Article by Damien Durston, Head of Sales ANZ, at Advanced

There are a multitude of challenges currently facing the manufacturing sector in Australia, not least managing an ageing skilled workforce operating on a 24/7 shift basis.

Manufacturing companies grapple with the complexities of a sprawling workforce, intricate shift schedules and the need for a delicate balance between productivity and worker wellness. The challenges of managing a manufacturing workforce are magnified as firms grow, as the requirement for a dynamic and engaged workforce intensifies.

Critical factors such as interpreting complex award systems, managing overtime rules, ensuring efficient onboarding, handling leave and accruals and maintaining accurate time and attendance records are essential for manufacturers. These elements are vital for Human Resources (HR) departments to master, so they can streamline operations and foster a happy workplace.

Replacing manual HR processes

The transition away from manual, paper-based workforce management practices has been a significant leap forward for the manufacturing sector. Embracing digital HR solutions not only enhances organisational efficiency but also unlocks a host of benefits such as time and cost savings and improved resource allocation. Yet, despite these advantages, some manufacturers retain outdated manual and paper-based processes that inhibit productivity and hamper operational agility.

Time and attendance systems for manufacturers

In the quest for improved efficiency, accurate management of shop floor activities and a strategic approach to workforce deployment are indispensable. This includes leveraging technological advancements like a Time and Attendance system tailored for diverse manufacturing environments. Such systems facilitate precise tracking of employee hours, streamline rostering and support dynamic shift patterns, thereby reducing administrative loads and enhancing payroll accuracy.

Avoiding wage theft

Misinterpretation of awards and improper management of overtime often leads to workforce payment errors, which we have seen result in significant legal and financial repercussions for large manufacturing firms since legislation was introduced. As part of the Closing Loopholes Bill to be introduced into Parliament in 2023 there will be a maximum possible penalty of ten years imprisonment and maximum fines of up to $7.8 million, or three times the amount that was underpaid if that amount exceeds the maximum fine. This means that the level of penalty can be proportionate to the extent of the underpayment.

The Australian Manufacturing Workers’ Union (AMWU), which represents over 70,000 manufacturing workers said many of them have experienced wage theft. The AMWU regularly identifies and pursues underpayments under the following categories:

1. Payment of an hourly rate or salary that does not reflect the applicable minimum wage rate under the relevant industrial instrument.
2. A failure to pay applicable overtime or penalty rates.
3. Failure to correctly accrue annual, sick and long service leave.
4. Failure to pay annual leave loading, particularly upon termination.
5. Late or no payment of superannuation.
6. Failure to pay for set up and pack up time.
7. Incorrect classification of workers under industrial instruments and incorrect progression through those classifications during an employee’s tenure.
8. Failure to pay allowances.
9. Payment of a salary or flat hourly rate that is said to incorporate applicable entitlements but fails to do so.

A Time and Attendance system can play a crucial role in mitigating these workforce underpayment risks by ensuring accurate recording of working hours and compliance with a complex set of labour laws and industry awards across Australia.

Auto-rostering in manufacturing

The manufacturing sector is characterised by its continuous operations and potential safety hazards, which necessitates vigilant monitoring of work hours to prevent employee fatigue, reduce error rates and minimise the risk of workplace incidents. Implementing an Auto Rostering system simplifies the creation of equitable and compliant shift schedules, taking into account worker preferences and requests, skill sets and legal obligations, thereby promoting a healthy work-life balance and preventing employee burnout.

The digitalisation of workforce management

Digital workforce management systems offer comprehensive visibility and control over employee data, from leave entitlements to accrual management, enhancing decision-making and operational transparency. This not only benefits HR departments by easing administrative burdens but also empowers manufacturing sector employees with real-time access to their entitlements, fostering a more engaged and happier workforce.

Conclusion

The manufacturing sector in Australia stands to gain immensely from the digital transformation of its workforce management practices because it remains extremely labour intensive. By adopting integrated digital solutions, manufacturers can achieve a harmonious balance between operational efficiency and employee satisfaction. This strategic approach to workforce management not only saves time and money but also cultivates a more dynamic and productive workforce, setting the foundation for sustained success in a highly competitive environment.

