Massive retraining programs in China

Transcription

1 DIFID-WB Collaboration on Knowledge and Skills in the New Economy Massive retraining programs in China China is now still in the transition process from plan economy to market economy. In this process, employment is an very important issue need to be resolved. According to the current requirements of labor employment market in China, Chinese government has been implementing some massive retraining programs. There are: Three Year 10 Million Program, Training Program for Starting Your Business, High Skilled Workers Training Program, and Occupational Certificates Training Program for Higher Vocational Education Institutes Graduates. This paper will give specific introduction about these four massive retraining programs below. 1. Three Year 10 Million Program 1.1 Contents Three Year 10 Million Program means training 10 million laid-off workers within 3 years, and making trainees master necessary occupational skills, change employment ideas, and finally be re-employed. 1.2 Training period This program has been implemented two times, from1998 to 2000 and 2001 to 2003 separately. Chinese government will continue to carry out third time of this program from 2004 to Training scales From the year of 1998 to the year of 2000,this program planned to train million laid-off workers at nationwide. But in reality, it has trained million, among these people, re-employed population reached million, and the re-employed rate reached 65%. In 2001, 4.57 million laid-off workers and unemployed people attended this program s training. Among them, 2.62 million re-employed after this kind of training, the re-employed rate reached 57%. Period Real training (Million) Re-employed population ( Million ) Re-employed rate ? 65% ? 262? 57% % (Source: Achievements of implementing Three Year 10 Million Program, special topic, 1

2 1.4 Organizations Departments of labor and social security at all levels are in charge of the following works: working out plan and related policies of reemployment training, undertake guidance and coordination for this program, and provide expenditure allowance to support reemployment training. Governments at all levels have established re-employment leading groups. To strengthen training, also established reemployment training leading groups. Usually, these training leading groups are composed of delegates of government general office, labor bureau, education bureau, economic and trade commission, trade union, women association, and the communist youth league, etc. Re-employment training network that is composed of employment training centers, skilled worker schools, enterprises, and other vocational and technical training institute provide training for this program. 1.5 Training contents Training focus on the real requirements of labor market, stress on practical skills. Primary vocational skills are main part of training contents that are supplemented by middle and higher vocational skills. The training contents are quite different according to the following different training target groups: Providing vocational skill training for young people: to make them master skill in one field as soon as possible and meet the requirement of employment; Providing practical training in light requirements of job provided by labor market for comparative older people who is badly need job; Providing primary, middle and advanced skilled worker training for those people without skill certificates; Providing promotion training for those people with skill certificates; Providing Starting Your Business training for those want to set up their own business; Providing vocational guidance service for those people that are comparatively older, low education background, but have some vocational skills. This service aims to understand related policies and change their ideas of employment. According to the contents mentioned above, reemployment Training contents can be divided into three parts: vocational guidance, vocational skills and start a business. Vocational guidance training provides information about employment situation, policies, vocation requirements, and the ways to get job, etc. Vocational skills training focus on practical skills, most of these skills mainly cover the fields of computer, salesman, beautification, hair dressing, cooking, electrical appliance repair, automotive maintenance, tailoring, and house-craft, etc. This program also provides training for branch of work, machine work, aquiculture, food process, landscape plant, flowers and plants, etc, to meet local area s requirement. Starting Your Business training provides related policy and regulations, knowledge and sequence to establish 2

3 one s own business, managing methods, and operating and management methods of one s own business, etc. These training courses and contents were decided by market requirements. Departments of labor and social securities at different levels were very active to organize market investigation and prediction to get information about labor resource and enterprises demand, to provide guidance for training institutes to decide the training contents. Therefore, It s possible for training institutes to provide appropriate vocational skill training, starting your business training, and vocational guidance on the basis of combination of real requirements of branch of work and laid-off workers. Most provinces have established related information databases for reemployment training that are effective instruments for related training investigation to decide training requirements. The contents of these databases mainly composed of: database of laid off workers, database of training institutes, database of trainers, etc. These databases can provide the quality and quantity of laid off workers, training conditions, speciality of training institutes, the information of trainers, etc. Most of these information databases is managed by computers, and some information database connected with information database of labor market and vocational introduction agencies, etc. Training Menu is an efficient method usually used by departments of labor and social securities to do market investigation to decide training courses. On the basis of current training resource of training organizations, Training Menu is provided for people who want to be trained. According to the situation that people choose different kinds of training courses, training contents and courses can be decided. Division of standards and teaching and learning materials development in China Employment Training Technical Instruction Center (CETTIC) is a key organization that is in charge of training contents development. The main functions of this division include: organize to compile and revise syllabus and programs of vocational skill training, participate in evaluation on training contents quality, and provide guidance on vocational training materials development, etc. But some other organizations in different provinces, training centers, for instance, also can develop training contents on the basis of the syllabus and programs developed by the division of standards and teaching and learning materials development. Vocational training centers affiliated to departments of labor and social security, skilled worker schools undertake the main tasks to deliver the training of Three Year 10 Million Program. Some schools belonged to departments of education, private training institutes, and training institutes of societal forces have also provided training for this program. 1.6 Training time 3

