transport logistics industry skills plan v1.3[1]€˜brand’. 2008/9 saw the export of over 9.6...

Skills Tasmania

Tasmanian Transport, Freight and Logistics Industry

Skills Plan

Version 1.3 FINAL

14 January 2011

Commercial in Confidence

DOCUMENT CONTROL

Revision History

Version # Author Summary of Changes Date of Issue

0.1 Walter Chikwanha Draft 08 October 10

0.2 David Morgan Review and comment 28 Oct 2010

0.3 Walter Chikwanha Update 09 Nov 2010

0.4 Walter Chikwanha Update 11 Nov 2010

1.0 David Morgan Draft discussed with Skills Tasmania 12 Nov 2010

1.1 David Morgan Inclusion of training data to appendix, interstate

workforce development initiatives

20 Nov 2010

1.2 David Morgan Enhancement of recommendations 13 Dec 2010

1.3 David Morgan Inclusion of sponsor in recommendations and further

enhancement of executive summary

14 Jan 2010

Final Approvals

Name Initials Title Date of Issue Version #

David Morgan DM Managing Director 14 Jan 2011 1.3

Commercial in Confidence of 51

ORGANISATIONAL DETAILS Company Name:

Explain IT Pty Ltd, trading as The Work Lab

ACN: 117 586 633

ABN: 78 117 586 633

Registered Office: 1st Floor, 373 Elizabeth Street

North Hobart, TAS 7000

Street Address: 1st Floor, 373 Elizabeth Street

North Hobart, TAS 7000

Postal Address: PO Box 547, North Hobart, TAS 7002

Contact Name: David Morgan

Title: Managing Director

Telephone: 03 6234 9422

Fax: 03 6234 9423

Email: [email protected]

Web: www.theworklab.com.au


TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY ...................................................................................... 5

2.0 RECOMMENDATIONS ........................................................................................ 8

4.0 METHODOLOGY ............................................................................................... 12

5.0 INDUSTRY OUTLOOK ...................................................................................... 14

6.0 CASE STUDIES ................................................................................................. 29

7.0 DISCUSSION OF FINDINGS ............................................................................. 37

8.0 CONCLUSION ................................................................................................... 40

9.0 APPENDIX ......................................................................................................... 41

10.0 CONSULTATION LIST ..................................................................................... 43

11.0 QUESTIONS ASKED TO STAKEHOLDERS ................................................... 44

12.0 WORKFORCE DEVELOPMENT INITIATIVES ACROSS AUSTRALIA ........... 45


1.0 EXECUTIVE SUMMARY

In September of 2010, Skills Tasmania contracted The Work Lab to develop a

comprehensive Skills Plan for the Tasmanian Transport, Freight and Logistics industry. The

Skills Plan was to build on the findings of a March 2010 Industry Health Check survey that

examined a range of workforce issues in the industry.

The Tasmanian Industry is not unique regarding its skill development issues. An array of

workforce development solutions and assistance are available through Government and

Industry supported programs facilitated by Transport and Logistics Working Groups

established through the Federal Department of Infrastructure and Transport and its State

equivalents. A collaborative effort locally and across Australia is critical to solving the many

skills issues faced within Tasmania.

Collaboration is also critical in being able to harness Government support across

jurisdictions. Issues affecting the industry are split across at least three State Government

departments without a clear lead agency or visible collaborative effort. The industry is also

without a single peak industry body to lead change and advocacy effort on its behalf.

The Tasmanian Transport and Logistics Working Group must play a pivotal role in providing

leadership and facilitation of this collaborative effort to drive positive outcomes for the

industry.

The imperative of this occurring is clearly illustrated by the findings below:

• As a result of continued economic growth the Tasmanian freight task will double in the

next 20 years if the economy maintains a 3.9% per annum growth.1 There will not be an

adequate workforce to meet this increased workload (at the projected employment

growth at 5.12% per annum).2

• Driven by the macro effects of an ageing population and continued difficulties recruiting

younger workers, the industry has an ageing workforce. Over 40% of the current

workforce is over 45 and by 2020, 45% of the workforce will be aged between 50 and 65

years old. The delayed retirements caused by a loss or reduction in superannuation due

to the Global Financial Crises means more people will retire simultaneously over the next

few years, worsening the skills shortage.

1 Tasmanian Freight Logistics Council: ‘Doubling of Freight Task in Tasmania’ Report 22 July 2009 2Occupational Skills Shortage Analysis – Tasmania Phase One Report July 2008 - http://www.skills.tas.gov.au/skillstas/policy-and-publications/Skill_Shortages_Report_-_Final.pdf


• Numerous employers cite competition with lucrative alternative options in the mining

industry as causing retention issues for certain occupations.

• The majority of training in the industry is compliance based. This takes two forms:

o Regulatory licences – most of which have a time based element attached and

thus require maintaining currency;

o Supply chain based where head contractors (companies that Transport and

Logistic companies effectively work for) require the adoption of their own

quality assurance systems and processes.

As a result of this, the dependence of training based on national vocational competency

standards is low and little evidence was found of the use of national qualifications to

support workforce development activity. Most employers train new and existing staff on

the job to compliance requirements.

• The Transport and Logistics Industry perceives itself as having a negative image and this

image reduces its attractiveness to new entrants to the labour market. Awareness of

careers within the industry is low and whilst the vocational training system provides

qualification based career pathways, these are not widely used by industry.

• There are low student enrolment numbers in transport and logistics qualifications.

Between 2008 and 2009, there was a 32% decline in enrolments. In addition there are

low completion rates with only 300 students per annum between 2005-2008, which

represents only 1% of the total industry workforce.

• Effective partnerships with training organizations require significant customization of

training content to enterprise requirements. Models of good practice do exist which can

be used as exemplars for broader application.

• The Chain of Responsibility provision, introduced in Heavy Vehicle Road Transport

Amendment Bill of 2010 will likely impact employers, particularly around their systems

and process – a component of which is clearly related to human resources. Industry

engagement initiatives relating to the Bill’s implementation provide the opportunity to

commence work on skill development initiatives and solutions.


The significance of these findings is:

• Tasmania is primarily an export state and therefore the road, rail, air and sea freight

transport is crucial for the movement of goods and for the survival of the Tasmanian

‘brand’. 2008/9 saw the export of over 9.6 million tonnes of goods.3

• The transport and logistics industry in Tasmania is a vital component of the Tasmanian

economy, employing 1 in 8 people and contributing 14.1% to GSP in 2007.4

• This research is a follow up to the March 2010 Health Check and the findings herein

support previous responses.

• This skills plan combined with the Health Check covers a wide spectrum of industry

stakeholders i.e. small and large business in all sectors including the rail sector and thus

gives a cross sectional view of the industry as a whole.

The limitations of these findings are:

• The case study information was collected from a small number of businesses and so

should be considered as purely qualitative.

• Interviews with industry stakeholders were conducted at a time of ‘flux’, where the future

of the two main governance bodies involved in industry development issues, the

Tasmanian Freight and Logistics Council (TFLC) and the Tasmanian Transport and

Logistics workforce advisory group (TTLWAG) was uncertain.

3 Tasports Annual Report 2008/09 – Freight Statistics and Port Information 4 Australian Logistics Council – Contribution of Transport & Logistics to the Economy - Dispelling the Myths (2007) http://www.austlogistics.com.au/dmdocuments/gdp2007.pdf


2.0 RECOMMENDATIONS

It is recommended that: Recommendation Responsibility By when

The TTLWAG be reinvigorated through the reappointment of members by the Minister for Infrastructure. Its composition should include union representation (TWU), peak body representation (TFLC, TTA) and representatives of the 4 sectors of the industry namely rail, road, sea and air. with support roles from DIER, DEDTA, Skills Tasmania. Once reformed the TTLWAG will develop an action plan for implementation of skills plan recommendations.

Sponsor Stakeholder TFLC Supporting Stakeholders DIER, Skills Tasmania

By end Feb 2011

The TTLWAG support and feed into National and interstate initiatives aimed at implementing the outcomes and actions of the National Workforce Planning and Skills Working Group. At a minimum it is recommended that the TTLWAG support:

• National workforce gauge • National repository for careers information • LINC website

Sponsor Stakeholder TTLWAG

1 March 2011 onwards

That the outcomes and issues raised at TTLWAG meetings form substantive input into the network performance stream of the National Standing Committee of Transport.

Sponsor Stakeholder TTLWAG Supporting Stakeholders DIER

1 March 2011 onwards

By way of an immediate follow up to this report, a ‘kit’ should be distributed to the industry providing:

• Information on existing government initiatives that could benefit workforce development activity.

• A summary of this report and resulting actions, in particular the role of the TTLWAG.

Sponsor Stakeholder TTLWAG Supporting Stakeholders Skills Tasmania, DEDTA – John Furness Australian Apprenticeship Centers (AAC)

Feb 2011

Skills Tasmania take the lead role in coordinating and facilitating workforce development initiatives in the Transport and Logistics Industry.

