The trend towards market-oriented training systems gives an increasingly prominent role to the private sector. Enterprises, in particular, are expected to undertake a proactive role in training. Conversely, the traditional role of the State is evolving from government-led and government-owned training systems towards creating an enabling environment for enterprises and individuals, employers and workers, to invest and actively participate in a collective training effort.
Partnerships and strategic alliances between the interested parties have become the key strategy to improve the relevance, efficiency, effectiveness, equity and sustainability of training policies, systems and programmes. Training is increasingly conceived and promoted as a cooperative effort in which the various relevant institutions in the public and private sectors must participate and share responsibilities. Moreover, the partners concerned are being called upon to contribute to the overall training effort, and to articulate their inputs, making the best possible use of their respective strengths and comparative advantages.
In practical terms, only a few countries have set up a coherent systemic framework and appropriate incentives for these partnerships to flourish on a large scale. Nevertheless, there is already an assortment of innovative and interesting experiences throughout the world which offer options and lessons for promoting public/private alliances in training.
In order to capture the nature, range, and extent of innovations, the constraints faced and opportunities created by these partnerships, the Training Policies and Systems Branch (POLFORM) of the ILO undertook an extensive research programme Strategic Training Partnerships between State and enterprises . The work between 1995 - 1997 included case studies covering 26 experiences in 14 countries from various regions: Australia, Chile, Denmark, France, Germany, India, Ireland, Ivory Coast, Japan, Malaysia, South Africa, Spain, United Kingdom, United States. Based on these experiences, extensive review of literature and discussions on the subject at national and international levels, analytical, conceptual and policy papers were elaborated.
Preliminary results of the research programme were presented and discussed at numerous seminars and conferences including two major ILO regional meetings, one for Asian countries ( Asian Experiences in Strategic Partnerships between Enterprises and the State , Chiba, Japan, December 1995, in collaboration with the Asian and Pacific Skills Development Programme, APSDEP), and one for Latin American and Caribbean countries ( Strategic Alliances in Training , Santiago de Chile, May 1997, in collaboration with the Inter-American Research and Documentation Center, CINTERFOR).
The research programme also provided a contribution to the ILO Enterprise Forum (Geneva, November, 1996), on the theme Training for Employability .
The collection of papers produced under this research programme are listed at the back of this document as Training Partnership Papers. They are available in English, French and Spanish from the documentation service of the Employment and Training Department.
The results of the work accomplished in this area, and the experiences, concepts and messages conveyed, have raised considerable interest and contributed to demonstrate possible avenues for innovative ways of rebalancing the roles and responsibilities of the private and public sectors in training. Hopefully, the lessons learned from these experiences will contribute towards building trust and fostering cooperation between the two sectors, stimulating their participation and promoting the best use of their respective strengths in training. It should also help to lay the basis for improving awareness and institutional capacity for collaboration and joint ventures on human resources development and training among a wider span of institutions and interested parties in the public and private sectors.
The variety and dynamism in this innovative and promising area is phenomenal and deserves an on-going effort in accumulating, analyzing and exchanging information, and raising debate at the country, regional and international levels. With this aim, the scope of the programme on Strategic Partnerships in Training will be broadened in the coming years. Readers are encouraged to contact the Training Policies and Systems Branch for further exchange of information and experiences on this theme.
María Angélica Ducci
Chief
Training Policies and Systems Branch
Employment and Training Department
Unsurprisingly in a country where a very high premium is set on social dialogue, the most dynamic relationship in the field of training and vocational education has its roots in the long tradition of collaboration between the social partners, or in other terms, between enterprises represented by employers organizations and employees represented by the trade union system. The training initiatives introduced through the collective bargaining system provide a practical demonstration of the commitment of both sides of industry to the qualitative development of the labour force. With the Government providing most of the funding for training and vocational education, including a course allowance corresponding to the maximum rate of unemployment benefit, the tripartite collaboration structure allows the social partners to play a major role in defining the curriculum. A network of committees organized according to trades and sectors, with equal representation for the social partners, works closely together with government agencies under the Ministries of Education and Labour. At a lower level, the social partners also play an important role, alongside the representatives of the local authorities, in the implementation of training schemes and vocational education programmes through their active involvement on the boards of training centres and educational colleges.
State intervention in continuing vocational training began in the 1950s and early 1960s, when the Social Democratic Government created the National Labour Market Authority (Arbejdsmarkedsstyrelsen) and the vocational training system. In 1985, the Conservative/Liberal Government reformed the system through the Act on the Labour Market System, which was followed by a new reform in 1994.
Denmark is an industrialized country that produces a broad range of high-tech advanced niche products. However, only a few decades ago, the predominant economic activity was agriculture. It is only because the Danish educational system was effective and flexible that the adjustment from an agricultural to an industrial and service-oriented economy was possible.
