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 ®