Chapter 6 - The role of industry and other stakeholders
Introduction
6.1
This chapter examines the role of industry in identifying its current
and future skill needs and in developing the skills of its workforce. It also
briefly examines the role of other stakeholders in contributing to skills
formation policy development. The primary focus is, however, on recent and
proposed changes to industry advisory arrangements, which emerged as a major
issue for some stakeholders during the inquiry. Many details of the industry
advisory arrangements were either unfinalised or not well understood during the
life of the inquiry and at the time of the report. Thus, while some submissions
and evidence commented on the likely effect of recent or proposed changes, this
was often necessarily based on incomplete information. This has complicated the
committee’s task in forming an assessment of the new arrangements.
6.2
A number of submissions and witnesses raised the need to involve a
broader range of stakeholders in the planning and delivery of the national
training system. The committee observes an increasing recognition, including by
ANTA, of the important role of partnerships between communities, industry and
education and training providers in meeting the skills needs of industry, communities
and individuals. This may reflect an increased understanding of the importance
of skill ecosystems, which often have an industry-regional dimension, in the
patterns of skill supply and demand. There is a growing body of opinion that
the consultation arrangements for skills planning need to better reflect this
new, or at least heightened, focus. However the evidence suggests that to date,
this has been slow to percolate through into changes in policy structures and
processes at the national level.
The role of industry
6.3
As Chapter Three explains, the context for skills formation has changed
dramatically since the 1980s, with the need for higher skill levels across much
more of the workforce and constant change and innovation creating new skill
requirements and the need for regular upskilling of the existing workforce. Responsibility
for on-the-job training of new entrants to the workforce has shifted from a few
major public or private sector employers to industry as a whole. Australia’s
training arrangements have been altered to better accommodate the demands of
this new environment, in particular the need for information on evolving skill
needs, and to support a broader range of employers in training of new entrants
and the existing workforce.
6.4
During the 1980s and early 1990s, the Commonwealth’s approach to
increasing industry engagement in training in this new environment could be
characterised one of ‘carrots and sticks.’ The training reform agenda of the
late 1980s and early 1990s was aimed at adjusting the arrangements for the
‘supply’ of skills to provide a more responsive, flexible training system,
reflecting industry’s needs and circumstances (the ‘carrot’).[1]
The Training Guarantee Act, requiring enterprises above a certain size to
either invest a certain amount in training their workforce or pay a levy, was
aimed at increasing the ‘demand’ for training (‘the stick’).The training
guarantee, introduced in 1990, was suspended in 1994 and abolished in 1996.
6.5
With the abolition of the training guarantee, national skills formation
policy has concentrated predominantly on further reform to the supply of
skills, more recently through initiatives such as training packages, the
extension of the New Apprenticeships scheme to include adults, the introduction
of user choice funding and the development of the training market. The focus is
on being as responsive as possible to industry’s demand by broadening the range
of training options and the sources of the supply of skilled people and
overcoming identified or perceived barriers to greater employer engagement in
training.[2]
This model could be characterised as one where the pattern of demand from
industry is assumed to be ‘given, optimal and perfectly informed’ and the role
of policy is to ensure that training adjusts to the meet industry demands.[3]
Industry advisory arrangements, and the partnership between industry and
government manifest in the national training system, are designed to assist the
training system to adjust to industry’s needs.
6.6
Submissions and evidence from several quarters, discussed in more detail
Chapter Three, challenged the premise that this reliance on a supply-side model
of skills development provides an adequate basis for ensuring a sustainable
skills base for industry. There was even greater concern that the current
policy direction is unlikely to ensure that Australia pursues the ‘high skills’
path to economic development, a balanced path of high skills and intermediate
skills development or equitable access to opportunities for training and
employment. Australia’s relatively poor record in creating high skill jobs,
persistent skill shortages in some critical industries and growing inequities
in access to training and employment opportunities, are presented as evidence
of the need for national skills policy to re-instate a focus on strategies to
increase industry’s demand for, and utilisation of, skills.
Industry consultation and
advisory arrangements
6.7
Australia’s system of vocational education and training is based on the
principle of partnerships between the key stakeholders, principally
Commonwealth and state and territory governments, and employers and employees. A
fundamental principle underpinning the introduction of the national training
system in 1992 was that it would reflect the needs of industry, represented by
both employers and unions, working in cooperation with the Commonwealth and
state and territory governments. Consultation and advisory arrangements are
among the main mechanisms for identifying and communicating industry needs and
engaging industry with the VET sector. The ANTA Board and the industry advisory
bodies and the various committees and councils within ANTA tasked with
examining, advising and reporting on aspects of the training system, provide
the main vehicles for consultation and advice.
6.8
This section will examine issues raised during the inquiry about the recent
and proposed changes to industry advisory arrangements, against the background
of the previous arrangements. Issues to be examined include:
- the implications for the effective operation of a national
system;
- whether the revised arrangements and other developments signal a
significant shift from the principles on which industry advisory arrangements
were established, that is a partnership between employers and employees; and
- the capacity of the new arrangements to provide advice on and
engage with the full spectrum of industry interests, including small and medium
enterprises, industry in smaller states and territories and new and emerging
industry sectors.
Past
arrangements and proposed new arrangements
6.9
The role of the ANTA Board in providing advice to ANTA and supporting it
in all its functions was discussed in some detail in Aspiring to Excellence,
the Committee’s report on the quality of vocational education and training
(2000). Evidence during this inquiry on the ANTA board was limited to a
recognition that the recent ex-officio appointment of an education sector
representative to the Board was a welcome development, but one that needs to
complemented by education sector representation on the various committees and
advisory bodies within ANTA.[4]
Union representatives also raised a concern at their exclusion from some of the
working parties within ANTA. The underlying message was that the principles on
which the national system was based and the importance of a genuine partnership
between employers–employees and industry should be reflected in a cooperative
and collaborative approach to all aspects of policy development.
6.10
Until recently, ANTA has been advised by a group of 29 national industry
training advisory boards (previously known as ITABs). Membership of the boards
is drawn from employer and union associations in the relevant industry area. The
role of the national ITABs was to:
- provide advice on industry needs to ANTA, including the
preparation of national industry VET plans;
- develop and revise the national training packages for the
industry sector; and
- promote investment and engagement in training within the industry
sector.
