5 Cleaners 8 Kitchen Cleaning hands 5 Engineers (train) 1 Fireman (train) 7 Retail/Sales 3 Maintenance (1 x Train) 1 Master (boat operations) Commercial-in-Confidence Page 47 of 65 47 1 On-board Supervisor (boat operations – requires some specialised legislative/safety training/skills) 2 Reception/Front Office 2 Chefs 7 Housekeeping 6 Activities Centre 2 Guides 2 miscellaneous/corporate The attrition rate during the 2005 calendar year was 47%, however it is important to note that seasonal demand equates to approximately 32 new employees (excluding train operations) for the 2006 summer holiday period, or about a 25% from the winter season. Most new recruits are seasonal, so the high attrition rate is [to some degree] expected. Unfortunately Federal Hotels and Resorts do not have data regarding employee qualifications and demographics fully entered into the Human resource information system. So the business cannot easily access information relating to age groups of separated employees. Federal Hotels estimates that the highest separation rates are in the 15 – 24 and 25 – 34 age groups. The average tenure of those separated was 379 days. (This is similar across all Federal Group properties and businesses). After high attrition during the first 12 months of employment, Federal’s tenure is generally is generally between 2 and 5 years. In the 2005 calendar year, Strahan recruited: 8 full time 18 part time 207 casual 10 salaried employees. Unfortunately the business cannot easily access data relating to age groups or qualifications of recruited employees. “It would be safe to say however that a significant number would be in the 15 – 24 and 25 – 34 categories”. Federal’s recruitment methods are largely traditional namely print and on-line media. However in the last 6 months the methodology for Commercial-in-Confidence Page 48 of 65 48 Federal’s tourism properties is broadening to include more networking (including developing relationships with education providers such as Don, Hellyer, and TAFES), targeted/campaignbased advertising, reliance on Expos/Careers Fairs and enhanced development and management of candidate databases. This is in a direct response to the on-going and increased challenges of recruiting in a small population with skill and candidate shortages. Federal has a policy of employing candidates from within Tasmania whenever possible. Recruitment by position title in the 2005 calendar year were as follows: 4 Retail/Sales (including 1 Manager) 2 Activity Centre 3 Cooks 2 Apprentice Cooks 10 Housekeeping 2 Guides 2 Miscellaneous/Corporate 3 Maintenance 2 Masters 5 Front Office 35 Food and Beverage Attendants (including 9 train Stewards, 1 Manager and 1 Supervisor) 7 Kitchen Cleaning 10 Train operations (fitters, engineers, cleaners, gangers etc) Human Resource Development A recent climate revealed that employees prefer face-to-face training. Consequently most training is now delivered on the job. Training entry requirements into Federal Strahan operations is via way of a Service Skills Induction Program. This aims to the correct mindset around “experience” based tourism. Traineeships and Apprenticeships Commercial-in-Confidence Page 49 of 65 49 Federal Resorts report that they can only access funded pathways for commercial cookery and that National skill shortage data does not reflect business operations in the West Coast Municipality4. “There is a need in the West Coast to provide funding for a wide scope of qualifications”. The business reports that food and beverage in particular is a pathway they would like funded. Also the Federal Resorts reports that greater flexibility around timeframes for completing Certificate III and IV new apprenticeships and traineeships would align funded pathways with business operations. Federal would ideally like to use the winter season to deliver intensive training. Employees on traineeships could thus fast track qualifications. “Whilst employees would not stay in Strahan for two years, they would be included to stay a lot longer than 4 months.” To improve retention rates, Federal would like to offer employees pathways through their businesses. However the legal structure of Mulawa enterprises does not align with the legal requirements for traineeship funding. Federal Resorts market research suggests the organisation is an attractive employer to the 20-25 year old age group. These people are better suited to traineeships because it is about skill acquisition. For the ‘stable’ local population of employees however, training that focuses on up skilling rather than skill acquisition is more appropriate. Funding support would be especially beneficial to the ‘stable’ employee group as it increases the long term productivity and viability of the West Coast area. Federal Hotels and Resorts Strahan operations estimate it needs the following new apprenticeships and traineeships (Table 5) 4 The methodology for collating skills shortage data is reported in the consultation with Chris Fallon from the Department of Employment, Science and Training (DEST). Commercial-in-Confidence Page 50 of 65 50 Table 5: Training demand for Federal Hotels and Resorts: Job Role Qualification THH31502 Certificate III in Hospitality (Commercial Cookery) Chef Commercial Cookery