Construction Industry - BCITF this plan to identify the current environment and challenges facing the Industry. ... to support a sustainable Construction ... Civil Construction ...

July 2014 Construction Training Council

www.bcitf.org The Construction Training Council acknowledges and appreciates the contributions made to the development of the Industry Workforce Development Plan by the Building and Construction Industry Training Board, members of the Construction Industry Strategic Group, Construction Industry Working Group and key stakeholders within the Construction Industry.

Construction Industry Workforce Development Plan

2014

Construction Training Council

July 2014

http://www.bcitf.org/

Workforce Development Plan 2014 – Construction Industry

July 2014 Construction Training Council www.bcitf.org

The Construction Training Council acknowledges and appreciates the contributions made to the development of the Industry Workforce Development Plan by the Building and Construction Industry Training Board, members of the Construction Industry Strategic Group, Construction Industry Working Group and key stakeholders within the Construction Industry.

http://www.bcitf.org/


Foreword

On behalf of the Building and Construction Industry Training Board, I have pleasure in presenting the

updated Construction Industry Workforce Development Plan for 2013-14.

This plan provides an overview of the major sectors and occupations of the Building and Construction

Industry in Western Australia. The plan was developed using a wide range of research processes,

Industry stakeholder input and respected sources of information.

The Building and Construction Industry Training Board, in its role as a supporter of apprenticeships

and skills development in the Western Australian Construction Industry and as a Training Council,

provides this plan to identify the current environment and challenges facing the Industry. Strategies

have been developed in consultation with Industry and its stakeholders to respond to the issues

identified.

This Industry has a current workforce of 137,510 which represents approximately 10.6% (Annualised)

of the State workforce.

With 40% of all Western Australia’s apprentices and over 19% of combined apprentices and trainees,

the Construction Industry workforce has grown by over 73% in the past 12 years and over 10% in the

last 7 years.

The Construction Industry is a major supporter of the apprenticeship system and through its training

levy and subsidies has seen more than a 351% growth in apprentices in training from 1992 to 2014.

The strategies contained within the plan reflect the broad views of Industry stakeholders and are

aimed at addressing workforce issues to support a sustainable Construction workforce.

Through 2014-15, the Board will continue to maintain communication networks with industry

organisations, employers, Department of Training and Workforce Development, State Government

agencies and registered training providers to facilitate support for workforce development.

Finally, I would like to thank all stakeholders for their support and input into this Industry Workforce

Development Plan. We look forward to working with you in the coming year.

_____________________ Mr Ian Hill Chairman BCIT Board


Table of Contents

1. Executive Summary .............................................................................................................................. 1

2. Key Recommendations ......................................................................................................................... 3

3. Environmental Scan .............................................................................................................................. 5

3.1 Methodology ................................................................................................................................. 5

3.2. Industry Profile.............................................................................................................................. 6

3.2.1 Civil Construction.................................................................................................................. 7

3.3 Industry Trends ............................................................................................................................. 8

3.4 Growth Trend of the Industry – 12 Year Period ............................................................................ 9

3.5 Labour and Skill Demand ............................................................................................................ 10

3.6 Forecasting .................................................................................................................................. 11

3.6.1 Housing Industry Association ............................................................................................. 11

3.6.2 Master Builders Association ............................................................................................... 11

3.6.3 BIS Shrapnel ........................................................................................................................ 11

3.6.4 Summary of Forecasting ..................................................................................................... 12

3.6.5 Civil Construction - Occupations ........................................................................................ 12

3.7 Construction Workforce Structure .................................................................................................. 13

3.8. Industry Sectors - Sector Characteristics ........................................................................................ 14

3.8.1. Civil Construction ..................................................................................................................... 14

3.9. Regional Impact ............................................................................................................................... 14

3.9.1 Civil Construction - Regional ..................................................................................................... 16

3.10. Level of Education in the Workforce ........................................................................................... 16

4. Quality and Relevance of Secondary Education ................................................................................. 17

5. Gender/Age Participation ................................................................................................................... 19

5.1. Impact of Age and Chronic Conditions on Longevity (age/time) in the Industry. ........................... 19

5.2. Number of Workers and Age Distribution by Trade/Occupation .................................................. 21

5.3. Civil Construction - Demographics .................................................................................................. 21

6. Apprenticeships and Traineeships within the Construction Industry ................................................ 22

6.1 Apprentice In Training…… ........................................................................................................... 23

6.2 Apprentice Commencements .................................................................................................... 24

6.3 Training Rates ............................................................................................................................. 25

6.4 Under-Represented Groups Participation ................................................................................. 28

6.5 Traineeships in the Industry ....................................................................................................... 29

6.6 Civil Construction ........................................................................................................................ 30

7. Employment and Training Issues ........................................................................................................ 30

7.1 Employment Issues .................................................................................................................... 30

7.3 New and Emerging Skills ............................................................................................................ 31

7.4 Workforce Development Opportunities .................................................................................... 32

8. Industry Specific Issues and Key Strategies ........................................................................................ 34

8.1 Apprenticeships .......................................................................................................................... 34

8.2 VET in Schools ............................................................................................................................. 34

8.3 Indigenous and Disadvantaged Youth in Unemployment .......................................................... 34

8.4 Resources Industry ..................................................................................................................... 35

8.5 Migration .................................................................................................................................... 35


Charts

Chart 1 Construction Work Done in $000s 8

Chart 2 State Final Demand in $M’s 8

Chart 3 Employed in WA Construction Industry (000s) 9

Chart 4 Employed in Construction as a Percentage of ALL WA Industry 9

Chart 5 Western Australian Forecasts 10

Chart 6 Distribution of Occupations compared to all other Western Australian Industries

13

Chart 7 Level of Education by Sector (ANZSIC93) 17

Chart 8 Age Distribution within the Construction Workforce – ALL TRADES 19

Chart 9 Age Distribution across a number of Construction trades 20

Chart 10 Civil Construction Workforce Age Profile 22

Chart 11 Construction Apprentices ‘In Training’ (including Electricians) 23

Chart 12 Construction Apprentices ‘Commencements’

(Year to end March 2014)

24

Chart 13 Commencements by Comparison to Previous 12 months 24

Chart 14 Training Rate – Current (Ratio of Apprentices to Tradespeople) 25

Chart 15 Apprentices ‘In Training’ by Major Industries 26

Chart 16 Growth in Apprentices ‘In Training’ over the last 8 years 26

Chart 17 Regional Apprentices Training Provision 27

Tables

Table 1 National Employment Growth 10

Table 2 Western Australian Short and Long-Term Forecasts 10

Table 3 Dwelling Commencements (Forecast) 11

Table 4 Distribution of Occupations compared to all other WA Industries 13

Table 5 ASCO Codes 14

Table 6 Overall Level of Education in Construction Workforce 16

Table 7 Training Rates 25

Table 8 Apprentices ‘In Training’ – Regional (Non-Metropolitan) 27

Table 9 Trainees ‘In Training’ 29

Unless otherwise stated, all apprenticeship and overall training data was current as at end of March 2014. All interpretations and conclusions drawn from this data are those of the Construction Training Council.

Page 1

1. Executive Summary

This Workforce Development Plan is, by its nature and content, a comprehensive document with detailed information on the Construction Industry, its workforce and employment and training issues. The Executive Summary sets out the critical issues which industry stakeholders wish to see addressed.

The profile of the Construction Industry demonstrates that it is a significant contributor to the State’s economy and productivity. The Industry achieves the following key results:

Contributes 11.7% to the Gross State Product

Employs 10.58% of the State workforce (Annualised)

Employs 40% of Western Australia’s apprentices

Employs 19% of all combined apprentices/trainees

Employs 81% of the Construction workforce in the metropolitan area

Females represent 13% of the Industry’s workforce

Employs over 87% of the Industry’s workforce in full-time employment

Constructs built environments and infrastructure critical to the State’s economy, industry and the

community

Identifying the Issues

During 2013-2014, the industry has experienced significant growth in the Housing sector with the

number of housing approvals in April 2014 reaching their highest annualised average since 20041.

The consensus of opinion appears to be the market moving to a stable period for the next 12 months

followed by a decline in activity. Therefore, it is important to plan for the future and identify the impact

of any planned major projects in both the Resources sector and traditional Construction sectors.

Although the Housing sector is at its highest level of activity on record, new home buildings are

expected to ease by 6.8% during 2014-15.2 This easing is the expected result from market dynamics

shifting as the construction phase of the mining boom tapers and population growth slows. There is a

however, perceived demand for between 4,000 - 6,000 tradespeople to replace those that have exited

during the recent downturn.

Both BIS Schrapnel (BIS) and the Housing Industry Association (HIA) are forecasting a downward

trend in dwelling commencements. The Industry historically experiences peaks and troughs in activity

and this is predicted to continue in the future with a further decline in new home commencements of

3.9% in 2015-16.

There were 26,206 dwellings commenced in the 12 months to December 2013, a 29.7% increase on

the previous year and the highest since December 2006.

Recent economic analysts have reported on the abandonment of a number of major resource projects

and this, coupled with the imminent completion of several major Engineering Construction projects,

has seen forecasts change to reflect slower economic growth, population growth and as a result

household consumption.

Even though the number of housing commencements is predicted to decrease over the next two

years, the overall level of activity will remain relatively high and require skilled labour which is, in a

number of occupations, in short supply.

Whilst employment for the Construction Industry in the State as a whole is positive and is trending

upwards, there are pockets of downturn in specific regions particularly in the Kimberley and Pilbara.

1 ABS 8731

2 HIA Media Release – Residential Construction – A Key Driver of Growth, 16 June 2014


V20141003e Page 2

The Pilbara is affected by the significant slow down in infrastructure construction for the resources

sector and this has had a flow on affect for the housing and commercial sectors in that region.

This report identifies approximately 30 occupations which are projected to be in shortage in the mid to

long-term. As economic analysts’ opinions vary widely on this subject; no attempt has been made to

quantify anticipated long-term labour shortages.