State
industry advisory arrangements
6.11
These arrangements have some parallels at the state and territory level
where a series of state ITABs, some in effect since the 1970s, have provided an
interface between governments and industry. To varying degrees, state ITABs
have also had a relationship with their national counterparts, providing some
form of network of ITABs for the sector, although industry coverage does not
always align. Roles for state ITABs have varied across jurisdictions but
included:
- advice to government on industry needs (including in the context
of the preparation of state VET plans);
- promotion of training packages and training pathways; and
- depending on the ITAB, a range of related training services,
possibly on a fee-for-service basis.
6.12
ITABs have also had a role in accreditation and assessment of RTOs in
some jurisdictions.[5]
6.13
These roles span both the needs of the state and territory governments
and of the national training system. Some evidence indicates that the promotion
of training packages and development of training pathways, in support of the
national training system, appear to have consumed most of the resources of many
state ITABs over recent years, often at the expense of their capacity to
provide sound advice on industry training requirements, in support of state and
territory governments.[6]
6.14
Until 2002, the Commonwealth made a significant financial contribution
to ITABs in all states and territories, presumably in recognition of their role
in supporting the national training system. Most, but not all, state and territory
governments also contributed financial support to their local ITABs, presumably
in recognition of their support to state and territory VET planning. As a
general rule, Commonwealth funding exceeded state and territory contributions,
at times to a significant extent. In the 2002–03 budget, the Commonwealth
announced its decision, apparently taken without advance consultation with the
states and territories, to ‘rationalise funding for state and territory ITABs’
by reducing funding in 2002–03 and ceasing it entirely in 2003–04.[7]
This will translate into an annual saving to the Commonwealth of $10 million
and has led to significant restructuring and rationalisations of ITABS in most
states and territories, with some reviews still underway at the time of this
report.
6.15
States have adopted different approaches to establishing revised
industry advisory arrangements:
- Victoria has restructured its network of ITABs to provide advice
on the directions in its skills strategy, established a small advisory
committee of key stakeholders to report to the Victorian Learning and
Employment Skills Commission on future advisory arrangements and on training
and funding priorities, and tasked the Office of Training and Tertiary
Education (OTTE), with identifying skill shortages and forecasting future skill
needs, with ITABs to validate that information;[8]
- the Tasmanian government, while recognising that state ITABs had
provided a valuable role in advising it on industry skill needs and promoting
training packages, withdrew its ITAB funding following the Commonwealth cuts,
reportedly because it could not afford to make up the funding shortfall. An independent
industry strategic advisory group now advises the state training authority on
strategic issues, with a number of dedicated industry liaison officers for
outreach purposes and specialist services purchased as required;[9]
- the ACT government is also restructuring and streamlining its
arrangements; and
- the Western Australian government has increased its funding to
state ITABs to help offset the loss of Commonwealth support.
National industry advisory arrangements
6.16
In addition, over the past year ANTA has embarked on a project to
restructure and rationalise the national industry advisory arrangements, with
the aim of reducing the current 29 bodies to 10 national skill councils, with
revised funding and accountability arrangements. In conjunction with these new
arrangements a National Industry Skills Forum of stakeholders will be
established, comprising representatives of peak employer bodies and the ACTU,
chairs of the new skill councils, chairs of the state training agencies and the
ANTA Board members, to provide ANTA with strategic advice on VET directions.
6.17
The decision to establish new national advisory arrangements follows a
series of reviews of those arrangements. The report of the most recent review
by Allen Consulting Group in October 2002 has not, however, been made public as
the ANTA Reference Group overseeing the evaluation failed to reach consensus on
its status and release.[10]
The committee is surprised that submissions and evidence during the inquiry
revealed a reasonable degree of uncertainty and suspicion among many stakeholders
on the purpose and some details of the new arrangements, as well as of changes
to Commonwealth support for state-based arrangements. The committee considers
that this is a regrettable situation, given that one of the main purposes of
advisory arrangements is to provide an avenue for engaging stakeholders in the
formulation of policies and programs.
Effect of the new industry
advisory arrangements
6.18
The committee received extensive evidence commenting on the withdrawal
of Commonwealth funding for state ITABs and the changes to national industry
advisory arrangements now in progress. Most submissions and witnesses
acknowledged the variable performance of ITABs both at the state and national
level, due in part to their varied roles, antecedents, performance requirements
and personnel, but differed in their view on the most appropriate response to
tackling this issue, and the effect of the funding cuts. There were also
varying views on the merits of the new model for national advisory
arrangements, but a more common concern that the proposed funding is likely to
be inadequate to support the work of the councils.
Changes at state and
territory level
6.19
At the outset, the committee observes that the varying views about the
effect of the loss of Commonwealth funding on state industry advisory
arrangements, indicate a lack of consensus among some stakeholders on the role
of state advisory arrangements in the national system. They also suggest the
need for improved dialogue and communication between partners on these matters.
6.20
Some partners in the national system clearly regard the state industry
advisory structures as an integral part of the national system. The ACTU thus
expressed concern that the withdrawal of Commonwealth funding for state ITABs
will affect the implementation of training.[11]
The Victorian Government contended that the withdrawal of Commonwealth funding has
‘damaged collaborative approaches to industry advisory arrangements’ and
‘undermined the ANTA Agreement, which is underpinned by the provision of robust
industry advice to inform State and national planning.’[12]
Victoria further commented that ‘it is not clear why the Commonwealth has
changed its policy position and funding.’ The Tasmanian Government also expressed
concern that linkages between the new national industry advisory arrangements
and states/territories on labour market skill issues and training packages
remained unclear, hampering its capacity to strategically plan for effective
alignment of state and national industry advisory arrangements. It called for a
better communication on these and related issues.
6.21
The Pharmacy Guild of Australia also expressed concern, as an industry or
professional body, that the changes have reduced its capacity to contribute to
the formulation of policy on vocational education and training needs. According
to the Guild, the Wholesale Retail and Personal Services ITAB, with which it is
associated, has had a strong network and sound relationships between national
and state bodies and the Guild is concerned that this ‘successful and
productive network’ is now threatened by the cuts to state ITAB funding, and by
the recent ANTA review of national ITABs. The Guild expresses the concern that
the ‘beneficial results produced by some ITABs are [being] lost due to the poor
performance of others’.[13]
6.22
The role of state ITABs in the national system included advising their
national counterparts on the needs and circumstances of industry in their
jurisdictions so that these could be taken into account in the development of
training packages. As noted, state ITABs have also played an important role in
promoting training packages in many jurisdictions. The committee acknowledges
that these functions were clearly not always effectively discharged. For
example, the committee was told that some training packages fail to reflect the
circumstances of industries in Tasmania, where there is limited specialisation,[14]
or the needs of industry outside the state capitals.[15]
The committee considers, however, that the overall reduced resourcing of
industry advisory arrangements is likely to result in a reduced capacity to
promote packages at the local level. A particular concern is that there will be
a reduced capacity to engage with small and medium enterprises at state level,
given that some of the smaller states such as Tasmania, which have
significantly streamlined their industry advisory arrangements, have a high
proportion of small business.