4 Because this training aims to let trainees to master practical skills, therefore, it usually belongs to short-tem training. Generally speaking, the training to let trainees get vocational certificate will take 3 to 6 months. The training let trainees to get single skill will take several days. But the training time is quite different in different provinces. 1.7 Delivery methods This kind of training is very flexible, which combines full time training with part time training, combines learning hours system with credit system, class instruction with practical operation, etc. If trainees could not finish his/her training in one training program, his or her training experience could be recognized as credit in the same training program next time. He or she doesn t need to repeat the same training experience. Due to administrative management problems (Departments of labor and social security are in charge of training, and departments of education are in responsible for vocational education), this kind of training experience could not be credited towards further school learning at moment. By using of TV, radio station, multimedia, computer network, some provinces also provide distance training for computer operation, nursing, family electrical appliance repair, family service, etc. This distance training is combined with face-by-face guidance, and skill practice. Training software for this distance training contents is provided by CETTIC, and related training institutes that meet the standards of training contents are nominated as auxiliary centers that provide guidance for local trainees. These standards are quite different according to different training contents. Trainees are organized to learning the contents of software provided by CETTIC by using of modern educational technology, in the same time, teachers or trainers in auxiliary centers provide guidance for trainees. After passing examination and verification, trainees could get certificates issued by CETTIC. 1.8 Funds At moment, funds for this program mainly come from: Financial allocations; Unemployment insurance funds, usually 15% of unemployment insurance fee; Enterprises staff education funds, usually 1.5% of total sum of salary of staff in enterprise; All kinds of social donation; Reemployment funds. Governments at different level provide financial allocations that used for the construction of institutes that provide training for Three Year 10 Million Program. Industry and enterprises can use enterprises staff education funds to provide reemployment training for their own staff. Reemployment funds, which are provided by government at different levels, provide appropriate allowance for some training projects in which training targets are laid off workers, and the amount of this 4

5 allowance is decided by the amount of trainees. In the areas without reemployment funds, government provides special funds to be used by combination with unemployment insurance funds. To encourage and support qualified training institutes to provide reemployment training for laid off workers and unemployed people, governments in different provinces and cities have carried out the following effective measures: Providing allowance for this kind of training. Departments of labor above the level of county determine the standard of training allowance by considering the following indicators: training specialties, training hours, training facilities, depreciation rate of fixed assets, training quality, reemployment rate, etc. After examining and verifying the namelists of laid off workers, training contracts, amount of completing training course, training institutes provide reemployment training could get some allowance. Purchasing training products. The meaning of purchasing training products is that government pay the training funds for those laid off workers who reach employment standards and are re-employed after training. Shanghai took the lead in implementing this method. The details of this measure are different in different cities and provinces. Tax remitting policy. In Fujian province, training institutes and enterprises don t need to pay business tax and enterprises income tax for this laid off workers training. In many provinces and cities, laid off workers usually enjoyed this training free of charge for one time. In the same time they enjoyed many preferential policies, access into labor market resource information bank free of charge, for instance. In the year of 2002, re-employment training funds reached billion RMB Yuan, and the expenditure on this training is 1.1 billion RMB Yuan.The gap between this two figures was usually paid by training institutes and expect to be repaid later. Average allowance per person of reemployment training was 238 RMB Yuan. 1.9 Main issues and problems Up to now, reemployment training is facing the following issues: Parts of laid off workers don t want to participate training due to advanced age, low educational level, bad health, bad economic situation, contradiction between learning and work, etc. Mismatch between training contents and market requirements. Laid off workers are ardent to be trained in computer operation, but the position of this kind of job is very small. Shops are badly in need of employees and salesman, but just very small training institutes provide this kind of training. Due to backwardness in employment demand prediction, there is comparatively big blindness in training. There is unbalance among different provinces and cities in the process of implementing this re-employment training program. Some provinces and cities didn t attach importance to this program, responsibilities among different 5

