Registered Apprenticeships: Labor Could Do More to Expand to	 
Other Occupations (07-SEP-01, GAO-01-940).			 
								 
Apprenticeship combines supervised on-the-job training with	 
formal instruction. It benefits both employers and employees by  
providing the skills and knowledge necessary for a specific job  
and a credential recognized throughout an industry. The use of	 
apprenticeship is standard practice in some industries, but	 
expansion beyond occupations not traditionally apprenticed has	 
been limited. The Department of Labor has not systematically	 
identified new occupations suitable for apprenticeship programs  
that could respond to needs for skilled labor, nor has it	 
successfully alleviated concerns of some employers about the	 
requirements of apprenticeship, resulting in slow expansion of	 
apprenticeship to new occupations. Labor has approved 19 new	 
occupations as apprenticeable in the last five years, and a	 
substantial number of these have been in less traditional	 
occupations, such as internetworking technicians. Employers	 
expressed a range of concerns that made them wary of		 
apprenticeship programs. For example, some employers were	 
reluctant to commit to incremental increases in wages as required
by apprenticeship regulations. GAO identified several		 
apprenticeship programs in which apprenticeship training helped  
to develop workers with particular skills sought by industry. The
programs GAO examined ranged from those industries that have had 
apprenticeships in the past, such as construction-related	 
occupations, to those in occupations not traditionally		 
apprenticed, such as youth development practitioners. The key to 
the establishment of several programs was the close interaction  
between employers and federal or state apprenticeship officials  
to ensure that employers understood the value of apprenticeships.
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-01-940 					        
    ACCNO:   A01711						        
    TITLE:   Registered Apprenticeships: Labor Could Do More to Expand
             to Other Occupations                                             
     DATE:   09/07/2001 
  SUBJECT:   Employment or training programs			 
	     Labor force					 
	     DOL Apprenticeship Information			 
	     Management System					                                                               
	     DOL Registered Apprenticeship Awareness		 
	     Initiative 					 
								 

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GAO-01-940
     
Report to the Chairman, Subcommittee on 21st Century Competitiveness,
Committee on Education and the Workforce, House of Representatives

United States General Accounting Office

GAO

September 2001 REGISTERED APPRENTICESHIPS

Labor Could Do More to Expand to Other Occupations

GAO- 01- 940

Page i GAO- 01- 940 Apprenticeships Letter 1

Results in Brief 2 Background 3 Lack of Systematic Identification of
Occupations and the Need to

Allay Employers? Concerns Slow Expansion of Apprenticeships 6 Some
Apprenticeship Programs That Respond to Current Labor

Needs Have Overcome Impediments 11 Conclusions 16 Recommendations for
Executive Action 17 Agency Comments 17

Appendix I Scope and Methodology 19

Appendix II Summaries of Example Programs 20

Appendix III Comments From the Department of Labor 30

Appendix IV GAO Contacts and Staff Acknowledgments 33

Tables

Table 1: Occupations Recognized as Apprenticeable, 1996- 2000 8 Table 2:
Apprenticeship Programs Analyzed 12

Figures

Figure 1: Registered Apprentices by Industry as of September 30, 2000, for
36 Reporting States 4 Contents

Page ii GAO- 01- 940 Apprenticeships Abbreviations

AIMS Apprenticeship Information Management System ATELS Office of
Apprenticeship Training, Employer and Labor

Services CompTIA Computing Technology Industry Association IBEW
International Brotherhood of Electrical Workers IT information technology

Page 1 GAO- 01- 940 Apprenticeships

September 7, 2001 The Honorable Howard P. McKeon Chairman, Subcommittee on
21st Century Competitiveness Committee on Education and the Workforce House
of Representatives

Dear Mr. Chairman: In recent years, employers in some industries have faced
challenges obtaining workers with specific skills. At the same time, many
workers have not mastered the skills that are most in demand in the labor
market. One approach to addressing this mismatch between labor demand and
supply- the apprenticeship model- has been used for decades in construction
trades and some manufacturing occupations to ensure that workers have the
skills employers need. Apprenticeship combines supervised on- the- job
training with formal instruction. It benefits both employers and employees
by providing the skills and knowledge necessary for a specific job and a
credential recognized throughout an industry. Apprenticeship programs
typically last from one to several years and are sponsored by employers who
pay an apprentice?s wages; the employer or the apprentice may fund the
formal instruction. The use of apprenticeship is standard practice in some
industries, but expansion beyond occupations not traditionally apprenticed
has been limited.

To promote the apprenticeship model and safeguard the welfare of
apprentices, the Department of Labor established the federal registered
apprenticeship program, in which more than 360,000 apprentices are currently
enrolled. Labor determines whether occupations in which employers want to
sponsor apprentices should be approved as apprenticeable. Employers,
sometimes with the help of unions and other employee groups, can establish
and operate programs in those approved occupations. Labor or representatives
of state apprenticeship councils designated by Labor promote the
apprenticeship concept and must approve individual programs for them to be
part of the federal registered apprenticeship program.

To address your concern that apprenticeship is not being used as much as it
could be to develop a skilled workforce, you asked us to (1) describe
efforts Labor has made to expand apprenticeship to new occupations and
explain some of the impediments to getting apprenticeship programs
established in fields not traditionally apprenticed, and (2) describe
examples of apprenticeship programs that responded to current labor

United States General Accounting Office Washington, DC 20548

Page 2 GAO- 01- 940 Apprenticeships

market needs and how they have done so. To answer your questions, we spoke
with Labor officials at headquarters and regional offices about their
efforts to promote the apprenticeship program. We also interviewed federal
and state employees in four states- California, Indiana, Massachusetts, and
New Jersey- who promote and register apprenticeship programs. We analyzed
the approval process for 40 new programs in these four states and identified
and obtained more detailed information on challenges faced by six programs
in occupations not traditionally apprenticed. We also spoke with experts and
employer and employee group representatives about how apprenticeship meets
labor market needs. Our work was conducted in accordance with generally
accepted government auditing standards between November 2000 and July 2001.
See appendix I for a full discussion of our scope and methodology.

Labor has not systematically identified new occupations suitable for
apprenticeship programs that could respond to needs for skilled labor, nor
has it successfully alleviated concerns of some employers about the
requirements of apprenticeship, resulting in slow expansion of
apprenticeship to new occupations. While the apprenticeship model is not
appropriate for all occupations, it can fill an essential need for
developing certain skills in workers. In the last 5 years, Labor has
approved 19 new occupations as apprenticeable and a substantial number of
these have been in less traditional occupations. For example,
internetworking technician and youth development practitioner were both
approved in 2000. However, these approvals have usually been initiated by
employers? requests for apprenticeships, not as a result of Labor?s
initiative. Labor does not systematically review occupations and related
labor market data to identify occupations with labor needs that would be
suitable for apprenticeships. Further, some employers? apprehension about
program requirements, and Labor?s inability to alleviate this apprehension,
have been an impediment to getting apprenticeships established in
occupations not traditionally apprenticed. Employers expressed a range of
concerns that made them wary of apprenticeship programs. For example, some
employers were reluctant to commit to incremental increases in wages as
required by apprenticeship regulations. Labor and state apprenticeship
council representatives often meet with individual employers to address
these concerns and explain how apprenticeship works, which helps employers
overcome their uncertainties. However, there is no national information-
sharing mechanism to help employers learn from others who have established
similar programs. In addition, Labor?s apprenticeship database is
incompatible with some states? systems; as a result, the agency is unable to
measure its progress in expanding apprenticeship and cannot readily identify
and share its successes with potential sponsors. Results in Brief

