TABLE OF CONTENTS
Chapter
1 Summary 3
2 Background 3
2.1 Methodology 3
2.2 Definition 4
2.3 Survey 5
3 Findings 5
3.1 Main business activity 5
3.2 Other business activities 5
3.3 Number of business locations 6
3.4 Industry coverage 6
3.5 Occupational coverage 7
3.6 Qualification requirements 10
3.7 Recruitment and training practices 10
3.8 Skills requirements of employees 11
3.9 Types of training used 12
4 Conclusions 13
5 Recommendations 13
6 Appendix A 14
1 Summary
· 38 labour hire companies were identified in Tasmania and 33 participated in this research (13 were Group Training Organisations (GTOs)).
· 2.43% (5,685) of people working in Tasmania were found to be employed by a labour hire company (including 1386 that were employed as a trainee or apprentice by a GTO).
· 24% of Tasmania’s labour hire workforce were apprentices or trainees and employed by GTOs.
· Labour hire companies (not including GTOs) in general do not train their employees that are available for hire; rather they employ people with the skills and qualifications that are needed.
· The key skills identified by labour hire companies that are needed by their employees are: literacy/numeracy, reliability and communication.
2 Background
The demand for the provision of skilled and unskilled labour through labour hire companies in Tasmania is expected to continue and grow.[1] Even so, little is known about certain characteristics of labour hire companies, such as:
· Who are they?
· How many are there?
· Which industries do they work in?
· Which occupations do they provide labour for?
· How many do they employ?
· What is the nature of employment e.g. full/part-time, casual or seasonal?
· What are the current and future skill needs of employees?
· How do employees acquire skills?
· What recruitment and training practices do they use?
To obtain answers to these questions this research was undertaken for the purpose of:
a) Understanding the impact and importance of the current labour hire arrangements in Tasmania, and
b) Identifying the skill and training needs of labour hire company employees.
2.1 Methodology
As there is no universally accepted definition for labour hire, an existing definition was used that met the intended scope and purpose of this project.
Using this definition, likely participants were identified using TELSTRA’s Yellow Pages Directory, the DELTA database[2], Industry Liaison Officer (ILO) client lists, desktop research and word of mouth.
A survey instrument was developed and administered face-to-face with the participants.
Training and occupational data from GTOs were obtained from the DELTA database about those employed and in training as at 30th June 2008.
Face-to-face interviews were conducted with GTOs and other labour hire companies between September and November 2008.
2.2 Definition
For this research project labour hire was defined as:
“…a form of indirect employment relationship in which an agency (or company) supplies workers to work at a workplace controlled by a third party (client or host), usually in return for a fee from the client…
A typical agency will direct an employee to work for a client for a period (assignment) ranging from a single day to a number of years. [3]“
This definition helped to identify and distinguish the similarities and differences between labour hire arrangements and employment placement services – both being a part of the broader employment services industry.
Normally, when an employment placement agency places a worker in a job their relationship ends, whereas in a labour hire arrangement the three-way relationship between agency, client (or host) and worker continues for the period of the assignment.
Those organisations that aligned to this definition for labour hire were invited to participate in this research, and included:
· Temping agencies
· Labour hire companies, and
· Group Training Organisations (GTOs).
GTOs were included because Group Training Schemes are a form of labour hire arrangement. This is where apprentices and trainees are employed by one company (a GTO) under a contract of employment but are continuously placed (if necessary) with other enterprises (host employers) over the life of the contract of employment.
One main difference between GTOs and the more traditional labour hire companies and temping agencies is the contract of employment which obliges the GTO to:
· keep the apprentices or trainees in continuous employment (from 1- 4 years), and
· manage the pastoral care and training needs of the apprentices or trainees they employ.
Although the more traditional labour hire companies and temping agencies do enter into short or longer term contracts of employment with their employees, they usually do not get involved in training.
2.3 Survey
38 labour hire companies were identified (including 13 GTOs) but 5 did not participate in the face-to-face interviews or complete the survey, resulting in an 86% participation rate.
The questions in the survey were structured to obtain a mixture of qualitative and quantitative data from the participants.
3 Findings
The results are presented below using a sub-heading that relates to each of the survey questions and are in the form of tables. More detailed information about occupations is available in Appendix A at the end of this report.
3.1 Main business activity
Q1. What is the main business activity?
Table 1
Activity / Number / PercentRecruitment/Employment Placement / 5 / 15%
Labour Hire / 12 / 36%
Group Training Scheme / 11 / 34%
Other / 5 / 15%
33 / 100%
Analysis:
· Labour hire is the main business activity of 70% of the participants.