Sponsor Stakeholder Skills Tasmania, Industry Liaison Officer

January 2011 onwards


The Transport and Logistics Industry Skills Council (TLISC) be provided with a copy of this report and be invited to the TTLWAG to commence ongoing discussion and support between TLISC, TTLWAG and the Tasmanian industry. Invitation for TLISC to attend regular meetings of the TTLWAG

Sponsor Stakeholder TTLWAG Supporting Stakeholders Skills Tasmania, TLISC

March 2011 onwards

There be a re-alignment of training supply to meet the current and future occupations that are in actual demand in the transport sector. Significant effort be placed on improving engagement of the vocational training system with the needs of the industry. Clearly, businesses are involved in workforce development activity in isolation from the opportunities offered by the VET sector. Forums with industry stakeholders then VET providers to communicate needs and strategies for implementation

Sponsor Stakeholder Skills Tasmania Supporting Stakeholders TLISC, Vet Providers

March 2011 onwards

Implementation activity relating to the Chain of Responsibility legislation be used as a mechanism to market examplars of workforce development activity. The case studies portrayed in this report provide exemplars of the positioning of training into the operations of transport and logistics businesses. These could be further developed into ‘how to’ kits and marketed to the industry. This should include comprehensive information on the qualifications frameworks that are available and the funding that exists to support engagement.

Sponsor Stakeholder TTLWAG Supporting Stakeholders DIER (John Bessells), Skills Tasmania (ILO), TLISC

Jan 2011 onwards.


3.0 RATIONALE

In March 2010 the Tasmanian Freight Logistics Council commissioned The Work Lab to

undertake an Industry Workforce Health Check. A total of 69 companies with representation

across different sectors of the transport and logistics industry took part in the online survey.

The main topics participants were asked to comment on were staff recruitment, retention

and training as well as skills shortages and their potential impacts.

The Industry Health Check Report found that:

• The Tasmanian transport and logistics industry has an ageing workforce 40% of the

workforce is over 45 and only 11% under 25.

• Labour issues are more acutely felt with blue-collar occupations; in particular,

difficulties were expressed in:

o Attracting new staff (this is compounded by high attrition levels)

o Maintaining productivity with the existing skill base

o Maintaining compliance with regulatory requirements.

• Across the industry, recruitment difficulties were cited. These were due to a

perceived lack of required skills amongst job seekers and compounded by work

conditions (shift work etc) inherent in the industry.

• Very few companies cited problems retaining staff but 35% perceived this as likely to

be an issue for them in the next 18 months.

• A significant list of occupations was put forward as likely to cause recruitment

problems in the next 18 months.

• Training, flexible hours and salary sacrificing were cited as common employee

benefits.

• Training effort across the industry is generally focused on compliance skills and

management development.

• There is low awareness of the National Training Package across the industry but

some evidence of the use of competency standards for workforce development.

• No significant issues with current training delivery were raised.


A number of constraints on doing business in Tasmania were identified as well as benefits,

which were mostly lifestyle/value based.

A number of participants indicated they would be interested in being kept up to date on the

Tasmanian Transport and Logistics Workforce Advisory Group’s findings.

The report recommended further analysis into several areas to better understand the critical

issues and enable the formation of recommendations and solutions. This further analysis is

the basis of this report.


4.0 METHODOLOGY

This skills plan was developed using a mixture of desktop research and primary qualitative

research consisting of structured interviews and case study development. A total of 11

structured interviews with Tasmanian Transport and Logistics Workforce Advisory Group

members and 6 case studies with a cross section of businesses were carried out.

Methodology stages

Stage 1: Project Plan

Stage 2: Desktop research

This involved conducting of desktop research on skills and workforce development in

relation to the:

2.1 National outlook - how the Australian transport industry and the Commonwealth and

State governments are dealing with these issues

2.2 International outlook - what effect trends in other countries has had or will have on the

nations own industry, and what we can learn from this

2.3 Policy framework - what industry related policies are likely to have a bearing on the

industry

2.4 Regulatory framework - legislation and compliance-based regulations that has had or is

likely have an impact on businesses

Stage 3: Structured interviews

Preparation, conduct and documentation of questions and issues from 11 one-on-one

meetings with individuals from the Tasmanian Transport and Logistics Workforce Advisory

Group (TTLWAG)

Stage 4: Case study development

Preparation, conduct and documentation of 6 separate case studies of various businesses

1 from rail sector

2 from small business sector


3 from ‘other’ sectors (who had previously been identified as using competency standards

work workforce development)

Stage 5: Determine Recommendations

Discussion with TFLC to explore findings and to develop recommendations.

Stage 6: Report compilation

Discussion with TTLWAG to explore recommendations and to develop actions.


5.0 INDUSTRY OUTLOOK

The Transport and Logistics Industry fits within a broader economic context and does not

exist as an isolated entity. There are various external influences that have a bearing on the

industry in one way or another. The global financial crisis, which began in September 2008,

has sharply weakened the world economic outlook for 2009 and beyond. The crisis has had

far-reaching consequences and its effects have been felt by many sectors of Australian

business. In the year to June 2009, annual gross value added for the overall economy was

down by 7.9% compared to a growth of 0.6% the previous year. The transport and storage

industry gross value was -4.3% to June 2009.5 In response to the crisis, governments in the

United States, China, Japan, Western Europe, Australia and many other advanced and

emerging economies have implemented substantial monetary and fiscal policy measures

aimed at supporting economic activity, stabilising markets and bolstering consumer and

business confidence. Notwithstanding these efforts, the world economic outlook has

continued to weaken.

In March 2009, the Australian Bureau of Agricultural and Resource Economics (ABARE) in

its Australian Commodities March Quarter 09.1 Report forecast economic growth in Australia

to be 1% in 2008-09 and 0.75% in 2009-10. Towards 2013-14, Australian economic growth

is anticipated to average around 3% a year.6

Industry Size and Composition

The Australian government has clearly defined the need for substantive action on issues

pertaining to workforce planning in transport and logistics concerning, supply of skills,

education and training, career development and safety issues. Vital for this is the need to

establish a centralized coordination mechanism between government and the industry,

which will enable these actions to be carried out in a structured manner.

In Tasmania, three government departments play a role in the transport and logistics

industry skills and workforce development issues. Skills Tasmania is responsible for the

development of policy advice and support for skills development. The Department of

Infrastructure, Energy and Resources (DIER) has a particular focus on Infrastructure Policy

and Planning. The Department of Economic Development, Tourism and the Arts (DEDTA)

5 Coleen Coyne Property Research – Impact of the GFC – Winners and Losers – November 2009 6 Tasmanian Freight Logistics Council: ‘Doubling of Freight Task in Tasmania’ report 22 July 2009 http://www.tasfreightlogistics.com.au


has overall responsibility for economic and industry development in Tasmania. The

operations of all three agencies impact on workforce development.

The Tasmanian Government recently announced the establishment of a new Tasmanian

Infrastructure Advisory Council, with representatives from the major economic sectors, to

provide advice to government on providing and planning economic infrastructure across

transport, energy, water and digital infrastructure. This body may well subsume the activities

of the TFLC. The future of the TTLWAG is also uncertain at the time of writing.

The Australian Trucking Association (ATA) estimates the Transport & Logistics industry

(excluding Maritime and Aviation) encompasses 165,000 businesses, employs 167,000

drivers and over 512,000 trucks nationally; small business accounts for over 90% of all

businesses (in number) and the employment of 35 % of the industry’s workforce.7

According to the Tasmanian Freight and Logistics Council (TFLC), Australia’s transport,

storage and logistics industry accounts for about nine per cent of Australia’s gross domestic

product (GDP) – or about $63 billion a year. Nationally, the industry employs one in eight

people.8 In 2006/07, the transport and storage sector contributed 3.8% of Tasmania’s GDP9

The table below gives a breakdown of how the transport and storage workforce compared

with all other industries nationally in 2007

Transport & Storage All IndustriesNumber Employed 488 900 10 451 200 Employees (%) 86.5 88.3 Self-employed (%) 13.5 11.7 Age profile (%) 15-24 years 9.8 17.8 25-44 years 45.4 45 45+ years 44.8 37.2 Female (%) 25.7 44.9 Full-time/part-time status (%) Full-time 81.8 71.6 Part-time 18.2 28.4 Casual employees (%) 17.3 24.2 Level of highest qualification (%)

7 Facts and Statistics - Transport & Logistics Industry Skills Council – www.tlisc.com.au 8 Tasmanian Freight Logistics Council: ‘Doubling of Freight Task in Tasmania’ report 22 July 2009 http://www.tasfreightlogistics.com.au 9 Occupational Skills Shortage Analysis – Tasmania Phase One Report July 2008 - http://www.skills.tas.gov.au/skillstas/policy-and-publications/Skill_Shortages_Report_-_Final.pdf


Diploma and above 20.5 31.7 Certificate III/IV 19.2 17 Certificate I/II 6.1 6 No post-school qualification/not defined 54.2 45.3 Apprentices and trainees Commencements 16 400 272 500 Completions 8 800 142 900 In training (as at 30 June) 22 700 415 500

The above data shows that when compared to the whole of industry in Australia, the

Transport and storage industry employ less young people (aged 15-24) and a higher number

of people aged over 45. The transport industry has a larger number of full time employees

and tends to employ less casual labour.

