Brave New World: the reforms to TAFE in WA.

BRAVE NEW WORLD: the reforms to TAFE in WA

August 2014

A COMMENTARY BY THE CPSU/CSAAUGUST 2014

2 | BRAVE NEW WORLD: THE REFORMS TO TAFE IN WA

Contents Introduction .................................................................................... 4

Our Position .................................................................................... 5

Cuts ........................................................................................... 5

Entitlement Model ................................................................... 6

Publicly-run TAFEs ................................................................... 7

One Agreement for all TAFE colleges .................................... 8

Regional TAFEs ........................................................................ 8

Conclusion ............................................................................... 9

Delegate story: What TAFE means to me .................................. 10

Senate inquiry hearing: TAFE delegates stand strong against intimidation ........................................................ 11

3 | A COMMENTARY BY THE CPSU/CSA

Special thanksWe would like to thank the members in TAFE who have contributed to the various submissions we have made to these inquires. The TAFE sector in WA is currently experiencing change at a rapid rate; we hope to update this document at regular intervals to reflect the changing environment. We are always after your feedback - please send your feedback and queries relating to this document to Clare Middlemas, Community Campaign Organiser ([email protected])


Introduction

The CPSU/CSA (Community and Public Sector Union/Civil Service Association) represents workers in administration, library, technician, and student services roles in TAFEs. We are currently at a critical juncture in TAFE, reflected by the fact that in 2014 there were a number of government inquiries – both at a federal and state level – about the role of TAFE into the future. They were:• Inquiry into Technical and Further

Education in Australia, Senate Education and Employment References Committee (final report tabled 14 May 2014).1

• Inquiry into the role of the Technical and Further Education system and its operation, House of Representatives Standing Committee on Education and Employment (report yet to be tabled)

• Independent Review of the Vocational Education and Training Sector in Western Australia, initiated by the Minister for Training and Workforce Development and conducted by Emeritus Professor Margaret Seares (final report released 23 June 2014), of which the CPSU/CSA was a recognised stakeholder.2

The former federal Labor government agreed to a Greens request to hold an inquiry into TAFE by the House of Representatives Education Committee. The CPSU/CSA made a submission to that inquiry before Prime Minister Kevin Rudd called the election and the inquiry ceased. In December 2013, Greens Senator Lee Rhiannon pushed for another inquiry into TAFE by the Labor and Green dominated Senate Education and Employment Committee, which was adopted. The Senate inquiry considered the submissions that

were made to the previous House of Representatives inquiry, and also called for new submissions. The CPSU/CSA made a supplementary submission to that inquiry in early 2014 which included our view on the implementation of the Future Skills WA reforms.

Then, on 26 February 2014, the Liberal dominated House of Representatives Education and Employment Committee announced that it would also hold an inquiry into TAFE to continue its previous work in that area. The House of Representatives Committee also considered the submissions made to the previous inquiry. The Senate inquiry listed 13 wide-ranging terms of reference, whereas the House of Representatives inquiry had only 5 terms of reference, with two relating to skills and employment. In addition to giving written submissions to the Senate and House of Representatives inquiries, the CPSU/CSA also appeared before both committees to give evidence.

Finally, at the state level, the Department of Training and Workforce Development initiated an independent inquiry into the VET sector in WA, to be conducted by Professor Margaret Seares. The inquiry released a discussion paper for which the CPSU/CSA provided comment, and released its final report in June 2014 for which we also provided comment. The Minister is currently considering these comments, and is yet to respond to the recommendations in the report.

The purpose of this document is to outline the position the CPSU/CSA put to these inquiries on how we perceive the current and future role of TAFE in WA. This document will note the impacts of the Future Skills WA reforms so far on our members, students, and the wider community. We also highlight the role our delegates have played in formulating this position and giving evidence to the Senate inquiry hearing – and the Department’s attempts to prevent them from providing this evidence.

