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**RESPONDING TO CHANGE IN THE WORKPLACE:**

**INNOVATIONS IN LABOR-MANAGEMENT-GOVERNMENT COOPERATION**

## Case Study from Chile

### 

# **CHILE**

June 25 -- 26, 2001 Mexico City, Mexico

Abstract

During 1998 and 99, the Hurtado Labor Advisory Center (CELAH) ran an
applied research project based on social dialogue and job training in 15
firms with diverse characteristics. The central assumption (based on a
constructivist view) was that labor representatives can negotiate,
modify and determine the factors that shape organizations, their
structures, the individual roles people play within them, and the norms
and practices they hold. However, there is a need for specific training
for promoting and strengthening social dialogue practices in the
workplace. In other words, the practice of social dialogue in the
workplace depends on the development of certain attitudes, knowledge and
skills that are usually not predominant in the culture of the workplace.
There were two explicit goals in our research project:

1.  1\. To offer a methodological design that could provide the firms
    with increased technical criteria and professional management of
    their training resources.

2\. To offer a methodological design that could promote social dialogue
practices regarding job- training policies in the firms, with the joint
participation of the workers, the executive - management staff and the
owners.

The central mission of the firm is the core of the *skills-based model*.
From this, we derived what the major results expected from each position
were, the tasks for each of them, and the specific training needs for
these purposes. The entire training process is comprised of seven
different modules, each involving an important topic (general knowledge
of the law, "Work Team " concept, construction of a consensual view of
the firm, development of a common diagnosis for training needs and, of
course, definition of a training plan).

The most visible results of the application of this model are:

> 1\. Labor-management training committee ( CBC) members realized both
> the opportunities and challenges represented by the committee's proper
> functioning to the general management of the firm.

-   2\. Participants can be significantly empowered through social
    dialogue practice.

> 3\. The training in our Skills Based Model favored an actual and more
> equal influence of the workers representatives in making decisions
> regarding training and facilitated CBC operations (and not only its
> formal acceptance).

-   4\. With the execution of the modules, CBC members gained in
    knowledge and skills to reach collaborative agreements and
    strengthen their relations and commitment to the firm's goals and
    mission. During the process they also realized the following:

> \- The importance of reaching an agreed definition with respect to
> priorities and criteria for making *collective* decisions regarding
> training policies in the firm.
>
> \- CBC improved operations affected not only training policies, but
> also the organization as a whole (a systemic view of the firm).

\- Reaching an agreement-oriented practice usually requires specialized
assistance.

\- It is important to go beyond some common prejudices regarding labour
relations.

-   

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-   \- The importance of the training factors in the overall operation
    of the firm.

#  Opportunities for Improving Social Dialogue and Labor Relations: 

# The Case of a Small Firm in Chile.

Current changes in the work culture promote a set of new tendencies in
labor relations. Among these, co-operation and dialogue at the workplace
are critical factors. As of late, firms are changing into "communities
of persons" with the objective of producing goods and services. In this
view, firms attempt to become 'work teams'gbased in co-operation among
members toward a shared goal The members of such developed Arganizations
must of persons share important aharacteristics: a vision for the
future, some basic strategic objectives and mlso some basic points of
view. These are the basis for collaborative visions and practices in the
firms.

In our view, a co-operative relationship pattern predominant at the
workplace may facilitate social goals such as social peace and
socio-economic development. Therefore, what is true for labor relations
is also true for the society at large. The most successful countries are
those with higher standards of co-operation and advanced institutions
that coordinate disparate interests and deal with conflicts.

Another relevant tendency in the current work culture is the increasing
extinction of a production model based only on the logic of
specialization and the division of labor. Today, firms must react
quickly to changes in the marketplace, to a new and more competitive
global situation, and to technological change, among others.

In this context, job training is an important factor. The ongoing need
for adapting structures, roles, relations, practices and technologies to
new and changing conditions constitutes a permanent challenge to acquire
new knowledge and technologies, as well as to establish a practice of
continuing learning at the workplace.

In our view, and despite these new co-operative tendencies at the
workplace, it is still true that labor representatives --workers and
owners- have different material interests and a different social base.
But it is also true that both parties are necessary, and no one can be
suppressed. Thus, we must reconsider their relationship in a way that
encompasses their differences as well as the basic recognition of some
significant common interests, including their strong interdependence. We
are convinced that one of the interests that workers, executive-managers
and owners have in common is the importance of job training policies.

