Petroleum refining chemical fertiliser explosives workforce development plan oct 2010

Western Australian PETROLEUM REFINING, CHEMICAL, FERTILISER, EXPLOSIVES and PESTICIDE Industries: WORKFORCE DEVELOPMENT PLAN

October 2010

The Resources Industry Training Council is a State Government funded, APPEA (www.appea.com.au) and CME (www.cmewa.com) joint venture initiative to represent the training and workforce development needs of the Western Australian resources, (mining, gas and oil) and downstream process manufacturing industries.

Right Place

Right Attitude

Skilled Workforce

Right Skills

Note and Disclaimer:

This document is a workforce development plan for the Western Australian petroleum refining, chemical, fertiliser, explosives and pesticide manufacturing industries and was developed by the Resources Industry Training Council, (RITC) at the request of the Western Australian Department of Training and Workforce Development.

This workforce development plan is supplied in good faith and reflects the knowledge, expertise and experience of the developer. The information provided is derived from sources believed to be reliable and accurate at the time of publication.

The use of the information in this workforce development plan is at your own risk. The RITC does not warrant the accuracy of any forecast or prediction in the report. This workforce development plan is provided solely on the basis that users will be responsible for making their own assessment of the information provided therein and users are advised to verify all representations, statements and information that they may wish to utilise as input to decisions that concern the conduct of business involving monetary or operational consequences. Each user waives and releases the RITC and the State of Western Australia and its servants to the full extent permitted by law from all and any claims relating to the use of the material in this workforce development plan. In no event shall the RITC or the State of Western Australia be liable for any incidental or consequential damages arising from any use or reliance on any material in this workforce development plan.

The Resources Industry Training Council

7th Floor, 12 St Georges Terrace,

Locked Bag N984, Perth, WA, 6844

Phone: +61 8 9325 2955

Facsimile: +61 8 9221 3701

For information regarding this report contact:

Resources Industry Training Council

Telephone: +61 8 9325 2955

Email: [email protected]

FOREWORD

The Department of Training and Workforce Development commissioned the Resources Industry Training Council, (RITC) to undertake research and prepare an industry workforce development plan for the Western Australian petroleum refining, chemical, fertiliser, explosives and pesticide manufacturing industries. In early 2010 an environmental scan was undertaken and informed the development of this workforce development plan. The environmental scan is available for download from the RITC website.

The purpose of the environmental scan was to undertake research and industry analysis of current and future employment demand, as well as identifying barriers to employment and training. This workforce development plan builds on the environmental scan and identifies strategies to ensure that the demand for skills and labour can be met.

ABS conducts a census of the manufacturing industry every five years. The last ABS census for manufacturing in Australia was 2006–07; therefore available data relates to the period prior to the global economic downturn. Other data sourced as input to preparation of this workforce development plan includes the ABS Labour Force Survey, the Employment Outlook for Manufacturing prepared by the Department of Education, Employment and Workplace Relations (DEEWR), the Manufacturing Environmental Scan prepared by Manufacturing Skills Australia (MSA) and the Job Outlook website http://joboutlook.gov.au/Pages/default.aspx.

Contents

OVERVIEW ........................................................................................................................ 1

Petroleum Refining and Petroleum Products Manufacturing ......................................................... 3

Fertilisers And Explosives Manufacturing ................................................................................ 3

Industrial Gas Manufacturing .............................................................................................. 4

Supply And Demand of Training ........................................................................................... 5

PRIORITY ACTIONS .............................................................................................................. 6

Labour Market And Supply .................................................................................................. 6

Workforce Participation .................................................................................................... 7

Attraction And Retention ................................................................................................... 7

Training And Productivity .................................................................................................. 8

THE WAY FORWARD ........................................................................................................... 10

INDUSTRY AREA COVERAGE .................................................................................................. 10

DATE SOURCES ................................................................................................................. 11

1

OVERVIEW

The chemicals, hydrocarbons and refining industries include:

Petroleum and Coal Product Manufacturing; and

Basic Chemical and Chemical Product Manufacturing.

Major Western Australian employers include BP refinery, Wesfarmers CSBP and Kleenheat Gas, Burrup Fertilisers and Coogee Chemicals.

