Call to Order and Roll Call
The 2nd meeting of the Interim Joint Committee on Labor and Industry was held on Thursday, July 16, 2015, at 10:00 AM, at the Indiana/Kentucky/Ohio Regional Council of Carpenters & Millwrights Training Center in Louisville, KY. Representative Rick G. Nelson, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Alice Forgy Kerr, Co-Chair; Representative Rick G. Nelson, Co-Chair; Senators Perry B. Clark, Carroll Gibson, Chris Girdler, Denise Harper Angel, Wil Schroder, and Reginald Thomas; Representatives Lynn Bechler, Linda Belcher, Regina Bunch, Jeffery Donohue, Dennis Horlander, Joni L. Jenkins, Adam Koenig, Mary Lou Marzian, Charles Miller, Terry Mills, Tanya Pullin, Tom Riner, Jim Stewart III, and Brent Yonts.
Guests: Mike Donta, Deputy Commissioner, Supervisor of Apprenticeship, Acting Director of OSH Compliance, Department of Workplace Standards, Kentucky Labor Cabinet; Tim Wireman, Political Representative, Indiana/Kentucky/Ohio Regional Council of Carpenters, Millwrights and Carpenters Training Center; and Richard Fouts, Senior Manager, Indiana/Kentucky/Ohio Regional Council of Carpenters, Millwrights and Carpenters Training Center.
LRC Staff: Carla Montgomery, Adanna Hydes, Matt Ross, and Sasche Allen.
Approval of Minutes
A motion by Representative Jenkins and second by Representative Marzian to approve the minutes of the June 17th meeting carried by voice vote.
Update on Apprenticeship Program
Mike Donta, Deputy Commissioner, Supervisor of Apprenticeship, Acting Director of OSH Compliance, Department of Workplace Standards, Kentucky Labor Cabinet, gave an update on the cabinet’s registered apprenticeship program. There are 142 individual and joint sponsored programs in the state that represent over 1000 employers. Of those employers, 70 percent are non-union and 30 percent are union with 40 percent being related to construction. Currently, there are 2661 active apprentices in Kentucky and between July 1, 2014 and June 30, 2015, 251 apprentices completed a registered apprenticeship program with the average wage at completion being $23.73 an hour. Some of the newest programs include partnerships with Quinn Electric Corporation, Bison Services LLC, D & T Electric Company, Bowling Green Metal Forming, and EST Tool & Machine Incorporated. In the past five years, 1,466 individuals have completed registered programs with average hourly wage of $23.36, average yearly wage of $46,700, and an addition of $68,462,200 into the state’s economy.
Deputy Commissioner Donta elaborated on the cabinet’s nationally recognized program, Tech Ready Apprentices for Careers in Kentucky (TRACK), which is a college and career ready accountability model whose focus is career and technical education. The pre-apprenticeship program, in coordination with about 96 area technology schools, the Kentucky Labor Cabinet, and the registered apprenticeship employers, uses the current secondary career and technical education infrastructure at no cost to produce a career pathway for students into post-secondary opportunities. The employer must register the apprenticeship program with the Labor Cabinet, work with the school to identify students and the selection process, and choose a minimum of a four course sequence. The employer makes the determination of whether or not the student has successfully completed the program. The student receives credit for hours on the job along with industry certification. The postsecondary requirements are determined by the employer.
While going through the program, a student can do a co-op and earn dual college credit. Once the apprentice has completed the TRACK program, he or she is completely prepared for the workforce as the career pathway leads to gainful employment. Upon completion, the student becomes an employee of the company with no break in service. There is no cost to the student for the program. Therefore, the individuals who complete the program and enter the workforce do not have any student loans. Some of the companies that have had stand-out apprenticeship programs are Mid-Park in Leitchfield, Stober Drives in Maysville, which has just developed a four year engineering program, Dr. Schneider Automotive in Russell Springs, and Machining Consortium in Henderson, which just received a federal grant to assist with its program.
There have been several misconceptions about the TRACK program. It is not just a union program, which is something the Labor Cabinet has tried to convey. A person can complete an apprenticeship program in anything from plumbing to medical coding. There have been misunderstandings about potential violations of child labor laws. The program follows all state requirements and laws as well as federal child labor laws. There are some things that students cannot do as a minor but a student can perform certain duties as an apprentice as long as they do not exceed the number of hours allowed by law during a school week. Some companies have reviewed and changed their policies to allow apprenticeship programs and allow minors to participate. Other companies have been concerned about workers’ compensation and liability insurance. Some companies have had to negotiate with their insurance carriers. Other companies have decided to utilize another option called the Yes Program, in partnership with Adecco, which covers students with workers’ compensation liability insurance until they graduate.
