Aeroskills. Section 2: Sector reports
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- Dorthy Ramsey
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1 Section 2: Sector reports Workforce development in the industry has been squeezed at both ends over the last 12 months, with shrinking job options in the engineering and maintenance of larger aircraft, and stalled regulatory direction for the smaller ones. Industry highlights 2013 The Aviation industry has been doing it tough in with Qantas posting a modest profit of $5 million (up on the previous year following improvements in its international and domestic arms) and watching its credit rating plummet, while Virgin saw losses at around $98 million. Corporate travel is down, with businesses increasingly using web-enabled communications, such as Skype, to reduce meeting costs. The airlines are offering discounted fares as a central strategy to keeping passengers flying. Regional aviation has seen stronger growth, supported by the fly in, fly out (FIFO) resources workforce, with Regional Express (REX) airline posting profits of $14 million in 2012 and Alliance Aviation Services, $23.3 million. It is expected that in 2014 regional airlines will feel the impact from resources projects being delayed or shifting to operational phases that demand less workers. Down the supply chain, component suppliers have been impacted by delays in orders for the Airbus A380 and the Boeing 787 Dreamliner, as well as a slowing in government Defence spending. However, the global outlook for aircraft manufacturing is positive according to IBISWorld, alongside aircraft fleet upgrades and improved global economic conditions. 1 IBISWorld notes that capitalising on this will require Australian companies to invest in new technologies and improve production efficiencies if they are to compete internationally. Consolidation and retrenchments have featured in the past 12 months, with aerospace engineering and maintenance looking less viable as an option for both workers and training providers. Qantas earlier reduced its engineering and maintenance positions by around 1,000, as the company seeks to consolidate its operations from technical services and another 800 from hands-on engineering and maintenance work. Qantas heavy maintenance base has been closed at Tullamarine with maintenance work eventually to be centralised in its Brisbane base. 1. IBISWorld Industry Report C2394. Aircraft Manufacturing and Repair Services in Australia. December Ryan Lin. 1
2 Many in industry expect there will be a move away from aeroskills as a career choice. Already retrenched workers are exploring their options in the wider engineering job market. Additionally, Qantas remaining 300 engineers, maintenance staff and contractors at Avalon will also be made redundant in early 2014 and their base closed. The losses at Qantas are attributed to the reduced demand for maintenance of the new advanced aircraft types. However, there is major concern amongst some trade unions about the added impacts if significant ongoing heavy maintenance is moved offshore. At publication, Qantas still employed around 5,500 engineering and maintenance personnel, however, this figure is expected to decline further over Qantas also consolidated its Jetstar operation by closing its Darwin base and cutting back its international flights. Airline REX on the other hand is finding it difficult to attract the right skills and qualifications for some of its regional bases. It is receiving enquiries from redundant Qantas workers but their skills mix often doesn t readily meet REX s needs. Aircraft manufacturer GippsAero has also shed 40 jobs, citing poor international sales performance against the high Australian dollar. Many in industry expect there will be a move away from aeroskills as a career choice. Already retrenched workers are exploring their options in the wider engineering job market. Avionics workers have highly portable capabilities which can translate to work in occupations requiring IT, automation and instrumentation skills - especially useful in the resources sector. Mechanical workers with skills in hydraulics and pneumatics (heavy machinery) are more limited, with some likely to pursue roles in other trade areas. They may however, find a barrier to retraining in trade outcomes at Certificate III level, as most are already at Certificate IV level and current funding priorities are not geared to subsidise training to lower levels. The slower workload for Qantas workers also means that they will be engaged across different aircraft, typically B737 and B767 models, as well as Airbus aircraft. This holds cross-skilling and licensing implications for workers. Technical skill development and Civil Aviation Safety Authority (CASA) licensing is related to aircraft type. Retraining Qantas personnel with Boeing aircraft experience to meet REX s SAAB maintenance needs is significant. REX estimates it is an 18-month process involving retraining, development of work experience logs, Maintenance Training Organisation (MTO) assessment and application for new CASA licensing. A costly process also. Trainees would require supervision, demanding further company investment. Additionally, retraining subsidies (especially for aircraft type) are not generally available via state vocational education and training (VET) programs (although the National Workforce Development Fund (NWDF) may be available in some other situations). BAE Systems Australia, provider of Defence (including aerospace) systems and support, also announced 450 job cuts as major Defence projects wind up and the company struggles with the ups and downs of government contracts. It will expand into the civil aviation field into the future (with maintenance for Tigerair underway).the company has engaged a recognition of prior learning (RPL) program to ensure workers are able to leave with the most current Certificate IV in qualification, however, its workforce will not have the skills required to easily cross over from a military (ADF) regulatory focus to the civil (CASA) environment. 2
