Eoghan Kenny (Cork North-Central, Labour)
Link to this: Individually | In context

102. To ask the Minister for Education and Skills his plans for a renewed action plan to succeed the Action Plan for Apprenticeship 2021-2025; if the new action plan will have a focus on apprentice wages; and if he will make a statement on the matter. [37310/25]

James Lawless (Kildare North, Fianna Fail)
Link to this: Individually | In context

This is a really important question. We are bringing forward a successor apprenticeship action plan. We are also looking at an integrated apprenticeship model, something I will be canvassing with stakeholders at the labour economic forum shortly. I have already met the unions and others in the relevant space and that is something we will continue to engage on. We are undertaking a review of the current action plan for apprenticeships and looking at a new five-year strategy that will guide the system from 2026 onwards. One of the priorities is to continue to strengthen the system to meet the skills needs of industry and adapt to workforce challenges.

It is only fair to put on the record that apprenticeship funding has grown significantly. We provided an additional €77 million in funding for apprenticeships alone in budget 2025, bringing the total to €339 million, which is an 84% increase since 2020. This morning, the Minister for Education and Youth, Deputy McEntee, and I brought an education indicators report to Cabinet that showed that the number of apprentices in the system had grown by one third between 2022 and 2023. We have seen really significant progress in the apprenticeship field in terms of people entering, the course options available, and the funding being provided. We have seen positive progress across the board.

There are some very new and interesting programmes, such as civil engineering, wind turbine maintenance, digital marketing, cybersecurity, software development and town planning. A number of areas have been identified as suitable for the apprenticeship model and are being expanded and rolled out through the consortia-type method. There is a positive broadening of the spectrum of apprenticeships, bringing in new and emerging skills and methods. It is a commendable way of training.

We support employers with training costs. There is a €2,000 consortia-led employer grant for the cost of taking on an apprentice because there are costs involved. I have met employers who have expressed concerns about costs. In the same way that apprentices themselves and their spokespersons raise issues about costs, employers do so, too, and it needs both to make the system work. The goal across the Government is to have 12,500 new apprenticeship registrations by 2030. That will be the central focus of the new action plan.

Eoghan Kenny (Cork North-Central, Labour)
Link to this: Individually | In context

I thank the Minister. He made a very important point towards the end of his reply in terms of employers and apprentices meeting each other halfway. I have an aunt who has a hair salon in Mallow and I know from her of the difficulty of taking on an apprenticeship student and trying to make that work with one's own work schedule. Are incentives for employers to take on more apprenticeship students being considered? That would be welcome because it would incentivise employers to bring on more apprentices.

The main focus of my question is on the fact that €7.41 is currently the craft rate for year 1 of an apprenticeship. That is an extremely difficult rate for students who are coming out of school to be able to afford a car or even the use of a car. They might be travelling to and from a certain location during the apprenticeship. How would they be able to afford to live on €7.41 per hour? It is really important to address that in the new action plan.

James Lawless (Kildare North, Fianna Fail)
Link to this: Individually | In context

I hear that, but neither my Department nor SOLAS is involved in the setting of apprenticeship wages. There are two types of apprentices. Under apprenticeship programmes developed before 2016, which are referred to as craft apprenticeships and are largely but not exclusively traditional construction-type apprenticeships, there are long-standing industrial relations mechanisms that determine pay. Collective bargaining between industry and employee representatives determines the rates. That is a well-established industrial relations system. Three quarters of the overall apprenticeship population falls under those arrangements. For the newer apprenticeships, some of which I mentioned in my initial response, wages are set between the employer and the apprentice directly. A contract is entered into and terms and conditions are set out, including pay, in the employment contract. On those programmes, the apprentice is paid by the employer throughout the programme.

Wages for apprentices are covered under the Industrial Training Act, which differentiates between an employee and an apprentice for the purposes of pay legislation. There are a number of reasons for this, including that employers must be able to balance the investment costs of training an apprentice. Ultimately, they are taking on a trainee, not a fully formed employee. As apprentices progress through the system, they will be paid more. By the time they are in years 3 and 4, their pay increases significantly.

Eoghan Kenny (Cork North-Central, Labour)
Link to this: Individually | In context

I have a slight difficulty with wages being negotiated between the students themselves and the employer. The State must have a role to play in the negotiations between apprentices and employers in terms of how wages are set. While it is the case that employers are not taking on a fully qualified person but someone who is moving into the trade, it is important that apprentices get a fair wage. I do not believe that €7.41 is a fair wage to start off on, especially in the context of running a car, renting a room in a house, buying groceries and so on.

I welcome the improvements to which the Minister referred and the Labour Party will work with him on this.

James Lawless (Kildare North, Fianna Fail)
Link to this: Individually | In context

I thank the Deputy. I appreciate that. In the bulk of apprenticeships, the story is one of success and progression. In an apprenticeship survey conducted recently, 90% of apprentices who qualified were in employment in that field two years later. They stuck with it. There was high stickability and the median weekly earnings were €935 two years out. If we look at a sample of rates, construction sector apprentices in year 2 were entitled to €11.50 per hour. In the mechanical contracting industry, apprentices received €13.82 in year 2, while mechanical rates were €13.36 per hour in year 2. Electrical apprentices got €11.78 as of second year, so we can see the progression there. They start on a low wage as trainees when they come into the system but they progress quickly, and by the time they come out the far side and are qualified, they are on a median weekly wage of €935 in most cases.