Between 1998 and 1999, the *Centro de Estudios Laborales Alberto
Hurtado*[^1] and the *Servicio Nacional de Capacitación y Empleo*[^2]
conducted an applied - research project with the objective ofo ffer ?? a
hodology for promoting a social dialogue between workers,
executive-managers and theows entrwith the goal of end tlitateing
greements about job- traiing plans in the firms. What he rin
tTpaperabstr provideis a mber of basic descriptions of the main features
and agents of the Chilean Job Training System (section 2), a general
description of the relatively new *Comités Bipartitos de BCapaitación*
or abor-Management Training Committee (CBC) mechanism[^3] for social
dialogue (section 3), a summarized description of our applied research
project and,ion 4), and ief description of a n "Bet Practice" interstudy
in thion 5) and, finlly, some relevant results and recommendation
derived fromprospresearch (section 6).

[Section 2.]{.underline} [General Background]{.underline}
[Information]{.underline} [on]{.underline} [the Chilean Job Training
System]{.underline}

In our view, the actions of agents and organizations are partly shaped
by system constraints. Consequently, it is necessary to start with a
general concept of how the entire job training system functions in order
to facilitate the explanation of the main ideas of our applied-research
project, (which was focused on the CBC's functioning and the execution
of consensual training policies at the firm).

The Training System in Chile can be characterized as one with "private
sector dominance" (Haag, 2000). First, because the entire system\'s
logic aims to consolidate both a training market and a skills market.
Second, because of the centralized and private-oriented execution of
training actions and initiatives. These activities are executed mainly
by private training corporations (henceforth OTEC). Thirdly, because of
the importance of the tax rebate scheme to firms, that is at the core of
the system. The majority of SENCE resources are part of this tax rebate
program. This mechanism consists of a subsidy from the state that
provides public resources in order to improve workforce human capital.
Under this program, any firm may claim a refund of one percent of its
annual wage bill for training purposes. In this scheme, firms are seen
as the best intermediary institution between workers and the state's
public training policy.

> Table 1

##### Evolution of the Tax Rebate System, 1988 -- 1998 (some indicators)

+-------+--------+--------+-------+--------+--------+--------+-------+
| Year  | T      | Em     | \[1\] | T      | Dep    | T      | N     |
|       | rained | ployed | /     | rained | endent | rained | umber |
|       | W      | Wor    | \[2\] | W      | Wor    | W      | of    |
|       | orkers | kforce |       | orkers | kforce | orkers | Firms |
|       | per    | (Oct.  | (%)   | via    | \[3\]  | via    | that  |
|       | Year   | -Dec.) |       | Tax    |        | Tax    | train |
|       | \[1\]  |        |       | Rebate |        | Rebate | via   |
|       |        | \[2\]  |       | Scheme |        | Scheme | Tax   |
|       |        |        |       | /      |        | /      | R     |
|       |        |        |       | \[2\]  |        | \[3\]  | ebate |
|       |        |        |       |        |        |        | S     |
|       |        |        |       | (%)    |        | (En %) | cheme |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1988  | 1      | 4.2    | 4.3   | 4.1    | 3.1    | 5.6    | 4.789 |
|       | 84.559 | 85.440 |       |        | 38.550 |        |       |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1989  | 1      | 4.4    | 4.5   | 4.2    | 3.3    | 5.6    | 5.741 |
|       | 99.948 | 63.420 |       |        | 17.240 |        |       |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1990  | 2      | 4.5    | 4.6   | 4.4    | 3.3    | 6.0    | 6.034 |
|       | 06.288 | 25.530 |       |        | 34.330 |        |       |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1991  | 2      | 4.6    | 6.3   | 5.7    | 3.4    | 7.7    | 6.908 |
|       | 91.854 | 30.670 |       |        | 49.180 |        |       |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1992  | 3      | 4.8    | 6.6   | 6.1    | 3.6    | 8.2    | 7.715 |
|       | 22.639 | 77.430 |       |        | 40.110 |        |       |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1993  | 3      | 5.1    | 7.1   | 6.4    | 3.8    | 8.5    | 8.140 |
|       | 61.902 | 09.290 |       |        | 67.520 |        |       |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1994  | 4      | 5.1    | 8.3   | 7.8    | 3.8    | 10.4   | 8.569 |
|       | 22.727 | 22.761 |       |        | 31.161 |        |       |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1995  | 4      | 5.1    | 8.5   | 8.1    | 3.8    | 10.8   | 9.367 |
|       | 39.469 | 74.413 |       |        | 61.913 |        |       |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1996  | 4      | 5.2    | 9.1   | 8.5    | 3.9    | 11.5   | 1     |
|       | 83.310 | 98.680 |       |        | 20.810 |        | 2.618 |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1997  | 5      | 5.3    | 9.6   | 9.0    | 3.9    | 12.1   | 1     |
|       | 16.713 | 80.210 |       |        | 97.790 |        | 4.825 |
+-------+--------+--------+-------+--------+--------+--------+-------+
| 1998  | 5      | 5.4    | 9.6   | 8.8    | 4.0    | 11.9   | 1     |
|       | 22.768 | 32.360 |       |        | 14.630 |        | 4.169 |
+-------+--------+--------+-------+--------+--------+--------+-------+