Although over half (54%) of employees do not have post-school education compared to 45%

in other industries, the transport sector has more people with Certificate I to IV than others

combined. Only 20% of employees have gone beyond this to do a Diploma or above in

comparison to 32% for other industries. The completion rate stands at only 1.7% of the total

transport workforce.

Industry Growth

The Federal Government’s Bureau of Transport and Regional Economics (BTRE) 2006

Working Paper 66 “Demand Projections for AusLink Non-Urban Corridors” focused on road,

rail and coastal shipping freight tasks, which account for over 90 per cent of the domestic

freight task.

The national average annual growth for the twenty-five years from 1999 to 2025 is estimated

to be as follows10: Mode %Avg GrowthRoad 2.98 Rail 2.38 Coastal Shipping 1.51 Air 6.1 All Modes 2.75

If the above growth happens, it will result in less than doubling of the freight task over that

period in all transport modes apart from air freight. This will lead to increased road and rail

system congestion, increased costs, and reductions in air quality, society amenity and

greater noise.

10 Tasmanian Freight Logistics Council: ‘Doubling of Freight Task in Tasmania’ report 22 July 2009


In Tasmania, the estimates are as follows11:

Mode 1999 (‘000 tonnes)

2025 (‘000 tonnes)

% Growth per

Annum

% Growth Over

20 Years Road 294.8 568.5 2.6 92.8 Rail 174.0 129.7 -1.1 -25.4 Coastal Shipping 295.0 377.3 1.0 27.9 All Modes 763.8 1075.5 1.3 40.0

This doubling of demand for the industry’s services seems realistic. Between 1995 and

2009 alone, the combined import and export task in the state increased by over 37% from

10.8 to 14.9 million tonnes.12

The Department of Infrastructure, Energy, and Resources (DIER) has started to develop the

infrastructure elements of a $79 million transport hub in the Brighton Municipality. The

proposed transport hub has been designed to accommodate the freight task growth with

capacity to expand to meet longer-term growth projections. In addition to this, the Southern

Transport Investment Program will see the construction of the $164 million Brighton Bypass,

which involves upgrading the Midland Highway

The Transport and Logistics Labour Market

In 2006/07, the transport and storage industry employed 9,815 people in Tasmania, 4.4% of

the total working population, after experiencing growth of 12.8% from 1998/99. Continued

employment growth of 5.12% is projected to 2014/15.

The table below ranks the projected increases in employment numbers by occupation for the

period 2006/07 to 2014/15, based on the contribution of the growth in that occupation to the

specific industry sector. The table also details the projected percentage change over the

period, how the occupation ranks overall in projected growth and the actual number of

people anticipated to be employed in that occupation (but not specific to the sector i.e. road,

rail, water, air) in 2014/15.13

11Tasmanian Freight Logistics Council: ‘Doubling of Freight Task in Tasmania’ Report 22 July 2009 http://www.tasfreightlogistics.com.au 12 Tasports Annual Report 2008/09 – Freight Statistics and Port Information 13 Occupational Skills Shortage Analysis – Tasmania Phase One Report July 2008 - http://www.skills.tas.gov.au/skillstas/policy-and-publications/Skill_Shortages_Report_-_Final.pdf


Top 10 Occupations by contribution to industry growth in Tasmania14

Occupation Total Change %

Average annual Change

%

Employed (No)

1 Store persons 33.31 3.66 5,579 2 Office Managers 52.83 5.44 4,919 3 Truck Drivers 11.61 1.38 4,556 4 Inquiry & Admissions Clerks 18.19 2.11 4,455 5 General Managers 61.79 6.2 3,318 6 General Clerks 50.62 5.25 2,965 7 Forklift Drivers 32.07 3.54 1,519 8 Supply & Distribution Managers 52.28 5.4 1,059 9 Bus Drivers 12.78 1.51 1,042 10 Transport Company Managers 60.38 6.08 454 29866

The table above shows that close to 30,000 people were employed in the Transport and

Logistics Industry. The fastest growing occupations we managerial roles (i.e. high skill and

experience occupations), followed by lower skill vocations such as forklift drivers and store

persons.

Skills and Training

According to the Tasmanian Skills Strategy (2008-2015), Tasmania has made significant

progress over the past decade in Vocational Education and Training. However, there are still

many obstacles to overcome:

• 50% of Tasmanians do not have the literacy skills to function effectively in society;

• The retention rate for Tasmanians transitioning from Year 10 through to Year 12 is 65.3%;

• 41.4% of the population over 15 years have post school qualifications;

• 33.4% of the Tasmanian population aged 15 to 64 have Certificate III and above

qualifications;

• The underemployment rate has remained fairly steady at 13.4% from 2003 to 2006; and

• The workforce participation rate in 2006-07 was 60.3%

All these figures are the lowest in the nation.15

14 ibid 15 Skills – Creating our future - The Tasmanian Skills Strategy 2008 – 2015


Despite growth in the industry, between 2005 and 2008, the transport and logistics

qualification completion rate in Tasmania has remained stagnant, averaging 300 students

annually. This represents a mere 1% of the total workforce in this industry (compared to

1.7% nationally).16

Enrolment figures (below) show a disparity between the demand for occupations and the

qualifications being provided by the training system. For instance, over 5,000 store persons

were employed in 2008, and enrolments amounted to only 673 that year. To exacerbate this

situation, there was a 21% drop in enrolments in 2009 in this field. A steeper 65% drop was

recorded for drivers (at all certificate levels) from 673 in 2008 to 392 in 2009.

16 2009 National VET Provider Collection - Qualification completions ('000) by Industry Skills Councils, Tasmania, 2005–08


Transport and Logistics Enrolments by Qualification and Matching Occupation17

ASCO Code Qualification Occupation 2007 2008 2009 7122-11 TLI30907 Cert III In Transport And Logistics (Mobile Crane Operations) Crane, Hoist or Lift Operator 4 Total 4 7313-11 TLI10207 Cert I In Transport And Logistics (Road Transport) Hire Car Driver/Chauffeur 11 Total 0 0 11 615 TDT11102 Cert I In Transport And Distribution (Administration) Material Recording & Despatching Clerks 2 2 615 TDT21102 Cert II In Transport And Distribution (Administration) Material Recording & Despatching Clerks 3 5 1 615 TDT31102 Cert III In Transport And Distribution (Administration) Material Recording & Despatching Clerks 21 25 14 615 TLI11107 Cert I In Transport And Logistics (Logistics Operations) Material Recording & Despatching Clerks 1 615 TLI31107 Cert III In Transport And Logistics (Logistics Operations) Material Recording & Despatching Clerks 1 11 6151-11 TLI21107 Cert II In Transport And Logistics (Logistics Operations) Production Recording Clerk 1 Total 26 33 28 731 TDT10202 Cert I In Transport And Distribution (Road Transport) Road & Rail Transport Drivers 256 214 14 731 TDT20202 Cert II In Transport And Distribution (Road Transport) Road & Rail Transport Drivers 106 161 64 731 TDT30202 Cert III In Transport And Distribution (Road Transport) Road & Rail Transport Drivers 265 249 180 731 TDT30297 Cert III In Transport And Distribution (Road Transport) Road & Rail Transport Drivers 1 2 731 TDT40202 Cert IV In Transport And Distribution (Road Transport) Road & Rail Transport Drivers 2 3 3 7314-11 TLI20207 Cert II In Transport And Logistics (Road Transport) Drivers (Delivery) 20 7314-11 TLI30207 Cert III In Transport And Logistics (Road Transport) Drivers (Delivery) 19 111 Total 630 648 392 7993-11 TDT10102 Cert I In Transport And Distribution (Warehousing And Storage) Storeperson 73 83 22 7993-11 TDT20102 Cert II In Transport And Distribution (Warehousing And Storage) Storeperson 165 140 24 7993-11 TDT20197 Cert II In Transport And Distribution (Warehousing And Storage) Storeperson 1 7993-11 TLI10107 Cert I In Transport And Logistics (Warehousing And Storage) Storeperson 33 7993-11 TLI20107 Cert II In Transport And Logistics (Warehousing And Storage) Storeperson 227 261 7993-11 TLI30107 Cert III In Transport And Logistics (Warehousing And Storage) Storeperson 15 113 7993-01 TDT30102 Cert III In Transport And Distribution (Warehousing And Storage) Supervisor, Storepersons 209 198 89

17 Data supplied as qualification enrolments by Skills Tasmania – VET Provider Collection and matched to corresponding occupation. A Student is counted each year they are enrolled in the qualification.


