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Econ Appren4

Econ Appren4

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Sections

  • Overview
  • Introduction
  • The licensing framework
  • Figure 1 Generic industry licensing architecture
  • Figure 2: Regulatory Risk Management Approaches
  • Table 1 Arrangements for electrical licensing in Australia
  • Table 2 Licensing arrangements for selected occupations
  • Licensing, qualifications and apprenticeships
  • Conclusions
  • References
  • Appendix: Occupations that do or may require licensing
  • Employment arrangements of apprentices and trainees
  • Award wage rates and relativities
  • Trainees
  • Apprentices
  • Table 8 Apprentice wage ratios for three year apprenticeships
  • Pay rates for adult apprentices
  • Table 9 Pay ratios for adult apprentices
  • Consideration of other factors
  • School-based apprentices
  • Allowances
  • Competency-based progression
  • Identifying over-award payments
  • Method
  • Extent of over-award payments
  • Table 17: Trainee award over-payment by characteristics
  • Final comments
  • Appendix
  • Table A2 Pay ratios for 4-year apprentices
  • Table A3 Wage levels for Apprentices—Queensland
  • Table A4 Wage Levels for trainees—Queensland
  • Table A6 Award rates of pay by award and stage
  • Table A7 Adult apprentice rates of pay
  • Table A9 Trainee wage rates used in the analysis
  • Legislation
  • The specific role of apprentice and trainee legislation
  • Quality assurance
  • The players
  • The training contract and the training plan proposal
  • The AQTF
  • Appendix: Some thoughts on quality assurance and the AQTF

NCVER

Report 3

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

© Commonwealth Government, 2011 ISBN PDF ISBN RTF 978-0-642-78011-9 978-0-642-78012-6

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

Contents
Tables and figures Overview The role of licensing in the apprenticeship system Introduction The licensing framework Licensing, qualifications and apprenticeships Conclusions References Appendix: Occupations that do or may require licensing Award structures Introduction Employment arrangements of apprentices and trainees Award wage rates and relativities
Trainees Apprentices Pay rates for adult apprentices Consideration of other factors School-based apprentices

4 6

10 11 17 22 23 24

30 32 35
35 39 42 44 45

Allowances Competency-based progression Identifying over-award payments
Method

46 48 50
50

Extent of over-award payments
Final comments

53
57

References Appendix Legislative and quality assurance arrangements Introduction Legislation
The specific role of apprentice and trainee legislation

58 59

76 77
77

Quality assurance
The players The training contract and the training plan proposal The AQTF

81
81 82 83

References Appendix: Some thoughts on quality assurance and the AQTF

88 89

NCVER Report 3 final

Page 3

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. 2009 commencements 33 Table 2 Training wage schedule rates of pay. 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 NCVER Report 3 final Page 4 . selected awards 43 Table 11 Formula for calculating pay rates for adult apprentices. July 2010 36 Table 3 Wage levels as proportion of National Minimum Wage for certificate IV traineeships. as proportion of National Minimum Wage. apprenticeship and traineeship numbers and qualifications minor occupational groups relevant to VET Table 4 Number of commencing apprentices and trainees for 2006 by occupational group and sorted by size Table A1 Occupations that do or may require registration or licensing 14 15 17 20 24 Figure 1 Generic industry licensing architecture Figure 2 Regulatory risk management approaches 11 13 Award structures Table 1 Apprenticeship contracts by employment instrument.Tables and figures The role of licensing in the apprenticeship system Table 1 Arrangements for electrical licensing in Australia Table 2 Licensing arrangements for selected occupations Table 3 Licensing.6 certificate III or above. 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. July 2010 37 Table4 Wage levels as proportion of National Minimum Wage for school-based traineeships. by duration of training.

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.Table 17 Trainee award over-payment by characteristics 56 Table A1 Modern awards and their inclusion of apprentice rates of pay. industry and sector of employment 72 Table A9 Trainee wage rates used in the analysis 74 Legislative and quality assurance arrangements Table 1 Indicative good practice for RTOs delivering training to apprentices noted in the WA good practice guide 84 NCVER Report 3 final Page 5 .

e. The final paper outlines the legislative and quality assurance arrangements for apprenticeships and traineeships. However. In general one does not have to complete an apprenticeship or traineeship to obtain an occupational licence. competencybased wage progression. Most trainees also receive over-award payments. earn less than the minimum wage. the relevant award wage for apprentices and trainees is below the national minimum wage. and includes consideration of the Australian Quality Training Framework (AQTF). 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. The report comprises three separate papers: the licensing system. However. and legislative. Even after taking into account above-award payments. can take advantage of lower wages) and the support provided by government. 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. The issue of quality is pretty much left to the AQTF regulatory arrangements. a majority of apprentices. which are an important feature of apprenticeships and traineeships. and the recognition of previous training and qualifications. It considers whether certain occupations mandate a licence and whether this has an effect on apprenticeship and traineeship numbers. The first examines the role of licensing in the apprenticeship system. 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. In most cases. older trainees and male trainees. which apply to apprenticeships and traineeships in exactly the way that they apply to all training provided within the 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. especially in the electro-technology and automotive and engineering trades. 95 of which contain the Training Wage Schedule and 45 of which provide for the employment of apprentices. an employer and a training provider. as well as most young trainees and most female trainees. institutional and quality assurance arrangements. 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 contract of training is but one part of the legal or regulatory framework that impinges on 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. The second considers aspects of award structures and implications for apprentice and trainee rates of pay. but this criticism assumes that few apprentices receive above-award payments. and there are many apprenticeships and traineeships providing training for non-licensed occupations. although the state authorities do use the training plans in their quality assurance arrangements. 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. there is little in legislative arrangements that impinges on the quality of apprenticeships and traineeships. 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. award structures. although they do provide for training plans. particularly existing workers. and it is this framework that is the subject of this report. and the field forces NCVER Report 3 final Page 6 . Analysis of data from the 2009 ABS Survey of Education and Training finds that over-award payments for apprentices are common. The new Fair Work industrial relations system has consolidated coverage into 122 modern awards.Overview Apprenticeships and traineeships are based on a legal contract—the contract of training— between an individual.

(which vary in size and activity by state) do provide some pastoral care. the quality of apprenticeships and traineeships will depend on the culture of the employers and training providers. NCVER Report 3 final Page 7 . with state field forces also playing a role. At the end of the day.

.

The role of licensing in the apprenticeship system John Stanwick NCVER Report 3 final Page 9 .

This often relates to an area of risk or the operation of a piece of equipment. 1 We exclude from our analysis of licences the ‘white card’ required by construction workers as proof of basic safety induction training (<http://www. Firstly. the various types of licenses and training required. We can see then that the type of license has implications for the training required1.safework. We look at the qualification distribution by occupation and show that even in licensed occupations there are many working without the appropriate qualification. driving a forklift) or where it is more efficiently done off the job. The extent of training requirements varies by the type of license in place. Licensing arrangements can also be promoted by incumbents in an occupation as a way of protecting wages and conditions. Finally we show the split between licensed and non-licensed occupations for apprenticeships and traineeships. but not necessarily for some of the other types of licensing. For some types of licensing. it does not follow that an apprenticeship is a necessary condition for a licence. In general one does not have to complete an apprenticeship or traineeship to obtain an occupational licence. For the licensed occupations we also tabulate from the National VET Provider Collection database the split between apprenticeships and other students. For example. 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. Eikenloff and Porter (2003) discuss three types of license in terms of training issues.au/ascc/AboutUs/Publications/NationalStandards/NationalCodeofPracticeforInductionforConstructionWo rk. driving a train or a bus or using a forklift. 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. The remainder of this paper elaborates on this lack of connection. For many of these there are training requirements that lead to or contribute to a licence.g. the apprenticeship system may be a relevant pathway to a licence.au/show_page. and there are many apprenticeships and traineeships providing training for non-licensed occupations. environmental protection and other reasons. pest controllers may be licensed to use certain pesticides but not all. The approach taken in this paper to address the links between licensing and the apprenticeship and traineeship system is as follows. where the training requirements are much more limited or specific (e. This comprises a single unit of competency on general safety.jsp?id=7429>). It can in some instances involve a full qualification but more often it does not. By extension.htm>) NCVER Report 3 final Page 10 . Occupations such as electricians and plumbers fall under occupational licensing. apprenticeships may be an appropriate pathway. This will explain how licenses are obtained.gov.gov. The first type is referred to as occupation-based licensing and generally requires a full qualification for the issue of a license. We find that there is only a loose relationship between licensing and apprenticeships and traineeships.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. a site induction and task-specific safety training (see code: <http://www. even for those occupations requiring a license.sa. The final type of licensing mentioned is known as activity-based licensing. for example. There are many occupations that have some sort of licensing arrangements.ascc. particularly occupational licensing in the trades area. the general system of licensing and regulation in Australia is examined. Even where an apprenticeship might be an appropriate pathway.

NCVER Report 3 final Page 11 . 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.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. While the framework is taken from a 2002 publication it is still relevant to how the licensing system currently operates. Figure 1 Generic industry licensing architecture Parliament/Government Primary Legislation Subordinate Legislation Licensing Authority Licensing Requirements Competency Based Assessment Other Licence / Permit / Certification / etc Source: ANTA (2002). After explaining the main elements the concepts will be illustrated by a few current licensing arrangements.

we see that. The first is that the licensing authority is part of a government agency.). Primary legislation outlines the policy and principles of the legislation. restrictions and the like on industry and the community. Legislation can be primary (Acts of parliament) or subordinate (rules and regulations etc. The second type of licensing authority is independent industry regulatory bodies.g. completion of a training course through the VET sector. or demonstration of knowledge and skills through examinations determined by the regulator. the legislation imposes controls on undertaking certain activities or practising certain professions. These are discussed in turn: Parliament/government and legislation: as discussed previously. whereas the subordinate legislation deals with the administrative details. NCVER Report 3 final Page 12 . 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. Licensing requirements: these requirements are reflected in legislation and can include both competency related and non-competency-based requirements. If we use the example of electricity from table 1. licensing is introduced by state and territory governments where there is deemed to be market failure in regards to certain public risks. completion of a training package qualification or part thereof. age requirements and fit and proper person requirements. controls. in the Northern Territory it is the Electrical Workers and Contractors Licensing Board. while across most jurisdictions. In terms of occupational licensing. financial capacity requirements. Examples of competency-related requirements are possession of trade or tertiary qualifications (sometimes from specific institutions) and possibly through an apprenticeship pathway. Both forms of industry regulators are generally accountable to a government minister. Examples of non-competency-based requirements include insurance requirements. the Department of Justice in Queensland and Tasmania). The licence: the licence can be issued at various levels as illustrated in figure 2.We see from the diagram that there are four main elements to the arrangements. The licensing authority: there are two main forms of institutional arrangements for industry regulation. The primary way of addressing these risks is through the passing of legislation that introduces standards. government departments are the licensing body (e. industry experience requirements.

the risk profile of the government or industry regulator. not persons .non-competency based requirements Principals Licensing of Business Principal(s) . There are two main types of license that are issued. licensing can range from licensing an entire business to licensing an individual within the business.competency based requirements Supervisors Licensing of Supervisors . and the resources available to the regulator. The first is a physical licence that is issued subject to entry requirements such as those listed previously.some non-competency based requirements .non-competency based requirements . 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.some non-competency based requirements .mainly competency based requirements Source: ANTA (2002). As we can see from figure 2.applies to entity. NCVER Report 3 final Page 13 . the nature of the risk the licensing is aimed at.competency based requirements Individuals Licensing of Individuals . 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. The person is therefore deemed to have the license by virtue of having the appropriate qualification. The second can be termed an implied licence and has specific requirements (such as qualifications) but where no physical licence exists. including the nature of the industry. As an illustration of this framework tables 1 and 2 provide basic-level information on licensing arrangements for a handful of occupations. At which point the licence will be targeted depends on several factors.Figure 2: Regulatory Risk Management Approaches Risk Control Point Licensing Type Business Licensing of Business Entity .

Table 1 State Western Australia Arrangements for electrical licensing in Australia Name of licensing body Electrical licensing board (Energy Safety) Primary legislation Electricity Act 1945 Electricity (Licensing) regulations 1991 Home Building Act 1989 Electricity (Consumer Safety) Act 2004 Types of licence Electrical contracting Electrical installing Electrical training Restricted electrical Contractor Qualified supervisor certificate Nominated supervisor (on contractor licence) Electrical contractor Unrestricted electrician’s Restricted electrician Electrical contractor Electrical worker Restricted licence Qualification requirements for an electrician Essential performance capabilities as agreed by the National Uniform Electrical Licensing Council New South Wales Department of Fair Trading Achieved through various (six) pathways including apprenticeship and trade qualification. Fair and Safe Work Electrical Safety Act 2002 Electrical contractor Various electrical worker Restricted electrical work Training permit Mainly through an apprenticeship South Australia Office of Business and Consumer Affairs Plumbers. including through an apprenticeship or a trade certificate Mainly though an apprenticeship Australian Capital Territory (ACT) Building. viewed August 2010. suspension.html. resolving complaints and disputes and considering applications for the transfer.ncver. Some need a certificate from the Vocational Trade Tribunal2 There are a variety of ways the qualification for the licence can be obtained. < http://www. Gas Fitters and Electricians Act 1995 Electrical contractor Restricted Registered workers The appropriate vocational qualification approved by the Commissioner and certain certificates of competency issued by the Industrial and Commercial Training Commission 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 Completion of an apprenticeship (cert III) and completed the Licensed Electrician’s Assessment conducted by Energy Safe Victoria or equivalent Tasmania Department of Justice (Workplace Standards Australia) Occupational Licensing Act 2005 Practitioner (electrical work) Electrical contractors Victoria Energy Safe Victoria Electrical Safety Act 1998 Electrical inspector Electrical contractor Electrician Electrical worker Supervised worker Restricted electrical worker 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.edu. electrical and plumbing control (ACT Planning and Land Authority) Electrical Workers and Contractors Licensing Board Construction occupations (licensing ) Act 2004 Northern Territory Electrical Workers and Contractors Act (2009) Queensland Department of Justice.au/resources/glossary/about_the_glossary.>) NCVER Report 3 final Page 14 . cancellation and variation of apprenticeships and traineeships (NCVER online glossary.

the licensing arrangements vary by occupation. in other states there are other pathways. that is. Table 2 Occupation Plumber (Victoria) Licensing arrangements for selected occupations Name of licensing body Plumbing Industry Commission Primary legislation Building Act 1993 The Victorian Plumbing Regulations 2008 Types of licence Registration Licence Qualification requirements 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. or at postgraduate qualification of at least one year in childhood studies or childcare studies. or a qualification for a group leader For group leader: a diploma or 2year 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. The table also illustrates the point that the licence can be targeted at various risk points. while for some of the service based occupations such as financial services the focus is on completion of a qualification (institution based). For assistant: certificate III/IV or a 1 year qual. In terms of qualification requirements. Can range from certificate III to degree.Table 1 shows that there are quite a lot of similarities in arrangements across the states. investment advisors licence or Broker’s licence Licenses can be issued to entities or individuals and there are prescribed qualification requirements in regards to : • • • assistants group leaders directors The qualification licence can vary depending on licence and level of responsibility. It is also worth noting in terms of the Council of Australian Governments’ (COAG) agreement on mutual recognition. entities must be licensed and individuals can be licensed. 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. the apprenticeship pathway is not necessarily a compulsory pathway to becoming a licensed electrician. if one state permits licensing without an apprenticeship then de facto all the states do. In the security industry not all classes of licences need a full qualification and in the case of child care. We see for instance that in plumbing the path to a license is generally through an apprenticeship. in early childhood or child care studies. Table 2 shows that while the selected occupations all have a licensing body and legislative backing. ranging from the business through to the individual. Child care worker – centre based(Queensland) Child Care Act 2002 Child Care Regulations 2003 Source: Various licensing body websites. Security (NSW) NSW Police Security Industry Act 1997 Class I Class 2 Master Various firearms licences Financial Services (Commonwealth) Australian Securities and Investment Commission (ASIC) Office of Early Childhood Education and Care Corporations Act 2001 Various licences such as a dealer’s licence. while the apprenticeship system is the main pathway in some states. NCVER Report 3 final Page 15 .

but is not necessarily appropriate to all types of licensing. arrangements vary by occupation and within that by state/territory. whereas for some other types of licensing a whole qualification may not be required. Most licensing requires some training arrangement. particularly where the training requirements are considerable and have an on-the-job component (for example. even when there is an implied link.In summary. where it may be more efficient to do the training off the job (e. in the traditional trades). NCVER Report 3 final Page 16 . security and finance). qualifications and apprenticeship. Apprenticeships would seem to be a relevant pathway to licensing in some occupations.g. For occupational licenses a whole qualification is generally required. The completion of an apprenticeship does not result in a licence. the main features that arise from the description of the licensing system in Australia are that: While there is a general framework for licensing. The next section examines in more detail data on licensing.

3 39.7 4.335 22./ trainees May involve some licensing 121 Farmers and farm managers 131 Advertising and sales managers 132 Business administration managers 133 Construction.7 1. qualifications and apprenticeships This section looks at some data on licensing and apprenticeships and qualifications profile by occupation.096 4. 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).539 1. medical and science technicians 312 Building and engineering technicians 313 ICT and telecommunications technicians 321 Automotive electricians and mechanics 322 Fabrication engineering trades workers 323 Mechanical engineering trades workers 324 Panel beaters.7 2.845 30.9 70.2 2. Table 3 Licensing.8 78.495 25.733 12.8 85.342 11.573 10. for various 3-digit occupational groups. distribution and production managers 134 Education.6 53. plasterers and tilers 334 Plumbers 341 Electricians 28. and technician and tradespersons).349 4.207 640 7. and investment advisers 311 Agricultural.5 90.4 62. and carpenters and joiners 332 Floor finishers and painting trades workers 333 Glaziers.3 0. Occupational licensing is more likely to occur at the higher occupational levels (such as professionals.8 76.426 10.9 62.296 12.5 1.719 8.635 9.372 12.195 3.2 60.1 9.1 48.0 54. retail and service managers 222 Financial brokers and dealers. There are a few reasons for this. other students % apprent. and vehicle body builders.Licensing. primary among which is that apprenticeship training is not mandated for most licensing regimes.129 20.193 3 590 398 2. apprent.512 6.4 40. health and welfare services managers 141 Accommodation and hospitality managers 142 Retail managers 149 Miscellaneous hospitality. Table 3 shows this lack of direct link.520 10./ trainees No.4 83.9 52.2 79.0 4.1 71.8 68.1 8.087 931 4. the proportion of all students enrolled as an apprentice/trainee.126 92 47 122 7 680 1.1 √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ NCVER Report 3 final Page 17 . trimmers 331 Bricklayers. III+ (%) No.0 68.6 71.457 44.2 1.6 34.3 58.582 19. In our analysis we are mainly interested in occupational licensing. The table looks at.308 2.5 63.497 26. We find that there is no clear link between licensing and apprenticeships.343 3.551 10.1 66. and finally whether there may be some licensing requirements within that occupational group. apprenticeship and traineeship numbers and qualifications minor occupational groups relevant to VET* Occupation Cert.654 4. while part or activity-based licensing is more likely to occur at the lower occupational levels (although not exclusively).1 62.6 0. the numbers of students enrolled as apprentices/trainees by comparison with other students for that occupational group.2 3.358 1.3 82.3 73.3 74.769 916 6.6 78.

