Scores of apprentices hit by City Link collapse

Scores of apprentices were facing an uncertain future over their jobs today following the collapse of parcel delivery firm City Link — just months after it picked up a national award for its training programme.

The company announced it went into administration on Christmas Eve and administrators Ernst and Young warned there would be “substantial” job cuts among its 2,727 staff, while a further 1,000 self-employed drivers and agency workers also expect to suffer.

City Link had 68 apprentices in October, and has trained 178 since 2012, but a spokesperson for Ernst and Young said he was unable to confirm how many apprentices the Coventry-based firm currently had, or whether they would lose their jobs.

The Skills Funding Agency (SFA), which awarded a £57,981 allocation to City Link as an employer provider in 2014/15, has vowed to support any learners affected.

It comes just months after the troubled firm picked up the Training & Apprentices Award at this year’s National Courier Awards. It came in recognition of the company’s commitment to developing the skills of young employees – from front-line staff through to potential managers. It has two training programmes – one in warehousing & distribution and the other in contact centre operations.

During their 12 months of on-the-job training each apprentice acquired “the skills necessary to pursue a career in the transport industry and work towards the nationally recognised NVQ,” according to City Link.

It also claimed to have made a “substantial investment in the scheme, writing all course materials and delivering the training in-house. The course is in line with standards set by awarding bodies”.

“From the first year’s intake alone 27 successfully completed an NVQ level three in leadership & management. Nine of these were later promoted into supervisory, team management and depot management roles,” according to the firm’s press release on the award.

However, a spokesperson for Ernst and Young said administrators had “begun directly informing the company’s employees on the administration and the potential for significant redundancies through a series of employee meetings across the City Link sites”.

He said: “The joint administrators believe that the company will unfortunately have to make substantial redundancies, which will take effect on December 31, 2014, as a result of the company being unable to continue trading and accept further parcels.

“The joint administrators will confirm the number of redundancies across City Link Limited’s sites when all employees have been informed over the coming days.”

He added any affected employees, across the firm’s 50-plus sites, would be offered appropriate advice on claiming redundancy and notice pay, and some workers would continue to be employed to help distribute an estimated 40,000 parcels still in the City Link depots.

An SFA spokesperson said: “We are aware of the announcement about redundancies at City Link. We will be working to ensure that if there are any apprentices affected they are supported to enable them to continue their learning.”

Are you a City Link learning provider? Or apprentice? Email news@feweek.co.uk to get into touch with an FE Week reporter.

College security guard shot while on night-time patrol

A college security guard was shot three times with an air rifle while on night patrol, it has been reported.

The 56-year-old, who has not been named, was hit in the face, bicep and thigh while patrolling Ofsted grade two-rated Manchester College’s Openshaw campus, on Sunday, December 28, according to the Manchester Evening News.

It was reported that just before being shot at around 9.40pm, the guard noticed a red laser light shining at him and went to investigate.

He reportedly found nothing suspicious, but upon turning away, he heard a pellet fly past his head and was then hit three times.

The guard fled the scene and called the police, but despite a search of the 26,000-learner college’s grounds, there was no sign of the culprit.

PC Paul Harrison said: “Understandably the victim was quite shaken up by this incident but I would like to praise him for managing to get himself away from the situation and alerting the police so quickly.

“The investigation is still at an early stage but I would urge anybody with information about this incident to please come forward.“

No one from the college was available for comment.

CBI director general Cridland calls for GCSE ‘abolition’ with participation age rising to 18

The abolition of GCSEs in favour of tests at the age of 18 has been put forward by Confederation of British Industry (CBI) director general John Cridland.

His New Year message, released today, outlines a system of “tailored learning plans” for 14 to 18-year-olds, complemented by the “abolition of GCSEs at 16”.

“Britain’s young people are streetwise and impressive, but our education system doesn’t always serve them well,” said Mr Cridland.

“While the average is gently improving, we see too many left behind, and others who could be high achievers not fulfilling their potential. We need to get the basics right first time in primary school and then provide a personal menu of tailored learning plans for all 14 to 18-year-olds offering high quality academic and vocational A-levels, and encouraging young people to mix and match, depending on what’s right for them.

“This will involve the eventual abolition of GCSEs at 16, as peak level testing would then take place when students are 18.

“By boosting skills we will see productivity rise — along with earnings. And business will play its part by improving competitiveness, and creating opportunities for young people through apprenticeships, and for older workers through workplace retraining.”

