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Australian Group Training Apprenticeships

1. Overview of Australian Group Training Apprenticeships

The group training apprenticeship model refers to the apprenticeship system in which the group training company acts as an intermediary between the apprentice and the employer, hires apprentices under the apprenticeship contract and sends them to each employer, and meanwhile outsources the off-job training to the TAFE institute.

The group training company is a distinctive third-party institution in the Australian apprenticeship system, and its main responsibilities include :(1) directly recruiting apprentices or trainees, and then sending them to work in related enterprises; (2) undertaking the responsibilities of the employer, including wages, allowances, holiday subsidies, labor disaster compensation and other apprentice interests; (3) managing off-duty and on-duty training, and outsource off-duty training to TAFE institute.;(4) providing additional care and ongoing support to apprentices who have successfully completed their apprenticeship contracts (Australian Apprenticeships, 2019). By 2004, group training companies employ 14% of the total number of apprentices, and there are about 200 group training companies In Australia (Duncan, Phillip & Nic ,2004). In this model, the group training company pays the salary to the apprentice or trainee, while the enterprise pays the service fee to the group training company. This model solves the problem of small sized enterprises' difficulty in completing apprenticeship or trainee training alone and their unwillingness to take employment risks.

The objectives of group training are to :(1) create additional employment opportunities for apprentices or trainees by serving employers; (2) provide continuous employment and training to apprentices or trainees through rotation among multiple employers until employment; (3) improve the quality of apprenticeship training and expand the scope of training; (4) reduce management costs and risks of employing apprentices for employers (Australian Apprenticeships, 2019; ACIL ALLEN CONSULTING PTY LMT, 2014).

2.The History of Australian Group Training Apprenticeships

The concept of group training was developed in the 1970s by industry associations in the building and automotive sectors (NVCER 2001, p.16). In these industries, it is difficult for small scale employers to hire full-time apprentices because of the rapid growth of subcontracting and professional work. In this way, apprenticeships are recruited and hired by professional firms, which distribute them to different employers and provide sufficient employment and training for the apprentices during apprenticeship contract period.

To avoid losing skilled workers, the federal government is also considering financial aid for apprenticeships. In January 1973, the federal government began funding Apprenticeship through the National Apprenticeship Assistance Scheme (NAAS).

1981 the Group Apprenticeship Scheme was launched, with federal and state funding for the management of a non-profit Apprenticeship company (NVCER 2001, p.17).

By 1990, there were approximately 90 group training companies and 11,000 apprentices and trainees. Group Training Austrian (GTA) was established in 1991 as a national association for the association of non-profit Group Training companies. In the late 1990s, the government changed the funding from administrative grant to outcomes-orientation, named it the Joint Policy Program (ACIL ALLEN 2016, p.5).

In 2003, National Standard of GTO was introduced. The Joint Group Training Program (JGTP) replaces the previous funding Program. The group training company market also further opens, In 2004, group training company exists approximately 200. By May 2014, there were 133 training companies in the group, which decreased compared with 2004 (ACIL ALLEN 2016, p.15).

3.Review of Australian Group Training Apprenticeships

(1) Government funding

From the perspective of the development history of group training apprenticeships, the Australian government attaches great importance to the group training apprenticeships model and has always provided financial support to the group training companies. Under the Joint Group Training Program (JGTP), which began in 2003, funding is provided by the federal government and local state governments. In the 2013-2014 fiscal year, the federal government provided a $12.5 million, plus a total of a $23 million from state and territory governments (with the exception of NSW and Tasmania, where federal funds are managed by the Australian group training association) (ACIL ALLEN 2016, p.8).

Funds are administered mainly by the state government and mainly fund group training companies to hire and guide apprentices or trainees, and the distribution of funds is usually based on the start and completion of qualified apprentices or trainees hired by group training companies. Most of the group training companies are non-profit companies, and the funds obtained are mainly used for apprentice salary, allowance, holiday allowance and other expenses.

(2) National Standard for Group Training Organisations

Australia began to implement the national standards for group training companies in 2003 (Commonwealth of Australia 2006, p.1). The standard helps to supervise and improve the operation and financial planning of the group training company. The specific eight aspects of the standard include :(1) Systems for group training services including management of hosting; (2) Compliance with Commonwealth, State/Territory legislation and regulatory requirements; (3) effective financial management process; (4) effective management and record management process; (5) effective corporate governance; (6) access and equity; (7) the skills of GTO staff; (8) ethical practice. Group training companies must be registered in accordance with the standards to be eligible for federal, state and territorial government funding. Enforcement of this standard is carried out by state and territorial governments. The standard requires group training companies that receive government funding to conduct independent financial audits every three years. Only those that pass the audit are qualified to continue to operate and use a unified national LOGO for group training, so as to ensure the standardized and orderly operation for each group training company.

4.Outcomes of Australian Group Training Apprenticeships

(1) The number and proportion of apprentices

In the first few years of the group training apprenticeships model, the number of group training apprentices grew slowly. In the 1990s, the number of group training apprentices increased significantly, from 17,000 in 1995 to 38,000 in 2000, and the number of apprentices more than doubled. In 1995, group training accounted for 12.9% of the number of all kinds of apprentices, and 13.8% by 2000 as shown in figure below (Australian National Training Authority 2002, p.19).

(2) Hours of On-job training and the rate of apprenticeship graduation

The average on-job training time for vocational education students in Australia is 201 hours, and the average on-job training time for ordinary apprentices is 279, while the on-job training time for group training apprentices is 285 hours per person (ANTA 2001, p.24). Compared with that, the on-job training time for group apprentices is sufficient. 90% of the group training apprentices have completed on-the-job training and graduated from the employer (ANTA 2001, p.25). Compared with other kinds of apprentices, once the employment contract between the employer and the apprentice is terminated, the graduation of the apprentice will be affected. The rotation of apprentices among employers is the unique feature of group training apprentices. When the contract between the group training apprentices and an employer enterprise is terminated, the group training company will find a new employer for the apprentices and provide corresponding supporting services for the group training apprentices, which will be of great help to the employment of the apprentices.

Reference list:

Australian National Training Authority (ANTA). (2001). National Review of Group Training. Overview of group training operation.

Australian National Training Authority (ANTA). (2002). Report of the National Review of Group Training. Group training: a unique employment and training service. Retrieved from https://www.australianapprenticeships.gov.au/group-training

ACIL ALLEN CONSULTING PTY LMT. (2014). Report to Department of Industry. Review of JGTP & Group Training: The Joint Group Training Program and Role of Group Training. Retrieved from: https://www.ncver.edu.au/

Australian Apprenticeships. (2019, April 28).Group Training: What is Group Training?. Retrieved from https://www.australianapprenticeships.gov.au/group-training

Commonwealth of Australia. (2006). National Standard for Group Training Organisations. Australia: Department of Industry, Innovation, Science, Research and Tertiary Education

Duncan Macdonald,Phillip Toner,Nic Croce.(2004).Group training in Australia: A study of group training organisations and host employers. Adelaide,Australia: National Centre for Vocational Education Research (NVCER)

National Centre for Vocational Education Research (NCVER). (2001). Group Training Apprenticeship and Traineeships in Australia. South Australia, Australia:NVCER