5 29.0 10.851 16.9 15.6 41.0 6.2 85.2 26.669 1.879 0 6. program and project administrators 512 Office and practice managers 521 Personal assistants and secretaries 531 General clerks 532 Keyboard operators 541 Call or contact centre information clerks 542 Receptionists 551 Accounting clerks and bookkeepers 552 Financial and insurance clerks 561 Clerical and office support workers 591 Logistics clerks 599 Miscellaneous clerical and administrative workers 611 Insurance agents and sales representatives 612 Real estate sales agents 621 Sales assistants and salespersons 631 Checkout operators and office cashiers 639 Miscellaneous sales support workers 711 Machine operators 712 Stationary plant operators 721 Mobile plant operators 731 Automobile.1 30.3 0.3 64.454 3.4 33.854 8.9 62.8 31.2 15.1 36.1 26.7 0.623 10.5 24.329 33.207 1.423 16.219 23.789 16.039 5.8 48. other students % apprent.1 58.6 22.193 40.175 2.7 39.1 42.5 60.451 2.308 3.8 24.346 2.9 48.439 50.8 11.179 2.786 5.9 52.141 4.4 27.3 0 0.536 1. bus and rail drivers 732 Delivery drivers 733 Truck drivers 741 Storepersons 811 Cleaners and laundry workers 62.868 1.0 9.130 15.072 18.9 31. and shearers 362 Horticultural trades workers 391 Hairdressers 392 Printing trades workers 393 Textile.480 4.689 11.8 18.090 1.401 340 4.659 0 18.503 3.276 219 5.556 6.7 58.9 36.1 46.5 4.6 29.9 20.4 22.8 30.Occupation Cert.056 7.9 √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ NCVER Report 3 final Page 18 .605 268 1.982 0 4 2.684 33.872 1.7 76.588 1 1./ trainees May involve some licensing √ 342 Electronics and telecommunications trades workers 351 Food trades workers 361 Animal attendants and trainers.358 37.4 34.634 1.099 2.029 8. apprent.5 28.220 10.163 16.6 39.5 1.017 1.7 56. clothing and footwear trades workers 394 Wood trades workers 399 Miscellaneous technicians and trades workers 411 Health and welfare support workers 421 Child carers 422 Education aides 423 Personal carers and assistants 431 Hospitality workers 441 Defence force members.359 2. III+ (%) No.3 38.1 12.0 54.0 24.046 132 1./ trainees No.2 47.541 5.1 2.335 4.8 70.901 11.205 385 5.801 0 463 2. fire fighters and police 442 Prison and security officers 451 Personal service and travel workers 452 Sports and fitness workers 511 Contract.6 68.5 26.3 18.4 14.7 36.6 44.926 4.825 3.6 7.5 12.4 56.7 24.5 73.6 11.0 0.533 713 10.129 283 4.4 27.7 21.7 46.4 40.4 3.3 0.555 205 8.9 62.280 77.0 53.8 49.897 17.591 2.6 71.200 147 58.1 23.0 17.3 11.443 169 281 1.034 9.6 12.132 917 8.1 29.0 40.817 1.109 6.2 34.

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. *Note that the apprentice and student numbers are from 2007 as ANZSCO information on students was not yet available in 2006.584 753 1. NCVER Report 3 final Page 19 .049 13. Clearly.861 3.9 10. other students % apprent. prison and security officers. Some of the growing service sector occupations require licensing but few have high numbers of apprentice/trainee students. 3 See <http://www. III+ (%) No. we can see from table 3 that even in licensed occupations there are considerable numbers without certificate III level or above qualifications. These could be related to the type of work.9 16. there are other pathways to the qualification available in other states. food trades workers. students and courses 2007 data. the introduction of the Financial Services Reform Act (2004) requires that businesses providing financial services hold an ‘Australian Financial Services Licence’. as is reflected by there being virtually no students who are apprentices/trainees for this occupational group (222 Financial brokers and dealers.509 7.765 5. and personal service and travel workers all may require licensing but have relatively small proportions of students who are apprentices/trainees. For example.5 29.Occupation Cert.0 √ √ Source: NCVER’s National Provider Collection. As mentioned.9 23.549 9. such as fabrication engineering trades workers. apprent. licensed occupations (including electricians.328 3. cultural and historical factors. the requirement for on-the-job training. If we refer to the example of electricians in table 1.3 However. Further. or a combination of all of these. Table 2 also indicates that apprenticeship training is not mandated for licensing.135 450 23. it would appear that the requisite qualifications are obtained in other ways (probably an institutional pathway).au/Default. we see that while apprenticeship training is the main pathway in some states.3 5. However this does not deflect from the argument that we are making.6 15.057 29. 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. health and welfare support workers.5 54.0 3.653 26./ trainees May involve some licensing 821 Construction and mining labourers 831 Food process workers 832 Packers and product assemblers 839 Miscellaneous factory process workers 841 Farm. and investment advisers) in table 3. child carers and personal carers and assistants. In the non-trades occupations that require occupational licensing there are other factors at play. 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.9 40.2 10.3 20.8 17. automotive electricians and mechanics.7 21. forestry and garden workers 851 Food preparation assistants 891 Freight handlers and shelf fillers 899 Miscellaneous labourers 28. Secondly.aspx?ArticleID=903>./ trainees No. Financial brokers and dealers and investment advisers.863 21. We see however that quite a large proportion of people in this occupational group hold a certificate III level qualification or higher (about 68%). if we look at the traditional trades.asn. Although two of these three technical occupational groupings may have some licensing requirements.245 527 303 2. One could argue that the required qualifications are more efficiently obtained through an institutional pathway. and hairdressing.1 13. there is no tradition of apprenticeship training within this industry.8 1. and ABS 2006 census data online.bankers. there are other factors that sustain high training rates in these occupations.

however. What we see. where the licensing takes place above the level of a particular individual (refer back to figure 2). but not apprenticeship/traineeship training. there will be those who are not licensed but whose work is supervised by a licensed electrician. we saw that activity-based licensing (e. 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. 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. and shearers 611* Insurance agents and sales representatives 392 Printing trades workers NCVER Report 3 final Page 20 .Another example of a licensed non-trades occupational group with low proportions of students taking the apprenticeship/traineeship pathway (6. of Commen. medical and science technicians 134* Education. There will be cases. the qualification profile for this occupation indicates that only about a third have certificate III or higher qualifications. ordered by size of number of commencing apprentices and trainees. 1548 1428 1368 1296 1196 1147 956 915 906 886 823 750 670 621 Sales assistants and salespersons 531 General clerks 512 Office and practice managers 431 Hospitality workers 741 Storepersons 331* Bricklayers. further. and carpenters and joiners 831 Food process workers 351 Food trades workers 423* Personal carers and assistants 541 Call or contact centre information clerks 321* Automotive electricians and mechanics 732* Delivery drivers 341* Electricians 313 ICT and telecommunications technicians 839 Miscellaneous factory process workers 712 Stationary plant operators 399* miscellaneous technicians and trades workers 821* Construction and mining labourers 452* Sports and fitness workers 832 Packers and product assemblers 121 Farmers and farm managers 311* Agricultural. We see for instance that 712 Stationary plant operators has a fairly low proportions of students who are apprentices/trainees (about 12%) and. Another point to make is that not all types of licensing require qualifications. Table 4 Number of commencing apprentices and trainees for 2006 by occupational group and sorted by size Occupation No. health and welfare services managers 361* Animal attendants and trainers. of Commen. While we focus mainly on occupational licensing.g. 37805 15223 15214 14632 10439 10412 10223 9277 8857 8610 8340 8216 7871 Occupation No. for instance. What this means is that the licensing arrangements in this occupational group would influence the qualification profile. Occupations with an asterisk alongside them are those where some licensing arrangements may apply.4%) is 411 Health and welfare support workers (which includes enrolled and mothercraft nurses). operation of a piece of equipment) does not necessarily require a qualification and therefore would be of little relevance to the apprenticeship/traineeship system. 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). Table 4 shows the number of commencing apprentices for the same occupational groups as in the previous table. Even in the case of occupations such as electricians (where about 20% do not have certificate III or higher-level qualifications).

trimmers and painters 394 Wood trades workers 721* Mobile plant operators 332* Floor finishers and painting trades workers 612* Real estate sales agents 422 Education aides 511 Contract. 565 558 544 301 301 183 174 171 166 154 149 115 113 95 51 27 7 0 0 0 0 0 711 Machine operators 322 Fabrication engineering trades workers 391 Hairdressers 323* Mechanical engineering trades workers 334* Plumbers 421* Child carers 552* Financial and insurance clerks 411* Health and welfare support workers 841* Farm. as an example of a licensed occupation.Occupation No. program and project administrators 851 Food preparation assistants 393 Textile. and investment advisers 521 Personal assistants and secretaries 561* Clerical and office support workers 631 Checkout operators and office cashiers 733* Truck drivers Source: NCVER Apprentice and Trainee Collection no. in contrast. fire fighters and police 532 Keyboard operators 731* Automobile. bus and rail drivers 551 Accounting clerks and bookkeepers 149* Miscellaneous hospitality. had no commencing apprentices in 2006. 5934 5615 5374 4937 4904 4430 3768 3106 3099 2876 2873 2678 2496 2477 2469 2390 2317 2196 1969 1943 1601 1577 Occupation No. of Commen. carpenters and joiners. and vehicle body builders. clothing and footwear trades workers 441* Defence force members. and personal carers and assistants). NCVER Report 3 final Page 21 . retail and service managers 142* Retail managers 312* Building and engineering technicians 891 freight handlers and shelf fillers 133* construction. distribution and production managers 542 Receptionists 131 Advertising and sales managers 639 Miscellaneous sales support workers 141* Accommodation and hospitality managers 222* Financial brokers and dealers. 63 (March 2010 estimates). We see that. forestry and garden workers 362 Horticultural trades workers 899 Miscellaneous labourers 442* Prison and security officers 591 Logistics clerks 342* Electronics and telecommunications trades workers 333* Glaziers. plasterers and tilers 451* Personal service and travel workers 599* Miscellaneous clerical and administrative workers 324* Panelbeaters. of Commen. of the ten occupations with the highest numbers of commencing apprentices only two have any licensing requirements (bricklayers. We see. that financial brokers and dealers.

We see that. in some cases not even necessitating the completion of a qualification. In some occupations an apprenticeship pathway is not necessary due to the small amount of training required to attain the licence. In some occupations. Licensing arrangements are more likely to affect the qualifications profile of an occupation rather than the use of apprenticeships. Licences in occupations may be achieved through apprenticeships (and in some cases is the general pathway) but not necessarily. A broad analysis of data on licensing in occupations. Even so. 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. 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. 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. while there are similarities across occupations in terms of the need for underlying legislation and licensing bodies. the structural arrangements and culture within an occupation may have more to do with apprenticeship pathways than any licence requirement. NCVER Report 3 final Page 22 . institutionbased methods may be a more appropriate and efficient way to obtain the qualification for the licence.Conclusions This paper has examined the basis for licensing arrangements in Australia. The use of apprenticeships seems to be more prevalent in some occupations than others.

ANZSCO – Australian and New Zealand Standard Classification of Occupations.1220.au/sectors/training_skills/publications_resources/profiles/anta/profile/a_lice nce_to_skill_full_report.dest. 1st edn. R 2003 Stairway to a license and beyond – licensing issues national project. volume 2.0. Department of Employment and Training. NCVER Report 3 final Page 23 .gov. ANTA and Queensland Government. ANTA (Australian National Training Authority) 2002 A licence to skill: the implications of industry licensing for the implementation of training packages. Canberra.htm>.no. Eikenloff. P & Porter. viewed July 1010. <http://www. Brisbane.References ABS (Australian Bureau of Statistics) 2006. cat.

advanced diploma Associate degree. Diploma. Diploma. advanced diploma Associate degree. advanced diploma Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Associate degree. curators and record managers 2245 – Land economists and valuers Bachelor or higher Bachelor or higher Bachelor or higher Associate degree. Diploma. advanced diploma Associate degree. Diploma. advanced diploma Associate degree. Diploma. advanced diploma Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher NCVER Report 3 final Page 24 . retail and service managers 2211 – Accountants 221111 – Accountant (general) 221112 – Management accountant 2212 – Auditors. advanced diploma Associate degree. Diploma. advanced diploma Associate degree. mathematicians and statisticians 224111 – Actuary 2242 – Archivists. advanced diploma Associate degree. Diploma. Diploma. Diploma. advanced diploma Associate degree. Diploma. company secretaries and corporate treasurers 221213 – External auditor 221214 – Internal auditor 2221 – Finance brokers 222112 – Finance broker 2222 – Financial dealers 222211 – Financial market dealer 222212 – Futures trader 222213 – Stockbroking dealer 2223 – Financial investment advisors and managers 2241 – Actuaries.Appendix: Occupations that do or may require licensing Table A1 Occupation Occupations that do or may require registration or licensing Registration or licensing is required √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Registration or licensing may be required Expected qualification level 1331 – Construction managers 1342 – Health and welfare services managers 1343 – School principals 1412 – Caravan park managers 1413 – Hotel and motel managers 1414 – Licensed club managers 1419 – Other accommodation and hospitality managers 1421 – Retail managers 142113 – Betting agency manager 1494 – Transport services managers 1499 – Other hospitality.

postgraduate diploma in adult education √ Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher √ Bachelor or higher Bachelor or higher Bachelor or higher √ Bachelor or higher Bachelor or higher √ √ Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher NCVER Report 3 final Page 25 .Other natural and physical science professionals 2411 – Early childhood teachers 241111 – Early childhood teacher 2412 – Primary school teachers 241213 – Primary school teacher 2413 – Middle school teachers 2414 – Secondary school teachers 2415 – Special education teachers 2421 – University lecturers and tutors 2422 – Vocational education teachers 2512 – Medical imaging professionals 251211 – Medical diagnostic radiographer 251212 – Medical radiation therapist 251213 – Nuclear medicine technologist 2513 – Occupational and environmental health professional 2514 – Optometrists and orthoptists 2515 – Pharmacists 2519 – Other health diagnostic and promotion professionals 2521 – Chiropractors and osteopaths 2522 – Complementary health therapists 2523 – Dental practitioners 2524 – Occupational therapists 2525 – Physiotherapists 2526 – Podiatrists 2527 – Speech professionals and audiologists √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Bachelor or higher Bachelor or higher Diploma or higher Diploma or higher √ √ √ √ √ √ √ √ √ Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher √ √ Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher √ Bachelor or higher Bachelor or higher.Occupation Registration or licensing is required Registration or licensing may be required √ √ Expected qualification level 2246 – Librarians 2249 – Other information and organisational professionals 2311 – Air transport professionals 2312 – Marine transport professional 2321 – Architects and landscape architects 232111 – Architect 2322 – Cartographers and surveyors 2331 – Chemical and materials engineers 2332 – Civil engineering professionals 233213 – Quantity surveyor 2333 – Electrical engineers 2334 – Electronics engineer 2335 – Industrial. mechanical and production engineers 2336 – Mining engineers 2339 – Other engineering professionals 233915 – Environmental engineer 2347 – Veterinarians 2349.

Diploma. advanced diploma Associate degree. advanced diploma √ √ √ √ √ √ √ √ Associate degree. advanced diploma Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV √ √ √ √ √ √ √ √ √ Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV √ √ √ √ √ √ √ √ NCVER Report 3 final Page 26 . Diploma. advanced diploma Associate degree. advanced diploma Associate degree. advanced diploma Associate degree. Diploma. Diploma. Diploma.Vehicle body builders and trimmers 3243 – Vehicle painters 3311 – Bricklayers and stonemasons 3312 – Carpenters and joiners 3321 – Floor finishers 3332 – Plasterers 3333 – Roof tilers 3334 – Floor and wall tilers Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher √ Bachelor or higher Bachelor or higher √ √ Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher Bachelor or higher √ √ √ Bachelor or higher Associate degree. advanced diploma Associate degree. Diploma.Occupation Registration or licensing is required √ √ √ √ √ √ √ √ √ √ Registration or licensing may be required Expected qualification level 2531 – Generalist medical practitioners 2532 – Anaesthetists 2533 – Internal medicine specialists 2534 – Psychiatrists 2535 – Surgeons 2539 – Other medical practitioners 2541 – Midwives 2543 – Nurse managers 2544 – Registered nurses 2711 – Barristers 2712 – Judicial and other legal professionals 2713 – Solicitors 2722 – Ministers of religion 2723 – Psychologists 272311 – Clinical psychologist 272312 – Educational psychologist 272313 – Organisational psychologist 272399 – Psychologists nec 2725 – Social workers 3112 – Medical technicians 3121 – Building. Diploma. architectural and surveying technicians 312115 – Plumbing inspector 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 3212 – Motor mechanics 3231 – Aircraft maintenance engineers 3233 – Precision metal trade workers 323312 – Gunsmith 323313 – Locksmith 3241 – Panel beaters 3242.

money market and statistical clerks Certificate III/IV Certificate III/IV √ √ √ √ √ Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV √ Certificate III/IV Certificate III/IV √ √ Certificate III/IV Certificate III/IV Associate degree. advanced diploma Associate degree. Diploma. Diploma. technicians and therapists 411211 – Dental hygienist 411212 – Dental prosthetist 411214 – Dental technician 4113 – Diversional therapists 4114 – Enrolled and mothercraft nurses 4115 – Indigenous health workers 4211 – Child carers 4233 – Nursing support and personal care workers 4234 – Special care workers 4412 – Fire and emergency workers 441212 – Fire fighter 4422 – Security officers and guards 442214 – Private investigator 4512 – Driving instructors 4513 – Funeral workers 4518 – Other personal services workers 451811 – Civil celebrant 4523 – Sports coaches. Diploma. advanced diploma √ √ √ √ √ Associate degree. petroleum and power generation plant operators 399213 – Power generation plant operator 3996 – Signwriters 3999 – Other miscellaneous technicians and trades workers 4111 – Ambulance officers and paramedics 4112 – Dental hygienists. Diploma.Occupation Registration or licensing is required √ √ Registration or licensing may be required Expected qualification level 3341 – Plumbers 3411 – Electricians 3421 – Air-conditioning and refrigeration mechanics 3422 – Electrical distribution trades workers 3423 – Electronic tradespersons 3611 – Animal attendants and trainers 3991 – Boat builders and shipwrights 399112 – Shipwrights 3992 – Chemical. advanced diploma Associate degree. Diploma. Diploma. advanced diploma Associate degree. advanced diploma √ Associate degree. instructors and officials 4524 – Sportspersons 5523 – Insurance. Diploma. gas. advanced diploma Certificate II or III Certificate II or III Certificate II or III Certificate III/IV Certificate III/IV Certificate I or compulsory secondary education Certificate I or compulsory secondary education Certificate III/IV √ √ Associate degree. advanced diploma Certificate II or III Certificate II or III Certificate III/IV Certificate III/IV √ Certificate II or III √ √ √ √ √ √ √ √ √ √ √ √ √ √ NCVER Report 3 final Page 27 . Diploma. Diploma. advanced diploma Associate degree. advanced diploma √ Associate degree.

loss adjustors and risk surveyors 599611 – Insurance investigator 5999 – Other miscellaneous clerical and administrative workers 6111 – Auctioneers and stock and station agents 611111 – Auctioneers 6112 – Insurance agents 6121 – Real estate sales agents 612113 – Real estate principal 612114 – Real estate agent 612115 – Real estate representative 7121 – Crane. forestry and garden workers Certificate II or III √ Certificate I or compulsory secondary education Certificate I or compulsory secondary education √ √ √ Associate degree. hoist and lift operators 7122 – Drillers.Occupation Registration or licensing is required √ Registration or licensing may be required Expected qualification level 552311 – Bookmaker 5611– Betting clerks 561112 – Bookmaker’s clerk 5991 – Conveyancers and legal executives 5993 – Debt collectors 5995 – Inspectors and regulatory officers 599513 – Motor vehicle license examiner 5996 – Insurance investigators. Diploma. forestry and horticultural plant workers 7212 – Earth moving plant operators 7213 – Forklift drivers 7219 – Other mobile plant operators 7311 – Automobile drivers 7312 – Bus and coach drivers 7313 – Train and tram drivers 7321 – Delivery drivers 7331 – Truck drivers 8214 – Insulation and home improvement installers 8217 – Structural steel construction workers 8413 – Registration and licensing may be required 8419 – Other farm. miners and shot firers 7123 – Engineering production systems worker 7211 – Agricultural. advanced diploma Certificate II or III Certificate II or III Certificate II or III √ Certificate III/IV Certificate III/IV √ √ Certificate II or III Certificate III/IV Certificate III/IV Certificate III/IV √ Certificate III/IV Certificate III/IV Certificate III/IV Certificate III/IV Certificate II or III √ Certificate II or III Certificate II or III √ Certificate II or III Certificate II or III √ Certificate II or III Certificate II or III Certificate II or III Certificate II or III Certificate II or III Certificate II or III Certificate II or III √ √ √ √ Certificate II or III Certificate II or III Certificate II or III Certificate I or compulsory secondary education √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ NCVER Report 3 final Page 28 .

