Indigenous workers in the manufacturing and automotive industries

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1 Indigenous workers in the manufacturing and automotive industries In November 2008, the Australian governments agreed to work towards six clear and specific targets to significantly reduce the gaps that exist between Indigenous and non- Indigenous Australians. One of these targets is: Halve the gap in employment outcomes between Indigenous and non-indigenous Australians by Characteristics of Australia s Indigenous population Australia s Indigenous population comprises of 2.5% of the Australian population. Unlike the general Australian population which has an annual growth rate of approximately 1.5%, the Indigenous population is expected to grow at a rate of 2.2%. Another significant characteristic of Australia s Indigenous population is its age. The median age of Indigenous Australians is 21.5 years, creating a potential workforce that is younger than the general population. New South Wales and Queensland have the highest population of Indigenous Australians with nearly 60% of all Indigenous people living in these states. Western Australia and the Northern Territory account for a further 25% of the population. The majority of Indigenous people (64%) live in major cities and regional areas. When looking at the states and territories, the Northern Territory had the highest proportion of its population who were Indigenous Australians (32%) 2. MSA s Indigenous employment project 3 In 2009, MSA contracted the Aboriginal Corporation for Employment and Training (ACET) on the mid-north Coast of NSW to run a project that provided opportunities for Indigenous Australians to gain skills and employment in the Marine Industries. This project was funded by the Department of Education, Employment and Workplace Relations (DEEWR). As a result of this project, 11 Indigenous Australians undertook training in marine craft construction and related maritime areas and subsequently found employment in the marine industry. A further 16 Indigenous job seekers have been placed into training with the aim of receiving minimum Certificate II accreditation. Some of the key outcomes from the project were: The need to identify an industry sector in which there could be multiple employment opportunities for Indigenous Australians Identification of the need and funding for pre-employment programs that produce experienced individuals and provide useful resources for community organisations Identification of the need for a more targeted approach when canvassing all the options for a particular area (e.g. employment, training and possible candidates) 1 Australian Government, Prime Minister s Report 2010 Closing the Gap 2 Australian Bureau of Statistics Census of Population and Housing Information from this project is not publicly available August 2010 Page 1 of 11

2 Identification of the skill needs of prospective employers and targeted training to meet those skill needs The support of mentors for the successful transition from school to work for Indigenous people The project, while successful, also identified the need for further research and the development of a model that could further enhance the successful transition to work for Indigenous people. Australian statistics Indigenous employment The Australian governments have set a target of reducing the gap between Indigenous and non-indigenous Australians from 21.2% in 2008 to 10.5% in Employment data relating to the employment of Indigenous Australians in the manufacturing and automotive industries is only available from the 2006 Census. The most recent data from the Australian Bureau of Statistics (ABS) relating to the labour force characteristics of Indigenous Australians provides general information on a state level for the year A summary of this information is provided in the table below. State No. Employed Unemployment rate (%) Participation rate (%) New South Wales 44, % 54.4% Victoria 10, %* 55.0% Queensland 48, % 61.8% South Australia 8, % 52.0% Western Australia 19, % 49.6% Tasmania 8, %* 69.0% Northern Territory 19, % 48.0% Australian Capital 1, %* 65.8 Territory Source: ABS 2009 Labour force characteristics of Aboriginal and Torres Strait Islander Australians, Estimates from the Labour Force Survey 2009 *estimate is subject to sampling variability too high for most practical purposes The employment gap between Indigenous and non-indigenous Australians varies from state to state, with the Northern Territory (34%) and New South Wales (27%) exceeding the national average. The Australian Capital Territory had the lowest gap (9%) 5. In 2006, Indigenous Australians made up approximately 4.5% of the manufacturing workforce. Nearly 50% of Indigenous workers employed in manufacturing were working in the major cities, with another 27% employed in manufacturing businesses in inner regional areas. These statistics reflect both the highest density locations of manufacturing industry and the residential location of most Indigenous Australians. Data relating to the automotive industry specifically is not available from the ABS. 4 Australian Government, Prime Minister s Report 2010 Closing the Gap 5 Australian Government, Prime Minister s Report 2010 Closing the Gap August 2010 Page 2 of 11