##### Source: SENCE, Departamento de Estudios, 1999.

Table 1 above *"Evolution of the tax rebate system* *1988 -- 1998"*
shows the evolution of the number of firms and workers that have
received training. Both variables show a positive tendency during the
90s: The number of participating workers in training activities in 1998
is more than twice the number of those who participated in 1988. And the
number of firms benefiting from the tax rebate between 1988 and 1998
increased threefold. Based on data provided by SENCE, there was a
similar positive evolution of the amounts of expenditures in training
between 1988 and 1998. Despite these positive tendencies, it would be
beneficial for our developing economy if at least one fifth of the
workforce received some type of job training each year.[^4] As can be
seen in the table below*,* the current number of workers who receive job
training each year well below one fifth.

  -------- -------- -------- -------- -------- -------- -------- --------
                                                                 

                                                                 

                                                                 

                                                                 

                                                                 

                                                                 

                                                                 

                                                                 

                                                                 

                                                                 

                                                                 

                                                                 
  -------- -------- -------- -------- -------- -------- -------- --------

Source: SENCE, Departamento de Estudios, 1999.

[Section 3. The CBC mechanism]{.underline}

In 1996, 64% of the participants in SENCE activities via the tax rebate
scheme came from management -- executives, administrators and
supervisors. Therefore, less than two fifths of the SENCE participants
belonged to the production line workforce. From this, Louise Haagh
derived the obvious conclusion that the tax rebate scheme did not focus
the public resources in the area where it was needed most: the less
skilled groups of the workforce, (Haagh, 2000).[^5] Another criticism
was that the system favored large firms and that participation of
companies with less than 50 employees was minimal. This is also
significant when taking into account that more than a 75 per cent of the
workforce works in small and medium sized firms, (Pérez, forthcoming).

Thus, the introduction of a participation mechanism, namely the CBC, may
be an important factor in promoting a more equal expenditure of the
public resources for training. But surely more important (in the
perspective of the SENCE planners), the CBC will be a mechanism to reach
equilibrium between the employees and the firm's interests regarding job
training. Specifically, the argument of the planners was that there is a
potential conflict between worker and firm interests. The former desires
a more general type of training in order to improve general skills that
are assets in the labor market, and therefore increase their wages and
marketability. The latter prefers a more specific training to improve
skills required for particular positions unique to firm and industry
needs. The CBC mechanism as a participatory body may be an
institutionalized space where both parties can deal with these
apparently competing interests (SENCE, 1999).

But how does a CBC work? How is it shaped? And who is allowed to take
part in it? The CBC is a new mechanism that may function in every firm
(compulsory for those with more than 15 workers) characterized by an
equal representation of the workers and the administration of the firm.
From a total of 6 formal members, 3 are representatives of the workers
(with an incentive to represent those who are organized in labor unions)
and the other 3 representatives from management. Its aim is to create
and put into practice a training plan approved by the parties. The
principles of the 1997 Act that created the CBCs are: co-operation
between employees and owners, the promotion of a technically grounded
decision-making process regarding firm training policies, flexibility
and equal participation.

