CELEX: 51991DC0397
Language: en
Date: 1991-12-12 00:00:00
Title: COMMISSION MEMORANDUM ON VOCATIONAL TRAINING IN THE EUROPEAN COMMUNITY IN THE 1990s

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          M:
                               C0M(91) 397 final
                               Brussels, 12 December 1991
il
          COMMISSION MEMORANDUM ON
            VOCATIONAL TRAINING IN
            THE EUROPEAN COMMUNITY
                  IN THE 1 9 9 0 s
 ---pagebreak---                                  ., .-2-
                                  Summary
INTRODUCTION
I.   COMMUNITY OBJECTIVES
      1.  The accelerating pace of change
      2.  The new role of "Intangible Capital"
      3.  Qualifications and work organisation
      4.  Human resources: more important and yet more scarce
      5.  Training and qualification of women
      6.  Ski I Is shortages
      7.  SMEs and the single market
      8.  Towards a European market for qualifications and training
      9.  Continued training founded on initial vocational training
      10. Social partnership
II.   ACHIEVEMENTS OF COMMUNITY POLICY
      1.  A progressive build-up
      2.  The foundations of action by the Community
      3.  Areas of activity
      4.  CounciI decisions
      5.  Transnational measures
      6.  Transparency of the labour market
      7.  Structural action
      8.  Key advantages of Community policy
      9.  The achievements of the social dialogue
 III. GUIDELINES FOR THE 1990s
A.    Questions facing all Member States
B.    Community Action
      1.  Underpinning Community action
      2.  Respecting subsidiarity
      3.  New objectives for Community policy
      4.  Coherent and visible Community action
 ---pagebreak---                       COMMISSION MEMORANDUM ON
                       VOCATIONAL TRAINING 1*1
                        THE EUROPEAN COMMUNITY
                             IN THE 1990S
                             INTRODUCTION
1. The marked changes characteristic of the 1980's with «conomic
   restructuring extending into different sectors of activity, skills
   changing and evolving, a very different situation as regards
    labour supply, mobility and migratory flows will, in many ways, be
   accentuated in the socio-economic outlook for the 1990's . Against
   this background the Commission has decided to promote widescale
   discussions on the development of training policies post-
   compulosry schooling. It is convinced that at both Community level
   and in the Member States, improved training is an essential
   prerequisite for dealing with these trends. This memorandum is the
   result   of   in-depth   and broadranging   discussions with    the
   tripartite Advisory Committee on Vocational Training at both
   Community and national level. It includes elements of the written
   contributions prepared on a tripartite basis in each of the Member
   States.
2. This memorandum aims to explore the way ahead for policy in this
   area in the Community       in the 1990s. It describes the new
   objectives that will become prominent in the coming years, as a
   result of which vocational training policy will assume increasing
    importance. It examines achievements so far in constructing a
   common policy on the basis of the 1963 principles, with particular
   reference to the various "action- programmes set up since 1985
   with regard to vocational training. Finally it suggests guide Iines
   for future Community policy in this area.
3. The memorandum should be seen in the context of the work programme
   arising out of the Social Charter-, this proposed, amongst other
   things, that in 1991 the Commission should bring forward proposals
   for updating the general principles of Community policy on
   vocationaJ training, as established by the Council Decision of 2
   April 1963. Further discussions have led to the conclusion that
   these principles remain valid in their present formulation.
 ---pagebreak---                                   -4-
4. Given the current situation the Commission has decided to open up
   the debate on these various issues. Member States and indeed the
   Community itself are confronted by decisions which will be
   significant in endeavours to ensure that human resources play
   their full role in constructing the Community, ensuring continued
   economic growth in Europe and creating a society open to other
   parts of the world.
5. At the same time work to examine the future of higher education
   has been in progress. The Commission has Just brought out a
   "Memorandum" suggesting guidelines in this area, including the
   reinforcement of the aims of research and application of its
   results. The Green Paper also examines how to reinforce the links
   between industry and higher education - particularly universities
   - by the year 2000.
6. The aim of   this memorandum on vocational training in the European
   Community   is therefore to provide a basis for a debate on these
   questions.  With this end in view it points to key issues which the
   Commission   sees as vital. These include:
   - major socio-economic changes in the 1990s, in particular the
   consequences of the accelerating globalisation of economic
   activities and technologies, as the background for the future
   development of the European Economy;
   - the shape and increasing pace of technological change in coming
   years and the need to develop new forms of work organisation with
   new    requirements    for   qualifications  and   human   resource
   development ;
   - the balance to be achieved between investment in research and
   development to accelerate innovation, and investment in training
   to create a skilled workforce able to use and diffuse innovations,
   particularly for SMEs;
   - regional problems arising from skill shortages in various parts
   of the Community: skill potentials poorly adapted to needs for
   growth and innovation, time-lags between declining and new sectors
   of activity, inadequate basic qualifications, etc.;
   - the positive effects of setting up a European "space" for
    training and education, helping firms to develop new policies for
   using qualifications, allowing individuals to have access to new
   opportunities for training and mobility, and in which training
   agencies will operate in European rather than national markets.
   The widening of the European Economic Space to include the EFTA
   countries will strengthen these positive effects, given their
   particular experience and innovation capacities in this field;
   - the mutual knowledge of training systems between the various
   Member States and the setting up of transeuropean networks for
    information and exchanges involving providers and decision makers
    in national training and qualifications systems;
 ---pagebreak---                                     -5-
    - the evolving patterns of mobility within and into the Community,
    with consequences for the structure and operation of European
    labour markets. In this connection Community experience and
    capacities in the training field, already mobilised in PHARE, will
    help the countries of Eastern and Central Europe in their
    adjustment    process    with    regard    to   training  issues. The
    establishment of the European Training Foundation would improve
    the efficiency and visibility of these efforts.
7.  Moreover, it is essential to bear in mind that the boundaries
    between basic education on the one hand and training on the other
    one are gradually disappearing in many cases. It is clear, for
    example,    that   the    competences     provided   by  training are
    increasingly of educational value - particularly in the case of
    social and communication skills - whilst basic education provides
    a foundation of competences for later professional life. This
    dynamic    interaction between the two areas of training and
    education will be fundamental for the years ahead. Another vital
    question is the "status" of technical education and vocational
    training, in institutional and financial terms.