SECTION NOTES

1. Parliament of Australia. 2014. Technical and further education in Australia. http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Education_and_Employment/TAFE/Report/index (accessed 6/3/14)

Department of Training and Workforce Development. 2014. http://www.dtwd.wa.gov.au/dtwcorporateinfo/Annual-reports-publications-and-presentations/Documents/VET%20Sector%20Review%20-%20Final%20Report.pdf (accessed 6/3/14)


Our Position

In each of our submissions to the various inquiries we have argued that a strong, publicly-funded TAFE system is vital to not only the development of the WA economy, but also in providing opportunities to all Western Australians. TAFE is a fundamental part of the tertiary education sector and delivers a ‘social good’ function through offering education and training to all Western Australians, and to this end TAFE must be accessible and provide a wide variety of courses to suit various occupational and interest areas. The government has a responsibility to provide education and training that contributes to social cohesion, rather than just employment outcomes. We believe, however, that TAFE is currently at crisis point in WA due to the Barnett government’s continued budget cuts, job cuts, and the Future Skills WA reforms.

CUTS

In the 2013-14 budget of the Department of Training and Workforce Development there was a 1.5 per cent reduction in procurement expenditure, a $1.3 million cut; a reduction in the full-time equivalent ceiling, a $9.6 million cut; a temporary advertising freeze, a $518,000 cut; a temporary procurement freeze—not taking on anyone else—a $9.67 million cut. Under the line item “Program Rationalisation” in the 2013-14 budget there is a further cut of $5.8 million.3 These cuts to the Department of Training and Workforce Development which will ultimately flow on to TAFE colleges amount to $15.7 million in the current financial year, $16.5 million in the next financial year and $15 million and $11 million in the out years.4 The voluntary redundancies are hitting TAFEs hard, with Central TAFE offering further Voluntary Severance packages effective 31st March 2014, which will further erode the current services at Central TAFE. Polytechnic have also lost a large number of positions across their campuses, although the total FTE is not yet known. Further to this West Coast Institute, Challenger Institute, and South West Institute of Technology are currently undergoing internal restructures – 50 positions have already been lost through this process.

The full effect of these cuts are yet to be seen, however it appears that TAFE libraries have been severely impacted. For instance, East Perth TAFE campus has removed the books from the library shelves and added some computer terminals, but the staff have been removed from the library and relocated to other roles

Art Department GoneAt the beginning of 2014, Polytechnic

West Midland permanently closed the art department, which housed its own gallery

and promoted local artists. As a result of the closure the only option for students is to

complete the course at Central Institute, if there is a place available.

Print cell outsourcedThe Print Cell at Polytechnic West Thornlie campus which is responsible for all high volume print jobs (e.g. class readings and assessments) will close on 15 August. This service has now been outsourced and 4 public servants lost.


across the campus. These staff used to provide a valuable service to TAFE students by assisting them locate resources and develop research skills; their loss from the library will surely have a detrimental impact on students’ education. Libraries and library staff at TAFEs also play an important role in preparing students for university study by assisting them with using library resources. The loss of these staff and resources will surely have a detrimental impact on the preparedness of students for thriving in a university environment.

ENTITLEMENT MODEL

These cuts are coupled with the introduction of the Future Skills WA reform. Future Skills WA is an entitlement model where students choose where they will undertake training, and the institution will be funded to deliver that training. Future Skills WA is eroding the ‘social good’ role of TAFEs, as training will now only be subsidised by the government if the course has been identified as a priority course, if the training provider has a place available, and if the student meets eligibility requirements.5 The government has also increased fees for TAFE courses in 2014, with fees reflecting the level of priority of the qualification, with high priority qualifications having lower fees. Previously the student paid approximately 7% of the total cost of the course, and from the beginning of 2014 students are now contributing 30% of the course costs.6 This has led to significant course increases in 2014, with the fees for some courses increasing by up to 390 per cent more than the 2013 fees.7

Students are acutely feeling the impact of fee increases, and most students were not aware of the increases to fees until they attended TAFEs on enrolment day. The CPSU/CSA and the SSTU (State School Teachers’ Union of WA) surveyed

enrolling students about the fee increases. Many enrolling students commented that paying for these courses will put them into debt, and have a negative financial impact on their family. The following examples are typical of the comments made by survey respondents: • A young woman enrolling in a Diploma of

Accounting responded that she was amazed at the amount of fees she had to pay after showing up to enrol with the old course fee of $700. The new course fee was $2790.

• A student enrolling in a Certificate III in Education Support responded that they were not happy with the large fee increase, and said that the price was now almost comparable to a semester at university, however the employment that is likely to result from her course has a low income.

