home Builders’ Stories

EMAIL TO JASON JANSSEN [Chairman HBAG]

“Dear Jason,

My thoughts for what they are worth regarding the training (or lack of it) in our industry.

Many years ago it was quite normal for a percentage of kids to leave school after the completion of year 10 (15 – 16yo) and start an apprenticeship or a traineeship or maybe get a job in the local supermarket.

These kids were paid significantly less than adults (based on a percentage of the adult wage) and their wages would increase each year as they grew older and increased their skills. Over the past decades, the system changed, and it was legislated or regulated such that kids were fundamentally forced to continue through to finish year 12 high school and encouraged to continue to college or university.

As a result of this change the cost to hire an apprentice shifted from an affordable percentage of the adult wage to the full adult wage from the outset, trades became reluctant to engage adult trainees as they still started with limited skill levels and still took time, energy and finances to train these employee’s but with little or no return, at least for the first period while they developed skills.

I believe that there are always going to be a percentage of our kids that are simply not suited (to or do not want) further education and would be ideal candidates for a traineeship, apprenticeship and at an affordable rate for the employer.

It may be a long-term thing, but it seems we need to be looking long-term to solve these types of problems and with a practical viewpoint, not an academic one. It is certainly not going to solve the crisis facing the industry at present which obviously needs a multi-facetted approach but may go toward reducing the risk of trade availability in the future by:

• Reducing the cost of hiring an apprentice or trainee
• Bringing tax-paying employees to the workforce sooner
• Reducing the cost and demand on the education system generally
• Giving kids an alternative to further education, which clearly does not suit everyone

Kind regards
Greg Grainger
Manager / Registered Builder – 9851
Central Avenue Homes – 10407 Est. 1998
08 9456 3366
1/27 Erceg Rd, Yangebup, WA“

REPLY FROM JASON JANSSEN [Chairman HBAG]

“Greg, you are spot on. I finished school in year 10 as it was not for me. I entered the workforce on $2.50 per hour working at Mansard Homes and I loved it.

I felt rich, even though it was really a pittance, and I learned a lot.

Many parents and guidance counselors want kids to finish at Year 12 but the reality is this sometimes does more harm than good. I think it is a societal problem where the expectations are that if you don’t finish year 12 you will amount to nothing in life.

Many of my friends left at the end of Year 10 and they are probably doing better than the ones forced to finish off Year 12. It did me no harm and I recall a mate’s father speaking to me trying to talk me out of leaving as he was concerned that leaving at Year 10 was a major mistake and I would regret it for the rest of my life.

I have spoken with him over the years, and he understands that is not true and it is up to the individual and not the level of education. His son, my mate, failed year 11 and year 12 and effectively didn’t want to be there either but Dad made him do something he didn’t want to do.

I think in this case it did my mate more harm than good.”

“My company Prostruct Pty Ltd was until recent times a successful company employing 17 staff, including apprentices, tradespeople, and office staff, among numerous sub-contractors and suppliers.

We carried out works for State and Local Government until post Covid at which time we started pricing work in the commercial sector. We won several contracts which were Lump Sum – Fixed Price contracts, as per legislation. Typical build time completion on these were 18 – 24mths prior to Covid related delays.

Once locked into these contracts we were unable to pass on the rising costs which were increasing more than our margins. In most cases between 20% – 60% increases which were a lot more than our margins, also supply delays impacted on our ability to reach milestones in order to submit progress claims and in turn pay our creditors. As a result of our slow cash flow,

I started selling my personal assets and drew on my Family home mortgage to try and keep the company afloat, but there came a time when I basically ran out of recourses and had to seek advice on how to close the company.

I have been self-employed for approximately 30 years and employed a number of people along the way. I recently turned 67yrs old after working in this industry all of my life and have always paid my bills as they fell due, now I stand to lose everything I have worked for including my family home and potentially be left homeless.

I believe my company and I are a casualty of the times where the Government implemented incentives have impacted negatively on businesses such as mine, being forced into Administration / Liquidation as a result of the escalating rising costs of materials and labour.”

1. 20/07/2023 RESPONSE FROM THE PREMIER OF WESTERN AUSTRALIA TO WAYNE OWENS
2. 07/08/2023 LETTER FROM WAYNE OWENS TO THE PREMIER OF WESTERN AUSTRALIA
3. 15/08/2023 LETTER FROM WAYNE OWENS TO THE AUSTRALIAN PRIME MINISTER
4. 18/08/2023 RESPONSE FROM THE DEPUTY PREMIER OF WESTERN AUSTRALIA TO WAYNE OWENS
5. RESPONSE FROM TREASURY TO WAYNE OWENS ON BEHALF OF THE AUSTRALIAN PRIME MINISTER