1. THE EVOLUTION OF CONTINUING VOCATIONAL TRAINING POLICIES IN ITALY
Training Supplies
and Policies Department
by F.G.

2. Benchmarking indicators
Literacy and numeracy Skills of an Italian representative sample of 16 to 65 year-olds don’t match with areas of the economy that are growing (Italy’s score is significantly lower than the partecipating states average)
Adult Literacy and
Lifeskills (ALL) Survey
2003
Lifelong Learning
2003
4,7% compared to an
EU25 average of 9,7%
Enterprises providing courses (24% compared to an EU15 average of 62%)
CVTS2
1999
Partecipation rate of employees (26% compared to an EU15 average of 40%)

3. The enterprises investment in CVT has received a strong boost in recent years
CVT enterprise expenditure* -2000/ (Millions Euro)
Year
2000
2001
2002
2003
2004
2005
Total amount
896
918
1.307
1.658
1.603
1.502
1-9 employees
238
188
311
164
270
213
employees
317
285
471
336
439
431
>=250 employees
341
445
525
1.158
895
858
North-West
335
527
620
605
North-East
222
227
301
498
346
Center
189
167
263
304
354
South & Islands
151
169
217
236
299
*Note: households and public sector expenditure excluded

4. Training policies are supported by financial subsidies
Main players and devices supporting CVT public funding system
European Social Fund
(Regulation n. 1081/2006)
National Laws
(Laws 236/1993 and 53/2000)
Industry-based
Training Funds (ITFs)
(Law 388/2000 amended by art. 48 Law 289/2002)
Regions
and Provinces
Social
Partners

5. Funding flow for CVT (until 2000)
(0.30% of payroll as a compulsory levy against involuntary unemployment)
Art. 25 of Law 845/1978
Paid by enterprises to *
1/3 Ministry of Labour
2/3 Ministry of Economy
CVT interventions
*National Social Security Institute

6. Funding flow for CVT (2002-2003 transition phase)
(0.30% of payroll as a compulsory levy against involuntary unemployment)
Paid by enterprises to *
1/3 Ministry of Labour
2/3 Ministry of Economy
net value of
CVT interventions
ITFs
*National Social Security Institute

7. Funding flow for CVT (since 2005) (0
Funding flow for CVT (since 2005) (0.30% of payroll as a compulsory levy against involuntary unemployment)
Paid by enterprises to
Assigned to ITFs *
1/3 Ministry of Labour
2/3 Ministry of Economy
CVT interventions
*National Social Security Institute

8. CVT resources deriving from compulsory levy (0,30%)

9. CURRENT TREND regarding the use of 0,30%
Industry-based Training Funds: the main collector of 0,30% (around 300 Millions Euro)
Residual funding: national Law 236/93
ESF co-financing: REGULATION No 1081/2006 on the ESF
Article 11 - Eligibility of expenditure
“The ESF shall provide support towards eligible expenditure which (…) may include any financial resources collectively contributed by employers and workers”.

10. Industry-based Training Funds (1)
New player in the CVT system
Joint responsability of social partners in the programming and management of the Funds
Setting up through inter-sectoral agreements
Authorisation from the Ministry of Labour in order to start operating

11. Industry-based Training Funds (2)
Four sectors: industry, service/tertiary, handicraft, agriculture
“Nonprofit”organisations
Voluntary basis (choice to join the Fund or not)
Set of rules and regulations which governs their functioning

12. Industry-based Training Funds (3)
Equal number of Social partners representatives in the management bodies structure
Fund Recipients: workers employed by any private company to which employer pay the compulsory levy of 0,30%
Promotion and financing of training plans at corporate, sectoral, local and individual level (by call for proposals)

13. Industry-based Training Funds (4)
TRAINING PLAN: Activities plan concerted by social partners and answering to corporate, sectoral, local and individual needs
Characteristics
An agreement undersigned by the social partners which legitimizes and defines training activities and motivates the reasons of the plan
A project implementing the contents of the agreement