6 departments are not very clear in some provinces and cities, lack of linkages between training and employment policies, etc. Funds haven t been put in place. This situation hinders the development of this training.. Some cities could not get enough training funds, the scope and amount of training funds allocated from unemployment insurance are restricted, the procedure to apply for training funds is too complex, and it s difficult for laid off worker to provide for themselves to participate reemployment training. It s too slow for related agencies to develop some new occupational training materials. This situation could not meet the requirements for new occupational training Future plan As mentioned above, Chinese government will continue to implement the third time of this training program from 2004 to On the basis of summing up the experience of this program, Chinese government will take these following measures in the future: To improve and perfect related laws and regulations, and to establish reemployment training management mechanism and make it perfect. According to the requirement of Decision on Deepening Educational Reform and Promotion Quality Education, Chinese government will work out and perfect related laws and regulations to strengthen training management. The quality of training will be improved in the light of market requirements. The system of No Vocational Qualification Certificates, No Job will be carried out gradually. The unitary method that improving reemployment training just by administrative organizations must be changed. The way of preferential policies and market information guidance will be used to motivate laid off workers to participate training. The mechanism of reemployment training will be formulated, in which vocational training institutes of departments of labor play the leading role depending on reemployment service centers of enterprises, and social vocational training institutes have the supplementary role. To carry out multi-levels training to improve the quality of training. Vocational training institutes will not only provide short, adaptable and fast vocational skill training, but also provide middle and higher vocational training and education on the basis of combination of departments of education and other social mass organizations. Therefore, those young laid off workers with some educational basis and are not eager to find jobs have the chances to receive middle and higher vocational education. To strengthen the management of reemployment training by using of modern technology. To carry out dynamic management on the information of vocational training institutes, specialities offering, and the situation of laid off workers training participation by using of computer technology. It s helpful for the overall plan of reemployment training and the quality improvement of this kind of training. To increase reemployment training investment gradually. At moment, laid off 6

7 workers training is free of charge according to Chinese policy. But there must be costs investment during the process of training. Lots of reemployment service agencies are institutions that have to in charge of their own revenues and expenditures. Vocational training institutes providing reemployment training are economic entities have to take full responsibility for their own profits and losses, it s impossible for them to provide training free of charge for a long time. Therefore, the investment of reemployment training must be brought into line with the state financial plan, and make the resource of reemployment training investment clear, and form benign cycle among training-employment-pay tax-unemployment-retraining to meet the market-oriented process of training. To improve international cooperation, and take international experience as reference. Chinese government hope to cooperate with countries that have advanced training experiences, and carry out bilateral and multilateral cooperation to develop mutually teaching, mutually training, mutually learning, and mutually using cooperative project. 2. Starting Your Business training program 2.1 Background Third industry and small enterprise are becoming new increasing points of employment along with further adjustment of industry and enterprises structure. Therefore, Chinese government encourage laid off workers to start their own business. Since most of laid off workers don t know the situation of market, have no necessary operation and management knowledge, lack of ability to adjust their own strategy on time according to the change of market, therefore lots of businesses set up by laid off workers could not last for long time. To continue to encourage laid off workers to set up their own business, ministry of labor and social security dispatched Notice of suggestions on experiments of starting your business training in 1999, in the same year, starting your business training program started in China. 2.2 Objectives Starting Your Business training program is an integrated part of Three years 10 million training program. The Objective of this program is to make the trainees, which are laid off workers, unemployed people and other social labors having the desires to open their own business, and in the same time, meet related requirements: To have the consciousness of starting their own business, have the consciousness of competition; To master related knowledge in the field of industry and commerce, tax, finance, labor and enterprises operation; To understand the preferential policies for laid off workers and unemployed people to start their own business; To have strengthened competency in enterprises operation and management and 7

