How to strenghten partnerships with the productive sector?
The case of the dual system in Germany
Anke Bahl
Federal Institute for Vocational
Education and Training (BIBB),
Germany
Mexiko City, April 28th 2014
®
The case of the dual system in Germany
Agenda
1. The German dual vocational education and training system and its
origin in the productive sector
2. The qualification structure in Germany – The innovative potential of
VET
3. Institutional framework of the dual system – The important role of
the social partners
4. The costs and benefits for training companies
5. Summary
®
German dual system of vocational education and training
Vocational school and the company providing training
fulfill a joint educational remit
1-2 days/ week
4 days/ week
Vocational
School
Training
Company
Teaches
 vocational and
 general educational content
Trains
 specialist competence and
 general skills
Provides opportunities for learning by
 integrating the apprentices in real
work processes
 applying the domain specific
contents learned at school in
practice
Enables pupils/students to understand
and reflect the theoretical fundament
of their vocation
Enables apprentices to acquire the
ability to perform professionally on
their own
®
INAP Conference, Annalisa Schnitzler
The productive sector: origin and driver of the German VET system
®
Participation in apprentice training by size of enterprise in 2011
in total
2 Mio.
2.1 million
enterprises
1 Mio.
thereunder
1-9
employees
10-49
employees
50-499
employees
500 and more
employees
1.67 million
enterprises
500.000
335.000
enterprises
100.000
80.000
enterprises
50.000
45.7 %
21.7 %
5.000
enterprises
of all enterprises
provide training
provide training
67.6 %
provide training
14.2 %
provide training
14.000
enterprises
84.8 %
provide training
Quelle: Beschäftigtenstatistik der Bundesagentur für Arbeit; Stichtag 21.12.2011
®
The case of the dual system in Germany
Agenda
1. The German dual vocational education and training system and its
origin in the productive sector
2. The qualification structure in Germany – The innovative
potential of VET
3. Institutional framework of the dual system – The important role of
the social partners
4. The costs and benefits for training companies
5. Summary
®
Forecast: Development of qualification requirements in Germany
100%
90%
80%
18.30%
10.80%
70%
20.50%
22.20%
23.60%
11.40%
11.60%
11.80%
Levels of qualifications (in
percent)
university degree
60%
Meister / Technician /
business specialist
skilled worker
50%
40%
58.90%
57.60%
56.60%
55.70%
30%
without any voc. Status
20%
10%
12.00%
10.50%
9.70%
9.00%
2003
2010
2015
2020
0%
reference: Institute for future of work (IZA), 2007
®
The case of the dual system in Germany
Agenda
1. The German dual vocational education and training system and its
origin in the productive sector
2. The qualification structure in Germany – The innovative potential of
VET
3. Institutional framework of the dual system – The important
role of the social partners
4. The costs and benefits for training companies
5. Summary
®
Public-Private-Partnership: Shared responsibility in VET
Vocational training act
 governed by a
statutory legislative
framework
 cooperation between
the public and private
sector
 common steering,
regulation and
financing
arrangements
Federal
Government
Federal
states
(Länder)
Employers
Unions
®
National standard: Basic elements of vocational training regulations
Designation of the training occupation
Duration of the training
„Car Mechatronic“
„2 - 3,5 Years“
Occupational profile
„Occupational Standard“
Training programme
„Training Standard“
Examination requirements
„Assessment Standard“
®
Continuous reforms: Training regulations as a means of innovation
®
Participants in the process of developing training regulations
Coordinator
employers
Coordinator
unions
Employers
Trade Unions
Experts
unions
State
Ministry of Economics
Ministry of Education
Experts
employers
Education Ministers‘ Conference
BMWi/KMK
BMBF
®
Training regulations: Aims of the employer associations
 Job-specific qualification
 High specificity of training
for the firm / sector
Coordinator
employers
Employers
 Securing the skilled labor
needed for regional /
national and global
competitiveness
Experts
employers
®
Training regulations: Aims of the trade unions / employees
 Definition of skills that are
polyvalent and transferable
to other contexts
Coordinator
unions
Trade Unions
 Preservation of labor
mobility and
 mobility of apprenticeship
graduates across
educational sectors
Experts
unions
®
Training regulations: Aims of the state
 Personality development / citizenship
 Transition of youth into world of work
 Uniform qualification standards
 Occupational flexibility and broad
educational pathways
State
Education Ministers‘ Conference
Ministry of Economics
Ministry of Education
BMWi/KMK
BMBF
®
Role of the social partners as central stakeholders of the dual system
National level
Participation in the development of training
regulations/standards;
expert recommendations in all fields and aspects of vocational
education and training
Regional level
State (Länder) level
expert recommendations in all fields of vocational education
and training with regard to the coordination between school and
enterprise
Level of competent bodies
Counselling; monitoring of the implementation of training in the
enterprises; holding of examinations; granting of
certificates/qualifications
Sectoral level
Negotiations about the supply of apprenticeships; wage
agreements covering apprenticeship pay
Company level
Planning and carrying out training in the enterprises
®
The case of the dual system in Germany
Agenda
1. The German dual vocational education and training system and its
origin in the productive sector
2. The qualification structure in Germany – The innovative potential of
VET
3. Institutional framework of the dual system – The important role of
the social partners
4. The costs and benefits for training companies
5. Summary
®
Why do firms train apprentices? - Research on motives
 Production motive: firms train mainly because they want to benefit from
the apprentices’ productive contribution (Lindley 1975)
 Investment motive: firms train because they want to retain the
apprentices after training and ensure the skills of their future employees
(Merrilees 1983)
 Screening motive: firms use the training period to observe the
apprentices and choose the best for retention (Stevens 1994)
 Social responsibility: firms train because they want to give young
people the possibility to integrate in the labor market (e.g. Beicht et al.
2004)
 Reputation motive: firms expect that clients, potential employees, and
suppliers have a better image of the firm when they train (e.g. Niederalt
2004)
®
Net costs of apprenticeship training in 2007 for the firm
Average Gross costs, Benefits and Net costs of apprenticeship training in 2007
(per apprentice and year of training)
Gross Costs:
 Apprentices wages
 Costs for trainers
 Infrastructure/facilities
18,000
16,000
15,288 €
14,000
11,692 €
12,000
10,000
Benefits during training:
 Productive contribution of
apprentices
8,000
6,000
3,596 €
4,000
2,000
Benefits through retention:




0
Gross costs
Benefits
Net costs
Recruitment costs
Productivity differences
Costs of misappointment
Institutionalised
regeneration of staff
®
-5,000
-10,000
Fachverkäufer/in im Lebensmittelhandwerk
Hotelfachmann/Hotelfachfrau
Bäcker/in
Friseur/in
Medizinische/r Fachangestellte/r
Zahnmedizinische(r) Fachangestellte(r)
Gärtner/in
Kaufmann/Kauffrau im Groß- und…
Bürokaufmann/Bürokauffrau (Handwerk)
Fachkraft für Lagerlogistik
Koch/Köchin
Reiseverkehrskaufmann/-kauffrau
Rechtsanwaltsfachangestellte/r
Landwirt/in
Maler/in und Lackierer/in
Elektroniker/in -Energie- und Gebäudetechnik
Bürokaufmann/Bürokauffrau (Industrie und…
Veranstaltungskaufmann/-kauffrau
Kaufmann/Kauffrau im Einzelhandel
Steuerfachangestellte/r
Fachangestellte/r für Bürokommunikation
Insgesamt
Bankkaufmann/-kauffrau
Bauzeichner/in
Kaufmann/Kauffrau für Bürokommunikation
Informatikkaufmann/-kauffrau
Metallbauer/in
Florist/in
Industriekaufmann/-kauffrau
Tischler/in
Maurer/in
Versicherungskaufmann/-kauffrau
Fleischer/in
Zahntechniker/in
Anlagenmechaniker/in
IT-Kaufmann/-kauffrau
Informationselektroniker/in
Kraftfahrzeugmechatroniker/in
IT-Elektroniker/in
Drucker/in
Verwaltungsfachangestellte/r
Vermessungstechniker/in
Fachinformatiker/in -Systemintegration
Augenoptiker/in
Mechatroniker/in
Mediengestalter/in
Sozialversicherungsfachangestellte/r
Industriemechaniker/in
Werkzeugmechaniker/in
Chemielaborant/in
Chemikant/in
Elektroniker/in für Betriebstechnik
Average results for 51 training occupations – Net costs 2007
20,000
Net costs of single occupations
15,000
15,528
10,000
5,000
3.596
0
-6,821
Costs and Benefits of Apprenticeship Training 2007
®
Comparison of two occupations (crafts vs. industry)
20,000
15,000
Electronics technician for
industrial engineering
22114
22114
10,000
20,000
10,000
15,000
Electronics technician –
specialising in energy and building technology
15528
10503
5,000
5,000
12493
12493
15528
10503
6586
6586
0
0
1990
1990
Gross costs
Benefits
Net costs
Source: BIBB Cost Benefit Study 2007
®
SME crafts sector
Electrician and sanitary trade (25 empl.)
Inter-company training
centre