Organic Chemical Manufacturing includes the manufacturing of organic acid, ethanol or alcohol, formaldehyde, organic dyes or pigments, methanol, turpentine, wood tar, vinyl chloride, charcoal briquette and organic tanning extracts. The products of the organic chemical manufacturing industry are often used as raw materials by other industries. The range of applications for organic compounds is enormous. They form the basis, or are important constituents of, many products such as plastics, drugs, petrochemicals, food, explosives and paints.

At a national level, the Organic Chemical Manufacturing industry revenue is worth an estimated $1.16 billion a year but has experienced an average annual decline of 1.5%1. By the end of the 2009-10 period, Organic Chemical Manufacturing industry employment levels are expected to be in the order of 1,265 persons, compared with 1,610 in the period 2004-05, representing an overall fall of 21%1.

The Inorganic Chemical Manufacturing industry covers companies involved in the production of a variety of basic inorganic chemicals. These, in turn, tend to be intermediate products used as basic chemicals in industrial processes or manufacturing products. Key identifiable products within the industry include titanium dioxide, sodium cyanide, industrial grade ammonia, caustic soda, sulphuric acid, soda ash and chlor-alkali products.

Within the Inorganic Chemical Manufacturing industry, overall average growth rates are expected to be in the order of just 0.7%, with revenue reaching an estimated $3.68 billion in 2009-10, a marginal increase from the revenue of $3.55 billion in 2004-052. By year end 2009-10, Inorganic Chemical Manufacturing employment levels will be an estimated 4,625 persons, compared with 4,690 in 2004-052.

Workforce Issues, Characteristics and Activities

All sectors of the chemical and petroleum refining industries predominantly employ males on a full-time basis which involves shift work.

The technology used in Organic Chemical Manufacturing industry has been fairly static over the past ten years. However, in recent years, a number of systems changes have occurred, as an increasing number of global players seek to divest themselves of underperforming operations and cut back on capital expenditure as a means of competing in an increasingly tough operating environment. Another key factor influencing system changes within the industry are the continued advances in internet technology and e-commerce, which are proving to have profound implications for the downstream activities of manufacturers and the distribution channels used. Such trends will have fundamental implications for chemical manufacturers and the ways in which they conduct their operations.

There has been a medium level of technology change within the Inorganic Chemical Manufacturing industry. An issue to note are the general trends in e-commerce and internet technology which are affecting a number of industries worldwide, including various chemical industries. As an increasing number of chemical companies trade online, this will have profound implications for chemical manufacturers and the ways in which they conduct their operations.

For the Organic Chemical Manufacturing industry, in line with historical trends, employment in the industry tended to decline in recent years, reflecting in part the effects of further industry rationalisation, the increased efficiency of remaining industry operators and the effects of increasing import penetration in the face of tariff reductions.1

1 IBISWorld Industry Report, 20 January 2010, Ethylene, Propylene and Other Organic Industrial Chemical Manufacturing in Australia: C2534

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For the Inorganic Chemical Manufacturing industry, employment levels tended to rise in recent years despite the existence of two conflicting forces. Employment levels increased in line with new and expanded production facilities and increased titanium dioxide pigment and sodium cyanide production. Counterbalancing this, industry players sought to improve operating efficiencies and to close down less efficient plants, which in turn resulted in employment cuts, as did moves to rationalise product portfolios.2

In most sectors, remote, computer controlled systems have become the norm, which has lead to a decrease in the number of technicians required to manage physical operations for both upstream and downstream processes. The technicians are becoming more highly trained and multi-skilled, to enable them to cope with the changing work environment, as well as changes in equipment and technology.

Enterprises designated as major hazardous facilities have increased regulatory requirements. Significant increases in the demand for incident response and management competency training has occurred since “Offshore incident response team member” and “Incident response team leader” competencies have been endorsed.

The ageing workforce is a major issue facing all sectors of the chemicals, hydrocarbons and refining industries. Process Plant Operators within the petroleum sector and the downstream chemical and oil refining sectors have an average age of close to 50. Of the total cohort, a significant portion of workers have indicated their intention to retire over the next five to 10 years.