During 2006 to 2011, there was an effort to address skill shortages by reducing apprenticeship training

times. Although commencements increased, there was very limited interest in the shorter timeframe

for apprenticeships. However, the industry has retained the ability to utilise shorter timeframe

apprenticeships by having a ‘variable term’ for most trades of between 3 and 4 years.

With the retention of students to the end of Year 12, and the introduction of competency based wage

progression in 2014 there could again be renewed interest in reducing the apprenticeship term. This

would rely heavily on the uptake of VET in Schools programs and pre-apprenticeships.

It is expected that as engineering construction projects in the Mining/Resources sector are completed,

a large proportion of these skilled workers will no longer be required. However, the poaching of skilled

labour is expected to continue to service the Resources industry’s growing operational needs.

One of the key recommendations made in previous workforce development plan reports is to require

the Resources industry to pay the Building and Construction Industry Training Levy on Engineering

Construction works. This recommendation remains a key priority and was also identified in a recent

review into the operation and effectiveness of the Building and Construction Industry Training Fund3.

With a range of issues causing concerns in the Industry, it is suggested that future workforce planning

be subjected to a process of continual monitoring and adjustment based on short-term projections due

to the current volatile nature of the economy.

3 Review of the Operation and Effectiveness of the Building and Construction Industry Training Fund and Levy Collection Act 1990 – Stratton, R. June 2014


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2. Key Recommendations

Recommendation 1

Levy on the Resources Sector (Engineering Construction).

The Construction Industry, through payment of the training levy, is paying for the training of apprentices and employees who are then attracted to the Resources sector on completion of their training. Therefore, the Resources sector should contribute for engineering construction projects to the Training Fund and the cost of apprentice/employee skills training.

Strategy

Address future demand for additional labour on major resource projects and recognise the costs

incurred by the Construction Industry in training large proportions of this demand.

Implement an approval process for construction of Resource sector infrastructure projects to

include requirements for targeted employment rates of apprentices and trainees which are at least

the equivalent of the Construction Industry.

Raise the issue of payment of the training levy by the Resources Industry with the State

Government.

Encourage the Resources sector to train more apprentices and trainees, especially in trade areas

that overlap sectors and at the same training rate as the Construction Industry.

Provide skills gap training for mature-age workers returning from the Resources sector to

encourage them to seek employment in the Construction Industry.

Recommendation 2

The Low Commencement Rate of Apprentices in the Construction Industry

The Industry has identified that the impact of new Award rates for apprentices, Competency Based

Wage Progression (CBWP), retention of students to Year 12 and lack of work in the traditional sectors

of the Industry are causing a reluctance to employ apprentices. Continuity of work, cost of

employment, the imposition of Commonwealth Income Tax on subsidies and the loss of trained

workers to the Resources sector all contribute to a downturn in commitment by employers to train

apprentices.

Strategy

Address the issue of competency based wage progression to recognise that VET in School and

pre-apprenticeship competencies need to be demonstrated to the satisfaction of the employer

during employment.

Support and promote programs such as Apprentice Kick-start initiatives.

Raise the issue of Commonwealth Government income tax on subsidies that are paid to

employers of apprentices.

Provide incentives to both first and subsequent homebuyers to further stimulate the Housing

sector.

Provide higher incentives for trades that are at risk with very low commencement rates.

Introduce a ‘one-stop shop’ to reduce bureaucracy and administration for potential employers and

streamline the process of engaging apprentices.


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Recommendation 3

VET in Schools (VETiS)

There needs to be increased promotion in schools for industry support VETiS training programs. In

addition, there needs to be recognition by all industry stakeholders that VETiS is the replacement for

the decline in pre-apprenticeship numbers.

There needs to be a change in the education philosophy that advises students to strive for and follow

academic pathways (university).

Strategies

Finalise development of teaching and student resources to support the new Certificate II trade

pathway program.

Develop, market and promote new resources to schools and RTPs who have students considering

a career in construction.

Provide adequate ‘delivery’ funding to schools and RTPs to ensure the new VETiS programs in

Construction are implemented in schools and delivered by a RTP to meet demand.

Resolve and clarify roles and responsibilities for funding between the DTWD and DET.

Implement the Try-A-Trade component for Year 9 students unsure of their career choice.

Ensure teachers of Construction trades have Industry-related experience and training to the same

standard as lecturers within RTPs or utilise RTPs to deliver the training in Schools.

Mandate that only ’Industry approved’ courses are used for VETiS to avoid students completing

competencies that do not enhance employment opportunities.

Recommendation 4

Assessment Processes and Quality Issues

There is concern over the validity of current assessment processes, quality of competencies achieved by apprentices completing their indenture and RPL for existing and migrant workers.

Strategies

Make qualification assessment processes more stringent.

Implement a final independent assessment of apprentices prior to award of the trade certificate.

For RPL of existing and migrant workers, implement independent assessment against the trade

certificate, rather than the AQF qualification.

Review the opportunity for a reduction in time required for off the job training whilst maintaining the

quality requirements of the system.

Ensure RTPs consult and communicate regularly with Industry to ensure that they are delivering

the programs that industry requires in a consistent manner across all training providers.

Address inconsistencies between RTP assessments or follow Industry recommendations for

independent assessment.

Raise the issue of competency based wage progression with Industry to develop an assessment

process that will satisfy changes to the pay structure for apprentices under the Fairwork Australia

model.

Recommendation 5

Training for Regional Apprentices

There is still concern from regional employers about the need for apprentices to travel to Perth for off-the-job technical training. Strategy Mandate a requirement for 1

st Year apprentices to be trained in the region in which they work and live.


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3. Environmental Scan

3.1 Methodology

This update of the 2013-14 Workforce Development Plan was conducted during April to June 2014.

The Plan provides evidence of the current state of the Industry. An environmental scan of Industry

was also included to examine the projected skilled and non-skilled labour needs of the Industry in the

short to medium-term. The Plan provides advice on future training needs to ensure the Construction

Industry has access to a skilled workforce.

The environmental scan was compiled using a range of methodologies including:

face-to-face consultation with key Industry stakeholders;

strategic industry forum in conjunction with the Construction Training Fund;

construction Industry Strategic and Working Group meetings; and

Individual consultation with stakeholders during site visits across industry sectors and

occupations.

data utilised from the Construction Industry Snapshot published by the Construction Training

Fund/Council.

The Construction Training Council consulted its Strategic and Industry Working Group membership

plus gathered information during 2013-14 from stakeholders on the Training Council’s database.

Additionally, a number of significant national research reports and surveys were examined to also

provide valuable Industry information.

Stakeholders involved in the development of this Plan included;

ABN Group

Building Commission

Department of Housing

Contract Carpenter’s Association

Housing Industry Association (HIA);

Master Builders Association (MBA);

Master Plumbers, Gasfitters and Painters Associations (MPA);

Civil Contractors Federation (CCF);

CFMEU, AMWU, CEPU;

Major Builders/Contractors;

Association of Wall and Ceiling Industries of WA;

Air Conditioning and Mechanical Contractors Association;

Tiling Association;

Skills DMC;

Australian Brick and Blocklaying Training Foundation (ABBTF);

Group Training Organisations; and

Enterprise/Registered Training Providers.

During consultations with stakeholders there were a number of common issues raised and these form

the basis of the key and specific recommendations within this report. Over 340 issues were identified

and compiled into common areas including:

Apprenticeships and Traineeships;

Apprenticeship Award Rates (including Competency Based Wage Progression)

Attrition Rate for Apprenticeships

Indigenous and Disadvantaged Youth in Unemployment;

Migration;

Taxation and Incentives;

Sub-Contractor and Contract Arrangements;

Marketing of the Industry;

VETiS;

Mature-aged Workers and the Skills Shortage;

Resources Sector Issues;

Pre-Apprenticeships in Economic Downturn;


V20141003e Page 6

Current and Future Economic Issues;

Registered Training Providers;

New Technology, Building Methods and Equipment; and

Trade Shortages.

Economic and workforce data provided by the Australian Bureau of Statistics, Australian Construction

Industry Forum, Construction Forecasting Council, Housing Industry Forecasting Group, BIS, HIA,

MBA and the Chamber of Commerce and Industry was monitored for the last five years and is widely

referred to in this report. In addition, the Training Council has for the last five years, provided all key

stakeholders with quarterly or bi monthly reports on the state of the Construction Industry. Therefore,

feedback from stakeholders contributing to this report has been from an informed perspective.

3.2. Industry Profile

Overview of the Construction Industry

The Construction Industry is a key driver of economic prosperity in WA, contributing approximately

11.7% of the Gross State Product and is critical to the physical, social and economic well-being of the

State’s people through the construction of health, education and transport infrastructure, housing and

commercial buildings.

From a Gross Value Added4 perspective, the Industry has increased by approximately $14.7

billion or 88% over the five years to June 2013.

The Construction Industry is one of the largest employers in the State with annual average employment of 141,450 people or 10.57% of the State’s workforce.

The Industry is diverse with three distinct sectors; housing, commercial and civil engineering operations. A significant number of electrical mechanics and support staff form part of the installation trade services sector of the Industry.

There are over 100 different occupations in the Industry. These include management, professional, para-professional, administrative, trades, technical and semi-skilled workers. The largest number of workers, approximately 63,100 or 49%, are trades people and technicians

5. Within this figure there are 43,875 construction industry tradespeople,

excluding electricians (19,225).

Most employees are initially recruited through the apprenticeship system and move into para-professional and other occupations as part of career progression. A significant proportion of workers are self-employed contractors operating as small businesses under a sub-contract arrangement. The Industry has grown dramatically in recent years in parallel to the growth in activity in the Resources Industry.

In the last five years the Industry’s workforce has increased by approximately 16,370 or 13.1%

6 compared to a 13.3% increase in the State workforce. Approximately 81% of the

workforce is located in the metropolitan area, 13% of the workforce is female and 87% of the workforce is in full-time employment.

The Construction Industry experienced severe skill shortages during the recent resources boom. However, it still maintained work output by managing the shortfall through extended project time-lines and an increase in the average number of hours worked by employees.