7993-01 TDT40102 Cert IV In Transport And Distribution (Warehousing And Storage) Supervisor, Storepersons 22 10 2 7993-01 TLI40107 Cert IV In Transport And Logistics (Warehousing And Storage) Supervisor, Storepersons 10 Total 470 673 554 1223-11 TLI50107 Diploma Of Logistics Supply and Distribution Manager 20 Total 0 0 20 3393-11 TDT51002 Diploma Of Logistics Management Transport Company Manager 1 1 3393-11 TDT61002 Advanced Diploma Of Logistics Management Transport Company Manager 89 59 31 3393-11 TLI40207 Cert IV In Transport And Logistics (Road Transport) Transport Company Manager 36 3393 TDT41102 Cert IV In Transport And Distribution (Administration) Transport Company Manager 2 2 3

Total 92 62 70


Student enrolments for transport and logistics courses show a declining trend over the three

years from 2007 to 2009. In the table above, driver related qualifications for example

experienced a 65% drop over one year. The selected occupations list shows an overall fall in

total enrolments in 2009 of 33% in comparison to 2008.

Over the next 15 years, the workforce will continue to grow but its age structure will change

significantly. By 2020, people aged between 50 and 65 will comprise 45% of the working-

age population. As previously reported the industry is ‘top heavy’ with older workers and

attracts very few younger workers. Left unchecked - a poor community perception of the

industry – leading to an inability to attract younger generations – will continue to be a major

contributing factor to future recruitment difficulties and potential skill shortages.

The Heavy Vehicle Road Transport Amendment Bill of 2010 introduced a key feature -

the Chain of Responsibility provision, which extends the general liability for offences to all

parties involved in the consignment, packing, loading and receiving of road freight. The new

laws also include improved enforcement and investigative powers, risk-based categorisation

of offences (minor, substantial and severe) and a wider range of sanctions and penalties.

This will impact all business in the Transport & Logistics industry, particularly around the

development of mandatory systems and process to manage risk of responsibility. This will

have a corresponding impact on the requirements for additional compliance skills of the

industry’s workforce. The implementation of this Bill provides an opportunity to position

workforce development activity as a constructive part of embedding systems and processes.

This legislation is in different stages of implementation with Victoria and NSW having started

in 2005. The following state government departments have oversight of Chain of

Responsibility:

Queensland - Queensland Transport

New South Wales – Roads and Transport Authority

South Australia - Department of Transport, Energy and Infrastructure

Victoria – VicRoads

Western Australia – Department of Transport

Northern Territory – Northern Territory Transport Group

Tasmania – Department of Infrastructure Energy and Resources


Existing Industry Specific Workforce Initiatives

In an effort to assist the Transport and Logistics Industry, the Australian Transport Council,

in November 2009, committed itself to establishing a collaborative mechanism to improve

the connection and working arrangements between all levels of government and industry,

through the development and implementation of a National Workforce Planning and Skills Strategic Action Plan (Strategic Action Plan). The National Workforce Planning and Skills

Working Group established the Strategic Action Plan, in consultation with a cross‐section of

industry stakeholders, to provide a foundation for this government and industry collaboration.

The Network Performance Standing Sub‐Committee of the Standing Committee on

Transport was given the responsibility for developing and facilitating the delivery of a

detailed implementation plan based on comment and input received during the consultation

phase, as well as providing regular progress reports. The Sub‐Committee consists of

representatives from all State, Territory and Commonwealth Transport Agencies, with direct

connection to the Transport and Logistics Industry at all levels.

The strategic areas of focus were identified as:

• Collaboration and Coordination - to improve connections and working arrangements

between industry and government agencies at the national and state/territory level

regarding Transport and Logistics Industry workforce planning and skills issues; to

identify an appropriate national mechanism for ongoing industry and government

collaboration including the facilitation of a regular national industry workforce planning

and skills forum.

• Skills Supply and Labour Market – to identify and publish skills gaps and other relevant

workforce information, data and statistics on the Transport and Logistics Industry; to

undertake regular reporting including recommendations on Transport and Logistics

Industry workforce planning and skills requirements.

• Education, Training and Qualifications – to promote the uptake of nationally recognised

portable qualifications to support transport and logistics supply chain efficiency; to ensure

the national training system is responsive to the emerging skills demands of the industry;

to support the continuing alignment of industry certification, licensing and qualifications

with nationally recognised training.

• Careers – to promote the coordination and development of industry career pathways

information and resources; to promote and support national industry initiatives to support


workforce planning and skills; raise awareness of the Transport and Logistics in schools,

higher education and in the community

• Safety and Security – to ensure the impacts of changes to safety and security policy and

legislation on Transport and Logistics Industry workforce planning and skills are

understood and addressed.18

In October 2010, a National Transport and Logistics Workforce Planning and Skills Forum

titled Securing a Skilled Workforce tor the Transport and Logistics Industry into the 21st

Century, was held in Canberra. It was hosted by the Australian Government Department of

Infrastructure and Transport and pledged to:

• Improve connections and working arrangements between industry and government

agencies at the national and state/territory level; and

• Identify an appropriate national mechanism for ongoing industry and government

collaboration.

The forum concluded a need to develop concrete actions on four other themes:

• Skills supply and the labour market

• Education, training and qualifications

• Careers

• Safety and security

The outcomes of this forum and subsequent actions are strongly supported by this Skills

Plan and it is recommended that resulting initiatives be implemented in Tasmania.

The Transport and Logistics Industry Skills Council (the Skills Council) is one of 11

national organisations that have a key role in advising government on national industry skill

requirements, and providing advice to industry around national workforce planning initiatives,

training package development and the national vocational education training system.

The Skills Council receives funding from the Commonwealth Government and attracts

funding support through other Governments projects, non-Government projects and industry

sponsorship. It has a responsibility to liaise with a broad range of industry, government and

18 Australian Transport Council - Transport & Logistics: National Workforce Planning And Skills Strategic Action Plan November 2009


community key stakeholders including, business organisations, industry peak bodies,

training organisations, unions, government departments and regulators.

The Skills Council service provision centres on:

• Providing accurate industry intelligence to the vocational education and training

sector about current and future skill needs and training requirements

• Supporting the development, implementation and continuous improvement of quality,

nationally recognised training products and services, including industry Training Packages

• Provision of workforce planning services to industry

• Working collaboratively in research and policy projects focusing on the industry skill

and labour requirements

• Developing learning and assessment resources to meet targeted industry training

needs

TLISC is currently scoping work on the continuous improvement program for work in the

following areas:

A steering committee is currently being formed and will start work in December 2010

on the creation of this unit/s of competency for Chain of Responsibility

Several qualifications have been now been included in the Transport and Logistics

Industry Training Package. Work is being done to introduce new units in Road, Rail, Aviation

and Maritime.

TLISC will be increasing activities in assisting employers in all industry sectors in regards to

supporting the development of employee literacy and numeracy. Where organisations

believe that productivity could be increased through improved literacy and numeracy, TLISC

will provide advice and access to funded programs to assist organisations to achieve this.

Broader Workforce Development Initiatives

In November 2009, The Commonwealth Government announced it would release an

additional 11,000 places from Productivity Places Program aimed at assisting individual

enterprises increase their productivity as well as the skill levels and mobility of workers, by

providing employees with opportunities to increase their qualification levels. Around $25

million was set aside for this phase of the program known as the Enterprise Based

Productivity Places Program (EBPPP) and the Transport and Logistics Industry Skills


Council has played an integral part in the application process. EBPPP is designed to

increase the skills of existing workers in occupations on the priority occupations list.

Qualifications will be part-funded from Certificate III to Advanced Diploma level.19 Depending

on the size of the company, the Department of Education, Employment and Workplace

Relations funding will range from 50% (for firms employing over 200 staff) to 90% (firms with

under 100 staff) of the total cost for training places. These places were made available to the

following groups:

•Small to Medium Enterprises

•Professional Associations and Industry Bodies

•Enterprise and businesses with multi state operations20

In Tasmania, out of the 39 business granted approval in the first round program (which

ended in May 2010) there were no companies from the Transport and Logistics sector. This

was despite an application oversubscription at a ratio of 6:1.

In 2009, the Australian government adopted the Workplace Innovation Program to provide

grant funding for innovative, one‐off projects that address workforce and skills development

needs. For example projects could seek to identify and pilot ways to:

• lift the innovative capacity of Australian workplaces and workforces in a region or industry

sector

• identify leadership, culture and management initiatives at the workplace level aimed at

improving innovation, driving productivity and ensuring sustainability

• improve the responsiveness of the national education and training system to the modern

labour market

• sustainably address labour and workforce skill demands in a region or industry sector

• develop high performance workplaces

• facilitate joint industry/RTO pilots to develop innovative solutions to training problems being

faced by industry and extend the learning to other sectors

19 Department of Education, Employment and Workplace Relations – Enterprise Based Productivity Places Program 8 February 2010 20 Transport & Logistics Industry Skills Council – National Enterprise Based Productivity Places Program www.tlisc.com.au 25/10/2010


• develop, test and provide support tools, frameworks, blueprints and guidelines on best

practice to help enterprises lift productivity through improved skills utilisation

• identify the gaps between workers existing skills and the skill needs of enterprises in a low

carbon economy, and then demonstrate pathways to assist workers meet these skill needs

in the transition to a low carbon economy21

The provision of government funding through the Workplace Innovation Program gives

industry the impetus to be innovative and initiate practical workforce and skills development

projects. The onus is on both government and businesses to play a part in this regard,

relieving businesses of the need to self-fund the one-off projects.