8.  The current situation of the labour market in the majority of
    European countries is of great importance. One of the objectives
    should be to improve the            impact of training policies on
    unemployment,    particularly     long-term unemployment. Here    two
    aspects are particularly significant. On the one hand, Community
    action, particularly as regards information and exchange of
    expertise, should contribute to the transfer of innovation. On
    the other hand, the aim of raising the level and range of
    qualifications should assist both individuals and firms to be more
    prepared for economic fluctuations and hence better armed to cope
    with their negative effects, for example loss of Jobs and
    segmentation of the labour market.
9.   In this attempt to define new guidelines for Community poI icy, the
    balance between integration and diversity, as expressed in the
    principle of subsidiarity should be preserved. The objectives of
     integration and diversity are not mutually exclusive, but on the
    contrary need to be seen as complementary. Indeed, cultural
    diversity and the considerable variety of education and training
    systems is typical of Europe as compared with other advanced
    economies. Community policy should promote and support the
    synergies and cooperation which will make a virtue of these
    differences.
10. Thus, in defining the way forward for Community policy it is
    essential both to underline the contribution of vocational
    training to the new phases of building Europe and at the same time
    to reinforce and assist action taken by individual Member States.
    Community action on training has two strands: setting common
    objectives to be pursued by Member States and identifying
    objectives and actions to be pursued by the Community to support
    and comp1emen t na t i ona1 po1i c i es.
 ---pagebreak---                                       -6-
                           I.COMMUNITY OBJECTIVES
The accelerating pace of change
11.  Human resources will be a priority for the 1990s because the
     decade will be characterised by more of the economic restructuring
     which was such a prominent feature of recent years. This
     restructuring will concern a wide range of economic sectors. At
     the same time the general socio-economic climate will undergo
     rapid change as the Single Market becomes a reality and
     technological change accelerates - with a particularly marked
     effect on the structure of qualifications and their evolution.
12.   In order     to   prepare    for    an    increasingly   turbulent   and
     unpredictable      environment,      firms    are    making    systematic
     preparations and developing key resources for strategic action,
      including technologies, networks, information and human resources.
     Making full use of these resources requires foresight and
     planning: ad hoc improvisation does not work. Successful firms
     realise this and are developing these resources in order to be
     able to react quickly to events or opportunities for development
     as they emerge.
13.  The "globalisation" of firms - already well advanced in some
     technological     sectors    such    as   pharmaceuticals,    information
     technology, telecommunications and materials - gives them a
     stronger and sometimes dominant position in spreading knowledge
     and technology. In this context, human resources become an
      increasingly important factor in competition, both for entreprises
     and national economic systems as a whole.
 14. Uncertainty and turbulence are the essence of the contemporary
     scene - and a capacity for continuing change the key to success.
     This means that it is essential to build up, by means of education
     and training policy, the capacity of the workforce to be flexible
     and innovative. European firms should receive the support of
     education and training infrastructures which will nourish such
     capabilities.
The role of "intangible capital"
15.  The socio-economic context of the 1990s will be marked by the
     growing role of what might be termed^"intangible capital", without
     which    physical    capital    (machines    and   equipment) will     be
      inefficient. This includes not only professional qualifications
     and technological competences but also ability to organise and an
     entrepreneurial spirit. European "human capital" is thus a
     creative and dynamic force in the Community and should be seen as
     a common resource to be developed by mobility, exchanges and
     cooperation. The European space should certainly be seen as a
     forum for competition and as a market, but also as an arena for
     realising and mobilising the competences of its citizens and
     workers.
 ---pagebreak---                                     -7-
16.  In the context of globalisation referred to above, enterprises and
     public authorities will be called upon to cooperate. The result
     should be new kinds of partnership - notably at Community level -
     and new interventions and relationships meeting the needs both of
     economic objectives and social cohesion.
17.  By developing modern and competitive forms of production, and
     developing and using the qualifications of a well educated and
     trained population, Europe will be able to better manage the
     balance of migratory flows: particularly "brain drain" at the
     higher levels of qualifications and mobility which deprives the
     less developed regions of the qualified workers and managers
     needed to develop competitive economic activities.
Qualifications and work organisation
18.  New   techniques   of    information,    communication,   production,
     processing and automatisation are affecting many Jobs and altering
     the qualification profiles in many professions. Europe needs high
     quality performance in developing and using new technologies if it
     is to face up to international competition.
19.  Modern work organization is characterised by the erosion of the
     traditional division of labour and by techniques which can be
     adapted to take account of human needs. Modern management styles
     are characterised by more decentralisation of decision-making
     powers, one aim of which is to strengthen quality control by
     giving more responsibility to the various levels of staff, down to
     the operational level. The modern worker is thus a collaborator
     capable of planning, organising and executing his/her work
     autonomously.   Multiple    or    interlocking   qualifications   are
     increasingly needed, where information technology and traditional
     qualifications are combined        to adapt    to the new working
     conditions. The overall result is that the content and methods of
     initial and continuing training should be changed so that the
     acquisition of technical skills is combined with executive and
     social competences.
20.  As a result the relationships between physical and intangible
     investment by firms are changing. Without investment in their
     human resources, and notably         the qualifications of      their
     workforce, they are unable to ful ly exploit the potential of new
     processes   of   production    or   to attain     the standards of
     competitivity necessary to succeed in world markets, notably as
     regards quality of goods and services. Investment in research and
     development and investment in training and qualification should
     therefore go hand-in-hand so as to ensure complementarity and
     efficiency.
Human resources: more important yet More scarce
21.   in this perspective demography and migration, renewal of the
     workforce and maintenance of its skill base are essential factors.
     The decline in the proportion of young workers means that the
     skills of the adult workforce will become more important: over 80%
     of the workforce of the year 2000 is already in the labour market,
      the stock of competence needs to be renewed by between 10% - 15%
 ---pagebreak---                                     -8-
     per year, and the annual entry of young people to the labour
     market accounts for only 2% of the active workforce. This will put
      heavy pressure on the need to develop the continuing training of
      adults whilst at the same time keeping up efforts to improve the
      quality of initial training for young people.
