Skill Formation in Manufacturing: Obstacles and Opportunities

Abstract

This paper discusses the opportunities and obstacles to achieving a more flexible method of skill formation in Australian manufacturing, Flexi bility is needed because of the changing division of labour made possible by the ready availability ofcomputerised technologies. The response ofjapan ese and German manufacturing firms demonstrates the necessary elements of a flexible skill use strategy. This is compared with the situation in Australia.

Particular attention is given to the limitations imposed by the award sys tem ofjob classifications, the role ofyouth-entry apprenticeship system and lack ofjob security guarantees. There are, however, definite signs that these obstacles are being tackled.

There is a description of efforts by companies in heavy engineering to develop more flexible skill formation processes in their workplaces. The paper concludes with an outline of the key elements of a human resource strategy and a call for their more widespread adoption to take advantage of changes now taking place in labour market institutions.

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