Workforce Policy

Skills Action Plan Reports

Towards a high skill, high wage, high value economySkills Action Plan for theFood and Beverage Sector

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Appendices

Appendix 1

AUSTRALIA /NEW ZEALAND STANDARD INDUSTRIAL CLASIFICATION(1996 version)

A Agriculture and Fishing

A01 Agriculture
- A011 Horticulture and Fruit Growing
  - A0111 Plant Nurseries
  - A0112 Cut Flower and Flower Seed Growing
  - A0113 Vegetable Growing
  - A0114 Grape Growing
  - A0115 Apple and Pear Growing
  - A0116 Stone Fruit Growing
  - A0117 Kiwi Fruit Growing
  - A0119 Fruit Growing
- A012 Grain, Sheep and Beef Cattle Farming
  - A0121 Grain Growing
  - A0122 Grain-Sheep and Grain-Beef Cattle Farming
  - A0123 Sheep-Beef Cattle Farming
  - A0124 Sheep Farming
  - A0125 Beef Cattle Farming
- A013 Dairy Cattle Farming
  - A0130 Dairy Cattle Farming
- A014 Poultry Farming
  - A0141 Poultry Farming (Meat)
  - A0142 Poultry Farming (Eggs)
- A015 Other Livestock Farming
  - A0151 Pig Farming
  - A0152 Horse Farming
  - A0153 Deer Farming
  - A0159 Livestock Farming
- A016 Other Crop Growing
  - A0169 Crop and Plant Growing
A02 Services to Agriculture; Hunting and Trapping
- A021 Services to Agriculture
  - A0212 Shearing Services
  - A0213 Aerial Agricultural Services
  - A0219 Services to Agriculture
- A022 Hunting and Trapping
  - A0220 Hunting and Trapping
A04 Commercial Fishing
- A041 Marine Fishing
  - A0411 Rock Lobster Fishing
  - A0412 Prawn Fishing
  - A0413 Finfish Trawling
  - A0414 Squid Jigging
  - A0415 Line Fishing
  - A0419 Marine Fishing
- A042 Aquaculture
  - A0420 Aquaculture

C Manufacturing

C21 Food, Beverage and Tobacco
- C211 Meat and Meat Product Manufacturing
- C2111 Meat Processing
- C2112 Poultry Processing
- C2113 Bacon, Ham and Smallgood Manufacturing
C212 Dairy Product Manufacturing
- C2121 Milk and Cream Processing
- C2122 Ice Cream Manufacturing
- C2129 Dairy Product Manufacturing
C213 Fruit and Vegetable Processing
- C2130 Fruit and Vegetable Processing
C214 Oil and Fat Manufacturing
- C2140 Oil and Fat Manufacturing
C215 Flour Mill and Cereal Food Manufacturing
- C2151 Flour Mill Product Manufacturing
- C2152 Cereal Food and Baking Mix Manufacturing
- C216 Bakery Product Manufacturing
- C2161 Bread Manufacturing
- C2162 Cake and Pastry Manufacturing
- C2163 Biscuit Manufacturing
C217 Other Food Manufacturing
- C2171 Sugar Manufacturing
- C2172 Confectionery Manufacturing
- C2173 Seafood Processing
- C2174 Prepared Animal and Bird Feed Manufacturing
- C2179 Food Manufacturing
C218 Beverage and Malt Manufacturing
- C2181 Soft Drink, Cordial and Syrup Manufacturing
- C2182 Beer and Malt Manufacturing
- C2183 Wine Manufacturing
- C2184 Spirit Manufacturing
C219 Tobacco Product Manufacturing
- C2190 Tobacco Product Manufacturing

Appendix 2

WAYS TO ADDRESS SKILL SHORTAGES

Recommendations have been made that are appropriateresponses to either a genuine skill shortage and/or arecruitment and retention difficulty, although some areoccupation-specific rather than generic.

a. Training levels need to be raised to meet demand, withemphasis on quality and value of training.

