DESKTOP RESEARCH REPORT -

ANALYSIS AND ENVIRONMENTAL SCAN OF ISSUES/FACTORS IMPACTING ON THE INDUSTRY WORKFORCE AND THE ASSOCIATED SUPPLY AND DEMAND FOR SKILLS

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Table of Contents Key Findings and Conclusions…………………………………………………………………. 3 Issues/factors impacting on the industry workforce - Background – Approach/Method……………………………………………………………………………..…..7 What are Skills Shortages?.................................................................................................8 Technological Changes…………………………………………………………………………..9 Ageing Workforce………………………………………………………………………………..14 Workers‘ Movement……………………………………………………………………………...16 Literacy and Numeracy Skills…………………………………………………………………...18 Apprenticeship Completion/Attrition Rates and Retaining of Workers/Apprentices………20 Industry Restructuring……………………………………………………………………………29 External Regulation and Compliance…………………………………………………………...30 Assessment and Simulated Learning Methodologies…………………………………………31 Training Issues…………………………………………………………………………………….36 Existing and predicted areas of high occupation/skills demand in the near and medium term (PROJECTIONS)………………………………………………………………………………….41

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Key Findings and Conclusions What issues/factors impact on the industry workforce and associated supply and demand for skills? Following issues/factors have been identified by industry stakeholders and/or in consulted reports as impacting on industry workforce and associated supply and demand fro skills: Technological Changes

Demand for increased level of skills due to technological change is real; Both technological and structural changes are having an impact on the workforce; Increased complexity of work; Widening of duties (need for high-tech skills as well as simpler tasks); Increased convergence of occupations and sub-sectors; Need for up-skilling of current workforce; Employer difficulty in attracting existing staff to training in new technologies.

Ageing Workforce

Research revealed a scarcity of studies looking at the problem of ageing and its impacts on the electrotechnology industry;

The two relevant studies consulted in this report differed in their opinion of the degree and the timing of the impact of ageing on the trades workforce;

Neither of the studies however, dismissed ageing as an important factor impacting the electrotechnology workforce/industry.

Workers’ Movement

There is an immediate need for thorough research in the area of people (workforce)

movement in the industry and consequent impacts on workforce and supply and demand for skills;

Loss of various employees (including recent apprentices) through inter-form or other industry movement due to better opportunities appears to have an effect on the industry workforce thorough skills shrinkage. More research is to be done in this area.

Literacy and Numeracy

There is a need for more discussions and commissioning of studies pertaining to issues

of literacy and numeracy in the electrotechnology industry. The importance for widening of the electrotechnology industry relevant discourse as

most of information available is either general or focusing on other industries; Available studies on literacy and numeracy pertaining to electrotechnology industry are

few in number and do not look at the literacy and numeracy issues at a great depth in terms of their impact on industry workforce;

Due to this scarcity of knowledge on issues of literacy and numeracy one can only speculate on consequent impacts on the workforce and supply and demand for skills.

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Apprenticeships completion/attrition rates and methods of attracting and retaining of workers/apprentices

Overall, the Industry stakeholders at NECA workshops feel that the impact of marketing

and other promotional activity around the trades has led to a significant increase in apprenticeship applications over the last two years;

The EE-OZ (2005) sees the impact on industry skills need as moderate; Strategies for attraction/retention: Pre-apprenticeships workshop participants indicate

that these are a good source for apprenticeship applications and a way to screen potential applicants, but some of these courses are too institutionally based and do not always lead to good vocational outcomes.

Dumbrell and Smith (2007) have conducted a survey with pre-apprenticeships who have recommended following improvements: more hands on classes; improve quality of some of the teachers; remove communication and computing classes; reduce hours but use time better; add work placements and work visits; improve the organization of the courses; and assess more regularly.

The EE-Oz (2005) considers worker attraction as a crucial factor especially for following occupations of electricians, refrigeration and air-conditioning mechanics, electronics trades and electrical workers;

The Woyzbun et al. (2006) study report a high degree of industry retention as well as the industry being well organized and doing well in terms of skills replenishment (p. 11);

Factors influencing completions and impacting on workforce: Toner (2003) points to structural changes as a factor influencing declining apprentice

rates. Although not stated by Toner (2003) improper existing financial distribution of incentives to employ apprentices can also impact the industry workforce – more research needed in this area.

QUSITAB (2007) shows how in state and regional areas (QLD) competition with mining industry impacts completion and retention of workers, with competitors offering higher wages or ‗poaching‘ electricians.

Non-traditional entrants to the industry and alternative training pathways (traditional and higher level entry points):

Woyzbun et al (2006) study indicates to a relative popularity of the higher level qualifications. This fact can be used to create a strategy to attract non-traditional enrolments.

The Foster et al (2007) study on the other hand points to employers‘ preferences to employ workers with practical experience obtained via trade.

Industry Restructuring

There is a severe scarcity of information on the subject matter; Only one relevant study found and used in this report; Even this study provides little concrete information on the impacts restructuring is

having on industry workforce and associated supply and demand for skills leaving one open to speculations;

The only concrete impact identified as a result of industry restructuring is the lack of time for training by employees and those self-employed. This lack of time for training is certainly likely to contribute to skills shortages.

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External Regulation and Compliance

There is a severe scarcity of information/studies concerning the subject matter; Existing consulted studies show that high level of regulation is influencing skills

requirements now and in the future; Constant supervision of employees impacts on workers risk taking for creativity

purposes and thus leads to skills shrinkage. Such supervision is also costly and money could better be spent on valuable training which in turn would help skills sustenance;

Contractors seem to believe that legislative and compliance changes would act as triggers inducing employers and employees to undertake training.

Assessment and Learning Methodologies

Little relevant evidence on the subject matter is available; Consulted studies confirm the views expressed during NECA held workshops; There are indeed various problems with existing assessment arrangements; Assessment practices are overregulated and need to be simplified; Continual regulation needs to be consistent; Consistency and validity of assessment will require regulators and RTO‘s to be open to

flexible systems and develop simple monitoring and funding procedures; Based on the limited information from consulted sources, skills shortages are a

possibility if the identified assessment problems are not fixed; More thorough research in this area however, is required for a more plausible conclusion

to be made. Training Issues

There are very few available studies which focus on training issues (selective

spending; training in smaller companies; mentoring schemes; apprenticeships length; additional/specific training; industry and public provider relationship; training incentives; teaching/learning material; training package), identified during the NECA held workshops and which if unaddressed are likely to impact industry workforce.

Training Incentives and Selective spending: Toner (2003) study is critical of existing Commonwealth incentives and seeing

additional payments as unevenly distributed between employers in metropolitan and non-metropolitan areas.

Payments are also equally distributed between employers irrespective that electrical apprenticeships take longer to complete than some others.

Training Package: The Foster et al. (2007) study shows that training package developers and employers

are not happy with existing higher level VET qualifications. Woyzbun et al (2006) study favors altering of training package to account for merging

technologies. This applies to higher level VET course which are to be more relevant. Industry and public provider relationship: the need for closer co-operation between the

public providers and the industry. This industry relies heavily on TAFE and the delivery and outcomes are not up to industry required standards;

The Woyzbun et al (2006) study indicates that TAFEs are finding it difficult to provide up to date and specialized training keeping up with technological changes.

Collaboration between vendors and TAFEs is welcome for vendors and TAFEs alike. For TAFE to succeed it will need to present a more unified image, both within the states and territories and nationally;

The study also indicates that TAFE training in comparison to vendor training lacks flexibility and currency (p. 66).

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Existing and Expected Areas of High Occupation/Skill Demand in Near and Medium Term Current Demand

General Electrician: According to the DEEWR 2006-2007 Occupational Reports, skills shortages/skill demand is apparent across the states and territories for the occupation of General Electrician.

In NSW this shortage of General Electricians is most apparent in Sydney and Regional NSW.

In QLD this shortage/demand is more apparent in regional areas of the state. In WA the most difficult positions to fill are those offered in metropolitan areas and

building industry in non-metropolitan areas. In NT this shortage/demand is most felt for maintenance electricians as well as in non-

residential housing sector. Other Occupations in Demand include, Electrical Powerline Tradesperson,

Refrigeration and Air-conditioning Mechanic, Electrical Powerline Tradesperson,

Electronic Equipment Trades, General Communication Trades, Communications

Lineperson.

Other Publications on current demand nationally including other occupations: other publications list the same occupations as being in demand with some of them also listing other occupations and or skills including Electrician (Special Class) (NSNL and MODL lists), demand for new set of skills for energy efficient technologies and more skilled technicians in computers and internet based systems, Electricians plus (Electricians with specialist/advanced technical maintenance skills and knowledge, including renewable energy), Data Communications Technicians, Electronic Security System Technicians (EE-Oz Environmental Scan 2008),

Other Publications on current demand in state and regional areas: Apart from

electricians in South Australia there is a demand for Electrical Fitters (very high demand), Electronic Technicians (moderate demand) (Global Maintenance USG Report 2005). In Queensland apart from occupations mentioned by DEEWR Occupational Reports there is a demand for Instrumentation Tradespersons, Instrumentation Tradesperson, Communication and Electronics Tradesperson, Lift Mechanics (over the next few years), Electrical Lineworkers and Cable Jointers (QUSITAB 2007). DOTARS (2006) reports demand for Electricians in NSW: Broken Hill Region. In Victoria, while focusing on 11 regions, Department for Victorian Communities (2006) reports that electricians have been most difficult positions to fill.

Woyzbun et al (2006) study: this study perhaps provides ‗deeper‘ insights on the

demand of skills. Based on their interviews with contractors, the authors claim that although shortages are a reality they are becoming more regional and occupation specific; shortages are a local rather than national issue; shortages are a short term problem; and there appears to be a slowdown of shortages.

Projections

DEEWR 2006- 2007 Occupational Report Projections: Short term projections For the occupation of General Electrician shortages/demand were expected for the six months from publication of reports for most of the states and territories except Tasmania where this demand was expected for at least 12 to 18 months.

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Other Occupations: demand was expected to remain across the states and territories

in the six months after publication for Refrigeration and Air-Conditioning Mechanics (except for VIC), Electrical Powerline Tradesperson, Electronic Equipment Trades, General Communication Trades (recruitment difficulties), and Communications Linepersons.

Other publications projections on demand in states and regions: In South

Australia there is a demand for Electrical Fitters (very high), Instrument Technicians (very high), Electronic Technicians (moderate) with shortage fro all expected by 2010 ( Global Maintenance USG Report 2005).

Long term projections, 2004 -2020: The number of qualified Electrical and

Electronics Tradespersons occupations expected to be reduced with the role of VET qualifications for the same trade not expected to increase (Tan and Richardson, 2008)

What issues/factors impact on the industry workforce and associated supply and demand for skills? Background Research conducted for the purpose of this study revealed a scarcity of relevant literature focusing on electrotechnology industry alone, with a link to specific factors impacting on industry workforce and associated supply and demand for skills. As a result reports which only partially focus on electrotechnology industry have also been consulted. Most of the sources used are current with even the oldest dating back to 2003 in order to gain the latest information on the state of the industry in relation to supply and demand of skills. Approach/Method The report consists of two parts. First part looks at the issues/factors impacting on the industry workforce and the associated supply and demand for skills. To this end, present report relies primarily on important issues/factors identified by electrotechnology employers during the NECA held workshops. These issues have then been thoroughly researched for pertinent scholarly studies to allow for a more complete picture. These studies include NCVER reports, EE-OZ reports, DEEWR and other Government reports as well as NECA‘s own studies. From these sources, present report identifies following issues/factors as impacting or possibly impacting on the eletrotechnology industry workforce and associated supply and demand for skills:

Technological changes; Ageing workforce; Workers‘ movement; Literacy and numeracy skills; Apprenticeships completion/attrition rates and methods of attracting and retaining of

workers/apprentices; Industry restructuring; External regulation and compliance; Assessment and Learning Methodologies; and Training issues;

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Second part of this report focuses on identifying existing and predicting areas of high occupation/skill demand in the near and medium term. The report relies on various governmental and non-governmental data focusing on the areas of high occupation/skill demand in Australia as a whole as well as individual states/territories and regions. Specific occupations and skills identified as being in demand from these sources are to befound in remaining pages of this report with the more succinct information placed in key findings and conclusions. What are skills shortages? Present report deals with examination of issues/factors impacting on the industry workforce and the associated supply and demand for skills. As a result, report anticipates skills shortages as one of the possible outcomes to some or all of identified impacts on the electrotechnology industry workforce. The concept of skill shortage is not easy to define and consequently there are no universal definitions found in the literature on the subject. Present report thus relies on the Australian Department of Education, Employment and Workplace Relations (DEEWR) own definition of skill shortage as shown below.

Skill shortages exist when employers are unable to fill or have considerable difficulty in filling vacancies for an occupation, or specialized skill needs within that occupation, at current levels of remuneration and conditions of employment, and reasonably accessible location.

Shortages are typically for specialized and experienced workers, and can coexist with relatively high unemployment overall or in the occupation. An occupation may be in shortage even though not all specializations are in shortage. Occupations may be in shortage in particular geographical areas and not in others. Skill shortages generally involve skills that require a significant period of training and/or experience. Skill gaps occur where existing employees do not have the required qualifications, experience and/or specialized skills to meet the firm‘s skill needs for an occupation. Workers may not be adequately trained or qualified to perform tasks, or may not have up-skilled to emerging skill requirements. Skill gaps may apply to new employees, or where employers are unable to find suitable applicants for an occupation and recruit workers who need further training and/or experience to meet the firm‘s skill needs for the occupation. Skill gaps do not simply relate to formal qualifications. Employees in an occupation may have the necessary vocational qualifications for the occupation, but not the specialized knowledge, skills and experience needed to adapt to new technology and new methods of working. Recruitment difficulties occur when employers have some difficulty in filling vacancies for an occupation. There may be an adequate supply of skilled workers, but employers are still unable to attract and recruit sufficient suitable employees. This may reflect a ‗marginal‘ skill shortage, with the employer recruitment experiences and other evidence not sufficient to assess the occupation as being in shortage. Alternatively, recruitment difficulties may be due to characteristics of the industry, occupation or employer, such as: relatively low remuneration, poor working conditions, poor image of the industry, unsatisfactory working hours, location hard to commute to, inadequate recruitment or firm-specific and highly-specialized skill needs.

