Short report: Enterprises and vocational training

The Peer Review was held in Lisbon on 3rd and 4th November 2005 and hosted by the Portuguese Ministry for Labour and Social Solidarity. In addition to the host country, ten peer countries participated in the review: Cyprus, Finland, Germany, Italy, Latvia, Lithuania, the Netherlands, Slovakia, Turkey and the United Kingdom.

Key issues

The Portuguese labour market is facing structural problems related to a low overall level of education of its population. It therefore follows that investment in human capital to raise qualifications is crucial. The Portuguese employment rate is 67.5% with a high rate of full time jobs (66.3% in comparison to 57.8 in the EU 25). Currently, there are 39% of early school leavers; the target set for 2010 in the Portuguese National Reform Programme is to reduce the number to 25%. The Portuguese labour market still continues to absorb low skilled workers and in the last 18 months an increase in unemployment among the higher skilled has been observed. Portugal shows a complex relationship between school attainment, training, productivity and growth. In 2001 the agreement on Employment Policy, the Labour Market, Education and Training was signed. In a joint effort, the Government and the social partners targeted deficits in schooling and professional qualifications by developing a comprehensive strategy to promote quality of work with emphasis on a demand oriented approach and a share of responsibility (government, social partners, individuals). The main goals were:

• at least 10% of the workers of each enterprise should participate in continuous vocational training activities as from 2002
• all employees should have a minimum of 20 hours per year certified training as from 2003, and
• a minimum of 35 hours from 2006 onwards

In Portugal, continuous vocational training is seen as a key element in overcoming serious deficiencies in qualifications. The Peer Review focused on an actor-driven perspective of vocational training and on the role of enterprises. Enterprises play a central role in providing vocational training both as initial training and for updating/upgrading skills in a perspective of lifelong learning. Three policy domains of good practice were presented and discussed at the Peer Review:

• the training schemes aimed at small and micro enterprises - Programa Rede (network programme providing consultancy to identify training needs and support training in enterprises with less than 50 employees)
• the participation of enterprises in apprenticeship programmes (Initial Vocational Training to obtain a professional certificate along with a school diploma)
• the promotion of good practice in continuing vocational training (CVT) by enterprises

There is a need to ensure that all employees can participate equally in lifelong learning. Low skilled and older workers employed in SMEs in particular are among those who encounter most difficulties in updating their skills. These programmes are co-financed by the ESF and the Portuguese state. The discussion focused on:

• how to ensure the quality of training and trainers
• how to make enterprises fully aware of the need for training (especially SMEs)
• how to motivate people who have not previously engaged in learning; how to encourage them to take up these opportunities
• role of trade unions in motivating people
• how to break down qualification into units and modules, in particular to meet the training needs of people who have the least qualifications
• how to change the perceived low status of vocational education. What could be done in terms of awareness-raising?
• how to finance vocational training: responsibility of the state (free training) versus responsibility of the enterprises. Up to what level of qualification should free training be provided?

Some member states saw the Portuguese apprenticeship system as an interesting complement to the formal system of vocational schools. The Portuguese approach to tackling the challenge of improving qualifications of the labour force was seen as an interesting policy mix. The Portuguese programme on vocational training and the Peer Review address a number of issues high relevance for the Integrated (employment) Guidelines 23 & 24 which focus on: increasing investment in human capital, promoting changes and adaptability of enterprises and employees, cooperation with social partners in delivering policy measures on training, drastic reduction of early school leavers, and finding effective ways to address the specific training needs of SMEs.

Aspects of transferability

Transferability as such encounters difficulties because of the variety in the systems of the different peer countries. However, certain aspects of the programme were of great interest to peer countries. There was an overall consensus that building networks of advisers/consultants to identify needs of vocational training in SME (the most difficult to reach) as presented in the REDE programme could be learned from Portugal.

Participating independent experts

• Spyros RAYIAS

  Cyprus
  MKR ManSystems Business Consultants Ltd
• Simo AHO

  Finland
  University of Tampere, Work Research Centre
• Klaus SCHÖMANN

  Germany
  International University Bremen
• Zane LEDUSKRASTA

  Latvia
  University of Latvia
• Mark CHANDLER

  Lithuania
  Stockholm School of Economics in Riga
• Hans MOEREL

  Netherlands
  Institute for Applied Social Sciences
• Andrej SALNER

  Slovakia
  Slovak Governance Institute
• Hakan ERCAN

  Turkey
  Middle East Technical University
• Catherine DURUCAN

  United Kingdom
  Freelance Consultant