THH41302 Certificate IV in Hospitality (Commercial Cookery) Food and Beverage THH33002 Certificate III in Hospitality (Operations) Guiding Housekeeping Fitter and Turner THT30902 Certificate III in Tourism (Guiding) THT40302 Certificate IV in Tourism (Guiding) THH33002 Certificate III in Hospitality (Operations) MEM30298 Certificate III in Engineering (Mechanical Trade) Numbers 3 8 Up skilling in management Certificate IV Different funding model to support traineeships 35 3 5 1 Federal Resorts also reports that skill sets or clusters are more important to some job roles than a single qualification. Gordon River Cruises, for example, requires multi-skilled employees with the following skill sets: Remote area first aid; Food and beverage attendant; Deck hand skills with a Coxswain ticket; and, Guiding and interpretation skills. “The business needs to train for skill sets rather than specific qualifications. Skill set based training could also be used to create career pathways… it’s the skills passport notion. Commercial-in-Confidence Page 51 of 65 51 Consultation: JobNet As a provider of employment and new apprenticeship services on the West Coast, JobNet identified the most important skill development areas for hospitality and tourism as: Customer Service – especially working with culturally diverse groups (tourism and hospitability); Guiding Courses (tourism); Safe Food Handling; and, Fist Aid – Workplace Level 25. “The first aid trainer who was a resident in Queenstown, and could fill a course of up to 15 people, has retired and there is no access to local first aid training” JobNet 5 Commercial-in-Confidence Page 52 of 65 52 Synopsis The West Coast accommodation industry is located mainly around the Strahan and Queenstown localities (14.10 and 5.3 percent respectively). The accommodation, cafe and restaurant industry is denominated by Federal Hotels and Resorts and supported by micro-businesses. Experiential tourism is an emerging industry and is attracting new business to the West Coast area (e.g. Corinna Tourism Resort). Unique climatic, geographic, social and demographic characteristics of the West Coast Municipality interact to influence the availability of qualified labour which impacts on the business operations of larger employers. For example, the peak season Federal Hotels relies on seasonal labour. This labour force is typically between 20-25 years old, travelling, limited experience in hospitality or tourism and blends a travelling holiday with work opportunities. Smaller businesses, on the other hand, are more often owner operated and do not rely on casual labour to support their operations. Whilst there are adequate labour resources in the West Coast municipality, structural barriers limit access to employment. These barriers were identified as; A lack of public transport between West Coast localities; A lack of childcare facilities; and, A lack of basic employability skills; Reliance on seasonal labour was identified by Federal Hotels and Resorts and having a negative impact on the community. This is because: Seasonal labour requires training during the peak season. Their lack of work experience impacts on the quality service quality and ultimately referrals and repeat business to the region; and, Training is not invested in the local community, but rather in a transient population. Federal Hotels and Resorts are investing in strategies to improve labour supply and retention. These include provide placements and training to VET high school students at Strahan Village and other Federal resorts (e.g. Cradle Mountain and Freycinet); creating partnerships with Registered Training Organisations that positions Federal Hotels and Resorts as a ‘school of excellence”; and, multi skilling employees to be competent in skill clusters. Commercial-in-Confidence Page 53 of 65 53 Small Business Environment Twenty two small businesses were contact as part of the consultation processes. These businesses completed a short questionnaire about their operating environment. Follow up telephone calls with a selected sub sample identified no requirements around “accredited training”. Rather they talked about the need for targeted business development (similar to the Department of Economic Development Workforce development fund model). The characteristics of business responding to the survey are summarised below. The majority of businesses were in the accommodation and restaurant industries (11 businesses) (Table 6). Table 6: The distribution of industries in which small business operate Accommodation, cafes, restaurants Construction Manufacturing Manufacturing and maintenance Mining Property and business services Retail Tourism Total Frequency 6 3 1 1 1 1 4 5 22 Commercial-in-Confidence Page 54 of 65 Percent 27.3 13.6 4.5 4.5 4.5 4.5 18.2 22.7 100.0 54 The ownership structure of businesses varied- there were 8 companies 6 partnerships and 6 sole traders Table 7. Table 7: Small business ownership structures Frequency 8 6 6 2 22 Company Partnership Sole Trading Trading Trust Total Percent 36.4 27.3 27.3 9.1 100.0 The geographic reach of nine business included overseas markets. Eight businesses were focused on the local West Coast market Table 8. Table 8: The reach of small business customer markets