Source: Skills Info at: http://www.skillsinfo.gov.au/skills/SkillsIssues/UnderstandingSkillShortages/Understandingskillshortages.htm#Whatis

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Although the above definition differentiates between skills shortages, skill gaps and recruitment difficulties, present report will simply subsume each of the above concepts under a common concept of ‗skills shortages‘, unless stated otherwise in the body of the report.

Impact on Industry Workforce and associated Supply and Demand for Skills: Technological Changes

1. EE-OZ (2003) ‘Shared Technology: A Roadmap for Traditional and Emerging Industries to 2008’

2. EE-OZ (2005) ‘Industry Skills Report’ ElectroComms & Energy Utilities Skills Council’

3. Diannah Lowry et al. (2008) ‘Future Skill Needs: Projections and Employers’ Views’, NCVER

4. Foster et al. (2007) ‘Higher-Level Vocational Education and Training Qualifications: Their Importance in today’s Training Market’, NCVER, Support Document.

5. Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER.

6. NECA/DEEWR/Connection Research (2008) ‘Skills Shortages in Australia’s Electrical Industry: Perceptions of Electrical Contractors’.

Technological Changes – Relevant Studies EE-OZ (2003) ‘Shared Technology: A Roadmap for Traditional and Emerging Industries to 2008’ The electrotechnology industry relevant studies consulted for the purpose of this report, although ranging in depth and focus, nevertheless point to similar impacts of technological changes on the workforce, with consequences for demand and supply of skills. The EE-OZ, (2003) ‗Shared Technology: A Roadmap for Traditional and Emerging Industries to 2008‘ report is perhaps the most comprehensive study consulted , as it goes into great depth to describe various technological changes and the impacts these are having on the electrotechnology industry. Overall, the study divides these impacts in two:

1. Highly technical work and continual changing environments; and 2. Continual science and technology influences on existing products of new processes and

equipment (EE-OZ, 2003, p. 27). Challenges

The need for more extensive knowledge to keep up with technological advancements (EE-OZ, 2003, p. 27).

Acquiring this knowledge is not without hurdles which are particularly felt by the employers.

In this context managers and supervisors face difficulty in training of existing workers, with many reluctant to learn new skills required (EE-OZ, 2003, p. 173).

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As a result, managers and supervisors are placed in a difficult position having to choose

to retain workers who due to their limited skills can not participate to the extent desired or choosing to dismiss such workers and consequently loose their experience at the expense of productivity (EE-OZ, 2003, p. 173).

This challenge calls for employers to come up with the most appropriate method of

introduction of the new technologies to existing workers (Long, M. and Fischer, J. 2002, cited in EE-OZ, 2003, p. 174) which would ultimately help increase worker knowledge and help meet the industry demand.

The report goes further, providing a very detailed account of specific impacts emerging technologies are having on electrical, electronics, and telecommunications occupations in the sub-fields of:

Networking for automated buildings; Networking for engineering; Next generation telecommunications networks; Wireless personal area networks (WPAN); Wireless local area networks (WLAN); Electricity Production and distributed generation; Renewable energy and power electronics; Fuel cells; Embedded processing; Filed programmable gate array microprocessors; and Microelectromechanical systems (MEMS).

When analyzing in great detail1 each of the above sub-fields covered the overall conclusion one can reach in terms of effects of technological change on electrotechnology industry occupations/workforce are:

Requirement of greater knowledge; Expansion of duties; and Increased complexity of work;

The extent of above factors varies from one occupation and specific area of work to another. Generally speaking however, the above factors will affect all of the identified sub-fields, and occupations within them: electricians, electronics technicians and telecommunications technicians. If unacknowledged and unaddressed, technological change at least if based on findings of this report is likely to contribute to skills shortages and thus affect the appropriate supply of qualified labor. EE-OZ (2005) ‘Industry Skills Report’ ElectroComms & Energy Utilities Skills Council’ The EE-OZ (2005) ‘Industry Skills Report’ ElectroComms & Energy Utilities Skills Council’ study looks at both structural and technological changes and the impacts they are having on the electrotechnology industry. The study identifies specific technological changes including:

Transfer from analogue to digital technology and convergence and/or sharing of

technologies in various sub-sectors;

1 To see description of very specific effects on electrotechnology occupations in each of the sub-fields see Appendix 1: EE-OZ (2003) ‘Shared

Technology: A Roadmap for Traditional and Emerging Industries to 2008’.

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Structural changes involve a rapid increase in convergence of once independent

occupations and sub-sectors of the industry (EE-OZ, 2005, p. 17). The study findings do not deviate from the 2003 ‗Shared Technology: A Roadmap for Traditional and Emerging Industries to 2008‘, concluding that:

Both structural and technological changes have caused an impact ‗on market demands for new skill sets and for an ongoing up-skilling of the current workforce‘ (DEST, 2002, cited in EE-OZ, p. 17).

This conclusion again points to the importance of keeping up with technological changes and addressing the impacts they produce, to avoid skill shortages, leading to inadequate supply of appropriately qualified workers. Diannah Lowry et al. (2008) ‘Future Skill Needs: Projections and Employers’ Views’, NCVER Through interviewing of employers and employer representatives Lowry et al. (2008), confirm the findings of above studies, by emphasizing:

The increased scope of skills required by electricians; The authors note in particular the example of the advent of ‗smart houses‘, prompting

electricians to learn a variety of applied technologies beyond the traditional skill set (Lowry, et. al. 2008, p. 28).

Foster et al. (2007) ‘Higher-Level Vocational Education and Training Qualifications: Their Importance in today’s Training Market’, NCVER, Support Document. Foster et.al. (2007) study is perhaps the most comprehensive pointing to same or similar changes/impacts on the industry as well as identifying others. The authors rely on data collected from employers, training package developers and student focus groups and point to following changes/impacts:

‗continuing convergence of communications and information technologies which have application in commercial and domestic situations‘;

‗concern for environmental sustainability and the development of renewable energy systems including development of a range of fuel cell technologies‘;

‗development of new technologies for implants and imaging in medical science‘; ‗greater automation of production‘; ‗increasing use of ‗plug and play‘ componentry in technology, particularly in miniaturized

technologies‘; ‗electricity generation, with a range of energy solutions for networks and smart devices

deployed between shared technology industries‘; ‗growth in demand for commercial and domestic security systems‘; and ‗a high level of regulation, particularly in occupational health and safety and technical

regulation and codes‘

Source: Foster et al. (2007) ‗Hgher-Level Vocational Education and Training Qualifications: Their importance in

today‘s training market‘, NCVER, Support Document, p. 24.

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In terms of demand for higher level skills due to technological changes the authors of the report indicate to lack of uniformity of view in this respect. The responses varied depending on the persons interviewed and their area of operation within the industry. Following are some of the responses:

There is a need ‗for both greater breadth and depth, including higher levels of skills‘ (Training Package Developer).

There is also a simplification of skills at play, with an increase of emphasis on replacement of faulty parts rather than design of new solutions (Industry Service Person).

Need for higher levels of skills and ‗greater innovation and design skills‘ due to ‗new treatments increasingly involving customized solutions and more sophisticated technologies‘ (Medical Technology).

Innovation more valued than increased technical knowledge. Innovation necessary to help suit older technologies to new client demands (Water Tools)2.

Increased intertwining between industries or sectors of industries and technologies. Technicians required to posses specific knowledge needed in their field as well as new knowledge of systems the industry is now associated with (Big Car Factory).

Source: Foster et al. (2007) ‗Higher-Level Vocational Education and Training Qualifications: Their importance in

today‘s training market‘, NCVER, Support Document, p. 25

This study also confirms the reality of technological changes and their impacts on the workforce. Demand for higher level skills is acknowledged, but is not the only consequence of technological change. As Foster et al (2007, p. 26) show: ―Skill needs in electrotechnology are simplified on the one hand through ‗plug and play‘ componentry in fault findings and servicing of equipment. Innovation, problem solving and design are required for customizing innovative technological solutions for clients and in working systems‖.

Technological change are thus seen as creating a demand for both greater high-tech knowledge as well as simpler skill sets. In other words there is a widening of duties requiring a diverse set of skills. Implications for the industry if these impacts remain unaddressed are skills shortages leading to inadequate supply of ‗complete‘ workers – those qualified in both higher-level skills and able to also perform simpler duties. Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER. Much like other studies consulted, the NECA/NCVER Woyzbun et al. (2006, p. 63) ‗Training and skills in the electrical skills in the electrical and communications industry‘ study also shows awareness of the impact of technological changes on electrotechnology industry – contractors in particular. This study relies on training providers and contractor interviews with following being some of the changes identified:

Automation – incorporating computer systems into the management of equipment; Development of smart wiring systems;

2 A unit within a public environmental management authority which supplies calibration instruments that measure quality and quantity of

water. Source: Foster et al. (2007) ‘Higher-Level Vocational Education and Training Qualifications: Their importance in today’s training market’, NCVER, Support Document

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Use of wireless and infrared technology; New approaches in lighting control; and Energy conservation.

Not deviating from previous studies Woyzbun et al (2006, p. 63) also see merging of technologies producing a demand for wider scope of skills. As one interviewed TAFE training provider pointed out: ―Whereas in the past they [electricians] simply installed switches, cables, lights and power points to plug appliances into, now they have to think how to put system components together, and to run the non-power communications wiring into it and then set it up to make it work. So that is a different set of skills we are looking at, quite different from what the traditional electrician uses.‖ (TAFE training provider, cited in Woyzbun et al. 2006, p. 63)

Training providers interviewed in the study also identified the need for increase/emergence of specific knowledge in the electrotechnology industry. This knowledge, training providers argue is at two levels:

Lower level – essentially the knowledge of the existing certificate III worker;

Duties: Basic installation including cable pulling and fixing off standard components such as power points.

Higher level – usually technicians with diploma or advanced diploma level of knowledge

Duties: High level of problem solving and communication skills. Problem solving – design, installation, configuring and troubleshooting of equipment; Communication Skills – communicate with clients, industry specialists, instruct lower level workers on what to do (Woyzbun et al. 2006, p. 64).

In terms of recommendations, the interviewed training providers opt to meet the emerging and/or more versatile demand for skills in following ways:

1. Multi-skilling of existing employees; or 2. Development of two levels of installers – lower level installer to focus on less complex

tasks (e.g. wiring); higher-level installer to perform more complex duties (e.g. design of installation) (Woyzbun et al. 2006, p 64).

Concluding remarks – Implications for the electrotechnology industry All studies consulted show awareness of the technological changes and the impacts they are having on the electrotechnology industry. Overall, these can be classified as:

Demand for increased level of skills due to technological change is real; Both technological and structural changes are having an impact on the workforce; Increased complexity of work; Widening of duties (need for high-tech skills as well as simpler tasks); Increased convergence of occupations and sub-sectors; Need for up-skilling of current workforce; Employer difficulty in attracting existing staff to training in new technologies.

Other conclusions/predictions

The impacts of technological changes on the workforce are real, and unless addressed, these impacts are likely to produce skills shortages, leading to inadequate supply of appropriately qualified labor;

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The NECA/NCVER Woyzburn et al (2006) recommendations are helpful to this end:

multi-skill existing workers or develop two level installers. Continual improvements to the VET system and education system in general, by

addressing the existing shortages as well as by anticipating future shortages in particular areas of the industry are also necessary.

Impact on Industry Workforce and associated Supply and Demand for Skills:

Ageing Workforce

1. ACCI, Issues Paper, April 2006 2. Costello, P. (2007) ‘Intergenerational Report’, Treasury Documents 2007 3. Yan T. and Richardson P. (2008) ‘Demographic Impacts on the Future Supply of

Vocational Skills’ National Institute of Labour Studies, Flinders University. 4. Karmel, T. and Koon, O. (2007) ’Will we run out of young men? Implications of the

ageing of the population for the trades in Australia’ NCVER, Occasional Paper. Ageing Workforce – Relevant Studies Ageing workforce is considered a serious impediment to Australian economy. This fact is recognized by the Australian Government, peak industry bodies and in literature on the subject. The concern of the Government to this end has been expressed through the Intergenerational Report (Costello, 2007, p. 9) which foresees a reduction of the 15-64 working age population as impacting economic growth. The Australian Chamber of Commerce and Industry (ACCI) are also concerned about the impacts of ageing on the workforce and see the high number of workers retiring or about to retire as a contributor to labor and skills shortages (ACCI, Issues Paper, April 2006). Despite the impact of ageing being real, there are very few studies linking the problem of ageing with the electrotechnology industry. For the purpose of this report only two studies were identified as relevant. Yan T. and Richardson P. (2008) ‘Demographic Impacts on the Future Supply of Vocational Skills’ National Institute of Labour Studies, Flinders University; and

Findings from the study by Yan and Richardson point to a real impact ageing is having on the electrotechnology industry. Generally, Yan and Richardson (2008, pp. 7-8) anticipate an increase in the number of older workers with the number of younger workers likely to remain steady. In relation to electrotechnology industry specifically, they indicate to following impacts:

Projection of an increase of number of younger workers (15-24 years) and a steady percentage or even a fall of other categories in the ‗Electronics and Electrical‘ industry (Yan and Richardson, 2008, p. 28).

