Thank you, Mr. Chair, co-chairs, and members.
I'm very pleased to have been invited to appear here today in relation to your study on economic opportunities for young apprentices. I will provide you with some context on the automotive repair and service industry.
“Performance Driven”, the 2009 labour market research report commissioned by CARS Council, included information regarding apprentices in the repair and service industry. Although the study is now a bit dated, I will provide you with some highlights that are relevant to your research initiative.
Regarding recruitment and retention of apprentices, 62% of employers had up to four apprentices and 31% of employers did not currently employ any apprentices. Of the firms who employ apprentices, 58% experienced revenue growth in 2008, and of those who do not employ apprentices, only 49% saw revenue growth that year.
At the time of the study, only 30% of firms who employed apprentices reported using government programs and tax incentives related to apprenticeship, and 9% did not know such incentives existed.
According to discussion group participants, firms that did not recognize the contribution that apprentices make, or that found them insufficiently job ready, were those who chose not to employ them.
The Canadian Apprenticeship Forum conducted some very useful research about the return on investment for skilled trades employers, and determined a benefit-cost ratio of $1.69 for automotive service technicians. The CARS Council has promoted this to industry employers in addition to the communication efforts of CAF.
On opportunities for apprentices, over 66,000 repair and service establishments employ an estimated 306,000 employees. The proportion of businesses earning $1 million or more in annual revenue jumped from 23% in 2005 to 33% in 2009. The cost of diagnostic equipment and the supply of qualified new hires are the barriers to growth and profitability most often cited as having an extreme effect. Nearly all sector employees work full time, an average of 42 hours per week.
The success of apprentices being able to complete their training and integrate to the workforce is impacted by their expectations of the job, the skills in demand, and their ability to continually upgrade their skills in response to new technologies.
Here are some points to consider:
One, current labour market data is needed so that young people are geared towards appropriate local opportunities. Note that the last labour market study for the automotive repair and service industry was conducted in 2009. Given the economic environment of the past few years, it is recommended that new data be collected for informed decision-making. Due to HRSDC's decision to eliminate infrastructure funding for sector councils, the CARS Council will not be in a position to undertake this work in the future on behalf of the repair and service industry.
Two, a thorough awareness and understanding of the current demands of industry occupations, new technologies, and the skills impact is needed. This information should be researched and updated at regular intervals and shared with the education and training system.
Three, up-to-date labour market data and technology information needs to be connected to the education system. This connection does not always happen automatically even if the information is available.
Four, employers and educators need to connect more at the local level. Educators often need assistance in showing more relevance to what is being taught in the classroom. Employers have the ability to show how learning is applied in a workplace setting, but the challenge is that they do not have time to do this. However, connecting educators to employers can help build more relevance to the students’ learning. Teachers are the experts at this and sometimes just need the opportunity. Students who see how their learning is applied can become more engaged and be better prepared when entering an apprenticeship.
Five, parents are a tough audience but are also the biggest influencer. The more messaging to this audience about the value of skilled trades people, the better.
Six, continued emphasis on the importance of essential skills as the foundation of all future learning is needed. There is an excellent example of how a post-secondary training program has integrated essential skills assessment and development to their motive power program and has raised awareness among employers in the community. Students are assessed and are provided opportunities to improve essential skills. Local employers request evidence of the students' essential skills when providing placements. This pull by employers provides incentive for the students to take more care to develop their essential skills, which prepares them better for lifelong learning once employed.
Seven, the Working in Canada website would be a natural fit for industry-related labour market data, skills requirements, links to skills assessments, and employers seeking apprentices. There are also good sites, such as www.apprenticesearch.com, that may be a consideration when further developing the WIC.
A national approach in leadership is worthwhile when examining economic opportunities for apprentices in undertaking approaches to connect young people to the skilled trades and those employers. Coordination of the above-mentioned items nationally is a worthwhile endeavour to support apprentices going forward.
I hope this information is helpful to your study. I will be pleased to answer questions.