An investment in the future
Sydney Morning Herald
Saturday July 25, 2009
Subsidies are available to employers to continue to train for the trades, writes Jackson Board. Employers who hire apprentices now can reap the benefits of thousands of dollars in revamped government subsidies and skill-proof their industry for the economic recovery.Although the global financial crisis has made the cash flow of many businesses slow, the general manager of Australian Businesses Limited Apprenticeships Centre, Darren Cocks, says now is the perfect time to hire an apprentice."The economy is really starting to bite," he says. "If businesses can afford to take on an apprentice they should. The costs are reasonably low and they then have the opportunity to have skilled and trained workers in the good years, which don't look too far away."Securing Apprenticeships and Traineeships is a new government initiative worth $145.6 million, which has been designed to keep out-of-work apprentices and trainees in contact with the workforce. Significant wage subsidies are available to employers who take on apprentices who have been laid off in crucial industries and who are therefore unable to complete their qualification.Employers are entitled to receive $150 a week (capped at $2800) 12 weeks after an apprentice recommences training in addition to any incentives they currently receive. Upon completion, an additional payment of $1000 will also be paid to the employer to help reduce the financial strain of their commitment to new workers.Occupations in skill shortage areas plumbers, electricians and mechanics are eligible for the additional payments.The chief executive of Group Training Australia, Jim Barron, says training apprentices is crucial, even in a downturn, to ensure the workforce is appropriately skilled for the future. However, he admits the costs involved can be difficult to justify for micro, small and medium-sized businesses."It's a constant battle to show that training is an investment, not a cost," he says. "But that's a difficult argument to maintain at the moment."His organisation is working with employers in several industries to come up with creative solutions to maximise the chances of apprentices being able to complete their certificate. An emerging example is when an apprentice cannot find a permanent position with one employer, he or she can rotate around a number of worksites.But the success of the new government initiative is yet to be fully measured and only time will give an indication as to whether it has given employers more confidence to increase training."We are monitoring the impact of it very closely and we'll have a much better idea of its success in about three months' time," Barron says.Apprentices who are out of work can also get help through the Continuing Apprentices Placement Service, which matches out-of-trade apprentices with employers in the appropriate industry area.See www.australianapprenticeships .gov.au.
© 2009 Sydney Morning Herald