3 While apprenticeship training exits at the Certificate IV level, CASA licensing requirements for large aircraft were upgraded to Diploma level in In contrast, general aviation and helicopters areas appear to still be performing well to meet agricultural and specialised client needs, for example, those in the resources sector. There is also a high level of demand for maintenance on ageing aircraft in this sector. Skills needed here however are again different from those of the larger airlines. For many years engagement with VET training programs have stalled in the general aviation sector, as it awaits confirmation of CASA regulations for smaller aircraft operators. This is now expected in 2015, and enterprises will require major assistance to ensure their workers meet the new requirements. Unmanned aerial systems are a huge growth area and CASA is working on updating maintenance and operational regulations. MSA expects there will be a need to develop maintenance competencies and possibly qualifications in telemetry and ground systems to support this growth. South Australia is pitched to be a leading manufacturing hub for this development. Apprenticeships cut back Industry conditions, as mentioned above, have significantly reduced apprenticeship numbers. Traditionally a leading force in apprenticeship training, Qantas has reduced its intake over the past couple of years from around an annual average of 100, to 29 in It expects intake to be zero in Likewise, BAE Systems has not taken on any new apprentices in 2013 (down from 80 in 2009). While this reflects today s industry priorities, there is concern that there will be a shortage of skills when many current workers retire in five or so years. These companies report that apprenticeship training is becoming increasingly problematic. Technological advances have significantly reduced maintenance requirements and changed the nature of maintenance schedules. For example, maintenance practice is moving to smaller chunks of work instead of larger overhauls; Boeing aircraft have moved from 7 8 year cycles to 12 years for major work that includes the removal of the aircraft undercarriage. This makes it more difficult to get apprentices through the required range of skills and experiences. Workers still need to have these associated skills, but the opportunity for exposure is significantly reduced. Qantas, with RTO support, is increasingly looking to simulated training to address the shortfall. REX is also experiencing barriers to training apprentices. While apprenticeship training exits at the Certificate IV level, CASA licensing requirements for large aircraft were upgraded to Diploma level in This national requirement is out of sync with most state and territory funding priorities, leaving upskilling costs in the hands of employers at a time when industry conditions are already strained. The market is also not being driven by individuals who are able or willing to fund themselves. This flags a potential for skills shortages in 5-7 years that will be exacerbated with retiring workers. Establishing an effective development pathway for apprentices to reach the Diploma outcome is a top priority for the industry. 3
4 MSA developed a range of MEA11 Training Package Skill Sets and has been supporting and promoting delivery over the past 12 months, with funding options via the NWDF. MSA has worked with REX to engage the NWDF to assist with this upskilling exercise, but with total costs still at around $5,000 per person, the overall result will be inadequate numbers of apprentices reaching the Diploma level outcome required for CASA licensing. In addition to this, RTO outcomes require only 50% exam pass rate in order to be found competent at trade level. CASA license requirements however demand 75% pass. Industry is experiencing this as another training gap in VET outcomes, which they are left to address. Training capacity at risk The decreased demand for training has reduced the viability of aeroskills training for RTOs and this has had an impact on capacity. There are now only around ten civil RTOs remaining in Australia, with key facility TAFE NSW s Padstow site, undergoing retrenchment of specialist teachers in response to drastic cuts in Qantas employee enrolments. Industry is concerned about the potential loss of this facility (and perhaps others) and overall national capacity for the medium/long term. To be viable in the future RTOs will increasingly need to work creatively to make training delivery work, including targeting client hubs, in regional locations (particularly given future general aviation needs for new CASA licensing). Aviation Australia in Brisbane is the largest provider with an additional key focus on international students. MSA providing the link between skills and regulations Skills development in the aeroskills industry is a complicated process with national CASA and ADF licensing requirements setting the benchmark much higher than comparable AQF outcomes in other industries. This demands attention beyond traditional VET trade boundaries. In order to help facilitate the updating of existing Licensed Aircraft Maintenance Engineers (LAMEs) to new CASA requirements, MSA developed a range of MEA11 Training Package Skill Sets and has been supporting and promoting delivery over the past 12 months, with funding options via the NWDF. MSA has also conducted an extensive mapping project to provide RTOs with advice on how work activities meet requirements in aeroskills units of competency. This is designed to help RTOs and trainees complete work experience logs required by CASA in order to grant task authorisation. 4
5 Key growth areas and considerations for skill development in this sector include fibre composites, integrated componentry, advanced avionics (diagnostics) systems, unmanned aerial systems and engineering excellence (including through life support). This mapping is a significant additional requirement and RTOs are often concerned they are not granted any extra funding. General aviation stakeholders are still awaiting confirmation of CASA regulations for smaller aircraft maintenance operations and MSA is anticipating the major industry support that will be needed when these details are released. MSA believes that block training will not be appropriate to meet the needs of these small (say 3-5 person) operations; they will be looking for flexible and responsive training solutions. Other MSA initiatives in this sector include: Development and supply of the Maintenance Training and Licensing User Guide (covering major features of the MEA11 Training Package). Movement of the Diploma and Advanced Diploma of Aeronautical Engineering from the MEM05 Metal and Engineering Training Package into MEA11 Training Package to provide a more efficient and appropriately targeted development pathway for the sector (expected March/April 2014). Ongoing promotion of training implementation in composites and advanced avionics technologies, aircraft welding, and non-destructive inspection and testing to ensure workers have the right skills for new aircraft technologies. Key growth areas and considerations for skill development in this sector include fibre composites, integrated componentry, advanced avionics (diagnostics) systems, unmanned aerial systems and engineering excellence (including through life support). MEA11 enrolment figures Commencements year change Apprentices and trainees All students 1,624 1,827 2,051 1,417 1, AQF AQF AQF 4 1,391 1,541 1,667 1,166 1, Diploma or higher A: Level 3, 104 Mount Street, North Sydney NSW 2060 PO Box 289, North Sydney 2059 NSW P: / W: 5
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