Policy Statement 2015 - NECA · Policy Statement 2015 NECA NATIONAL Level 4, 30 Atchison Street St...

Policy Statement 2015

NECA NATIONAL Level 4, 30 Atchison Street St Leonards NSW 2065 Ph: 02 9439 8523 Facsimile: 02 9439 8525 Email: [email protected]

www.neca.asn.au

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Table of Contents

Chapter Content Page

Background

1.1 CEO Foreword 3

1.2 About NECA 3

1.3 Our chapters and history 4

Industry

2.1 IndustryProfile 4

2.2 Policy position, intent and purpose 5

Policies

3 National Licensing and enhanced labour mobility 6

4 EnergyEfficiency 7

5 Vocational Education and Training 9

6 Small Business 11

7 InfrastructureBudget 13

8 Workplace Relations 14

9 WorkplaceHealth&Safety 16

10 ProductQualityAssurance 17

11 Key Recommendations 18

12 References 20

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1.1 CEO ForewordTheNationalElectricalandCommunicationAssociation’sPolicyStatementfor2015hasbeenformulatedasaresultofaninternalprocessofengagementwithourmembers,statechaptersandNECACouncillors.Theresultingdocumentwasratifiedby the NECA National Executive in January 2015.

Thisdocumentisthefirstofitstypeforourorganisationasitoutlineseightkeypolicythemesandthirtyspecificpolicyrecommendations.IfactionedbyGovernment,NECAbelievesthatitwilldeliveramoreprosperousandeffectiveelectricalcontractingsectorthroughthecreationofnewemploymentopportunities,increasedsafetyandcompliancestandardsandaboostingrowthforournationaleconomy.

Asthepeakindustryvoicefortheelectricalandcommunicationssector,NECAwillcontinuetoengagewithourkeystakeholders,onarangeofpolicypositionsandinanumberofforums.NECAholdstheviewthattheongoingadvocacyofourindustry,viaParliamentarydiscussions,parliamentaryanddepartmentalpolicysubmissionsandpolicyforums,areacriticalelementineffectingpositivechangeforourindustry.

Afterreadingthisdocument,Ihopethatyouwillhaveagreaterappreciationoftheneedsandcontributionsofourindustryaswellasadeeperunderstandingastothepolicypositionsthatwehaveputforward.

Yours sincerely,

Suresh Manickam ChiefExecutiveOfficer

1.2 About NECATheNationalElectricalandCommunicationsAssociation(NECA)isthepeakindustrybodyforAustralia’selectricalandcommunicationscontractingindustrythatemploys145,000workersanddeliversanannualturnoverinexcessof$23billion. We represent approximately 4,000 electrical contracting businesses across Australia.

NECA represents the electrical and communications contracting industry across all states and territories. We aim to helpourmembersandthewiderindustrytooperateandmanagetheirbusinessmoreeffectivelyandefficientlywhilstrepresentingtheirintereststoFederalandStateGovernments,regulatorsandprincipleindustrybodiessuchastheAustralianChamberofCommerceandIndustry(ACCI)andStandardsAustralia.

NECA’s involvement and capabilities within the education and training sector extends to the employment and skilling ofover4,000apprenticeshipsacrossAustralia.WeestimatethatmostoftheseapprenticeshipscarryouttheirworkexperiencethroughNECA’smembersviaourgroupschemes.Wealsodelivertrainingoptionsforafurther3,000qualifiedelectricians to the industry through technical advice, business skills training and business development and marketing trainingformanagement.

In addition, we manage and organise our industry’s National Excellence and Apprentice Awards and promote initiatives such as EcoSmart Electricians, the Does it Comply? campaign, the LJ Hooker Liveability project and our student scholarships program, Electrocomms.

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1.3 Our chapters and historyNECA’sstrengthandinfluencewithintheindustryisevidencedbyourstatebasedchapterstructureacrossAustralia.

Ourfirstchapteropeningitsdoorstomembersin1916.

Whilstalothaschangedsinceourearlyexistence,NECAhascontinuedtoworkhardtorepresenttheinterestsoftheindustryandtodevelopadiverserangeofproductsforourmembersacrossAustralia.

NECA ACT 1/2 Yallourn Street FYSHWICK ACT 2609 Ph: 02 6280 5580 Facsimile: 02 6280 4662 E-mail: [email protected]

NECA NSW Level 3, 28 Burwood Road, Burwood NSW, 2134 Ph:0297441099 Facsimile:0297441830 E-mail: [email protected]

NECA QLD Suite 1.5 Ian Barclay Building 460 - 492 Beaudesert Road SalisburyQLD4107 Ph:0732767950 Facsimile:0732768108 Email:[email protected]

NECA SA 213GreenhillRoad, Eastwood SA 5063 Ph:0882722966 Facsimile:0883731528 Email: [email protected]

NECA TAS PO Box 620 NorthHobartTAS7002 Ph: 03 6234 3464 Email: [email protected]

NECA VIC Level 12, 222 Kings Way South Melbourne, 3205 Ph: 03 9645 5533 Facsimile: 03 9645 5544 Email: [email protected]

NECA WA Unit 18, 199 Balcatta Road Balcatta WA 6021 Ph: 08 6241 6100 Facsimile: 08 9240 4866 Email: [email protected]

Northern Territory PleasecontactourSAoffice forNTenquiries. Ph:0882722966 Facsimile:0883731528 Email: [email protected]

NECA NATIONAL Level 4, 30 Atchison Street St Leonards NSW 2065 Ph: 02 9439 8523 Facsimile: 02 9439 8525 Email: [email protected]

2.1 IndustryProfileAustralia’selectricalcontractingindustryaccumulatesanestimatedannualturnoverinexcessof$23billionandinmanyways,isameasurementyardstickfortheperformanceofAustralia’seconomy.

Approximately36%oftheaveragecontractor’srevenueisderivedfromresidentialprojectswhilst33%isderivedfromcommercialprojects.Theseresultshighlightasubstantialshiftsince2009where46%ofrevenuewasderivedfromresidentialandonly30%fromcommercialsources.

Thelargestsourceofworkwithinthesectorisgeneratedthroughongoingmaintenanceofresidentialandcommercialproperty,however,thesharegeneratedfromtheconstructionofnewpremisesandinfrastructureoverthepasttwoyearshassteadilyincreasedandthistrendisexpectedtocontinuefortheremainderofthedecade.

Source: NECA Market Monitor 2013 Source: NECA Market Monitor 2013

Our industry, like the economy, is dominated by small and medium electrical contractors. The average electrical contractingbusinessemploys13staffand92%employlessthan25staff.

Source: NECA Market Monitor 2013

Primary Business 2013 Revenue Source - >50%

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Manycompaniesoperatenationallyandacrossstateboundaries,makinglabourandlicensemobilityacrucialelementofour industry.

NewSouthWalesremainsthepreferredstatefordomiciledoperationswithinourindustry.

Source: NECA Market Monitor 2013

Akeychallengeforourindustryaswemovetowardsthesecondhalfofthedecadeisashortageofsupplyofskilledelectricalworkers.ThisisevidencedthroughareductioninthecompletionofelectricalapprenticeshipsacrossAustraliaandtheretirementoflongtermandhighlyskilledworkers,leadingtoalossofsuitablyqualifiedelectriciansatbothendsofthesector.

AfundamentalshiftintheAustralianeconomyisseeingaslow-downintheengineeringsector(relatedtomining)andanupswingtowardsconstructionofresidentialpropertyandmajorinfrastructureprojectsarisingfromtheFederalBudget.Thisshiftisexpectedtocontributetoanincreaseindemandforenergysectoremploymentintheshortterm.

Source:NCVERcommencementandcompletiondataprojectionsforElectrotechnologyapprentices2005-17.

Theagedistributionofthesectorin2013furtherhighlightsthechallengestomaintainahighlyskilledworkforce,givenfallingapprenticeshipnumbersandtherequirementtoupskillmorematureworkerstocopewithanexpectedriseinemployment demand.

Source:E-OzEnergySkillsAustraliaEnvironmentalScan2014-ElectricitySupplyIndustryWorkforceAgeRange2013.

