1. TAFE NSW Teachers Association
Reservation on
Educational Revolution:
The future for VET
To the Ministry of Education
2007

2. It is 2007
What is happening?

3. Rudd’s message
“Education is our future, a key to being globally competitive”
“Our investment in human capital is essential for creating
an innovative, productive workforce that can adapt to a rapidly
changing world”
Rudd, 2007, Education revolution, p.4

4. The Battle Plan
Delivering Skills for NSW Strategic Plan for
Vocational Education and Training
2008-2010

5. The Vocational Education and Training (VET)
Strategic plan for 2008-2010
Will drive training development in NSW by
 Increasing Workforce Participation
 Building Skills to Support Economic
Development
 Increasing Skills Utilisation
p.3

6. Delivering Skills for NSW
Strategic Plan for vocational Education and Training
2008-2010
Challenges ahead
 Lagging behind our international competitors
 The population is ageing, reducing the number
of young people entering the work force
 Skills shortages are now a feature of the
business landscape
p.4

7. Delivering Skills for NSW
Strategic Plan for vocational Education and Training
2008-2010
The training sector in NSW will be driven by three policy
principles:
 Public investment must be highly targeted to areas of
greatest need and impact industries, population groups
and sub-regions
 Industry and individual investment must be built up
through partnerships
 New models must deliver the right skills to the right
people at the right time

8. Delivering Skills for NSW
Strategic Plan for vocational Education and Training
2008-2010
Policy Goals
Goal 1: To Increase Training Participation
Goal 2: To Improve Training Responsiveness
and Relevance
Goal 3: To Achieve Effective Training
Management

9. In agreement
Delivering Skills for NSW Strategic Plan for
vocational
Education and Training 2008-2010
clearly recognises
In a highly skilled and knowledge based society
there is an identifiable skills’ gap on the
industry landscape
p.4

10. Our argument
VET and industry must design and implement
new training models
– for the right skills
– for the right people
– at the right time
– with a focus on quality and consistency

11. Background: unpacking the challenges
Economic Productivity
Human Capital Investment as a Driver of Productivity
•As teachers we applaud the Education Revolution and look
forward to helping build a highly skilled workforce.
•Research shows that a small increase in the workforces
education leads to economic growth
•Skills increase the rate of worker’s output, innovation
through fostering absorption and further development of
technologies (Rudd 2007)

12. Background: unpacking the challenges
Fulltime, Part-time and the Skills Gap
Australia’s population is approximately 21,000million
10.3 million employed
72% fulltime and 28% part-time
Steady decrease in full time employment since the early 1990’s. By
comparison, there has been a larger increase in part- time
employment.
One may ask…is there also a correlation between the widening
skills gap and the move away from the security of fulltime to part time
employment? This may be a question to be revisited in years to come.
Bureau of Statistics 2006-2007)

13. Background: unpacking the challenges
Drive to increase Part-Time over Fulltime Teachers
 Cost effective in comparison to full-time
 Less union intervention – perceived conflict of interest with full-
time
 Variety of skill level
 Relevance
 Authenticity
 Flexibility
 Strategic alliances to industry
 Enthusiastic (mostly)

14. Background: unpacking the challenges
The Ageing Population
The ageing population will pose particular problems for workforce
participation and productivity.
Research shows that by boosting the levels of educational
participation, people with higher educational attainment are:
more productive
participate in the workforce at higher rates
Whatever their age!
Source: ABS Census 2006 data

15. Workforce participation by higher level of qualification
by age
Source: ABS Census 2006 data

16. Background: unpacking the challenges
Ageing work force
 Employment in the age group of 45 years and above is projected
to increase annually at the rate of 2.4% per year,
 Compared with 1.6% for the employment growth for young
persons in the age group of 15-24 years
 The share of mature aged workers is expected to increase by
38% by 2010
 The 25 to 45 year olds age group is expected to decline by 0.5%
per year between 2005 and 2010. This is of concern.
(NIEIR 2005, p13)

17. Background: unpacking the challenges
Increase workforce participation:
In order to increase workforce participation and reduce the social
costs of long term unemployment it is imperative to develop skills
throughout our working life by:
•Encouraging early entry into training for school students and school
leavers
•Providing skills for those not currently in the workforce
•Encouraging existing workers and those wanting to re-join the
workforce to attain an higher level of skill through training
Note: The Education Industry is our third largest contributor to GDP
(NIER, 2005)

