Foreword



The changing world of work is of enormous concern and relevance to learning in general and to technical and vocational education in particular. This was, once again, underlined at UNESCO’s Fifth International Conference on Adult Education held in Hamburg, Germany, in July 1997.

Thus, close cooperation between technical and vocational education institutions and the world of work is one of the key parameters that determine the relevance of education for the world of work.

Mechanisms of cooperation vary considerably worldwide. UNESCO has, within its UNEVOC Project, initiated a series of studies on existing approaches. For example, in the Arab States, studies have been carried out in Bahrain, Egypt, Jordan, Lebanon, Sudan and Tunisia.

For the European region, UNESCO is now presenting four studies on cooperation between technical and vocational education institutions and the world of work. They have been carried out in Hungary, Romania, the Russian Federation and Sweden. The studies from Hungary, Romania and Sweden focus on policies and legislation in technical and vocational education to enhance cooperation with the world of work. The study from the Russian Federation concentrates on various aspects of cooperation on the implementation of such policies at the level of the training institution and the individual enterprise.

The studies have been carried out by experts from Hungary, Romania, the Russian Federation and Sweden on the basis of guidelines by Dr R. Barry Hobart, Consultant to UNESCO. Dr Hobart has also prepared the synthesis of the four studies.

We are grateful to all who have offered to share their experience with others in the UNEVOC Network and beyond. I hope this publication will facilitate the development of ideas and strategies to enhance cooperation between technical and vocational education institutions in Member States.

Synthesis

This synthesis has been prepared by Dr R. Barry HOBART, UNESCO Consultant for the UNEVOC Project, and former Professor of Human Resource Development at the University of South Australia.

This synthesis is designed to introduce you to the common variables that are operating with respect to education for the world of work in each of the case studies included. To give an understanding of these variables greater value to the reader, the approach to them in the countries addressed in this publication is compared and contrasted. However, the synthesis is only designed to wet your appetite to make a deeper and more perceptive study of each of the case studies. Only then will their potential value be fully realised. Much has been left unsaid. But it is hoped that enough of the material has been addressed with sufficient analysis to serve as an inviting introduction to a deeper study and analysis of the whole publication. I am sure you will find such a study of considerable value.

Change

The four case studies analysed in this synthesis report significant impact as a result of change. Even Sweden in its case study reports that as part of a general trend in the Swedish society towards decentralisation of responsibility and the decision-making powers, the education system has undergone fundamental changes in the decade of the 90s. Hungary reports that, at the policy level, the changes it has experienced in the late 80s and 90s have caused new challenges for its labour market and for its technical and vocational education. In Romania major changes in the social and economic environments of vocational education are fundamentally affecting the present state of vocational education. Further the impact of these changes are attributed, in part, to the collapse of the command economy. As a result both enterprises and vocational education and training have had to face crises. The steps towards the transition to a market economy, which were taken as early as 1990 in Romania, greatly affected the relationships of technical and vocational education with private enterprise. This challenge of change to technical and vocational education is seen as a potential source of unemployment, which has been on the rise in all the countries. An important reason for this in the transitions economies is given as the results of enterprise restructuring. Technical and vocational education has had no choice but to adjust to these changed market and social conditions.

Economy - Moves towards the market economy

By far the biggest issue that is addressed in each of the case studies is that of the changing economy and the effect that these changes have on education for the world of work. This is particularly so in the transition economies. This transformation to market economies pervades all the case studies relating to the transition economies. But even in the structure of the Swedish economy, the changes that have resulted are also claimed to have had a significant impact on employment, and the education system. In Hungary, for instance, it is stated that from 1990 on, the process of building up a market economy caused a radical redistribution of the ownership of industry and business, and initially it caused economic depression and mass unemployment. Youth unemployment in Hungary was especially high. The 15-24 age group accounted for 16 % of all earners and for 29 % of the unemployed. However, following the decision in that country to introduce a market economy, the necessary legal conditions were gradually established. The role of the Government in Hungary was significantly transformed at the time of the formation of a market economy. As a consequence Hungary placed a high priority on the competitiveness of its economy and accelerated the process of modernising the content and structure of technical and vocational education in branches and professions where there was a reasonable chance of improving the international economic positions to a significant degree.