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Weld Australia has called for federal funding to establish a national network of Indigenous Welding Schools to unlock more skilled jobs for Indigenous Australians. 

The announcement follows a recent Productivity Commission report, which revealed that governments are not adequately delivering on their commitment to the National Agreement on Closing the Gap. 

Aside from enhancing education, employment, and community development for Indigenous Australians, Weld Australia CEO Geoff Crittenden argued that the Indigenous Welding Schools initiative could also offer a solution to bridging the skilled labour gap in the welding industry. 

“For the past five years, Weld Australia has approached every government in a bid to secure funding to create a national network of Indigenous Welding Schools that use the latest augmented reality and advanced welding systems. We have been largely rebuffed by governments of all persuasions.” 

“However, we know that the Albanese Government is genuinely committed to closing the gap for Indigenous Australians. Weld Australia has written to the Albanese Government, urging it recognise the value and necessity of the Indigenous Welding Schools concept. It represents a strategic investment in the future of industry and the empowerment of Indigenous communities, promising real skills for real jobs,” said Crittenden. 

In a media release, Weld Australia said Indigenous educators and tradespeople would run the Indigenous Welding Schools program to mesh the practical demands of the welding trade with a culturally appropriate curriculum, pastoral support, and employment pathways. 

Under this program, students would graduate qualified and certified to the internationally recognised welding competency standard ISO 9606. 

The model and technology used in the program would be identical to that deployed by Weld Australia and its successful programs: the VET Centre of Excellence in seven Corrections Victoria prisons, and the NSW Advanced Manufacturing Schools Outreach Program, implemented in over 65 schools.

Furthermore, Weld Australia noted that a national network of Indigenous Welding Schools could also help progress three of the 19 national socio-economic targets outlined in Closing the Gap: 

• Students reach their full potential through further education pathways;
• Youth are engaging in employment or education, and 
• Strong economic participation and development of people and their communities.

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The Western Australian Government has earmarked $9.9 million to facilitate industry placements for TAFE college lecturers, allowing them to gain firsthand insight into the skills and workforce requirements of various industries.

Dubbed ‘TAFE College Lecturers Industry Placement Program,’ the initiative is poised to equip lecturers from various regions of the state with immersive experiences in contemporary industry practices.

These experiences enable them to bring valuable insights back to their TAFE colleges, preparing the future workforce to meet industry demands effectively, the government said in a media statement.

In 2022 and 2023, a total of 428 lecturers participated in industry placements across the five WA TAFE colleges.

Notably, participation surged to 301 in 2023, marking a significant increase from 127 in 2022.

Minister for Training and Workforce Development Simone McGurk recently visited Rio Tinto’s Perth Operations Centre near Perth Airport, where several lecturers from North Metropolitan TAFE (NM TAFE) completed placements to gain insights into the company’s autonomous operations.

Rio Tinto extended its support by hosting NM TAFE lecturers at its Yandicoogina (Yandi) iron ore mine in the Pilbara. By the end of 2023, three placements had been completed at both sites.

Monique Taaffe, an NM TAFE lecturer delivering the Certificate II in Autonomous Workplace Operations, emphasised the benefits of her placement at Rio Tinto’s Operations Centre.

She noted that the experience broadened her understanding of automation and facilitated industry connections beneficial for her students’ learning.

“I gained exposure to extensive areas of the business which gave me a better understanding of the mining industry supply chain,” Taaffe remarked.

“I also made new industry connections which may facilitate site excursions for students this year,” she added.

Similarly, Adrian Fallon, an NM TAFE Electrical Instrumentation lecturer, shared his insights from placements at Rio Tinto’s Operation Centres.

He highlighted the relevance of aligning course training documents with industry policies and procedures, particularly in safety and troubleshooting, for the benefit of his students, who are all first responders on site.

Minister McGurk emphasised the crucial role of training in fostering skilled workers to support local businesses and communities, thereby strengthening Western Australia’s economy.