18. Background: unpacking the challenges
Quality Education
Will increasing the higher level of vocational qualifications create higher skill
levels as older workers are replaced
In the rush to achieve a higher level to replace those retiring, will the
breadth and depth of learning will be sacrificed and number of hours
reduced?
It is our concern that RTO’s will pressure teachers to lower standards as
contestable funds are linked to completion rates. Will the ‘limbo ‘stick be
lowered?
It is also our concern that this will not be QUALITY
monitored effectively.

19. Background: unpacking the challenges
Q u a lit y or $ $ $ $ $
$ $ $ $ $ flexib
ility
Q u a lit y
contest e ncy
deliv
ability consist
e ry performan
hou ce
rs ity
e aut hentic
valu suff
icie
access n cy
questionable auditing - emphasis on correct a bility
paperwork instead of quality teaching

20. Evidence of our need for the revolution
 National investment in education in Australia has not been keeping up with
the rest of the world.
 Australia is the only nation that has cut its public investment in tertiary
education
 Other nations increased public investment by 48%
 Australia’s reduced by 7%
 In 2006-2007 Australia productivity growth fell behind the OECD
(Organisation for Economic Co-operation and Development)
 Out of 30 countries we are 18th lowest in education spending
Rudd, 2007, Education revolution

21. Evidence of our need for the revolution:
Battle Plan
2007-2008 budget
Realising Our Potential package
Will the funding be targeted at
 the right skills ?
 at the right time?
 to the right people?

22. Evidence of our need for the revolution:
Repercussions of funding: Completion rates
Despite almost a 40% increase in the number of recruits
Australia has a steady decline in the proportion of apprentices who finish training
and receive a qualification
Latest completion rate estimates for VET qualifications
Cohort Commencing in Projected
qualification
completion rate (%)
Students enrolled in
AQF qualifications
2008 28
Full-time students
aged 25 years and
2008 37
under enrolled in
AQF qualification
A fair deal 201 1
:

23. Evidence of our need for the revolution:
Repercussions of funding: Completion rates
Before commencing an apprenticeship the attitude
‘hard work, l pay and bad conditions’
ow
If the deal is fair, apprentices are willing to trade off
 low pay, low status & repetitive work
If they believe they will be delivered a
valued trade qualification

24. The message Teachers hear
From Employers and students:
 Day release to Tafe is inconvenient
 Takes them away from the work place
 A necessary evil
 Out of date- not relevant to the context of their
work

25. The message
“The Austral Apprenticeships system wil require significant
ian l
improvement to performance,
such as retention, compl etion outcomes
and its impact on
productivity and innovation,
if Austral is to respond effectivel to the chal enges
ia y l
of competing in a gl obalmarketpl ace.”
How ?
A fair Deal 201 1
,

26. Submission
Economic imbalance in Australia
VET is the mantra that is called upon to
react to the imbalance

27. Submission – the funding
 In the budget this year, an extra $6 million to
fund the National Skill Shortages Strategy in
2005-06
 We require a proportion of that funding
 We will collaborate with industry to achieve the
Strategic Plan objectives

28. Submission
Our Objectives
 Increasing workforce participation
 Building skills to support economic
development
 Increasing skill utilisation

29. Submission -
To increase workforce participation
 promote early engagement with training
 Focus marketing towards major target groups
(the unemployed, older workforce) to
encourage participation

30. Submission-
To build higher level skills to support economic development
 Encourage flexible education to fit with working life - evening,
weekend courses
 Develop incentives to complete higher-level qualification –
promotion, financial, more prospects
 Recognition of Prior Learning
 Embrace new technology

31. Submission -
To increase skill utilisation
 Engage with the community to ensure that the
relevant training will lead to job opportunities
 Ensure that real-life/‘on-the-job’ training is
integrated
 Industry to commit to training employees
 VET to ensure that training meets industry
requirements to ensure participation and
employment

32. The Vocational Education and Training (VET)
Strategic plan for 2008-2010
For the right skills …. For the right people…
At the right time !