Denmark is one of the smallest countries in Europe, with just over 5 million inhabitants. A large number of women are employed on the Danish labour market and the total workforce is composed of around 3 million workers. With few raw materials in its subsoil, Denmark s most important economic resource is its workforce, which is well-educated and capable of adjusting rapidly to current and future demands. Education and training policies will undoubtedly continue to play a decisive role in the future in promoting economic growth, creating employment, making the country more competitive and improving its balance of payments.
In view of the importance of the system, comprehensive reforms have been implemented over the past few years to renew the vocational training and education system. In these reforms, careful attention was paid to ensuring a fruitful interaction between the employers and employees who use the system. The social partners exercise their influence in the system through their statutory representation on advisory and governing councils and committees at both the central and local levels. Moreover, individual institutions enjoy a high degree of autonomy, enabling them to adapt quickly to new demands and technologies. The interest of the Government, as well as of employers and employees in adapting to the demands of the future, are illustrated by the expansion in training and vocational education activities over recent years.
About half of the total Danish workforce has benefited from vocational training, and over half of each group of school-leavers now enrol in basic vocational education. A wide range of specialization is offered in the main areas of vocational training and education.
The Danish vocational education and training system is built on traditions dating back to the Middle Ages, when the craft guilds developed very strict rules for the training of apprentices. At the end of the nineteenth century, when the industrialization process began in Denmark, there was a shortage of skilled labour. To cope with this problem, Parliament expanded the supply of vocational education. The Government gradually increased its control over vocational education through legislation and financing. In line with the growth in their strength and the broadening recognition of their role in society, the social partners also began to exercise a more decisive influence over vocational training programmes.
The number of apprentices declined in Denmark in the 1960s, as industrial production began to grow rapidly. In order to compete with a new attractive upper secondary school programme, the training and vocational education system had to be reformed. In 1977, the experiments at commercial and technical schools were replaced by the Efg-Education Act, which established a new kind of vocational training and education system in which strong emphasis was placed on the interaction between theoretical work and practical training. With a few adjustments, this system has provided the basis for the current vocational education and training system, which underwent modernization at the beginning of 1991.
The cornerstone of the vocational education programmes is the combination of practical training in an enterprise and theoretical and practical training at a technical or commercial college. On average, courses last between three and five years, with approximately one-third of the course being spent in the enterprise. Trainees also often split their time between working in an enterprise and attending college. The above courses are supplemented by higher commercial technical courses, which are purely school-based courses leading up to a number of examinations, which qualify students for admission to higher education.
Further technical and commercial education is an important component of the Danish system. In 1960, a state programme of vocational training for semi-skilled workers was introduced. With the establishment of a similar programme for skilled workers in 1965, adult vocational training became an integral component of the Danish labour market education system. Further training and education were also initiated by several trade union federations, which wanted a system of short courses to ensure that the qualifications of their skilled members kept up with the rapid pace of technological development.
The social partners were given a decisive influence on the aims and formulation of education and training programmes. Joint committees were immediately appointed for the training programmes of semi-skilled workers and the further education of skilled workers, with the courses taking place at the special centres for labour market education and training at technical and commercial schools and technological institutes.
The adult vocational training programmes are part of the labour market training system, known as the AMU system , which is responsible for work introduction courses for young people and the unemployed, as well as the training of semi-skilled and skilled workers. After 25 years of existence, the adult vocational training system has approximately 1,800 different educational plans, including 600 plans for semi-skilled workers and 1,200 further education plans for skilled workers. The plans cover a wide spectrum of the skills needed in the labour market. However, the basis of the system remains the same. The social partners still have a decisive influence over educational programmes, and they act jointly and in agreement.
Denmark s long tradition of active involvement by the social partners in continuing vocational training also applies to the AMU system, which provides most of the continuing vocational training. The social partners play a decisive role, especially in giving priority to continuing vocational training in specific areas and in preparing the content of training and developing new courses. In contrast, the system of grants for the whole vocational training effort and the administration of the AMU system is under public management.
The position of the social partners in this context is ensured through joint councils and committees with equal representation of the parties, in accordance with Act No. 237 of 1985 respecting labour market vocational training. These bodies have broad responsibilities in the management of training, such as the planning of course activities and economic management. Indeed, their influence in these areas is probably even greater in practice than the Act stipulates, simply because it is difficult to make decisions with which the labour market partners do not agree. As a result, the social partners play a decisive role in giving high priority to continuing vocational training for both skilled and unskilled workers. They also have a decisive influence on the training content of the continuing vocational training that is on offer.
The National Labour Market Authority determines detailed standards for specific training courses in cooperation with the councils and the committees. It also determines the capacity of training premises and the activities to be carried out during the year at those premises, as well as allocating courses between training programmes for budgetary purposes and establishing the distribution of training programmes for the various sectors and subjects.
