Deloitte Access Economics Skill shortages in the resources sector


Western Australian Department of Mines and Petroleum - Prospect



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Western Australian Department of Mines and Petroleum - Prospect


Report name:

Developing a Comprehensive Approach to Minerals Industry Education

Date:

2009

Author:

Ray Tolhurst

Publisher/Industry/Government affiliation:

University of Wollongong

Subcontractor involved:

-

Primary/Secondary research

Secondary

Key sectors

Mining across Australia

The Prospect is an industry magazine with a variety of articles giving an overview of the WA resources sector, including sector growth, major projects, events and human interest stories.

Over the decade to 2010, the value of private capital investment in the State's resources sector totalled A$109 billion, and the sector's annual output trebled to more than A$70 billion. Employment in mining and energy also trebled and the construction workforce more than doubled..

One article, BHP Billiton Investing in WA's Future Workforce, describes the strategies BHP Billiton (BHPB) has in place to encourage Indigenous employment to help counter skills shortages in the region. Currently around 900 Indigenous people are employed at BHPB's operations in the Pilbara, including those employed by contractors who provide services to BHPB. BHPB currently has 40 Indigenous students on its BHP Billiton Indigenous Scholarships, with the aim of 80 students participating in the program by 2012. It directly employs 60 apprentices and has partnered with other organisations across the region to encourage more Indigenous youth to take up apprenticeships. Finally, in conjunction with Ngarda Civil and Mining, BHP Billiton Iron Ore launched the Purarrka Indigenous Mining Academy (PIMA) in October 2008 to provide sustainable training and development for communities.

    1. Western Australian Department of Training and Workforce Development


Report name:

Skilling WA – a workforce development plan for Western Australia

Date:

2010

Author:

-

Publisher/Industry/Government affiliation:

Western Australian Department of Training & Workforce Development

Subcontractor involved:

-

Primary/Secondary research

Secondary

Key sectors

Western Australian labour force

The report analyses the growth in labour demand and the reasons behind it. It also sets out strategic priorities to respond to the increased demand for labour.

Between 2010 and 2017, Access Economics and Monash University forecast that employment in WA will grow between 222,000 and 239,000 jobs respectively. The majority of new jobs are expected to be in the professional, technical trades and management professions with 16.7. per cent of jobs in the mining and construction Sector. An additional 186,000 workers are forecast to retire, leading to a net estimated 408,000 to 425,000 new workers required in WA by 2017.

Analysis by the Department of Training and Workforce Development indicates that approximately 275,000 workers will be provided through natural population and migration, leading to an Overall shortage of between 133,000 to 150,000 workers by 2017 (see Figure 2.12.1).



Figure 2.12.1: Labour supply and demand (2002-2020)

According to modelling done by Monash University, from 2010 to 2017, employment in mining is expected to grow by another 18,200 jobs, the sixth biggest growth sector during this period. The industry is expected to grow by 26.4 per cent.

The most substantial increases in new jobs are forecast to be in the following areas in Table 2.12.1.
Table 2.12.1: Increases in new jobs

Occupation type

Number of persons required

Office and practice managers

7,100

Store persons

6,400

Construction and mining labourers

6,400

Engineering professionals

6,300

Business administration managers

5,900

Fabrication engineering trades workers

5,900

Chief executives,' general managers and legislators

5,300

Building and engineering technicians

5,300

Through the last resources boom of 2004-08 WA experienced the negative effects of skills shortages in the 'crowding out' effect; workers were attracted to higher paying industries (such as mining and construction) away from lower paying industries such as health and human services.

Pit Crew Management and Consulting has forecasted that the demand for construction labour in WA's major projects will increase by 73 per cent by January 2013, leading to shortages across occupations in the construction industry.

The following occupations in Table 2.12.2 have been classified as top priority in the State priority occupation list, the highest of three categories.

Table 2.12.2: Top priority occupations (6-digit ANZSCO codes in brackets)

Construction project manager with experience (133111)

Mining engineer (experienced mining/process engineer) (233611)

Geologist (geoscientist/geophysicists)
(234411)

Petroleum engineer (reservoir engineer/petrophysicist) (233612)

Geotechnical engineer (civil engineering professionals) (233212)

Surveying or spatial science technician (surveyor/cartographic assistant) (312116)

The occupations listed are characterized by a combination of one or more of the following factors: very large levels of employment, high forecast growth and evident wage pressures, high levels of skill, longer education or training lead times, clear education and training pathways and/or a clear and evident skills shortage.

