The $8.4 million SEAT package is part of an overall Automotive Industry Transition Plan worth $46.5 million announced by the Victorian Government in late 2015. The plan will help automotive businesses transition into new markets and workers to retrain and find sustainable jobs.
The package will include $4 million for a joint project between Chisholm and Holmesglen Institutes to up-skill and re-skill retrenched automotive supply chain workers, engage workers with industry, support businesses to restructure into new opportunities and to help retrenched workers find a job.
Workers will be able to access help to transition into new employment sooner, reducing the risk of long term unemployment. It will also strengthen collaboration between TAFEs, industry and the community.
$2 million will be used to establish two Skills and Jobs Centres which will allow Chisholm and Holmesglen to work directly with local employers and industry to help prospective students find a job or to move into further training.
The remaining $2 million will be used to fund Group Training Organisations (GTOs) to employ 250 retrenched automotive supply chain workers as adult apprentices and trainees.
Key Program features
- The project will fund Group Training Organisations (GTOs) $2 million over two years to employ approximately 250 retrenched automotive supply chain workers as adult apprentices and trainees. Commencement Date 1 March 2016.
- Incentives of $10,000 per apprentice and $6,000 per trainee would be paid in equal parts at the 3 and 24 months points of the apprenticeship / traineeship or at completion if it occurs before 24 months.
- The above Incentive payments will be in addition to any other State or commonwealth employment incentive available to the GTO/Host employer.
- Payments would provide for engagement of 100 apprentices and 150 trainees
(all participants will be eligible for VTG funding for further training through TAFE)
- Additional funding of $100,000 (over two years) would be provided to the Group Training Association of Victoria to plan, promote and support the initiative. The program would connect with Holmesglen and Chisholm Back to Work initiatives.
- Most Modern Awards require apprentices and trainees over the age of 21 be paid higher rates of pay substantially increasing the costs to the GTO (or their host employers) of employing a mature age worker. The proposed funds for GTOs would help bridge the gap between junior and adult apprenticeships wages.
(Refer to attachment A: Helping retrenched auto supply chain workers in Melbourne’s South East.)
Key demographics of potential participants
- 56% of employees have worked with their current employer for more than 10 years
- 28% are female / 72% male workers
- 63% of employees are aged between 40-55
- Current career options identified by Hudson (through initial career transition sessions)
- 22% into manufacturing
- 20% transport/ warehousing
- 10% building & construction
- 11% prof scientific & tech services
- 13% admin, safety, financial / business services and retail
Eligible employers of participants
Tier 1 – directly impacted (ie Ford, Holden, Toyota)
Tier 2 – auto supply chain workers (specific target group for SEAT)
Initial contact with employers is through Victorian Government Dept. Economic Development
GTAV / GTOs will be provided with referrals (refer to section: Proposed implementation process)
GTAV SEAT has a specific focus on South East region
- 85 businesses in the S/E region
- 7500 participants in the S/E region
- It is estimated that there are 12000 individuals affected by the auto manufacturing closures
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