Bubby,
There are many reasons. Labour Hire is a cut throat single digit GP business v Training which is typically 60-70% GP. At the same time training businesses (historically - ie pre-Vocation !!) attracted a much higher valuation multiple so it was always more attractive to promote the business as a training group.
The plan was always for the labour hire businesses to "feed" the more profitable training businesses by providing unskilled casuals to train.
Its a pity the "colourful identities" in the industry tainted all operators - and the rest is history !
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