Submission to the Ontario College of Trades. Journeyperson-to-Apprentice Ratio Review. Sheet Metal Worker Trade

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1 Submission to the Ontario College of Trades Journeyperson-to-Apprentice Ratio Review Sheet Metal Worker Trade January 14, Page 1

2 Introduction The Christian Labour Association of Canada (CLAC) has prepared a response to the Ontario College of Trades Journeyperson-to-Apprentice Ratio Review for the Sheet Metal Worker trade. CLAC notes that the only area where data exists to support changing the ratios is in the area of the current supply of Sheet Metal Workers and projections for the future demand. CLAC has calculated (see our response to criterion ix.) that a 68% increase in the number of apprentices is required to meet anticipated demand requirements for Sheet Metal Workers by As such, on the basis that demand for Sheet Metal Workers will outpace supply, CLAC is recommending that the current ratio of 1:1, 3:1 be changed to a ratio of 2 journeypersons to 1 apprentice (2:1) to ensure that the industry can take on sufficient numbers of apprentices to meet the requirement of a 68% increase in the number of apprentices entering the trade. CLAC proposes that the current ratio of 1:1 for the first apprentice hired by a firm be maintained. CLAC has responded to all criteria established by the College of Trades. Page 2

3 About CLAC Representation with Integrity Value on the Job Site Christian Labour Association of Canada (CLAC) is Canada s multi-craft construction union representing skilled tradespersons working in every sector of the construction industry in the province of Ontario. Every day, thousands of CLAC members in Ontario build bridges, roads, water and waste treatment plants, high-rise buildings, and retail shopping centres. Founded in 1952, CLAC is a union built on principle. Its name reflects the principles of dignity, democracy, freedom, justice, responsibility, and respect for all. Its goal is to establish a true partnership between employers and employees for the benefit of all. Through innovation and using a new model of advocacy and construction organization, CLAC has experienced remarkable growth in Ontario and across Canada. Its members have an enviable record of doing their work competently and safely, with results that count them among the leaders in their field. CLAC is an independent Canadian labour union representing over 55,000 workers in a wide range of industry sectors construction, health care, retail, service, transportation, manufacturing, and mining. The union serves its members from 14 regional offices in Alberta, British Columbia, Saskatchewan, Manitoba, and Ontario. CLAC s head office is in Mississauga. A Multi-Skilled Union CLAC organizes construction workers of all trades in a particular company into a single bargaining unit. In labour relations jargon, this is known as wall-to-wall bargaining, where construction workers in compulsory, voluntary, and uncertified trades are organized together in a single unit. This multi-skilled approach creates an efficiency not Page 3

4 met through any other model, eliminating trade silos and encouraging all workers to work together to complete construction projects safely, on time and on budget. Training for the Future CLAC provides training support for its members to acquire, maintain and upgrade their skills. Courses are designed to keep members up to date with legislative requirements and codes, as well as provide them with applicable health and safety training. CLAC established training centres in Ottawa, Grimsby, Mississauga, and Chatham, and opened a provincial training facility in Cambridge in CLAC works closely with Ministry of Training, Colleges and Universities (MTCU) apprenticeship offices in Ontario and in cooperation with community colleges and training organizations. By working together, CLAC ensures that those entering the construction trades acquire and develop the knowledge and experience for a skilled workforce for tomorrow s projects. Page 4

5 Response to Criteria As indicated earlier, CLAC is requesting that the current ratio of 3:1, 1:1 be changed to a ratio of 2 journeypersons to 1 apprentice (2:1). We propose no change to the current 1:1 ratio for the first apprentice hired by a firm. Based on our calculations, CLAC is projecting that the industry will need a 68% increase in the number of apprentices by 2016 in order to meet anticipated increased demand for Sheet Metal Workers due to: 1) Normal attrition 2) Retirements (the average age of a Sheet Metal Worker with a CofQ is 48) and deaths 3) The low completion rates for the CofQ A change to 2:1 will help the industry to address this supply concern. We believe this proposed change from the current ratio provides: 1) A cautious approach to ratio reform allowing the College of Trades to collect objective data on the impact of the change from a variety of factors in preparation for the next round of ratio reviews in four years. 2) No impact on existing journeypersons working in the trade as the changes are minimal and employers will continue to employ skilled journeypersons to mentor the new apprentices that could be hired after the ratio change is achieved (see our analysis in response to criterion v.). Page 5

6 3) No impact on the health or safety of journeypersons or apprentices working in the trade or the general public as there is currently a strong health and safety framework in place in Ontario through the Occupational Health and Safety Act and other legislated requirements enforced by the Ministry of Labour to ensure health and safety of workers and the general public. Response to Specific Criterion Each of the eleven criterions is copied into the submission with CLAC s response below. i) The scope of practice of the trade. Ontario Regulation 1077 under the Trades Qualification and Apprenticeship Act governs the scope of Sheet Metal Worker trade. We anticipate no change, nor do we propose any change to the scope of practice that will be contained in the corresponding regulation to the Ontario College of Trades Act, 2009 (O. Reg. 275/11, s. 29). ii) The apprenticeship program established by the College. The established apprenticeship program for Sheet Metal Workers should be retained in its current form. iii) How the journeyperson to apprentice ratio for the trade may affect the health and safety of apprentices and journeypersons working in the trade and the public who may be affected by the work. In CLAC s view, there is no credible data from other jurisdictions that have changed their ratios on which we can rely for this review. Additionally, if specific data related to the effect of a change in ratios in other jurisdictions was available, it would fail to account for the various differences in the Sheet Metal Worker trade Page 6