Page 3 GAO- 01- 940 Apprenticeships

We identified several apprenticeship programs in which apprenticeship
training helped to develop workers with particular skills sought by
industry. The six examples of apprenticeship programs we examined- all
established to respond to employers? needs for skilled labor- range from
those in industries that have had apprenticeships in the past, such as
construction- related occupations, to those in occupations not traditionally
apprenticed, such as youth development practitioners who advise youth on
training and employment. These programs overcame many of the impediments
that employers had identified as reasons for their reluctance to establish
apprenticeship programs. Key to the establishment of several programs was
the close interaction between employers and federal or state apprenticeship
officials to ensure that employers understood the value of apprenticeships.
Typically, apprenticeship representatives who developed the program,
including apprenticeship staff and union representatives in some instances,
fostered good communication early in the process that identified and
resolved concerns among all parties, such as unions and employers. In
addition, coordination with other federal and state workforce development
efforts to obtain necessary resources was important to getting these
programs established.

We are making recommendations to the Secretary of Labor to help the agency
expand the use of apprenticeships in occupations not traditionally
apprenticed and improve the apprenticeship program data system. Labor was
provided a draft of this report and concurred with our recommendations.

Apprenticeship is an employee training approach that combines on- the- job
training and formal instruction to teach workers the practical and
theoretical aspects of a skilled occupation. It is appropriate for many
occupations that require at least 1 year of hands- on training and formal
instruction. Apprentices work under the auspices of a mentor who is a fully
trained worker, often called a journey worker. The content and length of the
apprenticeship training and instruction are determined by the needs of the
specific occupation. For employers, apprenticeship helps ensure that workers
learn consistent skills, practices, and safety procedures. It also can be a
way to retain employees because it indicates an employer?s willingness to
invest in the worker and ensures regular wage increases if skills are
attained. Additionally, employers are permitted to pay apprentices in a
registered program less than prevailing wages while they are working on a
federal construction project. At least two states and municipalities have
similar requirements or mandate that contractors employ apprentices on
projects. Employees benefit from registered apprenticeship by advancing
their skills and obtaining a credential Background

Page 4 GAO- 01- 940 Apprenticeships

recognized throughout an industry. Apprenticed occupations have historically
been concentrated in the building trades, metalworking trades, and various
repair occupations, as we described in an earlier report. 1 Figure 1 shows
the apprentices as of September 30, 2000, for 36 states that provided data
on apprentices by industry. Construction and manufacturing apprentices
continue to make up the vast majority- 82 percent- of apprentices.

Figure 1: Registered Apprentices by Industry as of September 30, 2000, for
36 Reporting States

Source: U. S. Department of Labor

The National Apprenticeship Act of 1937, commonly known as the Fitzgerald
Act (29 U. S. C. 50), authorized and directed the Secretary of Labor to
formulate and promote labor standards safeguarding the welfare of
apprentices and to bring employers and labor together to establish programs
of apprenticeship. The Secretary issued regulations

1 See Apprenticeship Training: Administration, Use, and Equal Opportunity

(GAO/ HRD- 92- 43, Mar. 4, 1992).

Page 5 GAO- 01- 940 Apprenticeships

implementing the act which provide for registration of apprenticeship
programs. In order to be registered, Labor requires that an apprenticeship
program be in an apprenticeable occupation as defined in the regulation and
meet certain standards. Programs are administered by the Department of Labor
Office of Apprenticeship Training, Employer and Labor Services (ATELS) 2 or
by State Apprenticeship Agencies or Councils 3 recognized by the Secretary
of Labor.

The standards prescribed by Labor require that federal registered
apprenticeships must include at least 1 year or 2,000 hours of on- the- job
training and a recommended 144 hours of formal instruction. In general, most
programs last 3 to 4 years. Each program must meet 20 additional
requirements, which include a specified minimum age for an apprentice, a
specified term of apprenticeship, a progressively increasing wage schedule
based on skills acquired, safety training, and a minimum ratio of
apprentices to skilled workers. States can impose additional requirements on
programs. Program sponsors may also identify additional minimum
qualifications that apprentices must possess- for example, a certain level
of education or specific physical abilities needed to perform essential
functions of the occupation.

In addition to meeting the prescribed labor standards, an apprenticeship
program must be in an apprenticeable occupation to be eligible for
registration. Labor makes this determination based on criteria outlined in
the regulations. Labor can make this determination when a program is
presented for registration or before apprenticeship programs are developed.
In the latter situation, for example, an employer may submit a list of the
skills needed to complete various tasks in an occupation and the necessary
training to complete these tasks. Typically, Labor then distributes this
list to appropriate industry representatives for feedback on the
occupation?s apprenticeability. Once Labor has determined that an occupation
is apprenticeable, it notifies federal and state apprenticeship
representatives who can begin to promote programs within that occupation. If
an employer decides to establish an apprenticeship program, he or she can
work with an apprenticeship representative, either from Labor or a state
council, to ensure that the program complies with

2 The regulations specify the Bureau of Apprenticeship and Training;
however, under a recent reorganization, responsibility for administration of
the program was assigned to ATELS, which includes the Bureau of
Apprenticeship and Training.

3 In 23 states, Labor administers the federal registered apprenticeship
program; in 27 states, Puerto Rico, the Virgin Islands, and the District of
Columbia, state apprenticeship councils administer the program.

Page 6 GAO- 01- 940 Apprenticeships

Labor?s standards and state laws. Frequently, the apprenticeship
representative will help the employer by suggesting various program
practices, providing examples of programs that have been successful, or
modifying the requirements to meet the needs of individual employers.
Employers can sponsor registered apprenticeship programs independently, with
a group of employers, or with organized labor.

Despite having an important presence in industry, the federally registered
apprenticeship program operates using relatively little federal money. In
fiscal year 2001, ATELS has an appropriation of about $22 million to
administer the program, while state councils run the program with an
additional $20 million. 4 The employers and apprentices themselves
contribute at least $1 billion for the training. According to Labor, more
than 37,000 apprenticeship programs in about 850 occupations employed about
360,500 registered apprentices in fiscal year 2000.

Progress in expanding apprenticeships to address skill needs in occupations
not traditionally apprenticed has been hampered because Labor?s efforts to
identify new apprenticeable occupations are not systematic, nor has Labor
been able to alleviate some employers? apprehension about program
requirements. Instead of proactively identifying occupations in which
apprenticeship could help provide needed skills, Labor has reacted to
employers? requests to have their occupations recognized as apprenticeable.
While some employers take the initiative to make this request, others are
deterred from doing so by their apprehension about apprenticeship. Employer
concerns that have impeded the establishment of apprenticeship programs
ranged from stringent program requirements to the increased government
scrutiny they may invite. Apprenticeship representatives working one- on-
one with employers try to allay these concerns; however, Labor does not have
a centralized effort to reach out to industry representatives and explain
how apprenticeship could be implemented in their industry. Further, Labor
cannot identify and share its successes because it cannot fully assess its
progress in establishing new programs. Its apprenticeship database is
incompatible with states? systems, resulting in data that are incomplete and
too general to provide information on specific occupations? expansion.

