Without due attention, the shortage of appropriately skilled labour will significantly impact individuals, organisations and the performance of the region’s economy. It will harm productivity and put upward pressure on wages.
This is far from a doom and gloom scenario. It presents golden opportunities. Regions with sound training infrastructure will do better because people will get the right training to make them competent and work-ready. But, reform of training systems, of business training and of trainers themselves is vital for the Hunter to keep pace with other regions in competing for investment dollars.
Ensuring organisations have an active, targeted training regime is critical. It is also critical that we change our approach to training in order to meet the challenges of globalisation and the changing nature of business and the workforce – to be more flexible and adaptive than ever before.
The current apprenticeship completion rate in Australia is a mere 50%. That’s right, half the young people who start an apprenticeship don’t finish it. That is not acceptable. (Hunter Valley Training Company’s (HVTC) completion rates are 85%, which is an impressive 70% better than the national average.)
Australia must improve its apprenticeship system and vocational training more broadly if it is to continue to enjoy our relatively good economic performance and maximise the benefits of the resource boom and associated infrastructure projects.
The good news is that this process has already begun. HVTC welcomes the Federal Government’s current initiatives to reform the national apprenticeship and traineeship systems. In February an independent review panel released, “A Shared responsibility – Apprenticeships for the 21st Century”, which appropriately summarises the major issues. There is much consultation to go but the foundations are there.
The number of Australians undertaking apprenticeships is rising. National Centre for Vocational Education Research statistics comparing the year to 30 September 2010 with the year to 30 September 2009 shows trades apprenticeships and traineeships are up 22.6% and non-trades up by 10.9%. We have seen similar rises in the Hunter including a rise in boilermaking apprenticeships.
While HVTC is undergoing its own reform to further modernise its systems, we are a model for how successful group training can be done to contribute appropriately to economic development. In 30 years of operation we have employed more than 18,000 apprentices and trainees and have grown to become one of the largest group training organisations in Australia, providing training across NSW and South-east Queensland.
Apart from our passionate, experienced staff, commitment to safety and mentoring of students, it is our range of long–term industry partnerships that are key to our success. We recruit, employ and provide formal training to apprentices and trainees so that our “host employers” are free to provide practical, productive work experience. Training is done through our own unique Registered Training Organisations and in partnership with TAFE. We all help each other and it pays dividends for all concerned.
Last week I joined new Member for Maitland Robyn Parker at the 20th anniversary of another key client, Alstom. This is a Maitland based company that is now reconditioning power station turbines from all over the world as part of major international and national contracts. Over 20 years we have helped Alstom to train more than 100 highly specialised apprentices locally.
I also attended a graduation ceremony for eight young unemployed men from Cessnock and Kurri Kurri. With help from BHP Billiton, we joined forces with Father Chris Riley’s Youth Off The Streets to create a training program that has given these young men basic skills in metal work and the inspiration and confidence to take up an apprenticeship in the region.
One of these impressive young men said that the program had “given him a reason to get out of bed every day and come to work”. We need more partnerships that reach out to upskill our entire potential workforce.
Training is a fundamental re-requisite for every progressive organisation. The Hunter has a strong foundation but we must all pay our part in ensuring that training develops to meet the needs of citizens, industry and the economy.
This is an edited version of Robert Fuller's speech to Newcastle Business Club on Tuesday April 19. (The article appeared on p 19 of the Herald.)