The CBI argues that the case for examining at 16 is weakened with the raising of the participation age to 18 — “especially as it perpetuates the single-track, academic approach that weakens our vocational system,” said a CBI spokesperson.

“Instead, we want each young person to have a learning plan, tailored for them from 14 to 18, with the peak assessment taking place at 18. Everyone would do some form of English and maths, plus a mix of academic or vocational A-levels.”

Mr Cridland’s message comes with the countdown to the May 2015 general election well under way.

“A year of change and challenge beckons for us all as we hurtle towards the general election,” he said.

“It has been a successful year for the UK economy, and we have emerged stronger and more able to tackle the challenges ahead.

“Our economy is among those enjoying the fastest growth among the G7 nations, with 1.2 million jobs created this year and employment set to grow in every region of the UK in 2015.

“But the political and economic risks at home and abroad represent a clear and present danger. As the election countdown accelerates, I urge politicians of all hues not to take their eyes off the economic ball.

“We must sustain the best launch pad for the UK economy and our young people. Cementing Britain’s reputation in the world as one of the best places to do business has to be a top priority for 2015.”

He added: “There is much more to do but the signs are positive. UK growth is expected to hit 2.5 per cent in 2015.

“Restoring wage growth will help more people feel that they are benefitting from the recovery, but the upsurge in productivity required will only follow on from increasing skills across the piece.

“I’m optimistic that we can grow living standards, spread the benefit of growth for the country and move forwards with confidence if we make the right choices. Let’s get on with it.”

Apprenticeship dedication earns Jason Holt a New Year honour as 34 FE and skills figures celebrate awards

The author of a 2012 government-commissioned report aimed at boosting apprentice uptake among businesses is one of four FE and skills figures to have received a CBE in the New Year Honours list.

Jason Holt (pictured), chief executive of jewellery firm Holts Group, wrote Making Apprenticeships More Accessible to Small and Medium-sized Enterprises and was honoured in the 2015 awards for services to the jewellery sector and apprenticeships.Barbara-Spicer

His review, commissioned by the Department for Business, Innovation and Skills (BIS) and the Department for Education (DfE), contained 15 recommendations across three main areas relating to communication and raising awareness of the benefits of apprenticeships; empowerment and helping SMEs to get the best from their training providers; and, simplification of ownership and responsibility for the apprenticeships programme.

Mr Holt, an apprenticeship ambassador for the government and founder of Holts Academy, said: “This is an extraordinary honour and something I never thought would come my way. I have always felt as a business owner I needed to act — to do something about the skills gap in our sector.

“I’m always willing to help if I know that I can make a valuable contribution, and to be recognised for that in this way is very humbling.”

Michele Sutton

Former Skills Funding Agency interim chief executive Barbara Spicer (pictured above right), who completed her nine-month contract last month and is currently chief executive of Liverpool-based housing agency Plus Dane Group, also got a CBE, for services to education, learning and skills.

Ex-Bradford College principal and Association of Colleges 2013/14 president Michele Sutton OBE (pictured left) and Burton and South Derbyshire College principal Dawn Ward OBE (pictured below right) complete the sector’s CBE recipients with honours for services to FE [see full list of New Year Honours to people related to the FE and skills sector below].

Ms Ward told FE Week: “I feel deeply humbled by this award but recognise that this is a shared honour. It is shared with everyone that I have worked with and for those people over the years whose lives have touched mine.

Burton and South Derbyshire College principal Dawn Ward will chair its data and management information advisory group.

“I’m extremely fortunate to lead an amazing college with highly dedicated, skilled and professional staff. A college full of talented and vibrant students who will help shape and create our future.

“I’m passionate about the impact further education has on so many peoples lives and very proud of the contribution FE plays in helping shape UKPLC. I’m  immensely proud to be part of this amazing sector.

“I’m indebted to the staff in FE who, when I started my studies, believed in me and my dreams and to my family, friends and colleagues who have encouraged and supported me over the years.”

Simon Rainer, chief executive of the British Jewellers’ Association said: “This honour is a fitting recognition of the enormous contribution that Jason has made to advancing the jewellery industry, both through his determination to ensure the sector had skills for the future and his determination to put apprenticeships on the maps.”

_AND2444Services to skills development and to the food and drink industry earned Nestlé UK and Ireland chair and chief executive Fiona Marie Kendrick a damehood, while 10 OBEs were handed out to people related to the FE and skills sector, with half going to principals including the leader of the first general FE college to be rated as outstanding under Ofsted’s current Common Inspection Framework — Walsall College principal Jatinder Sharma (pictured left).

