Bridging the skills divide? : an analysis of retail traineeships

In response to global pressures for productivity, efficiency and international competitiveness, the Vocational Education and Training (VET) system in Australia has undergone significant change in recent years. The predominant shift in focus has been a move away from the traditional supply-side approach to skill formation whereby government ensures the labour market is adequately skilled to a demand-side approach that directly responds to industry requirements. Other changes include the creation of a national qualifications framework and the introduction of the New Apprenticeship system in 1998. Recently though, questions have been raised regarding the effectiveness of the new system in term of quality of skill formation generated, applicability across all industries and the appropriateness of funding arrangements provided for organisations undertaking VET. This paper reviews the recent Senate inquiry into the contemporary VET system and highlights the key recommendations emanating from the report. Following on from this, these recommendations are analysed in the context of the introduction of traineeships in the retail industry. As a new industry involved in formal VET and as the largest employer of Australian workers, the retail industry plays a significant role in influencing the skill base of the labour market as a whole and represents an important example of the New Apprenticeship system in practice. Evidence from case study research is presented as a means of examining the relationship between rhetoric and reality and providing insight into the nature oforganisational involvenlent in VET. As a component of a larger research thesis, the paper aims to highlight key issues facing retail corporations involved in VET and attempts to link these to the broader VET environment and the issue of skill formation in Australia today