3 8% of Indigenous Australians were employed in manufacturing according to the 2006 Census, making manufacturing the fifth highest employer of Indigenous people. For Indigenous men, manufacturing was the third largest employing industry (12%) after Public Administration and Safety (18%) and Construction (12%). Manufacturing accounted for 10% of Indigenous employment in major cities and inner regional areas, making it the largest employing industry in those areas 6. Labour force participation Labour force non-participation is a major issue that needs to be addressed in improving Indigenous employment outcomes. In 2008, 38.5% of the Indigenous working-age population did not participate in the labour force. There were several reasons for the low participation: location lack of culturally relevant training and employment programs employer attitudes job retention health problems 7 Indigenous education and training In 2006, 25% of Indigenous Australians 15 years of age and over reported having a nonschool qualification. In comparison 47% of non-indigenous Australians reported having a non-school qualification. One of the factors that appears to impact on the uptake of nonschool qualifications is location. Indigenous people living in major cities were more likely to have a non-school qualification (31%) 8. Non-school education participation can be directly linked to employment outcomes. In 2008, 43% of Indigenous Australians who had completed Year 12 aged and 47% who aged were engaged in fulltime employment. This compares favourably with the same age groups who completed Year 9 or below (13.4% and 11.7% respectively) 9. In December 2009, there were 2,061 Indigenous apprentices in training in Australia. Queensland had the highest number of apprentices and trainees (675) followed by New South Wales (554). The top two Training Packages for Indigenous apprentices and trainees were: Metal and Engineering Training Package (826) Automotive Retail, Service and Repair Training Package (797) 6 Australian Bureau of Statistics 2006 Population characteristics, Aboriginal and Torres Strait Islander Australians 7 Australian Government, Prime Minister s Report 2010 Closing the Gap 8 Australian Bureau of Statistics 2006 Population characteristics, Aboriginal and Torres Strait Islander Australians 9 Australian Bureau of Statistics The Health and Welfare of Australia s Aboriginal and Torres Strait Islander Peoples, 2010 August 2010 Page 3 of 11

4 AUM (11) AUR (797) LMF (148) LMT (35) MEA (23) MEM (826) MSA (167) PMA (21) PMB (35) PMC (8) PML (27) THC* (3) No of contracts Indigenous apprentices and trainees in training By Training Package Dec Source: NCVER VOCSTATS accessed July 2010 *THC - Recreational Vehicle qualifications only Training Package This was the same trend as for general Australian apprentice and trainee participation. Indigenous enrolments in publicly funded institutions also reflected the enrolments of the general Australian student population in A total of 4,072 Indigenous students were undertaking qualifications at publicly funded institutions. The majority of Indigenous students were male (3,597). The top two Training Packages for Indigenous males were: Metal and Engineering Training Package (1,923) Automotive Retail, Service and Repair Training Package (1,180) The top two Training Packages for Indigenous females were: Textiles, Clothing and Footwear Training Package (190) Automotive Retail, Service and Repair Training Package (91) National Centre for Vocational Education Research 2010 VOCSTATS accessed July 2010 August 2010 Page 4 of 11

5 AUM AUR LMF LMT MEA MEM MSA PMA PMB PMC PML THC* Students Indigenous students at publicly funded insitutions By gender and Training Package Male Female Not defined Training Package Source: NCVER VOCSTATS accessed July 2010 *THC - Recreational Vehicle qualifications only Industry research There has been a significant body of Australian research into both Indigenous employment and Indigenous education and training. The majority of employment research has been conducted within the Resources sector. A literature review failed to find any publicly available research around the employment of Indigenous Australians in the manufacturing sector, despite manufacturing being the 5 th highest employer of Indigenous workers.the project undertaken by MSA (mentioned earlier in this paper) is one of the few projects undertaken with manufacturing as its specific focus. Because of the large volume of research that has been undertaken, only research reports form the last decade are included in this background paper. Selected research reports can be found under the Information and Resources buttons on the Indigenous workers webpage ( Research into employment for Indigenous Australians The main organisation conducting research into employment for Indigenous Australians is the Centre for Aboriginal Economic Policy Research (CAEPR) ( CAEPR s principal objective is to undertake high-quality, independent research that will assist in furthering the social and economic development and empowerment of Aboriginal and Torres Strait Islander people throughout Australia. Its aim is to be a world-class centre undertaking research on Indigenous economic development issues that combines academic excellence with policy relevance and realism. CAEPR publish August 2010 Page 5 of 11