The Construction Industry relies heavily on recruitment of apprentices and compared to other industries has been a strong trainer. The Construction Industry employs 40% of all Western Australia’s apprentices (including electricians) and approximately 19% of combined apprentices and trainees.

In recent years the Industry has achieved a training rate (number of apprentices as a

percentage of tradespeople) of approximately 13%. The training rate peaked at just under

4 ABS 5220 - Australian National Accounts: State Accounts WA, Industry Gross Value Added, Current Prices, July 2013

5 ABS ST E08

6 ABS 6291


V20141003e Page 7

16% during 2007 and even at a reduced level compares most favourably with the average of

8.2% across all other industries.

Females make up 13% of the Industry’s workforce and are predominantly employed in

administrative roles in building companies.

Whilst a strong trainer of apprentices, the Industry has struggled to maintain its skilled

workforce needs through the recruitment of school leavers. However, this school-based

cohort is now the target of programs in schools to encourage students to consider a trade

qualification and construction as a career path. There is also concern that the ‘half cohort’ in

schools will impact on any recruitment drive when the economic situation improves.

One of the biggest problems confronting the Industry during the recent resources growth

period was attrition of workers who moved to higher paid employment in the Resources

sector. There are concerns the same situation will re-occur if the resources sector goes

through another growth cycle.

Various Industry organisations and economic analysts have made estimates of the number of

extra workers needed to sustain the Industry’s future workforce needs. However, these

estimates vary substantially and reflect the volatility of the Industry and the economy

generally.

A number of Industry and economic analysts are predicting a need for tens of thousands of

additional Construction Industry workers in the next few years, including the Australian

Construction Industry Forum, who 12 months ago were predicting no significant increase in

the Construction Industry workforce for 2013-14 to 2014-15. In the past 20 years the number

of capital works projects actually initiated represents approximately 30% of those projected

and promoted in the media.

There is a need to develop strategies to improve the long-term performance of the State’s

labour market whilst enabling short-term solutions that support the inevitable fluctuations that

occur in the economy as a result of building activity and demand for labour.

There has been a recent upturn in the Construction sector coupled with a 23.9% increase in

apprentice commencements. In the last 3 months up to May 2014, the Resources sector has

seen a significant decline in workers (15,190) whilst the Construction sector, in the same

timeframe as seen an increase in workers (3,100). With the construction phase of the mining

boom ending, there is a strong likelihood that construction workers who have been working

on mining construction projects will return to the wider construction Industry.

Industry has identified that the profile of Building and Construction and Civil Construction

needs to be improved by continued marketing. This should include the opportunities and

career paths in the Industry, as well as the lifestyle benefits that employees can enjoy.

3.2.1 Civil Construction7

Although the Civil Construction sector is a discrete part of the Industry there are many commonalities

with general construction. The Civil Construction sector plays a very important part in Australia’s

economy and is an integral component in the development of infrastructure that is essential for

sustained economic growth.

The range of occupations within Civil Construction is very broad with skilled occupations supporting a

wide range of areas of activity.

7 SkillsDMC and Civil Contractors Federation: Civil Construction Occupation Review Report, March 2010


V20141003e Page 8

The workforce in this sector is mainly engaged in civil engineering work on projects such as roads,

subdivisions, bridgeworks, railways, harbours, sewerage and drainage, electrical

distribution/transmission infrastructure, pipelines and recreation works. Two major areas of activity

are; plant hire and civil engineering project management.

3.3 Industry Trends

The Construction Industry, including Civil Construction, is strongly impacted by the variations in

economic cycles. Even though there is a continuing weak global outlook, there has been significant

growth in the Residential sector over the past 12 months.

This growth is illustrated in Charts 1 and 2 which compare construction activity and State Final

Demand. It is clear that the activity in the Construction Industry closely reflects the trends within the

WA economy as a whole. It is also apparent that the Residential sector has increased; the non-

Residential sector has decreased slightly; whilst Engineering Construction has decreased significantly.

Chart 1 - Construction Work Done in $000s

ABS 8755 & 8762

Chart 2 - State Final Demand in $ millions

ABS 5206


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3.4 Growth Trend of the Industry – 12 Year Period

Chart 3 shows the employment growth trend of the Construction Industry for the last 12 years and

represents a growth of 74%. In the same period, the Western Australian workforce increased by

39%8.

Chart 3 - Employed in WA Construction Industry (000s)

ABS 6291.0

Chart 4 shows that averaged across the previous year, the Construction Industry employs over 10% of

the State workforce. In the month of May 2014, employment in the industry was at 137,510 with

approximately 19% of the workforce residing in regional areas. Approximately 43.7%9 of the

workforce is comprised of tradespeople with 75% residing in the metropolitan area.

Chart 4 - Employed in Construction as a Percentage of ALL WA Industry

ABS 6291.0

Over 87% of the Construction workforce is employed on a full-time basis, which has been fairly consistent over the past 12 years.

8 ABS 6291.0.55.003 Table 5 - Labour Force, Australia, Detailed, Quarterly

9 ABS Census 2011


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3.5 Labour and Skill Demand

The projected national labour force is expected to grow moderately in the period 2013-1510

.

Table 1 shows national employment growth forecast rates for Construction in the period 2009 to 2019.

The Construction Industry is still one of the key growth industries along with mining, utilities, health

and community services that are expected to lead growth over the next five years.

Table 1 - National Employment Growth

Australia 09/10 10/11 11/12 12/13

13/14

F 14/15

F 15/16

F 16/17

F 17/18

F 18/19

F 10 yr. Av.

Construction -0.30% 2.36% -0.49% -1.33% 5.66% 3.65% 1.23% -1.81% -0.05% 2.85% 1.18%

ACIF (F=Forecast)

Table 2 shows short and long-term forecasts for construction activity and labour in Western Australia

as provided by the Construction Forecasting Council11

. Indications are for a 3.4% growth in the State

workforce between 2013-14 and 2015-16, then an average annual shrinkage rate of 0.68% to 2018-

19. The 10 year average is predicted at a growth of 2.18% which appears a conservative figure for

Western Australia.

Table 2 - Western Australian Short and Long-Term Forecasts

Residential, Non-residential, Engineering (exc Heavy) in $ millions

2009-10 2010-11 2011-12 2012-13 2013-14 F 2014-15 F 2015-16 F 2016-17 F 2017-18 F 2018-19 F

24,694 26,132 30,296 33,008 34,874 33,169 32,131 32,394 31,511 31,110

Long-term Labour WA

125,000 126,000 132,000 128,000 146,000 150,000 151,000 149,000 149,000 154,000

ACIF (F = Forecast).

Chart 5 provides the previous forecast from Table 2 in graphical format.

Over the next five years there is a predicted 2.7% growth in labour requirement and 6.2% reduction in

value of work in the Construction sector.

Chart 5 - Western Australian Forecasts

ACIF (F = Forecast).

10

Australian Construction Industry Forum; http://www.acif.com.au/forecast 11

Construction Forecasting Council; http://www.acif.com.au/forecast


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3.6 Forecasting

The following information is provided to show the differences in opinion on future prospects. However,

the common underlying theme shows there is concern about the near-future but some optimism about

mid- to long-term stability after a peak in the 2012-14 periods.

3.6.1 Housing Industry Association

The HIA update for Western Australia in April 2014 provides the following information about current

and forecasted building activity nationally and in Western Australia as at February 2014.

“Latest ABS figures show that residential building approvals remained close to record levels during February”

“Although approvals fell by 5.0 per cent during February compared with January, the overall picture is one of strength in the sector.”

“During February 2014, growth in seasonally adjusted building approvals was recorded in Western Australia (+4.6 per cent)”.

The HIA12

now predict new home building in WA will ease by 6.8% in 2014-15 with a further fall of 3.9%

in 2015-16 and 3.4% in 2016-17. Commencements will fall back to 23,851 per annum.

3.6.2 Master Builders Association

The Master Builders Association (MBA) sources its forecasting information from the Housing Industry

Forecasting Group13

and the Australian Construction Industry Forum.

Table 3 - Dwelling Commencements (Forecast)

HIFG Forecast of Dwelling Commencements in WA – 2013-14 to 2016-17

Financial Year Dwelling Commencements % change

2012-13 (actual) 24,010

2013-14 (actual) 27,000 +12%

2014-15 (forecast) 25,000 -7%

2015-16 (forecast) 20,000 - 22,000 -13%

2015-16 (forecast) 20,000 – 22,000 No Change

Housing Industry Forecasting Group

3.6.3 BIS Shrapnel

BIS identify that on ‘year-on-year’ comparisons for the year ending March 2014 saw dwelling

approvals flat (0%)14

.

Latest indicators are that the forecasted increase in dwelling commencements for 2013-14 will be 18%

not the 14% projected previously.

It is forecast that non-residential building commencements in Western Australia will decrease in 2013-

14 with a predicted drop of 22%, to approximately $5 billion. Commercial and industrial, social and

institutional commencements are also forecast to show strong growth of 14%. The Health building

sector is forecast to fall sharply (-89%)15

.

12

HIA Residential Construction National Outlook– A Key Driver of Growth, June 2014 13

Housing Industry Forecasting Group - October 2012 14

BIS Shrapnel Building Industry Prospect, May/June 2014, page 3 15

BIS Shrapnel Building Industry Prospect Sept 2012 page 25


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3.6.4 Summary of Forecasting

Industry and economic analysts all have different views on the level of construction activity in the

future. This reflects the volatile nature of the Industry and its reliance on a wide range of economic

and social factors which are difficult to predict. However, it appears that short-term, the prospects for

housing construction in WA are showing signs of strength but weak and relatively flat in most other

areas.

According to the latest ABS data, building approvals for April 2014 have risen by 18% when compared

to April 2013. However, on an annualised basis, there has been a 28% growth. Forecasts by the

ACIF16

show a moderate increase in new houses of 1.6% in 2014-15 and 2.9% in 2015-16.