4 An estimate provided by National Association of State and Territorial
Apprenticeship Directors. Lack of Systematic

Identification of Occupations and the Need to Allay Employers? Concerns Slow
Expansion of Apprenticeships

Page 7 GAO- 01- 940 Apprenticeships

Labor does not have a formal process to determine how the apprenticeship
program could be expanded to meet an increasing demand for skilled labor or
to respond to the technological advances of today?s economy. Labor has
primarily reacted to employers? requests for apprenticeships in new
occupations and has allowed industry to take the lead in requesting new
occupations. Further, Labor has not made a comprehensive effort to locate
funding for all new apprenticeable occupations; however, it has recently
recognized several occupations that respond to evolving labor market needs.
In March 2000, at the request of a union, it approved internetworking
technician as an apprenticeable occupation to respond to the increased need
for skilled workers to install, maintain, and operate advanced data networks
and their components. In October 1999, Labor approved Hotel Associate as an
apprenticeable occupation to respond to increased labor needs in the tourism
industry and to help retain workers in a competitive labor market. In a few
cases, Labor has been proactive in identifying specific occupations,
providing funding for their development, and encouraging their
implementation. For example, in the late 1990s, Labor initiated (and
approved in 2000) the youth development practitioner apprenticeship to
provide quality training for workers who deliver comprehensive services to
young people and provided grants for its implementation. In the last 5
years, 19 occupations have been recognized by Labor as apprenticeable and a
substantial number of these have been in less traditional occupations. Table
1 lists the occupations and approval dates for these occupations. Labor
Lacks a Systematic

Process to Expand Apprenticeship

Page 8 GAO- 01- 940 Apprenticeships

Table 1: Occupations Recognized as Apprenticeable, 1996- 2000 Occupation
Approved

Safety inspector/ technician 1997 Production technologist 1997 Fence erector
1998 Residential wirer 1998 Production finisher 1998 Fish hatchery worker
1998 Coating machine operator I 1998 Mold designer (plastics industry) 1998
Mine inspector (government) (metal- nonmetal) 1998 Mine inspector
(government) (coal) 1998 Construction driver 1999 Calibrator (military) 1999
Office manager/ administrative services 1999 Undercar specialist 1999 Hotel
associate 1999 Electrostatic powder coating technician 1999 Industrial
machine systems technician 2000 Internetworking technician 2000 Youth
development practitioner 2000

Source: U. S. Department of Labor

Labor officials recognize the need for Labor to become more proactive in
identifying new occupations as apprenticeable and providing funds for the
development of new apprenticeship programs but, according to the officials,
Labor?s efforts in this area have been hindered by resource limitations.
Specifically, Labor officials commented that staff and funding shortages
have prevented the agency from fully addressing all its responsibilities,
including marketing apprenticeship programs, coordinating with other
partners in the job training arena, and providing technical assistance to
employers. However, despite their funding limitations, Labor has been able
to make some progress in developing and expanding the apprenticeship
program. Further, information to help them identify additional occupations
in which more skilled workers are needed and apprenticeship can effectively
be used to train workers is readily available. Future plans call for taking
a more systematic approach, especially in assessing the labor needs of
occupations and determining the possibility of apprenticeships helping to
address these needs.

Page 9 GAO- 01- 940 Apprenticeships

Some employers? perceptions and concerns about the apprenticeship program
have presented challenges to expanding the program. In our discussions with
apprenticeship representatives and employers from the states we visited, we
were told that employers were apprehensive about agreeing to a progressive
wage schedule for an apprentice without first receiving feedback on how the
apprentice was performing both on the job and during formal instruction.
Employers were reluctant to commit to a program lasting several years,
especially in view of uncertain economic conditions and rapidly changing
technology. Employers were concerned with what they considered strict
training requirements, such as the 144 hours of formal instruction,
recommended by federal regulation but required by some states. Employers
were also concerned about getting involved in a program that they thought
would lead to increased government oversight or scrutiny of their business.
Additionally, employers regarded apprenticeship as a ?blue collar? approach
to training that is inappropriate to their industry.

Employers in some industries, such as high technology and biotechnology,
have difficulty envisioning how apprenticeship would benefit them.
Apprenticeship officials in several states commented that they have tried to
reach out to these industries but have not been successful because employers
see difficulty incorporating the apprenticeship structure within their
industry. The computer- generated imaging industry in California is an
example of an unsuccessful attempt to reach out to an industry by the state
apprenticeship representatives. The need for animators to create computer-
generated graphics has greatly increased, but is largely projectdriven.
Workers are needed for a short period of time and then are laid off when the
project ends, which is not conducive to long- term apprenticeships. State
officials suggested that studios adopt the construction trade model, where
workers are essentially pooled and employers draw from the pool as needed.
Employer reaction was strongly against this model because the motion picture
industry did not want to share workers; the proprietary nature of the work,
with companies operating in very competitive fields with new technology,
made them uneasy.

Labor has efforts under way to reach out to individual employers as well as
to inform the general public about apprenticeship. In developing individual
apprenticeship programs, Labor deals with employers on a oneon- one basis.
Although costly, time- consuming, and labor intensive, Labor officials
commented that this approach is very effective at allaying the fears and
concerns of employers regarding apprenticeship and was instrumental in
gaining their support. Many apprenticeship representatives from Labor are
former apprentices who are knowledgeable about the Employer Perceptions

Present Challenges to Expanding Apprenticeships

Page 10 GAO- 01- 940 Apprenticeships

program and can relate to employer concerns. Their approach is to meet with
employers to explain the details of the program and resolve any concerns the
employer raises. For example, in response to concerns about wage
progression, apprenticeship representatives might explain the need to
increase workers? pay over time, noting that this is not automatic but
rather based on a demonstrated increase in skills. To allay concerns about
the long- term nature of apprenticeship training, they might describe how
the program provides flexibility in determining the length of the program.
Some programs such as the cable television installer apprenticeship are
1year programs whereas more complex apprenticeships would be longer, for
example, 4 years for a carpenter or electrician apprenticeship. When an
employer expresses concern about increased governmental scrutiny, the
representative might explain that oversight would not include reviewing
other aspects of the operations. Officials commented that once employers
fully understand the reasons for apprenticeship requirements, they are often
supportive of apprenticeship and can see the benefit to both themselves and
the employee.

Additionally, Labor has begun an initiative using its current resources to
better market apprenticeship. In October 2000 Labor started the Registered
Apprenticeship Awareness Initiative, which consisted of a variety of efforts
aimed at increasing awareness of and support for registered apprenticeship
beyond the employers. For example, Labor produced a compact disc to help
spread information about apprenticeships to employers and potential
apprentices. It includes information on how to contact apprenticeship
representatives, what resources are available to help set up a program, and
the benefits of a program. Labor has found this to be a way to conduct
outreach, within their present resources, to a broad segment of employers
and potential apprentices.