Foresee less reliance on the VET qualifications up until 2020, with a decline in absolute numbers of trade-qualified workers for the ‗Electrical and Electronics tradespeople‘ (Yan and Richardson, 2008, p. 32).

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The authors make following recommendations to meet the ageing challenge:

Extension of working lives of older workers due to expected shortage; Involvement of the VET sector in the up-skilling of those workers who are at the present

‗marginal to the workforce‘ (Yan and Richardson, 2008, p. 8). Incentives for workers over the age of 55 (higher wages; better job prospects) who due

to their age are unlikely to remain in the industry for too long (Yan and Robertson, 2008, p. 28).

Karmel, T. and Ong, K. (2007) ’Will we run out of young men? Implications of the ageing of the population for the trades in Australia’ NCVER, Occasional Paper. The second study by NCVER, the Karmel and Ong (2007) ‗Will we run out of young men? Implications of the ageing of the population for the trades in Australia‘ however, comes up with different conclusions. While focusing on various trades‘ occupations including Electrical and Electronics trades, the study makes following conclusions:

Ageing as an impact on the trades is very small in the short to medium term (Karmel and Ong, 2007, p. 14).

Demographic factors as an impact will cause 4% of tradespersons decrease at the most (Karmel and Ong, 2007, p. 14)

The above applies to most occupations studied [including those in the electrotechnology industry] (Karmel and Ong, 2007, p. 14).

Skills shortages more likely to be a product of unattractiveness of the trade rather than demographics (Karmel and Ong, 2007, p. 20).

This last conclusion does however depend on three conditions:

Continual attractiveness of trades; Minimal commencement rates decline among young men; and

Minimal attrition rates increases (Karmel and Ong, 2007, p. 20).

Despite their minimizations of the impact of ageing, the authors conclude that overall and in the long term:

‗The trades workforce is going to be directly affected by the ageing of the population because of its reliance on young men as entrants‘ (Karmel and Ong, 2007, p. 20); and

‗The ageing of the population will make a very significant difference to the size of the trades workforce – some 320 000 people by 2040‘ (Karmel and Ong, 2007, p. 20).

The authors of this study therefore do not completely discount the impacts of ageing on trades including the trades in the electrotechnology industry. With the expected change to size of the workforce (this is likely to happen to electrotechnology industry), skills and labor shortages are an expected outcome.

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Concluding remarks and industry implications

Research revealed a scarcity of studies looking at the problem of ageing and its impacts on the electrotechnology industry;

The two relevant studies consulted in this report differed in their opinion of the degree and the timing of the impact of ageing on the trades workforce;

Neither of the studies however, dismissed ageing as an important factor impacting the electrotechnology workforce/industry;

Given the often conflicting results researchers arrive at and the scarcity of relevant studies it would be prudent for the electrotechnology industry to address the issue of ageing to avoid the possibility of skills and labour shortages and other unwanted perils to the industry workforce. Recommendations to meet the challenge Recommendations provided by Yan and Richardson (2008) include:

Extension of working lives of older workers; Involvement of the VET sector in up-skilling of those workers who are ‗marginal to the

workforce‘; and Provision of incentives for workers over the age of 55 (higher wages; better job

prospects) who due to their age are unlikely to remain in the industry for too long. These recommendations are a good start, although more research should be done in this area as pertaining to electrotechnology industry specifically, which may in turn produce more congruent view of the degree on the impact of ageing on the workforce and associated supply and demand for skills.

Impact on Industry Workforce and associated Supply and Demand for Skills:

Workers’ Movement Workers’ Movement – Relevant Studies During the NECA held workshops employers have reported people movement in some states as having a large impact on the industry (e.g. 500 electricians leaving Victoria every month to overseas and other Australian destinations like Western Australia and Queensland). Apart from information gained during the NECA held workshops there appears to be no information on interstate and overseas workforce movement from electrotechnology industry and the effects it produces in terms of supply and demand. General information on migration from Australian Bureau of Statistics (ABS) or Department of Immigration and Citizenship are of little use in this regard. Such information can point to migration patterns and provide numbers of people moving to other states or countries, but there is no separation of data indicating as to the percentage of electrical workers comprising this cohort. Such information is not sufficient to allow for best predictions on the impact people movement is having on the workforce and associated supply and demand for skills. A through research in this area is required urgently.

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Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER.

The only somewhat relevant information is found in the Woyzbun et al study which deals with

the employee turnover as having an effect on industry workforce, with workers either moving

around in the industry or out of industry altogether (p. 72). This problem is particularly apparent

in apprentices who recently gained their licence and have chosen to leave due to better money

and opportunities with other companies who in the past have not been known to take up

apprentices (p. 72). According to one contractor, the problem of employee turnover is

particularly problematic when it comes to service people (day to day servicing and maintenance

of existing installations) with lots of money invested in training and then loosing the trained

employees (p. 72). Following comments by some contractors pain this picture.

There does not appear to be a difficulty in attracting people to the industry at entry-level— but we

have difficulty in keeping them in the industry, particularly toward supervisory/mid-management

positions. The lack of strong skills at the middle management and supervisor levels is serious and is a

potential in preventing growth for the company in the future (p. 72).

Metropolitan NSW electrical contractor

The market needs [licensed tradesmen]. We will see four or five ads run on a weekend for

electricians, and the companies will get no responses. We are not looking for any highly specialised

skills, just commercially trained electricians. We‘ve been looking for servicemen lately but you can‘t

get them for love nor money … We can use specialist sub-contractors for setting systems up, but

often we can‘t get them back to [service] them, so you have got to have people who can do [servicing]

(p. 72). Regional electrical/communications contractor

Concluding remarks – Implications for the electrotechnology industry

There is an immediate need for thorough research in the area of people (workforce) movement in the industry and consequent impacts on workforce and suppy and demand for skills;

The challenge for the industry will be, to come up with solutions to interstate movement by aiming for national licensing requirements (check with Steve) as well as finding ways to retain qualified workforce within Australian borders; and

This effectively means retention of workforce through improvement of various working conditions and improved strategy of attraction of youngsters to the industry in conjunctions with Government and businesses/contractors.

Loss of various employees (including recent apprentices) through inter-form or other industry movement due to better opportunities appears to have an effect on the industry workforce thorough skills shrinkage. More research is to be done in this area, but generally speaking a strategy needs to be created to address this issue in order to reduce the movement of much needed employees.

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Impact on Industry Workforce and associated Supply and Demand:

Literacy and Numeracy Skills

1. Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER.

2. EE-OZ (2007) Breakthrough!: Mentoring Guidelines 3. EE-OZ (2007) Breakthrough!: Using Plain English in Workplace Communication 4. EE-OZ (2007) Breakthrough!: Working with Communication, Language, Literacy and

Numeracy needs in Workplace Training & Assessment. 5. Foster S. and Beddie F. (2005), ‘Adult Literacy and Numeracy: At a Glance’ NCVER

Literacy and Numeracy Skills – Relevant Studies The economic benefits of literacy and numeracy are multiple and according to the Australian Chamber of Commerce and Industry include:

Increased output of products and services; Reduced error rate, including returned orders; Reduced waste in production and services; Increased employee retention; Better performance; Improved capacity to use new technology; Reduced time per task; Better occupational health and safety record; Increased customer retention and satisfaction; Improved quality of work and life; and Improved capacity to cope with workplace change.

Source: (Balzary, 2004, cited in Foster and Beddie, 2005, p.2).

In terms of electrotechnology industry, the industry skills council EE-OZ Training Standard Australia shows that literacy and numeracy skills are particularly important due to following changes taking place:

technological change; need for teamwork; requirement to multi-skill and obtain recognized qualifications; and increased emphasis on duty of care issues such as safety and the environment for

enterprises

Source: (EE-OZ, Breakthrough, Working with Communications, Language, and Numeracy needs in Workplace Training and Assessment).

As a result of the above changes, today‘s electrotechnology workers are required to poses a wider spectrum of knowledge which goes beyond the manual skills and technical understanding, including new ways of communication, language, literacy and numeracy skills (EE-OZ, 2007 Breakthrough, Working with Communications, Language, and Numeracy needs in Workplace Training and Assessment). Throughout the NECA held workshops, members have voiced their concern over the level of numeracy and literacy skills in the industry. More specifically, they have raised the issue of attainment of acceptable minimum mathematics skills (at least sound Year 10 level) as an on-going problem with young applicants.

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They indicate to a high failure level of the NECA mathematics test and feel there is a need for the development of practical math lessons in schools for trade training aspirants. Unfortunately, research conducted in the area of literacy and numeracy revealed lack of relevant literature which would link issues of numeracy and literacy with electrotechnology industry, let alone answer specific questions and provide solutions as to why apprentices are failing their tests and possible impacts on industry and associated supply and demand for skills. As a result, electrotechnology industry is lagging behind rather than contributing to widening of the existing discourse. While the issues of math failing by apprentices is an important issue, and if unaddressed will likely produce skills shortages, widening of discourse may give rise to many more such issues all of which may play a part in impacting on industry workforce. Due to this scarcity of knowledge, one can only speculate on the effect these may have on industry workforce and associated supply and demand for skills.

Specific Electrotechnology Industry Studies As already established, there are very few studies which look at literacy and numeracy issues in the electrotechnology industry. Even those studies available take a marginal interest in these issues. Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER. The Woyzbun et al. 2006 NCVER/NECA ‗Training and Skills in the Electrical and Communications Industry‘ study looks at the issues of training and skills, but does not devote a specific chapter to the issues of literacy and numeracy. One of the pertinent conclusions it draws is that industry workforce is well trained and keeping up with technological demands (Woyzbun et al. 2006, p. 13). Although this may be the case for the time being, given the employer reports on the inadequate knowledge of apprentices this is likely to change with a possible consequence of inadequately trained apprentices; meaning skills shortages. Some of EE-OZ documents are more specific however and include:

1. Breakthrough!: Mentoring Guidelines; 2. Breakthrough!: Using Plain English in Workplace Communication; and 3. Breakthrough!: Working with Communication, Language, Literacy and Numeracy

needs in Workplace Training & Assessment. These documents are useful resources indicating that EE-OZ is aware and/or anticipating literacy and numeracy issues to arise. Their focus however is not on in-depth analysis of literacy and numeracy issues and their effect on the workforce as much as on providing instructions to assumed/existing literacy and numeracy problems. For example:

Breakthrough!: Using Plain English in Workplace Communication aims to ‗introduce the principles of plain English and provides an outline of how to implement a plain English policy for all communication in the workplace‘;

Breakthrough!: Mentoring Guidelines aims to pair ‗more experienced employee (mentor) in order to develop new skills or to enhance career pathways‘. Mentoring strategy can be used for several purposes including development of specific communication, language, literacy and numeracy skills among other things;

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Breakthrough!: Working with Communication, Language, Literacy and Numeracy

needs in Workplace Training & Assessment. This document aims to ‗raise awareness of the role and importance of communication, language, literacy and numeracy skills in workplace training and assessment in relation to competency-based training‘. The aim is also on development of ‗relevant skills for workplace trainers and assessors working with competency-based training to achieve the qualifications in the National Training Packages for the Utilities, Electrotechnology and Lift industries‘.

Due to the focus of Breakthrough documents on assumed issues, documents in question do not allow for a thorough analysis of the current state of literacy and numeracy in the industry and what possible impact it is having on the industry workforce and associated supply and demand for skills. Conclusions and Implications for the Electrotechnology Industry Based on the research in this report following conclusions can be reached:

There is a need for more discussions and commissioning of studies pertaining to issues of literacy and numeracy in the electrotechnology industry.

The importance for widening of the electrotechnology industry discourse is important as most of information available is either general or focusing on other industries;

Available studies on literacy and numeracy pertaining to electrotechnology industry are few in number and do not look at the literacy and numeracy issues at a great depth.

As a result, electrotechnology industry is lagging behind in knowledge on issues of literacy and numeracy and can only speculate on consequent impacts on the workforce and supply and demand for skills.

Apprenticeship Completion/Attrition Rates and Attracting and Retaining of Workers/Apprentices

1. ABS ‘Australian Social Trends 2007’, 4102.0 2. Ball, K. (2004) ‘Factors influencing completion of Apprenticeships and

Traineeships’, NCVER 3. Dumbrell T. and Smith E. (2007) ‘Pre-apprenticeships in three key trades’, NCVER. 4. EE-OZ (2005) ‘Industry Skills Report’ ElectroComms & Energy Utilities Skills

Council’ 5. Karmel T. (2006) ‘Older Workers in Apprenticeships and Traineeships’ NCVER. 6. Toner, P. (2003) ‘Declining Apprentice Training Rates: Causes, Consequences and

Solutions’, Australian Expert Group in Industry Studies, University of Western Sydney.

7. Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER.

