Human Resources Development, Skills and Labour Mobility Union approaches fostering the acquisition and use of skills

Transcription

1 Human Resources Development, Skills and Labour Mobility Union approaches fostering the acquisition and use of skills OECD-ILO-G20-OECD Knowledge Sharing Workshop, Paris 7-8 October 2015 Presentation by Roland Schneider, Senior Policy Advisor, TUAC

2 Basic assumptions of trade union approaches towards skills and apprenticeships boosting supply of skilled labour is not sufficient to propel the economy onto a higher value added, higher skill trajectory; it is misleading to assume that skills once created will automatically be utilised to productive effect; too many firms continue to compete on the basis of low skill, low cost and low value added production strategies; VET policies can t rely on stand-alone training interventions skills policies need to address the range of contextual factors that shape approaches to skill formation and usage as supply-push effects are not going to do the trick, skills policy needs to go beyond skills supply there is also a demand side problem a potentially low demand for skills relative to their supply (underuse of skills)

3 Processes that link trade union approaches to training outcomes have received limited attention in economic research However, empirical studies have found evidence of a positive link between trade union presence, apprenticeships and training In some cases trade unions have been able to help closing off the low-road towards competitiveness (based on intensive use of low-wage, low-skill labour) and to encourage employers to upgrade production and competitive strategies and to invest more in training

4 Quality apprenticeships facilitate responses to the challenges brought about by globalisation, technology and fluctuating demand Quality apprenticeships help to ensure flexibility in responding to changes in preferences, to fragmentation of demand and technological change to nourish and strengthen flexible specialization and skilled production of goods and services Work-based quality apprenticeships help to explain both the recent competitive success of firms and the employment performance of the youth labour market in Germany

5 The variety of skill formation regimes Public commitment High Statist skill formation systems (SW, F) Collective skill formation systems (D) to VET Low Liberal skill formation systems (US, UK, IRL) Segmentalist skill formation regimes (J) (employers invest in firmspecific VET) Low Involvement of employers in High initial vocational training corresponds with a variety of union approaches towards training and apprenticeships

6 Gap between the rhetoric and reality: Quality apprenticeships are not sufficiently flourishing but fading in some countries In Australia the number of apprentices and trainees in-training as at 31 December 2013 was , a decrease of 12.9% from one year earlier. In the 12 months to 31 December 2013 commencements decreased by 25.9%, to In Germany the number of apprenticeships offered by firms continued its decrease; it fell to its lowest level since the reunification In the UK total employer investment in training decreased by five per cent in the period 2011 to 2013 (from 45.3bn to 42.9bn).

7 Apprenticeships offered by enterprises in Germany In 2014 enterprises offered apprenticeships while youngsters were in search of an apprenticeship apprenticeship contracts were concluded

8 Numbers of employees attending training outside their workplace: Britain

9 Figure : Average annual expenditure on skills training for manufacturing roles (US). Nearly 16 percent of respondents are spending less than $1,000 annually per employee on skills training (See Figure ), However, respondents reported spending a much larger amount, on average, for new hire training than is spent on existing talent. More than 55 percent of companies in our survey spent at least $1,000 per new hire. Source: Accenture 2014 Manufacturing Skills and Training Study

10 The Accenture 2013 Skills and Employment Trends Survey: Perspectives on Training surveyed 400 executives at large US companies to assess hiring, staffing and training strategies. Executives at large US companies confirm that a skills gap persists for their businesses 51 percent of companies expect to increase investments in training over the next two years, and 35 percent of executives whose companies are facing a skills shortage admitted that they have not invested enough in training in the past A previous Accenture survey found that only 21 percent of US workers said they received company-provided formal training between 2006 and The inability to train employees is also causing additional pressure and stress for the majority (87 percent) of companies existing employees.

11 Youth unemployment 2014 Promoting Quality Apprenticeships What are trade unions doing? Participation in apprenticeship programmes and youth unemployment however, there is no automatism Spain 40 Italy 30 France 20 UK Netherlands 10 0 US Australia Denmark Canada Germany Japan Norway Austria Participation in apprenticeship programmes 2012 Source: OECD PIAAC Survey data

12 Trade union involvement in VET and apprenticeship programmes covers a huge variety of activities: design and implementation of frameworks for work-based training ensuring that training programmes correspond not only to the needs of the labour market but also benefits apprentices and learners; contributing to the development of professional qualifications; advising on the content of training, both in training institutions and at the workplace in order to ensure high quality apprenticeships and training; monitoring the quality of work-based training; negotiating terms and conditions for apprentices, in particular their wages; providing guidance for apprentices through trade union representatives and works councils; designing and implementing funding arrangements jointly with employers to facilitate the provision of apprenticeships and training; opening up career path beyond VET by facilitating a transition into HE.

13 Apprenticeship and training issues covered by collective bargaining - maintaining existing and creating additional apprenticeship places. - addressing the needs of disadvantaged groups - securing employment after successful completion of an apprenticeship. - apprenticeship pay (training allowance) and entry level wages. - funding of training - anticipating and coping with change.

14 The polarisation of skills use by industry When firms are categorised by industry they fall into one of three groups: industries in which a relatively high proportion of employees use mathematical skills, read or write at least four pages of text and use computers (financial services, accountancy, legal services, IT and communications and real estate) industries that are average in this respect (media, marketing, PR) industries in which a relatively low proportion use these skills (hospitality and leisure, retailing, manufacturing, and transport)

15 SUBSIDISE APPRENTICESHIP NOT TRAINING IN GENERAL

16 Dual VET: a success story for host companies A Swiss survey confirms that the productive output generated by learners during their apprenticeship enable host companies to derive a net benefit from their participation in VET. In 2009, the net benefit derived from all apprenticeships combined stood at CHF 474 million for a gross investment on the part of host companies of CHF 5.35 billion.