The Permanent Joint Committee is responsible for proposing new training programmes and developing new courses for semi-skilled workers while the Professional Further Vocational Training Committee fulfills the same function for skilled workers.
The structure of the AMU system is therefore largely a product of close interaction between the social partners and the public authorities.
From the mid-1970s, the social partners established special training funds in a number of fields, which increased the support for the development of courses and continuing vocational training activities not covered by the normal public vocational training system. A broader range of training funds was created by the collective agreement in 1991 with the objective of supporting an increased continuing vocational training effort. It was also in connection with the above collective agreement that a great boost was given to continuing vocational training through the conclusion of agreements on the right of employees to participate in continuing vocational training in a number of areas.
Collective agreements on continuing vocational training
For many employers organizations and trade unions, the main outcome of the collective agreements concluded in 1991 was in the field of training and education. Indeed, special agreements on training and education were concluded in certain sectors. But these training agreements do not cover all employees and only apply to some occupational groups such as semi-skilled and skilled private sector workers.
Under collective agreements with specific training clauses, the Danish Federation of Trade Unions (LO) states that 700,000 to 1 million private sector employees out of the total Danish workforce of some 2.9 million, are entitled to one week s technical training a year.
Because the agreements are relatively recent, it is very difficult to obtain a complete picture of the number of collective agreements which contain training clauses at either the national or enterprise levels. However, training agreements at the enterprise level are very important because they ensure that the right to one week of training a year is actually used.
In an attempt to obtain a comprehensive view of the number of collective bargaining areas that are covered by training agreements, the authors of this paper contacted the employers organizations and trade unions in Denmark (around 270 organizations) to inquire whether special training clauses are included in their collective agreements. Although the response rate was only 20 per cent, when combined with information from other sources, a fairly comprehensive picture can be built up of the principal features of training agreements. Employers and employees agree on the right of employees to benefit from a minimum duration of continuing vocational training every year, which is normally one week. They also agree to establish training funds in the areas covered by the collective agreements. In most cases, the contribution level to the funds is around DKK 0.14 per hour worked. The training funds are not designed to finance the training of every single employee. Their purpose is to support the necessary development work in order to ensure the adequacy of the training courses in each sector and that their content matches skill needs of the labour market.
EM>Leave rights for continuing vocational training
Between 700,00 and 1 million employees have the right to one week a year of training leave for courses with a relevant technical content. In these circumstances, the main challenge for employers and workers organizations is to encourage enterprises and employees to make use of the right and the possibilities that are offered.
One question that arises with regard to the one week of training is whether the training offered is sufficient to eliminate any gaps that may exist between the current skills of employees and the skills needed by enterprises. In practice, to cover their skill needs, individual enterprises may need to arrange additional training for their employees. In this respect, the Danish Federation of Trade Unions (LO) believes that many enterprises are evaluating the experiences of other enterprises in arranging and implementing training schemes before introducing new training schemes in their own enterprises. The trade unions have therefore taken it upon themselves to disseminate the results and experiences of enterprises which have already set up and carried out training schemes.
For this reason, the Danish Federation of Trade Unions (LO) and the Danish Employers Confederation (DA) see it as their main objective to inform both employers and employees of the possibilities offered by the new training agreements and the public subsidies that are available to finance the training covered by the agreements. Another priority objective is to provide information on how to plan training schemes and improve the skills of both employers and employees in the field of human resources development.
Enterprise examples show that there are cases in which the right to one week of training a year has been extended, for example up to 16 weeks. However, such extensions are based on certain conditions, including the guarantee of public subsidies to repay wages, agreement on the content of the training and the acceptance of productivity improvements.
The planning of continuing vocational training at the enterprise level
In the areas covered by training agreements, it is important to note that both employers and employees are obliged to initiate negotiations to develop a systematic training scheme for the enterprise, if it is so requested by one of the parties. The training activities and priorities have to be discussed by the management and employees in each individual enterprise.
Whether the rights negotiated in collective agreements are actually used or not depends on the dissemination of experiences from other enterprises and on the education efforts of employers organizations and trade unions to develop the skills of management and shop stewards to address human resources development issues in training committees. The effect given in practice to training agreements also depends on increased interaction between enterprises and local training institutions to improve the planning of continuing vocational training in both enterprises and training institutions. The social partners therefore endeavour to encourage enterprises and training institutions to cooperate by being represented on the governing bodies of training institutions. Their efforts have meant that several training institutions now provide guidance to enterprises on matters concerning the planning of training.
Schooling clauses
In Denmark, it is very unusual for employees who take leave for the purposes of vocational training to be subject to a clause stipulating that they stay with the enterprise for a certain period of time after completing their training. Enterprises have tried to implement such clauses in a few cases for highly skilled academic staff. However, it is debatable whether such clauses are in accordance with Danish labour legislation.