22.   Education and training policies should be adapted to meet
      different needs from those of the last thirty years under the
      cumulative effect of three factors, with marked regional
      differences: (a) the decreasing proportion of young people in the
      workforce, (b) the active population - which grew during the 1980s
      - w i l l stabilise from 1995 and then fail during the next thirty
      years, and (c) the retired population will grow in number,
      particularly from the year 2000. Together, these factors will lead
      to a progressive inversion of dependency ratios as inactive
       individuals (retired and children) begin to outweigh those of
      working age. These changes mean that training needs will come to
      extend beyond a single period and that the concepts of continuing
      and recurrent education will move up the agenda, in the context of
      a changing life cycle.
Training and qualification of women
23.   Demographic evolution means that equal opportunities in access to
      training and in the kind of training opportunities offered to the
      female workforce will become more significant, particularly for
      women returning to the labour market. In a context of tight labour
      markets the problem of training and employment for women will
      become a priority: women will receive more offers of qualified
      employment, raise their level of professional qualification and
      have access to a greater diversity of Jobs. These objectives must
      be taken into account with regard to training and when developing
      training courses as well as when designing and implementing
      company training.
24.   Within the Community girls and young women should be supported and
      encouraged to enter higher-quality Jobs, which will require longer
      training and higher qualifications. Countries which find the best
      solutions to these questions will possess a considerable advantage
       in meeting the problem of skills shortages, which will be a new
      and characteristic feature of the labour market of the 1990s.
Ski I Is shortages
25.   The labour market in the Member States has been suffering from a
      relatively new phenomenon currently known as skills shortages.
      This is a new challenge for education and training policy - to
      resolve the paradox of a high unemployment rate coinciding with a
       lack of skilled workers.
26.   Analysis of this worrying phenomenon requires an inter-linked
      approach at the macro-economic, regional and sectoral levels. The
      Commission has undertaken such an analysis and the first results
      have appeared recently in the 1991 report on employment in Europe.
      It is not simply a question of overall quantitative imbalance
      between demand and supply since shortages have developed alongside
      a persistently high level of unemployment - particularly long-term
 ---pagebreak---                                           -9-
       unemployment.         On    the  contrary,    factors   which   influence
       quantitative and qualitative imbalances between training and
       employment need to be taken into account such as: demography,
..._- m o b j | j t y ) technological change, lack of initial training and
       absence or weakness of forward planning which limits the ability
       to promote continuing training.
 27.   Community analysis will in particular need to focus on a certain
       number of indicators which help to define the levels of skills
       shortages (global and sectoral shortages, regional distribution,
       specific professional situations). Cooperation at Community level
       will need to focus not only on the kind of solutions - short and
       long term - available for improving training capacities and
       techniques, but also on appropriate forms of work organization,
       skill needs and ways and means of fully exploiting in the
       production          processes   the    potential    of    the   available
       qua I ificat ions.
 SMEs and the single market
 28.   In recent years the role and importance of small and medium
       enterprises as a source of new Jobs and as a pillar of regional
       development has been underlined. SMEs account for over 80% of
      Community businesses but the vast majority do not develop training
      plans for their staff and are therefore a priority area for
       Community action, particularly as a predominant element of
      economic growth in less developed regions. In certain sectors they
      will need to develop strategies for innovation, for attaining the
       critical size necessary for economies of scale (without however
       adopting to organizational models of large firms), and developing
       specialised niches, in the market.
 29.   It follows that if SMEs are to gain full benefit from the single
      market, it will be necessary to develop training policies which
       meet their specific needs. To master the special challenges of the
       single market they will need to develop their training activities
       within the constraints of time, money and their specific
       operating conditions.
 30.   One of the main factors in the success              of SMEs in creating
       employment Is their flexibility in adapting         to market conditions.
       SMEs will thus have to take into account not        only local, regional,
       and national factors but increasingly the           impact of the Single
       Market when developing strategies.
 Towards a European market for qualifications and training
  31.   Community policies for professional qualifications should be seen
         in the framework of a double political objective: ensuring free
        movement of workers and developing common policies for vocational
         training. Actions taken should add up to a Community strategy tor
         ensuring the transparency and efficiency of the "European market
         of qualifications" which is already beginning to emerge, and which
         after 1992 should constitute one of the central poles for human
         resources policies. This means that the required qualifications
 ---pagebreak---                                    -10-
      and   competences, mobility     of     individuals,  and  enterprise
      recruitment and management policies should evolve with a view to
      this European dimension of the qualifications market.
32.   It is important to bear in mind that this approach should not
      simply be developed with a view to facilitating geographical and
       inter-sectoral mobility. Accessing qualifications from a European
      standpoint will become essential in many occupational fields as
      the single market becomes a reality - even if predictions of the
       immediate creation of a single European labour market are
      exaggerated.
33.   This means that the Community will have to make new arrangements
      to ensure transparency in the description of qualifications
      obtained in the Member States. This gradual emergence of a
      European dimension of qualifications, as yet not well defined,
      reflects the formative stages of a "European space for training
      and qualifications" which will lead those responsible (public
      authorities, enterprises     and     individuals) to change     their
      perception and behaviour. Comparable information at Community
       level on professional qualifications acquired via training,
      continuing training and years of experience is in the interest
      both of employees and employers. Whilst the Community will need to
      allow for significant differences between Member States in the
      ways of acquiring qualifications and the various ways of
      validating competences acquired in the labour market, it will also
       need to encourage European-1 eve I cooperation to ensure progress in
       defining the problems and the methods for tackling them.
34.   Training on offer should equally develop a European dimension.
      Currently there is not one but a variety of training markets, for
      which mutual exchanges of information and transparency should be
       sought. If Community objectives are to penetrate the whole range
      of training systems, links should be established in the form of
       trans-European networks^1) giving each training operator or
       policy maker access to the necessary information on the situation
       and innovations in other Member States. The examples of the
       EURYDICE network for education systems or the role of the CEDEFOP
       and specialized research institutions in the Member States as a
       platform for exchanging information on vocational training show
       the results that can be achieved by developing information and
      mutual understanding of systems. Such trans-European networks
       should be pursued on a decentralised basis, using the potential
       created by action programmes, such as the UETPs University -
       Enterprise Training Partnership, under the COMETT programme.
