As a small country on the periphery of Europe, Ireland has long been acknowledged as having an influence on a range of international developments that at first glance neither its size nor geographical position would appear to warrant. Training partnerships between the State and enterprise are an area in which this trend may well be continuing.
A range of partnership approaches are in evidence, many involving both structural and methodological innovations. Of particular interest is the prominent role now being played by the social partners in leading and fostering such initiatives. It is important to note, however, that such developments are all taking place against a favourable economic backdrop and within an overall national framework of cooperation between the social partners and the Government on economic and social issues.
As the objective of this exercise is the generation of comparative and innovative ideas, practices in the field of training and development which could be regarded as routine are not specifically dealt with in this paper. Moreover, activities which, by reason of unique cultural, legal or social circumstances, are deemed to be of relevance only in the Irish context, have also been excluded.
Despite these considerations, it can readily be seen that the training and development scenario in Ireland is dynamic, with a plethora of partnership arrangements emerging in recent years. Despite its relatively small size and population, the Republic of Ireland has a dynamic industrial and service base, within which both transnational companies and indigenous enterprise interact with state systems and organizations; training and development has featured prominently in these relationships. As a possible exemplar for other countries and institutions, Ireland has the added attraction of having absorbed and refined much innovative thinking on training from the European Union since it joined the European Community in 1973. It has also acquired a good deal of experience derived from its long historical and cultural links with both the United States and the United Kingdom.
The author is indebted in particular to the Department of Enterprise and Employment, the Training and Development Authority (FAS), the Irish Business and Employers' Confederation (IBEC) and the Irish Congress of Trade Unions (ICTU) for their support and cooperation. In the part of the paper concerned with "Training and development based on social dialogue", the achievements of the Irish Productivity Centre (IPC) in recent years are noted and its advice gratefully acknowledged.
Two particular innovations with training and development dimensions are noteworthy in recent years in Ireland which have advanced interaction between the State and enterprise. One is of a structural nature, while the other is of more methodological interest:
(a) the establishment of a national network of County Enterprise Boards (CEBs) for the promotion of an enterprise culture at the local level and the generation of a range of enterprise-related projects at micro level; and
(b) the conduct and evaluation of a major innovatory project on job creation, using a "social dialogue" approach, coordinated by the Irish Productivity Centre (IPC) in 1993-94, with financial assistance from the European Union and the involvement of both the State and private sector enterprises.
In recent years, the performance of the Irish economy has been encouraging, as measured by conventional indicators. This performance has brought international acknowledgement, for example from the Economic and Finance Ministers of the European Union, who in June 1994 confirmed Ireland's adherence to the fiscal convergence criteria set out in the Maastricht Treaty. At 2.3 per cent of GDP, the national debt is well under control. Forecast economic growth for 1995-96 is around 5 per cent per annum, with inflation at 2.5 per cent.
This overall picture bodes well for the economy. The situation is complemented by a range of operational programmes for the period 1994-99 agreed between the Irish Government and the European Union, which collectively form the national plan for that period. These include measures for industrial development; agricultural, forestry and rural development; fisheries; and local and urban renewal. Of particular interest is the operational programme for human resources development, the potential impact of which can be gauged by the fact that the European Union commitment to it, through the European Social Fund and the European Regional Development Fund, is estimated at some ECU1,732 over the whole period.
What emerges therefore at a macro level is a strong economy with an underlying commitment to human resource development, which is in turn supported, at least for the period 1995-99, by significant financial backing from the European Union. This situation not only augurs well for potential State/enterprise partnerships but, as will be seen, complements existing partnership efforts.
Despite the favourable economic scenario, Ireland continues to experience severe unemployment. The rate is currently (1995) around 18 per cent of the labour force, affecting some 280,000 persons. The labour market situation in Ireland is complex, with a number of factors interacting in a very dynamic manner:
Although not central to the State/enterprise partnership situation, it should nevertheless be pointed out that some commentators consider that the family and social welfare benefits available to unemployed persons in Ireland act as a negative incentive to employment creation. The situation is exacerbated by high marginal tax rates for those at work, with the result that some persons are financially better off refusing some of the jobs that are available. This is one of the arguments used by advocates of highly flexible pay and conditions in industrialized countries. Although the trend towards centralized wage bargaining in recent years has restricted these trends in Ireland, many employers and other commentators have expressed concern at the overall cost of job creation measures.
However, such is the commitment to the issue of employment that it pervades all action by the State, including partnerships with enterprises in general, and affects the resulting training arrangements. The content of many innovative training programmes have their roots in the concern to preserve and create employment.
A unique feature of the Irish economic and social fabric over recent years has been the existence of national concordats between the Government and the social partners, who in this respect include not only employers' organizations and trade unions, but also the farming community. The Programme for Competitiveness and Work (PCW) is the third of such arrangements and runs until the end of 1996.
These programmes seek to create cohesion in economic and social affairs in Ireland by integrating the aims and aspirations of the Government with those of the major economic and social groupings. The programmes run parallel with macro national development objectives, which they translate into agreed targets for the interest groups. In particular, the programmes include agreement on centralized wage structures. For example, a key element of the PCW is a centralized pay agreement for three years (1994-96).