The Apprenticeship Information Management System (AIMS), Labor?s current
apprenticeship information system, cannot provide a complete, detailed
picture of progress in implementing apprenticeships in new fields and cannot
be used to assess progress or program development. Apprenticeship officials
in 36 states enter data directly into AIMS but the remaining 14 states-
which have a labor force of 49 million, or 35 percent of the total U. S.
labor force- have chosen not to directly report data to the system, do not
have access to it, and in some cases provide only summary data. Detailed
information is not included in AIMS for these states, and some information,
such as programs being developed, is not included for any states. The system
was developed to provide Labor with capabilities to report statistical
information and track apprenticeship registration, not to Labor?s Inadequate

Information System Prevents Measuring Progress and Sharing Information

Page 11 GAO- 01- 940 Apprenticeships

manage the program. Labor hopes that a new system under development will be
used by all states so that it can provide information with which to measure
progress in expanding apprenticeships to new occupations. Labor has
developed specifications for a state- of- the- art AIMS system that can be
used by headquarters, regions, and all states. The new system is expected to
provide detailed information, such as data on apprentices who start,
complete, or leave the program. The new system is expected to be designed by
February 2002 and to be operational by June 2002.

Labor lacks a mechanism to share information among all states, which could
be helpful as Labor tries to expand apprenticeships to lesstraditionally
apprenticed occupations. Labor does not maintain a national information-
sharing system that provides information on lessons learned and experiences
with these apprenticeships. This lack precludes states from quickly learning
of and benefiting from the experiences of others. For example, two states we
visited were each working independently to develop potential apprenticeships
within the information technology (IT) industry. They were unaware of
similar efforts by the other or by Labor nationally. Both were unable to
benefit from the other?s experiences, and neither was successful in getting
an IT- related apprenticeship started. Neither could readily access national
information on other states? progress or success at similar efforts.
According to Labor officials, such information is not readily available.
Labor officials believe that their system should have more capabilities,
such as on- line queries, that would enable this information to be obtained
readily. The data gaps and insufficient capability of the AIMS system
further reduce the value of information that is obtainable on the system.

We identified a diverse group of programs for which apprenticeship was
chosen as an approach to developing skills needed by an industry. The people
involved in establishing these programs overcame difficulties in order to
set up apprenticeship programs. While the programs were at various stages of
maturity at the time of our study, none had developed quickly; they required
much discussion and negotiation among different parties, and in a few cases
their development is still under way. Generally, the start- up effort
required additional resources, sometimes provided by employers and sometimes
by Labor. Program sponsors frequently used innovative practices, such as on-
line training, to respond to the special characteristics of individual
programs.

As shown in table 2, the programs we studied represent a variety of
industries and meet particular labor skill needs. Most of these programs
were started in the last decade, and a few are still being established. More
Some Apprenticeship

Programs That Respond to Current Labor Needs Have Overcome Impediments

Page 12 GAO- 01- 940 Apprenticeships

recent efforts to establish apprenticeships in new occupations have involved
reaching out to industries in which apprenticeship is not a familiar concept
and developing a comfort level among potential sponsors and apprentices.
(See app. II for detailed descriptions of the development and status of each
program.)

Table 2: Apprenticeship Programs Analyzed Occupation and location of
program( s) reviewed Description Labor need/ objective Approved Status

Sound and communication systems installer, northern California

Install low- voltage systems, such as remote controls, burglar and fire
alarms, data and telephone lines, and audio and video systems

The union realized the need for skills outside the ?electrician? occupation
to respond to increased work on low- voltage systems.

1987 Began operating in 1993 in northern California. About 1,100 apprentices
enrolled and 650 have completed the program as of June 2001. Production
technologist, Shreveport, La., and Denver, Colo.

Manufacturing workers responsible for direct production (for example,
assembling products and setting up machines) and indirect production (for
example, managing materials and maintaining equipment)

The employer wanted manufacturing workers to be more responsive to customer
needs and developed a new occupation title to bridge existing occupations.

1997 Eight apprentices are in the program. Apprentices? skills have been
found to be helpful, but instability in ownership of the employing company
has made expansion difficult.

Childcare development specialist, Indiana, New Hampshire, and Vermont

Provide direct care to children in a center or home setting

This is part of a federal initiative to raise skills of childcare workers
throughout the United States to meet a recognized lack of skilled workers
and low pay for the profession.

1981 a A major effort to implement this program began in the late 1990s.
Programs have been established or are being established in at least 21
states and the District of Columbia, with over 500 apprentices registered.
Youth development practitioner, Alaska Provide employment- related

services to youth; for example, assess youth job readiness, assist with job
searches, and maintain youth case records

This is a federal initiative to develop workers able to counsel youth on
employment and other issues.

2000 Apprenticeships are being established at several local and national
organizations and entities. Labor has provided some grants for
implementation. Pharmacy technician, Maine and Washington, D. C.

Under supervision, technicians fill orders for unit doses and prepackaged
pharmaceuticals and perform other duties, for example, recording drug
deliveries and storing merchandise

Employers recognized a need for more skilled workers and better retention of
these workers.

1980 a The program is newly established at a few locations with plans to
market the program elsewhere.

Page 13 GAO- 01- 940 Apprenticeships

Occupation and location of program( s) reviewed Description Labor need/
objective Approved Status

IT technical support specialist, national This program is still being

defined, but it is expected to fill the need for many entrylevel workers in
IT technical support-- for example, help desk specialist, network
technician, and web developer

The IT industry association perceives a need for ?handson?

skills to accompany industry certifications and fill labor shortages.

Not yet approved In May 2001, the association

received Labor funds to finance a workforce development committee to
identify the apprenticeable occupation and develop the work processes and
related technical instruction for the apprenticeship. a Although this
occupation was approved as apprenticeable about 20 years ago,
apprenticeships in it

were not available widely until the last few years. Source: GAO?s analysis
of data from the apprenticeship programs.

Open communication among employers, employee groups, and the approving
agencies has helped speed up and ensure the establishment of these
apprenticeship programs. For example, the production technologist
apprenticeship was the result of a joint meeting of union and employer
representatives. Because the apprenticeship would cross several job
classifications, such as engineer, machinist, and electrician, some workers
and Labor were not enthusiastic about its potential. This concept was not
immediately accepted by some local union workers, who were concerned that
allowing these workers to perform tasks that were part of other occupations
would jeopardize the other occupations. However, discussions involving all
parties allayed their fears. Program planners explained that the quick
availability of production technologists who could make small repairs would
reduce the production line?s lost time, yet machinists would still be called
when more expertise was needed. The youth development practitioner
apprenticeship also required good communication. Labor officials worked with
staff from its Office of Youth Services to hold several forums across the
nation to discuss the apprenticeability of the occupation. The exact nature
of the position was defined based on information from these forums.