Chef
Fitter and turner
Baker
Electrician
Butcher
Food technologist
Dairy farmer/dairy farm worker

b. Encourage under-represented groups to train in theoccupation (e.g. females in male-dominated occupationssuch as fitter and turners, and electricians).

Chef
Fitter and turner
Baker
Electrician
Butcher
Food technologist
Dairy farmer/dairy farm worker

c. Promotion of efficiency and innovation in workpractices e.g. to lighten workload and to reschedulework hours.

Chef
Butcher
Baker
Dairy farmer/dairy farm worker

d. Better publicity and information to encourage moreyoung people into the occupations, to give a bettersense of the reality of occupations, and to addressnegative images of some occupations.

Chef
Fitter and turner
Baker
Electrician
Butcher
Food technologist
Dairy farmer/dairy farm worker

e. Consider policies to address wage issues, and introducefamily-friendly and other policies to improve workingconditions, to retain staff and attract new recruits, butto also encourage back people who may have left theoccupation (include those who emigrated).

Chef
Butcher
Baker
Food technologist

f. Research further the link between high levels ofmigration inflows for an occupation and low wage levels/growth (e.g. to determine whether high immigrationsuppresses wage growth, thereby contributing torecruitment and retention difficulties).

Chef

g. Develop career paths for young and middle-aged peopleto encourage retention.

Chef
Butcher
Baker
Food technologist

h. Reduction of training fees to encourage more people totrain for the occupation.

Chef
Electrician
Butcher
Fitter and turner
Baker
Dairy farmer/dairy farm worker

i. Increase immigration flows to address shortages.

Fitter and turner
Sales/marketing manager
Electrician

j. More research and development work involvingthe government, industries and universities to beconducted with a significant role for food technologistsin the promotion of innovations in the food chain.

Food technologist

k. Raise/upgrade overall standard in productionmanagement preferably to incorporate LeanManufacturing. Look to recruit from overseasmanagers who are proficient in Lean Manufacturingand have extensive work exposure with a global FoodManufacturer. Better realignment between Marketingand Production to ensure that a firm’s activity fromsupplier to consumer is more streamlined.

Production manager

Explanation of Terms and Sources

TABLE A1a
code	occupation	fill rate (2005)1	Training rate (2005)2	retirement rate3
12213	Production Manager (Manufacturing)	-	-	0.9%
12241	Sales and/or Marketing Manager	-	-	0.6%
21461	Food technologist9	-	-	0.9%
51221	Chef	51%	4.1%	0.3%
61211	Dairy Farmer, Dairy Farm Worker
71311	Electrician	30%	2.6%	1.1%
72231	Fitter and Turner	27%	3.0%	1.5%
74111	Butcher	62%	1.9%	1.0%
74121	Baker	37%	1.2%	0.6%

TABLE A1b
code	occupation	growth in vacancies (mar 2004-mar 2006) 4	employ ment (1000) 5	work permit approvals (2004/05)6
12213	Production Manager (Manufacturing)	-36%	12.1	213
12241	Sales and/or Marketing Manager	7%	19.5	621
21461	Food technologist9	37%	1.6	101
51221	Chef	14%	10.9	2384
61211	Dairy Farmer, Dairy Farm Worker	17%	30.5	604
71311	Electrician	-10%	13.9	306
72231	Fitter and Turner	3%	5.8	213
74111	Butcher	38%	4.1	42
74121	Baker	24%	4.3	149

TABLE A1c
code	occupation	approvals as % of employment	average hourly wage rate7	annual growth in real wages (2002-2005)8
12213	Production Manager (Manufacturing)	1.8%	$39.87	2.1%
12241	Sales and/or Marketing Manager	3.2%	$52.06	4.1%
21461	Food technologist9	3.2%	$28.56	-
51221	Chef	21.9%	$15.18	1.1%
61211	Dairy Farmer, Dairy Farm Worker	2.0%	$ 18.07	5.1%
71311	Electrician	2.2%	$23.89	2.2%
72231	Fitter and Turner	3.7%	$22.86	1.8%
74111	Butcher	1..0%	$16.12	0.8%
74121	Baker	3.5%	$17.07	0.6%