During 2013-14, the Construction Training Fund and Australian Brick and Blocklaying Training

Foundation (ABBTF) (bricklaying only) increased apprentice subsidies for selected trades where there

was an identified issue with low commencements. Increases have occurred in these trades and it is

forecast that if residential construction remains stable there will be sustained growth in apprentice

numbers.

It is also forecast by the ACIF that construction activity overall will reduce slightly from $237 billion in

2013-14 to $228 billion in 2014-15.

3.6.5 Civil Construction - Occupations17

As the Mining Industry moves to the operational phase and the Residential construction sector

remains stable, Construction will again grow its workforce. With continuing strong infrastructure

spending, recruitment difficulties are expected to become more evident and possibly lead to inhibited

economic and job growth.

Skill shortages became more widespread as predicted in the Civil Contractors Federation (CCF)

survey of 2010 with an additional 17,300 workers/employees required industry wide by the end of

2012-13. This was a conservative estimate due to the long-term strength in Civil Construction and

growth prospects as major infrastructure projects commenced. The ACIF18

prediction for 2013-14 was

growth of 19.5% in road building but a 5.2% reduction in bridges, railways and harbours. However,

there was previously strong growth in bridges, railways and harbours construction in 2010-11 (53%)

and 2011-12 (67%).

Skill shortages are evident in many areas including, road and bridge construction, road maintenance,

pipe laying and leadership and supervisory roles. The forecast for pipelines in 2013-14 is (-14.5%)

and in 2014-15 (-20.7%), this will cancel the growth of 47% in 2012-13. It is predicted that employers

in the industry will have increasing difficulty in meeting skill needs in the short term but ease in the

medium to long term. There has been growth of 14% in trainees in the Civil Construction sector since

2008.

16

Australian Construction Industry Forum: Construction Market Report – Western Australia and Perth, May 2014 17

SkillsDMC and Civil Contractors Federation: Civil Construction Occupation Review Report, March 2010 18

Australian Construction Industry Forum: Construction Market Report – Western Australia and Perth, May 2014


V20141003e Page 13

3.7 Construction Workforce Structure

The Construction Industry workforce is dominated by tradespeople and technicians who, according to

the 2011 Census19

, comprised 49% of the workforce in comparison with all other combined industries

which had 13.11% as technicians or tradespeople. According to the latest ABS data there are

predicted changes in the distribution of occupations20

.

Table 4 shows that all other combined industries have a large component of professionals at 21.64%

compared to 4.95% in Construction. These figures demonstrate the high reliance on trade-based

occupations within the Construction Industry and how critical the trades are to the outputs of the sector

particularly when compared to other industries.

Table 4 - Distribution of Occupations compared to all other Western Australian Industries 21

Industry

Mana

gers

Pro

fessio

na

ls

Technic

ians

and T

rades

work

ers

Com

mun

ity,

Pers

ona

l

Serv

ices

Work

ers

Cle

rica

l and

Adm

in

Work

ers

Sale

s

Work

ers

Machin

ery

Opera

tors

and D

rivers

Labo

ure

rs

Not S

tate

d

Construction 9.42% 4.95% 49.06% 0.25% 11.21% 1.05% 8.75% 15.30% 0.16%

TOTAL (All other Industries)

12.49% 21.64% 13.11% 10.43% 14.73% 9.42% 7.56% 9.07% 1.62%

ABS Census 2011

Chart 6 - Distribution of Occupations compared to all other Western Australian Industries22

ABS Census 2011

19

Source 2011 ABS Census Tablebuilder 20

Employed Persons (ST E09_Aug96_ANZSIC06) by Industry Division, Occupation Major Group, Sex, State 21

Source 2011 ABS Census Tablebuilder 22

Source 2011 ABS Census Tablebuilder


V20141003e Page 14

3.8. Industry Sectors - Sector Characteristics

The Construction Industry is divided into seven sectors (ASCO codes) as shown in Table 5 (as at Census 2011).

Table 5 - ASCO Codes ASCO Sector in Construction % of Workforce

411 Residential Building and Construction 21.40%

412 Non Residential Building and Construction 6.20%

421 Land Development and Site Preparation Services 8.25%

422 Building Structure Services 11.30%

423 Building Installation Trade Services 24.40%

424 Building Completion Services 19.00%

425 Other Construction Services 9.45%

The Industry structure continues to be dominated by a number of large companies, who employ

professionals and administrative staff to manage contracts, with the majority of operational or trades-

level staff employed on a sub-contract basis.

A significant proportion of Construction trades operate as small businesses and sub-contractors, who

tender for work. Each of the small business employees are mostly employed on a sub-contract basis

with their own Australian Business Number (ABN) as a mechanism for managing ‘on-costs’ such as

worker’s compensation, superannuation and other entitlements. Subsequently, it is the sub-

contractor, the small employer, who is a significant employer of apprentices whether through a group

training organisation or by direct indenture.

Group Training Organisations (GTOs) play a key role in contributing to the employment of

Construction apprentices and as at March 2014, they were responsible for 36% of Construction

apprentice commencements and 32.4% of those ‘in training’. In the Electrical Industry, GTOs employ

21.1% of all electrical apprentices23

. These percentages have shown a downward trend from the peak

of 50% in 1999-2000 for apprentices employed by GTOs.

3.8.1. Civil Construction

Occupations critical to the Industry, such as bridge constructor, road constructor and pipe layer either

have no ANZSCO, or the title only reflects a part of the particular occupation. Supervisory or

management jobs including leading hands and supervisors are not adequately captured in ANZSCO

for civil construction occupations.

CCF data indicates the size of the Australian Civil workforce was approximately 350,00024

. CCF (WA)

has estimated the Civil Construction (WA) workforce as approximately 40,000. It is suggested that

Civil employs between 30% and 40% of the construction workforce in Australia.

3.9. Regional Impact

It is estimated that 25% of skilled workers required by the Resources sector are recruited from the

Construction Industry25

. This situation leaves the Construction Industry in the difficult position of

meeting the cost of training and employing new recruits only to lose a large number of those people at

the point at which the Industry was about to receive a productivity return.

23

TRS Cube March, 2014 24

SkillsDMC and Civil Contractors Federation: Civil Construction Occupation Review Report, March 2010 25

ABS - 2008 Labour Mobility and Intentions Survey


V20141003e Page 15

Industry stakeholders have again expressed concerns that if in the future the Resources sector grows

ahead of a recovery in the Construction sector, there will again be a ‘siphoning’ of skilled and

experienced workers from construction. This could create a shortage during the 2014-18 period. This

issue is highlighted in a recent State Training Board26

report on the impact of crowding out non-

resource industries

The broad geographical expanse of Western Australia means that there are significant variations in

climate and a subsequent response by the Industry to building requirements. For example, houses

built in the North-West of the State need to address a significantly different set of variations in climate

and local council regulations to houses built in Albany or Esperance. In Perth for example, the

majority of homes are built using ‘double brick’ construction whilst those in the North-West of the State

are either timber or steel framed. A further development is the introduction of more pre-fabricated,

transportable and modular accommodation that is used in the Mining sector but is also being slowly

introduced in the Residential sector in remote areas.

The above variations necessitate different skill sets for tradespeople and consequently increased cost.

Other issues leading to increased costs include, transporting materials to regions and remote areas,

the additional building requirements required to withstand harsh weather conditions, cost of housing

due to competition from the Mining sector and limited training infrastructure.

A number of regional issues were identified and raised by Industry stakeholders during industry

surveys in 2012-14;

There is a need to respond to substantial changes in technology, and for industry and the training

sector to ensure opportunities are given to workers to be trained in a range of skills with continual

up-skilling of existing workers27

.

Regional tradespeople need to possess a broader range of skills than their peers in the

metropolitan area;

Quality of work is more important in lower populations due to the need to acquire repeat business

in a smaller community;

There is considerable difficulty associated with coordinating trades where long distances are

involved and there are only a small number of sub-contractors willing to complete remote work;

The reluctance of trades and skilled labour to work in remote communities and the resultant lack

of competition causes price increases beyond that caused by skills shortages; and

The lack of local regional training and employment opportunities which will allow students to

complete their apprenticeships close to their employment and home.

There are also problems with continuity of work for all types of construction in wider regional and

remote areas. In a large proportion of construction, contractors travel, construct the building and

leave. As a result there is no incentive or reason to maintain a local presence and to employ or train

local residents.

An on-going concern raised by Industry stakeholders and employers in regions is the failure of the

training system to provide local training services. Statistics on regional training are detailed in this

Plan but it is apparent that approximately 40% of all regional apprentices are required to travel and be

accommodated away from home to undertake their off-the-job training. The cost of this can be a

burden for these apprentices, their parents and their employers. In the case of first year apprentices,

there is a significant social and safety problem in having young inexperienced people living away from

home and being unsupervised for lengthy periods of time.

This issue was raised during 2010-12 with the Department of Training and Workforce Development

and Managing Directors of regional training providers. In 2012, the Department of Training and

Workforce Development implemented changes to funding arrangements for metropolitan training

providers to encourage them to deliver in regional areas. Feedback from regional employers in June

2014 indicated that the industry is disappointed with the slow response from training providers in

26

Crowding Out: Competition for skilled labour in WA, State Training Board, February 2013. 27

CPSISC (2014), Environmental Scan 2013-14, Page 3


V20141003e Page 16

addressing this issue. The Training Council will continue to monitor any changes in the number of

apprentices being offered regional training opportunities.

3.9.1 Civil Construction - Regional

Regional Civil Contractors continue to be concerned with the process of small contracts being

‘clustered’ and then put out to tender. This process gives larger contractors from the metropolitan

region an advantage over smaller regional contractors. The smaller contractors are limited to their

geographical area while the larger contractors can cater for the large clustered contracts which span a

number of regions. In effect, the regional contractors then have to become sub-contractors to the

major contractors. The advantage of this type of arrangement is that a number of contracts can be

offered in one tender process and managed by one contractor.