Apprenticeship was initially an unfamiliar concept to the people involved in
establishing some of these programs. However, discussion with apprenticeship
representatives helped them to understand its value to the employers. The
responsibility for educating program sponsors- sometimes one- on- one-
typically fell to the Labor or state apprenticeship council representatives
who marketed the concept. The expansion of the childcare development
apprenticeship from a one- state program to a national one required this
type of effort. As part of a national initiative to strengthen childcare
workers? skills, Labor sponsored a nationwide

Page 14 GAO- 01- 940 Apprenticeships

videoconference to discuss the value of childcare worker apprenticeships.
Representatives from various state agencies, industry representatives, and
apprenticeship representatives participated in the conference, which led to
further meetings to discuss the possible implementation of the program in
their states. In the three states whose childcare programs we reviewed,
training was developed at the state level, which eliminated the need for
individual employers to develop their own training plans. Apprenticeship
representatives explained the formal training and helped employers
understand how it would integrate with the apprenticeship?s structure.
Similarly, the pharmacy technician apprenticeship required education
outreach. Representatives from the apprenticeship councils in Maine and the
District of Columbia contacted hospitals and pharmacies to convince them of
the value of apprenticeship, particularly in retaining pharmacy technicians.
In Maine, the apprenticeship representative explained how the progressive
wage schedule would be helpful in overcoming the problem a hospital was
having with retaining workers.

Typically, the programs we reviewed required significant resources to
develop and deliver formal training. For example, the development of
technical courses for the production technologist apprenticeship has cost
about $160, 000. The employer who provided this money viewed it as an
investment in high quality training. For the northern California sound and
communication workers, whose apprenticeship training has been provided by a
joint employer/ union council, two sources have provided funding for
training. The employers themselves have contributed $0.30 for each hour that
union employees worked, and the state provided more than $4 per hour from a
training fund for each apprentice?s classroom time.

For some of the programs, particularly those in industries where
apprenticeship is not common, government funding was provided to pay for
program design, as Labor took on responsibility for helping to identify such
funding. Although Labor?s ATELS unit does not have regular appropriations
for program design, in some cases Workforce Investment Act discretionary
funds have been used. 5 The Congress also appropriated $12 million to
bolster Labor?s childcare development worker apprenticeship initiative. To
date, 20 states and the District of Columbia have received grants from this
appropriation, which they have used for various purposes, including
subsidizing formal instruction and funding apprenticeship representatives
who ?market? apprenticeship to childcare centers and monitor the on- the-
job training. Officials we spoke with in

5 The Workforce Investment Act provides employment and training assistance
for youth, adults, and dislocated workers through one- stop centers.

Page 15 GAO- 01- 940 Apprenticeships

three states emphasized the important role that these funds played in
marketing and implementing apprenticeship within the industry. For the new
youth development practitioner apprenticeships that Labor spearheaded, Labor
requested grant proposals in April 2001 from entities that wished to receive
funds to establish individual programs. About $1.45 million will be
available for local organizations and institutions, national organizations,
and an organization that can provide technical assistance as programs
develop their procedures and curriculum. In May 2001, Labor provided
$550,000 to the Computing Technology Industry Association (CompTIA), an IT
trade association, to design an IT technical support specialist
apprenticeship program. The association will use the funds to convene
industry representatives to identify which jobs and skill sets within the IT
career clusters would fit the apprenticeship model.

Several sponsors of the apprenticeship programs we studied used innovative
approaches to meet apprenticeship requirements while accommodating unique
characteristics of the occupation or industry. In four of the programs,
distance learning- formal instruction over the Internet or by
videoconferencing- was used or is being developed to accommodate workers who
could not meet with instructors personally. The production technologist
position?s formal instruction, designed and taught by university personnel
in Illinois, was provided via videoconferencing to workers at the two
participating manufacturing facilities in Shreveport, Louisiana, and Denver,
Colorado. New Hampshire sponsored on- line training for the childcare
development specialist apprentice mentors (the supervisors of the
apprentices) and lent them laptop computers to enable them to participate in
the courses and network with others who were mentoring childcare
apprentices.

Some of the programs adapted their apprenticeships to accommodate unique
characteristics of their occupation or industry. For example, the childcare
industry typically has low wages relative to other industries. Vermont
officials decided to use some of their childcare grant funds to subsidize
the wages for apprentices and their mentors, which they believed would raise
the status of apprenticeship and attract both apprentices and mentors. In
some industries, skill certifications have become key elements of workers?
credentials, and in some of the programs we studied, the certifications were
made part of the training. For example, the sound and communication workers
in northern California integrate into their apprenticeship program the BICSI
training, an industryrecognized certification that some contracts require
all workers to have. Similarly, CompTIA, a trade association that develops
certifications in many technical aspects of personal computer service,
support, and

Page 16 GAO- 01- 940 Apprenticeships

networking, plans to offer certification for IT technical support specialist
apprentices who pass the formal instruction.

Labor has not led a systematic effort to identify apprenticeable occupations
and, therefore, the full potential of apprenticeships may not have been
realized. Some industries with shortages of skilled labor have not used
apprenticeship to meet those needs. Labor has focused its efforts to expand
apprenticeship on a few occupations for which skills need to be improved and
shortages exist. Its efforts to identify new occupations for apprenticeship
have been largely reactive and, as a result, Labor is not influencing the
expansion of apprenticeships to industries in need of skilled training.
Instead of being reactive, Labor can take a leadership role in identifying
occupations where apprenticeship can contribute to providing needed skills,
using available information and staff to better direct the expansion of
apprenticeship nationally. In addition, Labor has identified workforce
development funds to support some of these efforts, but has not
systematically located resources for apprenticeships needing funds for
program design, which could help ensure their success.

Further, Labor has not done all it could to widely disseminate information
about the apprenticeship program, although doing so would result in
employers overcoming their concerns and wanting to participate. The agency
has not set up a way for program sponsors to share information on lessons
learned, such as through online databases that sponsors could query, with
other employers interested in establishing apprenticeships. Such an
information exchange would help potential program sponsors understand how
apprenticeship could be beneficial, overcome difficulties that may arise in
their efforts to establish a program, and alleviate concerns they have about
apprenticeship requirements. For example, this exchange could allow the
classroom training modules and work standards established for programs in
one location to inform employers and apprenticeship representatives in other
locations. Similarly, a more detailed apprenticeship database could help
people who are considering establishing new programs by identifying others
who have experience in operating similar programs. Currently, the database?s
incompatibility with some state systems hinders networking and sharing of
lessons learned among apprenticeship representatives who are working to
establish new programs. It also limits Labor?s ability to measure progress
on the use of apprenticeship in newly approved occupations. Conclusions

Page 17 GAO- 01- 940 Apprenticeships

To expand apprenticeship, particularly into occupations not traditionally
apprenticed, Labor must take the lead in coordinating and promoting the
development of programs. As part of this effort, we recommend that the
Secretary of Labor ensure that ATELS

 Lead a systematic effort to work with state apprenticeship councils and
others interested to identify apprenticeable occupations that have shortages
of skilled labor and establish plans for promoting apprenticeship programs
in these occupations,

 Work with other federal workforce development programs to identify funding
for developing apprenticeships when additional support is needed,

 Establish a mechanism for sharing among Labor representatives and
employers information on apprenticeship programs, particularly those in
occupations not traditionally apprenticed, and

 Ensure that the apprenticeship database contains detailed information on
current programs so that accurate and complete information is shared and
progress in meeting labor market needs can be evaluated.