The impact of change to the market economy in Romania had similar affects. The gross domestic product declined in the first three years of the transition. Inflation and unemployment rose dramatically. Some adjustments to this impact were taken in Romania by the transition being marked by a gradual disengagement of the State in order that the labour market would assume its former role as the demand-supply regulator. Therefore, legal measures were taken which aimed, on the one hand, at providing social security to the most vulnerable segments of the population in a market economy and, on the other hand, at stimulating economic enterprises and training institutions to make skilled labour more competitive. In addition, private ownership in the business sector is larger than many people realise, some 85 % and increasing.

One can imagine the impact that these economic changes have on technical and vocational education when it is realised that in a country like Hungary, secondary vocational training represents nearly 80 % of the secondary education and is perhaps the biggest sub-system of the entire educational system. On the other hand, in the last three decades of this century by far the largest growth in jobs in Sweden has taken place in the public sector. Private enterprise accounts for 62 % of employment in Sweden today, and the public sector 38 %.

However, all this radical economic change, even in Sweden, has some significant negative affects. It is stated that in the Russian Federation instability and inflation are tending to destroy not only industry, but also other important branches of the economy in general.

Economy - the trauma of mass unemployment

The problem of unemployment is reiterated again and again. It is stated that in Hungary the education system is regarded as the main channel for social mobility. Yet, at the same time, technical and vocational education has encountered significant difficulties because of the transition of the economy and the resulting new phenomenon of mass unemployment. This problem is exacerbated by the fact that 42 % of the unemployed do not have any vocational skills and, thus, such persons are exposed to the danger of long-term unemployment. This particular problem of unemployment among youth at the beginning of their working lives and the retraining of adults have required up-to-date legislation. However, the response in Hungary has been positive. The training system for unemployed people has developed very fast during the past four to five years. This development was significantly affected by mass unemployment, as well as by an educational training culture which has extremely rich traditions and operates institutions which also have a long history in the field of special training. But, labour market training is not the only means of implementing an effective employment policy. Nevertheless, it can be considered a significant factor that mitigates against the struggle of the people against unemployment. Yet, as a consequence of mass redundancies, due to the reorganisation of business and industry, Hungarian technical and vocational education has been in a fundamental crisis. Consequently; the traditional content of vocational education has become increasingly irrelevant

In Romania the same problem of unemployment is recognised. Inflation has risen dramatically (at a rate of 31 % in the twelve months of 1994), and with it, so has unemployment. At the end of 1994 unemployment among the under 25-year olds reached the high level of 42 % of Romania's total unemployment. An important factor in this phenomenon is that large-industry privatisation, which began in 1995. This is expected to put more people out of work, thus raising the share of industrial unemployment even more. Also, it is claimed that the privatisation process and price liberalisation has caused unemployment. Thus, requalification and training of the unemployed have become important priorities of the new Government of Romania.

Big state-owned enterprises in Romania are most heavily hit by recession and economic restructuring. They are the major source of unemployment (over 80 %). As a consequence they have a special need for training and retraining of their personnel. Difficulties with respect to making training an answer to this problem of unemployment are caused by the fact that the enterprises that offer such training programmes must provide jobs for the people who take part in them. Yet, even though this is a requirement, the end result is that only 20 % of the unemployed who complete a training programme can find employment. In an effort to address this problem an 'allowance grant' has been introduced for long-term unemployed; that is, those who, after having benefited from the unemployment payment and corresponding qualification/re-qualification courses, still fail to find employment. The allowance grant is paid for a period of 18 months, during which the beneficiaries can attend qualification/re-qualification courses. This provision is also applied to school leavers who previously benefited from the unemployment payment. Another effort to address this problem in Romania is the Government's decision to require county labour and social security directorates to provide training and retraining programmes for the unemployed. The programmes are offered in regional public centres, vocational schools (under contract) or autonomous centres run by economic units, for a duration of up to nine months.

Even in Sweden in the 1990s the situation of the labour market deteriorated sharply due to the repercussions of the economic crisis experienced by Sweden. There has been a dramatic increase in registered unemployment from 1.6 % in 1990 to about 8 % in 1993 and 1994. During the past three years, employment has decreased by more than 500,000 individuals. The main sectors affected by this massive downsizing process have been manufacturing and construction. Due to the sharp rise in unemployment, the role of labour market policy in economic restructuring in Sweden was even more emphasised during the early 1990s. As a second priority, unemployed persons must also be enrolled in labour market training programmes.