7 between jurisdictions. The type of work, the predominance of difference in sectors (industrial/residential/institutional) and the fact that each jurisdiction will have its own unique health and safety legislative framework and enforcement mechanisms would create such variables as to render such comparative analysis as quite nearly meaningless. We do not anticipate that an incremental shift from the current ratio to 2:1 will have any impact on the health and safety of journeypersons, apprentices and the public. Ontario has a strong health and safety framework in place through the Occupational Health and Safety Act and other legislated requirements enforced by the Ministry of Labour. The move to a 2:1 ratio will allow the College of Trades to intentionally monitor the impact, if any, on the health and safety [or lost time injury (LTI) data] of journeypersons, apprentices and the public over the next four years and to provide objective data for the next round of ratio reviews. iv) The effect, if any, of the journeyperson to apprentice ratio of the trade on the environment. The journeyperson-to-apprentice ratio has no impact on the environment. The Sheet Metal Worker trade is highly regulated through a variety of legislative requirements and environmental protection enforcement mechanisms, all of which serve to protect the environment. A change in the ratios will in no way effect the efficacy of such legislation or enforcement of same. v) The economic impact of the journeyperson to apprentice ratio of the trade on apprentices, journeypersons, employers and employer associations and, where applicable, on trade unions, employee associations, apprentice training providers and the public. Page 7

8 Apprentices Changing the ratio to 2:1 will provide more opportunities for employers to hire more apprentices than under the current ratio. This will have a positive economic impact on apprentices. As noted earlier, a 68% increase in the number of apprentices is required to meet anticipated requirements for Sheet Metal Workers. Journeypersons The concern that employers will choose to replace journeypersons with apprentices after a significant change to the ratio (such as moving to 1:1) is mitigated by CLAC s proposal for 2:1. The table on the following page demonstrates that under a shift to 2:1, a contractor with a work force of 16 or less would, at best, be able to maintain the size of his/her current workforce with only one less journeyperson. The effect on journeypersons, even if an employer s goal was to replace the experienced worker with an apprentice, is quite negligible. Page 8

9 Total Work Force 3:1 Total JP:APP to Retain Same Total WF with 2:1 JP APP JP APP Difference in JP Page 9

10 The move to a 2:1 ratio will allow the College of Trades to intentionally monitor the impact on journeypersons over the next four years and provide objective data on matters such as compensation and average annual earnings for the next round of ratio reviews. Employers The shift to a 2:1 ratio will help employers address looming shortages in Sheet Metal Workers projected due to normal attrition, retirements (average age of Sheet Metal Workers with a CofQ is 48), and the low completion rate for the CofQ. Employer Associations CLAC does not anticipate any economic impact on employer associations. Apprenticeship Training Providers Moving to a 2:1 ratio will potentially require more spaces to be available for apprentices attending trade school. Space at trade school may also be a barrier to increasing the number of skilled workers, but that is a barrier to be dealt with separate from this review. Public The public benefits through this gradual change by ensuring an adequate supply of Sheet Metal Workers over the balance of this decade that will help keep costs in line for both public and private sector construction projects. Page 10

11 vi) The number of apprentices and journeypersons working in the trade. 308A Sheet Metal Worker * Active Journeypersons 6,483 Active Apprentices 2,219 * Data provided by the Ministry of Training, Colleges and Universities and available from the College of Trades website. vii) The rates of completion for apprentices in an apprentice training program for the trade. 308A Sheet Metal Worker * Avg. / Yr New Registrations CofQs Issued to Apprentices CofQs Issued to Challengers * Data provided by the Ministry of Training, Colleges and Universities and available on the College of Trades website. The Ministry notes that one cannot imply completion rates from this data as apprentices start at different times throughout the year and actual completion rate data is not available. However, as a tool for assessing future completions/cofqs issued, (using a proportionate analysis) the data serves as a reasonable predictor. Journeyperson-to-apprentice ratios have no impact on completion rates. Page 11

12 viii) The journeyperson to apprentice ratio, if any, for a similar trade in other jurisdictions. Part A - General Information : Education/Entrance Requirements NL NS PE NB QC ON MB SK AB BC NT YT NU Ratio - Journeyperson/Apprentice - Indicate Actual Ratio or Variable (V) 1:2 1:1* 1:1 1:1 2:1 1:1, 3:1 1:1 1:2 1:2 NA 1:2 1:1 1:2 Source: Ellis Chart website. ix) The supply of, and demand for, journeypersons in the trade and in the labour market generally. CLAC has completed an analysis that shows that through natural attrition, a small number of new entrants into the trade, retirements and low completion rates, there will be shortages in supply of Sheet Metal Workers by 2016 without a 68% increase in the number of apprentices entering the trade. CLAC s calculations, based on modest real GDP growth (as provided by the Construction Sector Council Labour Market Information data [CSC]) identifies that by 2016, Ontario will require 1,969 apprentices to complete their CofQ, assuming we are at full employment. This calculation was completed as follows: Economic growth for the period suggests that 7,235 journeypersons will be required by 2016 (752 more than we have now based on MTCU report of 6,483 journeypersons). Deaths/retirements, as estimated by the CSC, suggests that an additional 1,393 journeypersons need be replaced. Page 12