Among those from outside the college sector to have received the award was Sue Crowley (pictured below right), who was chair of the Institute for Learning from 2006 until its closure this year.

She was honoured for services to FE and teaching and told FE Week: “I’m really, really pleased. It is a lovely way to end my career [following the closure of IfL].

“I think the award recognised my long-term involvement with FE. I taught in the sector for 45 years before my time at IfL, so suppose that kind of justifies it.Sue-Crowley-elected-chair-Ifl-web

“I see it as recognition for all the wonderful people I’ve worked with over the years and the amazing work that our sector does transforming lives through training.”

Rodney Bennion (pictured below left) also got an OBE, for services to construction training and the community in the South East in recognition of his work with the Construction Youth Trust (CYT).

He was chair of trustees for the charity, which helps young people to access training, education and employment opportunities in the construction industry, for a decade before standing down six months ago.Rod Bennion 1

Christine Townley, executive director of CYT, said: “I’m delighted that Rodney has been recognised. He showed great dedication to the Trust over many years and really understands the needs of young people and the wider sector — in particular that training needs to be demand-led and prepare young people for roles that are actually required in construction. We’re really pleased for him.”

There were a dozen MBEs for the sector. Among the recipients was Celia Romain, whose public administration work as a higher executive officer at the DfE/BIS joint apprenticeships unit, was credited by a government spokesperson as having been “instrumental in the reform programme”.

Nicky Berry“We are delighted that Celia has been awarded this well-deserved honour in recognition of her work on apprenticeships,” she added.

Beyond Standards director Nicky Perry (pictured right), who also got an MBE, for services to FE and training, said: “I’m surprised and very pleased by this honour — especially as it seems some good friends and clients went out of their way to put my name forward.”

Sheila Selwood, from the Association of Colleges (AoC) governors’ council and lately director of governance at West Hertfordshire College, is set to receive the MBE for services to FE.

Susan Pember, AoC governance adviser, said: “Sheila is an AoC national subject specialist in governance and has been an excellent clerk for many years and is now supporting several colleges to improve their governance arrangements.”

The honours were rounded off with BEMs, of which seven were related to FE and skills.

 

Dames Commander of the Order of the British Empire

For services to skills development and to the food and drink industry

Fiona Marie Kendrick (Tadworth, Surrey), chair and chief executive, Nestlé UK and Ireland

 

Commanders of the Order of the British Empire (CBE)

For services to education, learning and skills

Barbara Spicer (St Helens, Merseyside), lately interim chief executive, Skills Funding Agency

For services to FE

Michele Sutton OBE (Didsbury, Greater Manchester), lately principal and chief executive, Bradford College, and former president, Association of Colleges

Dawn Patricia Ward OBE (Birmingham, West Midlands), principal and chief executive, Burton and South Derbyshire College

For services to the jewellery sector and apprenticeships

Jason Holt (London), chief executive, Holts Group, and founder, Holts Academy

 

Officers of the Order of the British Empire (OBE)

For services to FE

Colin Booth (Newton Aycliffe, Durham), principal, Barnsley College

Ian Clinton (Kendal, Cumbria), principal, Stockport College, and lately principal, Blackburn College

Jatinder Kumar Sharma (Wolverhampton, West Midlands), principal and chief executive, Walsall College

Frank Leslie Smith (Sheffield, South Yorkshire), chair of governing body, Chesterfield College

For services to FE and teaching

Sue Crowley (London), lately chair, Institute for Learning

For services to education

Maura Regan (Sedgefield, Durham), principal, Carmel College, and chief executive, Carmel Education Trust

For services to training and improvements

David Timothy Marsh (Neilston, Renfrewshire), offender outcomes unit manager, HM Prison Barlinnie

For services to construction training and the community in the South East

Rodney John Bennion (Ashtead, Surrey), lately chair of trustees, Construction Youth Trust

For services to agri-food education

Dr John Damien Fay (Downpatrick, Down), director, College of Agriculture, Food and Rural Enterprise, Northern Ireland Executive

For services to FE in North East Wales

David Baden Jones (Ruthin, Clwyd), principal and chief executive, Coleg Cambria, and lately principal and chief executive, Deeside College

 

Members of the Order of the British Empire (MBE)

For services to FE

Sheila Selwood (Hemel Hempstead, Hertfordshire), lately director of governance, West Herts College, and member, Association of Colleges governors’ council

For services to FE and training

Nicky Perry (Banwell, North Somerset), director, Beyond Standards

For services to FE for adults with learning difficulties

Maryanne Hodgkinson (Buckley, Clwyd), head of arts, media and business administration, Derwen College

