® How to strenghten partnerships with the productive sector? The case of the dual system in Germany Anke Bahl Federal Institute for Vocational Education

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  • 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 28 th 2014
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  • 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 The case of the dual system in Germany
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  • 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 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 Training Company 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
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  • The productive sector: origin and driver of the German VET system
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  • Participation in apprentice training by size of enterprise in 2011 14.2 % provide training 84.8 % provide training 5.000 50.000 100.000 500.000 1 Mio. 2 Mio. 2.1 million enterprises 21.7 % of all enterprises provide training 1.67 million enterprises 335.000 enterprises 80.000 enterprises 14.000 enterprises 45.7 % provide training 67.6 % provide training enterprises in total 1-9 employees 10-49 employees 50-499 employees 500 and more employees thereunder Quelle: Beschftigtenstatistik der Bundesagentur fr Arbeit; Stichtag 21.12.2011
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  • 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 The case of the dual system in Germany
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  • Forecast: Development of qualification requirements in Germany reference: Institute for future of work (IZA), 2007 Levels of qualifications (in percent)
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  • 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 The case of the dual system in Germany
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  • Vocational training act Federal Government Federal states (Lnder) Unions Employers Public-Private-Partnership: Shared responsibility in VET governed by a statutory legislative framework cooperation between the public and private sector common steering, regulation and financing arrangements
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  • National standard: Basic elements of vocational training regulations Designation of the training occupation Duration of the training Occupational profile Training programme Examination requirements Training Standard 2 - 3,5 Years Car Mechatronic Occupational Standard Assessment Standard
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  • Continuous reforms: Training regulations as a means of innovation
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  • Participants in the process of developing training regulations Experts unions Experts employers Coordinator unions BMWi/KMK BMBF Coordinator employers Education Ministers Conference Ministry of Economics Ministry of Education Trade Unions Employers State
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  • Training regulations: Aims of the employer associations Experts employers Coordinator employers Employers Job-specific qualification High specificity of training for the firm / sector Securing the skilled labor needed for regional / national and global competitiveness
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  • Training regulations: Aims of the trade unions / employees Experts unions Coordinator unions Trade Unions Definition of skills that are polyvalent and transferable to other contexts Preservation of labor mobility and mobility of apprenticeship graduates across educational sectors
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  • Training regulations: Aims of the state BMWi/KMK BMBF Education Ministers Conference Ministry of Economics Ministry of Education State Personality development / citizenship Transition of youth into world of work Uniform qualification standards Occupational flexibility and broad educational pathways
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  • 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 (Lnder) 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 levelPlanning and carrying out training in the enterprises
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  • 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 The case of the dual system in Germany
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  • 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) Why do firms train apprentices? - Research on motives
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  • 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
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  • Costs and Benefits of Apprenticeship Training 2007 Average results for 51 training occupations Net costs 2007
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  • Comparison of two occupations (crafts vs. industry) 12493 10503 1990 22114 6586 15528
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  • SME crafts sector Electrician and sanitary trade (25 empl.) Customer Service = part-time trainer / journeyman Projects Construction site Inter-company training centre = part-time trainer / owner = fulll-time trainer
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  • 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 The case of the dual system in Germany
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  • 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
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  • Many Thanks for your attention! Anke Bahl ++49 (0) 228 107- 1407 [email protected] www.bibb.de
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  • Dual System Company / part- time vocational school Lower secondary school Secondary level I 10 to 15/16 years Primary level 6 to 10 years Secondary level II 16 to 20 years Tertiary level over 19 years Weiterbildung Primary school Full-time vocational school Senior level at compr. secondary school Intermediate school Comprehensive secondary school Continuing education UniversitiesContinuing vocational training Source: OECD Education and training system in Germany
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  • Structure of the dual dystem in Germany Cooperation, Coordination Companies (private) Vocational School (public) Didactic Foundation Vocational Training Regulation Occupational Profile Framework Curriculum Examination Requirements Classroom Training Workshop Didactic Foundation Syllabus Timetables Examination Requirements Harmonisation Regulated by Vocational Training Act (Bund) Regulated by School Acts (Lnder) Designation of Learners: Vocational School Students Legal Basis: Compulsory Schooling (School Act) The Trainees are: Youths / Adults The training is completed by the final examination Craft / Journeymans certificate Learning Venues are: Designation of Learners: Apprentices / Trainees Legal Basis: Apprenticeship Contract Learning Venues are: inter-company Vocational Training Establishments Workplace Training Workshop with
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  • Quality assuring of in-company VET within the dual system State (Federal Government) Instruments: laws (e.g. BBIG) and statutory orders (e.g. training regulations) Training companies (companies providing training) Instruments: training contracts and training programmes Competent bodies (chambers of trade, chambers of industry & commerce) Instruments: monitoring, consultation & regulations In-company initial vocational training according to the German Vocational Training Act (BBIG)
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  • 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 Model of construction sector: sectoral training fund
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  • Step by step - Becoming a skilled worker in the building industry
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  • Proposition of a new occupational profile Application meeting at the competent ministry Definition of the Benchmarks of the vocational training regulation Vorphase Draft of training regulation (firm) Draft of framework curriculum (school) Coordination Consultations in Boards Erarbeitungs- und Abstimmungsphase Examination of compliance with legal formalities Adoption by Lnder committee Promulgation in the Federal Gazette Erlass- phase Mostly initiated by employers & employees Designation Lenght of Training Occupational Field Type & Structure of the training Timetable List of skills and knowledge Experts of Federal government Employers Employees Managed by BIBB Permanent Subboard Main Board Consensus principle Vocational training regulations The process behind them
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  • 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: Beschftigtenstatistik der Bundesagentur fr Arbeit; Stichtag 21.12.2011
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  • Variety of skill formation systems in advanced industrial democracies Public commitment to vocational training HighStatist Sweden France Collective Germany Austria Switzerland The Netherlands Denmark Low USA Ireland Liberal Japan Segmentalist LowHigh 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
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  • Large Company of the Manufacturing Industry Power and Electrical Engineering (8600 Empl.) Commercial Training, dual study courses Technical Training; Workshop B Location B C Location C = part-time trainer = full-time trainer Head office / Main location A LocationA = training manager
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  • Industrial Training in the Production Sector Vehicle and Engine Construction, appr. 1500 Employees = part-time trainer/ informal workplace trainer = full-time trainer = training manager Weiterbildung Head of initial and continuous training Trainer / Meister (rotating workforce) Production lab Full-time trainers (with Meister qualification) in training workshop (permanent) IVET training appointee (=Meister) Informal workplace trainers IVET training appointee (=Meister) Vehicle AssemblyEngineering MechanicsLogistics Coordinator IVET training coordinator Informal workplace trainers CVET IVET training coordinator
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  • Head Office Large Company of the Services Sector with Branches Insurance Group (5500 Empl.) = training manager = part-time trainer IVET management VD Vertriebsdirektion (VD) Agentur