13 During that period, and based on figures provided by MTCU, 176 challengers (non-apprentices that are issued a CofQ) will meet only some of the projected demand. Therefore, 1,969 apprentices are required to complete their apprenticeship by 2016 ( , challengers who successfully complete according to MTCU). MTCU issued 176 CofQs to apprentices in That number needs to be increased that number by 72% per year to meet the demand projected for If we assume a 59% completion rate (based on our interpretation of MTCU data), we would have to register 68% more apprentices per year than were registered in The detailed breakdown of this calculation can be found on the following page. The current ratio is having an impact on the supply of Sheet Metal Workers and the cautious shift to 2:1 ratio will address this projected shortage. Page 13

14 Actual Forecast Sheet Metal Worker (308A) Economic Growth Indicators Real GDP Growth - Ontario 1 2.2% 2.3% 2.3% 2.2% 2.2% 2.1% 2.0% 2.0% 1.9% 2.0% Building Construction Growth: Total ICI - Ontario 1 4.7% 6.5% 4.1% 3.6% 3.6% 2.7% 3.1% 2.8% 3.0% 2.9% Annual Labour Force Change Mortality (Deaths) Retirements Total Annual Labour Force Change: Retirements & Deaths Journeyperson Cumulative Demand Journeypersons - Actual (Forecast Demand 3 ) 6,483 6,632 6,785 6,934 7,086 7,235 7,380 7,528 7,671 7,824 Net Journeyperson Demand ,045 1,188 1,341 Labour Force Change (Retirements & Deaths) ,143 1,393 1,648 1,909 2,178 2,454 Total Net Cumulative Demand - New Journeypersons Required ,349 1,746 2,145 2,545 2,954 3,366 3,795 Issued C of Q Cumulative Supply Estimated Issued C of Qs to Challengers (approx. 30 per year 5 ) Apprenticeship Cumulative Supply Required # of C of Qs Issued to Apprentices ,233 1,600 1,969 2,339 2,718 3,100 3,499 Required # of New Registrants to meet # of C of Qs Issued to Apprentices 6 (based on 59% MTCU Completion Rate) ,482 2,090 2,713 3,338 3,964 4,606 5,254 5,931 Annual Rate of Increase in C of Qs to be Issed to Apprentices to meet Cumulative Demand by 2016 (above 2011 annual #): Annual Rate of Increase of Registrations Required to meet Cumulative Demand by 2016 (above 2011 annual #): % % Notes 1 Construction Sector Council 2012 Data - both Real GDP Growth and Construction: Industrial, Commercial, and Institutional 2 MTCU - External Data Report - April Sept nd Quarter - Cumulative Totals 3 MTCU Current C of Qs issued as of Oct 1, 2012, increased by Real GDP Growth 1 4 Cumulative Totals, by Forecast Year 5 Estimate based on average MTCU Data for fiscal years 2011 & Challengers are those who achieve a C of Q but did not complete an apprenticeship program (i.e. Internationally Trained Workers who meet MTCU trade requirements) 6 Presuming a completion rate of 59% of Apprentices 7 7 Completeion Rate Figure, a function of MTCU 2012 new registrants vs. new C of Qs issued to apprentices. We submit that this is a meaningful predictor of completion experiences with the MTCU where no other data is available.the figure is a average of 61% and 57%, respectively. Page 14

15 x) The attraction and retention of apprentices and journeypersons in the trade. The apprentice-to-journeyperson ratio only improves the industry s ability to attract new entrants to the trade. There is no anticipated impact to retention of apprentices and journeypersons in the Sheet Metal Worker trade. xi) The average age of apprentices and journeypersons in the trade and the projected attrition of journeypersons working in the trade. The following data was provided by the Ministry of Training, Colleges and Universities and made available on the College of Trades website: Average Age of Journeypersons 48 Average Age of Apprentices 30 Annual attrition in the Sheet Metal Worker trade, as illustrated in our projections on page14, shows an increase in attrition due to deaths and retirements from an actual 213 in 2011 to a projected 250 in 2020, an increase over 17% during the period 2011 to Contact Us Colin deraaf, Director of Ontario Training Christian Labour Association of Canada 64 Saltsman Drive Cambridge ON N3H 4R7 (519) (519) (fax) cderaaf@clac.ca Page 15

Submission to the Ontario College of Trades. Journeyperson-to-Apprentice Ratio Review. General Carpenter Trade

Submission to the Ontario College of Trades Journeyperson-to-Apprentice Ratio Review General Carpenter Trade February 4, 2013 www.clac.ca Page 1 Introduction The Christian Labour Association of Canada