    1. Women in Mining Network


Report name:

Gender Pay Equity and Work Practices in the Minerals & Metallurgy Sector

Date:

November 2010

Author:

-

Publisher/Industry/Government affiliation:

Australasian Institute of Mining & Metallurgy (AusIMM); Women in Mining Network (WIMNet)

Subcontractor involved:

-

Primary/Secondary research

Secondary

Key sectors

Minerals & Metallurgy Sector

This report provides an analysis of results from a Gender Pay Equity and Work Practices Survey, jointly conducted in 2008 by AuslMM and WIMNet. The survey was conducted to shed light on the reasons for a gender pay gap in the mining industry, after a 2008 AuslMM survey revealed a gender pay gap beginning at 8 per cent at graduate level, and reaching 32.3 per cent at senior management level.

A total of 694 survey responses were received from AuslMM and WlMNet members under the key themes of pay equity, organisational gender diversity strategies and initiatives, and participation of carers, within the minerals sector. Of the survey respondents:



  • 67 per cent were female

  • 70 per cent worked in mining companies

  • 25 per cent identified as Geologist/Geoscientist, 16 per cent as Mining Engineer, 16 per cent as Management, 8 percent as Metallurgist, 6 per cent as HR Professional, and 6 per cent Environmental Engineer/Scientist.
Perceptions of pay equity:

  • Overall, the majority of male and female respondents viewed that they were being paid about the same as others performing a comparable role, although responses did vary by organisation and occupational role and females were more likely to believe that they were paid less.

  • Drivers of the gender pay :gap were commonly perceived to be issues related to workplace culture, such as historical attitudes, and a male dominated culture or leadership.

  • Those who felt they were paid less cited reasons such as gender stereotypes and employer perceptions of women's capabilities.

  • Another factor cited was a lack of negotiation power and/or knowledge, and failure to negotiate pay.
Perceptions of gender diversity

  • Respondents perceived that organisations are generally supportive of, and promote, gender diversity and professional development opportunities for female employees.

  • Most respondents were not aware of supportive measures in their organisation. Those who were aware commonly identified flexible work practices. Other key measures suggested for introduction were cultural change and attraction and recruitment activities to increase gender diversity.
Care giver responsibilities

  • Female respondents were more likely than males to not have caring responsibilities but those who did were more likely to identify as the primary carer. Female respondents were also more likely to alter their work practices and career progression due to their caring responsibilities.

  • Survey respondents strongly indicated that implementation of financial assistance and supportive workplace provisions for carers would have some impact on gender equity.

  • Most respondents (70 per cent) believed that prospects for professional development and promotion were poorer for people with caring responsibilities than those without.



Appendix A: Bibliography


Primary Sources

Birrell, B. & Healy, E. (2010), 'The Mineral Boom and Immigration Policy: Skills Australia Debunks the Myths', People and Place, vol. 18, no. 2, pp. 39-50.

Briggs, G. (2010), The impact of skilled labour shortages on the Pilbara region, Future Directions International, 17 September. Energy Skills Queensland (2009), Energy Industry Skills Plan: 2009-2012, Brisbane, September.

Energy Skills Queensland (2009), Part A - Workforce Planning Report to inform the Workforce & Competency Development Strategy Plan for the Queensland Coal Seam Gas / Liquefied National Gas Industry, Brisbane, September.

Energy Skills Queensland (2009), Part B - Addendum Labour Market Analysis - Demand and Supply, Brisbane, September. Energy Skills Queensland (2009), Part C -: Workforce & Competency Development Strategy Plan, Brisbane, September.

Grad, P. (2010), 'Australian Mining Industry's Looming Labor Shortage', Engineering and Mining Journal, vol. 212, no. 6, pp. 76.

Junankar, P.N. (2009), 'Was there a Skills Shortage in Australia?', Institute for the Study of Labour, Discussion Paper 4651, Bonn, December.

Mining Industry Skills Centre Inc. (2009), Resources Industry Heartbeat Project Report, Brisbane.

Molloy, S. & Tan, Y. (2008), The Labour Force Outlook in the Australian Minerals Sector: 2008 to 2020', Minerals Council of Australia, June.

National Resources Sector Employment Taskforce (2010), Resourcing the Future, Canberra, July.