2.2. Policy position, intent and purposeTheintentofthispaperistohighlighttopolicymakersandkeydecisioninfluencersthebarriers,threatsandopportunitiesthatcurrentlyexistforNECAmembersandwithinthewiderelectricalcontractingandcommunicationsindustryasawhole.

Itspurposeistwo-fold.Firstly,toprovideNECAmembersandthewiderindustrywithaclearandcomprehensivepolicypaperthatidentifiesthekeychallengesinneedofurgentorlongtermreformwithinthesector.

Secondly, to highlight to the government the barriers and threats that presently exist within the industry and provide solutionsforindustryreform.

HQ vs Operations

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3. National Licensing and enhanced labour mobilityBackgroundDebatecentreduponnationallicensingisnotanewphenomenon.AttemptstoenhancemutualrecognitionoflicensingarrangementsdatebacktothecreationoftheMutualRecognitionAct1992,designedtoincreaselabourmobilityacrossstatejurisdictionsforindividuals.However,thisActexcludesbusinesslicensingarrangements.

TheabilityforbusinesstofreelyoperateacrossAustralia’sstateandterritoriesiscriticalfortheelectricalcontractingandcommunicationsindustry.InJuly2008,theCouncilofAustralianGovernments(COAG)agreedtopursuewiderangingregulatoryreformandatitsmeetingof3July:

“… acknowledged that Australia’s overlapping and inconsistent regulations impede productivity growth. Without change Australia’sfuturelivingstandardswouldbecompromised,thecompetitivenessoftheeconomyreducedandourabilitytomeet the challenges posed by an ageing population diminished.”

COAG’sagreementincludedthedevelopmentofanationaltradelicensingsystemtobeappliedtosevenoccupationalareas,includingtheelectricalindustryandthecreationoftheNationalOccupationalandLicensingAuthority(NOLA)tooversee proposals.

However,asubsequentagreementonanationallicencesystemfailedtomaterialise,inpartduetoalackofinclusionofproperstandardsforsafetyandcomplianceandtheinvolvementofawiderangeofindustrysectorandstateregulatordifferences,whichrenderedtheprocesstoocomplexandineffective.

Whilstindividualstatelicensingagreementshavenotstoppedelectricalcontractingfirmsfromconductingoperationsacrossstateandterritoryboundaries,itisclearthatalackofmutualrecognitionofcrossjurisdictionallicenseshasactedasabarriertoentryandisanunnecessarycostimpedimentforbusinesseswithinourindustry.

Thesearrangementsareparticularlydifficultforbusinessesoperatingacrossmultiplejurisdictionsandforthoseworkinginborderareasasalicenseemustmeetdifferentnon-skillsrequirementsandpayaseparatelicencefeeforeffectivelytheequivalentlicence(s)ineachjurisdiction.

Smallandmediumenterpriseswithinourindustry,bearasignificantlylargerproportionofadministrativecostsforcomplianceacrossmultiplelicensingregimesandthesecostsareoftenpassedontotheconsumer.

AstudyarisingfromtheCOAGagreementin2008highlighted111specificoccupationallicenseswithintheElectricalcontracting industry (Electricians and Electrical Contractors) across Australia’s eight jurisdictions. Once Building and related and Air Conditioning are added, 439 occupational licenses existed.

Occupational Group NSW VIC QLD WA SA TAS ACT NT Total

Electrical (Occupational & Contractor)

13 11 25 12 18 9 7 16 111

Building & building related

50 32 84 7 102 22 12 4 313

Air Conditioning 6 1 3 - 4 1 - - 15

Total 69 44 112 19 124 32 19 20 439

Electrical (Electricians and Electrical Contractors), Building and Air Conditioning licenses as at April 2009. Source:NationalLicensingSystemforSpecifiedOccupations,DecisionRegulationImpactStatementApril2009

Key Issues and Recommendations• NationalLicensing–Driver’sLicencemodel

NECAsupportsthecreationofasingle,nationallicencingschemeforbothelectriciansandelectricalcontractors.However,itsimplementationmustnotdilutesafetystandardsandtechnicalexpertise.

NECAadvocatesfortheintroductionofasingle,national,driver’slicencetypemodelforimplementationacrosstheelectrical trade in Australia.

Under a driver’s Licence model, an occupational license issued by any jurisdiction would be recognised across each state and territory in the Commonwealth, with state and territory regulators continuing to maintain individual licensing arrangements.

Thislowcostmodelwouldincreaselabourflexibilityandmobilityandwouldreducesomecomplianceandregulatoryburdenswithcurrentarrangementsandremovestherequirementformultiplelicenseregistration,renewalsandadditionallicensefees.Thismodelavoidsthecomplexitiesofafullyharmonisedandnationallyco-ordinatedapproach.

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• Lackofrecognitionforcrossstateandgrouplicenses

A13December2013meetingofCOAGagreedtodiscontinueplansfortheNationalOccupationalLicensingsystemandinsteaddevelopreformstoimprovelabourmobilitywithouttheimpositionofatop-down,nationallyco-ordinatedapproach.

TheNewSouthWalesGovernmenthasrecentlyintroducedlegislationundertheMutualRecognition(AutomaticLicensedOccupationsRecognition)Bill2014thatwouldenabletheequivalentjurisdiction’soccupationallicencetoberecognisedwithinNewSouthWalesbaseduponthejurisdictionoftheprincipleplaceofresidenceofthelicenseholder.

TheQueenslandGovernmentrecognisessomeexternallicenseequivalentsandotherstatesarelookingtoimplementsimilarreformsfollowingmeetingsoftheCouncilofAustralianFederationin2014.

Inaddition,weencourageallstatestosimplifyandaligntheirtrainingprocessestodeliveramoreconsistentapproachtolicensingacrossthecountry.Analignmentoftrainingprocesses,combinedwithenhancedrecognitionofmutualrecognitionwouldleadtogreatercompetitionandreducedcostsforelectricalcontractors.

NECAsupportsmutualrecognitionlicensingreformacrossAustraliaandencouragesallStatesandTerritorytoadoptthesereformsasamatterofurgency.

Industry opportunities and funding implications• NECAtoconveneandadministeranelectricalindustryroundtable,todriveanddevelopoptionsfortheFederal

Governmenttoimplementasingle,nationaldriver’slicensemodelthatactstoreduceredtape,isefficientandemployerfriendlyandsustainsourindustry’srequirementsforstrongandeffectivesafetystandards.

4.EnergyEfficiencyBackgroundOngoingelectricitypricerisescoupledwithAustralianconsumersdesiretodecreasetheircarbonfootprintshascreatedanewinterestandlandscapeforenergyefficiencyandsustainability.

Increasingly,consumersarerealisingandexperiencingthetrade-offbetweenthepurchaseanduseofenergyefficientproductsandareductionintheircostofhouseholdbillsandareactivelyseekingnewinformationandopportunitiestomaketheirhomeandlifestylesmoreefficient,sustainableandbegoodenvironmentalcitizens.

WhilstAustraliahashistoricallyhadstableelectricityprices,overthepastfiveyears,priceshaverisenonaveragebyupto70percent.Thesepricerisesarefuelledbytwofactors–thecostofupgradingthe“polesandwires”oftheenergynetworksandaspikeinenergydemandontheelectricitysystemsfromhouseholdappliances.

EnergydemandinAustraliaisatitsgreatestatthehottesttimeoftheyear,afternoonsinsummer.

ArecentGrattanInstitutestudypointedoutthebenefitstoconsumersofbeingmadefullyawareofthecostsofinefficientenergyconsumptionandthattheadoptionofthesysteminFranceoverthepast20yearshadledtoa10percentreduction in electricity bills and a 45 per cent drop in usage on peak demand days.

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Key Issues and Recommendations

• EnergyEfficiencyandlowerelectricitybillstradeoff

Australiahasseenitshouseholdelectricitypricesrisebyupto70percentinthepastfiveyears.Thisgrowthinpriceshasmainlybeenfuelledbyarecord$8billionworthofexpenditureinupgradestotheagingelectricitynetwork,knownasthe“polesandwires”anddemandfromnewhomesandbusinessescontainingappliancessuchasairconditioning,flatscreen televisions, laptops and smart phones.

Otherfactorsfortheincreasesincludethecarbonprice,retailandenergyschemessuchastheRenewableEnergyTarget(RET)andthecostsofwholesaleelectricitygeneration.