For services to skills training

Jean Duprez (London), senior manager, K&M McLoughlin Decorating Ltd, and Ambassador, London Chamber of Commerce

For services to education

Susan Jane Kirkham (Lymington, Hampshire), lately curriculum and assessment specialist, Association of School and College Leaders

Julie Ann McLean (Plymouth, Devon), director, work-based learning and school partnerships, City College Plymouth

For services to young people through the ICT apprentice scheme

Gail Ramsden (Lancing, West Sussex), senior officer, IT skills and capability manager, Valuation Office Agency

For services to apprenticeships in the chemical and process industries

George Ritchie (Peterlee, Durham), lately senior vice president, Sembcorp UK

For services to the hairdressing industry

Shirley Rose Davis-Fox (Mid Glamorgan), chair, ISA Training, Bridgend

For services to public administration

Celia Romain (London), higher executive officer, joint apprenticeships unit, Department for Business, Innovation and Skills & Department for Education

For services to FE in Northern Ireland

Celine McCartan (Omagh, Tyrone), deputy director, head of corporate and support services, South West College

For services to education in Northern Ireland

William James Greer (Banbridge, Down), Head, Training Organisation, South Eastern Regional College

British Empire Medal (BEM)

For services to education

James Jackson (London), head caretaker, Woodhouse College, London Borough of Barnet

For services to FE and to the community in Leicestershire

Anne Williams (Loughborough, Leicestershire), lately community development officer, Loughborough College, and borough councillor, Charnwood

For services to further and higher education and to the community in Cornwall

Alan Lemin (Millbrook, Cornwall), head of student recruitment, Plymouth College of Art

For services to prison education

Wendy Ann Sherlock (Watford, Hertfordshire), curriculum co-ordinator for further and higher learning, HM Prison The Mount

For services to horticulture and land-based education

Christopher James Willder (Melton Mowbray, Leicestershire), groundsperson, Brooksby Melton College

For services to adult education

Sharon Tinn (Ellesmere Port, Cheshire), learning in the community worker, Ellesmere Port, Cheshire

For services to education and training in the construction sector in Wales

Ann-Marie Smale (Ponthir, Gwent), director, Powell Dobson Architects

 

Are you in FE and skills sector and on the list for 2015? Send your comments to news@feweek.co.uk

Aerospace firm fined £24k after apprentice breaks arm in machine

An aerospace company has been fined after an apprentice was severely injured when his right arm got caught in machinery.

The case was before Bournemouth magistrates on December 17, when the court heard that apprentice machinist Adam Harris, aged 23, suffered multiple breakages to his arm and could be left with a permanent disability after it became caught in an unguarded milling machine on March 11, last year.

Bournemouth-based Magellan Aerospace was fined £24,000 and ordered to pay £10,157 in costs after admitting one count of breaching its general duty to an employee under the Health and Safety at Work Act 1974, and a second count of failing to take effective measures to prevent access to dangerous machine parts on and before the incident.

A Health and Safety Executive (HSE) investigation found that although the machine was fitted with guards, they did not interlock properly and were routinely removed to deal with large workpieces.

Annette Walker, HSE inspector, said: “Mr Harris has been traumatised at a very early stage of his working life and has suffered great pain in this incident.

“It could have been avoided had Magellan Aerospace fitted interlocks to stop the movement of dangerous parts and properly supervised the work, particularly in view of this young man’s level of experience.

“There can be occasions where workpieces that could be completed on the machine might pose challenges to normal safeguarding arrangements.

“However, the solution is not to simply remove the machine’s guards and rely on the operator’s skill.”

Despite Mr Morris’s injuries, the company continued to use the machines without guards until HSE issued enforcement notices requiring them to take action, the court heard.

Magistrates were also told the company had a history of non-compliance in respect of milling machine guarding having received HSE enforcement notices in the past.

Former principal chosen to lead ETF review of non-GSCE English and maths quals

Former college principal Professor Ed Sallis will lead a taskforce looking at teaching and accreditation of maths and English for learners unable to reach D grade GCSE, the Education and Training Foundation (ETF) has revealed.

Professor Ed Sallis, OBE
Professor Ed Sallis, OBE

Professor Sallis, who was principal of Jersey’s Highlands College from 1997 to 2012, will chair the seven-member steering group, announced at the Association of Colleges (AoC) annual conference last month by Skills Minister Nick Boles. The taskforce will not be reviewing GCSEs, rather, their alternatives, including Functional Skills — already the subject of an Ofqual review.