Continued training founded on initial vocational training
35.    Acquiring, maintaining and expanding professional qualifications
       is part and parcel of training systems where training and work are
       closely linked. This is a learning process which should continue
       throughout working life. Vocational training designed with an eye
       to the needs of the labour market is therefore in the interests
       both of the economy and of individual workers. It should aim to
       supply a range of knowledge and skills of long-term value which
      give both the necessary technical skills and the capacity to
       change. The objective of the PETRA programme decided by the
      Council of giving all young people who so wish at least one and if
 (1) COM (90) 585 of 10/12/90
 ---pagebreak---                                     •11-
     possible two years of vocational training after the official
     school-leaving age should be seen in this context. This means
     action to develop the potential of young people and to favour
     "sandwich" training so as to ensure the closest possible link
     between education and firms.
36.   In this way, modern training needs to be organised so as to ensure
     that methodological and social skills as well as the ability to
     continue    self-motivated   learning    are   an   integral     part   of
     vocational training, laying the foundations for future continued
     training and learning at the workplace. Only if the private sector
     takes on responsibilities in the organisation of vocational
     training, and if the social partners participate actively, can
     work and learning be linked in a practical manner and the worïd of
     work given a proper place in vocational training programmes.
37.  For continuing training the value of diversified systems has been
     proved: the multiplicity of training organisations and programmes
      is in full accord with the principle of the market economy. Firms,
     training associations, private and public institutions and in
     particular the universities should offer a range of training
     opportunities. Transparency is thus a sine qua non of the market
     for continued training. Equally necessary is the definion of long-
     term objectives by a process of concertation and eventually
     consensus between all those concerned. Continuing training is in
     the interests of the employee as much as the firm. The latter
     should take on as far as possible the responsibility for financing
     and where possible organising training related to its own needs.
     The responsibility of each employee for his/her own training, and
     the firm's responsibility for continued development of the stock
     of qualifications of its staff should be encouraged. Individual
     motivation and enterprise responsibility are two factors to take
      into account here, including in the definition of public policies.
     The Commission proposal on "access to continuing training" as
     foreseen in the programme of work of the Social Charter, will
     provide the occasion for a new breakthrough on a question which is
     vital for the future of European competitiveness.
Social partnership
38.  Vocational training, particularly continuing training, is an area
      in which the social partners play an active - and often leading -
     role. A reinforcement of this role and closer relationships
     between    the   socio-economic     world,   firms    and     educational
      institutions at all levels are necessary in the context of the
     qualifications challenge and forward-looking training strategies.
     At the level of the Community the active participation of the
     social partners, and in particular the important contribution of
     the Joint Opinions on Education and Training in the framework of
     the Social Dialogue are fundamental to the policy orientations of
     the Commission.
39.   In the debate it is equally important to take into account the
     responsibilities which fall       to the social partners           in the
     framework of     collective bargaining, and        the    links between
     bargaining agreements and public intervention at national and
     Community    level, within     the    perspective   of     the    inherent
     responsibility of the social partners for matters such as work
     organisation and vocational training.
 ---pagebreak---                                   -12-
          II. ACHIEVEMENTS OF COMMON POLICY AT COMMUNITY LEVEL
A progressive build-up
40.  The Community policy on vocational training has developed step-by-
     step with the growth of the Community itself. This progressive
     growth of Community policy was recognised legally by the Court of
     Justice (Gravier, 13 February 1985). Training policy has also been
     developed in close cooperation with other high priority Community
     actions, such as structural, and research and development
     policies, and the establishment of transeuropean networks.
41.  Article 128 of the Treaty is the legal basis for Community policy
     on vocational training. It provides for the establishment of a
     common policy on the basis of general principles established by
     the Council on a proposal by the Commission. The Treaty leaves
     open possibilities for future development without laying down
     over-strict definitions. The first concrete application of the
     article was the decision of 2 April 1963 setting out general
     principles for a Community policy on vocational training. At the
     same    time the statutory     tripartite Advisory    Committee on
     Vocational Training was created with the role of assisting the
     Commission to implement that policy.
 42.  From 1985 successive Judgements by the Court of Justice clarified
      the rules: confirmation of freedom of access to training courses
      in another Member State without discrimination on grounds of
      nationality (articles 7 and 128 of the Treaty); confirmation of a
     wide-ranging definition of vocational training, including higher
      education; confirmation of the progressive constitution of
      Community policy on vocational training; confirmation that the
      Commission   could  propose   to   the  Council   programmes   with
      significant budgetary consequences.
 43.  The review carried out during 1990 and 1991 with the Advisory
      Committee on Vocational Training have led to the conclusion that
      the general principles set put in 1963 remain valid as a general
      framework of reference. However, changes since 1963 make it
      necessary to define new objectives at Community          level, in
      particular to ensure the increasing development of a European
      dimension in the field of qualifications and training.
 44.  The development of a "European market for qualifications and
      training" will necessitate Community measures to regulate this
      market, In particular to improve its transparency and efficiency.
     Measures will also have to be taken to widen access to training
      for all workers at Community level. The Community will also need
      to develop its capacity to cover not only mutual recognition of
      diplomas, but also qualifications, in order to ensure the
      transparency of the European labour market and permit free
     movement.
 ---pagebreak---                                        -13-
The foundations of action by the Community
45.  An essential point of departure for Community action is the
     recognition of the diversity of education and training systems of
     Member States, which unanimously reject any attempt to impose
     blanket harmonization on them. This would              in any case be
     counterproductive for the development of the Community because the
     diversity of educational systems and of culture reflect a strength
     which should be preserved in the building of Europe.
46.  From this starting-point Community training policy has been built
     on the following principles:
     -> co-ordination     of policies:    the general principles and common
     frameworks of Council decisions setting up action programmes
     provide the basis for relevant coordination of Member State
     policies in each domain of action.
     -> convergence of Inltatlves:       the Council decisions set up in each
     domain a framework of common objectives which lead to a gradual
     convergence of national arrangements on the basis of initatives
     taken by Member States.