Frequency 9 &Overseas 3 All of the above Intrastate, Interstate Markets Local Market (West Coast LGA) 8 Local Market (West Coast LGA) & 2 Interstate Total 22 Percent 40.9 13.6 36.4 9.0 100.0 Most of the businesses were “established” and one business was in the “start-up” phase (Table 9). Table 9: Small business development phases Established Growth Growth, Established & Mature Mature Start up Total Frequency 9 6 2 4 1 22 Commercial-in-Confidence Page 55 of 65 Percent 40.9 27.3 9.1 18.2 4.5 100.0 55 Most business had been established for more than 6 years, and some for more than 16 years (Table 10). Table 10: Trading duration of West Coast small businesses Frequency 7 6 3 5 21 1 22 Less than 5 years between 6 and 10 years 11 to 15 years more than 16 years Total Missing Value Percent 31.8 27.3 13.6 22.7 95.5 4.5 100.0 Collectively, the small business had a negative economic outlook on the availability of labour, the cost of labour and the effects of competition. New technologies such as the internet were reported as a driver of business growth. -10 -5 Political Changes Economic Changes Demographic Changes Technological Changes -15 0 5 10 15 Internet Technology Population Changes Qualified Labour Small Business Survey Negative Impact Labour Costs Small Business Survey Positive Impact Consumer Demand Competition Legislation/Regulation Government Policy Government Funds Figure 15: Operating environment of small t o medium enterprises Commercial-in-Confidence Page 56 of 65 56 Synopsis Small to medium businesses (including micro businesses) comprised about 80 percent of registered businesses in the West Coast Municipality. The surveyed businesses were mostly transaction and/or life style focused micro business with fewer than 5 employees. Their business strategies focused on geographic fit rather than horizontal or vertical growth. These businesses did not identify AQF training as a high priority, and were more focused on responding to changes in the external operating environment (Figure 16). Business Size Community Focus Vertical Scope Life Style Transaction Base Trade-Offs Fit Amongst Strategy Manufacturers & Service Providers For example: Setori Engineering Employees-55 Vertical Scope Horizontal Scope Geographic Scope Knowledge +/or Technology Based Horizontal Scope Geographic Scope Level of Momentum For example: Quarry Home Improvements Employees- 1 Figure 16: The economic positioning of micro or transaction based businesses Commercial-in-Confidence Page 57 of 65 57 The Impact of Economic ad Community Development on the West Coast Economic and community development initiatives include commercial projects, funding from grants and community development projects such as TASCOSS Partnerships to Jobs Program which will target the West Coast and other disadvantaged municipalities. Intrastate economic and community development initiatives can also affect the west coast municipality. The Bell Bay Pulp Mill, for example, construction phase will offer employment to around 3000 people. West Coast Infrastructure Projects Desktop research revealed the following projects that are either under consideration or have commenced construction phase. Sector: Company: Project: Value ($): Status: Electricity Gas and Water Supply Hydro Tasmania Heemskirk wind farm 270 million Under Consideration Sector: Company: Project: Value ($): Status: Mining Allegiance Mining Avebury Nickel Mine Zeehan 30 million Under Construction Sector: Company: Project: Value ($): Status: Mining Bluestone Tin Rentails 50 million Under Consideration Sector: Company: Project: Value ($): Status: Electricity Gas and Water Supply Hydro Tasmania Rosebery Diesel Generation Plant N/A Under Construction Commercial-in-Confidence Page 58 of 65 58 Sector: Company: Project: Value ($): Status: Health and Community Services West Coast Council and Tasmanian Government New hospital 6.6 million Under Construction Sector: Company: Project: Value ($): Status: Transport and Storage West Coast Tourism Strahan Airport upgrade N/A Possible West Coast Community Capacity Building Projects Projects that build community capacity are typically funded from grant monies. The Community Support Levy, the Tasmanian Community Fund and the Commonwealth Regional Development Grants have provided funding for the following projects since 2002. Tasmanian Community Fund Organization: West Coast Heritage Authority Ltd Grant Title: Gaiety Theatre Restoration Amount: $52,000 Organization: National Trust of Australia (Tas) Grant Title: Restoration of Penghana & General Office, Queenstown Amount: $64,270 Community Support Levy The West Coast Council has traditionally not auspice not-for-profit organisations, and consequently many are not eligible for funding from the Community Support Levy grant programs. Organisation: Zeehan Neighbourhood House Inc. Grant Title: Support for Community Learning Courses and Activities to be Conducted at the ZNC Amount: $2,600.00 Commercial-in-Confidence Page 59 of 65 59 Organisation: Strahan Parent Involved Playgroup Grant Title: Books Amount: $1,000.00 Organisation: Strahan Parent Involved Playgroup Grant Title: Developing motor skills Amount: $1,087.00 Organisation: West Coast Health and Community Services (Strahan) Grant Title: Funding to run life