Apprentice Workplace Knowledge
Enhancement in Post-Recession
Ontario
International Network on
Innovative Apprenticeship
Conference
May 26th, 27th, 2011
How does Ontario rapidly improve the
workplace skill of its workforce in a resurging
automotive manufacturing industry after the
“Great Recession” using its apprenticeship
system?
The Importance of Automotive
Manufacturing in Canada
• Automotive
manufacturing, both
vehicle (OEM)and parts
is the largest single
manufacturing sector in
Canada
• The province of Ontario
is the center of
Canada’s industrial
manufacturing sector
The Importance of Automotive
Manufacturing in Canada
• Canada is the 9th largest
automotive
manufacturer in the
world (China is now the
largest!)
• 92% of Canada’s
automotive related
manufacturing is in
Ontario
The Impact of the “Great Recession”
• During the “Great Recession” of the first decade of
the 21st century, the automotive manufacturing base
in Ontario declined significantly
• Automotive related employment declined from
160,000 in Q1 of 2007 to 80,000 in Q1 of 2010
• Vehicle production fell by over 1.4 million units from
the highpoint in 2000 to the lowpoint in 2009
The Impact of the Great Recession
Effect on Apprenticeship - Why
• Apprentice positions in automotive manufacturing
declined by more than 30% between 2006 and 2009
▫ Often apprentices are the first to be laid off when a
company downsizes
▫ Companies seldom hire new apprentices during
downsizing
▫ More senior journeypersons take early retirement
packages as part of the downsizing plan
▫ Potential apprentices are reluctant to enter a declining
industry
The Resurgence of Automotive
Manufacturing in Canada
• Automotive is very cyclical – as the economy recovers people buy
cars
• The cost of transporting vehicles or components from Europe or
Asia has risen dramatically with the escalating price of oil and other
commodities
• The domestic markets in emerging economies have grown
exponentially taking up manufacturing capacity---look at China!!
• The high Canadian $ allows for the purchase of individual
components at cheaper prices – Ontario workers will assemble the
larger integrated systems closer to the vehichle builder
• The instability in Mexico is hindering the location of experienced
Canadian and US personnel
The Skill Shortage in Automotive
Manufacturing
• The Perfect Storm!
▫ The lack of apprentices because of the recession
▫ The resurgence of the North American automotive
market
▫ The trend of the trades – demographically, Ontario will
experience a very high retirement of skilled
tradespersons over the next decade (Milner 2009)
▫ The need for cost effective production to remain
competitive
 higher automation – less labour = higher skill
Therefore, there is an urgent need for a
practical, innovative and quick approach
to improve apprenticeship delivery within
the automotive industry in Ontario!
The Apprenticeship System in Ontario
• Currently, centrally administered by the Ontario
provincial Government
• Government sets the standards to be met by apprentices
▫ Number of hours on the job (typically 9000 hours)
▫ Number of hours in school (typically 3 blocks of 8 weeks)
▫ Standards to be achieved in both school and on the job
• Schooling is delivered by the Province’s 24 Community
Colleges (like Georgian)
• Apprentices work under a licensed Journeyperson on the
job
▫ The Journeyperson is responsible for “judging” and
“passing” the apprentices competency
The Council for Automotive Human
Resources (CAHR)
• CAHR is a “sector council” funded by the Canadian
government and comprised of stakeholders from the
automotive industry
• CAHR’s mission is to help Canada’s automotive industry
improve the skills of its human resources
• The industry asked CAHR to determine a way to improve
the skills of its workers through apprenticeship to meet
the demands of the resurging market
• CAHR undertook a project to determine the current
status of apprenticeship in Ontario, then look at best
practices and recommend a solution to improve it
What CAHR Found Out - Issues with the
Current Apprenticeship System
• Particularly for small and medium sized businesses:




System is complex and highly administrative
There is a loss of productivity during the 8 week school block
There is very little flexibility with the school scheduling
There is very little standardization among journeypersons as to
assessment of Apprentices
 On-the-job experience can be very limited at smaller
employers
 The system is expensive, especially for smaller employers
 The current curriculum and on-the-job training standards is
acceptable
What CAHR Found Out – Best Practice
Research
• CAHR researched several other prominent systems in
other North American, global jurisdictions
• Of particular interest was the systems employed in
North Carolina,northwest UK and North Wales
▫ Multi- employer cooperation
▫ Third party administration and coordination
▫ Excellent structure to the evaluation by
Journeypersons of on-the-job performance of
Apprentices
▫ Ability to implement such a system within the current
Ontario regulatory framework
The Basis for an Enhanced Delivery
System in Ontario
• Add flexibility to in-school delivery (day-release, etc)
• Implement more frequent , structured assessment of
the Apprentice on-the-job performance
• Introduce mentor training for Journeypersons
• Transfer the administrative burden away from the
employer (to CAHR)
• Introduce a rotational system of on-the-job training
through an appropriate group of employers to
broaden the experience
Georgian College as the Pilot Institute
• Georgian is centrally located to much of Ontario’s
automotive industry
• Georgian maintains the Center for Automotive Parts
Expertise (CAPE) and is well known in the
automotive industry
• Georgian has a highly respected apprenticeship
delivery system
• Georgian is flexible and innovative
The Automotive Supply Chain – A
Seating Product Example
Tier 3
Tier 2
Tier 1.5
Tier 1
OEM
The Supply Chain Approach-Why
• Automotive supply chains are highly integrated and
homogeneous
▫ Integrated quality, production and logistics systems already exist
▫ Generally geographically close (Tier 2 to the OEM)
▫ Employers are much more likely to participate because of mutual
interests
• Apprentices gain a much wider experience and perspective
within their industry
▫ They can assist with problem solving and quality improvement by
knowing processes at either their supplier or customer
▫ Offers greater mobility for the journeyperson over the length of
his/her career
• Employers within a supply chain tend not to recruit from
each other, therefore providing greater stability and trust
The Supply Chain Model – Industrial Electricians from a
Seating Supply Chain
Vehicle
Assmbler
(OEM)
Foam And Fabric
Supplier Tier 1.5
2
Sub-Components
Tier 2
1
Sub-Components Tier 2
1
Seat Hardware
Supplier Tier 1.5
2
Seat
Complete
Assembler
3
Tier 1
Paint Dept
Stamping Dept
Machining Dept
Assembly Dept
2
2
2
2
Sub-Components Tier 2
1
•18 Industrial Electrician Apprentices will be selected to participate from the
supply chain
•Georgian will customize the in-school scheduling to the requirements of the
chain of employers (i.e. day release, two-day block etc.)
•CAHR will provide third party administration of the project
In Conclusion……The Benefits
• The system will work within the current regulatory
framework and union collective agreements
• The system can be implemented relatively quickly
• The system can be implemented incrementally
• The system optimizes the current curriculum and onthe-job standards
• The system addresses the fundamental concerns of
employers
• The system is highly beneficial to the Apprentice