When you say 'with them', who is 'them' in that sentence?

This has me curious now. What sort of STEM graduates do you employ?

Are you in an attractive industry?

What exactly was the problem with the graduates from that university?

How many graduates had the problem and what were the meetings about?

It raises so many questions.

IT Grads mainly, for development and support work for multiple industries. All up it was around 30 positions across the country, my area was for the Mining and Steel industry and had 6 placement over 3 years. The key issues was the vast majority didn't want to work in a regional area, let alone go to remote locations.
Because is was for mining they had an expectation that they would be earning mega bucks.
This unwillingness to work in a regional areas seemed to extend to the University itself.
Grads were only taught leading edge stuff, and had little or no understanding of older tech. While this may be great for games development and mobile phone apps development . most industry has a mix of leading edge and legacy systems.
So it was often the case that they could when motivated make some interesting things with lego but they didn't know how to make lego.

Tehy also didn't have any concept of making something for a price.

So now we advertise national and internationally for post grads and have a very diverse work force as a result. We also have more women on our team then the average IT department.

Alan, the solution to the STEM shortage, I suggest is a little gentle government nudging of student's degree choices and some integration of "innovation" courses by the universities, with some encouragement from industry.

From 2017, subsidized student loans for Vocational Education and training (VET) programs are being limited to areas where there are jobs. The same could be applied at the university level: http://blog.highereducationwhisperer.com/2016/11/proposed-reforms-for-australian-higher.html