SomeStateGovernmentshaveimplementedenergyefficiencyschemessuchastheEnergySavingsScheme(ESS)inNew South Wales to assist households and business to reduce electricity consumption and costs.

Itiscertainthatconsumersarekeentoexploremoreefficientandeffectivewaystonotonlyreducetheirpowerbills,butbeapartofamoresustainablefuture.

NECAbelievesthatfutureelectricitypricerisesarethenewnormandthatconsumersandindustryaregenuinelyinterestedaboutamoresustainableenvironmentalfuture.

NECAbelievesfurtheropportunitiesexisttoeducateconsumersabouttheimportanceofcleanenergy.Consumersarekeen to be seen as environmental citizens and are prepared to participate in pilot schemes and trial programs that seek tomakegreateruseofrenewableenergyproducts.

Giventhesubstantialleadtimeandsignificantcapitalinvestmentrequiredtodevelopcleanenergygenerationprojects,NECAbelievesthatgreatercertaintyisrequiredtonotonlyencouragelongterminvestmentinthesectorbutalsoforconsumerstobenefitfrommorestableenergypricing.

NECA’sEcoSmartElectriciansinitiativeisanexcellentexampleofthetypeofprogramthatconnectsconsumerswithelectriciansandcontractorstosupportamoresustainablefuturebyprovidingusefuladviceonproducts,traininginitiativesandtipsonhowtobemoreenergyefficient.Inaddition,theEcoSmartElectriciansprogramdeliversanationallybased training and accreditation program via NECA’s state chapters.

The program covers training and education in energy management, lighting and solar generation and upon completion, anelectricianisprovidedwithanationallyrecognisedcertificationthatprovidesauniquesellingpointtotheircustomers.

• NationalEnergyCustomerFramework

NECA’smembershiphaveexpressedconcernwiththeimplementationoftheNationalEnergyCustomerFramework(NECF),inparticulartherequirementtosubmitapermissiontoconnect(PTC)formpriortojobcommencement.

Anumberofunintendedconsequenceshavearisenwiththeintroductionofthisframeworksuchasanincreaseinredtape,thelossofbusinessopportunityandthelackofenforcementoftheregulatorymeasurethatunderpinsthequalityofthe contractors work.

AdvicefromtheindustryarisesfromarequirementforacontractortosubmitaPTCpriortoanincreaseinloadbeingdrawnfromtheelectricitynetwork.Withthelengthoftimetakentoobtainaconnectionapprovalbetween10and45days,feedbacksuggeststhatsomecontractorsarepreparedtobreaktherulestogainbusinessthroughthebypassingoftherequirementtoobtainaPTCthroughthesupplyauthorityandthereforenon-compliance.

WhilstapenaltynoticeisissuedtoanelectricalcontractorwhenaCertificateofComplianceforElectricalWork(CCEW)issubmittedandacorrespondingPTCisunabletobematched,evidencesuggeststhatasaresultoftheintroductionoftheNECF,contractorsarefailingtosubmittheCCEWformandthereforeareunlikelytobecaughtfornotsubmitting a PTC.

GiventhattheCCEWformistheonlyregulatorymeasuretoensurethequalityoftheinstallationwork,NECAremainsconcernedwiththepotentialramificationsandunintendedconsequencesofthepresentNECFthateffectivelycreatesanincentiveforworktobecarriedoutbynon-compliantcontractors.

NECAurgesurgetheFederalGovernmenttoreviewtheNECFlegislationandtohavethematterdiscussedatafuturemeetingoftheCouncilfortheAustralianFederation.

Industry Opportunities

NECAbelievesthatthefundamentalsoftheEcoSmartElectriciansprogramaresoundanditcanhelpbuildconsumerconfidenceintheelectricalindustry,provideeducationalinformationaboutcleanenergysources,energyefficiencyandsaving money at home.

WebelievethatEcoSmartElectriciansshouldbeendorsedasarecognisedskillsetandbeincludedinaformallyVETrecognised Electrotechnology training course. This recognition would allow the program to receive a point advantage acrossanumberofStateGovernmentprocurementprograms,providingfurtheropportunityforitsdelivery.

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Inaddition,NECAshouldformaMemorandumofUnderstandingwithrelevantkeyindustrysectorstohelppromotethevalueandimportanceofEcosmartElectricians.Thoseindustries’thatarehighlydependentupontheuseofenergysuchashotels,restaurantsandcafeswouldbekeytargetstoexplorefutureopportunitieswith.

NECArequeststhattheFederalGovernmenttakesownershipofEcosmartElectriciansanddevelopsitintoapilotprogrambyenhancingitsofferingsasakeyconsumerfacingwebsite,withanationallyrecognisedtrainingandaccreditationprogram.TheadditionalresourcesprovidedbytheFederalGovernmentcanhelpdeliverasimpleandefficientproductthatisunderstoodbyowners,contractors,tradesmenandapprentices.

5. Vocational Education and TrainingBackgroundNECAbelievesthatqualityeducation,skillsandtraininginitiativesarecriticalforthedevelopmentoftheelectricaltrade.AsaleadplayerinthetrainingoffutureandcurrentelectriciansandcontractorsthroughourgrouptrainingandwhollyownedRegisteredTrainingOrganisations(RTOs)acrossAustralia,withresponsibilityfortheongoingskillingandtrainingofover4,000apprentices.

OurstatechaptersconductindustryspecifictechnicalandbusinessskillstrainingacrossawiderangeoftopicsandourEcosmartElectriciansaccreditationprogramoffersanationaltrainingandaccreditationprograminenergyefficiencyforelectricians and contractors.

In2007,NECAconductedasurveyofnearly3,000Australianelectricalcontractorsabouttheirperceptionsofskillshortageswithintheindustry.Thesurveyresultsdeliveredarangeoffindingsincluding;

• Mainly across businesses employing 25-100 people• Skills shortages were more acute across Australia’s smaller states• Skills shortages were noticed mainly by managers, not so much by owners• Verylittleexpenditurebybusinessesonstafflearningandtraining

NECAstronglybelievesinthefutureoftheRTOsectorbutwelcomesreformofthissector.Ourmemberfeedbackandown experience within the Vocational Education and Training sector suggests that the current standards have not always ledtothedeliveryofquality,jobreadygraduateswiththenecessaryskillsrequiredbytheindustry.


Perception of the industry

Marketingandotherpromotionalactivityaroundthetradeshasledtoasignificantincreaseinapprenticeshipapplicationsduringthepasttwoyears.Thiseffortshouldbemaintained.ItisimperativethatthepeaknationalindustrybodyrepresentingemployerstakesimmediateresponsibilityfortheCommunityandEducationEngagementPartnershipsprogramandotherrelevantprograms,toassistindustryincommunicatingwiththeplethoraofstakeholdersatregional,state/territory and national levels.

ItisimperativethatthepeaknationalindustrybodyrepresentingemployerstakesimmediateresponsibilityfortheCommunity and Education Engagement Partnerships program and other relevant programs to assist industry to communicatewiththeplethoraofstakeholdersatregional,state/territoryandnationallevels

School and entry requirements

Concernswereexpressedregardingthequalityofvocationaleducationandtrainingofferedinschoolsandhowthemassiveincreaseinresourcesfortradeschoolswillinvolveemployers.Consultationrevealednoclearpictureofindustryinvolvementatnational,state/territoryorregionallevel.ThisneedstoberectifiedurgentlybytheFederalandState/TerritoryGovernments.

Thereisaneedtoreformtheapproachtopre-apprenticeships.Therearealargenumberofschoolandotherpost-compulsoryeducationstudentsinpre-apprenticeships.Thepre-apprenticeshipsareagoodsourceofapprenticeshipapplicationsfortheindustryandprovideawaytoscreenpotentialapplicants.Someofthesecourses,however,aretooinstitutionally-based and do not always lead to good vocational outcomes. This issue will become increasingly important as employment opportunities within the industry slow.

School-basedapprenticeshipsareimportantpathwaysforstudents.Theyshouldbeencouragedwheretheymeetemployerandstudentneeds,particularlywherethereisflexibletimetabling.Insomecases,itmaybesufficienttousethisoptionforYear11studentstobridgethegapinacademiclearningrequiredinoff-the-jobtraining.Employershaveonlylimitedunderstandingofthisoptionanditsabilitytosupplementlabourwhenoff-the-jobtrainingisbeingundertakenbyfull-timeapprentices.