She highlighted the importance of having quality lecturers with current industry experience to effectively train the necessary staff, underscoring the State Government’s investment in industry placements for lecturers to ensure this outcome.

“Industry-relevant training and hands-on experiences help to ensure students receive the best possible preparation for the workplace and future careers in the industry,” the minister noted.

Rio Tinto Vice President People, Matt Kimball, underscored the significance of these lecturers in educating the next generation of workers who may join their business, and in improving the provision of essential materials to meet global demands.

“The program ensures lecturers remain connected and up-to-date with the latest technology and industry practices and share this knowledge with their students.”

He added, “This enables our business to hire people with the relevant information and skills, and for students to get the most from their studies and kick-start their careers.”

For more information on training opportunities, visit the Jobs and Skills WA website.

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The Australian government has invested a total of $830 million to sustain and support the Australian Army’s future helicopter fleet, creating hundreds of jobs in the local industry. 

As part of the massive investment, a five-year, $340 million contract was awarded to Lockheed Martin Australia to deliver integrated support for Australia’s Black Hawk helicopters. 

The Black Hawk will serve as a critical capability for the Australian Defence Force, supporting the deployment of troops and equipment, and providing humanitarian assistance and disaster relief. 

Work on the project will create hundreds of jobs in Queensland and New South Wales. 

A central warehouse will also be established in Western Sydney.

Meanwhile, Boeing Defence Australia received two contracts to support the AH-64E Apache platform and CH-47F Chinook Fleet. These projects are expected to deliver more than 230 new jobs across Queensland. 

The seven-year, $306 million initial support contract will require Boeing to deliver maintenance, engineering, training, and logistical services for the Apache helicopter. 

The Apache helicopter fleet will be based in Townsville from 2025 where it is estimated more than 150 jobs will be created, with a further 50 jobs in Brisbane and 30 jobs in Oakey. 

Additionally, Boeing secured a contract extension for its Chinook integrated support services, extending it to August 2028 and increasing the total contract value from $146 million to $184 million. 

The Chinook project employs 70 local personnel in Townsville, Oakey, and Brisbane. 

Australia’s defence industry is a crucial part of delivering the critical capabilities needed to keep the nation safe, said Deputy Prime Minister Richard Marles. 

“These investments in the Black Hawk, Apache and Chinook fleets will support workers and industry,” Marles said. “The Albanese Government is making the important decisions when it comes to sustainment, and at the heart of that is local Australian jobs.”

“The Albanese Government is delivering on its commitment to support the Australian defence industry and provide ADF personnel with the enhanced capabilities they need to do their job and keep Australians safe,” said Minister for Defence Industry Pat Conroy. 

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The South Australian energy and resources sector is witnessing significant growth as new data reveals a record number of job advertisements in the last quarter of 2023. 

The South Australian Mining and Energy Hiring Intentions Report, which was released Monday, 22 January, shows that 918 job advertisements were placed for roles in SA’s resources and energy sector between October and December. 

This is the highest level of jobs advertised in this period since 2013 when the Resources and Energy Skills Alliance (RESA) began producing the report. This record demand for skills follows an increase in mining activity and investments in energy projects in the state. 

Jobs were advertised across a wide range of professions, with the top three categories being trades and operators (54 per cent), professionals (29 per cent), and supervisors/managers (9 per cent). 

The report also found a high demand for diesel mechanics, mechanical fitters, and health, safety, and environment advisors, as well as mining engineers and project managers. 

Around 40 per cent of advertised jobs are located in regional areas in the state. 

“These record results are more evidence that the energy and mining sectors are key drivers of our state’s economy, boosting jobs and building prosperity for all South Australians,” said South Australian Premier Tom Koutsantonis. 

“It is particularly pleasing that well over a third of these jobs are located in our state’s regions. These sectors are vital to the prosperity of our regional communities and to the state’s economic transformation,” Koutsantonis added. 

“Our state is delivering the raw materials and value-added products needed to drive the energy transition globally, including copper, steel and hydrogen. This jobs boom is creating opportunities for people with varieties of skills – whether you’re operating heavy equipment or honing a complex spreadsheet, there’s a job for you in South Australia’s resources sector.” 

