4. Governance and framework for social partners’ involvement in vocational education and training

A successful vocational education and training (VET) system needs strong individual vocational programmes. But such programmes, in isolation, are not enough. The vocational system also needs to be internally coherent, with clear relationships between different VET programmes and the wider education and training system, with clear routes of transfer and progression between vocational training and general education programmes. In addition, the vocational system needs to fit with wider social and economic requirements. This coherence and internal logic also needs to be transparent to all the stakeholders in the system. That will allow individuals to make informed choices, with an eye not only on immediate outcomes, but also on progress from one VET programme to another and into the labour market. It will also help employers to understand and relate to the different vocational programmes, which can increase their trust in the system and their willingness to engage in the design and delivery of VET.

The issue of co-ordination between various decision makers may potentially represent a challenge in Brazil as VET schools are run by a range of bodies including the federal government, states, municipalities, private providers from Sistema S, and other private providers (Itaú Educação e Trabalho, 2021[1])). Expansion of initial upper secondary VET would also require building a framework for social partners to advise on various aspects on VET policy.

In this report, the term ‘social partners’ designates both employers and trade unions, recognising that the composition of social partners differ by countries. In many countries, employees’ representatives are involved in consultations about VET. Their point of view may differ from that of employers as they represent employees’ interests. So for example, they may be in favour of a broader VET curriculum that provides individuals with strong general skills facilitating individual mobility on the labour market. Employers, on the other hand, may be more interested in provision of employer-specific skills that make individuals job-ready but which cannot be readily applied to another employer. The role of trade unions in the VET system depends very much on their organisation and their broader role in policy-making in individual countries.

The governance of VET is often complex, reflecting the fact that VET caters to different populations, such as young people in schools and adults returning to education, and spans across a range of sectors. Consequently, responsibility for VET can be spread across different bodies and levels of governance.

Different ministries can be vested with different responsibility for VET. For example, in Israel responsibility for most adult vocational education and training rests with the Ministry of Labour, responsibilities at upper secondary and post-secondary level are shared between the Ministry of Labour and the Ministry of Education. In addition, the Ministries of Health, Tourism, and Defence all have significant responsibilities regarding training in their respective sectors. Division of responsibilities can be a challenge if different provisions duplicate each other and are poorly connected. One effect of such fragmentation is that vocational programmes may be dead-ends, when students moving across programmes run by various ministries find it difficult to have their qualifications recognised and build on knowledge and experience acquired previously (Kuczera, Bastianić and Field, 2018[2]). Responsibility for VET can also be spread across different levels of governance, such as the national level, regions, municipalities and individual institutions. The exact distribution of responsibility depends on the administrative structure of the country. Typically, in countries with devolved administrations such as Germany, Spain, Switzerland, the United Kingdom and United States, sub-national units retain major responsibility for education.

Several strategies are used to reduce fragmentation in the VET system. Some countries do so by vesting one institution with overarching responsibility over VET. In Viet Nam, some parts of the VET system were managed by the Ministry of Education and Training, while others were supervised by the Ministry of Labour, Invalids and Social Affairs. Recognising challenges resulting from shared responsibility the legislation simplified the existing landscape and consolidated most responsibilities for the VET system under the Ministry of Labour, Invalids and Social Affairs (Kis, 2017[3]). In a federal context, a number of OECD countries balance decentralisation with strong federal institutions in the domain of vocational education and training. This is clearly visible for example in the federal management of the VET system in Switzerland, and in the co-ordination role of the Commonwealth government in Australia. On the other hand, Canada’s Red Seal Program is managed by a voluntary intergovernmental partnership, which facilitates labour mobility and harmonization of apprenticeship training across provinces and territories through common standards and examinations. Co-ordination at the national level ensures that VET qualifications are recognised country-wide and VET graduates are employable in their field across the country. In Switzerland, the establishment of federal diplomas for the police and fire service workers (who are employed locally by the cantons) ensures that they can work in any canton (Fazekas and Field, 2013[4]). Some countries ensure that VET is provided efficiently by fostering collaboration between different bodies and levels, and sometimes create an independent body which role is to mediate and represent interests of various stakeholders (Box 4.1). Different measures are not exclusive, i.e. a country may vest one level of governance (e.g. federal authority) with more responsibilities and at the same time create independent bodies facilitating collaboration.

Co-ordination of VET policies should not eliminate local and school autonomy in some aspects of VET. Decentralisation may lead to positive outcomes by giving inspired individuals enough space for action and development of new ideas. It may foster an innovative and flexible approach, which adapts to the needs of local communities and individual employers, and in the public policy space, allows room for local innovation, entrepreneurial approaches and diverse voices in the debate. Local autonomy is particularly important in large and diverse countries such as Brazil, as it is highly unlikely that one set of rules and standards would suit all localities. For example, evidence shows that the ambitious programmes launched by the Brazilian government to retrain workers for employment in sectors with growing employment work best when they address local labour needs (OECD, 2020[12]). While these programmes mainly target adults, similar conclusions can be drawn in relation to programmes for young people (OECD, 2020[12]).

