iii TABLE OF CONTENTS Introduction 1 PART ONE / LABOUR MARKET AND POLICY CONTEXT 3 Chapter 1 / The position of low-qualified workers in the Labour market and lifelong learning in Flanders 5 1. The supply side of the labour market 5 2. The demand side of the labour market 7 3. Participation in continued education and training 8 4. Conclusion 9 Chapter 2 / The underlying policy perspective of the flemish government and social partners 11 1. The Flemish Government: the Job Rotation Plan (Wisselbanenplan) and the Flemish Action Plan for Lifelong Learning 11 1.1 Job Rotation Plan (Wisselbanenplan) 11 1.2 Flemish Action Plan for Lifelong Learning 13 2. The social partners: action plans on diversity policy Chapter 3 / 14 Specific instruments for upskilling linked to the integration of job seekers 17 1. Individual company training 1.1 What? 17 1.2 For what employers? 17 17 iv Table of contents 1.3 For what job seekers? 1.4 Concrete operation 1.5 Evaluation 17 18 19 2. Insertion training (inschuifopleiding) 19 3. Insertion department (invoegafdeling) 3.1 What? 20 3.2 For what employers? 3.3 For what job seekers? 3.4 Concrete operation 3.5 Evaluation 20 4. ‘Learning island’ projects (Leereilanden) 4.1 What? 21 4.2 For what employers? 4.3 For what job seekers? 4.4 Concrete operation 4.5 Evaluation 21 5. WEP-plus 5.1 What? 23 5.2 For what employers? 5.3 For what job seekers? 5.4 Concrete operation 5.5 Evaluation 23 Chapter 4 / 27 Specific instruments for the upskilling of incumbent workers 20 21 21 21 22 22 22 23 24 24 24 25 1. Leverage grants (Hefboomkredieten) 1.1 What? 27 1.2 For what employers? 1.3 For what employees? 1.4 Concrete operation 1.5 Evaluation 27 2. Training and guidance vouchers for employees (opleidings- en begeleidingscheques) 2.1 What? 29 2.2 For what employers? (not applicable) 2.3 For what employees? 2.4 Concrete operation 2.5 Evaluation 29 3. Sector covenants 3.1 What? 31 31 27 28 28 28 30 30 30 30 Table of contents 3.2 3.3 3.4 3.5 For which employers? For which employees/job seekers? Concrete operation Evaluation PART TWO / CASE STUDIES Chapter 5 / Vitamin W - Learn & Work centre ‘Care & Cleaning’ and ‘Logistic Assistant’ training courses v 31 32 32 32 33 37 1. Introduction 37 2. Vitamin-W: pioneer in social entrepreneurship 2.1 Origins and operation 2.2 Financing 2.3 Vitamin-W as a learning organisation 37 37 38 39 3. Target group 39 4. Obstacles to sustainable employment 40 5. Principles and methodology of upskilling 5.1 Competence-based thinking 5.2 The combination of learning and work 5.3 Learning contents, phasing and methodology 41 41 41 41 6. Results 42 7. Conclusion 43 Chapter 6 / Jobcoach network 45 1. Origin of the initiative 45 2. Organisation and structure 46 3. Principles 46 4. Target group 47 5. Obstacles to sustainable employment for the low-qualified 5.1 Competences of the employee 5.2 Characteristics of the employer 5.3 Circumstantial factors 47 48 48 49 6. Methodology and instruments of jobcoaching 49 vi Table of contents 6.1 Methods of Referral 6.2 Phasing of the coaching process 6.3 Handbook and training 49 50 51 7. Role of the jobcoach in the context of upskilling 51 8. Results 52 9. Conclusion 52 Chapter 7 / Upskilling of team leaders at Harol 55 1. Introduction 55 2. Objective of the ‘upskilling’ initiative 55 3. Target group and intended competences 56 4. Content of the upskilling-activities 57 5. Actors involved 58 6. Financing 59 7. Results 59 8. Conclusion 60 Chapter 8 / Bibliography General conclusion 61 63 1 INTRODUCTION This ‘expert report’ is the Flemish participation in the SULQ-project (Skills upgrading for the low-qualified) of the OECD in the context of the LEED programme (Local Economic and Employment Development). The LEED Programme analyses and disseminates innovative ideas relating to local development, employment and the social economy. It covers decentralisation of employment policies; local partnerships and governance; entrepreneurship; social innovations; globalisation and local authorities. Based on the voluntary participation of countries, its programme provides a large measure of operational flexibility. The key issue of the SULQ project is the provision of training for low-qualified groups, with a view to more sustainable integration or indeed opportunities for job upgrading. In the past, low-qualified, long-term unemployed people sometimes appeared to get back into work through active labour market programmes, but to lose their jobs again rather quickly with the next economic downturn. Other workers kept on ‘churning’ between low-paid and temporary jobs, with little (if any) perspective for upgrading. In order to prevent this, various formulae have been applied where job placements were linked with prior skills assessment and orientation, coaching, route counselling, recruitment subsidies … and (centrally, but not exclusively!) further training. This combination of these elements requires a partnership approach with various specialised service providers. The SULQ-research aims to draw lessons from the evaluation of local and regional examples of good practice, in order to disseminate them at international level. Apart from Flanders, Austria, Canada, Denmark and the USA are participating in the study. Note that Flanders, as a Region/Community within the Belgian State, has limited authority over labour market policy. In a nutshell, wage formation and labour protection are regulated on the federal level: this includes some of the funding mechanisms for labour market integration and training, as well as social security arrangements such as educational leave schemes. The Flemish authorities (and social partners) decide on active labour market policies (training provision, subsidy schemes for the promotion of HRM tools, work experience schemes etc.). This two-tier structure of competencies has three implications for the SULQ project: firstly, it is necessary to bear in mind that the margin of maneuvre for Flemish policy makers is limited; secondly, Flemish measures need to be examined in connection with institutional and policy arrangements on the federal level. Thirdly, it is obvious that Flemish policy has its own tradition and priorities: a strong 2 Introduction emphasis has always been put on redistribution of opportunities toward the most disadvantaged groups, such as the long-term unemployed, the low-literate, the disabled etc. The concept of ‘sustainable integration’, which is central in this project, also belonged to the headlines of the green paper 2000-2004 of the Flemish Minister of Employment (Landuyt, 2000). In the green paper, it was interpreted in a fourfold way: (a) security of employment (a perspective of long-term employment, if not in the same job, then at least in job opportunities along the life course of the individual; (b) work of decent quality, offering satisfaction and opportunities for personal development; (c) work that produces social inclusion in all dimensions of life (family, health, social and cultural participation etc.); (d) avoidance of displacement or any other perverse effects on other workers. In the first part of this report, we sketch the background of the Flemish labour market, the policy options and the main existing measures in this field in Flanders, including a description of their background, objectives, regulations, target group, financing and, where possible, the available evaluation material. The second part contains three case studies illustrating various approaches to upskilling, at different ‘stages’ of labour market integration. The authors are grateful to all interviewees from the three case studies: managers, advisors, workers, trainees, unionists, civil servants… We also thank the members of the steering group of the report for useful feedback and suggestions. 3 PART ONE LABOUR MARKET AND POLICY CONTEXT 5 CHAPTER 1 THE POSITION OF LOW-QUALIFIED WORKERS IN THE LABOUR MARKET AND LIFELONG LEARNING IN FLANDERS This chapter aims to provide a general overview of the labour market situation of the low-qualified in Belgium and Flanders. By doing so we want to outline the context in which programmes that facilitate sustainable labour market integration for low-qualified people operate. In a first part we describe the activity rates and unemployment rates for low-qualified workers in Belgium, i.e. the supply side of the labour market. Secondly we look at the labour market from a different angle: the skill-level and complexity of the jobs themselves, irrespective of the skill and educational level of the people active in the job: the demand side of the labour market. In the third place, we look at participation in lifelong learning (LLL), with a particular focus on differential participation by level of qualification. 1. The supply side of the labour market In recent years it became clear that the activity rate of the Belgian population is considerably lower than the average for the EU. Policy makers agreed to concentrate their efforts on increasing this activity rate of the Belgian population. Within the framework of this report we primarily focus on the low-qualified people who are active in the labour market or want to (re-)enter it. In defining this target group, the educational level has been taken as a reference, since this is the only criterion for which administrative and survey data are available. Table 1 below contains activity rates (i.e. employed and unemployed taken together) for the ‘low-educated’ in Flanders, Belgium and the EU-15 countries. The figures show a roughly similar evolution, though with a persistent arrear in Flanders (and Belgium). Table 1 Activity rates for the ‘low-educated’ in Belgium, Flanders and the EU-15 Flemish region Belgium EU-15 1999 2000 2001 2002 49.2 48.6 57.3 49.0 48.4 57.2 47.6 46.8 55.0 48.6 47.2 55.4 Source: Eurostat, NIS Labour Force Survey (calculations by Steunpunt WAV) 6 Chapter 1 The fact that Belgium has one of the lowest activity rates among EU countries is to a certain extent due to the low activity rates of the groups with the lowest educational level. The activity rates of middle and higher educated Belgians come very close to the average for the EU-15 countries. In table 2 we compare the activity rates for three different educational levels in the same regions (in 2002). Table 2 Activity rates by educational level (2002) Flemish region Belgium EU-15 Low Educational level Middle High 48.6 47.2 55.4 72.4 70.1 76.1 87.8 86.0 86.8 Source: Eurostat, NIS Labour Force Survey (calculations by Steunpunt WAV) Moreover this table clearly illustrates a so-called ‘educational gap’ between the activity rates of, on the one hand, lower educated and, on the othe hand, middle- and higher educated people. The ‘educational gap’ in Flanders was, in 2002, 1,79. This means that the proportion of people participating in the labour market is 79% higher for higher educated people than for the low educated. Compared to the EU as a whole, the activity rates of highly educated adults in Flanders score favourably, whereas those of low-educated individuals are lagging behind. The rise of the educational level of the Belgian population thus results ‘automatically’ in a higher activity rate. Nevertheless a large number of people can not be expected (due to personal and social circumstances) to reach a higher educational level as a means to increase their activity rate. Thus, if Belgian policy-makers want to increase the overall proportion of working people their efforts will need to focus primarily on the low-educated and low-qualified among the Belgian population. Another indication about the current labour market situation of the low-qualified in Belgium is given by the unemployment rates of these groups. Table 3 below presents unemployment rates for the period 1999-2002. Table 3 Flanders Belgium EU-15 Unemployment rate of low-educated people (1999 - 2002) 1999 2000 2001 2002 8.6 13.7 13.3 6.8 11.2 12.0 5.8 10.0 10.4 7.2 11.7 10.8 Source: Eurostat, NIS Labour Force Survey (calculations by Steunpunt WAV) The position of low-qualified workers in the Labour market and LLL in Flanders 7 The table suggests, first of all, that unemployment rates in Flanders are substantially lower than the EU-average. This should be interpreted carefully, as it may be due to some trade-off between unemployment and inactivity. Further, as everywhere in Europe, unemployment rates of low-educated people in Flanders and the rest of Belgium have fallen between between 1999 and 2001. Due to the economic decline in 2002 unemployment figures were on the rise again, in that year. Unemployment rates were relatively stable for all educational levels in the EU-15 countries. In Belgium and in Flanders they increased for all educational levels. 2. The demand side of the labour market In the previous section we referred to the growing proportion of high- and middle-educated people in Flanders and the fact that the activity rate of these groups is considerably higher than the one of low-educated people. In this part we focus on the demand side of the labour market: the availability of high- and low-skilled jobs. PASO Flanders (Panel Survey of Organisations) gives an insight in the amount of ‘low-qualified’, ‘experienced’, ‘trained’, ‘qualified’ and ‘complex’ work in Flanders. Table 4 below defines each of these types of work. Table 4 Level of qualification of jobs Type of work Training period Education/ experience Independent decision-making Supervision ‘Low-qualified’ ‘Experienced’ ‘Trained’ ‘Complex’ Short Relatively short Relatively long Long None Minimal Special Specific None Limited Possible Necessary Direct Direct On results On results Source: PASO Flanders Table 5 below shows the proportion of employees that are active in each of these types of jobs. The findings are somewhat surprising. On the one hand ‘knowledge work’ seems to be the prevailing standard for everybody who is active on the labour market. On the other hand, half of the employed Flemish people have a job which is neither ‘trained’, nor ‘complex’. Almost 20% of all employed people have a ‘low qualified job’: they need only a short training period, no education or experience, don’t take decisions independently in their job and are under direct supervision. 8 Table 5 Chapter 1 Proportion of employees in each level of qualification (by company size) Type of work ‘Low-qualified’ ‘Experienced’ ‘Trained’ ‘Complex’ Proportion of employees (%) Organisations with <10 employees Organisations with >10 employees 17.5 34.3 30.6 17.6 19.0 25.5 33.0 22.5 Source: PASO Flanders The figures in sections 1 and 2 allow us to draw some preliminary conclusions. First of all we see that the activity rates of middle- and highly educated people are significantly higher than those of low educated people. Also, the proportion of middle and high educated people grew steadily over the past decade. This resulted in a higher activity rate in Flanders. Second, information about the qualification level of jobs in Flanders shows that a large number (ca. 50%) of jobs in Flanders do not require a lot of experience, training or education. A number of the people who are employed in these jobs might thus be ‘over-qualified’ for their occupation. 3. Participation in continued education and training At the same time, it must be admitted that there is a problem of under-investment in adult education in Flanders; moreover, participation in continued education and training is very unequal. In 2001, the Flemish Department for Planning and Statistics (APS, 2001, chapter 25; Vanweddingen, 2002) carried out a survey about participation in lifelong learning during the previous 12 months, among 1,500 adults aged between 18 and 85. 