Select Committee on Education and Skills Written Evidence


Memorandum submitted by RMI/REMIT

WHAT IS REMIT?—AN INTRODUCTION

  Retail Motor Industry Training (ReMIT) is a wholly owned subsidiary of the Retail Motor Industry Federation Limited (RMI), the trade association representing the motor vehicle retail and repair industry in the UK.

  1.  The RMI established ReMIT in 1983 at the commencement of the Youth Training Scheme (YTS)—it was a natural extension of its involvement in the training of young people, following the introduction of the National Craft Certificate in 1942.

  2.  The RMI has a membership of 10,000 businesses in the retail motor sector, an industry providing employment to more than 600,000 people. It is a company limited by guarantee—each of its members in effect a shareholder—so ReMIT is owned by the retail motor industry employers it seeks to serve. It currently manages the learning provision for 7,500 learners working for 4,500 employers: 90% of the provision is for Modern Apprenticeships (MA) in Light Vehicle Engineering.

  3.  ReMIT works with employers ranging from major manufacturers such as Ford, DCUK and VW to SMEs and smaller businesses—predominantly RMI members—which comprise the majority of businesses in the sector. Manufacturer-led programmes drive skills development improvement in the sector and the nature of the manufacturer/franchised dealer relationship means that franchised dealers are significant employers of learners on MA programmes. Many manufacturer MA programmes are integrated with the manufacturers' own post-apprenticeship continuing training and development programmes for technicians.

  4.  ReMIT's services comprise working with employers to promote the use of modern apprenticeships to address future skills requirements, encouraging and identifying vacancies with employers, then recruiting, assessing and placing applicants in suitable placements and managing them through to completion of the MA.

  5.  ReMIT is a "not for profit organisation", with all profits reinvested to improve the quality and extent of work-based learning (WBL). ReMIT has recently invested £2 million in developing a Centre of Technical Excellence at Croydon, Surrey, where learners will receive training using state-of-the-art electronic diagnostic and other workshop equipment. However, most learning provision is delivered in partnership with the Further Education sector, either through local colleges on a day release basis or with a limited number of colleges on national block release basis.

  6.  ReMIT's engagement with employers enables it to be aware of the industry's concerns over meeting future skills needs. The sector has an established track record of supporting and valuing apprenticeships, but ReMIT believes that further initiatives are needed to solve the problem of attracting the quality of recruit that today's motor industry demands.

  7.  ReMIT believes that reliance on a single index of success—100% completion of all elements of the framework— does not reflect the value of WBL, and recommends replacing this with a "distance-travelled measure" which would encourage more learners, parents and employers to take up MAs.

  8.  ReMIT, therefore, welcomes the opportunity to present written evidence, following the publication of the Government's skills strategy "21st Century Skills: Realising our Potential", and to further strands of the enquiry as they are announced in the future.

THE RETAIL MOTOR INDUSTRY: RAISING THE ATTRACTION OF MAS TO PROSPECTIVE RECRUITS

Schooling: A conflict of interests

  9.  The modern motor vehicle is increasingly technologically sophisticated, both in terms of the amount of computer technology in engine management systems and in the use of new construction materials such as aluminium and carbon fibre. There is every reason to expect that the pace of change will increase, requiring new skills from those employed at all levels in the industry. The demands placed on learners are such that some employers will only consider applicants with three GCSEs at grade C or better, two of which must be English and Mathematics.

  10.  Schools, however, are under pressure to encourage successful GCSE students to stay on into the sixth form instead of moving—at 16—into employment and vocational study.

  11.  ReMIT receives 15,000 applications a year for 3,000 placements—only 40% of its applicants have GCSE grades, predicted or real, that would lead it to recommend AMA or FMA placements. If the career guidance in schools does not appreciate the level of achievement demanded then quite possibly it does not communicate the value and status of a career in the retail motor industry, and its changing demands.

  12.  To counter this, ReMIT is working with a number of schools in implementing and promoting the Government's 14-16 vocational qualification policy, assisting with work experience and placements.

