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    Who is training the young?
    John Fraser and Group Training Schemes

    from The Jobs Letter No.78 / 11 May 1998

  • WHO IS TRAINING THE YOUNG ?
    Who is training the young? How are young people able to get a leg up on the skills ladder in todays' economy? What is happening to industry-based training for young people? With youth unemployment again a major issue, these are the questions being asked by John Fraser, chairman of Youthskills NZ and a convener of the Methodist Employment Generation Fund.

    His concern: with the massive restructuring, cost-cutting and down-sizing in NZ businesses, and the creation of SOEs from government departments over the last 15 years, the trade training that was offered young people by these large concerns is now only a fraction of what is needed. It was big business and government departments which used to take on the young people to give them work experience and a work ethic. They now do not appear to be offering young people a start with a defined training programme.

    And with the increasing foreign ownership of many of NZ's larger businesses, and the government getting out of the "business of business", the question needs to be asked: who has the commitment to invest long-term in the skills of young New Zealanders?

  • Fraser notes that State-Owned Enterprises (SOEs) and ex-government departments do not figure in training programmes these days, with the exception of Trans Rail. He says that large employers in major industries throughout the country are multi-skilling their existing workforce and not engaging new young staff. This means that average age for employees is increasing, in some notable industries the average age in the mid-40s.

    One of the other features of the recent restructuring process has been the contracting out of specialised skills or maintenance tasks to small self-employed contractors (often ex-employees), or to bring in already trained people from overseas. Fraser says the contractors are just not big enough to be able to take on the training component for the next generation of workers -- a component that the larger firms have provided in the past. And he believes that it is not in our national interest to depend on imported overseas labour.

    His challenge: What is the current generation of employers at large doing to allow the new young generation to get their initial start up the ladder of skills and experience? We hear a lot about the lack of skills amongst the unemployed but who is taking the responsibility of giving these young people the opportunities to get ahead? And what is the government's involvement in this challenge?

  • Fraser says that the main assumption being made is that people can go to the Polytechs and get trained. But this infrastructure has been under serious assault in the last few years with the creation of contestable training in the form of Private Training providers.

    Fraser: "The reason private providers are establishing is the claim that the polytechs are not responding with the right training and information required. We should straighten this out, and not put a lot of energy into providing alternatives. The polytechs need to get on board and become customer-orientated, and not create a training vacuum themselves"

    Fraser believes that Polytechs by themselves are not enough: "They are no substitute for the on-the-job learning and practical experience that has to be provided within the real world of industry..."

  • Amidst his criticisms on the state of youth training, John Fraser does see some light ahead -- if industry groups are prepared to tackle training in new ways. One of his answers: create Group Training Schemes for specific industry skills (see below)

    Because today's business is now spread across a whole range of smaller separate contractors who don't have the capacity to take on individual apprenticeships, the trades need to organise themselves to spread apprenticeship training opportunities across several employers.

    Fraser says the good news is that the Group Training concept already has many successful examples operating in the building, electrical, plumbing and engineering fields. They were based on similar training schemes in Australia, and designed to combat barriers to apprenticeship training which meant many smaller employers were not taking on apprenticeships. Fraser: "We need to extend these initiatives to have a co-ordinated approach in all the traditional apprenticeable trade training areas "

    Source _Vivian Hutchinson interviews with John Fraser 6 and 9 April 1998

  • GROUP APPRENTICESHIPS AND TRAINING SCHEMES
    In a Group Training Scheme, the Industry Training Organisation (ITO), employers and unions co-operate to establish a stand-alone agency which employs and trains apprentices and then leases these apprentices out to employers for a small premium. This system enables smaller employers to take on apprentices without having to make a long-term commitment to a specific individual being trained.

    The scheme has the potential to:

  • increase the number of apprentices and trainees available in a given region or industry
  • widen the scope of training available to those apprentices and trainees
  • provide an alternative to traditional apprenticeship systems for employers who would like to contribute to employing and training young people
  • Hundreds of apprentices in NZ are currently being trained and leased out in this way. Fluctuating work demands often prevent businesses and tradespeople from being able to guarantee a longer-term indenture commitment to a young person. But employers say they like the Group Training scheme because it enables them to choose when, how long and how often an apprentice is placed in their company.

    How does it work? The Group Training agency is the legal employer of the apprentices. The agency places employees with a company for a mutually agreed period of time, and then relocates them with another participating company.

    The company pays the agency for the time the apprentice works. This charge usually carries a premium for other costs such as holiday pay, sick leave, ACC levies, polytech fees, and tools and clothing expenses. The agency often offers employees counseling support and liaison with government authorities.

    GROUP TRAINING CONTACTS:

    Auckland Engineering Apprenticeship Trust
    Ivan Fisk
    phone 09-636-6601

    Mike Latter,
    Napier Engineering & Contracting Co.

    P.O. Box 2004, Napier

    Mark Heimgartner
    Gartner- Superlux Ltd
    phone 09-636-6092

    Electrical Training Co. Auckland
    Peter Rushworth
    phone 09-527-6165
    fax 09-527-6166

    Building and Construction Training Orginisation
    Steve Robinson
    phone 09-378-9049

    Auckland Master Plumbers
    phone 09-579-5660
    fax 09-525-0169


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