However, the actual functioning of the CBCs requires more than a
compulsory law. We were convinced that their members needed some
training to put into practice the "consensual" and "participatory"
spirit of the law. The following section describes the main ideas of our
applied-research and the skills based model we offered for reaching an
optimal functioning of the CBCs.

[Section 4. Our Applied -- Research Project]{.underline}

During 1998 and 99, CELAH ran an applied research project regarding
social dialogue and job training in 15 firms with diverse
characteristics. The central assumption (based on a constructivist view)
was that labor representatives can negotiate, modify and determine the
factors that shape organizations, their structures, the individual roles
people play within them, and the norms and practices they hold.

According to this theoretical assumption, not only organizations -- and
firms among them- but society as a whole are in part the result of a
process of a social construction of reality. In our perspective, if this
assumption is true for relationships and interactions between labor
agents in the firm (the local level), society as a whole will benefit
from the social equilibrium created by such a process (the macro level).

In more precise terms, our hypothesis was that the more participation
agents have in the decisions that affect them (changes), the less their
conflicts will be in firms and society as a whole, and the more their
commitment will be for social peace, integration and socio-economic
development.

In our view, job training is a privileged space of social dialogue
regarding labor relations. This is the case because it is a space for
*natural* consensus among labor agents. Each party may benefit and it is
in their interest to promote and execute training. But what job training
will actually be is a matter of how it is conceived by labor agents in a
more or less participatory process of negotiating; first determining its
meaning and secondly the actions related to it (job training). With
respect to this, our thesis was: the more participatory the process, the
better the results for the firm's mission (productivity,
competitiveness) as well as for the employees' main interests (salary
and marketability).

Despite this, our first instinct was that the actual process in which
labor agents negotiate, modify and determine the meanings of their
organizations and activities is not an easy one. This is the reason why
one of our most important assumptions was that there is a need for
specific training to promote and strengthen social dialogue practices in
the workplace. In other words, the practice of social dialogue in the
workplace depends on the development of certain attitudes, knowledge and
skills, usually not predominant in our work culture. So, our major aim
was to offer a methodology for promoting the social dialogue in firms
and facilitating technically grounded agreements about job training
plans. More precisely, there were two explicit goals in our research
project:

1.  To offer a methodological design that provides the firms with more
    technical criteria and professional management of their training
    resources.

2.  

2\. To offer a methodological design that could promote social dialogue
practices regarding job training policies in the firms; with the joint
participation of workers, management and owners.

3\. To promote and facilitate the adequate functioning of the CBCs in
the firms.

4.  To promote a modern, participatory and co-operative relationship
    among employees and employers as a central goal of modern firms, if
    they wish to improve their productivity and competitiveness.

Our applied-research involved the execution of three tasks, each
involving a different phase of the study. First, secure the commitment
by the employer and employees in each firm to ensure their consistent
participation in the project. Second, conduct a scientific analysis of
the different issues toward a permanent communication and a collective
process of analysis with the members of the firms. Third, provide a set
of recommendations and conclusions regarding the process and execution
of the project.

The goal of the firm is the core of the *skills based model*. From this,
we derived what are the major results expected from each position, the
tasks of each of them, and the specific training needs for these
purposes. The whole process of training is comprised of seven different
modules, each of them involving an important topic (general knowledge of
the law, concept of "Work Team ", construction of a consensual view of
the firm, development of a common diagnosis and its training needs and,
of course, definition of a training plan).

15 firms took part in our applied research project (but not all of them
finished all the phases of the study). 10 of them were private and 5
were public. If we consider the business sectors, the list would be as
follows:

-   3 were from the mining industry

-   2 from the energy industry

-   3 from the service sector

-   2 from the textile industry

-   3 from the plastics industry

-   And 1 belonged to the farming industry

With respect to size, 6 were big firms (more than 250 workers); 5 were
medium sized (between 50 and 250 workers) and 4 were small firms (less
than 50 workers).