Attainmentofacceptableminimummathematicsskills(atleasttosoundYear10level)isanon-goingproblemwithyoungapplicants.ThefailureleveloftheNECAmathematicstestisparticularlyhighinNSW.Thereisaneedtodeveloppracticalmathslessonsinschoolsfortrade-trainingaspirants,withinvolvementofrelevantpartnersintheeducationsystems(includingtheAustralianAssociationofMathsTeachers).

Thereisaneedtodeveloppracticalmathslessonsinschoolsfortrade-trainingaspirants,withinvolvementofrelevantpartnersintheeducationsystems(includingtheAustralianAssociationofMathsTeachers).

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Labour market changes

Skillandlabourshortagesimpactonindustrycompaniesdifferently,dependingontheirsize,thetypeofworktheyundertake and their location. NECA survey outcomes such as the Market Monitor have proven to be important contributorstothenationalskillsshortagesdebateandhavebeensoughtbyarangeofagenciesandgovernmentdepartments. NECA will undertake the Market Monitor on an annual basis.

TheshiftofworkersfromonestatetoanotherandoutsideofAustraliahashadalargeimpactontheindustry.(E.g.Upto 500 electricians leave Victoria every month to work in other Australian states and territories such as Western Australia and Queensland, as well as overseas). A slowdown in the mining sector may start to reverse this trend.

Intightereconomicconditions,theindustryshouldcontinuetoencouragetheuptakeofapprenticestoprovidesupplementary and targeted support to employers. It is imperative that intakes continue at a sustainable rate to avoid potential labour and skill shortage lags as experienced in the early 1990s.

Training pathways and funding of training

Theindustryshoulddevelopaclearsetofcareerpathways,withcomplementarytrainingpathways,toreflectindustryneeds.Thereisstilldebateaboutthemostappropriatelengthoftimeforapprenticeshipsalthoughitisacknowledgedthatgenerally,theindustrywishestoretainapprenticesforalongertimeperiod.

FundingfortrainingintheindustryshouldbeprioritisedannuallyinaccordancewiththeNECAskillssurvey.

StrongsupportremainsforCertificateIIIastheprimaryentrypointfortheindustrybutthereisaneedforalternativeentrypointsatCertificateIIlevel(includingTradesAssistants).

Thereisaneedforadditionaltrainingininstrumentationasa‘skillsset’atCertificateIVorequivalentlevel.

Statesandterritoriesshouldfundtrainingofindustrysupported‘skillsets’,particularlyatpost-tradelevels.Thisrespondstotheoveralldrop-offinformaltrainingundertakenbyworkersintheindustryandtheirpreferenceforshortertrainingtimes. The employee survey shows that many post-apprentices spend less than one hour a month on training and professionaldevelopmentattheirowninitiative.

Considerationshouldbegiventoacoresetofcompetenciesthatreflectenvironmentalrequirementsfortheindustryandconsumers.GovernmentshouldcontinuetoprovidefinancialassistancetoemployersthroughoutAustraliafortheirpeople to undertake the EcoSmart Electricians program and maximise skills in this area.

Delivery arrangements

Thereisaneedforcloserco-operationbetweentheindustryandpublicprovidersoftraining.TheindustryreliesheavilyonTAFEforthedeliveryoftrainingbuttheoutcomesdon’talwaysmeettheindustry’srequiredstandards.

Many employers have criticised the current industry Training Package as too complex and not delivering what the industrywants.Industryconsidersthatmanyofthecurrentlearningmethodologiesandmuchofthecoursecontentisvery dated.

Assessmentoftrainees/apprenticesremainsanongoingproblemforemployers.Thisaddstoalackofconfidenceinthe national training system and training providers. The Star Rating system undertaken by NECA through the Institute ofTradeSkillsExcellence(ITSE)wasstronglysupportedbytheindustryandshouldbecontinuedthroughtheTVETAustraliaarrangements.TheoutcomesofthereviewundertakenbyNECAoftheStarRatingsystemshouldbeexaminedbySkillsAustraliaasamatterofpriority.

Thereisconfusionamongstakeholderswithinthenationaltrainingsystemovertheimportanceofindustry-supportedcoursesthatareaccreditedthroughstateandterritoryaccreditationbodies.ThesecoursesmustmaintaintheflexibilitytoimportcompetencesfromotherTrainingPackages,toprovideemployerswithcustomisedtrainingpathwaysthatmeetindustry needs.

Providersshouldreintroducenightschoolstoeasethepressureontheworkplaceandcreateadditionalopportunitiesfortraineestoformalisetheirskills.

Taxation

Governmentsshouldconsiderintroducingtaxincentivesforemployerstotakeonapprentices,particularlyforsmallcontractorswhoformthebasisoftheindustry.

Employeeswhoundertakeandcompleteadditionaltrainingathigherlevels(post-trade)shouldreceiveadequatetaxbenefitsasanincentivetocompletequalifications.

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Incentives

There is a strong connection with the supervision rules and a company’s ability to take on apprentices. In particular, smallercompaniesare‘lesspreparedtotakeyoungpeopleundertheirwing’,withtherulesoftenconsideredtoorestrictive. Mentoring schemes with appropriate government support should also be introduced, drawing on the vast experienceofolderworkers.

Trainingfundsneedtobeusedwheretheyexisttorewardcompaniesthatarecontributing,ratherthangoingtoemployers who do not invest in skills development. Additional government assistance should be provided when companies employ adult apprentices at the stipulated EBA rate.

Initiatives to encourage apprentices to pursue excellence in their employment and training outcomes should be examined.TheNECAApprenticeshipAwardsareanimportantfocusforindustrybutmoreneedstobedone.Theintroductionofgradedassessmentfortheindustryshouldalsobeexaminedatanationallevel.

Grouptrainingorganisationsthatexperiencedowntimefortheirapprenticesshoulddevelopshorttermemploymentopportunitiesthatmaybeconsideredforrelevantstateandterritorygovernmentassistance.

Potential labour pools and disadvantaged clients

Employersareconcernedaboutthepotentialimpactofwelfare-to-workclientsontheirworkplaces.Relevantagenciesshouldundertakefocusedconsultationwiththeindustrytodeterminepossiblecollaborationsandbestpracticemodels.

IndustryshouldworkwithinterestedcompaniesintheimplementationoftheNECAIndigenousEmploymentandTrainingstrategy.

Additional Research

• Determinationofrelevantregulationatvariouslevelsofgovernment,particularlynewenvironmentally-relatedregulation,anditspotentialinclusionintrainingpackagesorseminars;

• Widerindustryactivitydataasitrelatestothebroaderconstructionindustry;

• Furtherexaminationoftrainingandskillsdevelopmentexpenditurepatternsandvalueformoneypropositions;

• Thepotentialformigrantworkersandindustry-widesupportstrategies.

VET Reforms

On11September2014,MinisterMcFarlaneannouncedarangeofreformstotheoperationsofASQA,RTOsandamendmentstothedeliveryoftrainingpackages.

Keytothesereformsisthedelegationofregulatoryresponsibility.RTOswithastronghistoryofcompliancetonationalstandardsthathavealreadymeteligiblecriteriaanddeliverqualitytrainingoutcomeswouldbeinvitedtoapplyforadelegationofregulatoryresponsibility.ThedelegationassignsmoreautonomytoRTOsforaninitialtwelvemonthperiod,removingtherequirementtoconstantlyupdatetrainingpackageswithASQAthroughouttheperiodofthedelegation.

NECAwelcomesfurtheraspectsoftheMinister’sreformstodriveimprovementintrainingoutcomesacrossthesector.ThisincludesimprovingeducationandsupporttoenablepoorlyperformingRTOstoimproveandmeetstandardsandasharper regulatory process to manage rogue operators.

6. Small BusinessBackgroundSmallBusinessisthelifebloodofthenationaleconomyandtheelectricalandcommunicationscontractingindustry.Dominatedbysmallandmediumenterprises,92%ofbusinesseswithinourindustryemploylessthan25staff,comparedwiththenationalaverageofjustover70%.

