3. Apprenticeships

Unions have welcomed the approach of the coalition government in putting apprentices at the heart of its skills policy and recognising the role of trade unions in promoting and supporting apprentices. The government is committed to creating 75,000 more apprentices by 2014-15 and an additional £250 million funding.

Apprenticeships give people the opportunity to “earn and learn”, gaining job-related skills and qualifications through both on- and off-the-job training. On-the-job, apprentices work alongside more experienced employees, or mentors, and are shown how to do specific work tasks, while off-the-job training is usually delivered by a training provider, such as a local further education (FE) college. Some large companies have their own accredited on-site training.

Promoting apprenticeships

After years of decline, apprenticeship numbers climbed under the last Labour government. There were 279,700 apprentice starts in 2010 compared with just 65,000 apprenticeship starts in 1996-97 and numbers are continuing to increase. But demand still far outweighs supply. For example, public services union UNISON recently reported:

“Craft and technical apprenticeships used to be common in public authorities, but this practice has been almost wiped out by twenty years of competitive tendering and privatisation. As a result, many public service employers are now faced with an aging workforce, skill shortages and difficulties attracting young workers.”

Unions say that the skills strategy will provide them with further opportunities to promote apprenticeships. According to retail workers’ union Usdaw’s deputy general secretary Paddy Lillis , the increased funding of Adult Apprenticeships in particular has opened up doors for the union in terms of encouraging employers to look positively at this agenda.

“The signs in retail are very positive, and all indications are that Usdaw will encourage a number of employers in food processing and distribution who have not previously engaged with apprenticeships to do so,” he told LRD.

Retailing is one area that has seen a major growth in apprenticeships and around two-thirds of retail apprentices are women. Usdaw says that the big four food retailers are all committed to expanding their apprenticeship schemes and reports that:

• Sainsburys is committed to creating an extra 300 apprenticeships over the next year so that they have at least one in each store;

• Tesco will be providing over 2,000 new apprentices over the coming year;

• Morrisons is aiming for 12,000 new apprentices this year; and

• The Co-op Group is to take on 2,000 apprentices over the next two years, through its newly established Apprenticeship Academy.

The National Apprenticeship Service (NAS) recently named the top 100 apprenticeship employers. These include:

• BT which has trained 10,500 apprentices over the last five years;

• Lancashire County Council, which has recruited more then 450 apprentices into the organisation since 2006 and is currently leading a project aiming to create 300 apprenticeship opportunities across the schools’ workforce in Lancashire;

• North Bristol NHS Trust which currently employs 167 apprentices; and

• Rolls-Royce which has 794 apprentices among its 40,000 strong workforce in accounting, engineering and engineering technology.

Promoting equality and diversity

The TUC guide for union negotiators and reps, Apprenticeships are union business, says that ensuring that under-represented groups such as young women, black and minority ethnic (BME) and disabled workers have the opportunity to access apprenticeships across the economy is vital.

It reports that, for example, only 2% of engineering apprentices are women and girls and while the 12% of apprenticeship starters who have a disability is a reasonable reflection of wider society, only 5% of those on advanced apprenticeships are disabled.

There is now a substantial body of evidence highlighting the continuing inequalities in apprenticeship training opportunities and conditions of work. Most recently a 2011 survey on apprenticeship pay, retention and training, commissioned by unionlearn and carried out by pay analysts Incomes Data Services (IDS) showed a higher concentration of female apprenticeships in the lower-paying sectors, such as hairdressing and social care. The gender pay gap in Apprenticeships has been estimated by the TUC to be around 26%. In the category Extractive and Mineral Processing Occupations where the average salary was £17,609, no female apprentices were recorded.

In order to try to tackle some of these issues the National Apprentice Service (NAS) has funded 16 diversity pilots. These include the following projects:

• The voluntary youth sector organisation Rathbone is working in Oldham, Leicester and Bradford to encourage more black, Asian and other minority groups to become apprentices;

• Zodiac Training in the North East and West Notts College in the East Midlands are undertaking pilots looking at breaking down stereotypes. Zodiac is tackling the under representation of men in the health and social care and child care sectors and West Notts College is looking at bringing in more women into the Logistics and Passenger Transport sectors;

• Triangle Training is delivering a regional (South West), cross-sector service to learners with learning difficulties and disabilities (LLDD) with the aim of creating a legacy for the way providers support and engage LLDD into Apprenticeships; and

• Bury College is seeking to increase the number of people from BME groups and LLDD applying for Apprenticeships, particularly 16-to-18-year-olds, in Greater Manchester.

Details of all 16 projects can be found on the National Apprenticeship Service website at: www.apprenticeships.org.uk/Partners/~/media/Documents/NAS-DiversityinApprenticeshipsPilots-May2011.ashx

North Yorkshire County Council’s Real Start apprenticeship scheme, which was negotiated with public services union UNISON, is open to everyone in North Yorkshire between the ages of 16 and 24; but it makes particular efforts to recruit vulnerable young people, such as those leaving care, young offenders and those from BME and traveller communities.

