Manufacturing Skills Australia Foundation Skills Strategic Framework January 2012

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1 Introduction Manufacturing Skills Australia is committed to improving the sustainability and success of manufacturing enterprises. We know through research that adequate language, literacy and numeracy skills of the workforce are essential for this to occur. This strategic framework has been developed to provide a focus for our efforts around language, literacy and numeracy improvement for the manufacturing workforce. Aim To champion the importance of language, literacy and numeracy (LLN) issues to the manufacturing industry by influencing and advising enterprises, the vocational education and training (VET) Sector and government policy of the significant need to develop and enhance the core foundation skill levels of the manufacturing workforce. Structure of the Framework The framework is comprised of these items: Strategic Goals Change drivers vs goals matrix Attachment A Project proposals Attachment B Drivers for change Attachment C Strategic goals The framework includes five strategic goals: Strategic goal 1 To provide advice and influence enterprises, the VET sector, other education sectors and government policy Strategic goal 2 To support the identification of LLN needs within current and emerging workforce development strategies Strategic goal 3 To encourage manufacturing enterprises to develop a culture of lifelong learning for livelihood Strategic goal 4 To seek national partnerships for the development resources, including e-learning and print, designed to lift the foundation skills of the manufacturing workforce Strategic goal 5 To support current and future initiatives, such as the WELL program and the implementation of the Foundation Skills Training Package, within manufacturing enterprises Purpose The purpose of the Manufacturing Skills Australia (MSA) Foundation Skills Strategic Framework is to provide a comprehensive framework for MSA to: influence government policy and the VET sector emphasise the importance of LLN skills to industry and their relationship to increased productivity, innovation and sustainability Page 1 of 11

2 incorporate Foundation Skills initiatives into future and existing workforce development strategies provide specialist advice to enterprises and Registered Training Organisations (RTOs) and other VET service providers support and promote the development and improvement of Foundation Skills in the manufacturing industry develop new technology based LLN resources Target stakeholders The intended recipients to benefit from the Strategic Framework are the MSA stakeholders. This may include: enterprises potential industry entrants, trainees, apprentices and the existing workforce of the manufacturing industry, individuals changing career due to structural adjustment, entering or re-entering the workforce and workers from disadvantaged groups. Project proposals The framework includes 21 project proposals stemming from the strategic goals. The project proposals (see Attachment B) have been determined in line with the strategies to support the implementation of the Foundation Skills Training Package National Consultation Workshops/Final Report and Recommendations 1. Implementation activities and the determination of measureable outcomes have been considered and further details will be provided as required. The projects will be incorporated into workforce development projects and, where required, will be developed as discrete project proposals with the possibility of further funding. Definition of Foundation Skills The definition of Foundation Skills has been extensively and controversially discussed by multiple stakeholders within the Australian government, VET sector, education sector, unions and industry. The following definition is expected to be consistent with the National Foundation Skills Strategy for Adults, when published: Foundation Skills encompass both the Core Skills (of reading, writing, oral communication, numeracy and learning) described by the Australian Core Skills Framework (ACSF), and Employability Skills. Foundation Skills include language, literacy and numeracy (LLN). Foundation Skills exist on a continuum from very basic skills to highly-developed and specialist skills. 2 Guiding principles The Foundation Skills Strategic Framework is aligned to the principles of the MSA Strategic Vision 2015: Through bi-partisan leadership, we are the pre-eminent organisation in Australia fostering the skills once defined by the manufacturing sector, but now recognized as essential in not 1 MSA (2011) Strategies to support the implementation of the Foundation Skills training package 2 NQC paper on Foundation Skills in VET Products for the 21 st Century Page 2 of 11