26.6% reported that they had participated; however, the corresponding figure for university graduates was 60%, as against 4% only for those with no more than primary education. Women, elderly and economically inactive people appeared to participate less. The European Labour Force Survey reveals basically the same pattern, though with a different definition (participation during past 4 weeks) and sample (age group 25-64). As regards the gender division, however, the LFS suggests that women participate more, not less than men. And, interestingly, table 6 also reveals that unemployed persons tend to participate more than employed individuals, whereas mainly the economically inactive are strongly under-represented. Moreover, the table shows that non-nationals participate more than Belgians (probably due to language courses). Hence, inequalities in LLL are problematic mainly for the low-skilled and older workers. The position of low-qualified workers in the Labour market and LLL in Flanders Table 6 Participation of adults in education and training during the past 4 weeks, by gender, age, initial level of education, employment situation and nationality - Belgium and Regions, 2001 Average (age group 25-64) Gender Men Women Age 25-39 40-49 50-64 Level of education Low (<= lower secondary) Medium (upper secondary) High (higher education) ILO-employment status In work Unemployed Inactive Nationality Belgian Other EU Non-EU (.) 9 Belgium Brussels Region Flemish Region Walloon Region 6,0 6,9 6,7 4,2 5,9 6,0 6,2 7,6 6,6 6,9 4,6 3,9 8,4 6,0 2,8 10,0 5,9 2,8 9,3 7,0 3,5 6,3 4,3 1,6 2,2 5,8 11,3 2,9 7,5 10,5 2,4 6,3 13,2 1,8 4,5 8,0 6,8 7,2 3,7 7,0 6,7 6,7 7,8 8,7 3,7 4,7 6,2 2,9 6,3 6,0 9,9 5,6 8,5 7,9 7,3 7,8 12,3 4,6 3,7 (.) less than 6 000 individuals in absolute figures. Source: NIS Labour Force Survey (table produced by Steunpunt WAV, 2002) 4. Conclusion All in all, the analysis in sections 1 and 2 suggests that the imbalance between supply and demand of high- and low-educated workers is not very large: a substantial number of low-level jobs are available, whereas the number of low-educated job seekers is rather limited, due to low labour market participation rates. However, this does not exclude the existence of matching problems within educational levels. Moreover, if the low activity rate of low-educated workers is to be considered as a form of hidden unemployment (e.g. through early retirement or through ‘discouraged worker effects’ - mainly among women) the real problem may be much more serious than the figures suggest. We have more accurate information about unequal participation in lifelong learning: there is strong evidence about a cumulative disadvantage of low-educated adults, who are considerably under-represented in adult education. The same holds, to a lesser extent, for older workers and economically inactive adults. 11 CHAPTER 2 THE UNDERLYING POLICY PERSPECTIVE OF THE FLEMISH GOVERNMENT AND SOCIAL PARTNERS All stakeholders in Flemish policy are aware of the challenge of the knowledge-based society. In the ‘Pact of Vilvoorde’, concluded in 2001 between the government, the social partners and representatives of the civil society, all parties have agreed on a set of ‘21 objectives for the 21st century’. The achievement of the learning society is listed in this pact as the first objective: by 2010, 10% of the population aged 25-64 should participate in adult education. The 2nd objective stipulates that overall functional literacy rate (including ICT literacy) must rise to 75%; inequalities must be reduced in all levels of LLL and access to further education must be guaranteed to all. Without elaborating on the overall policy framework relating to LLL, we want to sketch the headlines of some specific work-related strategies deployed by the Flemish government and social partners for low-skilled workers and job seekers. 1. The Flemish Government: the Job Rotation Plan (Wisselbanenplan) and the Flemish Action Plan for Lifelong Learning 1.1 Job Rotation Plan (Wisselbanenplan) At first sight the Flemish labour market has for some time been dominated by a strange paradox: many job seekers can find no work, while many employers can find no employees. A second look shows us that this situation cannot really be called paradoxical: it is mostly the unskilled that have difficulty in finding work, and there are too few skilled workers to employ, though the latter in turn often occupy jobs below their level of qualification. In addition there is also spatial segmentation, which hampers mobility. In Summer 2000, in order to remedy this situation, the Flemish Government approved the so-called Job Rotation Plan. The policy paper of the Minister of Employment setting out the priorities for 2001-2002, read as follows: “The Job Rotation Plan aims to support companies that offer employees promotion via ‘mobility training’ and fill resulting vacancies with jobseekers. A job rotation is an operation involving an exchange of employees via single- or dual-track training: 12 Chapter 2 - the incumbent employee is trained up to the level of the job appropriate to his/her abilities; - the inserted job seeker is trained in the workplace for the new job that has become vacant”. 1 In fact the Job Rotation Plan does not exist as an autonomous scheme with its own field of application, criteria of recognition and funding conditions. It is as it were a “multiple choice” menu, composed of existing measures, from which an employer, within the limits of what is cumulatively possible2 and in accordance with the conditions of each measure, chooses his own elements. Sector consultants have the task of promoting and advising on the available instruments with companies. Indeed, through this plan individual company training (Individuele Beroepsopleiding in Ondernemingen -IBO), the insertion department (invoegafdeling), the leverage grants (hefboomkredieten), VESOC action plans (VESOC = Flemish Economic and Social Consultative Committee), training vouchers (opleidingscheques) for companies: measures which up to now had existed alongside each other, or new plans designed to be autonomous, were for the first time interrelated and from then on implemented or applied slightly differently. To this end the funding rules of some of those measures were revised. On the one hand there are measures that can be used for incumbent employees; on the other hand there are measures applicable to newly inserted employees. The instruments for the incumbent employee who moves on and so makes way for the inserted employee are mainly training instruments: the Flemish leverage grants - possibly combined with the national time credit (tijdskrediet) -; the training vouchers for which the company applies on behalf of its employees; the leverage grants for those offering training and career guidance; as well as training and guidance vouchers (opleidings- en begeleidingscheques) for individual employees. The following work experience and training instruments can certainly be used for the inserted job seeker himself/herself: individual company training (IBO), insertion training, insertion departments, insertion interim, workplace learning centres. Insertion must not be the sole business of the job seeker: the workplace and organisation of work must be prepared for his/her arrival, and the integration must be sustainable. The VESOC action plans for diversity and proportional work participation (see below) can play an important part in this organisational process. 1.2 Flemish Action Plan for Lifelong Learning The Flemish action plan for lifelong learning, adopted on 7th July 2000, consists of five broad items. Firstly, the Government commits itself to guaranteeing sufficient starting qualifications 1 2 Landuyt R., Flemish Minister of Employment and Tourism, Beleidsbrief Werkgelegenheid, beleidsprioriteiten 2001-2002, Flemish Parliament, document 904 (2001-2002) - no. 1, session 2001-2002, 5 November 2001 (pp. 39-40). Not so much between subsidies for the employee in situ and the insertion job seeker, but between the various possible subsidies for each of the parties separately. The underlying policy perspective of the flemish government and social partners 13 through initial education. This aims at putting school leavers in an adequate competitive position when entering the labour market for the first time. Secondly, the action plan aims at making information about permanent training and education more accessible, mainly through the creation of an interdepartmental body for the co-ordination of all provision and dissemination of complete information about all courses on offer. Thirdly, permanent training and education should be made more accessible. Measures such as the leverage credits (hefboomkredieten), training vouchers (opleidingscheques) and the training credit (opleidingskrediet) are meant to encourage participation in LLL. In the fourth place, measures aimed at providing ICT-skills for everyone should be worked out. Finally, the action plan also pays attention to the accreditation of prior learning (APEL). In what follows, we focus on two recent achievements that are particularly relevant for low-qualified workers: the Strategic Literacy Plan and the Certificate of Occupational Competences based on experiential learning. 1.2.1 Strategic Literacy Plan Following continuous pressure from the social sector, the Flemish government has recently elaborated a green paper on objectives (Doelstellingennota) for a Strategic Literacy Plan (Strategisch Plan Geletterdheid). The paper acknowledges the rather polarized distribution of skills across the population, with a substantial share of low-literate adults (15-18%). Low literacy appears to affect not only one’s work opportunities and income, but also one’s behaviour as a citizen (with low-literate persons showing less interest in politics or even displaying anti-political attitudes) and further participation in learning activities. On the other hand, basic education for adults currently reaches out to barely 0,65% of the adult population, mainly through language courses for (new) immigrants. The paper then lists 10 key objectives for the Strategic Plan. A quantitative target is set: by 2010, 72% of the population should have reached ‘level 2’ on the literacy scale.3 It is worthwhile to look more closely at the link between these objectives and upskilling in the context of the labour market. The Flemish public employment service VDAB will introduce a literacy screening test for all job seekers embarking on an integration pathway. Employers, trade unions and sectoral funds will be mobilized to invest in work-related literacy courses as well as incentives for workers to participate. ‘Dual tracks’ combining literacy and job-related training will be developed. Special attention will also be devoted to the accessibility of ICT courses and the use of ICT in literacy courses. Note, however, that the proper Action Plan still needs to be implemented: all the above just concerns the set of objectives. 3 Level 2 is generally agreed as the minimum level of functional literacy in advanced knowledge societies. 14 Chapter 2 1.2.2 Certificate of Occupational Competences In April 2004, the Flemish Parliament has adopted a decree which outlines the accreditation of prior learning (APEL). Competences gained through formal or informal vocational training, but also through experience from past jobs, social or even everyday life can be officially accredited. This should allow people to obtain a certificate of competence for a given occupation without actually holding the proper diploma. The advantages are numerous: social promotion according to seniority can be achieved, the skills of unqualified school leavers can be reassessed, unemployed persons can complement their curriculum vitae and labour market entrants can more clearly state their abilities. The procedure through which one can obtain official accreditation is open to everyone. The Flemish Government has appointed the Flemish Social and Economic Council (SERV) to draw up occupational profiles consisting of a detailed job description, which may then be used in deciding whether to recognize prior learning for a certain occupation. Persons looking for accreditation will first have to provide a list of all their acquired competences. Secondly, a commission will evaluate these competences through exams and then grant (or refuse) the recognition. In the latter case, the commission will inform each applicant which competence(s) he or she lacks. That opens up the opportunity for the applicant to reapply after acquiring those missing competences. 2. The social partners: action plans on diversity policy For a number of years so-called action plans have been agreed between the social partners and the government in the Flemish Economic and Social Consultative Committee (VESOC). Using subsidised collaborative agreements between government and companies, the committee establishes methodically and systematically the causes of the under-representation of certain disadvantaged groups in the Flemish labour market. The earliest plans related to the inequality of opportunity experienced by immigrants (1999-2000) and women (2000). Diagnosis and remedy were supported by the Flemish Government in order to achieve a positive policy of action within companies. Via subsidies for preparation and implementation costs,4 which go hand in hand with a plan for diversity and proportional work participation, the Flemish government cofinances each approved dossier for up to 2/3 of the expenses incurred in relation to the action plan, up to a maximum of €10.000. Companies, (public) institutions and now also local authorities are eligible; each applicant can be funded only once. The intention is to develop an integrated diversity policy, in which the objective is to bring the employment rate of various disadvantaged groups (women, ethnic minorities, “older” employees, disabled persons, those with reduced or limited ability to work, the unskilled) to the same level as the average for the whole Flemish population. 4 The subsidies ar designed to take preparatory steps for the integration of disadvantaged groups in the labour process - they are not an employment subsidy. The underlying policy perspective of the flemish government and social partners 15 One route towards achieving this, according to the VESOC agreement for 2001-2002, consists in triggering greater mobility in the internal labour market of companies. This brings us almost automatically to the job rotation plan. The successive “VESOC action plans on diversity and proportional participation in work”, giving support to companies that that draw up and implement such plans, were continued in 2003 and 2004. The plans aim at the removal of all thresholds impeding the vertical and horizontal mobility of disadvantaged groups5 in the labour market. Projects run for between 6 and 24 months and may comprise such measures as: − training programmes focused on the horizontal or vertical mobility of members of disadvantaged groups within the organisation; − coaching and internal guidance for new staff from the disadvantaged groups; − training sessions or programmes on intercultural communication, managing differences; − supervised placements and work experience places for members of disadvantaged groups. Vertical mobility means: access to and mobility or promotion within the employing organisation. Horizontal mobility is the opportunity to operate on the basis of one’s qualifications in any department of the employing organisation, without being confronted with any form of direct or indirect discrimination, regardless of (ethnic) origin, gender, (religious) belief, handicap, age or sexual orientation. The diversity plan must formulate concrete objectives (numbers or percentages) for intake, mobility or training to prevent premature exodus. In organisations with more than 50 employees the diversity plan must be supervised by an internal working party (board or management, line managers, trade unions). The participating employing organisations must undertake to continue the diversification policy even after the period of subsidy. Over 800 plans (including best practice) have been submitted so far. For 2004, the Flemish government has provided a budget of €2.250.000, for a total of 225 new plans. 5 Categories of persons whose employment rate (of those in working age) is lower than the average for the whole Flemish working population. 