TheSMEnatureofourindustryneedstobeproperlyrecognisedbytheFederalGovernment,alongwiththeburdensthatmanyofthesebusinessesfaceonadailybasis.

Wesupportthelegitimacyandendeavoursofsoletraderswithinourindustrythroughdirectcontractswithclientsbusinessesandasemployersofskilledelectricalstaff.

NECA,priortothe2013FederalElection,supportedtheAustralianChamberofCommerceandIndustry’s(ACCI)campaignTheBig4,YouCan’tIgnore,whichheadlinedfourkeyareastoimproveconditionsforsmallbusiness–CutRedTape,SimplifytheTaxSystem,MakeItEasiertoEmployPeopleandBuildBetterInfrastructure.Thefocusofthiscampaignwastohighlightthekeychallengesfacingsmallbusinessandmediumenterprisesincludingadministrativeburdenandtheunnecessaryduplicationofregulationandredtape.

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• LegislativeSunsetProvisions

TheFederalGovernmentcouldalsoassistSME’sandindependentcontractorslegislativelythroughtheinclusionofsunsetprovisionsforanynewbusinesslegislation.

Asunsetprovisionmeanstheintroductionofanewpieceofbusiness/industryrelatedlegislationwouldbeaccompaniedbythereplacementandremovalofanexistingpieceoflegislation,onaoneforonebasis.

Thisactionwouldhelptoreduceredtapeandremovethepotentialforcontradictoryregulationisthatmaycontinuetoexistwiththeamendmentstospecificlegislation.

• Superannuationadministrationandthefuturecostsofcontribution

Anothercostburdenforbusinesswithinourindustryistheresponsibilityofsuperannuationadministration,whichfallstosmall business.

NECAbelievesthattheadministrativecostsofanyGovernmentlegislatedprogramshouldbebornebytheGovernmentand not small business.

Theincreaseincompulsorysuperannuationcontributionsinfutureyearsremainsachallenge.WhilstwesupporttherecentdecisionoftheFederalGovernmenttofreezethecompulsorycontributionat9.5%until2021,webelievethatarateof12%isunsustainable.

NECAbelievesthatthecompulsorysuperannuationcontributionof12%isunsustainableandcallsforthisfiguretobecappedat10%from2023.

NECAsupportstheintroductionofsunsetprovisionsfornewbusinessrelatedlegislation.

• Taxreduction

NECAbelievesthattaxreductionisacriticalsteptoassistingthegrowthandcompetitivenessofourindustryandthecreationofadditionalemploymentopportunities.

The2014FederalBudgetreducedthecompanytaxrateforsmallandmediumenterprisesby1.5%to28.5%,however,theHenryReviewcommissionedbytheformerGovernmentrecommendedafurtherreductionto25%intheshorttomediumterm,subjecttoeconomicandfiscalcircumstances.

Payrolltax,whilstanimportantrevenuegeneratorforstateandterritorygovernments,isessentiallyataxontheemployingofAustraliansandadisincentivetogrowsmallandmediumenterprises.Eachstateandterritorymaintainsseparatetaxandthresholdlimitscreatingfurtherconfusionandcomplexityfornationalbusinesses.NECAencouragesStateGovernmentstofollowVictoria’srecentexampletoreducepayrolltaxandtohaveanationaldiscussiontoencourage greater harmonisation and its long term removal.

NECAencouragesthesettingofguidanceandafuturestrategytoimplementthekeyrecommendationoftheHenryReview to reduce the company rate to 25%.

NECAcallsforanationaldiscussiontosetinplaceatimetabletoharmonisepayrolltaxregimesandalongtermplanforits eventual phasing out.

• StabilityofPayment

Electricalcontractorsaremoreofteninvolvedinthelatterstagesofthebuildingandconstructioncycleandareoftenthelastinthecreditlineforpayment.Thisbecomesparticularlydifficultintheeventoftheconstructionfirmfallingintoreceivershipaselectricalcontractorsaretreateddifferentlyacrosseachstate’sFairTradingDepartment.

NECAcallsfortheharmonisationofthecreditorlineprocessacrossAustraliasothatelectricalcontractorsarenotdisadvantagedfromthecollapseofaconstructioncompany.

• Alignmentofbusinessreportingtimeframes

Thealignmentofkeyreportingtimeframesacrossthefinancialyearwouldbeparticularlywelcomedbybusinesseswithinour industry.

NECAbelievesthatthesimplificationofbusinessreportingtimeframesisanessentialingredienttoreducingredtapeandanalignmentofreportingforBAS/PAYGadministration,FringeBenefitsTax,WorkplaceGenderEqualitycomplianceandother items is long overdue.

NECAarguesthatkeyreportingtimeframessuchasBASandPAYGtax,FBT,WGEAcomplianceandothersshouldbereviewedandbemorecloselyalignedtoreduceadministrativeburdens,toallowbusinesstofocusupontheiroperationsandnotonGovernmentpaperwork.

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• NECAsupportstheACCIcampaigntoseektheintroductionofsunsetclauseprovisionsforanynewpieceofbusinessand industry related Federal legislation.

• NECAtolobbytheTreasurerandMinisterforSmallBusinesstoseekareviewoftheIndependentContractorsAct,theunsustainableincreaseincompulsorysuperannuationratesandtheadoptionofatimetabletoreducecompanytax.

• NECAtoconstructanindustrycampaigntohighlightthedifficultiesthatelectricalcontractorsfacewithGovernmentreportingagencies,seekinganalignmentofreportingtimeframesandthereductionofadministrativeburdens.

7. Infrastructure BudgetBackgroundTheAbbottGovernment’sfirstbudgethaslaidouta$50billiondollarexpenditureandinvestmentprogramoverthenextsevenyearsthroughuntil2019-20.Thisexpenditureisexpectedtoboosteconomicgrowthby1%ofGDPandoffsetsomeoftheslowdownwithinthenation’sminingsectorfortheremainderofthedecade.

Thecoreofthisbudgetincludesaninitialoutlayof$11.6billionunderitsInfrastructureGrowthPackageandincludesa$5Billionassetrecyclinginitiative,$3.7Billiontoboostandexpeditenationallyidentifiedcapacitybuildingprojectsofsignificanceincludingthe$2.9BillionfundingoftheWesternSydneyInfrastructurePlan(includingBadgery’sCreekAirport),Melbourne’s CityLink project and Adelaide’s North-South Corridor.

TheestablishmentofanassetrecyclingfundisdeliveredfromamountsintheBuildingAustraliaFund,theEducationInvestmentFundandproceedsfromthesaleofMedibankPrivate.ThefundalsoprovidesnewinfrastructureincentivesfromtheCommonwealthforStateandTerritoryGovernmentstoprivatisenon-essentialassetsorreducedebtinordertofundfutureinfrastructureinvestment.

ThebudgetalsoprovidedadditionalincentivesforsmallandmediumenterpriseswithacutinthecompanytaxratefromJuly 1st, 2015.

Source: www.budget.com.au


• Shortageofeconomicinfrastructure

Australiahasacriticalshortageofeconomicinfrastructureandwebelievethatfurtherleadershipisrequiredtoaddressandremoveinfrastructurebottlenecksacrossthecountry.

ThebulkoftheGovernment’sinvestmentwillbedeliveredinNewSouthWalesandQueensland.WithoneintwoSydneyresidents expected to live in Western Sydney by 2030 and Queensland’s population growth continuing to expand in its SouthEast,thedirectionofthisinvestmentwouldappeartobewelldirected.

WhilsttheinfrastructurebudgetisdesignedtooffsetsomeoftheslowdownintheminingsectoracrossAustralia’sresourcerichstates,clearlyfurtherheavyliftingwillberequiredbythosestateandterritorygovernmentstoconstructanddeliverinfrastructureinvestmentoverandabovetheseFederalannouncements,despitethefinancialdifficultiesinherentacross most state and territory budgets.

Ongoinginvestmentincriticaleconomicinfrastructurewillpresentopportunitiesfortheelectricalcontractingindustryinthe years ahead.

NECAsupportstheintentofthe2014/15FederalBudgetthatsetsinfrastructuredeliveryasakeyinvestmenttoboostingeconomicgrowthby1%ofGrossDomesticProduct,boostingtheconstructionsectorwhilstattemptingtooffsettheslowdown in the mining sector.