8. QUSITAB (2007?) ‘Queensland Mining Sector Growth and the Human Resource Impact on Electrotechnology, Electricity Supply, Gas Supply and Water Industries’ Queensland Utilities and Services Industry Training Advisory Board

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Attracting and Retaining of Workers/Apprentices – Relevant Studies Apprenticeships completion/attrition rates has also been one of the topics discussed during the NECA held workshops. Overall feel among the participants on this topic has been positive, with the agreement that the impact of marketing and other promotional activity around the trades has led to a significant increase in apprenticeship applications over the last two years. Strategies for attraction/retention The above confidence notwitsdhtanding, in terms of attraction/retention, the focus is still on what strategies can be developed to engage non-traditional entrants to the industry and use alternative training pathways (traditional and higher level entry points). In relation to pre-apprenticeships, workshop participants indicate that these are a good source for apprenticeship applications and a way to screen potential applicants, but some of these courses are too institutionally based and do not always lead to good vocational outcomes. The number of completion/attrition rates can be an indicator of interest towards a given trade and the consequent impact on the workforce and associated supply and demand. However, some relevant information on apprentice/worker completion/attrition rates although available, is not specific enough to allow for plausible analysis of the impact on industry workforce. The two sources from ABS and NCVER below fall into this category. ABS ‘Australian Social Trends 2007’, 4102.0 and 2008 ‘Australian Vocational Education and Training Statistics: Apprentices and Training Quarters’, NCVER The ABS ‗Australian Social Trends 2007‘ (p. 3) shows that apprenticeship rates are on the rise for the electrotechnology industry, with the percentage of apprentices/trainees as a proportion of the workforce increasing from 8.8% in 1996 to 13.4% in 2005. From this information however, we can not distinguish whether this increase is due to growth of the industry as a whole or other reasons. The 2008 NCVER ‗Australian Vocational Education and Training Statistics: Apprentices and Training Quarters’ (p. 13), June Quarter, shows the completion rates of traditional trades3 to be on the rise, standing at 148.100 in 2008 compared to 121.200 in 2003. In respect to attrition rates, same source shows cancellations and withdrawals in 2003 to stand at 29.600 compared to 35.900 in 2008. These results point to an increase in both completion and attrition rates making the predictions on possible impacts either are having on the demand and supply of skills rather difficult. EE-OZ (2005) ‘Industry Skills Report’ ElectroComms & Energy Utilities Skills Council’ The EE-OZ 2005 report relied on industry feedback as a method for its findings, with the annual EE-OZ Training Standards National Conference used as the main driver of initiation of such involvement. In terms of the level of impact the issue of worker attraction/retention is having on skill needs in the industry, the study reports following findings:

3 Technicians and Trade Workers (Traditional trades) includes the Electrotechnology and Telecommunications Trades Workers (according to

the Australian and New Zealand Standard Classification of Occupations ANZSCO from www.ncver.edu.au/publications/2092.html

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The impact is moderate; Worker attraction is a crucial factor especially for following occupations:

Electricians; Refrigeration and air-conditioning mechanics; Electronics trades; and Electrical workers.

This report therefore, does not deviate much from the views expressed by the industry stakeholders during the NECA held workshops. Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER.

Generally speaking the Woyzbun et al. (2006) indicates to positive results reporting a high degree of industry retention. This fact notwithstanding, the authors of the study also report a high level of inter-firm movement of workforce with more than half of specialist employees choosing to leave their employer after five years of service (Woyzbun et al. 2006, p. 11). Inter – firm movement can have a negative effect on some firms who due to their workers leaving earlier than expected do not get a complete return on their training investment (Woyzbun et al. 2006). However, this practice does not have to have negative consequences on the electrotechnology industry as a whole. The inter-firm movement coupled with the longer tenure in the industry suggests that the skills replenishment in the industry is well organized and that the workforce is highly specialized and competitive (Woyzbun et al. 2006, p. 11). The survey conducted in the above study also revealed some important insights on the state of apprenticeships from the apprentices‘ point of view. These are:

‗The vast majority (85%) of the electrotechnology and telecommunications apprentices surveyed indicated that they were satisfied with the quality of their training‘ (p. 49);

‗Most (88.3%) apprentices surveyed also agreed that they gained the skills they wanted to learn from their training‘ (p. 49); and

96% of apprentices surveyed would recommend the training they received to others (p. 49).

The overall results for the industry are therefore positive and the challenge for the future will be on continual improvement of the image of the industry and retention of existing workforce. The need for continual work in this area is best exemplified by the comments of two contractors interviewed in the Woyzbun et al. 2006, p. 77) study: ―The industry needs to be promoted face-to-face – that is getting some knowledgeable people from the industry to talk to schools and the children. People like myself, who run businesses, need to go in there and talk to them as a real person and tell them what the opportunities are – it‘s not just digging a trench and putting the cables in, it‘s become sophisticated and there are a lot of paths at all levels. That‘s then sort of thing I think they are not being told. They think of an electrician is just a wire-jerker. I‘ve had discussions with several [career advisers] and they really don‘t have a clue what an electrician does, and they‘ve admitted it.‖ (Large commercial/light industrial electrical contractor) ―I went to a local high school with a population of 400 to 500 students and put in a day there in which I, and others, gave a presentation. Then afterwards we had some classes for about an hour in which they asked questions and we went through things with them. I was disappointed that from all those students our company never had one put in for an apprenticeship that year.‖ (Very large industry/commercial/domestic contractor).

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The Ball, K. (2004) ‘Factors influencing completion of Apprenticeships and Traineeships’, NCVER The Ball, K. NCVER 2004 ‗Factors influencing completion of Apprenticeships and Traineeships‘ for example, is a relevant study, but due to its focus on various industries it only partially focuses on eletrotechnology industry problematic. Following are the most relevant findings from the study:

Age, gender, residential location, apprentice occupation and qualification level are important factors impacting on likelihood of completions (Ball 2004, p.12);

Predictions of completions based on age – for the electrical and electronics tradespersons the study predicts that likelihood of completions in several age groups is as follows:

45 years and over: 75.7%

25 to 44 years: 69.2%

20 to 24 years: 63.8%

18 and 19: 67.6%

17 years and under: 70.5% (Ball 2004, p. 8) These results are useful as they show different factors which influence completions/attritions of apprentices but are not specific enough to allow for a plausible hypothesis on the effects of each of identified factors (age, gender etc.) on the workforce. Prediction of completions is useful information as it shows which age groups are less likely to complete their apprenticeships and thus possibly contribute to skills shortages. More follow up studies are required however, to confirm and/or compare the results of the Ball, K (2004) study. Toner, P. (2003) Declining Apprentice Training Rates: Causes, Consequences and Solutions, Australian Expert Group in Industry Studies, University of Western Sydney, http://www.dsf.org.au/futuretradeskills/downloads/DecliningApprTR_Toner_JUL03.pdf Declining Apprentice Rates Much like the other studies consulted, this paper deals with various occupations rather than electrotechnology industry occupations alone. In dealing with the subject matter of declining apprentice rates the author makes following conclusions:

Structural changes affecting various industries including electrical significantly contribute to the decline of training rates including ‗corporatization and privatization of public utilities, growth of ‗lean production‘ systems and associated reduction in firm size and expansion of JIT, outsourcing and labor hire.

Decline of training rates does not necessarily diminish the demand. Electrical and electronics trades for example, have experienced modest growth in employment over the last decade despite the decline.

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Apprentice wages

Relationship between wages and employment levels: no evidence suggesting correlation between wages compression of apprentices/tradespersons and decline in apprentice training rates (Toner, 2003, p. 14);

At the same time author does not neglect to present a different, orthodox economic point of view on the matter, which considers ‗the way in which recruitment decisions are made for apprentices and trainees‘ to be a mystery (DEETYA 1997:100, cited in Toner 2003, p. 14).

Financial incentives to employ apprentices The paper is critical of the commonwealth financial incentives indicating few of its shortcomings.

Incentives provided are equal and paid to employers at the commencement and on completion of apprenticeships and traineeships without consideration that some traineeships or apprenticeships such as electrical take longer to complete (Toner, 2003, p. 14).

Distribution of incentives is not always appropriate with additional payments furnished

only to employers in non-metropolitan areas (Toner, 2003, p. 14), even though in ‗NSW

For example, around 75% of all apprentices are located in metropolitan areas (BVET 2001: 37, cited in Toner, 2003, p. 15).

Following are possible solutions recommended, most of which also relate to electrotechnology industry:

Inadequate financial incentives to employ apprentices: i) Changes to the structure of Commonwealth financial incentives offered to

employers of apprentices – expansion of current occupations under Innovation Incentive and inclusion of metropolitan areas by present incentive programme

ii) Introduction of training levies Declining quality of applicants:

i) Improvement of VET in schools ii) Re-introduction of large-scale government support for pre-apprenticeship

programmes iii) Improved marketing of apprenticeships

Corporatization and privatization of government activities: i) Examine the scale and effectiveness of current policies to use government

capital works programmes and Public Private Partnerships to lift training rates Increased competition and altered production systems:

i) Training levy on labour hire companies ii) Encouraging firms to invest in product and process in innovation which in turn will

positively affect investment in vocational training iii) Improve the quality of Group Training services

Transformation of the industrial relations system: Enhancing multi-employer co-ordination of training

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QUSITAB (2007?) ‘Queensland Mining Sector Growth and the Human Resource Impact on Electrotechnology, Electricity Supply, Gas Supply and Water Industries’ Queensland Utilities and Services Industry Training Advisory Board The report provided by Energy Skills Queensland is of great relevance as it shows some of the impacts electrotechnology industry is facing regionally to retain apprenticeships/workers. The paper is based on interviews with the key industry stakeholders including:

Electrical Trades Union QLD; Electrical and Communications Association (and particularly ECA members from Central

and North QLD); Powerlink; Energex ; Ergon; Australian Water Association; Xstrata Copper; TORGAS; Department of Education, Training and the Arts

The report draws following conclusions:

Electrical contractors report difficulty to retain workers due to the growth of the mining sector (p.9);

Electrical contractors claim that young apprentices finish their apprenticeships ‗so they could get a job in the mines‘ (p. 9);

Higher wages is the main factor of attraction to the mining sector (p. 9); Electrical contractors unable to compete with wages offered by mining sector, even with

re-setting of wage structures (p. 9); Mining companies are content to ‗poach‘ electricians from small businesses instead of

training sufficient number of apprentices themselves (p. 9); Despite increases in commencements employers are having difficulty in seeing

refrigeration and air-conditioning mechanics through apprenticeship completions. Employers also report extreme difficulty in employing qualified tradespersons in both metropolitan and regional locations (p. 14);

Difficulty in retention/attraction to following jobs in the industry is also noted:

Instrumentation Tradesperson – due to ‗major mining projects and expanding commercial and industrial activity throughout the State; and

Lift Mechanics – partially due to competition with the mining sector.

Strategies for attraction/retention (School-based apprenticeships) There were very few studies focusing on pre-apprenticeships in electrotechnology industry out of which one could figure out whether school-based or pre-apprenticeships are a useful concept to be used for attraction/retention of workers in the industry. Following are the relevant studies: Dumbrell T. and Smith E. (2007) ‘Pre-apprenticeships in three key trades’, NCVER

The 2007 Dumbrell T. and Smith E. ‗Pre-apprenticeships in three key trades‘ is another relevant study looking at the possible contribution of pre-apprenticeships to an increase in potential supply and retention and completion rates of tradespersons. The focus of the paper is on three key trades including, electrotechnology, automotive and engineering studies.

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Although valuable, deficiency of the study is its focus on several industries rather than electrotechnology industry alone, which makes the analysis rather difficult, having to ‗weed out‘ specific electrotechnology industry information from information on other industries. Another deficiency of the study is the fact that the authors could not definitively conclude ‗whether pre-apprenticeships enhance retention and completion rates in apprenticeships and subsequent transition into related trades‘.

As a part of the study, a survey has been conducted in South Australia and Victoria with electrotechnology pre-apprentices making following important comments on improvements of the course:

More hands-on classes; Improve the quality of some teachers; Remove communication and computing classes; Reduce hours but use time better; Add work placements and work visits; Improve the organization of the courses; and Assess more regularly.

These comments are helpful as they give indication of the expectations of pre-apprentices in terms of improvements to the pre-apprenticeship programs. Addressing this issue could improve the retention rates in the industry and thus help sustain the industry demand. This is confirmed by the findings from the survey, with ‗apprentices who had done a pre-apprenticeship more likely to be planning further study related to their trade than those who had not undertaken such a course‘ (Dumbrell and Smith, 2007, p. 10). The fact that the overwhelming majority of respondents to the survey (64% agree-strongly agree) enjoyed their pre-apprenticeship course and even a larger percentage (89.6% agree-strongly agree) stated they learned from the course, indicates to the value of pre-apprenticeship courses as a possible stimulator drawing future apprenticeship applicants and this way satisfying/sustaining the workforce skills demand. Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER The Woyzbun et al. study also revealed some important insights on school-based apprenticeships of relevance to the present inquiry. According to the study there were very few apprentices and trainees undertaking school-based New Apprenticeships, with 1.7% of ICT telecommunications and 0.4% of UTE electrotechnology industry apprenticeships school-based in 2004‘ (p. 49). This is an indication that more ought to be done to attract young people to school-based apprenticeships since as established from the Dumbrell and Smith 2007 study these will help improve retention rates. Employers engaged in this study overwhelmingly support pre-vocational training with one employers stating that ‗he no longer apprenticed any young people who had not undertaken pre-vocational study‘ (p. 81). This view therefore parallels the expressed views of stakeholders during the NECA held workshops.