17 CHAPTER 3 SPECIFIC INSTRUMENTS FOR UPSKILLING LINKED TO THE INTEGRATION OF JOB SEEKERS 1. Individual company training 1.1 What? Sometimes vacancies in companies are not filled because the right candidate is not immediately found, often because job seekers lack a degree of knowledge or experience. If the Flemish Service for Employment and Vocational training (VDAB) cannot help via its system of collective training programmes for job seekers (for example because of the lack of demand or because advanced equipment or know-how is required), it can offer a contract of individual company training (individuele beroepsopleiding in onderneming = IBO) between the job seeker, the employment service and an employer. The employer then imparts the necessary knowledge and experience through a training programme and sessions in its organisation, with immediate involvement in the labour and production process. The follow-up to the work integration is ensured through a training programme, a guidance plan, and fixed supervisor and regular site visits by the VDAB. 1.2 For what employers? The VDAB can organise an individual company training course with the following employers: − companies and non-profit associations (in the widest possible sense, not precisely defined; − government services. 1.3 For what job seekers? All unemployed job seekers, including those not receiving benefit and eligible for social assistance. 1.4 Concrete operation The employer makes an application to the VDAB. The sub-regional employment service in the region of the company’s seat decides on the commencement, continuation or termination of the course. 18 Chapter 3 Before implementation of the training both the employer and the job seeker are informed of their rights and responsibilities and a contract is drawn up between the VDAB, the job seeker and the employer. The training is provided according to a training schedule drawn up before signature of the contract and known to all the parties involved. For the duration of the training there will be a dedicated supervisor in the company, named in the contract (minors receive at least 16 hours’ supervision). For this purpose the supervisor receives free training from the VDAB (additional consultants were recruited in 2000). The trainee can always turn to him in the event of problems in the workplace. The VDAB makes monthly site visits and conducts a concluding interview. Normally the training lasts a minimum of 1 month and a maximum of 6 months. Where there are compelling pedagogical reasons the duration of IBO may, on the recommendation of the sub-regional employment committee, be set at a maximum of 12 months for an unskilled, long-term unemployed person. Job seekers who follow an IBO with an employer, receives, in addition to his replacement income a bonus for productive work carried out. The bonus is in the first instance payable by the VDAB, but is subsequently invoiced to the employer (see below). The amount of this productivity bonus is expressed as a percentage of the difference between the normal wage and the replacement income to which the job seeker is entitled. The replacement income is either the unemployment benefit, the social assistance benefit or any other social security payment to which the job seeker is entitled. If the job seeker has no such replacement income, he/she receives a fixed monthly ‘compensation allowance’ from the VDAB. The employer does not pay wages to the job seeker in IBO (who is at that point not yet a member of staff). The job seeker does, however, receive a productivity bonus from the VDAB. The VDAB then invoices the employer. In certain cases the employer’s training invoice is reduced, since the employer may obtain a guidance bonus of €1 per hour of training from the VDAB, if he trains job seekers who have not successfully completed upper secondary education or the seventh year of vocational education. The employer gives a number of undertakings: − help with transport costs; − insurance against civil liability of the job seeker (damage to company, damage to third parties); − insurance against work accidents; − compliance with specific industrial legislation; − employment contract of indefinite duration after completion of training. The employer undertakes to employ the job seeker immediately after completion of the training with an unlimited employment contract. This contract may be terminated by the employer at the earliest after a period has elapsed equivalent to the duration of the training, except where there is a compelling reason. Specific instruments for upskilling linked to the integration of job seekers 19 1.5 Evaluation Between 1997 and 2003 a marked rise was perceptible in the numbers in IBO: from less than 3,000 to 10,000. According to available figures six months after completing an IBO 86.3% of those involved have a full-time job and 2.6% part-time work (VRIND, 2002). A total of 0.9% of job seekers pursue further training after six months have passed. Of the companies where an IBO programme operates, 92.7% are small or medium-sized enterprises. Nicaise et al. (1995) evaluated the net effects of different kinds of training courses for job seekers in the period 1989-1990. Already at that time the IBO was by far the best performer, with an employment rate of 78%, 12 months after completion (including dropouts): that is, twice as high as for the control group. A new survey among the same group, 10 years after completion, shows an employment level of 95% (Rubbrecht & Nicaise, 2002). Set against this is the fact that the IBO system is also the most selective (2/3 men, 45% young adults, 3/4 short-term unemployed, 40% skilled workers, 95% Belgian nationals). In recent years attempts have been made to channel more vulnerable groups towards IBO: especially the long-term unemployed and unqualified school leavers. At any rate the IBO scheme generally shows reasonable employment results. Of course the success of the measure must be partly attributed to its legal framework. In the past the VDAB administration, the legislature and/or the judiciary have strongly condemned the following unfair practices in IBO: − the employer terminates the training contract prematurely; − the employer fails to offer a contract of employment for an indefinite period after the training course; − the training is followed by a contract of employment of indefinite duration, but that contract is terminated prematurely, i.e. before the period of work security (= at least as long as the duration of the preceding training) has elapsed. That probably also helps to influence the high level of employment. 2. Insertion training (inschuifopleiding) Insertion training is in fact exactly the same as individual company training (see above), with the difference that it is organised in the context of a job rotation plan. Through on-the-job insertion training the job seeker is trained in the job that has fallen vacant when an employee has moved on. There is also a difference from IBO in the matter of regulation: the employer may terminate the contract of employment prematurely, without incurring a sanction, if the original employee wishes to return to his old position. Such an occurrence will not lead to a general ban on insertion training in the company for 3 years. 20 Chapter 3 3. Insertion department (invoegafdeling) 3.1 What? Since 1 July 2000 it has been possible in Flanders to set up so-called insertion departments in companies that have the legal status of a trading company or civil registered trading company. Economic joint ventures between two or more such companies may also do so if they wish. It must, though, relate to the development of new activities. As with insertion companies, the insertion departments must employ unskilled, long-term job seekers who have been involved in and channelled into fixed-term professional operations. The Flemish Government pays temporary and gradually diminishing wage subsidies for such employees. 3.2 For what employers? Since 2001 the aforementioned companies have also been able to set up insertion departments in the spirit of the job rotation plan. In this context Flemish legislation on the ‘multiple value economy’ (meerwaardeneconomie) speaks of “an activity created by splitting of tasks, with a number of sub-tasks being regrouped and located in the new department”. Companies wishing to expand an insertion department must sign a charter committing them to the multiple value economy. Through this charter the employer undertakes to: − make maximum efforts to recruit disadvantaged groups and offer them equal opportunities in the company; − create sustainable employment, with attention to fair terms of employment, working conditions, work content and labour relations; − strive for an optimum individual and collective development via maximum workers’ participation; − satisfy in a balanced way the interests of all stakeholders, i.e. all those involved in the company’s activities; − give priority to activities, products and production methods that protect the environment, in the short and in the long term; − strive at the same time for value added in the economic and social field. 3.3 For what job seekers? The following type of person may be recruited as an insertion employee: anyone whom the VDAB classifies, by virtue of a lack of skills or qualifications necessary for mainstream employment, as not referable for a normal job. The person must in addition (a) either have been unemployed for 1 year and have at most an upper secondary education certificate; or (b) be unemployed for 1 day and have no upper secondary education certificate. Specific instruments for upskilling linked to the integration of job seekers 21 3.4 Concrete operation The first insertion employee must be recruited within 6 months of recognition as an insertion department. Within 3 years of the signing of the recognition confirmation 3 FTE insertion staff must be employed. The total number of FTE insertion staff assigned must be employed within a period of 4 years following the commencement in employment of the first insertion employee. The Flemish Government provides temporary, diminishing wage subsidies for insertion staff. For example, the bonus for a full-time employee (in the first contingent of recruits) is 60%, 40% or 20% for the 1st, 2nd and 3rd year respectively of recognition as an insertion department. Any additional insertion staff recruited subsequently receive the wage bonus for only 2 years, at 40% and 20% respectively. 3.5 Evaluation The regulation is still recent and little known. In April 2004, 29 insertion departments were operational, of which 14 in the profit sector. The overall number of employees amounts to approximately 250. 4. ‘Learning island’ projects (Leereilanden) 4.1 What? The learning islands project was dreamed up in the 1990s under the auspices of the King Baudouin Foundation. It linked concrete, existing skills needs of companies to projects aimed at sustainable employment of a specific group of job seekers, via training and supervision. The job profile of the vacancy and the personal profile of the job seeker were matched. Originally that measure, later also called “Interface” (because of the partnership between the profit and non-profit sectors and government) had two important objectives, one short-term and one long-term. The first was to create work experience for disadvantaged groups on the work floor in all interested companies active in the normal labour market through tailor-made collective training. The second objective consisted of developing a methodology for generally encouraging the integration of the unskilled in the labour market. That methodology had been developed on a three-party axis: a project developer developed the training, supervised the instructor responsible for the technical part of the training in the company (e.g. the foreman) and found a suitable outside supervisor from among third-party specialists (e.g. for work attitude training). The Flemish authorities provided a wage subsidy for the latter. 22 Chapter 3 4.2 For what employers? Projects operated in mainstream companies (distribution, foodstuffs, catering, hotel, construction, textiles.6 4.3 For what job seekers? The unskilled (without an upper secondary education certificate) and long-term unemployed (at least 12 months), OCMW-clients, youngsters, women, disabled persons. From 2001 onwards ethnic minorities were added to the list. 4.4 Concrete operation Project developers scouted from (or through) Chambers of Commerce for vacancies in companies, since the starting point for a training project was the actually existing need for staff. Moreover, the centre of gravity of the practical organisation and coordination shifted from the King Baudouin Foundation to non-profit organisations set up under the auspices of the sub-regional employment committees. They are now each composed of a team of project developers and staff on secondment from the VDAB, headed by a coordinator. The non-profit organisations receive a grant from the Flemish Government for their operating costs and staff costs (developer(s) and coordinator, who are on the payroll of the non-profit organisation). Training projects as well as experiments on job rotation and job division are devised. The developers operate as consultants for the companies: they can develop a training programme jointly with the company, decide which job seekers are most suited to the project, look for the most appropriate external experts in the field of training and supervision, and if required execute the project themselves. They cooperate with the VDAB, the Public Centre for Social Welfare (OCMW), third-party organisations and local job centres (werkwinkels). Job seekers receive additional technical training, gain immediate work experience on the shop floor, get acquainted with the current company requirements and prevailing company culture. Supervision on the shop floor is permanent and personalised. Someone from the company itself delivers the technical component of the training (e.g. learning to work with the machinery or other equipment). In fact this measure is not stand-alone (and has never been so), and can be smoothly integrated into other legislation or sources of finance, though of course only to the extent that the conditions of other legislation are met. Such projects in fact usually operate within the framework of IBO (which also implies that participants are offered a contract of indefinite duration). 6 Vlaams Parlement, Vragen en Antwoorden, session 1997-1998, no. 6, 15 December 1997, question of 7 oktober 1997 by R. Van Cleuvenbergen, answered by the Minister of Employment. Specific instruments for upskilling linked to the integration of job seekers 23 4.5 Evaluation Projects have always remained limited in size: In the period 1998-99, between 170 and 180 workers were involved. Since then, the measure has become ‘redundant’ and is increasingly being replaced with the IBO scheme mentioned above. Rubbrecht ad Nicaise (2002) investigated the profile and careers of participants in Interface. Two years after entry 73.7% of those starting training were still at work, which is not surprising, given that they were recruited with contracts of indefinite duration. Compared with the control group of unskilled long-term unemployed the employment gain is considerable, although here too there are indications of a creaming-off effect (young people are over-represented, those unemployed for 3 years or more under-represented). 