Economy - resulting socio-economic transformation

Hungary has gone through significant socio-economic transformation processes in recent years. The main aim of the economic transformation is to establish the institutional, legal and financial conditions for the development of the market economy. In this regard the development and efficient utilisation of human resources has strategic significance for Hungary's ability to compete in international markets because the country has limited natural resources. The present transformation of the Hungarian technical and vocational education system illustrates how much effort it takes for countries that have to cope with transition to a market economy.

Similarly, the decline in Romania of economic enterprise did not only involve well-known social effects (unemployment, inequality, chronic insolvency and the anxiety that results from these social traumas) but also it resulted in the deterioration of technical and vocational education. It is asserted within the relevant case study that a balance between training, retraining, and labour market demands has still to be achieved in Romania. Moreover, the protracted crisis of the old system has been aggravated by the social costs and the harshness of the economic reform. The programmes implemented have had only limited effects as they have not altered the relationships between the labour market and educational institutions, in any significant way. It would appear that the new programmes that have been implemented seem powerless to improve substantially the relationships between economic enterprises and education/training and re-training institutions. This can partly be explained by the fact that, after the retreat of the absolute regulator - that is the Socialist State - as the sole owner of economic enterprises and educational institutions, the technical and vocational education system found itself separated from the economic system. However, proactive social policies that pursue an increasing labour demand have been developed. These aim, on the one hand, at making young graduates, who are joining the labour market, more competitive in terms of their professional skills by providing better training within the education system and, on the other hand, by providing training and retraining for those already in employment.

Thus, as a result of the compounded economic crisis in Romania, vocational education in the early nineties had to be carried on in an unfavourable socio-economic setting marked by:

· political instability
· an inefficient, backward, and steadily deteriorating economy
· growing unemployment
· social inequality
· a severe state budgetary crisis
· distinctly weaker social services, and
· an increasing dissatisfaction and apathy of the population.

In contrast, labour market education and training in Sweden, that has been provided directly to the unemployed individual, has been the most important tool for influencing labour supply. The primary purpose of this strategy has been to help those who are jobless, or at risk of losing their jobs, to refresh or to gain the skills that are necessary to find work. This policy is an expression of the fundamental principle of the Swedish education system that insists that all children and young persons shall have equal access to education, regardless of ethnic or social background or place of residence.

Co-operation between technical and vocational educational institutions and enterprise

The issue of effective co-operation between educational institutions and the world of work is universally accepted as of primary importance to the effectiveness and efficiency of preparing people for the world of work, and maintaining their efficiency within it. Thus, each of the case studies addressed this issue in one way or another.

This is demonstrated in Hungary by the fact that the basic policy of the Vocational Training Act is to ensure that the market economy makes every effort to improve the links between vocational training and the world of work. An example of such a link is that the Chambers of Commerce supervises on-the-job training, it concludes contracts with trainees, and also represents the interests of particular relevant trades or professions during qualification examinations. Further cooperation is revealed by the fact that in Hungary the State must ensure access to education, while economic enterprises and organisations are in charge of practical training. Further, the participation of social partners in these programmes is not just a formality. They work very intensively in the various relevant committees. A network of centres responsible for training has been created that has resulted in the connection of the centres with technical and vocational educational institutions, especially with schools. This has resulted in a continually improved relationship. One basic reason for this has been that the traditional schools are happy to use the modern tools and modular-system curricula of the centres, while, at the same time, they contribute effectively to theoretical or basic education of the centres. While technical and vocational education has traditionally been linked to the general training system, nevertheless an increasingly close contact with the economy and the world of labour is developing. This is essentially a new development in Hungary.

A difficulty in Romania with co-operation is that small and medium-sized private businesses prefer to hire young people as soon as they graduate from school rather than undertake the responsibility of retraining experienced labourers who have been made redundant by state enterprises. Also, a difficulty in the appropriate selection of young people for training that may be within their particular interest is that apprentice training is done by taking parents' interests, not market demand, into account. Quite often, apprenticeship is seen by employers as a source of cheap labour rather than a vocational training programme. On the other hand, enterprises having been freed from the constraints of having to support financially and to employ technical and vocational education graduates, they have become even more demanding in their relationships with the education system. As a consequence, against the background of changes in the economic system as a whole, there have developed great differences in the relationships between enterprises and educational institutions. However, relationships vary depending on the economic sector and the kind of enterprise that is affected. Thus, a wide range of actors are involved in the relationship between the economic and the education systems. There is, however, no direct legislation in Romania for co-operation between technical/vocational education and the world of work. It is to be regretted that research done at the National Research Institute for Economics shows that labour unions are not genuinely concerned with the vocational training of labour. They tend to concentrate on immediate salary claims.

