0095 Motor Trades Association Of Australia

General information

Submitterʼs name
Motor Trades Association Of Australia
Submitted on behalf of
Professional body or industry association

About the submission

Is your organisation an Approved Sponsor for any of the following programs?
  • Temporary Work (Skilled) (Subclass 457) visa program
  • Employer Nomination Scheme (Subclass 186) visa program
  • Regional Sponsored Migration Scheme (Subclass 187) visa program
  • Labour agreements
No
Are you an Australian assessing authority for migration purposes?
No
Please select the industry your submission is in relation to. If required, you may select multiple industries.
Professional Scientific and Technical
Do you have a particular regional interest? If required, you may select multiple regions.
National

Responses

1. Do you consider that occupations need to be added to or removed from the Medium and Long-term Strategic Skills List (MLTSSL)?

Added to MLTSSL

What occupations should be added to the Medium and Long-term Strategic Skills List (MLTSSL)?

Please also include occupations that you propose should be moved from the Short-term Skilled Occupation List (STSOL) to the MLTSSL.

324211 Vehicle Body Builder
324212 Vehicle Trimmer
324311 Vehicle Painter

Please outline the evidence or data that would support these occupations being added to the MLTSSL.

The ‘Directions in Australia’s Automotive Industry (2017): An Industry Report 2017’ was a comprehensive analysis of the Australian Automotive industry undertaken by MTAA and its member associations using ABS and industry sourced data. MTAA is concerned that the significant staff shortages highlighted in this report and the adverse impact these shortages are having on businesses and consumers that are not being adequately addressed by Government.

This report showed that almost half (45.7%) of the 69,365 automotive businesses are experiencing skills shortages. It showed that in 2017/18 there was a shortage of 35,083 automotive workers and this is projected to remain high in 2018/19 with a shortage of 31,202 workers. This shortage particularly adversely affects businesses involved in automotive repair and maintenance (including motor body repair) which accounts for 54% of automotive businesses. For example, there was a shortage of 2,985 vehicle spray painters in 2017/18 with a shortage of 2,653 projected in 2018/19. There was also a shortage of 162 vehicle trimmers in 2017/18 with a shortage of 144 projected in 2018/19. Furthermore, there was a shortage of 110 vehicle body builders in 2017/18 with a shortage of 70 projected in 2018/19.

Without addressing automotive skills shortages, the $37.1 billion contribution to the Australian economy by the automotive repair industry (or 2.2% of Australia’s GDP) is threatened. The productivity of the 91% Australian businesses that utilise the goods and services of the automotive industry as intermediate inputs towards the value of their own production is also threatened.

There are approximately 11,000 students commencing automotive trade training each year which is insufficient to address shortages outlined above in the short and longer term.

MTAA advocates that MLTSSL classification provides employers the ability to source highly skilled overseas workers to fill critical skills in occupations included on the MLTSSL for up to four years, with eligibility to apply for permanent residence after three years. This helps businesses deal with current shortages whilst also implementing long term strategies to attract people to automotive apprenticeships, trainee-ships and other entry. Even if these skills were classified as MLTSSL now it will still take a minimum of four years to secure the skills required.

2. Do you consider that occupations need to be added to or removed from the Short Term Skilled Occupation List (STSOL)?

Added to STSOL

What occupations should be added to the Short Term Skilled Occupation Lists (STSOL)?

Please outline the evidence or data that would support these occupations being added to the STSOL.

The ‘Directions in Australia’s Automotive Industry (2017): An Industry Report 2017’ was a comprehensive analysis of the Australian Automotive industry undertaken by MTAA using ABS and industry sourced data. MTAA is concerned that the significant staff shortages highlighted in this report and the adverse impact these shortages are having on businesses and consumers that are not being adequately addressed by Government.

