Reduce youth unemployment and create skilled labour force to fill gap in companies demands

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1 Certified vocational training implementing an Irish model Advantage? Reduce youth unemployment and create skilled labour force to fill gap in companies demands What is it? Combination of practical experience and theoretical training for 2 years Exists for more than 50 years in Germany (1969, vocational training act) Very successful model, cost efficient, easy way into employment for all parties How does it work? Company decide on syllabus Contract with employee and company lays out the training programme Employee gets approx a month, company provides training The employee goes to vocational training school for at least 12 hours per week Companies work together, shared services Chamber manages the parties involved: companies, training schools, semi-state bodies And takes care of syllabus, exams and quality management Main difference to existing training programmes are: a) companies not buying training --- they create the training b) stronger cooperation and dependency with all parties involved Why we are here? Department can benefit from vocational training scheme enormously Programme needs to be stimulated to get it started Department to initiate pilot project, take ownership and support the scheme Germany is happy to support if Irish Government is interested Next steps? Providing more detailed information to person who is responsible within the Department Visit for 1 day to Germany fact finding mission to explore training scheme to discuss concrete projects

2 The German System of Dual Vocational Training German-Irish Chamber of Industry and Commerce Hamburg Chamber of Commerce DIHK

3 Dual Vocational Training The gap between training and the demands of the labour market is a common complaint about vocational training company General school Vocational School School certificate company company company internship internship company Labour market

4 Theory Final exam Practical part Dual Vocational Training The German system combines training on-the-job with theory classes in vocational schools General School Training on-the-job Training on-the-job Training on-the-job Training on-the-job Training on-the-job company company company company company Vocational School: Theory Dual Vocational Training Labour market

5 Dual Vocational Training The system is called dual for the parallel training at the workplace and in vocational schools 3-4 days per week Qualified in-house trainers Standard training curriculum Apprenticeship contract 1-2 days per week Vocational school teachers School curriculum Governmental framework

6 Dual Vocational Training 350 standard curricula across all sectors are defined by sector experts and decreed by the federal government. Specialized occupations Specialized but broadly Occupations cutting employable occupations across different branches

7 Financing Dual Vocational Training The German system of Dual Vocational Training has been established as a Private-Public-Partnership since 1969 Initiate training Monitor training Assure quality Delegation of operations Legal framework Research Validate success Development of standard curricula Training on-the-job Examinations Financing Financial investment Chambers Companies Government Vocational schools Shared training School curricula Teachers with DVT experience Midterm and final exams Private Public

8 Vocational Training Act The German federal Vocational Training Act is the national framework for vocational training Framework on quality standards for companies, trainers, examiners, training contracts Formal recognition of training curricula Scientific research on vocational training Delegation of implementation to competent bodies on the local level Chambers

9 Dual Vocational Training On the local level, chambers are the competent bodies in charge of coordinating vocational training Vocational Training Act Competent Body for implementation and quality assurance IHK Vocational Schools shared training Companies

10 Dual Vocational Training The local chambers coordinate companies and schools, assure quality and issue proficiency certificates Monitor training counselling, mediation, local database on training needs Assure quality register companies, trainers, contracts; vocational training board Initiate training advise companies and learners Competent bodies Validate success organize exams, issue certificates of proficiency

11 Dual Vocational Training The issuing of proficiency certificates by the chambers is a result of the private-public-partnership Planning Joint development of occupational standards Financing In-house training by companies Vocational Schools by the Government Implementation 67% in-house training 33% school courses Examination Jury of in-house trainers and school teachers IHK Proficiency Certificate of local Chamber Organizsation by local chamber

12 Dual Vocational Training The Private-Public-Partnership is a triple win situation for companies, government and apprentices

13 Dual Vocational Training German companies and the government invest in vocational training and benefit from low youth unemployment Dual Vocational Training 1,6 Mio. apprenticeships new contracts every year Youth unemployment rate 8,5% Germany 22,5% EU average Company activities companies offering apprenticeship positions 80% are SMEs company in-house trainers company jury members Financial investment 30 bn. companies 3 bn. government

14 Advantages Arguments in favour of dual training Advantages for the industry Secures the skilled labour needed Reduces cost of settling-in Increasese motivation and loyalty to company Job-specific qualification Productive performance of trainees

15 Advantages Arguments in favour of dual training Advantages for young people Good prospects on the labour market Recognized certificate Practical orientation Payment of an allowance

16 Division of Responsibilities Division of responsibilities in dual training Industry Employers and Unions Draft proposal for the creation of new and the updating and existing training occupations Nominate experts for participation in the drafting of training regulations Negotiate provisions in collective agreements, for example, concerning the amount of allowance paid to trainees.

17 Division of Responsibilities Division of responsibilities in dual training Industry Self-governing bodies (chambers) Advise the stakeholders in training Supervise training in the company Verify the aptitude of companies and training instructors Register training contracts Administer examinations

18 Facts and Figures A majority of young people learn in the dual system School students Dual training Currently about 1.6 million trainees in 348 training occupations

19 in % Youth Unemployment Rate Youth unemployment rate in December 2011 (under-25s) in % 60,0 50,0 49,3 40,0 30,0 26,9 27,0 29,3 30,7 31,1 33,7 35,0 20,0 14,2 14,4 16,7 16,7 17,0 18,4 19,9 22,6 23,0 10,0 8,3 8,4 8,6 0,0 Germany Austria Netherlands Denmark Malta Luxembourg United States Belgium Czech Republic Finland France Sweden Poland Hungary Bulgaria Italy Ireland Slovakia Portugal Spain State: December 2011 / Source: Eurostat

20 Conclusion German dual training is an excellent system for qualifying skilled workers. It leads to a win-win-situation for companies, government and young people, altogether. But it s also a very complex system. It works because of its history and long tradition in German culture.

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