• A student enrolling in a Certificate III in Landscape and Construction commented that he checked the course fees last year and they have now doubled to $2400. He says he will have to borrow money and does not know how he will manage.

The fee increases will disproportionately impact the most disadvantaged groups, including women, indigenous people, migrants, and sole parents. Indeed, many enrolling students surveyed were sole parents, and commented that it would be difficult to make ends meet with the unexpected and significant fee increase. Some commented that they will not be able to afford it and so decided to not enrol. • A student responded that the increase in course

fees for the Certificate IV would have a negative impact on the household budget as she is a sole parent of three children.

Similarly, some younger students are having their course fees paid by their parents, which can place them under considerable financial stress, particularly if there are multiple children studying at TAFE:• A mother of a student enrolling in a Certificate

III in Children’s Services commented that the fee increases are putting her family budget under increased pressure as she is a mother of five children.

In 2014 course fees are capped at $400 for school aged students, $2500 for trade training and $7500 for people undertaking diplomas. It remains unclear how long those caps will be in place, however. If the caps are removed, these courses will become extremely unaffordable, with a diploma course in 2017 projected to have risen 900 per cent compared with the 2013 fee structure for a diploma at TAFE.8 TAFE colleges are also offering concession rates at 50% of the course


cost, however the large fee increases mean that the concession rates are still significant for students in financial hardship.

Students do have access to ‘VET FEE-HELP loans’ if they study a diploma or above, and some TAFEs are offering payment plans for students who cannot afford to pay upfront, however the CPSU/CSA does not believe that students should need to go into debt to gain a qualification. This debt may prove prohibitive to students enrolling in TAFE, and those that do go into debt may find themselves under increased financial stress (the concession rate only applies to students paying upfront). Indeed, those students that are accessing TAFE as a pathway to university will most likely find themselves encumbered with both a TAFE debt and a university debt.

The TAFE reforms are also having a negative impact on the TAFE colleges. The fees have already led to a downturn in enrolments for the first semester of 2014. Minister for Training and Workforce Development Kim Hames made the following statement in Parliament on 26 June reporting on the implementation of Future Skills WA:

“I am pleased to report that, based on first quarter data this year compared with the same quarter last year, there has been an overall increase in enrolments in priority training qualifications of two per cent, which indicates that the design of Future Skills WA is working well in responding to the state’s priority skills needs…At the same time, however, there has been a decline in enrolments in general industry qualifications of around 22 per cent, contributing to an overall decline in enrolments of 7.4 per cent. At this stage it appears that the demand for general industry training, while not part of the state’s training guarantee but still important to meet the needs of the broader Western Australian workforce, is being impacted by the new fee structure…The intent of Future Skills WA is to direct the state’s training effort into priority training qualifications, and early data suggests this is working. However, an overall decline of 7.4 per cent and a general industry training decline of more than 20 per cent are not acceptable outcomes. I want the level of training in this state to increase, not decrease. I will be adjusting the settings of Future Skills WA to combat this decline. With some adjustments, Future Skills WA will provide a sustainable foundation for the state’s vocational training system to meet the needs of the economy.’ 9

It remains to be seen what form this ‘adjustment’ to Future Skills WA will take; it is possible the Minister will keep the 2014 caps in place for the next period to prevent a further decline in enrolments.

PUBLICLY-RUN TAFES

The CPSU/CSA believes the TAFE system should be entirely public run. Publicly funded TAFEs provide proven quality teaching methods and student support unmatched by profit-driven private providers. For example, the library services provided at TAFEs have been a major point of distinction between public TAFEs and private RTOs. In 2013 Balga campus trialled making their library services available to the private RTOs, however the trial had to cease due to the disadvantage it was causing to TAFE students who now had a lack of resources available to them. TAFE is an integrated learning environment which provides pastoral and special needs care for its students; this is not something provided by RTOs. TAFE provides student support and counselling services for its students free of charge. This ensures students remain engaged with their studies and feel supported throughout. The experience in Victoria shows that some private providers are running diploma courses in days rather than the months or years it normally takes students to acquire these skills. Some are even luring them with cash or other incentives onto courses with few job prospects, with students not realising they are blowing their one chance at a government-funded place. The Minister for Training and Workforce Development response suggests that over the four years from 2008 to 2012, $48,476,507 was saved from TAFE budgets in efficiency dividends. It is interesting to note, that over the same four years over $307 million of funding was given to private RTOs. A further $98 million in 2012-13 has been allocated to RTO’s. Further,


the total number of publicly funded TAFE courses available in 2013 has reduced by 191 from 2011 figures.10 We suggest that TAFEs play a unique role in our system because they are not run purely for a profit. Due to this, they have an important role in servicing ‘thin markets’ – providing courses that may only service a niche industry, or providing courses for the public good – rather than only running the most profitable courses.

ONE AGREEMENT FOR ALL TAFE COLLEGES

The Independent inquiry suggested that for the purposes of ‘flexibility’, each TAFE college should have an individual industrial agreement – which would mean differing pay and conditions across campuses. The CPSU/CSA is firmly against this suggestion. First, we are concerned that this recommendation was made when the Independent inquiry was still questioning the role of public TAFEs and so it is not clear for what purpose TAFEs would require “more flexible and individualised agreements”, and whether the flexibilities that are sought cannot already be achieved under the current industrial arrangements. Until this question of the role of TAFE in the sector is resolved, it is our view that any change to the industrial framework is completely unnecessary.

CPSU/CSA members in TAFE are covered by our General Agreement. The General Agreements have created fairness and equity across TAFE and government more broadly by creating a standard classification and pay structure and standard conditions. The advantage of having an industrial agreement common to all TAFEs is that it creates flexibility for staff to move between campuses and develop a career path. It also means that in the event of

redundancy there is a higher likelihood that the staff member could be redeployed to a similar position at another TAFE in order to retain the knowledge and skills in the government sector. Staff movement across TAFEs has occurred recently as a result of restructures, which are occurring at almost every institute. If there are different industrial agreements at each TAFE (with different pay and conditions), the prospect of being redeployed to a similar post with lesser pay and conditions is not attractive and may result in the staff member (and their knowledge and skills) leaving the sector.

The Independent inquiry claimed that the system of DTWD negotiating state-wide agreements on behalf of the TAFEs “is probably a system that has had its day”, given the need for TAFE to compete with private RTOs. This claim makes the assumption that a good general industrial agreement is a barrier to competitiveness. Given the unique role TAFE has in the vocational training and training sector in terms of servicing ‘thin markets’ and providing a ‘public good.’ TAFE should set the standard for the sector, not be reduced to having to be fully competitive with RTOs. Even if you accept the premise that TAFE does need to be competitive, however, we would argue that a strong industrial agreement common to all institutes that delivers good pay and conditions is a significant draw-card to attract and retain high quality staff, which would be a competitive advantage.

REGIONAL TAFES

Finally, mention must be made of the particular importance of TAFEs in regional and remote areas. Our members are of the view that strong local TAFE campuses add value to our communities, and are particularly vital for regional communities. WA has always faced significant issues due to its vast geographical size and spread with respect to infrastructure and delivery of government services including health and education. Therefore, Western Australians rely on the government to assist or be primarily responsible for the delivery of such services because of the distance and associated isolation of the State, and resulting costs making any other model of delivery unviable for the private sector. The CPSU/CSA is of the view that any ‘rationalisation’ of TAFE colleges will certainly have a negative impact on those regional communities that rely on TAFE to provide opportunities and social cohesion. Regional communities are already feeling the impact of course-cuts, and this will be further exacerbated if the ‘centres of excellence’ model was adopted. As the parent of one


18 year old student in Port Hedland told us:

“My son wanted to study a course at Pilbara Institute in South Hedland, but it was no longer offered in 2012. As a family, we struggle with the issues of being Maori in a small community and I want to have my son close to me and my de-facto partner so he does not get into trouble. He now needs to go to Perth to study his chosen course which means living away from home and I am really worried about it, because I cannot help him if he is so far away.”

CONCLUSION

The CPSU/CSA believes the reforms to TAFE initiated by the Barnett government – the Future Skills WA entitlement model, fee increases, and budget cuts – will diminish the public training providers and steer students towards private providers. This will have negative outcomes for TAFE as a quality provider of education and training to Western Australians, will disproportionally impact the most disadvantaged in our society and their communities. The CPSU/CSA supports increased funding to public training providers and abolishing the entitlement model to ensure that TAFE is able to provide skills training and education to all West Australians. We fear that the full effects of the Barnett government’s reforms to the TAFE sector will not be felt until the next generation, where pathways to skills training and education have diminished and are only available to those who can afford it.