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Australian Business Limited State Chamber (2006) ‘Australian School-based Apprenticeships’, Survey Report. The above state level (NSW) study by the ABL State Chamber is based on a survey aiming to gauge ‗data of existing activity and perceptions of Australian school-based apprenticeships, as well as emerging issues that are likely to affect more extensive rollouts of part-time traineeships and apprenticeships‘ (pg. 3). Electrotechnology industry along with several other industries was included in the study. The sought respondents to the survey included industry association which are presently engaged with ASBAs or are experiencing skills shortages and group training organizations registered in NSW. Following are the relevant findings for the present inquiry:

‗Limited opportunities for young people in sector due to OH&S concerns, lack of jobs at Certificate II level;

‗Full time apprenticeships preferred over part-time ASBAs‘; ‗Certificate III considered entry-level requirement to industry‘; ‗Current shortages of employers willing to take on first-year full time apprentices

would be exacerbated by presence of ASBAs‘; VET in Schools course used as pre-vocational course with one GTO reporting 85% of

students continued into full time apprenticeship‘; ‗VET in Schools Certificate II course does not currently articulate however this will be

corrected with the endorsement of the new Training Package in 2006‘; and ‗20% predicted increases in ASBAs due to industry association‘s engagement with

New South Wales Trade Schools‘. The above survey results seem to parallel the views expressed by the stakeholders at NECA workshops indicating that school-based apprenticeships are a good way to attract/retain workers/apprentices in the industry and should thus be included as an integral part in the overall retention/attraction strategy to avoid/reduce negative impacts on industry workforce in the form of skills shortages. Non-traditional entrants to the industry and alternative training pathways (traditional and higher level entry points) Non-traditional entrants – Older workers There are unfortunately very few studies which deal with the issue of non-traditional entrants in electrotechnology industry. Those studies available and consulted here too are also not extensive enough to make accurate conclusions as to the degree of impact on industry workforce such entries or lack thereof are having or what strategies are favored or successful in attracting such entrants. One of the studies available is the: Karmel T. (2006) ‘Older Workers in Apprenticeships and Traineeships’ NCVER The relevance of this particular study lay in its findings which confirm the views of industry stakeholders at NECA held workshops, arguing for the need for a strategy to attract non-traditional entrants. This is particularly the case when it comes to older workers.

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For example:

‗Young men completely dominate traditional trade apprentices in occupation groups such as construction tradespersons, automotive tradespersons and electrical and electronic tradespersons (p. 19)‘;

The electrical and electronic tradespersons belong to the group of various industry trades who have the largest share of commencements in the under 25 years of age group (p. 20); and

The 45 years and above age group in the electrotechnology industry comprises only 0.6% of workforce (Appendix 5; p. 44).

These results indicate that much more ought to be done in terms of strategy development in order to attract older workers as entrants to the electrotechnology industry.

Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER The above study confirms the appropriateness of creating a strategy to attract non-traditional entrants to industry via higher level entry points. The popularity of such courses is evident from following findings:

In 2004, majority of enrolments were at the Certificate III level, but nevertheless a substantial number of enrolments was also apparent in higher level VET qualifications (e.g. advanced diploma) (p. 51); and

‗Nearly ten times the proportion of VET commencements in UTE qualifications were at the advanced diploma level at 25.9% compared with average VET commencements at only 2.7%‘ (p.51).

Popularity of the higher level qualifications is apparent and is a useful knowledge for a creation of a strategy to attract non-traditional enrolments, even though the statistics collected in the study do not only refer to apprentices and trainee commencements, but total vocational course enrolments. Foster et al (2007) ‘Higher-level vocational education and training qualifications: their importance in today’s training market – Research Report and Support document’, NECA/NCVER The above study relies on data collected from electrotechnology industry:

employers – face to face interviews; training package developers – telephone interviews; and students in relevant courses – focus groups.

In respect to the popularity of the higher-level vocational education this study appears to contradict the Woyzbun et al (2006) somewhat:

Employers are not to keen on the higher-level VET qualifications (Original Document, p. 10);

Work/practical experience is to be included as an improvement to higher-level qualifications (Original Document, p. 10);

Employers prefer to see progression of their workers to higher positions via a trade with the work experience being the critical element (Original Document, p. 25).

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Concluding remarks Overall, the Industry stakeholders at NECA workshops feel that the impact of marketing

and other promotional activity around the trades has led to a significant increase in apprenticeship applications over the last two years;

The EE-OZ (2005) sees the impact on industry skills need as moderate; Strategies for attraction/retention: Pre-apprenticeships workshop participants indicate

that these are a good source for apprenticeship applications and a way to screen potential applicants, but some of these courses are too institutionally based and do not always lead to good vocational outcomes.

Dumbrell and Smith (2007) have conducted a survey with pre-apprenticeships who have recommended following improvements: more hands on classes; improve quality of some of the teachers; remove communication and computing classes; reduce hours but use time better; add work placements and work visits; improve the organization of the courses; and assess more regularly.

The EE-Oz (2005) considers worker attraction as a crucial factor especially for following occupations of electricians, refrigeration and air-conditioning mechanics, electronics trades and electrical workers;

The Woyzbun et al. (2006) study report a high degree of industry retention as well as the industry being well organized and doing well in terms of skills replenishment (p. 11);

Factors influencing completions and impacting on workforce: Toner (2003) points to structural changes as a factor influencing declining apprentice

rates. Although not stated by Toner (2003) improper existing financial distribution of incentives to employ apprentices can also impact the industry workforce – more research needed in this area.

QUSITAB (2007) shows how in state and regional areas (QLD) competition with mining industry impacts completion and retention of workers, with competitors offering higher wages or ‗poaching‘ electricians.

Non-traditional entrants to the industry and alternative training pathways (traditional and higher level entry points):

Woyzbun et al (2006) study indicates to a relative popularity of the higher level qualifications. This fact can be used to create a strategy to attract non-traditional enrolments.

The Foster et al (2007) study on the other hand points to employers‘ preferences to employ workers with practical experience obtained via trade.

Industry Restructuring

Research on the issue of industry restructuring in electrotechnology industry is scarce, more so when attempting to gauge the extent it impacts on the industry workforce and associated supply and demand for skills. The only marginally relevant study found and of use for present inquiry is the: Foster et al (2007) ‘Higher-level vocational education and training qualifications: their importance in today’s training market – Support document’, NECA/NCVER. The study mentions industry restructuring as an issue which influences current and future skills requirements. More specific industry restructuring issues and their impacts on the industry include:

‗The shift in the 1990s to privatization of electricity generation bodies still affects the pool of potential applicants‘ (p. 24);

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‗Electricity generation bodies were previously publicly owned and supplied to the

industry through apprenticeship training‘ (p. 24); and ‗Ongoing development of technicians was provided through career paths on offer in

large enterprises. This investment is skill development was not sustained following restructuring and privatization in the1990‘s‘ (p. 24).

The study also mentions ‗increasing use of contractors and labor hire firms and a high proportion of self-employed‘ as a consequence of restructuring (p. 24). According to one training developer interviewed in the study, restructuring in this form produced a lack of time for employees or the self-employed for post-trade training, with the contractors who employ them only interested in Certificate III (p. 24).

Concluding Remarks There is unfortunately only one available, relevant study with the focus on industry restructuring. However, even this study provides little concrete information on the impacts restructuring is having on industry workforce and associated supply and demand for skills. Most of the changes brought about by industry restructuring and spoken of in the above study leave one open to speculate about precise impact they have on industry workforce, with the lack of time for training by employees and those self-employed as the only concrete impact on the industry workforce identified. This lack of time for training is certainly likely to contribute to skills shortages.

External Regulation and Compliance

As with most other sections covered in this report the issue of external regulation and compliance does not allow for the most thorough analysis in terms of its impacts on the industry workforce, due to inadequate number of studies with the focus in this area.

Foster et al (2007) ‘Higher-level vocational education and training qualifications: their importance in today’s training market – Support document’, NECA/NCVER. The Foster et al study unfortunately only mentions high level of regulation, particularly in OH&S and technical regulation codes as one of the factors driving change in the industry and thus influencing skill requirements now and in the future (p. 24). There is however no indication as to what type of change this has caused and whether this influence is and to what extent causing skills shortages.

Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER The Woyzbun et al study is more thorough and shows the trend toward compliance and regulation as a contributor to skills shrinkage (based on the account of an interviewed contractor) (p. 72). The study shows two relevant examples:

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‗The constant supervision of apprentices has now born a generation of tradespeople who lack a sense of confidence, intuition and ability to try possible solutions. It has created a tradesperson who lacks critical basic, traditional skills who is not prepared to try different approaches to a problem for fear they will get it wrong and cop it from the boss‘ (p.72).

‗Basic employability skills are being lost because of the drive to comply with the Office of the Chief Inspector and requiring one-to-one supervision of all apprentices—something that has commercial cost attached to it. If those costs had not needed to be expended on such close supervision, they could be spent on instilling basic employability skills such as initiative, intuition and manufacturing skills‘ (p. 72).

Contractors who took part in the study also stated that legislative and compliance changes would act as triggers inducing employers and employees to undertake training (p. 83). Concluding Remarks Existing studies show that high level of regulation is influencing skills requirements now and in the future. The studies further show how constant supervision of employees impacts on workers risk taking for creativity purposes and thus leads to skills shrinkage. Such supervision is also costly and money could better be spent on valuable training which in turn would help skills sustenance. Contractors seem to believe that legislative and compliance changes would act as triggers inducing employers and employees to undertake training. Despite the above results more thorough and extensive research in the area of external regulation and compliance is needed with the link on impacts it has on industry workforce and associated supply and demand for skills due to current scarcity of information.

Assessment and Simulated Learning Methodologies Assessment During the NECA held workshops, industry stakeholders have expressed their concern on assessment of trainees/apprentices, claiming that this is an ongoing problem for employers and that it adds to lack of confidence in the national training system and providers. Simulated Learning Industry stakeholders have also spoken about the need for additional simulated learning methodologies which supplement the practical arrangements. As with most other areas studied in this report there is unfortunately very little information on the concept of assessment and how it affects industry workforce and associated demand and supply for skills. Following studies have been found as relevant.

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Assessment EE-OZ (2006) ‘Selected Workplace Assessment Practices in New Apprenticeships’, FINAL REPORT Above study looks at electrotechnology, automotive, construction, and engineering and manufacturing industries with the following twofold aim:

The ‗study considers current assessment practices used in new Apprenticeships‘; and ‗Explores possible assessment good practice models drawn from the research within

Australia and internationally‘ (p. 5). The study makes following relevant conclusions:

‗While stakeholders are encouraged to develop and promote flexible approaches and work based assessment, there are contractual and regulatory requirements which may inhibit such approaches‘ (p. 5);

‗Assessment tools used to capture these requirements and the knowledge of stakeholders in administering and managing them are not adequate‘ (p. 5);

‗RTO staff PD is lacking in the relative and ongoing support needed to keep abreast of the changing VET systems vastly different from state to state‘ (p. 5); and

‗The need for a national VET system is widely accepted, but the current structures in place do not support the portability of systems and best practice for transient workplaces, especially within Construction, Automotive, Engineering and Electrotechnology industries (p. 5);

Some industry stakeholders thought that ‗private RTO‘s could respond flexibly and rapidly to clients needs as opposed to TAFE institutes (p. 5);

‗The communication between stakeholders was identified as not supporting the client or non-vet practitioners understanding of the process involved‘ (p. 5);

Assessment practices are overregulated and at times contradict each other. There is a need to ‗simplify and consistently regulate assessment practices across states government departments‘ (p. 6);

‗The valuable development and promotion of assessment best practice tools and process‘s are not held in high regard or not supported/recognised by all regulators‘ (p. 6).

‗The log book system was identified as a static document, that its weakness was the ongoing tracking and monitoring which was not consistent or valid in some cases‘ (p. 6);

‗The need for regulators and RTO‘s to embrace flexible systems and develop simple monitoring and funding procedures is a major requirement to provide consistency and validity to assessment‘ (p. 6);

‗Other systems which would compliment electronic profiling, supported by the assessors qualitative evidence are; electronic question banks, online learning and learning management systems are required to support flexible workplace learning and assessment‘ (p. 6);

Overall, the study concludes that it ‗has been able to demonstrate that within industries (electrotechnology included) there are aspects of good models of assessment being used and developed, but the need for consistency and validity across industries and states is required‘ (p. 8). The study proposes following recommendations to address the barriers identified in each state:

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‗The electronic profiling tool to be developed and used as a benchmarked tool to capture

current activities across industries‘ (p. 8); ‗The electronic profiling and Learning management systems be researched and the

compatibility of a joint national tool be trialed‘ (p. 8); ‗Explore and develop the use of electronic tracking and profiling systems across

industries on a national level for consistency and validity in assessment‘ (p. 8); ‗With consultation with industry re-define delivery modes and be adaptive to innovative

models of workplace delivery and assessment‘ (p. 8); ‗Provide more PD opportunities of all stakeholders to understand the user choice

contract and its delivery modes‘ (p. 9); ‗The electronic profiling model be endorsed by DEST and the development across

industries trialed, especially within regional areas‘ (p. 9); ‗The Assessment Materials Project be revisited and used as a platform to roll out

national PD sessions for all stakeholders‘ (p. 9); ‗A career profiling induction implemented before sign up to help identify applicant‘s

suitability to a particular industry‘ (p. 9); ‗Funding for regional New Apprentices is raised to a more realistic level to provide

equity‘ (p. 9); ‗Travel and accommodation subsidies are raised to realistic levels‘ (p. 9); ‗The options of shared employers be investigated and a strategy to implement and

manage this process developed‘ (p. 9); ‗ITAB‘s continue to be partially funded by the STA‘s providing an important link with

industries and practitioners‘ (p. 9); and ‗ITAB‘s/ISC‘s be given the opportunity and funding to develop and manage their industry

profiling tool‘ (p. 9).

Denton R. (2003) ‘Assessment: Assessing the key competencies in the Electronics and Information Technology Program at Torrens Valley TAFE’, NCVER The Denton R (2003) study deals directly with issues of assessment and although it does not delve into problems of assessment and impacts these have on industry workforce, it still shows that something is being done to improve existing assessment arrangements. The study shows the results of the key competencies assessment strategy created for the highly developed flexible learning environment designed to develop ‗work ready graduates for workplace (p. 1). The concept of flexible learning incorporates ‗learner-centered, self-directed, flexible learning methodologies to encourage students to take progressively more responsibility for, and control of, their learning‘ (p. 1). The idea is to allow students to manage their own learning with staff acting as facilitators and mentors providing guidance and support (p. 1).

