The apprenticeship and traineeship system’s … · NCVER Report 3 final Page 3 ... The apprenticeship model combines a contract of training with a contract of ... for the apprenticeship

NCVER

The apprenticeship and traineeship system’s relationships with the regulatory environment

Rep

ort 3

© Commonwealth Government, 2011

ISBN PDF 978-0-642-78011-9

ISBN RTF 978-0-642-78012-6

This work has been produced by the National Centre for Vocational Education Research (NCVER) on

behalf of the Australian Government and state and territory governments with funding provided through

the Australian Department of Education, Employment and Workplace Relations. Apart from any use

permitted under the CopyrightAct 1968, no part of this publication may be reproduced by any process

without written permission of the Commonwealth.

The views and opinions expressed in this document are those of the author(s) and do not necessarily

reflect the views of the Australian Government, state and territory governments or NCVER.

NCVER ref: DMS# 99763

January 2011

NCVER Report 3 final Page 3

Contents

Tables and figures 4

Overview 6

The role of licensing in the apprenticeship system

Introduction 10

The licensing framework 11

Licensing, qualifications and apprenticeships 17

Conclusions 22

References 23

Appendix: Occupations that do or may require licensing 24

Award structures

Introduction 30

Employment arrangements of apprentices and trainees 32

Award wage rates and relativities 35

Trainees 35

Apprentices 39

Pay rates for adult apprentices 42

Consideration of other factors 44

School-based apprentices 45

Allowances 46

Competency-based progression 48

Identifying over-award payments 50

Method 50

Extent of over-award payments 53

Final comments 57

References 58

Appendix 59

Legislative and quality assurance arrangements

Introduction 76

Legislation 77

The specific role of apprentice and trainee legislation 77

Quality assurance 81

The players 81

The training contract and the training plan proposal 82

The AQTF 83

References 88

Appendix: Some thoughts on quality assurance and the AQTF 89


Tables and figures

The role of licensing in the apprenticeship system Table 1 Arrangements for electrical licensing in Australia 14

Table 2 Licensing arrangements for selected occupations 15

Table 3 Licensing, apprenticeship and traineeship numbers and qualifications minor occupational groups relevant to VET 17

Table 4 Number of commencing apprentices and trainees for 2006 by occupational group and sorted by size 20

Table A1 Occupations that do or may require registration or licensing 24

Figure 1 Generic industry licensing architecture 11

Figure 2 Regulatory risk management approaches 13

Award structures Table 1 Apprenticeship contracts by employment instrument, 2009

commencements 33

Table 2 Training wage schedule rates of pay, as proportion of National Minimum Wage, July 2010 36

Table 3 Wage levels as proportion of National Minimum Wage for certificate IV traineeships, July 2010 37

Table4 Wage levels as proportion of National Minimum Wage for school-based traineeships, July 2010 37

Table 5 Proportion of employees in typical trainee occupations reliant on minimum rates of pay 38

Table 6 Apprentices in trades occupations with main relevant modern award(s) 40

Table 7 Apprentice wage ratios by year for selected Awards (4 year apprenticeships) 41

Table 8 Apprentice wage ratios for three year apprenticeships 41

Table 9 Pay ratios for adult apprentices 42

Table 10 Formula for calculating pay rates for adult apprentices, selected awards 43

Table 11 Formula for calculating pay rates for adult apprentices, Manufacturing and Associated Industries and Occupations Award 2010 and related awards 43

Table 12 Formula for calculating apprentice wage rate based on highest year of schooling 44

Table 13 Incidence and examples of tool allowance provisions for apprentices in modern awards 47

Table 14 Apprentice and trainee completions in trade occupations,6 certificate III or above, by duration of training, 1999–2009 (%) 48

Table 15 Trainees in-training as at 31 December 2009 by wage level 52

Table 16 Apprentice average weekly income and award over-payment by selected characteristics 54


Table 17 Trainee award over-payment by characteristics 56

Table A1 Modern awards and their inclusion of apprentice rates of pay, Training Wage Schedule and School Based Apprentices Schedule 59

Table A2 Pay ratios for 4-year apprentices 62

Table A3 Wage levels for Apprentices—Queensland 64

Table A4 Wage Levels for trainees—Queensland 65

Table A5 List of pre-reform awards and NAPSAs used for calculating apprentice rates of pay 66

Table A6 Award rates of pay by award and stage 69

Table A7 Adult apprentice rates of pay 71

Table A8 Wage level definitions for traineeships based on occupation, industry and sector of employment 72

Table A9 Trainee wage rates used in the analysis 74


Table 1 Indicative good practice for RTOs delivering training to apprentices noted in the WA good practice guide 84


Overview Apprenticeships and traineeships are based on a legal contract—the contract of training—between an individual, an employer and a training provider. However, the contract of training is but one part of the legal or regulatory framework that impinges on apprenticeships and traineeships, and it is this framework that is the subject of this report. The report comprises three separate papers: the licensing system; award structures; and legislative, institutional and quality assurance arrangements.

The first examines the role of licensing in the apprenticeship system. It considers whether certain occupations mandate a licence and whether this has an effect on apprenticeship and traineeship numbers. Our conclusion is that licensing may be an issue for the labour market but is not really an issue for the apprenticeship and traineeship system. In general one does not have to complete an apprenticeship or traineeship to obtain an occupational licence, and there are many apprenticeships and traineeships providing training for non-licensed occupations.

The second considers aspects of award structures and implications for apprentice and trainee rates of pay. The apprenticeship model combines a contract of training with a contract of employment and as such involves two regulatory systems: the training system and the industrial relations system. The new Fair Work industrial relations system has consolidated coverage into 122 modern awards, 95 of which contain the Training Wage Schedule and 45 of which provide for the employment of apprentices. Considerable diversity in apprentice pay and conditions remains and it is as yet unclear whether the new framework can be more adaptive in response to issues such as the expansion of apprenticeships and traineeships into new areas, competency-based wage progression, and the recognition of previous training and qualifications.

Low rates of award pay for apprentices have been targeted as dissuading young people from starting an apprenticeship as well as contributing to low completion rates, but this criticism assumes that few apprentices receive above-award payments. Analysis of data from the 2009 ABS Survey of Education and Training finds that over-award payments for apprentices are common, especially in the electro-technology and automotive and engineering trades. Larger businesses are more likely than smaller organisations to pay above award and there are few differences between apprentice pay in metropolitan and regional areas. Most trainees also receive over-award payments, particularly existing workers, older trainees and male trainees. In most cases, the relevant award wage for apprentices and trainees is below the national minimum wage. Even after taking into account above-award payments, a majority of apprentices, as well as most young trainees and most female trainees, earn less than the minimum wage.

The final paper outlines the legislative and quality assurance arrangements for apprenticeships and traineeships, and includes consideration of the Australian Quality Training Framework (AQTF). The first point to be made is that the legislative framework’s main function is to specify the circumstances in which an apprenticeship or traineeship can be created. This is important because the creation of an apprenticeship or traineeship means that the employer can access the award provisions pertaining to training wages (i.e. can take advantage of lower wages) and the support provided by government. This implies that it is preferable for an employer in some circumstances to take on an apprentice or trainee rather than an employee who is governed by standard arrangements. However, there is little in legislative arrangements that impinges on the quality of apprenticeships and traineeships, although they do provide for training plans, which are an important feature of apprenticeships and traineeships. The issue of quality is pretty much left to the AQTF regulatory arrangements, which apply to apprenticeships and traineeships in exactly the way that they apply to all training provided within the AQTF, although the state authorities do use the training plans in their quality assurance arrangements, and the field forces


(which vary in size and activity by state) do provide some pastoral care. At the end of the day, the quality of apprenticeships and traineeships will depend on the culture of the employers and training providers, with state field forces also playing a role.


The role of licensing in the apprenticeship system

John Stanwick


Introduction Licensing and regulation is introduced into occupations where governments believe that market forces will not adequately address certain risks—typically reasons related to safety but also consumer transactions, environmental protection and other reasons. Licensing arrangements can also be promoted by incumbents in an occupation as a way of protecting wages and conditions. There are many occupations that have some sort of licensing arrangements. For many of these there are training requirements that lead to or contribute to a licence. By extension, the apprenticeship system may be a relevant pathway to a licence.

The extent of training requirements varies by the type of license in place. Eikenloff and Porter (2003) discuss three types of license in terms of training issues. The first type is referred to as occupation-based licensing and generally requires a full qualification for the issue of a license. Occupations such as electricians and plumbers fall under occupational licensing. The next type of licensing is referred to as portional occupation-based licensing and here the license forms part of the work of an occupation. For example, pest controllers may be licensed to use certain pesticides but not all. The final type of licensing mentioned is known as activity-based licensing. This often relates to an area of risk or the operation of a piece of equipment, for example, driving a train or a bus or using a forklift. It can in some instances involve a full qualification but more often it does not. We can see then that the type of license has implications for the training required1. For some types of licensing, particularly occupational licensing in the trades area, apprenticeships may be an appropriate pathway, but not necessarily for some of the other types of licensing, where the training requirements are much more limited or specific (e.g. driving a forklift) or where it is more efficiently done off the job. Even where an apprenticeship might be an appropriate pathway, it does not follow that an apprenticeship is a necessary condition for a licence.

The approach taken in this paper to address the links between licensing and the apprenticeship and traineeship system is as follows. Firstly, the general system of licensing and regulation in Australia is examined. This will explain how licenses are obtained, the various types of licenses and training required. We find that there is only a loose relationship between licensing and apprenticeships and traineeships, even for those occupations requiring a license. The remainder of this paper elaborates on this lack of connection. We look at the qualification distribution by occupation and show that even in licensed occupations there are many working without the appropriate qualification. For the licensed occupations we also tabulate from the National VET Provider Collection database the split between apprenticeships and other students. Finally we show the split between licensed and non-licensed occupations for apprenticeships and traineeships.

Our conclusion is that licensing may be an issue for the labour market but is not really an issue for the apprenticeship and traineeship system. In general one does not have to complete an apprenticeship or traineeship to obtain an occupational licence, and there are many apprenticeships and traineeships providing training for non-licensed occupations.

1 We exclude from our analysis of licences the ‘white card’ required by construction workers as proof of basic safety induction

training (<http://www.safework.sa.gov.au/show_page.jsp?id=7429>). This comprises a single unit of competency on general safety,

a site induction and task-specific safety training (see code:

<http://www.ascc.gov.au/ascc/AboutUs/Publications/NationalStandards/NationalCodeofPracticeforInductionforConstructionWo

rk.htm>)


The licensing framework Before we examine data on licensing and apprenticeships it is useful to examine the general framework for the issuing of licenses as this will also inform the types of training requirements necessary for a licence. The framework for the issuing of licences is outlined below. The framework begins with the government deciding the need to introduce a license and ends with the issuing of a license. While the framework is taken from a 2002 publication it is still relevant to how the licensing system currently operates. After explaining the main elements the concepts will be illustrated by a few current licensing arrangements.

Figure 1 Generic industry licensing architecture

Source: ANTA (2002).

Parliament/Government

PrimaryLegislation Subordinate

Legislation

Licensing Authority

Licensing Requirements

Assessm

ent

CompetencyBased

Other

Licence / Permit /Certification / etc


We see from the diagram that there are four main elements to the arrangements. These are discussed in turn:

Parliament/government and legislation: as discussed previously, licensing is introduced by state and territory governments where there is deemed to be market failure in regards to certain public risks. The primary way of addressing these risks is through the passing of legislation that introduces standards, controls, restrictions and the like on industry and the community. In terms of occupational licensing, the legislation imposes controls on undertaking certain activities or practising certain professions.

Legislation can be primary (Acts of parliament) or subordinate (rules and regulations etc.). Primary legislation outlines the policy and principles of the legislation, whereas the subordinate legislation deals with the administrative details.

The licensing authority: there are two main forms of institutional arrangements for industry regulation. The first is that the licensing authority is part of a government agency. The second type of licensing authority is independent industry regulatory bodies. If we use the example of electricity from table 1, we see that, while across most jurisdictions, government departments are the licensing body (e.g. the Department of Justice in Queensland and Tasmania); in the Northern Territory it is the Electrical Workers and Contractors Licensing Board. Both forms of industry regulators are generally accountable to a government minister.

Licensing requirements: these requirements are reflected in legislation and can include both competency related and non-competency-based requirements. Examples of competency-related requirements are possession of trade or tertiary qualifications (sometimes from specific institutions) and possibly through an apprenticeship pathway; completion of a training package qualification or part thereof, completion of a training course through the VET sector; or demonstration of knowledge and skills through examinations determined by the regulator.

Examples of non-competency-based requirements include insurance requirements, financial capacity requirements, industry experience requirements, age requirements and fit and proper person requirements. Note that these requirements often do not apply to people undertaking the qualifications for the licence but are more in the nature of business or social characteristics.

The licence: the licence can be issued at various levels as illustrated in figure 2.


Figure 2: Regulatory Risk Management Approaches

Source: ANTA (2002).

As we can see from figure 2, licensing can range from licensing an entire business to licensing an individual within the business. At which point the licence will be targeted depends on several factors, including the nature of the industry, the nature of the risk the licensing is aimed at, the risk profile of the government or industry regulator, and the resources available to the regulator.

There are two main types of license that are issued. The first is a physical licence that is issued subject to entry requirements such as those listed previously. The second can be termed an implied licence and has specific requirements (such as qualifications) but where no physical licence exists. An example of a non-physical licence is the Australian Securities and Investment Commission (ASIC) licence for carrying out certain types of financial services such as providing financial product advice or dealing in financial products. The person is therefore deemed to have the license by virtue of having the appropriate qualification.

As an illustration of this framework tables 1 and 2 provide basic-level information on licensing arrangements for a handful of occupations. Table 1 examines arrangements across all states and territories for a traditional trade—electricians—and table 2 examines arrangements for a variety of other occupations in a given jurisdiction.

Risk Control Point Licensing Type

Business

Principals

Supervisors

Individuals

Licensing of Business Entity- applies to entity, not persons- non-competency based requirements

Licensing of Business Principal(s)- non-competency based requirements- competency based requirements

Licensing of Supervisors- some non-competency based requirements- competency based requirements

Licensing of Individuals- some non-competency based requirements- mainly competency based requirements


Table 1 Arrangements for electrical licensing in Au stralia

State Name of licensing body

Primary legislation

Types of licence Qualification requirements for an electrician

Western Australia Electrical licensing board (Energy Safety)

Electricity Act 1945

Electricity (Licensing) regulations 1991

Electrical contracting

Electrical installing

Electrical training

Restricted electrical

Essential performance capabilities as agreed by the National Uniform Electrical Licensing Council

New South Wales Department of Fair Trading

Home Building Act 1989

Electricity (Consumer Safety) Act 2004

Contractor

Qualified supervisor certificate

Nominated supervisor (on contractor licence)

Achieved through various (six) pathways including apprenticeship and trade qualification.

Some need a certificate from the Vocational Trade Tribunal2

Australian Capital Territory (ACT)

Building, electrical and plumbing control (ACT Planning and Land Authority)

Construction occupations (licensing ) Act 2004

Electrical contractor

Unrestricted electrician’s

Restricted electrician

There are a variety of ways the qualification for the licence can be obtained, including through an apprenticeship or a trade certificate

Northern Territory Electrical Workers and Contractors Licensing Board

Electrical Workers and Contractors Act (2009)


Electrical worker

Restricted licence

Mainly though an apprenticeship

Queensland Department of Justice, Fair and Safe Work

Electrical Safety Act 2002


Various electrical worker

Restricted electrical work

Training permit

Mainly through an apprenticeship

South Australia Office of Business and Consumer Affairs

Plumbers, Gas Fitters and Electricians Act 1995


Restricted

Registered workers

The appropriate vocational qualification approved by the Commissioner and certain certificates of competency issued by the Industrial and Commercial Training Commission

Tasmania Department of Justice (Workplace Standards Australia)

Occupational Licensing Act 2005

Practitioner (electrical work)

Electrical contractors

Completed a relevant training package qualification and completed 12 months experience in the practical application of AS3000 and completed equivalent of 4 years relevant experience

Victoria Energy Safe Victoria Electrical Safety Act 1998

Electrical inspector


Electrician

Electrical worker

Supervised worker

Restricted electrical worker

Completion of an apprenticeship (cert III) and completed the Licensed Electrician’s Assessment conducted by Energy Safe Victoria or equivalent

Source: The various electrician licensing authorities across Australia

2 The Vocational Training Tribunal (VTT) is a statutory body in NSW responsible for trade skills recognition, resolving complaints and disputes and considering applications for the transfer, suspension, cancellation and variation of apprenticeships and traineeships (NCVER online glossary, viewed August 2010, < http://www.ncver.edu.au/resources/glossary/about_the_glossary.html,>)


Table 1 shows that there are quite a lot of similarities in arrangements across the states. In terms of qualification requirements, while the apprenticeship system is the main pathway in some states, in other states there are other pathways, that is, the apprenticeship pathway is not necessarily a compulsory pathway to becoming a licensed electrician. It is also worth noting in terms of the Council of Australian Governments’ (COAG) agreement on mutual recognition, if one state permits licensing without an apprenticeship then de facto all the states do. The table also illustrates the point that the licence can be targeted at various risk points, ranging from the business through to the individual.

Table 2 Licensing arrangements for selected occupat ions

Occupation Name of licensing body

Primary legislation

Types of licence Qualification requirements

Plumber (Victoria) Plumbing Industry Commission

Building Act 1993

The Victorian Plumbing Regulations 2008

Registration

Licence

Generally through the completion of a plumbing apprenticeship but may also gain registration or licensing with a minimum and of four years experience and satisfy the Qualifications and Experience Review Committee (QERC) of competence.

Security (NSW) NSW Police Security Industry Act 1997

Class I

Class 2

Master

Various firearms licences

For class I/2: various units of competency by an RTO approved by the Commissioner

For Master: certificate IV level qualification

For firearms: safety training course

In addition to competency requirements there are also various other personal requirements such as being a fit and proper person.

Financial Services (Commonwealth)

Australian Securities and Investment Commission (ASIC)

Corporations Act 2001

Various licences such as a dealer’s licence, investment advisors licence or Broker’s licence

The qualification licence can vary depending on licence and level of responsibility. Can range from certificate III to degree.

Child care worker –centre based(Queensland)

Office of Early Childhood Education and Care

Child Care Act 2002

Child Care Regulations 2003

Licenses can be issued to entities or individuals and there are prescribed qualification requirements in regards to :

• assistants

• group leaders

• directors

For assistant: certificate III/IV or a 1 year qual. in early childhood or child care studies, or a qualification for a group leader

For group leader: a diploma or 2-year qualification in early childhood or child care studies or a qualification for a director

For a director: an advanced diploma or a 3-year qualification in early childhood studies or child care studies, or at postgraduate qualification of at least one year in childhood studies or childcare studies.

Source: Various licensing body websites.

Table 2 shows that while the selected occupations all have a licensing body and legislative backing, the licensing arrangements vary by occupation. We see for instance that in plumbing the path to a license is generally through an apprenticeship, while for some of the service based occupations such as financial services the focus is on completion of a qualification (institution based). In the security industry not all classes of licences need a full qualification and in the case of child care, entities must be licensed and individuals can be licensed.


In summary, the main features that arise from the description of the licensing system in Australia are that:

� While there is a general framework for licensing, arrangements vary by occupation and within that by state/territory.

� Most licensing requires some training arrangement. For occupational licenses a whole qualification is generally required, whereas for some other types of licensing a whole qualification may not be required.

� Apprenticeships would seem to be a relevant pathway to licensing in some occupations, particularly where the training requirements are considerable and have an on-the-job component (for example, in the traditional trades), but is not necessarily appropriate to all types of licensing, where it may be more efficient to do the training off the job (e.g. security and finance).

� The completion of an apprenticeship does not result in a licence, even when there is an implied link.

The next section examines in more detail data on licensing, qualifications and apprenticeship.


Licensing, qualifications and apprenticeships

This section looks at some data on licensing and apprenticeships and qualifications profile by occupation. We find that there is no clear link between licensing and apprenticeships. There are a few reasons for this, primary among which is that apprenticeship training is not mandated for most licensing regimes.

Table 3 shows this lack of direct link. The table looks at, for various 3-digit occupational groups, the proportion of people within that occupational group who hold a certificate III level qualification or higher as their highest qualification level (from 2006 census data), the numbers of students enrolled as apprentices/trainees by comparison with other students for that occupational group, the proportion of all students enrolled as an apprentice/trainee, and finally whether there may be some licensing requirements within that occupational group.

In our analysis we are mainly interested in occupational licensing. Occupational licensing is more likely to occur at the higher occupational levels (such as professionals, and technician and tradespersons), while part or activity-based licensing is more likely to occur at the lower occupational levels (although not exclusively).