However, decentralisation typically results in a lot of variation if the outcomes are very much dependent on individuals. The objective is thus to ensure co-ordination of various provisions, typically organised at the national or regional level, while allowing some degree of innovation and flexibility at the local level. VET programmes typically aim to achieve objectives and follow standards defined at the national level. The national guidance and quality control ensures all VET schools in the country meet at least the required minimum. Ideally, national prerogatives are combined with local freedom whereby schools can often adapted the content to the local labour markets. Local freedom also allows institutions to go beyond the required minimum and set up strong partnerships with local employers. For example, in Norway schools in areas with economic activities related to petrol extractions, propose VET programmes preparing for the related jobs.

The vocational training system has to respond to the needs and interests of multiple stakeholders, employers in particular, as well as other labour market actors such as trade unions, so that training yields the right skills for employers, and supports individuals over a lifetime career. The engagement of social partners ensures that the skillsets embodied in vocational qualifications reflect occupational needs, and that the mix of training provision reflects the demand for jobs of different types. At the local level, good relationships between the vocational training system and social parents help to facilitate work placements for vocational students (see Chapter 3). Looked at across countries, VET systems therefore maintain a diverse range of bodies to maintain these links at national, regional and sectoral levels. At the national level, over-arching VET bodies engage the social partners, and typically serve the function of drawing together different ministries with VET responsibilities and other relevant stakeholders.

Social partners’ involvement can be described as a continuum between two extremes: social partners run education and training which is provided entirely on-the-job, and schools keep the full responsibility for vocational education and training with no input from social partners. The majority of initial VET programmes fall somewhere in between. Social partners’ engagement would typically be strong in apprenticeship systems whereas in school based VET it would be less prominent.

A study by Renold et al. (2016[8]) argues that collaboration between public authorities responsible for education and training and social partners yields optimal outcomes, as all the involved parties benefit. Education authorities are best placed to teach as they have access to teachers, curriculum designers, and students. Employers, on the other hand, possess the latest equipment and technology and the most qualified trainers, and can provide students with real world experience (Renold et al., 2016[8]).

Involvement of social partners in VET policy yields many benefits. The engagement of social partners in VET systems helps to improve labour market outcomes for students and helps to meet the skill needs of employers. Strong VET systems, drawing on social partner engagement, yield benefits to employers by increasing the pool of qualified labour, and benefit students by facilitating their transition to skilled employment (Chapter 3 discusses in more detail benefits associated with work-based learning). In Sweden, a study looking at the provision of work placements in upper secondary VET shows that a strong partnership between the school and local councils improves outcomes from VET (Lundin, 2016[13]). The collective involvement of social partners in VET as a valuable spin-off, can encourage innovation in firms. Social partners are able to reflect upon, and share information, new technologies, production and training methods while updating the components of VET programmes. This effect is stronger for small firms, implying there is a transition of knowledge and innovation from larger companies to smaller ones (Rupietta and Backes-Gellner, 2017[14]).

A strong VET system involves social partners at all levels where decisions about VET are taken. How the division of responsibility over VET is shared across different bodies depends on individual countries. Social partner engagement occurs at national level, for example in agreeing the main policy features of the VET system: at local and regional level, for example in handling arrangements for work placements. Table 4.1 shows the levels at which social partners are involved across selected OECD countries. Denmark and Finland, like Sweden, maintain arrangements for engaging social partners with individual institutions.

Social partners are often organised by sectors and decide or advise on corresponding VET programmes, for example, social partners representing the construction sector provide input in the design of VET programmes in construction. Sector Education and Training Authorities (SETA) in South Africa provide an example of such sectoral bodies (see Box 4.2).

The influence of social partners can be just advisory or consultative, or alternatively can involve full decision-making. In many apprenticeship systems social partners decide on occupational qualifications, corresponding skills, assessment requirements and methods, and the content and delivery of work placements (e.g. in countries such as Austria, Denmark, Germany, Norway and Switzerland). Norway has reinforced the role of social partners in the apprenticeship system by promoting their role from advisory to decision making in relation to the content of training taking place in companies (Utdanningsdirektoratet, 2017[19]). The high level of involvement of the social partners reflects the central role of the employer in apprenticeship: relative to other forms of vocational training, employers therefore have more obligations but also more control.

