Part I. Human Resources Development

Chapter III. Vocational training

164. The fundamental provision on this matter can be found in Article 4 of Convention No. 142 under the terms of which: "Each Member shall gradually extend, adapt and harmonise its vocational training systems to meet the needs for vocational training throughout life of both young persons and adults in all sectors of the economy and branches of economic activity and at all levels of skill and responsibility." Recommendation No. 150 echoes this in Paragraph 15, drawing attention to the particular needs of certain sectors, branches of the economy and even certain disadvantaged groups of the population; these questions will be looked at more specifically in Chapters IV and V below.

165. Paragraph 16 of Recommendation No. 150 states that vocational training programmes should be arranged in progressive stages which provide adequate opportunities for (a) initial training for young persons and adults with little or no previous work experience; (b) further training for persons engaged in an occupation; (c) retraining to enable adults to acquire new qualifications for a different occupational field, a subject which will be looked at in more detail in Chapter IV. Initial and further training, which will be dealt with in sections 1 and 2 of this chapter, should, according to Paragraph 24(1) of Recommendation No. 150, be covered as far as possible by standards and guide-lines set or approved after consultation with employers' and workers' organisations (section 3). The effect given to Part V of Recommendation No. 150 dealing specifically with training for managers and self-employed persons will be examined in section 4. The financing of vocational training, touched upon in the instruments, will be looked at in depth in section 5, since experience has shown that the choice of financing system is a basic strategic decision which governs or influences many aspects of human resources development policy.

Section 1. Initial training

166. Recommendation No. 150 (Paragraph 16(a)) naturally places initial training at the beginning of its "progressive stages" in the organisation of vocational training systems. Paragraphs 18, 19 and 20 state that initial training programmes should include both theoretical tuition and practical training in an institution or enterprise. They emphasise the importance of synchronising and co-ordinating the theoretical and practical input and matching programmes to real working conditions and responsibilities. The developments which follow will focus on the general problems of apprenticeship and alternating training. The more specific problems of initial training for young persons, particularly with regard to their entry into working life, are examined in Chapter V.

(a) In-service or institutional training

167. In the past, initial training was often taken on by the different occupational or trade bodies to which the apprentices applied. Various developments and factors, such as the increasing complexity of occupations, the theoretical bases to be mastered, and the attention paid to ensuring equal opportunities, have since led governments to set up major teaching structures. In some, particularly the Nordic, countries and in Central and Eastern Europe, these structures have become, and to a great extent remain, the preferred form of vocational training.

168. Whether institutions or enterprises are in the best position to provide this sort of training is a moot point. Economic restructuring (structural adjustment programmes) on the one hand and the increasingly rapid changes taking place in production processes on the other have led to policies and priorities being revised and training methods reconsidered; and enterprises and institutions are working more closely to lower costs and find ways of matching training supply and demand more effectively. The Committee notes that the ILO has undertaken a number of studies on the costs of institutional vocational training (Endnote 1) and the matching of training supply and demand. (Endnote 2) It points out that in November 1989, on adopting the Plan of Action for Training, Retraining and Labour Mobility, the ILO Governing Body considered that a number of issues remained pending, including the question of how much of the training can be carried out by firms and how much by government. (Endnote 3)

169. Convention No. 142 gives governments the necessary leeway to organise their initial vocational training systems. Many countries, as pointed out, have laws generally passing this responsibility to their ministry of education or labour, whilst in others governments have considered it advisable to establish specific bodies. (Endnote 4)

(b) Recent trends

170. Each country, given its own particular situation, is trying to strike a balance between in-service and institutional training. The different reports received seem to show a marked interest in apprenticeship, (Endnote 5) particularly alternating apprenticeship which should help to match training with employment more cost-efficiently.

171. Alternating training can consist of one full day or two half-days training per week, a week or two each month, six months at a time, or "block release", etc. (Endnote 6) It is a kind of apprenticeship which has developed particularly in Germany, (Endnote 7) Austria (Endnote 8) and Switzerland, (Endnote 9) where many young people move on to an apprenticeship after their compulsory schooling, and where few people begin their working life without training. The same applies to Cyprus, (Endnote 10) where alternating apprenticeship has become the second source of skilled and semi-skilled workers.

172. This kind of apprenticeship has also developed to a certain extent in Denmark, where both approaches exist; Ireland; (Endnote 11) the United Kingdom, although here it is becoming less common and has largely been replaced by another system, the Youth Training Scheme (YTS); Nicaragua, within the framework of the national training system (SINAFORP); and the Netherlands, with the Adult Training Centre. In Australia, basic theoretical training, complementing on-the-job training, is compulsory for most apprenticeships: each state and territory has set up an authority responsible for technical and further education (TAFE); as in many other countries, employers must allow apprentices to attend courses without loss of earnings; in the case of remote areas, correspondence courses replace formal ones and grants for training may be given. In Israel, there are close links between young persons' vocational schools and enterprises: on-the-job training is also given by experienced workers who use the teaching aids provided by the Ministry of Labour and Social Affairs.

