Oz Auto Industry Mulls Filling Skilled-Labor Gap With Immigrants

The automotive industry in South Australia is having problems finding qualified workers, and a growing number of companies are considering hiring skilled immigrants to fill their needs.

A survey by the state’s Motor Trade Assn. shows 69% of respondents saying they’ve had difficulty in attracting suitable people, up from 57% the year before.

Australian auto industry needs more skilled tradespeople like this tool-and-die setter.

The survey shows 25% of companies are pondering whether to hire immigrants in the absence of homegrown skilled workers, up from 23% year-ago.

“This is up from 13% two years ago and reflects the concern in the industry about securing skilled staff,” association Executive Director John Chapman says in a statement.

Companies want skilled-immigrant job candidates to have good English skills and generally at least two years’ experience, preferably in a smaller workshop.

The association also finds the number of businesses planning to employ an apprentice in the next 12 months rising to 47%, from 40% the previous two years.

“It is pleasing to see that nearly 30% of the total number of people employed by members are apprentices,” Chapman says.

“It would appear that businesses now are focusing on training apprentices, given they have pulled back on plans to employ tradespeople,” he says. “The issue is the lack of suitable applicants, which is then followed by wage and pay issues.”

Chapman says 94% of businesses surveyed report paying more than minimum wage, performance benefits or bonuses, with 75% of respondents saying they believe better wages and benefits will encourage tradespeople to stay in the industry.

“Our members continue to struggle to match other industries which seek our tradespeople, such as mining,” Chapman says.

The association is lobbying the state government to create an industry-training fund supported by a small levy on vehicle registrations.

“We will continue to have dramatic changes in this area with electric and hybrid vehicles, and our industry needs support to be able to deliver the technical expertise which will be expected by the motorist,” Chapman says.