6.23
In response to a question from the committee, ANTA acknowledged that the
reduced funding to state and territory ITABs might affect their individual
capacity to promote training packages, but advised the committee that it
understands that jurisdictions remain as committed as ever to the marketing and
promotion of these products.[16]
Dr Erica Smith, however, advised the committee that the most likely outcome is
that the marketing of training packages at the local level will now be
undertaken primarily by RTOs, Group Training Companies (GTCs) and New
Apprenticeship Centres (NACs) ‘which of course have their own interests to
pursue, income to generate and targets to meet, which might not necessarily coincide
with the needs of industry or national skill development needs.’[17]
The committee agrees that this is a matter of concern.
6.24
The need for a clear, logical and stable framework for relationships
between national and state ITABs was taken up in comments from the Australian Industry
Group and the Engineering Employers Association of South Australia which
recommended a harmonisation of reviews of the Commonwealth and state industry
advisory arrangements to ensure a consistent approach and for state legislation
to enshrine the revised state arrangements.[18]
6.25
Another major employer group, the ACCI, put a different point of view,
implying that it does not regard the state advisory arrangements as an integral
part of the national system. ACCI contends that there was no coherent network
of state and national ITABs to dismantle, because industry arrangements varied
significantly with industry grouping and also jurisdiction. It also refers to
instances of unproductive conflict between the national ITAB and some state
counterparts.[19]
6.26
ACCI also challenged the view that state ITABs should have an important
role in informing VET planning at state level, suggesting that they rarely have
this capacity, and that planning is better undertaken by government departments
and agencies in each jurisdiction, with an ‘adequately resourced validation
process conducted by relevant employer and employee bodies at a State/Territory
level’. In ACCI’s view, each jurisdiction should decide on their own
arrangements for seeking industry advice on skills development, but the
preferable approach is for governments to engage with relevant employer
organisations, and employee organisations, directly, supported by adequate
resourcing as required.[20]
ACCI’s view was echoed by some industry groups appearing before the committee
in Western Australia.[21]
6.27
A different view was put by some ITAB representatives and state
governments. The Victorian Government takes the view that the work that ITABs
will undertake to progress its economic and skill formation agenda ‘is
essential.’ According to official statements, ITABs will play a key role in
supporting industry and the VET system to move to an innovation economy.
Specific roles include: development, maintenance and extension of industry
networks to support the identification of priorities for VET, promote training,
link training providers and enterprises and involvement in innovation
initiatives and Specialist Centres; support for national and state training
policy directions including training product development (Training Packages and
local curriculum); and validation of research prepared through the Research
Program through information from their industry networks.[22]
6.28
The Western Australian Government advised the committee that it
considers the development of a joint employer-union view on training issues as
a fundamental contribution of the ITAB structure, and important in ensuring
‘industry advice is seen to be ‘independent’ or ‘disinterested’.[23]
A number of other witnesses put a similar view,[24]
including Dr Erica Smith who considers that ITABs, with links to all
stakeholders in the VET system, perform a valuable role by taking a broader
view of skill formation needs that transcends the views of any one group.[25]
As noted, however, it is this very aspect of ITABs – that is the mediation or
moderation of individual stakeholder views – which appears to be least
supported by some employer and industry associations.
6.29
ANTA’s official position on the role of state industry advisory
arrangements in the national system could be characterised as somewhat
ambiguous. It advised the committee that, following the removal of Commonwealth
funding ‘the roles and structures of the state and territory industry advisory
arrangements are now at the sole discretion of the respective jurisdiction,’[26]
implying that the exact nature of the arrangements is not relevant to the
national system. At the same time, in the following exchange, it acknowledges that industry input at the state level is
fundamental to a national training system with a strong focus on industry needs:
Senator SANTORO—In terms of the ANTA
board’s view of the strategic position of industry within the VET system,
particularly a state VET framework and performance, what does ANTA think of
industry input into VET particularly at a state level?
Mr Stephens—It is fundamental. It is certainly the
vision that we were espousing. Our national strategy has industry at the centre
providing advice and leadership to the system, a focus on the individual and a
focus on communities. Certainly with industry it is way out there in front
leading. There have been a whole range of changes that have happened at the
state level...there was a meeting between the people in our organisation
working on the industry skills councils and those in states and territories to
try to make sure that we can establish complementary structures that knit
together advice that might come from state industry advisory arrangements into
these national councils as well. So we are very keen to make sure that it works
at all levels.[27]
6.30
ANTA subsequently confirmed to the committee that it is committed to
working with each
jurisdiction to ensure that the new national industry advisory arrangements
work to complement and optimise those at a state level.[28]
6.31
An effective partnership between the Commonwealth and states and
territories and industry, based on a partnership between employers and
employees, is at the heart of the national training system. The committee
considers that state industry advisory arrangements are an integral part of the
national training system. It is therefore concerned that the changes to
Commonwealth support for state industry advisory arrangements were taken on a
unilateral basis, without apparent consultation with those most affected. The
committee agrees that there was a case for review and undoubtedly reform of the
previous state industry advisory arrangements to establish clear objectives and
performance indicators and ensure representative membership and coherent
relationships with national counterparts. Despite the widespread support for
the state ITAB ‘model’, there is also clear evidence that ITABs have varied
significantly in the extent to which they effectively represented the interests
of their industry sectors and contributed to training package development and
implementation.[29]
However the committee considers that the issue of funding for state ITABs has
fundamental implications for an important element of the national system, and
as such, should have been discussed with ANTA MINCO, prior to any Commonwealth
decision, consistent with the spirit of cooperative federalism.
6.32
The committee also
considers that state industry advisory bodies have a useful role to play as
‘honest brokers’ in establishing partnerships between industry, training
providers and communities and assisting industry and the community to navigate
the extremely complex landscape of the national training system. The committee
considers that a better way to address the perceived and no doubt real problems
with some state ITABs would have been through an open review to establish the
appropriate roles, structures, industry coverage and relationship with the
national system.
