May 30, 2008

Armstrong Report

Findings of the Compulsory Certification review

Consultant Tim Armstrong recently completed his review of a proposal to expand compulsory certification for individual trades. Here are some of his key findings.

Apprentice Registration, Completions and Health and Safety

“There is a strong probability that registration and completion rates in compulsory trades are and will remain greater than those in the voluntary trades.

“The resulting overall increase in health and safety training should result in better health and safety performance in compulsory than in voluntary trades. This assumes that health and safety training continues to be a component of the standards for the compulsory trades.”

Consumer Protection

“There is a lack of hard evidence as to whether consumers have greater protection when trades are made compulsory. Instinct, supported by experiential evidence from a number of stakeholders, supports the inference that the tendency will be for enhanced consumer protection if work is performed by a compulsorily-certified tradesperson.”

Economic Impacts

“Compulsory certification is likely to lead to higher wages within the affected trade. However, the net cost to employers is almost certain to be lessened when certain offsetting items are factored in: productivity gains, retention benefits, reduced risk of skill shortages and improved health and safety.”

Armstrong also listed factors that may be relevant in assessing applications for compulsory trade status:

• Limitations on labour supply that could result if journeyperson/apprentice ratios are too stringent or inflexible.

• Lack of functional complexity or low safety hazards associated with the performance of the trade.

• Unique features and conditions of a particular sector or some portion in which the trade operates.

• Descriptions which could cause mobility problems for a worker, for example, workers moving from declining industries to the construction sector.

— VINCE VERSACE

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