173. Other countries have tried to develop alternating apprenticeship, for example Belgium (Endnote 12) and France, (Endnote 13) where such a system already existed in handicrafts. There is a certain interest in developing the system in Canada, particularly in Quebec, and in Italy in sectors such as handicrafts and commerce. Efforts of a similar nature have been reported in some countries with a tradition of institutional training, such as Finland, where apprenticeship contracts have developed; (Endnote 14) Norway, where the percentage of young persons in apprenticeship has doubled to 20 per cent between 1980 and 1987; and Sweden where, since autumn 1988, a new vocational training system is being tried out, with at least 10 per cent of the training being spent at an enterprise in the first or second year, and at least 60 per cent during the third year (usually without remuneration).

174. The form taken by alternating apprenticeships depends in some countries, such as the Dominican Republic, on the sector of activity in question. The Committee notes that "education with production", one of the specific forms of apprenticeship introduced in recent years by some countries in Latin America, the Caribbean and Africa, has been studied by the ILO's technical branches. (Endnote 15) With social, educational and economic objectives in mind, it is used particularly in sectors such as hotels and catering, and construction. Among the fairly recent forms of vocational training, alternating training is increasingly used at university level in various forms such as sponsorship or "partnership", and to help establish small high-technology enterprises. (Endnote 16)

175. In developing countries, apprenticeship is a traditional training system, especially in small enterprises and in the informal sector. (Endnote 17) The economic crisis which has struck these countries and the structural adjustment programmes which have necessitated drastic staff reductions in administrations, often their major employers, have led to difficulties for human resources development. In this context, it may be noted that a few governments, (Endnote 18) aided by the ILO's World Employment Programme, have for some time been looking to micro-entrepreneurs in the informal sector to provide apprenticeship training. Measures aimed at the informal sector are examined in greater depth in Chapter IV. It seems that the training of technicians is a weak spot in developing countries, (Endnote 19) although most large enterprises in developing countries have their own on-the-job training systems and possibly training centres.

176. Vocational training systems are evolving as the situation in the labour market is changing. However, despite all efforts, some countries must face up to a lack of potential apprentices (Endnote 20) or high failure rates. These failures have been attributed to various things, such as low regard for apprenticeship or manual trades in general, difficult working conditions (in the construction industry for example), candidates' poor theoretical knowledge, and the fact that apprentices are too young when they have to choose their apprenticeship. Some countries (Endnote 21) have decided to launch publicity campaigns to advertise this branch of training and its advantages.

(c) Organisation

177. In an attempt to promote alternating or in-service vocational training and avoid difficulties, some countries have legislated, for example, for a time-limit on apprenticeship. (Endnote 22) Others have set a minimum and/or maximum number of apprentices per enterprise, (Endnote 23) a measure which goes a long way to allaying the concerns of workers' organisations, which fear that too much purely in-service training may be detrimental to workers' mobility at a later date, or lead to the exploitation of cheap labour. So, in observations on the application of the Convention, the Confederation of Salaried Employees in Finland (TVK) expressed the opinion that apprenticeship should be more tightly controlled. Nevertheless, the Finnish Employers' Confederation (STK) and the Employers' Confederation of Service Industries (LTK) came out in favour of a permanent increase in practical training under the temporary contract system. (Endnote 24) In France, at least with regard to occupational internships (SIVP), the problem seems to have been solved following an agreement between the social partners by making management and supervision of the programme the responsibility of the National Agency for Employment (ANPE).

178. Legislation in most countries requires a written apprenticeship contract with the enterprise or institution, and some (Endnote 25) have standard contracts that enable the relationship between apprentices and employers to be regulated more efficiently. In some countries, (Endnote 26) a medical certificate is required on entering into an apprenticeship.

179. Vocational training programmes should, according to Recommendation No. 150 (Paragraph 16(e) and (f)), provide adequate opportunities for training in safety and health at the place of work, especially for young persons and adults with little previous work experience; and for acquiring information on rights and obligations in employment, including social security schemes. Workers being trained within an undertaking should be covered by social security measures applicable to the regular workforce (Paragraph 23(1)(b)). To achieve these objectives, the Recommendation suggests making high standards of teaching of occupational safety and health an integral part of training for each trade or occupation (Paragraph 4(6)(e)), and creating and developing an appropriate infrastructure for providing adequate training (Paragraph 6(f)). A few countries offer this kind of education, (Endnote 27) either in an institution or during in-service induction programmes, in accordance with Paragraphs 18(d) and 20(a) of the Recommendation.

180. The Recommendation deals with educational support and trainee assessment in Part XI on research programmes. Whilst these issues may seem obvious with regard to institutional training, this is not the case for apprenticeship. Different ways and means are proposed by governments and used in enterprises to support trainees. For example, some countries have provided for consultants, (Endnote 28) others a system for monitoring the apprentice, (Endnote 29) or examinations (Endnote 30) to verify the acquisition of skills and know-how.

(d) Flexibility

181. The flexibility of Convention No. 142 and Recommendation No. 150 is reflected in the diversity of systems adopted and their modes of application. This is also one of the characteristics of apprenticeship as a means of training. (Endnote 31) Some countries allow apprenticeship contracts to be concluded before the apprentice has reached the statutory minimum age for admission to employment, (Endnote 32) so that they complement compulsory schooling; others allow pre-apprenticeship courses (Endnote 33) or permit the age limit to be raised to involve more adults. (Endnote 34) The length of apprenticeship may also vary. Accelerated (Endnote 35) or short-term (Endnote 36) apprenticeship is possible in several trades, either alternating (Endnote 37) or in stages. (Endnote 38) For people with learning problems, some countries make provision for supplementary courses or special examinations. (Endnote 39) Supplementary courses in certain developing countries may consist of instruction in functional literacy. It appears to be important to provide increasingly broad basic or continuing training to cope with the demands of new technology, and to allow for greater occupational mobility.