6 discussion papers, working papers, research monographs and topical issues papers relating to Indigenous affairs in Australia. The National Centre for Vocational Education (NCVER) is another organisation conducting research into Indigenous employment issues. In 2007 Dockery and Milsom conducted research that specifically looked at Indigenous employment programs. They concluded that in the short-term such programs have been highly successful. However, these programs need to be carefully evaluated to ensure that they are meeting the goals of the participants 11. In 2009 Giddy, Lopez and Redman conducted research into best practice models that brokered successful employment outcomes for Indigenous Australians. They identified seven essential factors required for employment service organisations to achieve the best outcomes for their clients: 1. having strong vision and understanding the importance of monitoring targets 2. responding to the employment market 3. maintaining strong relationships with community and business 4. offering job related and culturally appropriate training 5. collaborating with Indigenous leaders and the community 6. providing holistic support 7. ensuring strong staff commitment 12 From this research the authors produced a guide for organisations working in the area of Indigenous employment 13. The House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs undertook an inquiry into positive examples of Indigenous employment to highlight some of the outcomes and identify the factors that have contributed to these successes. One of the major findings from this inquiry was the positive impact that mentoring had on improving employment outcomes for Indigenous workers 14. The Australian resources sector has also been proactive in supporting research into Indigenous employment. Tiplady and Barclay conducted research into the key trends and issues relating to Indigenous employment in the minerals industry. From their findings a tool kit was developed to support Indigenous employment within the resources sector Dockery, A.M. and Milsom, N 2007, A review of Indigenous employment programs NCVER 12 Giddy, K, Lopez, J, Redman, A 2009 Brokering successful Aboriginal and Torres Strait Islander employment outcomes: Common themes in good-practice models NCVER 13 Giddy, K, Lopez, J, Redman, A (n.d) Guide to success for organisations in achieving employment outcomes for Aboriginal and Torres Strait Islander people NCVER 14 House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs, 2007 Indigenous Australians at work Commonwealth of Australia 15 Tiplady, T and Barclay, M.A. (n.d.) Indigenous Employment in the Australian Minerals Industry The Centre for Social Responsibility in Mining and the University of Queensland August 2010 Page 6 of 11

7 Research into education and training for Indigenous Australians NCVER is the leading research organisation into education and training. The NCVER website contains a section that is dedicated to research relating to Indigenous Australians in education and training ( The purpose of this resource is to provide a simple summary of NCVER's statistics and research on Indigenous Australians and vocational education and training (VET). One of the recurrent findings of the research has been the importance of the consideration of culture and community when developing and delivering education and training for Indigenous Australians. Funding programs Federal The Department of Education, Employment and Workplace Relations (DEEWR) has a webpage that is dedicated to Indigenous affairs. On this site information can be found relating to Indigenous employment policies, strategies and programs such as the Indigenous Employment Program (IEP). The objective of the reformed Indigenous Employment Program (IEP) is to increase Indigenous Australians employment outcomes and participation in economic activities, contributing to the Government s commitment to halving the gap between Indigenous and non-indigenous employment outcomes within a decade. The IEP supports a broad range of activities that are responsive to the needs of employers, Indigenous Australians and their communities. Support is available for activities that help to achieve the objective of the IEP and that which offers value for money. These could include activities that will: encourage and support employers to provide sustainable employment opportunities for Indigenous Australians; encourage and support Indigenous Australians to take up training and employment opportunities, stay in jobs and enhance their future employment prospects; assist Indigenous communities, industry bodies and groups of employers to develop Indigenous workforce and economic development strategies that support local and regional economic growth; or assist Indigenous Australians to develop sustainable businesses and economic opportunities in urban, regional and remote areas. ( August 2010 Page 7 of 11

8 State Each state in Australia has developed a policy or strategies to support Indigenous Australians to achieve opportunities in education and employment. Queensland Queensland, through its Positive Dreaming, Solid Futures: Indigenous Employment and Training Strategies has identified four priority areas: 1. Maximising employment through strategic alliances 2. Skilling individuals for work 3. Building capabilities in communities to enhance community and economic development opportunities 4. Aligning employment support and training to the needs of Indigenous Queenslanders 16 A range of programs have been introduced to address these priority areas. These include: Engaging business and industry in strategic partnerships for employment Engaging with business and industry to promote culturally intelligent industries An Indigenous employment policy for state government infrastructure projects Western Australia In Western Australia the government has developed the Training together working together: Aboriginal workforce development strategy. The Training together - working together Aboriginal workforce development strategy is aimed at assisting Aboriginal people to participate effectively in the workforce and to ensure that the development and application of their skills is within a workplace context. There are five main strategic themes: 1. connecting employers and Aboriginal job seekers to meet Western Australia s growing work opportunities; 2. engaging local knowledge and capacity recognising a one size fits all approach does not work; 3. improving the transitioning of Aboriginal people through quality mentoring and other support; 4. developing a strategic systematic response to individual and institutional barriers to Aboriginal participation in the workforce; and 5. raising awareness of Aboriginal employment opportunities and promoting new Aboriginal role models Department of Training and Workforce Development 2010 Training together working together: Aboriginal workforce development strategy August 2010 Page 8 of 11