Award structures Damian Oliver NCVER Report 3 final Page 29 .

intended as an overview covering differences between occupations and industries. Work-related factors such as pay. Modern award wage rates will be phased in over five years. Workers are discouraged from engaging in further training (including apprenticeships and traineeships) if their qualifications will not lead to an increase in pay. 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. paid at either the full rate or a proportion the rules governing progression through the apprenticeship or traineeship. Once former state awards (referred to as Division 2B Awards in the Fair Work [Transitional Provisions and Consequential Amendments] Act 2009) expire. 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. are taken into account in determining pay rate or apprentice stage. depending on highest level of schooling. such as highest level of education. being time-based or competency-based progression whether separate pay rates are included for adult apprentices whether other factors. One important element of the model is that apprentices and trainees receive a training wage. either directly or indirectly. Grey et al. 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. disregards the transitional arrangements in place to phase in rates of pay in modern awards. the proportion of apprentices and trainees covered by modern awards will increase further. For example: The perceived low levels of pay are a disincentive for young people who might otherwise enter into an apprenticeship (Misko. by providing a floor for conditions contained in collective agreements. 4 The report here. A total of 122 modern awards will set the employment conditions for the vast majority of apprentices and trainees. 1999. Clearly a variety of aspects relating to pay and conditions is important to the attractiveness of undertaking (and completing) an apprenticeship or traineeship. 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). 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. hours. years since left school. 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. and qualification. An analysis of the provisions relating to apprentices and trainees has been conducted for each of the 122 modern awards. Snell & Hart 2008).Introduction The apprenticeship model combines a contract of training with a contract of employment. Callan 2001. Nguyen & Saunders 2007). Awards are the basis of pay and conditions—hence this report provides an overview of how awards connect with apprenticeships and traineeships. NCVER Report 3 final Page 30 .

including completion of a pre-apprenticeship program. this is influenced by existing workers. as in the food trades and hairdressing. A third of awards provide for apprentices to receive tool allowances. The relativity for a first-year apprentice in a standard four-year apprenticeship ranges from 37. 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). preferring instead time-based provisions. New workers. we are analysing only the minimum conditions required by law.Most awards pay apprentices a portion of the qualified trades rate.5% to 55% of the relevant tradesperson rate. taking into account occupation. (2006) identified that the award pay rates for first-year apprentices in six representative occupations were all below the Henderson Poverty Line. However. Few modern awards provide for adult apprentices to receive a higher rate of pay. Few modern awards currently provide for competency-based progression. This period precedes the commencement of modern awards. Where there are higher rates of award dependence by employees. using data from the Survey of Education and Training. minimum wages contained in awards are just that—minima—and employers have always been free to pay employees higher wages if they choose. 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). age. We also find that many trainees receive above-award rates. The report goes on to examine the extent of over-award payments. we find that wages are closer to the award rates. and highest level of education. who receive well in excess of the relevant training wage. 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. A smaller number of awards pay apprentices some form of industry allowance. Bittman et al. particularly younger trainees. In examining award entitlements. conducted by the Australian Bureau of Statistics (ABS) in 2009. NCVER Report 3 final Page 31 . However. The latest data from the Employee Earnings and Hours survey indicates around a third of all workers covered by awards receive above-award payments. stage of apprenticeship. 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. most commonly at the same rate received by tradespeople. The relativity for a fourth year apprentice ranges from 82% to 95% of the relevant tradesperson rate. Few modern awards currently take previous educational experience. are more likely to receive close to the relevant award rates. which in nearly all cases is based on the rate for the C10 classification in the Manufacturing Awards. into account when determining pay and apprentice stage. we establish that most apprentices in trade occupations receive pay in excess of the relevant federal award rate. With these data.

or to existing workers covered by AWAs who entered into a contract of training. Hence. Work-based reasons are frequently cited as the reason why apprentices and trainees may not complete their training (Cully & Curtain 2001. Fewer than one in 20 apprentices and trainees were covered by an Australian Workplace Agreement (AWA). Individual Transitional Employment Agreements. with frequent calls for the level of apprentice pay to be increased. Awards remain the predominant instrument under which apprentices and trainees are employed. it could still be the case that the number of applicants for an apprenticeship will be affected by apprentice wage rates. s 186). The level of apprentice wages has attracted particular attention. However. Table 1 shows the employment arrangements for apprentices and trainees who commenced in 2009. allowances. 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. Awards are even more important for apprentices in the traditional trades areas. the standards set in awards are also relevant for apprentices and trainees who have their conditions set by enterprise agreements. covering three-quarters of apprentices who commenced in 2009. 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. Second.Employment arrangements of apprentices and trainees The working arrangements of apprentices and trainees are central to evaluating the effectiveness of the apprenticeship model. The results indicate that two-thirds of apprentices and trainees who commenced in 2009 were covered by a federal or state award. Since AWAs could no longer be made after March 2008. Karmel and Mlotkowski (2010) examined the impact of wages on the probability of completion. 1999. an apprenticeship combines a contract of training with a contract of employment. NCVER Report 3 final Page 32 . Unlike other forms of vocational education and training. reimbursement of training expenses. For apprentices it is the premium attached to completion that matters. 2006). Karmel and Mlotkowski also show that trainee wage rates are an issue for the completion rates of male trainees. This suggests the pay of apprentices is not the issue that many make it—at least in terms of completion rates. Grey et al. There are two reasons why modern awards are an apt starting point for the analysis of apprentices’ and trainees’ employment conditions. Callan 2001). Among the various factors identified are wage rates. Employment and Workplace Relations (DEEWR). Under the Fair Work Act. 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. these presumably refer either to their temporary successor. Low wages are a particular factor for apprentices in the early stages of their training. and regulation of working hours (see Oliver 2009). apprentice and trainee wage rates (and conditions) are certainly worth serious consideration. using data extracted from the Training and Youth Information Management System (TYIMS) administered by the Department of Education.

all employees in Victoria. ICT and Science Technicians 32 Automotive and Engineering Trades Workers 33 Construction Trades Workers 34 Electrotechnology and telecommunications trades workers 35 Food trades workers 36 Skilled animal and horticultural workers 39 Other technicians and trades workers 391 Hairdressers 4 Community and personal service workers 5 Clerical and administrative workers 6 Sales workers 7. employees of unincorporated bodies in New South Wales. NAPSAs took the terms of the relevant state awards. the Northern Territory and the Australian Capital Territory. At the same time. 2 Total includes apprenticeships not allocated to any occupation code. for employers and employees who were until 2006 covered by the state industrial relations systems (mainly constitutional corporations). The national system covers all employees employed by constitutional corporations. South Australia and Tasmania. 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). except for provisions that the Work Choices legislation deemed to be prohibited content. a set of 122 modern awards form the benchmark for employees covered by the national workplace relations system. Modern awards will also soon apply to the smaller group of employers and employees working for unincorporated private sector businesses that were NCVER Report 3 final Page 33 . Since 1 January 2010. NAPSAs were created as part of the former Work Choices system to cover conditions of employment. 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. excluding rates of pay. federal government employees.Table 1 Occupation Apprenticeship contracts by employment instrument. Machinery operators and drivers 8 Labourers Total 2 76 55 78 62 80 88 72 76 84 75 94 76 61 65 49 56 68 12 31 9 14 8 6 13 12 5 9 4 11 13 21 18 22 14 2 3 2 4 2 1 1 2 1 3 0 2 5 4 10 5 4 10 11 10 20 11 5 13 9 9 13 2 10 22 10 23 18 14 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Notes: 1 Other includes State Workplace Agreements. The Work Choices changes also removed pay scales from awards and NAPSAs. and certain other categories of employees. DEEWR. Source: Data extracted from TYIMS. August 2010. the reforms transferred wage-setting powers from the Australian Industrial Relations Commission to the Australian Fair Pay Commission. 2009 commencements Federal or state award % Certified Agreement % Australian Workplace Agreement % Other1 % Total % 1 Managers 2 Professionals 3 Technicians and trades workers 31 Engineering. Queensland. Prohibited content included anti-AWA clauses and restrictions on the range or duration of apprenticeships. creating a separate pay scale instrument (Australian Pay and Classification Scales). Modern awards have replaced pre-reform federal awards and Notional Agreements Preserving State Awards and Australian Pay and Classification Scales.

The National Training Wage Award was made in 1994. 95 awards include the National Training Wage Schedule. the terms of the state awards continue to apply. The conditions for apprentices are contained within the main body of the award relating to the relevant occupation or industry of that apprenticeship.5 Awards continue to distinguish between apprentices and trainees. The employment arrangements for trainees reflect their more recent history. trainees are covered by the same Training Wage Schedule.brought into the national system by the Fair Work Act from 1 January 2011. A list of all modern awards that include provisions relating to apprentices or trainees is included in table A1 in the appendix. A content analysis was conducted of all 122 modern awards. NCVER Report 3 final Page 34 . Traineeships in the training wage schedule are allocated to wage levels based on training package and qualification level. In the meantime. Commissions in the state jurisdictions made their own training wage awards along similar lines. and following award simplification a new award was made in 2000. With a few exceptions. These relate to the supply of tools and competencybased training arrangements and are detailed later in this report. 49 awards include the School Based Apprentices Schedule. in the same manner as the training wage schedule. such as restrictions on overtime or reimbursement of training-related expenses. The arrangements for school-based apprenticeships are usually contained in a standard schedule to the main award. 45 awards include rates of pay for apprentices 21 awards include at least one other provision relating to employment conditions for apprentices. 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.

such as Agri-Food. These proportions were initially set in 1994. which is appended to 95 of 122 awards. 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. Entertainment. when the precursor National Training Wage was made. NCVER Report 3 final Page 35 . certificate II or certificate III level. The training wage rates are published as amounts. and various other qualifications from other training packages. Wage Level B also covers certificate I–II qualifications in the retail services industry. Meat Industry. Within each wage level. Wage level B includes all level qualifications from the Animal Care and Management. Hospitality and Events training packages. Maritime and Tourism. which under the modern award system are set by the National Training Wage Schedule. Property Services. Furnishing. the highest level of schooling completed and the number of years since the trainee left school. but are based on proportions of the national minimum wage (rounded to the nearest dollar). Outdoor Recreation. Other reports have covered in detail how traineeships are predominantly used in the sales. Automotive Retail Service and Repair. different rates of pay apply. Wage Level A pays the highest wage includes all certificate I–III qualifications from the Business Services. Rather than a single national training wage. Manufacturing. comprises mainly training packages from primary industries. Financial Services. higher-level (certificate III) qualifications from the Beauty and Retail Services training packages. depending on the qualification level. The training wage schedule divides traineeships for these qualifications into three wage levels on the basis of training package and qualification level. the training package. clerical and administrative. Most traineeships covered by the National Training Wage are at the certificate I. Conservation and Land Management. Rural Production and Seafood Industry. Forest and Forest Products Industry. community and personal services and machinery operator and driver occupational categories. the lowest. and Sugar Milling Industries packages.Award wage rates and relativities Trainees We look first at the wage rates for trainees. Wage Level C.

and schoolbased traineeships. Part-time trainees are not paid for time spent in training. Adult trainees undertaking a certificate level IV traineeship are paid according to the following proportions: NCVER Report 3 final Page 36 . This training may occur on or off the job. July 2010 Highest yr of schooling Yr 10 % Yr 11 % Yr 12 % Wage Level A School leaver Plus 1 yr out of school Plus 2 yrs out of school Plus 3 yrs out of school Plus 4 yrs out of school Plus 5 yrs out of school 45 49 59 69 80 91 49 59 69 80 91 59 69 80 91 Wage level B School leaver Plus 1 yr out of school Plus 2 yrs out of school Plus 3 yrs out of school Plus 4 yrs out of school Plus 5 yrs out of school 45 49 57 66 77 88 49 57 66 77 88 57 66 77 88 Wage level C School leaver Plus 1 yr out of school Plus 2 yrs out of school Plus 3 yrs out of school Plus 4 yrs out of school Plus 5 yrs out of school Source: National Training Wage Schedule. as proportion of National Minimum Wage. with an additional loading of 3. Different arrangements apply to trainees undertaking certificate level IV traineeships. The hourly rate for part-time trainees is 1/38 of the weekly rate.9%. with 20% of ordinary hours to be spent in approved training. A trainee undertaking a certificate level IV traineeship is paid the rate for the corresponding certificate level III traineeship.Table 2 Training wage schedule rates of pay. in accordance with the training contract. with an additional 20% loading to take into account the notional time spent in training. 45 49 57 65 72 80 49 57 65 72 80 57 65 72 80 A full-time traineeship is based on 38 ordinary hours a week.

July First year % Subs yrs % 99 95 87 Wage level A Wage level B Wage level C Source: National Training Wage Schedule. The occupational categories with the highest proportions of existing worker trainees are clerical and administrative workers (28. NCVER Report 3 final Page 37 . In addition. the schedule provides for school-based trainees to receive a 25% loading in lieu of paid annual leave.6%) (NCVER 2010. it is substantially above 19%.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.17). machinery operators and drivers (14. July Yr 11 or lower % All wage levels Source: National Training Wage Schedule. Table 5 shows for the top 20 traineeship occupational categories the proportion of employees who are reliant on minimum rates of pay. Table 4 2010 Wage levels as proportion of National Minimum Wage for school-based traineeships.6%) and sales workers (11.Table 3 2010 Wage level Wage levels as proportion of National Minimum Wage for certificate IV traineeships. and other entitlements. p. paid sick leave. 95 92 83 School-based traineeships The rate for school-based trainees is based on their current level of schooling. Yr 12 % 65 59 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. Relativities to occupational earnings The use of the national minimum wage as a base for trainee wages is appropriate. In many cases. given the relatively high reliance of employees in these occupational categories on the national minimum wage.4% of all commencing clerical and administrative trainees in 2009 were existing workers). which is Fair Work Australia’s estimate of the proportion of all employees who are reliant on minimum rates of pay.

NTIS) group Proportion of all trainees covered by this occupation % 621 Sales assistants and salespersons 512 Office and practice managers 431 Hospitality workers 732 Delivery drivers 741 Storepersons 531 General clerks 541 Call or contact centre information clerks 224 Information and organisation professionals 423 Personal carers and assistants 831 Food process workers 411 Health and welfare support workers 811 Cleaners and laundry workers 421 Child carers 591 Logistics clerks 134 Education. table 4).Table 5: Proportion of employees in typical trainee occupations reliant on minimum rates of pay Occupation (ANZSCO . health and welfare services managers 552 Financial and insurance clerks 712 Stationary plant operators 711 Machine operators 451 Personal service and travel workers 721 Mobile plant operators 841 Farm. NCVER Report 3 final Page 38 . forestry and garden workers 18% 13% 9% 5% 5% 5% 4% 3% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% Proportion of employees in this occupation reliant on minimum rates of pay % 35% 13% 61% 30% 19% 17% 8% 2% 45% 12% 19% 56% 69% 11% 14% 9% 4% 17% 24% 14% 14% Notes: Proportion of trainees is based on apprentices in non-trade occupations in-training in October–December 2009. Bolton & Wheatley (2010. Proportion reliant on minimum rates of pay is based on analysis of 2006 Employee Earnings and Hours Survey. Source: NCVER Apprentice and Trainee Collection.

Of the remainder. the engineering trades. which covers joiners and building trades workers working in other industries. In table 6. we match modern awards to the main categories for apprentices in trade occupations. the Plumbing and Fire Sprinkling Award 2010. and the plumbing trades. Beverage and Tobacco Manufacturing Award 2010. Services and Retail Award 2010 and the Manufacturing and Associated Industries and Occupations Award 2010 respectively. Electronic and Telecommunications Contracting Award 2010. the Hospitality Industry (General) Award. A further quarter were working in the construction trades (ANZSCO 33). using data from the NCVER collection. the joinery and other building trades. does not include apprentice rates of pay). The main awards for the construction trade workers are the Building and Construction General On-Site Award 2010. NCVER Report 3 final Page 39 . which is covered by Electrical. A further 17% of apprentices are training in the electrical trades. the General Retail Industry Award 2010. the Food. the Registered and Licensed Clubs Award 2010. However. Repair. and the Meat Industry Award 2010. Coverage of the food trades is split across many awards. The main awards for the automotive and engineering trades are the Vehicle Manufacturing. Approximately a quarter of all apprentices intraining during October–December 2009 were training for occupations in the automotive and engineering trades (ANZSCO 32).Apprentices Forty-five awards provide that apprentices may be employed but only 44 specify rates of pay for apprentices (one. We break these classifications down to the 3-digit level to show the proportion of apprentices in the automotive and vehicle trades. award coverage in practice is concentrated on a few main awards for each industry or occupational category. Hairdressers are covered by the Hair and Beauty Industry Award 2010. Plumbers are covered by their own occupational award. construction and electrical classifications account for more than seven in ten apprentices in the traditional trades. which covers civil construction and the Joinery and Building Trades Award 2010. depending on industry: the Restaurant Industry Award 2010. the largest groups are the food trades (10%) and hairdressing (6%). The automotive and engineering. in order to better align with modern award coverage. the Children’s Services Award 2010.

