1. 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

2. The case of the dual system in Germany
Agenda
The German dual vocational education and training system and its origin in the productive sector
The qualification structure in Germany – The innovative potential of VET
Institutional framework of the dual system – The important role of the social partners
The costs and benefits for training companies
Summary

3. 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
Enables pupils/students to understand and reflect the theoretical fundament of their vocation
Provides opportunities for learning by
integrating the apprentices in real work processes
applying the domain specific contents learned at school in practice
Enables apprentices to acquire the ability to perform professionally on their own
INAP Conference, Annalisa Schnitzler

4. The productive sector: origin and driver of the German VET system

5. Participation in apprentice training by size of enterprise in 2011
in total
thereunder
2 Mio.
1-9
employees
10-49
employees
50-499
employees
500 and more
employees
2.1 million
enterprises
1 Mio.
1.67 million
enterprises
enterprises
80.000
enterprises
50.000
45.7 %
provide training
All in all, only one quarter of all enterprises provide training. The participation of the enterprises in training is closely linked with their size. The larger the enterprise, the more likely is it to provide training.
Glossary
Vocational education and training
Enterprise
Statistics
21.7 %
of all enterprises
provide training
67.6 %
provide training
14.000
enterprises
5.000
14.2 %
provide training
84.8 %
provide training
enterprises
Quelle: Beschäftigtenstatistik der Bundesagentur für Arbeit; Stichtag

6. The case of the dual system in Germany
Agenda
The German dual vocational education and training system and its origin in the productive sector
The qualification structure in Germany – The innovative potential of VET
Institutional framework of the dual system – The important role of the social partners
The costs and benefits for training companies
Summary

7. Forecast: Development of qualification requirements in Germany
Levels of qualifications (in percent)
reference: Institute for future of work (IZA), 2007

8. The case of the dual system in Germany
Agenda
The German dual vocational education and training system and its origin in the productive sector
The qualification structure in Germany – The innovative potential of VET
Institutional framework of the dual system – The important role of the social partners
The costs and benefits for training companies
Summary

9. Public-Private-Partnership: Shared responsibility in VET
Vocational training act
Federal Government
Federal states
(Länder)
Unions
Employers
governed by a statutory legislative framework
cooperation between the public and private sector
common steering, regulation and financing arrangements
The Vocational Education and Training Act
Private-public partnership: determines the role of the stakeholders, their rights and duties
Clear financing rules: enterprises cover their own training costs (e.g. apprenticeship pay, cost of trainers, material). The government is funding vocational schools, research in the field of vocational education and training and training promotion programmes.
Organisational infrastructure through the chambers: accreditation of training companies, registration of training and work experience agreements, examinations and certification
Core elements of vocational education and training: determination of the learning venues, provision of the training duration and the examination requirements; provisions regarding the training agreement and the recognition of previous learning; apprenticeship pay etc.
Federal Institute for Vocational Education and Training (BIBB): platform for dialogue by decision-makers, development and research institute. Carries out research, development and advisory services for politics and practice.

10. National standard: Basic elements of vocational training regulations
Designation of the training occupation
„Car Mechatronic“
Duration of the training
„2 - 3,5 Years“
Occupational profile
„Occupational Standard“
Training programme
„Training Standard“
(2) Vocational education and training in the dual system means that the enterprises are responsible for providing and funding training. However, enterprises are allowed to train young people only in the government-approved training occupations. The specification of binding training regulations ensures uniform national standards that do not depend on the requirements of the enterprise at any given time. Quality control over in-company training, that is, over the aptitude of the companies providing the training and of the company training personnel, is assumed by the competent bodies, the chambers. The enterprises assume the costs of in-company training and provide the trainees with training allowance, the amount of which is determined in negotiations between unions and management.
Examination requirements
„Assessment Standard“