There are also issues relating to quality of training, cost of training and availability of training,

particularly for small to medium sized businesses. These problems are exacerbated in regional areas.

A large proportion of the activity in this sector is in the outer metropolitan regions and beyond, where

there are challenges for training providers. Some providers, although committed, are not equipped to

meet the current or emerging needs of the sector in the areas of technical expertise, delivery

methodologies, resources, equipment or capacity to deliver to industry standards28

.

Issues that were raised during consultations include:

The need for using a double-cab in excavators and similar equipment. This would allow for safer

and easier training in a controlled side by side environment. The current situation is seen as an

OHS issue, as trainers have to teach/guide the student from the ground.

More training required to cope with the change and growth of the Industry, in areas of OHS and

technology.

The profile of the Civil Construction occupations need to be improved and made more attractive to

encourage potential employees to the Industry.

3.10. Level of Education in the Workforce

The level of education and age of the workforce continues to be a major concern for the Construction

Industry. The exodus of skilled employees reaching the end of their working life compared to the

lower numbers entering the Industry via the apprenticeship training system is also of major concern,

especially in the current economic climate.

For employees who have acquired their skills on-the-job without formal qualifications, consideration

should be given to encouraging these tradespeople to participate in the recognition of prior learning

process. These people can then be encouraged to train apprentices and utilise their qualifications for

this purpose.

As at the 2011 Census, 52% of the Construction Industry had completed a post-school qualification

and of these, five out of every ten had completed a Certificate III or IV. Trade-level qualifications are

therefore significant and are considered important within the Industry.

Table 6 - Overall Level of Education in Construction Workforce

Source 2011 Census ABS

From Chart 7, it is apparent that Certificate III and IV are well represented in a number of key ‘skilled’

areas. It appears that Certificate I and II are not well represented, however, the Census questions

relate to the highest achievement and the Certificate III and IV holders may well have completed, for

example, a Certificate I or II pre-apprenticeship qualification that is not recorded.

28

Civil Construction Occupation Review Report SkillsDMC

Western Australian Construction (Building) Industry

Certificate I and II

Certificate III and IV

Not defined All other levels

Not stated

Not applicable

1% 50% 1% 2% 2% 44%


V20141003e Page 17

Chart 7 - Level of Education by Sector (ANZSIC93)

Source 2011 Census ABS

The Installation Trades (423) service sector and the Building Completion (424) service sector

are predominantly supported by Certificate III or IV (trade-level).

Other Construction (425) services have lower rates of Certificate III and IV qualifications as does Site Preparation Services (421) and Non-Building Construction (412). This indicates that other skill sets predominate, or skills are learned mainly on-the-job.

Building Construction (411), as the largest sector, has a significant number of other occupations (labourers, administrative staff), where qualifications are not necessarily required.

4. Quality and Relevance of Secondary Education

Industry employers and stakeholders continued to be dissatisfied with the performance of the

education system, especially as it continues to focus on tertiary entrance as a first choice and priority

for students.

Vocational Education and Training (VET) is often perceived by parents, students, teachers and

education administrators as less important and generally a second class option to university.

In respect to the Construction sector, the introduction of new industry specific vocational programs

(VETiS) in 2012-13 was a major improvement and is being introduced widely throughout the school

system. Both trade and para-professional pathways provide the opportunity for students, teachers

and parents to gain a better understanding of what industry requires. The new courses are eliminating

the previous array of offerings by schools to Year 11 and 12 students for Construction. The students

who complete one of the new pathways have much improved employment outcome opportunities if

selecting an apprenticeship, as employers benefit from maximum articulation.

During 2012-13 major learning resource development work in the Para-professional pathway was

completed. The same development effort for the new trade pathway occurred during 2013 and is

continuing in 2014.

In 2013 there were more than 36,000 senior secondary students in Years 10-12 enrolled in at least

one VET unit of competency or full qualification.

47% of Year 11 and Year 12 students enrolled in VET programs compared to 42.4% in 2012.

31.5% of enrolments were at AQF level 1.

59.5% of enrolments were at AQF level 2.

8% of enrolments were at AQF level 3.

1% of enrolments were at AQF 4 and above.

Of the top 15 qualifications selected by senior secondary students in 2013, only 621 students

achieved a Construction qualification and of these 234 were in Certificate I in Construction. This is a

low-level qualification that does not directly articulate to a trade qualification. The remaining 387

completed a Certificate II in Construction, Construction Pathways, Civil or Para-professional program;


V20141003e Page 18

In 2013, for Year 10-12 enrolments;

12,876 Certificates II, III and IV qualifications were achieved across all industry sectors;

1,636 students completed a Certificate II in Business with a total of 2,841 enrolments.

234 students completed a Certificate I in Construction.

375 students completed a Certificate II in Construction.

The figures above show that there needs to be a far greater emphasis on encouraging students to

pursue a career in Construction. When considering the annual average number of employees in the

Construction Industry, 141,450 or approximately 10% of the State’s workforce, and employment of

40% of the State’s apprentices, the extremely low number of students completing Year 10 to Year 12

with a Certificate I or II in Construction is of major concern.

One of the possible reasons for the low number of students in Construction is lack of accessibility of

training resources or staff capable of delivering the qualifications in schools

However, due to increased support from the Construction Training Fund for the Construction VET in

Schools programs, the number of school students enrolled in Certificate II Construction qualifications

has increased by 100% in 2014.

Industry sees as a priority, the need to support the implementation of quality resources, similar to the

Construction and Para-professional pathways, to support a single training model for all schools.

Industry stakeholders perceive that a number of education staff in schools, including teachers, VET

coordinators and counsellors, have a less than positive view about vocational education. These

groups have generally not worked in industry and therefore have little knowledge or understanding of

the opportunities for, and needs of, students who are not destined for university.

The vast majority of jobs in the Construction Industry and in many other industries do not require a

tertiary-level education. The education system is however, directing about 70% of its students into

tertiary entrance courses. Even though about 80% of WACE students achieve the necessary

education standard for university entry, about two-thirds of the students who achieve an Australian

Tertiary Admission Rank (ATAR) actually gain a place in university.

Issues raised during industry consultations include:

Some schools continue to ignore the value of VET trade training and therefore have a shortage of

good trade trainers. Electrical, plumbing and carpentry and joinery are the main trades being

delivered in schools.

Industry should be more involved with schools and colleges to provide career information, and use

strategies such as ‘adopt’ a high school to provide work experience and scholarships.

Students should be placed into industry settings to provide relevant work experience in trade

apprenticeship and traineeship streams - industry need students to be ‘work ready’.

School-based apprentices are viewed as difficult to manage and students not exiting school at the

same standard as pre-apprentices.

If schools cannot provide sufficient training then industry requires pre-apprentices trained through

RTPs or partnerships need to be established between schools and RTPs to encourage delivery in

schools.

Assistance needs to be given to schools and students to identify a student’s potential by Year 9.

Programs such as accountancy, business, finance, budgets and sub-contracting should be run in

conjunction with VETiS trade courses, as graduates often need to become small business

operators when they complete their apprenticeships (due to the sub-contract nature of the

Industry).


V20141003e Page 19

5. Gender/Age Participation

Over a number of years, Access Economics has predicted that a ‘demographic gap’ is looming. The

pace of retirement will grow in the next few years as ‘baby boomers’ either scale down their working

hours or retire. However, the number of students exiting the education system is expected to remain

constant until the 2020s apart from the impact of the ‘half cohort’. For the next five years it is

predicted that less than 125 people will exit the education system for every 100 retiring. This is the

highest ratio of job market retirements to new entries in Australia’s history29

.

National projections for all sectors, including the Construction Industry, indicate that the number of

graduates will improve after 2023 due to an increase of 20% in the birth rate between 2001 and

200930

.

While Western Australia has an approximate 10% share of Australia’s population, there is a

disproportionate share of construction activity in the two mining states of Western Australia and

Queensland. A significant number of the additional workers required for the Construction Industry are

more than likely going to be required in Western Australia.

Chart 8 - Age Distribution within the Construction Workforce – ALL TRADES 31

Source ABS Census 2011 and 2006 Data

There are concerns being expressed by industry that the drop in the 15-19 age group is reflected in

apprenticeship commencements and this will cause skills shortages as the economy recovers. There

is also concern raised about the low number of school leavers as a result of the half cohort which is

now beginning to exit school.

5.1. Impact of Age and Chronic Conditions on Longevity (age/time) in the Industry.

Employment in the Construction Industry is generally site-specific and sub-contract-based, with trades

required in specific sequence. There is a requirement to commence and complete a ‘job’ within a

specific timeframe. The amount of contract work that is available is largely dependent on the

robustness of the economy. The capacity to earn more money in times of economic growth

encourages workers to complete extended hours and to a large extent this has previously hidden skills

shortages.

Construction trades generally require a high and consistent level of physical effort involving lifting,

carrying, handling potentially dangerous goods, harsh work environment and repetitive actions. These

demands can have a detrimental physical effect with acute and chronic injury levels amongst the

29

Access Economics Pty Ltd – Deloitte “Building The Lucky Country” (2011) – page 6 30

ABS, Births, Australia, 3301.0 31

Source 2011 Census ABS DataCUBE


V20141003e Page 20

highest in any industry. A survey conducted by the Construction Training Fund in 2009-10, revealed

that 12% of all respondents reported that they had chronic injuries that affected their ability to work in

their trade, and 66% of these respondents were now working as builders in the Industry. When asked

about retirement, 9% of respondents expected to retire within the next 5 years. This finding is

supported in the age demographics from the 2011 Census data with 12% aged between 55 and 6432

.

In a recent survey of industry stakeholders33

, there were consistent concerns expressed regarding the

aging of the current workforce and the impact that will occur with the exodus of the ‘baby boomers’.

There is also concern that large numbers of existing workers continue to remain in the workforce due

to the continued poor performance of superannuation funds.

