How can apprenticeship systems adapt to the changing nature of work?

Professor Erica Smith

Co-Chair INAP: International Network on Innovative Apprenticeship

2018 WFCP Congress 8-10 October, Melbourne

What does an apprenticeship mean to you?

What do apprenticeships mean to ordinary people?(and young people’s parents)?

• Learning from an experienced worker;

• Enculturation into an occupation;

• A passage into adulthood;

• A ‘ticket’ for earning a living throughout life.

What does an apprenticeship mean to us at this event?A policy framework which may include some or all of these features:

• A lengthy period of learning e.g. 3 years;

• An employment contract;

• A combination of on and off the job (i.e. college-based) learning; theoretical and practical learning;

• A qualification gained through college, at sub-degree level;

• Restricted to designated occupations;

• Overseen by governments.

Recent comparative studies show great differences among countries: Chankseliani, Keep & Wilde (2017); Fazio, Fernández-Coto & Ripani (2016); and Smith & Brennan Kemmis (2013)

Societal expectations

Parents: Get children into a secure job.

Trade unions: Improve working conditions through apprenticeships

Countries: Solve youth unemployment

Countries: Address youth disengagement

Apprentices

Help women and workers in the informal economy

Economic expectations

Companies: Improve productivity and profits

Countries: International Competitiveness

Companies: Develop future managers

Companies: A well trained workforce

Apprentices

BUT…

What will apprenticeship look like in the future?

External opportunities and challenges addressed in this paper:1. Innovation and ‘Industry 4.0’;

2. Structural adjustment to economies including ‘leapfrogging’ in developing countries;

3. Globalisation of companies;

4. Global labour movements – voluntary and involuntary;

5. Gig economy.

Industry 4.0

• ‘Includes improved automation, machine-to-machine and human-to-machine communication, artificial intelligence, continued technological improvements and digitalisation in manufacturing’. (Australian government definition)

• First three industrial revolutions: the steam engine, the age of science and mass production, and the rise of digital technology.

• Examples in common usage: 3D printing; drones; remote operation of heavy machinery; robots in manufacturing.

• Increased pace of change.

Effects of Industry 4.0 on jobs

Will it be like this? ‘Luddites’ in England Or this…

• Automation can enhance most occupations and introduce new ones (Soo Bong Uh, 2016).

Effects of Industry 4.0 on VET and apprenticeships• German research (e.g. Sui-Ping Yuen, 2017, Dreher 2017) has been

examining the ways in which human knowledge can be transferred to robots in certain tasks and the implications for VET for those workers who will program the automation, and for VET teacher-training.

• There may be a need for a higher level of applicant for apprenticeships to learn rapidly evolving jobs (Loveder, 2017).

• In a survey of apprenticeships in the G20 countries which I analysed in 2018, 90% of governments had higher apprenticeships in place or planned. Italy had a specific Industry 4.0 strategy for apprenticeships.

‘Bottom up’ adaptation to ‘industry 4.0’:Gason engineering, Western Victoria

Structural adjustment

• As economies change, industry structure alters, generally from primary industry to manufacturing to services (Triplett and Bosworth 2004); .

• Some developing countries are ‘leapfrogging’ over manufacturing to service industries.

• How do we adapt apprenticeship systems to account for new industries and new occupations? What is the ‘apprenticeability’ of occupations? (Lerman, Eyster and Chambers, 2009). In UK many occupations have become ‘apprenticzied’ (Marsh, 2016).

Structural adjustment to economies

Largest industries

• Health and community care;

• Retail;

• Construction.

Structural adjustment to economies

Priority areas for apprenticeships

• Tourism;

• Manufacturing;

• Banking;

• Fisheries (new to apprenticeships);

• Retail.

Globalisation

• Apprenticeships are considered to be locally-rooted and culturally specific (Deissinger, Smith & Pickersgill, 2006) – yet companies are routinely worldwide.

• Pilz and Li (2014) find two different models for multi-national companies:

o ‘Divergence’ where companies adopt local apprenticeship systems;

o ‘Convergence’ where companies implement the [German] system as far as possible throughout all countries of operation

Globalisation of companies: MM2100 Industrial Park High School, near Jakarta

Labour movements

• Between countries (but also within countries);

• Voluntary migration or temporary movement – e.g. guest workers;

• Involuntary migration – refugees.