The Department of Labor commented on a draft of this report, stating that it
agrees with all four recommendations and is planning actions to implement
them (see app. III). Labor plans to have ATELS take the lead in identifying
apprenticeship opportunities for occupations with skilled labor shortages as
well as in new and emerging industries. Through enhanced coordination with
other federal workforce investment system programs, ATELS will explore
additional financial, technical, and communications support for expanding
apprenticeship opportunities. To better share information on apprenticeship
programs, ATELS has engaged a contractor to manage a major public
information initiative, including reaching out to growth industries and
high- demand occupations. Further, Labor stated that in redesigning the
apprenticeship information management system, it has begun to make necessary
improvements, and expects that the final design will provide accurate and
complete information throughout the registered apprenticeship system.
Recommendations for

Executive Action Agency Comments

Page 18 GAO- 01- 940 Apprenticeships

We are sending copies of this report to the Secretary of Labor and other
interested parties. We will also make copies available to others upon
request. If you or your staff have any questions about this report, please
contact me at (202) 512- 7215 or Joan T. Mahagan at (617) 565- 7532. Key
contacts and staff acknowledgments for this report are listed in app. IV.

Sincerely yours, Sigurd R. Nilsen, Director Education, Workforce, and

Income Security Issues

Appendix I: Scope and Methodology Page 19 GAO- 01- 940 Apprenticeships

We took several steps to determine efforts the U. S. Department of Labor has
made to expand apprenticeship to new occupations and to understand the
impediments to starting apprenticeship programs in fields not traditionally
apprenticed. We interviewed Labor officials at the national, regional, and
state levels to obtain an understanding of how apprenticeable occupations
are identified and how apprenticeship programs are registered. We visited
four states to discuss how each state implements and manages the
apprenticeship program, particularly how they approve new programs. From
those programs registered in recent years, we judgmentally selected 10
programs in each state that addressed labor market needs or were in
nontraditional occupations. We collected detailed information on the
approval process and any impediments to it from the responsible federal or
state apprenticeship representative and from the employers. We also spoke
with members of the Federal Committee on Registered Apprenticeship, National
Association of State and Territorial Apprenticeship Directors, as well as
trade associations, unions, and other knowledgeable individuals to discuss
their roles and obtain their views on expanding apprenticeship to respond to
labor market needs.

In order to describe examples of apprenticeship programs that responded to
current labor market needs and how they have done so, we studied in depth
several apprenticeship programs that either had been established or were
being established in occupations that are not traditionally apprenticed. To
identify these, we obtained suggestions from Labor officials, state
apprenticeship council officials, and other knowledgeable experts in
apprenticeship. Our activities in reviewing these programs included speaking
to employers, observing and touring a training facility, and speaking to
developers of the formal training. Appendix I: Scope and Methodology

Appendix II: Summaries of Example Programs Page 20 GAO- 01- 940
Apprenticeships

Following are summaries of programs that exemplify efforts to develop new
apprenticeships that respond to labor needs.

In 1995, high- level representatives of AT& T?s wireless telephone
facilities and the union, International Brotherhood of Electrical Workers
(IBEW), met to discuss their mutual concerns about the workforce?s
capability to meet the company?s needs as manufacturing processes changed.
From that meeting, development of a new apprenticeship was undertaken in an
occupation called production technologist. Production technologists were to
be responsible for both direct production work on products and for indirect
work, such as production planning, routine equipment maintenance, and
training.

Management at the Shreveport, Louisiana, and Denver, Colorado, plants agreed
to implement the apprenticeship with the union. One issue needing resolution
was concern that the position involved combining the skills of a variety of
different workers, such as engineers, electricians, and machinists. Some
union members believed it would hurt workers in individual trades if the
production technologists worked across trades. However, union management
convinced them of the importance of including specific training in the
apprenticeship, such as less- complicated machine repairs that could reduce
production downtime. Labor approved the occupation as apprenticeable in
December 1997.

The production technologist apprenticeship was developed as an 8- year
program. Under the guidance of the Enhanced Training Opportunity Program, a
training program sponsored by both the employer and the union, Northern
Illinois University developed many aspects of the position, including the
training program. Although workers entering an apprenticeship program at the
company would normally have expected to take a pay reduction, IBEW
representatives believed that would discourage high- quality workers from
applying and negotiated with the employer to pay apprentices their previous
salary. Appendix II: Summaries of Example

Programs Production Technologist Apprenticeship

Purpose and Description Development of the Apprenticeship

Appendix II: Summaries of Example Programs Page 21 GAO- 01- 940
Apprenticeships

To date, many of the courses have been developed and taught, although
development of the work process- specific courses has been expensive-
totaling about $160,000 so far. The training developers report that the most
expensive part of course development is the design of tests that measure the
mastery of critical competencies. Videoconference training has been provided
to allow workers from the two geographically dispersed sites to

?attend? classes at Northern Illinois University, but transitioning to
webbased training to reduce telecommunications costs is actively under
consideration. Because of technological changes, the training developers
anticipate that some of the courses, such as those on semiconductors and
industrial controls, will need to be updated before they are presented to
another class of apprentices. In total, the apprenticeship will include 17
major courses as well as some additional training.

One challenge to the apprenticeship?s continuity is the change of employers
during the planning and implementation of the apprenticeship. Initial
apprenticeship program discussions were with AT& T, the program was
implemented when Lucent owned the production facility, and the division was
bought out by Avaya. As of May 2001, Avaya was negotiating the sale of
various manufacturing assets and capacity to another company, leaving the
future of the apprenticeship program uncertain. As a result, the production
technologist apprenticeship program has not expanded since its inception,
although it was initially conceived as a program that would train hundreds
of apprentices. The training developers report, however, that the eight
apprentices in the program have had a major impact on the production
process. Some apprentices received corporate recognition for their novel
work on improving production- related processes.

A trade association of companies and professional members in the computing
and communications market- the Computing Technology Industry Association
(CompTIA)- has recently obtained a grant from Labor to pursue developing an
apprenticeship for workers to provide information technology (IT) technical
support. CompTIA representatives Present Status

Information Technology Technical Support Specialist Apprenticeship

Purpose and Description

Appendix II: Summaries of Example Programs Page 22 GAO- 01- 940
Apprenticeships

had recognized the need for on- the- job experience for these workers. Their
research has revealed that companies often must train their IT service and
support staff to meet company needs. Further, almost half of companies
surveyed would pay a higher salary to an individual who had already
completed an industry- sponsored IT service and support a certification
program that included hands- on working experience, interaction with
customers, and working in teams. CompTIA representatives believe these
skills can only be developed on the job; students at the postsecondary level
often receive technical instruction and successfully test for an industry
certification (some of which CompTIA sponsors), but lack the on- the- job
experience, thereby reducing their employability.

A representative from CompTIA, aware of the concerns about IT staff needing
on- the- job training, heard a Labor Office of Apprenticeship Training,
Employer and Labor Services (ATELS) staff member?s presentation on
apprenticeships at a conference. He realized that the apprenticeship
structure could be used to overcome this skill deficiency but also
recognized that the industry had not delineated the occupations within the
IT service industry and their skill requirements. CompTIA submitted a
proposal to Labor requesting a grant of $550,000 to explore registered
apprenticeship as a means of addressing the IT workforce shortage and the
lack of on- the- job experience that entry- level IT workers often have.
Labor, recognizing that CompTIA was in a unique position to convene a
knowledgeable team from industry, decided to fund the grant, using monies
that the Workforce Investment Act authorized the Secretary of Labor to set
aside for dislocated worker demonstration projects.