Training Environment and Issues

Increases in technological advances in all areas of process manufacturing require on-going up-skilling for existing workers. Industry supports the use of skills sets to meet the operational requirements of the organisation and only see that offering full qualifications to employees as a recruitment and retention strategy. However, some employers feel that once the employees gain the qualification, they will seek alternative employment.

Traditionally the majority of training has been performed in-house by utilising enterprise developed training programs and “inexperienced” workers shadowing “experienced” workers. There are some issues with the quality of training outcomes and there is a need to coordinate a consistent approach across all industries covered. Given the level of shift work in the industry, there is a need for more flexible training arrangements and self paced learning opportunities. With the increased awareness of the PPP, more accredited training is occurring.

There are several RTOs registered in Western Australia for this industry. However, most of these only deliver selected competencies from the Training Package. Only the Australian Centre for Energy and Process Training, (ACEPT) can deliver whole programs up to Certificate IV.

ACEPT is the leading provider of process operations training, offering AQTF qualifications for the Australian oil and gas, mineral and chemical processing sectors. ACEPT developed out of collaboration between industry and State and Federal governments and is led by an Industry Management Board comprising representatives from leading companies. ACEPT features state-of-the-art equipment and highly experienced training staff.

ACEPT courses include:

Certificate II and III in Process Plant Operations;

Certificate IV in Process Plant Technology; and

Certificate IV in Engineering (Instrumentation).

A Diploma and Advanced Diploma is available now for RPL purposes and a new Associate Degree in Process Engineering is currently being developed.

ACEPT, along with a few other RTOs, can also auspice enterprise-based training and assessment to higher qualification levels.

Development of advanced operator skills for the existing workforce requires focussed training in information processing, data analysis, problem solving, decision making, project management, lead

2 IBISWorld Industry Report, 27 January 2010, Titanium Dioxide and Other Inorganic Chemical Manufacturing in Australia: C2535

3

risk assessment and leadership skills. Training to support competitive manufacturing through increased focus on production efficiencies, quality and safety, health and environment considerations are also in demand.

PETROLEUM REFINING AND PETROLEUM PRODUCTS MANUFACTURING

Western Australia’s only refinery, BP Australia, produces petroleum products which are manufactured by refining crude oil at the company's refinery in Kwinana. Significant investments have led to Kwinana becoming one of the most modern refineries in the southern hemisphere, enabling the refinery to produce cleaner fuels, such as BP Ultimate. In 2006-07, BP Australia’s refineries supplied around 75% of total Australian demand for petroleum products. The remaining 25% of demand was met by imports.

This sector typically does not experience skill or labour shortages, as wages and conditions are well above the average and comparable to the resources sector. There are occasional shortages in process operators, chemical and process engineers. Between the years 1995 and 2009, the number of people employed in Petroleum and Coal Product Manufacturing fluctuated. As an industry, there is a mismatch between the number of males and females in the industry, which could be due to females not being attracted to the industry because the high level of shift work and the preference for tradespersons. There is a lack of understanding regarding diversity of roles in the industry.

In Western Australia, the petroleum refinery industry employs around 400 people, including part-time and casual employees, with a gender mix of 61% male and 39% female. Employee attraction and retention is above average, leading to a relatively stable workforce3.

FERTILISERS AND EXPLOSIVES MANUFACTURING

The fertiliser manufacturing industry consists of companies mainly engaged in manufacturing chemical or chemical based fertilisers, including mixed and organic fertilisers. Many chemical fertiliser manufacturers also produce explosives materials.

The explosives manufacturing industry comprises companies primarily engaged in the manufacture of various explosives, (including primary explosives, secondary explosives and highly explosive materials) as well as fireworks and matches. Industry participants may also be involved in the production of blasting accessories, such as blasting and detonating caps, fuses and cords, detonators and safety fuses.

Australia consumes around 5.3 million tonnes of fertilisers each year4.This provides around one million tonnes of nitrogen, half a million tonnes of phosphorus and two hundred thousand tonnes of potassium. About half of this is manufactured in Australia, including superphosphate, which is manufactured from imported phosphate rock.