Section 2. Further vocational training

182. Nowadays, when workers have to adapt their techniques and skills to constant changes, continuing education is needed "to meet the needs for vocational training throughout life of both young persons and adults", in accordance with Article 4 of Convention No. 142. The reports received from member States provide information, sometimes in the form of statistics, on further training, training in new techniques and continuing education.

(a) Further training in general

183. Some statistics on further training activities in certain countries may be cited. According to a study carried out in 1983 by the United States Bureau of Labor Statistics, 14 per cent of workers in employment have upgraded their skills through on-the-job informal training, 12 per cent have taken further training courses, and 10 to 11 per cent have taken part in programmes organised by their employer, in order to apply for a new job or to upgrade their skills. Around 41 per cent of those who followed further training courses were sponsored by their employer. In 1985, 12 per cent of the active population in the Federal Republic of Germany took part in continuing training activities. In some countries, such as Italy, it has been noticed that women are increasingly demanding training, particularly in order to go back to a job or to become acquainted with new technologies. In Norway, at the beginning of the 1980s, some 25 per cent of the active population, at one time or another, were receiving some form of adult education. In the Netherlands, it was recently estimated that half the staff of large enterprises were taking courses, and between 10 and 25 per cent of staff in small and medium-sized enterprises. The proportions tended to be higher for persons who already had a high level of training, a phenomenon which can be seen in other countries too, such as Sweden.

(b) Training for new technology

184. Today there is considerable interest in training for new technology and a great deal of work is being done to analyse its impact on occupational skills and training in general. In industrialised countries in particular there are constant calls for efforts to be made in the area of intensive training to prepare present and future workers for mastering and applying new technology.

185. Judging by their official statements, a number of governments seem to have heeded these calls. But it may not have been possible to take measures in all cases. Furthermore, it remains to be seen if the training received has actually improved occupational skills and productivity: the reports received do not enable any assessment to be made. This is why the comments which follow will concentrate on some of the salient features of the initiatives taken.

(c) Purpose of continuing training

186. Legislative provisions and the policy statements of governments on the one hand and training institutions and enterprises on the other show a general commitment to the principle of continuing education and training throughout life. The argument put forward relates to the speed with which technological, industrial and social changes are taking place, leaving skills, qualifications and even entire trades far behind: only continuing education and training will enable workers to deal with changes in technology, job content and work organisation.

187. Many countries have formulated explicit continuing training objectives. In France, for example, according to the Labour Code, continuing vocational training forms part of lifelong education. Its purpose is to enable workers to adapt to changing techniques and conditions of work, to facilitate their training for promotion by affording them access to the various levels of culture and skill and to enhance their contribution to cultural, economic and social development. (Endnote 40)

188. In other countries a continuing training system is still in its infancy. In the USSR, the Draft Guide-lines on State Youth Policy, emphasise the need to devise a permanent system for the training, further training and retraining of young persons. The Government of Turkey has a similar objective and is currently setting up a national in-service training system, providing further training and retraining programmes: the World Bank is helping to set up the system, with the ILO providing technical inputs.

189. Many countries in Central and Eastern Europe have for some time been aiming to encourage workers to acquire skills in a second trade, in order to make it easier for them to adapt to technological changes and to retrain them. In general, such training is given in evening courses at technical and vocational education institutions. One characteristic of the adult education system in Poland is the basic training lasting two or three years at vocational schools for those who have received only primary education and have no formal qualifications. An interesting feature is that there are special primary schools whose education/training objective is to offer general primary education combined with vocational training.

190. Within the framework of continuing training measures, some countries are aiming to help a poorly educated labour force to catch up with general skills and knowledge of recent advances in the workplace. Many of these efforts consist of teaching reading, writing and arithmetic. There are examples of just such measures in many developing countries. (Endnote 41) In an industrialised country such as the United States, training and education may be given at the workplace, with the aim of teaching reading, writing and arithmetic, which are considered to be the key to entry into further vocational training.

191. In developing countries, continuing and further training more usually take the form of evening classes at technical and vocational education establishments. The dimension and scope of this kind of activity are modest. In general, the extent of vocational and further training within the undertaking in these countries is negligible, due to their often limited capacity for providing training. The main task of developing countries is to change managerial attitudes towards training. To do this, measures taken with a view to providing employers with the incentive to train their staff and encouraging workers to embark on vocational training could be useful.

192. The experience of the Republic of Korea, which was the subject of a study carried out by ILO technical branches, has been interesting but suggests that creating an efficient enterprise-based further training system is not an easy task. The compulsory training levy imposed on enterprises of a certain size has succeeded in increasing the volume of basic training carried out at workplaces; but such a levy has been less successful where it is necessary to persuade employers to provide further training and retraining. A major factor contributing to apathy has been employers' and therefore workers' preferences for academic qualifications rather than work-related skills. (Endnote 42)

(d) Organisation of continuing and further training

193. Countries usually try to integrate their continuing training measures into existing training infrastructure. Japan, for example, organised an advanced in-service training system. In principle, the enterprises themselves also take responsibility for providing the majority of continuing training with complementary inputs from public and private institutions, for example in meeting regional training needs. This is the basis of the Vocational Development Promotion Law of 1969 (amended in 1985) and the current Basic Plan for Vocational Ability Development.