The exception is apprentices in the child care industry. ICT and science technicians 32 Automotive and engineering trades workers 321. Table 7 contains the NCVER Report 3 final Page 40 . 324 Automotive & vehicle trades workers 322+323 Engineering trades workers 33 Construction trades workers 331. Printing and Publishing Award 2010 Textile. these are expressed as a ratio of the relevant tradesperson rate contained in the award. clothing and footwear trades workers 394 Wood trades workers 12 6 1 0 2 Hair and Beauty Industry Award 2010 Graphic Arts. The ratio is based on the stage of the apprentice. Services and Retail Award 2010 Manufacturing and Associated Industries and Occupations Award 2010 334 Plumbers 34 Electrotechnology and telecommunications trades workers 35 Food trades workers 8 17 10 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 391 Hairdressers 392 Printing trades workers 393 Textile. 333 Joiners and building trades 3 27 13 14 27 19 Building and Construction General On-site Award 2010 Joinery and Building Trades Award 2010 Plumbing and Fire Sprinklers Award 2010 Electrical. Clothing. 332. Electronic and Telecommunications Contracting Award 2010 Restaurant Industry Award 2010 Hospitality Industry (General) Award 2010 Registered and Licensed Clubs Award 2010 Food.5% for a first-year plumber to 95% for fourth-year apprentices in a variety of occupations and industries. typically expressed as a year. Footwear and Associated Industries Award 2010 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. In this initial examination of apprentice pay. in-training estimates. We consider later separate arrangements that may be in place for adult apprentices and apprentices with higher qualification levels. Beverage and Tobacco Manufacturing Award 2010 General Retail Award 2010 Meat Industry Award 2010 Vehicle Manufacturing. Repair. For the standard four-year apprenticeship. civil construction and metal and engineering construction. we consider first the basic rate paid to junior apprentices.Table 6 Apprentices in trades occupations with main relevant modern award(s) Proportion of apprentices in trades occupations % Main relevant modern award(s) Occupation 31 Engineering. In all except one case. Source: NCVER Apprentice and Trainee Collection. the rates range from 37. October–December 2009. 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.

This award is intended as a catch-all award for award-reliant employees who are not covered by any other award. first year. A much smaller number of awards provide for three-year apprenticeships in certain vocations. Table A2 in the appendix contains the ratios for all awards with four-year apprenticeships. Separate arrangements apply for those with Year 11 or Year 12. These awards generally feature higher starting ratios at all years. Repair. Services and Retail Award 2010 Lowest ratio in all awards 2 1 1 2 Award name Year 2 % 55 52 60 60 55 65 55 55 65 55 60 55 50 67 Year 3 % 75 70 80 72. 2 The ratio for hairdressers in the first 3 months of their apprenticeship is 35%. Printing and Publishing Award 2010 Hair and Beauty Industry Award 2010 (Hairdressing apprentices) Hospitality Industry (General) Award 2010 Joinery and Building Trades Award 2010 Manufacturing and Associated Industries and Occupations Award 2010 Miscellaneous Award 2010 Plumbing and Fire Sprinklers Award 2010 (Plumbing apprentices) Timber Industry Award 2010 (All except saw doctor apprentices) Vehicle Manufacturing.5 58 Highest ratio in all awards Notes: 1 These ratios apply to non-adult apprentices whose highest school level is Year 10 or below. and in the last six months of the apprenticeship.5 50 42 37. with a higher wage payable after the first six months. However. Awards with three-year apprenticeships are detailed in table 8. The Hospitality Industry (General) Award 2010 and the Registered and Licensed Clubs Award 2010 include provisions for a two-year waiting apprenticeship.ratios for four-year apprenticeships in the main awards. second year. Table 8 Apprentice wage ratios for three year apprenticeships Year 1 % Building and Construction General On-site Award 2010 Water Industry Award 2010 Local Government Industry Award 2010 Joinery and Building Trades Award 2010 General Retail Industry Award 2010 Source: Author’s analysis of modern awards.5 77 80 75 75 80 70 75 75 70 85 Year 4 % 90 82 90 87. the Miscellaneous Award 2010. Award name Year 2 % 75 70 70 75 60 Year 3 % 90 90 90 90 80 55 45 45 50 50 The Dry Cleaning Award 2010 also provides for three-year apprenticeships. Source: Author’s analysis of modern awards.5 45 55 45 42 55 37. NCVER Report 3 final Page 41 .5 90 95 90 88 95 90 90 88 82 95 45 40 50 47. the award is not intended for employees who are not traditionally award reliant. Electronic and Communications Contracting Award 2010 General Retail Industry Award 2010 Graphic Arts. Table 7 Apprentice wage ratios by year for selected awards (4 year apprenticeships) Year 1 % Building and Construction General On-site Award 2010 Electrical. See table 12.

Clothing.0 90. Source: Author’s analysis of modern awards. 3.0 81. NCVER Report 3 final Page 42 .0 92.0 88.66) Black Coal Mining Industry Award 2010 ($658.0 87.0 83.There is similar uniformity to the actual comparator rate.0 82. The Adult Apprentice pay provisions in the Electrical Award are transitional arrangements that apply only to Queensland apprentices and which expire in 2014.0 83. Cl 20.60) Timber Industry Award 2010 (Saw doctor apprentices only) ($684.0 94.0 100.60 per week. Printing and Publishing Award 2010 provides that an adult apprentice must not be paid less than the minimum wage for a level 1 employee.0 84. Footwear and Associated Industries Award 2010 Timber Industry Award 2010 Notes: 1 Three-year apprenticeships 2.80) Rail Industry Award 2010 (Operations stream only) ($671.0 95.0 80.3 Stage 3 % 90. The implication of this is that most of the variation in apprentice wages comes from the different ratios in effect. 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. Table 9 Pay ratios for adult apprentices Stage 1 % Aluminium Industry Award 2010 Black Coal Mining Industry Award 2010 Coal Export Terminals Award 2010 1 1 Award name Stage 2 % 90.0 88.80) Sugar Industry Award 2010 (Bulk Handling Employees) ($717. in other cases expressed as the equivalent annual or hourly amount.0 95.0 85. Of the 44 awards specifying an apprentice rate of pay.0 90.0 80. Services and Retail Award (Higher engineering tradesperson – Stage 4 only) ($684. Printing and Publishing Award 2010 3 75.50) Vehicle Manufacturing.0 92.0 98.5 90. Repair. Pay rates for adult apprentices Most awards with apprentice rates of pay make no provision for separate rates for adult apprentices.0 na 100.0 na na 90. three approaches are evident.4 Stage 4 % 95.00) Stevedoring Industry Award 2010 (658. Of the 20 awards that do.0 82. 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 9.5 Joinery and Building Trades Award 2010 (Four-year apprenticeship) Joinery and Building Trades Award 2010 (Three-year apprenticeship) Textile.28) Telecommunications Services Award 2010 ($704.0 88. Electronic and Communications Contracting Award 2010 Graphic Arts. which logically may vary from occupation to occupation.6 of the Graphic Arts.50).0 90.0 80.0 80.0 2 Electrical Power Industry Award 2010 Electrical.0 70. including assumptions about the productivity of apprentices as they progress. In some cases this amount has been rounded to the nearest dollar. There are the following exceptions to this pattern: Alpine Resorts Award 2010 (all except apprentice chefs) ($705. or 116% of the National Minimum Wage).0 85.0 94.0 87. These reflect many factors.0 93.

selected awards Award name Relevant clause Airport Employees Award 2010 Building and Construction General On-site Award 2010 Educational Services (Schools) General Staff Award 2010 Local Government Industry Award 2010 Plumbing and Fire Sprinklers 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. (Cl. Beverage and Tobacco Manufacturing Award 2010 Vehicle Manufacturing Repair. Subject to clauses 19. or the rate prescribed in clause 15.8 c).3 a. C14 is the basic unqualified rate and equates to the national minimum wage.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 16.1 or the rate prescribed by clause 19.2 c).1 (14. the rate of pay of an adult apprentice will be the rate prescribed for the lowest paid classification in clause 19. Depending on the level of the floor. which is the level covering most manufacturing traineeship qualifications.2. whichever is the greater. whichever is the greater (Cl 19. An adult apprentice will be paid no less than the minimum weekly rate for Level 2 in clause 14. 20. whichever is the greater (Cl 15. this may apply only in the first year or to most stages.1.3 c). 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. Table 11 Formula for calculating pay rates for adult apprentices. but sets a floor that no adult apprentice can be paid less than a certain amount (often the minimum classification in the award). or • the amount prescribed for apprentices generally in clause 20. Refinery and Maintenance stream) Stage 1 National training wage – skill level B exit rate 76% of Level 5 (C10) National training wage – skill level B exit rate National training wage – skill level B exit rate Stage 2 C14 Level 1 Level 1 C14 Stage 3 C13 Level 2 Level 2 C13 Stage 4 C12 Level 3 Level 3 C12 NCVER Report 3 final Page 43 . Manufacturing and Associated Industries and Occupations Award 2010 and related awards Award Manufacturing and Associated Industries and Occupations Award 2010 Food. The third approach is that used by the Manufacturing and Associated Industries and Occupations Award 2010 and the awards historically related to it. while C13 similarly assumed in-house training.The second approach applies the same rates as junior apprentices. Services and Retail Award 2010 Sugar Industry Award 2010 (Milling. such person must not suffer a reduction in the rate of salary by virtue of becoming indentured (Cl 17.4(b) for the relevant year of the apprenticeship. This relates adult apprentice wage rates to corresponding adult rates below the level of qualified tradesperson.8(a) and (b). Table 10: Formula for calculating pay rates for adult apprentices. The rate of pay for an adult apprentice will be the rate prescribed for the lowest classification in clause 15.1). Provided that where a person was employed by the employer prior to becoming an adult apprentice. 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. Examples of these provisions are detailed in table 10.4 c).7 for the relevant year of apprenticeship. Wage level C14 assumes up to 38 hours of induction training. Distillery. C10 is the classification for a qualified tradesperson. 20.

(See Australian Government 2006. pp. Refinery and Maintenance stream) take into account the apprentice’s highest level of schooling when determining the level of pay.321–5. p. 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. Table 12 Formula for calculating apprentice wage rate based on highest year of schooling Year 10 or less 42% of the C10 trades rate Stage of apprenticeship Stage 1 Completed Year 11 80% of the unapprenticed junior rate under this award for an 18-year-old 55% of the C10 trades rate Completed Year 12 The relevant rate applicable to a trainee commencing after Year 12 under National Training Wage skill level A.10 b) Joinery and Building Trades Award 2010 (Cl 13. the Food. Clothing. Electronic and Communications Contracting Award 2010 (Cl 12.3) Textile.17). Footwear and Associated Industries Award 2010 (Cl 19) NCVER Report 3 final Page 44 . Printing and Publishing Award 2010 (Cl 13. The relevant rate applicable to a trainee commencing at year 12 plus one year under National Training Wage skill level A. Mention should be made of the initiatives undertaken by state jurisdictions to address the issue of pay rates for adult apprentices.29).9% of all commencing apprentices in trades occupations were existing workers (NCVER 2010. 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.8) Graphic Arts. Consideration of other factors In some awards. 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.) These decisions do not apply to the national workplace relations system. The Manufacturing and Associated Industries and Occupations Award 2010.4) Manufacturing and Associated Industries and Occupations Award 2010 (Cl 25) Plumbing and Fire Sprinklers Award 2010 (Cl 16. the level of apprentice pay is partly determined by the apprentice’s previous experience and qualifications. Beverage and Tobacco Manufacturing Award 2010 and the Sugar Industry Award 2010 (Milling. 10. In 2009. 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. Distillery. although this nexus was later broken. 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. p.In addition to these provisions. 75% of the C10 rate C12 rate Stage 2 55% of the C10 trades rate Stage 3 Stage 4 75% of the C10 trades rate 88% of the C10 trades rate 75% of the C10 trades rate 88% of the C10 trades rate Source: Manufacturing and Associated Industries and Occupations Award 2010.

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. full-time school students will be deemed to have spent 25% of the actual hours worked on the job in off-the-job training. will apply to school-based apprentices for total hours worked including time deemed to be spent in off-the job training.School-based apprentices The school-based apprentices schedule provides that the relevant minimum wages for full-time junior and adult apprentices in this award. NCVER Report 3 final Page 45 . 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. calculated hourly. In calculating the number of hours spent in off-the-job training.

we consider whether apprentices are eligible to receive general allowances. In a further 12 cases. apprentices receive a proportion of the full rate on the same percentage basis as their pay. In the remaining 15 awards. Apprentices are paid a percentage of the full travel allowance ($4. or disability allowances for working in confined spaces or with hazardous materials. 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. Apprentices employed under this award may be eligible for additional fares allowances if required to travel certain distances to a job site. Under special transitional arrangements. such as for possession of a first-aid certificate or driving a fork life. This industry allowance ranges from 2. We do not consider reimbursements of expenses or allowances that are only payable under certain conditions. NCVER Report 3 final Page 46 . Under 13 awards.96% (Hydrocarbons Industry [Upstream] Award 2010). 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.5% (Salt Industry Award 2010) to the 5.7% as well as a daily travel allowance. or skills-based allowances.Allowances In this section. Tool allowances are paid to trades classifications.99 per day) according to the same ratio as their basic rate of pay. or tool allowances. Apprentices employed under the Electrical. Under a further five. no tool allowance is payable to apprentices. such as industry allowances and disability allowances. A qualification to this relates to apprentices in Queensland. the situation is more ambiguous. while performing the work of the trades classification. 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. Electronic and Communications Contracting Award receive an industry allowance of 3. 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. A general order of the Queensland Industrial Relations Commission. this Order continues to apply to Queensland apprentices and their employers who were covered by the Order prior to the commencement of modern awards. Supply of Tools to Apprentices. Apprentices. such as meals allowances when more than two hours of overtime is required to be worked. are employed under their own classification and as such and on a strict reading are not eligible for tool allowance. apprentices receive the full flat rate.

The provisions of this clause will not apply where the employer provides such tools of trade (Dry Cleaning and Laundry Industry 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).20 (a) A tradesperson will be paid an allowance of $14.Table 13 Incidence and examples of tool allowance provisions for apprentices in modern awards No 13 Tool allowance summary Full flat rate Example 15. 21.55 per day or part thereof up to a maximum of $7. (Hospitality Industry [General] Award).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. 20.60 per week.69 per week for supplying and maintaining tools ordinarily required in the performance of the employee’s work as a tradesperson.1 (b) Where a cook is required to use their own tools. the employer must pay an allowance of $1. 12 NCVER Report 3 final Page 47 .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. 15. the employee will be paid an additional weekly amount of $18. Proportion based on stage of apprentice stage 5 Tool allowance payable to trades classifications 12 No tool allowance payable – reimbursement of tools 3 No tool allowance payable Source: Author’s analysis of modern awards. The allowance will be paid for all purposes of the award.25 (Local Government Industry Award).

4) adopt the same language as the manufacturing award.4 Source: NCVER (2010.1 49. 65.6 5. whichever occurs sooner (Cl 15. Services and Retail Award 2010 also allows for competency-based wage progression.8 15.5 15.9 5.8 13. by completing competencies in accordance with the apprentice’s training plan (Cl 35.1 11. NCVER Report 3 final Page 48 .9 11. but do not include any other provisions detailing what requirements need to be met for apprentices to advance stages. services & retail]. once they have completed the appropriate proportion of the competencies needed to attain the qualification associated with the apprenticeship. certificate III or above. 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. The Manufacturing and Associated Industries and Occupations Award 2010 provides for apprentices to advance to the next stage of the apprenticeship.9 6.8 10.0 10. The Food.0% had been in training for less than three years (NCVER 2010).4 48. apprentices can commence their apprenticeship at a higher wage rate if they have already completed the prerequisite competencies for that stage.6 63.8 16. By the same measure.9 5.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. table 20). The ability of apprentices to advance to a higher wage level constitutes a significant incentive to achieve competencies at a faster rate.4 16.9 Over 3 and up to 4 years 65. not achievement of competencies.2) and the milling and distilling streams of the Sugar Industry Award 2010 (Cl 40.9% of apprentices had been in training for less than three years.3 16.5 2009 11.5% of apprentices completing in 2009 had been in training for between three and four years and 46.6 5.6 17. by duration of training.5 5.7 53.2 6.5 11.3 13. Cl 49 [Manufacturing]).2 17.5 5. The Vehicle Manufacturing. referring to ‘stages’ rather than years.5 Over 4 years 5. Table 14 Apprentice and trainee completions in trade occupations.1 [Repair. By comparison.6 12. award provisions governing the vast majority of apprenticeships continue to base wage progression during the apprenticeship on duration of service. Competency-based progression is promoted as one method of accelerating apprenticeships to increase the supply of skilled workers.7 16. or after 12 months. There are few exceptions. 48. Beverage and Tobacco Manufacturing Award 2010 (Cl 21.5 51. which do provide for apprentices to increase their wages more quickly as their competence improves.8 14. Of the apprentices in trade occupations completing in 1999.6% had been in training between three and four years and only 28.9 4.0 48.3 49.3 11.2 Over 1 and up to 2 years 9.5 14.9 11.7 Over 2 and up to 3 years 9.1 17.6).1 57.3 12.3 13. Repair. However.9 49.6 12.9 16.5 15.1 17.5 4. 1999–2009 (%) Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Up to 1 year 9.4 15.7 51.2 10.