· Labour hire is the main business activity of 11 out of 13 (85%) GTOs.
3.2 Other business activities
Q2. What other activities is the business involved in?
Table 2
Activity / Number / PercentRecruitment/Employment Placement / 8 / 21%
Labour Hire / 11 / 29%
Group Training Scheme / 5 / 13%
Other / 8 / 21%
Nil / 6 / 16%
38 / 100%
Analysis:
· Labour hire is the only business activity of 6 out 13 (46%) GTOs.
· The majority of labour hire companies engage in one or more other business activities.
3.3 Number of business locations
Q3. In how many locations does the business operate in Tasmania?
Table 3
Locations / Number / Percent1 / 15 / 48%
2 / 3 / 10%
3 / 9 / 29%
4 / 1 / 3%
5 / 3 / 10%
31 / 100%
Analysis:
· 16 participants (52%) operate from more than 1 location in Tasmania.
· 31 of the 33 participants are currently active in Tasmania (2 GTOs are registered but did not have any apprentices or trainees in Tasmania when interviewed).
3.4 Industry coverage
Q4. In which industry(s) does the business operate?
Table 4
/ Number /Industry (27) / GTO / LHC (Other)[4] / Total /
Building & Construction / 7 / 13 / 20
Engineering / 6 / 10 / 16
Business Services / 5 / 7 / 12
Government Services / 4 / 6 / 10
Health & Community Services / 3 / 7 / 10
Transport, Distribution &
Storage / 4 / 6 / 10
Financial Services / 1 / 8 / 9
Hospitality / 2 / 6 / 8
Property Services / 2 / 6 / 8
Agriculture / 1 / 6 / 7
Forestry, Timber & Paper / 1 / 6 / 7
Information & Communications Technology / 4 / 3 / 7
Management / 1 / 6 / 7
Retail, Wholesale & Personal Services / 3 / 4 / 7
Energy (including Gas) / 4 / 2 / 6
Automotive / 3 / 2 / 5
Food / 1 / 4 / 5
Mining & Mineral Processing / 0 / 5 / 5
Printing / 2 / 2 / 4
Sport & Recreation / 3 / 1 / 4
Wine / 0 / 3 / 3
Plastics (Composites) & Rubber / 0 / 2 / 2
Tourism / 1 / 1 / 2
Aquaculture & Fishing / 1 / 0 / 1
Arts / 0 / 1 / 1
Horticulture / 1 / 0 / 1
Textiles, Clothing & Footwear / 0 / 1 / 1
60 / 118 / 178
Analysis:
· Labour hire companies (including GTOs) are active across 27 industry classifications.
3.5 Occupational coverage
Q5. In which occupations does the business provide labour hire services?[5]
Table 5
Organisation / Occupations[6] / Number / Percentage of Total Occupations / Percentage of Total NumberGroup Training Organisations / 88 / 1386 / 59% / 24%
Labour Hire Companies (other) / 87 / 4299 / 58% / 76%
5685 / 100%
Analysis:
· Participants provided labour hire services for 144 occupations (ANSZCO) in Tasmania.
· 24% of Tasmania’s labour hire workforce were apprentices or trainees and employed by GTOs.