194. In Germany, continuing training tasks are shared between the federal Government, the Länder and enterprises, which leads to great diversity in practice. Employers generally finance their own further training and retraining programmes. Some of the most sophisticated courses in enterprises are given by large high-technology companies. In the employers' opinion, training and further training are a prerequisite for increasing productivity and competitivity, which encourages them to invest heavily in this area. In many high-technology companies, education and training look beyond immediate needs. General educational subjects are combined with task or occupation-specific further training, in an effort to create a "corporate culture", where the key elements are employees' identification with corporate objectives and their desire for self-improvement.

195. In Germany, Chambers of Industry and Commerce are providing a great impetus by offering further training programmes and certifying officially recognised qualifications. Moreover, there are special inter-enterprise training centres to meet the further training needs of small- and medium-sized enterprises which lack the means to implement their own training programmes.

196. In Germany, the federal Government and Länder also play an important role in financing adult training, further training and retraining of both unemployed persons and workers threatened with job losses. The training is provided by an entire infrastructure of schools, specialised institutions and enterprises. The federal authorities also sponsor Modellversuche or pilot training experiments within enterprises and vocational institutions where curricula and methods are tried out both for initial and further training. If proved successful, these pilot projects are replicated on a larger scale. Recently, a significant reform in trades for which training is provided has been carried out within the framework of what is known as the dual system of alternating apprenticeship. The objective is to increase its content, introduce training taking new technologies into account, with a view to new skills and, more generally, to stimulate creativity and the adaptability of apprentices who take part in the dual system.

197. In a White Paper entitled Employment for the 1990s, (Endnote 43) the Government of the United Kingdom supports the view that continuing training throughout life is not primarily the responsibility of the State. It expects private companies to promote training, encouraged by the new Training and Enterprise Councils. Meanwhile, it is said to be the Government's role to support the efforts made by employers "who should take the initiative and set the pace". Thus, for the fiscal year ending March 1989, the British Government, through the Training Agency, devoted some 615 million to adult training programmes, and around 110 million to employment-related further education programmes for workers. In recent years there have been many initiatives and programmes to increase the opportunities for further training and upgrading of qualifications.

198. In many countries, the task of further and continuing training is shared between the State and the private sector with the government providing incentives and direct financial support. This is particularly the pattern in some English-speaking countries. Thus in Australia (New South Wales), the Training and Policy Branch of the Human Resources Division of the Department of Industrial Relations and Employment administers a joint public/private sector project that also includes the federal Government and a private body, the Australian Computer Society. The federal Government also gives direct financial assistance to the industrial sector under the Innovative Training Projects (ITP) programme. The objective here is to upgrade workers' vocational qualifications and help them to adjust to structural and technological changes.

199. In the United States, adult training and retraining programmes are promoted and subsidised by federal funds under the Vocational Education Act of 1984. At state level, the execution of the programmes is the responsibility of the public and private teaching and training establishments.

200. In Spain, courses on new technology are organised, even during working hours, by employers' or workers' organisations.

201. In Sweden, the traditionally important role played by the Folk High School (Folkhogskola) in complementing adult education and training is declining whilst training provided by employers is increasing. Enterprises which organise further training and retraining courses for their staff receive subsidies from the State.

202. In Central and Eastern European countries, the teaching and training establishments, which until recently were run by the State, are almost entirely responsible for further and advanced training. In-service training by enterprises is not common. Given the move in these countries toward a market economy, it is to be expected that enterprises will play a more active role in training than before, and several of them (Endnote 44) are now providing incentives to employers.

203. The above description of various countries' provisions and programmes for further and advanced training is of necessity a simplified one. Nevertheless, it does show that many countries are indeed trying to upgrade the skills of their workforce. In industrial countries in general the training infrastructure is complex and involves a number of different actors who carry out this kind of activity. The respective responsibilities of enterprises, training institutions and the State are usually clearly defined. In many countries, the public sector is in the process of giving up training activities which were formerly its responsibility, whilst strengthening its co-ordinating, standard-setting and supervisory role. The State, nevertheless, is continuing to play a decisive part in retraining the unemployed and those affected by the restructuring of industry. In most industrialised countries, it seems that entry into advanced and further training activities may be effectively open to all, and that the relevant provisions of the ILO instruments may be widely applied in practice.

204. Many developing countries have indicated that they are endeavouring to meet the further training needs of their workforce. (Endnote 45) In other cases, efforts still fall short of what is necessary. Even countries which, overall, are still relatively poor may have some sectors in which new technologies thrive: (Endnote 46) the State is often trying to improve skill standards via the education system or through their more or less elaborate system of vocational education and training. However, many of these countries lack an in-service training sector which could shoulder the burden of further vocational training. Similarly, they all too often lack the support infrastructure necessary for effective further training and education activities outside the state education and training sector.

Section 3. Vocational training standards and guide-lines

205. Paragraphs 24 to 28 of Recommendation No. 150 focus on the general standards or guide-lines which should cover initial and further vocational training. These standards should indicate, among other things, the training content, on the principles of multi-purpose training and occupational mobility, any examinations or other means of assessing achievement, and the certificates to be issued on successful completion of vocational training. The Recommendation adds in Paragraph 72(c) that provisions should be made for "organising publicly controlled examinations or applying other means of assessing achievement for occupations covered by vocational training standards".