Two awards. the Plumbing and Fire Sprinklers Award 2010 (in relation to junior apprentices only) and the Electrical. or relates exclusively to the provision of tool for an apprentice. Electronic and Communications Contracting Award 2010. Callan 2008). The wage rates for apprentices in these awards refer to years. namely. are well covered by competency-based wage progression but the other occupational categories are not. These transitional provisions only apply to apprentices to whom competency-based progression arrangements would have applied prior to 1 January 2010 (see below). then it will continue to apply to existing as well as new apprentices (see Fair Work Australia 2010.5 a). Under the transitional arrangements.9). The generic wage arrangements for apprentices and trainees from Schedule 1 of the Order are reproduced in tables A3 and A4 of the appendix. specify that the term of the apprenticeship will be four years. that are specified in the relevant schedule.10) Joinery and Building Trades Award 2010 (Cl13.8) Graphic Arts. where the qualification has been attained and other requirements met. 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. 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. The Apprentices’ and Trainees’ Wages and Conditions Order (4. Printing and Publishing Award 2010 (Cl 13. These are: Electrical. an exception was made so that if an award-based transitional instrument sets a competency-based training arrangement. The Building and Construction General On-site Award 2010 contain transitional provisions allowing competency-based progression through the wage structure (Cl 19. comprising one-quarter of all apprentices in the traditional trades. any competency-based training arrangement referred to in a Division 2B State Award will also continue in effect after 1 January 2011. Prior to award modernisation. The remaining awards make no reference to competency-based progression through the wage structure. Clothing.7 c). 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. The arrangements vary for construction and electrical apprentices and no arrangements are in place for the other sizeable categories. NCVER Report 3 final Page 49 . p. but advancement between wage levels is based on time (Cl 13.4) Textile.3. Footwear and Associated Industries Award 2010 (Cl C. the food trades and hairdressing. As a separate issue.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.7 c). NAPSA remain in effect. Queensland was the jurisdiction to have made the most progress advancing competency-based progression for apprentices (Australian Government 2006.The Joinery and Building Trades Award 2010 provides for apprenticeships to be completed prior to the nominal completion date. As part of the transitional arrangements.17). These transitional provisions cease to operate on 31 December 2014. Electronic and Communications Contracting Award 2010 (Cl 12.4) Plumbing and Fire Sprinklers Award 2010 (only in relation to adult apprentices) (Cl 16. This means that engineering and automotive apprentices.

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
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traineeships, as were Animal and Horticultural trades workers (ANZSCO32) who did not selfreport as apprentices and who were not working in nursery, landscaping, gardening or greenkeeping 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

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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 2009 by wage level Wage level Number
5599 62132 Wage level A Wage level B Wage level C Could not be determined Total 115716 35478 3986 717 223628

Qualification level
Diploma and above Certificate IV Certificates I–III

Per cent
2.5% 27.8% 51.7% 15.9% 1.8% 0.3%

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.

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there is a sharp difference between apprentices in the first two years of their apprenticeship. hairdressing. The insertion of adult apprentice pay clauses into awards appears to have made an impact. printing trades and textile. There is little difference in the incomes of apprentices working in capital cities and those working outside the capital cities. In calculating the average weekly above-award payment. who earn well below the minimum wage. We report the average (median) weekly award wage as calculated. wood trades. While a majority of construction apprentices receive close to the relevant award rate.80 per week). as well as a special allowance. we apply a tolerance of 10% to the calculated award wage and disregard those earning below the award wage. with adult apprentices receiving a higher award rate as well as having a higher average income. we find that most apprentices receive over-award payments. clothing and footwear trades) are less likely to earn income well in excess of the relevant award wage. although it does appear that apprentices working outside the capital cities are less likely to receive above-award payments. 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. apprentices working in small businesses are less likely to receive above-award payments. horticultural trades. When considered by stage of apprenticeship. there is substantial variation by occupation. NCVER Report 3 final Page 53 . Looking first at income for apprentices.Extent of over-award payments We now examine the extent of over-award payments among apprentices and trainees. However. apprentices from the other categories (comprising the food trades. the average (median) weekly income from main job and the average (median) weekly above-award payment. This aside. The average weekly income for automotive and engineering. the average weekly above-award payment is smaller than the difference between the average weekly award wage and the average weekly income. and those in the later stages. who are paid a weekly industry allowances at the same rate as tradespeople. this partly reflects the higher award rates for apprentices in the construction trades. As expected. Consequently. as table 16 shows. construction and other trades apprentices was below the federal minimum wage at the time ($543. who do considerably better. which is paid at the same ratio as their ordinary wages.

Table 16: Apprentice average weekly income and award over-payment by selected characteristics Average (median) weekly award wage ($)
Occupation Automotive & Engineering Construction Electrical Other trades 356 399 518 414 500 441 652 502 55 27 179 49 43.2 42.4 24.4 29.1 20.1 39.9 24.4 49.9 21.7 12.0 12.8 13.2 15.0 5.7 38.4 7.8

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 (%)

Stage Stage 1 Stage 2 Stage 3 Stage 4 274 356 484 567 403 400 614 672 72 0 65 57 22.4 57.6 34.7 38.9 43.2 23.6 25.1 24.8 22.5 8.1 22.0 10.5 11.9 10.7 18.3 25.9

Age Adult Junior 517 356 620 464 168 24 19.2 42.1 27.4 32.9 33.4 10.1 20.0 15.0

Location Capital city Balance of state or territory 383 368 503 500 74 18 30.0 43.2 33.9 28.9 16.4 15.5 19.8 12.4

Size of business Under 20 20–99 100 and over 356 518 383 477 638 550 19 180 89 42.2 25.7 33.3 34.9 19.6 31.4 14.2 22.8 13.6 8.7 31.9 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.

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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.

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Table 17: Trainee award over-payment by characteristics Average (median) weekly award wage ($)
Adult Not adult 501 269

Average (median) weekly income ($)

Average (median) weekly above award payment ($)
207 60

Paid at award wage (%)

Up to $150 over relevant award wage (%)
20.0 52.3

$151 - $300 over relevant award wage (%)
17.7 21.9

$301 or more over relevant award wage (%)
39.7 7.1

761 380

22.7 18.7

Existing worker Not existing worker

501 437

750 450

167 94

16.5 23.8

26.5 41.2

16.8 21.6

40.2 13.4

Males Females

501 483

700 450

216 60

12.8 27.4

28.5 40.8

22.7 17.2

36.0 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.

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we find that over-award payments are quite common among trainees. we find that among apprentices. that cannot be identified by this study existing workers undertaking traineeships. encompassing apprentices and trainees. young trainees. On the basis of NCVER data and data supplied by Centrelink. 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. it is the opportunity cost of undertaking an apprenticeship or traineeship that mattes. fewer than one in 20 non-indigenous apprentices and trainees under the age of 25 receive youth allowance payments. NCVER Report 3 final Page 57 . Award wages and the extent of over-award payments are therefore germane. It is clear that. but the scope needs to be larger. wage levels are very low and earnings fall substantially below the minimum wage. and the alternative occupations and jobs that are available to apprentices and trainees if they do not complete their training. and new workers are much more likely to earn wages close to the award wage. Nguyen & Saunders 2007). for a variety of reasons. and certainly low wages must discourage potential apprentices and trainees (see Misko. using data from the NCVER Apprentice and Trainee Destination Survey. 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. However. for some groups of apprentices and trainees. Female trainees. and to a much lesser extent apprenticeships. There are two obvious wages of increasing the income of the lowest-paid apprentices and trainees—increasing award payments and through government income support. However. Consistent with our expectations. especially in the electrical and automotive and engineering trades the opportunity to work additional hours as overtime or shiftwork. 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. Even now. over-award payments are most common in the electrical and automotive and engineering trades and least common in the other trades. sex and employment duration. Against our expectations. over-award payments for trainees are segmented by age. such as collective agreements. This was the focus of recent work by Karmel and Mlotkowski (2010).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. The former will clearly affect the number of apprentices and trainees taken on by employers (but we do not know by how much). apprentices and trainees are entitled to income support but the numbers receiving such support are very low. and so continuing to receive a wage higher than the apprentice wage. the majority of apprentices and trainees earn in excess of the relevant award wage. Some have argued that this is of concern. The substantial number of apprentices and trainees receiving above-award payments suggests that more than the level of award wages. The latter would be a transfer from taxpayers and typically income support only goes to those in extreme need. For apprentices. they found that what matters most is the wage premium on completion. the occupations open to apprentices and trainees once they complete their training.

au/workplace/Publications/WorkplaceRelations/MinimumWageDeterm ination-Archive. J. research report no. International Journal of Training Research. <http://www. Sydney. report commissioned by the Australian Fair Pay Commission. Bittman. Fair Work Australia. Adelaide. NCVER. commissioned by the Australian Fair Pay Commission. Saunders. O’Brien. J & Mavromaras. <http://www. University of New England. Cully. pp. Fair Work Australia 2010.pdf>. Reasons for new apprentices’ non completion. Melbourne. The impact of wages on the probability of completing an apprenticeship or traineeship. Traineeship non-completion. vol. NCVER. S 2006.workplace.qirc. Accelerated apprenticeships: apprentice. ‘Paying apprentices – the market responds’. Workplace Research Centre. C & Ray. Adelaide. McGuinness. Bolton . D 2008. Queensland Government Submission to the Australian Industrial Relations Commission – award modernisation. Callan.6. Snell. Training and Industrial Relations. Apprentice and trainee 2009 annual. Brisbane. M & Curtain. NCVER. R 2001.htm>. D & Hart. Characteristics of minimum wage employees.4/06. T 2006. M. rev. Minimum wage transitional instruments under the Fair Work Act 2009 and the Fair Work (Transitional Provisions and Consequential Amendments Act) 2009. report prepared for the Office of Industrial Relations. Freebairn. employer and teaching staff perceptions. Doing an apprenticeship: what young people think. Grey. Beswick. Australian Government Submission to the Australian Fair Pay Commission.gov. Department of Education. ACCI Review. February. Australian Government 2006. research report 4/2010.gov. Healy. NCVER. Melbourne. Melbourne.au/resources/pdf/orders/order%20obo%20extract_181208. K. Karmel.Smith. Misko.gov. An updated profile of the minimum wage workforce in Australia. D 1999. K 2007. Nguyen. G & Battin. Adelaide. T 2010. Adelaide.References Australian Chamber of Commerce and Industry 2005.5–9. Centre of Applied Research in Social Science (CASS). viewed 16 July 2010. Earnings of employees who are reliant on minimum rates of pay. pp. ‘Reasons for non-completion and dissatisfaction among apprentices and trainees: a regional case study’. The link between industrial arrangements and skill reform. report prepared for Group Training Australia. July. Living standards of apprentices. research report no. Melbourne. NCVER Report 3 final Page 58 . R. Training and Youth Affairs Canberra.qld. P 2010. 2/07. <http://www. NCVER (National Centre for Vocational Education Research) 2010. T & Mlotkowski. Armidale.au/resources/pdf/orders/supply%20of%20tools%20to%20apprentices. T & Wheatley. V 2001.44–73. —— 2008.120. Fair Work Australia. NCVER. no. W. J & Richardson. July 2007. edn. Oliver.qirc. J 2007. N &. Reavell. A 2008. Adelaide. S.qld.pdf> Order – Supply of Tools to Apprentices 1998. Brisbane. Orders of the Queensland Industrial Relations Commission Order – Apprentices’ and Trainees’ Wages and Conditions (Excluding Certain Queensland Government Entities) 2003. no.1. Report on apprenticeship and traineeship completion. Queensland Government 2008. Department of Employment.

Training Wage Schedule and School Based Apprentices Schedule Award name Apprentice rates of pay N N N N Y Y Y Y N Y N N N N N Y N N Y N N N Y Y N N Y N N N N N N Y N Y N Y Y N National Training Wage Schedule Y Y N N N Y Y Y N Y Y Y N Y N Y N Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y Y N Y Y Y School Based Apprentice Schedule N N N N Y Y N Y N Y N Y N N Y Y N N Y Y N N Y N N N Y N N N N N N Y N Y N Y Y N Aboriginal Community Controlled Health Services Award 2010 Aged Care Award 2010 Air Pilots Award 2010 Aircraft Cabin Crew Award 2010 Airline Operations – Ground Staff Award 2010 Airport Employees Award 2010 Alpine Resorts Award 2010 Aluminium Industry Award 2010 Ambulance and Patient Transport Industry Award 2010 Amusement. Events and Recreation Award 2010 Animal Care and Veterinary Services Award 2010 Aquaculture Industry Award 2010 Architects Award 2010 Asphalt Industry Award 2010 Banking. Electronic and Communications Contracting Award 2010 Electrical Power Industry Award 2010 Fast Food Industry Award 2010 NCVER Report 3 final Page 59 .Appendix Table A1 Modern awards and their inclusion of apprentice rates of pay. Finance and Insurance Award 2010 Black Coal Mining Industry Award 2010 Book Industry Award 2010 Broadcasting and Recorded Entertainment Award 2010 Building and Construction General On-site Award 2010 Business Equipment Award 2010 Car Parking Award 2010 Cement and Lime Award 2010 Cemetery Industry Award 2010 Children’s Services Award 2010 Cleaning Services Award 2010 Clerks – Private Sector Award 2010 Coal Export Terminals Award 2010 Commercial Sales Award 2010 Concrete Products Award 2010 Contract Call Centres Award 2010 Corrections and Detention (Private Sector) Award 2010 Cotton Ginning Award 2010 Dredging Industry Award 2010 Dry Cleaning and Laundry Industry Award 2010 Educational Services (Post-Secondary Education) Award 2010 Educational Services (Schools) General Staff Award 2010 Educational Services (Teachers) Award 2010 Electrical.

Printing and Publishing Award 2010 Hair and Beauty Industry Award 2010 Health Professionals and Support Services Award 2010 Higher Education Industry – Academic Staff – Award 2010 Higher Education Industry – General Staff – Award 2010 Horse and Greyhound Training Award 2010 Horticulture Award 2010 Hospitality Industry (General) Award 2010 Hydrocarbons Field Geologists Award 2010 Hydrocarbons Industry (Upstream) Award 2010 Joinery and Building Trades Award 2010 Journalists Published Media Award 2010 Labour Market Assistance Industry Award 2010 Legal Services Award 2010 Live Performance Award 2010 Local Government Industry Award 2010 Mannequins and Models Award 2010 Manufacturing and Associated Industries and Occupations Award 2010 Marine Tourism and Charter Vessels Award 2010 Marine Towage Award 2010 Maritime Offshore Oil and Gas Award 2010 Market and Social Research Award 2010 Meat Industry Award 2010 Medical Practitioners Award 2010 Mining Industry Award 2010 Miscellaneous Award 2010 Mobile Crane Hiring Award 2010 Nursery Award 2010 Nurses Award 2010 Oil Refining and Manufacturing Award 2010 Passenger Vehicle Transportation Award 2010 Pastoral Award 2010 Pest Control Industry Award 2010 Pharmaceutical Industry Award 2010 Pharmacy Industry Award 2010 Plumbing and Fire Sprinklers Award 2010 Port Authorities Award 2010 Ports. Beverage and Tobacco Manufacturing Award 2010 Funeral Industry Award 2010 Gardening and Landscaping Services Award 2010 Gas Industry Award 2010 General Retail Industry Award 2010 Graphic Arts.Award name Apprentice rates of pay N N Y N Y Y Y Y Y N N N N N Y N Y Y N N N N Y N Y N N N N Y N Y Y N Y N Y N N N N N Y Y N N N N National Training Wage Schedule N Y Y Y Y Y Y Y Y Y N N Y Y Y Y Y Y N Y Y Y Y N Y Y N Y N Y N Y Y Y Y N Y Y Y Y Y Y Y Y N Y Y N School Based Apprentice Schedule N N Y Y Y Y N Y N N N N N N Y N Y Y N N N Y Y N Y N N N Y Y N Y Y Y N N Y N N N N N Y Y N N N N Fire Fighting Industry Award 2010 Fitness Industry Award 2010 Food. Harbours and Enclosed Water Vessels Award 2010 Poultry Processing Award 2010 Premixed Concrete Award 2010 Professional Diving Industry (Industrial) Award 2010 NCVER Report 3 final Page 60 .

Services and Retail Award 2010 Waste Management Award 2010 Water Industry Award 2010 Wine Industry Award 2010 Wool Storage.Award name Apprentice rates of pay N N N N Y Y N Y Y N N Y N N N N N N N Y N Y N N Y Y Y N N Y N Y Y N 45 National Training Wage Schedule Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y N N Y Y Y Y Y Y Y Y Y 95 School Based Apprentice Schedule N N N Y Y Y N Y Y N N Y N N N N N N N Y N Y N Y Y Y Y N N Y N Y Y N 49 Professional Diving Industry (Recreational) Award 2010 Professional Employees Award 2010 Quarrying Award 2010 Racing Clubs Events Award 2010 Racing Industry Ground Maintenance Award 2010 Rail Industry Award 2010 Real Estate Industry Award 2010 Registered and Licensed Clubs Award 2010 Restaurant Industry Award 2010 Road Transport and Distribution Award 2010 Road Transport (Long Distance Operations) Award 2010 Salt Industry Award 2010 Seafood Processing Award 2010 Seagoing Industry Award 2010 Security Services Industry Award 2010 Silviculture Award 2010 Social. Footwear and Associated Industries Award 2010 Timber Industry Award 2010 Transport (Cash in Transit) Award 2010 Travelling Shows Award 2010 Vehicle Manufacturing. Home Care and Disability Services Industry Award 2010 Sporting Organisations Award 2010 State Government Agencies Administration Award 2010 Stevedoring Industry Award 2010 Storage Services and Wholesale Award 2010 Sugar Industry Award 2010 Supported Employment Services Award 2010 Surveying Award 2010 Telecommunications Services Award 2010 Textile. Community. Repair. Clothing. Sampling and Testing Award 2010 Total 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 NCVER Report 3 final Page 61 .