Deputy Commissioner Donta stated that the Labor Cabinet is developing programs in the areas of healthcare, information technology, and business services. The cabinet will do everything it can to help an employer put into action a registered apprenticeship program in partnership with the school systems and the Kentucky Department of Education. He summarized the federal American Apprenticeship Initiative, which is a $100 million investment that includes 25 grants nationwide. The Labor Cabinet has applied for one of these grants in conjunction with the Education and Workforce Development Cabinet, the Cabinet for Economic Development, and the Kentucky Community and Technical College System (KCTCS), which in all makes up the Kentucky Skills Network. One program that is being developed in anticipation of receiving that grant is Ready Flex, which is a regional program in partnership with the Office of Career and Technical Education and the Kentucky Hospital Association. There have also been some federally proposed tax credits for apprenticeships. A tax credit bill was filed in the 2015 Legislative Session that received an information only hearing and, due to the positive reception, the bill may be proposed again in the upcoming session. In the approaching weeks at an historic meeting, Deputy Commissioner Donta will be presenting information about the TRACK Program to apprenticeship directors from each state in the country due to the national attention it has received.
Responding to a comment from Representative Jenkins, Deputy Commissioner Donta, in regards to an apprenticeship program for those working with individuals with disabilities, stated that if the US Department of Labor does not have a specific program that it recognizes, then the Kentucky Labor Cabinet can work with an employer to develop a registered apprenticeship program to meet the needs of those wanting to be industry certified in a particular area.
Deputy Commissioner Donta stated, in response to Senator Clark, that although most of the manufacturing companies they work with are members of the Kentucky Association of Manufacturers (KAM), the Kentucky Federation for Advanced Manufacturing Education (FAME), which KAM has taken on as a project, is not recognized by the US Department of Labor as a registered apprenticeship program. There are efforts to eventually make the Kentucky FAME program a registered program. Answering a follow up question, he confirmed the minimum age is 16 years old, but there is no maximum age limit. If the cabinet receives one of the American Apprenticeship Initiative grants, then it plans to create a program to focus on reaching out to more non-traditional apprentices.
Addressing Representative Pullin, he said that the cabinet is trying to change the outlook of apprenticeship programs by working with the Department of Education and other agencies promoting the advantages of the programs.
Replying to Representative Donohue, Deputy Commissioner Donta stated that the TRACK program is industry and employer based, meaning that there has to be an employer within the school district that is willing to take on a program. Although, some employers will offer the use of their apprenticeship program to those outside of their area if a particular area is lacking a company that is offering an apprenticeship program. If there is an employer within a region where there is an area technology center that is willing to take on an apprenticeship program, then the cabinet and the Department of Education are willing to help the employer develop a program. Representative Donohue requested a list of the schools participating in the TRACK program and offered positive comments about the heavy equipment program at Fairdale High School in his district.
Answering a question posed by Representative Miller, the Deputy Commissioner said that although Jefferson County is a large county, there are efforts to try to improve and increase the number of programs offered.
Indiana/Kentucky/Ohio Regional Council of Carpenters, Millwrights and Carpenters Training Facility
Tim Wireman of the Indiana/Kentucky/Ohio Regional Council of Carpenters, Millwrights and Carpenters Training Center, gave an overview of the training facility and their apprenticeship program. The center is training current and future members of Kentucky’s workforce in various trades in a way that allows the apprentices to gain hands on experience by allocating a small amount of time in the classroom and a significant amount of time being trained by experienced journeypersons on the job. Not only do the apprentices gain experience while going through the program, they are also compensated for their time and work. Mr. Wireman pointed out that according to recent studies, there has been a shortage of individuals who are being trained to be qualified tradesmen; therefore, the program allows people to gain a career with proper training that can prevent outsourcing.