206. Various countries have reported efforts made to formulate training standards, particularly Canada (New Brunswick Province for example), (Endnote 47) Japan, where the standards in question are specifically covered by regulations and laid down (Endnote 48) by ordinances of the Ministry of Labour (also covering the training of instructors) and the United Kingdom where they are formulated by statutory or non-statutory training organisations, according to branch (ITB or NSTO). In the Dominican Republic, the central training body (INFOTEP) may lay down standards and grant certificates to workers educated at educational establishments within the formal system. In Uruguay, the responsibility of the central body (COCAP) includes laying down minimum technical standards to cover the vocational training system.

207. The certificates, diplomas or other qualifications received after successfully completing vocational training, usually following one or more examinations, frequently result in a recognised qualification being awarded, (Endnote 49) sometimes on condition that a trade has been practised for a certain length of time. Here, several problems arise, such as the harmonisation of criteria and requirements within a country or a federative group or an international regional organisation; or the question of state supervision of private initiatives.

208. Thus, in France only public institutions have traditionally been authorised to issue certificates, diplomas and other qualifications at the end of a successful training or educational cycle -- hence the need for all candidates to sit the same examinations as the students or trainees of public establishments: at present, given the considerable diversification of training, including continuing training, it is possible that in practice this rule has been somewhat relaxed; there is a certification board, at the Interministerial Committee for Vocational Training, Social Advancement and Employment, which comprises representatives of the relevant ministries, social partners and experts, and publishes certification lists. In Spain, a certification procedure for trade qualifications and certificates exists and is the responsibility of the General Council for Vocational Training.

209. In Kenya, the Directorate of Industrial Training alone has the legal authority to organise occupational examinations. This is seen as providing some degree of uniformity, since the certificates are recognised throughout the country. There are no conditions for taking these examinations, which helps to put training in the informal sector on an equal footing with that in NGOs and youth training centres.

210. In Mexico, article 5 of the Constitution lays down that in each State, laws determine the occupations for which a qualification or certificate is needed, the necessary conditions for obtaining them and the competent authorities to grant them. The widespread framework agreements (contratos leyes) in the sugar and alcohol industry and in the woollen industry, for example, stipulate that trainees must sit the appropriate examinations, as provided for in section 153H of the Federal Labour Law.

211. In Panama, the central training body (INAFORP) accredits trade certificates and approves foreign certificates.

212. In Australia, in 1989, the Australian Council of Trade Unions (ACTU) adopted a recommendation that training should lead to officially recognised qualifications, accepted by employers throughout the country. In the same year, it was decided to set up a national tripartite Vocational Training Board to lay down qualification standards, providing classifications linked to arbitration awards in order to facilitate occupational mobility.

213. In the United Kingdom, a National Council for Vocational Qualifications was set up by the Government in September 1986 primarily with the aim of ensuring that vocational qualifications are based on skill standards clearly defined by more than 150 working parties made up of employers, trade union representatives and other interested parties. (Endnote 50)

214. Turkey has pointed out that efforts are being made to ensure equivalence between national certificates corresponding to full-time and part-time education, either at school or in apprenticeship, and those obtained abroad under similar conditions.

215. Several countries, including Austria, Germany and Switzerland, describe how programmes and regulations for apprenticeship and examinations are formulated and promulgated. In Germany, the Chambers of Industry and Commerce and the Chambers of Crafts play a major role in preparing and updating these programmes and regulations. The Chambers have a sound knowledge of the problems through their control over in-service training. On the whole, the social partners are closely associated in the preparation of such standards.

216. The Government of Egypt points out that annual trade examinations are a means of checking the reliability of public and private enterprise training and of guarding against misuse. In Japan, qualifying examinations come under the authority of the State or prefectures. In Mauritius, the body responsible for organising examinations, issuing certificates and carrying out research has helped to rationalise and centralise the different examinations set by schools and institutions within or outside the University of Mauritius.

217. Some countries, (Endnote 51) such as Switzerland, as mentioned in Chapter I in respect of modular training, allow intermediate examinations or tests to be taken without institutional training, if certain conditions for practising the trade in question are met: it holds examinations for various levels of skill (master craftsmen, skilled workers and semi-skilled workers, following a short and essentially practical training period).

218. In various countries, (Endnote 52) employers and workers from the occupations concerned sit on examination committees or juries. In United Kingdom (Hong Kong), the 20 branch training offices issue guide-lines for examinations; and in Switzerland, in accordance with the Vocational Training Ordinance, instruction courses for examiners are organised.

219. Further, several countries have long had national, regional and international competitive examinations for apprentices, which help to provide some comparison between national apprenticeship systems and no doubt act as a stimulus.

220. The Committee notes with interest the role played in several of these countries by organisations of employers and workers and thus the effect given to the relevant provisions of the Recommendation. In this context, it is worthwhile recalling that the Recommendation emphasises consultation and participation on the part of employers' and workers' organisations in the various phases of formulating, developing and reviewing vocational training standards and guide-lines (Paragraphs 24(1) and 27). Given the emphasis placed by the standards on the relationship between human resource development objectives and other, mainly economic and social, objectives, it seems timely to reiterate that, when the standards and guide-lines are being formulated, the Recommendation advocates priority being given to vocational training for occupations and levels of skill and responsibility of key importance for social and economic advancement (Paragraph 28(2)).