     -> transnational     cooperation:   transnational cooperation is encou-
     raged between the various responsible parties in vocational
     training. This cooperation is reaching a level at which one can
     begin to talk seriously of a European training and qualifications
     market, in terms of the mobility of persons and the transfer of
     training programmes with induced effects on national arrangements
     and workers' skills including those workers who are not actually
     mob M e .
47.  To this should be added the significant role of procedures of
     concertation and the bodies involved in it, both member States and
     social partners. By its very nature vocational training relies on
     consultation between public authorities, employers and unions, the
     exact recipe varying with national practice. Community action
     helps to reinforce and systematise this consultation both in
     managing Community activities (ACVT, programme committees, social
     dialogue) and in Member States (national organs for follow-up,
     evaluation, participation of the social partners in projects).
48.  These basic approaches in the development of Community policy on
     vocational      training    have contributed     to a forward-looking
     conception      of   subsidiarity, based      not   only  on   normative
     distinctions between areas of competence but rather on interaction
     between Community and national policies. This is an important
     point to build on in the 1990s, particularly in the context of
     current thought on how to improve the efficiency of policies at
     both Member State and Community level.
Areas of activity
49.  The second half of the Eighties was characterised by the adoption
     of successive Council decisions based on Article 128, giving a
     wider interpretation of the competences based on that text, and
     leading to the establishment of Community action programmes in the
     field of vocational training and work on the comparability of
     vocational qualifications.
 ---pagebreak---                                   -14-
50.  The setting up of these programmes represents an essential stage
     in the construction of Community policy in the areas fixed by
     Council decisions. The memorandum of the Commission of 21 August
     1990 on rationalisation and coordination of vocational training
     programmes at Community      level established a framework for
      improving efficiency.
Counc11 dec i s1ons
51.  Each programme of action is generally based on a Council decision
     based on the following common characteristics:
     1. common guidelines to promote convergence of initatives taken by
     and in Member States in relation to national arrangements;
     2. transnational measures at Community level which support      the
     Council guidelines and promote transnational cooperation;
     3. evaluation procedures covering the operations under each
     programme and relationships with other interacting initatives,
     bringing out the Community dimension as such and the links with
     Member State policies-,
     4. an advisory programme committee to help programme development
     and follow-up, on which the social partners sit as observers.
52.  This coherent approach to the structure of action programmes forms
     part of the effort to rationalise and coordinate, and underpins
      the common policy of the cooperating bodies, involving both Member
     States and the social partners. The participation of both ensures
      transparency and follow-up. Taken together, these procedures and
      formal structures are an important factor in policy development
     and respect for the principle of subsidiarity.
Transnational measures
53.  The action programmes include measures partly financed by the
     Community, whose aim is to develop the transnational character of
      training programmes and systematise cooperation between the
     responsible European bodies in the training field. These measures
     have progressively gathered momentum and are now each based on
     networks of several hundred operators at national, regional and
      local levels who translate into action the objectives of the
     programmes. This transnational cooperation is developing at
     several levels: exchange of information, establishment of common
     frameworks of reference, exchanges and mobility of trainers,
     trainees and organizers, permanent partnerships, Joint projects or
     establishment of transeuropean networtks of communication and open
     and distance learning.
Transparency of the labour market
54.  To open up labour markets the first thrust has been the mutual
     recognition of diplomas and degrees so as to promote access to the
     professions subject to regulations in other Member States. The
     Council Directive on the general system for recognition of
     qualifications acquired after at least three years of university
 ---pagebreak--- 50.  The setting up of these programmes represents an essential stage
      in the construction of Community policy in the areas fixed by
     Council decisions. The memorandum of the Commission of 21 August
     1990 on rationalisation and coordination of vocational training
     programmes at Community level established a framework for
      improving efficiency.
Counc iI dec i s Ions
51.  Each programme of action is generally based on a Council decision
     based on the following common characteristics:
      1. common guidelines to promote convergence of initatives taken by
     and in Member States in relation to national arrangements;
     2. transnational measures at Community level which support the
     Council guidelines and promote transnational cooperation;
      3. evaluation procedures covering the operations under each
     programme and relationships with other interacting initatives,
     bringing out the Community dimension as such and the links with
     Member State policies;
     4. an advisory programme committee to help programme development
     and follow-up, on which the social partners sit as observers.
52.  This coherent approach to the structure of action programmes forms
     part of the effort to rationalise and coordinate, and underpins
      the common policy of the cooperating bodies, involving both Member
     States and the social partners. The participation of both ensures
      transparency and follow-up. Taken together, these procedures and
      formal structures are an important factor in policy development
     and respect for the principle of subsidiarity.
Transnational measures
53.  The action programmes include measures partly financed by the
     Community, whose aim is to develop the transnational character of
      training programmes and systematise cooperation between the
      responsible European bodies in the training field. These measures
      have progressively gathered momentum and are now each based on
     networks of several hundred operators at national, regional and
      local levels who translate into action the objectives of the
     programmes. This transnational cooperation is developing at
     several levels: exchange of information, establishment of common
      frameworks of reference, exchanges and mobility of trainers,
      trainees and organizers, permanent partnerships, Joint projects or
     establishment of transeuropean networtks of communication and open
     and distance learning.
Transparency of the labour market
54.  To open up labour markets the first thrust has been the mutual
     recognition of diplomas and degrees so as to promote access to the
     professions subject to regulations in other Member States. The
     Council Directive on the general system for recognition of
     qualifications acquired after at least three years of university
 ---pagebreak---                                  -16-
    The aim with respect to the occupational integration of young
    people is to help them find their first stable employment. The
    Social Fund supports operations covering basic training related to
    work experience on the Job or in appropriate centres, training
    requiring the use of new technologies, recruitment aids for newly
    created stable Jobs, and aid for setting up self-employed
    activities.
    The campaign against long-term unemployment and the occupational
     integration of young people accounts for about 60% of the Social
    Fund resources committed under the Community support frameworks
    established for all objectives. Objectives 3 and 4 account
     for 40% of available resources in developing regions, and
    nearly 80% of the resources the Fund can allocate to the rest of
     the Community.
    This concentration of Social Fund resources on Objectives 3 and 4
    corresponds to the regulations which established the campaign
     against long-term unemployment and the occupational integration of
     young people as Social Fund priorities.