Table 3 Licensing, apprenticeship and traineeship n umbers and qualifications minor occupational groups relevant to VET*

Occupation Cert. III+ (%)

No. apprent./ trainees

No. other students

% apprent./ trainees

May involve some

licensing

121 Farmers and farm managers 28.9 1,193 10,358 10.3

131 Advertising and sales managers 62.6 3 1,497 0.2

132 Business administration managers 71.1 590 26,520 2.2

133 Construction, distribution and production managers 62.5 398 10,457 3.7 √

134 Education, health and welfare services managers 90.4 2,126 44,372 4.6 √

141 Accommodation and hospitality managers 40.6 92 12,539 0.7 √

142 Retail managers 34.9 47 1,719 2.7 √

149 Miscellaneous hospitality, retail and service managers 52.0 122 8,207 1.5 √

222 Financial brokers and dealers, and investment advisers 68.3 7 640 1.1 √

311 Agricultural, medical and science technicians 58.1 680 7,845 8.0 √

312 Building and engineering technicians 71.5 1,308 30,582 4.1 √

313 ICT and telecommunications technicians 63.3 2,129 19,512 9.8

321 Automotive electricians and mechanics 73.4 20,733 6,343 76.6 √

322 Fabrication engineering trades workers 62.8 12,296 3,342 78.6

323 Mechanical engineering trades workers 78.8 12,654 11,087 53.3 √

324 Panel beaters, and vehicle body builders, trimmers 68.1 4,495 931 82.8 √

331 Bricklayers, and carpenters and joiners 66.0 25,195 4,349 85.3 √

332 Floor finishers and painting trades workers 54.1 3,096 4,769 39.4 √

333 Glaziers, plasterers and tilers 48.3 4,551 916 83.2 √

334 Plumbers 74.2 10,335 6,635 60.9 √

341 Electricians 79.2 22,426 9,573 70.1 √




No. other students


May involve some

licensing

342 Electronics and telecommunications trades workers 62.8 4,789 4,623 50.9 √

351 Food trades workers 49.8 16,669 10,109 62.2

361 Animal attendants and trainers, and shearers 30.7 1,141 6,029 15.9 √

362 Horticultural trades workers 46.7 4,901 8,634 36.2

391 Hairdressers 76.9 11,207 1,872 85.7

392 Printing trades workers 62.1 1,401 1,099 56.0

393 Textile, clothing and footwear trades workers 42.5 340 2,817 10.8

394 Wood trades workers 60.4 4,451 1,897 70.1

399 Miscellaneous technicians and trades workers 56.5 2,359 17,358 12.0 √

411 Health and welfare support workers 73.1 2,556 37,423 6.4 √

421 Child carers 46.4 6,132 16,056 27.6 √

422 Education aides 40.6 917 7,193 11.3

423 Personal carers and assistants 44.8 8,851 40,280 18.0 √

431 Hospitality workers 24.1 16,046 77,786 17.1

441 Defence force members, fire fighters and police 58.3 132 5,825 2.2 √

442 Prison and security officers 38.0 1,179 3,219 26.8 √

451 Personal service and travel workers 54.6 2,868 23,220 11.0 √

452 Sports and fitness workers 41.3 1,129 10,854 9.4 √

511 Contract, program and project administrators 64.6 283 8,163 3.4

512 Office and practice managers 39.6 4,659 16,200 22.3

521 Personal assistants and secretaries 29.9 0 147 0.0

531 General clerks 31.5 18,555 58,684 24.0

532 Keyboard operators 29.7 205 33,308 0.6

541 Call or contact centre information clerks 39.5 8,443 3,346 71.6

542 Receptionists 26.7 169 2,072 7.5

551 Accounting clerks and bookkeepers 36.1 281 18,480 1.5

552 Financial and insurance clerks 36.1 1,588 4,017 28.3 √

561 Clerical and office support workers 30.4 1 1,503 0.1 √

591 Logistics clerks 34.2 1,090 3,034 26.4

599 Miscellaneous clerical and administrative workers 47.0 1,605 9,533 14.4 √

611 Insurance agents and sales representatives 40.8 268 713 27.3 √

612 Real estate sales agents 48.9 1,329 10,130 11.6 √

621 Sales assistants and salespersons 20.6 33,982 15,801 68.3

631 Checkout operators and office cashiers 12.8 0 0 0

639 Miscellaneous sales support workers 31.7 4 463 0.9

711 Machine operators 24.4 2,536 2,689 48.5

712 Stationary plant operators 33.6 1,591 11,541 12.1

721 Mobile plant operators 22.2 2,205 5,175 29.9 √

731 Automobile, bus and rail drivers 34.5 385 2,039 15.9 √

732 Delivery drivers 24.1 5,879 5,276 52.7 √

733 Truck drivers 23.7 0 219 0.0 √

741 Storepersons 21.8 6,335 5,454 53.7 √

811 Cleaners and laundry workers 18.5 4,926 3,439 58.9




No. other students


May involve some

licensing

821 Construction and mining labourers 28.3 1,549 26,509 5.5

831 Food process workers 20.8 9,584 7,861 54.9 √

832 Packers and product assemblers 17.7 753 3,863 16.3

839 Miscellaneous factory process workers 21.9 1,328 21,057 5.9

841 Farm, forestry and garden workers 23.1 3,245 29,049 10.0

851 Food preparation assistants 13.6 527 13,135 3.9 √

891 Freight handlers and shelf fillers 15.5 303 450 40.2

899 Miscellaneous labourers 29.8 2,653 23,765 10.0 Source: NCVER’s National Provider Collection, students and courses 2007 data, and ABS 2006 census data online, *Note that the apprentice and student numbers are from 2007 as ANZSCO information on students was not yet available in 2006. However this does not deflect from the argument that we are making.

As mentioned, one of the main reasons for the lack of a direct link between licensing and apprenticeships is that apprenticeship training is not mandated for most licensing regimes. If we refer to the example of electricians in table 1, we see that while apprenticeship training is the main pathway in some states, there are other pathways to the qualification available in other states. Table 2 also indicates that apprenticeship training is not mandated for licensing. Further, we can see from table 3 that even in licensed occupations there are considerable numbers without certificate III level or above qualifications.

Secondly, if we look at the traditional trades, licensed occupations (including electricians, automotive electricians and mechanics, and plumbers) have high numbers of apprentice/trainee students by comparison with other students but so do other traditional trades that do not have any licensing requirements, such as fabrication engineering trades workers, food trades workers, and hairdressing. Clearly, there are other factors that sustain high training rates in these occupations. These could be related to the type of work, the requirement for on-the-job training, cultural and historical factors, or a combination of all of these.

It is also worth mentioning that the three occupational groupings within trade and technicians that are technician occupations have low proportions of students taking the apprenticeship route. Although two of these three technical occupational groupings may have some licensing requirements, it would appear that the requisite qualifications are obtained in other ways (probably an institutional pathway).

Some of the growing service sector occupations require licensing but few have high numbers of apprentice/trainee students. Financial brokers and dealers and investment advisers, health and welfare support workers, child carers and personal carers and assistants, prison and security officers, and personal service and travel workers all may require licensing but have relatively small proportions of students who are apprentices/trainees. In the non-trades occupations that require occupational licensing there are other factors at play. For example, the introduction of the Financial Services Reform Act (2004) requires that businesses providing financial services hold an ‘Australian Financial Services Licence’.3 However, there is no tradition of apprenticeship training within this industry, as is reflected by there being virtually no students who are apprentices/trainees for this occupational group (222 Financial brokers and dealers, and investment advisers) in table 3. We see however that quite a large proportion of people in this occupational group hold a certificate III level qualification or higher (about 68%). One could argue that the required qualifications are more efficiently obtained through an institutional pathway.

3 See <http://www.bankers.asn.au/Default.aspx?ArticleID=903>.


Another example of a licensed non-trades occupational group with low proportions of students taking the apprenticeship/traineeship pathway (6.4%) is 411 Health and welfare support workers (which includes enrolled and mothercraft nurses). What we see, however, is a high proportion of people in this occupation with certificate III or higher levels qualifications (73%—the highest among community and personal service workers). What this means is that the licensing arrangements in this occupational group would influence the qualification profile, but not apprenticeship/traineeship training.

We need to keep in mind that the numbers of people actually licensed in an occupation may also not be reflective of the census data on that occupation. There will be cases, for instance, where the licensing takes place above the level of a particular individual (refer back to figure 2). Even in the case of occupations such as electricians (where about 20% do not have certificate III or higher-level qualifications), there will be those who are not licensed but whose work is supervised by a licensed electrician.

Another point to make is that not all types of licensing require qualifications. While we focus mainly on occupational licensing, we saw that activity-based licensing (e.g. operation of a piece of equipment) does not necessarily require a qualification and therefore would be of little relevance to the apprenticeship/traineeship system. We see for instance that 712 Stationary plant operators has a fairly low proportions of students who are apprentices/trainees (about 12%) and, further, the qualification profile for this occupation indicates that only about a third have certificate III or higher qualifications. The training for some of these occupations may require only the completion of certain units of competence or the training may take place outside the formal VET system.

Table 4 shows the number of commencing apprentices for the same occupational groups as in the previous table, ordered by size of number of commencing apprentices and trainees. Occupations with an asterisk alongside them are those where some licensing arrangements may apply.

Table 4 Number of commencing apprentices and traine es for 2006 by occupational group and sorted by size

Occupation No. of Commen.


621 Sales assistants and salespersons 37805 313 ICT and telecommunications technicians 1548

531 General clerks 15223 839 Miscellaneous factory process workers 1428

512 Office and practice managers 15214 712 Stationary plant operators 1368

431 Hospitality workers 14632 399* miscellaneous technicians and trades workers 1296

741 Storepersons 10439 821* Construction and mining labourers 1196

331* Bricklayers, and carpenters and joiners 10412 452* Sports and fitness workers 1147

831 Food process workers 10223 832 Packers and product assemblers 956

351 Food trades workers 9277 121 Farmers and farm managers 915

423* Personal carers and assistants 8857 311* Agricultural, medical and science technicians 906

541 Call or contact centre information clerks 8610

134* Education, health and welfare services managers 886

321* Automotive electricians and mechanics 8340

361* Animal attendants and trainers, and shearers 823

732* Delivery drivers 8216 611* Insurance agents and sales representatives 750

341* Electricians 7871 392 Printing trades workers 670


Source: NCVER Apprentice and Trainee Collection no. 63 (March 2010 estimates).

We see that, of the ten occupations with the highest numbers of commencing apprentices only two have any licensing requirements (bricklayers, carpenters and joiners; and personal carers and assistants). We see, in contrast, that financial brokers and dealers, as an example of a licensed occupation, had no commencing apprentices in 2006.



711 Machine operators 5934 422 Education aides 565

322 Fabrication engineering trades workers 5615 511 Contract, program and project administrators 558

391 Hairdressers 5374 851 Food preparation assistants 544

323* Mechanical engineering trades workers 4937

393 Textile, clothing and footwear trades workers 301

334* Plumbers 4904 441* Defence force members, fire fighters and police 301

421* Child carers 4430 532 Keyboard operators 183

552* Financial and insurance clerks 3768 731* Automobile, bus and rail drivers 174

411* Health and welfare support workers 3106 551 Accounting clerks and bookkeepers 171

841* Farm, forestry and garden workers 3099 149* Miscellaneous hospitality, retail and service managers 166

362 Horticultural trades workers 2876 142* Retail managers 154

899 Miscellaneous labourers 2873 312* Building and engineering technicians 149

442* Prison and security officers 2678 891 freight handlers and shelf fillers 115

591 Logistics clerks 2496 133* construction, distribution and production managers 113

342* Electronics and telecommunications trades workers 2477 542 Receptionists 95

333* Glaziers, plasterers and tilers 2469 131 Advertising and sales managers 51

451* Personal service and travel workers 2390 639 Miscellaneous sales support workers 27

599* Miscellaneous clerical and administrative workers 2317 141* Accommodation and hospitality managers 7

324* Panelbeaters, and vehicle body builders, trimmers and painters 2196

222* Financial brokers and dealers, and investment advisers 0

394 Wood trades workers 1969 521 Personal assistants and secretaries 0

721* Mobile plant operators 1943 561* Clerical and office support workers 0

332* Floor finishers and painting trades workers 1601 631 Checkout operators and office cashiers 0

612* Real estate sales agents 1577 733* Truck drivers 0


Conclusions This paper has examined the basis for licensing arrangements in Australia. We see that, while there are similarities across occupations in terms of the need for underlying legislation and licensing bodies, there are differences in terms of the types of licenses that are issued and the ways in which the requirements of a licence can be achieved. A broad analysis of data on licensing in occupations, the qualification profiles of occupations and the extent of apprenticeship arrangements in occupations results in the following observations:

� There is no clear link between licensing and apprenticeships. Licences in occupations may be achieved through apprenticeships (and in some cases is the general pathway) but not necessarily. The use of apprenticeships seems to be more prevalent in some occupations than others.

� Apprenticeships for licensed occupations seem to be more suitable in the traditional trades because of the amount of time it takes to get the appropriate qualifications and on-the-job experience for these occupations—about four years.

� Even so, the structural arrangements and culture within an occupation may have more to do with apprenticeship pathways than any licence requirement. In some occupations, institution-based methods may be a more appropriate and efficient way to obtain the qualification for the licence.

� Licensing arrangements are more likely to affect the qualifications profile of an occupation rather than the use of apprenticeships.

� In some occupations an apprenticeship pathway is not necessary due to the small amount of training required to attain the licence, in some cases not even necessitating the completion of a qualification.


References ABS (Australian Bureau of Statistics) 2006, ANZSCO – Australian and New Zealand Standard Classification of

Occupations, 1st edn, cat.no.1220.0, Canberra. ANTA (Australian National Training Authority) 2002 A licence to skill: the implications of industry licensing for the

implementation of training packages, viewed July 1010, <http://www.dest.gov.au/sectors/training_skills/publications_resources/profiles/anta/profile/a_licence_to_skill_full_report.htm>.

Eikenloff, P & Porter, R 2003 Stairway to a license and beyond – licensing issues national project, volume 2, ANTA and Queensland Government, Department of Employment and Training, Brisbane.


Appendix: Occupations that do or may require licensing

Table A1 Occupations that do or may require registr ation or licensing

Occupation Registration or licensing is required

Registration or licensing may be required

Expected qualification level

1331 – Construction managers √ Bachelor or higher

1342 – Health and welfare services managers √ Bachelor or higher

1343 – School principals √ Bachelor or higher

1412 – Caravan park managers √ Associate degree,

Diploma, advanced diploma

1413 – Hotel and motel managers √ Associate degree,


1414 – Licensed club managers √ Associate degree,


1419 – Other accommodation and hospitality managers

√ Associate degree,


1421 – Retail managers √ Associate degree,


142113 – Betting agency manager √ Associate degree,


1494 – Transport services managers √ Associate degree,


1499 – Other hospitality, retail and service managers



2211 – Accountants √ Bachelor or higher

221111 – Accountant (general) √ Bachelor or higher

221112 – Management accountant √ Bachelor or higher

2212 – Auditors, company secretaries and corporate treasurers

√ Bachelor or higher

221213 – External auditor √ Bachelor or higher

221214 – Internal auditor √ Bachelor or higher

2221 – Finance brokers √ Associate degree,


222112 – Finance broker √ Associate degree,


2222 – Financial dealers √ Bachelor or higher

222211 – Financial market dealer √ √ Bachelor or higher

222212 – Futures trader √ Bachelor or higher

222213 – Stockbroking dealer √ Bachelor or higher

2223 – Financial investment advisors and managers


2241 – Actuaries, mathematicians and statisticians


224111 – Actuary √ Bachelor or higher

2242 – Archivists, curators and record managers


2245 – Land economists and valuers √ Bachelor or higher





2246 – Librarians √ Bachelor or higher

2249 – Other information and organisational professionals


2311 – Air transport professionals √ Diploma or higher

2312 – Marine transport professional √ Diploma or higher

2321 – Architects and landscape architects √ Bachelor or higher

232111 – Architect √ Bachelor or higher

2322 – Cartographers and surveyors √ Bachelor or higher

2331 – Chemical and materials engineers √ Bachelor or higher

2332 – Civil engineering professionals √ Bachelor or higher

233213 – Quantity surveyor √ Bachelor or higher

2333 – Electrical engineers √ Bachelor or higher

2334 – Electronics engineer √ Bachelor or higher

2335 – Industrial, mechanical and production engineers


2336 – Mining engineers √ Bachelor or higher

2339 – Other engineering professionals √ Bachelor or higher

233915 – Environmental engineer √ Bachelor or higher

2347 – Veterinarians √ Bachelor or higher

2349- Other natural and physical science professionals


2411 – Early childhood teachers √ Bachelor or higher

241111 – Early childhood teacher √ Bachelor or higher

2412 – Primary school teachers √ Bachelor or higher

241213 – Primary school teacher √ Bachelor or higher

2413 – Middle school teachers √ Bachelor or higher

2414 – Secondary school teachers √ Bachelor or higher

2415 – Special education teachers √ Bachelor or higher

2421 – University lecturers and tutors √ Bachelor or higher

2422 – Vocational education teachers √ Bachelor or higher, postgraduate diploma in adult education

2512 – Medical imaging professionals √ Bachelor or higher

251211 – Medical diagnostic radiographer


251212 – Medical radiation therapist √ Bachelor or higher

251213 – Nuclear medicine technologist


2513 – Occupational and environmental health professional


2514 – Optometrists and orthoptists √ Bachelor or higher

2515 – Pharmacists √ Bachelor or higher

2519 – Other health diagnostic and promotion professionals


2521 – Chiropractors and osteopaths √ Bachelor or higher

2522 – Complementary health therapists √ Bachelor or higher

2523 – Dental practitioners √ Bachelor or higher

2524 – Occupational therapists √ Bachelor or higher

2525 – Physiotherapists √ Bachelor or higher

2526 – Podiatrists √ Bachelor or higher

2527 – Speech professionals and audiologists √ Bachelor or higher





2531 – Generalist medical practitioners √ Bachelor or higher

2532 – Anaesthetists √ Bachelor or higher

2533 – Internal medicine specialists √ Bachelor or higher

2534 – Psychiatrists √ Bachelor or higher

2535 – Surgeons √ Bachelor or higher

2539 – Other medical practitioners √ Bachelor or higher

2541 – Midwives √ Bachelor or higher

2543 – Nurse managers √ Bachelor or higher

2544 – Registered nurses √ Bachelor or higher

2711 – Barristers √ Bachelor or higher

2712 – Judicial and other legal professionals √ Bachelor or higher

2713 – Solicitors √ Bachelor or higher

2722 – Ministers of religion √ Bachelor or higher

2723 – Psychologists √ Bachelor or higher

272311 – Clinical psychologist √ Bachelor or higher

272312 – Educational psychologist √ Bachelor or higher

272313 – Organisational psychologist √ Bachelor or higher

272399 – Psychologists nec √ Bachelor or higher

2725 – Social workers √ Bachelor or higher

3112 – Medical technicians √ Associate degree,


3121 – Building, architectural and surveying technicians



312115 – Plumbing inspector √ Associate degree,


3122 – Civil engineering draftspersons and technicians



3123 – Electrical engineering draftspersons and technicians



3124 – Electronic engineering draftspersons and technicians



3129 – Other building and engineering technicians



3211 – Automotive electricians √ Certificate III/IV

3212 – Motor mechanics √ Certificate III/IV

3231 – Aircraft maintenance engineers √ Certificate III/IV

3233 – Precision metal trade workers √ Certificate III/IV

323312 – Gunsmith √ Certificate III/IV

323313 – Locksmith √ Certificate III/IV

3241 – Panel beaters √ Certificate III/IV

3242- Vehicle body builders and trimmers √ Certificate III/IV

3243 – Vehicle painters √ Certificate III/IV

3311 – Bricklayers and stonemasons √ Certificate III/IV

3312 – Carpenters and joiners √ Certificate III/IV

3321 – Floor finishers √ Certificate III/IV

3332 – Plasterers √ Certificate III/IV

3333 – Roof tilers √ Certificate III/IV

3334 – Floor and wall tilers √ Certificate III/IV





3341 – Plumbers √ Certificate III/IV

3411 – Electricians √ Certificate III/IV

3421 – Air-conditioning and refrigeration mechanics

√ Certificate III/IV

3422 – Electrical distribution trades workers √ Certificate III/IV

3423 – Electronic tradespersons √ Certificate III/IV

3611 – Animal attendants and trainers √ Certificate III/IV

3991 – Boat builders and shipwrights √ Certificate III/IV

399112 – Shipwrights √ Certificate III/IV

3992 – Chemical, gas, petroleum and power generation plant operators


399213 – Power generation plant operator √ Certificate III/IV

3996 – Signwriters √ Certificate III/IV

3999 – Other miscellaneous technicians and trades workers


4111 – Ambulance officers and paramedics √ Associate degree,


4112 – Dental hygienists, technicians and therapists



411211 – Dental hygienist √ Associate degree,


411212 – Dental prosthetist √ Associate degree,


411214 – Dental technician √ Associate degree,


4113 – Diversional therapists √ Associate degree,


4114 – Enrolled and mothercraft nurses √ Associate degree,


4115 – Indigenous health workers √ Associate degree,


4211 – Child carers √ Certificate II or III

4233 – Nursing support and personal care workers

√ Certificate II or III

4234 – Special care workers √ Certificate II or III

4412 – Fire and emergency workers √ Certificate III/IV

441212 – Fire fighter √ Certificate III/IV

4422 – Security officers and guards √ Certificate I or compulsory secondary education

442214 – Private investigator √ Certificate I or compulsory secondary education

4512 – Driving instructors √ Certificate III/IV

4513 – Funeral workers √ Associate degree,


4518 – Other personal services workers √ Certificate II or III

451811 – Civil celebrant √ Certificate II or III

4523 – Sports coaches, instructors and officials √ Certificate III/IV

4524 – Sportspersons √ Certificate III/IV

5523 – Insurance, money market and statistical clerks






552311 – Bookmaker √ Certificate II or III

5611– Betting clerks √ Certificate I or compulsory secondary education

561112 – Bookmaker’s clerk √ Certificate I or compulsory secondary education

5991 – Conveyancers and legal executives √ Associate degree,


5993 – Debt collectors √ Certificate II or III

5995 – Inspectors and regulatory officers √ Certificate II or III

599513 – Motor vehicle license examiner


5996 – Insurance investigators, loss adjustors and risk surveyors


599611 – Insurance investigator √ Certificate III/IV

5999 – Other miscellaneous clerical and administrative workers


6111 – Auctioneers and stock and station agents


611111 – Auctioneers √ Certificate III/IV

6112 – Insurance agents √ Certificate III/IV

6121 – Real estate sales agents √ Certificate III/IV

612113 – Real estate principal √ Certificate III/IV

612114 – Real estate agent √ Certificate III/IV

612115 – Real estate representative √ Certificate III/IV

7121 – Crane, hoist and lift operators √ Certificate II or III

7122 – Drillers, miners and shot firers √ Certificate II or III

7123 – Engineering production systems worker √ Certificate II or III

7211 – Agricultural, forestry and horticultural plant workers


7212 – Earth moving plant operators √ Certificate II or III

7213 – Forklift drivers √ Certificate II or III

7219 – Other mobile plant operators √ Certificate II or III

7311 – Automobile drivers √ Certificate II or III

7312 – Bus and coach drivers √ Certificate II or III

7313 – Train and tram drivers √ Certificate II or III

7321 – Delivery drivers √ Certificate II or III

7331 – Truck drivers √ Certificate II or III

8214 – Insulation and home improvement installers


8217 – Structural steel construction workers √ Certificate II or III

8413 – Registration and licensing may be required


8419 – Other farm, forestry and garden workers √ Certificate I or compulsory secondary education


Award structures

Damian Oliver


Introduction The apprenticeship model combines a contract of training with a contract of employment. One important element of the model is that apprentices and trainees receive a training wage. Clearly a variety of aspects relating to pay and conditions is important to the attractiveness of undertaking (and completing) an apprenticeship or traineeship. For example:

� The perceived low levels of pay are a disincentive for young people who might otherwise enter into an apprenticeship (Misko, Nguyen & Saunders 2007).