SECTION NOTES

3. WA State Budget 2013-14, ‘Training and Workforce Development’, Vol. 1., Part 9, Division 41. http://www.treasury.wa.gov.au/cms/uploadedFiles/State_Budget/Budget_2013_14/01_part_09_training_and_workforce_development.pdf (accessed 6/3/14).

4. Ibid. 5. DTWD, ‘Who is eligible for a guaranteed training place?’ Future Skills

website, http://vetinfonet.dtwd.wa.gov.au/FutureSkillsWA/About-us/Pages/Whoiseligible.aspx (accessed 6/3/14).

6. WA Hansard Parliamentary debates, Legislative Assembly. 25 September 2013, p. 4661b-4677a..

7. WA Hansard Parliamentary debates, Legislative Assembly. 26 February 2014, p. 711.

8. WA Hansard Parliamentary debates, Legislative Assembly. 26 February 2014, p. 711.

9. WA Hansard Parliamentary debates, Legislative Assembly. 26 June 2014, p. 4704c

10. http://www.parliament.wa.gov.au/publications/tabledpapers.nsf/laypaper/3815361c4bcb634c79f51309 48257ab60007f816/$file/5361.pdf

Bookshops closing & reduced library services.Campus bookshops are closing by the end of the year, with students now having to source their own stationery and books off campus.

In response to budget and staff cuts, libraries at Polytechnic West campuses have dramatically reduced their opening hours, which has an impact on students who need to access the library early in the morning or in the evening.


Delegate Story:What TAFE means to me

In 1998 I was working part-time in an aged care facility on an insecure contract. To survive financially I had to find whatever other unskilled casual work I could; mainly labouring, gardening and entertainment industry work. I was in my late thirties, experienced across a number of industries, but essentially unqualified and caught in the poverty trap. I really needed to “raise my prospects”.

So I did what so many others have done before and since, I purchased a TAFE Course handbook from the local newsagent, found a course that sounded interesting and enrolled in my local TAFE. The enrolment and course fees were reasonable and the College was easy for me to access and seemed adequately funded and appropriately staffed. The Diploma in Library and Information Services I studied over the next 2 years was well structured, professionally delivered and industry-relevant. I enjoyed my time at TAFE and felt quite honoured to be offered a chance to work in the TAFE Library system when I graduated at the end of 2000. By 2003 I was a permanent full-time public servant employed in a great job, finally earning a living wage and enjoying the wonderful feeling of having a relatively secure future. In all ways going to TAFE had completely turned my life around. I also really believed that by working in the Vocational Education and Training (VET) system, I was assisting literally thousands of my fellow citizens to achieve their hopes and aspirations for a better future.

In a broader sense, TAFE is helping to make a better Australia by giving everyone access to reasonably priced training, allowing them to develop practical vocational skills

and so become engaged and contributing members of our Community. But all of this could be a thing of the past if the Barnett Government chooses to follow its usual privatisation agenda when implementing The National Partnership Agreement on Skills Reform.

In a nutshell, the Agreement is a document produced by the Federal Government and signed up to by the State Governments. It ensures the Federal funding of the VET sector of each State dependant on a number of demonstrated “reforms” of that sector. How and what those “reforms” are appears to be open for interpretation. That is where the real threat to TAFE and the future of low cost and accessible vocational training becomes apparent.

Most people would have heard something by now about the situation that has unfolded Victoria where the Liberal government of that State introduced a voucher system. This placed the choice of where the funding for VET would go into the hands of the consumer. Within 2 years TAFE in Victoria was systematically destroyed, the budget for VET in Victoria blew out by over $400 million and shonky private Registered Training Organisations (RTO’s) received millions of dollars of taxpayer’s money without delivering any real qualifications to their students. It is impossible to imagine that VET sector in Victoria will ever recover.

Despite this, the NSW, Queensland and South Australian governments have also introduced similar schemes, each announcing that their system will be “nothing like the Victoria”. The TAFE sector in NSW is beginning to show real problems already.

