Apprenticeship numbers have climbed but still aren't where they need to be experts say. Photo / Getty Images
Heavyweights in the trades say a broad-brush approach to the Government's apprenticeship scheme is draining funds that should go to sectors hardest hit by the skilled labour shortage.
Plumbers, electricians and building representatives were also concerned people were training for the wrong reasons or employers were using them as cheap labour.
But others say Government funding had helped build business confidence and more apprentices gaining qualifications was a win-win.
But the Ministry of Education said the Apprenticeship Boost was designed to help employers retain and take on new apprentices.
It said employers receiving funding had to sign a declaration detailing their legal obligations to pay their apprentices at least minimum wage.
Master Builders Association Tauranga president Todd Grey said he hoped employers weren't hiring apprentices to get cheap labour and the grants.
"I hope they are actually training them up ... because a lot of it comes down to the employer. If they are not getting taught anything and are getting thrashed to sweep the floor and that they will leave."
He acknowledged the apprenticeship scheme was a good start but it would take a few years to get them qualified.
Grey was also worried some people may also be training for the wrong reasons and may be doing it because their parents thought it was a good idea.
Master Plumbers chief executive Greg Wallace said government incentives were great but in his view there had been a broad-brush approach and he was advocating for funding to be more specific and targeted around industry shortages.
At the end of 2020, there were only eight apprentices in its sector training in the Bay of Plenty compared to 53 in Auckland and about 250 across New Zealand.
"It's not enough and we are only touching the surface now. We are never going to fix our skilled labour shortage unless we get apprentices. It is the only way.
"If we don't, supply and demand will come into effect and wages and charge out rates will go up."
Wallace said carpentry numbers had gone incredibly high as "it's probably seen as a slightly more sexy industry ... but the reality is out of all the trades, plumbing is the highest revenue".
Master Electricians NZ chief executive Bernie McLaughlin said hiring an apprentice came with financial risk, cost of training and inability to fully recover wages as a charge out rate over the first two years of employment.
"Nationally there were about 5000 electrical trainees in various stages of training but only 10 per cent of companies train apprentices ... basic maths states that we need to be training 55 per cent more apprentices than we are now to account for the required workload and attrition."
But McLaughlin said it would be counterproductive if a company was training simply for a subsidy.
"There are some simple measures that can be put in place, like providing the subsidy once certain training elements or unit standards are achieved rather than a 'bums on seats' approach."
Training also needed to be on the job, not in the classroom.
"There is no one-size-fits-all system for the vocational education, whilst some industries may be able to train mainly online or in the classroom, the trades are not one of those."
In response, Ministry of Education's group manager of tertiary education Katrina Sutich said the Apprenticeship Boost was designed to support employers to retain first and second-year apprentices and to encourage them to take on new apprentices.
"Employers across all industries are able to apply for financial support through Apprenticeship Boost if their apprentices fit within these categories.
"This reflects the importance of apprenticeship training for all industries and of sustained employment for people at the start of their career."
Sutich said employers receiving funding from the boost had to sign a declaration that detailed the obligations and expectations they must meet in order to access the subsidy.
"This includes meeting their legal obligation to pay their apprentices at least the minimum wage."
Apprenticeships can include some classroom delivery with a tertiary education provider but the majority of an apprentice's learning and assessment happened on the job, she said.
"Each industry determines what type of delivery method will meet best meet the needs of its apprentices."
BCITO provides training across 15 trades and has 1500 active apprentices in the Bay of Plenty including 660 in Tauranga and 190 in Rotorua.
Chief executive Toby Beaglehole said it was great to see more employers taking on apprentices.
"So many people are getting qualified. It's an absolute win-win. There's no fees at present, the apprentice gets to earn while they learn, and for the employer, it is an investment in their business and the industry."
Competenz was a multi-sector industry training organisation and this year it had 420 apprentices on its books in the Bay of Plenty. The most popular trades were mechanical engineering and fabrication.
Chief executive Fiona Kingsford said companies had grappled with the unexpected last year, but others in sectors such as manufacturing and engineering have emerged stronger and more resilient out of lockdown.
"2020 was a sharp awakening that it was more important than ever for their workforce to adapt (or adopt) to new processes and technologies. On-the-job micro-training, traineeships, or apprenticeships allowed their teams to learn some new skills.
"We have had overwhelmingly positive feedback from our industries."
The Government funding had helped build business confidence, she said.
"It enables many SME and large businesses to grow, while offering invaluable on-the-job training for new school leavers and cross-skilling/up-skilling for existing employees."
Toi Ohomai Primary Industries Trades and Infrastructure faculty dean Brian Dillon said it worked with hundreds of employers across the wider Bay of Plenty and continues to forge new relationships every day.
Figures show Toi Ohomai apprenticeship numbers have jumped from 221in 2018 to 360 in 2020. Its eight courses cover carpentry, engineering, automotive and road transport.
Dillon said essentially the apprentice was employed by their employer and enrolled as part-time students.
Most employers had one apprentice but some could have four or five.
"Our engagement with the students/apprentices ranges from fully online to block courses, day release, night classes, and visits to their workplaces. They also get to develop or fine-tune practical skills in workshop sessions, and also take part in site visits – often to sites which they may not normally go to."
Data reveals Toi Ohomai received $1.1 million in 2019, $1.4m in 2020 and $1.75m so far in 2021 for the apprenticeship schemes but did not include any TTAF income which came into effect in 2020.
Since the Apprenticeship Boost was launched in August, 16,475 employees had their apprenticeship status verified and about $54m had been paid to employers.
Statistics revealed 1205 of those apprentices were based in the Bay of Plenty.
Ministry for Social Development Bay of Plenty regional commissioner Mike Bryant said it offered two specific programmes in the region to get people entry level jobs in the trades.
These were Kiwi Can Do, for painting and gib stopping, and Trade Train for engineering and welding.
"We also fund a service to profile young people in a variety of trades through a contract with Trade Up. Our Mana in Mahi programme supports people entering the trades and gaining Level 3 and above recognised industry qualification."
The ministry also worked with industry associations and large businesses through its industry partnership programme to support them with employment programmes.
• The TTAF covers the cost of fees from now to December 31, 2022 for all apprentices, not just those in first two years of their apprenticeship training.
• TTAF also covers fees for learners who are not apprentices, but who are enrolled in programmes (at level 3 to 7 on the New Zealand Qualifications Framework, excluding degrees) in the targeted areas within industry training through their employer, or at a tertiary provider.
• Apprenticeship Boost is for a maximum of 20 months per apprentice, and it's paid in advance.
• First year apprentices can get $1000 a month and second year apprentices can get $500 a month.
- Source Te Ara Kaimanawa
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