� Work-related factors such as pay, hours, other employment conditions and the organisational culture are the most common reasons given by apprentices and trainees for not completing their apprenticeship (Cully & Curtain 2001; Grey et al. 1999; Callan 2001, Snell & Hart 2008).

� Apprentices are more likely to complete their training if the wage they can expect to receive on completion is higher than the wage they could expect in alternative employment, and male trainees are less likely to complete their training if the wage they can expect to receive in alternative employment is higher than the training wage (Karmel & Mlotkowski 2010).

� Workers are discouraged from engaging in further training (including apprenticeships and traineeships) if their qualifications will not lead to an increase in pay.

Awards are the basis of pay and conditions—hence this report provides an overview of how awards connect with apprenticeships and traineeships. A total of 122 modern awards will set the employment conditions for the vast majority of apprentices and trainees, either directly or indirectly, by providing a floor for conditions contained in collective agreements. Once former state awards (referred to as Division 2B Awards in the Fair Work [Transitional Provisions and Consequential Amendments] Act 2009) expire, the proportion of apprentices and trainees covered by modern awards will increase further.

An analysis of the provisions relating to apprentices and trainees has been conducted for each of the 122 modern awards. Attention has been paid to the following matters:

� the pay rates and relativities for apprentices at all stages4

� whether apprentices and trainees are entitled to allowances, paid at either the full rate or a proportion

� the rules governing progression through the apprenticeship or traineeship, being time-based or competency-based progression

� whether separate pay rates are included for adult apprentices

� whether other factors, such as highest level of education, are taken into account in determining pay rate or apprentice stage.

The findings establish:

� The trainee wage contained in the National Training Wage ranges from 45% of the national minimum wage to 91% of the national minimum wage, depending on highest level of schooling, years since left school, and qualification.

4 The report here, intended as an overview covering differences between occupations and industries, disregards the transitional arrangements in place to phase in rates of pay in modern awards. Existing employees (including apprentices and trainees) will likely not be going straight onto the new rates but phasing up or down depending on their pre-modern award arrangements. Modern award wage rates will be phased in over five years.


� Most awards pay apprentices a portion of the qualified trades rate, which in nearly all cases is based on the rate for the C10 classification in the Manufacturing Awards.

� The relativity for a first-year apprentice in a standard four-year apprenticeship ranges from 37.5% to 55% of the relevant tradesperson rate.

� The relativity for a fourth year apprentice ranges from 82% to 95% of the relevant tradesperson rate.

� A third of awards provide for apprentices to receive tool allowances, most commonly at the same rate received by tradespeople.

� A smaller number of awards pay apprentices some form of industry allowance.

� Few modern awards currently provide for competency-based progression, preferring instead time-based provisions.

� Few modern awards provide for adult apprentices to receive a higher rate of pay.

� Few modern awards currently take previous educational experience, including completion of a pre-apprenticeship program, into account when determining pay and apprentice stage.

In examining award entitlements, we are analysing only the minimum conditions required by law. It has been often contended that the low level of apprentice pay is a significant barrier to increasing the number of people successfully completing apprenticeships and traineeships. Bittman et al. (2006) identified that the award pay rates for first-year apprentices in six representative occupations were all below the Henderson Poverty Line. However, minimum wages contained in awards are just that—minima—and employers have always been free to pay employees higher wages if they choose. The latest data from the Employee Earnings and Hours survey indicates around a third of all workers covered by awards receive above-award payments. A survey by the Australian Chamber of Commerce and Industry suggested that a majority of their members paid some or all of their apprentices above-award wages (Australian Chamber of Commerce and Industry 2005).

The report goes on to examine the extent of over-award payments, using data from the Survey of Education and Training, conducted by the Australian Bureau of Statistics (ABS) in 2009. This period precedes the commencement of modern awards, so we match earnings data for individuals to the rate of pay contained in the relevant pre-reform federal award or Notional Agreement Preserving a State Award (NAPSA), taking into account occupation, age, stage of apprenticeship, and highest level of education.

With these data, we establish that most apprentices in trade occupations receive pay in excess of the relevant federal award rate. We find that above-award payments are most common in trade occupations with strong demand and high levels of collective bargaining by employees—electrical and engineering and automotive. Where there are higher rates of award dependence by employees, as in the food trades and hairdressing, we find that wages are closer to the award rates. We also find that many trainees receive above-award rates. However, this is influenced by existing workers, who receive well in excess of the relevant training wage. New workers, particularly younger trainees, are more likely to receive close to the relevant award rates.


Employment arrangements of apprentices and trainees

The working arrangements of apprentices and trainees are central to evaluating the effectiveness of the apprenticeship model. Unlike other forms of vocational education and training, an apprenticeship combines a contract of training with a contract of employment. Work-based reasons are frequently cited as the reason why apprentices and trainees may not complete their training (Cully & Curtain 2001; Grey et al. 1999; Callan 2001). Among the various factors identified are wage rates, allowances, reimbursement of training expenses, and regulation of working hours (see Oliver 2009).

The level of apprentice wages has attracted particular attention, with frequent calls for the level of apprentice pay to be increased. Low wages are a particular factor for apprentices in the early stages of their training. One 2006 study found that the award pay rates for first-year apprentices in six representative occupations were all below the Henderson Poverty Line (Bittman et al. 2006).

Karmel and Mlotkowski (2010) examined the impact of wages on the probability of completion. They found that the gap between the training wage and the wage in alternative employment and the gap between the wage in alternative employment and the wage on completion have a limited effect on completion. For apprentices it is the premium attached to completion that matters. This suggests the pay of apprentices is not the issue that many make it—at least in terms of completion rates. However, it could still be the case that the number of applicants for an apprenticeship will be affected by apprentice wage rates. Karmel and Mlotkowski also show that trainee wage rates are an issue for the completion rates of male trainees. Hence, apprentice and trainee wage rates (and conditions) are certainly worth serious consideration.

There are two reasons why modern awards are an apt starting point for the analysis of apprentices’ and trainees’ employment conditions. Awards remain the predominant instrument under which apprentices and trainees are employed. Second, the standards set in awards are also relevant for apprentices and trainees who have their conditions set by enterprise agreements. Under the Fair Work Act, an enterprise agreement may deviate from the terms included in the relevant award but must leave an employee ‘better off overall’ (Fair Work Act 2009, s 186). Table 1 shows the employment arrangements for apprentices and trainees who commenced in 2009, using data extracted from the Training and Youth Information Management System (TYIMS) administered by the Department of Education, Employment and Workplace Relations (DEEWR). The results indicate that two-thirds of apprentices and trainees who commenced in 2009 were covered by a federal or state award. Awards are even more important for apprentices in the traditional trades areas, covering three-quarters of apprentices who commenced in 2009. Fewer than one in 20 apprentices and trainees were covered by an Australian Workplace Agreement (AWA). Since AWAs could no longer be made after March 2008, these presumably refer either to their temporary successor, Individual Transitional Employment Agreements, or to existing workers covered by AWAs who entered into a contract of training.


Table 1 Apprenticeship contracts by employment inst rument, 2009 commencements

Occupation Federal or state award

Certified Agreement

Australian Workplace Agreement

Other 1 Total

% % % % %

1 Managers 76 12 2 10 100

2 Professionals 55 31 3 11 100

3 Technicians and trades workers 78 9 2 10 100

31 Engineering, ICT and Science Technicians 62 14 4 20 100

32 Automotive and Engineering Trades Workers 80 8 2 11 100

33 Construction Trades Workers 88 6 1 5 100

34 Electrotechnology and telecommunications trades workers

72 13 1 13 100

35 Food trades workers 76 12 2 9 100

36 Skilled animal and horticultural workers 84 5 1 9 100

39 Other technicians and trades workers 75 9 3 13 100

391 Hairdressers 94 4 0 2 100

4 Community and personal service workers 76 11 2 10 100

5 Clerical and administrative workers 61 13 5 22 100

6 Sales workers 65 21 4 10 100

7. Machinery operators and drivers 49 18 10 23 100

8 Labourers 56 22 5 18 100

Total 2 68 14 4 14 100 Notes: 1 Other includes State Workplace Agreements. 2 Total includes apprenticeships not allocated to any occupation code. Source: Data extracted from TYIMS; DEEWR, August 2010.

Since 1 January 2010, a set of 122 modern awards form the benchmark for employees covered by the national workplace relations system. The national system covers all employees employed by constitutional corporations, all employees in Victoria, the Northern Territory and the Australian Capital Territory, federal government employees, employees of unincorporated bodies in New South Wales, Queensland, South Australia and Tasmania, and certain other categories of employees. The main categories of workers not covered by the national system are state government employees (except in Victoria) as well as private sector employees in Western Australia (except those working for constitutional corporations). The referral of all private sector coverage in most states means that well over 85% of the Australian workforce is covered by the national system.

Modern awards have replaced pre-reform federal awards and Notional Agreements Preserving State Awards and Australian Pay and Classification Scales. NAPSAs were created as part of the former Work Choices system to cover conditions of employment, excluding rates of pay, for employers and employees who were until 2006 covered by the state industrial relations systems (mainly constitutional corporations). NAPSAs took the terms of the relevant state awards, except for provisions that the Work Choices legislation deemed to be prohibited content. Prohibited content included anti-AWA clauses and restrictions on the range or duration of apprenticeships. The Work Choices changes also removed pay scales from awards and NAPSAs, creating a separate pay scale instrument (Australian Pay and Classification Scales). At the same time, the reforms transferred wage-setting powers from the Australian Industrial Relations Commission to the Australian Fair Pay Commission. Modern awards will also soon apply to the smaller group of employers and employees working for unincorporated private sector businesses that were


brought into the national system by the Fair Work Act from 1 January 2011. In the meantime, the terms of the state awards continue to apply.5

Awards continue to distinguish between apprentices and trainees. The conditions for apprentices are contained within the main body of the award relating to the relevant occupation or industry of that apprenticeship. The employment arrangements for trainees reflect their more recent history. With a few exceptions, trainees are covered by the same Training Wage Schedule. The National Training Wage Award was made in 1994, and following award simplification a new award was made in 2000. Commissions in the state jurisdictions made their own training wage awards along similar lines. Traineeships in the training wage schedule are allocated to wage levels based on training package and qualification level. The arrangements for school-based apprenticeships are usually contained in a standard schedule to the main award, in the same manner as the training wage schedule.

A content analysis was conducted of all 122 modern awards.

� 95 awards include the National Training Wage Schedule.

� 49 awards include the School Based Apprentices Schedule.

� 45 awards include rates of pay for apprentices

� 21 awards include at least one other provision relating to employment conditions for apprentices, such as restrictions on overtime or reimbursement of training-related expenses.

A list of all modern awards that include provisions relating to apprentices or trainees is included in table A1 in the appendix.

5 Some provisions of pre-reform awards and NAPSAs continue to have effect for apprentices and trainees and their employers formerly covered by these instruments as a result of transitional arrangements. These relate to the supply of tools and competency-based training arrangements and are detailed later in this report.


Award wage rates and relativities

Trainees

We look first at the wage rates for trainees, which under the modern award system are set by the National Training Wage Schedule, which is appended to 95 of 122 awards. The training wage rates are published as amounts, but are based on proportions of the national minimum wage (rounded to the nearest dollar). These proportions were initially set in 1994, when the precursor National Training Wage was made. Other reports have covered in detail how traineeships are predominantly used in the sales, clerical and administrative, community and personal services and machinery operator and driver occupational categories.

Rather than a single national training wage, different rates of pay apply, depending on the qualification level, the training package, the highest level of schooling completed and the number of years since the trainee left school.

Most traineeships covered by the National Training Wage are at the certificate I, certificate II or certificate III level. The training wage schedule divides traineeships for these qualifications into three wage levels on the basis of training package and qualification level.

Wage Level A pays the highest wage includes all certificate I–III qualifications from the Business Services, Financial Services, Manufacturing, Maritime and Tourism, Hospitality and Events training packages, higher-level (certificate III) qualifications from the Beauty and Retail Services training packages, and various other qualifications from other training packages.

Wage level B includes all level qualifications from the Animal Care and Management, Meat Industry, Automotive Retail Service and Repair, Entertainment, Forest and Forest Products Industry, Furnishing, Outdoor Recreation, Property Services, and Sugar Milling Industries packages. Wage Level B also covers certificate I–II qualifications in the retail services industry.

Wage Level C, the lowest, comprises mainly training packages from primary industries, such as Agri-Food, Conservation and Land Management, Rural Production and Seafood Industry.

Within each wage level, rates of pay differ according to the highest level of schooling completed and the number of years since the trainee completed school. The pay rates are set out in table 2.


Table 2 Training wage schedule rates of pay, as pro portion of National Minimum Wage, July 2010

Highest yr of schooling

Yr 10 Yr 11 Yr 12

% % %

Wage Level A

School leaver 45 49 59

Plus 1 yr out of school 49 59 69

Plus 2 yrs out of school 59 69 80


Plus 4 yrs out of school 80 91

Plus 5 yrs out of school 91

Wage level B






Plus 5 yrs out of school 88

Wage level C






Plus 5 yrs out of school 80 Source: National Training Wage Schedule.

A full-time traineeship is based on 38 ordinary hours a week, with 20% of ordinary hours to be spent in approved training. This training may occur on or off the job, in accordance with the training contract. The hourly rate for part-time trainees is 1/38 of the weekly rate, with an additional 20% loading to take into account the notional time spent in training. Part-time trainees are not paid for time spent in training.

Different arrangements apply to trainees undertaking certificate level IV traineeships, and school-based traineeships. A trainee undertaking a certificate level IV traineeship is paid the rate for the corresponding certificate level III traineeship, with an additional loading of 3.9%. Adult trainees undertaking a certificate level IV traineeship are paid according to the following proportions:


Table 3 Wage levels as proportion of National Minim um Wage for certificate IV traineeships, July 2010

Wage level First year Subs yrs

% %

Wage level A 95 99

Wage level B 92 95

Wage level C 83 87 Source: National Training Wage Schedule.

School-based traineeships

The rate for school-based trainees is based on their current level of schooling. In addition, the schedule provides for school-based trainees to receive a 25% loading in lieu of paid annual leave, paid sick leave, and other entitlements.

Table 4 Wage levels as proportion of National Minim um Wage for school-based traineeships, July 2010

Yr 11 or lower Yr 12

% %

All wage levels 59 65 Source: National Training Wage Schedule.

Existing workers

The rates of pay outlined above do not necessarily apply to existing workers who commence a traineeship. The training wage schedule (Cl 5.3 [a]) provides that:

An employee who was employed by an employer immediately prior to becoming a trainee

with that employer must not suffer a reduction in their minimum wage per week or per

hour by virtue of becoming a trainee. Casual loadings will be disregarded when determining

whether the employee has suffered a reduction in their minimum wage.

The occupational categories with the highest proportions of existing worker trainees are clerical and administrative workers (28.4% of all commencing clerical and administrative trainees in 2009 were existing workers), machinery operators and drivers (14.6%) and sales workers (11.6%) (NCVER 2010, p.17).

Relativities to occupational earnings

The use of the national minimum wage as a base for trainee wages is appropriate, given the relatively high reliance of employees in these occupational categories on the national minimum wage. Table 5 shows for the top 20 traineeship occupational categories the proportion of employees who are reliant on minimum rates of pay. In many cases, it is substantially above 19%, which is Fair Work Australia’s estimate of the proportion of all employees who are reliant on minimum rates of pay.


Table 5: Proportion of employees in typical trainee occupations reliant on minimum rates of pay

Occupation (ANZSCO - NTIS) group Proportion of all trainees

covered by this occupation

Proportion of employees in this occupation reliant

on minimum rates of pay

% %

621 Sales assistants and salespersons 18% 35%

512 Office and practice managers 13% 13%

431 Hospitality workers 9% 61%

732 Delivery drivers 5% 30%

741 Storepersons 5% 19%

531 General clerks 5% 17%

541 Call or contact centre information clerks 4% 8%

224 Information and organisation professionals 3% 2%

423 Personal carers and assistants 3% 45%

831 Food process workers 3% 12%

411 Health and welfare support workers 3% 19%

811 Cleaners and laundry workers 2% 56%

421 Child carers 2% 69%

591 Logistics clerks 2% 11%

134 Education, health and welfare services managers 2% 14%

552 Financial and insurance clerks 2% 9%

712 Stationary plant operators 2% 4%

711 Machine operators 2% 17%

451 Personal service and travel workers 1% 24%

721 Mobile plant operators 1% 14%

841 Farm, forestry and garden workers 1% 14% Notes: Proportion of trainees is based on apprentices in non-trade occupations in-training in October–December 2009. Proportion reliant on minimum rates of pay is based on analysis of 2006 Employee Earnings and Hours Survey. Source: NCVER Apprentice and Trainee Collection; Bolton & Wheatley (2010, table 4).


Apprentices

Forty-five awards provide that apprentices may be employed but only 44 specify rates of pay for apprentices (one, the Children’s Services Award 2010, does not include apprentice rates of pay). However, award coverage in practice is concentrated on a few main awards for each industry or occupational category. In table 6, we match modern awards to the main categories for apprentices in trade occupations, using data from the NCVER collection.

The automotive and engineering, construction and electrical classifications account for more than seven in ten apprentices in the traditional trades. Approximately a quarter of all apprentices in-training during October–December 2009 were training for occupations in the automotive and engineering trades (ANZSCO 32). A further quarter were working in the construction trades (ANZSCO 33). We break these classifications down to the 3-digit level to show the proportion of apprentices in the automotive and vehicle trades, the engineering trades, the joinery and other building trades, and the plumbing trades, in order to better align with modern award coverage.

The main awards for the automotive and engineering trades are the Vehicle Manufacturing, Repair, Services and Retail Award 2010 and the Manufacturing and Associated Industries and Occupations Award 2010 respectively. Plumbers are covered by their own occupational award, the Plumbing and Fire Sprinkling Award 2010. The main awards for the construction trade workers are the Building and Construction General On-Site Award 2010, which covers civil construction and the Joinery and Building Trades Award 2010, which covers joiners and building trades workers working in other industries. A further 17% of apprentices are training in the electrical trades, which is covered by Electrical, Electronic and Telecommunications Contracting Award 2010. Of the remainder, the largest groups are the food trades (10%) and hairdressing (6%). Hairdressers are covered by the Hair and Beauty Industry Award 2010. Coverage of the food trades is split across many awards, depending on industry: the Restaurant Industry Award 2010, the Hospitality Industry (General) Award, the Registered and Licensed Clubs Award 2010, the Food, Beverage and Tobacco Manufacturing Award 2010, the General Retail Industry Award 2010, and the Meat Industry Award 2010.


Table 6 Apprentices in trades occupations with mai n relevant modern award(s)

Occupation Proportion of apprentices

in trades occupations

Main relevant modern award(s)

%

31 Engineering, ICT and science technicians

3

32 Automotive and engineering trades workers

27

321, 324 Automotive & vehicle trades workers

13 Vehicle Manufacturing, Repair, Services and Retail Award 2010

322+323 Engineering trades workers 14 Manufacturing and Associated Industries and Occupations Award 2010

33 Construction trades workers 27

331, 332, 333 Joiners and building trades 19 Building and Construction General On-site Award

2010

Joinery and Building Trades Award 2010

334 Plumbers 8 Plumbing and Fire Sprinklers Award 2010

34 Electrotechnology and telecommunications trades workers

17 Electrical, Electronic and Telecommunications Contracting Award 2010

35 Food trades workers 10 Restaurant Industry Award 2010

Hospitality Industry (General) Award 2010

Registered and Licensed Clubs Award 2010

Food, Beverage and Tobacco Manufacturing Award 2010

General Retail Award 2010

Meat Industry Award 2010

36 Skilled animal and horticultural workers 4 Gardening & Landscaping Services Award 2010

Nursery Award 2010

Registered and Licensed Clubs Award 2010

39 Other technicians and trades workers 12

391 Hairdressers 6 Hair and Beauty Industry Award 2010

392 Printing trades workers 1 Graphic Arts, Printing and Publishing Award 2010

393 Textile, clothing and footwear trades workers

0 Textile, Clothing, Footwear and Associated Industries Award 2010

394 Wood trades workers 2 Timber Industry Award 2010

Manufacturing and Associated Industries and Occupations Award 2010

399 Miscellaneous technicians and trades workers

3 NA

Note 1: The Building and Constriction General On-Site Award applies to general building and construction, civil construction and metal and engineering construction. Source: NCVER Apprentice and Trainee Collection, in-training estimates, October–December 2009.

In this initial examination of apprentice pay, we consider first the basic rate paid to junior apprentices. We consider later separate arrangements that may be in place for adult apprentices and apprentices with higher qualification levels. In all except one case, these are expressed as a ratio of the relevant tradesperson rate contained in the award. The ratio is based on the stage of the apprentice, typically expressed as a year. The exception is apprentices in the child care industry. The Children’s Services Award 2010 contains no wage rates for apprentices and instead specifies that apprentices are to be paid no less than an unapprenticed junior of the same age.

For the standard four-year apprenticeship, the rates range from 37.5% for a first-year plumber to 95% for fourth-year apprentices in a variety of occupations and industries. Table 7 contains the


ratios for four-year apprenticeships in the main awards, the Miscellaneous Award 2010. This award is intended as a catch-all award for award-reliant employees who are not covered by any other award. However, the award is not intended for employees who are not traditionally award reliant. Table A2 in the appendix contains the ratios for all awards with four-year apprenticeships.