However, there is support for encouraging older tradespeople to remain in the workforce as

supervisors or to be involved in the maintenance sector of the industry. Both of these areas suffered

from skills shortages prior to the 2008 GFC. To encourage retention of the aging workforce, it was

suggested by stakeholders that more flexible working arrangements, provision of tax incentives,

including superannuation concessions, for the over 65 years of age cohort and the provision of

specific training may be required.

It was also suggested that more mature workers who find it difficult to cope with the physical aspects

of the trades should be encouraged to become trainers or mentors. However, some training providers

have previously used lecturer recruitment advertising that encouraged younger tradespeople to enter

the training sector.

Mentoring of apprentices is now viewed as essential if the completion rate is to be improved. The

recently introduced ‘mentoring’ programs that have been funded by the Federal Government are

expected to begin to have an impact in 2013.

Based on the 2011 Census, Chart 9 provides a realistic snapshot of the age distribution in a

comparative analysis across trades and gives some indication of the correlation between age and

physical effort required in each trade.

Chart 9 - Age Distribution across a number of Construction trades

Source 20011 Census ABS DataCUBE

32

ABS Census 2011 Tablebuilder data 33

Construction Training Council - Stakeholder Survey September/October 2012


V20141003e Page 21

5.2. Number of Workers and Age Distribution by Trade/Occupation 34

The age distribution within trades clearly indicates the trades that suffer from tradespeople exiting early and finding alternative work and also shows occupations that the aging workforce remain in for longer periods of their working life. The following should be noted:

Roof Tiling is predominantly an occupation for under 40 year olds.

Mobile plant operators are an aging cohort where trade skills take many years to develop before

an operator is placed in charge of a plant. In addition, young people are not attracted to the

occupation as one of ‘first choice’.

The peak age for a carpenter and joiner is on average 30 years of age. It is most likely that

people in this trade move into higher level occupations, establish businesses or are subject to high

rates of injury that causes a change in occupation.

The occupations associated with the wet trades appear to have a comparatively short working life

with a considerable decline in participation after 49 years of age.

Handyman/maintenance persons enter the occupation after experience in other trades. This

assumption is backed by anecdotal evidence that supports the notion this occupation could utilise

the aging workforce and release younger tradespeople to other areas.

Aging Population issues that were raised during previous consultations that remain current:

Skilled, mature tradespeople could be used for mentoring or apprentice training, particularly sub-

contractors.

Occupations with aging workers could be modified to more of a trainer role - this strategy could

help retain and support older Construction workers.

There should be a clear career pathway map for all employees including upskilling apprentices

(from initial employment) to enable the transition to a managerial role.

Companies should adapt to workers needs, for example, if FIFO not suitable - arrange

employment in the manufacturing sector of modular or transportable buildings

5.3. Civil Construction - Demographics35

The demographic profile of the Civil Construction sector aligns with government predictions in its

Intergenerational Report36. It is noted that Civil Construction, as in General Construction, has many

physical occupations that have much earlier retirement ages for certain occupational groups when

compared to other white collar occupations.

The majority of the supervisor and operator workforce is in the 25 to 44 age group with a decline in

participation rates between the ages of 45 to 54. There is a return to the workforce between the ages

of 55 to 64 but usually in different roles, as appears to occur in other construction sectors.

Civil Construction has approximately 10% female participation, predominantly in traditional roles which

is considerably less than some other sectors.

Chart 10 provides a representation of the workforce age profile of various Civil and Heavy Engineering

trades compiled from the ABS 2011 Census. (Heavy Engineering is included as ABS has combined

the two together).

34

Source 2011 Census ABS DataCUBE 35

SkillsDMC Environmental Scan 2012 36

Intergenerational Report – Australia to 2050 Future Challenges ISBN 978-0-642-7-4576-7 2010


V20141003e Page 22

Chart 10 - Civil Construction Workforce Age Profile37

2011 census ABS

6. Apprenticeships and Traineeships within the Construction Industry

Apprenticeships and Traineeships have, for many years, provided a reliable supply of tradespeople for

the Industry. However the total attrition, which is a combination of withdrawals and cancellations, from

the apprenticeship system has raised a number of concerns.38

Withdrawal rates in Construction, excluding electricians, have ranged over the last 10 years between

9% and 18% of all commencements. Cancellation rates have ranged between 22% and 41% with the

major increases in recent years.

There is evidence to show that the completion rates are understated due to the method of data

collection and recording at a National level. The National Centre for Vocational Education Research

(NCVER) has identified that when an apprentice changes employer, this is identified as a cancellation

and recommencement.

When this anomaly is taken into account an adjustment of up to 29% can be identified39

. However, in

Western Australia a record of recommencements indicates an average adjustment of between 5% and

20%.

A significant proportion of Electricians work in the Construction Industry but they are not included in

the Construction Training Council coverage. However, the Electricians are included in this plan to

provide a comparison of performance of individual trades.

There is a significant difference in completion and cancellation rates between licensed and unlicensed

trades. In the years 2004 to 200840

there was an average 15% difference in completions. The much

higher completion rate for electrical apprentices may be attributed to better quality applicants who are

more closely screened before recruitment. The stronger result for licensed trades is also due to the

fact that there is no employment outcome for apprentices who do not successfully complete the

indenture.

In recognition of the increased completion rates in electrical and plumbing, there is growing support

amongst key stakeholders that there should be a review of the benefits of trade licensing as a

workforce development strategy. There is currently growing support for licensing in structural trades

such as Bricklaying and Carpentry.

A 15% improvement in completion rates for unlicensed trades would not only result in a significant

reduction in skilled workforce demand, but also a significant reduction in the cost to industry,

37

ABS 2011 Census 38

Completion rate figures may be artificially low by between 5% and 10% due to the NCVER recording apprentices who transfer between employers as cancellations and

then recording as commencements rather than re-commencements. 39

From a National perspective NCVER have estimated the underestimation in completion rates could be as high as 29% in Construction trades. 40

Figures for 2009 onwards are not included as there are outstanding contract completions to occur


V20141003e Page 23

Government and the community. The attrition for unlicensed trade apprentices has averaged between

600 and 1,000 apprentices per annum. The training cost for these apprentices is in the millions of

dollars.

The ratio of apprentices to the number of tradespeople in the Industry is known as the ‘training rate’.

Using the previous data, the training rate for the Construction Industry is calculated as approximately

13% which compares to an ‘all other industries’ average of 8.2%. As at June 2013, the Construction

Industry, including electrical mechanics, employed approximately 19% of combined apprentices and

trainees.

6.1 Apprentice In Training

During 2010-13 there was a concerning trend of low level apprentice ‘Commencements’ in

Construction and this will have a negative impact on the ‘In Training’ figures over the next 6 to 36

months. There has been a marked improvement in 2013-14.

Although the total number of apprentices ‘In Training’ is currently stable, this may be due to the

number of apprentices being retained in the Industry and the impact of State and Federal initiatives.

Construction ‘In Training’ apprentices have increased by 5.5% and electrical by 3%.

Chart 11 - Construction Apprentices ‘In Training’ (including Electricians)

TRS DataCUBE - March 2014 and Construction Training Fund - Apprenticeship data.


V20141003e Page 24

6.2 Apprentice Commencements

To enable 2014 to be included in the following chart a full year to March is used. This shows that

construction commencements in March to March 2013-14 increased by 23.85% compared to the

previous year (March to March 2012-13)41

. A more reliable statistic is the ‘In Training’ in Chart 14.

In the same period, electrical apprenticeship commencements decreased by 5.85%. When combined

with all Construction apprenticeships there has been an overall increase of 10.62% in

commencements. Tiling commencements have contracted by 2.4%.

Chart 12 - Construction Apprentices ‘Commencements’ (Year to end of March 2014)


Chart 13 - Commencements by Comparison to Previous 12 months


The previous four year trend of decreases in commencements raises major concern with the impact

this will have on the future supply of tradespeople in the Construction Industry. However, although

lower than previous highs, construction apprentice commencements have improved significantly

during 2013-14 to March. However, the impact of Competency Based Wage Progression is yet to be

identified.

41

These figures must be used with caution due to the inclusion of previous year’s March to March data in 2014 for calculation purposes. All other years are for full

calendar years.


V20141003e Page 25

6.3 Training Rates 42

Over the last four years there has been a significant decline in ‘training rates’ for many of the

Construction trades including Electrical.

The Training Rate is the ratio of apprentices to tradespeople and the table below shows how severe

the decline in some trades has been compared to 2009.

Table 7 - Training Rates

Training Rates Trade %

change 2014 2009

Electrician (previously identified as Electrical Mechanic) -5.5% 26.60% 28.16%

Carpentry & Joinery -46.9% 7.70% 14.50%

Plastering -52.8%. 0.85% 1.80%

Plumbing & Gas -16.3% 11.10% 13.26%

Bricklaying +85.0% 6.79% 3.67%

Painting & Decorating +11.5% 6.80% 6.10%

Roof Plumbing +22.7% 10.80% 8.80%

Wall & Floor Tiling +194.1% 15.00% 5.10%

TRS DataCUBE March 2014 and ABS 6291 ST_E08

Wall and Floor Tiling appears to have experienced a healthy increase, however, this is due to the decline in the number of tradespeople in the Industry rather than maintaining apprentice numbers.

The significant increase in Roof Plumbing is due to the low numbers of tradespeople in the industry and concerted efforts to promote the trade.

Bricklaying appears to correspond to a recent increase in housing approvals, activity in the Residential housing sector and increases in employer/apprentice subsidies.

Chart 14 - Training Rate - Current (Ratio of Apprentices to Tradespeople)

TRS DataCUBE - March 2014 and Construction Training Fund - Apprenticeship data

42

‘Training Rate’ is the number of apprentices ‘in training’ compared to the number of tradespeople in the specific industry as stated by ABS 6291.0.55.003, ST_E08


V20141003e Page 26

Chart 15 - Apprentices ‘In Training’ by Major Industries

DTWD TRS Data - March 2014

Chart 15 shows the percentage share of apprentices ‘in training’ when compared across industries. It

should be noted that although electrical apprentices are shown separately and are covered by a

different Training Council, the majority are employed, at least part of their time, within the Construction

Industry and receive subsidies from the Construction Training Fund.