TABLE A1d
code	occupation	genuine skill shortage	recruitment & retention difficulty
12213	Production Manager (Manufacturing)	Probably not	Probably not
12241	Sales and/or Marketing Manager	Probably	Probably not
21461	Food technologist9	Possibly	Possibly
51221	Chef	Yes	Yes
61211	Dairy Farmer, Dairy Farm Worker	Yes	Yes
71311	Electrician	Yes	No
72231	Fitter and Turner	Yes	No
74111	Butcher	Yes	Yes
74121	Baker	Yes	Yes

Sources for the above tables:

1. Department of Labour, Survey of Employers who have Recently Advertised

2. Estimated by Department of Labour using data from industry training organisations,Tertiary Education Commission and employment data from the Department’sOccupational Employment Model

3. Estimated by Department of Labour using data from Census of Population andDwellings and employment data from the Department’s Occupational EmploymentModel

4. Department of Labour, Job Vacancy Monitor. Growth in the number of vacanciesmeasured in the twelve months to March 2006 compared with the 12 months toMarch 2004.

5. Department of Labour, Occupational Employment Model

6. Department of Labour. Measured from July 2004 to June 2005.

7. Statistics New Zealand, Labour Cost Index, except Food Technologist which wasmeasured in the New Zealand Survey of Food Technologists, Department of Labour.At December 2005.

8. Statistics New Zealand, Labour Cost Index.

9. Data for Chemical Engineer (the occupational category into which Food Technologistsare included) are provided for the following fields: Retirement Rate, Growth inVacancies, Employment, Work Permit Approvals, Approvals as percentage ofEmployment.

Information sources included Immigration New Zealand (approvals for Skilled MigrantCategory and the General Skills category for 2003/04 and 2004/05), Statistics NewZealand Census of Population and Dwellings 2001, Australia and New Zealand StandardIndustrial Classification (ANZSIC) 1996 and the New Zealand Standard Classification ofOccupations (NZSCO). A combined baseline scan of both sets of immigration and censusdata resulted in a preliminary list of occupations that was then refined and revised bythe Skill Working Group.

Explanations of Terms used in the above table.
Rating	Genuine skill shortage	Recruitment and retention difficulty
No	There is strong evidence that supply has grown faster than demand for a considerable period of time e.g. robust information on growth in employment and growth in supply through training and migration.	There is no evidence that trained people do not wish to take up employment in this occupation e.g. no mention of this issue from employers in the Survey of Employers who have Recently Advertised and statistical evidence to support this e.g. wage rates, data on occupational detachment.
Probably not	There is some evidence that supply has grown faster than demand for a considerable period of time e.g. evidence from indirect measures of demand and supply balance such as wage and vacancy growth.	There is no evidence that trained people do not wish to take up employment in this occupation e.g. no mention of this issue from employers in the Survey of Employers who have Recently Advertised or statistical evidence to support this e.g. wage rates, data on occupational detachment.
Possibly not	There is weak evidence that supply has grown faster than demand for a considerable period of time	There is weak evidence that there is not a pool of trained people who do not wish to take up employment in this occupation e.g. anecdotal evidence from an industry representative.
Yes	There is strong evidence that demand has grown faster than supply for a considerable period of time e.g. robust information on growth in employment and growth in supply through training and migration together with direct measures of shortage such as a fill rate.	There is strong evidence that a considerable number of trained people do not wish to take up employment in this occupation e.g. statements from employers in the Survey of Employers who have Recently Advertised and statistical evidence to support the reasons for this e.g. wage rates, data on occupational detachment..
Probably	There is some evidence that demand has grown faster than supply for a considerable period of time. (e.g. evidence from indirect measures of demand and supply balance such as wage and vacancy growth.)	There is some evidence that a considerable number of trained people do not wish to take up employment in this occupation e.g. consistent statements from employers in the Survey of Employers who have Recently Advertised/industry representatives or statistical evidence to support the reasons for this e.g. wage rates, data on occupational detachment.