New national industry
advisory arrangements
6.33
ANTA has provided a spectrum of reasons for the proposed new national
industry advisory arrangements. Performance of ITABs is said to have been
variable, with a general failure to engage small and medium enterprises in
training. The amalgamation of ITABs and reduced number of bodies will
reportedly break down industry ‘silos’, reset boundaries to more accurately
reflect contemporary industry and occupational groupings and promote a broader,
cross-sectoral approach, as well as fortuitously reducing total infrastructure
costs. The total annual funding available for the new arrangements will be $15
million annually, subject to Commonwealth allocations each year. ANTA has also
called for the new arrangements to have a more focused and strategic role, with
a stronger emphasis on new and emerging industries, stronger links with the
national innovation system, including Cooperative Research Centres, and with
industry action and skill shortage agendas, and a greater capacity to engage
with industry including SMEs. At various points ANTA also notes that the new
arrangements (perhaps in conjunction with the National Industry Skill Forum)
should also be able to address skill shortages before they become a problem.
6.34
Funding and reporting arrangements for the new national bodies are also
aimed at increasing flexibility and strengthening performance and
accountability, by replacing the current mix of project and general funding,
with a single line of funding based on a performance targets against a three
year strategic plan. Funds will be disbursed over the year, on the basis of
achieved performance targets. Allocations will depend on factors such as the
importance of the industries covered, in terms of employment and economic
significance, the size of the task in terms of package development and
maintenance and the geographic spread.[30]
6.35
The new arrangements raise a number of issues and questions. Chief among
these is the practicality of having councils represent a large and sometimes
diverse range of industries and occupations. While ANTA’s agreed framework for
the new skill councils provides for a range of several different structural
arrangements such as industry specific sub-committees, formal standing
committees or subsidiary boards, ensuring an adequate focus on the needs of all
sectors or sub-sectors will be a significant challenge. Even with the recent suite
of 29 national ITABs, some industry sectors, such as the health and community services
sector[31]
and the leisure craft sector in Queensland complained of struggling to have
their voices heard. At the same time, some smaller industry groups, which have
been neglected under the current structure, see the new groupings as providing
a more natural fit with their needs and concerns.
6.36
The enforced nature of the amalgamations was a concern to union and some
employer groups. Mr Steve Balzary of ACCI told the committee that while ACCI
supports amalgamations as providing for some synergies, it does not support
forced amalgamations or the policy of setting a limit of 10 bodies. Indeed ACCI
members consider that it may be more appropriate at this time to have 13,
rather than 10, councils. In any case, ACCI’s members consider that it is
inappropriate and undesirable for government to force amalgamations as ‘these
are industry advisory arrangements, not government advisory arrangements, and
therefore industry has to own them.’[32]
6.37
The AiG advised the committee that it supports the new streamlined skill
council arrangements as a means of providing a more sophisticated national
forecasting system and overcoming the narrow demarcations between advisory
bodies, and consequently training packages, which currently reflect
‘traditional occupational award arrangements which are now breaking down
significantly’. Overall AiG considers the skill councils as ‘a move forward in
the maturation of the advisory system in this country’. Unlike ACCI, the AiG did
not express any concerns about the proposed number of councils or the
possibility of forced amalgamations but did express ‘great concerns’ about the
membership of the councils. The concern related to suggestions that industry
associations will not be able to nominate members for the boards of skill
councils, on the same basis as unions.[33]
6.38
While it is not opposed to some amalgamations and a new framework for
advisory bodies to reflect industry shifts and provide a better focus on common
skill sets across training packages, the ACTU views the forced reduction from
29 to 10 bodies with ‘grave concern.’ The nub of the concern is that some,
if not many, of the resultant bodies will have extremely broad industry
coverage, raising difficulties for smaller groups, perhaps in critical or niche
market areas, in having their voices heard.[34]
6.39
Both the ACTU and the AiG raised concerns that the $15 million available
for the new skill councils is far from adequate for the work they will be
required to undertake.[35]
6.40
A more fundamental concern for the ACTU and some industry advisory
bodies is whether the funding cuts to state ITABs and revised national advisory
arrangements reflect a withdrawal from the principle of industry leadership, through
a partnership between unions and employers, which has underpinned the national training
system. Other developments reinforce this concern, including the reference in
the new national strategy to ‘employers and individuals’, rather than ‘industry
and individuals’,[36]
the lack of union representation on ANTA’s ‘red tape committee reviewing
training contracts and probationary issues, despite employers and unions having
joint ‘ownership’ of the training contract,[37]
and the Commonwealth’s purported opposition to the CEOs or presidents of some
peak employer and union groups being represented at the highest levels on the
ANTA board. Ms Sharan Burrow, the President of the ACTU, summarised the
concerns this way:
If you are restructuring ITABs and defunding them or reducing
funding, if you are not serious about asking employer groups and unions as the
industry partners to put very senior people on to the ANTA board as a symbol of
the importance of this work, then what you are actually saying is that somehow
or other the national nature of an industry led system is not as important as
it once might have been.[38]
6.41
The ACTU submission also pointed to the National Industry Skills
Initiative, where employers worked with government to explore and resolve skill
shortages in some industries, as evidence of a sidelining of the bipartite
industry advisory bodies.[39]
6.42
The submission from the Business Skills Victoria (BSV) also expressed
concern that the decision to cut funding to state ITABs and to ‘rely on advice
from key stakeholders such as ACCI, AIG, BCA and NFF’ suggests that the industry-led
system, which requires that the interests of workers and employers are fairly
balanced and that public policy is not skewed to serve any particular private
interests, is under attack. According to the BSV:
...industry-led does not mean employer led, or union led...[but]
there is a growing view within industry that while the rhetoric says that the
VET system is industry-led, the training agenda is now driven by government
policy and industry is, in practice, frozen out...Whilst we support the need to
be constantly fine-tuning industry advisory mechanisms, the Board is concerned
that the proposed changes will result in an eventual dismantling of the
national system through inadequate industry consultation and ownership of the
system.[40]
6.43
The committee considers that these concerns are understandable. They
could be dispelled by ANTA issuing a clear statement of its commitment to an
industry-led national training system, spelling out how this commitment will be
reflected in the consultation structures and processes of the national system.