It comes as learners who record a D in English and maths at GCSE will, from next year, have to retake in pursuit of an improved grade, while those who get an E or below can try alternative qualifications in the hope of getting a C grade equivalent.

Professor Sallis, a former director of the Centre for Excellence in Leadership who served as deputy principal at City of Bristol College between 1989 and 1997 and was awarded an OBE for services for education in 2010, said: “I am delighted to accept the role and excited about getting started in the new year. This is a great time to be working with a wide range of experts to look at what type of skills people need and expect in terms of English and maths, and recommending how English and maths qualifications could be improved.”

An ETF spokesperson said it had not yet agreed how much Professor Sallis would be paid, but the top rate on offer is in excess of £600 a-day. Professor Sallis is expected to work for the ETF two days a-week from next month until the review is completed, which is expected to be in March.

Expressions of interest in the role were sought via the ETF website, which called for a “professional of national standing” with a “track record of independence and impartiality,” in addition to chairing experience and the ability to “speak with authority and command the respect of people with conflicting view points”.

The deadline for expressions of interest was last Friday, and Professor Sallis was chosen by ETF chief executive David Russell and professional standards and workforce development director Helen Pettifor.

The number of applicants was not disclosed by the ETF, but a spokesperson said that nobody else was interviewed “because [Sallis] was the only candidate whose application fulfilled all the criteria”.

Mr Russell said: “Non-GCSE maths and English is a vital topic which materially affects millions.

“I have been exceptionally pleased with the very positive response we’ve had to the announcement of our role in leading this review.

“It’s a challenge to galvanise the necessary expert groups from across the sector and employers in time to meet the very demanding timescale of the review, but we are confident we can achieve this.

“We are keen to quickly progress this important piece of work, and I am delighted that we have succeeded in securing such an eminent professor to chair and lead it.

“Our steering group and delivery partner will be operational in January, and we are on track to deliver the review for the benefit of everyone learning and working with maths and English.”

The three ETF owners — the AoC, the Association of Employment and Learning Providers and adult learning providers network Holex — will each nominate a steering group member from within, with the remaining three members nominated by the Confederation of British Industry, the Federation of Small Businesses and the UK Commission for Employment and Skills.

The nominating organisations will be reimbursed for any costs incurred by the involvement of their nominees and the administrative costs of the project will be met by the Department for Business, Innovation and Skills.

Apprenticeship pay survey report released – with reaction

Younger apprentices are being hit hardest by minimum wage non-compliance with nearly a quarter not getting the right pay levels last year, a government report has revealed.

The Apprenticeship Pay Survey 2014 indicates that 24 per cent of apprentices aged 16 to 18 and learning at levels two and three were paid less than the apprentice minimum wage, which was £2.68 an-hour at the time of the survey, but rose 5p from October.

The report says: “Younger apprentices were more likely to be earning less than the national minimum wage (NMW), with nearly a quarter (24 per cent) of level two and level three 16 to 18-year-olds having non-compliant pay levels, compared with 20 per cent of 19 to 20-year-olds, 17 per cent of those aged 21 to 24, and 8 per cent of those aged 25 or older.”

Overall, 14 per cent of apprentices of all ages and at all levels were paid less than the minimum wage, down from 29 per cent last year. It also showed that, while 94 per cent of apprentices had heard of the minimum wage and three fifths were aware there was a specific one for apprentices, just 26 per cent said they knew what the rate actually was.

The report also says: “Reducing non-compliance with the is a priority for the government. There are campaigns in place to increase awareness, for example in England the apprentices minister writes to all new apprentices informing them of their NMW entitlement.

“There are resources dedicated to dealing with cases of underpayment, notably the Pay and Work Rights Helpline. More information about the action being taking to reduce levels of non-compliance can be found on the gov.uk website.”

The report, based on 10,000 interviews with level two and three apprentices and 850 level four and five apprentices across England, Scotland and Wales, shows that earnings varied “widely” by framework, with the mean total weekly pay highest among level two and level three apprentices on the management framework (£393) and lowest (at £152) in the hairdressing framework.

It shows that 15 per cent of all level two and three apprentices were paid below the NMW. Non-compliant pay was more common among apprentices in hairdressing (42 per cent), children’s care (26 per cent) and construction (26 per cent).

It also showed that just 26 per cent knew or claimed to know the actual minimum wage rate for apprentices.