• Apprentice issues:

o Is there a recognition system for already-trained workers coming from elsewhere.

oAre migrants and refugees allowed to undertake apprenticeships in the new country?

oWhat about countries which are net exporters of labour? – for example India and the Philippines (Pernia, 2011) - their systems need to include training people through apprenticeships to work in other countries.

‘Receiving’ countries: Examples‘Receiving’ countries (Responses to G20 survey)

• Germany: “Welcome mentors” programme pursues the economic policy goal of supporting SMEs in securing a supply of skilled workers. At the same time, welcome mentors support the wider social task of integrating refugees into the German employment market.”

• ‘Integration law’: apprentices on temporary residence permits can’t be deported during, or for two years after, their term.

• Mexico: a special scheme for ‘Dreamers’ – ‘un-documented’ young people returning from USA.

‘Gig economy’ and apprenticeships: The problem of the missing employer

‘Gig’ economy

• ? A new informalisation of the economy in developed countries- ‘the worker as business’;

• New forms of employment put employers outside the scope of much regulation (Rubery et al 2018) and they adversely affect training;

• All non-standard forms of employment are likely to have a disproportionate effect upon young people (ILO, 2016);

• The importance and eventual impact of the ‘gig economy’ is contested; But… 12% of Swedish workers are reported as working in the gig economy and 5 million UK workers are involved in some form of digital-platform based working;

• (How) can apprenticeship exist without a ‘real’ employer?

Existing flexibilities in apprenticeships that could adapt to the changing nature of work

Imperative Country examples

Industry 4.0 In Australia, apprenticeships include formal qualifications, and advanced manufacturing is currently a priority for the qualifications process.

Globalisation In Indonesia, companies are currently allowed to use their own internal competencies. English apprentice frameworks can be registered for a single company.

Structural adjustment

India and Germany (326 occupations in apprenticeships) have systems for adding new occupations. The ‘trailblazer’ system in the UK enables new apprenticeships to be created quickly.

Labour movements

Australia has Trades Recognition Australia, to assist people moving into the country.

‘Gig economy’ Could evolve from systems for incorporating informal apprenticeships (e.g. India, Argentina). Or from Group Training Organisations (Australia) which are ‘labour hire’ companies specialising in apprentices and apprentice support for nervous employers.

But should apprenticeships adapt?• So, apprenticeship systems have the potential to adapt to all the

changes discussed. However, should apprenticeship systems incorporate future work?

• Do countries really wish to rebalance their systems, or ultimately should some training issues be resolved outside apprenticeships?

• Would too much flexibility undermine important features of systems, or affect workers’ rights?

Maintaining the balance of apprenticeship

Example of youth employment: If apprenticeship is changed to focus primarily on training for innovation, would the other goals be compromised?

Youthemployment

National skilldevelopment

Training forinnovation

Inclusivity

Enterprise skillformation

Emphasis on youth employment Emphasis on skill development for companies

Basis for this paper

• Participation in ILO-organised events in Seoul and Korea 2016, 2017.

• Participation in policy workshops and forums at national and State level in Australia 2017-18.

My recent research:

2018, Smith, E. Australian component of ‘Tools for quality apprenticeships’, Skills that Work project, International Labour Organization, Geneva office.

2017-18, Smith, E. Tuck, J. & Chatani, K. ILO survey report of national initiatives to promote quality apprenticeships in G20 countries. International Labour Organization, Geneva office.

2017, Smith, E. Research, Review and Development of a Revised Model of Quality Apprenticeship for Indonesia. International Labour Organization, Jakarta office.

2012-13, Smith, E., Brennan Kemmis, R. and a team of international researchers. Possible futures for the Indian apprenticeship system. International Labour Organisation and World Bank, New Delhi offices.

2009-10, Smith, E. et al, Understanding the psychological contract in apprenticeships/traineeships to improve retention, NCVER, Australia

The INAP network: International Network on Innovative Apprenticeship

• Established 2006 to examine best practice in apprenticeships internationally;

• Aimed at use of research evidence in apprenticeship policy;

• Our 8th conference is in Konstanz in March 21st-22nd 2019 (TBC).

http://www.inap.uni-bremen.de/

My email: e.smith@federation.edu.au