OctoberVET – Questions and considerations for Victorian (and Australian) apprenticeships and traineeships Introduction Pre amble re caretaker and change of name of the session

Apprenticeship and Traineeships What is an apprenticeship or traineeship? What’s the difference between them? Characteristics System roles The case for apprenticeships and traineeships Apprenticeship and traineeship issues How do we make them better? International perspectives Our role

What is an apprenticeship or traineeship? The training relationship is formalised though a Training Contract, enabling a training wage to be paid while the apprentice/trainee learns the job. The RTO prepares a Training Plan with the employer and apprentice/trainee which maps out how the apprentice or trainee will gain the required occupational skills Employee Employer ~80% on-the-job RTO ~20% in training An agreement between an employer and their employee (the apprentice or trainee) The apprentice or trainee is enrolled with a Registered Training Organisation The three-way relationship is key to success There were 61,000 apprentices and trainees in training as at March 2018 INCVER data). Around 1.9 per cent of workers were employed as an apprentice or trainee but this rises to 9.6 per cent in trade occupations

What’s the difference between them? An apprenticeship must be cancelled by mutual agreement (after the probation period) An traineeship can be cancelled by either the trainee or the employer without agreement Modern Awards often have apprenticeship wages and a separate National Training Wage schedule Modern Awards also have provisions for employers to reimburse certain costs for apprentices Completed apprentices are tradespeople Employer sizes are different

Characteristics - apprenticeships Employers Small business RTO Mostly at TAFE Most successful Apprentices with large employers are more likely to complete. So are those that are older (20 to 24), or have completed year 12 Apprentice 50 per cent under 20 years old Just over 25 per cent between 20 and 24 Just under 25 per cent 25 or older Under 20s down from 63 per cent in 2010 Gender women mostly in hairdressing and food trades Completion rates are lower for women but those that do complete do so faster Gender: 89 per cent male 11 per cent female

Characteristics - traineeships Employers Mostly medium/large employers RTO Mostly private providers Most successful Trainees with medium employers are more likely to complete (with completions at small and large employers around the same) So are those that are younger (under 20), followed by those who are over 25. Less relationship with level of schooling Gender: 52 per cent female 48 per cent male Apprentice 50 per cent under 20 years old Just over 25 per cent between 20 and 24 Just under 25 per cent 25 or older About 8 per cent through GTOS Under 20s down from 63 per cent in 2010 Trainee Completion best with medium

Commonwealth State System roles Apprenticeship Network Incentives Industry Specialist mentoring Setting wages and conditions (Fair Work Commission) And enforcing them (Fair Work Ombudsman) VET regulation (ASQA) State Apprenticeship regulation (including declaring apprenticeships and traineeships, and field services) Funds VET Support programs (ASO) WorkSafe

The case for apprenticeships and traineeships Higher completion rates 53.1% (48.3 per cent for trade occupations and 55.5 per cent for non-trade occupations) individual completion rate for apprentices and trainees commencing in 2013. 41.7% national estimated completion rate for government-funded VET programs at certificate I and above (based on 2015 commencements). Stronger link to employment than other VET 81.2 per cent of apprentices and trainees are employed after training. This rises to 92.2 per cent for those in trade occupations (2017) (Necessary) frustration of dates

The case for apprenticeships and traineeships (continued) Stronger link between qualification and occupational outcome 69.7% of graduates who undertook the training in a trade occupation course were employed in the same occupation as their training course. 37.5% of graduates who undertook the training in a non-trade occupation course were employed in the same occupation as their training course. 29.9% of graduates were employed after training in the same occupation as their training course (overall).

Apprenticeship and traineeship issues Completion rates, whilst higher than the rest of VET, are still low Commencements are declining, particular in traineeships Arrangements continue to be lockstep without the necessary flexibility Diversity is poor, especially in apprenticeships, with many underrepresented groups

Apprenticeship and traineeship issues (continued) Contributing factors Complexity of apprenticeship/traineeship systems Increased costs for employers (particularly for apprenticeships) Poor recruitment/supervision of apprentices/trainees Some poor quality arrangements (i.e. driven by use of low wages)

How do we make them better? If we say apprenticeships and traineeships are a good model, but one that has issues, how do we make them better? The Victorian Skills Commissioner’s Apprenticeship and Traineeship taskforce proposed we need to: Build a culture of co-investment Renew the focus on quality Elevate the status of apprenticeships and traineeships These three things are interlinked - almost an extension of the shared responsibility between apprentice/ employer and training provider. The Victorian Skills Commissioner's report noted that ownership by government and industry is a central feature of apprenticeships in countries where they have enjoyed success.

How do we make them better (continued)? The actions recommended by the Victorian Skills Commissioner included: Better demand data to inform decision-making Targeted pilots to test approaches for strategic, cultural change Proactive programs to embed quality into the apprenticeships and traineeships model Convincing campaigns to publicly relaunch apprenticeships and traineeships We’re not short on data about apprenticeships but how do we make that data work better for us. Piloting Independent testing

International perspectives The OECD recently released a report on Seven Questions about apprenticeships: Can apprenticeships provide a useful contribution in every country? Should employers receive financial incentives to provide apprenticeships? What is the right wage for apprentices? How long should an apprenticeship last? How to ensure a good learning experience at work? How to make apprenticeships work for youth at risk? How to attract potential apprentices? With the exception of the first question, these are all key questions for the Australian apprenticeship system.

Our role Implementing government apprenticeship and traineeship policy and commitments Providing advice to the Minister on apprenticeships and traineeships Looking at strategies for quality apprenticeships and traineeships (from start through to completion)

Carl Walsh | Manager, Apprenticeships and Traineeships Engagement Participation & Inclusion Division | Higher Education and Skills Group Department of Education and Training P: (03) 7022 1650 E: walsh.carl.a@edumail.vic.gov.au W: www.education.vic.gov.au