Chart 16 shows the growth of Construction apprenticeship numbers, including electrical over the last

eight years and the reliance that is placed on apprenticeships to meet the skills demand. The industry

has had a peak ‘training rate’ of between 15% and 16% (apprentice to tradesperson ratio) and is

currently 13% which compares most favourably with the ‘all other industry’ average of 8.2%.

Chart 16 - Growth in Apprentices ‘In Training’ over the last 8 years

DTWD TRS Data - March 2007 to 2014


V20141003e Page 27

As Industry activity is not restricted to the metropolitan area, regional construction requires a strong

regional workforce with apprentices being a critical labour source for many businesses.

Table 8 indicates that regional employers are strong supporters of the apprenticeship system.

However, the training system only meets approximately 60% of the regional training demand for

apprenticeship training places. Although this issue was addressed by the Department of Training and

Workforce Development in 2012 approximately 40% of the remaining regional apprentices must

access training by travelling to Perth. This is a key issue for regional stakeholders.

Table 8 also shows the percentage share of the State’s apprentices and trainees who reside in a non-

metropolitan postcode. It is clear that regional Construction apprentices and trainees comprise 28.8%

and 35.6% respectively of the State cohort and are a significant component of the Industry.

Table 8 - Apprentices ‘In Training’ - Regional (Non-Metropolitan)

DTWD TRS Data - March 2014

Chart 17 shows the number of Construction apprentices ‘In Training’ in regional Western Australia that

have to attend a metropolitan training provider compared to a regional training provider for their

training, as at March 2014.

Chart 17 - Regional Apprentice Training Provision

DTWD TRS Data- March 2014.

In Training 2014 Apprentice/Trainees

with non-metro post

code

% of Regional

Apprentices and

Trainees attending a

Regional Registered

Training Provider

Number of Regional

Apprentices and Trainees

attending a Regional

Registered Training Provider

Apprentices

Construction 28.8% (1,016) 61% 620

Electricians 26.1% (1,077) 61% 659

Combined 27.0% (2,093) 61% 1,279

Trainees

Construction 35.6% (198) Estimated at 58% 115


V20141003e Page 28

6.4 Under-Represented Groups Participation

The Indigenous population is a ‘young’ population with the 2011 Census indicating that the average

age of Indigenous males is 22 from a population of 34,419. The average age of a non-Indigenous

male is 37. More than half (56.2%) of Indigenous males were under 25 years of age in 201143

.

There are currently forecasts for billions of dollars’ worth of resource projects North of the 26º parallel

where 3.3% of Western Australia’s population resides. A significant percentage of the population in

this location is Indigenous with a large number unemployed, not actively looking for work or not in the

labour force.

Of those who are employed, a significant number are without qualifications. The participation of

Indigenous people in Vocational Education and Training tends to be in Certificate I or II, or subject

specific enrolments with limited employment outcomes.

A total of 3.38% (704) of Western Australian Indigenous workers reported that they worked in the

Construction Industry. Almost 10% of the State’s workforce is employed in the Construction Industry,

so there is a gap of over 6% which can be improved upon44

.

The biggest problem in raising Indigenous employment in the Construction Industry is that the

Industry’s main recruitment method is apprenticeships, which because of their duration, are not

conducive to many Indigenous people. As at December 2012, there were 300 Indigenous apprentices

and trainees within the Construction Industry, which equates to 6.5% of the apprentice/trainee

population45

.

Low rates of school attendance and participation amongst Indigenous children contribute to low

literacy and numeracy levels which in turn limit access to mainstream training options. From a labour

market perspective, retention to Year 10 is a significant step for Indigenous students with evidence

indicating that it almost doubles the chances of employment.

Construction trade training programs are a mixed success with Indigenous students as the training

can be at too high a level, such as training for apprenticeships and qualifications, when elementary

skills have not been fully developed.

The Construction Training Council recognises this and during 2010-11 developed the Certificate II

Traineeship in Building Maintenance. This traineeship provides additional funded hours in order to

address the literacy, numeracy, life and employment skills deficit. The qualification is a destination in

itself, as well as being a pathway into the trades and more complex aspects of construction as

proficiency and confidence grow. During 2011, a number of regional training providers showed

interest in adding this qualification to their scope for 2012-13 and it is now actively promoted by a

number of metropolitan training providers.

Industry stakeholders have expressed a range of opinions addressing the needs of the Indigenous

population. These include:

Provision of training in regional centres or areas with high unemployment using specific training programs rather than mainstream qualifications;

Provision of role models as mentors, such as the Fairbridge Village model of training/mentoring that utilises successful Indigenous students as trainers and mentors;

Utilising more on-the-job training rather than institutional-based;

Introducing students to the Industry through try-a-trade programs to encourage participation;

Under-represented groups need to be targeted for support with the intent of encouraging current employers of apprentices, because of their experience, to consider employing apprentices and trainees in these groups.

43

Source 2011 Census ABS DataCUBE 44 2011 ABS Census Tablebuilder data 45 DTWD TRS Data December 2012


V20141003e Page 29

6.5 Traineeships in the Industry

The following table shows the number of trainees ‘in training’ at the end of March 2014. However, there are also an additional 76 trainees in Certificate IV Civil Construction Supervision but registered as employed in the Mining and Resource sector.

Table 9 Trainees ‘In Training’

Traineeship ASSISTANT BUILDING SURVEYOR (LEVEL 5) 0

BITUMINOUS SURFACING (LEVEL 3) 4

BUILDING MAINTENANCE (LEVEL 2) 20

CIVIL CONSTRUCTION (LEVEL 2) 1

CIVIL CONSTRUCTION (LEVEL 3) 115

CIVIL CONSTRUCTION DESIGNER (LEVEL 5) 1

CIVIL CONSTRUCTION MANAGER (LEVEL 5) 1

CIVIL CONSTRUCTION SUPERVISOR (LEVEL 4) 0

CONCRETING (LEVEL 3) - (AVAILABLE AS AN APPRENTICESHIP) 0

DOGGING (LEVEL 3) 5

DRAINAGE (LEVEL 2) 6

ESTIMATING (HOUSING) (LEVEL 4) 21

GENERAL CONSTRUCTION (LEVEL 2) 31

PIPELAYING (LEVEL 3) 53

PLANT OPERATIONS (LEVEL 3) 95

RESIDENTIAL DRAFTING (LEVEL 4) 2

RIGGING (LEVEL 3) 76

ROAD CONSTRUCTION AND MAINTENANCE (LEVEL 3) 55

ROAD MARKING (LEVEL 3) 5

SCAFFOLDING (LEVEL 3) 4

SITE MANAGEMENT (LEVEL 4) 20

STEEL FIXING (LEVEL 3) 30

TRENCHLESS TECHNOLOGY (LEVEL 3) 11

Building & Construction 556

Mining & Resources Sector - Certificate IV in Civil Construction Supervision (RII40709)

76

TRS DataCUBE March 2014 Apprenticeship Data

There are currently 556 trainees in training primarily in the Civil Construction sector. It is encouraging

to see that there has been sustained growth in traineeships in recent years. In 2008 there were 450

trainees in training.


V20141003e Page 30

6.6 Civil Construction

The CCF WA has recently completed an industry survey of their members, Landcorp and Horizon

Power contractors. The results of this survey calculated indigenous employment at 3.8%. Of the

businesses surveyed, 3% were Aboriginal owned and representative of the overall population46

.

Guidelines for Aboriginal Participation in WA Civil Construction and Landscaping Industries were

established and are contained in the Reconciliation Action Plan 2012–13 (which is to be reviewed

regularly).

The Guidelines set out commitments by CCF and Landcorp and include:

Training and Induction Programs to build cultural understanding.

Development of Aboriginal employment strategies and encouragement to engage Aboriginal owned companies.

Development of a funding approach to support literacy, numeracy and work-readiness programs.

7. Employment and Training Issues

During the research and consultation process for the Workforce Development Plan a number of

common concerns were identified. These concerns were identified by stakeholders as having an

impact on the short and long-term future of the Construction Industry.

7.1 Employment Issues

Issues raised by stakeholders during consultations include:

1. The continued suppressed Construction sector.

2. Resources sector ‘siphoning’ of Construction workers without a contribution to a levy system.

3. Reduced number of students exiting school (half cohort) and rise in school leaving age.

4. Reduced numbers of pre-apprentices in skill shortage trades.

5. Previous two years of decline in apprenticeship commencements will result in reduced numbers of

skilled tradespeople in the next three to five years.

6. Increasing apprentice commencements and completions.

7. As Resource Industry engineering construction projects complete in 2014-15, there is no accurate

estimate of how many workers will move to Mining operations or return to the mainstream

Construction sector.

8. If the home building market is not stable, contractors will be reticent to employ apprentices as they

will not have the continuity of work available.

9. Although Western Australia has approximately 10% of Australia’s population, it has a

disproportionate amount of work available. Western Australia will require more skilled workers to

support the recovery in the Housing sector.

7.2. Training Providers (RTPs)

The Construction Industry continues to be concerned about the lack of consistency with delivery of

training and assessment. It also has concerns with issues relating to allocation and use of profile

funding by private training providers.

Issues raised by Industry during the consultations:

Competency-based wage progression (CBWP) issues relating to students completing year 12,

Certificate II or pre-apprenticeships must be considered as critical. Employers must become

involved in the process of assessing apprentices to address changes to the pay structure for

apprentices under the Fairwork Australia model.

46

Reconciliation Action Plan 2012-13 Landcorp


V20141003e Page 31

There should be more regulatory control and ongoing reviews of RTPs especially relating to the

assessment process. Assessment ‘on-the-job’ should be considered an integral part of confirming

apprentices are competent in the workplace.

Gaining access to on-site training, assessment and validation of on-site competence.

Review student contact hours - some RTPs appear to be taking advantage of this funding and

deliver qualifications or RPL in vastly reduced timeframes.