With the Labor grant of $550,000, CompTIA plans to convene a group from
industry to identify IT occupations that are apprenticeable, the skills
required, and the related instruction requirements. CompTIA believes that
with the 2,000 hours of work experience required under the apprenticeship
model, the apprentices would be able to gain the skills necessary to perform
many of the entry- level jobs in IT technical support, including customer
service technician, help desk specialist, network technician, configuration
technician, and web developer. The industry representatives would also
develop the work processes and related technical instruction required for
the apprenticeship, including certifications identified as necessary.
CompTIA plans to enlist pilot sites to test the apprenticeship model( s)
that is developed. Development of the

Apprenticeship Present Status

Appendix II: Summaries of Example Programs Page 23 GAO- 01- 940
Apprenticeships

In about 1987, the National Electrical Contractors Association and the IBEW
operating in Northern California realized that more sound and communications
installers were needed to meet the growing demand for the installation of
low- voltage systems, such as those used in remote controls, burglar and
fire alarms, data and telephone lines, and audio and video systems. For
example, sound and communications installers working at a grocery store
construction site could be installing intercom connections throughout the
store, public address systems, alarms at entrances, electronic locks that
could be on timers, data lines from the cash registers, and satellite data
link systems.

A joint apprenticeship and training committee hired a training director to
develop the apprenticeship program. The committee identified an existing
occupation title that could be used, and modified the work process standards
to meet their needs. The training director then developed training for the
program and oversaw its implementation. California?s apprenticeship council
approved the apprenticeship program in 1987, and the first formal training
was started in 1993. Funding for the related instruction is obtained from
two sources. California provides funds that cover about 40 to 50 percent of
the cost of instructors for training. These funds provide a set amount of
money for each hour apprentices spend in the classroom ($ 4.37 as of our
March 2001 visit). In addition, the 135 contractors bound by the bargaining
agreement that supports the joint apprenticeship training committee pay $0.
30 per hour ($ 0.60 beginning on September 1, 2001) for each hour worked by
individuals they employ who are under the bargaining agreement.

The present program requires 6,000 hours of on- the- job training, and 450
hours of related formal instruction provided by the joint apprenticeship
training committee in facilities that are also used for other IBEW training
programs. Instruction ranges from basic courses, such as ?Use and Care of
Hand Tools? to more technical courses, such as ?Certifying the Fiber- Optic
Cabling System,? and includes BICSI training, a certification program on
Sound and

Communications Systems Installer Apprenticeship

Purpose and Description Development of the Apprenticeship

Present Status

Appendix II: Summaries of Example Programs Page 24 GAO- 01- 940
Apprenticeships

cable installation. Twice a week, apprentices attend night classes taught by
instructors from the field who have received training on instructing. As of
June 2001, about 650 apprentices had completed the program and about 1,100
were enrolled.

Labor has spearheaded a national effort to develop apprenticeships for
childcare development specialists- those who provide care directly to young
children. Labor wished to provide a credentialed career path for childcare
providers through registered apprenticeships that would ?reduce

turnover, increase wages for providers, provide a more stable environment
for children, and overall improve the quality of early childhood programs.?
1 Although childcare apprenticeships had been implemented in West Virginia
earlier, this effort was in response to a 1997 White House effort to focus
the nation?s attention on the importance of addressing the need for safe,
affordable, available, quality childcare.

Using funds provided for this purpose in its budget appropriation, Labor
made grants totaling $3.4 million in 1999 and $3.3 million in 2000 to states
to implement this initiative. Interest was aroused within the states and the
childcare industry through a nationally broadcast videoconference hosted by
the Secretary of Labor at a cost of $22, 000. Although the videoconference
created interest, implementing apprenticeship programs in an industry
unfamiliar with the concept involved much coordination and communication. We
discussed implementation of the program with officials from Indiana, New
Hampshire, and Vermont who received firstround grants. In all three states,
the next step was to bring together a diverse mix of representatives- from
industry, apprenticeship oversight agencies, and state agencies- who had an
interest in childcare. The

1 As stated in the February 2, 1999, notice of availability of funds and
solicitation for grant application for the Quality Childcare Initiative
Implementation. Childcare

Development Specialist Apprenticeship

Purpose and Description Development of the Apprenticeship

Appendix II: Summaries of Example Programs Page 25 GAO- 01- 940
Apprenticeships

apprenticeship representatives from the states all reported that several
meetings were held to reach consensus on what the apprenticeship should
entail. One commented that each group had its own jargon, and it took
several meetings to develop a common language.

Training was provided in a consistent way to all apprentices in each state.
Each state developed a common work process that laid out skills that should
be addressed in the 2- year on- the- job portion of the apprenticeship. Each
state also identified specific courses apprentices could attend- four
courses in Indiana, six in Vermont, and six or seven in New Hampshire- and
the colleges where they could attend them. In Vermont, the training is free
to childcare providers, and is funded with childcare grant funds; in New
Hampshire, the first course is free to the apprentice, paid for with a state
health and human service block grant, and half of the remaining courses are
also free; and in Indiana, some scholarship funds are available from an
organization that supports childcare workers. In addition, each state has
developed or is developing training specifically for the apprentices?
supervisors. New Hampshire?s program used funds from the Labor grant to
develop this training and to buy laptop computers for supervisors to borrow
for participating in distance learning courses.

Because wage rates within the childcare industry are relatively low, Vermont
chose to use part of its Labor grant to subsidize wages for the apprentices
and their mentors. Apprentices can earn regular increases that will raise
their wages from $0.25 to $2 an hour over the 2- year apprenticeship.
Supervisors would also receive wage supplements of $0.50 to $2 an hour.
Vermont representatives are planning how to continue this wage subsidy after
the grant funding ends. They have written a grant proposal to obtain some
state Workforce Investment Act funds and have created an advisory board that
is working toward securing long- term funding.

Reaching out to childcare centers to encourage them to sponsor apprentices
entailed considerable effort in each of the states. New Hampshire used some
of its federal grant funds to hire three recruiters who met with childcare
center directors, helped them plan the apprenticeships, and continue to
monitor them. One center director commented that if she had not had a
representative to help develop the apprenticeship program details, she
probably would not have pursued the program. Responsibility for marketing
apprenticeship to childcare centers in Vermont has primarily belonged to the
Agency of Human Service, whose staff members have made many direct contacts
with center directors. Information was also provided to the public through
an extensive website. Indiana used part of its federal grants to hire a
full- time

Appendix II: Summaries of Example Programs Page 26 GAO- 01- 940
Apprenticeships

project coordinator for the childcare apprenticeship project who recruits
both employers and apprentices.