5. WEP-plus 5.1 What? In the course of 1997, based on an awareness that for people alienated from the labour market and generally unskilled - the long-term unemployed, long-term social assistance recipients - work experience, guidance and training are indispensable if they are to increase their employability, Flanders came up with the work experience plan plus (WEP+), something of a synthesis of two earlier initiatives, namely the Back-to-Work (Weer-Werk) campaign and the work experience plan. The aim of the WEP+ plan is to encourage the creation of temporary work experience places in the non-commercial sector by contributing to their financing: Flanders pays wage subsidies for target employees, if required also premiums to finance the supervision. The projects are aimed at promoting chances of progression to the mainstream labour market. In contrast to classic relief work programmes, the WEP+ scheme is not at all intended to create permanent posts for which the employer, through continuing wage subsidies can check staff costs and/or compensate for the reduced return, although in practice we find that WEP+ is still sometimes used in that improper way, as cheap labour.7 Moreover, this Flemish employment, now as in the past, meshes closely with the objectives of the national government’s Transit Employment Programmes (Doorstromingsprogramma’s) in the non-profit sector, granting reduced social security contributions and the activation of replacement incomes: to set up services to provide a supply for collective social needs that the commercial sector meets inadequately if at all. These services will therefore be manned by long-term job seekers who in the first phase become reacquainted with the work process and may possibly progress to a non-subsidised job. In concrete terms this means that the money used to fund work experience projects, derives from to converging sources of funding: Flanders and the national government. 7 The GESCO scheme for the former Back-to-work projects (out-of-school child care), which are subsidised for an indefinite period are left out of account in what follows. 24 Chapter 3 Finally, there is also a variant of WEP+ in the subsidised GESCO system, which offers employment for people who do not meet the criteria for entering the mainstream WEP+ plan programme, and is very similar to it. 5.2 For what employers? Summarised very briefly, the social profit and the non-profit sector (particularly non-profit organisations with a social, humanitarian or cultural aim), education and Flemish public services (e.g. community, regional, local authorities) are eligible for the WEP+ plan. 5.3 For what job seekers? Only those meeting one of the following conditions may be recruited as a “target group employee”: − persons who have been unemployed for a continuous period of 24 months; − persons in receipt of social assistance benefits for a continuous period of 12 months. The unskilled have priority, but certificate requirements have been scrapped. 5.4 Concrete operation The employer is entitled to a guidance bonus only if an overall guidance plan and an individual guidance plan are implemented. In applying, the employer submits an overall guidance plan, in which the pathway to integration in the mainstream labour circuit is mapped out. This plan must contain at least the following information: − a description of the job content; − a description of the working conditions; − the planned technical and attitude-based guidance of the target group employees on the shop floor; − a description of vacancy-oriented support via job application training and supervision; − the employer’s undertaking to allow the target-group employees recruited to conduct guidance and follow-up interviews with consultants from the VDAB or with external consultants designated by the VDAB, during normal working hours. Where necessary, the plan also determines agreements with the VDAB on supplementary training modules and their modalities within the framework of the work experience project and the future opportunities of the employee concerned in the labour market, conducted by the VDAB or by a recognised third party. In addition the guidance is individualised for each recruit: the employer draws up an action plan in which the tailor-made guidance of the individual target group employee is laid down. Specific instruments for upskilling linked to the integration of job seekers 25 5.5 Evaluation On a yearly basis more approximately 3,000 long-term unskilled job seekers are offered a WEP+ place, although the number of available posts is falling slightly: from 2, 560 in 1999 to 2,290 in 2003. A thorough evaluation of the employment and welfare effects (Nicaise, 2002; Rubbrecht et al., 2004) brought the following points to light: − counter to expectations, work experience leads for the majority of participants to sustainable integration: 6 years after participation more than three-quarters of those involved are at work. The net employment gain compared with the control group is large and significant, even after selection effects are discounted; − in addition work experience has long term positive effects on health, human capital, material welfare and social integration of participants; − to the extent that one can measure all costs and benefits (mainly recouping effects through increased employment opportunities after completion), the cost-benefit result is clearly positive: not only for the individual, but also for government and for the community as a whole; − still, caution must be observed in increasing the supply: the economic return of the scheme depends partly on the selection of the right target groups. In other words, the effects might be less favourable with the ‘average unskilled long-term job seeker’. 27 CHAPTER 4 SPECIFIC INSTRUMENTS FOR THE UPSKILLING OF INCUMBENT WORKERS 1. Leverage grants (Hefboomkredieten) 1.1 What? Leverage grants (Hefboomkredieten) are training and counselling subsidies specifically targeted at workers in enterprises. The intention is to bring companies to the level of a professional HRM policy and hence a balanced competence management of their staff. Subsidy is awarded on a project basis, which implies a degree of diversity in the target groups and methodologies. Nevertheless priority is given to employees from disadvantaged groups. Five types of actions can be subsidized to varying degrees, depending on the nature of the action: − training related to innovations in the company; − career advice for individual employees (upon their own request only); − supporting measures for training (competence development plans, design of instruments for the assessment of prior learning, new training systems, elimination of obstacles to participation in training); − re-organisation of work in the company (e.g. recruitment of job seekers while current employees are participating in training - see ‘insertion training’ described above); − ‘conventional’ training aimed at keeping up with evolutions in the company or in society as a whole. 1.2 For what employers? Legal entities that, in whatever way, meet the objectives described above. Organisations or enterprises funded through government grants or linked with the government through a management contract are excluded. In the case of career advice, access to the grants is restricted to firms specialized in career counseling. 28 Chapter 4 1.3 For what employees? The project must be submitted by an applicant as described above, and must focus on the needs of employees employed in companies, institutions or companies falling under the private sector, including social profit companies receiving support from the ‘social Maribel plan’.8 1.4 Concrete operation The Flemish subsidies are co-financed by the European Social Fund (objective 3, priority 4). This priority aims, in the period 2000-2006, to stimulate the adaptability of companies, their employees and job seekers through training, human resources management, the development of new forms of labour organisation, etc. Projects are selected via an open call. Only a single dossier needs to be submitted, with which one can apply for subsidy simultaneously from the ESF and for the leverage loans (single-counter system). The overall subsidy (Flemish government + ESF) varies between 27,5% and 75% and is limited to two years. The subsidy usually totals a maximum of € 250,000, even if the applicant submits various applications in the course of a single application round within this window (amount for 2003). So-called bonus points are awarded in the selection process to projects: − relating to developing methodologies at least 30% of which are aimed at disadvantaged groups. These are unskilled employees (with less than a higher secondary education certificate), people over 45 (apart from managers), invalids and non-EU ethnic minorities; − that are focused on expanding a strategic training policy; − that make use of ICT; − that are focused on promoting social dialogue relating to permanent education in the vocational field; − that are focused on companies with less than 50 employees; − that link training policy to career policy; − that originate from an applicant bound by the right to training or career guidance of employees as enshrined in a sector or company collective wage agreement. 1.5 Evaluation The effectiveness of company training for incumbent workers has hardly been evaluated in Flanders. Matheus & Bollens (2001) estimated the deadweight effect of ESF training subsidies to companies at about 50%.9 Their suggestion, to concentrate government aid on ‘supporting measures’, has been partly implemented, as we saw above. Their main conclusion, however, was that general measures to encourage company training do not offset (or may indeed reinforce) the ‘Matthew effect’ in the distribution of training: high-skilled 8 9 The ‘social Maribel’ operation involves reduced social security contributions in exchange for an equivalent increase in employment. The deadweight effect of some other measures was found to be much higher: for the ‘Vlaminvorm’ scheme, it was estimated at 80-90%. This measure has since been abolished. Specific instruments for the upskilling of incumbent workers 29 workers tend to benefit more from the public subsidies than the low-qualified. Therefore, they suggested to make government support more conditional on the level of qualification of participating workers. This second recommendation has as yet not been implemented, except that some degree of priority has been given to at-risk groups in the recent regulations relating to the leverage grants (see above). The most radical option would be to set quotas or to design measures targeted exclusively at the low-qualified. A softer approach consists in more intensive counselling measures, as the lack of awareness and information about useful training provision is probably greatest among low-qualified workers. 2. Training and guidance vouchers for employees (opleidings- en begeleidingscheques) 2.1 What? In the past it appeared that employers mainly financed training (whether or not subsidised) for the more advantaged groups among their employees. In addition, understandably, they invariably preferred company- or job-specific training at the expense of more general training. These findings also applied, to a large extent, to a recent training voucher scheme developed for companies to promote training investments (Op den Kamp et al., 2004). This is why the latest experiments have been conducted with training vouchers for employees.10 Employees can apply to the VDAB on their own initiative for training and also career guidance vouchers. The government provides half the cost in the form of a voucher, the remaining amount must be paid by the employee. “Through these cheques the Flemish Government is trying to give employees the opportunity to improve their personal development and to choose a training course suited to their interests. Henceforth, independently of his employer, an employee can go in search of a training course that suits him best”.11 2.2 For what employers? (not applicable) 2.3 For what employees? These are employees who, at the moment of application for the cheques, are employed with an employment contract, or at least work under the authority of another person, irrespective of the type of contract of employment. Nor do the duration and the employment regime matter. 10 Previously, only employers could buy training vouchers for up to € 6000/year (also with a 50% subsidy). This system is maintained, but supplemented with a new scheme for employees. 11 Press release from Flemish Government, 13 June 2003. 30 Chapter 4 2.4 Concrete operation Before placing his order, the employee applies to the VDAB for the vouchers, that is: via the service’s website, on the VDAB Service line (070 345 000) or in local job centres. The training course followed must not be wholly or mainly related to the present or future post of the employee, but must reinforce skills which to a large extent can be transferred to other companies or areas of work, so that the employee’s general employability in the labour market is directly of indirectly improved. By ‘guidance’ we mean career guidance and competence development and assessment: i.e. all advices and services aimed at guiding an employee in the further development of his career and/or participation in a pathway in which the assessment of competences is central. After the training and/or guidance the provider supplies the employee with a nominal certificate, showing that he has followed the course concerned. In this context the training provider must be recognised. In this way an employee can, for example, pay for a special service provision of career guidance for employees with training vouchers. Players offering such services in the market, may themselves receive subsidies via the leverage grants for career advice (see above). The training/guidance must take place outside normal working hours or during periods of legal suspension of the contract of employment (e.g. paid educational leave, social advancement, or time credit in order to follow a course). An employee may purchase a maximum amount of €250 per year from the publisher Accor. The cheques have a value of €5, 10 or 25. The Flemish Community provides a contribution of 50 % to the total amount of the vouchers, the rest is paid by the employee when purchasing the vouchers. However the Minister of Employment may, after advice from the Social and Economic Council for Flanders (SERV), allow reductions of or exemptions from the employee’s half for well-defined target groups or training or guidance courses. 2.5 Evaluation The scheme has only just begun operating. It is therefore too early for evaluation. However, the first statistics indicate an unexpected success: in the first four months, almost 100.000 vouchers have been ordered -of which 15% were denied because the orders did not meet the legal regulations. However, no more than 13% of the vouchers have been used by individuals with less than an upper secondary education degree. 3. Sector covenants 3.1 What? Belgium has a tradition of two-annual collective agreements between the two sides of industry, at the interprofessional, sectoral and enterprise level. Moreover, separate parallel negotiations are held between the Flemish social partners on issues that have been devolved to the Regions. Specific instruments for the upskilling of incumbent workers 31 Sectoral agreements, both on the federal and the Flemish level, are most relevant in the field of education and training. Sectoral agreements on the federal level have been grafted on the operation of sectoral funds, which are mainly devoted to training, and on the commitment to raise expenditure on LLL from 1.2 to 1.9% of the wage bill between 1998 and 2004. For the period 2004-2010, the ambition has been set even higher: by 2010, one in every two workers should be participating in training. In this context, most branches do have experience with training provision for at-risk groups (youngsters in part-time or full-time vocational education, training for the unemployed, and. They have set up their own yearly monitoring system (which, admittedly, suffers from a lack of transparency). Negotiations on the Flemish level include the Flemish Government (Department of Employment as well as Education) and the public employment service (VDAB). In the context of the tight labour market in 2001, for example, agreements dealt mainly with education, lifelong learning and diversity - including the upskilling and integration of vulnerable groups. In 2003, the issue of (geographic) mobility of workers was added to the agenda. For each of these issues, commitments of the social partners can be matched with commitments of the Government. 