Third in a five-part series from CONTRACTOR
The vicious cycle of today’s labor crisis is a cruel irony. Trained labor is desperately needed, yet contracting firms find it hard to take on apprentices, because they are stretched thin just trying to meet demand.
“It’s tough for small contracting firms,” said Mike Mayberry, founder and president of HVAC Agent and Plumbing Agent, human resource networks of contracting firms. “They need mechanics who can go out and start earning. It’s hard for small firms to pay someone for on the job training.”
Apprentices like Brian Whitehead are paid for their on-the job training by the contracting firm that hires or “sponsors” them. Sponsors commit to providing on-the-job training at the 1-1 ratio mechanic/apprentice seen in the profile of Whitehead’s typical day in the second article of The Apprentice series.
In most states, including Virginia where Whitehead is sponsored by Atomic Plumbing & Heating of Virginia Beach, apprentices’ hourly rates are a percentage of average journeyman’s wages for the region. As a first year apprentice, Whitehead earned $10 an hour.
"It's comfortable. It pays the rent to my parents," Whitehead said.
The rate increases with each year of Whitehead’s apprenticeship. Apprentices with related experience in the field or through the military must be paid commensurate with that experience, which may vary from Whitehead’s earnings. Such seasoned apprentices may be a more attractive option for small firms who are not able to invest the time or money on someone just starting out.
Invest is the key word, according to Jim Steinle, 2005 chairman of the PHCC Educational Foundation’s Plumbing Apprentice and Journeyman Training Committee, and owner of Atomic Plumbing. The value of having well-trained employees is well-documented, so Steinle’s invests in the training upfront and commands premium pricing when his technicians take over in the field. “I’m strictly service and repair, so my mechanics are always in front of the homeowner,” Steinle said. “Our clients are willing to pay more because they can see that we know what we’re doing. They know we will fix their problem.”
Some contractors also pay for the student’s classroom training, which can be as low as $500 per semester in Whitehead’s region of coastal Virginia. “Many times the contractor and apprentice agree that the apprentice will stay on a few years after getting his journeyman’s license,” Steinle said.
Virginia is among several states that sweetens the incentives for contractors to pay for classroom training costs of apprentice plumbers. A state tax credit is available covering 30 percent of all classroom-training costs, or up to $100 annual credit per student at a private school, up to $2,500.00 annually. Most beneficial to contactors who are sole proprietors, Virginia’s tax credit is allowable against individual income tax, estate tax and trust tax, as well as corporate income tax.
“Wholesalers and manufacturers can be helping out as well,” added Gerry Kennedy, Chief Operating Officer of the PHCC Educational Foundation . “There are apprentice programs from many organizations that would benefit from their facilities, business and marketing savvy, as well as their financial support.”
The industry can also support the apprentice classroom training by steering prospects to apply for the scholarships offered by the PHCC Educational Foundation and its industry partners. 2006 scholarships applications can be downloaded and printed from the Foundation area of PHCC’s website at www.phccweb.org.
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