From the perspective of partnership as it relates to training/development and to enterprise, there are a number of core provisions of the PCW that merit attention:
There is therefore a well-established background to partnership at the macro level which, to a certain degree, facilitates enterprise/State cooperation on training. This partnership finds expression principally through the activities of three main actors: the Training and Employment Authority (FAS); the employers' representative organization, the Irish Business and Employers' Confederation (IBEC); and the trade union coordinating body, the Irish Congress of Trade Unions (ICTU). These three agencies, which work independently, influence the whole direction of training partnerships at the enterprise level, as well as in national and regional terms.
FAS, the Training and Employment Authority, has a staff of some 2,000 and is the most powerful administrative and service delivery agency in the labour market in Ireland. Although training and development policies are decided upon by the central Government, through the Departments of Education and of Enterprise and Employment, the FAS also influences policy. In addition, its staff play a major role in fostering and maintaining relationships with the European Union.
The FAS embodies the partnership approach. Representatives of employers and trade unions, nominated principally by IBEC and ICTU, sit on its Council and all its industrial and regional structures.
State/enterprise cooperation in the field of training has its origins mainly in the partnership fostered by FAS. As a result, FAS exercises considerable influence over training measures, the nature and level of the financial incentives available to enterprises and the revised apprenticeship arrangements. Furthermore, in its administrative capacity, FAS plays a key role in overseeing and evaluating European Union programmes, such as those promoted by the structural funds, and specific training-related initiatives by the European Union, such as FORCE, ADAPT and LEONARDO.
However, it would be simplistic to assert that the existence of FAS and the inclusion of the social partners in its structures are the only factors promoting partnership in training. Some recent initiatives, in which employers and trade unions, although content to remain within FAS structural arrangements, have taken independent action, merit attention since they may influence the future environment of training partnerships.
IBEC, the central employers' representative body, has long sought a more influential role for employers in the labour market and in particular in training matters. In 1994, it proposed to the Government and the European Union the establishment of an "employment training body", which would be led by industry rather than by FAS. One reason for this recommendation was what the employers saw as a neglect by the State and FAS of the training of those who are at work, combined with a belief that employers are in the best position to determine industrial training requirements. The document setting out the proposal expressed disillusionment with FAS training committees, but interestingly saw a role for the trade unions in the new structure through the ICTU.
Whatever its outcome, the proposal is dynamic and demonstrates a serious intention on behalf of employers to engage in dialogue and action in the field of training and in the context of a partnership structure. It also shows an element of leadership in employer thinking and a reaction to what is perceived as the passive role played by employers in some existing representative structures. The proposal states that "employers want to make the major contribution in providing training and development opportunities for their managers and employees".
While not publicly seeking significant changes in representative structures and leadership roles in training and development in Ireland, the trade union movement, through the ICTU, has also adopted some radical stances recently. Two such developments are noteworthy as a backdrop to the debate on partnership in training:
However, like IBEC, the ICTU continues to see partnership in training as a cornerstone of joint activities and there is a certain degree of agreement over joint consultation at the enterprise level. The recent moves by both IBEC and the ICTU should probably be seen in a dynamic context in which both interests are keen to play a more proactive role and exercise greater influence, both within and outside FAS.
A further impetus to enhanced partnership arrangements in training at the enterprise level in Ireland comes from a European Union study conducted in 1993 under the FORCE programme. This study draws attention to the relatively low incidence of contractual arrangements for training between employers and trade unions in comparison to the situation in other Member States. Although this is partly due to cultural and legal factors, the findings have stimulated debate in Ireland and will be discussed by the "Advisory Committee on Partnership in Change", a group set up under the aegis of the Department of Enterprise and Employment in 1995 to advise on how change can be facilitated through partnership.
There is therefore a readiness in Ireland to engage in training partnerships between the State and enterprises in which enterprise interests are represented, not only by employers, but also by trade unions. The various actors are currently reassessing their positions as to the precise roles that they wish to play. However, the partnership ethos is strong and conducive to innovation.
The influence of the European Union is particularly strong in this respect as it offers an arena in which new partnerships can be forged with both technical and financial support. This is the overall background against which a large number of partnership initiatives have been developed involving the State and enterprise, some of which are described below.
A small organization, the Irish Productivity Centre (IPC), is a limited liability company owned jointly by IBEC and the ICTU. It also receives some financial support from the State and for many years has successfully tendered for innovative projects from the European Union. Its structure and mandate ideally equips it to undertake innovative work in the field of State/enterprise partnerships. During the period 1992-94 it coordinated an important project on "Training for social dialogue", in which seven organizations established a network, created joint management/union teams within each enterprise and embarked upon a series of projects, each designed to create or preserve employment through partnership efforts.
The organizations involved were chosen as being representative in terms of a public/private sector mix and location. Three of the private sector organizations involved were themselves subsidiaries of transnational corporations.
