WHY APPRENTICESHIP? An Employer FAQ

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1 WHY APPRENTICESHIP? An Employer FAQ Being a registered training agent brings many responsibilities but also many benefits. The following are some commonly asked questions for employers considering participating in a State of Oregon registered apprentice program. If your question is not covered below, please feel free to contact the PCC Apprentice Administrator at (971) or apprenticeship@pcc.edu. We look forward to working with you! 1. How do I become a registered training agent? Employers who are interested in participating in a registered apprentice program must apply with the local apprentice committee operating a program in that particular trade. Employers who are approved by a committee to provide training are called Training Agents and can be registered with the State of Oregon after committee approval. 2. What are the benefits to me, as an employer, to becoming a registered Training Agent? There are a number of broad benefits that employers enjoy when they become registered training agents. As a registered training agent, you will be participating in a structured training program that increases your employee s job skills and adherence to safety standards. As registered apprentices, your employees will hold a registration card from the State that allows them to legally obtain electrical or work experience hours toward a journey card and/or electrical license in the State of Oregon. Employees in apprentice programs show increased morale and company loyalty. An active apprentice program with training benefits and regular wage increases help employers recruit the best employees. Expenses paid by training agents to participate in the program and/or subsidize apprentice related training costs are typically recouped in worker safety, worker competence and worker retention. Apprentices that successfully complete a registered apprentice program and pass a license exam (as applicable) can train other apprentices to assure your company creates and maintains a stable supply of licensed or journey level employees. 3. Who governs my participation in a registered apprentice program? As a training agent your company and your apprentices are governed by an independent body called a Joint Apprenticeship Training Committee (JATC). Your application is submitted to the specific committee that covers the trade in which you are training apprentices. Your JATC is registered with the State of Oregon through the Bureau of Labor & Industries (BOLI) and managed specifically by the BOLI Apprenticeship and Trades Division (ATD). They are required to follow all of the state laws and regulations that govern apprenticeship. In Oregon, the Oregon Apprenticeship & Training Council (OSATC) has oversight authority over apprenticeship. The Council is comprised of 10 members representing labor, management and the general public. The Council regulates apprenticeship committees, approves new programs, enforces state and federal law, establishes policy and approves program requirements such as standards, selection methods and affirmative action. Plans. The Commissioner of the Bureau of labor and

2 Industries is, by statute, the Chairperson. The Council can dissolve committees who fail to comply with federal and state law. The Bureau of Labor and Industries, Apprenticeship & Training Division provides the day to day operations of the Council. 4. What are my responsibilities as a Training Agent? Training Agents make a commitment to provide on-the-job training according to approved industry standards, supervise the apprentice according to the ratio approved in the industry standards and adhere to policies established by the State or the Committee. Training Agents should be fully committed to the goals of the apprenticeship program and help facilitate apprentice participation and access to related training classes. Training Agents must fairly evaluate apprentices, make recommendations to the Committee regarding advancement of an apprentice and keep appropriate records documenting apprentice advancement. The Training agent must pay the apprentice according to the standards and participate in the committee s annual wage survey. Training agents agree to attend committee meetings with apprentices if needed to discuss disciplinary issues. Training agents must treat apprentices fairly and follow the requirements of the industry standards and policies of the committee. 5. What are industry standards? Most commonly referred to as the standards they are an agreement between the committee and the Council on the operation of the training program. The standards define the minimum qualifications for applicants, the geographical jurisdiction of the program, the work processes (hours and type of training) for on-the-job training, the hours and subjects of related training, the average journey wage and the wage progression, the supervision (ratio) requirements and the responsibilities of the parties. The committees decide the details of the program operation and must obtain approval from the Council. Committees must operate the program s as approved in the standards. The committee you are interested in will provide you with a copy of the standards. 6. What are committee polices? Committees are required to adopt policies for the operation of the program. These policies define how the committee will handle various aspects of the program. Training agents are required to follow committee policies as well as the standards. The committee will provide a copy of the policies. 7. Who makes up the Committee? The committees are comprised of an equal number of employer and employee representatives. The committees are the heart of the apprenticeship program. They actually operate the program and decide on the many facets that make up the program. The committees are responsible for assuring that applicants have an equal opportunity to be selected for a program and that apprentices have every reasonable opportunity to succeed in the program. Most committees hire an administrator or coordinator who is