Table 6Employed Persons by Occupation, Tasmania (4 quarter average to August 2008) and employment by labour hire companies
Employment†
(Number) / Labour Hire††
(Number) / Labour Hire's Share of Total
(%)
1 MANAGERS / 29,800 / 10 / 0.0
00 Managers nfd / 75 / 5 / 6.7
11 Chief Executives, General Managers and
Legislators / 2,475 / 0 / 0.0
12 Farmers and Farm Managers / 5,600 / 0 / 0.0
13 Specialist Managers / 9,850 / 5 / 0.1
14 Hospitality, Retail and Service Managers / 11,825 / 0 / 0.0
2 PROFESSIONALS / 42,850 / 59 / 0.1
00 Professionals nfd / 75 / 0 / 0.0
21 Arts and Media Professionals / 1,775 / 0 / 0.0
22 Business, Human Resource and Marketing
Professionals / 9,400 / 23 / 0.2
23 Design, Engineering, Science and
Transport Professionals / 5,700 / 20 / 0.4
24 Education Professionals / 11,100 / 0 / 0.0
25 Health Professionals / 9,525 / 11 / 0.1
26 ICT Professionals / 1,975 / 5 / 0.3
27 Legal, Social and Welfare Professionals / 3,300 / 0 / 0.0
3 TECHNICIANS AND TRADES
WORKERS / 38,325 / 683 / 1.8
00 Technicians and Trades Workers nfd / 175 / 0 / 0.0
31 Engineering, ICT and Science Technicians / 3,900 / 9 / 0.2
32 Automotive and Engineering Trades
Workers / 8,425 / 334 / 4.0
33 Construction Trades Workers / 7,450 / 100 / 1.3
34 Electrotechnology and
Telecommunications Trades Workers / 5,425 / 69 / 1.3
35 Food Trades Workers / 4,325 / 5 / 0.1
36 Skilled Animal and Horticultural Workers / 4,200 / 18 / 0.4
39 Other Technicians and Trades Workers / 4,425 / 148 / 3.3
4 COMMUNITY AND PERSONAL
SERVICE WORKERS / 23,500 / 481 / 2.0
00 Community and Personal Service Workers nfd / 0 / 0
41 Health and Welfare Support Workers / 2,650 / 0 / 0.0
42 Carers and Aides / 10,675 / 185 / 1.7
43 Hospitality Workers / 5,300 / 285 / 5.4
44 Protective Service Workers / 2,700 / 11 / 0.4
45 Sports and Personal Service Workers / 2,150 / 0 / 0.0
Employment†
(Number) / Labour Hire††
(Number) / Labour Hire's Share of Total
(%)
00 Clerical and Administrative Workers nfd / 0 / 0
51 Office Managers and Program
Administrators / 3,450 / 4 / 0.1
52 Personal Assistants and Secretaries / 2,625 / 14 / 0.5
53 General Clerical Workers / 3,975 / 16 / 0.4
54 Inquiry Clerks and Receptionists / 7,275 / 32 / 0.4
55 Numerical Clerks / 7,600 / 354 / 4.7
56 Clerical and Office Support Workers / 2,050 / 0 / 0.0
59 Other Clerical and Administrative Workers / 5,125 / 0 / 0.0
6 SALES WORKERS / 22,075 / 12 / 0.1
00 Sales Workers nfd / 0 / 0
61 Sales Representatives and Agents / 3,250 / 0 / 0.0
62 Sales Assistants and Salespersons / 16,200 / 12 / 0.1
63 Sales Support Workers / 2,650 / 0 / 0.0
7 MACHINERY OPERATORS AND
DRIVERS / 16,225 / 709 / 4.4
71 Machine and Stationary Plant Operators / 5,075 / 90 / 1.8
72 Mobile Plant Operators / 3,775 / 214 / 5.7
73 Road and Rail Drivers / 5,500 / 250 / 4.5
74 Storepersons / 1,925 / 155 / 8.1
8 LABOURERS / 28,850 / 1,925 / 6.7
00 Labourers nfd / 25 / 0 / 0.0
81 Cleaners and Laundry Workers / 7,500 / 146 / 1.9
82 Construction and Mining Labourers / 2,050 / 77 / 3.8
83 Factory Process Workers / 5,850 / 658 / 11.2
84 Farm, Forestry and Garden Workers / 5,225 / 449 / 8.6
85 Food Preparation Assistants / 2,500 / 3 / 0.1
89 Other Labourers / 5,700 / 592 / 10.4
TOTAL / 233,750 / 4,299 / 1.84
† Source: Produced from data from ABS Labour Force data cube ST E17_Aug06.
†† Source: Data from Skills Tasmania census.
Analysis:
· 2.43% of the total Tasmanian workforce were employed by labour hire companies (0.59% were employed by GTOs)
· Occupations with a significant rate of employment by labour hire companies in comparison to the total Tasmanian workforce were:
o Automotive and Engineering Trades Workers (4.0%)
o Hospitality Workers (5.4%)
o Numerical Clerks (4.7%)
o Mobile Plant Operators (5.7%)
o Road and Rail Drivers (4.5%)
o Storepersons (8.1%)
o Factory Process Workers (11.2%)
o Farm, Forestry and Garden Workers (8.6%)
o Other Labourers (10.4%)
3.6 Qualification requirements
Q6. In which occupations do the workers in the business require a:
· Vocational education & Training (VET) qualification?
· University degree?
· No formal qualification?
· Other?
Most participants found this question difficult because of either insufficient knowledge or confusion about the current qualification and licensing requirements for certain occupations. This resulted in insufficient data being collected to publish. Notwithstanding, some labour hire companies said the majority of people they employed required either: