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CE 082 354

Nilsen, Sigurd R.Registered Apprenticeships: Labor Could Do More To Expand toOther Occupations. Report to the Chairman, Subcommittee on21st Century Competitiveness, Committee on Education and theWorkforce, House of Representatives.General Accounting Office, Washington, DC.GA0-01-9402001-09-0039p.

U.S. General Accounting Office, P.O. Box 37050 Washington,DC 20013 (first copy free, additional copies $2 each; 100 ormore, 25% discount). For full text:http://www.gao.gov/new.items/d01940.pdf.Reports Evaluative (142)MF01/PCO2 Plus Postage.*Apprenticeships; Cooperative Programs; Coordination;Education Work Relationship; *Emerging Occupations; EmployerAttitudes; Federal Government; Federal Programs; *GovernmentRole; Job Development; *Labor Force Development; *LaborNeeds; Partnerships in Education; Postsecondary Education;*Program Development; Program Implementation; SecondaryEducation; State Government; Technical Occupations;Technological Advancement; Unions; Vocational Education

A study identified United States Department of Labor effortsto expand apprenticeship to new occupations and explained impediments toestablishing apprenticeship programs in fields not traditionally apprenticed(e.g., high technology and biotechnology). Labor had not systematicallyidentified new occupations suitable for apprenticeship programs that couldrespond to needs for skilled labor nor successfully alleviated concerns ofemployers about apprenticeship requirements, resulting in slow expansion tonew occupations. Employers' concerns were reluctance to commit to incrementalincreases in wages required by apprenticeship regulations, and no nationalinformation-sharing mechanism. Labor's apprenticeship database wasincompatible with some states' systems; it was unable to measure its progressin expanding apprenticeship and could not readily identify and share itssuccesses with potential sponsors. Six apprenticeship programs wereidentified in which training helped to develop workers with particular skillssought by industry. Key to establishment were close interaction betweenemployers and federal or state apprenticeship officials; apprenticeshiprepresentatives who fostered good communication early in the process andresolved concerns among all parties; and coordination with other federal andstate workforce development efforts to obtain necessary resources. (Summariesof example programs are appended.) (YLB)

Reproductions supplied by EDRS are the best that can be madefrom the original document.

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Espog to As C airman Sub, committeeKet Cezatury Competfit&mess

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U.S. DEPARTMENT OF EDUCATIONOffice of Educafional Research and Improvement

EDUCATIONAL RESOURCES INFORMATIONCENTER (ERIC)

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Contents

Letter

Appendix I

Appendix II

Appendix III

Appendix IV

Tables

Figures

Results in Brief 2Background 3Lack of Systematic Identification of Occupations and the Need to

Allay Employers' Concerns Slow Expansion of Apprenticeships 6Some Apprenticeship Programs That Respond to Current Labor

Needs Have Overcome Impediments 11Conclusions 16Recommendations for Executive Action 17Agency Comments 17

Scope and Methodology 19

Summaries of Example Programs 20

Comments From the Department of Labor 30

GAO Contacts and Staff Acknowledgments 33

Table 1: Occupations Recognized as Apprenticeable, 1996-2000 8Table 2: Apprenticeship Programs Analyzed 12

Figure 1: Registered Apprentices by Industry as of September 30,2000, for 36 Reporting States 4

Page i GA0-01-940 Apprenticeships

AbbreviationsAIMS Apprenticeship Information Management SystemATELS Office of Apprenticeship Training, Employer and Labor

ServicesCompTIA Computing Technology Industry AssociationIBEW International Brotherhood of Electrical WorkersIT information technology

4

Page ii GA0-01-940 Apprenticeships

a.

G A414-Accountability * Integrity * Reliability

United States General Accounting OfficeWashington, DC 20548

September 7, 2001

The Honorable Howard P. McKeonChairman, Subcommittee on 21st Century CompetitivenessCommittee on Education and the WorkforceHouse of Representatives

Dear Mr. Chairman:

In recent years, employers in some industries have faced challengesobtaining workers with specific skills. At the same time, many workershave not mastered the skills that are most in demand in the labor market.One approach to addressing this mismatch between labor demand andsupplythe apprenticeship modelhas been used for decades inconstruction trades and some manufacturing occupations to ensure thatworkers have the skills employers need. Apprenticeship combinessupervised on-the-job training with formal instruction. It benefits bothemployers and employees by providing the skills and knowledge necessaryfor a specific job and a credential recognized throughout an industry.Apprenticeship programs typically last from one to several years and aresponsored by employers who pay an apprentice's wages; the employer orthe apprentice may fund the formal instruction. The use of apprenticeshipis standard practice in some industries, but expansion beyond occupationsnot traditionally apprenticed has been limited.

To promote the apprenticeship model and safeguard the welfare ofapprentices, the Department of Labor established the federal registeredapprenticeship program, in which more than 360,000 apprentices arecurrently enrolled. Labor determines whether occupations in whichemployers want to sponsor apprentices should be approved asapprenticeable. Employers, sometimes with the help of unions and otheremployee groups, can establish and operate programs in those approvedoccupations. Labor or representatives of state apprenticeship councilsdesignated by Labor promote the apprenticeship concept and mustapprove individual programs for them to be part of the federal registeredapprenticeship program.

To address your concern that apprenticeship is not being used as much asit could be to develop a skilled workforce, you asked us to (1) describeefforts Labor has made to expand apprenticeship to new occupations andexplain some of the impediments to getting apprenticeship programsestablished in fields not traditionally apprenticed, and (2) describeexamples of apprenticeship programs that responded to current labor

Page 15 GA0-01-940 Apprenticeships

market needs and how they have done so. To answer your questions, wespoke with Labor officials at headquarters and regional offices about theirefforts to promote the apprenticeship program. We also interviewedfederal and state employees in four statesCalifornia, Indiana,Massachusetts, and New Jerseywho promote and registerapprenticeship programs. We analyzed the approval process for 40 newprograms in these four states and identified and obtained more detailedinformation on challenges faced by six programs in occupations nottraditionally apprenticed. We also spoke with experts and employer andemployee group representatives about how apprenticeship meets labormarket needs. Our work was conducted in accordance with generallyaccepted government auditing standards between November 2000 and July2001. See appendix I for a full discussion of our scope and methodology.

Results in Brief Labor has not systematically identified new occupations suitable forapprenticeship programs that could respond to needs for skilled labor, norhas it successfully alleviated concerns of some employers about therequirements of apprenticeship, resulting in slow expansion ofapprenticeship to new occupations. While the apprenticeship model is notappropriate for all occupations, it can fill an essential need for developingcertain skills in workers. In the last 5 years, Labor has approved 19 newoccupations as apprenticeable and a substantial number of these havebeen in less traditional occupations. For example, internetworkingtechnician and youth development practitioner were both approved in2000. However, these approvals have usually been initiated by employers'requests for apprenticeships, not as a result of Labor's initiative. Labordoes not systematically review occupations and related labor market datato identify occupations with labor needs that would be suitable forapprenticeships. Further, some employers' apprehension about progamrequirements, and Labor's inability to alleviate this apprehension, havebeen an impediment to getting apprenticeships established in occupationsnot traditionally apprenticed. Employers expressed a range of concernsthat made them wary of apprenticeship programs. For example, someemployers were reluctant to commit to incremental increases in wages asrequired by apprenticeship regulations. Labor and state apprenticeshipcouncil representatives often meet with individual employers to addressthese concerns and explain how apprenticeship works, which helpsemployers overcome their uncertainties. However, there is no nationalinformation-sharing mechanism to help employers learn from others whohave established similar programs. In addition, Labor's apprenticeshipdatabase is incompatible with some states' systems; as a result, the agencyis unable to measure its progress in expanding apprenticeship and cannotreadily identify and share its successes with potential sponsors.


We identified several apprenticeship programs in which apprenticeshiptraining helped to develop workers with particular skills sought byindustry. The six examples of apprenticeship programs we examinedallestablished to respond to employers' needs for skilled laborrange fromthose in industries that have had apprenticeships in the past, such asconstruction-related occupations, to those in occupations not traditionallyapprenticed, such as youth development practitioners who advise youthon training and employment. These programs overcame many of theimpediments that employers had identified as reasons for their reluctanceto establish apprenticeship programs. Key to the establishment of severalprograms was the close interaction between employers and federal orstate apprenticeship officials to ensure that employers understood thevalue of apprenticeships. Typically, apprenticeship representatives whodeveloped the program, including apprenticeship staff and unionrepresentatives in some instances, fostered good communication early inthe process that identified and resolved concerns among all parties, suchas unions and employers. In addition, coordination with other federal andstate workforce development efforts to obtain necessary resources wasimportant to getting these programs established.

We are making recommendations to the Secretary of Labor to help theagency expand the use of apprenticeships in occupations not traditionallyapprenticed and improve the apprenticeship program data system. Laborwas provided a draft of this report and concurred with ourrecommendations.

Background Apprenticeship is an employee training approach that combines on-the-jobtraining and formal instruction to teach workers the practical andtheoretical aspects of a skilled occupation. It is appropriate for manyoccupations that require at least 1 year of hands-on training and formalinstruction. Apprentices work under the auspices ofa mentor who is afully trained worker, often called a journey worker. The content and lengthof the apprenticeship training and instruction are determined by the needsof the specific occupation. For employers, apprenticeship helps ensurethat workers learn consistent skills, practices, and safety procedures. Italso can be a way to retain employees because it indicates an employer'swillingness to invest in the worker and ensures regular wage increases ifskills are attained. Additionally, employers are permitted to payapprentices in a registered program less than prevailing wages while theyare working on a federal construction project. At least two states andmunicipalities have similar requirements or mandate that contractorsemploy apprentices on projects. Employees benefit from registeredapprenticeship by advancing their skills and obtaining a credential

Page 3 7GAO-01-940 Apprenticeships

recognized throughout an industry. Apprenticed occupations havehistorically been concentrated in the building trades, metalworking trades,and various repair occupations, as we described in an earlier report.'Figure 1 shows the apprentices as of September 30, 2000, for 36 states thatprovided data on apprentices by industry. Construction and manufacturingapprentices continue to make up the vast majority-82 percentofapprentices.

Figure 1: Registered Apprentices by Industry as of September 30, 2000, for 36Reporting States

Services 1%

Health 2%

Communications/Transportation 2% Other

Manufacturing9%

Source: U.S. Department of Labor

Construction73%

The National Apprenticeship Act of 1937, commonly known as theFitzgerald Act (29 U.S.C. 50), authorized and directed the Secretary ofLabor to formulate and promote labor standards safeguarding the welfareof apprentices and to bring employers and labor together to establishprograms of apprenticeship. The Secretary issued regulations

'See Apprenticeship Training: Administration, Use, and Equal Opportunity(GAO/HRD-92-43, Mar. 4, 1992).

Page 4 8 GA0-01-940 Apprenticeships

implementing the act which provide for registration of apprenticeshipprograms. In order to be registered, Labor requires that an apprenticeshipprogram be in an apprenticeable occupation as defmed in the regulationand meet certain standards. Programs are administered by the Departmentof Labor Office of Apprenticeship Training, Employer and Labor Services(ATELS)2 or by State Apprenticeship Agencies or Council& recognized bythe Secretary of Labor.

The standards prescribed by Labor require that federal registeredapprenticeships must include at least 1 year or 2,000 hours of on-the-jobtraining and a recommended 144 hours of formal instruction. In general,most programs last 3 to 4 years. Each program must meet 20 additionalrequirements, which include a specified minimum age for an apprentice, aspecified term of apprenticeship, a progressively increasing wage schedulebased on skills acquired, safety training, and a minimum ratio ofapprentices to skilled workers. States can impose additional requirementson programs. Program sponsors may also identify additional minimumqualifications that apprentices must possessfor example, a certain levelof education or specific physical abilities needed to perform essentialfunctions of the occupation.

In addition to meeting the prescribed labor standards, an apprenticeshipprogram must be in an apprenticeable occupation to be eligible forregistration. Labor makes this determination based on criteria outlined inthe regulations. Labor can make this determination when a program ispresented for registration or before apprenticeship programs aredeveloped. In the latter situation, for example, an employer may submit alist of the skills needed to complete various tasks in an occupation and thenecessary training to complete these tasks. Typically, Labor thendistributes this list to appropriate industry representatives for feedback onthe occupation's apprenticeability. Once Labor has determined that anoccupation is apprenticeable, it notifies federal and state apprenticeshiprepresentatives who can begin to promote programs within thatoccupation. If an employer decides to establish an apprenticeshipprogram, he or she can work with an apprenticeship representative, eitherfrom Labor or a state council, to ensure that the program complies with

2The regulations specify the Bureau of Apprenticeship and Training; however, under arecent reorganization, responsibility for administation of the programwas assigned toATELS, which includes the Bureau of Apprenticeship and Training.

3In 23 states, Labor administers the federal registered apprenticeship program; in 27 states,Puerto Rico, the Virgin Islands, and the District of Columbia, state apprenticeship councilsadminister the program.

-,Page 5 GA0-01-940 Apprenticeships

Labor's standards and state laws. Frequently, the apprenticeshiprepresentative will help the employer by suggesting various programpractices, providing examples of programs that have been successful, ormodifying the requirements to meet the needs of individual employers.Employers can sponsor registered apprenticeship programsindependently, with a group of employers, or with organized labor.

Despite having an important presence in industry, the federally registeredapprenticeship program operates using relatively little federal money. Infiscal year 2001, ATELS has an appropriation of about $22 million toadminister the program, while state councils run the program with anadditional $20 million.' The employers and apprentices themselvescontribute at least $1 billion for the training. According to Labor, morethan 37,000 apprenticeship programs in about 850 occupations employedabout 360,500 registered apprentices in fiscal year 2000.

Lack of SystematicIdentification ofOccupations and theNeed to AllayEmployers' ConcernsSlow Expansion ofApprenticeships

Progress in expanding apprenticeships to address skill needs inoccupations not traditionally apprenticed has been hampered becauseLabor's efforts to identify new apprenticeable occupations are notsystematic, nor has Labor been able to alleviate some employers'apprehension about program requirements. Instead of proactivelyidentifying occupations in which apprenticeship could help provideneeded skills, Labor has reacted to employers' requests to have theiroccupations recognized as apprenticeable. While some employers take theinitiative to make this request, others are deterred from doing so by theirapprehension about apprenticeship. Employer concerns that haveimpeded the establishment of apprenticeship programs ranged fromstringent program requirements to the increased government scrutiny theymay invite. Apprenticeship representatives working one-on-one withemployers try to allay these concerns; however, Labor does not have acentralized effort to reach out to industry representatives and explain howapprenticeship could be implemented in their industry. Further, Laborcannot identify and share its successes because it cannot fully assess itsprogress in establishing new programs. Its apprenticeship database isincompatible with states' systems, resulting in data that are incompleteand too general to provide information on specific occupations'expansion.

4.An estimate provided by National Association of State and Territorial ApprenticeshipDirectors.

Page 6 1 0 GA0-01-940 Apprenticeships

Labor Lacks a SystematicProcess to ExpandApprenticeship

Labor does not have a formal process to determine how theapprenticeship program could be expanded to meet an increasing demandfor skilled labor or to respond to the technological advances of today'seconomy. Labor has primarily reacted to employers' requests forapprenticeships in new occupations and has allowed industry to take thelead in requesting new occupations. Further, Laborhas not made acomprehensive effort to locate funding for all new apprenticeableoccupations; however, it has recently recognized several occupations thatrespond to evolving labor market needs. In March 2000, at the request of aunion, it approved internetworking technician as an apprenticeableoccupation to respond to the increased need for skilled workers to install,maintain, and operate advanced data networks and their components. InOctober 1999, Labor approved Hotel Associate as an apprenticeableoccupation to respond to increased labor needs in the tourism industryand to help retain workers in a competitive labor market. In a few cases,Labor has been proactive in identifying specific occupations, providingfunding for their development, and encouraging their implementation. Forexample, in the late 1990s, Labor initiated (and approved in 2000) theyouth development practitioner apprenticeship to provide quality trainingfor workers who deliver coMprehensive services to young people andprovided gants for its implementation. In the last 5 years, 19 occupationshave been recognized by Labor as apprenticeable and a substantialnumber of these have been in less traditional occupations. Table 1 lists theoccupations and approval dates for these occupations.


Table 1: Occupations Recognized as Apprenticeable, 1996-2000

Occupation Approved

Safety inspector/technician 1997

Production technologist 1997

Fence erector 1998

Residential wirer 1998

Production finisher 1998

Fish hatchery worker 1998

Coating machine operator I 1998

Mold designer (plastics industry) 1998

Mine inspector (government) (metal-nonmetal) 1998

Mine inspector (government) (coal) 1998

Construction driver 1999

Calibrator (military) 1999

Office manager/administrative services 1999

Undercar specialist 1999

Hotel associate 1999

Electrostatic powder coating technician 1999

Industrial machine systems technician 2000

lnternetworking technician 2000

Youth development practitioner 2000

Source: U.S. Department of Labor

Labor officials recognize the need for Labor to become more proactive inidentifying new occupations as apprenticeable and providing funds for thedevelopment of new apprenticeship programs but, according to theofficials, Labor's efforts in this area have been hindered by resourcelimitations. Specifically, Labor officials commented that staff and fundingshortages have prevented the agency from fully addressing all itsresponsibilities, including marketing apprenticeship programs,coordinating with other partners in the job training arena, and providingtechnical assistance to employers. However, despite their fundinglimitations, Labor has been able to make some progress in developing andexpanding the apprenticeship program. Further, information to help themidentify additional occupations in which more skilled workers are neededand apprenticeship can effectively be used to train workers is readilyavailable. Future plans call for taking a more systematic approach,especially in assessing the labor needs of occupations and determining thepossibility of apprenticeships helping to address these needs.

Page 8.= . 1 2 GA0-01-940 Apprenticeships

Employer PerceptionsPresent Challenges toExpandingApprenticeships

Some employers' perceptions and concerns about the apprenticeshipprogram have presented challenges to expanding the prop-am. In ourdiscussions with apprenticeship representatives and employers from thestates we visited, we were told that employers were apprehensive aboutagreeing to a progressive wage schedule for an apprentice without firstreceiving feedback on how the apprentice was performing both on the joband during formal instruction. Employers were reluctant to commit to aprogram lasting several years, especially in view of uncertain economicconditions and rapidly changing technology. Employers were concernedwith what they considered strict training requirements, such as the 144hours of formal instruction, recommended by federal regulation butrequired by some states. Employers were also concerned about gettinginvolved in a program that they thought would lead to increasedgovernment oversight or scrutiny of their business. Additionally,employers regarded apprenticeship as a "blue collar" approach to trainingthat is inappropriate to their industry.

Employers in some industries, such as high technology and biotechnology,have difficulty envisioning how apprenticeship would benefit them.Apprenticeship officials in several states commented that they have triedto reach out to these industries but have not been successful becauseemployers see difficulty incorporating the apprenticeship structure withintheir industry. The computer-generated imaging industry in California is anexample of an unsuccessful attempt to reach out to art industry by thestate apprenticeship representatives. The need for animators to createcomputer-generated graphics has greatly increased, but is largely project-driven. Workers are needed for a short period of time and then are laid offwhen the project ends, which is not conducive to long-termapprenticeships. State officials suggested that studios adopt theconstruction trade model, where workers are essentially pooled andemployers draw from the pool as needed. Employer reaction was stronglyagainst this model because the motion picture industry did not want toshare workers; the proprietary nature of the work, with companiesoperating in very competitive fields with new technology, made themuneasy.

Labor has efforts under way to reach out to individual employers as wellas to inform the general public about apprenticeship. In developingindividual apprenticeship programs, Labor deals with employers on a one-on-one basis. Although costly, time-consuming, and labor intensive, Laborofficials commented that this approach is very effective at allaying thefears and concerns of employers regarding apprenticeship and wasinstrumental in gaining their support. Many apprenticeship representativesfrom Labor are former apprentices who are knowledgeable about the

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program and can relate to employer concerns. Their approach is to meetwith employers to explain the details of the program and resolve anyconcerns the employer raises. For example, in response to concerns aboutwage progression, apprenticeship representatives might explain the needto increase workers' pay over time, noting that this is not automatic butrather based on a demonstrated increase in skills. To allay concerns aboutthe long-term nature of apprenticeship training, they might describe howthe program provides flexibility in determining the length of the program.Some programs such as the cable television installer apprenticeship are 1-

year programs whereas more complex apprenticeships would be longer,for example, 4 years for a carpenter or electrician apprenticeship. When anemployer expresses concern about increased governmental scrutiny, therepresentative might explain that oversight would not include reviewingother aspects of the operations. Officials commented that once employersfully understand the reasons for apprenticeship requirements, they areoften supportive of apprenticeship and can see the benefit to boththemselves and the employee.

Additionally, Labor has begun an initiative using its current resources tobetter market apprenticeship. In October 2000 Labor started theRegistered Apprenticeship Awareness Initiative, which consisted of avariety of efforts aimed at increasing awareness of and support forregistered apprenticeship beyond the employers. For example, Laborproduced a compact disc to help spread information aboutapprenticeships to employers and potential apprentices. It includesinformation on how to contact apprenticeship representatives, whatresources are available to help set up a program, and the benefits of aprogram. Labor has found this to be a way to conduct outreach, withintheir present resources, to a broad segment of employers and potentialapprentices.

Labor's InadequateInformation SystemPrevents MeasuringProgress and SharingInformation

The Apprenticeship Information Management System (AIMS), Labor'scurrent apprenticeship information system, cannot provide a complete,detailed picture of progress in implementing apprenticeships in new fieldsand cannot be used to assess progress or program development.Apprenticeship officials in 36 states enter data directly into AIMS but theremaining 14 stateswhich have a labor force of 49 million, or 35 percentof the total U.S. labor forcehave chosen not to directly report data to thesystem, do not have access to it, and in some cases provide only summarydata. Detailed information is not included in AIMS for these states, andsome information, such as programs being developed, is not included forany states. The system was developed to provide Labor with capabilities toreport statistical information and track apprenticeship registration, not to


manage the program. Labor hopes that a new system under developmentwill be used by all states so that it can provide information with which tomeasure progress in expanding apprenticeships to new occupations. Laborhas developed specifications for a state-of-the-art AIMS system that can beused by headquarters, regions, and all states. The new system is expectedto provide detailed information, such as data on apprentices who start,complete, or leave the program. The new system is expected to bedesigned by February 2002 and to be operational by June 2002.

Labor lacks a mechanism to share information among all states, whichcould be helpful as Labor tries to expand apprenticeships to less-traditionally apprenticed occupations. Labor does not maintain a nationalinformation-sharing system that provides information on lessons learnedand experiences with these apprenticeships. This lack precludes statesfrom quickly learning of and benefiting from the experiences of others.For example, two states we visited were each working independently todevelop potential apprenticeships within the information technology (IT)industry. They were unaware of similar efforts by the other or by Labornationally. Both were unable to benefit from the other's experiences, andneither was successful in getting an IT-related apprenticeship started.Neither could readily access national information on other states' progressor success at similar efforts. According to Labor officials, such informationis not readily available. Labor officials believe that their system shouldhave more capabilities, such as on-line queries, that would enable thisinformation to be obtained readily. The data gaps and insufficientcapability of the AIMS system further reduce the value of information thatis obtainable on the system.

Some ApprenticeshipPrograms ThatRespond to CurrentLabor Needs HaveOvercomeImpediments

We identified a diverse group of programs for which apprenticeship waschosen as an approach to developing skills needed by an industry. Thepeople involved in establishing these programs overcame difficulties inorder to set up apprenticeship programs. While the programs were atvarious stages of maturity at the time of our study, none had developedquickly; they required much discussion and negotiation among differentparties, and in a few cases their development is still under way. Generally,the start-up effort required additional resources, sometimes provided byemployers and sometimes by Labor. Program sponsors frequently usedinnovative practices, such as on-line training, to respondto the specialcharacteristics of individual programs.

As shown in table 2, the programs we studied represent a variety ofindustries and meet particular labor skill needs. Most of these programswere started in the last decade, and a few are still being established. More

. .

Page 11 15GA0-01-940 Apprenticeships

recent efforts to establish apprenticeships in new occupations haveinvolved reaching out to industries in which apprenticeship is not afamiliar concept and developing a comfort level among potential sponsorsand apprentices. (See app. II for detailed descriptions of the developmentand status of each program.)

Table 2: Apprenticeship Programs Analyzed

Occupation andlocation ofprogram(s)reviewedSound andcommunicationsystems installer,northern California

Productiontechnologist,Shreveport, La., andDenver, Colo.

Childcaredevelopmentspecialist, Indiana,New Hampshire, andVermont

DescriptionInstall low-voltage systems,such as remote controls,burglar and fire alarms, dataand telephone lines, andaudio and video systemsManufacturing workersresponsible for directproduction (for example,assembling products andsetting up machines) andindirect production (forexample, managing materialsand maintaining equipment)Provide direct care tochildren in a center or homesetting

Labor need/objectiveThe union realized the need forskills outside the "electrician"occupation to respond toincreased work on low-voltagesystems.The employer wantedmanufacturing workers to bemore responsive to customerneeds and developed a newoccupation title to bridgeexisting occupations.

Approved Status1987 Began operating in 1993 in

northern California. About1,100 apprentices enrolledand 650 have completed theprogram as of June 2001.

1997 Eight apprentices are in theprogram. Apprentices' skillshave been found to behelpful, but instability inownership of the employingcompany has madeexpansion difficult.

This is part of a federal initiativeto raise skills of childcareworkers throughout the UnitedStates to meet a recognizedlack of skilled workers and lowpay for the profession.

Youth developmentpractitioner, Alaska

Provide employment-relatedservices to youth; forexample, assess youth jobreadiness, assist with jobsearches, and maintain youthcase records

This is a federal initiative todevelop workers able tocounsel youth on employmentand other issues.

Pharmacy technician,Maine andWashington, D.C.

Under supervision,technicians fill orders for unitdoses and prepackagedpharmaceuticals and performother duties, for example,recording drug deliveries andstoring merchandise

Employers recognized a needfor more skilled workers andbetter retention of theseworkers.

1981° A major effort to implementthis program began in thelate 1990s. Programs havebeen established or arebeing established in at least21 states and the District ofColumbia, with over 500apprentices registered.

2000 Apprenticeships are beingestablished at several localand national organizationsand entities. Labor hasprovided some grants forimplementation.

1980° The program is newlyestablished at a few locationswith plans to market theprogram elsewhere.

1 6Page 12 GA0-01-940 Apprenticeships

Occupation andlocation ofprogram(s)reviewedIT technical supportspecialist, national

DescriptionThis program is still beingdefined, but it is expected tofill the need for many entry-level workers in IT technicalsupport--for example, helpdesk specialist, networktechnician, and webdeveloper

Labor need/objectiveThe IT industry associationperceives a need for "hands-on" skills to accompanyindustry certifications and filllabor shortages.

Approved StatusNot yet In May 2001, the association

approved received Labor funds tofinance a workforcedevelopment committee toidentify the apprenticeableoccupation and develop thework processes andrelatedtechnical instruction for theapprenticeship.

'Although this occupation was approved as apprenticeable about 20 years ago, apprenticeships in itwere not available widely until the last few years.

Source: GAO's analysis of data from the apprenticeship programs.

Open communication among employers, employee groups, and theapproving agencies has helped speed up and ensure the establishment ofthese apprenticeship programs. For example, the production technologistapprenticeship was the result of a joint meeting of union and employerrepresentatives. Because the apprenticeship would cross several jobclassifications, such as engineer, machinist, and electrician, some workersand Labor were not enthusiastic about its potential. This conceptwas notimmediately accepted by some local union workers, who were concernedthat allowing these workers to perform tasks that were part of otheroccupations would jeopardize the other occupations. However,discussions involving all parties allayed their fears. Program plannersexplained that the quick availability of production technologists who couldmake small repairs would reduce the production line's lost time, yetmachinists would still be called when more expertise was needed. Theyouth development practitioner apprenticeship also required goodcommunication. Labor officials worked with staff from its Office of YouthServices to hold several forums across the nation to discuss theapprenticeability of the occupation. The exact nature of the positionwasdefined based on information from these forums.

Apprenticeship was initially an unfamiliar concept to the people involvedin establishing some of these programs. However, discussion withapprenticeship representatives helped them to understand its value to theemployers. The responsibility for educating program sponsorssometimes one-on-onetypically fell to the Labor or state apprenticeshipcouncil representatives who marketed the concept. The expansion of thechildcare development apprenticeship from a one-gtate program to anationai one required this type of effort. As part of a national initiative tostrengthen childcare workers' skills, Labor sponsored a nationwide

,3.

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17 GA0-01-940 Apprenticeships

videoconference to discuss the value of childcare worker apprenticeships.Representatives from various state agencies, industry representatives, andapprenticeship representatives participated in the conference, which ledto further meetings to discuss the possible implementation of the programin their states. In the three states whose childcare programs we reviewed,training was developed at the state level, which eliminated the need forindividual employers to develop their own training plans. Apprenticeshiprepresentatives explained the formal training and helped employersunderstand how it would integrate with the apprenticeship's structure.Similarly, the pharmacy technician apprenticeship required educationoutreach. Representatives from the apprenticeship councils in Maine andthe District of Columbia contacted hospitals and pharmacies to convincethem of the value of apprenticeship, particularly in retaining pharmacytechnicians. In Maine, the apprenticeship representative explained howthe progressive wage schedule would be helpful in overcoming theproblem a hospital was having with retaining workers.

Typically, the programs we reviewed required significant resources todevelop and deliver formal training. For example, the development oftechnical courses for the production technologist apprenticeship has costabout $160,000. The employer who provided this money viewed it as aninvestment in high quality training. For the northern California sound andcommunication workers, whose apprenticeship training has been providedby a joint employer/union council, two sources have provided funding fortraining. The employers themselves have contributed $0.30 for each hourthat union employees worked, and the state provided more than $4 perhour from a training fund for each apprentice's classroom time.

For some of the programs, particularly those in industries whereapprenticeship is not common, government funding was provided to payfor program design, as Labor took on responsibility for helping to identifysuch funding. Although Labor's ATELS unit does not have regularappropriations for program design, in some cases Workforce InvestmentAct discretionary funds have been used.' The Congress also appropriated$12 million to bolster Labor's childcare development workerapprenticeship initiative. To date, 20 states and the District of Columbiahave received grants from this appropriation, which they have used forvarious purposes, including subsidizing formal instruction and fundingapprenticeship representatives who "market" apprenticeship to childcarecenters and monitor the on-the-job training. Officials we spoke with in

5The Workforce Investment Act provides employment and training assistance for youth,adults, and dislocated workers through one-stop centers.


three states emphasized the important role that these funds played inmarketing and implementing apprenticeship within the industry. For thenew youth development practitioner apprenticeships that Laborspearheaded, Labor requested grant proposals in April 2001 from entitiesthat wished to receive funds to establish individual programs. About $1.45million will be available for local organizations and institutions, nationalorganizations, and an organization that can provide technical assistance asprograms develop their procedures and curriculum. In May 2001, Laborprovided $550,000 to the Computing Technology Industry Association(CompTIA), an IT trade association, to design an IT technical supportspecialist apprenticeship program. The association will use the funds toconvene industry representatives to identify which jobs and skillsetswithin the IT career clusters would fit the apprenticeship model.

Several sponsors of the apprenticeship programs we studied usedinnovative approaches to meet apprenticeship requirements whileaccommodating unique characteristics of the occupation or industry. Infour of the programs, distance learningformal instruction over theInternet or by videoconferencingwas used or is being developed toaccommodate workers who could not meet with instructors personally.The production technologist position's formal instruction, designed andtaught by university personnel in Illinois, was provided viavideoconferencing to workers at the two participatingmanufacturingfacilities in Shreveport, Louisiana, and Denver, Colorado. New Hampshiresponsored on-line training for the childcare development specialistapprentice mentors (the supervisors of the apprentices) and lent themlaptop computers to enable them to participate in the courses and networkwith others who were mentoring childcare apprentices.

Some of the programs adapted their apprenticeships to accommodateunique characteristics of their occupation or industry. For example, thechildcare industry typically has low wages relative to other industries.Vermont officials decided to use some of their childcare grant funds tosubsidize the wages for apprentices and their mentors, which theybelieved would raise the status of apprenticeship and attract bothapprentices and mentors. In some industries, skill certifications havebecome key elements of workers' credentials, and in some of the programswe studied, the certifications were made part of the training. For example,the sound and communication workers in northern California integrateinto their apprenticeship program the BICSI training, an industry-recognized certification that some contracts require all workers to have.Similarly, CompTIA, a trade association that develops certifications inmany technical aspects of personal computer service, support, and

;

1.4,age 15 19 GA0-01-940 Apprenticeships

networking, plans to offer certification for IT technical support specialistapprentices who pass the formal instruction.

Conclusions Labor has not led a systematic effort to identify apprenticeableoccupations and, therefore, the full potential of apprenticeships may nothave been realized. Some industries with shortages of skilled labor havenot used apprenticeship to meet those needs. Labor has focused its effortsto expand apprenticeship on a few occupations for which skills need to beimproved and shortages exist. Its efforts to identify new occupations forapprenticeship have been largely reactive and, as a result, Labor is notinfluencing the expansion of apprenticeships to industries in need ofskilled training. Instead of being reactive, Labor can take a leadership rolein identifying occupations where apprenticeship can contribute toproviding needed skills, using available information and staff to betterdirect the expansion of apprenticeship nationally. In addition, Labor hasidentified workforce development funds to support some of these efforts,but has not systematically located resources for apprenticeships needingfunds for prop-am design, which could help ensure their success.

Further, Labor has not done an it could to widely disseminate informationabout the apprenticeship program, although doing so would result inemployers overcoming their concerns and wanting to participate. Theagency has not set up a way for program sponsors to share information onlessons learned, such as through online databases that sponsors couldquery, with other employers interested in establishing apprenticeships.Such an information exchange would help potential program sponsorsunderstand how apprenticeship could be beneficial, overcome difacultiesthat may arise in their efforts to establish a program, and alleviateconcerns they have about apprenticeship requirements. For example, thisexchange could allow the classroom training modules and work standardsestablished for programs in one location to inform employers andapprenticeship representatives in other locations. Similarly, a moredetailed apprenticeship database could help people who are consideringestablishing new programs by identifying others who have experience inoperating similar programs. Currently, the database's incompatibility withsome state systems hinders networking and sharing of lessons learnedamong apprenticeship representatives who are working to establish newprograms. It also limits Labor's ability to measure progress on the use ofapprenticeship in newly approved occupations.

2 0Page '16 . GA0-01-940 Apprentkeships

Recommendations forExecutive Action

To expand apprenticeship, particularly into occupations not traditionallyapprenticed, Labor must take the lead in coordinating and promoting thedevelopment of programs. As part of this effort, we recommend that theSecretary of Labor ensure that ATELS

Lead a systematic effort to work with state apprenticeship councils andothers interested to identify apprenticeable occupations that haveshortages of skilled labor and establish plans for promoting apprenticeshipprograms in these occupations,Work with other federal workforce development programs to identifyfunding for developing apprenticeships when additional support is needed,Establish a mechanism for sharing among Labor representatives andemployers information on apprenticeship programs, particularly those inoccupations not traditionally apprenticed, andEnsure that the apprenticeship database contains detailed information oncurrent programs so that accurate and complete information is shared andprogress in meeting labor market needs can be evaluated.

Agency Conmients The Department of Labor commented on a draft of this report, stating thatit agrees with all four recommendations and is planning actions toimplement them (see app. III). Labor plans to have ATELS take the lead inidentifying apprenticeship opportunities for occupations with skilled laborshortages as well as in new and emerging industries. Through enhancedcoordination with other federal workforce investment system programs,ATELS will explore additional fmancial, technical, and communicationssupport for expanding apprenticeship opportunities. To better shareinformation on apprenticeship programs, ATELS has engaged a contractorto manage a major public information initiative, including reaching out togrowth indushies and high-demand occupations. Further, Labor statedthat in redesigning the apprenticeship information management system, ithas begun to make necessary improvements, and expects that the finaldesign will provide accurate and complete information throughout theregistered apprenticeship system.

Page 17 21 GAO-01-940 Apprenticeships

We are sending copies of this report to the Secretary of Labor and otherinterested parties. We will also make copies available to others uponrequest. If you or your staff have any questions about this report, pleasecontact me at (202) 512-7215 or Joan T. Mahagan at (617) 565-7532. Keycontacts and staff acknowledgments for this report are listed in app. IV.

Sincerely yours,

Sigurd R. Nilsen, DirectorEducation, Workforce, and

Income Security Issues

2 2


Appendix I: Scope and Methodology

We took several steps to determine efforts the U. S. Department of Laborhas made to expand apprenticeship to new occupations and to understandthe impediments to starting apprenticeship programs in fields nottraditionally apprenticed. We interviewed Labor officials at the national,regional, and state levels to obtain an understanding of howapprenticeable occupations are identified and how apprenticeshipprograms are registered. We visited four states to discuss how each stateimplements and manages the apprenticeship program, particularly howthey approve new programs. From those programs registered in recentyears; we judgmentally selected 10 programs in each state that addressedlabor market needs or were in nontraditional occupations. We collecteddetailed information on the approval process and any impediments to itfrom the responsible federal or state apprenticeship representative andfrom the employers. We also spoke with members of the FederalCommittee on Registered Apprenticeship, National Association of Stateand Territorial Apprenticeship Directors, as well as trade associations,unions, and other knowledgeable individuals to discuss their roles andobtain their views on expanding apprenticeship to respond to labormarket needs.

In order to describe examples of apprenticeship programs that respondedto current labor market needs and how they have done so, we studied indepth several apprenticeship programs that either had been established orwere being established in occupations that are not traditionallyapprenticed. To identify these, we obtained suggestions from Laborofficials, state apprenticeship council officials, and other knowledgeableexperts in apprenticeship. Our activities in reviewing these programsincluded spealdng to employers, observing and touring a training facility,and speaking to developers of the formal training.

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23 GA0-01-940 Apprenticeships

Appendix II: Summaries of ExamplePrograms

Following are summaries of programs that exemplify efforts to developnew apprenticeships that respond to labor needs.

ProductionTechnologistApprenticeship

Purpose and Description In 1995, high-level representatives of AT&T's wireless telephone facilitiesand the union, International Brotherhood of Electrical Workers (IBEW),met to discuss their mutual concerns about the workforce's capability tomeet the company's needs as manufacturing processes changed. From thatmeeting, development of a new apprenticeship was undertaken in anoccupation called production technologist. Production technologists wereto be responsible for both direct production work on products and forindirect work, such as production planning, routine equipmentmaintenance, and training.

Development of theApprenticeship

Management at the Shreveport, Louisiana, and Denver, Colorado, plantsagreed to implement the apprenticeship with the union. One issue needingresolution was concern that the position involved combining the skills of avariety of different workers, such as engineers, electricians, andmachinists. Some union members believed it would hurt workers inindividual trades if the production technologists worked across trades.However, union management convinced them of the importance ofincluding specific training in the apprenticeship, such as less-complicatedmachine repairs that could reduce production downtime. Labor approvedthe occupation as apprenticeable in December 1997.

The production technologist apprenticeship was developed as an 8-yearprogram. Under the guidance of the Enhanced Training OpportunityProgram, a training program sponsored by both the employer and theunion, Northern Illinois University developed many aspects of theposition, including the training program. Although workers entering anapprenticeship program at the company would normally have expected totake a pay reduction, IBEW representatives believed that woulddiscourage high-quality workers from applying and negotiated with theemployer to pay apprentices their previous salary.

Page 2024

GA0-01-940 Apprenticeships

Appendix II: Summaries of Example Programs

To date, many of the courses have been developed and taught, althoughdevelopment of the work process-specific courses has been expensivetotaling about $160,000 so far. The training developers report that the mostexpensive part of course development is the design of tests that measurethe mastery of critical competencies. Videoconference training has beenprovided to allow workers from the two geographically dispersed sites to"attend" classes at Northern Illinois University, but transitioning to web-based training to reduce telecommunications costs is actively underconsideration. Because of technological changes, the training developersanticipate that some of the courses, such as those on semiconductors andindustrial controls, will need to be updated before they are presented toanother class of apprentices. In total, the apprenticeship will include 17major courses as well as some additional training.

Present Status One challenge to the apprenticeship's continuity is the change ofemployers during the planning and implementation of the apprenticeship.Initial apprenticeship program discussions were with AT&T, the programwas implemented when Lucent owned the production facility, and thedivision was bought out by Avaya. As of May 2001, Avaya was negotiatingthe sale of various manufacturing assets and capacity to another company,leaving the future of the apprenticeship program uncertain. As a result, theproduction technologist apprenticeship program has not expanded sinceits inception, although it was initially conceived as a program that wouldtrain hundreds of apprentices. The training developers report, however,that the eight apprentices in the program have had a major impact on theproduction process. Some apprentices received corporate recognition fortheir novel work on improving production-related processes.

InformationTechnology TechnicalSupport SpecialistApprenticeship

Purpose and Description A trade association of companies and professional members in thecomputing and communications marketthe Computing TechnologyIndustry Association (CompTIA)has recently obtained a grant fromLabor to pursue developing an apprenticeship for workers to provideinformation technology (IT) technical support. CompTIA representatives

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:'25 GA0-01-940 Apprenticeships


had recognized the need for on-the-job experience for these workers.Their research has revealed that companies often must train their ITservice and support staff to meet company needs. Further, almost half ofcompanies surveyed would pay a higher salary to an individual who hadalready completed an industry-sponsored IT service and support acertification program that included hands-on working experience,interaction with customers, and working in teams. CompTIArepresentatives believe these skills can only be developed on the job;students at the postsecondary level often receive technical instruction andsuccessfully test for an industry certification (some of which CompTIAsponsors), but lack the on-the-job experience, thereby reducing theiremployability.


A representative from CompTIA, aware of the concerns about IT staffneeding on-the-job training, heard a Labor Office of ApprenticeshipTraining, Employer and Labor Services (ATELS) staff member'spresentation on apprenticeships at a conference. He realized that theapprenticeship structure could be used to overcome this skill deficiencybut also recognized that the industry had not delineated the occupationswithin the IT service industry and their skill requirements. CompTIAsubmitted a proposal to Labor requesting a grant of $550,000 to exploreregistered apprenticeship as a means of addressing the IT workforceshortage and the lack of on-the-job experience that entry-level IT workersoften have. Labor, recognizing that CompTIA was in a unique position toconvene a knowledgeable team from industry, decided to fund the grant,using monies that the Workforce Investment Act authorized the Secretaryof Labor to set aside for dislocated worker demonstration projects.

Present Status With the Labor grant of $550,000, CompTIA plans to convene a group fromindustry to identify IT occupations that are apprenticeable, the skillsrequired, and the related instruction requirements. CompTIA believes thatwith the 2,000 hours of work experience required under the apprenticeshipmodel, the apprentices would be able to gain the skills necessary toperform many of the entry-level jobs in IT technical support, includingcustomer service technician, help desk specialist, network technician,configuration technician, and web developer. The industry representativeswould also develop the work processes and related technical instructionrequired for the apprenticeship, including certifications identified asnecessary. CompTIA plans to enlist pilot sites to test the apprenticeshipmodel(s) that is developed.

26Page 22 GA0-01-940 Apprenticeships


Sound andCommunicationsSystems InstallerApprenticeship

Purpose and Description In about 1987, the National Electrical Contractors Association and theIBEW operating in Northern California realized that more sound andcommunications installers were needed to meet the growing demand forthe installation of low-voltage systems, such as those used in remotecontrols, burglar and fire alarms, data and telephone lines, and audio andvideo systems. For example, sound and communications installersworking at a grocery store construction site could be installing intercomconnections throughout the store, public address systems, alarms atentrances, electronic locks that could be on timers, data lines from thecash registers, and satellite data link systems.


A joint apprenticeship and training committee hired a training director todevelop the apprenticeship program. The committee identified an existingoccupation title that could be used, and modified the work processstandards to meet their needs. The training director then developedtraining for the program and oversaw its implementation. California'sapprenticeship council approved the apprenticeship program in 1987, andthe first formal training was started in 1993. Funding for the relatedinstruction is obtained from two sources. California provides funds thatcover about 40 to 50 percent of the cost of instructors for training. Thesefunds provide a set amount of money for each hour apprentices spend inthe classroom ($4.37 as of our March 2001 visit). In addition, the 135contractors bound by the bargaining agreement that supports the jointapprenticeship training committee pay $0.30 per hour ($0.60 beginning onSeptember 1, 2001) for each hour worked by individuals they employ whoare under the bargthning agreement.

Present Status The present program requires 6,000 hours of on-the-job training, and 450hours of related formal instruction provided by the joint apprenticeshiptraining committee in facilities that are also used for other IBEW trainingprograms. Instruction ranges from basic courses, such as "Use and Care ofHand Tools" to more technical courses, such as "Certifying the Fiber-OpticCabling System," and includes BICSI training, a certification program on



cable installation. Twice a week, apprentices attend night classes taughtby instructors from the field who have received training on instructing. Asof June 2001, about 650 apprentices had completed the program and about1,100 were enrolled.

ChildcareDevelopmentSpecialistApprenticeship

Purpose and Description Labor has spearheaded a national effort to develop apprenticeships forchildcare development specialiststhose who provide care directly toyoung children. Labor wished to provide a credentialed career path forchildcare providers through registered apprenticeships that would "reduceturnover, increase wages for providers, provide a more stable environmentfor children, and overall improve the quality of early childhood programs.'Although childcare apprenticeships had been implemented in WestVirginia earlier, this effort was in response to a 1997 White House effort tofocus the nation's attention on the importance of addressing the need forsafe, affordable, available, quality childcare.


Using funds provided for this purpose in its budget appropriation, Labormade grants totaling $3.4 million in 1999 and $3.3 million in 2000 to statesto implement this initiative. Interest was aroused within the states and thechildcare industry through a nationally broadcast videoconference hostedby the Secretary of Labor at a cost of $22,000. Although thevideoconference created interest, implementing apprenticeship programsin an industry unfamiliar with the concept involved much coordinationand communication. We discussed implementation of the program withofficials from Indiana, New Hampshire, and Vermont who received first-round grants. In all three states, the next step was to bring together adiverse mix of representativesfrom industry, apprenticeship oversightagencies, and state agencieswho had an interest in childcare. The

'As stated in the February 2, 1999, notice of availability of funds and solicitation for grantapplication for the Quality Childcare Initiative Implementation.


Appendix 11: Sununaries of Example Programs

apprenticeship representatives from the states all reported that severalmeetings were held to reach consensus on what the apprenticeship shouldentaiL One commented that each group had its own jargon, and it tookseveral meetings to develop a common language.

Training was provided in a consistent way to all apprentices in each state.Each state developed a common work process that laid out skills thatshould be addressed in the 2-year on-the-job portion of the apprenticeship.Each state also identified specific courses apprentices could attendfourcourses in Indiana, six in Vermont, and six or seven in New Hampshireand the colleges where they could attend them. In Vermont, the training isfree to childcare providers, and is funded with childcare giant funds; inNew Hampshire, the first course is free to the apprentice, paid for with astate health and human service block grant, and half of the remainingcourses are also free; and in Indiana, some scholarship funds are availablefrom an organization that supports childcare workers. In addition, eachstate has developed or is developing training specifically for theapprentices' supervisors. New Hampshire's program used funds from theLabor grant to develop this training and to buy laptop computers forsupervisors to borrow for participating in distance learning courses.

Because wage rates within the childcare industry are relatively low,Vermont chose to use part of its Labor grant to subsidize wages for theapprentices and their mentors. Apprentices can earn regular increases thatwill raise their wages from $0.25 to $2 an hour over the 2-yearapprenticeship. Supervisors would also receive wage supplements of $0.50to $2 an hour. Vermont representatives are planning how to continue thiswage subsidy after the grant funding ends. They have written a grantproposal to obtain some state Workforce Investment Act funds and havecreated an advisory board that is working toward securing long-termfunding.

Reaching out to childcare centers to encourage them to sponsorapprentices entailed considerable effort in each of the states. NewHampshire used some of its federal grant funds to hire three recruiterswho met with childcare center directors, helped them plan theapprenticeships, and continue to monitor them. One center directorcommented that if she had not had a representative to help develop theapprenticeship program details, she probably would not have pursued theprogram. Responsibility for marketing apprenticeship to childcare centersin Vermont has primarily belonged to the Agency of Human Service,whose staff members have made many direct contacts with centerdirectors. Information Was also provided to the public through anextensive website. Indiana used part of its federal grants to hire a full-time


Appendix 11: Sununaries otExample Programs

project coordinator for the childcare apprenticeship project who recruitsboth employers and apprentices.

Present Status As a result of the implementation of the first round of grant awards to 10states and the District of Columbia, 251 programs registering 527apprentices had been established through January 2001. In addition, asecond round of grants has been awarded to 10 states. Labor anticipatesdistributing a third round in 2001. Recipients of grant awards are requiredto identify ways to sustain the progam once federal funding ends. Stateswe contacted are grappling with this condition and are exploring a numberof options to ensure their program's longevity. Indiana plans to reduce thefull-time project coordinator position to part-time. Vermont is seekingsources of funds to sustain its wage subsidies for apprentices andsupervisors. New Hampshire's Commissioner of Labor has committed tofinding funds to continue to pay for staff to recruit apprenticeshipsponsors.

Youth DevelopmentPractitionerApprenticeship

Purpose and Description Over the last few years, Labor has recognized t,hat an apprenticeship in theyouth work field could provide quality training for workers who delivercomprehensive services to young people. Many resources are committedto serving youth as a result of Labor's youth opportunity grants andincreased emphasis on youth services under the Workforce InvestmentAct. Labor wished to upgrade the field of youth work by developing anoccupation targeted to supporting youth, and believed that apprenticeshipprovided the opportunity to systematically examine and address the needsof the field.


Labor itself spearheaded the effort to defme the occupation of youthdevelopment practitioner and will be supporting its implementationthrough grants. Early on, Labor drafted on-the-job training requirementsand proposed related instruction, and had a focus group comment onthem. Labor held forums around the United States to discuss theapprenticeability of this occupation and incorporated those results intothe apprenticeship description, receiving enthusiastic support for the



apprenticeship. Labor then approved the occupation as apprenticeable andformally established it as an apprenticeship occupation in October 2000.

In April 2001, Labor announced the availability of $1.45 million incompetitive grants to support the dissemination of information, topublicize the occupation and apprenticeship, and to support interestedcommunities in the implementation of the apprenticeship programs. Thesefunds, whose source is discretionary funding authorized under theWorkforce Investment Act, are intended to stimulate and support thebroad implementation of the apprenticeship. In July 2001, Labor awardedgrants to nine entities at the local community level that cart serve asintermediaries to bring together stakeholders to establish and registeryouth development practitioner apprenticeship programs. In addition,Labor awarded three grants to national organizations that have youthprograms employing youth development practitioners. Labor also awardeda grant to the National Council on Employment Policy to establish aclearinghouse of information on practice and curriculum to support localcommunities in developing and implementing their apprenticeshipprograms.

We discussed the planned implementation of a youth developmentpractitioner apprenticeship program in Alaska with a programrepresentative and the ATELS state director. The Cook Inlet Tribal Councilin Alaska recently obtained a Youth Opportunity Program demonstrationgrant to support about 70 staff members who work directly with youth in47 locations. Although they have hired staff with available funding, theyrealize that the level of education and experience among staff membersvaries widely. Most do not have college degrees, and the employeedevelopment director believes the apprenticeship model is a good way toprovide the professional development that staff need. She also believesthat for rural Alaska, apprenticeship is a useful model because it allowsstaff to stay in the community to receive the necessary instruction. Thishelps retain staff who may not return to their communities after locatingelsewhere.

Because the youth development practitioner occupation was not definedspecifically until recently, curriculum needs to be developed for theoccupation, which will cost an estimated $75,000. The Council estimatesthat the development and delivery of training will cost an estimated$300,000 to $400,000. Staff is widely spread throughout the state andinstruction will need to be provided over the Internet. However, many staffmembers are in villages without Internet providers, which necessitatessignificant spending on long-distance connections. The employee

Page 27.- 31 GA0-01-940 Apprenticeships

Appendix Summaries of-Example Programs

development director expects to seek other state funding, possiblythrough the Workforce Investment Boards.

Present Status At the national level, Labor selected 13 entities to receive grants totalingabout $1.5 million. Meanwhile, at the local level, the Alaska tribal council'semployee development director noted that interest in the apprenticeshipamong the council staff was high, and she planned to start theapprenticeships by October 1, 2001.

Pharmacy TechnicianApprenticeship

Purpose and Description We spoke with apprenticeship officials in Maine and the District ofColumbia, who noted that either hiring or retaining pharmacy techniciansis difficult for employers in their areas. Apprenticeships for pharmacytechnicians are either just recently under way or being developed in eachlocation. Pharmacy technicians serve as aids to pharmacists in store andhospital pharmacies, performing such tasks as keeping records of drugsdelivered to the pharmacy, storing incoming merchandise in properlocations, and cleaning equipment.


In the District of Columbia, CVS, a pharmacy chain, was operating atraining center housed at the District's Department of EmploymentServices' center. An apprenticeship representative from the Districtapprenticeship council convinced CVS that they should sponsorapprenticeships for pharmacy technicians to help meet their growing needfor this staff. The apprenticeship representative explained that thestructured on-the-job training and formal instruction would provide thestaff with the necessary skills. A 2-year apprenticeship program wasestablished that requires 144 hours of formal instruction each year.Workers are released from work to attend the training, and CVS providesthe formal instruction.

In Maine, a pharmacy technician apprenticeship program is beingestablished with Maine Medical Center, a large hospital with about 40 staffmembers in its pharmacy department. The hospital had a high turnoverrate for these technicians-42 percent in 2000who often left after theywere trained. After the representative from Maine's apprenticeship councilexplained apprenticeship to the pharmacy department, department



management became convinced that they needed to increase wages. Afteran analysis of comparable wages elsewhere, they decided to raisepharmacy technicians' wages an average of 13 percent, with the entry-levelapprenticeship wage rising from $8.53 to $9.99 and t,he top wage risingfrom $14.99 to $18.64. Management also established training requirements,one of which is for apprentices to take two courses each semester from alocal technical college for which the state will pay $100 per course. Thecollege offers the required courses on-line, allowing other pharmacytechnicians located throughout the state to participate if their employerssponsor apprenticeship programs.

Present Status The courses in the District presently have three apprentices enrolled. InMaine, some apprentices had already started courses but the agreementwith the Maine apprenticeship council had not been finalized as of June2001. A representative from the hospital expected that they would limit thenumber of apprentices to 10. The apprenticeship representative hopes tonow convince other hospitals in Maine to replicate the Maine MedicalCenter's program and is reaching out to some pharmacy chains.

Page-23 3

GA0-01-940 Apprenticeships

Appendix III: Comments From theDepartment of Labor

U.S. Department of Labor

AUG 2 4 2001

Mr. Sigurd R. NilsenDirector. Education, Workforce,

and Income Security IssuesU. S. General Accounting OfficeWashington, D.C. 20548

Dear Mr. Nilsen:

Assistant Secretary thrEmployment and TrainingWashington, D.C. 20210

On behalf of the Secretary of LUbor, we thank you for the opportunity to review and providecomments on the U. S. General Accounting Office (GAO) draftreport, entitled RegisteredApprenticeships: Labor Could Do More To Expand to Other Occupations (GA0-01-940). Thisreport provides a framework for the Employment and Training Administration (ETA) and theDepartment to expand and improve the Registered Apprenticeship System. In an effort to clarifya certain portion of the report, we suggest that you slightly modifypages 5 and 6. We have madeour proposed changes on the enclosed copy of the draft report.

The Department will be taking major steps to address theconcerns in the report. The Secretary'sgoal of providing businesses and workers with skills for the 21e Century will be enhanced by animproved apprenticeship program. The following is ourresponse to you on the fourrecommendations in your report:

I.) Lead a systematic effort to work with the state apprenticeship councilsand others interestedto identify apprenticeable occupations that have shortages of skilled labor and establish plans forpromoting apprenticeship programs in these occupations.

Response

The Department agrees with this recommendation. The Office of Apprenticeship Training,Employer and Labor Services (OATELS) in the Employment and Training Administration(ETA) will take the lead on identifying apprenticeship opportunities for occupations withshortages in skilled labor as well as new and emerging industries. OATELS' goal will be toexpand apprenticeship in high skilled occupations and high skilled industries to help meet 2IeCentury workforce needs.

Using industry and occupational data available from the Bureau of Labor Statistics and state andlocal labor market information, OATELS will be better positioned to identify growth industriesand occupations in demand. In partnership with the Federal Committee on RegisteredApprenticeship, the National Association of State and Territorial Apprenticeship Directors, andstate workforce leaders, the agency will aggressively identify opportunities to expand theapprenticeship system to non-traditional as well as new and emerging occupations.

°RCE .A Proud Member of America's Workiorce Network


Appendix III: Conunents From the Department of Labor

2.) Work with other federal workforce development programs to identify funding for developingapprenticeships when additional support is needed.

ip:ise

Through enhanced coordination with other federal programs involved as both mandatory andvoluntary partners in the workforce investment system authorized by the Workforce InvestmentAct, OATELS will explore additional financial, as well as technical and communications,support for expanding apprenticeship opportunities. Additionally, the agency will facilitateincreased employer and labor involvement in the full array of workforce development programs,including apprenticeship. Full involvement with the public and private participants in theworkforce system will help "mainstream" the apprenticeship system as a vehicle to help meetskilled workforce needs.

OATELS has initiated actions to build strongcr relationships with Workforce Investment Boards,One-Stop Centers, businesses, other federal agencies, and community and faith basedorganizations. Efforts are continuing with national, state, and local workforce developmentagencies highlighting the benefits of the registered apprenticeship system.

3.) Establish a mechanism for sharing among Labor representatives and employers informationon apprenticeship programs, particularly those in occupations not traditionally apprenticed.

Response

OATELS has engaged a contractor to manage a major public information initiative. Theframework for the work plan includes the following:

Conduct research to identify growth industries and new and emerging businesses, necessary skillsets, and needed qualifications;

Develop and test public information materials and strategies for outreach and recruitment ofbusinesses and new partners;

Launch a national public information campaign;

Perform outreach to growth industries, high demand occupations;

Assess effectiveness in increasing the type and number of businesses that sponsorapprenticeships, including persons with disabilities.

This initiative provides for a new and innovative approach for registered apprenticeship in newand emerging industries and develops public information and training strategies to assistemployers to identify and develop high skill training through registered apprenticeship.

BEST COPY AVAILABLE

Page 31

3 5GA0-01-940 Apprenticeships

Appendix In: Comments Prom the Department of Labor

4.) Ensure that the apprenticeship database has detailed information on the current programs sothat accurate and complete information is shared and progress in meeting labor market needs canbe evaluated.

Response

We strongly agree with your recommendation. Aware of weaknesses in our database, we havebegun to make the necessary improvements. The current redesign of the apprenticeshipinformation management system began with the Business Discovery Project conducted by NCRand the subsequent forums conducted through the Apprenticeship Impact Project. The finaldesign, projected to be completed during FY 2002, will provide accurate and completeinformation that will be shared with the Registered Apprenticeship System.

In addition, ETA and the Department will continue to use their Internet sites to share collectedinformation, including program information, marketing materials, and best practices.

I would like to compliment the members of your staff who participated in the project. Theyprovided extremely helpful comments and suggestions on how we can strengthen and improvethe Registered Apprenticeship System.

Sincerely yours

y St

Enclosure

ver Delto-cco


Appendix IV: GAO Cohtacts and StaffAcknowledgments

GAO Contacts Sigurd R. Nilsen, Director, (202) 512-7215Joan T. Mahagan, Assistant Director, (617) 565-7532

StaffAcknowledgments

(205551)

In addition to those named above, Kevin F. Murphy, Corinna A. Nicolaou,Carol L. Patey, and James P. Wright made key contributions to this report.

3 7Page 33 GA0-01-940 Apprenticeships

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