3 only a vibrant, traditional and advanced manufacturing sector, but also in the development and sustainment of a growing resource sector, but also in the development and sustainment of a growing resource sector across Australia. This vision is being implemented through: working with industry to determine the current and future skill requirements of the industries and occupations we represent designing, producing and maintaining workforce development products, services and methodologies for our industries being the principle voice of industry in relation to workforce development needs The framework supports the combined Industry Skills Councils recommendations from No More Excuses 3 which stated: better identification of LLN skills of learners before training, and targeted funding to address identified LLN skill gaps the development of clear advice of LLN skill requirements to users of Training Packages the implementation of a strategy to develop greater national awareness of LLN issues including de-stigmatisation of LLN skill development an increased capacity in the VET system and all practitioners, to support the LLN skill development needs of learners and workers better targeted solutions for building the LLN skills of workers/learners Literacy levels within the manufacturing industry Data from the Adult Literacy and Life Skills Survey 4 showed that in 2006 over 45% of the manufacturing workforce had literacy skills at a level that was below the level required to function effectively (i.e. skill level 3). In the area of numeracy skills, over 50% of workers in manufacturing had inadequate numeracy skills. The area in which there was a major deficit was in the area of problem solving skills. Nearly 75% of workers in the manufacturing industry do not have adequate skills in problem solving. This is more than double the national percentage. The data also show that 45% of the manufacturing workforce do not hold a post-school qualification, compared to 39% for all industries. MSA believes that low LLN skills may be a strong contributor to this factor. 3 No More Excuses (2011) An Industry response to the language, literacy and numeracy challenge, p.49 4 Australian Bureau of Statistics Adult Literacy and Life Skills Survey, Summary Results. Reissued January 2008 from 2006 Survey Page 3 of 11

4 Attachment A Change drivers vs goals matrix Drivers of Change Strategic Goals 1. Changing workforce Increased need for high skill and high tech workforce X X X X X New generation of learners and an ageing workforce X X X X Encore careers and re-entry learners/workers X X X X 2. Rapid workplace changes The changing nature of the workplace and the need to develop a culture that supports learning and innovation Low productivity, low skills base and low levels of LLN in manufacturing X X X X X X X X X X 3. Critical skill shortages The critical need to address skill shortages within the manufacturing industry The challenge of increasing LLN skill levels within the existing manufacturing workforce Rapid increase in high technologies, digital media and broadband technologies X X X X X X X X X X X X X 4. Globalisation Increasing overseas competition and changing global markets X X Current and emerging need for industry to increase innovation to develop high tech, value add products X X X X 5. National approach The need for a nationally consistent approach to LLN skills development, training and assessment X X X X X The need to make foundation skills more explicit within MSA training packages X X Page 4 of 11

5 Attachment B -Drivers for change and project proposals 1. Driver of Change changing workforce Increased need for high skilled, high tech workforce New generation of learners and an ageing workforce Encore careers and re-entry learners Project Proposals MSA to: Develop and build relationships to form National Partnerships Advise and support RTO s to develop a range of contextualised e-learning and print resources to: o support the development of resources targeting Gen Y learners/apprentices/workers o support the development of resources targeting mature age learners/workers o support resources suitable for the workplace/on- site and national adaptation 2. Driver of Change rapid workplace changes The changing nature of the workplace and the need to develop a culture that supports learning and innovation Rapid increase in high technologies, digital media and broadband technologies Low productivity, low skills base and low levels of LLN in manufacturing Project Proposals MSA to: Raise awareness of the consistently low levels of LLN across the manufacturing industry Support and contribute to national awareness raising campaigns that seek to de-stigmatise low LLN skills Champion the benefits of increased LLN levels and corresponding productivity gains, increased innovation and workforce stability Actively promote the inclusion of literacy/ numeracy skill development across the manufacturing industry Actively promote the WELL Program 3. Driver of Change critical skills shortages The critical need to address skills shortages within the Manufacturing industry The challenge of increasing LLN skill levels within the existing manufacturing workforce Project Proposals MSA to: Provide advice and guidance to MSA Workforce Development Co-ordinators regarding LLN Advocate for and reinforce the inclusion of LLN skills development in both current and emerging Workforce Development projects Highlight and emphasis LLN awareness to enterprises as part of their Workforce Development Plan Provide assistance to specific projects where low levels of LLN could be a factor Page 5 of 11