8 market decision-making; And finally, to increase the success rate of starting one s own business, therefore, to broaden employment channels. 2.3 Process Ministry of labor and social security (MOLSS) began to organize the exploration into the way of Starting Your Business to resolve the issues of laid off workers in China on the basis of taking the experiences of Starting Your Business in developed countries for reference. Beijing, Shanghai and Suzhou took the lead in this exploration and began to carry out related experiments. They provided training for laid off workers that have desire to start their own business, in the same time, met related requirements. After acquiring primary experiences, this experiment was broadened into more than 30 cities in the year of To provide guidance on Starting Your Business training, MOLSS promulgated Suggestions on Experiments of Starting Your Business Training, Suggestions on Teaching Plan of Start Your Business Training (trial) in 1999, and Notice on Establishment of National Demonstrative Bases of Start Your Business in 10 Cities in 2003 respectively. Start your business training has been carried out nationwide and effectively. 2.4 Training targets At moment, this training mainly focuses on laid off workers and unemployed people that have the desire to start their own business and in the same time meet certain competency requirements and requirements for starting a business ( fund, project, technology, and workplace, etc). 2.5 Organizations There are three kinds of organizations directly be involved into the program of starting your business. They are Leading Group of Starting Your Business Training Program, Consultancy body of Starting Your Business Training Program, and employment training centers, etc. Leading Group of Starting Your Business Training Program : composed of main leaders of department of labor, employment authorities, employment service organizations, and training institutes, etc, this Leading Group has been established to improve the development of Starting Your Business training in different provinces and cities. These leading groups are in charge of these following responsibilities: working out plan of implementing this training, raising funds, and putting related preferential policies into practical, etc. Consultancy body of Starting Your Business Training Program : approval by local government, Leading Group of Starting Your Business training engage directors of departments of industry and commerce, trade commission, tax, finance, bank, public security, health, commodities price, technology supervision, etc, as members of this consultancy body. These members provide consultant to trainees and 8

9 help them to do analysis and revise the plan of starting their own business, and also help trainees to resolve the specific issues in the process of new business register, loan, advisement, recruitment of workers, etc. Generally speaking, employment training centers under departments of labor undertake these training programs. Some cities, like Anshan, have established training centers for Start Your Business, some other cities, like Beijing, have established training networks for Start Your Business which composed of training institutes of departments of labor and social securities, private training institutes and higher educational institutes. 2.6 Training phases and its training contents: Setting up one s own enterprises training is divided into three phases: Basic knowledge and method learning phase: main learning contents include basic knowledge about consciousness, practice of starting a business, marketing, finance management, economy law and regulations, strategy of enterprises development, etc. This phase last 280 training hours. Consultancy and guidance phase: To organize trainees to do market investigation and work out plan of starting a new business. Members of consultancy body or instructors provide consultancy or guidance for trainees on the basis of trainees need, and help trainees to identify the contents of business to be founded that have bright future and meet the demand of market. In the meanwhile, provide help to revise the contents of Plan To Start A Business. This phase will last 2 to 3 months. And follow-up support phase: During the process of starting their own business by trainees, members of consultancy body or instructors provide consultancy and guidance for trainees, and also coordinate related departments to provide support and service for trainees. These supports and services include business registration, archives keeping, social insurance, loan application, marketing adjustment, etc. The duration of this phase depends on different situation, but generally speaking, it lasts 4 to 6 months. These training contents mentioned above are mainly reflected in these following main training courses: marketing, enterprise image management, market investigation and prediction, practical knowledge of economic law and regulation, industry and commerce procedures and tax in the process of starting your business, business competition and innovation, introduction of starting your business, guidance on starting your business training, etc. 2.7 Training Methods Training methods of this program is very flexible, which combine classroom training with examination on the spot, combine case study with systematic teaching. This training program has also used distance education to improve the efficiency of training. 9

10 2.8 Funds Funds of Starting Your Business Training Program come from multi-ways that include reemployment subsidies of government finance budget, unemployment insurance funds, social donation, etc. Laid off workers participate this kind of training free of charge. Starting Your Business Training Program is not only an important measure to improve the development of reemployment, but also an important measure to develop private economy. Therefore, trainees of Starting Your Business Training Program can enjoy the preferential policies of reemployment for laid off workers and unemployed people, supportive policies for individual private economy. At moment, central and local governments have promulgated a serious of preferential policies to encourage laid off workers and unemployed people to employ themselves or start a new business. These preferential policies relate to these aspects of tax, financial support, commodities price, and charge, etc. 2.9 Outcomes of Starting Your Business Training Program Year Amount of trainees Amount of trainees starting a new business Rate of starting a new business , % , , % , ,000 64% (Achievements of Implementing Starting Your Business Training Program, Starting Your Business Training Program, special topic, After three years experiments, Starting Your Business Training Program reaped initial fruits. At the end of 2000, there was 30,000 trainees attended this program throughout the country, among them, started their own business after training that created 74,000 new employment jobs, the rate of starting a new business is 61.6%. In 2001, there were 240,000 trainees attended this program throughout the country, 43.8% of them, or trainees, started their own business or self-employed which created 262,000 new jobs. In 2002, this training program has gotten obvious fruit. 310,000 trainees participated this training program, among them, 280,000 reached the standards of training, and 180,000 successfully started their own business or self-employed, the rate of starting one s own business successfully was 64%. The business started by these trainees usually belonged to small size, labor extensive business, for example, small size cookie shop, restaurant, barber s shop, and repair shop, toys factory, clothes making factory, film development shop, beauty center, etc. Some of these small businesses operating well have employed laid-off workers that have gotten positive social impact Main issues and problems 10