Section 4. Training for managers and self-employed persons

221. The preparatory discussions on the instruments on human resources development at the beginning of the 1970s noted the recent interest in management training, recognising that this training was different in certain respects from other types of training. The Conference was aware that managers themselves must be trained and thus agreed on the recommendations concerning "training for managers and self-employed persons" (Part V of Recommendation No. 150). Whilst not objecting to the idea of managers being trained, the Workers' members of the Committee on Human Resources did stress that such training should be provided independently of the State, in employers' own institutions. (Endnote 53) Since 1974, interest and need have continued to increase and the ILO has responded with various ideas and activities. (Endnote 54)

222. The last 15 years have seen upheaval and rapid change which has led to human resources management methods being revised. Several countries (Endnote 55) have begun to pay particular attention to their management training programmes.

223. Recommendation No. 150 refers to two particular categories of management staff to be trained: supervisors and the self-employed.

(a) Supervisory staff

224. Paragraphs 29(1) and 30 of Recommendation No. 150 deal with supervisory functions and include the main elements of a human resources management training programme, such as motivation, initiative, responsibility, training, further training, welfare.

225. In industrialised countries, management training is on the increase, beginning in secondary and further education, (Endnote 56) thus familiarising students with management concepts in areas such as personnel, finance, marketing.

226. At university level, this kind of training is very widespread (Endnote 57) in economic or social science faculties, or administration or management schools. Other structures such as productivity centres, (Endnote 58) national management institutes or centres (Endnote 59) can also be found, some of which occasionally specialise -- for example, the national public administration schools (which train high-ranking officials), (Endnote 60) construction and agriculture schools. (Endnote 61)

227. This has prompted the creation of many consultancy firms which have above all focused on further training for management staff in enterprises without a training section, or in large enterprises which, although having their own training section, (Endnote 62) need courses that match their particular aims. Many associations of personnel or enterprise managers, (Endnote 63) for example, also contribute to training managerial staff by organising courses, which encourage an exchange of ideas and experiences.

228. In some countries, (Endnote 64) particular efforts have been devoted to training top-level management staff, given their importance for organising production. New management approaches, sometimes at a time of budgetary restrictions have, in several enterprises, meant that intermediate grades have been discarded and the vertical structure of organisation charts has flattened out, bringing production and decision centres closer together. These developments increase the need for training.

229. In addition to there being more people to train, (Endnote 65) there is the question of the content of training. The first management level covers mainly technicians or recognised specialists, often chosen for their technical skills. In general, they lack management skills and are not very adaptable to change. Therefore, enterprises are paying closer attention to them, first when they are recruited, and secondly when they try to provide them with further training.

230. Management training and further training programmes are increasingly diversified. Traditional institutional education, sometimes including alternating periods spent within an enterprise, is available, along with short-term (Endnote 66) or tailor-made programmes. (Endnote 67) This kind of programme, particularly "learning by doing", is considered by the ILO "the most effective technique for developing both managers and administrators and management trainers or consultants". (Endnote 68) In some countries, programmes are offered to target groups. (Endnote 69)

231. In the countries of Central and Eastern Europe, the current transition to a market economy is causing, at least in concepts of management methods, upheavals which are having (Endnote 70) and will have (Endnote 71) an impact on management training programmes. Existing programmes (Endnote 72) are being modified and new specialised management training centres are being set up, often with the assistance of international bodies. (Endnote 73) Training in new approaches to management is also being carried out through an increasing number of training periods for managers in institutions and enterprises in countries with a market economy and through passing on know-how in the framework of joint ventures.

232. In developing countries, management training needs are scarcely less important. Economic difficulties and structural adjustment programmes in particular have often reduced budgetary allocations to training bodies and institutions, whilst the demand for competent managers is growing. Given the difficulties, considerable efforts are being made to integrate management training programmes into the education system (Endnote 74) and management institutes or centres. (Endnote 75)

(b) Self-employment

233. One consequence of structural changes in recent years is that greater importance has been accorded by governments to self-employment (Endnote 76) and small- and medium-sized enterprises.

234. Recommendation No. 150 (Paragraph 31) advocates vocational training programmes for self-employment, including, in addition to training specific to the technical field concerned, training in the basic principles and practices of business management and of training other persons. Management training, much debated when the standards were adopted, has since been examined on several occasions within the ILO. (Endnote 77) In a recent report on self-employment, the ILO reiterated the definition of the self-employed as "own-account workers and employers (working owners of unincorporated businesses)". (Endnote 78)

235. In many countries, at least in regard to training, self-employed workers are associated with workers in small enterprises. "There are no lower limits to the size of a SE (which includes the formal and informal sectors represented by self-employed)". (Endnote 79)

236. The Committee notes that, in general, the recent assistance programmes for small- and medium-sized enterprises (SME) were launched within the framework of wider policies to combat unemployment. Their training component is very varied (Endnote 80) and aims at persons intending to start a business as well as those already engaged in the day-to-day management of enterprises. (Endnote 81) Sometimes, these programmes have specific objectives and target groups. (Endnote 82) Courses are given in traditional training institutions or specialised institutes for SMEs. (Endnote 83) Private initiatives have also been noted, for example in Canada, (Endnote 84) to encourage entrepreneurship among students in secondary and further education.

