Apprentice Workplace Knowledge Enhancement in Post-Recession Ontario

1. Apprentice Workplace Knowledge Enhancement in Post-Recession Ontario International Network on Innovative Apprenticeship Conference May 26th, 27th, 2011

2. In Essence: How does Ontario rapidly improve the workplace skill of its workforce in a resurging automotive manufacturing industry after the “Great Recession” using its apprenticeship system?

3. The Importance of Automotive Manufacturing in Canada • Automotive manufacturing, both vehicle (OEM)and parts is the largest single manufacturing sector in Canada • The province of Ontario is the center of Canada’s industrial manufacturing sector

4. The Importance of Automotive Manufacturing in Canada • Canada is the 9th largest automotive manufacturer in the world (China is now the largest!) • 92% of Canada’s automotive related manufacturing is in Ontario

5. The Impact of the “Great Recession” • During the “Great Recession” of the first decade of the 21st century, the automotive manufacturing base in Ontario declined significantly • Automotive related employment declined from 160,000 in Q1 of 2007 to 80,000 in Q1 of 2010 • Vehicle production fell by over 1.4 million units from the highpoint in 2000 to the lowpoint in 2009

6. The Impact of the Great Recession

7. Effect on Apprenticeship - Why • Apprentice positions in automotive manufacturing declined by more than 30% between 2006 and 2009 • Often apprentices are the first to be laid off when a company downsizes • Companies seldom hire new apprentices during downsizing • More senior journeypersons take early retirement packages as part of the downsizing plan • Potential apprentices are reluctant to enter a declining industry

8. The Resurgence of Automotive Manufacturing in Canada • Automotive is very cyclical – as the economy recovers people buy cars • The cost of transporting vehicles or components from Europe or Asia has risen dramatically with the escalating price of oil and other commodities • The domestic markets in emerging economies have grown exponentially taking up manufacturing capacity---look at China!! • The high Canadian $ allows for the purchase of individual components at cheaper prices – Ontario workers will assemble the larger integrated systems closer to the vehichle builder • The instability in Mexico is hindering the location of experienced Canadian and US personnel

9. The Skill Shortage in Automotive Manufacturing • The Perfect Storm! • The lack of apprentices because of the recession • The resurgence of the North American automotive market • The trend of the trades – demographically, Ontario will experience a very high retirement of skilled tradespersons over the next decade (Milner 2009) • The need for cost effective production to remain competitive • higher automation – less labour = higher skill

10. Therefore, there is an urgent need for a practical, innovative and quick approach to improve apprenticeship delivery within the automotive industry in Ontario!

11. The Apprenticeship System in Ontario • Currently, centrally administered by the Ontario provincial Government • Government sets the standards to be met by apprentices • Number of hours on the job (typically 9000 hours) • Number of hours in school (typically 3 blocks of 8 weeks) • Standards to be achieved in both school and on the job • Schooling is delivered by the Province’s 24 Community Colleges (like Georgian) • Apprentices work under a licensed Journeyperson on the job • The Journeyperson is responsible for “judging” and “passing” the apprentices competency

12. The Council for Automotive Human Resources (CAHR) • CAHR is a “sector council” funded by the Canadian government and comprised of stakeholders from the automotive industry • CAHR’s mission is to help Canada’s automotive industry improve the skills of its human resources • The industry asked CAHR to determine a way to improve the skills of its workers through apprenticeship to meet the demands of the resurging market • CAHR undertook a project to determine the current status of apprenticeship in Ontario, then look at best practices and recommend a solution to improve it

13. What CAHR Found Out - Issues with the Current Apprenticeship System • Particularly for small and medium sized businesses: • System is complex and highly administrative • There is a loss of productivity during the 8 week school block • There is very little flexibility with the school scheduling • There is very little standardization among journeypersons as to assessment of Apprentices • On-the-job experience can be very limited at smaller employers • The system is expensive, especially for smaller employers • The current curriculum and on-the-job training standards is acceptable

14. What CAHR Found Out – Best Practice Research • CAHR researched several other prominent systems in other North American, global jurisdictions • Of particular interest was the systems employed in North Carolina,northwest UK and North Wales • Multi- employer cooperation • Third party administration and coordination • Excellent structure to the evaluation by Journeypersons of on-the-job performance of Apprentices • Ability to implement such a system within the current Ontario regulatory framework

15. The Basis for an Enhanced Delivery System in Ontario • Add flexibility to in-school delivery(day-release, etc) • Implement more frequent , structured assessment of the Apprentice on-the-job performance • Introduce mentor training for Journeypersons • Transfer the administrative burden away from the employer (to CAHR) • Introduce a rotational system of on-the-job training through an appropriate group of employers to broaden the experience

16. Georgian College as the Pilot Institute • Georgian is centrally located to much of Ontario’s automotive industry • Georgian maintains the Center for Automotive Parts Expertise (CAPE) and is well known in the automotive industry • Georgian has a highly respected apprenticeship delivery system • Georgian is flexible and innovative

17. The Automotive Supply Chain – A Seating Product Example Tier 2 Tier 1.5 OEM Tier 3 Tier 1

18. The Supply Chain Approach-Why • Automotive supply chains are highly integrated and homogeneous • Integrated quality, production and logistics systems already exist • Generally geographically close (Tier 2 to the OEM) • Employers are much more likely to participate because of mutual interests • Apprentices gain a much wider experience and perspective within their industry • They can assist with problem solving and quality improvement by knowing processes at either their supplier or customer • Offers greater mobility for the journeyperson over the length of his/her career • Employers within a supply chain tend not to recruit from each other, therefore providing greater stability and trust

19. The Supply Chain Model – Industrial Electricians from a Seating Supply Chain • 18 Industrial Electrician Apprentices will be selected to participate from the supply chain • Georgian will customize the in-school scheduling to the requirements of the chain of employers (i.e. day release, two-day block etc.) • CAHR will provide third party administration of the project

20. In Conclusion……The Benefits • The system will work within the current regulatory framework and union collective agreements • The system can be implemented relatively quickly • The system can be implemented incrementally • The system optimizes the current curriculum and on-the-job standards • The system addresses the fundamental concerns of employers • The system is highly beneficial to the Apprentice