So far the Barnett government has been particularly silent on how, exactly, it intends to meet the requirements of The National Partnership Agreement on Skills Reform. Despite enquiries by our Union and Members of Parliament, the full details of what it intends to do to the VET sector in Western Australia have not been made available to the wider public. It does not take much imagination to come up with an answer for why that might be. I’m afraid to say, I have no confidence that the Barnett government will do what really should be done: that is to get right behind the proven providers of quality, accessible VET and inject the TAFE sector with the support and funding it needs to continue to help the citizens of Western Australia to realize their hopes and fulfil their training needs.


Senate inquiry hearing: TAFE delegates stand strong against intimidation.On 10 April our union gave evidence to the Senate Inquiry into the role of TAFE in Australia. Branch Assistant Secretary, Rikki Hendon, attended the public hearing with two delegates from TAFE Institutes of Technology (Polytechnic West and Central). The intention was to provide the Senate inquiry with information about the cuts to TAFE Institutes and the impact of the new ‘entitlement’ model and fee increases. The TAFE delegates would be appearing at the inquiry in their capacity as CPSU/CSA union delegates, and speaking on behalf of our members as is their right under our Award and Agreements.

Two days before our union was due to appear before the Senate Committee, the managers from Polytechnic West Institute of Technology began to threaten one of the delegates, stating that giving evidence at the inquiry would be ‘illegal’ and advising the delegate not to attend. Polytechnic West sent identical letters from Managing Director Jill Jamieson to our delegate and another delegate from the Teachers’ Union who was also giving evidence to the inquiry, stating that they would be subject to disciplinary proceedings if they revealed any ‘official information.’ The letter went on: ‘You are not authorised to give evidence on any information that you have obtained during your employment including specific issues relating to Polytechnic West, government policy or any official information.’ The other CPSU/CSA delegate was also sent an email with similar wording counselling them not to give evidence to the inquiry in their capacity as an employee of Central. It was later revealed by a spokesperson for Minister Kim Hames (“Tafe Teachers told ‘don’t testify’”, The Australian, 11/4/14) that this advice was provided by the Department of Training and Workforce Development.

As a result of this intimidation, our delegates were nervous about attending the inquiry hearing, but felt strongly that they needed to attend to represent their members. In the meantime, our union had notified the Senate Committee that the Institutes were attempting to prevent our delegates from giving evidence, and the Committee Chair, Senator Sue Lines, became very concerned. At the inquiry hearing Rikki tabled the intimidating letters our delegates had received, and Senator Lines expressed concern at the attempt to silence our delegates and noted that our delegates

were protected by parliamentary privilege. All of the Senators expressed their concern and praised our delegates for having the courage to attend and give evidence. Our delegation gave valuable evidence to the Senate Committee about the cuts and impact of reforms on TAFE, and after the hearing they were able to speak further with Senator Lines and Senator Lee Rhiannon.

Subsequently, Senator Lines wrote on behalf of the Committee to the managements of Polytechnic West and Central Institutes of Technology informing them that their attempt to ‘curtail the ability of these individuals to provide evidence to the committee…may amount to a contempt of the Senate.’ Senator Lines states that: ‘…whether or not they [the Institute of Technology] agrees with an individual’s approach or views, you may not threaten or penalise staff in any way because of their preparation or giving of evidence to the committee. Accordingly, the committee requests that the [Institute] immediately withdraws its advice to [the delegates]…’

This is a real win for the rights of our delegates to represent members. The Institutes of Technology attempts to silence our delegates backfired, with our union tabling the intimidating letters on the public record, and two TAFE Institutes being scolded by a Senate Committee and told to retract their ‘advice’ to our delegates! Our delegates left the inquiry hearing feeling proud that they had stood up against intimidation and spoken out on behalf of their members, and were backed up by their union.

Brave New World: the reforms to TAFE in WAwas written and produced by the Community and Public Sector Union/Civil Service Association of WA Inc.

Authorised by Toni Walkington, Branch Secretary CPSU/CSA, Perth

L5, 445 Hay StreetPerth WA 6000

P: 9323 3800E: [email protected]: www.cpsucsa.org

Brave New World: the reforms to TAFE in WA.

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