9 New South Wales Two Ways Together is the NSW Government's 10 year plan ( ) to improve the lives of Aboriginal people and their communities. Since 2003, the NSW Government has been working with Aboriginal communities and Commonwealth government agencies to achieve better outcomes for Aboriginal people in the seven areas of: health housing education culture and heritage justice economic development; and families and young people. These seven priority areas were identified through consultation with Aboriginal people who said these areas were the most relevant to their lives and future wellbeing Two Ways Together recognises that Aboriginal people have inherent rights as the first peoples of Australia. It recognises that these rights were never ceded and that they exist in addition to citizenship rights. The inherent rights of Aboriginal people include the right to determine the direction of their social, economic and political development and the right to maintain culture, language and identity. The NSW Government has committed itself to reducing the social disadvantages experienced by Aboriginal people, whilst strengthening their capacity to exercise their inherent rights. Two Ways Together takes a long-term view by making a ten year commitment to change. The plan requires government agencies to work together with Aboriginal people to ensure that services are accessible and culturally appropriate. The plan also recognises that services need to work in partnership 18. Victoria In Victoria the Ministerial Taskforce on Aboriginal Affairs has been created to focus government efforts on closing the 17 year life expectancy gap that exists between Indigenous and non-indigenous Victorians. The Taskforce focuses on reducing Indigenous inequalities especially those relating to early childhood, education, employment and participation in the civic, social and cultural life of the Victorian community. The challenge requires generational change, and the Victorian Government is working in partnership with Indigenous communities and the Commonwealth Government to achieve this. 18 Human Services Aboriginal Affairs Two Ways Together August 2010 Page 9 of 11

10 The role of the Taskforce is to: Oversee Victorian Government activities to address Aboriginal disadvantage through the Victorian Indigenous Affairs Framework and the Council of Australian Government's (COAG) Closing the Gap Identify priorities for policy and program action Ensure representative and engagement arrangements for Aboriginal Victorians create strong, sustained and effective partnerships with Government, and Monitor the effectiveness of government strategies. One of the first actions of the Taskforce was to form the Victorian Aboriginal Economic Development Group. This group released a report, Moonda Wurrin Gree Pathways to a Better Economic Future, which made several recommendations. As a result of the recommendations, the Victorian government has committed funding of the next four years to a new approach to Aboriginal economic development that focused on keeping Aboriginal children at school, helping them into meaningful employment, and growing Indigenous businesses 19. Employment support programs around Australia The employment support programs listed below all have a national focus. Australian Employment Covenant The Australian Employment Covenant (AEC) is an initiative aimed at securing 50,000 sustainable jobs for Indigenous Australians 20. Backed by a three-way commitment between Australian Employers, the Australian Government and Indigenous people, this landmark initiative seeks to break the vicious cycle of unemployment and poverty amongst Indigenous Australians by adopting a learn or earn policy for all those who have the capacity to work. This policy will see 50,000 Indigenous Australians receive training tailored to meet employers' specifications, creating clear and encouraging outcomes for Indigenous training programs. In addition, 50,000 workplace mentors will provide much needed support to each Indigenous Australian as they continually develop in their new roles. The AEC represents a major commitment to the future of Indigenous Australians by providing those prepared to work with a clear pathway to employment and the ability to reach their full potential accessed August accessed August 2010 August 2010 Page 10 of 11

11 Fortescue Metals Group Fortescue Metals Group s Vocational Training and Employment Centre (VTEC) is a doorway towards employment with FMG for Aboriginal people 21. The centre runs a program designed to equip local indigenous people with the skills to gain employment in the mining sector. Graduates are guaranteed ongoing employment. The plan for VTEC was developed during Land Access Agreement negotiations between traditional claimant groups and Andrew Forrest. The Kariyarra, Nyiyaparli and Palyku people negotiated with Fortescue an agreement to provide for vocational training. The centre was established in The centre is based at Pundulmurra TAFE College in South Hedland and works by identifying employment opportunities within FMG, and with contractors who work with us, then developing courses using TAFE and other training organisations to provide people with the necessary skills for those jobs Rio Tinto Rio Tinto s vision is for strong regional economies in which local communities and Rio Tinto businesses work together to build on and benefit from the opportunities generated through their mining operations. Rio Tinto is aware that, by 2016, people aged between 15 to 45 years - those in their prime working years - will comprise 50 per cent of the Indigenous population in regions associated with Rio Tinto operations. Growth in permanently resident non-indigenous populations in the same regions is not expected to be as strong. As a consequence, Rio Tinto sees n significant section of its workforce coming from the local Indigenous population 22. ACCI The Australian Chamber of Commerce and Industry (ACCI) has developed a framework that is intended to act as a starting point for ACCI member associations to successfully implement an Indigenous employment strategy in their respective industries and businesses 23. Conclusion While there have been some gains in Indigenous participation in employment and education, there still remains a large gap. Manufacturing is the 5 th largest employing sector for Indigenous people. Despite this there has been very little research into the training and employment needs of Indigenous people entering the sector. One of the successful strategies to support Indigenous participation in training and employment identified in the research review was mentoring. The project undertaken by MSA in partnership with ACET also identified mentoring as an essential element for success. -END accessed August Rio Tinto (n.d.) Indigenous Employment in Australia 23 Australian Chamber of Commerce and Industry (n.d.) Employing Indigenous Australians Indigenous Employment Strategy Framework for Industry August 2010 Page 11 of 11