Manufacturers operate in a highly competitive domestic market, where barriers to entry are low. Import and export prices are determined by world markets and therefore are subject to the pressures of global supply and demand. Major fertiliser products are traded in significant volumes on the world market and the only barriers to entry into Australia are strict quarantine requirements.

The global economic downturn and declining prices for agricultural commodities lead to a drop in demand for fertilisers. As demand dropped, there was excess capacity and fertiliser prices fell. Another significant influence on global fertiliser prices is the price of fossil fuels, in particular natural gas. Fossil fuels, (and air) are the main input into nitrogen fertiliser production, hence changes in global prices for natural gas are reflected in nitrogen fertiliser prices.

Demand for fertilisers is seasonal and reflects the times when crops and pastures are fertilised. To manage this uneven demand, fertiliser companies, distributors and farmers use a mixture of storage capacity and careful planning of purchases. More than 85% of fertiliser is transported and sold as bulk product, with less than 15% in bags of between 20kg and one tonne5.

3 BP Australia: www.bp.com/sectiongenericarticle.do?categoryId=9026427andcontentId=7048768

4 Fertilizer Industry Federation Of Australia Inc: www.fifa.asn.au/default.asp?V_DOC_ID=1181

5 Fertiliser Industry Federation Of Australia Inc: www.fifa.asn.au/default.asp?V_DOC_ID=1177

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The key driver for fertiliser demand is growth in population and wealth, which increases demand for agricultural commodities. The large populations of China, India and other parts of Asia, in particular, are benefitting from high rates of economic growth. The use of crops to produce bio-fuels is adding to fertiliser demand. There are projections that bio-fuel production will increase fourfold in the period 2000 to 2015. Whilst total fertiliser use for bio-fuel crops is relatively small, it is new, high intensity demand and additional to the strong growth in fertiliser demand for traditional food and fibre crops. The demand for fertilisers continues to increase, as arable land diminishes and existing farmland requires enhanced soil enrichment.

Major employers include CSBP Limited and Burrup Fertilisers.

CSBP Limited, located in Kwinana employs around 1,000 people, including full-time, part-time and casual personnel. Employment gender mix is reported at 79% male and 21% female. Skills shortages are reported in the electrical instrumentation trades. Shortages and high staff turnover are reported for area managers, (based in regional WA) and experienced management personnel.

INDUSTRIAL GAS MANUFACTURING

This industry consists of companies mainly engaged in manufacturing hydrogen, oxygen, acetylene or other industrial gases, (but not gases obtained from petroleum mining or refining).

By the year end 2009-10, the industry, at a national level, is expected to generate revenue of $2.58 billion, compared with $1.84 billion in 2004-05, (in constant 2009-10 dollar terms). This represents an average growth rate of 6.2% per annum. However, year on year growth rates fluctuated between a high of 9.5% in 2007-08 and an expected low of 5.1% for 2009-10.6

Major customers include:

Petroleum, Coal, Chemical and Associated Product Manufacturing.

In recent years, the industrial gas manufacturing industry has benefitted from the increasing demand for hydrogen in the oil and chemical industries in the production of low-sulphur content, transportation fuels. It is also expected to benefit from calls for cleaner burning fuels and the hydro sulphurisation of petroleum products.

Metal Product Manufacturing.

The industry in question is a large consumer of bulk gases, such as oxygen.

Health and Community Services in Australia.

An area into which a number of industry participants have entered in recent years is the health sector, with a number of industrial gases including oxygen, nitrogen, helium and carbon dioxide being used in various medical applications.

Pulp, Paper and Paperboard Manufacturing in Australia

The level of activity within the Pulp, Paper and Paperboard Manufacturing industry affects the demand for particular industry products, including oxygen applications.

Major Western Australian employers include: BOC Limited (part of the Linde Group) 65.0% of the market, Air Liquide Australia Limited 17.0% and Wesfarmers Limited 7.0%.

Technological developments in both the industrial gas industry, as well as their user industries, may give one manufacturer a competitive edge over another or increase the demand for a particular product.

Employment levels fluctuate in line with changes in demand for the industry’s products. However, the commissioning of new plants, (such as the air separation unit operated by Air Liquide WA for HIsmelt’s pig iron operations at Kwinana) also served to boost industry employment levels. By year end 2009-10, industry employment numbers are expected to be in the order of 3,090 persons, compared with an estimated 2,700 persons in 2004-053.

