ASE on how its $25 million Department of Labor apprenticeship grant money is being spent

In the most recent episode of ASE’s “Beyond the Wrench” podcast, ASE discusses how ASE is spending its $25 million registered apprenticeship grant from the U.S. Department of Labor.

The new podcast, with Jay Goninen, ASE’s vice president of industry advancement, is meant to promote and improve careers in the automotive, diesel, and collision industries, according to an ASE press release.

Goninen sat down with Michael Coley, ASE Education Foundation president, to cover the apprenticeship grant. Coley shared that the grant is spread out over four years.

“[The] registered apprenticeship is a great way for young people to learn the business,” Coley said. “We all know you can learn a lot out of the textbook, but until you get in the shop and really do the job, you’re not really going to learn it. You’re not going to become proficient.”

He added that mentors are the best way for young people to learn the trade because they can talk through mistakes, including why they’re made, and warn against shortcuts to “really help you learn the trade in the right way.”

“There’s too many shops where it’s just sink or swim; we just take young people, throw them on the lube rack, and if they can keep their head above water for six months, maybe we let them look over the shoulder of another tech and try to learn things by osmosis,” Coley said. “Registered apprenticeship is not like that. It’s not sink or swim. It’s structured. It’s a way for, right upfront, the shop to commit to a young person and say, ‘Hey, we’re going to invest in you.'”

Mentors under registered apprenticeship programs are trained beforehand to know what and what not to do, he added.

Coley shares in the podcast that at least 85%, or $21 million, of the grant funding goes directly to registered apprenticeship sponsors under a pay-for-performance model.

“The idea with the pay-for-performance model is hire an apprentice, get a check,” he said. “It’s pretty simple. If you hire an apprentice under the model that we’re working on with the DOL right now (final details to be worked out)… you keep them on the payroll for 90 days, you get a check for $2,500 — the sponsor does… And then if the apprentice stays in the shop, stays employed, continues in the apprenticeship program for nine months, then the sponsor gets an additional $1,000.”

The final details are slated to be worked out with the DOL in October, according to Coley.

Registered apprenticeships require a plan with the DOL, or in some states at the state level, and have certain reporting requirments, including pay and at least one raise offered. Setting up the apprenticeship is the sponsor’s job, Coley said.

“They’ve got the work plan,” he said. “They figure out how are we going to do the related instruction? They figure out how are we going to and where are we going to recruit apprentices, young people or people in general, to come work for us?”

Sponsors, who can work with one or multiple employers, also help identify which technicians would be good mentors and pay plans for them, Coley added.

Coley noted as well that incumbent workers, employees already working in shops, can be put into an apprenticeship program.

New episodes are released every Wednesday and are available on Apple Podcasts, Google Podcasts, Spotify, and all other major podcast platforms, as well as on the ASE Connects YouTube channel.

ASE President and CEO Dave Johnson has written a letter to the industry to stress a critical need for efficient, effective technician training.

“The automotive service industry is navigating a period of rapid change,” Johnson writes. “Vehicles are becoming more complex, customer expectations continue to rise, and the need for highly skilled technicians has never been greater. In this environment, the efficiency and effectiveness of technician training are critical. That is why the decision by several vehicle manufacturers to establish formal ASE certification equivalencies within their manufacturer training program represents a significant step forward for our entire industry.”

He adds that the initiative “reflects a clear recognition of the value ASE certifications bring to the workforce,” and helps standardize training.

Johnson writes that manufacturers also benefit significantly.

“When technicians can bypass redundant training, dealerships avoid weeks of lost productivity and can maintain stronger staffing levels,” he writes. “Hiring becomes more efficient as well since ASE-certified technicians can integrate into OEM training programs without starting from scratch. Training capacity is one of the most limited and valuable resources OEMs possess. By recognizing ASE certifications as proof of foundational competency, vehicle manufacturers can direct their training resources toward those who truly need them.”

Images

ASE logo and secondary podcast image provided by ASE