Implementation Plan SA Productivity Places Program – Existing Workers Context and program model
To assist with addressing skill shortages that would otherwise be a critical stumbling block to realising South Australia’s economic potential, to increase the general rate of workforce participation and employment, and to meet social inclusion objectives in the state, the South Australian Government has committed to a partnership with the Commonwealth Government to implement the SA Productivity Places Existing Workers Program (SAPPEWP). Under this agreement and building on the PPP Existing Workers pilot program model that commenced in September 2008, the South Australian Government will be allocating training places funded nationally under the SAPPEWP to workforce development broker proponents that can demonstrate an ability to:
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Target training to create upskilling opportunities for existing workers in high skill demand areas
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Align delivered training with own or existing educational, vocational and social support programs to facilitate improved learning and employment outcomes;
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Align delivered training with needs of employers in SA industry, including those addressing structural adjustment issues.
This document sets out the framework and arrangements that the South Australian Government proposes are used to implement the Productivity Places Program for Existing Workers in South Australia for the period July 2009 – June 2012.
The SAPPEWP will utilise an application-based model that approaches the market to submit proposals indicating allocation of training places that meets the objectives described above. It is expected that proposals will come from Registered Training Organisations (private and public), as well as “workforce development brokers” such as Industry Skills Boards (SA) and Industry Skills Councils (national), industry associations, other government agencies and programs, employers, enterprises, and employer and employee organisations..
As a result of a successful proposal an RTO will be allocated a specified number of places to deliver to existing workers identified in the proposal, for particular qualifications and at specified AQF levels based upon the proposal assessed by the SAPPEWP, and within the scope of the agreed skills in demand listings (see section 4 below). All applications will be assessed against criteria clearly outlined in the application guidelines.
It is expected that there will be at least two funding rounds each year.
Term of plan
These arrangements will commence on 1 January 2009 and expire on 30 June 2012. This plan may be revised through bilateral discussions between the Commonwealth and the South Australian Government.
Proposal Outputs and funding -
Additionality – ensure all outputs are in addition to current effort
South Australia will require all proponents to demonstrate (within their proposal) how the funding being requested for training places will be additional to what would otherwise have been delivered to the workforce(s) of the enterprise/industry submitting the bid.
Program proponents will demonstrate the achievement of these criteria by completing a dedicated section within the application form. The definition of “additionality” will be reinforced in the application guidelines.
In reporting on outcomes to the Commonwealth under this Agreement the South Australian Government will use comparative data such as commencements above the average of the Annual National Report data over three prior years (e.g. 2005, 2006, 2007) at best equivalent levels in scope for the Program.
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Program eligibility
The SAPPEWP will through its assessment process and through proponent participation requirements (for RTOs and other training brokers) ensure that access to the training available under this Agreement is limited to people aged 17 years or over who are:
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Australian citizens; or
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Permanent residents of Australia3; or
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Humanitarian refugees.
It will be the responsibility of participating RTOs to confirm eligibility of individual training participants through a confirmation system established by the SAPPEWP.
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Definition of an Existing Worker
The SAPPEWP will through its assessment process ensure that access to the training available under the Program is limited to those who meet the definition of an Existing Worker as outlined in the National Agreement, and those who meet the definition of “workers affected by structural adjustment” defined in section 4 below.
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Workers affected by structural adjustment
Workers who may have been retrenched, stood down or otherwise displaced by workplace disruption due to closure, redundancies or reduced scale of operations will also be eligible to apply for places under the Program. “Retrenched” workers are eligible for job seeker places under the SAPPJSP. “To be retrenched” and “transitional” workers are eligible for existing worker places under the SAPPEWP.
The relevant definitions are:
“Retrenched”. A worker who as a result of enterprise closure or planned downsizing is given notice of or is formally made redundant by their employer during the life of SAPPEWP. These workers are eligible for job seeker places under the SA Productivity Places Job Seekers Program (SAPPJSP). They are also eligible to apply for the 10 000 structural adjustment places that the Commonwealth Government will be managing as part of the response to the Global Financial Crisis. These places will be administered by the Commonwealth Government subject to the conditions outlined at www.productivityplaces.deewr.gov.au. The Commonwealth Government and the South Australian Government will work in partnership to provide access to these places to South Australian workers.
“To be retrenched”. A worker who as a result of enterprise closure or planned downsizing will become redundant and has been given a separation notice. These workers are eligible for existing worker places under the SAPPPEW. These workers are also eligible to apply for the 10 000 structural adjustment places that the Commonwealth Government will be managing as part of the response to the Global Financial Crisis. These places will be administered by the Commonwealth Government subject to the conditions outlined at www.productivityplaces.deewr.gov.au. The Commonwealth Government and the South Australian Government will work in partnership to provide access to these places to South Australian workers.
“Transitional”. A worker whose employer is facing closure or downsizing, and whose existing skills are required in another enterprise during the life of the SAPPEWP. These workers are eligible for existing worker places under the SAPPEWP. Such a worker could with appropriate training funded through the SAPPEWP be “transitioned” into the second enterprise, subject to a satisfactory proposal to the SA Productivity Places program – Existing workers (SAPPEWP).
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Targeting skills needs
Training places allocated under the SAPPEWP will be targeted in areas of current skills shortages and emerging skills needs agreed under the arrangements outlined in the ‘Management and Implementation’ section of this Agreement.