6IBISWorld Industry Report, 02 December 2009, Industrial Gas Manufacturing in Australia: C2532

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SUPPLY AND DEMAND OF TRAINING

There are an adequate number of training providers but there is a question as to the quality of training and assessment being provided. The industry links quality training and assessment to improved safety behaviour and increased production and does not see a need to train for the sake of providing employees with qualifications. Although some employers have reported that providing employees the opportunity to complete qualifications is used as a retention strategy. Needless to say, quality of training is paramount and validity and integrity of the assessment process is critical.

The majority of in-house training is provided to the operator level employees, as there has been inadequate pre-employment training available that equips recruits to be work ready. There is a preference for on-the-job training, with training and assessment directly linked to the equipment being utilised by the individual and to the company’s standards. An issue with workplace training is the lack of equipment availability for the purpose of training, as production needs equipment to be fully utilised for production purposes hence it cannot be used for training purposes. Scarcity of competent assessors in the Perth Metropolitan area for specialised, high risk licences, such as crane driving, also poses an issue. Trainers who have little or no recent industry exposure are an issue and affect the quality of training being provided.

Ensuring access to affordable, high quality training is essential, in order for companies to meet the challenges presented by increased competition and the trend to employ greenfield employees.

6

PRIORITY ACTIONS

The majority of chemicals, fertiliser and petroleum refining within Western Australia occurs in the Kwinana area. The local companies have formed the Kwinana Industries Council, (KIC) a not-for-profit, incorporated business association. One of the many KIC committees is the Workforce and Education Committee, (WEC).

The WEC identified that companies within the region would face severe labour shortages over the next 10 – 15 years, due solely to the impending retirement of an aged workforce and as a result, a Strategic Workforce Development Plan was commissioned. The Strategic Workforce Development Plan provided data about the workforce issues likely to be facing the Kwinana industry into the future and established a set of recommendations which aim to assist KIC members to maintain a viable and sustainable workforce.

The first of the recommendations to be implemented was to establish a brand and marketing strategy for the KIC member companies, with the aim of attracting new, skilled and experienced workers to the region to live. This strategy resulted in the recommendation to create an Industrial Technology Education Centre. This concept had been discussed previously and was initially proposed via Local Government as a tourist focus. Since this time, it has altered to the point where it has a strong focus on the education of young people about careers in the industry. It is proposed that a business case to analyse the potential will be produced during 2009/10.

The WEC is also charged with the duty of providing strategic direction to the Kwinana Industries Education Partnership, (KIEP). KIEP is a formal agreement and commitment between the Kwinana Industries Council, (KIC) and 13 high schools, (government and non-government) located in Rockingham, Kwinana and Hamilton.

KIEP aims to cultivate relationships between local high schools and industry partners, with the broader goal of meeting the evolving needs of both local industry and education. KIEP's primary focus is to broaden the learning experiences of students, through a wide range of community related education and training activities. Regular student tours of the various process plants are provided to schools highlighting the careers available and providing exposure to the companies and what they produce.

Recognising the good work being undertaken by the KIC and KIEP for the Kwinana area, the RITC offered services in promoting and supporting their efforts where appropriate. Given the excellent work being outlined above, the RITC will focus on addressing the needs of employers other than the KIC companies.

LABOUR MARKET AND SUPPLY

Issue Strategy Measure Of Success

Producing Careers Brochures

More people need to be encouraged into the industry.

1. To encourage people into the industry there is a place for the RITC to produce brochures that promote the sectors and their career opportunities. These brochures should be aimed at VET in Schools, career advisers and the job service networks. The State Government could consider funding the printing and distribution of these brochures to the stakeholders

1. Brochures are developed and made available to the relevant stakeholders. Responsible parties: RITC

Promoting Traineeships and Apprenticeships

Employers in the industry are often not aware of the available traineeships/apprenticeships.

1. RITC and DTWD to promote traineeships in the industry to employers and schools.

1. Employers and students are aware of traineeships available in the industry. Responsible parties: RITC and Department of Training and Workforce Development

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WORKFORCE PARTICIPATION


Attracting Under Represented Groups into the Sector

To attract more females, indigenous individuals and new Australians into the industry, targeted entry level training is necessary.