Methodology
Each project team was selected to represent a cross section of the organization concerned, including both management and trade union interests. Each team considered and reviewed possible employment-generation opportunities, both within and outside the boundaries of the organization and, in consultation with the IPC team, designed and implemented appropriate training in how to carry out a project in the chosen area(s). All seven core teams met on three occasions during the project, presented a progress report on their work and gave and received constructive criticism on their projects. This holistic approach greatly strengthened the impact of the project. The need to present project reports and share findings provided momentum and motivation to the teams. IPC staff acted as mentors to the teams, administered the workshops and visited the organizations regularly between workshops to provide advice and assistance as requested.
To illustrate the nature of projects carried out, two examples are chosen:
Outcome
An evaluation of the overall project indicated that some 36 new jobs were created in the lifetime of the project, that sound management/employee partnerships were established for future activities and that each organization involved foresaw additional opportunities based on this methodology in the future.
It is probably indicative of the influence of the project that in 1995 the Government, in conjunction with both IBEC and the ICTU, requested the IPC the coordinate a further major networking project on "New forms of work organization", which will be carried out over the next three years and will involve a number of organizations working together in a network.
The overall "shared learning" methodology involved in such projects consists of a number of core elements:
The end result is dynamic interaction based on social dialogue which can produce significant results and outcomes that would not always be possible using alternative methods. Moreover, the entire process is in harmony, not only with the macro social partnership scene in Ireland at present, but also with the aspirations towards social partnership of the European Union, where collaboration through social partnership is viewed as a cornerstone of economic and social development.
There can be little doubt that this methodology is transferable and there is already a good deal of international interest in the approach. In 1995, for example, a visiting delegation of senior civil servants from Sweden examined how the approach had been implemented. Other organizations in Ireland are building the methodology into a series of transnational projects.
It is important to note in this connection that intense support efforts are required under this methodology and that the mere creation of a project structure will not of itself produce outcomes. However, on a more positive note, preliminary financial and economic indicators show that indices for the cost per job are lower than might be expected from direct financial investment to create a similar number of jobs.
The promotion of local micro enterprises and the creation of an enterprise culture has long been a goal of the Irish Government which has the support of the social partners in this aim. Within the overall Government Plan 1994-99, there are specific operational programmes for industrial, human resource and local, urban and rural development. A key factor in the implementation of these operational programmes is the creation of 35 County Enterprise Boards (CEBs), which are geographically based, representative of local interests, include representatives of the social partners and act as a stimulus to local enterprise generation through the provision of financial and other support.
An overall perspective of the Irish approach to local development, within which the CEBs play a key role, is given in the statement on the principal objective of the local, urban and rural operational programme, namely "promoting enterprise creation and employment, a reintegration of the long-term unemployment and other marginalized groups into the labour market, promoting education and training measures to prevent early school leaving leading to social exclusion and a regeneration of the environment in inner cities, towns and villages".
The specific functions of the CEBs include:
The importance of these structures is illustrated by the fact that some IR£80 million is earmarked for allocation by the CEB network during the period 1994-99 for support to local enterprise generation.
The training/development aspect
Training and development will play a key role in a number of ways as part of the overall efforts of CEBs:
Although it might at first sight appear that existing enterprises play a minor role in State/enterprise cooperation in the context of CEBs, since the emphasis is placed on new enterprise activity, this conclusion would be incorrect. At the local level, existing enterprises are in effect the springboard for enterprise generation, either by creating markets for goods and services, or by providing models for parallel entrepreneurial activity. It should, however, be noted that CEBs do encounter the problem of "displacement", whereby the employment that is generated by project activities displaces existing jobs.
An important element of State/enterprise partnerships, as embodied in the CEB concept, is the propagation of an "enterprise culture". This requires a considerable training/development effort through which a range of local participants gain a sound understanding of the rudiments of economic activity and, in effect, become financially literate. Central issues in activities of this type are the concept of local labour markets and the manner in which they operate, the ideal relationship between "profit" and "employment", and the whole notion of "competitiveness". The existence of CEBs helps empower local communities by increasing their understanding and encouraging them to act on the opportunities for enterprise.
This laboratory of economic activity is a powerful learning network, in which a balance is being achieved between the aspirations of the various groups towards what might at first sight appear to be conflicting objectives. This involves answering the following questions in practical terms: Is it realistic to create low-paid jobs locally in the interests of employment generation? How can trade union activity stimulate enterprise? Are new forms of enterprise possible that complement traditional labour market models?
The CEB initiative is therefore proving to be a dynamic concept in which the notion of partnership between the State and enterprise is being refined and developed. It is also an initiative in which creative training and development plays a major role.
An examination of the Irish approach to innovation in the field of training partnerships between the State and enterprise gives rise to a number of interrelated conclusions and observations:
In conclusion, it is to be hoped that the overall climate for partnership created in Ireland in recent years, allied to emerging structural and methodological innovations in the fields of training and development, can serve as a model for other countries, with the reservation that the prevailing economic and social environment in Ireland has promoted such innovation and that similar conditions may need to prevail elsewhere if positive outcomes are to be achieved.