6 4. Driver of Change globalisation Increasing overseas competition and changing global markets Current and emerging need for industry to increase innovation to develop high tech, value add products Project Proposals MSA to: Provide Government with qualitative and quantitative research data to support the identification of consistently low levels of LLN in the workplace Gain industry support to lobby government for additional funding to address specific LLN issues in the workplace Advocate for flexible funding models to address individual LLN skill development needs of individuals and enterprises Continue expansion of professional development initiatives for trainers and assessors within specific industries Trial, evaluate and identify effective models for the provision of LLN support and skill development within the MSA workforce development projects 5. Driver of Change national approach The need for a nationally consistent approach to LLN skills development, training and assessment The need to make Foundation Skills more explicit within MSA training package Project Proposals MSA to: Support the introduction of the National Foundation Skills Strategy Collaborate with the ISC Networks, Foundation Skills Networks, Industry bodies and State ITABS to reinforce the pending implementation of the FSTP Promote the FSTP to both public and private VET providers Continuation of mapping of MSA training packages to the ACSF Develop a consistent approach across all MSA training packages to ensure Foundation Skills are more explicit within Units of Competency Page 6 of 11

7 Attachment C Drivers for change Time to Act The endorsement of the National Foundation Skills Strategy by SCOTESE 5 in November 2011 and the current development of the Foundation Skills Training package 6, due for release in late 2012, provide a perfect opportunity for continued further action on this critical issue. There is now a broad ranging framework which can provide the nationally consistent approach that is required to commence the process of changing the mindset of enterprises towards LLN in the workplace. The problem requires many stakeholders to provide solutions to an ever increasing problem within the Australian manufacturing industry. The introduction of a public campaign specifically targeting adult literacy will assist in raising awareness within industry, as well as the general public, of the nationally low levels of LLN. This may have the potential to act as a platform for MSA to champion the benefits of LLN skills development for the workplace. Generational factors affecting the manufacturing industry The ageing population and mature age workers The manufacturing industry currently has the oldest average age workforce of any industry within Australia. Information from the Department of Education, Employment and Workplace Relations states: The ageing of the workforce is an issue facing the manufacturing industry. In 2010 the median age of workers within Manufacturing was 41 years. This is three years older than the median age for all industries. Some sectors within MSA s coverage (Petroleum and coal product manufacturing) had median ages that were up to nine years higher than the All Industries median age. Nearly 65% of the manufacturing workforce in 2010 was over 35 years old. 7 As many of the current workforce approach retirement, the rules are changing. Enterprises will have to adjust to new ways of conducting business, new government regulation and accreditation as well as high technologies in a changing marketplace. A number of enterprises may decide that this is just too much change and decide to close up their business or retire earlier than anticipated. A lack of workforce development planning across the manufacturing industries may have contributed to the inability of enterprises to either retain workers or develop and invest in their existing workers. Many older workers leave the industry when flexible working arrangements or reduced hours are not available, yet employers tend to avoid this alternative solution. 8, 9 Enterprises may need to consider skills transfer training from the current pre-retirement workers to the new and existing workers. The manufacturing industry may lose the expert knowledge of long term workers if they cannot manage the evolving global marketplace and pace of change. Mature age existing workers moving to supervisory roles and supervisors moving to management roles have also been the subject of concern, particularly regarding low level LLN skills. The MSA strategic framework has included this demographic for the purpose of providing support resources to assist workers in gaining a qualification as well as career progression, retention and extended participation in the workforce for mature age workers. 5 SCOTESE endorsement of National Foundation Skills Strategy Appendix 1 6 Foundation Skills Training Package accessed June Figgis, J 2012, Reskilling for encore careers for (what were once) retirement years, NCVER, Adelaide. 9 Consultative Forum on Mature Age Participation 2010, Summary of meeting 1, 18 February 2010, Australian Government, < ExpPlus/Documents/ConsultForumMt1Summ.pdf>. Page 7 of 11