1. The RITC to discuss with major employers and training providers the possibility of a targeted pre-employment program for:

Females;

Indigenous; and

New Australians – including building on their English skills.

1. Training providers are aware of the need for targeted entry level training. Responsible parties: RITC

Attracting Underrepresented Groups into the Industry

The sector has a predominance of male employees.

1. To attract more females into the industry, employers could consider providing flexible work conditions (part-time, job sharing, 80/20 workload).

2. Many females have childcare responsibilities and are therefore not able to engage in full-time employment. If affordable, 24/7 childcare is available in close proximity to the industrial area where employment is available females may consider undertaking part-time or full-time employment.

1. Industry practices and employment are more conducive to employees with family commitments. Responsible parties: employers

2. Fully tax deductible childcare should be available where both parents (or parent in single parent families) are engaged in employment. Responsible parties: employers, local, State and Commonwealth governments

ATTRACTION AND RETENTION


Competing with the Resources Sector

Other than the petroleum refining sector, sectors have commented on workers leaving the sector to work in the mining industry, which has the capacity to pay more. The resources sector has a tradition of long hours, shift work and rosters, all of which enable employees to earn more. The increased earning is usually due to the increased hours worked rather than a higher hourly rate of pay.

1. To compete with the mining sector employers could consider providing similar rosters and shift, for example a 96 hour fortnight consisting of 8 x 12 hour days. This roster would provide the employee with an additional 16 hours of pay.

2. Employers could provide posters outlining the advantages of NOT working in the mining industry.

1. Shifts and rosters similar to the resources sector are available in the industry sector. Responsible parties: employers

Retaining Older workers

To address skill shortages and the loss of skills through retirement; retaining employees who intended to retire has been identified as necessary.

1. Raise awareness of Experience+ funding to employers.

2. Phased retirement, whereby older employees are encouraged to move to part-time employment rather than full time retirement. These individuals can act as mentors to lesser skilled employees.

1. Employers are aware of funding that is available to assist the retention of older workers. Responsible parties: employers, RITC

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TRAINING AND PRODUCTIVITY

Education and training infrastructure needs to mirror current industry usage and training needs to be delivered with a strong safety focus, more realistic employment conditions and within processes that are utilised by industry. Training needs to be conducted by trainers with current industry competencies and under typical industry conditions, (workplace policies and procedures).

Challenger’s ACEPT facility was developed in response to industry demands for a more realistic training venue, i.e., one that simulates industry practices and processes. Overseen by industry leaders, this facility shows that joint commitment in the development and management of realistic training venues is possible and should be encouraged.

ACEPT delivers the following qualifications from the PMA08 Chemical, Hydrocarbons and Refining training package:

Certificate II in Process Plant Operations;

Certificate III in Process Plant Operations;

Certificate IV in Process Plant Technology;

Diploma of Process Plant Technology; and

Advanced Diploma of Process Plant Technology.

The Certificate III in Process Plant Operations has been identified by employers as a pre-requisite for entry into the petroleum industry and the petroleum refining industry along with chemical and fertiliser manufacturers find the training useful for individuals want to enter the industry. Although this qualification does not equip graduates to be effective in the workplace at least they will understand the equipment and the operating a process plant as well as having a focus on safety.

Employers have expressed varied levels of support for employing graduates of Certificate levels I, II and III who do not have any industry experience. There is a strong preference for the Certificate III to include a significant portion of industry placement. The majority consider the Certificate IV would be of little value without any actual industrial work experience.

Large employers in the sector tend to deliver their own in-house training programs. Due to the hazardous nature of the sectors, this training needs to be of a high calibre and relevant to the individual workplace.