11 Though this training program has gained some achievements, but it still has lots of issues and problems need to be resolved. For instance: Could not put training funds in place; Trainers could not meet the requirements of training, lots of them have no experience of enterprises management and have no experience of starting your business; Some preferential policies could not been put into effect. The procedure of starting a new business was too complex, the scope of tax reduction and exemption was too narrow, and irrational charges were too much, the channel of circulating necessary funds is blocked, the guarantee system of small loans is not perfect, etc. All these issues and problems mentioned above have laid restraints on the development of Starting Your Business Training Program Future plan At present, Starting Your Business Training is facing a rare chance in China. People have gotten a common view on the importance of Starting A Business. Lots of policies have been worked out to develop Starting Your Business Training Program. Chinese government will continue to make the following great efforts to develop Starting Your Business Training Program : To make further efforts to expand the training scale of this program Plan of Strengthening Vocational Training to Improve the Competency of Employment was worked out by MOLSS in According to this plan, Starting Your Business Training Program will be expanded in 100 communities to make more trainees actively develop new projects of starting their own business, and to make the rate of successfully starting a new business reach 40%. Therefore, Chinese government will: ---- broaden the scope of training target. Before, the training target was just laid off workers. With times, this training scope will also include unemployed people and those people that want to change their job. In some cities or provinces, training target should also include young higher education institutes graduates who desire to start their own business, in the same time have the related competencies broaden main body of training institutes. The aim of starting your business training is to cultivate comprehensive competency of starting your business that include marketing, enterprises management, etc. At present, the main body of training institute is unitary, that could not guarantee the development of trainees competency. Therefore, main body of training institutes will be broadened, intermediary agencies, industrial organizations, training companies could become parts of main body of starting your business training program broaden training styles----to use distance training. To relief the issues of implementing Starting Your Business Training Program in west region areas, shortage of funds, teachers, information, for instance, China will carry out 11

12 distance training experiments in 8 provinces in west region areas which include Shanxi, Gangsu, Innermongonia, xinjiang, sichuan, Guangxi, qinghai, and Guizhou. By using of internet technology and satellite data transform technology, high quality resource of starting your business training will be spread into west region provinces. To strengthen the building of VE teacher for Starting Your Business Training Program Teacher training center of starting your business training was established in Shanghai by use of city employment experiment project of ILO and the support of Shanghai bureau of labor. Training institutes will be encouraged to employ different kinds of trainers that include government officials, industrial experts, experts and scholars, and some people who have their own enterprises, etc. To establish small loans guarantee system To learn good experiences and methods in different provinces and cities to establish loan guarantee funds for laid off worker, to develop the procedure of application for small loans, improve the work system and procedure of financial agencies and intermediary agencies. Meanwhile, guidance will be provided for different provinces and cities to combine small loans policy with starting your business training. Participating starting your business training is a prerequisite for aid off workers to get small loan. Policy of loan amount, procedure, duration etc, will favor those people have participated starting your business training program. To strengthen coordination between different branches to put related policies into practice Departments of bureau at different levels will strengthen the communication with departments of finance to get related training funds, to motivate social forces to conduct starting your business training. Meanwhile, departments of labor should unite departments of industry and commerce, tax, city building, etc to put the preferential policies for laid off workers into practice. These policies should include tax reduction and exemption preferential policies for laid off workers to start their own business, for service enterprises to employ laid off workers, etc, to make every laid off workers can enjoy these preferential policies. 3. High skilled workers training program 3.1 Background According to the regulations of Technological rules of Formulating National Vocational Standards, China has following five levels skills: Primary level (level five): can use basic skill to finish regular work of one vocation independently; Middle level (level four): can use basic skill proficiently to finish regular work of one vocation independently; can use specialized skills to finish comparatively complex task under some situation; and can cooperate with others; 12

