GOLDFIELDS – ESPERANCE WORKFORCE DEVELOPMENT ALLIANCE
RESPONSE TO THE MCDOWELL REPORT
A SHARED RESPONSIBILITY - APPRENTICESHIPS FOR THE 21st CENTURY
BACKGROUND TO THE GOLDFIELDS-ESPERANCE WORKFORCE
DEVELOPMENT ALLIANCE (GEWDA)
The Goldfields-Esperance region, a land mass of 770 488km2, is the largest
geographic region in Western Australia. The region has a resident population (2009)
of 58 727 persons. Its gross regional product (GRP) for 2009/2010 is estimated at
$8.094 billion - compared to $5.5 billion in 2000/2001.1
The Goldfields Esperance Workforce Development Alliance (GEWDA) was formed in
2007 in response to serious shortages in skilled labour across a range of sectors and
occupational groups in the Goldfields-Esperance region of Western Australia, a land
mass of 770 488km2•
Regional labour shortages continue. These threaten to constrain economic growth,
and prevent the region from reaching its full potential. GEWDA's response has been
to maximise regional resources collectively, and to address workforce requirements
within the region by:
• maximising career development advice, employment, and training opportunities;
• building regional capacity; and
• supporting sustainable business growth and productivity.
Membership of GEWDA comprises leading representatives of business, government,
industry, municipal bodies, peak industry organisations, and training providers in the
Goldfields-Esperance region.
GEWDA RESPONSE TO THE MCDOWELL REPORT RECOMMENDATIONS
At its meeting on 25th March 2011, whilst supportive in principle of the general
directions of the report, GEWDA expressed concerns about the following:
Creation of a National Custodian
Measures to attract and retain apprentices and trainees, and to encourage better
throughput in training, are strongly supported. GEWDA recognises that the setting
up of a National Custodian will provide a strong focus for better outcomes in this
respect. At the same time, GEWDA is concerned that this approach adds an
additional layer of bureaucracy to the training landscape. Employers in this region
now report that they find the current operation of the Australian Apprenticeship
system onerous, and will not welcome increased complexity in the system. Unless
managed effectively, the proposal for a National Custodian threatens to add to the
complexity of the Australian Apprenticeship system.
GEWDA is also concerned that focus on a national approach may promote a 'one
size fits all' template for training. Such an approach would be of concern. GEWDA is
strongly committed to best practice operational delivery for the training of apprentices and trainees. Whatever the national model for apprenticeship training might be, GEWDA considers it essential that regional jurisdictions are empowered to drive and influence outcomes in workplaces and training centres located in regional and remote Australia.
Accredita'tion and Pre-Qualification of Employers for Training There are concerns that this approach will deter small and medium enterprise (SME) employers from engaging in training, GEWDA considers that many SME employers will find compliance issues beyond them to manage, whilst at the same time maintaining current obligations to clients. The majority of employers in the Goldfields-Esperance region are in the SME sector.
GEWDA considers that many of these are likely to withdraw from the Australian
Apprenticeship system rather than to engage in training under the new conditions
proposed, Apart from compliance issues, SME employers are stretched beyond
capacity now by pressures on them from clients, at a time of acute labour shortages.
Many large employers too will find the additional bureaucracy involved in this
process burdensome.
Redirection of current Australian Government employer incentives for training
Employers - particularly SME employers - use these incentives to cover ongoing
costs associated with having an apprentice, Deferring payments until completion of
apprenticeships will not meet the requirements of many of these employers. The risk
of not receiving incentive payments as a result of apprentices not completing their
time with their inaugural employer would not be conducive to retaining or increasing
apprenticeship numbers.
GEWDA considers this recommendation, coupled with the new requirements for
accreditation, will cause many SME employers to withdraw from participation in the
Australian Apprenticeship system.
This represents a serious issue for Goldfields-Esperance training activities as the
majority of apprentices in the region are employed by SME employers.
The contingency that this recommendation will cause a reduction in training
opportunities has been anticipated in the report. The Expert Panel records the view
(p60) that:
'We are well aware that removing generic financial incentives for employers may
result in a reduction in apprentice and trainee commencements in the short term. '
GEWDA considers the Panel's apprehension is correct, but considers that it has
seriously underestimated the scale of training opportunities to be lost, particularly in
regional and remote locations. GEWDA also considers that reductions in training
opportunities will not be 'short-term'.
SME employers, once alienated from the notion of training as a strategy to secure
capability for their workplace, are likely to pursue alternative approaches to meet
their immediate employment demands. For example, by resorting to skilled
migration,'or paying higher wages to poach qualified employees from neighbouring
enterprises. The situation on the Goldfields is replicated in other areas of regional
Western Australia. Employers in different regions, for example, already aggressively
pursue the recruitment of employees from neighbouring regions.
Concluding remarks
GEWDA asks that the particular requirements of the Goldfields, as reflected in the
concerns expressed above, be given due weight in progressing implementation of
the recommendations of the report.
GEWDA also strongly supports initiatives which will
• reduce bureaucratic overlays;
• eliminate the complexities in the Australian Apprenticeship system;
• encourage employers -large and small - to commit to effective training regimes; and
• deliver financial incentives to all employers so to do.
Bill McKenzie
Chair
Goldfields Esperance Workforce Development Alliance
05 April 2011
1 Data extracted from the Goldfields Esperance Development Commission 2010-2020 Strategic Development
Plan