0% 75.Table A2 Pay ratios for 4-year apprentices Award no.60 $663.5% 45.0% 88.0% 75.0% 60.0% 82.60 $663.0% 42.60 $663.0% 80.0% 70.0% 75.0% 90.00 $663.0% 60.0% 95.0% 55.0% 60.0% 95.0% 60.60 $663.60 $663.0% 50.0% 60.0% 85.0% 55.60 $663.0% 47.0% 75.60 $664.0% 75.0% 50.86 $663. Events and Recreation Award 2010 Black Coal Mining Industry Award 2010 Building and Construction General On-site Award 2010 Cemetery Industry Award 2010 Coal Export Terminals Award 2010 Educational Services (Schools) General Staff Award 2010 Electrical Power Industry Award 2010 Electrical.0% 75.0% 47.0% 80.0% 75. Beverage and Tobacco Manufacturing Award 20101 Gardening and Landscaping Services Award 2010 Gas Industry Award 2010 General Retail Industry Award 2010 Graphic Arts.0% Stage 2 rate % Stage 3 rate % Stage 4 rate % Airline Operations – Ground Staff Award 2010 Airport Employees Award 2010 Alpine Resorts Award 2010 (all trades except Chef) Alpine Resorts Award 2010 (chef) Aluminium Industry Award 2010 Amusement.0% 95.0% 75.60 $663.0% 60.60 Award name Stage 1 rate % 42. Printing and Publishing Award 2010 Hair and Beauty Industry Award 2010 (Hairdressing) Hospitality Industry (General) Award 2010 Hydrocarbons Industry (Upstream) Award 2010 Joinery and Building Trades Award 2010 Local Government Industry Award 2010 Manufacturing and Associated Industries and Occupations Award 2010 Meat Industry Award 2010 1 2 MA000048 MA000049 MA000092 MA000092 MA000060 MA000080 MA000001 MA000020 MA000070 MA000045 MA000076 MA000088 MA000025 MA000073 MA000101 MA000061 MA000004 MA000026 MA000005 MA000005 MA000009 MA000062 MA000029 MA000112 MA000010 MA000059 55.0% 55.0% 60.0% 88.0% 55.0% 60.0% 55.5% 45.0% 90.0% 80. Electronic and Communications Contracting Award 2010 Food.0% 45.0% 90.0% 75.0% 50.0% 45.60 $663.0% 55.0% 90.0% 88. Relevant comparator rate $663.0% 45.66 $663.5% 45.0% 55.0% 45.0% 75.0% 88.0% 90.60 $663.0% 52.0% 55.0% 75.0% 88.0% 88.0% 45.60 $663.60 $658.0% 60.0% 75.60 $663.0% 95.0% 75.0% 42.0% 88.0% 47.0% Hair and Beauty Industry Award 2010 (Beauty Therapy) NCVER Report 3 final Page 62 .60 $665.0% 85.5% 77.60 $663.0% 55.0% 40.5% 45.0% 95.00 $664.0% 80.0% 55.0% 90.0% 88.0% 75.0% 87.60 $663.0% 95.0% 42.0% 75.0% 55.80 $663.0% 42.0% 65.60 $663.0% 55.63 $705.0% 45.0% 75.60 $663.0% 75.0% 47.0% 65.0% 90.0% 55.0% 85.5% 90.0% 95.0% 60.0% 55.0% 72.0% 60.60 $663.

0% 37.0% 85.0% 50.0% 55.0% 55.0% 88.0% 88.0% 45.0% 42.60 $663.0% 42. Services and Retail Award 2010 (Manufacturing) Vehicle Manufacturing.0% 55.0% 90.0% 88.0% Stage 2 rate % Stage 3 rate % Stage 4 rate % Mining Industry Award 2010 Miscellaneous Award 2010 Nursery Award 2010 Oil Refining and Manufacturing Award 2010 Plumbing and Fire Sprinklers Award 2010 (Plumbing) Plumbing and Fire Sprinklers Award 2010 (Sprinkler pipe-fitting) Port Authorities Award 2010 Racing Industry Ground Maintenance Award 2010 Rail Industry Award 2010 (Technical and Civil) Rail Industry Award 2010 (Operations) Registered and Licensed Clubs Award 2010 Restaurant Industry Award 2010 Salt Industry Award 2010 Stevedoring Industry Award 2010 Sugar Industry Award 2010 (Milling and Distilling) Sugar Industry Award 2010 (Bulk Handling) Telecommunications Services Award 2010 Textile.0% 55. NCVER Report 3 final Page 63 . Repair.0% 55. 2 Hairdressing apprentices are paid at 35% of trades rate for first 3 months of apprenticeship.60 $684.0% 55. Clothing.0% 88.0% 75.0% 55. 45% for remainder of first year.0% 60.0% 60.0% 75.0% 95.50 $663.0% 45.0% 75.60 $663.0% 75.0% 88.0% 60.0% 80.0% 95.0% 75.0% 50.0% 88.0% 65. Repair.0% 45.0% 75.0% 55.0% 80.0% 55.0% 75.5% 45.0% 75.0% 65.0% 80.0% 88.0% 65.60 $663.0% 63.60 $717. Footwear and Associated Industries Award 2010 Timber Industry Award 2010 (All except saw doctors) Timber Industry Award 2010 (Saw doctors) Vehicle Manufacturing.5% 50.0% 55.0% 60.0% 88.60 $663.0% 95.60 $663.0% 75.0% 55.00 $663.60 $663.0% 95.0% 55.0% 50.60 $663.0% 75.28 $704. Repair.0% 42.60 $663.0% 88.0% 42.60 $663. Services and Retail Award 2010 (Retail.0% 65.0% 88.60 $658.0% 45.0% 55.60 $663.0% 45.0% 75.0% 88.60 $663.60 $663.0% 42.0% 88.0% 55.0% 88.0% 88.0% 90.0% 75.60 Stage 1 rate % 45.0% 75.0% 90.60 $671.0% 75.0% 90.Award name Award no.0% 75.0% 42.0% 75.0% 42.0% 55.0% 95.60 $684. Services and Retail Award 2010 (Advanced Engineering) Water Industry Award 2010 Wine Industry Award 2010 Notes: 1 MA000011 MA000104 MA000033 MA000072 MA000036 MA000036 MA000051 MA000014 MA000015 MA000015 MA000058 MA000119 MA000107 MA000053 MA000087 MA000087 MA000041 MA000017 MA000071 MA000071 MA000089 MA000089 MA000113 MA000090 55.50 $663.80 $663.0% 75.60 $663. service and repair) MA000089 1 Where highest school level is Year 10 or below.0% 55.0% 47.0% 55.0% 75.0% 75.0% Vehicle Manufacturing. Relevant comparator rate $663.60 $663.0% 50.0% 70.0% 90.0% 75.

Table A3 Wage level 1 2 3 4 5 6 7 Wage levels for Apprentices—Queensland Minimum training requirements on entry Prior to the attainment of the minimum training requirements specified for wage level 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 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 On attainment of 75% of the total competencies specified in the training plan for the relevant AQF certificate III qualification or 12 months after commencing wage level 3 whichever is the earlier On attainment of 100% of the total competencies specified in the training plan for the relevant AQF certificate III qualification or 12 months after commencing wage level 4 whichever is the earlier 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 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 % of tradesperson’s rate specified in the industrial instrument 40 55 75 90 100 105 110 Source: Order – Apprentices’ and Trainees’ Wages and Conditions (Excluding certain Queensland Government entities) 2003. Schedule 1 NCVER Report 3 final Page 64 .

On attainment or completion of: (a) AQF 3 competencies. (b) 4/5 of the total competencies for the relevant AQF 6 qualification. or (b) 1/4 of the total competencies for the relevant AQF 5 qualification. whichever is the earlier. or (c) 3/4 of the nominal duration of the traineeship. On attainment or completion of: (a) AQF 4 competencies. whichever is the earlier. (b) 3/5 of the total competencies for the relevant AQF 6 qualification. or (c) 3/5 of the nominal duration of the traineeship. (b) 2/5 of the total competencies for the relevant AQF 6 qualification. NCVER Report 3 final Page 65 . or (b) 1/3 of the total competencies for the relevant AQF 4 qualification. Prior to the attainment of the minimum training requirements specified for wage level 2 On attainment or completion of: (a) AQF 1 & 2 competencies. whichever is the earlier. or (b) 1/2 of the total competencies for the relevant AQF 3 qualification. On attainment or completion of: (a) AQF 3 competencies. (b) 2/3 of the total competencies for the relevant AQF 4 qualification. (b) 1/2 of the total competencies for the relevant AQF 5 qualification. On attainment or completion of: (a) AQF 5 competencies. On attainment or completion of: (a) AQF 4 competencies. or (c) 1/2 of the nominal duration of the traineeship. 2 75 3 100 4 105 5 110 Source: Order . On attainment or completion of: (a) AQF 3 competencies. whichever is the earlier. Schedule 1. Prior to the attainment of the minimum training requirements specified for wage level 2 On attainment or completion of: (a) AQF 1 & 2 competencies. Prior to the attainment of the minimum training requirements specified for wage level 2 On attainment or completion of: (a) AQF 1 & 2 competencies. or (b) 1/5 of the total competencies for the relevant AQF 6 qualification. whichever is the earlier. whichever is the earlier. or (c) 4/5 of the nominal duration of the traineeship. whichever is the earlier. or (c) 2/3 of the nominal duration of the traineeship. whichever is the earlier.Apprentices’ and Trainees’ Wages and Conditions (Excluding certain Queensland Government entities) 2003. or (c) 1/3 of the nominal duration of the traineeship. or (c) 1/4 of the nominal duration of the traineeship. or (c) 1/5 of the nominal duration of the traineeship. whichever is the earlier. or (c) 1/2 of the nominal duration of the traineeship. or (c) 2/5 of the nominal duration of the traineeship.Table A4 Level Wage Levels for trainees—Queensland Trainee registered for AQF Level 3 qualification Trainee registered for AQF Level 4 qualification Trainee registered for AQF Level 5 qualification Trainee registered for AQF Level 6 qualification % Of Relevant Adult Rate* 55 Trainee registered for AQF Level 1 or 2 qualifications On entry 1 Prior to the attainment of the minimum training requirements specified for wage level 2 On attainment or completion of: (a) AQF 1 & 2 competencies. whichever is the earlier. (b) 3/4 of the total competencies for the relevant AQF 5 qualification.

Qld.State 2003 National Electrical. Vic. Tas.Table A5 Industry List of pre-reform awards and NAPSAs used for calculating apprentice rates of pay State Reference Award Award number Automotive & Engineering (ANZSCO 32) Vehicle manufacturing & repair Motor vehicle retailing & repair Vehicle manufacturing Motor vehicle retailing & repair All other industries Construction1 (ANZSCO 33) All industries All industries All industries Civil construction All other industries Civil construction All other industries Civil construction All other industries All industries All industries Electro-technology (ANZSCO 34) All industries All industries All industries All industries All industries All industries All industries All industries Food trades (ANZSCO 35) Food manufacturing2 NSW Pastrycooks &c (State) Award AN120410 NSW Vic. Tas NSW. Electronic and Communications Contracting Industry Award Electrical Engineering and Contracting Industries (NT) Award National Electrical. Services and Retail Award 2002 Metal.. SA. NT ACT Electrical. Engineering and Assoc Industries Award 1998 AN160328 AP818846CRN AP801818CRN AP824308CAV AP789529 NCVER Report 3 final Page 66 . Electronic and Comms Contracting Industry (State) Award National Electrical. Vic. SA. Qld SA WA Tas. ACT All states Vehicle Builders Award 1971 Automotive Services (NT) Award 2002 Vehicle Industry Award 2000 Vehicle Industry . Qld. Electronic and Communications Contracting Industry Award Electrical Contracting Industry Award 1978 National Electrical.. Electronic and Communications Contracting Industry Award Electrical Contracting Industry Award . NT ACT Building and Construction Industry (State) Award National Building and Construction Award 2000 Building Construction Industry Award State 2003 National Building and Construction Award 2000 Building and Construction Industry (SA) Award National Building and Construction Award 2000 Building trades (Construction) Award 1987 National Building and Construction Award 2000 Building and Construction Industry Award Building and Construction Industry (NT) Award 2002 Building and Construction Industry (ACT) Award 2002 AN120089 AP790741CRV AN140043 AP790741CRV AN150670 AP790741CRV AN160034 AP790741CRV AN170010 AP812941CRN AP817145CRA WA NT NSW. Electronic and Communications Contracting Industry Award AN120191 AP791396CRV AN140103 AP791396CRV AN160108 AP791396CRV AP819377CRN AP791396CRV NSW Vic.Repair. Tas. Qld SA SA WA WA Tas.

Tas... Motels. Qld SA WA WA WA Tas. Tas. gardening Landscaping. gardening Landscaping. NT Reference Award Hospitality Industry – Accom.. Catering. greenk. Vic. SA... Vic. NSW. Etc (ACT) Award 1998 Butchers Shops etc (Private Employees ACT) Award 2003 Federal Meat Industry (Retail and Wholesale) Award 2000 Award number AP738479CRV AN120468 AP792620CRV AP738479CRV AN140144 AN150025 AP767284 AN140024 AN150026 AN160242 AN160276 AN160350 AN170086 AN170058 AP819011CRN AP812953CRN AP769420CRA AP787016CRA AP831172 AP805114CRV NSW Vic. Wine Saloons. nurseries. gardening Landscaping. Qld SA WA WA NT ACT Tas. greenk.. greenk. nurseries. nurseries. greenk. Award Personal & Other Community Services Ind Sector Min Wage Order Nursery Award Horticulture Industry (Nursery and Landscape) Award Landscape Gardening Industry Award Horticultural (Nursery) Industry Award 1980 Gardening. greenk. gardening Landscaping. Clubs and Casino Employees (NT) Award Bakers (ACT) Award 1998 Liquor and allied industries Catering. greenk. Accommodation. Landscape Gardeners & C. gardening Landscaping. Resorts and Gaming Award 1998 Hospitality Industry – Rest.. Cafe. gardening Landscaping. gardening Nurseries Landscaping. Restaurant. Qld. Qld Qld SA Vic. Resorts and Gaming Award 1998 Restaurants &c Employees (State) Award Pastrycooks (Victoria) Award 1999 Hospitality Industry – Accom... gardening Nurseries Other technicians and trades workers (ANZSCO 39) State NSW NSW Vic. Hotels. NT NT ACT ACT ACT NSW. greenk. Cafes & Restaurants Industry Sector – Minimum Wage Order – Victoria 1997 Baking Industry (Southern & Central) Cake and Pastry Baking Trades Award Pastrycooks’ Award Restaurant.Industry Accommodation Food & beverage services Food manufacturing Accommodation Food & beverage services Food & beverage services Food & beverage services Food manufacturing Food manufacturing Food manufacturing Food & Beverage services Retail trade. Catering and Allied Estab Award SE Qld Cafes and Restaurants (South Australia) Award Accommodation.. nurseries. Tearoom and Catering Workers’ Award Meat Industry (State) Award 2003 Restaurant Keepers Award Meat Processing Industry Award Baking and Pastrycooking Industry (NT) Award 2002 Hotels. nurseries. Hotels. greenk.. Tas. Nurseries and Greenkeeping (NT) Award AWU Miscellaneous Workers (ACT) Award Horticulturists Award Plant Nurseries Award AN120308 AP793092 AN140192 AN150065 AN160190 AN160158 AP782197CRV AP765606CRA AN170045 AN170077 NCVER Report 3 final Page 67 .. accommodation Food manufacturing Food & beverage services Retail trade Retail trade Horticultural workers4(ANZSCO 36) Landscaping. wholesale trade3 Food & beverage services Retail trade Food manufacturing Food & beverage services.. nurseries.

clothing and footwear trades TCF Manufacturing Wood trades Wood etc manufacturing & cabinetmaking Wood etc manufacturing & cabinetmaking Wood etc manufacturing & cabinetmaking Wood etc manufacturing & cabinetmaking State Reference Award Award number NSW Vic. However.7). Tas. Qld SA WA Tas. the majority of food apprentices working in retail and wholesale trade are apprentice butchers. 2 According to the NCVER Apprentice and Trainee Collection.Industry Hairdressing Personal & other services Personal & other services Personal & other services Personal & other services Personal & other services Personal & other services Personal & other services Personal & Other Services Printing trades Printing. health and Beauty industry award Hairdressing and Beauty Industry (NT) Award Hairdressing and Beauty Industry (ACT) Award AN120242 AP806816CRV AN140140 AN150062 AN160153 AN170042 AP818691CRN AP783495CRA All states Graphic Arts Award AP782505 All states Clothing Trades Award 1999 AP772144CAV Qld WA ACT NSW. 4 The majority of animal trades are employed on traineeships. NCVER Report 3 final Page 68 .State 2003 Furniture Trades Industry Award Furnishing Industry National Award Furnishing Industry National Award AN140128 AN160137 AP825280CAV AP825280CAV Notes: 1 The National Building and Construction Award 2000 applied only to civil construction.. 3 According to the NCVER Apprentice and Trainee Collection. info media & telecommunications Textile. not apprenticeships. Furniture and Allied Trade Award . Vic. NT ACT Hairdressers’ State Award Hairdressing and Beauty Services – Victoria – Award 2001 Hairdressers’ Industry Award – State 2003 Hairdressers and beauty salons award Hairdressers Award 1989 Hairdressing. the terms of the award did not apply to apprentices in Qld or NSW (cl 20. the majority of food apprentices working in food manufacturing are apprentice bakers. SA.

75 $529. ACT) Metal.14 $264.79 $267.70 AN120089 AP790741CRV AN140043 AP790741CRV AN150670 AP790741CRV AN160034 AP790741CRV AN170010 AP812941CRN AP817145CRA AN120191 AP791396CRV AN140103 AP791396CRV AN160108 AP791396CRV AP819377CRN AP791396CRV AN120410 AP738479CRV $301.95 $483.12 $605.13 $335.70 $23..13 $303.) Building and Construction Industry (NT) Award 2002 Building and Construction Industry (ACT) Award 2002 Electrical.70 $637.70 $605.80 $22.70 $23.93 $599.09 $561.50 $12.09 $566.67 $533.70 $637.30 $17.56 $625. Electronic and Communications Contracting Industry Award (ACT) Pastrycooks &c (State) Award (NSW) Hospitality Industry – Accom.47 $294. Services and Retail Award 2002 (NSW.20 $478.80 $23.70 $7.95 $478.20 $483.29 $347.70 $7.25 $302.70 $680.40 $596.45 $533.) Building Construction Industry Award State 2003 (Qld) National Building and Construction Award 2000 (SA) Building and Construction Industry (SA) Award (SA) National Building and Construction Award 2000 (WA) Building trades (Construction) Award 1987 (WA) National Building and Construction Award 2000 (Tas.68 $13.70 $7.76 $635.30 $21..65 $12.70 $23.34 $560.30 $26.80 $12.79 $273.50 $685.67 $399.06 $414.66 $274.72 $299.97 $404.16 $340.70 $25.52 $457.09 $566.60 $637.70 $637.13 $362.68 $356.70 $17 $19.95 $290.30 $21.60 $689.68 NCVER Report 3 final Page 69 .81 $351.67 $399.05 $442.89 $340.46 $561.75 $529.70 $637.70 $637.29 $334.33 $387. Resorts and Gaming Award AN160328 AP818846CRN AP801818CRN AP824308CAV AP789529 $267. Electronic and Communications Contracting Industry Award (Tas.70 $637.70 $7.90 $21.05 $533. Vic.70 $21.28b $311.96 $367.60 varies varies $637.59a $270.41 $392.97 $404.51 $394.90 $637.63 $476.79b $275.12 $310.02 $341.20 $483.60 $654.54 $312.60 $637.08 $561.) Electrical Contracting Industry Award – State 2003 (Qld) National Electrical.93 $465.90 $21.60 $7.72 $637.05 $533.43 $382.) Building and Construction Industry Award (Tas.95 $464.90 $21.55 $267.27 $535.37 $404.86 $630.) Electrical Engineering and Contracting Industries (NT) Award National Electrical.30 $25.95 $21.70 $404.Repair.60 $637.43 $320.85 $684.30 $25.04 $529.70 $691.40 $25.37 $337.90 $636.15 $21.64 $560.01 $639. Electronic and Communications Contracting Industry Award (SA) Electrical Contracting Industry Award 1978 (WA) National Electrical.97 $372.70 $12.30 $25.51 $533.10 $665.70 $23.Table A6 Award rates of pay by award and stage Reference Rate (weekly) Allowances added to the base rate Reference Award Award number Starting rate Year 1 Year 2 Year 3 Year 4 Tool allowance Allowances fully paid Vehicle Builders Award 1971(WA) Automotive Services (NT) Award 2002 Vehicle Industry Award 2000 (All states except WA) Vehicle Industry .26 $647.50 $23.70 $7.43 $356.60 $668.68 $13.75 $529.67 $399.70 $7.41 $510.30 $49.62 $350.75 $528.84 $561.13 $350.43 $350.05 $510. Engineering and Assoc Industries Award 1998 (All states) – Year 11 – Year 12 Building and Construction Industry (State) Award (NSW) National Building and Construction Award 2000 (Vic.51 $341.70 $637.95 $435. Tas.60 $637.80 $23.82 $312.44 $478.90 $21..70 $13.92 $344.70 $7.83 $595. Hotels.23 $472.68 $23.05 $630.61 $280.83 $566. SA.56 $625.86 $614.68 $356. Electronic and Communications Contracting Industry Award (Vic.55 $267.89 $517. Qld.50 $21.67 $399.00 $329.79 $273.35 $630.65 $612.30 $637.60 $13.86 $617.31 $541.20 $428.77 $315.68 $350.30 $17 $22.70 $7.08 $492. Electronic and Comms Contracting Industry (State) Award (NSW) National Electrical.56 $625.80 $23.95 $483.70 $637.12 $514.74 $554.

