George Ritchie SVP Regional HR, Sembcorp Industries & SVP HR Teesside Cogent Board Member

1. EMPLOYER OWNERSHIP OF SKILLS George Ritchie SVP Regional HR, Sembcorp Industries & SVP HR Teesside Cogent Board Member Chair NEPIC Skills & Education Thrust Team

2. EMPLOYER OWNERSHIP OF SKILLS • The UK’s SKILLS SYSTEM • 1.3m businesses in the UK provide training for their workers - £43bn investment…….. but 900,000 do not…….(Source: UKCES, March 2012) • Employers that provide training are more than 2.5x more likely to survive than those that do not……(Source: Sector Skills Development Agency, 2007)

3. EMPLOYER OWNERSHIP OF SKILLS • Sembcorp Industries • Employer Ownership of Skills – What is it ? • TVPT & TVAP – examples of EOS in action here in the NE • EOP Round 1 • EOP – Sembcorp • EOP Round 2 • Cogent Industrial Partnership • Questions

4. Industrial energy and water company • Part of a Singapore-based group • 400 employees on Teesside • Operate power stations and water treatment assets at Wilton International site

5. Sembcorp - well positioned for the future In the right markets Present in the world’s fastest growing economies

6. EMPLOYER OWNERSHIP OF SKILLS The Employer Ownership of Skills pilot is a competitive fund open to employers to invest in their current and future workforce in England. Employers are invited to develop proposals that raise skills, create jobs, and drive enterprise and economic growth. Government will invest in projects in which employers are also prepared to commit their own funds in order to make better use of our combined resources.

7. TVPT & TVAP – Success Stories ! Tees Valley Production Technician (TVPT) – 2004 onwards – major process industry firms working with TTE Technical Training Group and local educational providers to establish four year apprenticeship – two in classroom and two onsite with sponsoring company. 150 apprentices have either qualified and gained full time work with sponsoring company or are part way through training. Tees Valley Apprenticeship Programme (TVAP) – 2010-2012 – response to aparticular crisis. Spate of closures in local chemical and steel industries left 150apprentices in limbo part way through training. Industry-led group worked withNSAPI and NAS in responding. Hugely successful. Found new sponsors for the150 at risk and created a further 150+ new apprenticeships, engaging 80 ‘new’employers 43 of whom had never taken on apprentices before.

8. EOP – Round 1 Last year the UK Commission published a transformational vision for the way to invest in skills, one which is employer owned and outcome driven. The Government’s continued support for this vision and the Employer Ownership Pilot is a fantastic opportunity to collectively move us towards a new model for making public and private investment in people work harder and achieve more; aligning investment in people to broader business decisions and ensuring employers have the pipeline of talent that they need to succeed. In Round 1 of the pilot employers stepped up to the challenge and came forward with a wide range of exciting projects. One of these bids was led by Sembcorp.

9. EOP - “The North East Process Industry – a vision, strategy & tactical approach to deliverskilled people to sustain & grow the Sector” • It will do what it says on the £3.4m can ! • Building on the huge success of TVPT & TVAP • To overcome barriers around future skills • To create a more effective recruitment process for both vocational & graduate routes • Large employers supporting the skills needs of SMEs • Leading to higher productivity & competitiveness in a global industry • Help catalyse the upturn in the economy of the North East of England

10. EOP - The essential elements :- • Pre-Apprenticeship scheme for NEETs • 100 new additional Advanced Apprenticeships • Assist 100 graduates on “Ready to Work” scheme • Industry-tailored training • 3-year Advanced Apprenticeship, reducing from the current 4-year scheme • Major focus on SMEs with grants to support uptake • Managed delivery by the National Skills Academy Process Industries

11. EOP - A unique partnership of industry and agencies to deliver ....

12. EOP - PROJECT IMPACT.........More & more of these people joining and remaining in a great industry !

13. EOP – Round 2 • Round 2 was launched on the 20 November 2012 and asks for full or outline proposals by 28 March 2013.  • In Round 2 the Government is asking employers we ask you to be yet more innovative in the approach and ambitious in the scope. Government is encouraging employers to collaborate across sector, region or supply chain, to form partnerships with training providers and other organisations, to involve employees – to create ambitious, transformative proposals that will deliver the skills that the UK needs.

14. Cogent – Industrial Partnership Industrial partnership for the science-based industries – a significant project to draw down funding from EOP2 Equipping industry with the workforce for the new science based economy

15. The proposition: an employer owned skills system Industrial Strategy Strategic Industry Council - Chemistry Using Strategic Industry Council IBLF Strategic Industry Council - Life Sciences e.g. MISG & MMTSG An industrial partnership for the science-based industries ‘Skills programmes for Growth’ – cross-sector programmes with industry-specific content providing transferable skills created through services & solutions for skills as an enabling factor for growth

16. Cogent – Industrial Partnership Science Industry Apprentices – A vocational alternative - an innovative end2end progression route - pre-apprenticeships, intermediate, advanced &higher level - a totally new progression pathway to science occupations - a new generation of science technicians – filling the current skills gap Science Industry Graduates - Dynamic Business: HE exchange and knowledge transfer-increased and informed work-ready graduates delivered from industry endorsed degrees - a new cohort of industry entrants delivered through placements and work-based learning - accelerated business to HE exchange promoting innovation research and knowledge transfer Science Industry Workforce Development Programmes - a ground-breaking industry training framework providing recognition and transferability across the public/private interface (e.g. NHS Modernising Scientific careers) - for the first time, offering recognition of in-company training - targeted training programmes addressing core industry skill gaps - SME support through new training voucher scheme

17. Cogent – Industrial Partnership So what will be different.......... An end-to-end solution taking a holistic approach led and managed by Industry with authority to act. Design programmes Manage Quality assurance/regulation/compliance Accredit Learning - Awarding powers Direct Government investment Purchase delivery Provide careers information – clarity on future jobs Demand as a policy influencer For Industry?Access to the talent needed and direct influence on the system as well as a say in where Government investment goes For Government?Government will have greater visibility on the direction and impact of their skills co-investment in a key UK growth sector

18. EMPLOYER OWNERSHIP OF SKILLS • Sembcorp Industries • Employer Ownership of Skills – What is it ? • TVPT & TVAP – examples of EOS in action here in the NE • EOP Round 1 • EOP – Sembcorp • EOP Round 2 • Cogent Industrial Partnership • Questions

19. EMPLOYER OWNERSHIP OF SKILLS QUESTIONS ?

20. EMPLOYER OWNERSHIP OF SKILLS THANK YOU FOR LISTENING !