Financing
The collective agreements of 1991 resulted in the establishment of central training funds, which are mainly used for pilot and development activities. However, they do not have sufficient resources to initiate new training activities or to increase the number of training courses on offer.
One of the measures available to enterprises to obtain financial support for the development of their training efforts is the so-called job switching scheme. A constantly increasing number of enterprises, as well as municipal institutions have entered into agreements to train and educate their employees through their substitution during their absence by unemployed persons.
This scheme provides enterprises with a good level of financial support when initiating a major training activity. The scheme provides employees with the possibility to improve their current skills or acquire new skills. For the unemployed, it offers work experience and a better chance of finding a job at the enterprise when it recruits new employees.
From the mid-1970s, the special education funds established in a number of sectors were mainly used for experimental and developmental activities. They were only used to a limited extent to finance wage compensation measures in relation to the participation of employees in continuing vocational training. However, financial support is usually forthcoming from these funds for the development of courses and training activities that are not covered by the normal public further vocational training system. The training funds usually support the development of new forms of training, development of courses and conferences for representatives of employees and employers to analyse skills and training needs and study trips abroad.
In the public sector, which employs some 850,000 persons, collective agreements on continuing vocational training do not include clauses entitling employees to a certain period of further training. Collective agreements in the public sector include clauses supporting and encouraging the primary actors in local institutions on issues related to continuing vocational training. Examples include:
employees in government institutions are covered by a collective cooperation agreement, which includes agreements on continuing vocational training. Under the terms of the agreement, the cooperation committee discusses and assesses the need to carry out continuing vocational training activities for all occupational groups and the principles of systematic training planning. In relation to instances of rationalization and other major changes, for example involving the introduction of new technology, the agreement provides that the need for training, continuing vocational training and replacements shall be identified and guidelines agreed upon;
employees in county and municipal institutions are covered by a cooperation agreement on the future framework for the cooperation on continuing vocational training.
As in the rest of the labour market, there is close cooperation between the social partners in the public sector for analysis, development and provision of continuing vocational training.
There is comprehensive overview of all existing training funds. The table below shows the largest training funds and provides information on the number of employees covered by each fund and their annual contributions. The information is partly based on an overview produced by the Educational Policy Committee of LO, 1991, partly from material provided by organizations of employers and workers and partly from telephone interviews with the organizations concerned. In some cases, the financial information is deduced from data on the number of employees covered by the funds and the information contained in collective agreements on the contribution per working hour.
In areas where training funds had already been established before 1991, the 1991 collective agreements resulted in an increase in their financing. For example, contributions to the training funds established by the Confederation of Danish Industries (DI) and the Central Organization of Metalworkers in Denmark (CO Metal), as well as by the Confederation of Danish Industries (DI), the General Workers Union in Denmark (SiD) and the Women Workers Union in Denmark (KAD) increased from 5 to 7 ore per hour worked.
The largest training funds in Denmark
| Collective agreement | No. of employees | Financing (DKK) | Year |
| DA/LO (FIU) | 500 000 | 86 million p.a. | 1973 |
| Graphic sector | 12 000 | n.a.4 | Before 1970 |
| DI/CO Metal | 100 000 | 10 million p.a. | 1983 |
| DI/SiD/KAD | 40 00 | 2,5 million p.a. | 1987 |
| KL/ARF/KTO | 550 000 | 10 million p.a. | 1989 |
| Finansmin./CFU | 300 000 | 10 million p.a. | 1991 |
| DA/BKA/HK | 26 000 | 3 million p.a. | 1991 |
| FA/DBL1 | 42 00 | 2 million p.a. | 1991 |
| FA/DBL1 | 42 000 | 6,5 million p.a. | 1997 |
| FA/DSFL2 | 8 000 | 200,000 p.a. | 1991 |
| FA/DSFL3 | 8 000 | 1 million p.a. | 1977 |
| Plastind./KAD/SiD | 12 000 | 2 million p.a. | 1987 |
| ELFO/Dansk Elforbund | 11 000 | 1 million p.a. | 1991 |
| DI/Dansk Elforbund | 10 000 | 1 million p.a. | Before 1991 |
| VA/SiD | 900,000 p.a. | Before 1991 | |
| Dansk VVS/Metal/Blik og Ror | 6 500 | 1 million p.a. | 1983 |
| SBA/KAD/Funktionaerforbundet | 1,5 million 1991-93 | 1991 | |
| AHST/SiD | 1,5 million 1991-93 | 1991 | |
| DV/SiD | 15 000 | 700,000 p.a. | Before 1991 |
| 1 For the further vocational training of DBL members. 2 For the training of union representatives. 3 For the further vocational training of DSFL members. 4 For the training of union representatives. | |||
The labour market training (AMU) system was established in 1960 to cope with changing skill needs. The skills required of workers were changing from purely manual skills, which up to then had been developed on the job, to more complex skills, which are most successfully developed through vocational training. The AMU system was placed under the Ministry of Labour, and in particular under the ministerial authority that is today known as the National Labour Market Authority (AMS).
