Planned reforms to building industry apprenticeships that were hailed as a major breakthrough have become bogged down in a technical dispute between industry groups and the Construction, Forestry, Mining & Energy Union.
Planned reforms to building industry apprenticeships that were hailed as a major breakthrough have become bogged down in a technical dispute between industry groups and the Construction, Forestry, Mining & Energy Union.
The reforms included the reduction in apprenticeship terms to three years and the introduction of two-year apprenticeships for the residential building sector.
Announcing the reforms last October, Education and Training Minister Ljiljanna Ravlich said they represented one of the biggest changes to the apprenticeship system in 90 years.
She said the changes would help the building industry tackle the shortage of skilled labour, which has contributed to higher costs and building delays in the housing industry.
Alcock / Brown-Neaves director Dale Alcock, who played a lead role in negotiating the reforms, said it was “ridiculous” they had not yet been adopted.
“We are incredibly frustrated they haven’t seen the light of day yet,” Mr Alcock said.
The changes were due to be implemented in January after relevant “industrial arrangements”, including new rates of pay for the shorter apprenticeships, were finalised.
Mr Alcock said the members of the residential building industry working group, including the CFMEU, reached an agreement on December 20 on all relevant matters, including rates of pay.
The Master Builders Association lodged an application with the WA Industrial Relations Commission the next day, on the understanding it would proceed by consent.
The CFMEU subsequently lodged an objection, two days before the IRC was due to hear the matter.
The key sticking point was the CFMEU’s insistence that the award include a definition of “residential”.
MBA construction director Kim Richardson said attempts to resolve the matter had been frustrated by CFMEU state president Kevin Reynolds, who has been personally handling the negotiations.
“It has bogged down on some technicalities that really don’t stand up to scrutiny,” Mr Richardson said.
Housing Industry Association executive director John Dastlik said the industry did not see a need to include new definitions, and believed the current framework was adequate.
“The agreement that we reached before Christmas now seems to be in jeopardy,” Mr Dastlik said.
Ms Ravlich was disappointed at the failure to reach agreement.
“I share industry’s frustration with the delay in implementing the changes,” she said.
Only the industrial parties could agree to the supporting arrangements and the government could not force change on the parties, Ms Ravlich said.
Mr Richardson said it was disappointing the reforms had not been implemented in light of the extensive preparations undertaken by the TAFE sector.
He said the entire reform could be derailed if the changes were not agreed by the end of the month, when the setting of apprentice wages falls under the federal jurisdiction.
The planned reforms in the building industry were meant to set a lead for other industry sectors, including mining, automotive, metals and hospitality, all negotiating apprenticeship reforms under the framework of the state government’s skills formation taskforce.
Mr Alcock said he was concerned about the ability of other industries to achieve reform.
“If we can’t get this one over the line, it doesn’t give you any confidence,” Mr Alcock said.
The difficulties with the building industry throw up a wider challenge for premier Alan Carpenter, who last month signed the Council of Australian Governments’ Action Plan on addressing skills shortages.
The action plan included a commitment to shortening the duration of apprenticeships where competencies are demonstrated.
The CFMEU did not return calls from WA Business News.