skills program for young people who will be moving from area to further their studies Amount: $400.00 Organisation: West Coast Health and Community Services (Rosebery and Strahan) Grant Title: Slip Stream Circus workshops in schools and wider community Amount: $990.00 Organisation: West Coast Health and Community Services (Rosebery and Queenstown) Grant Title: Conduct a Health and Well-being Program for men and boys Amount: $1,580.00 Organisation: West Coast Health and Community Services Ltd Grant Title: Amount: $6862 Organisation: Zeehan Community Bus Management Committee Grant Title: Amount: $2000 Organisation: Zeehan Neighbourhood House Inc. Grant Title: Amount: $4000 Sustainable Regions Program Grants in this program were awarded to the Cradle Coast Authority for administration to local government authorities (Table 11). Table 11: Federal Government funding to the Cradle Coast Authority Commercial-in-Confidence Page 60 of 65 60 PROJECT PROJECT DESCRIPTION FUNDING GST INCLUSIVE Cradle Coast Authority - Stronger Learning Pathways The "Stronger Learning Pathways" initiative is made possible through a grant of $225,000 over 3 years to the Cradle Coast Authority. $247,500 The "Stronger Learning Pathways" initiative will appoint a Project Officer to drive participation in education, training and employment within the region. West Coast Municipal Council Tourism Industry Capacity Building A project was approved in December 2002 for $150,000 over three years for a West Coast Tourism Development Officer to drive the West Coast Tourism Plan under the Tourism Industry Capacity Building priority. $165,000 Cradle Coast Regional Touring Strategy Implementation of the Cradle Coast Regional Touring Strategy. The Strategy identified the key selling points of the region as a tourism destination and will coordinate product and infrastructure development, marketing and desired visitor experience with the intent of spreading tourism benefits across the region. $110,000 Skilling the Cradle Coast Community for the 21st Century A 3 year strategy that seeks to use science and technology related education to increase participation in the post compulsory education and training and address current and predicted skills shortages in the Cradle Coast region. $577,500 Cradle Coast Authority - Stanley Tourism Producing the Stanley Tourism Precinct development plan for the Circular Head municipal region. $44,000 Cradle Centralised Sewerage System Develop the regions tourism industry and protect environment from pollution and degradation. $550,000 Cultural Tourism Contribute to the employment of a project officer to Regional Arts@Work develop and coordinate arts based tourism initiatives in the cradle coast region. $127,325 Regional Needs Analysis To develop appropriate and strategic responses to tertiary education and training needs in the Cradle Coast region. $33,000 Food Innovation Centre The Centre will provide a seamless research, development and teaching facility covering natural $1,320,000 Commercial-in-Confidence Page 61 of 65 61 PROJECT PROJECT DESCRIPTION FUNDING GST INCLUSIVE resource management, food production and postfarm gate value-adding, to maximise efficiency and innovation in the regions food sector. Whisky Tasmania Bottling Plant The project will procure, install and commission a bottling, capping and labelling plant for single malt whisky and vodka products. $110,000 Innovative Product Development and Value Adding Seafood Petuna Introduction of new seafood processing technologies to enable production of new value added portion seafood products - including an automatic filleting machine and pin-boning & slicing technology. $110,000 Production Powdercoating Facility Stratton Engineering The project involves the construction of a new fabrication workshop, fabrication of a gas-fired powder coat-curing oven, purchase and installation of a powder spray booth and dust extraction system and associated works. $154,000 Cradle Coast Tourism Infrastructure Investment Program The project addresses identified shortcoming in the facilities provided for visitors, especially the increasing number of motor home tourists and will upgrade signage and improve facilities for tourists visiting the Cradle Coast region. $1,062,050 Strahan Development Plan The project is to develop an integrated development plan for Strahan on Tasmania's west coast. $55,000 Commercial-in-Confidence Page 62 of 65 62 Bell Bay Pulp Mill It is anticipated that approximately 3,000 people will be directly employed during the peak construction period, with a further 4,000 indirectly employed. Once the pulp mill is operational, approximately 300 fulltime permanent positions will be created at the pulp mill and additional 1,200 – 1,500 jobs around the state. The construction and operating phase workforces that will be hired to build and run the mill will be largely unskilled before they begin work at the mill. Construction phase workers will be expected to require training in construction, metal fabrication and electrical trades. Operating phase workers will require training in standard operating phase procedures and maintenance practices. During the construction phase, TAFE Tasmania will plan to focus on providing accelerated training programs so