BP Refinery, (Kwinana) delivers a rigorous operator training program, which consists of a number of structured components undertaken in the first 6 months of employment, including:

Safety Critical Training covering CSE, RPE and Inductions; 3 week, New Operator Training, which covers non-process technical training, process technical training, (theory) process technical training, (practical) and both

written and practical assessments; 1 week Complex Training, aimed to build knowledge specific to the area to which the new operator will be assigned; 4 weeks of 'Day' shift, on-the-job training with experienced operators; 2 weeks of Fire Training School covering: Fire fighting, CABA, Basic Life Support, Tenders, Rope Rescue and Oil Spills; 7 days a year of catch up training; Ongoing, self paced training utilising Operator Training Manuals; and Progression towards Cert IV in Process Manufacturing.

BP Refinery (Kwinana) training has been mapped to the AQTF. At the end of approximately 2 years on the job, an operator is qualified at Certificate IV level.

At Kleenheat Gas, business is divided into two parts - Production and Distribution. Both parts of the business have very unique workforce and training needs.

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Kleenheat Production: technical training is delivered in-house, using self paced modules and partnering with experienced operators. There is a high focus on safety training, due to the nature of products being produced and safety training is delivered by RTOs. The workforce has low employee turnover.

Kleenheat Distribution: turnover of employees is high, (particularly bulk drivers and staff at distribution depots). Specialised driver training is outsourced to RTOs, whereas all other safety training programs are delivered in-house.

There is a significantly high requirement for knowledge of safety standards and handling dangerous goods due to OHS and dangerous goods regulations in all states. A combination of high turnover, geographical spread and differing state legislations makes training challenging and expensive.

Both divisions of Kleenheat Gas do not take advantage of public funding.

Burrup Fertilisers’ $700 million liquid ammonia plant on the Burrup Peninsula, near Karratha in Western Australia, commenced production in April 2006. The plant uses natural gas as a feedstock for the manufacture of liquid ammonia, used primarily in the manufacture of fertiliser. With a production capacity of 760,000 tonnes annually, the plant is one of the world's largest ammonia production facilities. The project provides employment for nearly 100 production and administrative staff. Burrup Fertilisers has a commitment to recruiting and training local staff to operate the plant, which is the only one of its kind in Australia. To facilitate this, the company has purchased a $1 million Operator Training Simulator, one of only two in the world, to train operations staff. Burrup Fertilisers Pty Ltd recently received WELL funding and Pilbara TAFE delivered the training.


Existing Worker Training

For existing workers, the best option is to utilise traineeships and on-the-job training.

The RITC to promote traineeships and the PPP to employers.

Existing worker training opportunities are promoted to employers through visits and/or newsletters. Responsible parties: RITC

Skills Set rather than Qualifications

In some sectors, (not petroleum refining) there is an increase in skills assessment and skills recognition for existing industry workers but with the focus on skills sets rather than on the broad acquisition of qualifications.

Public funding should be made available for the delivery of skills set training and assessment rather than just funding for full qualifications.

Public funding is available for the delivery of skills set training and assessment. Responsible parties: Department of Training and Workforce Development, State and Commonwealth Governments.

Existing Worker Training

Employers are often unaware of funding available for the on-the-job training for existing workers.

The RITC could promote PPP funding availability to its industry.

For larger employers with a viable number of employees or trainees, RTOs could consider placing a part-time lecturer into the workplace.

Employers are aware of public funding available for on-the-job training. Responsible parties: RTOs?

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THE WAY FORWARD

This industry workforce development plan should be considered along with the information and recommendations in other industry development plans, the regional development plans and the State Workforce Development Plan.

Given the limited level of influence that Training Councils can exert, this workforce development plan is provided to the Department of Training and Workforce Development and interested persons for consideration.

The information and strategies provided that require government action and funding which are considered worthy of actioning will need to be driven by the Department of Training and Workforce Development using its influence in the Western Australian public sector.

Industry associations may like to consider their role in addressing the industry level strategies.

Employers may also find value in considering the strategies and evaluating them for possible effectiveness within their organisation.

Training providers could consider if the training strategies suggested are viable for them and their clients and consider trialling the recommended strategies to identify the appropriateness and cost effectiveness of the recommendations.