The Department of Economic Development Tourism and Arts has developed the Better Workplace Resources Kit to assist Tasmanian small business with modern employment

and workplace practices. They have also initiated the Employer of Choice Program to

recognise and promote businesses that create workplaces of choice by being able to attract

and retain workers successfully.

The Youth Participation in Education and Training (Guaranteeing Futures) Act 2005,

which became law in 2008, requires all young Tasmanians completing Year 10 to participate

in education, training or full-time employment until they have turned 17. This provides

industry with a point of leverage to influence the career pathways of young Tasmanians.

Good examples of where the industry has attempted to influence career pathways are:

In May 2010, the TFLC sponsored and arranged the Australian Trucking Association’s (ATA)

“The Road Ahead” exhibition. This was a tour of Tasmania schools by state of the art semi-

trailer to promote the Australian transport industry using interactive exhibits and structured

class group programs.

The Council also participated in a July 2010 Careers Expo at Rosny College to get

prospective school leavers to start thinking about a possible career in the transport and

logistics industry.

A flyer on the Logistics Information and Navigation Centre (LINC) website was sent out to all

human resource and recruitment companies statewide as well as high schools, TAFE and

21 Dept of Education, Employment & Workplace Relations – Workplace Innovation Program WIP Feb 2010 http://www.deewr.gov.au/Skills/Programs/Documents/WIPGuidelines.pdf


higher education facilities. A LINC advertisement was placed in the three major Tasmanian

daily newspapers during the 2010 year to bring attention to the freight industry. The site has

a dedicated career section, detailing the different pathways and salaries of over one hundred

different careers in rail, road, sea, air and services to the freight industry. 22

22 http://www.the-linc.com.au/Home/TAS/Careers/CareerBriefs/tabid/856/loc/tas/Default.aspx


6.0 CASE STUDIES

The Industry Health Check Survey of February 2010, made recommendations that case

studies should form part of an all encompassing industry Skills Plan to get a clearer

understanding of issues relating to problems with recruitment, skills shortages and the use of

competency standards and the national training packages in workforce development. These

studies, documented below, highlight the positioning of training and workforce issues by

businesses and illustrates the criticality of workforce development to industry but at the

same time the lack of connection to the infrastructure of the vocational education and

training sector. Where appropriate, interviewees own words have been quoted.

TNT EXPRESS23

Thomas Nationwide Transport was founded in 1946 in Australia. TNT Express is TNT’s

express delivery services unit, has operations in 65 countries, and delivers documents,

parcels and pieces of freight to over 200 countries.

TNT’s training programs are all coordinated through an online portal, ExpressNET – an

internal training database that contains over 40 courses. Every course or module of this

program relates to various tasks and functions required in the workplace. Each course

contains sections that have either video or powerpoint presentations followed by a ‘must

pass’ knowledge test. Workers can undertake the course/test as often as they like so long

as they pass.

Training records are kept for every worker and reminders are sent when topic refreshers or

retesting is required.

TNT carries out Regulated Air Cargo Agent (RACA), Dangerous goods and forklift training.

They are approved as a certifying body under the auspices of Department of Transport and

Regional Services (DOTARS). Some courses e.g. forklift require one to one follow-ups and

practical tasks. TNT sends worker test responses to DOTARs who audit them and thereafter

provide certification.

Each year all staff are sent a training manual and a National training calendar. Salaried

employees can choose from this and discuss their attendance at six monthly performance

reviews of their progress against position key performance indicators (KPIs). The review

includes a look at training done, progress/actions against KPIs and training required. If the

23 Interview with Grant Pitchford - State Compliance Coordinator


required training is not in the calendar, it can be sourced from other approved providers or

on the open market.

TNT’s induction module covers job tasks, position attributes and experience. TNT does not

require a national qualification for entry. They would like to recruit more young people, but

have found issues with reliability and willingness to work. Licensing issues are not a barrier

to employing young people for TNT.

TNT does not face problems in recruiting and retaining staff. They have a highly structured,

well planned and managed training regime that begins soon after recruitment and continues

with the employee throughout their employment. The training is compliance based to meet

client quality assurance standards as well as their own internal performance standards.

SRT LOGISTICS24

Formerly known as Statewide Refrigerated Transport, SRT Logistics is a Tasmanian, family

owned trucking service that transports perishables. They operate in Tasmania and across

the Bass Strait into Victoria. They have been in the business for over 20 years.

In the 5 years Jo has worked for the company, it has doubled in size and currently has a

workforce of 177. SRT specialise in clean pallet food freight dealing with big firms such as

Inghams and Coles and Woolworths. As a result, they have to adhere to stringent

compliance on food safety as determined by the contracting company.

SRT has a ‘great relationship’ with Pat Kearney and Brett Brown of EDA RTO. Brett is a

former manager of SRT and his internal knowledge has benefited the relationship they have

with this RTO. Initially, EDA was putting over 60 staff through existing worker traineeships.

SRT was not overly happy with the content and assessment provided by the RTO. This was

overcome by the development of workbooks for every unit across the organisation. The

workbooks map to units of competency but are based on real workplace tasks and with

workplace specific context and content.

Refrigeration aspects of the business have been added to the range of context and

incorporated into the materials as appropriate. This gives SRT significant confidence that

what is being ‘trained and assessed’ fits their requirements exactly. Workbooks provide

required flexibility because training can be done at any time. The emphasis of the workbook 24 Interview with Jo Tye - Human Resources/Compliance Manager


is learning rather than assessing. The workbooks are assessed in-house by SRT staff and

validated by third party assessors. All salaried staff are offered applicable national certificate

qualifications as an outcome of completing workbooks.

Position descriptions show desirable applicable qualifications but these are not mandatory

for employment at SRT. SRT places a big focus on customer service and recruits on this

basis but the down side is that these skills do not always compatible with good truck driving

skills.

SRT does not engage its staff under apprenticeships but does offer national certificates as

outcomes of training. This has significant quality assurance outcomes for SRT i.e. 18% of

the workforce hold a Certificate III or higher in Transport and Logistics with a further 19% at

various stages of course progression. The formal credentialing of the workforce is perceived

as highly favourable when tendering for work with large National companies.

The employment of young people is not a conscious issue for SRT. They have had

predominantly bad experiences with young people – 50% related to reliability and work ethic

and 50% to the capacity of management/supervisors to look after young recruits.

SRT Logistics have developed an exemplary relationship with a Tasmanian RTO. This

relationship has been built over several years and the core to its success is the

contextualisation of national training material and standards to enterprise specific

requirements. They use workbooks that are AQTF compliant for training purposes and use

trainers with extensive industry knowledge. The underpinning of all training effort to national

standards and qualifications is a win win situation for SRT – it provides for a quality

workforce and assists in procuring new business. They do not have difficulties recruiting or

retaining staff.

FRESH FREIGHT25

Fresh Freight is a privately owned refrigerated transport company founded in 2003. They

employ over 50 staff and provide freezer, chiller and dry transport services to Tasmania and

to all the other states. They have two depots in Tasmania and one in Victoria.

25 Interview with Dean Hart - Managing Director


Dean started his company eight years ago. According to him, the transport industry is

largely invisible to youths in schools, with no advertising and there’s a negative perception of

the industry. There is a clear need to engage people from the age of 15 to 16 while they are

still uncommitted in terms of their careers. TAFE graduates are more aware of the

administrative aspects of the industry but do not know much about basic equipment used,

say, in a warehouse. Colleges are not eager to find out more about the Transport &

Logistics industry.

Most youngsters are introduced into industry through family ties due to a lack of a structured

career pathway. Young trainees are usually not very literate and have to be taught on the

job the very basics from the beginning. This takes up productivity time and can affect

deadlines.

After as little as six months, young workers are more likely to stay on, and so there are no

staff retention problems. Due to the small nature of the operation, it is easy to multi skill staff

who are constantly moved from one role to the other over short periods of time.

Recruiting drivers in Tasmania is very difficult. There is a 26-year age lower limit for truck

drivers due to insurance requirements and the average age of heavy goods vehicle drivers is

50. Therefore, these two factors alone will make it very difficult to replace those who will

retire soon.

In a short period of time, Fresh Freight has become established as a leading player in the

transport industry. They have invested in competency-based training and have been able to

secure large contracts based in part on their ability to comply with quality assurance

requirements. The business continues to grow with retention of staff not posing a problem.

Driver recruitment is a problem in Tasmania and the aging driver workforce a cause for

concern.