Continuing vocational training for skilled workers was first introduced in 1965 under the AMU system in response to a realization by the organizations representing skilled workers that it was necessary to concentrate, not only on the development of basic vocational education, but also on maintaining and developing the skills of older skilled workers. In 1986, continuing vocational training for other occupational groups was also introduced into the AMU system, which now, at least in theory, covers all the occupational groups in the private sector, as well as occupational groups in the public sector whose jobs are similar to those in the private sector. The only exception is workers with higher education.
At first, the AMU centres were financed fully by the Government. However, in 1983, a special fund (AUD) was created which is financed by contributions from all employees and employers (with the exception of public employees). The fund fully finances most continuing vocational training activities, except for courses that are tailor-made for particular enterprises, for which it provides 50 per cent coverage.
Responsibility for continuing vocational training was vested with the Ministry of Labour, rather than the Ministry of Education, on the grounds that it was considered to be a labour market policy issue. In the field of education and training, Denmark has the following structure, in which education and training are placed under three different ministries:
the Ministry of Education, covering:
the Ministry of Labour, covering:
the Ministry of Culture, which is responsible for:
Under this structure, any further training after the completion of a basic vocational education is no longer the responsibility of the Ministry of Education, but of the Ministry of Labour. A working group, including representatives from both the Ministry of Labour and the Ministry of Education, has been set up recently to discuss the possibilities of modifying the existing structure. However, the arguments for maintaining the present structure are the same as they were in the 1950s. Continuing vocational training is considered to be a labour market policy issue because it concerns all occupational groups and all courses have nationwide recognition. In that respect, in Denmark continuing vocational training serves a dual objective:
one of the principal objectives is to ensure that employers can always recruit employees with the necessary skills, or that training for a group of unemployed people can be arranged by the AMU system;
on the other hand, it is also important for those who are already employed to be able to improve their skills and position in the enterprise: for the unemployed, an open AMU system is necessary to maintain or improve their skills so that they can increase their chances of getting a job.
The most recent reform of vocational training came into force on 1 January 1994, alongside a reform of the labour market. An important feature of both reforms is the significance placed on vocational training as one of the most important labour market policy instruments.
The development of close cooperation between the social partners is continued in the reform of the vocational training system. This is reflected in the new central council, the Vocational Training Council, and the new committees, known as occupational committees which form part of the new local structure introduced by the reform.
On 1 January 1995, a new financial management system was also introduced for vocational training programmes. This new system classifies the different training programmes into various categories, with the fee (per week for each participant) depending on the category of the course. This new financial management system is designed to create closer links between the training provided by training centres and the courses of technical schools and business schools. The new system also makes better use of the available capacity and resources. At the same time, all types of labour market training will be included in a single programme covering the whole range of training for unskilled workers, skilled workers and supervisors. The new legislation also covers vocational training activities for employees in the public sector. The new structure is composed of policy-making bodies at a number of levels:
the Vocational Training Council advises the Minister of Labour in matters relating to vocational training programmes;
occupational committees: four occupational committees operate across the old demarcation lines between skilled workers, unskilled workers and supervisors. These committees set priorities and decide on the allocation of resources within their respective occupational field, which means that they share responsibility for ensuring the proper functioning of the vocational training system. The four occupational committees cover: the manufacturing industry, the building/construction industry and agriculture, commercial and clerical work, the transport industry, the service industry, the hotel industry, the financial sector and the public sector;
training committees: a number of training committees have also been set up under each of the four occupational committees, with similar responsibilities in their respective fields;
the committee for work introduction courses, which acts in an advisory capacity in relation to work introduction courses and programmes, and especially for organized training programmes for the unemployed and other groups with special needs, such as refugees;
the local structure has also been modified with a view to strengthening cooperation between the social partners and (other) regional and local education and training institutions. Individual vocational training centres have also been given greater responsibilities. In addition to the boards of the AMU centres, local training committees for specific sectors have been set up by each vocational training centre. The local training committees are intended to act in an advisory capacity to the vocational training centres. Local joint committees have also been established to develop cooperation with local education/training institutions.
Vocational training supply is an important labour market policy instrument and the vocational training system is an important element of economic policy. The variety of courses available within the vocational training system means that it is able to: contribute to the prevention of skill imbalances in the labour market; support employment promotion initiatives; improve the chances of the unemployed finding a job on the labour market; and stimulate job mobility in the labour market.
The vocational training system offers a broad range of courses for both employed persons and the unemployed. The vocational training courses available fall into three categories:
individual courses;
enterprise-oriented courses; and
special courses for the unemployed.