Contributing to the shortage of 35,083 skilled automotive workers in 2018/17 (31,202 projected in 2018/19) is shortages in the following identified automotive professions:
• 16,656 light vehicle mechanics in 2017/18 (14,799 projected in 2018/19)
• 2,539 heavy vehicle mechanics in 2017/18 (2,256 projected in 2018/19)
• 380 vehicle detailers in 2017/18 (337 projected in 2018/19)
• 215 mobile plant mechanics in 2017/18 (191 projected in 2018/19)
• 172 farm machinery mechanics in 2017/18 (186 projected in 2018/19)
• 130 engine reconditioners in 2017/18 (115 projected in 2018/19)
• 2,886 motor vehicle salespersons in 2017/18 (2,565 projected in 2018/19)
• 1,010 motor vehicle parts and accessories salespersons in 2017/18 (897 projected in 2018/19)
• 924 tyre fitters in 2017/18 (821 projected in 2018/19)
• 804 spare parts interpreters in 2017/18 (715 projected in 2018/19)
• 491 outdoor power equipment mechanics in 2017/18 (436 projected in 2018/19)
• 126 marine mechanics in 2017/18 (112 projected in 2018/19)
• 31 bicycle mechanics in 2017/18 (50 projected in 2018/19)

Without addressing automotive skills shortages, the $37.1 billion contribution to the Australian economy by the automotive repair industry (or 2.2% of Australia’s GDP) is threatened. The productivity of the 91% Australian businesses that utilise the goods and services of the automotive industry as intermediate inputs towards the value of their own production is also threatened.

There are approximately 11,000 students commencing automotive trade training each year which is insufficient to address shortages outlined above in the short and longer term.

MTAA advocates that STSOL (and more preferably MLTSSL classification) of the above occupations will increase the likelihood of attracting committed employees due to attractive employment conditions and eligibility of permanent residence (MLTSS and ROL). This helps businesses to deal with current shortages whilst also implementing long term strategies to attract people to automotive apprenticeships, trainee-ships and other entry.

3. Do you consider that occupations need to be added to or removed from the Regional Occupation List (ROL)?

Added to ROL

What occupations should be added to the Regional Occupation List (ROL)?

Please outline the evidence or data that would support these occupations being added to the ROL.

The ‘Directions in Australia’s Automotive Industry (2017): An Industry Report 2017’ was a comprehensive analysis of the Australian Automotive industry undertaken by MTAA using ABS and industry sourced data. MTAA is concerned that the significant staff shortages highlighted in this report and the adverse impact these shortages are having on businesses and consumers that are not being adequately addressed by Government.

Contributing to the shortage of 35,083 skilled automotive workers in 2018/17 (31,202 projected in 2018/16,656 light vehicle mechanics in 2017/18 (14,799 projected in 2018/19).

• 2,539 heavy vehicle mechanics in 2017/18 (2,256 projected in 2018/19)
• 380 vehicle detailers in 2017/18 (337 projected in 2018/19)
• 215 mobile plant mechanics in 2017/18 (191 projected in 2018/19)
• 172 farm machinery mechanics in 2017/18 (186 projected in 2018/19)
• 130 engine reconditioners in 2017/18 (115 projected in 2018/19)
• 2,886 motor vehicle salespersons in 2017/18 (2,565 projected in 2018/19)
• 1,010 motor vehicle parts and accessories salespersons in 2017/18 (897 projected in 2018/19)
• 924 tyre fitters in 2017/18 (821 projected in 2018/19)
• 804 spare parts interpreters in 2017/18 (715 projected in 2018/19)
• 491 outdoor power equipment mechanics in 2017/18 (436 projected in 2018/19)
• 126 marine mechanics in 2017/18 (112 projected in 2018/19)
• 31 bicycle mechanics in 2017/18 (50 projected in 2018/19)

Without addressing automotive skills shortages, the $37.1 billion contribution to the Australian economy by the automotive repair industry (or 2.2% of Australia’s GDP) is threatened. The productivity of the 91% Australian businesses that utilise the goods and services of the automotive industry as intermediate inputs towards the value of their own production is also threatened.

There are approximately 11,000 students commencing automotive trade training each year which is insufficient to address shortages outlined above in the short and longer term.

MTAA advocates that ROL (and more preferably MLTSSL classification) of the above occupations will increase the likelihood of attracting committed employees due to attractive employment conditions and eligibility of permanent residence (MLTSS and ROL). This helps businesses to deal with current shortages whilst also implementing long term strategies to attract people to automotive apprenticeships, trainee-ships and other entry.
Do you have any supporting material for your submission?
Yes (see attachments)

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Last modified on Monday 1 April 2019 [45206|135186]