Peter Canavan National Manager, Apprenticeship Project

Competency based progression and completion overview of developments COAG decision February 2006 Metals Award changed March 2006 State Training Authority rules for RTOs Apprenticeships for the 21 st Century expert panel report Jan 2011 Fair Work Commission (FWC) review of wages and conditions for apprentices and trainees August 2013 FWC determination on Manufacturing Award March 2014

Council of Australian Governments (COAG) February 2006 ‘apprentices can work as tradespeople once they are competent, without having to wait out a set time period or make special application’ ‘references to fixed durations to be removed from awards and legislation in all jurisdictions’

15.6 Apprenticeships under this award are competency based. The actual time taken to complete an apprenticeship will therefore vary depending upon factors such as the intensity of training and the variety of work experience The nominal period of the apprenticeship is four years, however this period may be varied as follows … 15.8 Notwithstanding the nominal period, the apprenticeship is completed in a shorter period when: (a) the qualification specified in the training contract is successfully completed; And (b) the apprentice has the necessary practical experience to achieve competency in the skills covered by the training contract, provided that the determination as to whether this condition has been met must be by agreement between the registered training organisation, the employer and the apprentice and where there is a disagreement concerning this matter the matter may be referred to the relevant State/Territory apprenticeship authority for determination; and (c) the requirements of the relevant State/Territory apprenticeship authority and any requirements of Manufacturing Skills Australia with respect to demonstration of competency and any minimum necessary work experience requirements are met; and (d) with respect to trades where there are additional licensing or regulatory requirements under State legislation, when these requirements are met.

Apprentice wages are based on 4 stages, not 4 years Manufacturing and Associated Industries and Occupations Award 2010 (previously the Metals and Engineering Award) Stage 1entry level wage Stage 2once 25% of competencies achieved or 12 months after commencing the apprenticeship; whichever is earlier Stage 3once 50% of competencies achieved or 12 months after commencing Stage 2; whichever is earlier Stage 4once 75% of competencies achieved or 12 months after commencing Stage 3; whichever is earlier Trade wagesonce ALL competencies achieved

State Training Authority rules for RTOs RTOs are expected to provide employers with regular reports on apprentices’ progress and achievement. The RTO must liaise with the employer and apprentice to determine the achievement of competence in required skills. A qualification may only be issued to an apprentice if the employer has provided written confirmation to the Training Provider that the apprentice is competent to industry standards on the job. Employers are generally required to certify or confirm that competency requirements of a qualification have been met before training contracts can be completed.

Apprenticeships for the 21 st Century expert panel report January 2011 Jim McDowell (chair)CEOBAE Systems Dr John BuchananDirector Workplace Research Centre, University of Sydney Royce FairbrotherCEOFairbrother Pty Ltd Dave OliverNational SecretaryAMWU Marie Persson Deputy Director General TAFE NSW Department of Education and Training Tim ShipstoneIndustrial OfficerACTU Simone WetzlarExecutive GMThiess Pty Ltd

Apprenticeships for the 21 st Century expert panel report January 2011 promote a culture of competency based progression Support a review of apprenticeship and traineeship provisions, wages and conditions by Fair Work Australia, considering:  the removal of barriers to competency based wage progression in modern awards  apprentice and trainee award pay compared to going rates of pay  etc etc

Fair Work Commission apprenticeship review August 2013 Competency based progression introduced into more awards from 1 January 2014 Building and Construction – General On-site Award 2010, Joinery and Building Trades Award 2010, Airline Operations – Ground Staff Award 2010, Sugar Industry Award 2010 Graphic Arts, Printing and Publishing Award 2010, based on existing provisions in the Manufacturing and Associated Industries and Occupations Award 2010.

New clause inserted into Manufacturing Award regarding competency based wage progression: Apprentice progresses to next pay level once relevant proportion of competencies achieved Competent when RTO, employer and apprentice agree OR The employer does not respond within 21 days of written notification from the RTO that they have assessed the apprentice as competent. Competency defined as the consistent application of knowledge and skill to the standard of performance required in the workplace. It embodies the ability to transfer and apply skills and knowledge to new situations and environments. Fair Work Commission revises award, March 2014

What does this all mean? Engineering apprenticeships are in 4 stages of 24 points per stage. RTOs are expected to seek the employer’s agreement or confirmation of competence. Assessment must take into account the standard of performance in the workplace. RTOs are expected to provide reports to help the employer monitor progress and pay correct wage.

What does it mean for RTOs? Training Plans need to reflect 4 stage apprenticeships of 24 points per stage. A process is needed to seek the employer’s agreement or confirmation of competence. Assessment must take into account what the apprentice is doing at work. A process is needed for providing reports to the employer to help monitor progress and pay correct wage.

The 10 Pilots Kangan Institute VicMetropolitan The Gordon Vic Regional TasTAFE Tas Metropolitan TAFE SA Whyalla SA Regional Training Prospects SA Metropolitan TAFE Queensland SkillsTech Qld Metropolitan Careers Australia Qld Regional & Metropolitan South Western Sydney Institute NSWMetropolitan Hunter Institute NSW Regional Challenger Institute WA Metropolitan

How do we make this work for employers? jargon-free information. training plans that reflect their workplace. help to determine competent performance. help to know the stage their apprentices are at. clear procedures for confirming competency.

What does it mean for GTOs? 3 year training models do not sit well with 4 stage apprenticeships. Competency based progression does not sit well with charging models based on 4 years. Apprentices with pre-vocational qualifications may have even more credit. Employers will have more say in competence. Competency based progression is not going away.

Why are some GTOs ok with it? Recognised early on they had to adjust. Regular contact with RTOs to monitor when apprentices are likely to get the next pay rise. Proposals to hosts based on likely progression. Professional development for field officers so they understand the principles and processes. Promotion to hosts that nobody gets a pay rise until they are productive, and the GTO will manage the whole process on their behalf.

Questions?