237. Further training for the self-employed and staff of SMEs seems to be causing a few problems, in view of the difficulty for these workers in taking time off and participate in training programmes. (Endnote 85) To remedy this, some countries are planning to make enterprises pay a percentage of their wage bill (Endnote 86) into a fund to finance training programmes. In general, it seems that programmes for SMEs are relatively inefficient, mainly due to the large number of enterprises, and the problems of information and co-ordination between the responsible bodies. (Endnote 87)

238. In some countries, enterprises themselves have found ways round these difficulties. For example, inter-enterprise training programmes have been set up, (Endnote 88) geographical or production-related groupings have been established, (Endnote 89) and special joint training funds have been created. (Endnote 90) In various developing countries, assistance programmes for self-employment and SMEs include training measures (Endnote 91) and support for persons who have finished training. (Endnote 92)

Section 5. Financing vocational training

239. Convention No. 142 does not cover the financing of training. Recommendation No. 150 refers to it in Paragraph 72: "... provision should be made for ... providing adequate financial support for implementing the programmes". Other Paragraphs in the Recommendation contain no specific guide-lines advocating one form of financing in preference to another.

240. Paragraph 4(5) of the Recommendation does however encourage "undertakings to accept responsibility for training workers in their employment"; and Paragraph 17 provides that "every effort should be made to develop and utilise to the full, if necessary with public financing, existing and potential vocational training capacity, including the resources available in undertakings, in order to provide programmes of continuing vocational training".

241. Training expenses may involve investment in premises and materials, the remuneration of trainers and administrative support staff, even remuneration of trainees (particularly in the case of apprenticeship), (Endnote 93) their insurance cover (Endnote 94) and, if necessary, other costs connected with grants or allowances for meals, accommodation or transport. (Endnote 95)

242. For various reasons, including budgetary restrictions, particularly during structural adjustments, or the cost of material and working documents, (Endnote 96) there is a tendency to try to ease the burden on public finances by making enterprises pay more towards training costs. Paragraph 17 of the Recommendation is thus all the more relevant, and not just with regard to the role of small enterprises and those practising craftsmen who, whilst receiving little assistance themselves, particularly in developing countries, are a considerable source of skill acquisition. Similarly, there is growing interest in the means of increasing the output of training institutions: "education with production", greater use of installations and instructors, considerably increasing the number of persons trained by adapting timetables, reducing the length of training placements, trying to reduce the drop-out rate, and greater co-ordination between selective training actions and investment programmes.

243. However, it should be noted that financing systems are not neutral, and their effects often go beyond the area of financing. They may indeed be one of the main springboards for training policy.

244. The various systems for financing vocational training and guidance cover initial and further training and retraining. The training levies for all training, including continuing training, lifelong education and apprenticeships may also be included in such systems.

245. When financing is provided entirely out of public funds, the general state budget sometimes assumes full responsibility. The State then oversees the allocation of resources, taking a leading role in determining needs and creating programmes. The State invests, subsidises, and pays remuneration and fellowships. This is how national education functions almost everywhere, with the exception of private education, which may still be subsidised.

246. Mixed systems involve co-operation between the State and enterprises. The main source of finance for such systems in various countries (Endnote 97) is a levy which is a percentage of the wage bill (from 1 to 2 per cent in most cases), paid by enterprises. The levy may be paid in advance, giving entitlement to free training benefits, or reimbursed in part or in full on written proof that training is provided by the enterprise, the State sometimes requiring prior agreement to the training. Payment of the levy may also be postponed, or even cancelled, provided proof can be given at the end of the fiscal year that the enterprise has provided a certain amount of training. The system provides certain incentives in France, for example, with the so-called apprenticeship levy, which dates back to an Act of 1925.

247. Recent years have seen the development of a variant which makes it compulsory to devote a minimum percentage of the enterprise's wage bill to training or to pay the difference into a fund. This applies in France for continuing training; Hungary where, under an Act of 1988, 1.5 per cent of the wage bill must go towards training or be paid into a fund for vocational training; and in Australia, under an Act of 1990.

248. Incentives in the shape of tax allowances or a tax credit are sometimes provided. A deduction from corporation tax or a tax on profits is then made. (Endnote 98)

249. In the Federal Republic of Germany, under an Act of 1976 to promote apprenticeship, enterprises failing to reach a certain rate of increase in the number of places offered to apprentices had to pay a tax of 0.25 per cent of earnings, which was then passed on to enterprises which had exceeded the rate. The Act very quickly achieved its objectives, all enterprises having made an effort to exceed the required threshold.

250. In France, the "apprenticeship levy" is unusual because, whilst representing a percentage of wages to be disbursed one way or another before the end of the fiscal year in question (by training apprentices or paying the money to the public revenue department, bodies or institutions), it gives enterprises the chance to opt out of providing training themselves and to choose the institution which should benefit from the finance. As a result, institutions now compete to obtain this financing. (Endnote 99) Furthermore, the system encourages interaction between enterprises and training institutions in determining programmes according to needs.

251. Private systems may be financed either by enterprises or by individuals. Mixed financing systems also exist.

252. In the first case, enterprises pay for training but do not receive any reimbursement or tax benefit. For example, in the United States, car manufacturers have invested quite considerably in training their workforce. (Endnote 100) In addition to operating their own centres, the companies pay for the tuition of several hundred thousand workers attending work-related college-level courses. Other enterprises offer grants, set up institutions or provide them with audio-visual or computer material.