11. Continuous reforms: Training regulations as a means of innovation

12. Participants in the process of developing training regulations
Coordinator employers
Coordinator unions
Employers
Trade Unions
Experts employers
Experts unions
State
BMWi/KMK BMBF
Ministry of Economics
Ministry of Education
Education Ministers‘ Conference 12

13. Training regulations: Aims of the employer associations
Coordinator employers
Job-specific qualification
High specificity of training for the firm / sector
Securing the skilled labor needed for regional / national and global competitiveness
Employers
Experts employers 13

14. Training regulations: Aims of the trade unions / employees
Definition of skills that are polyvalent and transferable to other contexts
Preservation of labor mobility and
mobility of apprenticeship graduates across educational sectors
Coordinator unions
Trade Unions
Experts unions 14

15. 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
BMWi/KMK BMBF
Ministry of Economics
Ministry of Education
Education Ministers‘ Conference 15

16. 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 main feature of the German VET system is the close partnership between employers, trade unions and the government. This partnership is expressed through the involvement of management and labour in the formulation of the goals and content of vocational education and training. "Social dialogue" and codetermination are of crucial importance for the acceptance of reforms. Of particular importance is the institutionalised form of a close involvement of management and labour in the planning and implementation of in-company vocational education and training. Committees at all levels have been established for this involvement. These bodies deal with basic principles and individual details of implementation and development of vocational education and training. On national level social partner involvement is established with the Hauptausschuss (Main Board) of the Bundesinstitut für Berufbildung (Federal Institute of Vocational Education and Training) on a four-partite basis (Federal Government, States, Employers, Employees). One outstanding task is the involvement in the setting of standards and designing of training regulations. On Länder level there are committees for vocational training, with equal representation of employers, employees and the Länder authorities. They advise the Länder governments on vocational training issues. This does not give management and labour any co-determination in vocational school matters. However, they can advise the state government in this way and also to a certain degree influence concepts and schemes, for example those for providing support for disadvantaged youths, and opportunities for additional qualifications requiring school training. On regional level, the Zuständige Stellen (competent bodies) play an outstanding role. Competent bodies, in the sense of the Berufsbildungsgesetz (BBiG; Vocational Training Act), are above all the chambers of industry and commerce, the chambers of handicrafts, etc. but also various federal and Land authorities. In every competent body there is a vocational training committee which is made up of tripartite representation of employers, trade unions, teachers. It has to be informed and consulted on all important issues of vocational training. Moreover, the committee has to decide which legal regulations are to be passed by for the implementation of vocational training. The most important duties of the competent bodies in vocational training are: ·setting up and keeping the directory of apprenticeships; ·promoting vocational training by providing counselling to enterprises and trainees; ·supervising the implementation of vocational training; ·conducting intermediate, final and further training examinations. The Betriebsverfassungsgesetz (BetrVG; Works Constitution Act) (private sector) and the Personalvertretungsgesetz (PVertrG; Staff Representation Act) (public service) grant works councils or staff councils numerous co-determination and involvement rights at the company level both in the field of initial and continuing training. The fields in which these rights are exerted include collective bargaining on the remuneration of trainees, planning and implementing in-company training, appointing the instructors, realising special in-company education and training measures, concluding employment contracts upon completion of training, continuing training leave. Glossary: Social partners, Vocational training system.

17. The case of the dual system in Germany
Agenda
The German dual vocational education and training system and its origin in the productive sector
The qualification structure in Germany – The innovative potential of VET
Institutional framework of the dual system – The important role of the social partners
The costs and benefits for training companies
Summary

18. 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)
Because training is a part of company tradition
To be able to use trainees during the training period
To secure the next generation of workers for the region
To avoid high employee fluctuation
Because training is the duty of society as a community
To prevent the risk of hiring the wrong employees
To be able to hire the 'best’ workers
To train future employees according to company requirements

19. 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
Benefits during training:
Productive contribution of apprentices
Benefits through retention:
Recruitment costs
Productivity differences
Costs of misappointment
Institutionalised regeneration of staff
Gross cost:
62% costs for apprentices
22 % costs for trainers
4 % “physical” costs
12 Other Costs