Individual courses
Individual courses enable individuals in need of education or further training to acquire, maintain and improve their skills in accordance with the needs of enterprises, the labour market and the individual. Vocational training courses of this type are generally made up of modules of a duration of from one to five weeks. Each module gives the participants formal qualifications. The modular structure of the courses makes it possible to establish systematic alternate training, which can be adapted to the needs of the individual and the enterprise concerned. In addition to these modular courses, the vocational system also offers longer training programmes which give participants formal qualifications which may, by themselves or in combination with other types of training, enable the trainee to attain the status of a skilled worker. These programmes are available to employed workers, as well as to the unemployed.
Enterprise-oriented courses-oriented courses;
Enterprise-oriented courses supplement ordinary AMU courses, which are free of charge to enterprises. An enterprise with special needs may purchase AMU courses that are tailor-made to suit its needs.
Special courses for the unemployed
Special courses for the unemployed have been developed as the unemployment rate has risen. Their objective is to improve the trainees prospects of employment or further training. The target group for these special courses is composed of persons who have difficulties in finding employment, or in staying in touch with the labour market or the training system.
Work introduction courses are designed to improve the trainees links with the labour market and making it easier for them to start and complete some form of education or training. Trainees obtain personal, general and vocational qualifications designed to meet the needs and requirements that they will encounter on the labour market and in the education/training system.
The target group for these work introduction courses is unemployed persons above the age of 16. There are no requirements as regards the duration of their period of unemployment. The work introduction courses are a vocational guidance instrument with the special characteristic that the guidance is mainly based on workshop training, so that trainees can become familiar with work in one or more occupational fields, in both the private and public sectors.
A period of practical training is normally included in the training course. This practical training, which normally lasts for four weeks, takes place in an enterprise or institution. The practical training gives the participants the opportunity to test their skills and their aspirations for working life and a specific occupational field.
Financial support is provided to virtually all trainees. Those undertaking vocational training courses receive a course allowance which corresponds to the maximum rate of unemployment benefit.
Charges for course participants were introduced in 1991 in the adult vocational training system for certain specialized courses. Moreover, enterprises now have to pay fees in the event of the non-attendance or late cancellation of courses. Fees are also charged for certain certificates issued by the public authorities. Enterprise also pay for tailor-made courses in full or in part.
State intervention in the field of continuing vocational training dates back to the 1950s and the early 1960s, when labour market policies were an important element in the Social Democratic Government s policies. In 1960, the Social Democratic Government created the National Labour Market Authority (Arbejdsmarkedsstyrelsen) to provide continuing vocational training for unskilled workers. The system was conceived as a labour market policy designed to support and, to some extent, direct industrial development by subsidising industry indirectly through the provision of low-price training courses for the workforce. The vocational training centres were set up at a time when the general shortage of labour and the technological development of industry created a demand for semi-skilled labour. Moreover, the initial aim of the system, which was to upgrade the skills of the least qualified and unskilled workers, thereby turning them into more attractive employees, was in perfect accordance with social democratic ideology, as well as being a subject of broad consensus at the time.
In 1982, the Social Democratic Government was replaced by a Conservative/Liberal coalition Government which, with minor changes, was in power until 1993.
Under the Conservative/Liberal Government, comprehensive structural changes were implemented throughout the education and training system. The changes were encapsulated in the comprehensive 1985 Act respecting the labour market training system. This Act was followed by a new reform in January 1994, which continued the development of close cooperation between the social partners through the creation of the central Vocational Training Council and the new local structure of occupational committees.
Employers generally acknowledge the increasing importance of continuing vocational training on a labour market characterized by constant technological change and a decline in the number of young people receiving initial training. However, the lack of qualifications in the workforce is not perceived as the main problem in Danish industry. A much greater problem is the high level of costs in Denmark, particularly through taxation, which affects all enterprises. New vocational training initiatives in the public system financed by an increase in employers compulsory contributions are not therefore expected in the near future.
The Danish Employers Confederation (DA) considers that a number of changes should be made to the current system, particularly as regards the mechanisms determining the range, structure and content of courses and through the introduction of a mechanism through which trainees would participate in the cost of courses.
Another criticism of the system put forward by the employers is that the range of courses offered in their view mostly favours members of the Danish Federation of Trade Unions (LO), but neglects middle-managers, small tradesmen and technicians.
The more prominent role played by local actors in the continuing vocational training system, following the reforms, will influence the work of the system s decision-making bodies. The Danish Employers Confederation believes that it is important for the decision-making bodies to take part in the identification and analysis of present and future skill needs, and in the dialogue between enterprises and training centres that is bound to occur as a result of the deregulation process. A joint effort by the social partners will be needed in all sectors to analyse the needs of small and medium-sized enterprises and develop new models of continuing vocational training adapted to their requirements.
