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Union monopoly on training for public projects hurts innovation

Human capital has become the critical success factor for companies and jurisdictions in promoting their economic well-being. Productivity, innovation and competitiveness will flounder without bold action on this policy front.
kerryjothen

Human capital has become the critical success factor for companies and jurisdictions in promoting their economic well-being.

Productivity, innovation and competitiveness will flounder without bold action on this policy front. This is apparent with major projects like LNG Canada’s coming liquefied natural gas plant in Kitimat. So what is the B.C. government’s approach on ensuring a skilled workforce?

Like many British Columbians, I watched with concern as the government unveiled its community benefits agreement (CBA) for public infrastructure projects. While presented under a different name, the policy is reminiscent of the era of compulsory certification regulation and the Fair Wage Act – which did not prove to be effective public policy for increasing the quality and quantity of trades training.

As we watch the exciting implementation of the LNG Canada project, securing a skilled workforce will be critical.

The government’s stated goals for its CBA policy – increasing apprenticeships, avoiding skilled-labour shortages and boosting the participation of under-represented groups, including First Nations and women – are laudable. However, its chosen means are problematic and ignore more positive and effective public policy options.

During my time as CEO of the Industry Training and Apprenticeship Commission, I saw first-hand how skills training and apprenticeship can be politicized. When training is mixed with labour relations and collective bargaining, the results are ineffective. What should be a positive, collaborative process ends up counterproductive to the government’s own goals, not to mention damaging to the province’s skills priorities as a whole.

So, what is the alternative? It is important to remember that trade unions are not the only supporters of apprenticeship. Indeed, non-union companies and the Christian Labour Association of Canada, for example, have many apprentices on their job sites already. The Independent Contractors and Businesses Association of BC’s apprenticeship program is one of the largest in British Columbia.

If the goal is truly to increase apprenticeship opportunities provincewide, unions should not have a monopoly on skills training. Government should instead broaden its focus, enhancing partnerships with school districts, small-business groups and local chambers of commerce. It should be looking to enhance worker mobility and engage newcomers and international workers through training and recognizing foreign credentials.

Let’s enable post-secondary institutions to be creative and responsive to employer and worker skills development needs with outcomes-based funding models and quick-     response, customized training.

The current model of apprenticeship itself is a rigid, antiquated system; indeed, some involved still refer to “indentureships.” The traditional apprenticeship model has proven unfriendly to First Nations, women, new Canadians and other groups under-represented in the trades. The current and future B.C. labour market requires flexibility – in location, scheduling and structure. Government needs to support innovation, but this needs to be industry-led, not ministry-led.

Rather than introducing mandatory apprenticeship and other requirements, it should build a system that works, and the apprenticeships will come.

To reward innovation and exploit technology to make apprenticeship training more accessible, the B.C. government needs to release its Industry Training Authority from the shackles of traditional trades training.

It is time that B.C.’s industry training policy foster true outside-the-box innovation to create a modern skilled-trades training system in the province.

Look at European countries and Australia, where apprenticeships and occupational standards exist in over 300 job types, many outside traditional construction crafts. Let’s make apprenticeship more than a small part of our labour market and economy – currently about 1.5% of total employment in B.C.

More employers and more workers will participate in an inclusive, welcoming, open system. Without a progressive skilled-worker training system, major projects – public and private – will struggle with attracting, training and retaining the skilled trades needed for success. •

Kerry Jothen has worked for over 40 years as a human capital development professional, including more than four years as CEO of B.C.’s Industry Training and Apprenticeship Commission and over 17 years as principal of Human Capital Strategies.