D09/0201430 VICTORIAN PARLIAMENTARY COMMITTEE INQUIRY INTO SKILLS SHORTAGES IN THE RAIL INDUSTRY INDUSTRY AND COMMUNITY PLANNING DIRECTORATE DEPARTMENT OF EDUCATION AND TRAINING (WA) The Western Australian Rail Industry OVERVIEW The state of Western Australia comprises a large geographic area which is serviced by multiple rail sub-systems. Generally speaking these are: 5,100km of standard, narrow and dual gauge network in the south west of Western Australia between Geraldton, Kalgoorlie and Albany operated by WestNet. The network caters for both freight and passenger services. The Electrified Urban Passenger network operating between Joondalup and Mandurah and Midland to the east is managed and maintained the Network and Infrastructure Division of the Public Transport Authority (the Authority). The interstate standard gauge line from Kalgoorlie to Adelaide is owned by the Australian Rail Track Corporation. The rail lines in the Pilbara are privately owned and are built, managed and maintained by the mining companies. These include those tracks under the ownership of BHP, Rio Tinto and its affiliates and Fortescue Metals Group. Rail operators The Government owned Public Transport Authority has two rail operating units, Transperth and TransWA. Transperth operates the electrified urban rail passenger network in the Perth metropolitan area and extending to Mandurah. TransWA operates three rail passenger services to regional centres, in addition to its regional coach services. Australian Railroad Group (ARG) is the primary bulk haulage rail operator in southwest of WA, transporting freight to the ports of Geraldton, Fremantle, Kwinana, Bunbury, Albany and Esperance. South Spur Rail Services provides short haul bulk freight transportation (concentrates, mining and agricultural produce), work trains (track laying, ballast trains, sleeper trains), hook and pull and shunting operations and port services (port shuttles). There are some small tourist rail operators that also utilise the state’s network. There are also a number of national rail companies that operate interstate services into WA: Great Southern Rail operates the twice weekly Indian Pacific passenger train between Sydney and East Perth. Pacific National provides inter-modal rail freight service between their Kewdale Freight Terminal and the eastern seaboard. SCT Logistics operates between Kewdale (WA) and Melbourne and Parkes (VIC). 1 Skill shortages in the rail industry Consultation with industry advisory groups has confirmed the Department of Education and Training’s Western Australian State Training Profile (2009-2011) identification of skilled labour shortages which pertain to the rail industry. Occupations identified as in shortage include: Signal technicians: in short supply and there are a shortage of workers with the necessary qualifications. Total numbers are less than 100 for all employment of this type in WA. Shunters. Train drivers, although new entrants show strong interest in this occupation as a career choice. Electrical distribution trades workers: there is a state-wide shortage not just specific to the rail sector. However, the rail sector application of these skills is very different to those required by the electricity network. Public transport has flagged a problem getting rail-skilled tradespeople. Qualified managers and supervisors are undersupplied. Employers indicated much of this is satisfied through on-the-job training and recognition of leadership within the ranks. There is a lack of staff with higher vocational education and training skills amongst rail workers, particularly in some of the more regional and remote areas of the state. Composition of the WA rail industry by occupation Please see attachment 1 for a break-down of rail industry by employment occupations, based on the Australian Bureau of Statistics ANZSIC (2006) classification. RESPONSE TO THE INQUIRY’S TERMS OF REFERENCE 1. Factors influencing recruitment and retention. Training Supply Work Practices and Industry Characteristics Macro-Economic Environment Career Perceptions Government Policy Crowding of Industries in WA Training supply Signals technician training differs across Australian railways as there is no standardisation due to different equipment in use. As a result, training is mostly informal and specific to the owner’s railway infrastructure and systems. It is generally delivered on site where the technicians are under supervision until competent. 2 The UEE07 Electrotechnology Training Package Qualification “UEE41207 Certificate IV in Electrical – Rail Signalling” is not utilised by WA industry to qualify signals technicians as there is no RTO in WA with scope to deliver this qualification. There is a lack of training provided post-trade for electrical/electronic training specific to rail transport industries. Electricians are already in general shortage across the state. Currently there is a lack of rail-specific courses available in freight business which results in the majority of training being done on the job. This puts extra strain on the business in regards to both time and cost and creates a delay in getting employees to a level where they become functional and effective to the business. Industry advises there is only one registered training organisation (RTO) with scope to deliver qualifications from the UET06 ESI Transmission Distribution and Rail Training Package. This organisation does not deliver in the rail sector. Therefore access to training opportunities is limited and has become a costly exercise for the Authority as the only employer of individuals needing these skills relevant to electric rail. Work practices and industry characteristics The length of a project is a factor that influences recruitment and retention. Often the project contracts create breaks of a number of months in-between, or overlapping, projects. This is considered inherent in much of the industry. Industry advice notes chop-and-change practices mean new employees are frequently hired at the start of new projects and these need intense training to meet OHS regulations and the employer’s work standards. Specialised workers are often flown into a remote/regional project as locals are not qualified or not skilled. This presents a new set of retention problems as many high- end and professional workers do not have any interest in traveling from their metropolitan homes. Large companies are able to attract and retain staff by utilizing the company “brand”. They can offer incentives such as continuity of work, career opportunities, longevity of employment, company stability and in-house training opportunities. Industry considers mandated entry-level medical testing requirements stringent. At the unskilled, lower skilled level the work tends to be very physically strenuous and demanding. This may not apply to the same extent for skilled hands whose roles involve less physical labour. Macro-economic environment The uncertainty of how the economy will move complicates workforce planning, according to industry groups. However, the economic downturn has also resulted in an increased stability of the workforce as workers try to maintain job security. Industry expects alternative work opportunities to decline over time. Employers have also identified increases in the number of applicants for available positions: Freight - Fifty percent reduction (from 16 to 8) in the number of trainees in the next uptake because of the down-turn. 3 Mining – Shedding of some operational positions as well as training back office positions and reduction in recruitment except for key operational positions. Stakeholders noted that a reduction in the level of non-critical training is happening but operational training is mostly unaffected. Comment was also made on a reduction in the attrition rate due to employee concerns about future employment prospects Public Transport - The regular drain of urban passenger train drivers to the mining industry has virtually stopped. The Authority has Transit Officers and Special Transit Officers related to the rail industry. In the past they had problems keeping their staff due in part to the quality and training given to the recruits and leakage to the Federal and State police forces. At the beginning of the year, the Authority carried out their normal recruitment campaign and received approximately 900 applications. This number of applicants has increased dramatically from last year. Currently the Authority doesn’t have any issues with recruitment. Career perceptions Lack interest in employment has historically been an industry wide problem for rail. However, occupations such as train driver tend to be more attractive to young people than others. Government policy The across the board cuts (3%) in government spending have meant that non-critical operational positions are not being replaced in the Authority. Stakeholders also identify trainees, a traditional way of bringing workers into the organisation, now not being employed. Like the rest of the transport and logistics industry, training in the rail sector has been primarily driven by regulatory compliance. This has placed an emphasis on the short courses to meet immediate needs. Since the introduction of the rail training package there has been a steady increase in the amount of training leading to qualifications. Crowding of industries in Western Australia The same skills are in strong demand in many places. The multiple claims have until recently been resolved in favour of the energy and resources