6.44
The committee agrees that there appears to have been a case for some
review of the national industry advisory bodies to better reflect contemporary
industry skill profiles, ensure that membership is representative, and provide
clearer roles and performance indicators. The committee also supports the
proposal to rationalise the current suite of training packages so as to better
reflect contemporary industry skill profiles and identify common and
cross-cutting competencies, or sets of competencies. A more streamlined set of
training packages has the potential to provide a stronger foundation for
recognition of skills gained in other industries and occupations, and thus
facilitate cross skilling and upskilling. The committee does not consider,
however, that this necessarily dictates ten skill councils. The number of skill
councils should be based on a set of clear principles for effective industry
groupings, reflecting industry skill profiles and training needs and the agreement
of industry members, rather than an arbitrary figure, possibly reflecting
financial considerations. Commonwealth funding should then reflect the amount
required to perform those functions effectively, again rather than an arbitrary
figure, unrelated to need.
6.45
While those aspects of the new industry advisory arrangements discussed
above give rise to some concerns, the committee also acknowledges some positive
features of the proposed new industry advisory model. The proposed links
between the new skill councils and the Cooperative Research Centres (CRCs) will
be an important advance, and significantly enhance the capacity of the councils
to identify the skill needs associated with emerging industries and
technologies. The National Industry Skills Forum and the proposed new national
planning process offer the prospect of a more strategic approach to identifying
current and future skill needs. The establishment of clear performance
indicators and funding arrangements also offer the potential for improved
performance and operation of the new bodies.
The role of industry
advisory bodies
6.46
There are differing views among stakeholders on the appropriate roles
for the new skill councils. ANTA states that the skills councils will have two main
roles, being to:
- actively support the development, implementation and continuous
improvement of high quality, nationally recognised training products and
services, including enhancing innovation, rationalising materials where there
are cross-industry synergies, and improving efficiency; and
- assist industries, enterprises and their workforce to integrate
skill development with business goals and support accurate industry
intelligence on future directions - including provision of strategic advice on
industry skills and training needs to the National Industry Skills Forum.[41]
6.47
Elsewhere ANTA has indicated that the skill councils, working in
partnership with ANTA, will provide a more strategic and forward-looking
approach to identifying current and future skill needs, apparently in line with
the vision articulated by the Australian Industry Group. More specifically,
ANTA sees the roles of the skill councils as providing ‘market intelligence’ on
the needs and trends within their industries. Councils will not, however, be
resourced or expected to undertake research, such as employment forecasts,
which will instead be the responsibility of ANTA.[42]
6.48
While the committee supports an integrated and co-ordinated approach to
labour market and skills forecasting, and agrees that it is more efficient for
occupational training needs based on employment forecasts to be undertaken by a
single agency, it also considers that skills councils should retain a major
role in identifying the skills requirements for their industry sectors. This
goes beyond simple market intelligence to include analysis and advice, not only
on the drivers of skills supply and demand, but also issues such as access to
skills development across regions and segments of the workforce.
6.49
In stark contrast to the minimalist role for skill councils preferred by
some employer groups, union representatives called for a broader and more
active role for skill councils, including in stimulating increased employer
demand for and contribution to training. Among the proposed additional roles for
skill councils are:
- promoting the implementation of training packages through a
stronger role in the assessment and delivery of training;
-
promoting greater recognition of prior learning and training of
the existing workforce, in partnerships with RTOs;
- developing cooperative arrangements between firms and with
training providers to deal with the limitations of exposure to skills in
particular enterprises and with casual and contract labour mobility;
- the development of mechanisms to achieve greater and more
equitable employer contribution to training effort through the administration
of a training levy, industry training funds or tax credit schemes;
- developing training plans to deal with industry restructuring and
pending redundancy;[43]
and
- contributing to whole-of-government processes for industry,
economic and social development.[44]
6.50
Union representatives indicate that additional resources would be
required to support some, but not all, of these activities.
6.51
These proposed roles echo to some extent the broader skills formation
agenda of the new sector skill councils in the United Kingdom (UK). Under the UK
model, skills councils will have a broad responsibility for advancing skills
formation in their industry sectors, with the capacity to consider issues such
improving productivity within the industry and the adaptability of the
workforce, and ways of leveraging additional employer investment in skills
development.[45]
6.52
The union proposals, and to some extent the UK model, reflect a
recognition that effective skills development policies cannot be developed in
isolation from broader industry and labour market considerations. As discussed
in previous chapters of this report, there is clear evidence that the current
policy direction is not adequate to provide a sustainable skills base to meet
current and future needs in some industries, sectors or regions, or to move
industry further towards a high skill equilibrium. As the outcomes of the
National Industry Skills Initiative demonstrate, strategies to address skill
shortages and to develop a sustainable skills base must take account of the
broad range of factors which influence the supply and demand for skills within
a region or industry, including working conditions and career paths and the
pattern of market incentives within the industry which either promote or
discourage investment in skills development.
6.53
The evidence to this inquiry, as outlined in previous chapters also
supports the need for cooperative approaches between employers, unions and
governments to address issues such as the retraining of the existing workforce
and workers displaced by technological change or industry restructuring. The
committee considers that the skills councils, representing the key stakeholders
in these processes, are the appropriate forums to consider these matters.
Consideration should therefore be given to expanding the charter for skills
councils to require them to advise on strategies for developing a sustainable
skills base for their industries and promoting the development of a range of
high and intermediate skill levels and equitable access to training
opportunities. This leads on to a discussion on the issue of industry
investment in training, to which we now turn.
Industry investment in training
6.54
The need for additional public investment in vocational education and
training was discussed in Chapter Four on the Framework for Vocational
Education and Training. The committee also received submissions and evidence in
support of the need for increased industry investment in training.
6.55
There is mounting concern about the adequacy of industry investment in
training of its workforce and unequal access to training opportunities,
particularly for the increasing corps of casual and contract employees and
older workers with limited or no post-secondary education. As discussed in
previous chapters, the projected declines in the cohort of new workforce
entrants, along with rapid technological and workplace change, will require a
new policy focus on measures to retain people in employment for longer and on
regular retraining and upksilling of the existing workforce. This is arguably
primarily the responsibility of industry although there is a case for the
government to support industry investments in training with social and economic
benefits beyond those accruing to the individual employer. Evidence of
structural barriers to industry training for new workforce entrants in some
industries and a ‘draining of the pool’ of skilled people, also indicate the
need for additional investment and more collaborative approaches to skill
formation.
