Minutes of the 5 November 2015 Joint SDS and SFC Skills Committee meeting

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1 SFC/15/71* Agenda item December 2015 Unconfirmed Minutes of the 5 November 2015 Joint SDS and SFC Skills Committee meeting Key advice to SDS/SFC Boards Advice to SFC and SDS Boards Both SFC and SDS Boards should: On the Fair Work Convention Framework and the Development of the Scottish Labour Market Strategy item: note the points raised by the Committee, in particular: SDS and SFC should note the progress with the development of the Framework and that the main challenge for the Fair Work Convention will be to convince industry to invest in their people; and The need for caution around how the debate is framed (robust evidence versus morality) and the importance of differentiating from Investors in People. On the Update on National Apprenticeship Reforms across the UK: note the feedback of the discussion of the Skills Committee, in particular: That once the details of the apprenticeship levy have been confirmed that there will be a need to consider the impact in Scotland if there are different occupational standards in England. SDS Board should note: The Committee s concern about the potential diluting of the apprenticeship brand, as Foundation Apprenticeships start in senior phase therefore they are not strictly apprenticeships.

2 SDS Board should: On DYW Deep Dive Career Education Standard update: note the summary of the discussion of the Skills Committee, in particular: The need to ensure that the standard is blended into the work of DYW.

3 SC/16/Min 1 Agenda item xx 4 February 2016 Unconfirmed Skills Committee The twenty fifth meeting of the Skills Committee of the Scottish Funding Council (SFC) and Skills Development Scotland (SDS) was held at 12.30pm on Thursday 5 November 2015 at SQA Offices, Optima Building, 58 Robertson Street, Glasgow, G2 8DQ. Present: Officers: Lorraine McMillan (Chair) Paul McKelvie (Vice-chair) Dr Allan Colquhoun Doreen Davidson Sylvia Halkerston Vaughan Hart Rob Henthorn Professor Ewart Keep Donald MacRae Barry McCulloch Stuart McKenna Tricia Rainey Caroline Stuart Dr Ken Thomson Graeme Waddell John Kemp (SFC) Louise Lauchlan (SFC) Hazel Macdonald (SFC) Gordon McGuinness (SDS)

4 Observers and guests: Carroll Buxton (Highlands and Islands Enterprise) Mike McElhinney (Scottish Government) Moira McKerracher (UKCES) Paul Travers (SFC) Gavin Gray (SG item 5 only) Ken Edwards (SDS item 7 only) Apologies: Amanda Brown Dr Janet Brown Gordon Grant Linda Hanna John McMorris Craig Mahoney Douglas Mundie Professor Anton Muscatelli Grahame Smith 1. Welcome by the Chair and apologies The Chair welcomed members, guests and observers including new members: Dr Ken Thomson, as the new college Principal representative; Stuart McKenna, as the new Scottish Training Federation representative; and Tricia Rainey, a new industry representative. Apologies were noted as above. 2. Declarations of interest The Chair reminded Committee members of their responsibility to indicate if they had, or may be perceived to have, a conflict of interest under any item. 3. Minute of 27 August 2015 (SC/15/Min 3) The Committee received the unconfirmed minutes of the meeting of the 27th of August, which had been to both Boards with the advice endorsed. The Committee agreed the minutes as an accurate record of the meeting.

5 4. Chair s and Vice-Chair s business and matters arising (SC/15/19) The Committee noted this paper updating members on matters arising and work undertaken by the Chair and Vice Chair since the last meeting of the Committee. The Vice-Chair confirmed that further to the Committee s discussion at the previous meeting on the Scottish Government s Employability Consultation he had ed Mike McElhinney the Committee s recommendations. Mike thanked the Committee for their recommendations and gave a brief update on the current status of the consultation, advising that this would be presented to ministers in December. Members were informed that SFC s Strategic Plan has now been approved and will shortly be published on their website, at which stage the link will be circulated to the Committee members. The Committee reviewed the forward plan and the Chair asked that the STEM cross-cutting Skills Investment Plan paper be brought forward to the next meeting and confirmed that a paper will come to the April meeting to discuss the Spending Review. The Committee reviewed the advice tracker and were advised that the tracker is being refreshed and slimmed down to make it easier to use. As part of the discussion on the advice tracker the Committee discussed the role of industry within the Developing Young Workforce Regional groups and acknowledged that further communication is required to raise awareness of the groups with employers. The Chair asked for any information that is available on the current status of the regional groups to be shared with the Committee. 5. Fair Work Convention Framework and the Development of the Scottish Labour Market Strategy (SC/15/Oral) The Chair invited Gordon McGuinness to introduce Gavin Gray (Scottish Government) to present the item. Slides were presented to the Skills Committee outlining the following points on the Fair Work Convention: It was established in April 2015 and is an independent body but Scottish Government are providing the secretariat. The initial aim is to produce a Fair Work Framework by end of March 2016 which will:

6 o Articulate a practical blueprint which promotes a new type of dialogue between employers, employees and trade unions, public bodies and the Scottish Government; o Support Scottish Government s objectives of increasing sustainable growth and reducing inequality through the promotion of greater diversity, innovation and equality in the workplace; and o Understand business challenges in adopting Fair Work principles and offer help to support a progressive change. The Convention should support Scotland s skills and economic development agencies in proactively engaging businesses in Scotland to promote fair work, trade unions and an evidence-based approach in industrial relations with a view to maximising the potential for the endorsement and adoption of the Framework. The Framework will look to include progressive workplace policies to improve productivity and innovation, promote greater employee voice and commitment and better opportunities for employee development, skills development and lifelong learning. In addition, the following key points were outlined by Gavin Gray on the Development of the Scottish Labour Market Strategy and associated vision: A Labour Market that supports sustained economic growth and prosperity while ensuring work improves people's lives e.g. increasing innovation and productivity in the workplace; Moving away from low pay/low skill models to a higher wage/higher skills economy; The context for a range of activity including new employability services and Fair Work and; and Current challenges and a look forward to future opportunities and threats e.g. the need for better job deign and greater staff engagement. The Chair asked the Committee for comments. Points raised included: The challenge will be how to convince industry to invest in their people; Concern that the Framework is Investors in People badged in a different way. Scottish Government are already working closely with Investors in People but Fair Work is more about investment and innovation rather than badging;

7 The focus on how investment impacts on its bottom line but also benefits the workforce e.g. the rapid-changing job market impacting on skills needs and supply and demand; and The need to be careful how the debate is framed that the framework is based on robust evidence rather than just morality. 6. Update on national apprenticeship reforms across the UK (SC/15/20) The Chair invited Moira McKerracher from UKCES to present this paper. This was presented as a background to reforms ahead of a fuller discussion by the Joint Skills Committee in Spring The following key points were outlined by Moira: UKCES is currently responsible for the overall management and quality assurance of National Occupation Standards (NOS) and for commissioning frameworks based on them. The current policy position in relation to NOS and apprenticeships differs across the four nations: o Northern Ireland published its strategy for apprenticeships in 2014 and arrangements are in place to enshrine the key components in NI legislation; o Welsh Assembly will publish an implementation plan later this year, however informal feedback suggests there is unlikely to be significant change from current framework; o In Scotland there is a commitment to sustain existing arrangements for MAs and no major review of apprenticeships is planned at this stage; and o England is reforming its system for the development and delivery of apprenticeships following a major review. BIS is currently working on a growth plan for apprenticeships over the next five years. Expectations are there will be some announcements around these reforms in the Autumn Statement. The announcement of a new UK-wide apprenticeship levy on large employers is to be introduced in 2017 which will support all post-16 apprenticeship. The Chair asked the Committee for any comments. Points raised included:

8 Concern about the potential diluting of the apprenticeship brand as Foundation Apprenticeships start in senior phase and therefore are not strictly apprenticeships; The need to ensure there is an awareness of the impact of the levy on the different sectors; and If there are different occupational standards in England what will the impact be in Scotland? 7. Developing the Young Workforce Deep Dive Career Education Standard update (SC/15/21) The Chair invited Ken Edwards (SDS) to present this paper. The following key points were outlined by Ken: The Career Education Standard is one of a suite of three documents, along with Work Placements Standard and Guidance on School/Employer Partnerships; The standard is in response to Education Working for All and supports the entitlement for all young people to achieve positive destinations and recognises the role of key influencers in these journeys; The standard also sets out expectations for the different key groups such as parents and carers, teachers and practitioners, staff from SDS and employers; and The expectations of SDS in the standard are reflected in the revised Career Information, Advice and Guidance strategy, effective from 2015/16. This year all schools will have access to group activities and one-to-one work at each stage of the Broad General Education from the P7/S1 transition to S3; The Chair asked the Committee for any comments. Points raised included: Consider how to take the standard from school and into the workforce as a young person moves on; The standard is good support for Developing Young Workforce, with emphasis on the importance of the role of parents, but there is a need to ensure it is blended and not a standalone offer; Making sure pupils understand the importance of STEM subjects and the impact if they stop studying the subjects too early; Not only inviting employers and industry into schools but also taking primary pupils out into the industry environment; and Potential cross-over with enterprise and entrepreneurship.

9 The Committee s views will be included as part of future planning and action in testing the standard in 2015/16 and from 2016/17 when this becomes a universal offer. 8. SIPS Programme (SC/15/22*) The Committee took this item for noting and were advised that any queries/comments should be directed to Chris Brodie at SDS. 9. Innovation Centres Skills Programme update (SC/15/23*) The Committee took this item for noting and were advised that any queries/comments should be directed to Sophie Lowry at SFC. 10. Date of next meeting: Thursday 4 February 2016 in Edinburgh, venue to be confirmed The Chair thanked all members for their attendance and contributions to the discussions.

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