Table 7 Apprentice wage ratios by year for selected awards (4 year apprenticeships)

Award name Year 1 Year 2 Year 3 Year 4

% % % %

Building and Construction General On-site Award 2010 45 55 75 90

Electrical, Electronic and Communications Contracting Award 2010 40 52 70 82

General Retail Industry Award 2010 50 60 80 90

Graphic Arts, Printing and Publishing Award 2010 47.5 60 72.5 87.5

Hair and Beauty Industry Award 2010 (Hairdressing apprentices)2 45 55 77 90

Hospitality Industry (General) Award 2010 55 65 80 95

Joinery and Building Trades Award 2010 45 55 75 90

Manufacturing and Associated Industries and Occupations Award 20101 42 55 75 88

Miscellaneous Award 2010 55 65 80 95

Plumbing and Fire Sprinklers Award 2010 (Plumbing apprentices) 37.5 55 70 90

Timber Industry Award 2010 (All except saw doctor apprentices) 50 60 75 90

Vehicle Manufacturing, Repair, Services and Retail Award 20101 42 55 75 88

Lowest ratio in all awards2 37.5 50 70 82

Highest ratio in all awards 58 67 85 95

Notes: 1 These ratios apply to non-adult apprentices whose highest school level is Year 10 or below. Separate arrangements apply for those with Year 11 or Year 12. See table 12. 2 The ratio for hairdressers in the first 3 months of their apprenticeship is 35%. Source: Author’s analysis of modern awards.

A much smaller number of awards provide for three-year apprenticeships in certain vocations. These awards generally feature higher starting ratios at all years. Awards with three-year apprenticeships are detailed in table 8.

Table 8 Apprentice wage ratios for three year appre nticeships

Award name Year 1 Year 2 Year 3

% % %

Building and Construction General On-site Award 2010 55 75 90

Water Industry Award 2010 45 70 90

Local Government Industry Award 2010 45 70 90

Joinery and Building Trades Award 2010 50 75 90

General Retail Industry Award 2010 50 60 80

Source: Author’s analysis of modern awards.

The Dry Cleaning Award 2010 also provides for three-year apprenticeships, with a higher wage payable after the first six months, first year, second year, and in the last six months of the apprenticeship. The Hospitality Industry (General) Award 2010 and the Registered and Licensed Clubs Award 2010 include provisions for a two-year waiting apprenticeship.


There is similar uniformity to the actual comparator rate. Of the 44 awards specifying an apprentice rate of pay, most have as the relevant tradesperson rate the same amount as the C10 tradesperson rate contained in the Manufacturing and Associated Industries and Occupations Award 2010 (currently $663.60 per week, or 116% of the National Minimum Wage). In some cases this amount has been rounded to the nearest dollar, in other cases expressed as the equivalent annual or hourly amount. There are the following exceptions to this pattern:

� Alpine Resorts Award 2010 (all except apprentice chefs) ($705.66) � Black Coal Mining Industry Award 2010 ($658.80) � Rail Industry Award 2010 (Operations stream only) ($671.00) � Stevedoring Industry Award 2010 (658.80) � Sugar Industry Award 2010 (Bulk Handling Employees) ($717.28) � Telecommunications Services Award 2010 ($704.60) � Timber Industry Award 2010 (Saw doctor apprentices only) ($684.50) � Vehicle Manufacturing, Repair, Services and Retail Award (Higher engineering

tradesperson – Stage 4 only) ($684.50).

The implication of this is that most of the variation in apprentice wages comes from the different ratios in effect. These reflect many factors, including assumptions about the productivity of apprentices as they progress, which logically may vary from occupation to occupation.

Pay rates for adult apprentices

Most awards with apprentice rates of pay make no provision for separate rates for adult apprentices. Of the 20 awards that do, three approaches are evident. Nine awards simply provide for adult apprentices to receive a higher proportion of the appropriate trades qualified rate. These awards and their ratios are shown in table 9.

Table 9 Pay ratios for adult apprentices

Award name Stage 1 Stage 2 Stage 3 Stage 4

% % % %

Aluminium Industry Award 2010 90.0 90.0 90.0 95.0

Black Coal Mining Industry Award 20101 80.0 90.0 95.0 na

Coal Export Terminals Award 20101 80.0 90.0 95.0 na

Electrical Power Industry Award 2010 70.0 80.0 85.0 90.0

Electrical, Electronic and Communications Contracting Award 20102 75.0 80.0 84.0 90.0

Graphic Arts, Printing and Publishing Award 20103 82.0 87.0 92.0 100.0

Joinery and Building Trades Award 2010 (Four-year apprenticeship) 81.0 85.0 88.0 94.0

Joinery and Building Trades Award 2010 (Three-year apprenticeship) 83.0 88.0 94.0 na

Textile, Clothing, Footwear and Associated Industries Award 2010 82.0 87.0 92.0 100.0

Timber Industry Award 2010 83.5 88.3 93.4 98.5

Notes: 1 Three-year apprenticeships 2. The Adult Apprentice pay provisions in the Electrical Award are transitional arrangements that apply only to

Queensland apprentices and which expire in 2014. 3. Cl 20.6 of the Graphic Arts, Printing and Publishing Award 2010 provides that an adult apprentice must not be paid less than the minimum wage for a level 1 employee. Source: Author’s analysis of modern awards.


The second approach applies the same rates as junior apprentices, but sets a floor that no adult apprentice can be paid less than a certain amount (often the minimum classification in the award). Depending on the level of the floor, this may apply only in the first year or to most stages. Examples of these provisions are detailed in table 10.

Table 10: Formula for calculating pay rates for adu lt apprentices, selected awards

Award name Relevant clause

Airport Employees Award 2010

The salary of an adult apprentice must be the rate prescribed by clause 16 – Apprentice minimum wages for the relevant year of apprenticeship. Provided that where a person was employed by the employer prior to becoming an adult apprentice, such person must not suffer a reduction in the rate of salary by virtue of becoming indentured (Cl 17.1).

Building and Construction General On-site Award 2010

Subject to clauses 19.8(a) and (b), the rate of pay of an adult apprentice will be the rate prescribed for the lowest paid classification in clause 19.1 or the rate prescribed by clause 19.7 for the relevant year of apprenticeship, whichever is the greater (Cl 19.8 c).

Educational Services (Schools) General Staff Award 2010

The rate of pay for an adult apprentice will be the rate prescribed for the lowest classification in clause 15.1, or the rate prescribed in clause 15.4(b) for the relevant year of the apprenticeship, whichever is the greater (Cl 15.4 c).

Local Government Industry Award 2010

An adult apprentice will be paid no less than the minimum weekly rate for Level 2 in clause 14.1 (14.3 c).

Plumbing and Fire Sprinklers Award 2010

The rate of pay of an adult apprentice will be:

• not less than the federal minimum wage plus the full rate of industry disability allowance as prescribed; or

• the amount prescribed for apprentices generally in clause 20.2, whichever is the greater. (Cl. 20.3 a, 20.3 b)

Water Industry Award 2010

An adult apprentice will be paid no less than the minimum weekly rate for Level 2 in clause 14 – Minimum wages (Cl 16.2 c).

The third approach is that used by the Manufacturing and Associated Industries and Occupations Award 2010 and the awards historically related to it. This relates adult apprentice wage rates to corresponding adult rates below the level of qualified tradesperson. C10 is the classification for a qualified tradesperson. C14 is the basic unqualified rate and equates to the national minimum wage. Wage level C14 assumes up to 38 hours of induction training, while C13 similarly assumed in-house training. The minimum training requirement for C12 is a Certificate II in Engineering or an Engineering Production Certificate I. Stage 1 adult apprentices are paid the highest rate in the National Training Wage Schedule for skill level B, which is the level covering most manufacturing traineeship qualifications.

Table 11 Formula for calculating pay rates for adul t apprentices, Manufacturing and Associated Industries and Occupations Award 2010 and related a wards

Award Stage 1 Stage 2

Stage 3

Stage 4

Manufacturing and Associated Industries and Occupations Award 2010

National training wage – skill level B exit rate

C14 C13 C12

Food, Beverage and Tobacco Manufacturing Award 2010

76% of Level 5 (C10) Level 1 Level 2 Level 3

Vehicle Manufacturing Repair, Services and Retail Award 2010


Level 1 Level 2 Level 3

Sugar Industry Award 2010 (Milling, Distillery, Refinery and Maintenance stream)


C14 C13 C12


In addition to these provisions, a number of awards separately provide that an existing worker who is engaged as an apprentice will not suffer any reduction in pay for commencing an apprenticeship. In 2009, 10.9% of all commencing apprentices in trades occupations were existing workers (NCVER 2010, p.17).

Mention should be made of the initiatives undertaken by state jurisdictions to address the issue of pay rates for adult apprentices. The Western Australian Industrial Relations Commission issued a general order in 2003 that adult apprentices are to be paid no less than the equivalent rate for a third-year apprentice in a four-year apprenticeship in the metal industry, although this nexus was later broken. The South Australian Industrial Relations Commission issued a general order in 2006 that adult apprentices are to be paid no less than the adult minimum wage. (See Australian Government 2006, pp.321–5.) These decisions do not apply to the national workplace relations system.

Consideration of other factors

In some awards, the level of apprentice pay is partly determined by the apprentice’s previous experience and qualifications. Research undertaken by the Queensland Government as part of its review into apprentice wages found that apprentices who have completed Year 12 are between 25% and 30% more productive over the life of the apprenticeship than apprentices who have only completed Year 10 (Queensland Government 2008, p.29). The Manufacturing and Associated Industries and Occupations Award 2010, the Food, Beverage and Tobacco Manufacturing Award 2010 and the Sugar Industry Award 2010 (Milling, Distillery, Refinery and Maintenance stream) take into account the apprentice’s highest level of schooling when determining the level of pay.

Table 12 Formula for calculating apprentice wage ra te based on highest year of schooling

Stage of apprenticeship

Year 10 or less Completed Year 11 Completed Year 12

Stage 1 42% of the C10 trades rate 80% of the unapprenticed junior rate under this award for an 18-year-old

The relevant rate applicable to a trainee commencing after Year 12 under National Training Wage skill level A.

Stage 2 55% of the C10 trades rate 55% of the C10 trades rate The relevant rate applicable to a trainee commencing at year 12 plus one year under National Training Wage skill level A.

Stage 3 75% of the C10 trades rate 75% of the C10 trades rate 75% of the C10 rate

Stage 4 88% of the C10 trades rate 88% of the C10 trades rate C12 rate Source: Manufacturing and Associated Industries and Occupations Award 2010.

The following awards allow for apprentices to commence on a later wage point where they have been granted credit by a state training authority and the nominal duration of their apprenticeship has been reduced:

� Electrical, Electronic and Communications Contracting Award 2010 (Cl 12.8)

� Graphic Arts, Printing and Publishing Award 2010 (Cl 13.10 b)

� Joinery and Building Trades Award 2010 (Cl 13.4)

� Manufacturing and Associated Industries and Occupations Award 2010 (Cl 25)

� Plumbing and Fire Sprinklers Award 2010 (Cl 16.3)

� Textile, Clothing, Footwear and Associated Industries Award 2010 (Cl 19)


School-based apprentices

The school-based apprentices schedule provides

that the relevant minimum wages for full-time junior and adult apprentices in this award,

calculated hourly, will apply to school-based apprentices for total hours worked including

time deemed to be spent in off-the job training.

In calculating the number of hours spent in off-the-job training, full-time school students will be deemed to have spent 25% of the actual hours worked on the job in off-the-job training. The school-based apprentices schedule also details the duration and wage progression arrangements for school-based apprentices and the arrangements for transferring from a school-based apprenticeship to a full-time apprentice. A school-based apprentice advanced through the relevant wage scale at the rate of 12 months progression for each two years of employment as an apprentice.


Allowances In this section, we consider whether apprentices are eligible to receive general allowances, such as industry allowances and disability allowances, or tool allowances. We do not consider reimbursements of expenses or allowances that are only payable under certain conditions, such as meals allowances when more than two hours of overtime is required to be worked, or disability allowances for working in confined spaces or with hazardous materials, or skills-based allowances, such as for possession of a first-aid certificate or driving a fork life.

Nine awards provide for additional payments to apprentices as general or industry allowances:

� Seven awards pay apprentices an industry allowance as a percentage of their weekly pay. This industry allowance ranges from 2.5% (Salt Industry Award 2010) to the 5.96% (Hydrocarbons Industry [Upstream] Award 2010).

� Apprentices employed under the Electrical, Electronic and Communications Contracting Award receive an industry allowance of 3.7% as well as a daily travel allowance. Apprentices are paid a percentage of the full travel allowance ($4.99 per day) according to the same ratio as their basic rate of pay. Apprentices employed under this award may be eligible for additional fares allowances if required to travel certain distances to a job site.

� Apprentices employed under the Oil Refining and Manufacturing Award are paid 4% of the standard rate as an industry allowance

A majority of awards provide for apprentices to receive tool allowances. Under 13 awards, apprentices receive the full flat rate. Under a further five, apprentices receive a proportion of the full rate on the same percentage basis as their pay. In a further 12 cases, the situation is more ambiguous. Tool allowances are paid to trades classifications. Apprentices, while performing the work of the trades classification, are employed under their own classification and as such and on a strict reading are not eligible for tool allowance. In the remaining 15 awards, no tool allowance is payable to apprentices.

A qualification to this relates to apprentices in Queensland. A general order of the Queensland Industrial Relations Commission, Supply of Tools to Apprentices, establishes that employers must supply each apprentice with tools of trade. The minimum retail value of the tools is set for each trade or calling. Tools may be supplied annually (or at the commencement of a new stage for competency-based training arrangements) or once at the beginning of the apprenticeship. Under special transitional arrangements, this Order continues to apply to Queensland apprentices and their employers who were covered by the Order prior to the commencement of modern awards.


Table 13 Incidence and examples of tool allowance provisions for apprentices in modern awards

Tool allowance summary No Example

Full flat rate 13 15.3 (a) Where the employer requires a tradesperson or an apprentice tradesperson to supply and maintain tools ordinarily required by the employee in the performance of their duties as a tradesperson, the employee will be paid an additional weekly amount of $18.25 (Local Government Industry Award).

Proportion based on stage of apprentice stage 5 20.20 (a) A tradesperson will be paid an allowance of $14.69 per week for supplying and maintaining tools ordinarily required in the performance of the employee’s work as a tradesperson. The allowance will be paid for all purposes of the award. (b) This allowance will apply to apprentices on the same percentage basis as set out in clause 16 – Apprentice minimum wages (Airline Operations – Ground Staff Award).

Tool allowance payable to trades classifications 12 21.1 (b) Where a cook is required to use their own tools, the employer must pay an allowance of $1.55 per day or part thereof up to a maximum of $7.60 per week. (Hospitality Industry [General] Award).

No tool allowance payable – reimbursement of tools 3 15.4 An employee will be reimbursed the demonstrated cost of purchase for all tools of trade required in the performance of the employee’s duties. The provisions of this clause will not apply where the employer provides such tools of trade (Dry Cleaning and Laundry Industry Award).

No tool allowance payable 12 Source: Author’s analysis of modern awards.


Competency-based progression It was agreed at the COAG meeting in December 2009 that governments would facilitate arrangements for effective implementation of competency-based progression and completion for apprentices. Competency-based progression is promoted as one method of accelerating apprenticeships to increase the supply of skilled workers. Training authorities have adapted their rules to provide for an earlier completion of the apprenticeship and consequently the average duration of an apprenticeship is decreasing. Of the apprentices in trade occupations completing in 1999, 65.6% had been in training between three and four years and only 28.9% of apprentices had been in training for less than three years. By comparison, 48.5% of apprentices completing in 2009 had been in training for between three and four years and 46.0% had been in training for less than three years (NCVER 2010).

Table 14 Apprentice and trainee completions in trad e occupations, certificate III or above, by duration of training, 1999–2009 (%)

Year Up to 1 year Over 1 and up to 2 years

Over 2 and up to 3 years

Over 3 and up to 4 years

Over 4 years

1999 9.8 9.2 9.9 65.6 5.5

2000 10.0 10.8 11.3 63.1 4.9

2001 10.6 13.3 13.5 57.7 4.9

2002 12.5 12.8 15.3 53.5 5.9

2003 14.1 14.7 13.9 51.1 6.2

2004 11.6 16.8 16.1 49.0 6.5

2005 12.3 15.8 17.1 48.9 5.9

2006 11.5 16.5 17.2 49.3 5.6

2007 11.9 15.4 17.4 49.7 5.6

2008 11.2 15.3 16.6 51.4 5.5

2009 11.4 16.7 17.9 48.5 5.5

Source: NCVER (2010, table 20).

The ability of apprentices to advance to a higher wage level constitutes a significant incentive to achieve competencies at a faster rate. However, award provisions governing the vast majority of apprenticeships continue to base wage progression during the apprenticeship on duration of service, not achievement of competencies.

There are few exceptions, which do provide for apprentices to increase their wages more quickly as their competence improves.

� The Manufacturing and Associated Industries and Occupations Award 2010 provides for apprentices to advance to the next stage of the apprenticeship, once they have completed the appropriate proportion of the competencies needed to attain the qualification associated with the apprenticeship, or after 12 months, whichever occurs sooner (Cl 15.6). By the same measure, apprentices can commence their apprenticeship at a higher wage rate if they have already completed the prerequisite competencies for that stage.

� The Vehicle Manufacturing, Repair, Services and Retail Award 2010 also allows for competency-based wage progression, by completing competencies in accordance with the apprentice’s training plan (Cl 35.1 [Repair, services & retail], Cl 49 [Manufacturing]).

� The Food, Beverage and Tobacco Manufacturing Award 2010 (Cl 21.2) and the milling and distilling streams of the Sugar Industry Award 2010 (Cl 40.4) adopt the same language as the manufacturing award, referring to ‘stages’ rather than years, but do not include any other provisions detailing what requirements need to be met for apprentices to advance stages.


� The Joinery and Building Trades Award 2010 provides for apprenticeships to be completed prior to the nominal completion date, where the qualification has been attained and other requirements met, but advancement between wage levels is based on time (Cl 13.5 a).

� The Timber Industry Award 2010 states that the term of apprenticeship is determined by the rate by which an apprentice gains the required competence and the starting level of the competence but the award does not refer to advancement between wage levels (Cl 12.7 c).

� The Building and Construction General On-site Award 2010 contain transitional provisions allowing competency-based progression through the wage structure (Cl 19.7 c). These transitional provisions only apply to apprentices to whom competency-based progression arrangements would have applied prior to 1 January 2010 (see below). These transitional provisions cease to operate on 31 December 2014.

As a separate issue, three awards provide for apprentices to shorten the nominal period of their apprenticeship and commence on a later wage stage on the basis of credit or previous experience. These are:

� Electrical, Electronic and Communications Contracting Award 2010 (Cl 12.8)

� Graphic Arts, Printing and Publishing Award 2010 (Cl 13.10)

� Joinery and Building Trades Award 2010 (Cl13.4)

� Plumbing and Fire Sprinklers Award 2010 (only in relation to adult apprentices) (Cl 16.4)

� Textile, Clothing, Footwear and Associated Industries Award 2010 (Cl C.9).

The remaining awards make no reference to competency-based progression through the wage structure. The wage rates for apprentices in these awards refer to years. Two awards, the Plumbing and Fire Sprinklers Award 2010 (in relation to junior apprentices only) and the Electrical, Electronic and Communications Contracting Award 2010, specify that the term of the apprenticeship will be four years. This means that engineering and automotive apprentices, comprising one-quarter of all apprentices in the traditional trades, are well covered by competency-based wage progression but the other occupational categories are not. The arrangements vary for construction and electrical apprentices and no arrangements are in place for the other sizeable categories, namely, the food trades and hairdressing.

Prior to award modernisation, Queensland was the jurisdiction to have made the most progress advancing competency-based progression for apprentices (Australian Government 2006; Callan 2008). The Apprentices’ and Trainees’ Wages and Conditions Order (4.3.1) provides:

Progression through the wage levels shall be based upon the attainment of competencies or

minimum training requirements such as the expiry of a period of time, that are specified in the

relevant schedule.

The generic wage arrangements for apprentices and trainees from Schedule 1 of the Order are reproduced in tables A3 and A4 of the appendix. As part of the transitional arrangements, an exception was made so that if an award-based transitional instrument sets a competency-based training arrangement, or relates exclusively to the provision of tool for an apprentice, then it will continue to apply to existing as well as new apprentices (see Fair Work Australia 2010, p.17). This means that competency-based training arrangements such as those in the Queensland Apprentices’ and Trainees’ Wages and Conditions Order and any other pre-reform award, NAPSA remain in effect. Under the transitional arrangements, any competency-based training arrangement referred to in a Division 2B State Award will also continue in effect after 1 January 2011.


Identifying over-award payments Our task now is to examine the extent of over-award payments among apprentices and trainees. Income data from the ABS Survey of Education and Training relates to May 2009, before the commencement of modern awards. Therefore, we need to consider the regulatory arrangements in place at that time, which were those established by the Howard Government under the Workplace Relations Amendment (Work Choices) Act 2006, commonly known as the Work Choices regime.

Under Work Choices, a number of significant changes were made. First, Work Choices greatly expanded the coverage of the federal workplace relations system by capturing all employees of constitutional corporations who were previously covered by the state systems. It was estimated at the time that this increased the proportion of the Australian workforce covered by the federal system to around 85%. Employees in the federal system who were formerly covered by state awards were now covered by a NAPSA.

Secondly, Work Choices removed pay scales from awards and NAPSAs, creating a separate pay scale instrument. At the same time, the reforms transferred wage-setting powers from the Australian Industrial Relations Commission (AIRC ) to the Australian Fair Pay Commission (AFPC).

We have calculated the applicable award rates of pay for apprentices and trainees covered by the federal system as at May 2009. The rates of pay include all AFPC decisions and AIRC Wages and Allowance Review adjustments as of 2008. (No increase was made in 2009.) Further details are given in table A6 in the appendix.

Method

In this report, we compare the apprentice’s and trainee’s actual weekly income with their award rate of pay. This is a different approach from that used in the 2005 Australian Chamber of Industry and Commerce investigation of apprentice pay, which used a survey of employers. Our approach resembles studies that have used HILDA data to examine the extent of minimum wage workers in Australia (e.g. Healy & Richardson 2006; McGuinness, Freebairn & Mavromaras 2007). However, our task is considerably more complicated because there is not a single award rate of apprentice pay. We calculate an award rate of pay using characteristics contained in the Survey of Education and Training, such as age, occupation and state. The following process was used to calculate the extent of above-award payments to apprentices and trainees.

First, an award wage for apprentices and trainees at May 2009 (the collection period for the Survey of Education and Training) was determined, using the following principles.

For apprentices, the award wage rate was calculated using the relevant award rate, based on stage and whether an adult apprentice. Adult apprentices were deemed to be those who were aged 21 or older when they commenced employment in their current job. The relevant award was identified on the basis of the following criteria: occupation (to 2-digit level), industry (to 2-digit level) and state.

