ATTTO, HSI, Retail Institute Merger in Motion

Since March 2012, three industry training organisations, the Aviation, Tourism and Travel Training Organisation (ATTTO), Hospitality Standards Institute (HSI) and Retail Institute have been engaged in formal merger discussions. This has followed six years of working closely together and collaboration on some key projects.

On Wednesday 12 September 2012, a Deed of Merger was signed by ATTTO, HSI and Retail Institute, committing to form a new Industry Training Organisation named the Service Skills Institute.

"We are very pleased that the Deed of Merger is now signed, but it is still subject to certain conditions," said Ken Harris, HSI Chief Executive, speaking on behalf of the three ITO Chairs.

Each ITO must obtain the necessary support for the merger from their respective industry training sectors and the parties need to obtain recognition and extension of coverage from the Tertiary Education Commission and approval as the standard setting body from the New Zealand Qualifications Authority. Satisfactory completion of financial, legal and other diligence processes is also required.

Harris adds that "the merger is based on the shared view that it will enable the three ITOs to better protect and promote the interests of our industries."

The planned commencement date for the new organisation is 1 January 2013, with a likely transition period of several months as the three organisations complete the integration process. An important condition of the merger is to retain the key capability including the technical skills, knowledge and expertise of each party to ensure that the new ITO, Service Skills Institute, will be able to effectively service and support its industry sectors.

The role of the three existing ITO Boards will be picked up in the Industry Advisory Groups within SSI, representing the interests of their industry sector. Each Industry Advisory Group will also nominate two Directors to the Board, taking up six board positions, with an additional three external independent board members, one of whom will be a representative of employees, appointed through a board selection process.

During the transition period, the frontline operations of the three current ITOs will continue to function on the current business models, providing the same service. Integration will develop best practice systems and processes, and provide improved services to learners, employers and key stakeholders.

The proposed merger is dependent on the support of industry. All three ITOs are now formally seeking support for the merger from their respective industry

ENDS

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