A major feature of our inquiry was its qualitative approach to the
phenomena studied. In order to acquire the necessary data, we conducted
90 in-depth interviews with CBC members, each lasting at least 1 hour.
We also conducted 11 workshops in 11 different firms. Each workshop was
8 to 24 hours depending on each firm's interest and particular needs.
The information obtained was processed and, based on this, a methodology
for reaching agreed training plans was proposed.

[Our Skills Based Model]{.underline}

The goal of the firm is the core of the *skills based* *model*. It must
be clear and known by the workers. This strong foundation is needed to
determine the production level expected from each position, as well as
the tasks needed to obtain these results. Thus, an important feature of
our intervention was that it pursued the development of a job-training
plan and the promotion of training practices with a strong, direct
relationship to the firm's business. This is consistent with a major
assumption of our study: workers' property rights (of capacity to work,
skills and know-how) are not diminished in our skills based model with
respect to the firm, but are strengthened by their participation in its
process of decision-making in the CBC.

Another important feature of our model is its focus on the importance of
language and culture as sources of meaning in institutional and
organizational settings. Through the analysis of conversation in the
workplace and the use of some neuro-linguistic tools, our methodology
promotes a new language and new practices oriented toward
dialogue-promotion. Some key concepts of this approach are: a)
recognition of the other as a person; b) legitimization of each one's
interests; and c) co-operation and consensus as organizational
achievements.

The proper functioning of the model involves the definition of an
agreement about the priorities and criteria for making *collective*
decisions regarding training policies, what kind of activities must be
carried out for that purpose, and which areas are the most critical for
a training plan to be executed.

The training process is comprised of seven different modules. The
*first* was to provide the CBC members with a general knowledge of the
relatively new Job Training legislation and its possibilities. The
*second* was based on experiences, role-playing and the explanation of
the concept of "work team". The *third* module was about constructing a
shared vision of the firm, with an emphasis on training aspects. The
*fourth* involved the elaboration of a common diagnostic of the firm's
situation and its training needs. In the *fifth* module, the
participants were induced to determine a number of shared aims and goals
for the firm's future training policy. The *sixth* module was about
making together a one-year training plan (1999-2000). In the last module
*seventh*, participants had to reconsider the precedent work, in order
to define more precisely the skills that must be improved and analyze
how they are related to (and if they are coherent or not with) the firm
major aims and strategy.

[Section 5. A Case Study: Job Training and the CBC as a]{.underline}
["school" for improving]{.underline} [social dialogue and]{.underline}
[labor]{.underline} [relations.]{.underline}

The case we have selected, henceforth F1, is a small firm from the
service sector. Its business is providing high quality car repair
service for customers. A large Japanese multinational car company
accredits this small repair service. There were two criteria for our
selection of this firm. First, the firm's small size is important if we
consider that small firms represent more than 75% of the employment in
Chile.[^6] And second, as we will see, this firm experienced major
changes during --and in part through- our intervention in order to
improve its labor relations and communication among its members.

#### Diagnosis of the Firm

There were two central themes we focus on during our diagnosis: first,
*social dialogue and* *labor* *relations,* and second, *job training*.
Eight different issues were considered in the diagnosis phase (a
summarized result of our inquiry can be seen in chart 1 below). These
issues were:

1)  perception of general labor relations environment,

2)  experience of the functioning of the CBC,

3)  constitution and motivation for CBC functioning,

4)  previous functioning of other joint experiences similar to the CBC,

5)  worker participation in the workplace,

6)  existence of a training plan,

7)  level of structuring of training activities, and

8)  strategic vision of the firm's mission.

In all of these categories, the performance of case F1 was low to
medium-low, with the only exceptions being *6) existence of a training
plan*, on which a medium-high standard was reached and *7) level of
structuring* *of* *training activities,* with a high performance (see
chart 1 below).

![](media/image2.wmf){width="6.899305555555555in"
height="2.4590277777777776in"}

For explanation purposes, we have constructed a *social dialogue and*
*labor* *relation index* and a *job-training index* based on the 8
categories above.[^7] The data were collected through interviews. This
two axis, namely *social dialogue and* *labor* *relations* and *job
training* can be seen in the comparative bubble chart "Job Training and
Social Dialogue" below (Chart 2). Each bubble represents a firm (there
are 11). The color is related to the economic sector each of them
belongs to and the different three bubble sizes represent three
categories of firms: big, medium and small sized firms. Their position
represents the level they reached on the two indexes. Our case F1 had a
low standard in social dialogue and labor relations, but a relatively
good performance --maybe surprisingly- in job training. The reason for
this is that the multinational, to which F1 is a type of subsidiary,
provides F1 with permanent training as a condition for accreditation.
The problem is that job-training activities were focused only in the
technical aspects of car repair. Thus, only those workers involved
directly in repair benefited from the training. The other members of the
firm's staff did not receive any general or specialized training as of
the date of our study.