The principal occupational or industry award or NAPSA was selected. These are detailed in table A5 of the appendix. It is possible that the apprentice is instead covered by another award or NAPSA, such as a public sector award or enterprise award. At the 2-digit level, it is not possible to distinguish plumbing apprentices (who were covered by their own occupational award) from other construction apprentices. Technicians (ANZSCO31) were excluded, as these are generally


traineeships, as were Animal and Horticultural trades workers (ANZSCO32) who did not self-report as apprentices and who were not working in nursery, landscaping, gardening or green-keeping industries. Apprentice rates of pay have been identified for the following apprentice groups: automotive, engineering, construction (including plumbers), electro-technology, food, horticultural, hairdressing, printing trades, wood trades and textile, clothing footwear trades. In total, 69 pre-reform awards and NAPSAs were used in the analysis and these are listed in appendix A.

Stage/year was derived from duration of current employment in current job. Part-time apprentices were assumed to progress at half the rate of full-time apprentices. All apprentices were assumed to be enrolled in four-year apprenticeships. Separate adult rates of pay were identified in nine awards. In addition, separate rates of pay were identified for apprentices working in the engineering trades who had completed Years 11 or 12.

The rates of pay take into account the base rate, as well as any tool allowances, industry allowances or special allowances generally payable to apprentices. The rates of pay include all AIRC Wages and Allowance Review adjustments as of 2008 and are given in table A6 in the Appendix. Adult apprentice pay rates are shown in table A7. Only pay rates in the federal jurisdiction have been used. Apprentices working for most non-constitutional corporations would have remained subject to the State Award rate, rather than the NAPSA rate. The standard tradesperson award rate in the state jurisdictions was between 0.4% (Tasmania) and 2.1% (Western Australia) higher than the federal C10 Tradesperson rate. Apprentices with a higher likelihood of working for non-constitutional corporations include food trades working in the hospitality industry and hairdressers. It was possible to identify an apprentice rate of pay for 271 respondents and a trainee rate of pay for 204 respondents. Our results are weighted using the population weights calculated by the ABS.

In calculating the award wage, we assume a 38 hour week for apprentices. Apprentices who report that they usually work less than 38 hours have their award rate of pay adjusted for the number of hours they work. We do not adjust the award rate of pay for those working more than 38 hours per week. To do so would have involved more complex calculations and assumptions that take into account what overtime penalty, if any, applied. Likewise, the award rate of pay does not take into account any shift penalties that might be applicable, since the Survey of Education and Training contains no information on shifts. Therefore, in interpreting the results, it should be borne in mind that provisions entitling apprentices to overtime pay and shift and overtime penalties contribute to the extent of over-award payments.

For trainees, the award wage rate was calculated using the National Training Wage Award 2000 (AP790899), using a combination of qualification level, occupation, industry, highest level of school completed, whether still at school and, in the case of certificate IV traineeships, duration of employment in current job. Trainees undertaking a certificate I–IV qualification were allocated to wage levels on the basis of their occupation and industry. This is the best available match possible using the Survey of Education and Training, given that training package (which is the basis upon which wage levels are determined) was not within the scope of the Survey of Education and Training. Most certificate I–III traineeships are at paid at wage level A (see table 15). To simplify coding, we identified all those combinations of occupation, industry and qualification level that correspond to wage level B and wage level C. All other combinations were assumed to be paid at wage level A.

Information from the NCVER Apprentice and trainee collection was used to match training packages to occupation and industry combinations. Initially, current apprentices and trainees were cross-tabulated by training package and occupation at the two-digit level. Where it was not possible at this level of detail to match an occupation to a training package, the occupation was further segmented by industry. Where a combination of industry and occupation could apply to


more than one wage level, a decision was made to allocate all trainees in that combination to the highest wage level. The final combinations of industry and occupation and their allocation to wage levels are shown in table A8 in the appendix. The spreadsheets used to allocate industry and occupation combinations to wage levels are available from NCVER on request. The wage rates for trainees are shown in table A9.

Table 15 Trainees in training as at 31 December 200 9 by wage level

Qualification level Wage level Number Per cent

Diploma and above 5599 2.5%

Certificate IV 62132 27.8%

Certificates I–III Wage level A 115716 51.7%

Wage level B 35478 15.9%

Wage level C 3986 1.8%

Could not be determined 717 0.3%

Total 223628 Note: trainees identified as those in non-trade occupations. Source: calculated from NCVER Apprentices and Trainees Collection using information from the National Training Wage schedule.

The award wage for trainees undertaking a diploma-level qualification was given as the federal minimum wage. Where the qualification level was missing (as it was in a third of cases), the qualification level was assumed to be certificate III.

When reporting the proportion of apprentices and trainees paid at the award wage, we include a tolerance of +10%. We also do not report separately those apprentices and trainees who are paid less than the award wage. That is, if our award calculations indicate that an apprentice with particular characteristics should be paid $500 per week, we count all those earning up to and including $550 per week as being paid the award wage.


Extent of over-award payments We now examine the extent of over-award payments among apprentices and trainees. We report the average (median) weekly award wage as calculated, the average (median) weekly income from main job and the average (median) weekly above-award payment. In calculating the average weekly above-award payment, we apply a tolerance of 10% to the calculated award wage and disregard those earning below the award wage. Consequently, the average weekly above-award payment is smaller than the difference between the average weekly award wage and the average weekly income.

Looking first at income for apprentices, we find that most apprentices receive over-award payments. However, as table 16 shows, there is substantial variation by occupation. More than a quarter of automotive and engineering apprentices and more than a third of electrical apprentices earn more than $250 a week above the relevant award wage. While a majority of construction apprentices receive close to the relevant award rate, this partly reflects the higher award rates for apprentices in the construction trades, who are paid a weekly industry allowances at the same rate as tradespeople, as well as a special allowance, which is paid at the same ratio as their ordinary wages. This aside, apprentices from the other categories (comprising the food trades, horticultural trades, hairdressing, wood trades, printing trades and textile, clothing and footwear trades) are less likely to earn income well in excess of the relevant award wage. The average weekly income for automotive and engineering, construction and other trades apprentices was below the federal minimum wage at the time ($543.80 per week).

When considered by stage of apprenticeship, there is a sharp difference between apprentices in the first two years of their apprenticeship, who earn well below the minimum wage, and those in the later stages, who do considerably better. The insertion of adult apprentice pay clauses into awards appears to have made an impact, with adult apprentices receiving a higher award rate as well as having a higher average income. There is little difference in the incomes of apprentices working in capital cities and those working outside the capital cities, although it does appear that apprentices working outside the capital cities are less likely to receive above-award payments. As expected, apprentices working in small businesses are less likely to receive above-award payments.


Table 16: Apprentice average weekly income and awar d over-payment by selected characteristics

Average (median) weekly

award wage ($)

Average (median) weekly income ($)

Average (median) weekly above award

payment ($)

Paid at award wage (%)

Up to $150 over relevant award

wage (%)

$151 - $300 over relevant award

wage (%)

$301 or more over relevant award

wage (%)

Occupation

Automotive & Engineering 356 500 55 43.2 20.1 21.7 15.0

Construction 399 441 27 42.4 39.9 12.0 5.7

Electrical 518 652 179 24.4 24.4 12.8 38.4

Other trades 414 502 49 29.1 49.9 13.2 7.8

Stage

Stage 1 274 403 72 22.4 43.2 22.5 11.9

Stage 2 356 400 0 57.6 23.6 8.1 10.7

Stage 3 484 614 65 34.7 25.1 22.0 18.3

Stage 4 567 672 57 38.9 24.8 10.5 25.9

Age

Adult 517 620 168 19.2 27.4 33.4 20.0

Junior 356 464 24 42.1 32.9 10.1 15.0

Location

Capital city 383 503 74 30.0 33.9 16.4 19.8

Balance of state or territory 368 500 18 43.2 28.9 15.5 12.4

Size of business

Under 20 356 477 19 42.2 34.9 14.2 8.7

20–99 518 638 180 25.7 19.6 22.8 31.9

100 and over 383 550 89 33.3 31.4 13.6 21.7

Total 383 500 57 36.3 31.5 16.0 16.3 Note: The award wage calculations take into account the small number of part-time apprentices but do not take into account overtime hours for full-time apprentices or penalties that may be payable for shiftwork or overtime hours. Stage is calculated in EFT years of duration of employment in current job. Part-time apprentices are assumed to progress at half the rate of full-time apprentices. Apprentices with an EFT duration of greater than 4 years are grouped with Stage 4. Source: 2009 Survey of Education and Training.


Turning now to trainees, we see that a majority of trainees also earn incomes well in excess of the relevant award wage. However, this picture varies distinctly by age and duration of employment. These results are shown in table 17. A majority of trainees who were less than 21 when they started their current job receive the award wage or up to $150 per week more, whereas a majority of trainees over the age of 21 earn at least $151 in excess of the relevant weekly award wage. A similar split occurs looking at duration of employment. Existing workers who commence a traineeship are entitled to continue to receive their existing wage, which must at least be equal to the minimum wage. As the highest training wage rate is tied to 91% of the minimum wage, existing workers by definition will receive in excess of 9% of the relevant award rate. As a proxy measure, we define existing workers as those who have been in their current job for more than 24 months. More than nine in ten non-trade apprentices and trainees complete their training within this period (NCVER 2010, p.20). Existing workers are much more likely to earn income well in excess of the relevant award wage. Male trainees, reflecting their concentration in drivers and machinery operator occupations, are much more likely to earn above-award wages, whereas female trainees are more likely to earn close to the relevant award wage. Junior trainees, new trainees and female trainees earn on average less than the federal minimum wage.


Table 17: Trainee award over-payment by characteris tics

Average (median) weekly

award wage ($)

Average (median) weekly income ($)

Average (median) weekly above

award payment ($)

Paid at award wage (%) Up to $150

over relevant award wage (%)

$151 - $300 over relevant

award wage (%)

$301 or more over relevant

award wage (%)

Adult 501 761 207 22.7 20.0 17.7 39.7

Not adult 269 380 60 18.7 52.3 21.9 7.1

Existing worker 501 750 167 16.5 26.5 16.8 40.2

Not existing worker 437 450 94 23.8 41.2 21.6 13.4

Males 501 700 216 12.8 28.5 22.7 36.0

Females 483 450 60 27.4 40.8 17.2 14.7

All trainees 483 550 105 20.8 35.2 19.7 24.3

Note: Adult defined as 21 years or older when started current job. Existing worker defined as current job duration greater than or equal to 24 months. Source: 2009 Survey of Education and Training.


Final comments

Over-award payments for apprentices and trainees are in fact quite prevalent. This is likely to be a reflection of a number of factors:

� strong market demand for skilled labour, especially in the electrical and automotive and engineering trades

� the opportunity to work additional hours as overtime or shiftwork, which continue to attract penalties in most awards but which have not been taken into account in this study

� coverage of apprentices by other wage instruments, such as collective agreements, that cannot be identified by this study

� existing workers undertaking traineeships, and to a much lesser extent apprenticeships, and so continuing to receive a wage higher than the apprentice wage.

Consistent with our expectations, we find that among apprentices, over-award payments are most common in the electrical and automotive and engineering trades and least common in the other trades.

Against our expectations, we find that over-award payments are quite common among trainees. However, over-award payments for trainees are segmented by age, sex and employment duration. Female trainees, young trainees, and new workers are much more likely to earn wages close to the award wage.

It is clear that, for some groups of apprentices and trainees, wage levels are very low and earnings fall substantially below the minimum wage. Some have argued that this is of concern, and certainly low wages must discourage potential apprentices and trainees (see Misko, Nguyen & Saunders 2007). There are two obvious wages of increasing the income of the lowest-paid apprentices and trainees—increasing award payments and through government income support. The former will clearly affect the number of apprentices and trainees taken on by employers (but we do not know by how much). The latter would be a transfer from taxpayers and typically income support only goes to those in extreme need. Even now, apprentices and trainees are entitled to income support but the numbers receiving such support are very low. On the basis of NCVER data and data supplied by Centrelink, fewer than one in 20 non-indigenous apprentices and trainees under the age of 25 receive youth allowance payments.

However, for a variety of reasons, the majority of apprentices and trainees earn in excess of the relevant award wage. The substantial number of apprentices and trainees receiving above-award payments suggests that more than the level of award wages, it is the opportunity cost of undertaking an apprenticeship or traineeship that mattes. This was the focus of recent work by Karmel and Mlotkowski (2010), using data from the NCVER Apprentice and Trainee Destination Survey. For apprentices, they found that what matters most is the wage premium on completion. Apprentices are more likely to complete their training if the wage they can expect to receive on completion is higher than the wage they could expect in alternative employment. Male trainees are less likely to complete their training if the wage they can expect to receive in alternative employment is higher than the training wage.

Award wages and the extent of over-award payments are therefore germane, but the scope needs to be larger, encompassing apprentices and trainees, the occupations open to apprentices and trainees once they complete their training, and the alternative occupations and jobs that are available to apprentices and trainees if they do not complete their training.


References Australian Chamber of Commerce and Industry 2005, ‘Paying apprentices – the market responds’, ACCI

Review, no.120, February, pp.5–9. Australian Government 2006, Australian Government Submission to the Australian Fair Pay Commission,

July, viewed 16 July 2010, <http://www.workplace.gov.au/workplace/Publications/WorkplaceRelations/MinimumWageDetermination-Archive.htm>.

Bittman, M, Reavell, R,Smith, G & Battin, T 2006, Living standards of apprentices, report prepared for Group Training Australia, Centre of Applied Research in Social Science (CASS), University of New England, Armidale.

Bolton , T & Wheatley, T 2010, Earnings of employees who are reliant on minimum rates of pay, research report 4/2010, Fair Work Australia, Melbourne.

Callan, V 2001, Report on apprenticeship and traineeship completion, Department of Employment, Training and Industrial Relations, Brisbane.

—— 2008, Accelerated apprenticeships: apprentice, employer and teaching staff perceptions, NCVER, Adelaide. Cully, M & Curtain, R 2001, Reasons for new apprentices’ non completion, NCVER, Adelaide. Fair Work Australia 2010, Minimum wage transitional instruments under the Fair Work Act 2009 and the Fair

Work (Transitional Provisions and Consequential Amendments Act) 2009, Fair Work Australia, Melbourne.

Grey, K, Beswick, W, O’Brien, C & Ray, D 1999, Traineeship non-completion, Department of Education, Training and Youth Affairs Canberra.

Healy, J & Richardson, S 2006, An updated profile of the minimum wage workforce in Australia, report commissioned by the Australian Fair Pay Commission, research report no.4/06, Melbourne.

Karmel, T & Mlotkowski, P 2010, The impact of wages on the probability of completing an apprenticeship or traineeship, NCVER, Adelaide.

McGuinness, S, Freebairn, J & Mavromaras, K 2007, Characteristics of minimum wage employees, rev. edn, July 2007, research report no. 2/07, commissioned by the Australian Fair Pay Commission, Melbourne.

Misko, J, Nguyen, N &. Saunders, J 2007, Doing an apprenticeship: what young people think, NCVER, Adelaide. NCVER (National Centre for Vocational Education Research) 2010, Apprentice and trainee 2009 annual,

NCVER, Adelaide. Oliver, D 2008, The link between industrial arrangements and skill reform, report prepared for the Office of

Industrial Relations, Workplace Research Centre, Sydney. Queensland Government 2008, Queensland Government Submission to the Australian Industrial Relations

Commission – award modernisation, Brisbane. Snell, D & Hart, A 2008, ‘Reasons for non-completion and dissatisfaction among apprentices and trainees:

a regional case study’, International Journal of Training Research, vol.6, no.1, pp.44–73. Orders of the Queensland Industrial Relations Commission Order – Apprentices’ and Trainees’ Wages and Conditions (Excluding Certain Queensland Government

Entities) 2003, <http://www.qirc.qld.gov.au/resources/pdf/orders/order%20obo%20extract_181208.pdf>

Order – Supply of Tools to Apprentices 1998, <http://www.qirc.qld.gov.au/resources/pdf/orders/supply%20of%20tools%20to%20apprentices.pdf>.


Appendix

Table A1 Modern awards and their inclusion of appre ntice rates of pay, Training Wage Schedule and School Based Apprentices Schedule

Award name Apprentice rates of

pay

National Training

Wage Schedule

School Based

Apprentice Schedule

Aboriginal Community Controlled Health Services Award 2010 N Y N

Aged Care Award 2010 N Y N

Air Pilots Award 2010 N N N

Aircraft Cabin Crew Award 2010 N N N

Airline Operations – Ground Staff Award 2010 Y N Y

Airport Employees Award 2010 Y Y Y

Alpine Resorts Award 2010 Y Y N

Aluminium Industry Award 2010 Y Y Y

Ambulance and Patient Transport Industry Award 2010 N N N

Amusement, Events and Recreation Award 2010 Y Y Y

Animal Care and Veterinary Services Award 2010 N Y N

Aquaculture Industry Award 2010 N Y Y

Architects Award 2010 N N N

Asphalt Industry Award 2010 N Y N

Banking, Finance and Insurance Award 2010 N N Y

Black Coal Mining Industry Award 2010 Y Y Y

Book Industry Award 2010 N N N

Broadcasting and Recorded Entertainment Award 2010 N Y N

Building and Construction General On-site Award 2010 Y Y Y

Business Equipment Award 2010 N Y Y

Car Parking Award 2010 N Y N

Cement and Lime Award 2010 N Y N

Cemetery Industry Award 2010 Y Y Y

Children’s Services Award 2010 Y Y N

Cleaning Services Award 2010 N Y N

Clerks – Private Sector Award 2010 N Y N

Coal Export Terminals Award 2010 Y N Y

Commercial Sales Award 2010 N Y N

Concrete Products Award 2010 N Y N

Contract Call Centres Award 2010 N Y N

Corrections and Detention (Private Sector) Award 2010 N Y N

Cotton Ginning Award 2010 N Y N

Dredging Industry Award 2010 N Y N

Dry Cleaning and Laundry Industry Award 2010 Y Y Y

Educational Services (Post-Secondary Education) Award 2010 N Y N

Educational Services (Schools) General Staff Award 2010 Y Y Y

Educational Services (Teachers) Award 2010 N N N

Electrical, Electronic and Communications Contracting Award 2010 Y Y Y

Electrical Power Industry Award 2010 Y Y Y

Fast Food Industry Award 2010 N Y N



pay

National Training

Wage Schedule

School Based

Apprentice Schedule

Fire Fighting Industry Award 2010 N N N

Fitness Industry Award 2010 N Y N

Food, Beverage and Tobacco Manufacturing Award 2010 Y Y Y

Funeral Industry Award 2010 N Y Y

Gardening and Landscaping Services Award 2010 Y Y Y

Gas Industry Award 2010 Y Y Y

General Retail Industry Award 2010 Y Y N

Graphic Arts, Printing and Publishing Award 2010 Y Y Y

Hair and Beauty Industry Award 2010 Y Y N

Health Professionals and Support Services Award 2010 N Y N

Higher Education Industry – Academic Staff – Award 2010 N N N

Higher Education Industry – General Staff – Award 2010 N N N

Horse and Greyhound Training Award 2010 N Y N

Horticulture Award 2010 N Y N

Hospitality Industry (General) Award 2010 Y Y Y

Hydrocarbons Field Geologists Award 2010 N Y N

Hydrocarbons Industry (Upstream) Award 2010 Y Y Y

Joinery and Building Trades Award 2010 Y Y Y

Journalists Published Media Award 2010 N N N

Labour Market Assistance Industry Award 2010 N Y N

Legal Services Award 2010 N Y N

Live Performance Award 2010 N Y Y

Local Government Industry Award 2010 Y Y Y

Mannequins and Models Award 2010 N N N

Manufacturing and Associated Industries and Occupations Award 2010 Y Y Y

Marine Tourism and Charter Vessels Award 2010 N Y N

Marine Towage Award 2010 N N N

Maritime Offshore Oil and Gas Award 2010 N Y N

Market and Social Research Award 2010 N N Y

Meat Industry Award 2010 Y Y Y

Medical Practitioners Award 2010 N N N

Mining Industry Award 2010 Y Y Y

Miscellaneous Award 2010 Y Y Y

Mobile Crane Hiring Award 2010 N Y Y

Nursery Award 2010 Y Y N

Nurses Award 2010 N N N

Oil Refining and Manufacturing Award 2010 Y Y Y

Passenger Vehicle Transportation Award 2010 N Y N

Pastoral Award 2010 N Y N

Pest Control Industry Award 2010 N Y N

Pharmaceutical Industry Award 2010 N Y N

Pharmacy Industry Award 2010 N Y N

Plumbing and Fire Sprinklers Award 2010 Y Y Y

Port Authorities Award 2010 Y Y Y

Ports, Harbours and Enclosed Water Vessels Award 2010 N N N

Poultry Processing Award 2010 N Y N

Premixed Concrete Award 2010 N Y N

Professional Diving Industry (Industrial) Award 2010 N N N



pay

National Training

Wage Schedule

School Based

Apprentice Schedule

Professional Diving Industry (Recreational) Award 2010 N Y N

Professional Employees Award 2010 N N N

Quarrying Award 2010 N Y N

Racing Clubs Events Award 2010 N Y Y

Racing Industry Ground Maintenance Award 2010 Y Y Y

Rail Industry Award 2010 Y Y Y

Real Estate Industry Award 2010 N Y N

Registered and Licensed Clubs Award 2010 Y Y Y

Restaurant Industry Award 2010 Y Y Y

Road Transport and Distribution Award 2010 N Y N

Road Transport (Long Distance Operations) Award 2010 N Y N

Salt Industry Award 2010 Y Y Y

Seafood Processing Award 2010 N Y N

Seagoing Industry Award 2010 N Y N

Security Services Industry Award 2010 N Y N

Silviculture Award 2010 N Y N

Social, Community, Home Care and Disability Services Industry Award 2010 N N N

Sporting Organisations Award 2010 N Y N

State Government Agencies Administration Award 2010 N Y N

Stevedoring Industry Award 2010 Y Y Y

Storage Services and Wholesale Award 2010 N Y N

Sugar Industry Award 2010 Y Y Y

Supported Employment Services Award 2010 N Y N

Surveying Award 2010 N N Y

Telecommunications Services Award 2010 Y N Y

Textile, Clothing, Footwear and Associated Industries Award 2010 Y Y Y

Timber Industry Award 2010 Y Y Y

Transport (Cash in Transit) Award 2010 N Y N

Travelling Shows Award 2010 N Y N

Vehicle Manufacturing, Repair, Services and Retail Award 2010 Y Y Y

Waste Management Award 2010 N Y N

Water Industry Award 2010 Y Y Y

Wine Industry Award 2010 Y Y Y

Wool Storage, Sampling and Testing Award 2010 N Y N

Total 45 95 49 Note that the following awards contain the School-Based Apprentices Schedule but do not contain rates of pay for apprentices: Live Performance Award 2010 Market and Social Research Award 2010 Mobile Crane Hiring Award 2010 Racing Clubs Events Award 2010 Surveying Award 2010


