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

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

Throughout the second half of the 1990s, the Danish Government has reformed the system of continuing vocational training by increasing its market and demand orientation, accompanied by increased financial allowances for employees attending training.

The first legislation on retraining and vocational training for semi-skilled workers was introduced as early as in 1960. Vocational training in Denmark comprises "labour market training programmes" and "vocational training programmes". The labour market programmes, the AMU-courses, fall under the competence of Arbejdsministeriet (the Ministry of Labour) and the vocational training programmes fall under the competence of Undervisningsministeriet (the Ministry of Education). Both types of training programmes are offered by both AMU-centres (vocational training centres) (the Ministry of Labour) and by universities, technical and business schools (the Ministry of Education). The vocational training system offers training to persons who are already in employment as well as to unemployed persons. The qualifications which a person obtains by participating in a specific training programme are formally recognised by the social partners and well-known and accepted on the labour market generally. These training programmes give nationally recognised competence.

The Minister of Labour has the overall responsibility for the adult vocational training programmes and for the legislation existing in this field. The administration of the adult vocational training system is the responsibility of Arbejdsmarkedsstyrelsen (the National Labour Market Authority/AMS) which is also responsible for the public employment service system. The tripartite co-operation runs as a red thread from the central to the decentralised level, i.e. from Uddannelsesrådet (Educational Council) to the local co-operation in the individual training institutions. The organisation of adult vocational training activities is based on a broad co-operation with the social partners who are involved in the work to identify training needs, and to develop and determine the content of the training programmes as well as training of teachers.

There are 24 independent AMU-centres with a number of units spread all over the country. AMU-training courses are also organised by technical and business schools, and in some cases also by private training institutions. The vocational training system offers training in more than 50 sectors/occupations. A committee for continued training has been set up for each sector/occupation - Efteruddannelsesudvalgene - and together with AMS and the Educational Council these committees are responsible for the content of the vocational training programmes.

The organisations of employers and employees have presently set up 53 committees for continued training, which are, among other things, responsible for developing training programmes in their respective sectors or occupational fields. The committees for continued training also make recommendations to the Educational Council on the needs for training and are responsible for the training of teachers.

The Educational Council is a joint body composed of representatives of the social partners as well as public authorities, granted with the task of advising the Minister of Labour on matters concerning vocational training programmes, including the dimensioning of training activities.

The role of collective bargaining in vocational training is not well studied in Denmark, thus leave much to be desired. The absenteeism of studies, do reflect the fact, that vocational training in terms of financing and delivery is almost an exclusive public responsibility.

The role of collective agreements with regard to vocational training is characterised by three main features. First the collective agreements provide a framework and recommendations on instruments aimed at improving vocational training, at company-level. Secondly, provision on e.g. freedom to participate in vocational training have been improved. Thirdly, financial contributions, in the form of Vocational Training Funds and pool of funds, aimed at supporting vocational training activities in the specific sector.

In the following a number of the main collective agreements will be used to exemplify the provisions on vocational training in the collective agreements. Hereafter some examples of what is carried out at institution and company-level will be outlined.

One of the main themes at the 1997 collective bargaining in the public bargaining area was a strengthening of further vocational training. A theme which was directly linked to the introduction of a new and more flexible wage system, which will bring personal merits and qualifications in focus.

The collective agreement between Finansministeriet (Ministry of Finance) and Centralorganisationernes Fællesudvalg (Danish Central Federation of State Employees/CFU) covers approximately 180.000 state employees.

At the 1997 collective bargaining in the State, the social partners agree to set establish a pool of DKK 72 million, aimed at strengthening further and continuing vocational training. The pool will be used to fill the gap between the normal salary and the maximum allowance for employees participating in further and continuing vocational training, of more than five days duration. In order to secure and support more further and continuing vocational training a committee was established, with the task of creating an overview of the activities and analysing barriers. It was furthermore agreed to prolong the agreement on adaptation and vocational training, thus to set aside DKK 52 million for a Development and Adaptation Fond.

The collective agreement between Kommunale tjenestemænd og Overenskomstansatte (Association of Local Government Employees Organisation/KTO), Kommunernes Landsforening (National Association of Local Authorities in Denmark/KL) and Amtsrådsforeningen i Danmark (Danish federation of County Councils/ARF) covers approximately 600.000 employees.

It was agreed to set aside 0,013% of the total wage sum equal to DKK 15 million per year for activities aimed at strengthening further and continuing vocational training, by way of:

Agreement between Dansk Industri (Confederation of Danish Industries/DI) and Centralorganisationen af Industriansatte (Central Organisation of Industrial Employees in Denmark/CO-industri) covering approximately 200.000 workers.

The social partners recommend that systematic vocational planning for the employees are undertaken. A Vocational training committee has been established, with the task of analysing demand for qualifications, plan vocational training activities and vocational plans. The more specific task are to be agreed upon at local level. With a view to advance and develop continuing training in industry a Vocational Training Fond was established in 1973. Employers pay a contribution equal to DKK 0,27 per hour for those employed at the company.

If an employer request an employee to undertake further vocational training and the employee is eligible for an allowance from the state, the employee receive the normal salary and the allowance are paid to the company.

With due regard to the company, employees who have been employed for nine months are entitled to two weeks vocational training per year. The content of the vocational training will have to be directly company related. Freedom to participate in vocational training after own choice are subject to agreement at the company level.

Collective agreement between Entreprenørforeningnen (Danish Contractors´Association) and Specialarbejderforbundet i Danmark (General Workers´Union in Denmark/SiD) covering approximately 30.000 workers.

