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In August 2003, the Spanish government adopted a reform of the continuing vocational training system, which will come into effect at the beginning of 2004. The aim is to streamline the system, reduce bureaucracy, clarify the competences of the central state and regions, and introduce a flexible funding system in which companies take most of the initiative. The reform entails a certain loss of influence for the social partners.
In early 2003, the government launched a debate on reform of the continuing training system (ES0302103N). This system is currently based on the extensive involvement of the social partners and collective bargaining in managing all levels of continuing training, enshrined in the partners' third National Agreement on Continuing Training (Acuerdo Nacional de Formación Continua, ANFC), signed in December 2000 (ES0101130F). Since the 2000 agreement, the system has been administered by the Tripartite Foundation for Training in Employment (Fundación Tripartita para la Formación en el Empleo) (ES0109202F). The government finally adopted the reform through Royal Decree 1046/2003 of 1 August 2003. Following the adoption on 19 June 2002 of an 'organic law' on qualifications and vocational training (ES0109203N), and legislation in recent years on education quality and universities (ES0111210F), the government has completed a practically total restructuring of the Spanish education and training system (ES0206213F).
The main aims of the reform of continuing training are to streamline the system, reduce the bureaucracy involved, clarify the competences of the central state and regions, and introduce a flexible funding system in which companies take most of the initiative. The Royal Decree comes into force on 1 January 2004, though some important aspects must still be fleshed out in future regulations.
Organisational structure
The government's reform seeks to resolve the question of the respective competences of the central state and regions (autonomous communities) in continuing training raised by a recent Constitutional Court (Tribunal Constitucional) ruling , which suggested a decentralisation towards the autonomous communities. The state is responsible for legislation on labour-related issues, while the management or implementation of training actions may come under the responsibility of the regions or of the state, depending whether the actions fall within a regional or national framework.
The reform seeks to ensure that there is a single national fund for vocational training contributions and a single national labour market, thereby introducing a degree of centralisation. A new State Foundation for Training in Employment (Fundación Estatal para la Formación en el Empleo, FEFE) will take over responsibility for promoting continuing training, coordinating policies, conducting studies and monitoring training. The overall running of the system will be in the hands of a new State Commission for Continuing Training (Comisión Estatatal para la Formación Continua, CEFC). This takes over from the former Tripartite Foundation for Training in Employment, which was created in 2001 and involved the state, the system having previously been managed only by the social partners through the bipartite Foundation for Continuous Training (Fundación para la Formación Continua, FORCEM). Now the regions will also participate in the decision-making structure of the new CEFC, which will be made up of representatives of the central state, the regions, employers and trade unions. Each party will have 17 votes on the CEFC, with a casting vote for the chair, who will be the Secretary-General for Employment at the Ministry of Labour and Social Affairs. The effect is to give greater power to the public administrations and less to the social partners.
Existing joint sectoral commissions (Comisiones Paritarias Sectoriales) for continuing training will be simplified in accordance with a 'sectoral map' to be approved in the CEFC. They are composed of representatives of trade unions and employers, and will: monitor; mediate; provide guidance on workers' access to training; propose criteria for carrying out research into continuing training; draw up annual reports; and report on voluntary groupings set up by companies for training purposes.
Provision of training
The continuing training system trains about 1.7 million people per year. Though the social partners were initially the main actors, this role has now been taken over by companies. Under the new system, companies planning to provide continuing training automatically receive a credit to finance it, and may then begin training actions. They must report on their actions at the beginning and end of training courses, though are not required (as previously) to draw up a training plan to justify their actions. They must obtain a favourable opinion on their training activities from workers' representatives. If companies fail to meet the legal requirements for the training provided, or to obtain a favourable opinion from their workers' representatives, they must return the credit.
The following types of training measure are provided for under the new legislation:
- company-level continuing training actions, which may include individual training leave. These are subsidised in relation to the size of the workforce. Small and medium-sized enterprises (SMEs) may group together voluntarily in order to participate in training actions with the support of FEFE. The training may be specific or general;
- 'contract programmes' (contratos programas) for the training of workers. These are plans whose training content consists mainly of 'transversal' and 'horizontal' actions - ie they relate to skills which are common to more than one economic sector. Following prior information to FEFE, these contract programmes may be agreed by the most representatives employers' and trade union confederations at national level when the scope of the programme is greater than a single region. Public administration workers may fill up to 10% of training places under such intersectoral programmes. Contract programmes may also be agreed through sectoral collective bargaining when the programme relates to a whole sector, again when the scope is greater than a single region. Contract programmes may also be agreed by well-established confederations and federations of cooperatives or 'workers' companies' (sociedades laborales), or national associations of self-employed people with experience of managing training, or other relevant bodies; and
- complementary and accompanying actions to training. This consists of funding studies on the labour market and training needs.
The new legislation guarantees the inclusion in continuing training of priority groups as identified by the European Social Fund- such as workers in SMEs, women, people with disabilities, people over the age of 45 and unskilled workers.
Funding system
One of the significant changes made by the reform is a new funding formula. Automatic training credits will be granted to companies in line with the rate of social security contributions for vocational training, which will be determined each financial year by the National Council of FEFE. The credit will be made available to those companies that contribute to vocational training, with reference to the amount spent by the company on vocational training during the previous year. This credit will partially finance the training given.
Continuing training programmes will thus be co-financed by the training fund and companies, with the latter paying a proportion of the total cost of the training according to their size. Smaller firms will receive a higher subsidy and those with five workers or fewer will be exempt from contributing to the cost of training. As noted above, companies that are later found to have failed to meet any of the legal requirements must return the credits they have received.
Social partner views
The Trade Union Confederation of Workers Commissions (Comisiones Obreras, CC.OO) and the General Workers Confederation (Unión General de Trabajadores, UGT) are largely satisfied with the reform, as they feel that it less radical than they feared. For the unions, the reform at least guarantees: the relationship between continuing training and collective bargaining; the presence of the social partners in management; a consideration of the difficulties faced by SMEs; the links with other areas of training provision; and the transparency and flexibility of the system.
Employers' organisaitons are also pleased with the reform because it meets their longstanding demands by reducing the intervention in company training provision of outside bodies. Furthermore, the procedures are more flexible and the funding is automatic, thus ensuring greater freedom for companies.
Commentary
The new reform provides continuity for the continuing training system. However, it alters the structure of the Foundation that manages its operation. The regions play a greater role, companies have greater autonomy, and central government has taken over some aspects which are crucial for the development of the system. The aim is to ensure the principle of a single fund for vocational training contributions and a single labour market throughout Spain. The social partners have lost power and initiative in the system, for example in terms of their role in decision-making role and in the procedures for drawing up training plans for groupings of companies.
It remains to be seen whether the new funding system will lead to a better monitoring of continuing training, and the amount of funding for each year has not been specified.
The procedures have indeed been made more flexible and, for example, it is no longer necessary for companies to draw up 'administrative' training plans. However, problems have perhaps been transferred to the later stage of monitoring, which is only vaguely defined. Furthermore, measures in areas such as improving the training, defining the contents and regulating the teaching staff and training centres have still to be drawn up. Also, it must not be forgotten that a training system must use consistent plans that guarantee the quality and scope of continuing training, in order to make it a regular habit in companies in the medium term. Finally, the necessary interrelation with the rest of the education system, and particularly with training for unemployed people, has not been discussed. (Daniel Albarracín, CIREM Foundation)