13 High skill (level three): can use basic skills and specialized skills proficiently to finish comparatively complex work, including partly un-regular work; can deal with problems appearing in the work independently; can guide others work or provide assistance to training general operator; Technician (level two): can use basic skills and specialized skills proficiently to finish comparatively complex work, un-regular work; mastered key operating skills and technology within one vocation; can deal with and resolve technological or arts problems independently; has innovative ability in operating skills and technology; can organize and guidance others to work; can training general operators; has some management ability; Advanced technician (level one): can use basic skills and specialized skills proficiently to finish complex work and un-regular work in every filed of one vocation; mastered key operating skills and technology proficiently within one vocation; can deal with and resolve very difficult technological or arts problems independently; has innovative ability in art and technology reform; can organize to carry out technology transform, technological innovation and specialized training; has management ability. Level five (Primary level) Level four (Middle level) Skill levels National Vocational Standards Level three (High level) Level two (Technician) Level one (Advanced technician) Technological levels High skilled workers are those people have gotten skill qualification certificates of level three, level two and level one. At moment, there are 70 million skilled workers in China. Among them there is 60% primary skilled worker, 36% middle level skilled worker, and just 4% high skilled 13

14 worker. This situation of high skilled worker shortage in China could not meet the requirements of economy development. During The 10 th Five-Year Plan period, the demand for skilled worker will increase 20%-25%, and the percentage of high skilled worker will increase 15 to 20%. There is a very big gap between current situation and future demand. According to the statistics in the first three seasons in 2003, the rate of demand for technician, especially for advanced technician, to supply in 90 cities is smaller than one. A large number of enterprises have lots of order for goods, but lack of skilled workers. For instance, there are shortage of 0.6 million numeric processing operational workers. An investigation on more than 2000 state-owned enterprises was held in 2001, the outcome showed that there was more than 40% of technician and advanced technician that were more than 46 years old. With the retirement of these technician and advanced technician, there will be no successors. High skilled worker training system in China has not taken shape. At present, there are just more that 200 high skilled worker schools and technician colleges which cultivate high skilled workers. The equipment of these institutes is aging and the training scale is limited due to lacking of funding. Therefore, it s impossible to cultivate a large number of high skilled workers in a short time. The situation that curriculum in some of these institutes was subject-oriented could not meet the practical requirements of cultivating high skilled workers. Some enterprises seek quick success and instant benefits, neglecting to train workers. All these situations mentioned above make it impossible for China to get enough high skilled workers. Now China is in the key phase to establish a comparatively well-off society, qualified personnel is one of the most important issues need to resolve. To improve the competitive capacity not only need management personnel, scientific personnel, but also need high skilled workers in frontline of production. Chinese government attaches importance to the cultivation of high skilled workers. Therefore, MOLSS launched the high skilled workers training program in September in Objectives On the basis of the combination of national industry technology policies with requirements of labor market and economic structure adjustment, some important industrial cities in the field of manufacture, processing, architecture, energy, environment protection, information communication, and aerospace technology were chosen to carry out high skilled workers training program. The objective of this program is to increase obviously the quantity and percentage of high skilled workers after 3 to 5 years efforts. It means that in 2005, the percentage of high skilled workers, technician and advanced technician to skilled worker should increase 3 to 5 points, and the percentage of high skilled workers of youth should reach 30%. 3.3 Organizations 10 cities which include Beijing and Tianjing, etc, and 10 enterprise groups which include China Mechanical Industry Federation, China Aerospace Science Co., China 14

15 Northern Locomotive & Rolling Stock Industry Co. etc, took the lead to launch electromechanical high skilled worker training program. In October of 2003, information industry high skilled workers training program jointly launched by MOLSS and Ministry of Information Industry, Electricity high skilled workers training program will be soon jointly launched by China Electricity Council and MOLSS. MOLSS (Ministry of Labor and Social Security) is in charge of overall plan and comprehensive management for this program. Leading group of high skilled worker training program in which executive minister of MOLSS is the director and is composed of executive directors of industries and enterprises has established. There is a program office under MOLSS that is in charge of overall arrangement and coordination work of this program. Departments of labor and social securities in different provinces and cities are in charge of related works of organization, management, service, supervision, etc for this program. Some provinces and cities have established program leading groups which are composed of leaders of reform and development committee, economic and trade committee, bureau of finance, trade union, and big enterprises, etc. Local governments, industries and enterprises attach very importance to high skilled worker training program, they bring this training program into line with the plan of industries and enterprises development in local provinces and cities. At moment, 11 industries and enterprises groups have established program-leading groups in which executive directors are these groups directors. These 11 industries and enterprises mentioned above include: China Mechanical Industry Federation; China Aerospace Science and technology group Co.; China First Aviation Group Co.; China Second Aviation Group Co.; China Aerospace Science and Industry Group Co.; China Northern Locomotive & Rolling Stock Industry Co.; China Southern Locomotive & Rolling Stock Industry Co.; China State Shipbuilding Co.; China Shipbuilding Industry Co.; China South Industries Group Co.; China Armament Industry Co. This program leading groups of these 11 industry and enterprise groups are composed of executive directors, representatives from division of human resource, division of youth organization, trade union, training centers in enterprises, etc. These leading groups mainly have the function to decide the training bases and the implementing plan, to endeavor to get funding, and even to organize some training for 15