South Australia acknowledges the role of national Industry Skills Councils (ISCs) in helping to determine the occupations and qualifications in areas of skills shortage; and will use the ‘Priority Occupations’ list that has been developed between ISCs and the Commonwealth when implementing the SAPPEWP.
South Australia through consultation with industry through the State’s Training and Skills Commission, Industry Skills Boards and other relevant bodies identified a number of additional key occupations and qualifications in the Memorandum of Understanding for the Productivity Places Program for Existing Workers pilot that reflected key industry demands in the State. These additional South Australian occupations and qualifications will be combined with the Commonwealth and ISC ‘Priority Occupations’ list.
South Australia will refer to this combined list when assessing proposals. For the purposes of this Agreement qualifications from Certificate III up to Advanced Diploma level will be funded through the SAPPEWP.
Ultimately, South Australia will purchase qualifications where there is demonstrable industry demand and South Australian priorities will be met. Where this identifies priorities that are different to the priority list referred to above South Australia will provide the Commonwealth with information on the planned changes in funding priorities, the evidence to support the changes and enter into discussion to agree on the proposed changes. In particular the needs of workers displaced by retrenchments in the SA economy, and those from specific target social groups (e.g. indigenous, disability, women) will be given a high priority.
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Flexible delivery options
Through pre-proposal consultation and the proposal assessment process, training providers participating in the SAPPEWP will be encouraged to provide flexible delivery options (for example part-time outside business hours in workplaces and catering for people with a disability) to meet the diverse learning and cultural needs of participants in a range of geographical locations.
In addition proposals which can demonstrate an ability to provide or facilitate workplace experience as an integral part of the training will be prioritised.
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Numbers and costs of expected training outputs
SAPPEWP has set a target of 37,460 training places (translating to 24,262 complete qualifications) for the period January 2009 to June 2012, based on the number of training places agreed in the National Partnership Agreement.
578 places in addition to the 1880 allocated through the pilot PPP (Existing Workers) in 2008 are indicated in the Figures presented in the National Partnership Agreement. These will be allocated during the period January – June 09, to qualifications in the same proportion as in the initial pilot.
Qualifications delivered under the SAPPEWP will be funded at a rate guided by the benchmark rates outlined in the NPA (table 4, section 6.8.1), namely:
Funding Contribution for Each Qualification and Enrolment ($)
Qualification Level
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Total
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1st enrolment
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2nd enrolment
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3rd enrolment
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Advanced Diploma
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10 000
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3 000
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3 000
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4 000
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Diploma
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10 000
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3 000
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3 000
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4 000
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Certificate IV
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5 000
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2 500
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2 500
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–
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Certificate III
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5 000
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2 500
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2 500
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–
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Certificate II
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2 500
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1 250
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1 250
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–
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Funding Contribution for Total Course Cost ($)
Qualification Level
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2007-08
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2008-09
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2009-10
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2010-11
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2011-12
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Advanced Diploma
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10 000
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10 200
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10 445
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10 654
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10 856
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Diploma
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10 000
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10 200
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10 445
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10 654
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10 856
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Certificate IV
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5 000
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5 100
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5 222
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5 327
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5 428
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Certificate III
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5 000
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5 100
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5 222
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5 327
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5 428
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Certificate II
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2 500
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2 550
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2 611
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2 663
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2 714
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Funding for qualifications will be aggregated such that the average total cost per qualification delivered does not exceed the benchmark rate for that level of qualification.
The PP Existing Workers Program requires a 10% industry contribution. South Australia has determined that this contribution be a financial contribution. In kind contributions can be negotiated where this contribution is auditable and has a direct input into the funded training. This contribution will be evaluated by means of the SAPPEWP tender assessment process.
In the event the SAPPEWP experiences high completion rates for funded training and therefore has a greater number of course enrolments than expected, the funding and operational arrangements may be reviewed through the bi-lateral agreement under the terms of clauses 36 and 63 of the National Partnership Agreement on the Productivity Places Program.
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Cross-border financial arrangements
Interstate proponents can apply for places under the assessment process for the SAPPEWP. South Australia will consider applications for Places from a jurisdiction other than South Australia for interstate proponents on the proviso that the following criteria are met:
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Applications from interstate proponents are subject to the same assessment criteria developed by South Australia
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Applications are subject to places and funding availability
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Applications demonstrate value for money
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Proposals are capable of being funded within established funding parameters to achieve the required qualification outcomes
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For the purpose of additionality, Training Places allocated by South Australia and delivered by Interstate proponents in South Australia will be counted as being delivered in South Australia and not the jurisdiction tasked with allocating the Places
South Australia will:
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establish an Inter-Jurisdictional contract process with other states and territories to facilitate the purchase of training places in South Australia from interstate proponents; and
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put in place cross-border financial arrangements that facilitate the transfer of funding from the jurisdiction of the location of the existing workers participating in the SAPPEWP to the jurisdiction tasked with the allocation of Places.
Developing these cross jurisdictional relationships depends upon progress of Productivity Places Program implementation in other states. To date, there has been no opportunity for collaboration concerning these matters however South Australia will contact interstate counterparts to make arrangements as required during the early months of this implementation Plan.
South Australia acknowledges that national enterprises operating in more than one jurisdiction have the option of choosing one State or Territory to allocate Places on their behalf.
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Use of Program funds for training places
Through its administrative systems, the SAPPEWP will ensure funding is used for payments to Program proponents and Registered Training Organisations for the provision of training only and not for administration of this Agreement.
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