The contractors branch has established a Vocational Training Fond, which the companies pay an amount equal to DKK 0,10 per hour for those employees employed at the company. If the social partners at company level agree that it would be beneficial and relevant for an employee to participate in further vocational training, the employer pay a normal salary in a period up to two weeks. With due regard to the company, employees who have been employed nine months are entitled to one week vocational training per year. The content of the vocational training will have to be directly company related.

The collective agreement between Dansk Handel & Service (Danish Commerce and Service/DHS) and Handels- og Kontorfunktionærernes Forbund (Union of Commercial and Clerical Employees in Denmark/HK) covers approximately 100.000 employees in the commerce sector.

With the purpose of advancing the employees professional skills and personal development the social partners request the organisations to undertake systematic vocational planning for the employees with a view to meet the present and future job requirements of companies. Employees shall have a fair opportunity to keep up their formal training.

With a view to undertake systematic vocational planning for the employees, it is recommendable to establish vocational training committees at company level. It is equally recommended to make use of personal reviews and that employees over the age of 50 are offered targeted advise on vocational training.

Regarding freedom to participate in vocational training it is recommended that substitutes are used to replace employees who are participating in vocational training courses. For employees which have been employed for a period of 2 years, employer cover the cost of participation with regard to the course and with regard to a reduction in income, which may arise and which is not covered by public funding. With due regard to the company, employees who have been employed for minimum 6 months are entitled to one week vocational training per year, thus without pay.

The collective agreements on further vocational training are, as shown above, by an large framework agreements, containing provisions on right to vocational training and recommendations in this regard. The actual further vocational training activities are a matter dealt with at the institution/company-level. Future bottlenecks, emerging labour shortage and an increased market-orientation of the vocational training system have contributed to a strengthening of the vocational training effort.

For the public sector, especially the introduction of a new wage-system and new demands for quality in public service delivery have advanced the effort to improve vocational training in the public sector. An example shall be given. In the regional sector, one of Denmark’s 14 Regional Councils, Vestsjællands Amt (West Zealand’s Council ) has, as the first Regional Council, initiated a process aimed at offering the 11.000 employees an individual plan on vocational training and development of their competencies.

Danish companies are becoming more aware of the need to provide plans for the vocational training of their employees. In comparison with their European counterparts, Danish companies provide more continuing vocational training. According to a survey carried out by Eurostat in 1993, nine out of ten Danish companies with over 10 employees provide some form of continuing vocational training. This compares favourably with other countries in the EU. For example, in Spain, Greece, Italy and Portugal, only 27% companies at best provided some form of continuing vocational training, and the provision of such training was dependent upon company size. In contrast, continuing vocational training is not dependant upon company size in Danish companies in the formulation of vocational training plans.

Over the course of the next decade or so Denmark will experience a radical demographic change. Up to 2010, the number of new entrants to the labour market aged between 20 and 35 will decrease by 200,000 and the number of persons over the age of 50 will increase by 210,000. Consequently, more than 75% of those who will be in the Danish workforce by 2010 are already in the labour market today. The decrease in the number of newly-qualified entrants and an ageing labour force emphasises the importance of vocational training for those already in the labour market. In addition to the demographic challenge to vocational training, there is also the challenge stemming from the rapid introduction of new technology. According to a recent survey from Eurostat Employment in Europe by 2007, 80% of the technology in present use will be obsolete, and will be replaced with new, more advanced technologies. By that time, 80% of the workforce will be working on the basis of formal education and training qualifications which will be more than 10 years out of date.

A third challenge emanates from the changing pattern of sectoral employment and production, which will threaten the future employment of lower- and unskilled workers. The clear implication is that such changes are reducing the demand for low skilled workers whilst at the same time increasing the demand for more highly educated employees. More than half of all Danish jobs created during the 1980s in the private sector were in sectors which relied on highly-skilled and highly-educated employees. In the same period 60% of the jobs were lost in sectors which traditionally had a large proportion of unskilled workers. According to the European Commission's White Paper on Teaching and Learning, between 1983 and 1991 the numbers of people classified as managerial, professional and technical workers expanded by more than 25% a year, while total employment growth in the EU was only some 1% a year.

Even though the number of semi-skilled and unskilled workers in the labour force is decreasing, 40% of the Danish labour force will still be either semi- or unskilled by 2010. The shortage of qualified labour, the difficulty of enhancing the skills of less-qualified workers, and rising unemployment levels among lower-skilled employees will be major challenges of tomorrow.

The Danish government have throughout the 1990´s reformed and made adjustments to the system of continuing vocational training. Adjustments and assessments are on-going. In the 1997 Financial Act, expenditure to support companies undertaking projects aimed at planning vocational training activities was raised from DKK 40 million to DKK 65 million. A further sum of DDK 105 million is available to support companies that wish to improve working life.

On 3 March 1997 the Ministry of Labour launched a nation-wide vocational training campaign, aimed at increasing public awareness and encouraging more companies to formulate individual training plans for their employees. The campaign, with the slogan "Vocational training worth working on", ran from March to June 1997 and was carried out in close collaboration with 265 local vocational training centres and with the support of Dansk Arbejdsgiverforening (Danish Employers' Confederation/DA) and Landsorganisationen i Danmark (Danish Confederation of Trade Unions/LO).

On 24. November 1997, government launch a policy-program on more and improved vocational training in Denmark (Danmark som foregangsland - uddannelse, omkostninger og resultater).

Continuing the success from 1996, LO, DA, Akademikernes Centralorganisation (Danish Confederation of Professional Associations/AC) and Ledernes Hovedorganisation (Organisation of Managerial and Executive Staff in Denmark/LH) arrange on 12.-14. March 1998, a joint two days gathering under the title "Vocational Training and Development ´98". With the arrangement the social partners wish to signal that further vocational training requires close co-operation between the social partners. Four themes will be focused on:

EMP/SKILLS - Skills and Employability Department