Vehicle industry ignored in training fiasco

BLOOD pressure levels are rising in the automotive service and repair industries over a move by deputy prime minister Julia Gillard to sweep the sector’s training needs into the general manufacturing basket.

The decision means car-makers and the traditional automotive peak bodies now have no direct say over the content of the training courses offered to automotive apprentices and trainees.

The industry is concerned that many of its needs will be overlooked or downgraded by the Manufacturing Industry Skills Council (MISC), one of the largest such councils charged with designing training programs for various industries.

The MISC has responsibility for a wide spread of manufacturing industry, ranging from textiles to furnishings, mineral products to aerospace and cast metals to chemicals.

General manager industrial relations, occupational health and safety and training for the Victorian Automobile Chamber of Commerce (VACC), Leyla Yilmaz, said the industry had an issue with the changes because Manufacturing Skills Australia (MSA) was the body looking after training in “broad manufacturing: textiles, chemicals, rubber, furniture and all sorts of ancillary things, even footwear”.

“We say there is no connection with any of that,” she said.

Left: V6 production at Holden's engine plant in Port Melbourne.

The automotive industry believes it has been the victim of a misunderstanding on the part of politicians such as Ms Gillard who, it suspects, believe the industry mainly comprises car-makers.

In fact, only small part of automotive training covers the final assembly stage, Ms Yilmaz said. Most apprentices and trainees are employed by dealers and smash repair shops, with another hefty swag coming from the small-volume fabrication industry.

The problem dates back to the Howard government years when a system of skills training councils were established, and the vehicle sector opted to stay with the Automotive Training Council.

In a bid to clean up the sector, Ms Gillard, as education minister, decided to sweep the automotive sector into the MSA, despite vociferous objections from all parts of the industry.

Ms Gillard received letters of objection from the VACC and all its fellow state automotive bodies, the Federal Chamber of Automotive Industries (the car-makers), the Federation of Automotive Products Manufacturers (the parts-makers) and even the Australian Chamber of Commerce and Industry.

Perhaps more telling for a politician who is not only from the left faction of the Labor party but also represents a seat in Victoria, the home of the car industry, Ms Gillard has been criticised by the Australian Manufacturing Workers’ Union (AMWU).

AMWU vehicle division federal secretary Ian Jones wrote on March 10: “At the outset let me express my abject disappointment at the government’s inability to be able to appropriately address the needs of the major stakeholders within automotive manufacturing and the repair, service and retail (RSR) sector.

“It is astounding that the federal government on the one hand has recognised (the) automotive industry as being of special significance to the Australian economy whilst, at the same time, ignoring the views of all major stakeholders with respect to its training arrangements.” Mr Jones dismissed an assertion by Ms Gillard in earlier correspondence that the move to include automotive training under manufacturing was suggested by the Bracks review into the automotive industry.

He said the move was “in no way” consistent with the recommendations of the Bracks inquiry.

“Suffice to say that I reject all of the assertions made in your correspondence, and do not believe that being subsumed into manufacturing skills will in any way advance the training agenda within our industry,” he said.

Ms Yilmaz said the automotive sector’s training needs extended well beyond the assemblers and the RSR sector, taking in makers, assemblers and retailers of trucks, heavy equipment, road plant, tractors, buses, motorcycles and even boats.

“Conservatively, we are speaking for employers with around 400,000 staff, and that does not include indirect employment through the mining, construction and other sectors,” she said.

Ms Yilmaz said the MSA was confident it could do the job because it had one automotive component maker on its advisory panel, but the VACC and the rest of the automotive sector are scared this will lead to downgrading of automotive training because that component maker uses the metals manufacturing training package, not the automotive manufacturing training package.

“That’s fine. He has the choice to make as to what’s applicable to his business,” Ms Yilmaz said.

“But he’s not typical because a lot of product manufacturers use lean manufacturing processes with a lot of division of labour. Many of our members need a mix of skills where they’re modifying a product or they conduct a different sort of manufacturing.

“The whole success of vocational training lies on the industry directly affected being involved to ensure that it is relevant, flexible enough to meet changes in technology.

“In our industry, training evolves on a regular basis because the technology changes.

There are new metals coming in, new processes, electronics, new computer systems, new adhesives, paint and other things.

“When they do, we amend training packages to ensure they are relevant.” The MSA is chaired by the Australian Industry Group (AiG), which is the peak body for manufacturers, but does not cover car-makers or parts-makers.

“They are a minor player in representing automotive, if at all,” Ms Yilmaz said.

The industry is worried that it has become the victim of a back-room political play by the AiG, which is trying to shore up its influence and relevance despite heavy losses in employment and membership in recent years.

The addition of the huge automotive repair, service and retail sector would serve to bolster its influence in education and, therefore, in government circles.

The AiG – led by chief executive Heather Ridout – recently was identified within the ranks of Canberra lobby groups as one of the big winners under the Rudd government thanks, in part, to Ms Ridout’s carefully worded critiques of government policy.

The government now turns to the AiG for affirmation on policies and uses AiG endorsements to strengthen its case with the electorate.