VET systems engage the social partners in different ways and at different levels (see Table 4.1). Effective arrangements should allow social partners to provide their input into VET regularly, in a timely manner, and in all relevant areas. Box 4.3 describes the form of social partner involvement in Denmark, Norway, South Africa and Sweden. In the four countries, systematic arrangements give the social partners an advisory or decisive role either at national, regional, sectoral or institution level.

The information provided in Box 4.3 shows that social partners have a say on various aspects of VET. A study by Renold et al., (2016[8]) explores links between social partners’ engagements in VET and youth employment outcomes in selected countries. It distinguishes three areas of social partners’ involvement:

  • curriculum design phase which is about establishing qualifications and examinations standards and setting up quality requirements for VET programmes

  • curriculum application which concerns itself with the delivery of the curriculum including provision of training, cost sharing, administration of exams

  • and finally there is a curriculum feedback phase during which qualifications are updated.

According to country experts and practitioners involvement of employers in the curriculum design is the most important followed by their engagement in the curriculum application and providing feedback.

The Netherlands and Korea provide contrasting examples of countries with regards to social partners’ role in the development of curricula. In the Netherlands, firms and VET schools work together to design a curriculum that fits the needs of the labour market. Skills and knowledge that individual VET programmes should develop in students are described in qualification files. The qualification files have to be updated every four years. Since 2012 their efforts are co-ordinated by the SBB (see Box 3.4 in Chapter 3), a platform facilitating interaction among different stakeholders (Renold et al., 2016[8]). In Korea, involvement of social partners is more limited. Schools are relatively free to create the VET part of the curricula, mostly according to local industry demands. Officially, industrial groups and employers are not involved in curriculum design (Renold et al., 2016[8]), but they might influence the content through negotiations with the VET high schools (Kuczera, Kis and Wurzburg, 2009[26]). There is no formal process for VET high school curriculum updating since it is all done in-school.

In Switzerland, the role of different stakeholders in defining VET qualifications and standards of VET programmes is in fact legally defined (Box 4.4).

It is easier to engage employers when organised structures, such as employer associations or chambers, exist. Germany has a network of Chambers of Commerce and Industry that represent employers from different sectors. The membership is compulsory as all registered companies in industry, commerce or service are required by law to be a member of one of the Chambers. The Chambers among other things play a key role in provision of VET. They are responsible for providing advisory services to participating companies and supervising company-based training. The Chambers also register apprenticeship contracts, assess the suitability of training firms and monitor their training, assess the aptitude of VET trainers, provide advice to training firms and apprentices, and organise and carry out the final exams.

In some other countries, employers are less organised. This can pose a problem to policy makers as it may not be clear whom they should talk to. The United Kingdom addressed this issue by imposing an obligation on employers who wish to develop an apprenticeship qualification to work together. Employers’ input into the definition of qualifications is managed by the Institute for Apprenticeships and Technical Education. The Institute is an employer-led organisation sponsored by the Department for Education, with an independent chair overseeing its work. This chair leads a board of employers, business leaders and their representatives to make sure the apprenticeships and technical products are of the highest quality. The Institute develops, approves, reviews and revises apprenticeships and technical qualifications with employers. A group of employers that wish to set up a new apprenticeship submits an occupation proposal to the Institute. Following the acceptance of the occupational proposal, the standards and assessment as well as funding plan are defined. They are then reviewed by an independent party (Institute for Apprenticeships and Technical Education, 2021[28]).

Some forms of co-ordination between different levels of governance and existing education and training systems is important to foster coherence and collaboration in the VET system, avoid fragmentation, and make the system easy to navigate for students, schools and employers. The issue of co-ordination between various decision-makers may potentially represent a challenge in Brazil as VET schools are run by a range of bodies, including the federal government, states, municipalities, private providers from Sistema S, and other private providers (Itaú Educação e Trabalho, 2021[1]).

Local autonomy is particularly important in large and diverse countries such as Brazil, as it is highly unlikely that one set of rules and standards would suit all localities. Ideally, national/regional prerogatives are combined with local freedom whereby schools can often adapted the content to the local labour markets and student needs. Therefore, the objective should be to ensure co-ordination of various provisions, typically organised at the national or regional level, while allowing for innovation and flexibility at the local level.

Brazil may start with revising existing or creating new VET programmes of excellence through collaboration between selected schools and companies or Sistema S. Stimulating economic development in poorer regions can be one of the goals in setting up such centers of VET excellence. The initiative can be scaled up if successful. Some VET programmes are already run by employers (as part of Sistema S), and many of these programmes are associated with positive labour market outcomes. Involvement of Sistema S in discussions on how the current reform should be rolled out and how to ensure socials partners are involved in provision of VET can help in ensuring the quality of VET.

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