14. Established and authorised Funds 2006

15. National Law 236/93 art. 9 (1) “Urgent measures to support employment”
Traditional channel of funding for ongoing training introduced in 1993 but carried out from 1996
Training activities
financed:
Since 2000 allocated 678 Million Euro
In-company training; teacher training; system actions; corporate , sectoral and territorial plans promoted by social partner; training on individual choice

16. Strategy evolution from 1996 to date
National Law 236/93 (2)
Strategy evolution from 1996 to date
Since 1998 (ML act 37): start up of training on individual choice
Since 1999 (ML act 65): experimentation of concerted training plans
Since 2000 (ML act 92) : funds allocation to Regional Authorities (regionalisation of the Law) with the possibility to finance training actions implementing specific Ministry conditions
Since 2003 (ML Decree 296): strategy shift through the focus on new recipients
Since 2006 (ML Decree 107) strategy shift based upon an integration employment policy

17. National Law 236/93 (3)
Shift in the Law implementation strategy which moves towards a “specialisation” of funding
Encouragement of integration with the ESF and improvement of the various types of public support for continuing training, taking into account the start-up of funds
70% of resources allocated to the regions to be spent on action targeting the following - a) workers employed by private companies with fewer than 15 employees; b) workers employed by any private company with part-time, fixed-length or hybrid “self-employed, waged-work” contracts as well as contracts coming under the reduced working hours, modulated or flexible and project categories provided for by Law no. 30/2003; c) workers employed by any private company that are receiving dole and welfare benefits or are over the age of 45 or hold elementary school or compulsory schooling certificates only. The remaining 30% of resources is targeted at beneficiaries defined and chosen by the regions and autonomous provinces

18. 2006 – change in the allocation criterias
National Law 236/93 (4)
2006 – change in the allocation criterias
90% of resources assigned to the Regions on the basis of the number of workers employed in private companies
10% of resurces shared between the Regions with employment rates lower than the national average

19. National Law 53/00 (1) “Provisions in support of maternity and paternity, the right to care and training and the co-ordination of city hours”
General principle on the basis of which the State, Regional and Local Authorities must provide training aimed at enabling workers to create tailor-made pathways certified and recognised with training credits at the national and European level
(Article 6) The training can either be an independent choice of the worker or arranged by the employer, through Training Plans agreed between the social partners”
(Article 5) Employees can apply for a “suspension of their work contract for leave to train for a period not exceeding 11 working months, either continuous or distributed over the whole of their working lives”)

20. Typical practice of Type B)
National Law 53/00 (2)
Yearly funding allocation: 15,4 Million Euro
Financing two types of actions:
A) workers training projects which, on the basis of contract agreements, envisage partial reductions of working-hour
B) Training projects submitted by the workers themselves
Typical practice of Type B)
Offer further support to reinforce other specific measures dedicated to training on individual choice (ESF, Law 236/93)

21. European Social Fund Period 2000-2006
Objective 3- Priority D - Measure D1 –”Development of continuing training, labour market flexibility and competitiveness of public and private enterprises, with priority for Small and Medium Enterprises” - Measure D2 - “Adjustment of Public Administration responsabilities”
Objective 1 – Measure of Regional Operational Programmes
CVT programming resources ( ): 2,008 Millions Euro (71% Ob.3, 29% Ob.1)
Outcomes ( ): Expenditure: 1,093 Millions Euro
Number of workers involved in training activities: 1,075,170
Period
The new ESF is more focused than the current regulation. Under the 'Regional Competitiveness and Employment‘ objectives, (ex Ob. 3) the ESF will provide support for anticipating and managing economic and social change. Its intervention will focus on increasing adaptability of workers and enterprises, which consists of greater investment in human resources through lifelong learning schemes, making qualifications and skills more accessible and fostering enterprise and innovation
Decrease in total amount of ESF resources

22. Further developments
Building up a “coherent, integrated and not competitive CVT national system”
“National Observatory for CVT” (representatives of Regional Authorities, Social Partners, Ministry of Labour)