253. In the second case, individuals themselves pay for their training. For example, in West Africa, parents traditionally pay the master craftsmen who then take on the apprenticeship of a young person. (Endnote 101) Experience shows that people may be prepared to pay for their own training so long as the benefits are clear.

254. In April 1984, in Denmark, a training fund contributed half each by employers and workers was set up to cover the costs of adult vocational training. In other countries, particularly the United Kingdom, an effort is being made by virtue of loan systems to encourage the financial participation of those concerned in the costs of their training. In Japan, training costs are borne partly by individuals (1.3 per cent of the GNP), partly by employers (less than 1 per cent of GNP), and the balance by the States; total expenditure is just under 4 per cent of national income. (Endnote 102)

255. Many countries have chosen one system from among those mentioned above, not only hoping to promote human resources development but also in order to share the financial burden with enterprises. Regardless of whether the method chosen consists of levies (the State then taking on responsibility for redistributing the money), tax deductions (the enterprises deducting training expenses from the amount they owe) or taxes being freely allocated to an institution chosen by the enterprise, the effects seem to go far beyond the area of mere financing. The profile and motivation of the participants, the content and teaching methods, the major strategic choices made by institutions, the means of communication with the market and the structure of the enterprises may also be involved.

256. Efficiency and equity vary among systems, and these issues are very controversial. Recently, for example, the Employers' group of the Committee on Employment of the ILO Governing Body was not in favour of a levy scheme, supporting the view that training should be seen as an investment in human capital rather than as a cost. The Workers' members at the Committee stated that if this was the case the need for training should be obvious and that there should be further investigation of the role that levy and rebate schemes might play in this process. (Endnote 103) Some observers point out that the institution of a contribution based on the wage bill could be seen by employers as tantamount to an increase in wages; some that incorporating the contribution into the cost price means that the cost is finally transferred to consumers; others that training is an important way to improve productivity and thus help to lower prices. Many insist that levy systems are a way of evening out training costs among enterprises, avoiding the risk of some enterprises profiting by recruiting workers trained by other enterprises. In Germany, employers who make a great contribution to training, have resisted the introduction of a levy system; a fund established through collective agreements and made up of compulsory contributions has been created in the construction industry.

257. A practical guide, setting out examples from relevant documents and technical co-operation, would probably help member States to develop the system best suited to their national conditions, in the spirit of paragraphs 2 and 3 of Article 1 of Convention No. 142, and to meeting their objectives. Determining factors include the size and prosperity of enterprises (whether they can invest in training), their attitude to training (whether they want to invest), management of the institutions (are there competent trainers and suitable teaching materials and whether they enjoy credibility with large and small enterprises), the reliability and competence of public agents (whether the levy all goes into training), and the existence and relative importance of technical co-operation. With regard to developing countries, the importance of the informal sector is probably not a fleeting, marginal phenomenon but rather something which covers many if not most activities, particularly in urban areas. Simply transposing levy systems in force elsewhere, when there are only a few large enterprises capable of paying and in any event loathe to share costs with small informal enterprises, appears unlikely to give the desired results. Côte d'Ivoire provides a good example of a case where attempts are made to adapt to the local context: out of the 1.2 per cent levy to be paid, enterprises must devote half to training and pay the other half into a special account held in the name of the FNR (National Regularisation Fund); some of this money may be spent on financing "collective projects" which may include crafts and the informal sector.

Endnotes

Endnote 2

Endnote 3

Endnote 4

Endnote 5

Endnote 6

Endnote 7

Endnote 8

Endnote 9

Endnote 10

Endnote 11

Endnote 12

Endnote 13

Endnote 14

Endnote 15

Endnote 16

Endnote 17

Endnote 18

Endnote 19

Endnote 20

Endnote 21

Endnote 22

Endnote 23

Endnote 24

Endnote 26

Endnote 27

Endnote 28

Endnote 29

Endnote 30

Endnote 31

Endnote 32

Endnote 33

Endnote 34

Endnote 35

Endnote 36

Endnote 37

Endnote 38

Endnote 39

Endnote 40

Endnote 41

Endnote 42

Endnote 43

Endnote 44

Endnote 45

Endnote 46

Endnote 47

Endnote 48

Endnote 49

Endnote 50

Endnote 51

Endnote 52

Endnote 53

Endnote 54

Endnote 55

Endnote 56

Endnote 57

Endnote 58

Endnote 59

Endnote 60

Endnote 61

Endnote 62

Endnote 63

Endnote 64

Endnote 65

Endnote 66

Endnote 67

Endnote 68

Endnote 69

Endnote 70

Endnote 71

Endnote 72

Endnote 73

Endnote 74

Endnote 75

Endnote 76

Endnote 77

Endnote 78

Endnote 79

Endnote 80

Endnote 81

Endnote 82

Endnote 83

Endnote 84

Endnote 85

Endnote 86

Endnote 87

Endnote 88

Endnote 89

Endnote 90

Endnote 91

Endnote 92

Endnote 93

Endnote 94

Endnote 95

Endnote 96

Endnote 97

Endnote 98

Endnote 99

Endnote 100

Endnote 101

Endnote 102

Endnote 103

Legislation

See related national legislation from Natlex

Japan: Vocational Development Promotion Law of 1969 (amended in 1985)

Cross references
Constitution: Article 19
Constitution: Article 22
Constitution: Article 35