Of those surveyed, 36 per cent of 16 to 18-year-olds already worked for their employer before their apprenticeship, increasing to 42 per cent of 19-20 year olds, 64 per cent of 21 to 24 year olds and 93 per cent of those aged 25 or older.

It says 18 per cent of level two and three apprentices who worked overtime were not paid for any of their overtime hours, equivalent to 11 per cent of all those at level two, and the mean number of unpaid overtime hours was 4.6, up from 4.4 in 2012.

In a separate document, the Apprenticeships Evaluation: Learners report, it was also revealed that as many as 30,000 apprentices (4 per cent) had not  had not received any formal or informal on or off-the-job training during their contracted working hours.


Live reaction


Federation of Small Businesses (FSB)

John-Allan-e96National Chairman John Allan said: “We would like to see apprentices earning more, and we support increases to the apprentice minimum wage  to narrow the gap with the youth rate. However, we recognise that this change must happen gradually to minimise the impact on employers. Any sudden rise may leave small firms in particular unable to afford the rate and prevent them from hiring apprentices.

“Over a third of small businesses find the apprenticeship and minimum wage system confusing and the government should do more to improve their understanding. To support businesses and ensure compliance, we would like to see clearer and more accessible guidance that is promoted widely across the business community.”


 

Confederation of British Industry (CBI)

Rob WallRob Wall, head of education and employment policy, said: “Apprenticeships are an important way to help young people build the knowledge and practical experience they need to be successful in work and life as well as delivering the skills business needs to be competitive.

“The rules setting out the National Minimum Wage apprentices are entitled to are clear. Where this is deliberately ignored businesses should feel the full force of the law.”

 


 

Labour Party

Liam Byrne headshotLiam Byrne, shadow minister for skills, said: “These figures show the cold facts behind the government’s warm words on apprenticeships.

“Almost a quarter of young apprentices are paid less than the minimum wage.

“This Tory-led coalition lacks a proper plan to build real earn-while-you-learn routes that lead to to decent jobs.”

 


 

National Hairdressers’ Federation (NHF)

Hilary Hall HeadshotChief executive Hilary Hall said: “The NHF is dismayed by these findings and the poor light it throws onto hairdressing as an industry.

“We have worked very hard to raise awareness of the NMW rate for all ages, including apprentices, with members and throughout the industry as a whole.

“While the statistics are still unacceptably high, they have improved since the 2012 survey where non-compliance within hairdressing was a staggering 69 per cent.

“In our experience, if salon owners are not paying the NMW, it’s nearly always related to apprenticeships because of age differences.

“The problem for salon owners is that there are not only different rates for under 18s, 18 to 20-year-olds and 21 and over, but different rates again for apprentices which vary depending on whether the learner is under 19 or in their second year of an apprenticeship programme.

“It’s a ‘perfect storm’ for salon owners because they typically take on young people aged 16 or 17, and often they’re doing an apprenticeship as well.

“It means salon owners have to know when their workers have birthdays, especially the birthdays which trigger a change in their payment in rates, and keep track of when apprenticeships are completed.

“And as micro-businesses, salon owners don’t have HR and payroll support in the way that larger businesses do.

“We will continue to warn our members and the wider industry that hairdressing businesses will be specifically targeted by BIS. Paying the NMW is a legal requirement and the consequences of breaking the law will be much tougher with big fines for non-compliance.”


 

Association of Employment and Learning Providers (AELP)

Stewart SegalChief executive Stewart Segal said: “AELP has always condemned the payment of wages lower than the apprentice minimum wage but a lot of identified cases can have arisen due to the complexities of the minimum wage framework and issues surrounding the collecting of accurate data. All AELP members work closely with employers to try and ensure that businesses meet the legal requirements.

“We would welcome an increase in the minimum apprentice wage but we would understand if a small differential was maintained between the apprentice rate and the national minimum wage.

“The publication by BIS of this latest data is welcome following its encouraging research findings last week on the labour market returns from gaining an apprenticeship.

“Given that the average hourly wage paid to a level two or three apprentice is nearly £4 above the minimum apprentice rate in the first year and that the first year average is higher than the overall national minimum wage, these figures expose as a myth that apprentices are being exploited.

“It’s interesting to note too in the context of perceived low pay professions that apprentices at levels two and three in the hospitality and retail sectors are earning on average above £6.85 an hour which is higher than the NMW.

“And overall, the average pay for apprentices aged under 21 compares very reasonably with the national minimum wage rates for the younger age groups while apprentices are also benefiting from a high quality training programme that can significantly enhance their career prospects.