Jodie Badcock, CEO of RESA, said mining and energy vacancy activity has seen consistent growth over the past two years with demand in each quarter consistently equalling or exceeding the equivalent period in the previous financial year. 

“With 235 companies advertising in the sector in Q2 FY23-24, in roles that support mineral resources and infrastructure projects, industry demand is diverse both by type of employment and geographical location,” Badcock said. 

“This highlights the importance of a collaborative approach to the development of workforce solutions aligned to industry priorities providing pathways to rewarding employment opportunities for South Australians.” 

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The Tasmanian government has launched the Inclusion and Diversity Blueprint and Roadmap, which aims to attract more women and people from culturally diverse backgrounds to the mining and minerals processing sector. 

Developed by the Tasmanian Minerals and Energy Council, the roadmap seeks to ensure that the sector has the best possible mix of people to tap into more opportunities in the future. 

Minister for Resources Felix Ellis said the roadmap builds on significant efforts already implemented in the sector to promote the industry among workers from non-traditional areas. 

“The minerals processing sector remains an economic cornerstone of Tasmania. To help take advantage of the extraordinary opportunities of the future it will need to expand its workforce base,” Minister Ellis said.

“Based on the industry goals Cleaner, Smarter and Diverse, the industry itself recognises the important contribution made in drawing on the diversity of experience and thinking that comes from employing people from different backgrounds.

Tasmania’s mining and minerals processing sector employs over 5,000 workers and contributes significantly to the state’s exports and key minerals needed for everyday life. 

The Tasmanian Minerals and Energy Council has projected that the minerals, processing, manufacturing, and energy sectors will need an additional 20,000 workers by 2040. Ellis said this goal can only be achieved by broadening the way these industries attract, develop, and retrain staff and widen the type of people they recruit. 

Curating and improving diversity and inclusion is part of the council’s Diversity and Inclusion Action Plan, which received $150,000 in funding from the Tasmanian government. 

“It’s no longer just an industry for burly bearded men, there are opportunities for anyone willing to commit to a rewarding and lucrative career with extensive skills development and advancement opportunities,” the minister said. 

“I encourage anyone looking for their first career pathway or looking for a career change to consider the mining and minerals processing sectors – it’s a great option for a great future,” Minister Ellis said.

For more information on the Minerals Industry Inclusion and Diversity Roadmap and Industry Blueprint, visit tmec.com.au. 

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The Queensland Government is ushering in the New Year with a transformative investment of $51.7 million, aiming to provide targeted and tailored training, along with employment pathways for up to 7,020 vulnerable job seekers across the state.

The cornerstone of this initiative is the “Skilling Queenslanders for Work” program, a job creation initiative by the government, as revealed in a media statement.

According to the government, this program has been instrumental in assisting unemployed and underemployed individuals in Queensland to acquire essential skills, qualifications, and practical experience, facilitating their entry or retention in the workforce.

Newly appointed Skills Minister Lance McCallum unveiled this substantial investment in Cairns, in collaboration with Northern Joblink, an organisation that has delivered 16 training projects since 2015.

Northern Joblink serves as a testament to the positive outcomes achievable through the Skilling Queenslanders for Work program.

Since its inception in 2015, over $684 million has been committed to the Skilling Queenslanders for Work initiative.

This substantial investment has played a pivotal role in bolstering the workforce across various industries, including construction, primary industries, hospitality, and community services.

The latest round of funding under Skilling Queenslanders for Work will benefit 225 community-based organisations.

These grants aim to assist participants in overcoming barriers such as social isolation, learning difficulties, and mental health challenges.

Simultaneously, the program will equip them with the necessary skills and experience to transition towards further education and employment.

Some of the recipients of the grants include the Fiji Community Association in Far North Queensland, Gympie, and Cairns; Sharehouse Youth Programs Inc in Townsville; Mackay Canegrowers Limited in Cassowary Coast; Beyond DV in Brisbane, and the Queensland African Communities Council in Brisbane.

Minister McCallum stated that the government is committed to expediting job placement for Queenslanders.