44 $403.33 $318.60 $637.71 $573.95 $478.20 $478.08 $468.25 $449.10 $637.55 $554. Cafes & Restaurants Industry Sector .65 $255.76 $240.80 $350.34 $318.79 $255.60 $618.51 $540.99 $573.60 $621.32 $515.96 $465.56 $382.12 $605.08 $510.60 $637. Tearoom and Catering Workers’ Award (WA) Meat Industry (State) Award 2003 (WA) Restaurant Keepers Award (Tas. Cafe.32 $433.09 $510.) Plant Nurseries Award (Tas.20 $9. Hotels.84 $541.80 $414.84 $614.37 $318.00 $637.80 $419.20 $510.) Baking and Pastrycooking Industry (NT) Award 2002 Hotels.78 $446.09a $255.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 1998 (NSW) Restaurants &c Employees (State) Award (NSW) Pastrycooks (Victoria) Award 1999 Hospitality Industry – Accom.44 $414.68 $349.39 $382..05 $478.89 $350.80 $289.20 $494.68 $350.90 $478.60 $637.19 $573.60 $723.44 $423.00 $487.68 $318.44 $341.04b $247.84 $520.10 $490.20 $463.84 $556.60 $637. etc (ACT) Award 1998 Butchers Shops etc (Private Employees ACT) Award 2003 Federal Meat Industry (Retail and Wholesale) Award 2000 Landscape Gardeners & C.33 $302.04 $450.99 $267.07 $506.84 $646.56 $255.45 $446.89 $525. Catering and Allied Estab Award SE Qld Cafes and Restaurants (South Australia) Award Accommodation.13 $541.61 $331.72 $573.80b $297.96 $610.60 $637.96 $546.68 $255.04 $323.72 $614.68 $382.92 $278.60 $637.30 $541.60 $637. Nurseries and Greenkeeping (NT) Award AWU Miscellaneous Workers (ACT) Award Horticulturists Award (Tas.Minimum Wage Order .20 $353.85 $8.08 $478.20 $478.95 $541.38 $637.96 $517. Accommodation.44 $414.38 $601.10 $24.60 $9.14 $509.80 $341.61 $382.) Meat Processing Industry Award (Tas.32 $466. Catering. Award (NSW) Personal & Other Community Services Ind Sector Min Wage Order Nursery Award (Qld) Horticulture Industry (Nursery and Landscape) Award (SA) Landscape Gardening Industry Award (WA) Horticultural (Nursery) Industry Award 1980 (WA) Gardening.60 $637.97 $255.34 $570.92 $286.51 $260.40 $637.16 $414.30 $350.20 $443.80 $327.45 $478.82 $260. Motels.60 $620.20 $637.60 $637.68 $414.60 $591.60 $587.87 $286.44 $350.60 $637.04 $350.77 $350.) Hairdressers’ State Award (NSW) AN120468 AP792620CRV AP738479CRV AN140144 AN150025 AP767284 AN140024 AN150026 AN160242 AN160276 AN160350 AN170086 AN170058 AP819011CRN AP812953CRN AP769420CRA AP787016CRA AP831172 AP805114CRV AN120308 AP793092 AN140192 AN150065 AN160190 AN160158 AP782197CRV AP765606CRA AN170045 AN170077 AN120242 $255.54 $605.84 $557.) Hospitality Industry – Rest.72 $605.04a $292.44 $318.83 $478.70 $546.60 $12.83 $561. Clubs and Casino Employees (NT) Award Bakers (ACT) Award 1998 Liquor and allied industries Catering.56 $325. WIne Saloons.Victoria 1997 Baking Industry (Southern & Central Qld) Award Cake and Pastry Baking Trades Award (SA) Pastrycooks’ Award (WA) Restaurant.60 $637.00 NCVER Report 3 final Page 70 .72 $573.44 $361.44b $318.06 $414.72 $558. Restaurant.43 $330.51 $573.56 $341.60 $637.78 $465.60 $637.40 $637.09 $605.84 $573.70 $620.04b $255.74 $605.94 $382..56 $359.56 $371.22 $276.90 $605. Resorts and Gaming Award 1998 (Vic.04 $420.50 $439.80 $248.60 $637.60 $637.20 $446.04 $318.

98 $377.12 449.32 $494. Vic.60 $695.80 551.77 608.04 $302.40 Year 3 570.34 543.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 Hairdressing and Beauty Services – Victoria – Award 2001 Hairdressers’ Industry Award – State 2003 (Qld) Hairdressers and beauty salons award (SA) Hairdressers Award 1989 (WA) Hairdressing. health and Beauty industry award (Tas.68 $362.16a $286. Award rates of pay are as at March 2009.25 $13.00 595.70 554. SA.70 $350.40 488.32 472.92 $255. Year 1 495.75 519.04 554.60 $637.78 $478.59 620.04 $281.04 $280.60 $637.) Hairdressing and Beauty Industry (NT) Award Hairdressing and Beauty Industry (ACT) Award Graphic Arts Award (All states) Clothing Trades Award 1999 (All states) Furniture and Allied Trade Award – State 2003 (Qld) Furniture Trades Industry Award (WA) Furnishing Industry National Award (ACT) Furnishing Industry National Award (NSW.68 347.56 $366.09 $293.60 $637.90 $510.68 $347.69 345.20 $490.29 641.50 570.20 $446.16 $267.09 637.4 $243.60 $637.50 $506.00 $494.53 $577.68 $350.00 $12.80 $350.84 $365.96 $541. Award rates of pay are as at March 2009.16 522.79 $255.39b $278.84 $573.32 $446.86 $350.08 $589.25 576. Table A7 Adult apprentice rates of pay Award number AP801818CRN AP824308CAV AP789529 AN160108 AN160242 AN150062 AN160153 AP782505 AP825280CAV AP825280CAV Reference Award Vehicle Industry Award 2000 Vehicle Industry –Repair.68 $318. Source: Based on calculations from the relevant awards.60 $637.83 548.20 $433.34 591.80 Year 2 551.15 $573.95 $478.69 350.83 557.06 583.60 $637.57 486.40 546. Engineering and Assoc Industries Award 1998 Electrical Contracting Industry Award 1978 Pastrycooks’ Award Hairdressers and beauty salons award Hairdressers Award 1989 Graphic Arts Award Furnishing Industry National Award Furnishing Industry National Award (ACT) Source: Based on calculations from the relevant awards.96 $557.92 Year 4 595.76 472.57 $486.26 $446.12 449.84 $573.68 $382.30 $25.40 $637.71 588.68 $637.32 $462.44 NCVER Report 3 final Page 71 .34 $591.68 $350.13 278.05 433.12 466.78 586.60 $16.73 472.78 560.65 545.04 $223.39 $589.60 $637.) AP806816CRV AN140140 AN150062 AN160153 AN170042 AP818691CRN AP783495CRA AP782505 AP772144CAV AN140128 AN160137 AP825280CAV AP825280CAV $223.60 $637.09 $573.17 $350.60 653.60 $637.99 $490. Services and Retail Award 2002 Metal.68 $271.60 $637.56 $382..84 $548.04 $274.16a $318.80b $255.19 Notes: a = first 3 months.84 $541. Tas. b = first 6 months.

II Personal and other services All other industries I.III I. postal & warehousing Rental. pest control & other support services Motor Vehicle. Clothing Footwear (Dry Cleaning) Asset Maintenance TP (Cleaning) NCVER Report 3 final Page 72 . engineering.III I.II I. education & training. Fitness Industry Retail Service Transport and Logistics Property Services Auto Industry Retail.II I.III Agriculture I.III II I. health care & social assistance Health care Health care Health care Private sector (correctional services mainly in public sector) Personal and other services Other transport.III I.II I.II.III I.II. industry and sector of employment Industry (or sector) Qual level I.Table A8 Wage level definitions for traineeships based on occupation.II I. arts & recreation services Retail Transport.II.II.II. building cleaning. Racing Rural production Rural Production. parts & fuel retailing All other retail I. hiring & real estate services.II.III I. forestry and garden workers 14 Hospitality. ICT & science technicians 39 Other trades and technicians (trainees only) 41 Health & welfare support workers 42 Carers and aides 44 Protective service workers 45 Sports & personal service workers 45 Sports & personal service workers 59 Other clerical & administrative workers 59 Other clerical & administrative workers 61 Sales reps & agents 62 Sales assistants 62 Sales assistants 63 Sales support workers 72 Mobile plant operators 73 Road and rail drivers 74 Storepersons 81 Cleaners & laundry workers 81 Cleaners & laundry Wage level C C C C C B B B B B B B B B B B B B B B B B B B Primary training packages Rural Production Conservation and Land Management TP Rural production.II II I. retail and service managers 31 Engineering.II. Service and Repair Retail Services Retail Services Civil Construction and Furnishing Industry Transport and Logistics Transport and Logistics Textile.II.II.III Occupation (2-digit level) 12 Farmers and farm managers 23 Design.III Food retailing Food manufacturing.III Agriculture & mining I. science & transport profs 36 Animal and horticulture (trainees only) 61 Sales reps & agents 84 Farm.II.III I. Amenity Horticulture Retail Services Australian Meat Industry TP and Health TP Health TP Health TP Health TP Property Services Beauty Outdoor Recreation.II.II.II I.II.III I.III I.II.II I.III I.

III I.III Wage level B B B B Primary training packages Food manufacturing Other agriculture. industry and sector combinations on the basis of data from the NCVER Apprentice and Trainee Collection. forestry and fishing. Furnishing Industry Forestry and Gardening/Landscaping TP Automotive Industry Retail. food manufacturing. Caravan Industry. Gas Industry 89 Other labourers I. mining. forestry & fisheries.II. construction. postal & warehousing.II. postal & warehousing Meat Industry Forest & Forest Products. Service and Repair. wood and paper manufacturing. pest control & other support services. professional scientific & technical services Transport.II I. financial & insurance services. building cleaning. Electro-technology Industry. textile manufacturing & printing.II.III I. NCVER Report 3 final Page 73 . information media & telecommunications. construction services All industries except agriculture. transport. forestry and fishing.III B A Transport and Logistics TP All other occupations except those counted as apprenticeships Note: Training packages were aligned with occupation.II.Occupation (2-digit level) workers 83 Factory process workers 83 Factory process workers 84 Farm. furniture and other manufacturing Other agriculture. forestry and garden workers 89 Other labourers Industry (or sector) Qual level II I.

06 Yr 12 $8.85 Certificate IV traineeship Wage Level A Wage Level B Wage Level C First year $519.39 $16.60 $391.85 $10.22 $471.48 Yr 11 $8.38 $375.60 $391.88 Yr 11 $8.04 $311.33 $11.60 $391.76 $17.85 $13.33 $11.89 Yr 12 $10.84 $501.10 $269.64 $12.88 $360.50 $12.38 $500.39 $16.40 $437.70 $482.85 $13.89 Yr 11 $8.39 $16.85 $10.35 $14.22 $454.84 Yr 12 $323.06 $8.94 $15.04 $323. NCVER Report 3 final Page 74 .70 $482.88 $14.76 Highest yr of schooling completed Yr 10 $8.12 $15.10 Yr 12 $269.44 $437.48 Subs yrs $539.60 $349.40 $437.Table A9 Trainee wage rates used in the analysis Weekly rates Hourly rates Wage level A Highest yr of schooling completed Yr 10 School leaver Plus 1 yr out of school Plus 2 yrs out of school Plus 3 yrs out of school Plus 4 yrs out of school Plus 5 yrs out of school $245.88 $360.25 $11.89 Wage Level C Highest yr of schooling completed Yr 10 School leaver Plus 1 yr out of school Plus 2 yrs out of school Plus 3 yrs out of school Plus 4 yrs out of school Plus 5 yrs out of school $245.48 Wage level B Highest yr of schooling completed Yr 10 School leaver Plus 1 yr out of school Plus 2 yrs out of school Plus 3 yrs out of school Plus 4 yrs out of school Plus 5 yrs out of school $245.94 $15.25 $11.40 Yr 11 or lower School-based traineeships $245.25 $11.24 $423.50 $12.44 $437.06 $8.60 $520.95 Subs yrs $17.40 $437.04 $311.04 $323.38 $500.04 Yr 11 or lower $8.38 $375.33 $11.64 $12.60 $349.98 Yr 12 $313.50 $12.64 $12.84 Highest Yr of Schooling completed Yr 10 $8.70 $482.76 Yr 12 $311.85 $13.49 $14.98 Yr 11 $269.85 $10.94 $15.52 Notes: Based on the National Training Wage Award rates as at March 2009.60 $349.04 $313.10 $269.10 $269.11 $16.88 $360.06 $8.98 Highest yr of schooling completed Yr 10 $8.84 Yr 11 $269.35 $14.38 $500.04 $313.24 $423.76 Yr 11 $269.35 $14.24 $423.48 Yr 12 $10.85 $10.85 $10.44 $437.38 $375.58 First year $17.40 Yr 12 $10.85 $10.88 $14.

Legislative and quality assurance arrangements Ron Mazzachi NCVER Report 3 final Page 75 .

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. As with all discussions of quality. and the relevant quality assurance arrangements. 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 training provider. NCVER Report 3 final Page 76 . which provides the quality assurance mechanism for the formal training element of a contract of 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 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. While these arrangements appear complicated and messy. and the third is the Australian Quality Training Framework. The first is the range of bodies which play a part. and perhaps the state regulators. The second part of the paper looks at quality assurance arrangements. The extent to which training plans will be successful in underpinning the quality will depend on the employer. The main point to emerge is that the AQTF treats apprenticeships and traineeships no differently from other accredited training. It begins with a discussion of the legislative framework. our assessment is that they do not pose substantive issues for apprenticeships and traineeships. There are three dimensions of relevance. which is rather complicated because of Australia’s federal structure with the responsibility for training sitting with the states. the second is the pivotal role of the training contract and training plan.Introduction The purpose of this paper is to look at the legislative frameworks underpinning apprenticeships and traineeships.

Primary legislation outlines the policy and principles of the 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. 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. and possibly at Australian Government level also. The training plan proposal describes how the RTO intends to train and assess the apprentice. child protection and compulsory schooling. This does mean that new policy developments can be protracted. the employer. without needing to change legislation. Equally important is the state legislation and regulations enacted to implement the AQTF in each jurisdiction. which specify the rights and responsibilities of the apprentice or trainee. 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). their guardians and the RTO. 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. building and construction. Training and Employment Act 2000 SA: Training and Skills Development Act 2008 Tas. equal opportunity. but it also means that the agreement of interested parties has been obtained before implementation. 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. Other legislation may also apply. and if relevant. and the registered training organisation (RTO) nominated to provide the formal (off-the-job) component of the training program.: Vocational Education and Training Act 1994 NCVER Report 3 final Page 77 . The national and jurisdictional legislation is designed to support the training contract between all of the parties involved in the apprenticeship. made under state legislative provisions and associated regulations. although some states are able to implement such changes through amendments to regulations. 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). apprentice.Legislation Since the constitutional authority for education and training rests formally with the states. such as that relating to employment conditions. We have already noted that legislation can be primary (Acts of parliament) or subordinate (rules and regulations). Changes to the AQTF agreed by ministers may require changes in state legislation. each jurisdiction has enacted legislation that establishes apprenticeships and traineeships (see below for the current parliamentary acts). that is. occupational health and safety. whereas the subordinate legislation deals with the administrative details. Closely linked to the legislation governing apprenticeships and traineeships is that which governs the broader vocational education and training (VET) system. Across jurisdictions legislation dealing with apprenticeships is usually encapsulated in more wide-ranging general education or vocational education Acts. and road traffic. The training agreement is a legal contract. the employer.

suspension. to promote equality of opportunity to undertake vocational education and training. 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. Whatever the approach. cancellation and completion of apprenticeships and traineeships administration requirements that include a register of apprentices and trainees. how the application will be dealt with by the jurisdiction. including withdrawals or other amendments to the apprenticeship or traineeship. policy and rules. whereas jurisdictions with more flexible legislation rely instead on more regulation. the areas covered by all primary or subordinate apprenticeship legislation include: a process to establish apprenticeships and traineeships. Until recently this separation did not seem to confer any particular advantage or disadvantage. to allow for the operation of an open and competitive training market in this State. This covers the application process. as amended in 2008. to provide a means by which the State is able to meet its obligations under national arrangements relating to vocational education and training. notes that the main objects of the Act are: (a) (b) 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. By way of example we see in the case of Western Australia that the Vocational Education and Training Act 1996. such as apprentices. 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. to be trained for some occupations under training contracts with employers. Separate legislation can allow more specification in the handling of apprenticeship issues. 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. in that it has specific apprenticeship legislation that essentially only addresses (g) of the WA Vocational Education and Training Act 1996. 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. to provide for the registration of some providers of vocational education and training and the accreditation of some vocational education and training courses. However. to provide for research and development for the purposes of vocational education and training. of group training organisations.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. variation. (c) (d) (e) (f) (g) New South Wales is an exception. to provide for people. appointments of commissioners or similar NCVER Report 3 final Page 78 .

although most state legislation instead embodies competency-based progression. they receive the same qualifications and certification. Trainee apprentices do not undergo a probationary period. Trainee apprentices complete the same on-the-job and off-the-job training as other apprentices and. 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. Several more recent and important milestones were the incorporation of trainees into apprenticeship legislation. Whereas NSW has a separate tribunal constituted under the Act to review the decisions. There is also additional variation in part-time apprenticeships for some occupations. Amongst jurisdictions there is currently some variation in several areas. For example. In another example noted in the national Apprenticeship/Trainee Training Contract template. particularly in the current award provisions that govern the vast majority of apprenticeships. However. at the conclusion of the trainee apprenticeship. Perhaps one of the greatest differences amongst jurisdictional practices can be seen in the process whereby a qualification can become an apprenticeship/traineeship. in South Australia averaging of hours is not permitted. the conduct of hearings. jurisdictions like SA and WA refer these matters to their respective Industrial Relations Commission. Other significant changes include the introduction of apprentice training undertaken at school. 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. Other jurisdictions such as Western Australia and New South Wales have relatively simple processes when seeking for a qualification to gain apprenticeship status. 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. NSW legislation provides for ‘trainee apprenticeships’.proceedings about disputes and disciplinary matters. Here the award continues to specify base wage progression during the apprenticeship according to the duration of service. whereas it is possible in some other jurisdictions. one of which covers part-time apprenticeship provisions. Instead changes can be brought about through the use of policy. The commissions may also have a panel advising them and which may sit with the commission to act as assessors in such proceedings. 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. Current jurisdictional legislation has continued to evolve to reflect changes in industry needs and the policy affecting apprenticeships. being mainly established in the building and construction industry. NCVER Report 3 final Page 79 . Significant changes do not always result in changes to the legislation as this can be time-consuming and expensive. including complaints and their resolution. the opening-up of the training market and the subsequent introduction of the Australian Quality Training Framework (AQTF) in 2000. Also noteworthy is the approach to appeals against decisions of the regulators. These are sometimes known as declared vocations or vocational training orders. We have already noted some inconsistencies between Commonwealth and state legislation in the previous paper. This can allow systems to achieve a more nimble response. 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). rules and regulation.

