In June 2004, the government and representatives of employers and business signed a pact on apprenticeships, which put on hold threatened legislation imposing a compulsory training levy on companies. In the pact, employers commit themselves to creating new opportunities for apprentices and less qualified young people over the next three years (DE0407105F [1]). On 15 December, an interim report [2] on the training pact was presented to the federal cabinet. The report stated that every young person who was still without a place would receive an offer of a training place or a place on a course leading to a qualification before the end of 2004. According to the government, even though the number of people looking for a training place had increased by about 20,000, compared with 2003, the efforts of the Federal Labour Agency (Bundesagentur für Arbeit, BA [3]), coupled with new possibilities to gain an entry-level [4] qualification, as well as the training places that were still on offer, meant that every young person had good prospects.[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/training-levy-law-avoided-by-pact[2] http://www.bundesregierung.de/Nachrichten/Artikel-,434.755131/artikel/Ausbildungspakt-positive-Bilan.htm[3] http://www.arbeitsagentur.de/[4]
In December 2004, the German government announced that it regards as positive the results of a training pact it signed in June with representatives of employers and business. It said that the initiative had encouraged firms to offer more training places.
In June 2004, the government and representatives of employers and business signed a pact on apprenticeships, which put on hold threatened legislation imposing a compulsory training levy on companies. In the pact, employers commit themselves to creating new opportunities for apprentices and less qualified young people over the next three years (DE0407105F). On 15 December, an interim report on the training pact was presented to the federal cabinet. The report stated that every young person who was still without a place would receive an offer of a training place or a place on a course leading to a qualification before the end of 2004. According to the government, even though the number of people looking for a training place had increased by about 20,000, compared with 2003, the efforts of the Federal Labour Agency (Bundesagentur für Arbeit, BA), coupled with new possibilities to gain an entry-level qualification, as well as the training places that were still on offer, meant that every young person had good prospects.
The parties to the training pact drew their own mid-term conclusions on 3 December: by the end of November, it had been possible to reduce the number of young people still looking for a training place by almost a half. At the end of September, about 44,600 young people had still been looking for a training place, but by the end of November this figure had been reduced to just 23,500. This is the greatest decrease for years during the 'clearing phase' (Nachmvermittlungsphase): in 2003, the reduction over the same period amounted to 24.5%. The reduction in 2004 of almost 50% was, according to the federal government, proof that the training pact was a success. The economics minister, Wolfgang Clement, spoke of a 'great assault on unemployment', and described the development as very heartening. 'What was promised has been delivered', he said at a joint press conference with representatives of employers’ and business’ associations.
According to the government, however, the training market still has considerably more to offer: at the end of October, there were still 6,000 training places on offer that had not been filled. Moreover, there were a further 7,000 places to be added which were available as part of education measures designed to prepare young people for vocations. The government also pointed out that more than 30,000 further places were available as part of a newly introduced offer of an entry-level vocational qualification (Einstiegsqualifizierung).
In order to improve the placement process, the parties to the training pact invited applicants to undergo so-called competency checks. By the end of November, about 16,600 young people had taken part in such tests. About 42% of the participants were, after the test, advised to accept a placement with a company (betriebliche Ausbildung). A further 38% were encouraged to take part in a course leading to an entry-level qualification. An education course designed to prepare young people for the world of work was recommended for 13% of the participants. Other vocation-related recommendations, which do not form part of the measures included in the training pact, were made to a further 7%. On the basis of these proposals, all young people who took a competency check have been made an offer. However, the fact that not all applicants for a training place made use of the opportunity to go through 'clearing' or to take a competency check has been regretted by the government.
The positive interim assessment made in mid-December 2004 was generally confirmed in early 2005 by statements on the 2004 placement statistics made by representatives of business and employers as well as the federal government. Both parties regard the pact as an 'impressive success'. The German Metalworkers’ Union (IG Metall) disagreed, however, complaining that considerably fewer contracts were signed than expected, and declared the pact a failure (according to a report in the Frankfurter Rundschau newspaper on 5 January 2005).
Eurofound recommends citing this publication in the following way.
Eurofound (2005), Government hails training pact as success, article.