     In the case of Objective 1, Social Fund action can be classified
     in three main categories:
     -  continuing training operations representing about 70% of Social
        Fund Activities in regions covered by Objective 1;
     -  basic training operations accounting for about one quarter of
        the programmes funded by the Social Fund in these regions;
     -  reinforcing retraining structures (training for instructors).
     In regions in industrial decline (Objective 2 ) , ESF funding is
    mainly directed to the development of productive activities,
     especially in small and medium-sized enterprises (SMEs) and
    operations aimed at supporting technological training.
     In the context of rural development, the Social Fund co-finances
     training and employment in the economic sectors supported by the
     EAGGF and the ERDF.              \
59.  This structural action has been reinforced by the recent adoption
    of a series of Community human resources initatives (EUR0F0RM for
    new qualifications and new employment opportunities, NOW for
    women's training, and HORIZON for disabled people). These
    supplementary interventions are currently being implemented in
    cooperation with the Member States. The aim of these initatives is
     to bring about closer links between these structural actions and
    Community training policies and action programmes for vocational
    training (notably FORCE and EUROTECNET).
60. To be eligible for these initiatives actions must meet the
    following financing criteria of the ESF and ERDF (the total
    contribution of the Structural Funds (ESF and ERDF) is estimated
    at 600 MECU of which 300 MECU for EUR0F0RM, 120 MECU for NOW and
    180 MECU for HORIZON). The rate of funding, which varies depending
    on the region which is promoting and the specific nature of the
    action proposed generally amounts to 45% of eligible expenditure,
    this percentage being increased to 65% in Objective 1 regions.
    Projects are selected by the competent national authorities
    (Ministries of Employment and Labour) in accordance with criteria
 ---pagebreak---                                     -17-
     jointly agreed with the Commission. The Member States must    submit
     their applications in the form of operational programmes or   global
     grants. Forty-three operational programmes were presented     to the
     Commission by the Member States in June/July 1991 for the     period
     up to the end of 1993.
61.  Programmes must be transnational in character, thereby enabling
     transfer of know-how and must integrate with at least one partner
     from an Objective 1 region (except for the "disadvantaged" section
     of HORIZON). There are other priority criteria which do not
     necessarily have to be combined i.e. the exemplary and multiplier
     effect which allows the dissemination of good practice to all the
     activities financed by the Structural Funds in the field of
     training and employment; association with Community programmas
     FROCE, EUROTECNET, LEDA, ERGO, (EUROFORM), ILE, IRiS and the
     CHILDCARE network     (NOW), HELIOS, HANDYNET and POVERTY         Hi
     (HORIZON); and innovation in fields not so far adequately covered
     by the Structural Funds.
62.  Overall coherence should be sought in the implementation of the
     policy and action guidelines set out in this memorandum. Actions
     in favour of economic competitiveness and actions reinforcing
     social cohesion should be mutually supportive and enriching, with
     the particular aim of transferring innovations in methods and
     management. This should also facilitate cost control in order to
     obtain the best value for money from Community and Member State
     resources allotted to training.
Key advantages of Community policy
63.  The Community action programmes of the last few years hav^ made, it
     possible to develop new networks (national coordinating bodies,
     operating groups such as the UETPs under COMETT) which are in
     fact decision-making, intermediary bodies to pursue new objectives
     and in setting up transnational operations. Evaluation of these
     networks shows how they have contributed to the development of E
     Community dimension amongst participants whose interosts already
      lay in that direction (e.g. universities), or how they have
     created Community activities in areas until recently little
      involved (e.g. SMEs). In financial and human resource terms, these
      action programmes (partnerships, Joint projects, networks) have
      mobiIised add-on human and financial investments, in support of
      specific Community objectives, with the widespread participation
      of public authorities, regional Jaodhes, and enterprises. A
      multipl1er effect oi Community contributions 1ta* result®*!.
 The achievements of the social dialogue
 64.   Since the Working Group on Education and Training was set up in
       January 1989 it nas worked well and produced tangible results in
       the form of a Joint Opinion on education and training for -younç
       people (26 January 1990) and a proposed work programme to follow
       up this Initial result. This further work led to the adoption of a
       new Joint Opinion on the transition of young people from school to
       working life for young people. A fourth Joint ©pinion on it**
       quost'.on of ways of enabling the -greatest possible access to
       'continuing training l-n firms was adopted in October 1991.
 ---pagebreak---                                  -I8-
60. The follow-up to these Joint Opinions will be an important
    catalyst for progress at national level. They represent a form of
    agreement on Joint action by the social partners to stimulate
    debate at all appropriate levels allocate and the relevant
    responsibility to all parties. New extensions to the social
    dialogue have also been accepted on two further essential themes:
    qualification and certification, and women and training.
66. The process of social dialogue is of value in a field of action
    which by its nature belongs first and foremost to the social
    partners and depends on progress made in collective bargaining
    agreements. The results obtained in the Joint Opinions of the last
    two years are a solid basis for further bargaining agreements at
    national   level, and for ensuring      links between collective
    bargaining and the initiatives developed by the Community, notably
    with reference to access to continuing training.
 ---pagebreak---                                         -19-
                      III. GUIDELINES FOR THE 1990s
A.  Questions  facing  all   Member States
67. By launching this debate on which particular aspects of vocational
    training to promote during the 1990's, the Commission is well
    aware of the need to respond to and support the structural changes
    currently taking place. If the Community is to be competitive the
    changes must be facilitated through the provision of the necessary
    support measures. And yet at the same time, in the interest of
    social cohesion, it is necessary to limit or avoid some of the
    more adverse effects of these changes in terms of the labour
    market. The decade which has Just begun will be a period of great
    change in industrial processes in the various sectors and in the
    functioning of the qualifications market.                         It   is therefore
    particularly important to deal with the key issues in some depth
    in the memorandum, and to find answers to the various questions
    facing all Member States, which are listed below.