He mentioned that Queensland businesses require skilled workers across various sectors, and the government is dedicated to providing training in areas of high demand.

“The next round will open for applications very soon, so I encourage businesses to check out the initiative and how to apply,” the minister remarked.

Minister for Tourism and Sport Michael Healy stated that the tourism and hospitality sector in Queensland requires more skilled workers across diverse age groups, cultures, and backgrounds.

“The Skilling Queenslanders for Work program plays a vital role in creating good job opportunities for those who’ve found it tough to find work,” Healy said.

This investment builds on the success of the previous funding round for 2023-24, where $39.6 million was allocated for 162 projects, supporting over 5300 disadvantaged Queenslanders in their journey to join the workforce.

The first funding round for Skilling Queenslanders for Work in 2024–25 is set to commence on 29 January 2024, providing further opportunities for job seekers to access training and employment pathways.

This initiative underscores the Queensland Government’s commitment to fostering a skilled and inclusive workforce, enhancing employment prospects for individuals facing unique challenges in the job market.

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Enrolments for TAFE SA have seen a dramatic 65 per cent increase compared to two years ago following the launch of the South Australian government’s Fee Free TAFE effort. 

In 2023, more than 10,600 places were used for fee-free study at TAFE SA, creating more skilled workers in areas that directly align with the Malinauskas Government’s priorities including building the defence workforce for AUKUS and delivering the infrastructure needed by the state. 

TAFE SA has received a strong influx of responses from priority student groups like people with a disability, women in non-traditional fields, First Nation students, veterans, and students speaking a language other than English at home. 

Among the courses that received particularly strong interest from South Australians is Certificate II in Electrotechnology. 

“It is fantastic to see such a significant increase in the number of enrolments at TAFE SA especially among priority cohorts,” said Minister for Education, Training and Skills Blair Boyer. 

“We have been working tirelessly to rebuild TAFE SA over the past two years and we are seeing the results with more South Australians getting the skills they need for the jobs we’re creating. We will continue to invest in rebuilding TAFE SA for the benefit of future generations of South Australians.”

2023 marks the first time enrolments skyrocketed year-on-year since 2012 and demand is continuing to soar, the state government said in a media release. 

In October 2023, the federal and state governments announced a $2.28 billion investment in training and skills for the state under the new five-year National Skills Agreement. 

The investment includes support for TAFE SA to fund more training places, capital works upgrades, and extra student support services. 

“With the support of State and Federal Governments, we have over 4,500 additional Fee Free TAFE places for the next three years and it has been wonderful to hear the stories of many new students who have been able to enrol in study thanks to this initiative,” said TAFE SA CEO David Coltman. 

“It demonstrates an unparalleled commitment to skills development and will ensure all South Australians can participate in the incredible new and exciting employment opportunities that are emerging in South Australia.”

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The South Australian Government has committed $10 million to support high-quality training delivery in a significant move to address skills shortages and enhance the training sector.

Over $2.5 million in grants will be distributed among more than a dozen training organisations across the state, the government said in a news release.

Beneficiaries include not-for-profits, industry training organisations, and TAFE SA, focusing on critical sectors such as health, construction, disability, and agriculture.

This allocation forms part of the $9 million investment in equipment and capital grants, as outlined in the 2023-24 Budget, emphasising the government’s dedication to ensuring South Australians have access to top-notch training opportunities leading to rewarding careers.

The grants cover a diverse range of industry sectors, including agriculture and conservation, automotive service and repair, community services, construction and plumbing, creative industries, and health.

The state government is further delivering on its $7 million commitment to supporting 39 not-for-profit and industry-based training providers, recognising their crucial role in fostering community and employer connections.

As a testament to the success of these initiatives, South Australia is currently leading the nation in the number of students enrolled in vocational education and training (VET).

Recent data indicates notable increases in training activity, program enrollments, hours of delivery, and subject enrollments during the first six months of 2023 compared to the same period the previous year.

Government-funded training programs have seen a 9.5 per cent surge in student numbers, reaching 54,665, surpassing the national increase of four per cent and securing the highest percentage increase among the states and territories.

