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APPRENTICESHIP CORNER

By Francine Taitague Safety, Training and Education Coordinator, Guam Contractors Association

Q&A: HOW CAN YOUR COMPANY PAY FOR ITS APPRENTICE PROGRAM?

There is one question I’m asked all of the time by a new construction company wanting to establish an apprentice program: “How is the company supposed to pay for this?”

Good news. You don’t have to pay for all of it!

The Guam Registered Apprenticeship Program (GRAP) makes business privilege tax credits available to businesses that employ apprentices duly enrolled and registered under the terms of an apprenticeship program. These credits include the wages of the apprentice and the personal protection equipment of the apprentice. The tax credits also include the wages and personal protection equipment of the journeyman (construction company employee) training the apprentice during the on-the-job training portion of the apprenticeship program.

Four million dollars in business privilege taxes were credited back to Guam companies during the 2022 fiscal year for taking part in the GRAP. The question is: “was your company’s name on that list?” And if not … why not?

That is the company side of the apprenticeship program. The worker / apprentice can take advantage of a government program to pay for tuition and books.

The Manpower Development Fund was established to pay for local workforce training. When a local company applies at the Guam Department of Labor to hire H2 foreign workers, a fee of $2,091.00 is charged and deposited into the MDF. The proceeds fund apprenticeship programs to train Guam’s construction workforce and other industries with apprenticeship programs.

So when an construction worker registers as an apprentice with their company, the Guam Contractors Association and the Guam Department of Labor, and begins class work — at the GCA Trades Academy, for example — those classes, tuition and books, are covered by the Manpower Development Fund.

The Guam Contractors Association keeps track of hours worked and the education progress of the apprentice. We can guide your company through the process. What have you got to lose?

Join the growing community of apprentices in Guam’s construction industry. 115 apprentices are currently employed, getting paid, increasing their skills, and furthering their education.