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Frequently Asked Questions By Employers
(Last Updated 6/16/2009)


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Why should I start an apprenticeship program or hire an apprentice?
It will increase the company’s productivity and bottom line. A recent study of the costs and benefits of apprenticeship showed that for every dollar invested in an apprentice, the average rate of return to the employer was $1.38. The study also showed a quick return as the apprentice’s productive value usually exceeds the training costs by the end of the second year or earlier.

An apprentice’s skills are better developed because of the combination of formal education and training with supervised on the job experience, which allows the apprentice to apply their more formal learning. Trained skilled tradespeople maintain higher standards and increase quality workmanship. Apprentices learn not only how to apply skills but they also understand why the skills are useful or important. This results in an employee that can adapt more easily to technological and other changes and, even more important, can help identify future changes that can improve operations. Highly trained, safe skilled workers enhance the company’s reputation through higher quality products made.  “Homegrown” tradespeople are more productive relative to an externally trained tradesperson.
The process of mentoring apprentices renews and revitalizes the existing tradespersons’ skills leading to even higher productivity. Training apprentices makes tradespeople more aware of safe work practices, resulting in fewer accidents, reduced compensation and lower insurance costs.

What are some of the costs and risks associated with an apprenticeship program?
In the past, it has been difficult to recruit apprentices. Many young people do not see skilled trades or manufacturing as a career choice. High schools have reduced or eliminated their trade training programs, closing the door for students to experience trade-related careers.

There is also a cost to hiring an apprentice. Studies of employers indicate that a five-year apprenticeship can cost over $200,000 per apprentice. This is a significant investment in the future of the company, but the business case for hiring an apprentice is very compelling. In addition, there are ways that CSTEC can help you minimize your costs.

There is also a cost to running an apprenticeship program. There is a cost to administering an apprenticeship program and to effectively supervising the apprentice. However, CSTEC can assist you in this area as well.

Some smaller companies have experienced retention problems with their apprentices. This can be the result of poaching by companies willing to pay higher wages, particularly after the completion of the apprenticeship program. By working to build apprenticeship consortia in steel making communities, CSTEC is working to enlarge the pool of apprentices and reduce the risk of poaching.

How can CSTEC help my Company?
CSTEC has apprenticeship coordinators in different parts of Canada to help you address your apprenticeship training needs in a cost-effective way. Here are just a few ways that CSTEC’s apprenticeship coordinators can help.

The apprenticeship coordinators can assist you with the administration of your apprenticeship program to minimize your costs. This could include assistance in developing or accessing apprenticeship-tracking processes, utilizing a learning management system; assistance in apprentice mentoring and in accessing trades upgrading training. In addition, they can help you with your “in-school” training needs with their close links to colleges and training institutions that can deliver the apprenticeship programs you need. 

Apprenticeship coordinators can also provide you with important information on experiences with apprenticeship programs in other communities and regions across Canada so that your workplace can deal with any problems that emerge and can continually improve your apprenticeship program. 

The apprenticeship coordinators can provide you information on federal and provincial financial support that is available for apprenticeship training and they can also help you access it.

They can also help you promote your skill trades needs and opportunities to school counsellors and at career fairs.

Finally, CSTEC is looking at ways to develop regional apprenticeship consortia consisting of small to medium-sized manufacturers in steel making communities across Canada. These consortia would further reduce administrative costs and would increase the pool of apprentices and lower the risk of poaching. They would also allow smaller companies to minimize their initial investments by focussing on only committing initially to work placements, until they can assess the value of the apprenticeship.

Can I get any financial assistance from government?
Both the federal and provincial governments offer different financial support in the form of scholarships, grants and/or tax credits.

Federally, the Apprenticeship Job Creation Tax Credit is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit for an employer is $2,000 per year for each eligible apprentice. In addition, a $2,000 scholarship is available per apprentice as a signing bonus for the employer who supports the scholarship candidate’s apprenticeship registration and continues to provide apprenticeship training for a minimum of 6 months.

However, each province is different in terms of what and how much it offers. You can check out the links below for the federal government programs and for the provincial programs in your province. The information is presented for those provinces where CSTEC provides its apprenticeship services.

How can CSTEC help my Company?
Finally, the CSTEC Board of Directors has approved the launch of regional apprenticeship consortia consisting of small to medium-sized manufacturers in steel making communities across Canada. These consortia will further reduce administrative costs, increase the pool of apprentices and lower the risk of poaching. They also allow smaller companies to minimize their initial investments by focussing on only committing initially to work placements, until they can assess the value of the apprenticeship. The Hamilton Skilled Trades Apprenticeship Consortium (HSTAC) is the first to be recognized.