The training facility offers a four year apprenticeship program where the apprentices attend class four times a year for one week and spend the rest of the time being trained on the job by experienced journeypersons. The center also offers continuing education for current members who may be experiencing challenges with work environments or newer technology in an effort to improve their abilities. The current membership of Indiana, Kentucky, and Ohio is 35,000 with about 5,000 millwrights and carpenters working in Kentucky. The Louisville center has about 500 indentured apprentices, all of whom are working. There are about 300 carpenters working on the Louisville-Southern Indiana Ohio River Bridges Project and about 700 millwrights between the two Ford Plants in Louisville.
An individual seeking to become an indentured apprentice in the facility’s program must first be administered a written exam by KCTCS and then an interview at the training facility. People are rarely turned away when seeking to become an apprentice. There is also the Helmets to Hardhats program, which offers veterans direct entry into their apprenticeship program. There are 119 veterans working apprentices in the facility. The Millwrights and Carpenters Training Facility reaches out to various minority organizations to recruit more minorities including Bridges to Opportunities Workforce Training Program, Youthbuild Louisville Program, Job Corps, and SkillsUSA Kentucky. Student outreach is through KCTCS and local area technology schools. Staff from the facility attend career days, speak with students in classes pertaining to carpentry, industrial maintenance, and welding, and offer tours of the training center to those interested in the program. Another program that is being developed is the curriculum based Career Connections program, which with the help of the Department of Education will allow students to complete required curriculum in high school and then gain entry into the apprenticeship program at the training center.
Those who complete the apprenticeship program receive an associate’s degree from Ivy Tech Community College. The graduate can pursue a bachelor’s degree or beyond through the foundation established with the apprenticeship program. Some graduates have gone on to obtain high level advanced manufacturing positions at places like Ford and GE, which prefer completion of an apprenticeship program in order to advance into higher lever positions.
Mr. Wireman stated that apprentices earn while they learn, receive mentoring from experienced journeypersons, and are afforded on the job training. The eight period programs are separated into two levels each year, the apprentice starts off at a certain percentage on a journeypersons scale, and each six months they will increase by five percent increments until they journey out. The facility not only offers the apprenticeship program and continuing education but also on-site productivity training to contractors. The facility has individuals working on projects in Paducah, Louisville, Lexington, Ashland, and many other places across the state. All of the facilities are tax free and rely fully on funding from membership.
Richard Fouts, Senior Manager, Indiana/Kentucky/Ohio Regional Council of Carpenters, Millwrights and Carpenters Training Center, offered his perspective on the training center and how he believes that with the help of the legislature and other state agencies, such as the Department of Education, the workforce of Kentucky can be better trained and educated through programs like theirs, which will draw manufacturing companies to Kentucky. The training center makes a significant effort to reach out to high school juniors and seniors to inform them of possible opportunities and advantages of completing their apprenticeship program. The opinion and outlook of apprenticeship programs in advanced manufacturing have changed over the years. There are more opportunities now, with those who have finished apprenticeships completing bridge, hospital, and road projects. Companies like UPS, Ford, and GE look for applicants who have completed apprenticeship programs; therefore, programs such as those at the center’s help individuals find employment in high level manufacturing positions. There is starting to be a deficit in the workforce due to older generations retiring or leaving the workforce. Projects that used to take 12 weeks to complete may start to take 20 weeks to complete. For that reason, the center needs help from the legislature and other state agencies to continue training and educating younger generations and those entering the workforce to better serve the state and attract more manufacturing companies to Kentucky to strengthen the economy.
As a response to Senator Thomas, Mr. Wireman stated that the four parts of the test taken to gain entry into the program are math, teamwork, locating information, and English comprehension. Mr. Fouts said the center utilizes the WorkKeys Assessment, and the section that students have the most difficulty with is the teamwork portion. Senator Thomas inquired about why the students who complete the program and receive their associate’s degrees obtain it from Ivy Tech Community College and not an instate institution. Mr. Wireman said he would have to consult with the director of education and follow up with the committee.
Addressing Representative Belcher, Mr. Wireman stated that the program requires either a high school diploma or a GED for entry.
Mr. Wireman, answering a question posed by Senator Clark, said that the individuals who enter the program are referred to as indentured apprentices.
Senator Clark inquired about the issues with the falsification of welding certificates that was discussed at the June committee meeting. Co-Chair Nelson stated that letters were being prepared and sent to the appropriate agencies.
There being no further business, the meeting adjourned at 11:00 AM, and the committee toured the Millwrights and Carpenters Training Center.