  13.  This initiative is popular with employers who see the value of the programme in identifying committed future Modern Apprentices, but support may weaken should they find that many of the supported learners, on reaching 16, are steered into staying on at school.

  14.  The extension of Education Maintenance Allowances (EMA) is designed to encourage more young people to stay on at school or go into Further Education, regardless of whether their aptitude would better suit them for work-based training. If the EMA encourages those who would otherwise stay outside a planned quality learning route to "stay on" it is beneficial—however, if it encourages those who would be better served by a high-quality work-based route to stay on, it would be counter-productive to the National Skills Strategy.

"Distance travelled", not 100% completion

  15.  The reliance on 100% completion of all the elements of the MA framework as a single index of success does not maximise what a WBL programme achieves for the learner—it undervalues what they may have achieved, even though they have been placed from school or unemployment into a job, received training on an approved programme, and achieved an NVQ. It would be better to demonstrate and promote the full range of useful and usable achievements gained by virtually every apprentice, culminating in job retention, or even promotion, regardless of whether they finished the course successfully or not. The numbers entering MAs will only increase if young people, their parents, teachers, advisers and employers believe that it is a high quality route worth taking.

A need for more effective marketing

  16.  ReMIT commits substantial funds to what is, in essence, generic MA brand-awareness raising, and has found that advertising and promoting MAs in conjunction with the strong branding of major clients has been most effective in recruiting good quality applicants. ReMIT has been able to place many of those not successful with their first choice with other employers. Supporting leading brand-based MA promotion by focused public funding should produce an improved recruitment response, and would be measurable and cost-effective.

EMPLOYERS: GREATER CHOICE AND CONTROL OVER PUBLICLY FUNDED TRAINING

A true partnership with Learning Providers

  17.  ReMIT believes Learning Providers, particularly those with as much depth of learner engagement as it has, are far better fitted than Further Education colleges to help employers get more choice and opportunity out of government-funded training.

  18.  This works with a number of car and truck manufacturers—eg Ford, DCUK, VW, DAF, Scania, Iveco, and Volvo—who deliver national MA programmes. These manufacturers choose to work in partnership with a national provider like ReMIT, with an arrangement which enables them to retain overall control over the programme without having to employ their own staff to manage or administer it. Although the manufacturer agrees the overall standards and content of the programme, the MAs are actually employed by the individual franchised dealerships.

  19.  Manufacturers need to maintain and develop the skills base of those working in their franchises over the long term. In conjunction with ReMIT, they have developed ways of integrating some of their training requirements into the MA programme. Where these requirements exceed those covered by current funding, the manufacturer, or the franchised dealers, will themselves fund the extra costs. The Ford Master Technician Programme is a good example, and provides an ongoing programme of development and annual skills update to maintain competency during working life. An introduction and elements of the Ford Master Technician Programme are incorporated into the Ford MA programme. This enables the successful apprentice, on completion, to move on seamlessly into Ford's continuing skill development programme.

A need for more flexibility

  20.  ReMIT recommends that greater flexibility should be introduced into the training programmes to cater for a wider diversity of aptitude and talent among learners.

  21.  For example, some truck employers felt that they were missing out on a number of potential new applicants by having an AMA only policy. They wanted to make offers to potential applicants that virtually guaranteed to the learner a successful completion of an MA, but believed that, in their industry, it took a while to determine whether a new recruit was likely to be successful at an AMA.

  22.  The truck employers wanted to offer apprenticeships to more marginal applicants but felt they could only do this if there was more flexibility in the timing of choice of programme. As much of the learning for the first year of both AMA and FMA programmes is similar, they would prefer their recruits not to have to make a choice until the end of year one. Unfortunately, under current provision, learners who start on an FMA and transfer before completion to an AMA are counted for learner provider performance purposes as non-achieving, a failure (this negative is not removed even if they subsequently complete the AMA!). This is discouraging the adoption of a more learner-friendly approach.

December 2003





 
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