Employee status and job guarantee

The TUC advises negotiators to “aim to ensure that apprentices have employee status — that is a contract of employment with the employer for at least the duration of the training.” Examples of union negotiated agreements in this area include the following:

• At Lincoln City Council the union-negotiated Craft Development Scheme (CDS) gives the trade unions the right to be involved in the selection and interviewing of new apprentices, and has negotiated their terms and conditions, covering their induction, health and safety, training, monitoring and appraisal. They are full employees of the council, enjoying the same benefits as other groups of workers, and are paid in accordance with the local government “Red Book” conditions, which cover craft workers

• UNISON has negotiated an agreement with Lancashire County Council that includes a “prior consideration process”. This means that once the apprentice reaches 21 months into their 24-month training contract, if a post becomes available on the same grade, they will be given a prior consideration interview before it is advertised.

Pay

UNISON says that the rise in apprenticeship completions — from 25% in 2002 to 70% in 2009 for example — is linked to the introduction of minimum pay levels. It points out that research has shown that the schemes with the highest pay rates have completion rates close to 100% and has consistently argued that apprentices should be paid the “rate for the job”.

A minimum wage of £2.50 an hour for apprentices came into force on 1 October 2010 but UNISON points out that at this rate, apprentices will still earn only £95.00 a week for a 38-hour week. (The rate increases to £2.60 an hour from October 2011). The union encourages its branches to negotiate a higher rate of pay for apprentices, as close as possible to the full rate for the job.

The age of entitlement to the main NMW rate was reduced from 22 to 21 on 1 October 2010. The apprentice rate was introduced on the same date. Those of compulsory school age are not entitled to the NMW and some other employment rights are also different.

The NMW rates are reviewed each year by the Low Pay Commission and from 1 October 2011:

• the main rate for workers aged 21 and over will increase to £6.08;

• the 18-20 rate will increase to £4.98;

• the 16-17 rate for workers above school leaving age but under 18 will increase to £3.68; and

• the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship will increase to £2.60

Source: Directgovwebsite: www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_10027201

UNISON found that at North Yorkshire County Council, where the majority of apprentices are paid on full NJC rates, only three of 200 apprentices taken on over the last two years have failed to complete the course — a drop-out rate of only 1.5%. The apprenticeship programme provides for apprentices to start on the minimum rate, with the same annual leave and sickness benefits as other employees. They move on to the full rate for the job once they reach the required competence standard, usually within the first six months of their apprenticeship. Where full pay cannot be offered in the first year, pay is increased at three, six and nine months up to £188.00 a week. Apprentices can also get help with travel costs when these are more than £10.00 a week.

Lancashire County Council’s Apprenticeship Scheme, which also pays apprentices on nationally negotiated NJC rates, also has close to a 100% retention rate.

Retail workers’ union Usdaw reports that in the vast majority of cases apprentices in schemes run by the big four retailers will be receiving the rate for the job (at maximum performance). This will see them on rates of at least £6.09 an hour, way in excess of the £2.50 an hour National Minimum Apprentice (NMA) rate.

And on completion, these apprentices are rewarded with either an extra skills payment or a dedicated career path leading to additional earnings. The schemes have seen many women progress from the basic sales assistant grade to much higher positions, including managerial positions.

The union reports that although not part of the formal collective bargaining machinery, the progress, development and pay relating to apprenticeship schemes feature are included within the consultative process of the companies concerned.

The IDS/unionlearn survey, Apprenticeships & pay, found that salary levels ranged considerably by apprenticeship, subject area and year/stage. It showed that:

• across all years and subjects the average gross salary was £12,634;

• 45% of salaries were between £10,001 and £15,000;

• the average private sector salary was £13,351; and

• the average public sector salary was £11,433.

On average, contracted apprenticeship hours were 36.8 per week, and actual hours worked were 34.3 hours with 7.3 hours spent in off-the-job training.

Training, mentoring and support

The TUC advises that the expansion of apprenticeships should not come at the expense of quality and that apprentices should have proper induction, training and good mentoring.

Unionlearn is training reps to act as mentors to young apprentices in the workplace and to encourage employers to take them on. It reports that two-thirds of all union reps are involved in supporting apprentices and unions are actively encouraging employers to sign up to quality apprenticeships.

Train manufacturing company Bombardier has a retention rate of more than 90% of apprentices at its Derby site. It initially accessed funding to provide coaching and mentoring training for team leaders and first line managers through the Unions Brokering Management Skills (UBMS) project, directed by unionlearn and supported by the East Midlands Development Agency (EMDA).

The UBMS project kick-started the training to embed a coaching and mentoring culture, driven from the top and supported by the trade unions. All the trade union Confederation of Shipbuilding and Engineering Unions (CSEU) members of the works committee took part in the training and the company has since invested in further training which was then rolled out more widely throughout the production side of the site.

Ironically, the company is currently at the centre of a bitter fight with the government against closure after a major contract was awarded to German company Siemens. The fight is being supported by unions and MPs and has the backing of a national newspaper as well as the local football team, Derby County.