“Today’s data doesn’t show separate figures for levels two and two, but last week’s BIS research showed a 11.5 per cent employment premium return for level two apprentices and in our view, opinion-formers should think twice when they see both sets of findings before advocating that apprenticeships should be only at level three and above, especially when level two apprenticeships are providing sustainable employment for many young people.

“Opinion-formers should bear in mind as well that CBI is a backer of intermediate apprenticeships.”


Trades Union Congress (TUC)

Frances_O'Grady_Cropped_CMYK1General secretary Frances O’Grady said: “The report exposes some shocking abuse, with many apprentices being paid less than the legal minimum. It’s particularly bad in sectors where more women work, such as hairdressing where more than a third of apprentices are underpaid, and childcare where a quarter are underpaid.

“Younger apprentices are the most likely to be treated badly, with nearly a quarter of them paid below the minimum wage.

“Some employers may be making genuine mistakes, but there are worrying signs that some apprentices are simply being exploited as cheap labour. Apprentices are a real asset to employers and deserve to be properly valued.

“The TUC strongly supports quality apprenticeships and is concerned that such widespread abuse of minimum wage rules might put young people off from fear of exploitation.

“The government must make apprenticeships a priority for minimum wage enforcement action and should withdraw training funding from employers caught cheating their apprentices out of pay.

“Enforcement would be made easier to achieve if the rules for apprenticeship minimum wages were simplified and increased to the same level as for other young workers.”


Department for Business, Innovation and Skills (with Q&A)

BISA spokesperson said: “Apprenticeships offer people the chance to get the skills they need to make a success of their careers and participate productively in the country’s workforce. The government announced the two millionth apprenticeship start in this Parliament just last week.

“With the economy on the road to recovery, all workers – including apprentices – should be able to share in the proceeds of growth. The Business Secretary Vince Cable has written to the Low Pay Commission outlining proposals to simplify and boost the national minimum wage for apprentices. Based on the current national minimum wage rates for 16 to 17-year-olds, the proposal would give around 31,000 apprentices in the first year of their programme a pay rise of more than £1 an hour, rising from £2.73 to £3.79 per hour.

“The government is cracking down on employers who break the law by not paying the minimum wage. We are naming and shaming offenders and increasing penalties. Any apprentice who believes they are not getting the minimum wage that they are legally entitled to should contact the Pay and Work Rights Helpline on 0800 917 2368 to get free confidential advice.”

Q&A

Why does BIS not currently name and shame apprentice minimum wage non-compliers, and does it plan to change that policy?

“We have named employers who have failed to comply with the apprentice minimum wage – but we are not able to specify where that non-compliance relates to an apprentice.

“The Notice of Underpayment issued to an employer by HMRC following the identification of underpayments of the NMW does not differentiate between underpayments to workers and apprentices.

“It is therefore not possible to provide information on the number of employers who have faced a penalty for non-payment of the apprentice NMW since March 2014, as HMRC do not hold this information.”

How does BIS respond to the fact non-compliance is higher than average in hairdressing (42 per cent), and children’s care (26 per cent)?

“We have asked the Low Pay Commission to simplify the apprentice NMW rates, the current complexity is one of the key factors we believe causes non-compliance

“HMRC are about to begin a campaign solely focusing on hairdressing, which will include guidance and enforcement.

“We will be using the results of this survey to inform our sector-specific work at BIS– ensuring that we focus on those sectors where compliance is most problematic. This proactive work will range from awareness raising and promoting compliance, to targeted enforcement work.”

Can you respond on the fact younger apprentices were more likely to be earning less than the NMW?

“We know that there are a number of reasons for non-compliance with the NMW in relation to apprentices – including mistakes made by employers in relation to how the apprentice NMW rate applies and employers not paying the minimum wage for time the apprentice spends training.

“We are taking steps to improve compliance and will use the evidence provided in this report to build on our understanding.”


National Union of Students (NUS)

NusAn NUS spokesperson said: “These figures are unacceptable. We’ve long known that apprenticeships are fantastic for businesses, personal careers and creating opportunities for both employers and apprentices, but unfortunately the fact is that vocational study and apprenticeships still aren’t viewed with the same esteem as other routes of education.

“These figures also confirm what we have been saying all along about the gendering of poverty pay – traditionally male apprenticeships such as engineering have better wages, more classroom time, and more on the job training than traditionally female apprenticeships, such as hairdressing and childcare positions. The very best apprenticeships are doing what they can to combat this, but this kind of quality should be standard practice, not a luxury for the lucky ones.

