National Initiatives by the Social Partners in the Field of Training in Bipartite Dialogue, Including Collective Bargaining - Belgium

Source: European Industrial Relations Observatory

System of Sectoral Training

• 1988 Collective Agreement
• Financial Framework to the 1988 Agreement
• Management and Organisational Form
• Provision of Training Covered by the Agreements
• Extent of Sectoral Training Initiatives
• Degree of Recognition

A specific part of continuing vocational training is the subject of collective agreements and is managed by employers and union representatives. Since the intersectoral agreement of 1988 these initiatives have received a more stable institutional and financial framework.This has resulted in numerous sectoral initiatives.

The specific organisation of training as organised on the basis of collective agreements is primarily or even almost exclusively located at the sectoral level. This is a fairly typical organisational form which is found in a comparable way only in the Netherlands and France.

1988 Collective Agreement

Probably the most significant intersectoral collective agreement pertaining to (vocational) training was reached in 1988. As a response primarily to the situation of young and long-term unemployed with problematic professional qualifications, the social partners decided to dedicate 0,18% of the gross wage mass of all wage and income earners to bipartite training initiatives. The 1990 collective agreement increased this amount to 0,25%. The 1992 collective agreement amended the 0,25% rule by splitting up the amount in 0,10% for government sponsored initiatives aiming to reach highly problematic groups on the labour market (primarily older and particularly low skilled employees) and 0,15% at the disposal of sectoral initiatives. In 1997, the financial side of the agreement was amended one more time: The government’s budget foresaw in the use of 0,10% of the funds for financing the general social security system. Given the fact that no intersectoral agreement was reached each sector had to position itself as to how to react to this cut in financial means. Most sectors reacted by increasing the employers contribution into the training fund or by digging into the accumulated reserves of the sectoral fund.

The 1988 collective agreement and its successor agreements were a big impulse for the increased involvement of the social partners in training initiatives. Although a number of older initiatives existed (notably in the metal industry sector since 1968, the building sector since 1965, the banking sector in 1968 and the textile sector in 1978), it is a fair assessment to claim that collective initiatives in training are largely the result of an intersectoral and governmental dynamic and not an internal dynamic in economic sectors. Based on successive intersectoral agreements, which in the Belgian collective bargaining tradition are confirmed by the Minister of Employment, a whole set of sectoral training initiatives have been taken.

Financial Framework to the 1988 Agreement

The law which formalised the collective agreement of 1988 outlined the main financing mechanism. A specific part of the gross wage mass of wage and income earners (0,18% in the original agreement) was to be collected via the National Office of Social Security (Rijksdienst voor Sociale Zekerheid (RSZ) - Office National de Securité Sociale (ONSS)). This money was to be either redistributed to those sectors with a collective training initiative or transferred to the national ‘employment fund’ to fund initiatives for sectors without agreements on the matter. Since most sectors wanted to keep the financial means under their own control, this rule led to the creation of sectoral funds in all large sectors. Indeed, sectoral ‘training funds’ are the main form of organising the financial means. These funds are under bipartite control.

Another consequence of the financial framework created by the intersectoral collective agreements is that the level of financing is very homogeneous over all sectors. A few sectors (metal industry, garage, electricity, trade in metal products), however, have agreed to extra contributions of 0,10% or 0,5% (building industry) which are disconnected from the national bargaining level and hence of indefinite nature, as opposed to being dependent on the outcome of the next national bargaining round.

Other forms of financing, although not as important, exist. A number of sector (e.g. automobile, metal, food, etc) have agreements with the official consulting and training services of the Regions (VDAB in Flanders and FOREM in Wallonia). Under these agreements employees of the sector can be trained by the official centres with cost sharing (50/50). In certain instances cost sharing agreements also include further financial support by the official training centres. Some sectors (metal industry primarily) are making extensive use of the Paid Educational Leave possibilities offered by the Ministry of Employment. Other opportunities for additional financing include the European Social Fund and a number of smaller budgets available to specific sectors. The most important source of financial means remains the obligatory contribution of around 0,20%.

Management and Organisational Form

The overwhelming majority of the initiatives are taken at the sectoral level, within an overarching framework that is decided at the intersectoral level. Very few, if any, initiatives are found at the level of the company.

