Mr. Brian Nolan:

On behalf of ICTU and Connect Trade Union, I thank the committee for the invitation to speak on the issue of apprenticeships, which is dear to our hearts. I am the assistant general secretary of Connect Trade Union, which is also referred to as the apprentices' union. I am accompanied by Mr. Paul Gavan from ICTU.

In recent years, two separate systems of apprenticeships have been operating in Ireland. I will take this opportunity to provide the committee with our perspective on each system and to comment on the Government's ambition to create a single integrated system.

Committee members will be familiar with the craft apprenticeship system, which currently accounts for approximately 85% of apprentices in training. The craft system has operated for decades and has a number of robust characteristics which support its effectiveness. For example, the system is underpinned by legislation; qualifications that are attained through the system are very high - they are level 6 on the Quality and Qualifications Ireland scale; and training of apprentices is done on the job and in the classroom. The Irish craft system of apprenticeship has, over decades, produced highly skilled workers. These workers continue to be highly sought after, both in the domestic labour market and abroad.

More recently, the Government introduced a new model of apprenticeship. This is referred to as the consortium model of apprenticeship, and it was proposed in order to expand apprenticeship training into new areas. The fundamental difference between the craft system of apprenticeship and the consortium model is that the latter is predominately employer led and does not have the robust governance system that is associated with the craft system. The Government recently requested that the national apprencticeship office, NAO, make recommendations on how a new, single, integrated model of apprenticeship might be developed. The NAO is in the process of developing a proposal for the Government, and initial discussions have taken place with employer and union representatives at the Labour Employer Economic Forum.

It would seem however, that the direction of travel of the proposed new integrated system favours the adoption of many of the elements of the consortium model and moving away from the system supporting craft apprenticeship. We would have very significant concerns about this. A number of new apprenticeships have been developed under the consortium model. While they have attracted apprentices in the initial stages, the numbers in subsequent years have fallen significantly and are well short of the targets set. In contrast, the number of apprentices coming through the craft system continues to grow.

It is important to point out that the UK Government has decided to abandon the employer-led consortium model in favour of a system that is almost identical to our current craft system. This decision was taken following a dramatic increase in the dropout rate among apprentices in the UK, which has increased to 47%. It is important to put on record that unions do support the expansion of apprenticeship training into new areas. It is crucially important, however, that any reform of the apprenticeship system should be guided by the overriding principle of making apprenticeship an attractive option for young people and other learners. Any reforms should be implemented in a way that will not damage the overall quality and functioning of the apprenticeship system.

Before concluding, I would like to address the issue of pay for apprentices. It is extremely important that clarity is brought to how pay for apprentices is to be determined. Traditionally, pay has been determined through collective bargaining whereby all apprentices, regardless of their employer, would be entitled to same basic minimum rate of pay. These rates of pay are reflected within the training allowances paid during off-the-job phases of apprenticeship. It is also important that pay is not a barrier to somebody taking up an apprenticeship. As a starting point, the Government should legislate giving apprentices the right to be paid the national minimum wage.

Thank you for listening. We will be happy to answer any questions you may have.