Richard Cooney Research Fellow, Centre for the Economics of Education and Training Training & Employment Relations: Unions, Employees and Employers

2 VET and the Employment Relationship Many policy approaches to VET are based upon the assumption that VET is a public good. Much of the academic literature makes the same assumption.

3 VET and the Employment Relationship In the context of the employment relationship, this leads to the assumption of a common interest in VET between unions, employees and employers. Negotiating VET in the workplace is seen as a natural issue for partnership in the employment relationship offering win-win outcomes for all parties.

4 VET and the Employment Relationship In practice, however, there are convergences and divergences of interests. How to account for this?

5 VET and the Employment Relationship We need to look at the two faces of VET in the workplace: VET as a competition good, and VET as a labour market good.

6 Employee Interest in Training Labour Market Good –Internal Labour Market Pay, promotion, job classification, job security –External Labour Market Transfer, redeployment, redundancy

7 Employee Interest in Training Survey and Interview of 99 Work Team Leaders in four automotive manufacturing plants.

8 Employee Interest in Training MinMaxMean Age22 yrs62 yrs38 yrs Length of service with the Co.4 yrs35 yrs13 yrs 5 mths Tenure in current job1 mth11 yrs3 yrs 2 mths Employee Experience

9 Employee Interest in Training Qualification% of Respondents Secondary School Certificate31 % Vocational Licence69 % Level 2 Certificate56 % Level 3 Certificate43 % Employee Qualifications

10 Employee Interest in Training... there's no real opportunities for advancement from this position. I'll be here for another 15 years unless somebody passes away. I feel that I'm in limbo. There's no light at the end of the tunnel, there isn't even any tunnel. It's a shame. Tony – Maintenance Group Leader

11 Union Interest in Training Labour Market Good for members –Internal Labour Market issues through EBA’s and industrial negotiations –External Labour Market issues for redundancies

12 Union Interest in Training Survey of 290 Regional, Divisional and National Union Secretaries of unions affiliated with the ACTU. Response rate of 31 %. Interviews with 21 union officers and officials.

13 Union Interest in Training Via enterprise industrial negotiations, eg EBA54 % Day-to-day member representations12 % Using enterprise consultative mechanisms11 % Union providing some training 4 % Union working with training providers 3 % Union working with ITABs 3 % Ways for Unions to be Effective

14 Union Interest in Training Training IssuesMean Payment for attendance at training3.9 Changes to job skill requirements3.2 Amount of training provided3.1 Training package / Competency standards used3.0 Quality of training3.0 Assessment of skills3.0 Union Influence over Training Issues

15 Union Interest in Training Quasi Competition Good for the Union –Development of core competencies Union organization Knowledge & skills of union officers and officials eg shop stewards, OH&S Reps, –Internal capacity building Relationships, communication, change, normative orientations

16 Employer Interest in Training Competition Good –Development of competitive competencies Technical knowledge & skills –Internal capacity building Relationships, communication, change, normative orientations –Benefits for internal stakeholders

17 Employer Interest in Training Objective Improve quality94 % Improve competitiveness88 % Multi-skill employees87 % Meet O.H & S requirements77 % Implement workplace change69 % Build commitment to the company67 % Company Objectives for Training

18 Employer Interest in Training Competition Good –Compliance Orientation, do the minimum to stay in business –Development Orientation, invest in human capital creation