“The low wages paid to apprentices stack up problems in other areas of their lives too. They have little disposable income and let’s not forget that many have to pay to travel to work or training. Apprentices pay an average of £24 on travel, with many paying significantly more. We’ve heard stories where apprentices are only paid for the four days they are in work but not for their off the job training. How can anyone expect to live a decent life on such a low income?

“We need more than just naming and shaming. We need a clampdown on those who are choosing to exploit hardworking young people trying to get their foot on the career ladder.”

 


National Institute of Adult Continuing Education (Niace)

David-HugheswpChief executive David Hughes said: “These figures are a cause for concern, especially as the government is now putting more power into the hands of employers. It’s wrong that apprentices aren’t even being paid the minimum apprentice wage.

“While there is cross-party agreement that apprenticeships are the answer to youth unemployment, today’s figures clearly show that for many apprentices, the quality of the Apprenticeship is clearly not what it should be.

“This is why, in our manifesto, we have called for the introduction of an apprentice charter.

“This will be a clear commitment from employers that their apprentices are given the best possible experience, providing them with a solid foundation – not just for their current role – but for the rest of their career.”

 

 

 

 


The Association of Colleges declined to comment.

Education Secretary Nicky Morgan to face MPs on careers advice

Education Secretary Nicky Morgan is set to be grilled by MPs over the government’s record on careers advice.

She is due before the House of Commons Education Committee on Wednesday, January 7, for a one-off session exploring government action on the issue.

The committee is expected to follow-up on its January 2013 report on careers advice, which warned it had “concerns about the consistency, quality, independence and impartiality of careers guidance now being offered to young people.” The report also said the decision to make schools responsible for careers guidance in 2011 was “regrettable”.

The government, at the time, argued that changes needed more time to “bed in and evolve,” but Ms Morgan will be expected to account for progress since the committee’s report.

News of Ms Morgan’s appearance before the committee, announced today, comes after she revealed plans for a dedicated careers company to support schools in offering careers advice and broker relationships between schools and employers.

The company is expected to be funded initially through the £20m set aside by Chancellor George Osborne in this year’s autumn statement but will eventually form a £5m investment fund to support its work.

Ms Morgan appeared in front of the committee earlier this month as part of its investigation into exams for 15 to 19-year-olds in England on Wednesday (December 3).

UCU rules out further strikes over 2014/15 pay deal

The University and College Union (UCU) has ruled out further strikes over this year’s pay offer for FE, but claims industrial action remains “part of its armoury” for next year’s bargaining.

Delegates at a special FE sector conference on Saturday voted against further action over the offer of a 1 per cent pay rise.

It comes after a planned strike on October 14 was banned by the High Court and after the Association of Colleges (AoC) announced plans to proceed with its pay offer, which includes removal of the lowest pay grade, a 2 per cent rise to £7.65-an-hour for staff on the lowest remaining grade and a 1 per cent rise for all other grades, without the UCU’s consent.

Michael Macneil
Michael Macneil

In a letter to members, UCU national head of bargaining and negotiations Michael MacNeil, said: “Delegates discussed developments in the dispute over the 2014/15 pay offer and decided that ‘for tactical reasons’ we should not call industrial action on the 2014/15 claim but should instead focus on implementing an effective strategy for the 2015/16 bargaining round (due to start in February).

“Conference agreed that UCU must retain industrial action as part of its armoury to fight for better pay and improved terms and conditions for its members but the majority of those present questioned whether the current approach and ballot made tactical sense.

“Delegates voted for a new approach to support meaningful national bargaining in England. The outline of a targeted and strategic method had been presented to the FE committee and to branch officers at regional briefings held around the country in the last month.

“This approach includes submission of a joint trades union national cost of living claim together with a claim that addresses workload matters. This claim will be submitted to the AoC by the end of February.

“At the same time a template of the national claim will be made available to branches via their regional office for parallel local submission, with branches able to involve their members in the selection of local issues which are important to them which can be the subject of additional points to a local claim. As examples, a branch may choose to include issues such as lesson observations, zero-hours contracts or tackling the misuse of associate lecturers.

“To be clear — there will still be a national claim presented to the AoC with the other unions and national campaigning on pay will continue but there will also be a nationally co-ordinated approach to parallel local negotiations with an acceptance that these could provide a different way of providing members with overall financial benefit and/or an improvement on other conditions of employment.”

Martin Doel, chief executive of the AoC, said: “Strikes are very disruptive for colleges and more importantly for students, so we are pleased that UCU has decided against any further strike action. We look forward to productive discussions around the national pay offer next year.”