Table A2 Pay ratios for 4-year apprentices

Award name Award no. Relevant comparator rate

Stage 1 rate %

Stage 2 rate % Stage 3 rate % Stage 4 rate %

Airline Operations – Ground Staff Award 2010 MA000048 $663.60 42.0% 55.0% 75.0% 88.0%

Airport Employees Award 2010 MA000049 $665.63 42.0% 55.0% 75.0% 88.0%

Alpine Resorts Award 2010 (all trades except Chef) MA000092 $705.66 55.0% 65.0% 80.0% 95.0%

Alpine Resorts Award 2010 (chef) MA000092 $663.86 55.0% 65.0% 80.0% 95.0%

Aluminium Industry Award 2010 MA000060 $663.60 50.0% 60.0% 75.0% 88.0%

Amusement, Events and Recreation Award 2010 MA000080 $663.60 47.5% 60.0% 75.0% 95.0%

Black Coal Mining Industry Award 2010 MA000001 $658.80 45.0% 60.0% 75.0% 90.0%

Building and Construction General On-site Award 2010 MA000020 $663.60 45.0% 55.0% 75.0% 90.0%

Cemetery Industry Award 2010 MA000070 $663.60 47.5% 60.0% 75.0% 95.0%

Coal Export Terminals Award 2010 MA000045 $663.60 45.0% 55.0% 75.0% 88.0%

Educational Services (Schools) General Staff Award 2010 MA000076 $664.00 45.0% 55.0% 75.0% 90.0%

Electrical Power Industry Award 2010 MA000088 $664.00 42.0% 55.0% 75.0% 85.0%

Electrical, Electronic and Communications Contracting Award 2010 MA000025 $663.60 40.0% 52.0% 70.0% 82.0%

Food, Beverage and Tobacco Manufacturing Award 20101 MA000073 $663.60 42.0% 55.0% 75.0% 88.0%

Gardening and Landscaping Services Award 2010 MA000101 $663.60 47.5% 60.0% 75.0% 95.0%

Gas Industry Award 2010 MA000061 $663.60 45.0% 55.0% 75.0% 88.0%

General Retail Industry Award 2010 MA000004 $663.60 50.0% 60.0% 80.0% 90.0%

Graphic Arts, Printing and Publishing Award 2010 MA000026 $663.60 47.5% 60.0% 72.5% 87.5%

Hair and Beauty Industry Award 2010 (Hairdressing)2 MA000005 $663.60 45.0% 55.0% 77.0% 90.0%

Hair and Beauty Industry Award 2010 (Beauty Therapy) MA000005 $663.60 45.0% 60.0% 80.0% 90.0%

Hospitality Industry (General) Award 2010 MA000009 $663.60 55.0% 60.0% 85.0% 95.0%

Hydrocarbons Industry (Upstream) Award 2010 MA000062 $663.60 45.0% 55.0% 75.0% 88.0%

Joinery and Building Trades Award 2010 MA000029 $663.60 45.0% 55.0% 75.0% 90.0%

Local Government Industry Award 2010 MA000112 $663.60 45.0% 60.0% 75.0% 90.0%

Manufacturing and Associated Industries and Occupations Award 20101 MA000010 $663.60 42.0% 55.0% 75.0% 88.0%

Meat Industry Award 2010 MA000059 $663.60 50.0% 60.0% 85.0% 95.0%


Award name Award no. Relevant comparator rate

Stage 1 rate %

Stage 2 rate % Stage 3 rate % Stage 4 rate %

Mining Industry Award 2010 MA000011 $663.60 45.0% 55.0% 75.0% 88.0%

Miscellaneous Award 2010 MA000104 $663.60 55.0% 65.0% 80.0% 95.0%

Nursery Award 2010 MA000033 $663.60 50.0% 63.0% 75.0% 90.0%

Oil Refining and Manufacturing Award 2010 MA000072 $663.60 45.0% 55.0% 75.0% 88.0%

Plumbing and Fire Sprinklers Award 2010 (Plumbing) MA000036 $663.60 37.5% 55.0% 70.0% 90.0%

Plumbing and Fire Sprinklers Award 2010 (Sprinkler pipe-fitting) MA000036 $663.60 50.0% 55.0% 75.0% 90.0%

Port Authorities Award 2010 MA000051 $663.60 45.0% 55.0% 75.0% 88.0%

Racing Industry Ground Maintenance Award 2010 MA000014 $663.60 47.5% 60.0% 75.0% 95.0%

Rail Industry Award 2010 (Technical and Civil) MA000015 $663.60 45.0% 55.0% 75.0% 88.0%

Rail Industry Award 2010 (Operations) MA000015 $671.00 45.0% 55.0% 75.0% 88.0%

Registered and Licensed Clubs Award 2010 MA000058 $663.60 55.0% 65.0% 80.0% 95.0%

Restaurant Industry Award 2010 MA000119 $663.60 55.0% 65.0% 80.0% 95.0%

Salt Industry Award 2010 MA000107 $663.60 45.0% 55.0% 75.0% 88.0%

Stevedoring Industry Award 2010 MA000053 $658.80 42.0% 55.0% 75.0% 88.0%

Sugar Industry Award 2010 (Milling and Distilling)1 MA000087 $663.60 42.0% 55.0% 75.0% 88.0%

Sugar Industry Award 2010 (Bulk Handling) MA000087 $717.28 42.0% 55.0% 75.0% 88.0%

Telecommunications Services Award 2010 MA000041 $704.60 42.0% 55.0% 75.0% 88.0%

Textile, Clothing, Footwear and Associated Industries Award 2010 MA000017 $663.60 50.0% 65.0% 75.0% 85.0%

Timber Industry Award 2010 (All except saw doctors) MA000071 $663.60 50.0% 60.0% 75.0% 95.0%

Timber Industry Award 2010 (Saw doctors) MA000071 $684.50 50.0% 60.0% 75.0% 90.0%

Vehicle Manufacturing, Repair, Services and Retail Award 2010 (Retail, service and repair) MA000089 $663.60 42.0% 55.0% 75.0% 88.0%

Vehicle Manufacturing, Repair, Services and Retail Award 2010 (Manufacturing) MA000089 $663.60 42.0% 55.0% 75.0% 88.0%

Vehicle Manufacturing, Repair, Services and Retail Award 2010 (Advanced Engineering) MA000089 $684.50 88.0%

Water Industry Award 2010 MA000113 $663.60 45.0% 60.0% 75.0% 90.0%

Wine Industry Award 2010 MA000090 $663.60 42.0% 55.0% 75.0% 88.0% Notes: 1 Where highest school level is Year 10 or below. 2 Hairdressing apprentices are paid at 35% of trades rate for first 3 months of apprenticeship, 45% for remainder of first year.


Table A3 Wage levels for Apprentices—Queensland

Wage level

Minimum training requirements on entry % of tradesperson’s rate specified in the industrial instrument

1 Prior to the attainment of the minimum training requirements specified for wage level 2 40

2 On attainment of 25% of the total competencies specified in the training plan for the relevant AQF certificate III qualification or 12 months after commencing the apprenticeship whichever is the earlier

55

3 On attainment of 50% of the total competencies specified in the training plan for the relevant AQF certificate III qualification or 12 months after commencing wage level 2 whichever is the earlier

75


90


100

6 On attainment of 100% of the total competencies specified in the training plan for the relevant AQF certificate IV qualification or 12 months after commencing wage level 5 whichever is the earlier

105

7 On attainment of 100% of the total competencies specified in the training plan for the relevant AQF diploma qualification or 12 months after commencing wage level 6 whichever is the earlier

110

Source: Order – Apprentices’ and Trainees’ Wages and Conditions (Excluding certain Queensland Government entities) 2003, Schedule 1


Table A4 Wage Levels for trainees—Queensland

Level Trainee registered for AQF Level 1 or 2 qualifications

Trainee registered for AQF Level 3 qualification




% Of Relevant Adult Rate*

1 On entry Prior to the attainment of the minimum training requirements specified for wage level 2

Prior to the attainment of the minimum training requirements specified for wage level 2



55

2 On attainment or completion of: (a) AQF 1 & 2 competencies; or (b) 1/2 of the total competencies for the relevant AQF 3 qualification; or (c) 1/2 of the nominal duration of the traineeship, whichever is the earlier.

On attainment or completion of: (a) AQF 1 & 2 competencies; or (b) 1/3 of the total competencies for the relevant AQF 4 qualification; or (c) 1/3 of the nominal duration of the traineeship, whichever is the earlier.



75

3 On attainment or completion of: (a) AQF 3 competencies, (b) 2/3 of the total competencies for the relevant AQF 4 qualification; or (c) 2/3 of the nominal duration of the traineeship, whichever is the earlier.

On attainment or completion of: (a) AQF 3 competencies, (b) 1/2 of the total competencies for the relevant AQF 5 qualification; or (c) 1/2 of the nominal duration of the traineeship, whichever is the earlier.


100

4 On attainment or completion of: (a) AQF 4 competencies; (b) 3/4 of the total competencies for the relevant AQF 5 qualification; or (c) 3/4 of the nominal duration of the traineeship, whichever is the earlier.


105

5 On attainment or completion of: (a) AQF 5 competencies, (b) 4/5 of the total competencies for the relevant AQF 6 qualification; or (c) 4/5 of the nominal duration of the traineeship, whichever is the earlier.

110

Source: Order - Apprentices’ and Trainees’ Wages and Conditions (Excluding certain Queensland Government entities) 2003, Schedule 1.


Table A5 List of pre-reform awards and NAPSAs used for calculating apprentice rates of pay

Industry State Reference Award Award number

Automotive & Engineering (ANZSCO 32)

Vehicle manufacturing & repair WA Vehicle Builders Award 1971 AN160328

Motor vehicle retailing & repair NT Automotive Services (NT) Award 2002 AP818846CRN

Vehicle manufacturing NSW, Qld, Vic., SA, Tas Vehicle Industry Award 2000 AP801818CRN

Motor vehicle retailing & repair NSW, Vic., Qld, SA, Tas, ACT Vehicle Industry - Repair, Services and Retail Award 2002 AP824308CAV

All other industries All states Metal, Engineering and Assoc Industries Award 1998 AP789529

Construction 1 (ANZSCO 33)

All industries NSW Building and Construction Industry (State) Award AN120089

All industries Vic. National Building and Construction Award 2000 AP790741CRV

All industries Qld Building Construction Industry Award State 2003 AN140043

Civil construction SA National Building and Construction Award 2000 AP790741CRV

All other industries SA Building and Construction Industry (SA) Award AN150670

Civil construction WA National Building and Construction Award 2000 AP790741CRV

All other industries WA Building trades (Construction) Award 1987 AN160034

Civil construction Tas. National Building and Construction Award 2000 AP790741CRV

All other industries Tas. Building and Construction Industry Award AN170010

All industries NT Building and Construction Industry (NT) Award 2002 AP812941CRN

All industries ACT Building and Construction Industry (ACT) Award 2002 AP817145CRA

Electro-technology (ANZSCO 34)

All industries NSW Electrical, Electronic and Comms Contracting Industry (State) Award AN120191

All industries Vic. National Electrical, Electronic and Communications Contracting Industry Award AP791396CRV

All industries Qld Electrical Contracting Industry Award - State 2003 AN140103

All industries SA National Electrical, Electronic and Communications Contracting Industry Award AP791396CRV

All industries WA Electrical Contracting Industry Award 1978 AN160108

All industries Tas. National Electrical, Electronic and Communications Contracting Industry Award AP791396CRV

All industries NT Electrical Engineering and Contracting Industries (NT) Award AP819377CRN

All industries ACT National Electrical, Electronic and Communications Contracting Industry Award AP791396CRV

Food trades (ANZSCO 35)

Food manufacturing2 NSW Pastrycooks &c (State) Award AN120410



Accommodation NSW Hospitality Industry – Accom., Hotels, Resorts and Gaming Award 1998 AP738479CRV

Food & beverage services NSW Restaurants &c Employees (State) Award AN120468

Food manufacturing Vic. Pastrycooks (Victoria) Award 1999 AP792620CRV

Accommodation Vic., Tas., NSW, Qld Hospitality Industry – Accom., Hotels, Resorts and Gaming Award 1998 AP738479CRV

Food & beverage services Qld Hospitality Industry – Rest, Catering and Allied Estab Award SE Qld AN140144

Food & beverage services SA Cafes and Restaurants (South Australia) Award AN150025

Food & beverage services Vic. Accommodation, Cafes & Restaurants Industry Sector – Minimum Wage Order – Victoria 1997 AP767284

Food manufacturing Qld Baking Industry (Southern & Central) AN140024

Food manufacturing SA Cake and Pastry Baking Trades Award AN150026

Food manufacturing WA Pastrycooks’ Award AN160242

Food & Beverage services WA Restaurant, Tearoom and Catering Workers’ Award AN160276

Retail trade, wholesale trade3 WA Meat Industry (State) Award 2003 AN160350

Food & beverage services Tas. Restaurant Keepers Award AN170086

Retail trade Tas. Meat Processing Industry Award AN170058

Food manufacturing NT Baking and Pastrycooking Industry (NT) Award 2002 AP819011CRN

Food & beverage services, accommodation NT Hotels, Motels, Wine Saloons, Catering, Accommodation, Clubs and Casino Employees (NT) Award AP812953CRN

Food manufacturing ACT Bakers (ACT) Award 1998 AP769420CRA

Food & beverage services ACT Liquor and allied industries Catering, Cafe, Restaurant, Etc (ACT) Award 1998 AP787016CRA

Retail trade ACT Butchers Shops etc (Private Employees ACT) Award 2003 AP831172

Retail trade NSW, Vic., Qld, SA, NT Federal Meat Industry (Retail and Wholesale) Award 2000 AP805114CRV

Horticultural workers 4(ANZSCO 36)

Landscaping, nurseries, greenk., gardening NSW Landscape Gardeners & C. Award AN120308

Landscaping, nurseries, greenk., gardening Vic. Personal & Other Community Services Ind Sector Min Wage Order AP793092

Landscaping, nurseries, greenk., gardening Qld Nursery Award AN140192

Landscaping, nurseries, greenk., gardening SA Horticulture Industry (Nursery and Landscape) Award AN150065

Landscaping, greenk., gardening WA Landscape Gardening Industry Award AN160190

Nurseries WA Horticultural (Nursery) Industry Award 1980 AN160158

Landscaping, nurseries, greenk., gardening NT Gardening, Nurseries and Greenkeeping (NT) Award AP782197CRV

Landscaping, nurseries, greenk., gardening ACT AWU Miscellaneous Workers (ACT) Award AP765606CRA

Landscaping, greenk., gardening Tas. Horticulturists Award AN170045

Nurseries Tas. Plant Nurseries Award AN170077

Other technicians and trades workers (ANZSCO 39)



Hairdressing

Personal & other services NSW Hairdressers’ State Award AN120242

Personal & other services Vic. Hairdressing and Beauty Services – Victoria – Award 2001 AP806816CRV

Personal & other services Qld Hairdressers’ Industry Award – State 2003 AN140140

Personal & other services SA Hairdressers and beauty salons award AN150062

Personal & other services WA Hairdressers Award 1989 AN160153

Personal & other services Tas. Hairdressing, health and Beauty industry award AN170042

Personal & other services NT Hairdressing and Beauty Industry (NT) Award AP818691CRN

Personal & Other Services ACT Hairdressing and Beauty Industry (ACT) Award AP783495CRA

Printing trades

Printing, info media & telecommunications All states Graphic Arts Award AP782505

Textile, clothing and footwear trades

TCF Manufacturing All states Clothing Trades Award 1999 AP772144CAV

Wood trades

Wood etc manufacturing & cabinetmaking Qld Furniture and Allied Trade Award - State 2003 AN140128

Wood etc manufacturing & cabinetmaking WA Furniture Trades Industry Award AN160137

Wood etc manufacturing & cabinetmaking ACT Furnishing Industry National Award AP825280CAV

Wood etc manufacturing & cabinetmaking NSW, Vic., SA, Tas. Furnishing Industry National Award AP825280CAV Notes: 1 The National Building and Construction Award 2000 applied only to civil construction. However, the terms of the award did not apply to apprentices in Qld or NSW (cl 20.7). 2 According to the NCVER Apprentice and Trainee Collection, the majority of food apprentices working in food manufacturing are apprentice bakers. 3 According to the NCVER Apprentice and Trainee Collection, the majority of food apprentices working in retail and wholesale trade are apprentice butchers. 4 The majority of animal trades are employed on traineeships, not apprenticeships.


Table A6 Award rates of pay by award and stage

Reference Award Award number Starting rate Year 1 Year 2 Year 3 Year 4

Reference Rate (weekly)

Tool allowance

Allowances added to the base rate

Allowances fully paid

Vehicle Builders Award 1971(WA) AN160328 $267.79 $350.68 $478.20 $561.09 $637.60

Automotive Services (NT) Award 2002 AP818846CRN $267.79 $350.68 $478.20 $561.09 $637.60

Vehicle Industry Award 2000 (All states except WA) AP801818CRN $273.55 $356.43 $483.95 $566.84 $637.60 $13.70

Vehicle Industry - Repair, Services and Retail Award 2002 (NSW, Vic., Qld, SA, Tas., ACT) AP824308CAV $267.79 $350.68 $478.20 $561.09 $637.60

Metal, Engineering and Assoc Industries Award 1998 (All states) AP789529 $273.54 $356.43 $483.95 $566.83 $637.60 $13.68

– Year 11 $312.00 $356.43 $483.95 $566.83 varies $13.68

– Year 12 $329.13 $382.96 $483.95 $595.04 varies $13.68

Building and Construction Industry (State) Award (NSW) AN120089 $270.89 $367.70 $464.51 $529.05 $637.70 $23.30 $7.70 $21.70

National Building and Construction Award 2000 (Vic.) AP790741CRV $275.59a $340.13 $404.67 $533.75 $630.56 $637.70 $25.80 $7.70 $23.90

Building Construction Industry Award State 2003 (Qld) AN140043 $303.16 $399.97 $529.05 $625.86 $637.70 $23.30 $7.70 $21.70

National Building and Construction Award 2000 (SA) AP790741CRV $340.13 $404.67 $533.75 $630.56 $637.70 $25.80 $7.70 $23.90

Building and Construction Industry (SA) Award (SA) AN150670 $335.43 $399.97 $529.05 $625.86 $637.70 $23.30 $7.70 $21.70

National Building and Construction Award 2000 (WA) AP790741CRV $320.77 $404.67 $533.75 $617.65 $637.70 $25.80 $7.70 $23.90

Building trades (Construction) Award 1987 (WA) AN160034 $315.47 $399.37 $528.45 $612.35 $637.70 $22.70 $7.70 $21.70

National Building and Construction Award 2000 (Tas.) AP790741CRV $294.95 $404.67 $533.75 $630.56 $637.70 $25.80 $7.70 $23.90

Building and Construction Industry Award (Tas.) AN170010 $290.25 $399.97 $529.05 $625.86 $637.70 $23.30 $7.70 $21.70

Building and Construction Industry (NT) Award 2002 AP812941CRN $302.92 $372.05 $510.31 $614.01 $691.30 $26.40

Building and Construction Industry (ACT) Award 2002 AP817145CRA $311.79b $344.55 $442.81 $541.08 $639.34 $637.60 $25.80 $17.50 $23.95

Electrical, Electronic and Comms Contracting Industry (State) Award (NSW) AN120191 $267.82 $351.51 $492.89 $560.93 $654.85 $12.30 $21.15

National Electrical, Electronic and Communications Contracting Industry Award (Vic.) AP791396CRV $312.14 $394.29 $517.52 $599.67 $684.60 $17 $21.30

Electrical Contracting Industry Award – State 2003 (Qld) AN140103 $264.51 $347.20 $457.46 $533.26 $689.10 $22.70 $21.30

National Electrical, Electronic and Communications Contracting Industry Award (SA) AP791396CRV $341.61 $428.13 $561.23 $647.74 $665.50 $12.50 $49.60

Electrical Contracting Industry Award 1978 (WA) AN160108 $280.12 $362.41 $472.12 $554.40 $685.70 $12.70

National Electrical, Electronic and Communications Contracting Industry Award (Tas.) AP791396CRV $310.66 $392.37 $514.93 $596.64 $680.90 $17 $21.30

Electrical Engineering and Contracting Industries (NT) Award AP819377CRN $274.29 $337.95 $465.27 $560.76 $636.60 $19.65

National Electrical, Electronic and Communications Contracting Industry Award (ACT) AP791396CRV $301.28b $334.72 $435.02 $535.33 $635.63 $668.70 $12.50 $21.30

Pastrycooks &c (State) Award (NSW) AN120410 $299.62 $341.06 $387.41 $476.12 $605.90

Hospitality Industry – Accom., Hotels, Resorts and Gaming Award AP738479CRV $350.68 $414.44 $510.08 $605.72 $637.60




Tool allowance



1998 (NSW)

Restaurants &c Employees (State) Award (NSW) AN120468 $297.34 $349.06 $433.09 $517.12 $646.40

Pastrycooks (Victoria) Award 1999 AP792620CRV $318.80 $414.44 $510.08 $605.72 $637.60

Hospitality Industry – Accom., Hotels, Resorts and Gaming Award 1998 (Vic.) AP738479CRV $350.68 $414.44 $510.08 $605.72 $637.60

Hospitality Industry – Rest., Catering and Allied Estab Award SE Qld AN140144 $255.04 $350.68 $478.20 $573.84 $637.60

Cafes and Restaurants (South Australia) Award AN150025 $350.68 $414.44 $494.14 $557.90 $637.60