Piper, D. (2010), 'Put people direct, say recruitment', Australia's Paydirt, vol. 1, issue 2, pp. 55.

Resource Engineering Skills Alliance (2011), Resources Industry Workforce Action Plan: South Australia 2010­2014.

Spoehr, J. & Molloy, S. (2011), 'Mining employment in SA – exploration and exports boom but what about jobs?’, Australian Institute for Social Research, Adelaide, March.

Technology and Industry Advisory Council (2010), Managing Western Australia Economic Expansion: The Need for People and Skills, East Perth, March.



Secondary Sources

Australasian Institute of Metals & Mining and Women in Mining Network (2009), Gender Pay Equity and Work Practices in the Minerals & Metallurgy Sector, November.

Australian Industry Group (2011), Submission on Immigration Program Planning Levels 2011-12, North Sydney, 5 January.

Australian Industry Group & Deloitte (2009), National CEO Survey - Skilling Business in Tough Times, North Sydney, October.

Australian Petroleum Production & Exploration Association (2010), State of the industry 2010, Canberra.

Chamber of commerce and Industry of Western Australia (2010), Building Western Australia's Workforce for Tomorrow - Discussion Paper, June.

Chamber of Minerals and Energy of Western Australia (2011), State Growth Outlook, Perth.

ElectroComms and Energy Utilities Industry Skills council (2011), 2011 Environmental Scan, 31 March.

Office of Economic and Statistical Research (2010), Queensland Employment Projections by Industry and Statistical Division - 2009-10 to 2011-12, Queensland Treasury, Brisbane, August.

Pearce, A., Flavell, K., & Dao-Cheng, N. (2010), Scoping our future: Addressing Australia's engineering skills shortage, Australian National Engineering Taskforce, October.

SkillsDMC (2011), Environmental Scan 2011, Sydney.

Tolhurst, R. (2009), ‘Developing a Comprehensive Approach to Minerals Industry Education’, Presented at the 20th Australasian Association for Engineering Education Conference, University of Adelaide, December.

Western Australian Department of Mines and Petroleum (2011), Prospect April 2011, April, Perth.

Western Australian Department of Training and Workforce Development (2010), Skilling WA - A workforce development plan for Western Australia, East Perth.



Supplementary reports not summarised

AAP General News Wire (2011), 'WA union boss calls for migration boost;, Sydney, 14 April.

Department of Education, Employment and Workplace Relations (2010), Skill Shortage List, Australia, www.deewr.gov.au/skillshortages, Accessed 28 April 2011.

Dymock, D. & Billett, S. (2010), ‘Skilling Australians: Lessons from World War II national workforce development programs', Australian Journal of Adult Learning, vol. 50, no. 3, pp. 468-496.

Engineers Australia (2009), Submission to the Victorian Education and Training committee: Inquiry into Skills Shortages in the Rail Industry, North Melbourne, May.

Engineers Australia (2010), The Engineering profession in Australia - A profile from the 2006 Population Census, September

Lampard, M., et al. (2010), Minerals and Energy, Major Development projects - April 2010 listing, ABARE, Canberra, May.

Phillips, K. (2008), 'How the government and unions help maintain Australia's skills shortage', Institute of Public Affairs Review, March, pp. 16-19.

Piper, D. (2010), 'Hire more women, industry urged', Australia's Paydirt, vol. 1, issue 2, pp. 54.

Shreeve, R. (2010), The Workforce of the Future', Australian TAFE Teacher, vol.44, no. 1, Autumn, pp 13-15.

Tarrant, D. (2009), 'A shared sacrifice', In the Black, September, file:///H:/CLIENTS/Skills%20Australia/2%20­%20Background%20research/Research%20reports/Secondary%20Sources/Tarrant_A%20shared%20sacrifice 20 09.htm, Accessed 28 April 2011.

Watson, I. (2009), Skills in Use - Labour Market and Workplace Trends in Skills Usage in Australia, New South Wales Department of Education and Training, Sydney.

Limitation of our Work


General use restriction

This report is prepared solely for the use of Skills Australia. This report is not intended to and should not be used or relied upon by anyone else and we accept no duty of care to, any other person or entity. The report has been prepared for the purpose of Skills Australia. You should not refer to or use our name or the advice for any other purpose.


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© 2011 Deloitte Access Economics Pty Ltd


1 Access Economics, Economic modelling of skills demand, 2009

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