3 responsible for the day to day operation and record keeping. This committee partners with Portland Community College to provide these services. 8. What is an apprenticeship or registration agreement? It is a formal agreement for training between the committee and the apprentice. Once approved as an apprentice, the agreement is signed and forwarded to the Apprenticeship and Training Division. The Division registers the apprentice and assigns an agreement number. That number will be used by the state to identify the apprentice for record keeping purposes. 9. Are their special records that training agents are required to keep? Apprentices are required to report their hours to the committee on monthly progress reports (MPRs). The training agent must verify the apprentice did work the hours that are reported. The training agent can use the form to evaluate the apprentice s progress. Committees may have other reporting requests of training agents. 10. How are administrative costs of operating the program paid? Training Agents pay a monthly fee of $75 per apprentice, per month to cover the expenses related to administration of the program. 11. How long does a Training Agents pay the administrative fee? Training Agents pay the fee as long as an apprentice is in the program. Apprentices are in the program until the date of the meeting at which they are officially completed by the Committee. This means that even if an apprentice has completed their coursework or has been referred to exam, until they have passed their exam and been completed, they are still in the program and their Training Agent is responsible for the monthly apprentice fee. In some cases, an apprentice will lose their apprentice status before finishing their program due to a voluntary request from the apprentice or disciplinary action by the Committee. In these cases, a Training Agent will stop being billed the monthly apprentice fee in the month immediately following the date of the meeting at which the action was taken. 12. Can the training agent charge the apprentice for the administrative costs associated with the training? No. The training agent or committee cannot charge the apprentice for any costs associated with the operation or administration of the program. 13. How are apprentices paid? An apprentice is a full-time employee of your company who is earning while learning. Apprentices are paid by their employer. However, the starting wage and wage progression which an apprentice is paid is determined by the policy of the governing committee and approved by the state. The wage is an average determined by a survey of all Training Agents that are a part of the program. A key component of any apprentice

4 program is the apprentice ability to move progressively through periods. Each time an apprentice has earned enough on the job training (OJT) hours and Related Training (RT) hours in the classroom, and are in good standing with the Committee, they are eligible to move forward into the next period and earn a higher wage. By participating as a registered training agent, the employer agrees to adhere to a progressive wage scale that provides a minimum starting wage (usually between 50% and 60% of an average journey worker wage) and subsequent wage progressions based on that average journey worker wage for the trade. The training agent may pay more than the wage rate listed in the standards but may not pay less. The only exception is if an employer has a collective bargaining agreement. In that case, the employer must provide the committee with a copy of the bargaining agreement which supersedes the committee wage rate. 14. Where can I find these rates? The wage rate, hours progression and percentage are listed in the Standards of the Committee. 15. Am I required to pay employee benefits? Unless there is a requirement to pay benefits pursuant to a collective bargaining agreement or other employment contract, there is no requirement to provide apprentices benefits such as medical, dental, sick leave, vacation, etc. However, apprentices must all be treated equitably so if your firm provides benefits to apprentices, they must do so for all apprentices according to your company policy. 16. Who pays for related classroom training? There is no requirement for employers to pay for related training expenses including tuition, books, lab fees and required supplies. However, most training agents do subsidize related training expenses as a way to recruit and retain apprentices. Many employers find that the costs associated with this initial investment are re-paid many times over in increased worker retention, worker effectiveness, workplace safety, and overall morale. Many training agents have contractual agreements with apprentices that require successful forward progress in the program and/or continued employment after program completion as conditions for subsidized related training expenses. The specifics of these arrangements vary widely from employer to employer. 17. How are apprentices selected? Apprentices are selected by the employer from an internal pool of existing employees. Typically, committee standards will require that an apprentice have been employed by the training agent for a certain amount of time prior to being selected as an apprentice. Apprentice selection must adhere to the committee s requirements for equal opportunity and the committee s affirmative action plan. Additionally, once a training agent registers its 5 th apprentice with the committee, that training agent must submit their company s affirmative action plan to the committee as required by the state. 18. What happens if the apprentice is not working out? An apprentice works at the discretion of their employer sponsor. Training agents are not required to keep apprentices who are not progressing or who have poor or offensive

5 work habits. Problems should be documented and reported to the committee. A training agent can terminate an apprentice for legitimate job related reasons. A training agents should make every reasonable attempt to help the apprentice correct problems. Additionally, employment with a company is not necessarily contingent upon apprenticeship. Depending on company policy, an employee may leave an apprentice program and still remain an employee of their company. 19. What is the probationary period? Each apprentice is required to complete a probationary period that is established by the committee, approved by the state and is part of the standards. Probationary periods typically cover the first term of apprenticeship. If the apprentice is experiencing problems and is not making progress, the committee can cancel the apprenticeship agreement and terminate the apprentice from the program. After the probationary period the apprentice can only be terminated from the program for just cause and the apprentice has certain appeal rights. Termination of their apprentice agreement does not necessarily impact employment status. 20. Can Training Agents address the Committee? All apprentices and Training Agents are entitled to address the Committee at any meeting. Requests must be made in writing at least 10 business days prior to the meeting in question. The Committee meets at the Portland Community College Swan Island Trades Center. 21. Can a training agents be registered with more than one committee? A company may become a registered training agent for multiple JATCs but they must fill out a new application for each JATC. 22. How many apprentices can one company have? A registered Training Agent may have as many apprentices as they can legally supervise. Each Committee sets standards for the ratio of apprentices to journey workers. As long as these ratios are met, a company may add apprentices. For each new apprentice, a training agent is not required to re-register with the state but must sign a new fee agreement and application for that specific apprentice. 23. Where can I learn more? If you have any questions about this committee or registering a new apprentice please contact the PCC Apprentice Administrator at (971) or apprenticeship@pcc.edu. If you need information about registered apprenticeship in Oregon go to