Training can put economy on strong footing

THE BUDGET provisions outlining a new work experience and pilot training scheme for workers on short time are to be welcomed. Engineers Ireland has been calling for such support for some time, so we commend the Government. However, we feel more is needed to support vulnerable workers.

The Pilot Training Scheme for Workers on Short Time will provide two days’ training for a period of 52 weeks to upskill employees who have been placed on a three-day week by employers.

It envisages 277 participants initially, there are more than 277 workers who could benefit from on-job training and upskilling.

Also, the 2,000 places on the new work experience scheme are to be welcomed but with the details yet to be finalised between the Department of Enterprise, Trade and Employment and the Department of Social and Family Affairs, urgency is critical.

There is still a danger that many companies, faced with cost issues, will reduce staff levels. It is an understandable, knee-jerk reaction but is a dangerously short-term view that will create significant cost issues down the line when firms need talented, qualified workers.

With the details of these schemes to be finalised, I strongly advocate the Government, in a manner similar to the Netherlands, to broaden the pilot training scheme to include workers whose full-time positions are vulnerable.

Employers, instead of making redundancies, would avail of the scheme to retain staff in a part-time capacity where feasible, paying them three days per week.

The State then pays the other two days provided the employee attends training, similar to the Budget pilot scheme.

The employer then avoids the significant time and money spent on recruitment and enjoys the benefits of employees with improved skills sets. The Government enjoys myriad benefits, including the diminished cost of supporting part-time employees who otherwise would have been entitled to full unemployment benefit, as well as ongoing PAYE income tax contributions from these workers.

The Government could save money, but the most important benefit would be workers who continue to enhance their skills instead of losing on-job expertise.

Engineers Ireland recently implemented a support plan to ensure our unemployed members have access to discounted seminars and workshops to help them re-skill. But more needs to be done across other sectors and on a pan-industry basis. Now is the time for our workers to adapt and adjust to meet the needs of emerging sectors in a changing global economy. These sectors will be based around innovation and RD in areas like energy and water.

Innovation has been earmarked as crucial to Irish business, especially if Ireland is to become a knowledge economy. Furthermore, the growing importance of managing scarce resources like energy and water is indisputable, as discussed by David O’Reilly, chief executive of Chevron, at our McLaughlin lecture last week.

These issues are set to dominate politics and business in the coming years and Ireland has an opportunity to take a lead globally in these sectors. The Government must broaden its schemes to equip workers with knowledge and expertise. By taking a shrewder approach to how we manage our labour force, we may re-skill workers to help put Ireland in a leading position in sectors that will set the global agenda in the future.

John Power is director general of Engineers Ireland