ETP 130 - Single (05/02/16) 1 of 6

 

 

RETRAINEE - JOB CREATION

Training Proposal for:

Orora Packaging Solutions

Agreement Number: ET17-0415

Panel Meeting of: February 23, 2017

ETP Regional Office: San Diego Analyst: J. Davey

PROJECT PROFILE

Contract Attributes:

 

Priority Rate Retrainee Job Creation Initiative

Industry Sector(s):

Manufacturing

Priority Industry: Yes No

Counties Served:

Alameda, Los Angeles, Orange, San Diego, Ventura, Fresno, Napa, Placer, San Bernardino, San Joaquin, San Luis Obispo

Repeat Contractor:

Yes No

Union(s): Yes No Teamsters Local 63, Teamsters District Council No. 2

Number of Employees in: CA: 1,401 U.S.: 2,240 Worldwide: 6,100

Turnover Rate: 10%

Managers/Supervisors: (% of total trainees)

10%

FUNDING DETAIL

Program Costs - (Substantial Contribution)

(High Earner Reduction)

= Total ETP Funding

$749,600

$0

$0

$749,600

In-Kind Contribution: 100% of Total ETP Funding Required $1,567,228

Orora Packaging Solutions February 23, 2017 ET17-0415

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TRAINING PLAN TABLE

2 Retrainee

Priority Rate

Job Creation Initiative

Business Skills, Computer Skills,

Continuous Improvement,

HazMat, Mgmt. Skills,

Mfg. Skills, PL-Computer Skills,

Advanced Technology

37 8-200 0 $800 *$13.22

Weighted Avg: 40

*It will be made a condition of contract that the trainees in Job Numbers 1 & 2 will never be paid less than the State or local minimum wage rate as in effect at the end of retention regardless of the wage expressed in this table. The highest minimum wage rate will prevail.

Minimum Wage by County: Job Number 1: Alameda County: $17.63/hr.; Los Angeles County: $16.96/hr.; Orange County: $17.22/hr.; San Diego County: $16.72/hr.; Sacramento County: $16.46/hr.; Fresno, Monterey, Napa, Placer, San Bernardino, San Joaquin, San Luis Obispo and Ventura Counties: $16.16/hr. Job Number 2: Alameda County: $14.69/hr.; Los Angeles County: $14.13/hr.; Orange County: $14.35/hr.; San Diego County: $13.94/hr.; Sacramento County: $13.72/hr.; Fresno, Monterey, Napa, Placer, San Bernardino, San Joaquin, San Luis Obispo and Ventura Counties: $13.22/hr.

Health Benefits: Yes No This is employer share of cost for healthcare premiums – medical, dental, vision.

Used to meet the Post-Retention Wage?: Yes No Maybe Up to $5.23 per hour may be used to meet the Post-Retention Wage (Job 1), and up to $3.41 per hour (Job 2). Other Compensation: Sales Staff may earn commissions ranging from $8.98 to $17.63 per hour to meet or exceed the ETP minimum hourly wage.

**The Company is not in Retail trade. As such, occupations paid by commission do not fall under the Panel’s “Lowest Priority” for FY2016/17.

Job No.

Job Description Type of Training Estimated

No. of Trainees

Range of Hours

Average Cost per Trainee

Post-Retention

Wage Class /

Lab CBT

1 Retrainee

Priority Rate

Business Skills, Computer Skills,

Continuous Improvement,

HazMat, Mgmt. Skills,

Mfg. Skills, PL-Computer Skills,

Advanced Technology

1,000 8-200 0 $720 $16.16

Weighted Avg: 40

Orora Packaging Solutions February 23, 2017 ET17-0415

ETP 130 - Single (05/02/16) 3 of 6

Wage Range by Occupation

Occupation Titles Wage Range Estimated # of

Trainees

Job Number 1 – Retrainee

Administration/Support Staff - 1 108

Administration/Support Staff - 2 112

Customer Service Staff 52

Information Technology Staff – 1 20

Information Technology Staff – 2 8

Managers – 1 40

Managers – 2 35

Manufacturing Staff/Shipping – Receiving Staff – 1 388

Manufacturing Staff/Shipping – Receiving Staff – 2 158

Sales Staff 77

Job 2 – Retrainee, Job Creation

Administration/Support Staff - 1 10

Customer Service Staff 2

Information Technology Staff 1

Manufacturing Staff/Shipping – Receiving Staff 20

Managers 4

INTRODUCTION

Orora Packaging Solutions (OPS), formerly known as Orora North America (ONA) was incorporated in 2013 after the re-organization of Amcor Packaging (USA), Inc. (Amcor). Earlier this year the Company changed its name to Orora Packaging Solutions to better reflect its business line. OPS is a nationwide manufacturing, distribution and logistics company. The Company manufactures corrugated paper products, packing material, janitorial products, shipping supplies, and custom-built corrugated packaging and industrial packaging products. OPS is headquartered in Buena Park. The Company has 21 facilities and employs over 1,400 workers in California.

OPS also maintains operations throughout the United States and Mexico and sells its products to a variety of large and small industries and companies, including Hewlett Packard, Boeing, and Unisys. The Company is eligible for standard, retraining funding at the priority-industry rate as NAICS identified manufacturer. OPS strives for continuous improvement, such as through the implementation of an SAP ERP system. This new system has already been installed at Orora’s international locations and is set to “go live” at the Company’s California facilities in April 2017. In addition, the Company continues to enter new markets and develop new products to maintain and improve its position in its industry.

Orora Packaging Solutions February 23, 2017 ET17-0415

ETP 130 - Single (05/02/16) 4 of 6

This new ERP system will impact virtually every process. The system will require workers to understand their jobs in a new way, as the system redefines roles and responsibilities. Training will focus on implementing the new system, and integrating new team members. PROJECT DETAILS

In its previous ETP project, OPS provided many of the same skills identified below. However, training in this project will be delivered to newly-hired staff and to those employees who did not receive training in the skills during its previous project. Substantial Contribution Orora Packaging Solutions is a repeat contractor (as Orora North America) with payment earned in excess of $250,000 for all 21 California facilities combined within the past five years. However, no single facility earned in excess of $250,000. Therefore, the substantial contribution assessment does not apply. Training Plan Training will take place at the company’s 21 California facilities throughout the state. As noted earlier, it will focus on implementation of the new SAP/ERP system, and changes the system brings to the way workers function in their jobs. Advanced Technology

OPS requests reimbursement at the Advanced Technology rate of $26 per hour for CAD/CAM, Adobe Design Software, and Adobe Illustrator Computer Skills training. These skills will be delivered to Designers (Administrative Staff) who have the necessary experience and aptitude to learn these advanced skills. OPS reports that the hourly cost of training for these skills is $28 to $38 per hour. OPS understands that the trainer-to-trainee ratio is 1:10 for AT, to allow in-depth coverage and personal attention from the instructor.

Business Skills (15%): Training will be provided to all occupations in the following areas: Communication, Project Management, Sales Leadership, and Voice of the Customer. This training will support the Company’s growth strategies and provide the foundation in subjects such as communication skills, customer service and value plus that will provide important foundation skills in the ONA culture. Computer Skills (40%): Training will be provided to all occupations. Training will focus on the new ERP system. However, trainees will also receive skills such as Pocket Margin Profitability Database, Salesforce.com, and CRM (Customer Relationship Management) System. These skills will enable trainees to better perform their jobs. Continuous Improvement Skills (20%): Training will be provided to all occupations. Change Management will be emphasized to help the Company establish a culture that will support innovation and growth and cope with changes during the rollout of the ERP system. New employees will receive training in leadership, problem-solving/conflict-resolution, process improvement, and supply chain management. These skills will also enable the workforce to perform more effectively in team environments, improve and implement new working processes, improve leadership capabilities, and increase product/process quality.  

Orora Packaging Solutions February 23, 2017 ET17-0415

ETP 130 - Single (05/02/16) 5 of 6

Certified Safety Training Hazardous Materials (5%): This training is a series of courses, specific to industry sectors involved in the transport of hazardous materials. The certified series of courses varies in length depending on the industry and the occupational title, as organized in five levels ranging from “first responder” to “incident commander.” In this proposal, training will be provided to Manufacturing Staff/Shipping – Receiving Staff and respective Managers in topics related to the safe handling, shipping/receiving and disposal of hazardous materials. No industry certification will be earned after training is completed. Management Skills (5%): Training will be provided to Managers in topics related to Change Management, Leadership, Financial Management, Teambuilding and other related skills. Training will enable Managers to understand their leadership roles in the organization, lead and direct staff and perform more effectively in their jobs. Manufacturing Skills (10%): Training will be provided to Manufacturing Staff/Shipping – Receiving Staff and respective Managers in topics related to Manufactured Packaging Products (MPP), Equipment Set-Up/Operation, Product Manufacturing and other related skills. Training will enable staff to understand manufacturing requirements, eliminate errors, and perform more effectively in the manufacturing environment. Productive Laboratory PL-Computer Skills (5%): PL trainees may produce goods for profit as part of the training in the courses identified under the Curriculum. The instructor must be dedicated to training delivery during all hours of training, and special attendance rosters will be used to assist in monitoring. PL training will be provided to Administrative Staff, Customer Service, Manufacturing Staff/Shipping – Receiving Staff, Sales, and Managers. Training will focus on the new ERP system. However, trainees will also receive skills such as Pocket Margin Profitability Database, Salesforce.com, and CRM (Customer Relationship Management) System. A maximum of 40 hours per trainee will be delivered with a trainer-to-trainee ratio of 1:1. The hands-on learning will provide the best way to verify competency in the use of the new ERP system and digital printer use. Troubleshooting by the trainer can be conducted in real time and will minimize errors, ensure proper use of equipment and/or software, and minimize potential for misuse or damage to these costly tools. Because trainers will be monitoring live interactions with customers they will be able to provide immediate feedback and corrective action. Retrainee - Job Creation OPS is hiring 37 additional staff to support the ERP implementation. OPS intends to absorb all employees back into the operational areas when the project eventually winds down. These new workers represent the net new hires OPS is committed to training under this project (Job Number 2). In support of job creation, the Panel offers incentives to companies that commit to hiring new employees. Training for newly-hired employees will be reimbursed at a higher rate and trainees will be subject to a lower post-retention wage. To be eligible for reimbursement, the trainees must be hired within the three-month period prior to Panel approval or during the term of contract.

Orora Packaging Solutions February 23, 2017 ET17-0415

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Commitment to Training OPS represents that ETP funds will not displace the existing financial commitment to training. The Company’s current training budget is $130,000 for ongoing training that includes basic job skills, new employee orientation, anti-harassment/diversity, introductory computer skills, ethics, performance management skills, and basic safety skills. Safety training is, and will continue to be, provided in accordance with all pertinent requirements under state and federal law. Training Infrastructure OPS’s management team includes the Manager of Talent Development whose job is to determine the Company’s training needs and ensure that the learning structure can support ongoing employee development. The Company’s Chief Information Officer manages the day-to-day rollout and implementation of the SAP/ERP system and the training activities surrounding the rollout. Two additional internal staff with ETP program experience will be working with California Manufacturing Technology Consulting to ensure proper and timely administration. RECOMMENDATION

Staff recommends approval of this proposal.

PRIOR PROJECTS

The following table summarizes performance by OPS under ETP Agreements that were completed within the last five years when it was still part of Amcor:

Agreement No. Location (City) Term Approved Amount

Payment Earned $ %

ET15-0286 Statewide 9/1/14 – 8/31/16 $624,448 $624,448 (100%)

ET12-0166 Statewide 11/21/2011–11/20/2013

$153,900 $122,178 (79%)

DEVELOPMENT SERVICES

California Manufacturing Technology Consulting (CMTC) in Torrance assisted with development of this proposal. [Note: CMTC is eligible to receive 10% of the approved amount of funding for referrals such as this, under a marketing agreement with ETP, not to exceed $15,000. In this proposal, the fee will be $15,000. This fee does not affect the approved amount of funding.

ADMINISTRATIVE SERVICES

CMTC will also perform administrative services in connection with this proposal for a fee not to exceed 13% of payment earned.

TRAINING VENDORS

To Be Determined

Orora Packaging Solutions ET17-0415

ETP 100 Exhibit B Menu Curriculum (07/07/14) 1 of 2

Exhibit B: Menu Curriculum 

Class/Lab Hours 8-200 Trainees may receive any of the following:

BUSINESS SKILLS Communication Skills Customer Service Skills Procurement Skills Accounting Skills Time Management Skills Customer Relationship Management Skills Project Management Skills Business Writing Essentials Managing Conflict Effective Presentations Sales Force Excellence/Effectiveness Train the Trainer for Sales Cycles Sales Leadership Sales Business Improvement Pocket Margin Profitability Skills Next Generation Product Knowledge Skills

COMPUTER SKILLS

Enterprise Resource Planning (ERP) System Skills – SAP Top Gun Inventory Control System Skills Orora Production Control System Pocket Margin Profitability Database Skills Salesforce.com Customer Relationship Management (CRM) System Skills Orora Distribution System Skills Microsoft Office – Intermediate/Advanced

CONTINUOUS IMPROVEMENT

Research and Development/Product Design Lean Operations Skills Problem Solving/Conflict Resolution Skills Process Improvement Skills Quality Assurance Skills Sustainability Skills

HAZARDOUS MATERIALS

HazMat Skills

MANUFACTURING SKILLS Manufactured Packaging Products (MPP) Quality Processes Equipment Set Up/Operation Product Manufacturing Equipment Operation Electrical Safety Fire Safety

Orora Packaging Solutions ET17-0415

ETP 100 Exhibit B Menu Curriculum (07/07/14) 2 of 2

Safety Training is capped at 10% of a trainee’s total training hours

MANAGEMENT SKILLS (Management trainees only) Change Management Leadership Skills Conflict Resolution Skills Leading Effective Meetings Teambuilding Skills Change Management Skills Financial Management Skills Supply Chain Management

ADVANCED TECHNOLOGY (limited ratio 1:10)

CAD/CAM Adobe Creative Cloud Adobe Captivate

PL Hours 0 – 40 COMPUTER SKILLS (limited ratio 1:1)

SAP Digital Printer

Note: Reimbursement for retraining is capped at 200 total training hours per trainee, regardless of the method of delivery. PL is capped at 40 hours per-trainee.