3.2 For which employers? Sectoral covenants provide a framework that commits all employers of a branch on some points (e.g. compliance with the code of conduct); however, the general targets must not be met within each enterprise separately. Employers are expected to apply for support and to implement plans on the enterprise level on a voluntary basis. Not only commercial employers are involved in these sector covenants. Private non-profit employers as well as local governments are equally targeted. 3.3 For which employees/job seekers? The covenants cover job seekers as well as incumbent workers. Priority groups for the diversity plans include migrants and disabled persons. As for education and LLL, any disadvantaged group can be targeted at. 3.4 Concrete operation The government finances the recruitment of sectoral consultants, who assist the social partners in the implementation of their sectoral plans and the preparation of dossiers for the engagement of the sectoral funds, provided that the sectoral plans are conform with a common grid and include concrete, quantitative targets. The firms belonging to the sector must adhere to a code of conduct regarding non-discrimination. 32 Chapter 4 3.5 Evaluation By mid 2004, 23 branches have concluded sector covenants, while negotiations are ongoing in 3 other branches. Some potentially important sectors are as yet ‘missing’: the cleaning industry, the financial sector, the inland ports and the security services. 79 sectoral consultants have been engaged, who liaise among themselves in three networks (education, LLL, and diversity). Examples of targets include: the number of enterprise diversity plans to be concluded within the next year; the share of migrants in training courses set up by the sector; a yearly ‘diversity prize’ for companies, etc. Quotas relating to the employment of disadvantaged groups have not been set as yet. It is too early for an assessment of outcomes. However, the negotiation of HRM strategies has obviously added a new dimension to the social dialogue. This does not go without any difficulties. Insiders complain about the poor commitment of Flemish ministers - other than the Ministers of Employment and Education. Also, covenants involving financing from the sectoral funds have raised suspicion on the part of the European Commission (DG Competition), which regards this funding as ‘subsidies’. 33 PART TWO CASE STUDIES 35 After a discussion of the ‘upskilling potential’ of the Flemish measures in part one of this study, we will take a closer look in this section at three existing initiatives, determining their role in the transitional labour market. The three cases selected for this study are: − Jobcoach Network in Ghent − Learn & Work Centre ‘Care & Cleaning’ and the ‘Logistic Assistant’ training course for hospitals; both of which are under the umbrella of the NGO Vitamin-W − ‘Upskilling of Team leaders’ at Harol, a manufacturer of roller blinds and sun blinds, in co-operation with the local STC (Sub-regional Employment Committee). Below, we will briefly clarify why each case was included in this case study survey and how they relate to each other. The three cases are subsequently elaborated. The focus of our research clearly lies on increasing the competences of low-qualified employees, enhancing the employability they need for sustained employment. This entails that the efforts will centre on raising their competences in a situation of paid work. Or, in terms of transitional labour market policy, during or after their actual (re)integration into the labour market. From this perspective, most of the attention will indeed be directed to the transition from inactivity to paid labour. Through a raft of supportive and compulsive measures, aimed both at the demand side and the supply side of the labour market, efforts are made to let as many people as possible undergo the transition. Referring to a broader frame of reference, we use the concept of a transitional labour market, in which we can roughly distinguish five sorts of transition: − between work and unemployment or illness (in either direction); − between training and work; − from work to work: the transition from full-time to part-time or the other way round, between jobs and between employers; − between paid work and (unpaid) leisure time or being a carer; − between paid work and retirement. Individuals find themselves in a different position vis-à-vis the labour market depending on the stage of life they are in. Moreover, they make a personal and considered choice for altering combinations of paid work, care, leisure time and education. Forced transitions (e.g. from work to unemployment or illness) should evidently be prevented as much as possible. The prime objective at this point is not to make as many people as possible undergo the transition to paid work, but rather to let them make a ‘different’ and ‘better’ choice, congruent with their needs and wishes in the actual stage of life they are in (Muffels, 2001). Upskilling is one instrument to encourage desirable transitions (from unstable or unsatisfying work to better work, from unemployment to work) and to prevent negative transitions. The three cases discussed in this report can be positioned on an axis within the model. They relate to the first three types of transition (unemployment-work; training-work; work-work); − The Learn & Work Centre ‘Care & Cleaning’ of Vitamin-W operates during the transition from unemployment to work in combination with training. It wants people to acquire the 36 − − competences required to find a permanent job. For that purpose, people are given the chance to learn through and from the work they will carry out later, in other words: a blend of working and learning. Jobcoach Network steps in after people enter employment. It supports people who already made the transition from unemployment to paid work, in order to give them the tools to keep their new post. The activities developed at the company Harol were aimed at employees who had been in the same job for a longer period of time. They were intended to help a group of employees acquire the necessary knowledge to transfer to a different function, or at least to keep pace with the technological and organisational developments in the company which increases their employability and reduces their risk of unemployment. 37 CHAPTER 5 VITAMIN W - LEARN & WORK CENTRE ‘CARE & CLEANING’ AND ‘LOGISTIC ASSISTANT’ TRAINING COURSES 1. Introduction In the first case study, we zoom in on two existing projects for the low-qualified, both under the umbrella of the Antwerp NGO Vitamin-W: the Learn & Work Centre ‘Care & Cleaning’ and the ‘Logistic Assistant’ training courses for hospitals and homes for the elderly. Vitamin-W is a private non-profit organisation within which various projects are developed with the objective of offering sustainable employment to as many people as possible from the target group. The target group consists of those who have the least opportunities to obtain this sustainable employment: the low-qualified and long-term unemployed. What makes this case interesting in this context of the ‘transitional labour market’ is that the traditional distinction between a ‘training stage’ prior to a (re-)integration phase in the labour market is abandoned. In the Learn & Work centre, participants undergo a training course which largely takes place on the shop floor. What’s more, they are remunerated for following the course. In that way, the threshold between a period of investment in job training on the one hand and picking the rewards at a later stage on the other hand is considerably lowered, which may benefit the transition to the labour market. A similar combination of learning and ‘learning through work’ is contained in the training methodology of the ‘Logistic assistant’ training courses. 2. Vitamin-W: pioneer in social entrepreneurship 2.1 Origins and operation In the late 80s, a few small training and employment initiatives from the social profit sector in Antwerp linked up under the NGO Vitamin-W. On the one hand, they obtained resources of the ESF (European Social Fund), on the other hand, Vitamin-W acquired a considerable number of employees with a subsidised status. Vitamin-W has currently grown into a fairly large company with approximately 100 staff and approximately 90 ’client-workers’ on the pay roll. At the moment, Vitamin-W is involved a multitude of partnership projects, some of which grew into independent organisations (for instance, the recycling shops) or were incorporated in 38 Chapter 5 other organisations (like the Wolkammerij). Various projects deal with the sustainable employment of (low-qualified) jobseekers: − werkwijzers: low-threshold agencies offering individual guidance to jobseekers; − education and training; − work experience projects, like the learn & work centres; − social workshops: offering real employment to people from the weakest target groups in companies managed by Vitamin-W; − advisory services with regard to HR-management for companies employing people from the target group; − help to companies with the selection and recruitment of low-qualified employees; − tailor-made training courses for individual companies, etc. The people interviewed emphasise the importance of scale economies and the co-operation with other actors involved. This is not only important for the joint development of a methodology and vision, but also for the overall practical organisation and general financing. Below, we will only discuss the ‘Logistic Assistant’ training courses and the ‘Learn & Work centre for Care and Cleaning’. This centre is one of the four Learn & Work centres to originate from sustained collaboration in four sectors. The first training course came about through a combination of events, including a need expressed by the care sector to alleviate the work of nurses and carers. Partly for this reason, the ‘Logistic Assistant’ training course was conceived to take over some of the work of this group. 2.2 Financing Vitamin-W depends on various sources to finance its operation. A first structural form of financing is the large contingent of GESCO-statutes (GESCO = a job scheme for the social profit sector) available to recruit people. A second financial source is formed by the structural funds, of which the ESF is the most important. Co-financing alongside these ESF-resources comes from VDAB, the City of Antwerp and the Province of Antwerp. ‘Fokus’, the career guidance project, forms an exception, as it falls under ‘objective 4’ of the Flemish employment policy. These steady resources are complemented by support from the EU, thus reducing the need for cofinancing by third parties. The primarily project-based financing of various projects under Vitamin-W has a few important drawbacks. New, innovative projects are set up with project subsidies, methodologies are developed, implemented and evaluated ... until the project subsidy is discontinued. In a number of cases, the acquired expertise and know-how are lost and can therefore not adequately be extended. One possible route to counteract these problems in the future is to think about developing joint ventures with businesses. Vit. W - Learn & Work centre ‘Care & Cleaning’ & ‘Logistic Assist.’ Train. courses 39 2.3 Vitamin-W as a learning organisation Those working on developing methodology, concepts and learning methods within the organisation also emphasise that Vitamin-W (and its projects) must keep learning if it wants to reach its objectives. Three elements are important in this respect: − the organisation must have a learning policy. The organisation and instructors working there must continually question and develop their own learning. − A great investment is made in training their staff. These training and learning processes are underpinned by learning theories, for example those of Kolb, De Block, Feuerstein etc. − People should be involved in a workplace that stimulates learning. For example, methods are developed to screen placements or workshops for their on-the-job learning potential. 3. Target group The target group of Vitamin-W is broadly conceived: the low-qualified and the long-term unemployed. Part of this group consists of migrants, previously second and third generation but currently a growing number of ‘newcomers’. The majority are between 30 and 40 years old. The ‘Logistic Assistant’ course forms an exception, because it is mostly attended by women, only a minority of which are migrants. For the sake of diversity, the groups are made as varied as possible. The channelling towards both projects occurs along different routes. For the LWC, the ‘Werkwijzers’ project of Vitamin-W was originally meant to bring in the majority of participants. In reality, it only brought in a minority, since ‘Werkwijzers’ deals with a difficult target group. Other channels into the centres are: − VDAB and the job centres (werkwinkels): primarily people who require a more intensive guidance than the VDAB can offer are referred to Vitamin-W; − social centres of the local OCMW’s (Openbaar Centrum voor Maatschappelijk Welzijn Social Service Departments); − Local Employment Agencies; − mouth-to-mouth publicity is one of the main channels for participants to find Vitamin-W. On a positive note, these participants are very motivated. On the other hand, this publicity may cause people to be referred for the wrong reasons. Specifically for the ‘Logistic Assistant’ training course, the channelling mainly takes place through the VDAB. Jointly with the VDAB, the promoters of the training course organise an open day on ‘social profit’. Together with the mouth-to-mouth publicity and coming in through an introductory course, it always generates great interest in the training course. Since the number of people interested in both projects always exceeds the number of available places and in order to safeguard the quality of the courses, the participants are hand-picked. The most important selection criterion is their motivation. For the ‘Logistic Assistant’ training course, the VDAB carries out a pre-screening on the basis of the minimum qualifications required, which is lower secondary education. 40 Chapter 5 4. Obstacles to sustainable employment People from the target group of Vitamin-W often struggle with recognisable problems that may constitute an obstacle for their employment. Problems that may inhibit their recruitment are: − respectively defective communication skills: a poor knowledge of Dutch, insufficient job application skills, problems with basic skills (reading, writing, talking). Even for low-qualified functions, the requirements are continually raised with respect to communication (in function of the requirement to deliver good service). This is particularly significant for the logistic assistants; − social skills; − work attitudes: insight into and respect for the employer’s expectations with regard to arriving at work on time, notify in the case of absence and the like; − complex problem issues, such as the social background, cultural habits and the previous history of the jobseekers; − perseverance: many people had to face up repeatedly to their failures, which means that perseverance has become crucial. Also on the employer’s side, a number of factors may lead to low-qualified jobseekers being less likely to be recruited: − prejudices towards the target group; − racism: a negative attitude to migrants; − excess specifications, causing the low-qualified to miss out; − an unwillingness to invest in low-qualified (and hence replaceable) employees. On balance, the main environmental factor is the general economic cycle: when there is an ample supply of workers in the labour market, the low-qualified tend to have the fewest chances. In the Learn & Work Centre as well as in the ‘Logistic Assistant’ training course, the personal ‘obstacles’ are tackled first. Apart from so-called ‘soft skills’ (social and communication skills), both initiatives also explicitly tackle technical and job-specific competences. Furthermore, Vitamin-W also establishes contacts with employers or creates tailor-made specific (social) workplaces. On the one hand, the obstacles that exist on the employer’s side are tackled and on the other hand, the scheme tries to provide an alternative and adjusted work environment. 