The journalists’ union NUJ represents student journalists rather than apprentices. It has developed a bespoke “mutual” mentoring course that will be piloted in September 2011. This will provide mentors for students; but they will also be matched with experienced, qualified journalists and will act as mentors themselves, particularly in regard to multi-platform working (i.e. working across different platforms such as print, the internet, radio and television).

Health and safety

Young workers are more likely to have accidents at work than older workers — the risk is 40% higher according to Health and Safety Executive (HSE) statistics.

The TUC points out that trade union safety representatives have a vital role in ensuring that risk assessments are properly carried out, that their work is not beyond their capabilities, and that they have adequate information, instruction and training.

Apprentices are union business highlights a number of examples of good practice in this area. For example, at Siemens Industrial Turbomachinery, apprentices are given Toolbox Talks and specific young people’s risk assessments are carried out.

Apprentices at Babcock Engineering attend a health and safety induction course and there are bi-monthly health and safety meetings of apprentices, health and safety officers and union officials. And at bus company FirstGroup Leeds apprentices never work alone, but shadow a skilled person until they are confident to work on their own tasks.

Organising and supporting apprentices

The TUC sees apprentices as the future of the trade union movement and union engagement with apprentices means that they experience the positive role that unions play in today’s workplaces, a situation which the TUC says: “Provides an ideal opportunity for unions to recruit and organise young workers who are currently under-represented at all levels in the union movement.”

At Brush Electrical in Loughborough apprentices were given the opportunity to go on a five-day educational/recreational outward bound course, which included learning about trade unions and politics, as well as team building.

The course was paid for by their union, Unite — which also provides reduced rates for apprentices — and the company provided paid time off for them to attend.

Many unions have a special rate for apprenticeship members. For example, apprentices can join UNISON for £10 a year.

Apprentice Training Agencies (ATAs) and Group Training Agencies (GTAs)

Apprenticeship Training Agencies (ATAs) are employment agencies for apprentices. They directly employ and manage apprentices who undertake their apprenticeship with an approved training provider while being hired out to “host employers”. The ATA outsources the training activity for the apprenticeship to training providers.

A Group Training Association (GTA) is a not-for-profit organisation providing support on accessing and managing training for a group of employers to encourage their involvement in apprenticeships.

As unionlearn explains: “The crucial difference is that an ATA employs the apprentice whereas a GTA just offers training to apprentices who are employed directly by an employer.”

In 2009, the government announced £7 million funding for 12 ATAs and has since provided additional funding for several more. The first twelve pilot ATAs/GTAs are: Essex County Council; West Nottinghamshire College; NSA Creative and Cultural, E skills, South London Business and Lewisham College in London; Gateshead College and Economic Solutions in the North West; KEITS in the South East and Triangle Fusion in South West; JHP in the West Midlands and Hull College.

Unionlearn says that less is known about non-government-funded ATAs. Changes to funding for further education and vocational training may mean that this model becomes more attractive and more ATAs will start up; but there is currently no way of identifying where new, non-government-funded ATAs are.

Head of learning at general union Unite, Tom Beattie told LRD: “Trade unions have very serious concerns about ATAs and their potential to undermine collectively agreed terms and conditions and employee contracts of employment. The new Growth and Innovation Fund (GIF) calls on Sector Skills Councils to actively encourage ATAs. Indeed some of them are now in the process of seeking to establish their own ATAs with GIF funding. Many SSCs will look for trade union partners in applying for GIF funding. Where we are involved as partners we need to ensure that proper employee protection is built in to any ATA that might be established.”

And UNISON says: “We can see the benefit in helping the small business community. However we do not see the benefit to large employers as it weakens the employment status and responsibility the employer and union have for the apprentice. The key is that we would want apprentices to be employed by an organisation which recognises UNISON. Under Group Training Association arrangements this should be the employer where the apprentice is working. Under Apprentice Training Agency arrangements the apprentice is directly employed by the Agency and placed with employers. In this case we would want to secure recognition from the Agency.”

Interns and work experience placements

The NUJ is campaigning to protect newly-qualified journalists from exploitation. It says that in recent years work experience has grown from a short placement as part of a recognised course to months of unpaid or poorly paid work which can continue long after a student has become fully qualified.

The union has developed work experience guidelines to avoid this exploitation and stop employers cutting jobs and filling gaps with internships. These are on its website at: www.nuj.org.uk/innerPagenuj.html?docid=832.)

It is also campaigning to ensure the UK government does more to stamp out exploitative practices. It says that in many cases interns are entitled to payment under the minimum wage legislation; but employers use a volunteer exemption, designed to cover senior executives and people giving up their time to work for charities, to avoid payment. The union is lobbying for better enforcement of the rules and encouraging people to tell the union about their experiences in order to compile a dossier of employers breaking the regulations.

In February 2010, the TUC launched a new website for interns after raising concerns that one in three interns are not being paid for their work, despite qualifying for the minimum wage. The website: www.rightsforinterns.org.uk, is part of the TUC’s Next Generation campaign which aims to secure a better deal for young people at work. It explains what rights interns should expect, allows them to share their experiences and explains the benefits of joining a union.