Apprentice Workplace Knowledge Enhancement in Post-Recession Ontario

International Network on Innovative Apprenticeship ConferenceMay 26th, 27th, 2011

In Essence:How does Ontario rapidly improve the workplace skill of its workforce in a resurging automotive manufacturing industry after the “Great Recession” using its apprenticeship system?

The Importance of Automotive Manufacturing in Canada•Automotive

manufacturing, both vehicle (OEM)and parts is the largest single manufacturing sector in Canada

•The province of Ontario is the center of Canada’s industrial manufacturing sector

The Importance of Automotive Manufacturing in Canada

•Canada is the 9th largest automotive manufacturer in the world (China is now the largest!)

•92% of Canada’s automotive related manufacturing is in Ontario

The Impact of the “Great Recession”

•During the “Great Recession” of the first decade of the 21st century, the automotive manufacturing base in Ontario declined significantly

•Automotive related employment declined from 160,000 in Q1 of 2007 to 80,000 in Q1 of 2010

•Vehicle production fell by over 1.4 million units from the highpoint in 2000 to the lowpoint in 2009

The Impact of the Great Recession

Effect on Apprenticeship - Why•Apprentice positions in automotive manufacturing

declined by more than 30% between 2006 and 2009▫Often apprentices are the first to be laid off when a

company downsizes▫Companies seldom hire new apprentices during

downsizing▫More senior journeypersons take early retirement

packages as part of the downsizing plan ▫Potential apprentices are reluctant to enter a declining

industry

The Resurgence of Automotive Manufacturing in Canada• Automotive is very cyclical – as the economy recovers people buy

cars• The cost of transporting vehicles or components from Europe or

Asia has risen dramatically with the escalating price of oil and other commodities

• The domestic markets in emerging economies have grown exponentially taking up manufacturing capacity---look at China!!

• The high Canadian $ allows for the purchase of individual components at cheaper prices – Ontario workers will assemble the larger integrated systems closer to the vehichle builder

• The instability in Mexico is hindering the location of experienced Canadian and US personnel

The Skill Shortage in Automotive Manufacturing•The Perfect Storm!

▫The lack of apprentices because of the recession▫The resurgence of the North American automotive

market▫The trend of the trades – demographically, Ontario will

experience a very high retirement of skilled tradespersons over the next decade (Milner 2009)

▫The need for cost effective production to remain competitive higher automation – less labour = higher skill

Therefore, there is an urgent need for a practical, innovative and quick approach to improve apprenticeship delivery within the automotive industry in Ontario!

The Apprenticeship System in Ontario

• Currently, centrally administered by the Ontario provincial Government

• Government sets the standards to be met by apprentices ▫Number of hours on the job (typically 9000 hours)▫Number of hours in school (typically 3 blocks of 8 weeks) ▫Standards to be achieved in both school and on the job

• Schooling is delivered by the Province’s 24 Community Colleges (like Georgian)

• Apprentices work under a licensed Journeyperson on the job ▫The Journeyperson is responsible for “judging” and “passing”

the apprentices competency

The Council for Automotive Human Resources (CAHR)• CAHR is a “sector council” funded by the Canadian

government and comprised of stakeholders from the automotive industry

• CAHR’s mission is to help Canada’s automotive industry improve the skills of its human resources

• The industry asked CAHR to determine a way to improve the skills of its workers through apprenticeship to meet the demands of the resurging market

• CAHR undertook a project to determine the current status of apprenticeship in Ontario, then look at best practices and recommend a solution to improve it

What CAHR Found Out - Issues with the Current Apprenticeship System• Particularly for small and medium sized businesses:

System is complex and highly administrative There is a loss of productivity during the 8 week school block There is very little flexibility with the school scheduling There is very little standardization among journeypersons as

to assessment of Apprentices On-the-job experience can be very limited at smaller

employers The system is expensive, especially for smaller employers The current curriculum and on-the-job training standards is

acceptable

What CAHR Found Out – Best Practice Research•CAHR researched several other prominent systems in

other North American, global jurisdictions•Of particular interest was the systems employed in

North Carolina,northwest UK and North Wales▫Multi- employer cooperation▫Third party administration and coordination▫Excellent structure to the evaluation by Journeypersons

of on-the-job performance of Apprentices▫Ability to implement such a system within the current

Ontario regulatory framework

The Basis for an Enhanced Delivery System in Ontario•Add flexibility to in-school delivery (day-release, etc)• Implement more frequent , structured assessment of

the Apprentice on-the-job performance• Introduce mentor training for Journeypersons•Transfer the administrative burden away from the

employer (to CAHR)• Introduce a rotational system of on-the-job training

through an appropriate group of employers to broaden the experience

Georgian College as the Pilot Institute

•Georgian is centrally located to much of Ontario’s automotive industry

•Georgian maintains the Center for Automotive Parts Expertise (CAPE) and is well known in the automotive industry

•Georgian has a highly respected apprenticeship delivery system

•Georgian is flexible and innovative

The Automotive Supply Chain – A Seating Product Example

Tier 3 Tier 2 Tier 1.5 Tier 1 OEM

The Supply Chain Approach-Why• Automotive supply chains are highly integrated and homogeneous

▫ Integrated quality, production and logistics systems already exist▫ Generally geographically close (Tier 2 to the OEM)▫ Employers are much more likely to participate because of mutual

interests• Apprentices gain a much wider experience and perspective within

their industry▫ They can assist with problem solving and quality improvement by

knowing processes at either their supplier or customer▫ Offers greater mobility for the journeyperson over the length of his/her

career• Employers within a supply chain tend not to recruit from each other,

therefore providing greater stability and trust

The Supply Chain Model – Industrial Electricians from a Seating Supply Chain

Vehicle Assmbler

(OEM)

Paint Dept 2 Stamping Dept 2Machining Dept 2 Assembly Dept 2

Seat Complete Assembler

3

Foam And Fabric Supplier

2 Tier 1.5

Tier 2

Tier 1.5

Tier 1

Seat Hardware Supplier

2

Sub-Components1

Tier 2Sub-Components1

Tier 2Sub-Components1

•18 Industrial Electrician Apprentices will be selected to participate from the supply chain•Georgian will customize the in-school scheduling to the requirements of the chain of employers (i.e. day release, two-day block etc.)•CAHR will provide third party administration of the project

In Conclusion……The Benefits•The system will work within the current regulatory

framework and union collective agreements•The system can be implemented relatively quickly•The system can be implemented incrementally•The system optimizes the current curriculum and on-

the-job standards•The system addresses the fundamental concerns of

employers•The system is highly beneficial to the Apprentice