![](media/image3.wmf)

[During the Workshop]{.underline}

At the initial step of the workshop, the members became familiar with
the relatively new law about Job Training and its possibilities. During
the workshop execution, members agreed on the following points as basic
norms for their joint work: 1. The CBC will meet every two months during
the first year and every four months from that date on. 2. Each meeting
will last one hour. 3. Attendance to regular meetings is important; two
absences may cause removal. 4. The election of CBC members will be held
once a year. 5. If one or more members have recurring problems, there
will be a formal replacement. 6. The CBC members must elect 1 President
and 1 Secretary. In general, the spirit of the law is not to
bureaucratize the CBC functioning. Thus, each CBC has a relatively wide
space to manage their issues and establish their norms.

In a second phase, they defined the following as a shared goal for the
CBC: To support job training as a vital factor for improving the firm's
efficiency and achieve its mission, while providing all workers and
their families with improved opportunities for quality of life and a
better working environment. A secondary aspect was: by regularly
pursuing participation, efficiency and new technology achievements, the
firm will successfully face market changes and future challenges
regarding ethics and environmental equilibrium.

While reaching a shared CBC objective and a common diagnosis of the firm
situation and its training needs, the CBC members were able to debate
more precisely about training-policy goals. In the F1 case, they focused
on the following issues: 1. To differentiate between lines of training:
a) technical aspects, b) public attendance and c) leadership and
supervising skills. 2. To establish well in advance the necessary
training resources (ideally at the beginning of the financial year). 3.
To supplement the tax rebate resources with new business opportunities
oriented only for training activity expenditures. 4. To make a diagnosis
of the training received in recent years by each worker. 5. To survey
the workers' training interests. 6. To make or link with a database the
trainings offered and useful to the firm. 7. To agree upon the
expenditure of training time, paying attention to the needs of the firm
and the workers. 8. To objectively select the persons to be trained,
equally and on the basis of the firm's priorities and worker needs.
Then, they jointly created a one-year training plan (1999-2000) focused
on the 3 training-lines named above: technical aspects, public
attendance and leadership and supervising skills. This was fully
coherent with the participatory analysis of the skills that must be
improved and with the firm's mission and strategy.

#### Results of the Workshop

At the end of the 24-hour workshop, we collected some ideas, evaluations
and comments from the participants. *First*, a visible result was that
workers of all levels of the firm came together for the first time.
*Second*, and related to the former, the methodology made it easier to
reach agreements on the basis of the recognition of the other party and
each one's interests. *Third*, the process of debating and
decision-making held during the workshop prevented conflicts by
proposing a formalized procedure and some common, equal and objective
criteria for those decisions. *Fourth*, the workshop emphasized the use
of a common language among the CBC members, as a way of reaching a
better communication level. *Fifth*, and maybe in part because of the
small size of the firm, members became acquainted quickly. This was an
advantage for improving co-operative and trust building practices.
*Sixth*, the members agreed that more important than the low
tax-benefits established by the law was the co-operative style and "team
spirit" they began to share as a work team. In our perspective, without
the explicit will of the management staff to drive a participatory
style, this teamwork we urged would have been non-productive. *Seventh*,
for the first time, CBC members had a training plan complementary to and
in many respects autonomous from the Japanese multinational directives.
This is important because it increases the internal control of some
vital training activities. *Finally*, and possibly most important, this
shared experience may facilitate organizational change as a whole,
making the firm more participatory and modern.