8 Gen Y the new generation of workers/learners The highly discussed and publicised Gen Y enigma is another factor for the future of the manufacturing industry. Gen Y have grown up in an environment of high technology however, many are not reaching the LLN levels required to either gain entry or succeed within the industry. The Commonwealth government have developed a number of initiatives to tackle this problem including the introduction of Naplan 10 testing in schools. The outcomes of some of these initiatives will not be known until the next generation (Gen Z) of young people leave the education system. One of the immediate problems is that the VET sector is having increasing difficulty attempting to train and assess the Gen Y learners. The training system needs a new and innovative perspective to manage the particular traits of Gen Y learners. There appears to be limited understanding across the VET sector about the specific learning and communication styles of this target group. Gen Y constitute the first global generation, 11 and will be the future workers of the manufacturing industry. Enterprises, government and the VET sector may need to re-think current practices to be better equipped to both employ and train this generation. A view suggested by the Skills Australia A Roadmap for Prosperity) 12 publication states:.the digital age is transforming the way Australians live and work, with new millennium learners expecting learning to incorporate creative and innovative ICT as a matter of routine. Broadband developments will offer untold opportunities to more easily reach learners and enterprises. New approaches in testing, assessment and recruitment strategies may also be required to both attract and retain Gen Y workers. 13 Previous standardised skill assessment tools for employment entry are not always providing successful results. The testing and assessment processes may also need to be revamped to provide industry with the right person for the right job. The VET E-Learning Strategy 14 may provide the vehicle to deliver to 21 st century systems and learning tools: This strategy gives high priority to supporting individual participation in training and employment.targeted to developing e-learning approaches to improve the e-literacy, foundation skills and employability of individuals Part of the strategy to address skills shortages will be to seek industry partnerships to determine priority areas for Gen Y factors, as well as supporting the development of specifically designed resources for the new generation of learners. Changing nature of the workplace The pace of technological change is unprecedented and enterprises need skilled workers who are able to adopt new technologies quickly and to be able to problem solve and value-add through innovation. The rate of change has been so rapid that many manufacturers have not adjusted their business models, or invested in future growth. In addition, the high value of the Australian dollar and increased global competition are having an impact on the changing nature of the manufacturing industry. 10 National Assessment Program - Literacy and Numeracy (NAPLAN) 11 Gen Y Profile, p2. Queensland Tourism Industry Council Skills Australia Skills for Prosperity - a roadmap for VET, p.6-7, 13 NCVER- Apprenticeship Retention rates Furniture 14 National VET E-learning Strategy , p.8 Page 8 of 11

9 As manufacturing transforms itself into an innovative, high-tech, value add industry, workers are going to need higher level skills and the ability to participate in lifelong learning. ( ) The stigma of low LLN skill levels, may prevent workers to either seek or complete vocational training. Raising awareness of the critical need to assist workers to participate in LLN training for the workplace and convincing enterprises of the potential increases in productivity, will not be an easy task. A number of the Strategic Goals within the Foundation Skills Framework have been included to address these issues including raising awareness of the current problem and involvement in all workforce development projects. Enterprises within the manufacturing industry will require real life examples of positive case studies and evidence of productivity increases to assist with changing their current mindset. Structural adjustment The problem of low or under skilled workers remains a factor for the manufacturing industry. The lack of LLN skills can have an impact for low skilled workers who have lost employment due to redundancies, usually from structural adjustment. The workers may have experienced long term employment with one company, developed skills in a particular role and possess other essential employability skills. However, without an acceptable level of LLN, or formal accredited qualification, they may find it difficult to gain other employment to re-enter the workforce. The recruitment processes can be extensive and often require higher levels of skill in communication, writing and digital literacy. If workers experience redundancy at mature age, they may be inclined to withdraw from participation in the workforce. Without basic levels of LLN, they may be reluctant to enter into vocational training and their opportunities for re-employment may remain very limited. This particular demographic may require a different approach to continue participation in the manufacturing workforce. The development of cross-sectoral skill sets and increased recognition of prior learning before redundancy is finalised, may provide a starting point. Ongoing LLN skill development, reskilling and career counselling may assist in providing a pathway back to employment. Growth, innovation and the future of manufacturing One of the primary factors that emerged from the Future Jobs Forum in October 2011, was the need for innovation within the manufacturing industry. Currently the industry is experiencing a shortage of innovation management capabilities. 17 The current workforce require up skilling in innovation management and high technology production structures to produce goods for the 21 st century and the digital age. Enterprises will need to foster a workplace culture that encourages and rewards innovative products and practices, and supports creativity, entrepreneurship, initiative and drive. This, in turn, may act as a vehicle for the development of commercially viable products with a globally competitive edge. This view is supported by the Future Manufacturing Industry Innovation council s discussion paper on Trends in manufacturing to Australia s manufacturing future lies in high technology, high value-add, high-skill manufacturing. 15 New South Wales Business Chamber,2011 Manufacturing futures released April 2011 pg Future Manufacturing Industry Innovation Council, 2011 Trends in manufacturing 2020 A foresighting discussion paper released September 2011 pg NSW Industry response document/ nov Future Manufacturing Industry Innovation Council, 2011 Trends in manufacturing to 2020, a foresighting discussion paper released September 2011 Page 9 of 11