Building on these achievements, an additional $500,000 will be allocated for the development of new and responsive training products to address shortages, as well as for trainer scholarships.

This investment aligns with the recently ratified National Skills Agreement, committing the Malinauskas Labor Government to invest over $1.4 billion in skills over the next five years, complemented by $850 million from the Commonwealth.

The Equipment and Capital initiative adds to the ongoing efforts of the Malinauskas Labor Government in bolstering the skills sector.

Minister for Education, Training and Skills Blair Boyer affirmed that the Malinauskas Labor Government has taken decisive steps to invest in the state’s future.

According to Boyer, this investment has led to a notable rise in training enrollments, underscoring the government’s commitment to fostering a robust skills sector.

“This funding means new and improved experiences for learners, greater outreach for quality training and demonstrates another clear step towards ensuring we have a well-trained workforce to meet our skills needs today and into the future,” he said.

Prior investments include $28 million for not-for-profit and industry training providers, over $12 million to reintegrate aged care, disability, and early childhood courses into TAFE SA’s metropolitan campuses, $9 million in equipment and capital grants, $5 million for the upgrade of TAFE SA’s Mount Gambier campus, and $2.6 million to establish regional skills centers in Cleve, Berri, Port Augusta, Murray Bridge, and Mount Gambier.

The government’s commitment to addressing skills shortages in various sectors, including cookery, bricklaying, and concreting, remains evident in the allocation of $8.8 million for this purpose.

The $2.3 billion National Skills Agreement stands as the largest increase in funding for skills in South Australia’s history, solidifying the government’s dedication to advancing the state’s workforce and educational landscape.

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The future of Australia’s local manufacturing industry is under threat as the country faces a declining skilled workforce, according to an expert. 

Susan Luckman, a professor of culture and creative industries at the University of South Australia and director of the Creative People, Products and Places Research Centre, said the biggest threat to Australia’s making economy is its ageing workforce. 

“Australia benefited hugely from trade-skills migration in the decades following WW2 and up until the 1980s we had a strong domestic manufacturing sector,” Luckman said. 

The threat is also compounded by the slow decline in practical making skills and loss of knowledge after some manufacturers moved their operations offshore over the last four decades.  

“Subsequent offshoring of manufacturing has meant that craft skills have not been sustained and replenished in the Australian workforce. However, according to data drawn from the last Australian Census, those skilled makers still working in this dwindling workforce are enjoying increasing incomes as advanced manufacturing, the artisanal economy, and demand for Australian-made goods all grow.”

Australia’s domestic manufacturing industry is plummeting despite more than 116,500 people – or 1.1 per cent of the total workforce – being employed in the sector in 2021 and contributing $19.2 billion to gross domestic product. 

This is slightly larger than the contribution of the sports economy, which employed 128,000 workers from 2016 to 2017 and generated $14.5 billion. 

Luckman said these figures demonstrate the high value of Australia’s craft and manufacturing industry, which enables both niche and mass production of everything from small-scale, high-end custom bicycles to large-scale textile manufacturing. 

“Scalable production enabled by digital tools operating alongside skilled craftspeople offers exciting potential for a renaissance of Australian making, especially through SMEs who constitute most of Australia’s contemporary manufacturing ecosystem,” Luckman said. 

Luckman is part of a research project backed by the Australian Research Council, which looked into the value of craft skills to the future of manufacturing in the country. 

Over the last four years, the professor has conducted nearly 50 interviews with people from craft and manufacturing organisations and local sole traders. Participants shared their insights into education and training, industry challenges and opportunities for future innovation. 

According to Luckman, the nation’s makers must learn to embrace technology and that the world of tradition and digital innovation must collide. 

“We are seeing manual skills and digital skills as separate spheres, and this is a problem. Digital technologies can revolutionise advanced manufacturing by re-imagining our processes of production and turnover,” she says.

“If we want to rebuild our domestic manufacturing capacity, we need renewed support for hands-on craft skills training, and we need to be supporting greater collaboration with industry alongside the roll-out of digital technology.”

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