In April 2004, the Cologne Institute for Business Research (Institut der deutschen Wirtschaft Köln, IW [1]) published the findings of a survey examining companies' views on a new training levy planned [2] by the government. This levy, if it becomes effective, will require all private and public employers with at least 10 'non-casual' employees (including part-time workers and 'minor jobs'[DE0302105F [3]] proportionately) whose number of in-house vocational trainees is less than 7% of the total number of employees to pay a levy, if the overall number of training places available in the country is regarded by the federal government as insufficient to meet demand (DE0305103F [4]). The available number of training places is considered to be sufficient when the number of vacant training places each year on 30 September exceeds the number of unplaced applicants by at least 15%.[1] http://www.iwkoeln.de/[2] http://www.bibb.de/en/11693.htm[3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/new-legislation-promotes-minor-jobs[4] www.eurofound.europa.eu/ef/observatories/eurwork/articles/training-summit-debates-shortage-of-places
In April 2004, the Cologne Institute for Business Research (IW) published the results of a survey indicating that many employers are strongly opposed to a levy on companies not hiring enough apprentices, planned by the German government. According to the survey findings, the training levy is viewed negatively by a majority of firms in all sectors, and by 68% of companies overall.
In April 2004, the Cologne Institute for Business Research (Institut der deutschen Wirtschaft Köln, IW) published the findings of a survey examining companies' views on a new training levy planned by the government. This levy, if it becomes effective, will require all private and public employers with at least 10 'non-casual' employees (including part-time workers and 'minor jobs'[DE0302105F] proportionately) whose number of in-house vocational trainees is less than 7% of the total number of employees to pay a levy, if the overall number of training places available in the country is regarded by the federal government as insufficient to meet demand (DE0305103F). The available number of training places is considered to be sufficient when the number of vacant training places each year on 30 September exceeds the number of unplaced applicants by at least 15%.
The IW survey results indicate that German business doubts that the planned levy will have the effects that the government desires. According to the findings, 68% of all companies surveyed view the government's plans negatively, and only 14% support the levy - see the table below. These results are based on a representative survey conducted in April 2004 of 1,018 private and public employers with at least 10 non-casual employees in all branches.
| Assessment | Negative | Undecided | Positive | Don’t know/no answer | Total |
| Number of responses | 696 | 165 | 140 | 17 | 1.018 |
| In % | 68.4 | 16.2 | 13.8 | 1.7 | 100.0 |
Source: IW survey of companies with at least 10 non-casual employees.
Even two-third of companies with apprentices dislike the government’s proposals. In sectoral terms, the plans are rejected by 78% of companies in the metalworking and electrical industry, 75% of companies in the construction industry and 74% of companies in the craft industries. These industries, more than any others, already voluntarily train more apprentices than are needed in firms. In the public sector, the proportion of employers opposed to the planned regulations falls to 57%, though this is still a majority.
The survey also sought to establish the reasons behind the low approval rating of the levy plans amongst companies. More than 80% of the companies surveyed do not like the proposed training levy because they believe that labour costs will increase as a result. About the same proportion of companies anticipate that problems will be caused by additional bureaucracy. Moreover, firms expect hardly any benefits from implementing the planned training levy. Four out of five companies in the survey do not want to change their employment policy as a result of the proposed legislation on the training levy. More than 9% of the firms surveyed would reduce the number of training positions that they provide after the implementation of the plan. Under 5% would increase their provision of apprenticeships after the implementation of the levy.
IW also asked companies in the survey for their opinion on alternative proposals to improve the supply of apprenticeships (DE0307102N). It found that nine out of 10 employers see lower supplementary labour costs and an economic policy that is conducive to economic growth as better options. Additionally, the employers surveyed argue that poor skills of many of the applicants for apprenticeships need to be addressed. More than 80% of the firms regard an improved school education as a precondition for a greater provision of apprenticeships in companies.
Eurofound recommends citing this publication in the following way.
Eurofound (2004), Two-thirds of firms 'reject training levy', article.