10 The Foundation Skills Strategic framework provides support for industry through involvement in workforce development planning, influencing enterprises to up skill their workforce to meet the challenges to succeed in domestic and overseas markets. The VET sector will be supported through RTO support to produce contextualised resources and professional development opportunities to increase expertise and improve skill levels. Possible barriers to change Resistance and lack of knowledge from the manufacturing industry regarding the effects of LLN on productivity levels may prove to be a barrier from enterprises. There is a need to provide enterprises with current and relevant data, successful case studies and examples of productivity increases, reduced wastage, reduced staff turnover and greater business profitability. The high Australian dollar, increased global competition and current skills shortages are current challenges for the manufacturing industry. Enterprises may be reluctant to invest in their workforce when they are operating in a changing marketplace. Workforce planning advice and incentives may provide a new perspective for enterprises to plan for the future. The VET sector and LLN practitioners may also prove to be resistant to change. The sector currently has an ageing workforce, particularly traditional trade teachers and LLN practitioners, and may struggle to face the challenges of new technologies and a new generation of learners. This has been considered within the Foundation Skills Strategic Framework with the provision of personal development workshops and providing support to RTO s for the development of resources to assist in training activities and LLN skill development. The low levels of LLN can be referred to as the hidden problem. Enterprises may not support LLN skills development if it is not perceived to be a workplace issue. The increase in overall LLN skills for the workforce can be promoted as a catalyst to facilitate workforce and quality improvement....many workers and businesses do not recognise language, literacy and numeracy as a skill issue. Some workers just get by and others may actively disguise communication issues for fear of discrimination. 19 De-stigmatising low LLN skills will assist to create a positive learning culture within enterprises. The Foundation Skills Strategic Framework will incorporate active promotion of workplace LLN utilising the WELL program and providing guidance on LLN support for MSA workforce development strategies. MSA will champion the concept of productivity increases through workforce development and investment in LLN and skills development. The Way Forward Successful implementation of the Foundation Skills Strategic Framework will provide to MSA stakeholders: the establishment of a leadership role to champion the effects of low LLN skills levels and their effect on productivity levels the instigation of a culture change to lifelong learning for livelihood the development of high quality e-learning resources to embrace new wireless technologies 19 Skills Australia/Skills for prosperity-a roadmap for VET, 1.4 p.25,may 2011 Page 10 of 11

11 active involvement in workforce development planning by industry professional development services delivered to the VET sector to strengthen and expand LLN skills and knowledge provision of increased support and advocacy for the existing WELL program by enterprises within manufacturing. Conclusion The overall responsibility for raising the LLN skill levels of the manufacturing workforce lies with all stakeholders. A nationally consistent approach from industry, government, the VET sector and LLN practitioners will be required to generate a culture change and accelerate LLN development. The drivers of change form the basis of the project proposals as they have been well documented as the most significant factors affecting the Australian manufacturing industry. To succeed within the global economy, manufacturing enterprises will need to understand the necessity of increasing the LLN skills of their workforce. The Foundation Skills Strategic Framework has been developed to deliver: a blueprint with specific strategic goals to initiate further projects in priority areas and; a supporting mechanism for the workforce development planning to identify the skill requirements of the existing workforce an increased national awareness of the low LLN skill levels Current funding models and existing programs may need to be reviewed to incorporate the inclusion of Foundation Skills across the VET sector. The Framework will provide MSA and its stakeholders with a substantial basis that can be enhanced and expanded. If necessity is truly the mother of invention, then the improvement of foundation skills may be the catalyst the manufacturing industry needs, and the global economy demands, to foster innovation, invention, growth and perhaps, survival. -END- Page 11 of 11