RTPs should deliver locally to enterprises, especially in the case of regional apprentices.

RTPs need to consult and communicate more regularly with Industry to ensure that they are

delivering the programs that Industry requires in a consistent manner across all training providers.

An independent assessment process to confer a Trade Certificate under a skills recognition

process that can also be utilised in the assessment of existing workers should be considered.

Dissatisfaction with the bureaucratic process of employing and registering apprentices with too

many organisations involved. Poor communication between organisations such as Australian

Apprenticeship Centres, ApprentiCentre and RTPs.

7.3 . New and Emerging Skills

The future will bring challenges that the Construction Industry will need to prepare for with new and

emerging technologies and skills being required. This will require more planning and training in areas

such as OHS, software and computer technology such as Building Information Modelling (BIM),

equipment, regulatory changes and new work practices.

Conclusions reached in consultation with Industry during 201447

include:

The use of modular and pre-fabricated construction is having an impact in the commercial and

regional residential sector more than in mainstream or metropolitan residential construction.

The use of driver-less trucks including excavators, is viewed by the Civil Construction sector to be

one of the most important technologies that may impact the sector in the long term. Vehicles

incorporating GPS, laser and radar detection sensors, wireless communication networks and

vehicle controllers will initially be operated by a supervisory computer in an on-site Operations

Centre. One company in Western Australia, using this technology, is planning to move the

Operations Centre to Perth where the system will be controlled 24 hours a day. In regard to safety

issues, vehicles are equipped with obstacle detection systems with the automated truck

programmed to stop or reduce speed. This technology may, in the long term, create an

employment shift due to the reduction in the use of plant operators and an increase in computer

technicians31

.

The implementation of new technologies could accelerate rapidly if housing codes (sustainability)

are raised.

New technologies may be slow to gain acceptance in the Residential sector due to the WA market

being heavily biased towards double brick construction.

There is an identified change in the use of new technology in the Commercial sector, particularly

in the North West where they are using manufactured components from overseas facilities.

Major builders could be the drivers of change if they market alternative building options, especially

in the lower end of the market (affordable housing).

No specific upgrading of trade qualifications or courses appears to be required at this stage, other

than within apprenticeship training. This requirement is usually undertaken by the Training

Package developers during review processes.

Up-skilling and cross-skilling will be needed in the future. This will possibly require the introduction

of short course skills training, or in-house training, for existing workers as there will be cross

47

The Impact of New Technologies on the Construction Industry, Construction Training Fund, June 2014


V20141003e Page 32

trades skills utilised for Modular construction. For example, up-skilling a roof carpenter to perform

wall and floor fixing, steel framing, etc.

Short course skills training can be developed and implemented within the Construction Industry

where the training occurs after completion of a trade qualification.

The share of the modular and alternative building material market could significantly increase if

more information and promotion occurs with potential homebuyers to create a better awareness of

the alternative building methods available48

.

Wet Trades, particularly bricklaying have been identified as being the most at risk. However in the

Eastern States this trade appears to remain in demand49

. This may be due to having high

volumes of brick veneer housing construction due to population demand; therefore, the number of

bricklayers will remain at current levels considering the ageing trade cohort.

There is strong evidence to demonstrate acceptance of pre-fabricated construction especially for

Park Homes, North West resources accommodation sector, regional offices (Government) and to

some extent the residential market.

The ability to utilise the local metropolitan, rather than regional workforce is identified as a strong

driver for modular pre-fabrication construction.

The level of BIM training demand will depend on the lowering of the minimum value of contract

that must use BIM.

The use of lower level BIM will increase slowly, as the start-up cost of using BIM at all levels is

currently viewed as prohibitive.

Monitor the introduction of BIM requirements for the construction workforce and establish if further

training is being developed both nationally and internationally.

In respect to the requirements of the apprenticeship training contract and the implementation of

specialised new construction processes, employers should ensure that apprentices obtain the

breadth of knowledge to complete their apprenticeship. This may require apprentices to gain

experience on other sites, as is the case with Group Training Organisations.

Strategies to cope with the changing industry could include:

Encourage RTPs to include new technologies and equipment such as BIM as part of the

Construction training program for all apprentices.

Plan and train the workforce for alternative construction methods other than double brick, for

example, modular, pre-fabricated and pre-framed construction.

Subsidise the training of new and emerging technologies in trades that will be required to meet the

demands of the future or change from current methodologies.

7.4 Workforce Development Opportunities

1. Increase VETiS activity in Construction for Years 10 to 12 with clear career pathways using the

industry approved Certificate II trade, para-professional and civil construction pathways.

2. Continue the promotion of apprenticeships as a career choice to school students.

3. Provide advice to school career advisors to ensure that all students that exit the University sector

during the first year of study have an understanding of the opportunities in the Construction

Industry. This is a time of high attrition in universities and promotional activity could utilise the

‘Earn-as-you-Learn’ as a marketing strategy.

48

The Housing We’d Choose – a study for Perth and Peel Regions. Page 19, Department of Housing/ Department of Planning (2013). 49

http://sourceable.net/plasterers-bricklayers-wanted-for-brisbane-housing-boom/

http://sourceable.net/plasterers-bricklayers-wanted-for-brisbane-housing-boom/


V20141003e Page 33

4. As workers exit resource construction projects they need to be given the opportunity to train or

retrain for entry to the mainstream Construction sector.

5. In anticipation of the return of workers to the Construction Industry in metropolitan and regional

areas, promote the opportunity for them to become trainers. This will alleviate the issue of aging

workers not being able to cope with the rigours of trade occupations

6. Less than 4% of Indigenous workers are employed in the Construction Industry. There needs to

be a more concerted effort to encourage employment in the sector, especially in the Engineering

and Civil Construction sectors in regional areas.


V20141003e Page 34

8. Industry Specific Issues and Key Strategies

The following strategies have, where possible, been placed within the Plan in the most relevant section.

8.1 Apprenticeships

Review the Commonwealth Government income tax on subsidies paid to employers of

apprentices as payment of the tax detracts from the purpose of any subsidies. The

Commonwealth Government claims 30% of the incentives in income tax.

Ensure all training contracts are registered and actioned at the earliest possible time and consider

a ‘one stop shop’ approach to the signup and completion processes and utilise the ApprentiCentre

for this process.

Promote the VETiS industry supported Certificate II trade, para-professional and civil construction

programs to employers to ease reliance on pre-apprenticeships and ensure an adequate number

of apprentices and trainees available to enter the Construction sector

Support and promote programs such as apprentice Kick-start initiatives.

Provide higher incentives for trades that are at risk with very low commencement rates.

Implement an on-site program of mentoring direct indenture apprentices using mature/retired

tradespeople. This will support the reduction of attrition in the apprenticeship.

8.2 VET in Schools

Mandate the new VETiS - Construction Trade and Para-professional pathways as the single

‘funded’ training model for all schools.

Implement the new VETiS program for the Civil Construction sector as developed in 2013-14 by

the Construction Training Fund

Support marketing and promotion campaigns aimed at achieving a much larger cohort of school

students who complete full courses of vocational education in the Construction Industry.

Approve and implement the new Plumbing VETiS Certificate II for delivery in schools and pre-

apprenticeships.

Continue to develop and implement training resources for the new Certificate II trade pathway in

Construction.

Market and promote the new para-professional and trade pathway learning resources to schools

and RTPs who have students considering a career in Construction.

Ensure teachers of Construction trades are provided with the same standard of training and, if

appropriate, industry experience as lecturers within RTPs.

Implement the Try-A-Trade component for Year 9 students unsure of their career choice.

Provide adequate ‘delivery’ funding to schools and RTPs to ensure the new VETiS programs in

Construction are implemented in schools.

8.3 Indigenous and Disadvantaged Youth in Unemployment

Simplify the process for engaging and employing apprentices and eliminate the need for consultation

with multiple agencies. This recommendation would encourage employers who have not previously

employed an apprentice or trainee and could be targeted at areas of high youth unemployment,

disadvantaged and disengaged youth. Resources Industry

Encourage the Resources Industry to reimburse or contribute to the previously expended cost of

training workers who are recruited from other industries in times of economic growth and skills

shortages.


V20141003e Page 35

Encourage the Resources Industry to train apprentices and trainees in trade occupations at the

same rate as the Construction Industry.

Provide skills gap training for mature-aged workers returning from the Resources sector to

encourage them to seek employment in the Construction Industry.

Lobby Government to require project owners to pay the training levy on all Resource sector

Engineering Construction.

Address the demand for additional labour on major resource projects prior to commencement and recognise the costs incurred by the Construction Industry in training large proportions of this labour to meet demand.

Approval for construction of Resource Industry infrastructure projects should include requirements for

targeted employment rates of apprentices and trainees which are at least the equivalent of the

Construction Industry.

8.4 Resources Industry

Encourage the Resources Industry to reimburse or contribute to the previously expended cost of

training workers who are recruited from other industries in times of economic growth and skills

shortages

Encourage the Resources Industry to train apprentices and trainees in trade occupations at the

same rate as the Construction Industry

Provide skills gap training for mature-aged workers returning from the Resources sector to

encourage them to seek employment in the Construction Industry

Lobby Government to require project owners to pay the training levy on all Resource sector

Engineering Construction.

Address the demand for additional labour on major resource projects prior to commencement and recognise the costs incurred by the Construction Industry in training large proportions of this labour to meet demand

Approval for construction of Resource Industry infrastructure projects should include requirements

for targeted employment rates of apprentices and trainees which are at least the equivalent of the

Construction Industry.

8.5 Migration

Provide assessment of trade skills prior to emigration and have skills gap training and employment

services provided on arrival in Australia. This would enable migrants to be able to enter the

chosen occupation as quickly as possible.

Encourage employers or sub-contractors who employ 457 Visa holders to employ apprentices

equal to the number of Visa holders.


V20141003e Page 36

Construction Industry - BCITF this plan to identify the current environment and challenges facing the Industry. ... to support a sustainable Construction ... Civil Construction ...

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