In Sweden in 1938 the Svenska Arbetsgivarefeningen - SAF (Swedish Employers Confederation) and the Landsorganisation (LO) concluded the Saltsjaden Agreement that workers were entitled to form organisations and to negotiate. This agreement was a sort of 'peace treaty' that regulated the relations between labour and management with regard to wage negotiations and industrial conflicts. During the 1940s a number of basic agreements concerning blue-collar workers were signed concerning safety and health, vocational training, and work councils, including both employer and union representatives. During the 1950s, similar agreements were concluded concerning white-collar workers. Because of these agreements and the co-operative 'spirit of Salsj鯾aden' between labour and management was being applied and, thus, the number of conflicts on the Swedish labour market remained low for several decades. Employers and unions have been regarded as strong enough to reach their own agreements on pay and other conditions of employment. But, due to taxation policy, the inflation rate, and the lack of increases in real pay there have been growing interference from the government on these issues over the decade of the 90s. From 1993 on, negotiations have been carried out entirely on the individual branch level between national employers' associations and national trade unions.

In Sweden, school contact with the world of work has been extensively discussed for a long time. It could be said that everybody seems to agree that school contacts with industrial life are extremely important. It is thought necessary that these contacts exist simultaneously at different levels, even if they are not regulated by any law.

Five core elements of improving this contact are:

· Work-place training which is a vital part of the contact between upper secondary education and the world of work.

· The new apprenticeship training is also an example of the school's new approach to working life.

· Knowledge centres that are primarily based on the co-operation at municipal level, regarding equipment and premises.

· The new role of teachers in vocational training that has resulted from a new curriculum, issued in 1993. The fundamental idea behind the proposal is that co-operation must extensively be developed between upper secondary education and the world of work.

· The invitation of private enterprises to submit tenders for carrying out parts of municipal vocational training in-house.

An aspect of co-operation in the Russian Federation is that trade unions who consider workers' training an important matter always consider it when concluding contracts with employers and when presenting their demands.

Teaching/Learning Strategies

The importance of teaching/learning strategies that includes a component of on-the-job training is being increasingly recognised. Yet, in Hungary, it is most noteworthy that during the crisis period from 1990 on, the number of trainees at school based training workshops increased by nearly 40 % while the number of those getting their work experience at company operated workshops or doing on-the-job training declined by 35 %. However, on-the-job training does take place on the basis of a written agreement concluded by and between the apprentice and the business enterprise. By virtue of the apprenticeship contract such organisations must provide on-the-job training for the apprentice for the whole duration of the training.

But there has been an improvement of hands-on training opportunities in schools. Between 1990 and 1994, small enterprises and the private sector emerged as major providers of such training posts, and second only to the schools, these are the most important places where vocational trainees receive on-the-job training.

Practical training is a priority for the technical and vocational education reform in Romania. Apprenticeship training is also organised in the vocational schools. The curricula, which once used to be fairly uniform in structure, are more varied now in terms of content because in the National Qualifications Legislation more and more differentiated vocational qualifications appear. According to the National Qualifications Legislation issued in 1994, about 370 different vocational qualifications can be obtained in technical and vocational education institutes. Adjustment and flexibility can be observed in the profiles of technical and vocational education, in the main training sectors that are addressed by these centres, and in their programmes, which have a predominantly modular structure. Therefore, general elements that are required in order to improve the competitiveness of the market, and the necessity of a constant monitoring of the technological change and improvement must be reflected in the programmes of school-based technical and vocational education and be incorporated in the basic stages of on-the-job training as well.

A new training model in Hungary, which - in contrast to previous practice - integrates general and vocational skills in order to meet user demand and improves the chances of employment of school leavers by introducing specialisations after students have received their general Grammar School education (GCSE), has been launched.

In order to finance the reform of technical and vocational education, the Government of Romania initiated two international projects in co-operation with the World Bank and EU-PHARE, respectively. In order to decentralise curricula and vocational training; under the PHARE programme, the new technical and vocational education curricula will be developed in 25 pilot schools - one for each occupational family. Continuing vocational education is less structured than the school system. Instead, it is more diversified, larger, and more flexible.

