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Education and Training Committee Final Report Inquiry Into Skills

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Education and Training Committee Final Report Inquiry Into Skills Education and Training Committee Final Report Inquiry into Skills Shortages in the Rail Industry ORDERED TO BE PRINTED May 2010 by Authority Victorian Government Printer No. 275 Session 2006–10 Printed on 100% recycled paper Parliament of Victoria Education and Training Committee Inquiry into Skills Shortages in the Rail Industry ISBN 978-0-9805312-4-4 ISBN 978-0-9805312-5-1 Electronic ii Education and Training Committee Members Mr Geoff Howard MP Chair Mr Nicholas Kotsiras MP Deputy Chair Mr Martin Dixon MP Mr Nazih Elasmar MLC Mr Peter Hall MLC Dr Alistair Harkness MP Mr Steve Herbert MP Staff Ms Karen Ellingford, Executive Officer Mr Peter Thomson, Senior Research Consultant Ms Catherine Rule, Research Officer Ms Natalie Tyler, Administration Officer Parliament House Spring Street EAST MELBOURNE VICTORIA 3002 Telephone: (03) 8682 2823 Facsimile: (03) 8682 2818 Email: [email protected] Website: http://www.parliament.vic.gov.au/etc iii iv Chair’s foreword The Victorian rail service has a history dating back to 1854. As a vital part of Victoria’s economic and social infrastructure, the metropolitan and regional rail networks provide substantial economic and social benefits and contribute to the overall living standards of all members of the community. Over the last ten years, Victoria has seen significant growth in patronage on its train and tram services. This has coincided with large-scale investment in rail infrastructure and assets by the state and federal governments. All of this has occurred at a time when the rail workforce itself has been facing significant challenges. The ageing rail workforce, accompanied by a decline in training and development in the traditional trades and engineering, has led to a range of skill shortages within the rail industry. While these issues are not unique to rail, as Chair of the Education and Training Committee, I feel that strong action is required to ensure that we have the required number of appropriately skilled and enthusiastic workers to meet the growing demand for rail services into the future. This inquiry provided the first opportunity for Committee members to hear from an industry outside of the education and training community. The Committee welcomed this opportunity to hear from a range of stakeholders within the rail operations and rail manufacturing segments, together with stakeholders in the education and training sector. The Committee thanks representatives from all of these sectors for their valuable contributions to the inquiry’s outcomes. The Committee has recommended that a comprehensive audit of the rail workforce should be undertaken, and used to develop an industry-wide workforce development plan. The Committee has also recommended that a Victorian Centre of Excellence in Rail Skills be established to assist in this work, and to help to address skill shortages in safety critical roles, as well as the traditional trades and engineering fields. The Committee believes that these actions to address skill shortages in the rail industry will help to ensure that the benefits of government investment in rail infrastructure across the state will be fully realised. I wish to thank my fellow Committee members for their participation in the investigations and their input during the deliberative phase of the inquiry. I would also like to thank the staff of the Committee secretariat for their hard work and support throughout the inquiry. In particular, I would like to acknowledge the senior research consultant, Mr Peter Thomson, whose expert knowledge of the rail industry was of great assistance to the Committee. Geoff Howard MP Chair v vi Contents Members and staff of the Education and Training Committee............................... iii Chair’s foreword .....................................................................................................v Executive summary............................................................................................... xi Recommendations ..............................................................................................xvii List of figures and tables ..................................................................................... xxi Acronyms and abbreviations .............................................................................xxiii Chapter 1: Introduction........................................................................................1 Functions of the Education and Training Committee..............................................1 Terms of reference.................................................................................................2 Inquiry methodology...............................................................................................2 The Australian rail industry.....................................................................................4 Chapter 2: The Victorian rail industry ................................................................7 The policy framework .............................................................................................7 • The Victorian policy context • The national policy context • Rail safety Industry stakeholders ...........................................................................................10 The Victorian passenger rail network ...................................................................14 • A snapshot of the passenger rail network • Passenger numbers • Privatisation of passenger services • Rail assets and infrastructure • Infrastructure maintenance and renewal • A modernised metro system • Regional rail projects The Victorian freight rail network..........................................................................21 • Overview of the freight rail network • Freight volumes and growth • The Victorian Freight Network Strategy vii Conclusion........................................................................................................... 25 Chapter 3: Rail occupations and skill shortages ............................................ 27 The rail industry workforce................................................................................... 27 • Size of the industry • Job categories and occupations • Rail industry qualifications • Worker characteristics • Workforce turnover Skill shortages ..................................................................................................... 32 • Definition of skill shortage • Measuring skill shortages • Skill shortages in the rail industry • Causes of skill shortages • Industry skills audit Conclusion and recommendation ........................................................................ 47 Chapter 4: Skills planning and development .................................................. 49 Education and training in the Victorian rail industry ............................................. 49 • Qualification levels of the rail industry workforce • Legislative requirements for training and development in the rail industry • Rail industry training packages • Apprenticeships • Higher education courses • Short courses Worforce planning and development ................................................................... 68 • Recruitment and retention strategies • Industry-wide workforce planning and development • Skills reform agenda Centres of Excellence.......................................................................................... 74 • Centre of Excellence models • A Victorian Centre of Excellence in Rail Skills Conclusion and recommendations....................................................................... 80 viii Chapter 5: Rail manufacturing and component supply ..................................83 The manufacturing sector.....................................................................................83 • Manufacturing in Victoria • The Victorian industry and manufacturing development strategy Rail manufacturing in Victoria...............................................................................86 • Procurement of Victoria’s train and tram fleets • Victorian rail manufacturers and suppliers • Challenges facing the rail manufacturing sector • Support for the rail manufacturing and component supply sectors Skill shortages within the rail manufacturing sector............................................100 • Skills required in rail manufacturing • Identified skill shortages • Strategies to address skill shortages in rail manufacturing • Training and development within the rail manufacturing sector Conclusion and recommendations .....................................................................104 Appendices.......................................................................................................107 Appendix A: Submissions...................................................................................107 Appendix B: Public hearings...............................................................................109 Appendix C: Site visits........................................................................................113 Appendix D: Interstate investigations .................................................................115 Appendix E: International investigations.............................................................119 References........................................................................................................121 ix x Executive summary Chapter 1 Introduction A comprehensive and accessible transport system has obvious benefits to the community. Safe and
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