# Section 6. Conclusion: Some visible results of the Skills Based Training Model 

When we applied the methodology with the CBC members, a first visible
result was that they realized both the opportunities and the challenges
that the proper functioning of this new institution implies to the firm
general management. It was clear that the methodology empowered the
different staffs' participants, providing them with an opportunity to
influence a critical area of the firm's future. It was also clear that
this kind of practice affected not only training policies, but also the
organization as a whole. So, another important "byproduct" of this model
is that the CBC members usually reach a more holistic view of the firm,
its structures, functions, roles and practices. With the execution of
the modules they gain in knowledge and skills to reach productive
agreements and strengthen their relationships and commitment to the
firm's aims and goals. In other words, the CBC mechanism may be seen as
an opportunity for improving social dialogue and labor relations. There
are two main reasons for this: (a) job training is a crucial system
function for modern firms and, (b) job training is a shared interest of
workers and management.

The training in the Skills Based Training Model also favored an actual
and more equal influence of workers in job training decision making.
That is, it favored its real functioning and not only a formal
acceptance of the firm's management. Thus, and in a more normative
perspective, socio-economic citizenship became stronger. First, through
the increase of participation in the workplace. Second, through the CBC
mechanism, where workers may strengthen the property rights of their own
skills and work. Third, and as a result of the above arguments, workers
seemed empowered through increasing the control over their own lives and
a crucial factor that may constrain them: productive change. Training
may be then seen as a strong empowering factor to face and adapt to
productive change. So, another related and positive general result was
the increased importance given to the training factor in the whole
functioning of the firm.

But this experience displayed some limits as well. To reach an
agreement-oriented practice and to reach consensual results usually
requires some specialized assistance. In other words, sometimes it is
too difficult for the CBC members to reach these results without some
external help. In fact, this was true for most of the cases at the
outset. Another factor to take into account is that the process of
putting into practice this "philosophy" requires a high level of
commitment by the workers regarding the firm's mission, something that
is not common. And, on the other hand, sometimes it is not easy to
convince the management staff of the benefits of a participatory
decision-making process. For that purpose, it seems that it is important
to guide the CBC members group beyond some common prejudices regarding
labor relations. In the very beginning of the participatory process,
firms are stressed. There is a need to supply important definitions. But
as the process continues, integrative decision-making usually gets
stronger and stronger in favor of this participatory agreement
"philosophy".

[Bibliography]{.underline}

CELAH (1999) *Metodologías Destinadas a Apoyar la Realización de Planes
de Capacitación Concertados en la Empresa*, Informe Final Proyecto
CELAH-SENCE.

Haagh, Louise (1999) "Training Policy and the Property Rights of Labour
in Chile (1990 -- 1997): Social Citizenship in the Atomised Market
Regime", *Journal of Latin American Studies*, vol. 31, 429 -- 472.

Labarca, Guillermo (1999) "Formación para el trabajo en economías
heterogéneas", *Trabajo y Empresa en* *dos Siglos,* Nueva Sociedad.

Pérez, Guillermo, "Innovación en el Sistema de Capacitación: Los Comités
Bipartitos de Capacitación en Chile", OIT, forthcoming.

SENCE (1999) *Capacitación Laboral: la experiencia Chilena*, Depatamento
de Planificación y Estudios, SENCE.

[^1]: The translated name would be Centre Alberto Hurtado for Labour
    Studies (henceforth CELAH). CELAH is an NGO founded in 1982 -during
    the years of the military rule- under the \"protection\" of the
    Chilean Catholic Church. Nowadays, CELAH is an institution well
    known for its labour studies and researches and for its assistance
    to firms (both public and private) and labour unions. We have also a
    wide experience in leadership training with labour unions\' members.

[^2]: The translated name would be National Service of Training and
    Employment (henceforth SENCE). SENCE is a public agency that
    administrates public resources dedicated to job training.

[^3]: Henceforth CBC. As we will see in more detail, the CBC is a social
    dialogue instance focused on job training. It works in the level of
    the firm.

[^4]: This claim is based on ILO recommendations.

[^5]: ^5^ In the perspective of the SENCE planners this "apparent wedge"
    between ordinary workforce and executives leads to a false dilemma.
    As we will see, their approach distinguishes between a *general
    training interest* and a *particular training interest* instead of
    the emphasis on different types of workers. Gustavo Rayo, personal
    communication.

[^6]: ^6^ This is also a characteristic of the Latin American area
    (Labarca, 1999).

[^7]: ^7^ This was not a displayed on our study