6.56
For Dr John Buchanan, the key measure of industry’s investment in
training is expenditure on training as a proportion of payroll, with
expenditure on structured training (that is more likely to lead to portable
skills) as another important variable. From this perspective, Dr Buchanan sees
the static nature of employer expenditure on training as a proportion of
payroll (1.3 per cent) between 1996 and 2003 as a concern, given Australia’s
poor record in creating high skill jobs, and the large increase in
participation in VET (a quarter of a million apprentices and trainees) over the
same period. The reduction in employer expenditure on structured training as a
proportion of payroll, from 1.7 per cent of payroll to 1.5 per cent, is seen as
another indicator of a declining commitment to train. Commenting on this
combination of trends, Dr Buchanan concludes that:
...whilst there is the rhetoric of a national training market
being put in place, the reality is that there is massive cost shifting going on
where employers are accessing cheap labour with government support.[46]
6.57
His specific concern is that the current set of programs and incentives
in the national training system is encouraging too many employers to take the
‘low cost, low skills path characteristic of low skill ecosystems’, where
productivity and profit is achieved through work intensification and lower pay
rates. He explained that the challenge then is to change the regime that
underpins current arrangements.[47]
6.58
Dr Buchanan suggests that a skills levy, or similar mandatory system of
guaranteeing a minimum employer contribution to training, can be one means of
generating a new training regime and a high skills dynamic, because employers
who invest in training are more likely to value the skills that result, and use
those skills to productive ends.[48]
A discussion on the merits of levies and other measures to increase training
will follow in a later section of this chapter, after considering other
assessments of Australian industry’s training performance.
6.59
A number of witnesses took the view that employer investment in training
is either increasing or satisfactory by other measures. The ACCI submission
rejects the need to introduce compulsory training levies, a view it argues is
supported the findings of the same ABS survey cited by Dr Buchanan. These
include that:
- 81 per cent of all employers provided some training to their
employees in the 12 months to June 2002, a 20 per cent increase in
participation since 1997; and
- net expenditure on structured training by employers has increased
by 52 per cent since 1996.[49]
6.60
The committee notes, however, that as identified in Chapter Three, only
about 40 per cent of private sector employers provided training: the
overall figure is inflated by high public sector training rates. It also notes
that net expenditure alone is a poor comparative measure, as it may simply
reflect increases in the number of employees and the costs of training.
6.61
Like ACCI, Dr Andy Smith,
an academic, made a positive assessment of Australian employers’
contribution to training. He noted that the proportion of Australian workers
undertaking work-related training increased from 30 per cent in 1993 to 45 per
cent in 2001, and concluded that the majority of Australian workers are receiving
some form of training from their employers and many are undertaking formal,
off-the-job training in their firms.[50]
Despite the notorious difficulty in making valid international comparisons, he
also considers that these are more favourable to Australia than commonly
supposed, particularly if the focus is on training of existing workers. He
presents a comparison of employers’ expenditure on training existing workers as
a proportion of wages and salaries in Australia and some other OCED countries, as
showing that Australia lies towards the ‘upper end of the normal range’ of
between 1 and 3 per cent of payroll costs.[51]
The committee observes, however, that a similar comparison made in 1996 gave
the caveat that most Australian figures generally include expenditure on entry
level training (through New Apprenticeships for example) while European figures
generally exclude such expenditure (which is generally undertaken in
institutions in those countries).[52]
6.62
The committee notes the limitations of using comparisons of expenditure
on training over time or across countries as the sole measure of the adequacy
of investment in training. The quality of training, level and type of skills,
and access to skill development opportunities are equally, if not more important.
That said, the committee considers that the significant skill challenges facing
Australia and the key role that skills play in maintaining a competitive
economy, and the long way to go before Australians have ‘world-class skills and
knowledge’, as envisaged by the new national strategy, suggest that training as
a proportion of payroll could be expected to increase, rather than decrease
over time.
6.63
In this context, the committee notes that the submission from ANTA
itemised some of the skills development challenges facing Australian industry
in the immediate future. These include:
- the relentless pressure on costs, quality and productivity
produced by globalisation and competition which is increasing the demand for
high quality and skilled labour;
- the relationship between the introduction of new technology, new
work processes and the rapid evolution of new products and services requiring
new approaches to learning and skill development, with a much greater premium
on ongoing and “just in time” training;
- an increasing emphasis on the skills required to operate in
global markets, including international business skills;
- an increasing need for integrated approaches to skill enhancement
encompassing the development of a learning culture within firms and across industries
and more effective approaches to employee recruitment, retention and
retraining;
- retraining the existing workforce is rapidly emerging as a
priority issue, given demographic changes, changing work processes and job
requirements, technological change and the difficulty some industries have in
attracting young people or retaining existing workers;
- the need to address skill shortages; and
- the training implications of emerging regulatory, health and
safety and environmental requirements and international standards.[53]
6.64
An issue not raised by ANTA in this context, but of concern to a
significant number of stakeholders, is the increasingly inequitable access to
training opportunities. ABS data indicate that, while the overall absolute
levels of employer sponsorship of training had grown between 1997 and 2002, the
level of training provided to non-standard workers remained low: employers were
less likely to provide training to workers who were not permanent employees,
such as contractors, temporary agency workers and volunteers.[54]
The nature of the training provided us also likely to disadvantage casual
employees. Qualitative research undertaken by Hall in 2000 also found that
non-standard employees were likely to be provided with only induction and ‘near
fit’ training but not foundation skills.[55]
Apart from the serious equity implications of this trend, in particular the
effect that it has on casual workers’ future employment prospects, there are
also concerns about the long-term effect on the skills base of industries with
significant proportions of casual workers. The need to ensure a more equitable
access to training for casual and contract workers, was an important issue
raised during the inquiry. A study for the Victorian Government found that the
limited investment by employers in training of casual and contract workers
raises pressure for public intervention, particularly in areas of significance
to the economy or communities.[56]
6.65
Elsewhere ANTA has also recognised the need for skills formation policy
to stimulate Small and Medium Enterprises (SMEs) to increase their investment
in training both new entrants and existing workers. As noted in previous
chapters, there are several impediments to SME investment in training of
apprentices in the traditional trades, including the low cost-effectiveness of
traditional apprentices in the initial years of training and the pressures of
work intensification which mean that some small employers have little, if any,
scope to provide the supervision required for on-the-job training. Above all
there is the risk of poaching, which means that the employer who bears the cost
of training cannot be sure of obtaining the benefits. In these circumstances no
amount of information and exhortation is likely to persuade an individual employer
to increase their training effort. Collective approaches which share the costs
and benefits of training may be the only solution.
