Steve knott amec conference slides june 2011
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Transcript of Steve knott amec conference slides june 2011
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Addressing the labour supply problem
AMEC Conference 2011
Steve Knott - Chief ExecutiveAustralian Mines & Metals Association (AMMA)
30 June 2011
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About AMMA
• Established in 1918
• Largest and most representative lobby group for the resource industry
• Membership includes coal, metalliferous, oil and gas, energy, construction and service providers
• Recognised as the peak employer organisation for the resource industry and
• Regularly features in the ‘IR power and influences’ review
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Current and future resource projects and investment
• Oct 2010 - 72 resource projects at advanced or committed stage worth $133 billion
• April 2011 – 94 resource projects at advanced or committed stage worth $173 billion
• The resource industry accounted for 9% of GDP in 2009-10 ($102.6 billion)
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2005 2011 2015
Direct employment 107,500 205,800250,000
Indirect employment 320,000 620,000750,000
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Mining industry employment growth
Source: ABS Labour force, February 2011 and NRSET Resourcing the Future Report
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-20
-15
-10
-5
0
5
10
15
20
25
MiningManufacturingConstructionAgriculture
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Source: ABS Labour Force Stats, February Quarters 2001 - 2011
10-year employment growth by industry
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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% employment
growth
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Source: Job Vacancies, Australia, February 2011, 30 March 2011, Catalogue no 6354.0. ABS
2006 Nov
2007 Feb
2007 May
2007 Aug
2007 Nov
2008 Feb
2008 May
2009 Nov
2010 Feb
2010 May
2010 Aug
2010 Nov
2011 Feb
0
0.5
1
1.5
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2.5
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3.5
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4.5
Mining industry % vacancy rate pre and post-GFC
Vacancy rate
Pre-GFC Post-GFC
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%
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Skilled vacancies in mining v other industries – February 2011
Vacancies Total workforce %
vacancy
Mining 8,100 205,800 3.9%
Construction 20,1001.030 million 1.9%
Manufacturing 12,100998,400 1.2%
Source: Job Vacancies, Australia, February 2011, 30 March 2011, Catalogue no 6354.0. ABS 7
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Demand for mining engineers
By 2015
New engineering jobs 1,600+Replacement jobs due to attrition 1,300 =
2,900-New engineering graduates 1,200Shortfall 1,700
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Source: Skill Shortages Australia, June 2010, Australian Government, DEEWR 9
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Demand for tradespeople
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NRSET recommendations
• Promoting workforce planning and sharing information• Increasing the number of trade professionals• Graduating more engineers and geoscientists• Meeting temporary skills shortages with temporary
migration• Strengthening workforce participation• Forging stronger ties between industry and education and• Addressing the need for affordable housing and community
infrastructure
Source: NRSET Resourcing the Future Report
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Trade and non-trade apprenticeship commencements – all industries
1989175,000
1993111,200
2001224,800
2008286,900
2009272,500
2010324,600
Source: NCVER Apprentices and Trainees 2011: Early Trend Estimates March quarter
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Completions
Commencements
In Training
Source: NCVER Data *'Minerals’ is based on ANZSIC 2006, including mining division (ex oil and gas) plus basic ferrous and non-ferrous manufacturing.
Apprenticeship commencements v completions
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2001 2005 2009 2010 20110
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10
15
20
25
Mining (all)Exploration and other mining support services
Employment of women by mining industry sector
Women as a % of total
workforce
Source: ABS Labour Force, February quarters 2001 to 2011
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457 visa facts
• Two-thirds of visa entrants for the current migration
program are skilled migrants
• More than 50% of 457 visa entrants achieve permanent
residency, most of them under employer sponsored
arrangements
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Projects to be covered by EMAs
• 38 projects have $2 billion or more in capital expenditure• But just 13 are identified as having a peak workforce of
1,500 or more• A further 42 projects have $1 billion or more in capex but
only one has peak workforce of 1,500• If peak workforce threshold lowered to 500, an extra 15
projects brought onboard on top of 13 to 20 already covered
Source: ABARES – Tabular list for ‘Minerals & Energy: Major Development Projects – April 2011 listing.’ 17
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Labor’s broken IR promises
• Right of entry won’t change• Fair Work Australia appointments won’t favour one side or
another• A tough cop will remain on the construction beat• Common law contracts will offer the same flexibility as
AWAs• Majority support of workers will be required to force
enterprise bargaining and strike action• Freedom of association will be upheld
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AMMA Workplace Relations Research Project
• Report on third survey of impacts of Fair Work Act released today.
• Findings include:– Employer satisfaction with the new IR laws continues to
decline– Down by 15% on the first survey conducted in April
2010– Nearly 75% of employers are spending more time on IR
transactions– Employers’ view is that labour productivity has declined
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