20. Average results for 51 training occupations – Net costs 2007

21. Comparison of two occupations (crafts vs. industry)
22114
15528
12493
10503
6586
1990

22. 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

23. The case of the dual system in Germany
Agenda
The German dual vocational education and training system and its origin in the productive sector
The qualification structure in Germany – The innovative potential of VET
Institutional framework of the dual system – The important role of the social partners
The costs and benefits for training companies
Summary

24. 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

25. Many Thanks for your attention!
Anke Bahl
++49 (0)

26. Education and training system in Germany
Continuing education
Weiterbildung
Tertiary level
over 19 years
Continuing vocational training
Universities
Dual System Company / part-time 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

27. Structure of the dual dystem in Germany
Cooperation, Coordination
Vocational School (public)
Companies (private)
Learning Venues are:
Didactic Foundation
Didactic Foundation
Learning Venues are:
Vocational Training Regulation
with
Syllabus
Timetables
Examination Requirements
Occupational Profile
Framework Curriculum
Examination Requirements
Workplace
Training Workshop
Classroom
Training Workshop
inter-company Vocational Training Establishments
Harmonisation
Regulated by
School Acts (Länder)
Regulated by
Vocational Training Act (Bund)
The Trainees are:
Designation of Learners:
Youths / Adults
Designation of Learners:
Vocational School Students
Legal Basis:
Compulsory Schooling (School Act)
Apprentices / Trainees
The training is completed by the final examination
Legal Basis:
Craft / Journeyman‘s certificate
Apprenticeship Contract

28. Quality assuring of in-company VET within the dual system
according to the German Vocational Training Act (BBIG)
3 Player in dem Dreieck
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

29. 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 vocation-oriented 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

30. Step by step - Becoming a skilled worker in the building industry

31. Vocational training regulations – The process behind them
Mostly initiated by employers & employees
Proposition of a new occupational profile
Vorphase
Application meeting at the competent ministry
Designation
Lenght of Training
Occupational Field
Type & Structure of the training
Timetable
List of skills and knowledge
Definition of the Benchmarks of the vocational training regulation
Draft of training regulation (firm)
Draft of framework curriculum (school)
Coordination
Consultations in Boards
Erarbeitungs- und Abstimmungsphase
Experts of
Federal government
Employers
Employees
Managed by
BIBB
Permanent Subboard
Main Board
Consensus principle
Examination of compliance with legal formalities
Adoption by Länder committee
Promulgation in the Federal Gazette
Erlass- phase

32. Distribution of trainees among enterprise size classes in 2011
14.2 % provide training
45.7 % provide training
67.6 % provide training
84.4 % provide training
Quelle: Beschäftigtenstatistik der Bundesagentur für Arbeit; Stichtag

33. 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
Liberal
Japan
Segmentalist
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

34. Head office / Main location Technical Training; Workshop
Large Company of the Manufacturing Industry Power and Electrical Engineering (8600 Empl.)
Head office / Main location
Location B
Location C
Commercial Training, dual study courses 
Technical Training; Workshop  
= training manager 
LocationA
= full-time trainer 
= part-time trainer

35. Head of initial and continuous training
Industrial Training in the Production Sector Vehicle and Engine Construction, appr Employees
Head of initial and continuous training
Trainer / Meister (rotating workforce)
Production lab
Full-time trainers (with Meister qualification) in training workshop (permanent)  
= training manager
CVET 
= full-time trainer
Coordinator
Weiterbildung  
= part-time trainer/ informal workplace trainer   
Vehicle Assembly
Engineering Mechanics
Logistics
IVET training coordinator   
IVET training coordinator
IVET training coordinator
IVET training appointee (=Meister)
IVET training appointee (=Meister)
IVET training appointee (=Meister)   
Informal workplace trainers
Informal workplace trainers
Informal workplace trainers            … …

36. 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  VD      
= training manager
= part-time trainer