68. Discussions on intial training for young people, which were a
    major concern in the 1980's, have certainly lost none of their
     interest today as we witness a gradual increase in the skills
    levels demanded of Job-seekers and the increased difficulties
    encountered by those who failed to complete initial training. How
    can Improvements     In the Quality        of training,        gradual      convergence
    and partnerships       between     training         systems    and enterprise            to
    develop   "sandwich"     courses,       improvements        In the basic             skills
    provided  for young people,        the link between Initial             training      and
    the development   of continuing        training       be made key aspects of the
    future?
69. The labour market situation in the various Community countries
    shows that the highest unemployment rates and the persistence of a
    high level of long-term unemployment are increasingly linked to
    qualitative factors resulting from the mismatch between firms'
    skill needs (stressed by all the employers organisations) and the
    skills available in the work force. The creation of Jobs and the
    knock-on effects on the level of unemployment are thus closely
     linked to the impact made on training policies on the "quality" of
    the work force in terms of skill levels in keeping with modern
    methods of work organization. Similarly, the changes taking place
     in industries, particularly in the sectors most subject to world
    competition, call both for the creation of medium-term plans,
    particularly to cover skill needs, and for Joint efforts to
    provide retraining. How can the links between training,                        structural
    change   and the      labour    market       situation       be more           effectively
    dominated In the light       of all these         issues?
70. The exploitation of investments in Research & Development and the
    dissemination of innovation throughout the economy, in particular
     in sectors exposed to worldwide competition rely heavily on
    activities designed to improve skills. The combating of skills
    shortages, changes in qualifications and work organisation are all
    part and parcel of competitiveness nowadays. Increased access to
    training for all workers throughout their working life is one of
    the prerequisites for these changes. How can activities                    be stepped
 ---pagebreak---                                        -20-
     up In connect ion with qualifications,             links    between    training
     policy and the overall       economic strategies      of firms and regions,
     the design and financing        of training    policies     for all  wage-and
     salary-earners     and for the unemployed!
71.  From what has been observed the way in which firms have been
     organized and how the labour market has functionned in recent
     years. The answer to these different questions is underpinned by
     an aggressive thrust towards structural adaptation. It is those
     countries with the mostly decisively forward-looking and dynamic
     attitudes      towards structural      change which         have been most
     successful in combating unemployment levels. Conversely, it is
     those countries, which have been the least prepared for and open
     to these qualitative changes that are experiencing more marked and
      lasting mismatches between supply and demand for Jobs accompanied
     by the gradual emergence of persistent exclusion from the labour
     market and a consequent upswing in long-term unemployment.
B.   Community Action
Underpinning Community action
72.   It is beyond question that Community policy on vocational training
     has reached a new stage of its development. The challenges now are
     without doubt greater and more complex than any previously faced.
     The different challenges analysed             in this paper show that
      investment in training at all levels should grow in quantity and
     quality. Allowing for what should be done at national and
     Community level, the challenge can only be met by increased
     cooperation and convergence between all participants - whether
     public authorities, enterprises or educational institutions.
73.  The new conditions facing the European Community underline the
      importance of developing human resources, particularly by means of
     vocational training. Human resources should be developed from two
     points of view: economic competitiveness on the one hand, and
     economic and social cohesion on the other. Training, especially
     continuing training, will play a central and vital role in the
     development of an active society able to cope with economic,
     technological, cultural and social change; able to face the
     challenges from outside the EEC area; and able to develop the
     concept of European citizenship. The quality and                    level of
     education      and    training    lies   at   the      heart    of  Community
     preoccupations, and the same is true for all Member States.
74.  Developing a Community policy on vocational training is necessary
      if the Community is to succeed in priority economic sectors vital
      to the future. The sectoral actions by the Community to improve
      its capacity to compete on world markets, are likewise dependent
     on the development of human resources as an ingredient for
     success.
75.  The strategy for developing human resources also plays a role in
     strengthening the Community's world role, as witnessed by the
     growing links with other countries and regions. Improved external
     cooperation in the field of education and training is a basic
     foundation for reciprocal advantage and influence.
 ---pagebreak---                                     -21-
76.  Theso external relations enrich mutual knowledge, thereby building
     up the cultural and social understanding which enables political,
     technological and commerical links to be established. At the same
     time they strengthen outside understanding of the Community, its
     institutions, operations and objectives, and comparisons with the
     institutions of other countries or economic regions enriches the
     action of the Community itself.
77.  Relations are now being worked out             between   the training
     institutions in the Community area and those in other countries,
     notably through specific arrangements whereby the EFTA countries
     take part in the Community's action programmes. These external
     requests for participation are proving to be considerable in
     volume and rich in content.
78.  Along these lines cooperative action has now been developed with
     Central and Eastern Europe, for whom the development of human
     resources is key to moves towards a market economy, EFTA countries
     in the steps towards a European Economic Space, the United States,
     the Soviet Union and other Third countries or international
     organisations such as OECD and the ILO. As regards collaboration
     with the countries of Central and Eastern Europe, the creation of
     the European Training Foundation would provide the framework for
     an improved assessment of needs and investments.
Respecting subsidiarity
79.  Respect     for the   principle   of    subsidiarity    implies   clear
      identification of responsibilities and measures at each level,
     especially those arising out of Member States' domestic action and
     those which may be taken up by the Commission by virtue of
     Community competence and the particular role of catalyst which
     falls to it. This in turn means defining the main policy
     objectives to be pursued at Community level in the area of
     vocational training and the added value which can be brought to
     Member States' own policies and activities by Community action.
80.  From this perspective a double change Is in train: innovation and
     research (which often give rise to new needs for training) and the
     provision of training itself by firms or training organisations
     are developing increasingly as Community-wide as well as national
     act ivit les.
81.  In other words, transnational training is beginning to overlay
     and influence national training markets. Thus the operators
     involved     in  Community   vocational    training    programmes   are
     increasingly multinational European firms, partnerships between
     firms     and   professional    organisations     pursuing    Community
     objectives, territorial groupings participating in multi-regional
     European actions, or transnational partnerships of training
     organisations. The organisation of actions must have a Community
     dimension.
 ---pagebreak---                                          -22-
New objectives for Community policy
82.  The economic conditions of the 1990s and the realisation of the
     single market are bringing into the open new stakes for Community
     policy on vocational training. This policy should be developed
     around the objectives in the areas of activity identified by the
     Memorandum on the coordination and rationalisation of action
     programmes adopted by the Commission in August 1990. The central
     objectives for Community training policy can be grouped under
     three headings: INVESTMENT, IMPROVEMENT, TRANSPARENCY.