As a result of the implementation of the first round of grant awards to 10
states and the District of Columbia, 251 programs registering 527
apprentices had been established through January 2001. In addition, a second
round of grants has been awarded to 10 states. Labor anticipates
distributing a third round in 2001. Recipients of grant awards are required
to identify ways to sustain the program once federal funding ends. States we
contacted are grappling with this condition and are exploring a number of
options to ensure their program?s longevity. Indiana plans to reduce the
full- time project coordinator position to part- time. Vermont is seeking
sources of funds to sustain its wage subsidies for apprentices and
supervisors. New Hampshire?s Commissioner of Labor has committed to finding
funds to continue to pay for staff to recruit apprenticeship sponsors.

Over the last few years, Labor has recognized that an apprenticeship in the
youth work field could provide quality training for workers who deliver
comprehensive services to young people. Many resources are committed to
serving youth as a result of Labor?s youth opportunity grants and increased
emphasis on youth services under the Workforce Investment Act. Labor wished
to upgrade the field of youth work by developing an occupation targeted to
supporting youth, and believed that apprenticeship provided the opportunity
to systematically examine and address the needs of the field.

Labor itself spearheaded the effort to define the occupation of youth
development practitioner and will be supporting its implementation through
grants. Early on, Labor drafted on- the- job training requirements and
proposed related instruction, and had a focus group comment on them. Labor
held forums around the United States to discuss the apprenticeability of
this occupation and incorporated those results into the apprenticeship
description, receiving enthusiastic support for the Present Status

Youth Development Practitioner Apprenticeship

Purpose and Description Development of the Apprenticeship

Appendix II: Summaries of Example Programs Page 27 GAO- 01- 940
Apprenticeships

apprenticeship. Labor then approved the occupation as apprenticeable and
formally established it as an apprenticeship occupation in October 2000.

In April 2001, Labor announced the availability of $1.45 million in
competitive grants to support the dissemination of information, to publicize
the occupation and apprenticeship, and to support interested communities in
the implementation of the apprenticeship programs. These funds, whose source
is discretionary funding authorized under the Workforce Investment Act, are
intended to stimulate and support the broad implementation of the
apprenticeship. In July 2001, Labor awarded grants to nine entities at the
local community level that can serve as intermediaries to bring together
stakeholders to establish and register youth development practitioner
apprenticeship programs. In addition, Labor awarded three grants to national
organizations that have youth programs employing youth development
practitioners. Labor also awarded a grant to the National Council on
Employment Policy to establish a clearinghouse of information on practice
and curriculum to support local communities in developing and implementing
their apprenticeship programs.

We discussed the planned implementation of a youth development practitioner
apprenticeship program in Alaska with a program representative and the ATELS
state director. The Cook Inlet Tribal Council in Alaska recently obtained a
Youth Opportunity Program demonstration grant to support about 70 staff
members who work directly with youth in 47 locations. Although they have
hired staff with available funding, they realize that the level of education
and experience among staff members varies widely. Most do not have college
degrees, and the employee development director believes the apprenticeship
model is a good way to provide the professional development that staff need.
She also believes that for rural Alaska, apprenticeship is a useful model
because it allows staff to stay in the community to receive the necessary
instruction. This helps retain staff who may not return to their communities
after locating elsewhere.

Because the youth development practitioner occupation was not defined
specifically until recently, curriculum needs to be developed for the
occupation, which will cost an estimated $75,000. The Council estimates that
the development and delivery of training will cost an estimated $300,000 to
$400,000. Staff is widely spread throughout the state and instruction will
need to be provided over the Internet. However, many staff members are in
villages without Internet providers, which necessitates significant spending
on long- distance connections. The employee

Appendix II: Summaries of Example Programs Page 28 GAO- 01- 940
Apprenticeships

development director expects to seek other state funding, possibly through
the Workforce Investment Boards.

At the national level, Labor selected 13 entities to receive grants totaling
about $1.5 million. Meanwhile, at the local level, the Alaska tribal
council?s employee development director noted that interest in the
apprenticeship among the council staff was high, and she planned to start
the apprenticeships by October 1, 2001.

We spoke with apprenticeship officials in Maine and the District of
Columbia, who noted that either hiring or retaining pharmacy technicians is
difficult for employers in their areas. Apprenticeships for pharmacy
technicians are either just recently under way or being developed in each
location. Pharmacy technicians serve as aids to pharmacists in store and
hospital pharmacies, performing such tasks as keeping records of drugs
delivered to the pharmacy, storing incoming merchandise in proper locations,
and cleaning equipment.

In the District of Columbia, CVS, a pharmacy chain, was operating a training
center housed at the District?s Department of Employment Services? center.
An apprenticeship representative from the District apprenticeship council
convinced CVS that they should sponsor apprenticeships for pharmacy
technicians to help meet their growing need for this staff. The
apprenticeship representative explained that the structured on- the- job
training and formal instruction would provide the staff with the necessary
skills. A 2- year apprenticeship program was established that requires 144
hours of formal instruction each year. Workers are released from work to
attend the training, and CVS provides the formal instruction.

In Maine, a pharmacy technician apprenticeship program is being established
with Maine Medical Center, a large hospital with about 40 staff members in
its pharmacy department. The hospital had a high turnover rate for these
technicians- 42 percent in 2000- who often left after they were trained.
After the representative from Maine?s apprenticeship council explained
apprenticeship to the pharmacy department, department Present Status

Pharmacy Technician Apprenticeship

Purpose and Description Development of the Apprenticeship

Appendix II: Summaries of Example Programs Page 29 GAO- 01- 940
Apprenticeships

management became convinced that they needed to increase wages. After an
analysis of comparable wages elsewhere, they decided to raise pharmacy
technicians? wages an average of 13 percent, with the entry- level
apprenticeship wage rising from $8.53 to $9.99 and the top wage rising from
$14.99 to $18.64. Management also established training requirements, one of
which is for apprentices to take two courses each semester from a local
technical college for which the state will pay $100 per course. The college
offers the required courses on- line, allowing other pharmacy technicians
located throughout the state to participate if their employers sponsor
apprenticeship programs.

The courses in the District presently have three apprentices enrolled. In
Maine, some apprentices had already started courses but the agreement with
the Maine apprenticeship council had not been finalized as of June 2001. A
representative from the hospital expected that they would limit the number
of apprentices to 10. The apprenticeship representative hopes to now
convince other hospitals in Maine to replicate the Maine Medical Center?s
program and is reaching out to some pharmacy chains. Present Status

Appendix III: Comments From the Department of Labor Page 30 GAO- 01- 940
Apprenticeships

Appendix III: Comments From the Department of Labor

Appendix III: Comments From the Department of Labor Page 31 GAO- 01- 940
Apprenticeships

Appendix III: Comments From the Department of Labor Page 32 GAO- 01- 940
Apprenticeships

Appendix IV: GAO Contacts and Staff Acknowledgments

Page 33 GAO- 01- 940 Apprenticeships

Sigurd R. Nilsen, Director, (202) 512- 7215 Joan T. Mahagan, Assistant
Director, (617) 565- 7532

In addition to those named above, Kevin F. Murphy, Corinna A. Nicolaou,
Carol L. Patey, and James P. Wright made key contributions to this report.
Appendix IV: GAO Contacts and Staff

Acknowledgments GAO Contacts Staff Acknowledgments

(205551)

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