A more innovative approach to education and training is required in order for Victorian industry to be able to maximise its potential in the competitive global marketplace, says VECCI.
"Going forward, the challenges facing industry and policy makers include intensifying global competition, a tightening economy, an ageing population and workforce, difficulties in attracting new entrants to traditional trades, and broad based labour and skill shortages", says Mr Coulson.
"In such an environment, we believe there needs to be a significantly increased focus on and investment in skills and knowledge development and attracting and retaining skilled people.
"Victorian skill shortages mirror national trends and continue to limit business growth in a number of industry sectors. There are statewide recruitment difficulties in many trades and professions, and in many regional areas skill shortages and problems recruiting and retaining staff are significant barriers to further growth.
"A number of other factors are working to constrain Victoria's long-term stock of skills. They include:
· The ageing of the existing workforce
· Falling numbers of new entrants to the workforce
· Structural changes within industry sectors.
"Victoria has an ageing population and workforce. To increase workforce participation we must attract new entrants and retain for longer our existing skilled employees.
"Given the Commonwealth Government's reform effort to encourage members of the community on disability and other support pensions to re-enter the workforce, it must also consider enhancing initiatives and assist industry in such a transition.
"Current Superannuation arrangements have encouraged early retirement, which has contributed to a large pool of talented, experienced and under-utilised older workers.
"This represents an enormous challenge to the perceptions of both those who desire to retire early as well the community perceptions of the value of older workers remaining in the workforce longer.
"Issues to be addressed include training, flexible application of recognition of prior learning and up-skilling of older workers and members of the community. There should also be encouragement for older workers to take on training and mentoring roles to transfer skills to younger people.
In addressing these issues, the TaskForce calls for the following reforms
Preparation of young people:
- A new, targeted marketing campaign aimed at parents and young people promoting the value of apprenticeship and traineeship opportunities
- The introduction of modified New Apprenticeships for Year 10 students providing enhanced access to alternative curriculum options as well as improved standards of literacy and numeracy support
- Expanded funding of school enterprise skill centres. These models leverage existing school infrastructure in close partnership with employers, schools and training providers
Maximising workforce participation
- Welfare to Work reforms must address the risk issues for industry as well as the provision of work readiness programs for recipients in order to manage their effective transition to work
- The training system must recognise the legitimacy of, and focus on, the challenge of retraining and re-skilling older workers in the workplace
- Given current labour and skill shortages, the Victorian share of national migration should be increased from the current level of 25 percent to 30 percent, in order to meet skills and labour gaps over the short to medium term.
Improving the training system
- The Commonwealth and State Governments need to review the additional funding required for the VET system (embodied in the 'Government Funded Training Program'). Such funding to be increased by a minimum additional $25 million per annum over the next three years. This funding boost will help ensure the State's training system can effectively meet accelerating demand ahead of worsening skill and labour shortages
- Structural reform of apprenticeships must occur to focus on competence attainment rather than fixed durations. Additional financial support should expand VET programs in schools with stronger articulation arrangements to subsequent apprenticeship take-up
"A skilled workforce provides a competitive edge, improving productivity, economic growth and living standards - taken together, these reforms, will help deliver these outcomes", says Mr Coulson.