Accommodation, Cafes & Restaurants Industry Sector - Minimum Wage Order - Victoria 1997 AP767284 $350.56 $414.30 $509.90 $605.51 $637.38

Baking Industry (Southern & Central Qld) Award AN140024 $255.04 $350.68 $478.20 $573.84 $637.60

Cake and Pastry Baking Trades Award (SA) AN150026 $318.80b $420.82 $382.56 $446.32 $541.96 $637.60

Pastrycooks’ Award (WA) AN160242 $260.99 $341.77 $466.05 $546.83 $621.40

Restaurant, Tearoom and Catering Workers’ Award (WA) AN160276 $267.79 $350.68 $478.20 $561.09 $637.60

Meat Industry (State) Award 2003 (WA) AN160350 $255.04 $318.80 $478.20 $605.72 $637.60

Restaurant Keepers Award (Tas.) AN170086 $318.80 $414.44 $510.08 $573.84 $637.60

Meat Processing Industry Award (Tas.) AN170058 $327.80 $423.44 $468.07 $614.72 $637.60 $9.00

Baking and Pastrycooking Industry (NT) Award 2002 AP819011CRN $289.20 $361.50 $506.10 $614.55 $723.00

Hotels, Motels, WIne Saloons, Catering, Accommodation, Clubs and Casino Employees (NT) Award AP812953CRN $353.87 $439.94 $490.95 $554.71 $637.60

Bakers (ACT) Award 1998 AP769420CRA $255.04b $286.92 $382.56 $478.20 $573.84 $637.60

Liquor and allied industries Catering, Cafe, Restaurant, etc (ACT) Award 1998 AP787016CRA $255.04b $286.92 $382.56 $478.20 $573.84 $637.60

Butchers Shops etc (Private Employees ACT) Award 2003 AP831172 $247.44b $278.37 $371.16 $463.95 $556.74 $618.60

Federal Meat Industry (Retail and Wholesale) Award 2000 AP805114CRV $318.80 $414.44 $541.96 $605.72 $637.60

Landscape Gardeners & C. Award (NSW) AN120308 $341.33 $403.39 $465.45 $558.54 $620.60

Personal & Other Community Services Ind Sector Min Wage Order AP793092 $302.76 $382.43 $478.04 $605.51 $637.38

Nursery Award (Qld) AN140192 $240.44 $330.61 $450.83 $540.99 $601.10

Horticulture Industry (Nursery and Landscape) Award (SA) AN150065 $318.80 $382.56 $478.20 $573.84 $637.60

Landscape Gardening Industry Award (WA) AN160190 $248.51 $325.44 $443.78 $520.70 $591.70

Horticultural (Nursery) Industry Award 1980 (WA) AN160158 $260.65 $341.33 $465.45 $546.13 $620.60

Gardening, Nurseries and Greenkeeping (NT) Award AP782197CRV $255.04 $318.80 $446.32 $541.96 $637.60

AWU Miscellaneous Workers (ACT) Award AP765606CRA $292.09a $323.97 $419.61 $515.25 $610.89 $637.60 $12.85 $24.20

Horticulturists Award (Tas.) AN170045 $255.22 $331.56 $449.00 $525.34 $587.20 $8.60

Plant Nurseries Award (Tas.) AN170077 $276.89 $359.78 $487.30 $570.19 $637.60 $9.10

Hairdressers’ State Award (NSW) AN120242 $255.04a $350.68 $446.32 $541.96 $573.84 $637.60




Tool allowance



Hairdressing and Beauty Services – Victoria – Award 2001 AP806816CRV $223.16a $286.92 $350.68 $490.95 $573.84 $637.60

Hairdressers’ Industry Award – State 2003 (Qld) AN140140 $255.04 $350.68 $478.20 $573.84 $637.60

Hairdressers and beauty salons award (SA) AN150062 $274.17 $350.68 $433.57 $548.34 $637.60

Hairdressers Award 1989 (WA) AN160153 $243.39b $278.16 $347.70 $486.78 $591.09 $695.40

Hairdressing, health and Beauty industry award (Tas.) AN170042 $267.79 $350.68 $478.20 $573.84 $637.60

Hairdressing and Beauty Industry (NT) Award AP818691CRN $255.04 $318.80 $446.32 $541.96 $637.60

Hairdressing and Beauty Industry (ACT) Award AP783495CRA $223.16a $255.04 $350.68 $446.32 $541.96 $637.60

Graphic Arts Award (All states) AP782505 $302.86 $382.56 $462.26 $557.90 $637.60

Clothing Trades Award 1999 (All states) AP772144CAV $318.80b $350.68 $382.56 $446.32 $510.08 $637.60

Furniture and Allied Trade Award – State 2003 (Qld) AN140128 $271.04 $366.68 $494.20 $589.84 $637.60 $16.00

Furniture Trades Industry Award (WA) AN160137 $280.09 $362.98 $490.50 $573.39 $637.60 $12.30

Furnishing Industry National Award (ACT) AP825280CAV $293.04 $377.84 $506.00 $589.53 $637.60 $25.25

Furnishing Industry National Award (NSW, Vic., SA, Tas.) AP825280CAV $281.19 $365.99 $494.15 $577.68 $637.60 $13.4 Notes: a = first 3 months; b = first 6 months. Source: Based on calculations from the relevant awards. Award rates of pay are as at March 2009.

Table A7 Adult apprentice rates of pay

Reference Award Award number Year 1 Year 2 Year 3 Year 4

Vehicle Industry Award 2000 AP801818CRN 495.75 551.34 570.78 595.06

Vehicle Industry –Repair, Services and Retail Award 2002 AP824308CAV 519.40 543.80 560.50 583.00

Metal, Engineering and Assoc Industries Award 1998 AP789529 488.73 551.32 570.76 595.04

Electrical Contracting Industry Award 1978 AN160108 472.12 472.12 472.12 554.40

Pastrycooks’ Award AN160242 449.69 449.69 466.05 546.83

Hairdressers and beauty salons award AN150062 345.13 350.68 433.57 548.34

Hairdressers Award 1989 AN160153 278.16 347.70 486.78 591.09

Graphic Arts Award AP782505 522.83 554.71 586.59 637.60

Furnishing Industry National Award AP825280CAV 557.65 588.25 620.77 653.29

Furnishing Industry National Award (ACT) AP825280CAV 545.80 576.40 608.92 641.44 Source: Based on calculations from the relevant awards. Award rates of pay are as at March 2009.


Table A8 Wage level definitions for traineeships ba sed on occupation, industry and sector of employmen t

Occupation (2-digit level) Industry (or sector) Qual level

Wage level

Primary training packages

12 Farmers and farm managers

I,II,III C Rural Production

23 Design, engineering, science & transport profs

Agriculture & mining I,II,III C Conservation and Land Management TP

36 Animal and horticulture (trainees only)

I,II,III C Rural production, Racing

61 Sales reps & agents Agriculture I,II,III C Rural production

84 Farm, forestry and garden workers

I,II,III C Rural Production, Amenity Horticulture

14 Hospitality, retail and service managers

Food retailing I,II B Retail Services

31 Engineering, ICT & science technicians

Food manufacturing, health care & social assistance I,II,III B Australian Meat Industry TP and Health TP

39 Other trades and technicians (trainees only)

Health care I,II,III B Health TP

41 Health & welfare support workers

Health care I,II,III B Health TP

42 Carers and aides Health care I,II,III B Health TP

44 Protective service workers Private sector (correctional services mainly in public sector) I,II,III B Property Services

45 Sports & personal service workers

Personal and other services II B Beauty

45 Sports & personal service workers

Other transport, education & training, arts & recreation services I,II,III B Outdoor Recreation, Fitness Industry

59 Other clerical & administrative workers

Retail I,II B Retail Service

59 Other clerical & administrative workers

Transport, postal & warehousing I,II B Transport and Logistics

61 Sales reps & agents Rental, hiring & real estate services, building cleaning, pest control & other support services

I,II,III B Property Services

62 Sales assistants Motor Vehicle, parts & fuel retailing I,II,III B Auto Industry Retail, Service and Repair

62 Sales assistants All other retail I,II B Retail Services

63 Sales support workers I,II B Retail Services

72 Mobile plant operators II B Civil Construction and Furnishing Industry

73 Road and rail drivers I,II B Transport and Logistics

74 Storepersons I,II B Transport and Logistics

81 Cleaners & laundry workers

Personal and other services I,II B Textile, Clothing Footwear (Dry Cleaning)

81 Cleaners & laundry All other industries I,II,III B Asset Maintenance TP (Cleaning)


Occupation (2-digit level) Industry (or sector) Qual level

Wage level

Primary training packages

workers

83 Factory process workers Food manufacturing II B Meat Industry

83 Factory process workers Other agriculture, forestry and fishing; wood and paper manufacturing, furniture and other manufacturing

I,II,III B Forest & Forest Products, Furnishing Industry

84 Farm, forestry and garden workers

Other agriculture, forestry and fishing; building cleaning, pest control & other support services; construction services

I,II,III B Forestry and Gardening/Landscaping TP

89 Other labourers All industries except agriculture, forestry & fisheries; mining; food manufacturing, textile manufacturing & printing; construction; transport, postal & warehousing; information media & telecommunications, financial & insurance services, professional scientific & technical services

I,II,III B Automotive Industry Retail, Service and Repair; Caravan Industry, Electro-technology Industry, Gas Industry

89 Other labourers Transport, postal & warehousing I,II B Transport and Logistics TP

All other occupations except those counted as apprenticeships I,II,III A Note: Training packages were aligned with occupation, industry and sector combinations on the basis of data from the NCVER Apprentice and Trainee Collection.


Table A9 Trainee wage rates used in the analysis

Weekly rates Hourly rates

Wage level A

Highest yr of schooling completed Highest Yr of Schooling completed

Yr 10 Yr 11 Yr 12 Yr 10 Yr 11 Yr 12

School leaver $245.10 $269.04 $323.38 $8.06 $8.85 $10.64

Plus 1 yr out of school $269.04 $323.38 $375.44 $8.85 $10.64 $12.35

Plus 2 yrs out of school $323.38 $375.44 $437.38 $10.64 $12.35 $14.39


Plus 4 yrs out of school $437.38 $500.84 $14.39 $16.48

Plus 5 yrs out of school $500.84 $16.48

Wage level B

Highest yr of schooling completed Highest yr of schooling completed

Yr 10 Yr 11 Yr 12 Yr 10 Yr 11 Yr 12

School leaver $245.10 $269.04 $313.88 $8.06 $8.85 $10.33





Plus 5 yrs out of school $482.98 $15.89

Wage Level C

Highest yr of schooling completed Highest yr of schooling completed

Yr 10 Yr 11 Yr 12 Yr 10 Yr 11 Yr 12

School leaver $245.10 $269.04 $311.60 $8.06 $8.85 $10.25





Plus 5 yrs out of school $437.76

Yr 11 or lower Yr 12 Yr 11 or lower Yr 12

School-based traineeships $245.10 $269.04 $8.06 $8.85

Certificate IV traineeship First year Subs yrs First year Subs yrs

Wage Level A $519.84 $539.60 $17.11 $17.76

Wage Level B $501.22 $520.22 $16.49 $17.12

Wage Level C $454.48 $471.58 $14.95 $15.52 Notes: Based on the National Training Wage Award rates as at March 2009.



Ron Mazzachi


Introduction The purpose of this paper is to look at the legislative frameworks underpinning apprenticeships and traineeships, and the relevant quality assurance arrangements. It begins with a discussion of the legislative framework, which is rather complicated because of Australia’s federal structure with the responsibility for training sitting with the states.

While these arrangements appear complicated and messy, our assessment is that they do not pose substantive issues for apprenticeships and traineeships. The primary role of this legislation is to specify the situations in which an employer can employ an individual under a contract of training rather than a standard employment contract. This is important because it specifies when an employer can access the industrial conditions pertaining to apprentices and trainees and the funding available from governments (subsidies and tuition in particular).

The second part of the paper looks at quality assurance arrangements. There are three dimensions of relevance. The first is the range of bodies which play a part; the second is the pivotal role of the training contract and training plan, and the third is the Australian Quality Training Framework, which provides the quality assurance mechanism for the formal training element of a contract of training.

The main point to emerge is that the AQTF treats apprenticeships and traineeships no differently from other accredited training. Therefore what differentiates the quality assurance of apprenticeships and traineeships is the training plan and the role of the field forces (that are more active in some states relative to others). The extent to which training plans will be successful in underpinning the quality will depend on the employer, the training provider, and perhaps the state regulators. As with all discussions of quality, the fundamental issue remains over whether a compliance approach can guarantee quality or whether a continuous improvement or excellence approach is more effective in actually improving quality.


Legislation Since the constitutional authority for education and training rests formally with the states, each jurisdiction has enacted legislation that establishes apprenticeships and traineeships (see below for the current parliamentary acts). Other legislation may also apply, such as that relating to employment conditions, equal opportunity, child protection and compulsory schooling, occupational health and safety, building and construction, and road traffic. The training agreement is a legal contract, made under state legislative provisions and associated regulations, which specify the rights and responsibilities of the apprentice or trainee, the employer, and the registered training organisation (RTO) nominated to provide the formal (off-the-job) component of the training program.

Closely linked to the legislation governing apprenticeships and traineeships is that which governs the broader vocational education and training (VET) system. It includes the Budget appropriations for VET by the state and Australian governments and the conditions that are attached to the expenditures made from those appropriations. Equally important is the state legislation and regulations enacted to implement the AQTF in each jurisdiction. Changes to the AQTF agreed by ministers may require changes in state legislation, although some states are able to implement such changes through amendments to regulations, without needing to change legislation.

To outside observers the legislative arrangements and regulations that support the operation of the apprenticeship and traineeship system often seem complex and costly because of the need to implement changes in eight jurisdictions, and possibly at Australian Government level also, to give effect to nationally agreed changes (the introduction of New Apprenticeships—later called Australian Apprenticeships—from the beginning of 1998 is an archetypal example). This does mean that new policy developments can be protracted, but it also means that the agreement of interested parties has been obtained before implementation. The cooperative arrangements involving the Australian Government and state governments have largely been successful in overcoming the fact that constitutional authority for VET rests with the states (Knight & Mlotkowski 2009).

The specific role of apprentice and trainee legislation

The training contract and the training plan proposal are the two central legal entities of the current Australian apprenticeship system. The national and jurisdictional legislation is designed to support the training contract between all of the parties involved in the apprenticeship; that is, the employer, apprentice, and if relevant, their guardians and the RTO. The training plan proposal describes how the RTO intends to train and assess the apprentice.

We have already noted that legislation can be primary (Acts of parliament) or subordinate (rules and regulations). Primary legislation outlines the policy and principles of the legislation, whereas the subordinate legislation deals with the administrative details.

Across jurisdictions legislation dealing with apprenticeships is usually encapsulated in more wide-ranging general education or vocational education Acts. The current primary legislation includes:

� ACT: Training and Tertiary Education Act 2003

� NSW: Apprenticeship and Traineeship Act 2001

� NT: Northern Territory Employment and Training Act 1991

� Qld: Vocational Education, Training and Employment Act 2000

� SA: Training and Skills Development Act 2008

� Tas.: Vocational Education and Training Act 1994


� Victoria: Education and Training Reform Act 2006

� WA: Vocational education and Training Act 1996

The stated intent of the more wide-ranging education Acts usually includes the aspirational goals of the vocational education system. By way of example we see in the case of Western Australia that the Vocational Education and Training Act 1996, as amended in 2008, notes that the main objects of the Act are:

(a) to establish a State training system for the effective and efficient provision of vocational education

and training to meet the immediate and future needs of industry and the community;

(b) to provide for the registration of some providers of vocational education and training and the

accreditation of some vocational education and training courses;

(c) to provide a means by which the State is able to meet its obligations under national arrangements

relating to vocational education and training;

(d) to promote equality of opportunity to undertake vocational education and training;

(e) to provide for research and development for the purposes of vocational education and training;

(f) to allow for the operation of an open and competitive training market in this State;

(g) to provide for people, such as apprentices, to be trained for some occupations under training

contracts with employers.

New South Wales is an exception, in that it has specific apprenticeship legislation that essentially only addresses (g) of the WA Vocational Education and Training Act 1996. Separate legislation can allow more specification in the handling of apprenticeship issues, whereas jurisdictions with more flexible legislation rely instead on more regulation, policy and rules. Until recently this separation did not seem to confer any particular advantage or disadvantage. However, with the move to a National VET Regulator it will be easier for NSW to achieve regulation and registration of RTOs as it has separate apprentice and vocational education and training legislation. Therefore apprentice legislation can remain with the jurisdiction and the Vocational Education and Training Act 2005 legislation covering the registration of RTOs will refer to a national level.

Whatever the approach, the areas covered by all primary or subordinate apprenticeship legislation include:

� a process to establish apprenticeships and traineeships. This covers the application process, how the application will be dealt with by the jurisdiction, including withdrawals or other amendments to the apprenticeship or traineeship. The training contract and the training plan proposal are central to this process

� a statement of the responsibilities of employers who employ apprentices and trainees directly or indirectly through host employment arrangements

� a statement of the responsibilities of apprentices and trainees

� conditions of training and employment, including reference to remuneration for persons employed as apprentices and trainees and the preservation of conditions of employment of existing worker trainees

� a requirement for an ‘off the job’ training component

� rules that cover transfer, variation, suspension, cancellation and completion of apprenticeships and traineeships

� administration requirements that include a register of apprentices and trainees, of group training organisations, appointments of commissioners or similar


� proceedings about disputes and disciplinary matters, including complaints and their resolution, the conduct of hearings, orders for compensation or prohibiting employers from entering into apprenticeships and traineeships and also appeals processes

� the appointment and functions of industry training officers who help review apprentice plans and their progress. These officers are conferred powers of entry to premises including search warrants. There are implications for the obstruction of these officers

� the establishment of a board or tribunal or delegate with powers to administer contracts of training and other regulatory requirements in relation to apprenticeships and traineeships

� the apportionment of fines and fees

� a process to establish Regulations.

Current jurisdictional legislation has continued to evolve to reflect changes in industry needs and the policy affecting apprenticeships. Several more recent and important milestones were the incorporation of trainees into apprenticeship legislation, the opening-up of the training market and the subsequent introduction of the Australian Quality Training Framework (AQTF) in 2000. Other significant changes include the introduction of apprentice training undertaken at school. Significant changes do not always result in changes to the legislation as this can be time-consuming and expensive. Instead changes can be brought about through the use of policy, rules and regulation. This can allow systems to achieve a more nimble response.

We have already noted some inconsistencies between Commonwealth and state legislation in the previous paper, particularly in the current award provisions that govern the vast majority of apprenticeships. Here the award continues to specify base wage progression during the apprenticeship according to the duration of service, although most state legislation instead embodies competency-based progression.

Amongst jurisdictions there is currently some variation in several areas, one of which covers part-time apprenticeship provisions. For example, in South Australia averaging of hours is not permitted, whereas it is possible in some other jurisdictions. There is also additional variation in part-time apprenticeships for some occupations.

In another example noted in the national Apprenticeship/Trainee Training Contract template, NSW legislation provides for ‘trainee apprenticeships’. Trainee apprentices do not undergo a probationary period, being mainly established in the building and construction industry. The trainee apprentice may work for various employers in the same industry at different times. The employer or employee can terminate trainee apprenticeships on the period of notice specified in the relevant award. Trainee apprentices complete the same on-the-job and off-the-job training as other apprentices and, at the conclusion of the trainee apprenticeship, they receive the same qualifications and certification.

Also noteworthy is the approach to appeals against decisions of the regulators. Whereas NSW has a separate tribunal constituted under the Act to review the decisions, jurisdictions like SA and WA refer these matters to their respective Industrial Relations Commission. The commissions may also have a panel advising them and which may sit with the commission to act as assessors in such proceedings.

Perhaps one of the greatest differences amongst jurisdictional practices can be seen in the process whereby a qualification can become an apprenticeship/traineeship. These are sometimes known as declared vocations or vocational training orders. Some jurisdictions such as the Northern Territory will accept any qualification that the training package states is appropriate to be used as an apprenticeship (or more specifically the jurisdiction will only reject qualifications that the training package states are not appropriate for an apprenticeship or traineeship). Other jurisdictions such as Western Australia and New South Wales have relatively simple processes when seeking for a qualification to gain apprenticeship status. However, it is the requirement for an extensive consultation period with industry and employers before the status as an apprenticeship is granted that is responsible for the long timeframe.


Recognising a qualification as an apprenticeship/traineeship does not mean that the jurisdiction will fund the training through an existing RTO. There are hurdles to be overcome, usually including a consideration of the priorities and workforce development strategies necessary to meet the jurisdiction’s current and future work skills demands before it is appropriate to fund. Nevertheless if an employer wants to take on an apprentice and the Commonwealth will fund the apprentice, the jurisdiction will abide by and implement the legislation.


Quality assurance We first list the myriad of organisations that have responsibility for various aspects of the apprenticeship and traineeship system. We then consider the role of contracts of training and training plans before discussing how the AQTF relates to apprenticeships and traineeships.