6.66
This gives rise to discussion about the merits of a levy, the most
common means of sharing the costs and benefits of training. Ms Kaye Schofield
argued that as skilled workers in strategically critical areas such as metal
trades become scarcer, the poaching problem (and associated wage spirals) will
become more apparent. She concluded that the approach to training based on employer
voluntarism in areas of strategic importance to Australia, such as
manufacturing, is simply not working. An alternative approach, based on the
various state-based building and construction industry training funds, was
suggested as likely to solve the free-rider problem, especially at entry-level.
Ms Schofield suggested that the Commonwealth and state and territory
governments need to actively support industries/regions to introduce training
levies, closely modelled on those in the building and construction industry,
acknowledging that this will require widespread consultation and debate and a
high degree of consensus.
6.67
As noted ACCI, and many other industry representatives, including the
Australian Industry Group, are strongly opposed to a levy. The Engineering
Employers Association South Australia told the committee that they oppose the
proposed training levy on manufacturing in that state, because it would reduce
the competitive position of those companies that manufacture in South Australia
and are forced to compete against imported products.[57]
On the other hand, there appears to be a general consensus that the levies
operating in the construction industry have been very effective in overcoming
the poaching and free rider problem and increasing the level of training. For
example, Mr Kruize of the HIA told the committee that the while the Association
originally opposed compulsory state levies for the industry, it now supports
them, with the caveat that money that is raised in one part of the industry should
remain in that part of the industry.[58]
The committee was also told that the arts industry in South Australia had
considered such an approach as a means of funding the training required in
their industry.[59]
6.68
There was less support for more universal levies, similar to the
approach adopted under the Training Guarantee Act. Mr Peter Laver, Chair of the
Victorian Learning and Employment Skills Commission told the committee that his
organisation has been researching strategies to increase employer investment in
training. While they had not formed a final view at the time of his appearance
before the committee, the preliminary view was that it would not be appropriate
to revisit or re-instate the training guarantee levy.[60]
Mr Mark Cully of the NCVER told the committee that Frances’ general levy system
is regarded as ‘largely dysfunctional’, but that Germany’s training system,
which is regulated by collective bargaining, rather than by statute, achieves
very high rates of apprenticeship.[61]
6.69
The committee agrees that the evidence suggests that the training
guarantee levy, while having achieved important benefits during the time it was
in place,[62]
may not be an appropriate model to increase employer investment in training and
the development of a higher skills rather than low wage path to further
productivity, at this time. Mechanisms to leverage additional employer
investment in training need to take account of the circumstances of the
industry, including the proportion of large and small companies, the relative
importance of skills and training for the industries’ sustainability and the
barriers to and benefits of training, suggesting carefully targeted strategies
rather than blunt instruments. This suggests industry-specific and possibly
industry-region-specific arrangements, which can address the specific needs and
circumstances of the skills ‘micro-systems’. Collective bargaining arrangements
or voluntary contributions to collective approaches, may in some cases, be as
or more effective than levies. And as the evaluation of the Training Guarantee
Act found, effective strategies, will also need to consider the broader range
of labour market and industry factors that impinge on skills formation and
utilisation.[63]
6.70
As discussed in the previous chapter, employers argued for appropriately
structured incentives from government, to help leverage or stimulate the
necessary investment from industry in training of the existing workforce.
6.71
The committee also notes, in this context, the evidence from Ms Kaye
Schofield, which highlighted the importance of ensuring that skills formation
strategies are set within the broader context of workforce development, to
ensure the effective utilisation for skills. More broadly, it was put to the
committee that a limitation of Australia’s current policy on skill formation is
its failure to recognise that skills formation is not a stand alone issue, but
must be addressed as part of an integrated suite of industry, social and
taxation policy. Ireland’s ‘whole of government’ vision of regional industry clustering,
IT revolution and niche market development supported by long term planning in
education, taxation and labour policy was raised as a model of what could be
achieved with the necessary vision and commitment.[64]
In this context, Australia’s current reliance on the demands of the individual
enterprise as the ‘cue for the supply system’ is said to be at odds with the
dynamics of the knowledge economy, which works through inter-firm
collaboration, clusters, networks, supply chains and distribution chains.[65]
The committee notes that ANTA’s submission acknowledges the need for
‘integrated approaches to skill enhancement encompassing the development of a
learning culture within firms and across industries’ as one of the major skill
challenges facing Australian industry. From the evidence put to the committee,
however, there is no indication of the priority that is accorded to this issue
and how ANTA proposes to progress it.
6.72
The committee is convinced of the need for skills formation to be placed
within a broader policy framework which takes account of the environment in
which skills are formed and utilised and the economic and social development
objectives. Ideally this should be a key issue to be addressed by the National
Industry Skills Forum.
6.73
More specifically, the committee is also convinced of the need to
significantly increase employer investment in training of the existing
workforce, and for more equitable access to such training, including for
casual, contract and labour hire employees. The committee notes the disparate
evidence and claims concerning the relative merits of the different mechanisms
and is aware that ANTA is conducting research on the future resourcing of VET.
However it considers that ANTA should specifically commission independent research
on the merits of the full range of approaches to increasing employer investment
in training of new entrants and the existing workforce, including: incentive
arrangements; employment based contracts and various levy models, such as the
levy operating in the construction industry in many jurisdictions; the
Singapore levy on the wages of the lowest paid (and presumably lowest-skilled)
workers; the inclusion of training targets in collective bargaining agreements;
the use of government tenders to promote training; and, any other relevant
measures. The research should consider factors such as the circumstances in
which these various measures are most effective, the problems that they best
address and effective operating principles. The national skills councils should
then draw on this research in examining the most appropriate strategies for
developing a sustainable skills base for their industries, promoting a high
skills equilibrium, equitable access to training opportunities, and a broader
program of workforce development.
Recommendation 51
The committee recommends that ANTA should:
- review, at the
end of 2004, the effect of reduced funding of state and territory industry
advisory arrangements on their capacity to support the national advisory
arrangements, and the national system;
- consider
expanding the roles of the national skills councils to include
developing skills formation and workforce development strategies for their
industries and supporting
this with appropriate funding; and
- announce its
commitment to the continuing, central importance of the bipartite approach
(based on a partnership between employers and unions) to industry advice, to be
reflected throughout all of ANTA’s advisory bodies and working groups.