83.   Increased    Investment    In   training:    the Member   States and the
     Community should make greater efforts in vocational training if
     they are to be able to cope with the economic, technological and
     social changes of the Nineties and reduce regional disparities.
     Access to and participation in appropriate vocational training
     should be made easier. This means supplying all young people with
     a broadly based and acknowledged professional qualification in
     order to facilitate their transition to working life and entry
      into the labour market, and developing opportunities for access to
     training throughout working life. It is equally necessary to
     forecast skill needs, given the increasing speed and complexity of
     change in qualifications and competences. Entry and reentry to the
     Community labour market should thus become easier, both from an
     occupational and social viewpoint.
84.   Improving the quality        of   training:   the quality and hence the
     practical results of training and education systems will have to
     be improved to meet the explosion in training needs, notably by
     exchange of       information and experience          in this area. Such
     exchanges at Community           level should be based on increased
      transnational mobility of trainers and trainees. The development
     of European distance learning systems also comes under this
     heading, since its long-term aim is that each citizen of Europe
     and each firm should have access to the full range of potential
     European training capacities related to the subject of their
      interest.
85.  Ensuring   transparency:     equal access to vocational training should
     not only be established by removing all discrimination on grounds
     of nationality, but also practically and explicitly encouraged.
     The Community should ensure genuine transparency of the training
     market and recognition of the training courses available.
     Diplomas, certificates and qualifications should be clearly
     recognised      and    mutually      acknowledged.    Cooperation  between
     providers should lead to more training activities and professional
      itineraries     worked    out     at    Community  level, and    mutually
     recognised. Similarly, trans-European networks should be set up to
     connect national databases and to interlink, at the European
      level, training providers and decision-makers.
86.  These new stages in Community policy should build on what has
     already been achieved, using the networks already established by
     the action programes and by the European Social Fund - which are
      in fact unique structures with a genuine Community dimension. The
     mutual enrichment of national systems                is well under way,
 ---pagebreak---                                   -23-
     partlcularly in the framework of Community action programmes. In
     future there should be greater concertation and cooperation in
     this area, supported by efficient and decentralised management of
     Community programmes.
Coherent and visible Commun Ity action
87.  During the last few years the means allocated by the Community to
     policy and action programmes in the area of vocational training
     have sharply increased although they are still limited compared to
     those available to structural policy and R & D policy. This is
     clear evidence of the priority given to human resources in the
     Community's overa11 strategy.
88.  However, the effect of these actions is heavily dependent on their
      impact on structural problems in the Member States, which are
      likely to change rapidly during the 1990s. In a nutshell, the
     financial investments made in Member States and by the Community
     to make progress towards the above objectives will be more
     efficient    if action   is taken    in three directions: better
     evaluation,    improved   coherence,   and  continually    improving
     concertât ion.
89.  Evaluation systems, conceived and set up Jointly with Member
     States, should lead to greater emphasis on the real impact and
     value of Community actions to achieve common objectives. This
     clarity of Community action is important at a time when all
     participants    (firms, organisations, social     partners, public
     authorities, regions) are seeking to develop a Community dimension
      in their activities. The Council decision to include evaluation
     and follow-up in each of these programmes should contribute to
     this end. Evaluation will be coordinated with measures taken by
     the competent authorities in Member States, and defined and
      implemented in close collaboration with them. One of the aims will
     be to analyse the effects of Community actions on national policy
     and practice, with particular reference to the general objectives
     already described, thus promoting innovation in the management and
     planning of programmes and coordination at national level.
90.  Effective links between vocational training policy and other
     Community human resource policies        is another component of
     progress. The aim of the Commission is to serve better convergence
     of objectives between those of vocational training policy and
     those in other areas such as economic competitiveness, and
     structural action (notably by structural        funds) to promote
     economic and social cohesion. To this end an overview framework
     has been set up to rationalise the various initatives taken by the
     Commission in fields such as the vocational training action
     programmes, training activity in the framework of structural
     policies, and the promotion of human capital and mobility in the
     framework programme of research and development. Improved means of
     cooperation with Member States are needed if these measures of
     rationalisation and coordination are to be fully effective.
 ---pagebreak---                                  -24-
91. Similarly the Commission intends In future to establish closer
    links between human resource development and its objectives in
    developing competitiveness in certain, particularly industrial,
    sectors. This lies behind the guidelines set for Community
    industrial policy and the debates on the future of certain
    sectors. Community action programmes in the field of vocational
    training with horizontal effects should also take into account the
    sectoral dimension, particularly with regard to skills shortages
    and retaining measures in order to bring about better integration
    of workers' competences       into efforts   to develop   European
    competitivity and realise the beneficial effects of the single
    market and EMU.
92. The working method adopted for the preparation of this document on
    guidelines for the 1990s has shown how fruitful concertation both
    with Member States and the social partners can be. The principles
    of subsidiarity and diversity - both with particular implications
    for training and education - mean that greater exchanges between
    Member States are essential for defining priorities, facilitating
    convergence where appropriate, and promoting experimentation both
     in Member States and in Community activities.
93. The Community should contribute to the development of dialogue
    between the social partners at Community level, through which they
    can express their agreement on the development of training as part
    of the construction of Europe, and also develop their own action.
94. These challenges facing the Community may well seem immense. The
     idea of a Europe of Training will no doubt take on its full
    meaning in the years to come. Joint action between public
    authorities, firms and the social partners will bring about
     improvements in continuing training, raise the level of workforce
    qualifications in Europe - thereby assuring the competitiveness
    both of firms and the European economy. The Commission counts on
    the fact that this memorandum will contribute to promoting the
    debate on these issues, thereby consolidating the foundations for
    building effective training policies in the Member State and at
    Community level.
 ---pagebreak---                                                                     KSN 0254-1475
                                                             COM(91) 397 final
                                                     DOCUMENTS
EN                                                                            04
                               Catalogue number : CB-CO-91-451-EN-C
                                                            ISBN 92-77-76635-2
OÊBce for Officiai Publications of the European Communities
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