5. Principles and methodology of upskilling 5.1 Competence-based thinking Competence-based thinking is pivotal to the operation of Vitamin-W and hence also to the LWC and the ‘Logistic Assistant’ training course. People who flow in are always screened to establish the extent of their basic, key and technical competences. At the other end of the route followed by the participants are the ‘outflow profiles’. These (competence) profiles were drawn up by Vit. W - Learn & Work centre ‘Care & Cleaning’ & ‘Logistic Assist.’ Train. courses 41 Vitamin-W for each of the training courses on offer. They are the objective aimed for during the training. The outflow profile defines the competences required in order to flow into the regular labour market after participating in a LWC or another course. 5.2 The combination of learning and work Another crucial element in the approach, both in the LWC as in the ‘Logistic Assistant’ training course, is the combination of work and training. In the LWC, the trainees receive a normal work contract for one year in the context of the WEP+ (Work Experience Plus) programme (see Part One, Chapter 3, section 5). On the one hand, the worker status reinforces the income security, the self-esteem and the motivation of those concerned; on the other hand, the sustainable integration into the labour market is boosted because participants already had real work experience and a chance to prove themselves. 5.3 Learning contents, phasing and methodology After the initial competence screening, an individual learning route can be drawn up. This learning route consists (in the LWC Care and Cleaning) of practical work experience as well as various educational elements. For the time being, it does not really have a modular structure, although this would deal with potential objections to the long duration of the course (12 months). However, there are a few distinct stages: during the first three months, the participants get to know the job(s) they are being trained for and they learn the pre-conditions: mobility, contractual obligations, social skills, etc. Gradually (and depending on the course member), specific skills are taught between the 4th and the 9th month: − driving licence; − Dutch as a second language: a language course for immigrants (newcomers); − ICT-skills; − safety; − cleaning techniques; − Interview training, etc. The formal training is alternated with placements in small groups under the supervision of a team leader, for the maintenance of rooms, companies, etc. The placements are usually half-time. During the 7th to 9th month, individual placements are organised, during which every participant learns to work without supervision. In the last three months, the training is supplemented with intensive interview training. After the training, some coaching (on-the-job) is organised for a proportion of the target group, until one year after recruitment. The ‘Logistic Assistant’ training course also combines work experience (including 2 placements) with various specific modules. Topics like ‘lifting techniques’ and ‘hygiene’ are very important in this context, alongside the subjects that are also addressed in the LWC. ‘Work 42 Chapter 5 attitudes’ implicitly feature throughout the courses. The instructors try to teach these attitudes through the work experience and the accompanying guidance. The Learn & Work Centre and the ‘Logistic Assistant’ training courses use a wide-ranging methodology. The teaching resources and text books are developed by the instructors and by those developing the methodology. Sometimes, lessons are held in classes, but the instructors mostly try to work interactively and actively. After all, many participants have little experience with traditional methods of learning in class, requiring the instructors to be creative. 6. Results It is difficult to make an exact evaluation of the results, both of the LWC and of the ‘Logistic Assistant’ training course. The effectiveness of both initiatives is after all influenced by the general economic situation, policy measures, the terms of comparison used, etc. The LWC usually manages a flow-through of 50% to sustainable work, which can be considered a success in view of its target group. Some trainees find a permanent job before the end of the course. It is nevertheless striking that trainers do not evaluate the quality of their work by the percentage of participants that manages to find work. For the ‘Logistic Assistant’ course, it is estimated that approximately 95% of all participants find work after the course. This high success rate should nevertheless be held against the background of a ‘relatively strict’ participant selection at the start of the training course. Halfway through the course, an interim evaluation takes place because it is still possible at that stage to make adjustments. The adjustment has also a positive influence on the flow-through figures to paid work. 7. Conclusion The two activities selected within Vitamin-W relate to combined training and employment projects for job seekers faced with multiple obstacles in the access to work. The main lessons to be drawn from this case study can be summarised as follows: even temporary employment can lead to sustainable labour market integration, provided that training and work placements are designed in a mutually reinforcing way. The work contract strengthens the motivation to learn and the opportunities for work-based learning, while the work placements also provide the necessary experience demanded by many employers. At the same time, the training is carefully designed as a tailor-made pathway between the individuals’ actual competences and the required starting competences in their future jobs. As to the question whether pathways as long as 12 months are affordable for maintenance jobs, the answer is unambiguously positive. As we saw in section 6.5 of Chapter 3, such pathways turn out to be very profitable investments for the government budget and, a fortiori, for society as a whole. The main difficulty signalled by the management of Vitamin-W relates to their financing through project subsidies (see section 2.2). Respondents furthermore emphasised that the collaboration with several parties and the economies of scale achieved within Vitamin-W were crucial for the Vit. W - Learn & Work centre ‘Care & Cleaning’ & ‘Logistic Assist.’ Train. courses 43 growth, financing and success of the organisation. Freely interpreted, it can be said that Vitamin-W, through the upscaling it achieved, tried to protect itself against and deal with the insecurity and instability involved with project-based subsidies. The social profitability of this kind of labour market service suggests that a more secure subsidy framework would be justified. The organisation’s relationships with the public employment service and the Flemish Government are at the same time constructive and critical. Vitamin-W perceives its own role as the ‘sag wagon’, caring for the most hard-to-place groups: while this is generally acknowledged as the strength of the organisation, it questions the responsibility of the VDAB vis-à-vis those groups. The Vitamin-W management would also like to have more direct opportunities for communication with the government and a greater say in the design of policies towards their trainees/workers. 45 CHAPTER 6 JOBCOACH NETWORK In this chapter, we discuss the ‘Jobcoach Network’ case in Ghent. The characteristic feature of this project is that the mentoring by a job coach only starts after recruitment, precisely at a moment when many traditional forms of (route) counselling end. The central objective of jobcoaching is ‘the sustained employment of new employees’. 1. Origin of the initiative The jobcoaching-methodology originated from a real need perceived by the local employment centre of Ghent (City of Ghent). Originally, jobcoaching was not a formally recognised practice and coaching was organised (and financed) in the context of: − individual company training (individuele beroepsopleiding in ondernemingen - IBO); − diversity plans; − learning island projects/Interface-project; − employment clauses in contracts the town of Ghent signs with external contractors (for example: a company is allowed to carry out work for the local authority on the condition that it recruits a prescribed number of people from certain disadvantaged groups). Through the contacts with jobseekers on placements, the awareness grew that many low-qualified people would benefit from external guidance after starting work. The reason for this is because employers often invest insufficiently in the reception and guidance given to people who are not familiar with a professional environment and the company culture they arrive in. From May 2002 until May 2004, the Jobcoach Network was financed by the ESF as an EQUAL-project. In a first phase, the instrument ‘Jobcoaching’ was subjected to some fine-tuning: experiences were bundled and cross-referenced with some expert views. The results were gathered in a handbook for jobcoaches, who were also provided with a newly developed training course. This process constituted the first of three phases of an EQUAL-project: the preparation phase (15/11/01 to 15/04/02). This phase was followed by the implementation phase (15/05/02 to 14/05/04) and the dissemination phase (15/05/04 to 14/11/04). The Flemish government recently made additional resources available for jobcoaching to be extended. These resources are available to the entire Flemish Community. In practice, the VDAB will take over the jobcoaching in most cases. Within the Jobcoach Network of Ghent, the 46 Chapter 6 resources will provide for an additional six coaches, each able to deal with an annual case load of approximately 50 employees to be guided. An important limitation of these funds is that they are earmarked for three specific target groups (see section 4). 2. Organisation and structure Underlying Jobcoach Network is a partnership of six organisations: the local employment centre of the town Ghent, the NGO Job & Co, the Chamber of Commerce, the Christian trade union ACV, the VDAB and the partnership ‘Ghent, City at work’. The actual jobcoaches are supplied by three partner organisations: VDAB (4), Job & Co (1) and the Local Employment Centre (1). 3. Principles Jobcoach Network developed a clear vision, based on a few fundamental axioms, as its starting point for jobcoaching methodology. In this section, we briefly summarise these underlying principles. The objective of jobcoaching is the sustainable employment of new employees from the target group. This target group is described as ‘job-seekers from the disadvantaged groups’ and is therefore given a broad interpretation. Crucial for Jobcoach Network is that diversity is considered as a given that needs to be dealt with, rather than thoughts (and actions) based on ‘shortages or problems’. Looking at and dealing with the diversity between people (employees) is possible in two ways: by thinking in terms of (disadvantaged) groups and categories, or diversity as the individual variation between different employees. The first viewpoint involves a risk of stigmatisation and the acceptance that there is such a thing as a ‘standard or ideal’ employee. Actions aimed at specific target groups are obviously not at odds with a purposeful diversity policy, but the perverse effects of categorial measures should be resisted by retaining the broadminded approach to individual diversity. On the basis of the diversity principle, all employees, or the entire team/organisation into which the new employee is recruited will need to make an effort in order to allow the new employee to participate fully. The employee is not the only one trying to adjust to a new context, but all employees, supported by the management, must try to acknowledge the nature of the individual in a positive way. From a HR-perspective, the diversity principle requires a varied approach in order to deal positively with the diversity of the employees, benefiting both the production and the company. The above clarifies that the Jobcoach Network starts from a systems approach when giving guidance to new employees. The individual should not be expected to make a unilateral adjustment, but all members of the organisation need to participate (and to be coached) in the integration process. The guidance by a jobcoach is always preventative, trying to avoid that the new employee fails to integrate resulting in the employee losing the job (again). Furthermore, the guidance is ideally only short term, in the hope that employees will be able to persevere at work without the support of an external coach. Jobcoach Network 47 Finally, it should be noted that a job coach only offers guidance with regard to ‘soft’ factors and competences. Help with acquiring technical, professional and specific competences relating to the company organisation is seen as the responsibility of the employer. These matters will often be learned on-the-job. 4. Target group The target group singled out by Jobcoach Network is defined broadly: ‘jobseekers from disadvantaged groups’. Note that this description can be confusing, since the coaching only starts after people start work, when they are no longer jobseekers. Not all participants are by definition low-qualified. A few of them have a basic degree and some work experience, but they still derive benefit from the guidance of a jobcoach. As set out in section 1, the Flemish minister for Employment (Landuyt) has made resources available to finance jobcoaches, independent from the activities of the Jobcoach Network in Ghent. In most places, the jobcoaches become an inherent part of the VDAB-operation. An important difference with the jobcoaching as it is carried out by the Jobcoach Network in Ghent is the identification of three target groups: − the disabled; − people over 45 years old; − ethnic minorities. The pioneers of the Network regret that this demarcation narrows down the diversity principle which Jobcoach Network chose as the starting point of its operation. 