Fair Trades Outcomes from the Fair Work Ombudsman’s National Apprenticeship Campaign 2015 Table of Contents Infographic ..................................................................................................................................3 About the campaign .................................................................................................................... 4 Outcomes at a Glance ................................................................................................................5 Industries Profiles .......................................................................................................................5 Stakeholders ...............................................................................................................................6 Communication and Public Awareness .......................................................................................6 Other media ................................................................................................................................8 National Findings ........................................................................................................................9 Individual errors ........................................................................................................................11 Enforcement Outcomes ............................................................................................................13 Association membership and business size ..............................................................................14 Conclusion ................................................................................................................................14 About the Fair Work Ombudsman .............................................................................................15 Appendix A – Stakeholders .......................................................................................................17 Appendix B – Industry Breakdown ............................................................................................18 Industry Compliance Rates .......................................................................................................18 Appendix C – State Findings .....................................................................................................19 Appendix D – National Apprenticeship Campaign 2015 and National Building and Construction Campaign 2014/2015 ................................................................................................................20 Page 2 of 20 Infographic Page 3 of 20 About the campaign The Fair Work Ombudsman (FWO) developed the National Apprenticeship Campaign (the campaign) to test and detect non-compliance with workplace laws for apprentices in Australia. Around 60% of apprenticeships are cancelled or withdrawn within the first year, with reasons relating to the employment experience the most commonly cited grounds for non- completion. Specifically 33% of apprentices left their training arrangements due to relationship issues with their employer, poor working conditions or not being happy with the on-the-job training*. The FWO believes that early intervention through advice and assistance gives employers and their apprentices the best opportunity of a completed apprenticeship. Other factors considered in the development of the campaign included: From 1 July 2014 to 30 June 2016, the FWO received 2241 Requests for Assistance from apprentices and trainees 64% of apprentices and trainees who made these Requests for Assistance were under the age of 24 42,073 enquiries were made to the Fair Work Infoline in relation to apprentices and trainees between 1 July 2014 and 30 June 2016. The campaign focused on businesses engaging apprentices, with an emphasis on businesses that engaged first year apprentices. Businesses were selected for inclusion in the campaign based primarily upon industries where the most Requests for Assistance were received by the FWO, including: Retail Services Manufacturing Electrical Services Automotive – Maintenance and Repair Hair and Beauty. The FWO worked closely with the Department of Education in designing and developing the campaign. Department of Education data was vital in complementing the FWO’s internal data, ensuring the FWO could select the most appropriate businesses for inclusion in the campaign. All businesses audited in the campaign employed apprentices. The FWO audited the Understanding the Non-Completion of Apprentices - National Centre for Vocational Education and Researchcompliance of 822 businesses that employed 2266 apprentices. Compliance was assessed with the Fair Work Act 2009 (the Act), the Fair Work Regulations 2009 (the Regulations) and the relevant award/agreement. *Understanding the Non-Completion of Apprentices - National Centre for Vocational Education and Research Page 4 of 20 Outcomes at a glance Entitlements of 2266 apprentices checked, including o 1325 first year apprentices; and o 941 non-first year apprentices (second or subsequent years). 822 business that employed apprentices audited 644 (78%) businesses were compliant with record-keeping and pay slip requirements for their apprentices 558 (68%) businesses were paying their apprentices correctly 443 (54%) businesses were compliant with all requirements for their apprentices $339 433 was recovered on behalf of 323 apprentices 54 formal cautions, seven (7) Compliance Notices and five (5) Infringement Notices were issued. Industries profiles The campaign focused on industries where the FWO received a higher proportion of Requests for Assistance. From July 2013 to 31 May 2014 for example, the breakdown of total apprentice based Requests for Assistance received by the FWO was: Construction: 523 (37.41%) Hair and Beauty: 234 (16.74%) Hospitality: 158 (11.30%) Manufacturing: 144 (10.30%) Automotive: 132 (9.44%) Electrical Services: 114 (8.15%). This campaign did not audit Construction and Hospitality businesses because of recent audit activity in those industries. A summary of comparative findings in relation to apprentices in the Construction industry is provided in Appendix D. Based on the above industries the campaign focused on employers with apprentices undertaking the following apprenticeships: Automotive (e.g. mechanics, panel beaters, auto electricians) Electrical Services (e.g. electricians, equipment technicians) Manufacturing (e.g. welders, boilermakers, fitter/turners, cabinet makers shopfitters,) Hair and Beauty (e.g. hairdressers) Retail Service Industry (e.g. bakers, pastry cooks, retail butchers). Page 5 of 20 Stakeholders The FWO engaged with government and industry stakeholders on the design, development and delivery of the campaign and to obtain insights into specific issues relating to apprentices and apprenticeships. This also provided the chance to explore future opportunities to work collaboratively in addressing issues around apprenticeships. The stakeholders included (but were not limited to): Commonwealth Department of Employment Commonwealth Department of Education Victorian Qualification and Registration Authority Master Electricians Australia (MEA) Motor Trades Association of Australia (MTAA) Australian Meat Industry Council (AMIC) Sheet Metal Industry Association (SMIA) Australian Workers Union (AWU) Australian Manufacturers Workers Union (AMWU) United Voice (UV). A full list of stakeholders is available in Appendix A. Communication and public awareness The campaign included a communication and public awareness phase. This aimed to promote awareness of the rights and responsibilities regarding workplace laws among first year apprentices and their employers. A dedicated web page was created on the FWO website at www.fairwork.gov.au/apprentices (which attracted 6353 visits). Presentations During May and June 2015, the Department of Education conducted eight training sessions for Apprenticeship Providers in every state and territory. As part of this training, Fair Work Inspectors (FWI’s) conducted presentations on the tools and resources the FWO provides for apprentices and their employers. Current issues regarding the employment of apprentices, such as competency based progression and tuition fees for apprentices were also discussed. Social media In June 2015, the FWO conducted a three-week social media campaign. It was developed to promote compliance among employers of first year apprentices and their apprentices in the manufacturing, automotive and electrical service industries. The communication activities were aimed at ensuring employers and their apprentices were aware of their rights and obligations. Page 6 of 20 Outcomes of the social media campaign included: 6353 visits to the campaign page at www.fairwork.gov.au FWO content was seen by 774 704 people on Facebook Twitter delivered 387 574 impressions leading to 2217 clicks and 5190 engagements (retweets, shares, favourites etc.). Sample Facebook posts Sample Twitter posts Page 7 of 20 Sample postcard collateral Other media The campaign also achieved coverage in print, radio and online media as per the following table: Print The Age Sydney Morning Herald Swan Hill Guardian Radio ABC Southern Queensland ABC South East NSW 105.7 ABC Darwin ABC Sunshine Coast 702 ABC Sydney 891 ABC Adelaide ABC Tropical North ABC Central Coast Radio National ABC Western Queensland ABC South East NSW ABC Broken Hill ABC Wide Bay 612 ABC Brisbane ABC Far North ABC North