In Sweden, the programmes primarily consist of vocational training, but they may also include orientation courses or general academic studies that are needed before beginning vocational training. Another important tool for addressing effective training for the world of work is the labour market institute in each county, whose task is to help job-seekers who need occupationally oriented rehabilitation and/or extensive counselling. This transition to goal and result-oriented steering of the education system requires the national and municipal authorities as well as administrators in individual schools to follow up systematically and to evaluate educational activities in relation to the goals and guidelines that apply to them.

Professional education in industry in the Russian Federation can be subdivided into:

· Apprenticeship (young workers without a profession).

· On-the-job upgrading system that is designed develop continuously the professional capabilities of workers.

· Retraining that is designed to assist a person the acquire a new profession because of a necessity to reorganise production.

· Initiative education that is aimed at a person acquiring contiguous (a second, third, etc.) profession.

· Compulsory educational programmes that are designed to develop the protection of labour and application of safety measures.

Legislation

The Vocational Training Act (VTA) was accepted by the Hungarian Parliament in 1993. The Hungarian Parliament passed also - almost simultaneously with the VTA - separate acts on public education and higher education.

The Constitution of Romania, passed in December 1991, stipulates the right to education as one of the fundamental rights of the citizens. The Law of Education was passed on 24 July 1995. Both Law No. 1/1991 and Law No. 72/1991 were also passed.

In Sweden, legislation that provides for an employment exchange that has access to the whole array of labour market and skill-enhancement programmes is the fundamental instrument of government labour market policy. Its primary purpose is to create a closer correlation between labour supply and demand. Its main tasks are job placement and vocational guidance. The overall responsibility for labour market policy rests with Sweden's Parliament and Government. Within the Government it is entrusted to the Ministry of Labour. The National Labour Market Board (AMS) is the central administrative agency in charge of general labour market matters and operates through the county labour boards. However, over the years Sweden's Government has pursued a policy of non-intervention in salary negotiations.

With the exception of the University of Agricultural Sciences, which is under the responsibility of the Ministry of Agriculture, and labour market education and training, which is under control of the Ministry of Labour, all public education is the responsibility of the Ministry of Education and Science. Pre-schooling is not considered to belong to public education and is the responsibility of the Ministry of Health and Social Affairs.

In the Russian Federation the Law 'On Education', the second revision of which was approved on 13 January 1996, envisages that the State guarantees the annual allocation of funds for education, amounting to not less than 10 % of the national income. However, the proportion of enterprise expenditures on vocational training of personnel has been very insignificant, an average of 0.3 % of the total of the expenditures on labour force among the surveyed organisations. The legislation of the Russian Federation on education comprises the Constitution, the Law 'On Education', and other laws and regulations deriving from it both at the Federal and Regional levels.

Teachers

The problem of effective teacher education for the world of work is endemic. However, it is increasingly coming to the fore in terms of recognising the high correlation between good teachers and effective education for the world of work. With respect to such teachers, in Hungary the typical conflictive topics are: the security of employment of teachers who already work in educational institutions and/or the protection of state-owned institutions from the impact of the market. However, the questions of the transformation of the role of teachers still needs to be addressed.

In the Russian Federation a similar problem exists, as in many parts of the world, that teachers with out-dated views who cannot meet present-day requirements are a serious barrier in the co-operation of educational institutions and enterprises. In order to make employers confident about the potential and capabilities of technical and vocational teachers/trainers, it is necessary, above all, to improve the quality of their education as well as the potential and image of the educational establishments in which they are trained. It is important that the fundamental academic education of teachers/trainers is closely linked with applied practical knowledge and skills. Training programmes need to be periodically revised in order to achieve a higher degree of future-orientation.

Status

The place, role and socio-economic prestige of technical and vocational education in Hungary have significantly changed during the last years. While technical and vocational education was something of a 'backyard' in the educational system for years, it now enjoys a considerable prestige. This phenomenon is not true of all the countries addressed in the case studies.

This inadequate concept of the importance of education for the world of work is seen in the Russian Federation, where barriers for high-quality staffing of educational establishments not only include financial problems, but also the underestimation of the role of continuous personnel training by some managers.