Assessment Strategy: Key competencies - Achievements The above strategy achieved following results:

Key competencies are explicit and allow recognition and developmental improvement without separating them from the technical competencies (p. 3);

‗Students are explicitly aware of the key competencies and their competence in them, and are therefore able to confidently discuss their competence in these areas with potential employers‘ (p. 3);

‗Specified performance levels‘ (p. 3); ‗Participation in any existing recognized course activity‘ (p. 3); ‗Appropriate assessment sheets as a basis for student self-assessment‘ (p. 3);

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‗Identification by students of evidence to support their assessment‘ (p. 3); ‗Facilitator validating the self-assessment evidence‘ (p. 3); and ‗Possible inclusion of peer or industry validation‘ (p. 3).

The assessment strategy validation: Consists of two aspects:

‗student has successfully performed the key competency‘ (meeting the specified performance level criteria on the assessment sheet) (p. 3); and

‗the student is explicitly aware of the key competency processes and their competence in them‘ (p. 3).

The assessment strategy is based on following principles:

Prove and improve: ‗The initiative provides opportunities for students to ‗prove‘ and ‘improve‘ their abilities in the key competencies‘ (p. 3);

Integral performance, explicit assessment: ‗Key competencies are performed as an integral part of technical competencies (making the learning authentic), but are assessed explicitly using criteria relevant to each key competency (making the learning meaningful to the learner and highlighting the generic and transferable nature of these skills)‘ (p. 3).

Assessment as learning: ‗Assessment is used as the primary means of forcing the processes and practices of key competencies to become explicit in order that they may be systematically learned and developed‘ (p. 3)

Validated self-assessment: ‘Self-assessment empowers learners and helps them recognize and improve their generic skills while validation by a qualified assessor provides quality assurance and allows formal certification‘ (p. 3).

Developmental performance levels: ‘Performance levels are deliberately designed into the key competency assessment sheets making them developmental tools to nurture progressive understanding and development of these skills‘ (p. 3).

Simulated learning and assessment NSW U&E ITAB (2007) ‘Satisfaction report on the pilot assessment of a 2007 Industry e-learning demonstration’ NSW Utilities and Electrotechnology ITAB The above study focuses on both simulated learning and assessment. The focus is on a specific project, which is a ‗pilot mobile phone based e-learning solution for the reporting and validation of the on-the-job training and work experience undertaken by electrical apprentices (known as Profiling)‘ (p. 2). The author believes that this particular assessment tool would reduce the cost and time consumption involved in present assessment method, which is a paper based system (p. 2). While piloting the new assessment method using a group of 6 electrotechnology students and 6 supervisors who had no previous experience with the tool, the author reported following results:

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Technology was generally well received (p. 4); Time consumption: ‗one third of the pilot group found the technology more time

consuming than the paper based method‘ (p. 4); Ease of profiling: ‗one third of the pilot group found the technology will not assist

in the ease of profiling‘ (p. 4); Although in early stages this particular project appears to have been well received and according to the author has raised a lot of interest among various among various industry stakeholders (pp. 4-5). Concluding remarks As with most other sections covered in this report there is little relevant information on assessment and simulated learning and the impact on industry workforce. Relevant studies consulted in this report point to following overall conclusions which confirm the views expressed during the NECA held workshops: According to EE-OZ (2006) study:

There are indeed various problems with existing assessment arrangements;

Assessment practices are overregulated and need to be simplified. Continual regulation needs to be consistent;

Consistency and validity of assessment will require regulators and RTO‘s to be open to flexible systems and develop simple monitoring and funding procedures.

Some steps have already been taken to improve the existing assessment arrangements as shown in the Denton R (2003) and NSW U&E ITAB (2007) including: Denton R (2003)

A ‗flexible learning’ strategy allowing for greater responsibility and control of own learning and assessment by the students.

NSW U&E ITAB (2007)

The new project involving a pilot mobile phone based learning solution fro reporting and validation of on the job training and work experience (Profiling) has been well received by relevant industry stakeholders; and

The project aims to reduce the cost and time consumption associated with resent paper based assessment procedures.

The above studies are relevant to the extent that they point to some of the existing problems associated with the issues of assessment and simulated learning. However, they do not provide much information on the impacts to the industry workforce these problems are causing in particular in relation to associated supply and demand for skills. Based on the limited information from the above sources, skills shortages are a possibility if the identified assessment problems are not fixed. More thorough research in this area however, is required for a more plausible conclusion to be made.

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Training Issues

The industry stakeholders have identified various training related issues which require attention and which if unaddressed are likely to impact industry workforce. These include following:

Selective spending: industry stakeholders believe that training funds need to be utilized where they exist to reward those companies that are contributing rather than employers who do not invest in skills development;

Training in smaller companies: rules are too restrictive in smaller companies and they are ‗less prepared to take young people under their wing‘;

Mentoring schemes: mentoring schemes with appropriate government support should be introduced utilizing older workers with vast experience;

Apprenticeship length: there is a debate across the industry regarding the length of time of the apprenticeship and the need for alternative entry points at certificate II and higher;

Additional and specific training: the need for additional training for Instrumentation as a‖ skills set‖ at Certificate IV or equivalent level. There is an urgent need for workers with these skills with little or no training provided and no facilities to undertake the training in Western Australia;

Industry and public provider relationship: the need for closer co-operation between the public providers and the industry. This industry relies heavily on TAFE and the delivery and outcomes are not up to industry required standards;

Training incentives: examination should be taken by government to remove payroll tax disincentives for apprentices (Victoria) and other tax incentives should be introduced for employers, particularly small contractors which form the basis on the industry. Certificate IV courses should get incentives from Commonwealth. Additional government assistance should be provided when companies employ adult apprentices at the stipulated EBA rate;

Teaching/learning materials: there is insufficient teaching and learning materials available to industry; and

Training package: many of the employers criticized the current industry Training Package as too complex and not delivering what industry wants. Night schools should be re-introduced to ease the pressure on the workplace.

Research revealed that very few relevant studies are available which identify some of the above issues as they relate to electrotechnology industry. Following are the relevant studies:

Toner, P. (2003) Declining Apprentice Training Rates: Causes, Consequences and Solutions, Australian Expert Group in Industry Studies, University of Western Sydney, http://www.dsf.org.au/futuretradeskills/downloads/DecliningApprTR_Toner_JUL03.pdf The above study is the one of the two found which delves into problems of training incentives. As shown in the section on apprenticeships completion/attrition rates, the study criticizes some of the existing commonwealth incentives in following manner.

Financial incentives to employ apprentices The paper is critical of the commonwealth financial incentives indicating few of its shortcomings.

Incentives provided are equal and paid to employers at the commencement and on completion of apprenticeships and traineeships without consideration that some traineeships or apprenticeships such as electrical take longer to complete (Toner, 2003, p. 14).

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Distribution of incentives is not always appropriate with additional payments furnished only to employers in non-metropolitan areas (Toner, 2003, p. 14), even though in ‗NSW‘, for example, around 75% of all apprentices are located in metropolitan areas (BVET 2001: 37, cited in Toner, 2003, p. 15).

Following are possible solutions recommended, most of which also relate to electrotechnology industry:

Inadequate financial incentives to employ apprentices: iii) Changes to the structure of Commonwealth financial incentives offered to

employers of apprentices – expansion of current occupations under Innovation Incentive and inclusion of metropolitan areas by present incentive programme

iv) Introduction of training levies Declining quality of applicants:

iv) Improvement of VET in schools v) Re-introduction of large-scale government support for pre-apprenticeship

programmes vi) Improved marketing of apprenticeships

Corporatization and privatization of government activities: ii) Examine the scale and effectiveness of current policies to use government

capital works programmes and Public Private Partnerships to lift training rates Increased competition and altered production systems:

iv) Training levy on labour hire companies v) Encouraging firms to invest in product and process in innovation which in turn will

positively affect investment in vocational training vi) Improve the quality of Group Training services

Transformation of the industrial relations system: Enhancing multi-employer co-ordination of training

Although the study does not exactly focus on the same incentive issues as expounded during the workshops, it nonetheless provides valuable insights and possible solutions to shortcomings in this regard which may have an impact on industry workforce and associated supply and demand for skills. Karmel T. and Mlotkowski P. (2008) ‘Modelling the trades: An empirical analysis of trade apprenticeships in Australia’, 1967-2006, NCVER, Occasional Paper This is the second study which deals - although not to the same extent - with government initiatives. More specifically the study aims to see whether government policies have been successful in increasing the number of apprenticeships in several industries including electrotechnology industry. In terms of electrotechnology industry the authors have looked at various government initiatives such as New Apprenticeships in 1998 and accompanying incentives programs including the commencement and completion incentives for employers, Commonwealth trade learning scholarships and others (p. 17). The study concludes that:

In relation to apprenticeships numbers in the electrotechnology industry, the increase of such numbers since 2005 to a greater than predicted level can perhaps be interpreted as a success of government initiatives (p. 20).

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This perhaps shows the importance of government initiatives in both attracting and retaining of apprentices and this way ensuring there is no negative impacts from this end of the spectrum leading towards skills or labour shortages. (Steve this probably falls under the section of apprenticeships attraction/retention – I’ll let you decide if you want this bit also included above).

Foster et al. (2007) ‘Higher-Level Vocational Education and Training Qualifications: Their Importance in today’s Training Market’, Original and Support Document.

The Foster et al (2007) study partially deals with the issue of need for better training package, - although at the higher VET level - with the current not delivering what the industry wants as expressed during the workshops. This concern was expressed by a training developer interviewed for the purpose of the study: ―There are poor job outcomes from advanced diploma level courses for school leavers. They often do totally

institutionally based programs, which don‘t match marketplace of employers‘ needs because they‘re not developed in consultation with industry. Those that start at Certificate III and then go on to diplomas and advanced diplomas, they take longer to do it., three years, but are in the industry all the time so they‘re highly valued and highly skilled.

So they‘re more sought after…‖ (Training package developer) (Support Document, p. 26).

Through face-to-face interviews of electrotechnology employers, students, and training package/private course developers, following results have been obtained:

Employers are not too keen on the higher-level VET qualifications (Original Document, p. 10).

Employers would rather see their workers progress via trade to higher level positions, and prefer recruitment of such candidates who have gained their experience at workplace (Original Document, p. 25).

The study recommends:

Training package developers re-think the way they construct higher level VET qualifications in respect to the core and electives allowing for both, ‗various areas of specialization and with sufficient rigor to provide a base of knowledge and skills across the industry‘ (Original Document, p. 32).

Woyzbun et al. (2006) ‘Training and Skills in the Electrical and Communications Industry’, NECA/NCVER The Woyzbun et al (2006) study focuses on some of the training issues depicted during the NECA held workshops with following conclusions have been reached on the basis of interviews with contractors, vendors and training providers:

‗Technological change is leading to a merging of technologies in the industry, which

demands that key workers (technicians) have knowledge and skills both in electrical and data communications‘. ‗To achieve this combination of skills, the preferred option is to recruit qualified electricians, and train them in data communications‘;

‗Technological change has led to an increased demand for high-level workers capable of

planning, installing, configuring and troubleshooting installations‘. ‗As well, there is an increasing demand for workers to have IT skills for computer communication from the worksite‘;

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‗Due to the pace of technological change, traditional industry trainers such as TAFE are finding it increasingly difficult to provide up-to-date and specialised training to enable contracting employees to work with new products‘;

‗Training packages may need to be altered in concept to take greater account of merging

technologies‘;

‗Vendors have been increasingly providing training on their own products. Much of this training is non-accredited and focused specifically on the vendor‘s products‘;

‗Collaboration between vendors and TAFE was generally seen to have potential

benefits—both for vendors and TAFE‘. ‗However, if TAFE is to capitalize on its assets, particularly its national coverage, it will need to present a more unified image, both within the states and territories and nationally‘;

‗Relationships with TAFE institutions and group training companies were also used to

find skilled personnel, as was word of mouth through the industry‘. ‗Use of recruitment agencies was mainly confined to higher-level (e.g. supervisory and management) staff‘;

‗Contractors are generally happy with the training system; however, they would like to

see some changes to the apprenticeship system and training provision, including the provision of more relevant higher-level (post-trade) courses‘;

‗Main barriers to training were cost, scheduling of training and shortage of skilled workers

to cover for those undertaking training‘; and

‗Contractors would like training to support further expansion of knowledge and skills related to new technologies‘. ‗Training needs to support business growth and objectives‘.

One of the relevant issues depicted is the relevance of TAFE provided training. The study confirms the view expressed during the workshops on inadequacy of training provided by TAFE reporting that TAFE training in comparison to vendor training lacks flexibility and currency (p. 66). Concluding remarks

There are very few available studies which focus on training issues (selective spending; training in smaller companies; mentoring schemes; apprenticeships length; additional/specific training; industry and public provider relationship; training incentives; teaching/learning material; training package), identified during the NECA held workshops and which if unaddressed are likely to impact industry workforce.

Training Incentives and Selective spending: Toner (2003) study is critical of existing Commonwealth incentives and seeing

additional payments as unevenly distributed between employers in metropolitan and non-metropolitan areas.

Payments are also equally distributed between employers irrespective that electrical apprenticeships take longer to complete than some others.

Training Package: The Foster et al. (2007) study shows that training package developers and employers

are not happy with existing higher level VET qualifications. Woyzbun et al (2006) study favors altering of training package to account for merging

technologies. This applies to higher level VET course which are to be more relevant.

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Industry and public provider relationship: the need for closer co-operation between the

public providers and the industry. This industry relies heavily on TAFE and the delivery and outcomes are not up to industry required standards;

The Woyzbun et al (2006) study indicates that TAFEs are finding it difficult to provide up to date and specialized training keeping up with technological changes.