According to employers, the policy has up to now been to arrange courses to meet needs as and when they are identified. This policy is no longer tenable at a time when the system is under increased pressure and when both enterprises and wage-earners have registered strong objections to any increase in public expenditure financed through taxation. It is not possible to improve the system by doing more of the same . A shift in emphasis is therefore needed and selection of some kind has to take place. The panacea to cure all ills, in the view of employers, is to be found in free market forces.
A key factor in any restructuring of the system is the introduction of a system of partial payment by trainees for the services provided by training centres. The employers believe that when free market forces are applied in an area that was formerly regulated, supply and demand is matched more effectively and the market regulates itself. By making enterprises pay for part of the training courses that their employees receive, it would be possible to cut the public contribution to training centres. The savings thus made could in turn be ploughed back into the enterprises by lowering taxes, or alternatively could be spent on additional training activities. Moreover, instead of all enterprises paying a fixed percentage as contributions, the main cost would be paid by those enterprises taking most advantage of the courses.
Participant payment would also apply to trainees attending courses in an individual capacity. Whilst the costs of employees sent by their enterprises to attend continuing vocational training courses would be covered by their enterprises, all individual users would also pay for their participation. Clearly, trainees attending courses in an individual capacity would not pay an amount that corresponded to the real cost of the course, but the requirement to make some kind of payment would have the psychological effect of ensuring that only people who are really motivated enter courses. In the opinion of employers, valuable resources are wasted every year on trainees who are not really motivated to learn and who do not benefit to the optimum extent from their participation. Participant payment would be scaled in accordance with the real cost of courses. Certain very expensive courses would be subject to a proportionally larger participant payment in order to discourage trainees who are not genuinely motivated. Participant payment would result in a more effective utilization of resources, combined with an increase in the number of people admitted to each course and would go a long way to solving capacity problems.
For employers, the basic perception of continuing vocational training is as an investment. Financing is invested with a view to yielding a direct bonus to the enterprise in the form of better productivity or lower costs through a more efficient utilization of existing resources. The main interest is therefore focused on the acquisition of narrow job-related (process-dependent) skills, which can be directly and immediately applied in the workplace. In the view of employers, it is not the role of enterprises to take responsibility for upgrading the general educational level of their workforce. The Danish Employers Confederation believes that the State has provided the necessary framework to enable the workforce to attend general educational courses outside working hours at a reasonable price that everybody can afford.
In line with their perception of continuing vocational training as an investment, employers maintain that it is also an investment for the individual employee. The skills acquired by employees are theirs alone and can be taken to a new job if they so wish. It is therefore also appropriate for employees to contribute to this investment, for example by using their leisure time (and not only their working hours) for attending courses.
Danish employers have taken note of the increased interest in agreements on continuing vocational training shown by employees and trade unions. As a result, an increased number of agreements on training have been concluded in the context of collective agreements.
Employers prefer to conclude agreements at the enterprise level in order to give each employer freedom of choice. As a trade-off for anchoring continuing vocational training in collective agreements, the employers demand that employees pay some of the costs of continuing vocational training out of their wages.
The Danish Employers Confederation acknowledges the existence of a number of agreements on continuing vocational training concluded at the sectoral level, and particularly the creation of training funds constituted from a certain contribution per working hour. These funds may provide additional financing to training centres, which may, for example, be spent on expensive equipment or the development costs of new training modules, at a time when public fund are scarce.
The Danish Federation of Trade Unions (LO) recognizes that there is a huge demand for continuing vocational training if the workforce is to maintain its present level of skills. However, the trade unions do not believe that it is possible to meet this demand within the confines of the present budget. They therefore advocate an expansion of the labour market training system and an improvement in its efficiency.
The trade unions have a very comprehensive view of continuing vocational training and regard the labour market training system as only one aspect of a multifaceted structure. Since 1974, the Danish Federation of Trade Union has advocated a scheme known as Betalt Frihed til Uddannelse (BFU) or paid leave for education/training. Under this scheme, all workers have the right to 26 weeks of coherent education/training of their own choice, with adequate wage compensation. This education/training may be directly job-related, or of a more general educational nature.
Leave
The BFU scheme has in part been implemented through the Act respecting leave schemes. In 1992, leave with benefit for training and child care was introduced in Denmark when the Act respecting leave schemes came into force on 1 January 1994, and possibilities for taking leave for training or child care were improved and sabbatical leave, which may be taken for any optional purpose, was introduced. By the end of 1994, a total of about 80,000 persons were on leave, of who some 24,000 were on training leave, nearly 50,000 on parental leave and around 6,000 on sabbatical leave.
Training can be given for a duration of from one week to one year for approved training courses. However, leave is not generally accorded to participate in medium and long-term advanced education programmes.