Focus of education for the world of work

As the various case studies reveal, the focus of education for the world of work is changing significantly as the world economy changes, and as education itself is affected by these changes. In Sweden, for instance, this focus has traditionally been on the secondary school. Yet, the case study of that country reveals an increase in post-secondary education institutions assuming significant roles, and various ministries and Non-Government Organisation (NGOs). In the former socialist countries there has been a greater tradition of association between school and the world of work. However, the education experienced in these countries has tended to be so traditional that it has become increasingly irrelevant to the needs of the world of work. So, while there is some degree of reluctance for industry to assume its role in this area, in some of these countries, each is nevertheless being challenged to become increasingly engaged in the responsibility to offer training for the world of work, and for up-grading the competencies of those already engaged in the world of work, or who are experiencing the tragedy of unemployment. Thus, the responsibility for this area of human endeavour is being greatly broadened within the economy and society of all the countries addressed in the case studies in this publication. And this is a phenomenon that is true the world over. Without doubt, the broadening of this focus will continue as the world economy changes as radically and with the speed that it has over the past decade.

Greater details of these phenomena can be obtained by a study of each of the case studies. It is certain that they will enlighten the readers and lead to closer exchange of information and ideas among the countries that may well result in policies and planning that will significantly benefit education for the world of work.

The Policy Level: Hungary


1. Introduction
Recently, Hungary has undergone a rapid process of economic changes, just as other East European countries have. The historical changes in Hungary have caused new challenges for its labour market and for its technical and vocational education. In recent times, the researchers, planners and decision-makers of technical and vocational education policy have become more and more aware of the correlation between economic transition and human resource development. The education system is regarded as the main channel for social mobility; but at the same time technical and vocational education has encountered difficulties because of the transition of our economy and the new phenomenon of mass unemployment.

Table 1. Total of registered unemployed and registered unemployed school leavers January 1990 to July 1995
One might consider the case of Hungary in connection with the object of developing a competitive market economy, since the concept of technical and vocational education has undergone essential changes and the reforms have already shown first results regarding the adaptation to the new socio-economic conditions. Of course, the reform of the technical and vocational education system is only a part of the solution to these problems. However, this Hungarian case study may still prove to be valuable to others who are also looking for solutions to similar problems.

2. The Period of Transition

After having submitted to the European Union an application for full membership and concluded a treaty of association with the EU in 1995, Hungary has gone through a significant socio-economic transformation process in recent years. The Hungarian economy, which had developed on the basis of central directives for decades, came to a serious crisis in the eighties. The GDP decreased by 20 % between 1989 and 1993 and the annual inflation rate has varied from 15-30 %. From 1990 on, the process of building up a market economy caused a radical redistribution of the ownership of industry and business, but initially, it has caused economic depression and mass unemployment. Youth unemployment is especially high (see Table 1). The 15-24 age group accounts for 16 % of all earners and for 29 % of the unemployed.

Even during the 1980s the Hungarian economy was relatively open to international trade, which, being a proportion of the GDP, has continued to grow, along with the economic reform. The transfer of ownership is reflected in a rapid increase of private businesses in the 1990s. At the end of the eighties the world of work in Hungary was almost exclusively state-owned and consisted of some 2,000 companies. Although private production and trade were part of the Hungarian economy, they accounted for only 5 % of the GDP in the eighties. There are now more than one million enterprises, and the private sector accounted for 60 % of the GDP in 1994. The labour structure in this new environment is as follows: 74 % of the businesses have less than 10 employees. 20 % of them have 11-50 workers and only 6 % of them have more than 50 employees.

The main aim of an economic transformation is to establish the institutions and legal-financial conditions of the market economy. In this regard the development and efficient utilization of human resources has strategic significance for Hungary’s ability to compete in international markets because the country has limited natural resources. As a result of this and of a legal and institutional reform, technical and vocational education has enjoyed accelerating investment.

The Hungarian technical and vocational education system has traditions which reach back to the mid-nineteenth century. Early on it was rooted in German traditions and such classical apprentice training institutions were operating between 1843 and 1948. While the modern forms of a secondary school system have been present since the turn of the century, the attempts to introduce an up-to-date technical and vocational education system that complies with the requirements of a market economy may be considered as a unique model within the eastern European region.

The description of the Hungarian technical and vocational education system is not an easy task because it is undergoing constant changes. The traditional structure (Table 2) coexists with an emerging system formed in accordance with modern concepts and new regulations (Table 3).

Instead of the traditional eight grade general education it is intended that ten year general education will be established by 1998. This ten year general education period will take place in “general schools”, in four-, six-, and eight-form secondary grammar schools and in vocational secondary schools, which already receive 14 year old students. The contents and requirements of compulsory education for the age group 6-16 will be determined by the National Core Curriculum (NCC) that will be introduced in the near future.