16 this program, etc. This program will depend on enterprises, colleges of engineering, vocational education schools, and electromechanical advanced skilled worker schools to establish 200 National high skilled workers (electromechanical program) training basis, to carry out training in the field of numerically controlled lathe, mould, special welding, machining, and electromechanical integration. These enterprises should have big scale, advanced technology and some notability. These colleges of engineering, vocational education schools, and electromechanical advanced skilled worker schools should also have related modern practical facilities. Resource developing center of national high skilled worker training program have been established depending on 3 vocational education-training institutes, these centers will develop curriculum, carry out exemplary training and VET teacher training, and organize distance program, etc. 3.4 Outcome: After one year s efforts, high skilled worker training program has achieved gratifying successes. At the end of June this year, 214 training basis for electromechanical high skilled worker training program has been established nationwide, 92,000 participated electromechanical high skilled worker training, among them, 73,000 attended short-tem training, and 19,000 attended long-term training, 40,000 acquired high vocational qualification. (Resource: high skilled worker training program has gained stage achievements, departments of training and employment, MOLSS ) 3.5 Delivery methods High skilled worker training bases work out practical and effective syllabus. On the premise of guarantee of necessary training hours to innovate training forms. According to the background of trainees, to carry out multi-forms training, off the job, half off the job, correspondence, and spare time training, etc. Distance training also be used to improve the usage of multimedia, simulating technology. 3.6 Funds Funds of high skill worker training program mainly come from: Central government financial investment. In 2003, Central government invested RMB to 71 skilled worker schools undertaking the tasks of high skill worker training program, and local government invested 0.23 billion RMB as supporting funds. (Source: MOLSS) Special funds of departments of finance of government in different levels and industries and enterprises. Xian will assign special funds of 2 million RMB to this program every year. Urumqi has allotted 0.7 million for teacher training and other instructional activities in 4 training bases of this program. Chengdu city has invested more than 3 million to improve the conditions of training. China Aerospace Science Co. has allotted and will continue to allot 0.6 million RMB special funds for high skill worker training every year, etc. Northern Locomotive 16

17 & Rolling Stock Industry Co has invested 2.6 million RMB to establish numeric control technology training basis in Dalian in And China Southern Locomotive & Rolling Stock Industry Co. plan to invest 10 million to establish training basis in Zhuzhou city. At present, it has invested more than 3 million RMB for this basis. ( Speech of vice director of department of training and employment in MOLSS in the conference of improving the development of high skill worker training program", department of training and employment, MOLSS). Part of staff and workers education expenditure. According to the State Council related regulations, usually from 1.5% to 2.5% of total salary of staff and workers should be used for staff and workers education according to different situation of enterprises. General enterprises should provide 1.5% of total salary of staff and worker for staff and workers education. But for those enterprises which have good operating situation, or have high skill requirements for its workers, the percentage can be higher and can be up to 2.5%. Part of this expenditure can be used for high skilled worker training program. China Aerospace Science Co. stipulates that every unit must ensure that 2.5% of total salary of staff and workers must be used for education, and less than 1% of total salary of staff and workers must be used for high skilled worker training. ( Circulate a notice of the process of high skilled worker training program in initiating stage, high skilled worker training. Program, special topic, ). Tuition fee of trainees. Training institutes could charge trainees on the basis of related price regulation. Subsidies from reemployment funds that are used for laid-off workers to participate high skilled worker training program. 3.7 Incentive policies To encourage individual to participate in high skilled worker training program, some enterprises have formed related incentive policies. Enterprise will determine staff and workers jobs on the basis of their vocational qualifications and skill levels. The salary and welfare treatment will be decided according to skill level and real contribution. That is, enterprises integrate salary, treatment with skill level and training. Some local governments have implemented the policies that provide high skilled workers with allowance. Jiangshu and Shandong province stipulate that 100 technician and advanced technician be chosen every year and these technicians will enjoy 300 RMB yuan government allowance every month. Nanjing has put forward suggestions on high skilled worker s salary. Government of Shandong province gives the graduates of higher skilled worker schools the same treatments of that from general 3-year higher education institutes. Technicians and advanced technicians enjoy middle and higher professional and technical posts respectively. Xingjing and other provinces have promulgated related policies to encourage staff and workers to attend high skilled worker training program.( Source: Experience exchange, high skilled worker training program, special topic, 17