TWO WAY TAXI TRUCKS26

Two Way Taxi Trucks is a family owned furniture removal company, based in Moonah.

John Radcliffe has been in the furniture removal business 46 years and employs eight

people in addition to two storemen. He laments the lack of formal training for his sector of

the industry. He remembers that there used to be a course in Burnie where trainees moved

26 Interview with John Radcliffe - Managing Director


furniture around etc. This was a good thing for the industry, which did not have to train

recruits from scratch. This program no longer exists as far as he is aware.

Many employees move around various removal businesses. John looks for experience

when recruiting, but it is difficult to find staff with the right experience. He seems able to get

staff but they increasingly lack focus and care/pride in their work. He has tried getting young

people from school but there are no apprenticeship pathways. The young generation also

lack the maturity required to work in the industry.

Smaller established operators have difficulty remaining viable when faced with competition

from low cost operators/ entrants to the market. Because there are no barriers for incoming

competition, it is hard to maintain focus on quality.

Two Way Taxi Trucks is a small business that is struggling in today’s competitive

environment. They have maintained traditional systems and struggle to attract young

people. They have been unable to invest in training and are not aware of any form of

assistance that may be available in this regard.

AIR TRADE27

Air Trade has been servicing the aviation industry in Tasmania for 18 years and is the

biggest employer at Tasmanian airports, with 58 full-time and 4 part-time staff. It is

responsible for Jetstar’s ground operations in Tasmania.

There is an enormous amount of compliance related skills required to work in airfreight

logistics. Carriers like Jetstar, with whom they have a contract, make this an upfront

requirement. New staff have an induction form that is a checklist of compliance issues they

must know and in house trainers/ mentors are assigned to new recruits. Some skill

development components are workbooks to be completed offline and some components

require logging into e.g. Qantas online training. In house trainers and any manager that

wishes to is funded to complete a Certificate IV in Training and Assessment. As far as Scott

is aware, the national VET training packages do not cover his sector of the industry.

New recruits are rotated through job roles. It takes up to 3 months before they can start to

work on their own albeit under guidance from a supervisor. RPL is offered to recruits if they

have been in the industry prior to joining Air Trade.

27 Interview with Scott Cleary - Managing Director


Each position in the organisation has its own list of job functions and these are associated

with some form of training/ professional development modules. Now that they have been

created they are used for career progression as well as induction. Each staff member has

their own training file, managed through a purpose built MS Access Database.

Management of the work functions and compliance (workforce development) has become a

core part of the business potentially taking up to 20% of the management input.

Support from the formal training system is good as far as back office roles are concerned;

however, it is non-existent for other areas of the business despite having a staff complement

of over 120. Scott is aware that there is a 2-year traineeship run by My Freight Career, a

Registered Training Organisation established specifically for the Import /Export, International

Trade Logistics, Freight Forwarding (Air and Sea), Road/Rail Transport, Shipping and

Aviation industries but this is not used by his business.

A background in hospitality provides a career pathway into the Freight industry as customer

relationship management is core to the industry. Initially, Air Trade targeted the 25-40 age

group for employment, but now they have a spread of ages ranging from 19 to 65.

For school leavers there are significant barriers – the main one being licensing and

insurance. Aviation Security Identification Card (ASIC) requires the holder to be over the age

of 19. Another problem is the lack of public transport to the airport – so recruits must have

their own vehicles.

Air Trade do not have problems recruiting or retaining staff. They have a watertight training

schedule which ensures that they meet minimum compliance standards set by contractual

obligations. Licensing requirements make it impossible to recruit straight from school with a

19 year old lower age limit set for new recruits.

TAS RAIL28

On 1st December 2009, the State-owned Company Tasmanian Railway Pty Ltd (Tas Rail)

was established under the Rail Company Act 2009. Tas Rail operates within the regulatory

safety framework created under the Rail Safety Act 1997, administered by the Tasmanian

Rail Safety Regulator.

28 Interview with Stephen Kerrison - State Operations Manager


Tas Rail was created by combining the below rail assets (track and associated

infrastructure) that the State had assumed responsibility for in 2007, with the above rail

(rolling stock) and business assets purchased from Pacific National in late 2009.

Headquartered in Launceston, Tas Rail has been created as a vertically integrated rail

business, inheriting all rail track infrastructure; rolling stock; workshops; depots; workforce

and systems and Pacific National’s customer base.

Workforce retention is a major issue for Tas Rail. Maintenance of a sufficient number of

experience operators is critical to the ongoing operations and ability to train new entrants.

Currently they are trying to develop a comparable (to mainland) package to employees to

keep them in the business and then use them to train new people. In the recent past,

business uncertainty and lack of training pathways has increased the uncertainty of the

business’s future. As a result, the business is establishing a training section which will

provide more trainers and an increased focus on continual professional development. In a

few instances, training such as IT is outsourced, but most of it is done in-house. Most of the

training is competency based (using national training packages) but they also have time-

bound licences, which are renewed as part of operational compliance.

Trades areas rely very heavily on supervisors to mentor and train newer recruits and so they

are creating a career pathways and structure within their operational areas to enable

technicians to focus on their specific job roles and free up supervisors to improve the

capacity to develop work teams.

Amongst drivers the average age is 50 and above, with a large number nearing retirement

having worked their way up from being shunters. There is no problem with finding track work

labourers who are locally available. The occasional low level of literacy is a minor issue for

these workers.

There are specific problems at present concerning project management, particularly the

engineering branch, where there are no locally available engineers. As a result, they are

forced to hire consultants to manage projects and meet deadlines placed on them by their

Government owners.

The pay package disparities between Tasmania and those offered in other states is a threat

to retaining staff. The company has in the recent past experienced upheavals involving

change of ownership and as a result faced an uncertain future (further threatening the

retention of staff). However, they have a well-structured training program and are investing

more resources in a dedicated training section. They have also restructured the roles and


responsibilities within the workforce to improve capacity for workforce development. There

is a short supply of workers in specialised fields e.g. engineering project management,

however this has been created from a spike in demand rather than a shortage of supply.


7.0 DISCUSSION OF FINDINGS

The effect of customer contracts on Skills Development

It is clear that training and skills development in the transport and logistics industry is an

integral part of business operations. Human resources are as integral a part of the delivery

of the service as physical resources. Management of the workforce is therefore

understandably a key driver of the success or failure of businesses.

The dynamic and complex nature of the regulatory and legal environment in which the

industry operates mandates compliance as the key driver of skill demand. Without the

appropriate tickets and licences businesses are simply not ‘in business’. Because of this

operational imperative, the establishment of robust policies and procedures to manage

compliance is a common feature of the more successful operations.

Above and beyond operational compliance are quality assurance systems (across a

spectrum of operations eg food safety, hazardous goods, perishables etc). The need to

achieve compliance and embed this with systems, practices and procedures is paramount to

winning and maintaining contracts with companies that require the services of the industry.

Recruitment and Retention

The industry health check reported recruitment difficulties across the industry, particularly for

experienced personnel. However, it is evident that the higher performing businesses have

no difficulty recruiting (albeit that this may be termed poaching). Employers of choice invest

well in their employees and it is evident that they recruit labour with ease. They have set up

training systems that match their operational requirements and these systems are

embedded throughout the organisation, providing all employees with the same quality and

focus on continuous professional development. This ensures quality, employee productivity

and at the same time high worker retention rates. Such organisations continue to

experience high levels of productivity and growth and their operations provide exemplars for

this industry and others.

Industry and RTO Convergence

Whilst ‘training’ is not the ‘front of mind’ term for skill development activity in the industry

(most ‘training’ staff are titled ‘compliance’) many businesses have benefited from

investment in systems that align with the national VET infrastructure of training packages

and national competency standards. Clearly the VET world is one of little interest to

business operators but several companies have affiliate themselves with professional, well-


established Registered Training Organisations who manage the ‘training world’ for them.

Not only does this provide significant financial support through various Government

channels but also provides significant competitive advantage in proof of systems to potential

customers and previously discussed benefits in terms of workforce development and

retention. It is clear that this approach requires time and from all parties but the return on

investment is very clear.

Variances in Investment Capabilities

Small businesses have limited financial, operational or technical capacity to enable them to

invest fully in skills development. As is common across the small business sector, owners

too often work “in the business and not on the business” and obviously do not have the

luxury of dedicated staff to manage workforce development issues. In all the business case

studies, except one, there is a substantial focus by management on workforce development.

They view this as a core task, vital to business sustainability and expend significant amounts

of time and financial resources to ensure workforce skills requirements are fully met.

However, they have limited knowledge of the VET training packages and competency

standards and similarly little knowledge or awareness of the large number of initiatives and

support programs available to them. This situation is naturally heightened across the small

business sector. Implementation of the Chain of Responsibility bill will effect every business

in the industry requiring a heightened focus on systems and processes to mitigate risk. A

component of this will be skills and knowledge of workers. This Bill provides an opportunity

to consider the recommendations of this report as part of the implementation effort.