5. Obstacles to sustainable employment for the low-qualified The target group of Jobcoach Network consists of people who have already been recruited and who are therefore deemed to be competent by the employer for the function they will carry out. However, it appears that many low-qualified people nevertheless face a host of obstacles to remain in sustained employment. Interviews with jobcoaches, co-ordinators, an employer and an employee help us to distinguish three main groups of obstacles. We only look at the ‘soft’ and circumstantial factors, the most important issues addressed by jobcoaching. Technical and professional competences, diploma requirements etc. do not feature on the list and they are therefore not discussed in this text. 5.1 Competences of the employee A first group relates to competences of individual employees. It refers to all the skills, attitudes, knowledge and experience required to carry out a function. Virtually all parties interviewed mention a lack of appropriate work attitudes as a stumbling block. Examples include not arriving at work on time, being unjustifiably absent from work or 48 Chapter 6 failing to notify the employer of an absence. It is linked to a lack of motivation with some employees, often caused by a poor self-image. Social and communicative skills are crucial nowadays in many jobs, next to the purely technical skills and professional expertise. Closely related to these are the ‘job application skills’. Jobcoaches also point out that low-qualified employees have inadequate self-sufficiency. In a few cases, they already took part in work experience programmes, offering a high level of guidance and support. As soon as they take on a regular job, the support stops and they are directly responsible for the paperwork, the negotiation with the employer, etc. 5.2 Characteristics of the employer All parties involved mention ‘prejudices of employers’ against low-qualified employees and jobseekers as a significant impediment for the sustained employment of this group. Generally, two causes are cited for the prejudices: − a lack of experience and familiarity with the group; − previous negative experiences with the target group, for example, with people who were forced to apply for work. Employers also prefer to play it safe. When companies can attract people with relevant work experience and an attractive profile, these will be given preference over low-qualified applicants. The business cycle naturally also plays an important role. When there are shortages on the labour market, employers are more inclined to recruit low-qualified staff, because they can rely on the group being given free guidance by an external jobcoach. For instance: the economic boom of a few years ago led to clear labour shortages. In order to find the required workforce, a local McDonald’s franchise holder decided to recruit low-qualified jobseekers, considering they would receive guidance from the Jobcoach Network. A fairly large group was recruited and given guidance, approximately half of which eventually remained in the company’s employment for a longer period of time. As mentioned before, self-sufficiency and social and communication skills are important for the recruitment and retention of low-qualified employees. Employers, in turn, need to provide the necessary guidance for new employees. In practice, this is not always the case, resulting in people with little experience and self-confidence to be more likely to experience problems during the first months of their employment. 5.3 Circumstantial factors Lastly, a number of circumstantial factors affect the sustained integration of low-qualified people in the labour market. We already mentioned the influence of the general economic situation on the demand for low-qualified staff. People from that group are often the last to be recruited and the first to be dismissed when the company is faced with excess staff. Furthermore, new employees or jobseekers have to deal with the paperwork, which may pose an insurmountable problem for them. According to the jobcoaches, problems stem from employees being either too meticulous or too lax. Jobcoach Network 49 After all, this target group is, in some cases, hindered by being less mobile, which means that not all companies (for instance, those outside the scope of public transport) can be reached. Problems with finding (affordable) childcare have also been mentioned. 6. Methodology and instruments of jobcoaching 6.1 Methods of Referral Participants to jobcoaching are channelled towards the projects in various ways. The Local Employment Centre’s (LWB) own work experience projects constitute the first channel, the Centre being the Network co-ordinator. These people are already known to the LWB and familiar with it, which means that once they are effectively employed after their work experience project, the step to being guided by a jobcoach is relatively small. Other participants are referred by the route counsellors in the Job Centre (werkwinkel) who assisted them when they were looking for work. A few participants end up at JobcoachNetwork via the IBO of the VDAB. Finally, a number of people arrive at Jobcoaching through Jobkanaal.12 Jobcoaches indicate that the referral through a known channel offers the advantage that background information on the employee can be made instantly available to the coach. This is useful for the further guidance. 6.2 Phasing of the coaching process A jobcoach always operates as an external expert who gives guidance within the company at the request of the employer. The coach does not aim to adjust the employee to the specific company environment, but rather to let the new employee integrate successfully and efficiently into his new work environment. After the appointed coach has been briefed by Jobcoach Network on the employees, their job and the company they are working for, the introduction phase gets underway. It involves the coach talking to the immediate supervisors and/or the managing director, to explicitly discuss the culture, working environment and expectations with regard to the employee. Then follows a first discussion with the employee, during which the coach explains his/her role and hears the employee’s expectations. On the basis of the discussion, they agree which aspects the coaching will focus on. These agreements are recorded in a coaching contract. The actual coaching sessions mostly take place during the first two months of the employment and their frequency gradually decreases. In most cases, the coaching is wound up when the employer is of the opinion that the employee is sufficiently integrated and no longer requires coaching. As stated earlier, the attention is mostly directed at ‘soft factors’: attitudes to work and 12 Jobkanaal (Job Channel) is a private job mediation service for disadvantaged groups, created by Voka, the Flemish employers’ federation. 50 Chapter 6 circumstantial factors in the company and in the social environment of the employee. Lastly, the coaching is evaluated with the employer and employee. The process set out above is the ‘ideal’ process proposed by Jobcoach Network. Due to each employee and the specific work situation being different, no two coaching processes will follow exactly the same pattern. Employees increasingly have the opportunity to contact their coach when they face problems. These problems may vary a lot and they often relate to various preconditions influencing the employment situation. For example: accessibility of the company, childcare, problems with the pay and the paperwork etc. Each individual course of coaching sessions is quite time- intensive at between 25 and 30 hours guidance per employee. 6.3 Handbook and training During the implementation phase of the project, a handbook was developed as well as a training course for jobcoaches. The first two editions of the handbook were reviewed after a trial period and complemented with practical examples. At the moment, the third edition of the handbook is being completed. The topics covered are: − the definition and objectives of jobcoaching; − the position and competences of the jobcoach; − achieving sustainable employment through jobcoaching: objective and dimensions of diversity management; − the stages of a jobcoaching process and the tasks of the jobcoach during it; − the Jobcoach Network: supply and objectives. 7. Role of the jobcoach in the context of upskilling Interviews with the parties involved teach us that there is a distinction between immediate short-term effects and the long-term influence of jobcoaching. The jobcoaching tries to address the development of (primarily) social and communicative skills and work attitudes. Jobcoaches as well as employers nevertheless indicate that results in this respect can only be achieved over a longer period of time. The role played by a jobcoach with respect to fulfilling the preconditions (mobility, administration etc.) is therefore more noticeable in the short term. The methodology of jobcoaching does not offer the possibility to teach employees particular skills within a short period. A jobcoach tries to familiarise the employee with the expectations of employers, with regard to specific skills and attitudes. Through this awareness-raising process and regular feedback, the employee should develop the necessary competences. This method clearly puts certain demands on the employee and furthermore does not always produce instant results. The coach does not play a supervising, let alone a sanctioning role, which means that the success of the guidance and of the learning effects depends to a large extent on the motivation of the employee concerned. Everyone involved are convinced that jobcoaching makes a valid Jobcoach Network 51 contribution to the ‘upskilling’ of low-qualified employees, but they acknowledge that the learning process takes time. For this way of learning to succeed, it is important that the employee and jobcoach establish a relationship of mutual trust. The guidance process will only achieve the desired learning effects when the jobcoach is recognised as a confidant. Since jobcoaching starts from a systems approach, the employer and colleagues are also involved in the guidance. Towards them, the jobcoach will try and explain the situation of the employee, raising their understanding for the (educational) needs of the new employee. The most important result that can be achieved among employers and colleagues is a pattern of positive expectations with regard to low-qualified newcomers and diversity as a given. 8. Results Jobcoach Network’s objective is to successfully integrate at least 70% of the employees. The criterion for success is that an employee remains at work with the employer for a prolonged period and that the parties involved (beginning with the employer) no longer deem the coaching necessary, because the employee is sufficiently integrated in the company. The first results as well as the experience of the parties involved suggest that the target of 70% is very ambitious. Of the 59 cases embarked on in 2003, 39 (65.5%) were completed successfully, 10 were finished prematurely and 10 were carried over to 2004. One of the reasons quoted for the moderate success is the fact that employees referred by counsellors of the VDAB are often difficult to coach. Jobcoach Network uses a broad diversity concept, not wishing to distinguish between various target groups. This vision is to a certain extent confirmed by the effectiveness of the guidance. The success rate does not differ by target groups (for example, by race, gender etc.). Only the ‘prior history’ of the participant may play a role. Someone who already participated in a route counselling project for job seekers would have a better idea of what to expect from a coach, making the guidance run more smoothly. When an external coach comes to the shop floor to guide a new employee, the question arises whether this may lead to a further stigmatisation of the new employee. In particular cases, the target group already runs a greater risk of stigmatisation by the employer and/or colleagues. However, the jobcoaches involved in this survey did not report any problems in this respect. It is important that all colleagues and immediate supervisors from the employee’s environment are involved in the coaching process from the start. They are made aware of the role of the jobcoach and of the reasons why the coaching is considered to be beneficial. This method prevents conflicts with colleagues. A further observation concerns the relationship between job coaches and trade union delegates within the company, as both are to some extent responsible for the well-being of the newly recruited workers. Clear communication from the start, and a clear division of roles (with the coach caring for human relations and the delegate for the promotion of rights) has proven to prevent any misunderstandings in this respect. 52 Chapter 6 9. Conclusion The case of Jobcoach Network may at first glance seem rather a-typical in the context of a research on ‘upskilling’, as it relates more to guidance and counselling than genuine job training. Nevertheless, the selection of this case seems justified for two reasons: first, it does contain obvious elements of upskilling, albeit in the area of ‘soft skills’ such as regularity, communication etc. The way in which these skills are developed is informal: participation in the job coaching process would probably not even be reported by the employee as ‘participation in continued education or training’ in surveys about LLL. Secondly, the example demonstrates that this type of upskilling is typically embedded in a broader approach aimed to remove a range of potential obstacles to sustainable employment: administrative as well as social, human and practical obstacles. At the same time, we have seen that the upskilling is to some degree a collective process within a ‘learning organisation’. As new financial resources are provided by the Flemish government in order to extend jobcoaching to the whole of Flanders, the Flemish public employment service VDAB has started to play a more prominent role. From our interviews, it appears that there is some disquiet among the pioneers about the extent to which VDAB wants to put the experience gained by Jobcoach Network into practice and build on it. It is essential that the VDAB-coaches are trained for their new role, according to the methodology and manual developed within the Equal-project. On the other hand, the limitation of jobcoaching to three target groups also means that Jobcoach Network has mixed feelings about the additional financing made available by the government. According to our inverviewees, this practice is at odds with the broad diversity principle which Jobcoach Network adheres to for its activities. VDAB representatives reply that a narrower focus is inevitable due to the upscaling of the measure and the limited resources available. 53 CHAPTER 7 UPSKILLING OF TEAM LEADERS AT HAROL 1. Introduction The company Harol is a producer of roller shutters, sun blinds and sectional garage doors. Set up as a family company over 50 years ago, the company now contains 240 labourers and 90 office staff. In co-operation with the Sub-regional Employment Committee (STC) of Leuven, a host of initiatives were set up with the objective of developing the competences of a few low-qualified groups. In this case study, we focus primarily on initiatives which were undertaken in co-operation with STC Leuven for the so-called ‘team leaders’ (foremen). Harol came into contact with the STC Leuven following a recruitment drive and a training course for a group of migrants in the company. The contact sparked off an initiative to develop a diversity plan and a training and education project for low-qualified employees with many years of service. After all, the company had a fairly large group of employees at its disposal who were recruited at the ages of 16 to 18. It wanted to deploy this group of employees as team leaders in the future, in the context of a restructuring of its labour force. However, it became clear that they did not all dispose of the necessary competences to that effect, which made them realise some ‘upskilling’ was needed. Without upskilling, some of these employees would stand to lose their employability in the new company organisation. 