NECAsupportstheestablishmentofanassetrecyclingfund,createdfromthesaleofFederalGovernmententerprisesandotherfundswithadditionalincentivesforStateandTerritoryGovernmentstopaydowngovernmentdebt,throughtheprivatisationofnon-essentialassetsthatwouldleadtofurtherinfrastructureinvestment.

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NECAbelievesthatopportunitiesexistforapprenticeshippilotschemestodeliverthefutureinfrastructurethatisvitalforAustralia’s economic wellbeing.

TheGovernment’sdecisiontomoveforwardwiththeconstructionofasecondairportatBadgery’sCreekinWesternSydney is expected to create up to 35,000 new jobs.

Webelievethatapilottraineescheme,managedbyNECANSWwiththesupportofmemberbusinesses,wouldbebeneficialtofuturetrainingandskillsdevelopment.

NECA’sEcoSmartElectriciansprogrammodelcouldbeusedasthebasisofsuchofaschemeandwouldalsobeusefulfortheretrainingandskillingofdisplacedworkerswithinthosepartsofthenationaleconomyfacingfutureeconomicrestructure.

Replicamodelscouldalsobeimplementedacrossthecountry,particularlyinVictoriaandSouthAustralia,bothofwhichwillseetheremovalofcarmanufacturinginMelbourneandAdelaideoverthenextthreeyears.

Source: www.budget.gov.au

8. WORKPLACE RELATIONSBackgroundNECAbelievesthatareturntoaworkplacesystemthatisfairtoboththeemployeeandemployerisacriticalstepfortheelectrical contracting industry.

Wesupportaframeworkthatseekstodelivergreaterflexibilityandefficiency,promoteslabourmarketreform,freedomofchoiceforemployersandemployeesandpreservingtherightsandroleofindependentcontractors.

SmallBusinessdoesnotfollowaonesizefitsallapproachandneithershouldaworkplacerelationsmodel.Employersandemployeesshouldbefreetoenterintomutuallybeneficialandfairarrangementsthatfitthecircumstancesofthebusinessandemployeeswiththeprotectionofasafetynet.

ACCI’sTheBig4YouCan’tIgnorecampaignforthe2013Federalelectionhighlightedmakingiteasiertoemploypeopleasakeytheme,andgivenNECA’sstrongcommitmenttothetrainingandskillingofover4,000apprenticesacrossthecountry,westronglysupportchangestoworkplacerelationslegislationthatdelivergreaterflexibilityforbusinesseswithinourindustrytohire,train,retainanddismissstaff,wherenecessary.

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• FlexibleWorkplaceAgreements

NECAbelievesthatmutuallybeneficialagreementsshouldbereachedbetweenemployersandemployeestofittheparticularcircumstancesoftheworkplaceandeconomichealthofthesector.Inmanyinstances,collectivearrangementshavebecometooinflexibleandhavefailedtomeettheneedsoftheSMEbusinessandtheindividualemployee.

Theseagreementswouldbeconductedundertheprotectionandbenefitofanodisadvantagesafetynetfortheemployeeandallowforwageincreasestiedtoproductivitybargaininggainstobenegotiatedoneonone,ratherthanbecollectively bargained.

Workplacebargainingisoftenusedbytradeunionsasameansofinfluencingworkplaceoutcomestolimittheuseofindependent contractors. Workplace bargaining demands should only be linked to employment relationships.

• ExtensionofUnfairContractProtections

Theextensionofunfaircontractprotectionsforsmallbusinessisanimportantstepforourindustry,givenitsSMEcharacter.Whilstunfaircontractprotectionscommencedin2011underAustralianConsumerLawtoprotectconsumers,the legislation did not extend to the small business sector.

TheFederalGovernmenthasrecentlyreleasedadiscussionpaper-ExtendingUnfairContractProtectionstoSmallBusinessthatproposesanumberofoptionstoextendunfaircontracttermprotections,rangingfromastatusquopositiontolegislativereformthatwouldenablestandardformcontractstobenegotiatedonrequestonly.

NECAbelievesthatmutuallybeneficialcontractarrangementswithanin-builtsafetynetshouldbereachedbetweenemployees and the employer.

NECAisconcernedthatbusinesseswithintheelectricalcontractingindustryhavesufferedfromhavingtoacceptstandardformcontractsonatakeitorleaveitbasisfromlargerbusinesses.

Thesecontracttermsmayunfairlyadvantageonepartyovertheotherandcomparedwithlargerbusinesses,smallerorganisationsareoftenlesswellplacedtomanagethetransferofrisks,lacktheabilityortechnicalexpertisetoproperlyanalysethedetails,ormaintainthenecessarypowertoeffectivelynegotiateacontractwithalargerfirm.

• RedundancyFunds

NECAremainsconcernedabouttheoperationsofindustryredundancyfunds.

Whilstredundancyfundsweresetuptosafeguardtheredundancybenefitsofworkersacrosstheindustryasaformofincomeprotection,boardrepresentationofthesefundsareoftendominatedbytheinterestsoftradeunions.

Incertaincircumstances,member’sfundsarehelpingtosupportbackofficelegaloperationsoftradeunionsandNECAhasprovidedevidenceofthisattheColeRoyalCommissionandsubsequentGovernmentinquiries.Redundancyfundsshould only go to employees who have been made redundant.

NECAhasconsistentlyarguedthatredundancyfundsshouldbeindependentlymanagedatarm’slengthfromtradeunionsandemployergroupstoensurebeneficiariesarereceivingthemaximumbenefitfromthefund.

Unfaircontractprotectionsshouldbeextendedtosmallbusinesses,similartotheprotectionsthatpresentlyexist forconsumers.

Industryredundancyfundboardmembershipsneedtobereformedsothatincomeprotectionforredundantworkersremainsthesolefocusofthefund.

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9. Workplace Health & SafetyBackgroundWorkplaceHealth&Safetyisafundamentaltenetoftheelectricalcontractingindustry.

SafetyintheworkplaceisapriorityforNECA,giventhenatureoftheworkcarriedoutbyelectricalindustryemployeeswhilstworkingontheconstruction,maintenanceorrepairofhomesandbuildings.

Thepotentialworkplacedangersforworkerswithintheindustryincludeexposuretoliveelectricity,loosefillorbondedasbestos,hazardssuchastripsandfallsandtheriskofusingofnon-compliantpartsorproducts.

NECAhasadvocatedforgreaterharmonisationofWorkplaceHealthandSafetylegislationacrossAustraliainordertoremoveconflictandduplicityoflegislationacrossstatejurisdictionstomakeiteasierforelectricalcontractingbusinessesto achieve compliance.

SafeWorkAustraliahasdevelopedaModelCodeofPractice,containingaModelWHSAct,supportedbymodelWHSregulations,codesofpracticeandotherrelevantguides.

At present, the Commonwealth, New South Wales, Queensland, South Australia, Tasmania, ACT and Northern Territory haveadoptedmostprovisionswithinthemodelWHSAct,whilstWesternAustraliaandVictoriahaverefusedtoadoptthe model act.


• Lackofharmonisationonpenalties

WhilstNECAissupportiveoftheModelWHSlawsthatimprovenationalWHSharmonisation,weremainconcernedabouttheinconsistenciesforconvictionsandpenaltiesacrosseachstatejurisdiction.

Amaximumfineforindividualsrangefromjust$60,000inTasmaniato$400,000inSouthAustralia.Forcorporations,Tasmaniahasthelowestmaximumfineof$180,000withNewSouthWalesthegreatestat$1,650,000.Prisontermsforserialandseriousoffenderscanbeenforcedineachstate,exceptforTasmania,howeverwithdifferingdegreesofseveritythatrangefromsixmonthsthroughtosevenyears.

Individual Maximum

Corporation Maximum

Prison term Maximum

New South Wales $165000 $1650000 5 years

Victoria $204156 $1020780 5 years

Queensland $150000 $750000 3 years

Western Australia $312500 $625000 2 years

South Australia $400000 $1200000 5 years

Tasmania $60000 $180000

Northern Territory $275000 $1375000 5 years

Australian Capital Territory $200000 $1000000 7years

Commonwealth $99000 $495000 6 months

Source: Workplace Relations Ministers’ Council 5th edition, 2008

NECAcallsforgreaterharmonisationofjurisdictionalpenaltiesforbreachesandfailurestocomplywithWorkplaceHealthandSafetylegislation.