Industry Governance

As noted Nationally, workforce development activity in the Transport and Logistics Industry

is critical to Australia’s productivity. This is clearly also the case In Tasmania where industry

output is forecast to double in the next 20 years. None of the national initiatives or

recommendations of this report will progress without leadership and drive. The TTLWAG (or

similar body) has a significant amount of work to steer and the issue of leadership and

governance requires clarification as a matter of urgency. It is noted that there is a

disconnect between the governance of the TTLWAG being co-chaired by the Department of

Infrastructure, Energy and Resources and its brief being related to workforce issues (which

more naturally ‘sit’ with Skills Tasmania). Approaches to workforce development in other

States of Australia are described in the appendix.


Negative Industry Perceptions

The industry has an ageing population (above average), employs very few younger workers

and has a number of structural barriers to the recruitment of young people. Whilst leading

businesses in the industry do not have recruitment difficulties they are the exception rather

than the norm. The industry perceives itself as having a poor image within the community.

Clearly this does little to attract the next generation of workers.

Labour supply can shift quickly, especially when mining and other commodity booms attract

large numbers of drivers across state borders and movement between operators is common.

The total pool of trained and available driving personnel will need to be expanded to meet

forecast growth.

In Tasmania, enrolments in Transport and Logistics qualifications are very low when

compared to the numbers that are employed. 2009 saw the enrolment of around 1100

students in total in an industry that employs in the region of 30,000. At this slow rate of

student uptake, the industry will continue to look at an uncertain future with no end in sight to

projected skills shortages against a massive increase in the overall freight task over the next

20 years. Structural issues (licencing and insurance) exacerbate this problem. The industry

needs ways for workers to acquire heavy vehicle driving licences in a more compact time

frame so that the labour pool can be expanded at a pace that will meet expected industry

growth.29

29 Transport & Logistics Industry Skills Council – Environmental Scan 2010


8.0 CONCLUSION

This report builds on the Transport and Logistics Industry Workforce Health Check Survey.

The industry is of marked importance to the Tasmanian economy employing nearly 1 in 8

Tasmanians and is critical to supporting the ongoing growth of Tasmania as a producer of

high quality brand products.

The desktop research has been supplemented by discussion with industry stakeholders and

representatives and real business case studies ensuring that the findings are evidence

based.

The recommendations are based on these findings and take into account the diverse views

of industry players as well as taking note of government and industry initiatives to improve

the overall standing of transport, freight and logistics.


9.0 APPENDIX

References

1. The Logistics Information Navigation Centre http://www.the-linc.com.au/Home/TAS/Careers/CareerBriefs/tabid/856/loc/tas/Default.aspx

2. Queensland Government – About Skills Queensland www.training.qld.gov.au/industry/qsc/about.html 29/10/2010

3. Dept of Education, Employment & Workplace Relations – Workplace Innovation

Program WIP Feb 2010 http://www.deewr.gov.au/Skills/Programs/Documents/WIPGuidelines.pdf

4. Transport & Logistics Industry Skills Council – National Enterprise Based Productivity

Places Program www.tlisc.com.au 25/10/2010

5. Tasmanian Freight Logistics Council: ‘Doubling of Freight Task in Tasmania’ Report 22 July 2009

http://www.tasfreightlogistics.com.au

6. Tasports Annual Report 2008/09 – Freight Statistics and Port Information

7. Occupational Skills Shortage Analysis – Tasmania Phase One Report July 2008 - http://www.skills.tas.gov.au/skillstas/policy-and-publications/Skill_Shortages_Report_-_Final.pdf

8. Qualifications and Skills for Tasmania Tomorrow-

www.education.tas.gov.au/dept/budgets/budget0708/Tasmania-Tomorrow-Detail.pdf

9. Transport & Logistics Skills Council - VET Products and improving the national training system www.tlisc.com.au 25/10/2010

10. Skills – Creating our future - The Tasmanian Skills Strategy 2008 – 2015

http://www.tasfreightlogistics.com.au

11. Facts and Statistics - Transport & Logistics Industry Skills Council – www.tlisc.com.au

12. Australian Logistics Council – Contribution of Transport & Logistics to the Economy -

Dispelling the Myths (2007) http://www.austlogistics.com.au/dmdocuments/gdp2007.pdf

13. Australian Transport Council - Transport & Logistics: National Workforce Planning And Skills Strategic Action Plan November 2009

14. National Centre for Vocational Education Research – Exploring the relationship between industry and the VET system – 2007

15. 2009 National VET Provider Collection


16. Transport & Logistics Industry Skills Council – Environmental Scan 2010

17. National Centre for Vocational Education Research- Demographic impacts on the future supply of demographic skills 2008

18. Department of Education, Employment and Workplace Relations – Enterprise Based Productivity Places Program 8 February 2010


10.0 CONSULTATION LIST Tasmanian Transport and Logistics Work Advisory Group Members

1. Rob McGuire (Chief Executive Officer, Tasmanian Freight Logistics Council)

2. Bill Baarini (General Counsel ,Transport Workers Union)

3. Stephen Cahoon (Head of Department, Australian Maritime College)

4. Stephen Kerrison (State Operations Manager,Tas Rail)

5. Allan Kenny (Manager, Skills Response Unit, Department of Economic Development, Tourism & the Arts)

6. Rob Tilley (Project Officer, Skills Response Unit, Department of Economic Development, Tourism & the Arts)

7. Sophie Reid (Assistant Director, Infrastructure Policy, Department of Infrastructure, Energy & Resources)

8. Catherine Miller (Policy Analyst, Infrastructure Policy, Department of Infrastructure, Energy & Resources)

9. John Furness (Project Manager, Department of Economic Development, Tourism & the Arts)

10. Robin Phillips (Executive Director, Tasmanian Transport Association)

11. Leslie Richardson (Manager, School apprenticeships, Polytechnic Tasmania)

Case Study Firms

TNT Express - Grant Pitchford (State Compliance Coordinator)

SRT (Statewide Refrigerated Transport) Logistics - Jo Tye (Human Resources/Compliance

Manager)

Fresh Freight - Dean Hart (Managing Director)

Two Way Taxi Trucks - John Radcliffe (Managing Director)

Air Trade - Scott Cleary (Managing Director)

Tas Rail – Stephen Kerrison (State Operations Manager)


11.0 QUESTIONS ASKED TO STAKEHOLDERS

Policy and Regulatory Issues • Is there any new legislation being considered or in process that will have a bearing on the

skill requirements of the Transport, Freight and Logistics industry? • Are there any major policy or regulatory compliance shifts the industry can expect in the

near future?

Small and Micro Businesses • Are there any significant or specific issues in relation to small business operators?

Skills and Training • What is your overall view on the current state of workforce skills supply and

development? • How does Tasmania compare to other states in terms of skills?

National and International Trends • Are there any industry related trends in other parts of Australia that are likely to impact on

Tasmania’s industry in any way? • What recent developments on the international transport and logistics scene can industry

learn from?


12.0 WORKFORCE DEVELOPMENT INITIATIVES ACROSS AUSTRALIA

Western Australia

In late 2009, the WA Government created the Department of Training and Workforce

Development (DTWD) with the new role to lead and coordinate the State Government’s

approach to build, attract and retain a skilled workforce.

The mainstay of the economy in WA is in resources and construction. As a result, their

workforce action plan (Resourcing the Future: National Resources Sector Employment

Taskforce) announced in July 2010 addresses issues specific to these industries. Part of the

plan urges forging stronger ties between industry and education and recommends the

following action plans:

• That the Minerals Council of Australia and the Australian Petroleum Production &

Exploration Association work with governments, unions, industry skills councils and

education and training providers to develop a marketing kit to promote agreed career

pathways and short and long-term job opportunities in the resources sector.

• That state and territory governments and employer associations, work to further

develop connections between schools, Trades Training Centres and the resources sector in

major resources regions to support employment pathways for secondary school students.

• That the Australian Government work with education authorities to ensure future

rounds of Trades Training Centre funding take into account the anticipated strong demand

for skills in the resources and construction sectors. Schools with strong links to the

resources and construction sectors could be targeted, as they should have the greatest

capacity to graduate Year 12 students into those sectors.

• That school and vocational education and training officials and stakeholders continue

work to ensure that vocational training undertaken in a school context, or as part of a

pre‑vocational training course, is fully recognised for quality and relevance by employers

and training organisations.

• That the Australian and state and territory governments continue to work together on

strategies to urgently increase senior school students’ participation, attainment and

engagement in mathematics and science, noting these subjects open the door to careers in

the resources and construction sectors.


National Resources Sector Employment Taskforce Discussion Paper - Resourcing the

Future: National Resources Sector Employment Taskforce30

The Western Australian government receives advice from its Industry Training Council

Network as well as industry advocacy groups such as the Chamber of Commerce and

Industry (WA) and the Chamber of Minerals and Energy (WA) in its determination of

“industry critical occupations”.

