Geoff Gwilym

VICTORIA’S automotive chamber, which is pushing hard for a better deal for the industry ahead of the federal election, has released data claiming Australia has “the biggest skill shortage in automotive industry history”.

Victorian Automobile Chamber of Commerce (VACC) CEO Geoff Gwilym said unemployment was now about five per cent and yet the national automotive sector needs another 35,000 skilled workers.

In an apolitical statement, he said the next federal government needs to introduce an automotive industry-led skills advisory council which would put the sector at the heart of Vocational Education and Training (VET) program development.

The VACC, which this month released its election manifesto outlining tasks the next federal government must examine to preserve the automotive industry and its employees, said skills shortages were affecting almost half of the industry.

Mr Gwilym said this limited business investment, employment, planning and growth.

“It’s a crucial time for the industry and an obvious opportunity for the unemployed,” he said. “Industry knows that unemployment rates and the automotive skills shortage are both complex issues.

“We are not saying that this is a kill-two-birds-with-one-stone-type scenario – but it could certainly be a step in the right direction.”

Mr Gwilym said the problem with skills shortage in the auto industry was traced back to at least 1960 when the then president of the VACC reported that it was difficult to attract people to the trades.

“So we have historically never had enough labour to maintain the fleet of cars,” he said. “Yet the industry is sound and growing at the rate of 400,000 vehicles a year, all needing to be serviced and maintained.

“It assures people in the automotive trades that there is plenty of work and a reliable flow of customers.

“Compare this to the building industry that goes through peaks and troughs with the loss of businesses and jobs and the automotive industry looks pretty good. The vehicle fleet grows, it doesn’t shrink.”

Mr Gwilym said the automotive sector takes 10,000 apprentices a year and could take 15,000 “if we could find them”.

The VACC and the national automotive industry is calling for a skills framework that places industry at the centre of the national VET system.

It said this framework should include a skills advisory council with the commensurate knowledge, affinity and understanding of the industry needed to inform the development of VET programs.

“It is essential the Technical and Further Education (TAFE) sector actively engages with industry,” Mr Gwilym said. “TAFE and industry engagement was notably higher two decades ago, but has been in decline ever since.

“Industry argues that TAFE institutions should have key performance indicators associated with their level of engagement with industry.”

The VACC said that to combat industry skill shortages and prepare for the jobs of the future, it wanted:

• Continued promotion of automotive apprenticeships to employers, job seekers, parents and students
• Improved support measures and incentives for employers to hire and retain automotive apprentices, including those from diverse and non-traditional backgrounds
• Changes to the country’s migration program to improve its accessibility and responsiveness to better meet skill and labour needs in the automotive industry.

By Neil Dowling