The players

Any discussion of quality assurance arrangements needs to start with some knowledge of the relevant players. Governments establish, fund and manage institutions at various levels to implement Australia’s highly structured and regulated apprenticeship and traineeship arrangements. The major institutions involved here are:

� the Australian Government department(s) that are responsible for national tertiary education and labour market policy and strategic directions (some of this was formerly provided by the Australian National Training Authority), and for the disbursement of Australian Government funding for VET

� the eight state training authorities, which are responsible for implementing national policy (including the AQTF and other regulatory arrangements), disbursing and managing public funding for VET, and for policy and strategic directions within each jurisdiction. State training authorities also play an important role in negotiating arrangements with other sectors, such as schools (in relation to school-based apprenticeships and traineeships, the VET in Schools program, and implementing legislative ‘earning-or-learning’ requirements)

� institutes of technical and further education (TAFE), which are established under state legislation and are funded and managed by state training authorities. They are the major public providers of formal training to apprentices and trainees and frequently have a local monopoly because of the high-cost infrastructure needed for some apprenticeships and traineeships or because ‘thin markets’ make the presence of more than one provider of a given program uneconomic

� other RTOS that receive public funding to deliver the formal component of apprenticeship and traineeship programs. Some of these RTOs are regulated by the National Audit and Registration Agency (NARA); otherwise this is done by the state regulatory bodies

� in most states, a network of regional offices and field staff who have direct contact with employers and apprentices and trainees provide advice and support and assist with dispute resolution. States also establish institutional arrangements to address complaints and disputes involving apprentices and trainees or their employers

� the network of Australian Apprenticeship Centres (AACs), funded and managed by the Australian Government, costing $0.183 billion in 2008–09 (Department of Education, Employment and Workplace Relations 2009, p.341). These are agencies that are contracted to provide a range of administrative services, particularly in relation to the Australian Apprenticeship Incentives Program. The work of the AACs is coordinated with the services provided by state training authorities and regional offices

� other organisations funded by the Australian Government, including industry skills councils (11 in total, which collectively receive $40 million a year from the Australian Government) and a range of consultative committees or organisations representing employers and employer associations, industry bodies, employee representative bodies, and community organisations. This is intended to ensure that the views of all interested players are taken into account when formulating VET—including apprenticeship and traineeship—policy and strategic directions, and in the design of apprenticeship and traineeship programs

� state- and regional-level representative bodies funded by state governments to ensure that a wide range of views are taken into account when formulating VET policy and strategic directions, including that which applies to apprenticeships and traineeships within each jurisdiction


Trying to ascertain the effect of each of these players on the quality of apprenticeships and traineeships is akin to searching for the Holy Grail. However, we do know (see report 2) that completion rates differ between states and that local arrangements matter. The general view is that the level of pastoral care makes a difference and therefore those jurisdictions with larger and more active field forces tend to have better outcomes.

The training contract and the training plan proposal

The obligations of all parties to an apprenticeship or traineeship are specified in the relevant jurisdictional Act. The key documents are the nationally agreed training contract and the training plan proposal for the apprenticeship/traineeship. Note that there may be some minor customisation of the training contract and the training plan proposal to suit local needs.

The training contract

Australian Apprenticeships Centres are contracted by DEEWR to develop the Apprenticeship or Traineeship Training Contract. This happens during a personal visit to employers together with the apprentice/trainee and their guardians where relevant.

� Under the contract the employer agrees to employ, provide relevant work and train the apprentice/trainee as agreed in the training plan, provide facilities and people to help train and supervise the apprentice/trainee at work, and pay the appropriate wages to attend any training and assessment with the nominated RTO.

� The employer also agrees to work with the RTO and the apprentice/trainee to help support the apprentice/trainee’s progress and notify if there are changes to the plan.

� The apprentice/trainee agrees to do their job, and follow lawful instructions while achieving the qualification and undertaking training and assessment.

� All parties agree to various administrative arrangements noted in the legislation including relevant dates, terms and changes to these. The parties also agree to contract audits and to engage with any dispute resolution process.

This is also the opportunity to remind the parties of the National Code of Good Practice for Australian Apprentices, which details the rights and responsibilities of the signatories.

The training plan

The training plan describes who will provide training and undertake the assessment of the apprentice and the timeframe. Under user choice arrangements, the employer and apprentice/trainee have the right to decide which RTO will train the apprentice. It is this RTO, in consultation with the employer and apprentice/trainee, who will decide the nature and sequence of delivery of the units of competence of the qualification.

There is increasing emphasis on the need for the training plan to be a readily available and a current working document. One way to achieve this is to require regular reviews of training plans. NSW is seeking at least six-monthly reviews by the RTO. Similarly this emphasis on using the training plan as a quality assurance and legislative tool is extending to requiring the RTO to take on increasing responsibility:

� for verifying the workplace, facilities and personnel needed for the apprentice/trainee to successfully undertake on-the-job training

� providing the employer and apprentice/trainee with regular updates on the apprentice/trainee’s progress


� providing training and assessment in accordance with the AQTF, the training package, legislation and the provisions of the approved providers contract

� notify the state training authority of any matter that may prevent the successful completion of the training soon after the matter arises.

The employer is also required to allow the apprentice/trainee a minimum amount of time per week (averaged over several weeks) to participate in training, whether on or off–the–job.

The AQTF

Apart from engaging with employers and apprenticeship centres, there are further obligations for RTOs, in particular in undertaking the training and assessment of apprentices. These requirements are stipulated in the AQTF, the AQF Handbook and what is variously referred to as the approved providers’ contract with the state training authority. However, it is in the AQTF that the all important quality of training and assessment is managed by each jurisdiction, under a common national code. The hallmark of this framework is that it is strongly based on the ISO 9000 standards for quality management systems, which are contextualised for vocational training and assessment.

The development of the AQTF in 2000 provided the first opportunity for a nationally consistent approach to the registration of training providers in Australia. There were previous attempts by jurisdictions to introduce quality assurance systems into the VET industry such as the Quality Endorsed Training Organisation (QETO) in the 1990s (South Australian Department for Employment, Training and Further Education 1997). QETO was based on the National Key Principles for Quality in VET developed by the Australian National Training Authority (ANTA). However, the variety of approaches and the generally reduced emphasis on regulation adopted by jurisdictions was not suited to the more demanding needs for consistency. This is because the different approaches could not guarantee reliable outcomes across all the jurisdictions particularly for providers who worked in more than one jurisdiction.

In the context of apprenticeships and traineeships, perhaps the most noticeable feature of the AQTF Essential Standards for Registration is the total omission of any specific reference to apprentices. The situation has not changed since the AQTF was first introduced or evolved over the last decade. It is not because of an oversight or inability by jurisdictions to agree to the role of the AQTF. Instead it is the simple reality that the training and assessment requirements for apprentices as specified in training packages are no different from those of other students studying the same, or for that matter, any other qualification. Furthermore, the employer or RTO must already comply with the relevant legislation for apprenticeships in the guidance provided by the AQTF Essential Standards for Registration principally under Condition 3 – Compliance with Legislation. Under this condition ‘The RTO must comply with relevant Commonwealth, State or Territory legislation and regulatory requirements that are relevant to its operations and its scope of registration’.

While the National Quality Council discourages jurisdictions to produce separate interpretations of rules or AQTF requirements, in 2008 the then Western Australian Department of Education and Training published a good practice guide to assist RTOs and employers to specifically help focus and improve provision to apprentices and trainees (Western Australian Department of Education and Training 2008). This document references the AQTF Essential Standards for Registration 2007. However, with respect to the intent, there is not a great difference in the basic criteria from this version from the current AQTF Essential Standards for Registration, which came into force in July 2010 (Department of Education, Employment and Workplace Relations 2010). In the WA guide, several key areas are noted as relevant to RTOs who train apprentices and these indicative good practices are noted in table 1. To maintain currency we have re-interpreted these themes under the current AQTF 2010 Essential Standards for continuing registration requirements.


Table 1 Indicative good practice for RTOs deliverin g training to apprentices noted in the WA good prac tice guide*

Area of practice Relevant AQTF 2010 Essential Sta ndards for continuing registration Examples of rele vant good practice for RTOs

1 Marketing Condition 8 – Accuracy and Integrity of Marketing

The RTO must ensure its marketing and advertising of AQF qualifications to prospective clients is ethical, accurate and consistent with its scope of registration. The NRT logo must be employed only in accordance with its conditions of use.

The media and message is suitable for the target group.

The information provided is clear and concise.

The information provides an accurate picture of the training, assessment and support services the RTO is offering.

The RTO monitors the effectiveness of the marketing and makes improvements when necessary.

2 Negotiating the training plan

Standard 1: The RTO provides quality training and assessment across all of its operations

1.3 Staff, facilities, equipment and training and assessment materials used by the RTO are consistent with the requirements of the Training Package or accredited course and the RTO’s own training and assessment strategies.

1.4 Training and assessment is delivered by trainers and assessors who:

(a) have the necessary training and assessment competencies as determined by the National Quality Council or its successors, and

(b) have the relevant vocational competencies at least to the level being delivered or assessed, and

(c) can demonstrate current industry skills directly relevant to the training/assessment being undertaken, and

(d) continue to develop their Vocational Education and Training (VET) knowledge and skills as well as their industry currency and trainer/assessor competence.

Standard 2: The RTO adheres to principles of access and equity and maximises outcomes for its clients.

2.4 Employers and other parties who contribute to each learner’s training and assessment are engaged in the development, delivery and monitoring of training and assessment.

The employer and apprentice or trainee are actively engaged in developing the training plan.

Meeting the needs of the apprentice or trainee is the focus of the negotiation process.

The training plan is a living document that is used by all parties for the duration of the training contract.

The RTO monitors the effectiveness of the training plan and makes improvements when necessary.

3 Enrolment and induction Standard 2: The RTO adheres to principles of access and equity and maximises outcomes for its clients.

2.1 The RTO establishes the needs of clients, and delivers services to meet these needs.

2.3 Before clients enrol or enter into an agreement, the RTO informs them about the training, assessment and support services to be provided, and about their rights and obligations.


Standard 3: Management systems are responsive to the needs of clients, staff and stakeholders, and the environment in which the RTO operates.

3.3 The RTO monitors training and/or assessment services provided on its behalf to ensure that it complies with all aspects of the AQTF Essential Conditions and Standards for Continuing Registration.

The information provided by the RTO is clear and accurate.

The information and media is suitable for the client group.

Any induction process prepares the employer and apprentice or trainee to maximise the learning experience.

The information is regularly reviewed and the RTO consults with the clients about the usefulness of the information.

The inclusion of an ApprentiCentre Apprenticeship Officer in the induction process whenever possible.

4 Providing and supporting learning opportunities

Standard 2: The RTO adheres to principles of access and equity and maximises outcomes for its clients.


2.5 Learners receive training, assessment and support services that meet their individual needs.

Standard 1: The RTO provides quality training and assessment across all of its operations.

1.3 Staff, facilities, equipment and training and assessment materials used by the RTO are consistent with

The learning activities and resources are tailored to the needs and learning styles of the apprentice or trainee.

The learning is structured and builds logically (simple to complex) to develop knowledge and skills.

The apprentice, trainee and employer are supported throughout the learning process.

Learning is valued and recognised by the apprentice or trainee and



the requirements of the Training Package or accredited course and the RTO’s own training and assessment strategies.


(a) have the necessary training and assessment competencies as determined by the National Quality Council or its successors, and


(c) can demonstrate current industry skills directly relevant to the training/assessment being undertaken, and

(d) continue to develop their Vocational Education and Training (VET) knowledge and skills as well as their industry currency and trainer/assessor competence.

employer.

All parties communicate effectively and regularly about the apprentice or trainee’s progress using a Training Journal.

The learning is reviewed and improved based upon feedback from a range of stakeholders including the apprentice, trainee, employer, RTO and industry

5 Providing and supporting assessment


1.5 Assessment including Recognition of Prior Learning (RPL):

(a) meets the requirements of the relevant Training Package or accredited course

(b) is conducted in accordance with the principles of assessment and the rules of evidence

(c) meets workplace and, where relevant, regulatory requirements

(d) is systematically validated.

The assessment activities and resources are tailored to the needs of the apprentice or trainee.

The apprentice, trainee and employer are supported throughout the assessment process.

All parties communicate effectively and regularly about the apprentice or trainee’s progress using a Training Journal.

The assessment is reviewed and improved based upon feedback from a range of stakeholders including the apprentice, trainee, employer, RTO and industry.

6 Certification Condition 6 – Certification & Issuing of Qualifications & Statements of Attainment

The RTO must issue to persons whom it has assessed as competent in accordance with the requirements of the Training Package or accredited course, a qualification or statement of attainment (as appropriate) that:

• meets the Australian Qualifications Framework (AQF) requirements

• identifies the RTO by its national provider number from the National Training Information Service

• includes the Nationally Recognised Training (NRT) logo in accordance with the current

conditions of service.

The RTO must retain client records of attainment of units of competency and qualifications for a period of thirty years.

The RTO monitors the apprentice or trainee’s progress against the Training Plan and issues a qualification or Statement of Attainment when required.

The qualification or Statement of Attainment meets the requirements of Condition 6.

The issue of the qualification is timely.

The RTOs records for the apprentice accurately show the award of a qualification and/or a Statement of Attainment.

7 Improving RTO learning, assessment and support services


1.1 The RTO collects, analyses and acts on relevant data for continuous improvement of training and assessment.

The RTOs systems promote the continual and systematic review of its products, services and the way it operates.

All stakeholders in the apprenticeship or traineeship pathway have the opportunity to provide feedback.

The focus of improvement actions is meeting the needs of the clients.

Continuous improvement activities have led to measurable improvements to the business.

8 Maintaining records Standard 3: Management systems are responsive to the needs of clients, staff and stakeholders, and the environment in which the RTO operates.

3.2 The RTO uses a systematic and continuous improvement approach to the management of operations.

3.3 The RTO monitors training and/or assessment services provided on its behalf to ensure that it complies with all aspects of the AQTF Essential Conditions and Standards for Continuing Registration.

The RTO records are managed systematically.

The RTO keeps all required records and clearly understands the purpose for any additional records they choose to keep.

Records are able to be accessed in a timely manner.



3.4 The RTO manages records to ensure their accuracy and integrity. The record management system is consistently monitored to ensure it is effective and improvements are made when required.

9 Compliance Condition 1 – Governance

The RTO’s Chief Executive must ensure that the RTO complies with the AQTF Essential Conditions and Standards for Continuing Registration and any national guidelines approved by the National Quality Council or its successors. This applies to all of the operations within the RTO’s scope of registration, as listed on the National Training Information Service.

The RTO’s senior officers and directors or substantial shareholders who are in a position to influence the management of the organisation must satisfy fit and proper person requirements unless these requirements have already been met through other legislative provisions.

The RTO must also explicitly demonstrate how it ensures the decision making of senior management is informed by the experiences of its trainers and assessors.

When an RTO focuses on providing quality learning, assessment and support services for its clients, it is likely to be compliant with the AQTF Essential Standards for Registration, as these standards are focused on providing quality outcomes for clients.

* Western Australian Dept of Education and Training, Apprenticeships and traineeships – good practice guide for registered training organisations, DET, Perth, 2008.


Given that the AQTF does not single out apprenticeships and traineeships for special attention, any discussion of its effectiveness as a quality assurance mechanism for apprenticeships and traineeships becomes a broader discussion of the AQTF and it role in assuring VET more generally. Such a discussion is beyond the brief of this paper, but we include it in the appendix for the interested reader.

However, what is clear is that the quality of apprenticeships and traineeships is fundamentally going to depend on the employer and the training provider, with the field staff there to provide pastoral care. It is a fact of life that a compliance-focused quality assurance system may prevent the odd disaster but is unlikely to in itself guarantee good quality. This will depend primarily on the culture and goodwill of the employer and the training provider.


References Department of Education, Employment and Workplace Relations, Annual Report 2008—2009 Department of Education, Employment and Workplace Relations 2010, AQTF Essential Conditions and Standards for

Continuing Registration, viewes 20 October 2010, <http://www.training.com.au/pages/menuitem5cbe14d51b49dd34b225261017a62dbc.aspx>.

Skills Australia 2009, Lifting quality in training, viewed 10 September 2010, <http://www.skillsaustralia.gov.au/PDFs_RTFs/CommuniqueSIF.pdf>.

South Australian Department for Employment, Training and Further Education 1997, A guide to the quality system for the SA VET sector, Department for Employment, Training and Further Education, Adelaide.

Department of Education and Training, Western Australia. (2008). Apprenticeships and traineeships – good practice guide for Registered Training Organisations. Retrieved 08 30, 2010, from http://www.vetinfonet.det.wa.edu.au/progdev/docs/good_practice_guide.v5.pdf


Appendix: Some thoughts on quality assurance and the AQTF

Using quality systems as a basis for regulation

Good training appears to be difficult to achieve directly using legislation.

This raises the interesting question about how sensible it is for governments to mandate that vocational providers institute quality assurance in their organisations. To attempt to answer this issue we need to understand the history of the quality movement. The most quoted example of the power of quality systems is seen in the rise of the Japanese economy after the Second World War, which started in the automobile industry. The theory of quality systems is steeped in the concept of gradually improving product quality. This is done by collecting pertinent manufacturing and other related data. The approach to quality became more focused in the mid-1980s with the worldwide adoption of the ISO 9000 set of standards. This also permitted the quality movement to evolve out of the manufacturing environment and be increasingly adopted by service industries such as health and education.

Thirty years later there are some powerful messages on the success of the adoption of quality systems by organisations. A critical factor is that the quality culture must be owned and supported by the executive of the organisation. This is a very important principle, as quality is both a culture as well as a set of ‘how to’ tools. Quality systems rarely succeed when only one of these elements is present and hence do not flourish in situations where they are imposed.

Another issue implicit in the implementation of most quality systems is the fundamental role of the internal audit process within organisations. Ideally, the role of the external auditor is to then oversee the effectiveness of the organisation’s own findings from review and how it continually and systematically improves its operations. Clearly the effectiveness of this role must be questionable, where the external auditor instead needs to impose the quality agenda.

A final issue with quality systems is that, when first introduced, the standards and the auditing of these standards were heavily focussed on procedures and compliance to these procedures. This meant auditors often adopted a ‘tick and flick’ approach to auditing. An unfortunate consequence is that ‘tick and flick’ was often seen as a satisfactory tool for devising and implementing regulation, since much legislation invariably requires that something has to be done and visible records need to be maintained to show that this has occurred. This is where the legislative links to ISO Standards appear to coincide.

However the ISO 9000 Standards have evolved and there is an increasing focus on the outcomes of the quality systems used by organisations, and hence the auditing of these outcomes. This means that ‘right and proper’ is displaced by ‘fit for purpose’ for the particular context. The AQTF has also evolved and while there is an increasing focus on outcomes, it still maintains a strong compliance base; for example, the conditions imposed on RTOs which include governance, financial management, insurance and integrity in marketing. The question here is that can these two often potentially contradictory approaches coexist in the one set of standards?

The recent experience of AQTF auditors is that this dual focus makes the registration of RTOs more challenging, particularly as the auditor needs to understand the business and what it is trying to achieve when accessing outcomes during an audit. To do this objectively the auditor needs to use the data generated by the business (if indeed these actually exist!) to show continuous improvement. It is difficult to do this in just one business but to apply this systematically across many different businesses and to


attempt to compare them is potentially a nightmare. This issue is perhaps best demonstrated in what is acknowledged as the most critical element in the AQTF:

Standard 1: The RTO provides quality training and assessment across all of its operations


(a) have the necessary training and assessment competencies as determined by the National Quality

Council or its successors, and


(c) can demonstrate current industry skills directly relevant to the training/assessment being undertaken,

and

(d) continue to develop their Vocational Education and Training (VET) knowledge and skills as well as

their industry currency and trainer/assessor competence.

1.5 Assessment including Recognition of Prior Learning (RPL):

(a) meets the requirements of the relevant Training Package or accredited course

(b) is conducted in accordance with the principles of assessment and the rules of evidence

(c) meets workplace and, where relevant, regulatory requirements

(d) is systematically validated.

The experience of the NQC is that these elements are the most problematic to audit but, as shown above, are some of the most critical to apprentice success. This is also an area where ‘ticking the box’ gives no guarantee whatsoever that the all important training and assessment will produce good outcomes. Instead processes need to probe more deeply. The auditor needs to be open to a wide range of equally valid practice options, dependent on the circumstances or market niche.

Increasing the effectiveness of apprenticeship system through regulation

We are now faced with several key issues that would clearly help to increase the effectiveness of apprenticeship system but would best be achieved by improvements to the way the AQTF is implemented. These include:

� an effective separation of the compliance and continuous improvement components of the existing AQTF by the new VET regulator and a re-adaptation of the external auditing and assessment of these components

� an enhancement of the existing AQTF Excellence standards to recognise and foster continuous improvement but using a peer review process

� an increased use of moderation and validation strategies in assessment or the introduction of a greater level of externally supervised summative assessment

We now briefly consider each issue.


Separation of the compliance and continuous improvement components of the existing AQTF

The current AQTF has two components: one relates to compliance conditions with the other addressing the continuous improvement of the organisation’s core activities. We have shown it is quite appropriate to have ‘conditions of registration’ that need to be met as part of training and assessment by RTOs regardless of whether the student is an apprentice or not. It is these ‘conditions’ that are more amenable to traditional compliance auditing.

It is clear that a number of the current standards still have significant elements of compliance. This includes many of the elements of Standards 2 and 3, which are concerned with meeting specific requirements. It may be plausible to bundle these elements to be reviewed in a similar fashion as if they were part of the conditions of registration. The role of an external auditor should be to assure that this is happening effectively. It could involve a combination of on- and off-site review. It could also be enshrined in national legislation.

Enhancement of the existing AQTF Excellence standards to recognise and foster continuous improvement

We argue that the core aspects of RTOs about which we might wish to be assured may need to be engaged quite differently as they are actually about the effectiveness of the RTO in its niche. This cannot be audited with a compliance methodology. It needs to be assessed by very different principles and at a different time and space, which could involve peers and industry experts. In this sense it would be something between the Institute of Trades Skills Excellence model and the approaches used very successfully in higher education. These principles are also more akin to the Business Excellence principles to which many companies worldwide are now aspiring. These include the US Baldrige or the UK Investors in Excellence models. Australia has been slow to capitalise on these directions, yet the AQTF has already developed a provisional set of Excellence standards that have been piloted.

As this performance information would be publically available the consequence would be that the marketplace now has the potential to decide about the quality of the product from the RTO as assessed by its peers and stakeholders.

Increased use of moderation and validation strategies

In the critical areas of delivery and assessment of the training outcomes, whether there is enough objectivity in having the same staff member involved in the training and the summative assessment of the student has been questioned. This concern is compounded because moderation is not a mandatory requirement in the AQTF, nor are assessment processes necessarily well validated. Furthermore, despite having a pivotal role in developing training package qualifications, apart from those licensed areas, industry is often conspicuously absent in the assessment process (Skills Australia 2009) and perhaps even contemptuous of it.

The underlying philosophy in each of these key areas has been questioned by a variety of commentators and the question of whether an independent summative assessment system in Australia is called for. Such an approach was suggested by the recent OECD review. We suspect that significant improvements to the quality of assessment processes and the introduction of more stringent approaches to moderation and validation may be the preferred option. This is certainly where NQC seems to be headed with the recent work it has completed and published.

Documents

The apprenticeship and traineeship system’s … · NCVER Report 3 final Page 3 ... The apprenticeship model combines a contract of training with a contract of ... for the apprenticeship