The Department of Training and Workforce Development is currently working on a new plan

– Skilling WA: A workforce development plan for Western Australia.31

Victoria

The Victorian Government is taking action to assist regional industry in meeting workforce

needs. As identified in Victoria’s Workforce Participation Strategy, improved workforce

planning and development helps industry better determine, plan for, recruit and develop their

workforces to meet skills and labour needs.

The Moving Forward Update provided $1.8 million over two years (2008-09 to 2009-10) for

the development and implementation of five Industry Workforce Development Strategies

(IWDS) in regional Victoria to address this need.

The IWDS initiative aims to:

• Help regional industries plan for their future skills and labour needs;

• Develop a more integrated response to industry labour needs including strategies to

improve workforce planning, attraction, recruitment, training, and retention;

• Develop partnerships between industry groups, unions, universities, TAFE, local

government, employment service providers and, where possible, involvement by the

Commonwealth Government; and

• Encourage employers to consider a broader labour pool, in the context of on-going

skills shortages and an ageing population.32

30 http://www.deewr.gov.au/Skills/Programs/National/nrset/Documents/NRSETReport.pdf 31http://www.dtwd.wa.gov.au/dtwd/detcms/apprenticeships-and-training/training-and-workforce-development/binary-files/briefing-papers/workforce-development---planning-and-coordination.en?oid=com.arsdigita.cms.contenttypes.FileStorageItem-id-9182037


In the Securing Jobs for Your Future – Skills for Victoria, the Victorian government pledged

to deliver $316 million in additional funding over four years (2009-12), the largest package of

additional funding ever to be invested in the Victorian skills system. This funding will provide

for an additional 172,000 training places for Victorians over four years, boost training

delivery and workforce engagement, strengthen industry partnerships and drive major

operational and structural changes in our skills system. Securing Jobs for Your Future –

Skills for Victoria provides $52 million for Skills for Growth: The Workforce Development

Program, an initiative to address the skills needs of business and the training needs of the

workforce.

Skills for Growth will help these businesses, including those in the community sector, with

workforce skills development. It will provide a team of independent workforce planning and

training specialists providing direct assistance to 1,500 firms annually across Victoria.

This program will also help businesses manage their training investment. Through the Skills

for Growth program, eligible workers will be able to access government subsidised places.

The role of Industry Training Advisory Boards will be strengthened. Additional funding of $4

million will be provided to the ITABs to work with the Victorian Skills Commission on a

consolidated industry information service available to students, careers advisors, employers

and others seeking to facilitate the take up of training in areas of shortage.

The Victorian Government also pledges to work to establish strong linkages between these

national bodies and Victoria’s industry advisory structures, the Victorian Skills Commission

and ITABs. Where projects of strategic importance involve coordinated cross-government

effort, groups can be convened to provide expert industry advice and to consider the

associated skills needs.33

32Business Victoria – Workforce Development Strategies

http://www.business.vic.gov.au/BUSVIC/STANDARD.HTML/PC_63897.html

33 Skills Victoria – Securing Jobs for your Future

http://www.skills.vic.gov.au/__data/assets/pdf_file/0003/15969/Skills-Reform_web.pdf


New South Wales

The NSW Strategic Plan for VET (2008-10) prioritises the building of more skills state and

industry-wide through the following means:

• Increasing training participation in priority industries for state and regional

development: - Training in the most strategically significant industries for economic and

employment growth in NSW was seen as the highest priority. The NSW government

promised to fund an extra 33,000 training places over the following four years.

• Promoting early engagement with training:- Entry-level training was seen as core

business for the training system. The NSW government has guaranteed a training place to

all those up to 18 years of age who did not complete Year 12 and who have not yet got a

job. Nearly 13,000 new places will be created in entry level training over four years.

Apprenticeships and traineeships are being expanded, with those in skill shortage areas

expanding at the fastest rate

• Focus on higher level skills:- Higher level skills for new and existing workers are

increasingly important as NSW evolves into a high skill economy. More qualifications each

year will be at Certificate III level or above. Those with a low level of qualification and are not

working will be provided with opportunities to gain a qualification. Better partnerships

between training providers and employers will increase the demand for training in higher-

level skills.

• Increase flexibility of training entry and training options by improving navigation of

training options, increasing availability of Recognition of Prior Learning and strengthening

credit transfer between school education, training and higher education Skill Centres in ten

locations throughout NSW will allow people to talk to advisers about the training options

available.

• Greater engagement with industry by the training sector through an enhanced

industry role to identify skill requirements and promote workforce development.

Supplementing state level training priorities with local level information regarding skills

shortages is also necessary. The NSW Skills Council and Industry Skills Forum will provide

input from the highest level, through government, peak industry and employer bodies, as


well as from employee associations. Industry Training Advisory Bodies will provide industry

specific training advice.34

South Australia

In September 2008, the SA Government established the Training and Skills Commission,

the peak advisory body to government on SA’s skills and workforce development issues.

The hope was its formation would lead to the devolution of decision making to those closest

to the industry concerned and removes unnecessary bureaucratic processes Part of its

mandate was to prepare an initial Five Year Plan for Skills and Workforce Development. The

November 2009 plan, Skills for Jobs, had input from key stakeholders including the

Economic Development Board, the Social Inclusion Board, the Industry Skills Board and

industry, regional and community networks. In its report, the Commission made a number of

recommendations, among them:

• That the State Government strengthens its commitment to providing high quality

information and advisory services to industry and puts in place formal mechanisms to gather

advice from industry regarding skills and workforce priorities.

• That the State Government work closely with industry, providers and workforce

development intermediaries to encourage better recognition and utilisation of the skills of the

existing workforce.

• The free public provision of tools and resources (Employer Resource Toolkit and

resources developed by Industry Skills Boards).

• Continued access to subsidised workshops and the provision of follow up support to

firms.

• Establishing a number of skills utilisation projects, using funds from the State-funded

Industry Partnership Program, to build on the strategies identified in the Industry Workforce

Action Plans.

• Using peak industry bodies to provide high quality information and advisory services

tailored to meet the needs of employers.

34 NSW Strategic Plan for VET 2008-2010 – Delivering Skills for NSW http://www.uensw.com.au/media/david-

collins.pdf


Once government has made decisions on directions and on its priorities for change and

funding, the Commission, in partnership with the Department of Further Education,

Employment, Science and Technology (DFEEST), will monitor implementation.

DFEEST administers the Productivity Places Program in SA and has recently allocated

$13.6m to the 2011 Job Seekers program.35

Northern Territory

Jobs NT 2010-2012, is a forward focused NT Government initiative that will improve labour

market performance and support economic and social growth. The government will spend

$280 million over three years on supporting Territorians to develop better skills so they can

access jobs. A further $32 million has been committed for initiatives that support business

and Indigenous employment. The Department of Business and Employment will oversee the

implementation of the Jobs NT strategy.

Implementation will involve cooperation with NT, Australian and local government agencies,

industry associations, peak bodies, industry, business, employers, unions, schools,

registered training providers and individuals within the community.

Through an allocation of $59 million over three years, government will continue to support

employers to increase their uptake of apprentices/ trainees. Government is committed to

continuing the employer incentives for occupational shortage and disadvantaged groups and

to supporting employees through the Workwear/Workgear bonus. The target is 10 000

apprentice/trainee commencements over four years (2009-2012).

A demand-driven training system will give working age Territorians the opportunity to

develop the skills and qualifications needed to enable them to be effective participants in

and contributors to the Territory workforce. Government has committed $143 million over

three years to provide working age Territorians access to workplace literacy, numeracy and

work-ready programs and invest in training driven by the skill needs of industry and leading

35 Training and Skills Commission – Skills for Jobs:Priorities for Developing South Australia’s Workforce Nov

2009 http://www.tasc.sa.gov.au/Portals/0/Documents/skillsforjobs/nov09/Skillsforjobs20Nov09.pdf


to employment. The target in this regard is 2600 course completions and 88 000 unit/module

completions annually.36

Queensland

Queensland has recently launched a skills commission – ‘Skills Queensland’ that will be an

industry-led authority to drive training investment and skills reform. To commence operation

by the end of 2010, Skills Queensland will bring together key industry leaders to direct

government investment in skills, plan training and employment programs and undertake

reform of the vocational education and training system. It aims to better align Queensland's

training system with the needs of employers and industry to alleviate skills shortages and

better position Queensland to address future skills needs. Skills Queensland will be a

strategic statutory body led by a high level board including members with direct industry

experience, experience in the education and training system or other appropriate

experience, as well as the Directors-General responsible for training and employment. It will

be funded through the reallocation of funds from the Department of Education and Training;

and the Department of Employment, Economic Development and Industry.37

36 Northern Territory Government -Jobs NT Employment Strategy

http://www.nt.gov.au/dbe/employment/workforce_nt/docs/jobs_nt_2010-2012.pdf 37 Queensland Government – About Skills Queensland www.training.qld.gov.au/industry/qsc/about.html

29/10/2010