Collaboration between vendors and TAFEs is welcome for vendors and TAFEs alike. For TAFE to succeed it will need to present a more unified image, both within the states and territories and nationally;

The study also indicates that TAFE training in comparison to vendor training lacks flexibility and currency (p. 66).

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Existing and predicted areas of high occupation/skills demand in the near and medium term (PROJECTIONS).

Judging from the sources consulted in this paper, skills shortages in the electrotechnology industry are still a reality, which in turn means a current demand for skilled workers is still apparent and some studies consulted suggest, to the likelihood of the same trend in the future. It is important to note however, the views expressed by the Woyzbun study which provide ‗deeper‘ insights on the demand of skills, based on their interviews with contractors, claiming that although shortages are a reality they are becoming more regional and occupation specific; shortages are a local rather than national issue; shortages are a short term problem; and there appears to be a slowdown of shortages. Following publications have been consulted for this report:

DEEWR Occupational Reports (National and Individual States and Territories) (2006-2007);

DEEWR Migration Occupation in Demand List (MODL) (2008); National Skills Needs List (NSNL) (2008); Woyzbun K. et al. (2006) ‗Training and skills in the electrical and communications

industry‘, NCVER/NECA; EE-OZ (2008) ‗Environmental Scan‘ Version 2, Section 4, February 2008 Tan Y. and Richardson S. (2008) ‗Demographic impacts on the future supply of

vocational skills‘, NCVER Global Maintenance USG Inc (2005) ‗Skills and HR Audit – Heavy Industry Sector of the

Upper Spencer Gulf Region‘, Final Report, SA Centre for Economic Studies QUSITAB (2007?) ‗Queensland Mining Sector Growth and the Human Resource Impact

on Electrotechnology, Electricity Supply, Gas Supply and Water Industries‘ Queensland Utilities and Services Industry Training Advisory Board

DOTARS (Department of Transport and Regional Services) (2006) ‗Skill Shortages in Australia’s Regions‘, Working Paper No. 68, Bureau of Transport and Regional Economics

In terms of current and projected occupations and skills in high demand, this information is provided by the below sources with key projections available in the key findings and conclusions section.

Existing Areas of high occupation/skills demand

DEEWR research on Skills Shortages (supply and demand)

‗Skill Shortages research is undertaken by the Department of Education, Employment and Workplace Relations (DEEWR) using the Australian Standard Classification of Occupations (ASCO) to define occupations. The research focuses on professions, associate professions and trades, although a number of occupations in the management group are also included in the program‘. All information on skills shortages and supply and demand issues is obtained from following DEEWR website: http://www.workplace.gov.au/workplace/Publications/LabourMarketAnalysis/SkillShortages/

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Occupational Reports

The research conducted by DEEWR between 2006 and 2007 reveals skills shortages and points to occupations/skills areas in demand while relying on various surveys and other sources for their analysis. Present report relies on the most relevant information concerning the demand provided in the occupational reports only. For more extensive information see the DEEWR website: http://www.workplace.gov.au/workplace/Publications/LabourMarketAnalysis/SkillShortages/

In respect to electrotechnology industry, various occupations have been identified as experiencing skills shortages or being in demand with general electrician being perhaps the most important occupation for the electrotechnology industry. Consequently, information provided on demand for general electricians is more detailed, while information on demand and projections of demand of other occupations is in a summary form. For more details on each of the occupations please refer to the above website.

General Electrician

NSW

There is a shortage (demand) of licensed electricians in Sydney and Regional NSW.

Occupational demand

‗Demand indicators for electricians have been mixed over the past year‘. ‗The Construction Forecasting Council (CFC) estimates that construction activity fell in

real terms in 2006-07 as weak residential activity was only partially offset by stronger non-residential construction‘.

‗Labour Force Survey (LFS) data also show that labour demand in the electricity industry remained subdued over the same period‘.

‗Manufacturing activity, however, improved over the year, with the Australian Industry Group and Pricewaterhouse Coopers Survey of Australian Manufacturing indicating an increase in production in each of the four quarters to June 2007 following three quarters of decline‘.

‗Mining was strong, with production increasing by eight per cent in the year to May 2007. The LFS suggests that employment of electricians was flat in the year to August 2007‘.

Labour market outlook and short term projections

‗Demand for electricians is likely to strengthen over 2007-08 due to the favourable outlook for construction (which the CFC expects to grow by 16 per cent) and mining‘.

‗The Survey of Manufacturing also points to a moderate increase in manufacturing production over the next year‘.

‗Although apprenticeship completions are projected to increase further in 2007-08, it is unlikely that this will be sufficient to meet current shortages and additional requirements from demand growth‘.

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Conclusions

The report shows how other industries such as construction, manufacturing and mining play a

role in determining demand for electricians projecting that in short term, despite the expected

apprenticeship completions increase, demand will not be met with sufficient supply.

Victoria

There is a shortage (demand) of general electricians.

Occupational demand

‗Demand for electricians is determined by the level of industrial, commercial and residential construction activity, maintenance activity in the manufacturing and electricity supply industries and the general state of the economy, interest rates and population growth in Victoria‘.

‗Figures from Building Commission (Victoria) website show the value of building activity in Victoria for September 2007 at approximately $1.5 billion ($5.1 billion over the September 2007 quarter)‘.

‗The value of building work in metropolitan Melbourne was at a similar level to that

recorded for September 2006, while rural Victoria showed a 2 per cent increase in the value of building work over the year‘.

‗Anecdotal information suggests a decline in manufacturing activity in Victoria‘.

‗The DEEWR Skilled Vacancies Index for general electricians in Victoria declined by 13

per cent between 2005 and 2006‘. Labour market outlook and short term projections

In terms of projections, shortage is expected over the next six months.

Conclusions As with NSW, in Victoria, other industries‘ level of activities, population growth, interest rates and general state of economy play a role in determining population demand with projections, of shortage expected over the next six months. Queensland There is a shortage of general electricians; more so in regional Queensland. Occupational demand

‗The majority of general electricians are employed in the construction industry although employment opportunities can be found in all industry sectors‘.

‗Australian Bureau of Statistics data on the trend volume of construction work done in Queensland indicate that activity was 14.3 per cent higher over the year to June 2007 than it was the previous year‘.

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‗This increase has been generated by growth in the number of residential and large-scale infrastructure projects to support an expanding population and the flow on effects from the mineral resources boom to the manufacturing industry‘.

Labour market outlook and short term projections

‗Demand for electricians is expected to remain high in line with industry activity. In particular Queensland‘s construction sector continues to expand at a rapid rate.

‗The total value of building approvals in August 2007 was 13.1 per cent higher than the number recorded in August 2006, while the total value of building work still in the pipeline in the June Quarter was 15.1 per cent higher in 2007 than it was in 2006.

Apprenticeship numbers have grown in the last few years and this may boost supply to the trade in the future, but for now, the Queensland labour market for electricians is in statewide shortage and it is likely to remain that way at least throughout 2007-08.

Conclusions

Demand for electricians is linked to the construction sector activities and although there are

increases in such activities, with an increased number of apprenticeships the paper projects

continued shortages and thus demand for electricians for the 2007-08 period.

South Australia

There is a shortage of electricians.

Occupational demand

‗Demand for electricians is affected by activity levels in the building and construction industry and, to a lesser extent, manufacturing‘.

‗ABS data show that total South Australian building commencements (by value) increased 4.1 per cent over the four quarters to March 2007‘.

‗Building approvals rose 9.8 per cent in the June quarter, fuelled by a large amount of activity in nonresidential construction‘.

‗These data are consistent with comments from employers contacted for this report, several of whom reported strong demand conditions from the commercial construction sector, including work related to shop fit-outs, office refits and other non-residential electrical installation work‘.

‗In contrast, overall activity levels in the manufacturing sector remained relatively flat over the year to June, notwithstanding growth in niche areas such as defence manufacturing‘.

‗DEEWR‘s Skilled Vacancies Index data show solid growth in newspaper advertisements for electricians over the twelve months to July‘. ‗

‗Similarly, ABS data show a rise in employment of electricians over the four quarters to May 2007‘.

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Labour market outlook and short term projections

The number of training completions is projected to increase over the next two years‘. ‗At the same time, activity levels in the defence-related manufacturing and mining

industries will also rise as a result of major new projects‘. ‗Building approvals data suggest that construction activity will also remain buoyant over

the short-term‘. ‗The labor market for electricians is therefore expected to remain in shortage‘.

Conclusions

In South Australia activity levels in building and construction industry and to some extent

manufacturing industry affect the demand for electricians. No specific time frame has been

provided in terms of projections, except that shortage (demand) is expected to remain.

Western Australia

There is a shortage of electricians, with the most difficult positions to be filled in the metropolitan areas as well as the building industry in non-metropolitan areas. Occupational demand

‗Demand for electricians (mostly for electrical mechanics or installers) has continued to increase due to the buoyant WA economy‘.

‗The value of building work done in WA increased by an average of 21.4 per cent over the four quarters to March 2006, compared with a year earlier, while the total value of building work approved but not yet commenced for the June Quarter 2006 is 35.0 per cent higher than a year ago‘.

‗The Australian Bureau of Statistics‘ Labour Force Survey suggests that employment of electricians in WA has decreased by 2.2 per cent over the four quarters to August 2006 to an average of 11 000‘.

‗Data from the Department of Consumer and Employment Protection indicates that the number of A-Grade electrical licences issued as at end June 2006 increased by 3.9 per cent over 2005 to 17 955 (many of these would not be practising).

‗The Metals, Manufacturing and Services Industry Training Council‘s count of vacancies advertised in The West Australian newspaper in the first six months of 2006 were 4.9 per cent higher than for the similar period in 2005‘.

‗The Department of Employment and Workplace Relations‘ Skilled Vacancy Count indicated that vacancies had increased even more strongly, having increased by 22.0 per cent in January to June 2006 compared with the similar period in 2005‘.

Labour market outlook and short term projections

‗Demand for electricians from the building and resources sectors is likely to be

maintained for at least the next six months‘.

‗Although supply from apprenticeship completions is projected to more than double over

the next three years, this will not alleviate the shortage of more experienced electricians‘.

‗Shortages are likely to persist over the short term‘.

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Conclusions

The growth of the economy in WA is creating a demand for electricians with projections of

expected shortages for at least six months.

Tasmania

There is a shortage of general electricians.

Occupational demand ‗Census data suggest that in Tasmania the number of electricians declined by around

eight per cent between 1996 and 2001, to around 1400‘. Since that time however, data from the Australian Bureau of Statistics monthly Labour

Force Survey indicates that the occupation has grown in size considerably to be approximately 3200 in August 2007, which is an increase of almost 130 per cent since the 2001 Census‘.

‗At the 2001 Census, 56 per cent of electricians were employed in the construction industry, with the next largest group employed in manufacturing at 18 per cent‘.

‗Demand for electricians is therefore heavily influenced by construction activity‘. ‗The number of building approvals in Tasmania increased by 165 per cent between

January 2001 and January 2007, suggesting a significant increase in demand for electricians‘.

‗Even though building approvals have slowed in the first part of 2007, they are still significantly higher than they were prior to the increase in 2001‘.

Labour market outlook and short term projections

‗The labour market for electricians is currently in shortage, and this is likely to continue for at least the next 12 to 18 months‘.

‗Construction of the pulp mill in the north of the State is likely to place further pressure on supply‘.

Conclusions

Demand for electricians depends largely on the activity in construction industry which is

currently at a high level. The paper projects a demand for electricians for at least next 12 to 18

months.

Northern Territory

There is a shortage of general electricians, especially the maintenance electricians and

electricians in the residential housing sector.

Occupational demand

‗ABS Census data indicate that there were 668 electricians employed in the NT in 2001‘. ‗ABS labour force data puts the average number of electricians employed in the NT over

the ten years to 007 at 1000, with no extended deviation from this value over this period‘.

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‗The value (in chain volume measure terms) of both residential and non-residential building work done increased strongly from 2004 to 2006 and although has declined marginally so far in 2007, remains at levels not seen since the previous construction boom peak in 1998-99 (ABS Building Activity – 8755.0)‘.

‗The resource and construction lead economic boom in the NT has created a large increase in demand for electricians‘.

‗DEEWR‘s Skilled Vacancies Index recorded strong growth in advertised vacancies for electricians from 2002 to 2004 and has remained high since then‘.

Labour market outlook and short term projections ‗The strong demand for electricians is expected to remain next year, outpacing new

supply‘. ‗The trade is therefore expected to remain in shortage‘.

Conclusions

Economic boom with the resource and construction lead in particular have played an important role in the demand for electricians, which is likely to persist throughout the next year.

Australian Capital Territory (ACT)

There is a shortage of general electricians.

Occupational demand

‗Demand for electricians in the Australian Capital Territory (ACT) is predominantly from the construction industry, with over two-thirds of electricians employed in the ACT working in construction‘.

‗Australian Bureau of Statistics (ABS) data on value of work commenced for the ACT show construction activity remains strong with total building work commenced in the year to June 2007 eight per cent higher than for the previous year‘.

‗DEWR Skilled Vacancy Index data for the construction trades has shown a strong increase since 2005 indicating strong demand for electricians‘.

‗This increase in demand for electricians is supported by anecdotal evidence from employers‘.

Labour market outlook

‗There is no evidence to suggest that there will be any significant change in the labour market over the next six months‘.

Conclusions

Construction industry is mainly responsible for demand of electricians. The activity in the

industry continues to be strong and thus demand is expected to remain over the next six

months.

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Refrigeration and Air-conditioning Mechanic

The occupations report indicates to demand of refrigeration and air-conditioning

mechanics across the states and territories.