The target groups for the Act respecting leave schemes are the unemployed, persons in employment and self-employed persons above the age of 25. One requirement to obtain leave is that the person concerned must be insured by an unemployment insurance fund and qualify for unemployment benefit. In the case of persons in employment and the self-employed, they must have worked for at least three years within the last five years. For persons in employment, leave is subject to an agreement with the employer. During leave, a benefit is paid of up to 100 per cent of the maximum rate of unemployment benefit, or DKK 2,555 a week.
The trade unions are committed to ensuring that the State remains an actor in the field of continuing vocational training, even though some trade unions have created their own training structures. One example is the FIU system set up by the Danish Federation of Trade Unions to train shop stewards and other trade union representatives, such as members of works councils and safety committees, and employees representatives on boards. The courses provided under the FIU system are designed to provide the skills needed to fulfil the functions of trade union representative, and may therefore be described as specific and narrow , or process-dependent. The FIU system is run entirely by the trade unions, but a large part of the financing comes from employers under the terms of a collective agreement.
Another example is HK Modul Data, a training system set up by the large Union of Commercial and Clerical Employees (HK). HK Modul Data consists of 21 training centres all over the country which offer training in computer technology. The courses are both general and specific in their nature. It is possible to build up skills by participating in a series of courses. The participants receive a certificate upon completion of the course and HK Modul Data is currently applying for quality certification from the International Standardization Organisation (ISO). Between 10,000 and 11,000 employees participate in HK Module Data courses every year.
Some white-collar unions have also organized their own system of continuing vocational training courses. These courses are based primarily on the needs of private enterprises.
They are sometimes financed by employers and sometimes by employees. In contrast to the labour market training system, they are not financed through taxation.
The trade unions believe that, in order to create a flexible and adaptable workforce, it is necessary to concentrate on broader transferable qualifications, such as improving the general educational level, which is a necessary prerequisite for future specialized training or retraining. More broadly based qualifications are of course valuable to individuals because they enhance their chances of finding employment elsewhere if they are made redundant. Increased versatility may also lead to a higher level of job satisfaction.
CVT as a collective bargaining issue
The trade unions consider that the provision of continuing vocational training is a very important issue in sectoral collective bargaining. Even though agreements at the enterprise level are also important in this respect, there is a risk of the labour market becoming fragmented into groups of employees with relatively easy access to continuing vocational training, those with more reduced access and those with virtually no access at all.
Collective agreements should not replace the existing system as the forum in which the social partners meet to negotiate issues related to continuing vocational training. They should, instead, alleviate the shortcomings of the existing system and ultimately help pave the way for the introduction of BFU schemes. The Danish Federation of Trade Unions has therefore identified three main issues in relation to which collective agreements may be used to strengthen existing systems, namely:
to ensure that workers have the opportunity, and not just the theoretical right to participate in continuing vocational training;
to create funds to finance continuing vocational training; and
to create a forum where employers and employees can meet and discuss continuing vocational training, identify needs and formulate strategies and binding policies.
In many areas, employees now have the right to one week s training leave a year, even though this right is not backed up by a guarantee of full wage compensation. This right may be defined further in complementary enterprise-level agreements, where factors such as wage compensation, the content of courses and placement can be addressed.
In major sectors, funds have been created in recent years to finance continuing vocational training activities. In most cases, however, this source of financing is used to finance projects and development work which are difficult to fund from traditional sources. Only in a few cases may the money collected for these funds be used to cover the decrease in wages suffered by the employees who participate in schemes such as the VUS scheme (VoksenUddannelsesStotte), where wage compensation is limited to the maximum rate of unemployment benefit. For most employees, this means a substantial reduction in income. Many employees are therefore reluctant to take advantage of this possibility.
In the last round of collective agreements, the last of these demands was largely met by all sectors. If one of the parties so wishes, an explicit plan for continuing vocational training and human resources development has to be drawn up in the enterprise. Employees now have the opportunity to gain influence on the policies and the allocation of resources in this area.
An important issue in Denmark is to influence the definition of continuing vocational training as much as possible so that it also includes participation in courses of a general educational nature.
Finansministeriet: Rapport fra udvalget om voksen- og efteruddannelse, Schultz Information, Copenhagen, July 1994.
Arbejdsmarkedets Centre for Internationale Uddannelsesaktiviteter: EC Force Programme: Analysis of Contractual Policy on Continuing Vocational Training. Danish Report, ACIU, Copenhagen, Nov. 1992.
Danish Ministry of Education: Report to OECD. Danish Youth Education. Problems and Achievements, The Danish Ministry of Education, Copenhagen, 1994.
and Danish Ministry of Labour: Vocational Education and Training in Denmark, Copenhagen, 1992.
Danish Ministry of Labour: Adult Vocational Training, Copenhagen, July 1994.
: Offers to the Unemployed and Leave Schemes, Copenhagen, Feb. 1995.
: The Danish Labour Market Model and Development in the Labour Market Policy, Copenhagen, July 1994.
: The System of Collective Bargaining, Copenhagen, July 1994.