18 3.8 Supportive measures To support the high skilled worker training program, China employment training Technical Instruction Center organized to develop 80 specialties syllabus for advanced skilled worker schools, training program for 6 occupations since last year. MOLSS held national vocational training teaching materials working conference, three year three thousand kinds of vocational training materials development plan has been worked out. Up to now, MOLSS has promulgated name list of 114 teaching materials. Some provinces and cities have developed high skilled worker training materials to met local requirements. Meanwhile, Teacher training has been done in some enterprises. 3.9 Issues and problems After one year s implementation, high skilled worker training program has achieved some success. This program has explored into the way to formulate the system of high skilled worker s cultivation, and bring the industries and enterprises into play. To a certain degree, this program has heightened the status of high skilled workers. But there are still following issues and problems need to be resolved: The development of this program is unbalance among different provinces and cities. There are difficulties to put funds of this program in place. Funds in lots of cities are very tight. Some enterprises don t run well, it s impossible for them to provide this program with funds. Policies and measures are not very dynamic. Though lots of provinces and cities have promulgated preferential policies for higher skilled worker training, for the treatment of higher skilled workers, but in practice, these policies could not be put into practice. Some enterprises have not realized the importance of high skilled worker training, therefore, didn t devote much attention to the training of high skilled workers Future plan It s a key phase for the development of high skilled worker training program from now to the year of Therefore, Chinese government will: Take active measures to coordinate local governments, industries and enterprises to put the building of high skilled workers in line with overall plan of local personnel training. The responsibilities among related departments, industries, and enterprises in the process of carrying out high skill training program will be made clear. Departments of labor and social securities in different levels, by introducing market mechanism into the process of program management, focus on policy formulation and macro guidance, etc. To mobilize extensively societal forces to speed up the building of high skilled workers. On the basis of summing up the experiences of current training program, to carry out high skilled worker training program in the field of manufacture, processing, energy, environment protection, information communication gradually. To establish training system of high skilled workers depending on enterprises and 18

19 advanced technician schools with big-scale, advanced technology, and qualified teachers and trainers, good reputation. To broaden training scale, imitation technology and multimedia, distance technology, networks, and even satellite technology, etc, will be extensively used. To increase the investment into this program by raising funds from multi channels. First, government loan should be rationally used. MOLSS will continue to make efforts to get support from government loan of central authority budget. This loan mainly used to support key skilled worker schools that have characteristics in the process of training high skilled workers, especially to support technician colleges that cultivate technicians and advanced technicians. Secondly, vigorous measures will be adopted to get special funds from local department of finance. These funds will be used as subsidy to train high skilled workers that are badly needed in the process of local economic development. Thirdly, government will urge enterprises to put training funds in place, and will work out suggestions on the usage of these funds. Fourthly, charge trainees according related standards laid down by price authorities; Fifthly, departments of labor and social security will continue to strive for training allowance from reemployment funds of local departments of finance. To improve and perfect vocational qualification certificate system to push forward the building of high skilled workers. Deepening the reform on technician and advanced technician appraisal system. Meanwhile, to create conditions to give full play to technician and advanced technician in the process of training. To continue to carry out encouraging mechanism to raise the treatment level of high skilled workers. This mechanism includes the following aspects: ---- To implement the policy that combine training, appraisal, employment, with treatment in a bigger scope To provide enterprises with guidance to make high skilled workers, technician, advanced technician enjoy the treatments of assistant engineer, engineer, advanced engineer separately, and higher skilled worker school graduates with higher vocational qualification certificates enjoy treatments of that of two year higher education institutes To improve and perfect the system of skilled worker commendation and encouragement To spread the experiences that to offer chief worker in some key branches of job, stages of production, and carry out lots of skill contests, skill innovative activities, etc. 4. Vocational Qualification Training Program for Graduates of Higher Vocational Education Institutes in is the first year that the first group of higher education institutes students graduate since Chinese government carried out the policy of expanding the scale of 19