2. Objective of the ‘upskilling’ initiative Approximately five years ago, Harol faced two important challenges: − the production system needed to be optimised and changed from a ‘push’ (i.e. supply-driven) to a ‘pull’ (order-driven) system; − changes in the production system led to a need for staff to have different competences and for the ‘upskilling’ of low-qualified colleagues. The company management took the decision to let the optimisation of the company processes coincide with the ‘upskilling’ of the labourers in the company. The decision to work on the ‘upskilling’ of current employees and to invest in their competences was particularly inspired by social reasons (loyalty of the business owner/employer). A large-scale conversion programme was set up around five action points: Quality, Cost, Deliveries, Morale and Safety. The new 54 Chapter 7 production system was largely based on Toyota’s ‘traditional’ production system. Characteristic for this production method is that it is based on leadership and responsibilities that are integrated as low as possible in the (hierarchy of the) organisation. They tried to support the reorganisation by undertaking a few actions with a great leverage effect. The main action was the so-called ‘upskilling’ of the (relatively low-qualified) team leaders in the company. This group of employees with many years in service (they had been recruited at the age of 16-18) after all had a comprehensive technical and company-specific know-how. Since the company wanted to fully exploit these competences, it chose to give these employees the opportunity to develop into team leaders. It required them to develop competences in two areas: − to extend their technical knowledge and skills; − to acquire specific management skills. All this was the immediate cause for a fairly comprehensive education and training process within the company. The above was carried out in the context of a diversity plan, in co-operation with the Sub-regional Employment Committee of Leuven. Harol tackled a few other initiatives aimed at the ‘upskilling’ of other staff members. In the context of this case study, we will nevertheless restrict ourselves to the activities organised for the (future) team leaders and the management providing the diversity plan for it (in co-operation with STC Leuven). 3. Target group and intended competences Apart from a few people in their 30s, the target group mostly consisted of employees between 45 and 50 years old. Most of them had followed some sort of technical training and were recruited by Harol when aged between 16 and 18. This long tenure means that the employees had a comprehensive knowledge of the company and the production and that their technical know-how was well-developed. These competences developed through years of practical experience in the production department while watching the production processes grow from a small family company to a medium-sized company. After the company restructuring, the function of the target group would change considerably. ‘Team leaders’ constitute the lowest level of management in the company. They have management responsibilities in the production and they are also expected to coach a team of labourers. Clearly, not everyone had the necessary competences to carry out this new function. The main problems were situated in the following domains: − long-term thinking and vision: for years, the employees had been performing labour which was purely focused on immediate results. In their new role, they had to co-ordinate work and plan it over time; − flexibility and openness for new situations and challenges; − leadership: the first-line management (‘team leaders’ or foremen) are given certain responsibilities with relation to the HR management of their team members. It involves coaching, appraisals, performance interviews, etc. Apart from interview techniques, it also requires assertiveness and other communication and social skills; Upskilling of team leaders at Harol − 55 IT-skills: the new role, as well as the restructuring of the production process, requires that team leaders themselves input data in the computer system. 4. Content of the upskilling-activities In the initial phase, an external consultant (Manpower) was enlisted to assess the competences of all the employees in the target group. More specifically, an assessment was made of their management capabilities, vision and objectives on the basis of personality tests, IQ-tests and interviews. This stage was the starting point, followed by attempts in the next few phases to close the gaps in the existing competences through education and training. The second round of the project started with training on the subject of appraisals, given by the external consultant Novare. After the training, the team leaders were expected to conduct appraisals of their own team members. Initially, they received help from their departmental head, but later they were expected to carry out these tasks by themselves. Interviews with the HR manager and a team leader showed up that the prospect at first gave rise to some uncertainty among the team leaders. In the third phase, the team leaders were subsequently guided by a consultant of the company Obelisk to instruct and stimulate them to take initiatives of their own accord and to work methodically. In co-operation with an external expert, the HR manager then worked out a step-by-step plan, with the aim of developing Personal Development plans (Persoonlijke Ontwikkelingsplannen - POP) for team leaders and department managers. The objective was to ensure that team leaders would eventually be able to develop personal development plans for their team members. The above mostly related to formal training courses. Furthermore, the learning of the target group is also stimulated in a different, interactive way: by means of a ‘forum’ for team leaders, foremen and departmental heads. In this forum, the parties involved meet regularly to discuss a wide range of topics. Initially, this method of learning caused some unease. The participants previously only performed manual labour and they were oriented towards seeing actual and tangible results. The concept of a meeting in which they were required to think, take the initiative and discuss matters is diametrically opposed to the employees’ deeply-ingrained habits. The launch of the forum also required some adjustment from the higher management levels. After all, the traditional communication pattern from the top down needed to be abandoned. Furthermore, the increased responsibilities of the first-line management made it indeed necessary for responsibilities and communications to be passed down the line. Through the ‘upskilling’ of the lower-qualified employees in the context of a broader reorganisation of the production processes, the other hierarchical levels of the organisation were therefore faced with a number of changes. 56 Chapter 7 5. Actors involved Through the nature of this upskilling initiative, the main actor in the process is Harol’s company management and more specifically the HR department and HR manager. Interviews with the various actors involved indicate that the HR manager in particular is a driving force behind the (socially oriented) HR management of Harol. The Sub-regional Employment Committee (STC) of Leuven also played a role in drawing up Harol’s diversity plan. The STC is a local consultative committee made up of delegates of employee organisations, employers’ organisations, local governments, the VDAB, the Flemish Region and private training and employment organisations. The STC acts as a contact point for all labour market issues and it takes care of the co-ordination of the labour market policies within the district concerned (in this case, Leuven district). The STC also develops projects in companies, giving advice on the implementation of labour market policy in the region and it keeps a watchful eye over the objective treatment of jobseekers, through an ombuds office. One of the tasks of the STC involves supporting companies with drawing up diversity plans to encourage diversity and proportional participation in the labour market. This may entail initiatives in the field of reception, recruitment and selection, education and training, Dutch on the shop floor and miscellaneous intercultural subjects. In the case of Harol, the support from the STC was precious in drawing up the diversity plan as well as the training plan(s). Furthermore, a number of external agencies were enlisted to give the actual training courses. Manpower looked after the initial screening of all team leaders and the Novare and Obelisk agencies gave the proper training. The advantage of external instructors is that they occupy an independent position. In the context of a far-reaching restructuring of the company, these agents are usually perceived and accepted as a neutral party by the employees. Finally, the sectoral training institute contributed to the content of the training. 6. Financing Naturally, the upskilling programme was primarily financed by Harol itself. Various grants and subsidies were tapped to support the project, including a grant in the context of diversity planning (see Part 1, Chapter 2, section 2). It was enough to subsidise part of the preparation of the upskilling-programme. Harol’s management indicated that, without the subsidy, initiatives for ‘upskilling’ low-qualified employees would still have gone ahead, but on a smaller scale. Alongside the system of diversity plans, Harol also made use of the system of training vouchers for employers (see Part 1, Chapter 4, section 2) and of the ‘Zilverpasplan’. The latter involves measures and actions aiming to stimulate the proportional representation in the labour market of older employees. The actual procedure of the Zilverpasplannen is relatively similar to that of the diversity plans. The Flemish government also provides a subsidy for them, covering two thirds of the cost. Upskilling of team leaders at Harol 57 7. Results Firstly, we look at the results at company level. The eventual objective of the entire process was to optimise the production process at Harol. They wanted to shorten the delivery times and to increase the overall production efficiency. The company management reports an improvement in three domains: − a considerable reduction of delivery times; − a decrease in production costs. During the first year of the reorganisation, production costs rose, because many employees attended courses on a regular basis, at which time they were unable to deliver productive labour. After the first year, the costs nevertheless fell to below the starting level; − a considerable improvement of the quality. During the first year of the new production process, the number of complaints fell by 50%, in the following year they fell by 30%. From the employer’s perspective, the above was naturally the prime objective of the entire process. Furthermore, a few important effects became visible in the target group of these upskilling activities. Eventually, approximately half of the target group have actually been able to attain the function of ‘team leader’, acquiring the necessary competences for it. For the rest, other solutions were found. A few were made technical officers, because it was better suited to their abilities and professional ambitions, without having to manage their colleagues. Team leaders consequently acquired practical competences allowing them to fulfil their new role. Furthermore, the training had a positive effect on their self-image and confidence. Employees gained the experience of being allowed ‘to grow’ in their work. 8. Conclusion The Harol case provides a nice illustration of the possibilities for upskilling of incumbent employees. Despite their high seniority and apparent stable job careers, it suddenly appeared that these workers were at risk of losing their jobs due to re-organisation of the firm. The interest of this case undoubtedly lies in the convergence between economic and social objectives: while economic motives (raising productivity and competitiveness) triggered the whole project, it was linked to a diversity plan focussing on the social advancement of older low-educated workers. The results demonstrate that the upskilling plan was a profitable investment for the company. The case also illustrates that upskilling reaches beyond the objective of individual integration: it was an integrated part of a comprehensive plan with economic objectives, a related HRM plan for the whole firm, personal development plans etc. As in the case of job coaching, we conclude that the upskilling of individuals can not be seen in isolation from the re-organisation of the work environment. Harol made use of various instruments and support of various actors that were created through social dialogue at different levels: federal (sectoral fund), regional (diversity plan) and local (the 58 Chapter 7 STC). The tuning between these instruments has greatly facilitated the smooth implementation of the whole process. Last but not least, the case shows that so-called vulnerable groups of workers are capable of learning and adapting to a new work environment and new technologies, provided that the firm’s HRM policy prioritises the well-being of the target group. 59 CHAPTER 8 GENERAL CONCLUSION The participation of the Flemish government in the OECD study ‘Skills upgrading for low-qualified workers’ expresses a concern about possible improvements to existing measures promoting lifelong learning and sustainable jobs for low-qualified workers in general, and disadvantaged groups in particular. It must be admitted that the present unequal participation in LLL reproduces and, indeed, tends to re-inforce the uneven distribution of initial education among adults. On the other hand, we have seen that a whole raft of measures is already available, some of which appear to be quite successful. The Flemish government and social partners have been creative in engrafting their strategies onto federal institutions, mainly, the sectoral funds. In recent years, increasing attention has been paid to strategies combining training with employment, as well as with HRM-innovations. This is illustrated, on the one hand, by dual training-employment schemes such as WEP+ and, on the other hand, by the use of the ‘job rotation’ approach as a general framework for most of the existing measures. The case studies enable us to draw some preliminary conclusions (before the comparative stage of this transnational study). First of all, each of the three cases has revealed the importance of ‘soft skills’ as a key to sustainable integration. Without ignoring the importance of technical and vocational training, all project promoters have stressed the need to invest in work attitudes, communication skills, interview techniques, time management etc. Secondly, the two former cases (LWC Vitamin W and Jobcoach Network), targeted at the more disadvantaged groups, have adopted a holistic approach in which the demarcation line between training and guidance is hard to draw. Moreover, all obstacles threatening sustainable integration are being addressed more or less simultaneously in a multi-disciplinary network setting: medical care, social assistance, mediation, income security, mobility, child-minding etc. are being tackled in collaboration with a variety of other stakeholders. Partnership with supporting services is indispensable for success in this field. The third case (Harol) was holistic in a different sense, as it combined economic and social objectives, linked training in technical and soft skills with the re-organisation of work, and covered the whole firm. Thirdly, the duration and intensity of the training/coaching periods is proportional with the obstacles to integration. Longer pathways inevitably involve serious direct and indirect costs, as they are labour intensive. Private non-profit organisations have often pioneered in this field. 60 Chapter 8 Despite growing collaboration with the VDAB, they remain critical and urge the public service to invest more in the most disadvantaged groups. The Vitamin-W management see themselves as the sub-contractors hired for the ‘hard-to-place’, with the VDAB catering more for the ‘easier’ job seekers. In Ghent, as the deadline for take-over of the job coaching methodology by the VDAB approaches, the promoters tend to become more anxious about possible cutbacks and re-orientation of objectives. Unavoidably, the public employment service will need to invest more in training of their own staff as well as in the extension of existing provision for the low-qualified - otherwise it may end up with a watered-down version of the initial concepts. Also, segmentation of the ‘market’ may lead to stigma and other perverse effects. A more balanced partnership should instead be based essentially on mutual complementarities and joint learning. As regards the role of the social partners, the case studies have shown how powerful effects can result from synergies between collective agreements on the federal, regional and local level. 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