workers could be skilled up in particular aspects of construction, including: electrical cable tray installation; electrical termination; stainless steel welding; other specialised welding; targeted training in facets of building construction; and site health and safety requirements. The construction phase courses, which could be held in Launceston, could also be open to the public (as well as to Gunns’ employees). Through these courses, construction phase personnel would develop specific competencies, which could be converted into a full Australian Qualifications Framework (AQF) Certification Level 3 qualification. As a result of the mill process, more than 3,000 workers will be prepared to transfer new skills acquired at TAFE Tasmania to new projects across Australia. Given the persistent gap between the demand for and supply of skilled labour in Australia, this represents an important skilling opportunity for Australia The construction phase training programs will be designed by TAFE Tasmania with input from Gunns to provide training that will accommodate time constraints and ensure access to semi-skilled construction personnel. During the operational life of the mill, Gunns will intend to provide its staff with ongoing TAFE training courses. Commercial-in-Confidence Page 63 of 65 63 Again, most of the operational phase workers will also be expected to be generally unskilled prior to working with Gunns. Of the 292 fulltime jobs to be supported, Gunns would expect that more than 60 per cent of the jobs (both salaried and production line) will require additional technical training, in addition to on-site, mill-specific training. This will be likely to generate additional TAFE training opportunities (possibly as many as 6 to 8 new TAFE training positions in specific aspects of process engineering, plant supervisor, electrical equipment maintenance and material handling etc). These courses will be workplace-based and will include: ongoing trades training in electrical, fitting and turning, welding, instrumentation and other vocational skills; plant operator in standard operating procedures; and development of para-professionals in pulp manufacturing technology. Significantly, TAFE Tasmania has entered into preliminary partnership discussions with the South Carelia Polytechnic Institute in Finland to access training expertise in pulp manufacturing technology that would be required if the mill were to go ahead. Initial discussions have been facilitated by Gunns as part of its management strategy for ensuring sufficient labour supplies are available in Tasmania during the construction phase. Collaboration with the South Carelia Polytechnic Institute would enable TAFE Tasmania to create best practice courses. This would streamline the course development process for TAFE Tasmania, transferring years of experience in wood manufacturing procedures and training to the Australian market. From consultations with TAFE Tasmania, it is clear that the institution sees the opportunity for strong reputation benefits to be created through both the initial construction training courses and the ongoing standard operating procedure training if the mill is constructed. In particular, it sees potential for the creation of a centre of excellence at TAFE Tasmania around wood manufacturing technologies6. 6 Exert from Bell Bay Pulp Mill Draft IIS Volume 3a Commercial-in-Confidence Page 64 of 65 64 Forestry Agreement The Forest Industry Council reports that this industry has limited representation on the West Coast due to fact that most of the West Coast in now in forestry reserves. There are two West Coast specialty saw millers who harvest timber and provide services on a contractual basis. Timber harvested is minor timber such as Western Softwoods and Tasmanian Special Timbers. Synopsis There are significant economic development projects under consideration for the West Coast Municipality. Most of these projects are in the mining industry and will be dependent on the global demand for resources. Other economic projects such as the wind farm are tenuous and have been off and on the development agenda for some time. Community development wise, funding to the West Coast Municipality is limited. The Community Support Levy Grant Program, for example, reports a lack of applications from the region. The Tasmanian Community Fund has recently providing funding for improving infrastructure in the West Coast area. In about 2002, the Federal Government provided funds to the Cradle Coast Authority for enhancing West Coast infrastructure and development of the tourism industry in the region. The West Coast Council Business Development Officer Small reports that small not-for-profit groups are occasionally established to address community priorities, however these groups often do not incorporate and are therefore not eligible for funding. Economic development projects intrastate, in particular the Bell Bay Pulp mill, has the potential to attract contract labour that is currently based in or around the West Coast Municipality. Many West Coast construction projects may be subject to the outcome of the pulp mill feasibility study review by the Resource Planning and Development Commission. Commercial-in-Confidence Page 65 of 65 65