The traditional system provided a strong and highly estimated technical and vocational education. This is partly because 75-78 % of general school graduates start further studies in secondary vocational schools. During the past 15 years, the number of technical and vocational educational institutions has been increasing (see Table 4), and their present number adds up to 1,300. Around 400,000 full-time students study in the technical and vocational education system.

It is important to show the present correlation between technical and vocational education and employment because a significant portion of qualified labour is trained in this system (see Table 5).

About 75 % of the workforce that consists of 3.9 million active workers as a whole have qualifications, and a share of 31 % of these is composed of skilled workers and secondary school graduates. University and college graduates account for 15 % forming a major contribution to the relatively good qualification level of the Hungarian work-force. 42 % of the unemployed (the total number is 504,312) do not have any vocational skills and such persons are exposed to the danger of long-term unemployment. The number of unemployed school leavers is 58,804.

In the period from 1990 to 1993, the main concern of Hungarian technical and vocational education was to fill the void left by the liquidation of large companies or by their exodus from the domain of practical training. It is most noteworthy that in the crisis management period from 1990 on the number of trainees at school based training workshops has increased by nearly 40 % while the number of those getting their work experience at company operated workshops or doing on-the-job training has declined by 35 %.

3. The Change of Legislation


The creation of the legal and institutional framework of a market economy required extensive legislative activity. Between 1990 and 1995 the Hungarian Parliament adopted a large number of laws, the majority of which related to economic transition in the following areas:

· Product liability;
· agricultural market organization;
· social protection;
· civil aviation;
· employment;
· Chambers of Commerce and Industry;
· vocational training;
· financial institutions and their activities;
· company law;
· local taxes;
· bankruptcy and liquidation;
· prevention of money laundering;
· excise duties;
· labour code.

The National Training Council (tripartite board for the decision on national vocational training policy-making, NTC) was established by the Employment Act in 1991 and enhanced in authority by the VTA in 1993. It imposes a considerable influence on the better adaptation of technical and vocational training to the economic processes.

Following the decision to introduce a market economy, the necessary legal conditions are gradually being established. Among these the first Vocational Training Act (VTA) was accepted by the Hungarian Parliament in 1993. The basic principles of the VTA are as follows:

· A flexible and differentiated technical and vocational education system should evolve and thus contribute to the development of the economy in compliance with the social processes, the requirements of the national economy, and the labour demand in Hungary.
· In order to assert the right to education ensured by the constitution and to join the work force, young people should be given the opportunity to acquire a first skill and to gain vocational skills as based on the equity necessary for employment.

With some notable exceptions, such as vocational training which qualifies for higher education and/or extra-curricular training in the transport, telecommunication, and water industry, the force of the VTA directed any vocational training at

· the acquisition of a vocational qualification for performing a job, occupation or activity,

· the acquisition of expertise necessary to perform a higher level activity,

· rehabilitative training for the disadvantaged and for those whose ability to work has changed,

· training that is promoting employment and entrepreneurship.

The VTA introduces the National Qualification List (NQL). Vocational qualifications recognized by the State are contained in the NQL. The NQL has to define:

· the name of the vocational qualification,

· the duration of the training required for the acquisition of the vocational qualification within the regular school system, indicating the duration of theoretical and practical training, respectively,

· the prequalification that is required,

· vocational qualifications that may be acquired through individual preparation (home study), moreover

· the Minister who is authorized to determine the requirements of vocational and examination.

The VTA established a new management system of technical and vocational education. The Ministry of Labour (MOL), in conjunction with the Minister who is responsible for vocational qualifications, runs the National Institute of Vocational Education (NIVE) as a central institute of development and services designed to develop the contents of vocational training, to harmonize domestic and international centres of vocational training information, and to coordinate the labour market and regular training. It is responsible for the continuous development of the occupational structure, for national consultations, for organizing further training for teachers, for organizing school competitions, and for innovations.

The VTA has re-established the apprenticeship contract. On-the-job training may also take place on the basis of a written agreement concluded by and between the apprentice and the business enterprise. By virtue of the apprenticeship contract such organizations shall provide on-the-job training for the apprentice for the whole duration of the training. It will be the responsibility of the organizations to promote the vocational development of the apprentice and to ensure adequate protection for his/her health and safety.

