Some industries could revolt and set up their own training programmes if they don't like the government's plans for apprenticeships and workplace training.
The government is expected to unveil shortly its proposed replacement for the Te Pūkenga mega-institute, which was set up to deliver both on-job industry training and off-job polytechnic courses, using standards and qualifications set by Workforce Development Councils.
Tertiary Education Minister Penny Simmonds has previously indicated there could be a single over-arching body for industry training, while some of the 16 polytechnics could be merged or placed in regional groupings, and the workforce development councils would be shut down.
Lee Marshall from the Motor Trade Association (MTA) said if the government did not get it right, employers would go elsewhere to train their staff.
Marshall said training continued as normal under Te Pūkenga, but the industry's qualifications had not kept up with changes in the automotive sector.
"We've probably experienced more technological change in our industry in the last five years than we probably did in the 20 that went before. Industry training needs to adjust and needs to keep pace and it's not," he said.
"If it can't keep up with the times, there will be other bodies that come on the sidelines to train either formally or informally. If the organisation itself can't meet the gap, other things will and you'll end up with a fragmented system rather than a cohesive system."
Marshall said MTA wanted an independent industry training organisation for its sector, with the power to set standards and qualifications and deliver training.
Retail NZ chief executive Carolyn Young said training was important for her sector because many young people were not work-ready and needed basic instruction in customer service and other work skills.
She said the government's plan should ensure the same quality of training was provided around the country.
"You really want a solution that is going to be connected to the sector, you want a solution that is going to be cost-effective, be relatively centralized, makes sure that there's consistency of what the programme delivery looks like and is received across the country," she said.
Young said Retail NZ did not have a strong view on the bodies that would oversee industry training, but she could see value in having a combined organisation.
"The size of New Zealand, you would think there would be merit in having one organisation where we can learn across the spectrum because you know whether you're learning in hospitality or learning in retail, if you're learning how to be a manager or you're doing some training courses around management and managing staff, or you know those sorts of things, it's very similar across a range of areas. So you've got leadership and management skills that can be then applied into your own sector.
"So it would make sense to utilise numbers and resources to get the best quality products and training programmes you can. And I don't know that having 11 separate ITOs would mean that we would be as cost-effective and as efficient as we could be," she said.
NZ Certified Builders chief executive Malcolm Fleming said its members were happy with training under Te Pūkenga, especially the ability to choose either on or off-job training from the same organisation.
"What was attractive about Te Pukenga was that the learner is enrolled with one organisation and it really didn't matter whether they did on-site or off-site or often, and this is the thing that was attractive to industry, could have a combination."
Fleming said he hoped that flexibility would continue.
"I wouldn't want us to go back to the either/or, I like the blended approach," he said.
Richard Templer from Engineering NZ said workforce development councils had worked well for setting standards and qualifications.
He said the councils had given industry greater influence over what was taught in polytechnics.
Templer said Engineering NZ wanted that strong input to continue under whatever system replaced the councils.
Hair and Barber New Zealand chief excutive Niq James said the old industry training and polytechnic system had not worked well for the hairdressing sector.
He said the introduction of workforce development councils to set standards and qualifications had been positive.
"We would like to see the focus of training placed back in the workplace with businesses having the ability to train their workers and have more on-job assessment and industry leaders like Wella, Loreal, Schwarzkopf, Goldwell that run internationally recognised training have their courses count towards qualifications," he said.
"A change back to ITO would be a backward step, we would like a wider option of training providers that are moderated by the Workforce Deveolpment Council for quality assurance to make sure outcomes are valid and consistent with the needs of industry."