In NSW these shortages persist across most sectors of the industry, while in WA most

difficult positions to fill are in metropolitan areas and positions outside the resource

sector in the non-metropolitan area.

It is projected that in short term the demand for refrigeration and air-conditioning

mechanics will persist in all states and territories except Victoria where it is expected,

supply will ‗catch‘ the demand in short term.

Electrical Powerline Tradesperson

Shortages of electrical powerline tradespersons are apparent across Australia with

employers having difficulties filling job vacancies, especially Queensland and regional

areas.

It is predicted that situation (demand level) will remain the same in the next six months.

Electronic Equipment Trades

Shortages (demand) for electronic equipment trades persist across Australia, with

employers in QLD, SA and Tasmania having the most difficulty in filling job vacancies.

There is a decline of the degree of ‘speed‘ it takes to fill vacancies in this area

compared to 2005.

Hardest vacancies to be filled were in regional areas.

Projections: no change in the next six months – demand to persist.

General Communication Trades

Recruitment difficulties reported.

Shortages reported across states and territories with employers having difficulties filling

vacancies, in particular in NSW and Victoria.

‗There are adequate numbers of applicants for general communication trades, but there

is a mismatch between the specialized experience and licensing required by employers

and that held by applicants‘

‗There are also some differences in the location of jobs and suitable applicants‘.

Projections: no change in the next six months – demand to persist.

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Communications Linesperon

Recruitment difficulty reported.

‗A large portion of surveyed vacancies which were not filled have remained unfilled due

to employers requiring specialized skills‘.

Recruitment difficulty mainly due to lack of applicants with specialist skills needed by

employers and difficulties associated with locations.

Wastage has been reported as a problem especially in Queensland and Western

Australia.

Projections: recruitment difficulties expected to remain in the next six months.

Electronic Instrument Trades

No shortage reported.

No difficulties in filling vacancies.

Queensland most successful in filling vacancies.

Projections: no shortage expected in the next six months.

DEEWR Vacancy Report

The monthly DEEWR vacancy report releases the Skilled Vacancy Index (SVI) based on a

count of skilled vacancies in major metropolitan newspapers in each State and the Northern

Territory, usually on the first Saturday of each month. The data published are trend data

(2007=100). The ICT Vacancy Index is based on a weekly count of ICT vacancies advertised on

three sites: jobserve.com.au, seek.com.au and mycareer.com.au

Focusing on various occupations the Skilled Vacancy Index summary table indicates to a

decline when it comes to electrical and electronic trades.

The index stands at 49.3% in Jan 2009, with a monthly decline of – 9.7% and an annual

decline of – 52.7% out of 152 vacancies.

Since the report shows a decline in al three occupational groups (trades- down by 10%;

associate professionals – down by 8.8%; professionals – 4%) rather than electrical and

electronic trades alone, it is fair to assume that the decline is not a result of increased supply but

recent recession and decreased economic activity. The report shows that in annual terms the

SVI is 43.4% lower than in January 2008.

Source: www.workplace.gov.au/workplace/Publications/LabourMarketAnalysis/VacancyReports/

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Migration Occupation in Demand List (MODL) and the National Skills Needs List (NSNL)

MODL

The MODL list refers to information provided by DEEWR to create a list of occupations and

specializations DEEWR considers as being in short supply.

In terms of specific occupational demand in the electrotechnology industry, on the national level, the Migration Occupations in Demand List (MODL) (2008) indentifies following occupations as being in highest demand in the electrotechnology industry:

General Electrician; Electrician (Special Class); Electrical Powerline Tradesperson; Electronic Equipment Tradesperson; and Refrigeration and Air-Conditioning Mechanic.

NSNL Similar to the MODL list, the NSNL identifies trades deemed to be in short supply by DEEWR. According to the latest list update (5 May 2008) same electrotechnology industry occupations were identified as being in short supply as in MODL list:

General Electrician; Electrician (Special Class); Electrical Powerline Tradesperson; Electronic Equipment Tradesperson; and Refrigeration and Air-Conditioning Mechanic

Woyzbun K. et al. (2006) ‘Training and skills in the electrical and communications industry’, NCVER/NECA The Woyzbun et al study does not provide any projections on skills demand in short or long term, but it does speak of current skills shortages in the industry as shown below:

‗Skills shortages are becoming regional or occupation-specific‘; ‗…the Skilled Vacancy Index (SVI), an indicator of skills shortage, rose steadily for the

electrical trades between 2001 and mid-2004, since which time it has flattened. This may indicate that there has been a lessening in skills shortages in recent times;

‗Other Department of Employment and Workplace Relations (DEWR) evidence suggests that skills shortages remain in the electrotechnology industry, but these are regional or occupation-specific and cannot be generalised to the whole electrotechnology industry‘;

‗In the qualitative interviews, there was supporting evidence for a slowing-down of the skills shortages, with about a quarter of contractors interviewed not identifying any skills shortages or stating that current skills shortages were only expected to be an issue in the short-term. Reasons given were that the skills shortages were linked to the local building and construction industry in which demand was expected to slow‘;

‗Those interviewed also noted that skills shortages were a local rather than a national issue, and that geographic location and local economic factors also played a part in determining them‘;

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‗Reflective of the flattening of the SVI, employment levels in the electrical trades peaked

in 2003 and have since abated. Exits from the industry—retirements or changes to other occupations— mean that there has been, and is forecast to be, a steady level of replacement demand‘.

Source: Woyzbun K. et al. (2006) ‗Training and skills in the electrical and communications industry‘, NCVER/NECA (p. 11).

The Woyzbun et al study holds a more positive view on demand for skills, not seeing it as a major and alarming issue. One could interpret the above conclusions as pointing to current skills shortage level as not having as great an impact on industry workforce and associated supply and demand for skills as viewed by other authors.

EE-OZ (2008) ‘Environmental Scan’ Version 2, Section 4, February 2008 By relying on intelligence collected from industry members, such as companies‘ CEO‘s, regulators, trainers and apprentices as well as information collected from the ABS, NCVER, Monash University and the Australian Bureau of Agriculture and Resource Economics (ABARE), the above report makes following conclusions concerning the current areas of high occupation/skill demand:

New set of skills is required for the energy efficient technologies especially in the field of installation and technical support for such technologies (p. 7);

Need for more diagnostic rather than repair skills (p. 8); Increased need for technicians to be skilled in the areas of computers and internet-

based systems (p. 8); The paper points to occupations which are currently experiencing growth as well as those which are experiencing skills shortages, that is being in high demand, but does not provide future short or long term projections: Workforce Categories and Occupations Experiencing Growth

Electronic Appliance Service Personnel (requiring a restricted gas license) Electricians (especially domestic and commercial) Data Communication Technicians Electronic Security System Technicians Electronic Fire Protection System Technician Air-Conditioning Refrigeration Mechanics Signal Electricians

Current Skill Shortage Work Categories and Occupations

Electricians (domestic and commercial especially) Electrician plus (Electricians with specialist/advanced technical maintenance skills and

knowledge, including renewable energy) Data Communications Technicians Electronic Security System Technicians

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Tan Y. and Richardson S. (2008) ‘Demographic impacts on the future supply of vocational skills’, NCVER The above report relies on a combination of data from several sources including:

ABS Confidentialised Unit Record Files (CURF) data: Education and Training Experience, Australia (1997, 2001, cat. no. 6278.0); Survey of Education and Work, Australia (2003, cat. no. 6227.0);

ABS Labour Force, Australia, Detailed – Electronic Delivery, Quarterly (E07–Employed persons by sex, occupation, age, status in employment, cat. no. 6291.0.55.001);

Population and labour force projections (including participation rates, and unemployment ratio) for Australia from 2004 to 2051, sourced from the website of the Productivity Commission (http://www.pc.gov.au/study/ageing/finalreport/data/index.html); and

Household Income and Labour Dynamics in Australia (HILDA) survey (2004), provided by the Melbourne Institute of Applied Economic and Social Research at Melbourne University.

Long term projections The study projects that between 2004 and 2020:

Electrical and Electronics Tradespersons occupations ‗will experience a reduction in absolute numbers of trade – qualified workers‘ (p. 32); and

The role of VET qualifications as relating to electrical and electronics tradespersons will not increase‘ (p. 32).

This reduction in numbers of workers and decreased role of trades will likely lead to skills shortages and an increase in the demand of qualified electrical and electronics workers. Karmel T. and Ong K. (2007) ‘Will we run out of young men? Implications of the ageing of the population for the trades in Australia’ NCVER Steve this paper deals with projections, but it has a very complex and technical model for determination of supply and demand projection levels, so I’ll let you see if you can use it. It is mainly concerned with ageing and its impact on supply and demand. It has been included in the ageing section of this report. See the link below. http://www.ncver.edu.au/publications/1935.html State and Regional Reports on Projections During the time of research several reports with the focus on regional skills shortages/occupational demand have been available, results of which are presented here. Global Maintenance USG Inc (2005) ‘Skills and HR Audit – Heavy Industry Sector of the Upper Spencer Gulf Region’, Final Report, SA Centre for Economic Studies South Australia This particular report aims to gauge employers‘ skills demand and education and training demand in the 2006 - 2010 period. The method includes:

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‗Documenting of existing employment and skills in the cluster of companies belonging to

the membership of the Global Maintenance Upper Spencer Gulf (GMUSG) - Tier 2 companies‘;

‗The larger employers in the region and their existing workforce -Tier 1 companies‘; ‗Information on labour supply firms - Tier 3 companies; and ‗Group training organisations‘.

Specifically on the issue of demand the report contains ‗an estimation model of labour demand providing estimates of growth in the demand for labour for Tier 1 and Tier 2 companies and for the USG region out to 2010‘ (p.2). ‗The model considers the impact of economic growth which is partly the result of population growth and productivity growth, retirement rates based on the age profile of the workforce and turnover and wastage from the relevant industry sectors‘ (p. 2). Through usage of data collected from interviews and surveys with the GMSUG companies, large companies and labour hire companies on current and future skill shortages (demand) in the USG region, the report concludes that following occupations are either in very high, high, or moderate demand now and in next five years (by 2010): Now - 2005

Very high: Electrical Fitter; Instrument Technician; High: Electricians; Moderate: Electronic Technicians.

Next five years (by 2010)

Very high: Electrical Fitters, Electrician; Instrument technicians; and Moderate: Electronic Technicians.

QUSITAB (2007?) ‘Queensland Mining Sector Growth and the Human Resource Impact on Electrotechnology, Electricity Supply, Gas Supply and Water Industries’ Queensland Utilities and Services Industry Training Advisory Board The above study has already been used in the section on workers and apprentices‘ attraction/retention showing the difficulties associated and reasons behind. In respect to current state of skills shortages or demand for skills, the study based on the views of the key electrotechnology stakeholders revealed following results:

As already mentioned in the section on apprentices and workers attraction/retention the study reports that many stakeholders see the mining industry as a cause of inadequate recruitment of skilled labor (p. 13);

Other reasons include expansions in building, construction and manufacturing industries in Queensland (p. 13).

Projections In terms of future demand projections the paper does not provide a time frame but generally concludes that skill shortages are likely to persist as shown below:

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Electricians

‗Demand for electricians from the residential building industry in QLD is expected to remain high and will be sustained in part by domestic renovation and repair work‘ (p. 13);

‗Demand for electricians arising from new construction and maintenance work in the commercial and industrial sectors, including shop and office refits, also remains high due to the State‘s buoyant economic conditions‘ (p. 13);

‗The strong investment in the mining and minerals processing industries over the last few years has increased demand for electrical trades in building and maintaining new production and transport infrastructure‘ (p. 13).

The study also reports following occupations as being in shortage:

Instrumentation Tradesperson; Refrigeration and Air-Conditioning Tradespersons; Communication and Electronics Tradesperson; Lift Mechanics (over the next few years); Electrical Lineworkers and Cable Jointers;

DOTARS (Department of Transport and Regional Services) (2006) ‘Skill Shortages in Australia’s Regions’, Working Paper No. 68, Bureau of Transport and Regional Economics The aim of the DOTARS study was to provide ‗a summary of the literature regarding skill shortages, particularly from a location focus‘ (p. 2). The report covers various regions; unfortunately the only region of relevance for this report has been the NSW Broken Hill region. : NSW: Broken Hill Based on the information from the 2005 Outback NSW Area Consultative Committee (OACC) which focused on 275 businesses and their perception of skills shortages, the results show that in regards to trades skills shortages, qualified Electricians together with qualified Fitters/Boilermakers and Mechanics and Panel Beaters/Spray Painters have been cited as those occupations where skills shortages are most apparent (p. 20). The study unfortunately does not provide any future projections on the state of skills shortages. Department for Victorian Communities (2006) ‘Regional Skills Shortage Survey Victoria’, Summary The above survey is a product of co-operation of Victorian Government, DEEWR and local councils in regional Victoria with the aim to achieve following objectives:

‗Provide information on the nature and extent of recruitment difficulties at a regional level‘ (p. 3);

‗Identify skills in demand and labour supply issues‘ (p. 3); ‗Identify occupations that employers may be experiencing difficulty filling‘ (p. 3); and ‗Provide consistent and reliable data‘ (p. 3).

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A survey involving 3,695 employers was conducted across following 11 regions:

Mildura and region Wimmera Grampians Bendigo and regions Wodonga and region (excluding Albury) Geelong and Colac region Goulburn Murray North East Swan Hill and region Warrnambool district Gippsland Albury

Overall, the study shows that in terms of recruitment difficulty Electricians vacancies are among the most difficult occupations to fill especially in following regions:

Bendigo and region Geelong and Colac region Gippsland North East Swan Hill and region Wodonga and region

The study unfortunately does not provide any projections of skill demand relating specifically to electrotechnology industry.