• Worker’sCompensationaccessforinjuriesduringoffsiteworkbreaksorwhereanemployeeengagesinserious and wilful misconduct

NECAbelievesthatamoreequitablebalanceisrequiredbetweentheobligationsofanemployertoprovideasafeworkplaceenvironmentandthecostofworker’scompensationtotheemployer.ThisisparticularlysoforsmallandmediumenterprisesthatemploythebulkofelectriciansandapprenticeswithinAustralia’selectricalcontractingindustry.

Weagreewithwidercommunityexpectationsthatworker’scompensationbenefitsshouldonlybeavailablewithrespectofworkcontributedinjuriesandnotthosearisingfromtheseriousandwilfulmisconductofanemployeeoroffsiterecessbreaksthatareoutsidethecontroloftheemployer.

In2004,AProductivityCommissionInquiryacceptedthattheemployer’sabilitytoexertcontroloverworkplacerecessbreaksandsocialactivitieswasarelevantconsiderationandthat“coverageforrecessbreaksandwork-relatedeventstoberestricted,onthebasisoflackofemployercontrol,tothoseatworkplacesandatemployersanctionedevents.”

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NECAsubmittedcommentsinsupportofproposedamendmentstotheSafety,RehabilitationandCompensationLegislationAmendmentBill2014thatiscurrentlybeforeaSenateInquiry.Webelievetheseamendmentswillhelptoaddresssomeofthefundamentalinequitiesthatareinherentinthecurrentlegislation.

NECAarguesthatWorkers’Compensationaccessforinjuriessustainedduringoffsiteworkbreaksorwhenanemployeeengagesinwilfulorseriousmisconductshouldberemoved.

• AsbestosRegister

NECAisconcernedwiththeAustralianCapitalTerritoryGovernment’sdecisionnottodisclosealistofhomesthatcontainedpotentiallyhazardousloosefillasbestosinsulation,despitetheexistenceofaknownlistofhomesinsulatedunderaGovernmentprogram.

NECAarguesthataregisterhighlightingaffectedproperties,suchasthoseassociatedwiththeMrFluffyhomeinsulationschemeintheACTthroughoutthe1970’s,allowselectricalindustryemployeestosafelybeawareoftheaffectedpropertiespriortocommencingworkandactsasasafetyandawarenessguideforfuturehomepurchases.

NECAcallsuponStateandTerritoryGovernmentstoestablisharegisterofknownhouseholdsthatareinstalledwithpotentiallydeadlyhomeinsulationproducts.Thisactionprotectselectricalindustryemployeesandprovidesupfrontinformationforthesecurityoffuturehomepurchases.


• CampaignandlobbytheVictorianandWesternAustralianGovernmentstointegratewithanationalharmonisedWH&SmodelandlobbytheFederalGovernmenttotaketheissueofaharmonisedpenaltyregimeforregulatorybreachestoafuturemeetingoftheCouncilfortheAustralianFederation.

• Highlighttheinequityofworkerscompensationclaimpaymentsforinjuriesoccurredonoff-siteworkbreaksandwhereseriousorwilfulemployeemisconductisinvolved.

• ContinuetolobbytheACTGovernmenttoestablisharegisterofknown,affectedhouseholdspotentiallyaffectedbyloosefillasbestos.EncourageotherStateandTerritoryGovernmentstoestablishasimilarregister.

• Callformandatorypropertysafetyinspectionsatthepointofsaletoensuregreaterprotectionforelectricianstocarryoutfutureworks.

10. Product Quality AssuranceBackgroundThetradeincounterfeitproductsthatfailtoconformtoAustralianStandardsposesathreattotheviabilityofAustralia’selectrical contracting industry.

Theinstallationofunsafe,non-compliantelectricalequipmentcanbecostlyforbusinessandconsumersandpresentstheriskofelectricalfireandshocks,propertydamageandincreasethepotentiallegalliabilitiesforelectricalcontractors.Thisultimatelyleadstoadevaluingofindustrystandardsandalossofprofessionalreputation.

NECAstronglysupportsproductqualityandsafetyinitiativessuchastheDoesItComply?(toAustralianStandards)campaign, developed in partnership with Voltimum and Standards Australia that seeks to raise consumer and industry awarenessofthedangersofproductorpartusethatfailstocomplywithAustralianStandards.

TheElectricalEquipmentSafetySystem(EESS)wasfirstestablishedinQueenslandin2013andiscurrentlyrecognisedbyTasmaniaandWesternAustralia.Thelegislationrequiresallresponsiblesupplierssellinggoodsintoparticipatingjurisdictionstoberegisteredonanationaldatabase,whichmustberenewedannuallywithanannualregistrationfeepaidby responsible suppliers.

ThenationaldatabaseisthekeyfeatureoftheEESS.ItrecordstheregistrationdetailsofresponsiblesuppliersofelectricalequipmentinAustraliaandNewZealand.ThisallowselectricalequipmenttobeeasilytracedtothesupplieranditslegalsupplyinAustraliaandNewZealandtobeverified.

Key Issues & Recommendations

Akeyconcernfortheindustryisthelackofenforcementofthosedistributingnon-compliantproductsandthelackofproductbatchtestingofproductstoensurequalityandmeasurementoftheperformancetoAustralianstandards.

Whilstexamplesofprosecutionexist,suchasthoseinvolvedwiththesaleanddistributionofcounterfeitHPMproductsinNewSouthWales,concernsremainwithintheindustrythatmoreshouldbedonetoprotecttheindustry’sprofessionalreputation.

FurtherconcernshavebeenraisedregardingtheviabilityofERAC,themanageroftheEESSdatabase.WhilsttheseconcernshavelargelybeenraisedbyFairTradingNSW,NECAbelievesthatthemanagementoftheEESSdatabaserequiresadditionalfocusandresourcesandacasecanbemadeforanindustrybasedsolution.WhilsttheEESSdatabaseismadeupofregulatoryauthorityrepresentativesfromacrossAustraliaandNewZealand,thelackofmandatoryparticipationfromeachstateandterritorynecessitatesurgentreform.

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RecentrecallsofelectricalequipmentsuchasInfinityCableandAvancoDCIsolatorsusedinsolarinstallationshavehighlightedthedangeroffireandshocktoconsumersfromnon-compliantgoodsimportedbycompanieswithnorecallinsurancewhosubsequentlygointoliquidation.

Thisresultsinelectricalcontractorsastheinstallersoftheequipmentbeingunfairlyheldresponsiblebyconsumersforcostly replacements with no recourse to the importer who introduced the risk into the country. The inevitable insolvencies ofinstallerswillcreatedisruptionintheindustryandseethehazardousequipmenthavingtobereplacedbythehomeowner or not replaced at all, creating a permanent hazard in the community.

NECAsupportstheextensionoftheERACdatabasetoincludemandatorydeclarationsbysuppliersastowhethertheyholdrecallinsurancetocoveroffthesesituationssothatcontractorscanchooseresponsiblesuppliersofelectricalequipmentinthisregard.

NECAstronglycallsforthestampingoutofnon-compliantelectricalpartsandproductsalesthatfailtomeetAustralianStandards.Theprofessionalreputationofourindustryiscompromisedthroughtheweakeningofsafetystandards,propertydamageandthepotentialendangermentofhumanlifewhennon-compliantproductsremainonsale.

NECAcallsupontheFederalGovernmenttoincreaseitscommitmentandresourcestoensurealargernumberofproductrandombatchtestsarecarriedout.Thisactionwouldassistwiththedeliveryofhigherqualityelectricalproductsforconsumers.

NECAbelievesthatthemanagementoftheEESSrequiresadditionalfocusandresources.Webelievethatthisadditionalfocuscouldbestbedeliveredthroughanindustrybasedsolutionthatwouldprovideinformationandaccesstoallindustry stakeholders.


• NECA to develop stronger partnerships with NECA members, State and Territory regulators and Standards Australia tofurtherdevelopthenumberandrecognitionofrandombatchtestingofproducts.