Customer
Service
Projects
Construction site






= part-time trainer / owner


= fulll-time trainer

= part-time trainer / journeyman
®
The case of the dual system in Germany
Agenda
1. The German dual vocational education and training system and its
origin in the productive sector
2. The qualification structure in Germany – The innovative potential of
VET
3. Institutional framework of the dual system – The important role of
the social partners
4. The costs and benefits for training companies
5. Summary
®
Benefits of cooperatively structured VET
For enterprises
 next generation of skilled workers assured
 low recruitment costs
 influence on content and organisation of vocational training
For apprentices
 labor market relevant training, i.e. improved chances on the labor market after
completion of training; uniform qualification standards
 motivating situation (earning & learning)
 acquisition of social skills, personality development
For the state
 possibility to offer all school leavers vocational training
 private sector contribution eases the burden on public budgets
 finding partners for developing international competitive standards
®
Many Thanks for your attention!
Anke Bahl
++49 (0) 228 107- 1407
bahl@bibb.de
www.bibb.de
®
Education and training system in Germany
Continuing
education
Weiterbildung
Tertiary level
over 19 years
Continuing vocational training
Universities
Dual System
Company / parttime vocational
school
Full-time
vocational school
Senior level at
compr. secondary
school
Secondary level II
16 to 20 years
Lower secondary
school
Intermediate
school
Comprehensive
secondary school
Secondary level I
10 to 15/16 years
Primary school
Primary level
6 to 10 years
®
Source: OECD
Structure of the dual dystem in Germany
Cooperation, Coordination
Vocational School (public)
Companies (private)
Learning
Venues
are:
 Workplace
• Training Workshop
Didactic Foundation
Didactic Foundation
Vocational Training Regulation
with
• Occupational Profile
• Framework Curriculum
• Examination Requirements
• Syllabus
• Timetables
• Examination Requirements
Learning
Venues
are:
 Classroom
• Training Workshop
• inter-company
Vocational
Training
Establishments
Harmonisation
Regulated by
Regulated by
Vocational Training Act (Bund)
School Acts (Länder)
The Trainees are:
Designation of Learners:
Youths / Adults
Apprentices / Trainees
The training is completed by the
final examination
Legal Basis:
Apprenticeship Contract
Craft /
Journeyman‘s certificate
Designation of Learners:
Vocational School Students
Legal Basis:
Compulsory Schooling
(School Act)
®
Quality assuring of in-company VET within the dual system
according to the German Vocational Training Act (BBIG)
State (Federal Government)
Instruments: laws (e.g. BBIG)
and statutory orders
(e.g. training regulations)
In-company
initial vocational
training
Training companies
(companies providing training)
Instruments: training contracts
and training programmes
Competent bodies
(chambers of trade, chambers
of industry & commerce)
Instruments: monitoring,
consultation & regulations
®
Model of construction sector: sectoral training fund
Sharing the training costs by all firms of the sector
Special funding  incentive for offering in-company training
All companies
in the building trade
pay for training young talents
regardless of whether they offer
training or not:
1,2% of „total gross salary-pay“
Companies, which offer
Vocational Training,
get reimbursed for:
• Inter-company vocationoriented training
• Driving costs for the
apprentices
• Payment for apprentices (in
parts), e.g. Industrial
apprentices:
1st year: 10 months
2nd year: 6 months
3rd year: 1 month
… according to increasing
productivity of the apprentices
®
Step by step - Becoming a skilled worker in the building industry
®
Vocational training regulations – The process behind them
Managed by
• BIBB
• Permanent
Subboard
• Main Board
Definition of the Benchmarks of the vocational
training regulation
Draft of training
regulation (firm)
Draft of framework
curriculum (school)
Coordination
Consultations in Boards
Examination of
compliance with legal
formalities
Adoption by Länder
committee
Promulgation in the Federal Gazette
Erlassphase
Consensus principle
Experts of
• Federal government
• Employers
• Employees
Application meeting at the competent ministry
Erarbeitungs- und
Abstimmungsphase
• Designation
• Lenght of Training
• Occupational Field
• Type & Structure of the training
• Timetable
• List of skills and knowledge
Proposition of a new occupational profile
Vorphase
Mostly initiated by
employers & employees
®
Distribution of trainees among enterprise size classes in 2011
26,1%
27,2%
27,2%
50-499
employees
500 and more
employees
67.6 %
provide
training
84.4 %
provide
training
19,5%
1-9
employees
14.2 %
provide
training
10-49
employees
45.7 %
provide
training
Quelle: Beschäftigtenstatistik der Bundesagentur für Arbeit; Stichtag 21.12.2011
®
Variety of skill formation systems in advanced industrial democracies
Public commitment
to vocational training
High
Statist
Sweden
France
Collective
Germany
Austria
Switzerland
The Netherlands
Denmark
Low
USA
Ireland
Japan
Liberal
Low
Segmentalist
High
Involvement of firms
in initial vocational training
Source: Busemeyer, M.R.; Trampusch, C: Introduction: The Comparative Political Economy of Collective Skill Formation. In:
Busemeyer/Trampusch (Eds.): The Political Economy of Collective Skill Formation. Oxford/ New York 2012, p. 12
®
Large Company of the Manufacturing Industry
Power and Electrical Engineering (8600 Empl.)
Location B
Head office / Main location
Commercial Training,
dual study courses


= training manager

= full-time trainer

= part-time trainer
Location C
Technical Training;
Workshop

LocationA
®
Industrial Training in the Production Sector
Vehicle and Engine Construction, appr. 1500 Employees




Head of initial and continuous training
= training manager
CVET
= full-time
trainer
Full-time trainers (with Meister qualification) Weiterbildung
in training workshop (permanent)
Trainer / Meister
Coordinator
= part-time
trainer/
informal
workplace
trainer
 
   
Vehicle Assembly
(rotating workforce)
Production lab
Engineering Mechanics

IVET training coordinator
IVET training appointee (=Meister)

 …
Informal workplace trainers

Logistics


IVET training coordinator
IVET training coordinator
IVET training appointee (=Meister)
IVET training appointee (=Meister)



Informal workplace trainers

Informal workplace trainers
…
®
Large Company of the Services Sector with Branches
Insurance Group (5500 Empl.)
VD
Vertriebsdirektion
(VD)




Agentur

Head Office
IVET management

Agentur

VD
Vertriebsdirektion
(VD)




Agentur

VD



= training manager

VD


= part-time trainer
®