WorkReady: Hundreds of private training jobs at risk in reform

ALMOST a quarter of private training companies are preparing to shut down because of the State Government’s WorkReady policy and hundreds of jobs have already been lost, a survey has found.

Generic image of the Kimberley Training Institute. Photo: WA Education Department

• Opinion: WorkReady will cost jobs
• Welfare, business groups condemn training reform
• Federal funding for WorkReady withheld amid more conflict

ALMOST a quarter of private training companies are preparing to shut down in the coming year as a survey reveals hundreds of jobs have been lost just two months after the State Government’s WorkReady policy took effect.

The Australian Council for Private Education and Training canvassed organisations about the impact of WorkReady, which allocated 90 per cent of new government-subsidised training places to TAFE from July 1.

From 62 responses, it emerged that private providers have already let go 176 workers and plan to shed another 147 jobs in the next six months.

ACPET state executive officer Joy de Leo said the response rate to the survey was 27 per cent, meaning hundreds more workers had likely lost their jobs and the tally could exceed 1100 by early next year.

Dr de Leo said 23 per cent of respondents indicated they would have to close their doors.

The survey comes as dozens of providers prepare for a protest meeting today organised by federal Assistant Education and Training Minister Simon Birmingham and the Civil Contractors Federation.

Senator Birmingham said cutting training options was not the way to reduce SA’s unemployment rate, which is the highest in the country.

“Stripping back availability of high quality and cost-effective training is not going to do anything to help that,” he said.

“These were efficient businesses that are reducing staff numbers because they have had work snatched away from them.”

Berri-based River Murray Training director Barbara McPherson said she had let go two administration staff and would have to sack 12 workers by the end of the year and try to survive on a “skeleton” staff of two or three people.

“We might not be here by the end of the year. I’m getting to a tipping point,” she said.

“We don’t need lots more small businesses leaving (the training industry) because it starts to weaken the infrastructure of the regions.”

Skills Minister Gail Gago said the State Government’s priority was to help South Australians access training that led to employment, “not to subsidise the jobs of training providers”.

Ms Gago said $100 million was being spent on continuing students, and more than half of those were being trained by private providers.

She said there would be more places and funding for private trainers through the Jobs First part of WorkReady, which focused on training with guaranteed job outcomes.

“Private (trainers) are also accessing unlimited places through demand driven trades and the training guarantee for school students,” Ms Gago said.

Senator Birmingham said he was willing to consider requests from training companies to provide funding to help them survive.

“Insofar as we might be able to direct funds away from the SA Government to others in SA, I’m open to that,” he said.