INDUSTRY AREA COVERAGE GROUP CLASS DESCRIPTION 120 Oil and gas Extraction 1200 Oil and Gas Extraction

(Coverage of: Onshore and Offshore Plant Technicians, Control Room Technician, Team Leaders)

251 Petroleum Refining 2510 Petroleum Refining

(Coverage of: Process Plant Operator, Process Plant Technician, Control Room Technician, Team Leader, Process Plant Supervisor)

252 Petroleum and Coal Product Manufacturing n.e.c. 2520 Petroleum and Coal Product Manufacturing n.e.c.


253 Basic Chemical Manufacturing 2531 Fertiliser Manufacturing


2532 Industrial Gas Manufacturing (Coverage of: Process Plant Operator, Process Plant Technician, Control Room Technician, Team Leader, Process Plant Supervisor)

2533 Synthetic Resin Manufacturing (Coverage of: Process Plant Operator, Process Plant Technician, Control Room Technician, Team Leader, Process Plant Supervisor)

2534 Organic Industrial Chemical Manufacturing n.e.c. (Coverage of: Process Plant Operator, Process Plant Technician, Control Room Technician, Team Leader, Process Plant Supervisor)

2535 Inorganic Industrial Chemical Manufacturing n.e.c. (Coverage of: Process Plant Operator, Process Plant Technician, Control Room Technician, Team Leader, Process Plant Supervisor)

254 Other Chemical Product Manufacturing 2541 Explosive Manufacturing


2542 Paint Manufacturing (Coverage of: Product Blender, Process Plant Operator, Team Leader)

2544 Pesticide Manufacturing (Coverage of: Product Blender, Process Plant Operator, Team Leader)

2545 Soap and Other Detergent Manufacturing (Coverage of: Product Blender, Process Plant Operator, Team Leader)

2546 Cosmetic and Toiletry Preparation Manufacturing (Coverage of: Product Blender, Process Plant Operator, Team Leader)

2549 Chemical Product Manufacturing n.e.c.

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* ANZSIC Group - Australian New Zealand Standard Industrial Classification Group

** n.e.c. - not elsewhere classified

DATE SOURCES

1. Australian Bureau of Statistics Australian and New Zealand Standard Industrial Classification 1993

2. Australian Bureau of Statistics Australian Standard Classification of Education 2001

3. Australian Bureau of Statistics Count of Australian Businesses 2007

4. Australian Bureau of Statistics Education and Work May 2009

5. Australian Bureau of Statistics Labour Force May 2009

6. Australian Bureau of Statistics Manufacturing Industry, Australia 2006-07

7. http://www.skillsinfo.gov.au/skills/IndustryProfiles/EmploymentbyAge

8. Manufacturing Skills Australia – Industry statistics as at January 2010

9. National Centre for Vocational Education Research 2009 National Apprentice and trainee collection

10. National Centre for Vocational Education Research 2009 National VET provider collection

11. National Training Information Service www.ntis.com.au

12. NCVER National VET provider collection May 2009

13. Pharmaceuticals Education Council Report on skills gaps in pharmaceutical and biopharmaceutical industries December 2007 Phase Two report prepared by Mercury Advisory

14. Source: ABS Counts of Australian Businesses 2007

15. Source: http://www.skillsinfo.gov.au/skills Industry Profiles/Future Growth by Industry

16. Source: http://www.skillsinfo.gov.au/skills Industry Profiles/Employment by Age

17. http://www.fertilizer-index.com/

18. IBISWorld Industry Report, 02 December 2009, Industrial Gas Manufacturing in Australia: C2532

19. IBISWorld Industry Report, 25 February 2010, Pharmaceutical Product Manufacturing in Australia: C2543

20. IBISWorld Industry Report, 22 October 2009, Tyre Manufacturing in Australia: C2551

21. Australian Management Academy, Manufactured Mineral Products http://www.ama.edu.au/index.php?option=com_content&view=article&catid=21:australian-qualifications&id=50:pmc30104

22. IBISWorld Industry Report, 14 January 2010, Plastic Blow Moulded Product Manufacturing in Australia: C2561

23. IBISWorld Industry Report, 20 January 2010, Ethylene, Propylene and Other Organic Industrial Chemical Manufacturing in Australia: C2534

24. IBISWorld Industry Report, 27 January 2010, Titanium Dioxide and Other Inorganic Chemical Manufacturing in Australia: C2535

Petroleum refining chemical fertiliser explosives workforce development plan oct 2010

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