Recognising a qualification as an apprenticeship/traineeship does not mean that the jurisdiction will fund the training through an existing RTO. 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. the jurisdiction will abide by and implement the legislation. Nevertheless if an employer wants to take on an apprentice and the Commonwealth will fund the apprentice. There are hurdles to be overcome. NCVER Report 3 final Page 80 .

The players Any discussion of quality assurance arrangements needs to start with some knowledge of the relevant players. 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. and implementing legislative ‘earning-or-learning’ requirements) institutes of technical and further education (TAFE). which collectively receive $40 million a year from the Australian Government) and a range of consultative committees or organisations representing employers and employer associations. and community organisations.183 billion in 2008–09 (Department of Education. including that which applies to apprenticeships and traineeships within each jurisdiction NCVER Report 3 final Page 81 .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. otherwise this is done by the state regulatory bodies in most states. costing $0. such as schools (in relation to schoolbased apprenticeships and traineeships. which are established under state legislation and are funded and managed by state training authorities. fund and manage institutions at various levels to implement Australia’s highly structured and regulated apprenticeship and traineeship arrangements. disbursing and managing public funding for VET. These are agencies that are contracted to provide a range of administrative services. 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. particularly in relation to the Australian Apprenticeship Incentives Program. and in the design of apprenticeship and traineeship programs state. State training authorities also play an important role in negotiating arrangements with other sectors. We then consider the role of contracts of training and training plans before discussing how the AQTF relates to apprenticeships and traineeships. including industry skills councils (11 in total. employee representative bodies. Employment and Workplace Relations 2009. and for the disbursement of Australian Government funding for VET the eight state training authorities. Some of these RTOs are regulated by the National Audit and Registration Agency (NARA). 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). 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.Quality assurance We first list the myriad of organisations that have responsibility for various aspects of the apprenticeship and traineeship system. industry bodies. Governments establish. which are responsible for implementing national policy (including the AQTF and other regulatory arrangements). p. funded and managed by the Australian Government. and for policy and strategic directions within each jurisdiction. States also establish institutional arrangements to address complaints and disputes involving apprentices and trainees or their employers the network of Australian Apprenticeship Centres (AACs). 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. the VET in Schools program.341).

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. 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. NSW is seeking at least six-monthly reviews by the RTO. 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. All parties agree to various administrative arrangements noted in the legislation including relevant dates. Under user choice arrangements. The training contract Australian Apprenticeships Centres are contracted by DEEWR to develop the Apprenticeship or Traineeship Training Contract. and pay the appropriate wages to attend any training and assessment with the nominated RTO. The apprentice/trainee agrees to do their job. and follow lawful instructions while achieving the qualification and undertaking training and assessment. who will decide the nature and sequence of delivery of the units of competence of the qualification. The training plan The training plan describes who will provide training and undertake the assessment of the apprentice and the timeframe. 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. 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 NCVER Report 3 final Page 82 . we do know (see report 2) that completion rates differ between states and that local arrangements matter. which details the rights and responsibilities of the signatories. 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. There is increasing emphasis on the need for the training plan to be a readily available and a current working document. However. One way to achieve this is to require regular reviews of training plans. provide relevant work and train the apprentice/trainee as agreed in the training plan. It is this RTO. This is also the opportunity to remind the parties of the National Code of Good Practice for Australian Apprentices. terms and changes to these. provide facilities and people to help train and supervise the apprentice/trainee at work. The key documents are the nationally agreed training contract and the training plan proposal for the apprenticeship/traineeship. The parties also agree to contract audits and to engage with any dispute resolution process. This happens during a personal visit to employers together with the apprentice/trainee and their guardians where relevant. Note that there may be some minor customisation of the training contract and the training plan proposal to suit local needs. Under the contract the employer agrees to employ. the employer and apprentice/trainee have the right to decide which RTO will train the apprentice. in consultation with the employer and apprentice/trainee.

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. In the context of apprenticeships and traineeships. However. in particular in undertaking the training and assessment of apprentices. 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. This document references the AQTF Essential Standards for Registration 2007. It is not because of an oversight or inability by jurisdictions to agree to the role of the AQTF. These requirements are stipulated in the AQTF. whether on or off–the–job. The development of the AQTF in 2000 provided the first opportunity for a nationally consistent approach to the registration of training providers in Australia. 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. Employment and Workplace Relations 2010). 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. The AQTF Apart from engaging with employers and apprenticeship centres.providing training and assessment in accordance with the AQTF. NCVER Report 3 final Page 83 . State or Territory legislation and regulatory requirements that are relevant to its operations and its scope of registration’. the training package. perhaps the most noticeable feature of the AQTF Essential Standards for Registration is the total omission of any specific reference to apprentices. there are further obligations for RTOs. The situation has not changed since the AQTF was first introduced or evolved over the last decade. 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. 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. Furthermore. Training and Further Education 1997). it is in the AQTF that the all important quality of training and assessment is managed by each jurisdiction. the variety of approaches and the generally reduced emphasis on regulation adopted by jurisdictions was not suited to the more demanding needs for consistency. Under this condition ‘The RTO must comply with relevant Commonwealth. the AQF Handbook and what is variously referred to as the approved providers’ contract with the state training authority. several key areas are noted as relevant to RTOs who train apprentices and these indicative good practices are noted in table 1. under a common national code. or for that matter. To maintain currency we have re-interpreted these themes under the current AQTF 2010 Essential Standards for continuing registration requirements. QETO was based on the National Key Principles for Quality in VET developed by the Australian National Training Authority (ANTA). which are contextualised for vocational training and assessment. While the National Quality Council discourages jurisdictions to produce separate interpretations of rules or AQTF requirements. The hallmark of this framework is that it is strongly based on the ISO 9000 standards for quality management systems. 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). 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. which came into force in July 2010 (Department of Education. However. However. any other qualification. In the WA guide.

The information is regularly reviewed and the RTO consults with the clients about the usefulness of the information. Meeting the needs of the apprentice or trainee is the focus of the negotiation process. Learning is valued and recognised by the apprentice or trainee and NCVER Report 3 final Page 84 . 2. Area of practice 1 Marketing Examples of relevant good practice for RTOs The media and message is suitable for the target group. facilities.1 The RTO establishes the needs of clients. 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. 2 Negotiating the training plan Standard 1: The RTO provides quality training and assessment across all of its operations 1. 3 Enrolment and induction Standard 2: The RTO adheres to principles of access and equity and maximises outcomes for its clients.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. assessment and support services to be provided. The inclusion of an ApprentiCentre Apprenticeship Officer in the induction process whenever possible. Standard 3: Management systems are responsive to the needs of clients. delivery and monitoring of training and assessment.3 Staff.4 Employers and other parties who contribute to each learner’s training and assessment are engaged in the development.4 Employers and other parties who contribute to each learner’s training and assessment are engaged in the development. The information provided by the RTO is clear and accurate. facilities. The apprentice. 4 Providing and supporting learning opportunities Standard 2: The RTO adheres to principles of access and equity and maximises outcomes for its clients. delivery and monitoring of training and assessment.4 Employers and other parties who contribute to each learner’s training and assessment are engaged in the development. accurate and consistent with its scope of registration. The learning is structured and builds logically (simple to complex) to develop knowledge and skills. 2. and about their rights and obligations.Table 1 Indicative good practice for RTOs delivering training to apprentices noted in the WA good practice guide* Relevant AQTF 2010 Essential Standards for continuing registration Condition 8 – Accuracy and Integrity of Marketing The RTO must ensure its marketing and advertising of AQF qualifications to prospective clients is ethical. 3. assessment and support services that meet their individual needs. delivery and monitoring of training and assessment.3 Before clients enrol or enter into an agreement. 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 RTO monitors the effectiveness of the marketing and makes improvements when necessary. The information provides an accurate picture of the training. 2. Any induction process prepares the employer and apprentice or trainee to maximise the learning experience. 2. 2. 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 1: The RTO provides quality training and assessment across all of its operations. 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. assessment and support services the RTO is offering. the RTO informs them about the training. 1. staff and stakeholders. The information and media is suitable for the client group.3 Staff. The information provided is clear and concise. trainee and employer are supported throughout the learning process. and the environment in which the RTO operates.5 Learners receive training. The NRT logo must be employed only in accordance with its conditions of use. Standard 2: The RTO adheres to principles of access and equity and maximises outcomes for its clients. and (b) have the relevant vocational competencies at least to the level being delivered or assessed. 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. The employer and apprentice or trainee are actively engaged in developing the training plan. and delivers services to meet these needs. 2. and (c) can demonstrate current industry skills directly relevant to the training/assessment being undertaken.

trainee and employer are supported throughout the assessment process. The focus of improvement actions is meeting the needs of the clients. The assessment activities and resources are tailored to the needs of the apprentice or trainee. The RTO must retain client records of attainment of units of competency and qualifications for a period of thirty years. RTO and industry. The RTOs systems promote the continual and systematic review of its products. NCVER Report 3 final Page 85 . trainee. All parties communicate effectively and regularly about the apprentice or trainee’s progress using a Training Journal. The issue of the qualification is timely.1 The RTO collects. and the environment in which the RTO operates. RTO and industry 5 Providing and supporting assessment Standard 1: The RTO provides quality training and assessment across all of its operations. 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. 8 Maintaining records Standard 3: Management systems are responsive to the needs of clients. The RTO records are managed systematically. Continuous improvement activities have led to measurable improvements to the business. 3. The RTOs records for the apprentice accurately show the award of a qualification and/or a Statement of Attainment. assessment and support services Standard 1: The RTO provides quality training and assessment across all of its operations. and (d) continue to develop their Vocational Education and Training (VET) knowledge and skills as well as their industry currency and trainer/assessor competence.Area of practice Relevant AQTF 2010 Essential Standards for continuing registration the requirements of the Training Package or accredited course and the RTO’s own training and assessment strategies.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. The learning is reviewed and improved based upon feedback from a range of stakeholders including the apprentice. employer. employer. The assessment is reviewed and improved based upon feedback from a range of stakeholders including the apprentice. All stakeholders in the apprenticeship or traineeship pathway have the opportunity to provide feedback. Examples of relevant good practice for RTOs employer.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. 1. and (b) have the relevant vocational competencies at least to the level being delivered or assessed. 3. The RTO keeps all required records and clearly understands the purpose for any additional records they choose to keep. analyses and acts on relevant data for continuous improvement of training and assessment. 1. where relevant. staff and stakeholders. Records are able to be accessed in a timely manner. trainee. All parties communicate effectively and regularly about the apprentice or trainee’s progress using a Training Journal.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. regulatory requirements (d) is systematically validated. and (c) can demonstrate current industry skills directly relevant to the training/assessment being undertaken. The RTO monitors the apprentice or trainee’s progress against the Training Plan and issues a qualification or Statement of Attainment when required. 7 Improving RTO learning. 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. services and the way it operates. The qualification or Statement of Attainment meets the requirements of Condition 6. The apprentice. 1.2 The RTO uses a systematic and continuous improvement approach to the management of operations.

This applies to all of the operations within the RTO’s scope of registration. assessment and support services for its clients. 2008.Area of practice Relevant AQTF 2010 Essential Standards for continuing registration 3. 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. * Western Australian Dept of Education and Training. DET. Perth. 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. 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. Apprenticeships and traineeships – good practice guide for registered training organisations.4 The RTO manages records to ensure their accuracy and integrity. as listed on the National Training Information Service. NCVER Report 3 final Page 86 . it is likely to be compliant with the AQTF Essential Standards for Registration. Examples of relevant good practice for RTOs The record management system is consistently monitored to ensure it is effective and improvements are made when required. When an RTO focuses on providing quality learning. as these standards are focused on providing quality outcomes for clients.

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. However. 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. what is clear is that the quality of apprenticeships and traineeships is fundamentally going to depend on the employer and the training provider. but we include it in the appendix for the interested reader. NCVER Report 3 final Page 87 . Such a discussion is beyond the brief of this paper. with the field staff there to provide pastoral care.Given that the AQTF does not single out apprenticeships and traineeships for special attention.

Training and Further Education. A guide to the quality system for the SA VET sector. viewes 20 October 2010.aspx>. Apprenticeships and traineeships – good practice guide for Registered Training Organisations.pdf>. Employment and Workplace Relations 2010.edu. Department of Education and Training.vetinfonet. Department for Employment.References Department of Education. viewed 10 September 2010. Western Australia. Skills Australia 2009.pdf NCVER Report 3 final Page 88 . Lifting quality in training.det. Adelaide.training. South Australian Department for Employment.v5. Annual Report 2008—2009 Department of Education.au/pages/menuitem5cbe14d51b49dd34b225261017a62dbc. <http://www.au/progdev/docs/good_practice_guide. (2008). 2010.com.wa.gov. Training and Further Education 1997. Retrieved 08 30.au/PDFs_RTFs/CommuniqueSIF. Employment and Workplace Relations. <http://www. AQTF Essential Conditions and Standards for Continuing Registration. from http://www.skillsaustralia.

The approach to quality became more focused in the mid-1980s with the worldwide adoption of the ISO 9000 set of standards. This means that ‘right and proper’ is displaced by ‘fit for purpose’ for the particular context. Quality systems rarely succeed when only one of these elements is present and hence do not flourish in situations where they are imposed. the conditions imposed on RTOs which include governance. To do this objectively the auditor needs to use the data generated by the business (if indeed these actually exist!) to show continuous improvement. since much legislation invariably requires that something has to be done and visible records need to be maintained to show that this has occurred. insurance and integrity in marketing.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. 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. This raises the interesting question about how sensible it is for governments to mandate that vocational providers institute quality assurance in their organisations. This meant auditors often adopted a ‘tick and flick’ approach to auditing. Ideally. The most quoted example of the power of quality systems is seen in the rise of the Japanese economy after the Second World War. as quality is both a culture as well as a set of ‘how to’ tools. particularly as the auditor needs to understand the business and what it is trying to achieve when accessing outcomes during an audit. and hence the auditing of these outcomes. However the ISO 9000 Standards have evolved and there is an increasing focus on the outcomes of the quality systems used by organisations. it still maintains a strong compliance base. This is a very important principle. An unfortunate consequence is that ‘tick and flick’ was often seen as a satisfactory tool for devising and implementing regulation. the standards and the auditing of these standards were heavily focussed on procedures and compliance to these procedures. It is difficult to do this in just one business but to apply this systematically across many different businesses and to NCVER Report 3 final Page 89 . Another issue implicit in the implementation of most quality systems is the fundamental role of the internal audit process within organisations. This is where the legislative links to ISO Standards appear to coincide. Thirty years later there are some powerful messages on the success of the adoption of quality systems by organisations. 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. To attempt to answer this issue we need to understand the history of the quality movement. which started in the automobile industry. The theory of quality systems is steeped in the concept of gradually improving product quality. for example. when first introduced. Clearly the effectiveness of this role must be questionable. The AQTF has also evolved and while there is an increasing focus on outcomes. financial management. A critical factor is that the quality culture must be owned and supported by the executive of the organisation. A final issue with quality systems is that. This is done by collecting pertinent manufacturing and other related data. 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. where the external auditor instead needs to impose the quality agenda.

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. as shown above. 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 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. dependent on the circumstances or market niche. are some of the most critical to apprentice success.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. 1. This is also an area where ‘ticking the box’ gives no guarantee whatsoever that the all important training and assessment will produce good outcomes. and (b) have the relevant vocational competencies at least to the level being delivered or assessed. The auditor needs to be open to a wide range of equally valid practice options. Instead processes need to probe more deeply. NCVER Report 3 final Page 90 . and (d) continue to develop their Vocational Education and Training (VET) knowledge and skills as well as their industry currency and trainer/assessor competence. The experience of the NQC is that these elements are the most problematic to audit but. and (c) can demonstrate current industry skills directly relevant to the training/assessment being undertaken.attempt to compare them is potentially a nightmare. where relevant. regulatory requirements (d) is systematically validated. 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.

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 may be plausible to bundle these elements to be reviewed in a similar fashion as if they were part of the conditions of registration. 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. These principles are also more akin to the Business Excellence principles to which many companies worldwide are now aspiring. 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. which could involve peers and industry experts. Furthermore. In this sense it would be something between the Institute of Trades Skills Excellence model and the approaches used very successfully in higher education. This cannot be audited with a compliance methodology. apart from those licensed areas. 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. It could also be enshrined in national legislation.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. It needs to be assessed by very different principles and at a different time and space. This includes many of the elements of Standards 2 and 3. It is clear that a number of the current standards still have significant elements of compliance. Increased use of moderation and validation strategies In the critical areas of delivery and assessment of the training outcomes. despite having a pivotal role in developing training package qualifications. yet the AQTF has already developed a provisional set of Excellence standards that have been piloted. Australia has been slow to capitalise on these directions. 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. Such an approach was suggested by the recent OECD review. 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. NCVER Report 3 final Page 91 . It could involve a combination of on.and off-site review. These include the US Baldrige or the UK Investors in Excellence models. nor are assessment processes necessarily well validated. which are concerned with meeting specific requirements. This is certainly where NQC seems to be headed with the recent work it has completed and published. It is these ‘conditions’ that are more amenable to traditional compliance auditing. This concern is compounded because moderation is not a mandatory requirement in the AQTF. The role of an external auditor should be to assure that this is happening effectively.

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