• NECA,asthepeakindustrybodyfortheelectricalandcommunicationscontractingindustry,proposestotakeoverthemanagementandadministrationoftheEESSdatabasefromERAC.Thismovewouldprovideamorefocused,industryledsolutionthatwouldprovideinformationandaccesstoallrelevantstakeholders,regulatorsandauthorities.

11. Key Recommendations & SummaryNational Licensing and enhanced labour mobility1. NECAsupportsthecreationofasingle,nationallicencingschemeforbothelectriciansandelectricalcontractors.

However,itsimplementationmustnotdilutesafetystandardsandtechnicalexpertise.

2. NECAsupportsmutualrecognitionlicensingreformacrossAustraliaandencouragesallStatesandTerritorytoadoptthesereformsasamatterofurgency.

EnergyEfficiency

3. NECAbelievesthatfutureelectricitypricerisesarethenewnormalandthatthebulkofconsumersandindustryaregenuinelyinterestedaboutamoresustainableenvironmentalfuture.

4. NECAbelievesfurtheropportunitiesexisttoeducateconsumersabouttheimportanceofcleanenergy.Consumersare keen to be seen as environmental citizens and are prepared to participate in pilot schemes and trial programs thatseektomakegreateruseofrenewableenergyproducts.

5. Giventhesubstantialleadtimeandsignificantcapitalinvestmentrequiredtodevelopcleanenergygenerationprojects,NECAbelievesthatgreatercertaintyisrequiredtonotonlyencouragelongterminvestmentinthesectorbutalsoforconsumerstobenefitfrommorestableenergypricing.

6. NECAurgesurgetheFederalGovernmenttoreviewtheNECFlegislationandtohavethematterdiscussedatafuturemeetingoftheCouncilfortheAustralianFederation.

Vocational Education and Training

7. ItisimperativethatthepeaknationalindustrybodyrepresentingemployerstakesimmediateresponsibilityfortheCommunity and Education Engagement Partnerships program and other relevant programs to assist industry to communicatewiththeplethoraofstakeholdersatregional,state/territoryandnationallevels.

8. Thereisaneedtodeveloppracticalmathslessonsinschoolsfortrade-trainingaspirants,withinvolvementofrelevantpartnersintheeducationsystems(includingtheAustralianAssociationofMathsTeachers).

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9. Considerationshouldbegiventoacoresetofcompetenciesthatreflectenvironmentalrequirementsfortheindustryandconsumers.GovernmentshouldcontinuetoprovidefinancialassistancetoemployersthroughoutAustraliafortheir people to undertake the EcoSmart Electricians program and maximise skills in this area.

10. Providers should reintroduce night schools to ease the pressure on the workplace and create additional opportunitiesfortraineestoformalisetheirskills.

11. Employeeswhoundertakeandcompleteadditionaltrainingathigherlevels(post-trade)shouldreceiveadequatetaxbenefitsasanincentivetocompletequalifications.

12. Grouptrainingorganisationsthatexperiencedowntimefortheirapprenticesshoulddevelopshorttermemploymentopportunitiesthatmaybeconsideredforrelevantstateandterritorygovernmentassistance.

13. NECAwelcomesfurtheraspectsoftheMinister’sreformstodriveimprovementintrainingoutcomesacrossthesector.ThisincludesimprovingeducationandsupporttoenablepoorlyperformingRTOstoimproveandmeetstandards and a sharper regulatory process to manage rogue operators.

Small Business

14. NECAbelievesthatthecompulsorysuperannuationcontributionof12%isunsustainableandcallsforthisfiguretobe capped at 10% in the long term.

15. NECAsupportstheintroductionofsunsetprovisionsforanynewbusinessrelatedlegislation.

16. NECAencouragesthesettingofguidanceandafuturestrategytoimplementthekeyrecommendationoftheHenryReview to reduce the company rate to 25%.

17.NECAcallsforanationaldiscussiontosetinplaceatimetabletoharmonisepayrolltaxregimesandalongtermplanforitseventualphasingout.

18. NECAcallsfortheharmonisationofthecreditorlineprocessacrossAustraliasothatelectricalcontractorsarenotdisadvantagedfromthecollapseofaconstructioncompany.

19. NECAarguesthatkeyreportingtimeframessuchasBASandPAYGtax,FBT,WGEAcomplianceandothersshouldbereviewedandbemorecloselyalignedtoreduceadministrativeburdenstoallowbusinesstofocusupontheiroperationsandnotonGovernmentpaperwork.

Infrastructure Budget

20. NECAsupportstheintentofthe2014/15FederalBudgetthatsetsinfrastructuredeliveryasakeyinvestmenttoboostingeconomicgrowthby1%ofGrossDomesticProduct,boostingtheconstructionsectorwhilstattemptingtooffsettheslowdownintheminingsector.

21. NECAsupportstheestablishmentofanassetrecyclingfund,createdfromthesaleofFederalGovernmententerprisesandotherfundswithadditionalincentivesforStateandTerritoryGovernmentstopaydowngovernmentdebt,throughtheprivatisationofnon-essentialassetsthatwouldleadtofurtherinfrastructureinvestment.

Workplace Relations

22. NECAbelievesthatmutuallybeneficialcontractarrangementswithanin-builtsafetynetshouldbereachedbetweenemployees and the employer.

23. Unfaircontractprotectionsshouldbeextendedtosmallbusinesses,similartotheprotectionsthatpresentlyexistforconsumers.

24. Industryredundancyfundboardmembershipsneedtobereformedsothatincomeprotectionforredundantworkersremainsthesolefocusofthefund.

Workplace Health & Safety

25. NECAcallsforgreaterharmonisationofjurisdictionalpenaltiesforbreachesandfailuretocomplywithWorkplaceHealthandSafetylegislation.

26. NECAarguesthatWorkers’Compensationaccessforinjuriessustainedduringoffsiteworkbreaksorwhenanemployeeengagesinwilfulorseriousmisconductshouldberemoved.

27. NECAcallsuponStateandTerritoryGovernmentstoestablisharegisterofknownhouseholdsthatareinstalledwithpotentiallydeadlyhomeinsulationproducts.Thisactionprotectselectricalindustryemployeesandprovidesupfrontinformationforthesecurityoffuturehomepurchases.

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Product Quality Assurance

28. NECAstronglycallsforthestampingoutofnon-compliantelectricalpartsandproductsalesthatfailtomeetAustralianStandards.Theprofessionalreputationofourindustryiscompromisedthroughtheweakeningofsafetystandards,propertydamageandthepotentialendangermentofhumanlifewhennon-compliantproductsremain on sale.

29. NECAcallsupontheFederalGovernmenttoincreaseitscommitmentandresourcestoensurealargernumberofproductrandombatchtestsarecarriedout.Thisactionwouldassistwiththedeliveryofhigherqualityelectricalproductsforconsumers.

30. NECAbelievesthatthemanagementoftheEESSrequiresadditionalfocusandresources.Webelievethatthisadditionalfocuscouldbestbedeliveredthroughanindustrybasedsolutionthatwouldprovideinformationandaccess to all industry stakeholders.

12. References1. AverageContractorPrimaryBusiness–NECAMarketMonitor2013–Page5

2. SectorRevenueSource–NECAMarketMonitor2013–Page5

3. ElectricalIndustryBusinessSize–NECAMarketMonitor2013–Page6

4. BusinessHeadquartersandOperations–NECAMarketMonitor2013–Page6

5. ElectrotechnologyApprenticeshipCommencementandcompletiondata–NationalCentreforVocationalEducationResearchcommencementandcompletionprojectionsforapprentices2005-17–Page7

6. ElectricitySupplyIndustryWorkforceAgeRangeDistribution–E-OzEnergySkillsAustraliaEnvironmentalScan2014–Page7

7. Electricalcontractingindustry,BuildingandAirConditioninglicensesasatApril2009–NationalLicensingSystemforSpecifiedOccupations,DecisionRegulationImpactStatementApril2009–Page10

8. EnergySavingsScheme–www.ess.nsw.gov.au–Page14

9. NECAEcosmartElectricians–www.ecosmartelectricians.com.au–Page15

10. AssetRecyclingFund–www.budget.gov.au–Page28

11. WorkplaceRelationsMinistersCouncil5thEdition2008–Page35

Policy Statement 2015 - NECA · Policy Statement 2015 NECA NATIONAL Level 4, 30 Atchison Street St...

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