Recommendation 52
The committee also considers ANTA should commission
independent research on the full range of strategies that can contribute to
increased and more effective and targeted employer investment in training and
more equitable access to training for the casual and contract workers. The research should include
consideration of collective bargaining arrangements, levies, incentive
arrangements, taxation arrangements, industry training plans and workforce
development strategies.
Consultation with other
stakeholders
6.74
The committee notes that the main stakeholders in issues of skills
development are employers, employees, education and training providers and
communities. Consultative arrangements at all levels of the VET policy and
planning and delivery frameworks should reflect the need to take account of
this diversity of interests, in appropriate ways. As noted, this implies
appropriate representation of employers, unions and education and training
providers in the consultative structures for policy and planning for the
national training system. The committee strongly supports the inclusion of
education and training provider interests and union interests on the ANTA board
and on the advisory committees or working groups within ANTA.
6.75
As discussed, there is also increasing recognition of the important role
of VET in community capacity building and the consequent need to involve the
community in VET policy, planning and delivery. This can be manifest in
different ways, including at the national, state government and local level.
6.76
At the national level, the new national strategy gives more prominent
recognition of the role of VET in meeting the skill needs of individuals and
communities. ANTA advised the committee that the new national strategy for VET
was developed through ‘an unprecedented level of consultation with thousands of
Australians’:
...regional forums were held in 25 communities across Australia,
about 100 targeted consultations were held and 120 public submissions were
received, many from individuals and organisations representing individuals.
This has set a new standard for inclusive consultative arrangements and one
that the ANTA Board has committed to continue as the strategy is implemented. [66]
6.77
ANTA also advised the committee that industry and community
representatives and individuals are currently being consulted on the
development of an action plan for the national strategy, through round table
around key issues and posting of ‘ideas for action’ papers on the ANTA website
for public comment. ANTA also envisages an (unspecified) process for all
strategy partners and stakeholders to monitor progress in implementation of the
strategy.[67]
The committee strongly endorses this approach.
6.78
There has also been an increased focus on consultation with the
community, at the state level. In Victoria, for example, the state training
board has been replaced with a Victorian Learning and Employment Skills
Commission, with responsibility for a ‘quality, balanced and sustainable post
compulsory education and training system that responds to stakeholder needs and
contributes to Victoria's economic and social development’.[68]
Members of the commission have experience in vocational education, training and
community development, and reflect the diversity of the community, as well as
metropolitan and country interests. The committee was also told that the
Department of Education and Training and the State Training Board in Western
Australia, are now engaging with a far wider spectrum of stakeholders and
discussing skill related issues with broader elements of the community. The
Western Australian Chamber of Commerce and Industry welcomed this more
extensive approach to consultation.[69]
6.79
The committee was also advised of the diverse arrangements for
consultation at the regional level and the increasing importance of these, both
for community economic and social development objectives and addressing
industry’s skill needs. Research on skill ecosystems, which identifies a
regional as well as industry dimension to skills profiles, also supports the
value of a regional approach to skills development.
6.80
Regional approaches appear particularly advanced in Victoria, which has
established a series of local learning and employment networks, comprising
local employers and education and training providers to share information about
local industry employment opportunities, skill needs and pathways into
employment, with the aim of minimising skill mismatches, evident in the
persistence of high unemployment, especially of youth, alongside skill
shortages and skill gaps. A major focus of the networks is to assist young
people in the transition from school to work through better information
sharing, linking with available opportunities and assistance with skills
upgrading where necessary. An underlying assumption of networks of this kind is
that there is often a local or regionalised dimension to labour markets,
particularly for skills outside the professions and for areas outside the main
metropolitan centres. Structures which bring all of the key local stakeholders
together provide an opportunity to minimise skill mismatches by sharing
information on needs and opportunities and developing strategies to provide a
better fit between local skill needs and supply. At the same time, some
networks have identified a large proportion of employment being taken up by
people resident in other localities, suggesting the potential to reduce
unemployment if more local people are able to provide the skills required by
local employers.[70]
6.81
A similar point was made by the Northern Area Consultative Committee. It
referred the committee to the benefits that had been achieved through the work
of the Northern Stainless Steel Skills Development Group (NSSSDG) comprising
regional representatives from the stainless steel industry, schools, training
providers, government and recruitment agencies. The Group’s aim has been to
identify and resolve skill shortages in the stainless steel industry by linking
students, teachers, the community and industry members in the region. This has
led to some more concrete initiatives such as the establishment of metal
engineering programs and facilities at local schools, and other assistance. The
strategies to date have resulted in a four fold increase in the intake of
apprentices, and promise of more increases to come. The NACC concluded that:
The experience with NSSSDG has proven that the organisation of
industry sectors on a regional basis can provide many benefits to key
stakeholders and can readily facilitate the development of strong linkages
between industry, schools and the community.[71]
6.82
More generally submissions from the City of Greater Dandenong and South
East Development and the SELLEN argued that international experience,
particularly in Europe, points to the success of collaborative, ‘bottom up’,
regionally based approaches with three main components: promoting an
understanding of the issues across sectors (education of stakeholders);
facilitating cooperation across sectors (development of relationships between
stakeholders); and encouraging industry involvement (stakeholders accepting
responsibility).[72]
6.83
Community and education consultation and input into industry planning at
the state level can also be strengthened if state-based industry advisory
bodies also establish linkages with community-based organisations and education
and training providers. The committee heard that an ITAB in Victoria has TAFEs
attending board meetings as participants and is considering involving the
chairs of community organisations on a similar basis. This sort of approach
provides another opportunity to promote more informed planning which takes
account of the interests of all stakeholders.[73]
6.84
The committee strongly endorses the need for appropriate inclusion of
all stakeholders in the identification of skill needs and the development of
skills strategies at the national, state and local level. Evidence to the
committee suggests that local networks such as those operating through the
LLENs in Victoria, the ‘youth commitment’ group in the Macarthur district of
Sydney, and in Kwinana in Western Australia, demonstrate the value of
partnerships of local stakeholders in improving youth transition and addressing
local skill needs. The committee believes state and territory governments
should seriously consider the value and potential of supporting the expansion
of these partnerships throughout their jurisdictions, backed by appropriate
state government assistance and support. It also calls upon industry and
employer associations to encourage their members to participate in such
partnerships.
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