The management at the sectoral level is bipartite. A sector will typically establish a Fund for the management of the financial means. In addition a training institute which will organise the practical aspects of planning, organisation, actual training and other activities. The larger sectors have a number of decentralised locations for the organisation of training programs. Examples are the metal sector which has set up provincial centres and the building industry which works with a number of regional centres. Each sectoral initiative works typically with a full time staff to take care of the managerial and planning tasks, and a staff of contractuals who provide the actual training.

Discussion and negotiation between the social partners will determine the basic goals and objectives of each initiative, the specific training needs in the different parts of the sector, the main target groups, duration, educational method, etc.

Provision of Training Covered by the Agreements

Training is usually not part of larger other collective bargaining agreements. It is the tradition to have separate agreements on this issue. Specific agreements are reached at the intersectoral level in terms of amount of the contributions and legal framework and at the sectoral level on matters of organisation and content.

The main objectives of the agreements are increasing the employability of ‘risk groups’ in the sector and the continued education of other employees in light of changing work conditions and technological change. The content of the training is usually job specific and is being determined by the specific needs of the companies in a sector or specific company.

The training is usually provided in decentralised training centres per sector and rather specific in nature. However, other methods exist such as interactive video which is used primarily by smaller companies where employees can hardly be missed for longer periods of time. Very few programs lead to any form of certification although a few initiatives have been taken in this direction (see above).

The most important target groups consist of lowly skilled employees and older employees and employees who are more in danger of losing their job or having to change employment because of restructuring plans.

The general rule is that training is given during working hours. If this is not the case there is compensation in the form of ‘educational vacation’ and/or an extra financial incentive. Some sectors have a system which provides companies with a financial compensation for the temporary loss in productivity or the hiring of temporary workers.

Sectoral training initiatives are active at different levels and in different arenas of the training field:

• training of employees in the sector remains the most important goal and activity of sectoral training centres. Most sectoral initiatives aim at either retraining employees or giving them additional and specialised training due to new demands, restructuring or technological change.
• some sectors (e.g. building industry) have agreements with secondary vocational schools and support initial training programs. This includes funding equipment, providing practical training, etc.
• a number of sectors take certain initiatives directly toward the unemployed. In cooperation with the official training institutions (VDAB and FOREM), a number of training programs are developed, practical training is provided and the transition from training to actual employment is mediated.

Extent of Sectoral Training Initiatives

Very few numbers exist to get a complete picture of the extent of the sectoral training initiatives. No centralised and/or complete data exist on the exact number of employees which have received a sectoral training.

An estimated 1,5 million employees are employed in a sector which has a specific collective agreement on training. This includes all of the important economic sectors. Estimates suggest that about 7-8% of the employees in these sectors are reached every year. Although no specific number exists on the participation of specific target groups one can assume that this number must be considerably higher.

A few other numbers put the Belgian sectoral training landscape in perspective:

• Belgium spends about 0,11% of its GDP on employee training. This is considerably more than its neighbouring countries: Germany 0,03%, France 0,06%, U.K. 0,01%.
• On the opposite end, Belgium spends considerably less on the training of unemployed and high risk employees. 0,18% of the GDP versus an average of 0,36 for its neighbours.
• The total expenditures of Belgian companies for training (including in-company training, company initiatives, etc.) is much lower than in other OECD countries: 0,6% of the wage mass in Belgium versus 2,8% in France, 1,2% in Germany and 1,6% in the Netherlands.
• There are enormous differences between the different sectors: An average employee receives 17,8 hours of training per year in the financial sector, 6,4 in the metal sector, 2,2 in the building industry.
• The differences between different levels of employees are equally large: The average manual labourer receives 8,1 hours of training per year, the average white collar worker 20,7 and the average managerial worker 32,1.

Degree of recognition

The general rule is that no mandatory exam neither an official certification is given at the end of the course. No diplomas are issued either. This is the case because sectoral training is not a part of the official educational system which has (almost) exclusive rights over the recognition and accreditation of education and training.

Two institutes, however, have taken the initiative and the lead in this matter and are now providing a form of accreditation and recognition. Educam in the automobile sector and Vormelec in the electricity sector are screening the training programs offered for their respective sectors and those who meet certain criteria will allow trainees to end a course with a certificate.

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