In the apprenticeship contract the business enterprises undertake the obligation to provide the apprentice with on-the-job training and education, corresponding to the uniform vocational requirement, that has to take place at a workplace that proves to be safe for the worker’s health. Under the rules of a separate provision of law, the apprentice is entitled to food allowance, work clothes, individual protective equipment (protective clothing), articles for washing, and reimbursement of travel expenses. In addition to this, an apprentice participating in vocational training without an apprenticeship contract is entitled to a remuneration for the duration of continuous vocational practice. The apprentice is to pay 50 % compensation for the value of damages done to the economic organization through his/her negligence.

The Hungarian Parliament passed - almost simultaneously with the VTA - separate acts on public education and higher education. These three laws are on various subjects and of different nature. The Public Education Act regulates the foundation and operation of schools in detail, as well as the students’ and teachers’ rights and obligations. The VTA was defined, with respect to the transformation of the economy, as a frame law. In October 1995 a partial amendment of the VTA was made.

4. Essential Elements of Policy and Legislation

4.1 Regulations and Measures

· Since 1988 business organizations in Hungary have been obliged to turn 1,5 % of their wage costs to on-the-job training in technical and vocational education for youngsters, and to the development of the training resources. This training obligation may be fulfilled by direct or indirect participation through on the job training, or by payment into the Vocational Training Fund (VTF). Organizations may fulfil these obligations through their own facilities, but must specify the full costs and itemize what portion is to be supported from the levy. A training levy may also be spent for training premises, resources and programme development.

· Business organizations offering on-the-job training reclaim such costs as are in excess of their obligations to the VTF. This will encourage companies to participate in vocational training, and will serve for a more equitable distribution among the business enterprises. When costs are reclaimed, account is taken of the scholarship compulsorily provided to the trainees, the trainees’ wages and social insurance contributions, work and protective clothing allowances, transport cost reimbursement, the wages and related contributions of the trainers, and the liability insurance costs in relation to the trainees. The MOL reimburses about HUF 1-1.5 billion, annually from the VTF. The remainder of the VTF - some HUF 1,000-1,300 billion per annum - is the main source for the funding of the development of curricula and course materials for vocational training. Institutions involved in such development and training (primarily the NIVE) seek non-repayable support through national and county grant applications.

· In order to involve small independent businesses in technical and vocational education, the taxation legislation allows these to reduce their tax bases by HUF 18,000 for each participating trainee.

· Between 1991 and 1995 non-repayable state funding of HUF 200 million per annum was provided to local authorities for the purchase of the training facilities of defunct companies. The VTF set aside HUF 850 million to provide interest free loans on a maximum 10 year maturity basis for the purchase of training workshops. A total of HUF 838 million of this amount has already been granted to applicants by the NTC.

· Since 1993 the VTF has provided operating subsidies to those enterprises which conduct practical vocational training as their main activity. In 1994-95 those organizations received cost subsidy of HUF 20,000 per annum and a single HUF 10,000 reimbursement for tools for each trainee, to a total of HUF 150-200 million. These enterprises are the successors of the state owned training infrastructure, now privatized or disbanded, and their transitional state contributes significantly to the problem of identifying the exact status and supply of on-the-job training. By 1995 the number of such organizations was 56 with on-the-job training of 7,212 trainees performed in 57 vocations by 519 trainers. These new type training organizations bear the mark of an emerging market economy, and although they are non-profit making organizations, they are in touch with production and services at a level which is necessary for the on-the-job training of the participants. Since 1992 these organizations have been joined into an association bearing the name “Association of On-the-job Training Organizations”, which undertakes an active role reconciling the conflict of interest in vocational training, and in the solution of professional and economic tasks which arise between training and the world of work.

· Following the occurrence of mass unemployment, Hungary’s employment policy has also undertaken a significant role in the reinforcement of the relations between vocational training and the world of work. Since 1990 the governmental task of directing vocational training has moved from the Ministry for Culture and Education (MCE) to the MOL. The MOL helps the unemployed finding work by maintaining up to date statistic as well as information and employment opportunities. Since 1991 the MOL has produced annual reports on the situation of vocational training. In 1995 the report entitled “Vocational Training in Hungary” was also published in an abridged version in English, French, and German.

· Especially during the past decade, unemployment among youngsters at the beginning of their working lives and the retraining of adults have required an up-to-date legislation. The Employment Act passed in 1991 itemizes the forms of subsidy for young career starters, stressing vocational training, apprenticeship support, and assistance in setting up enterprises. Between 1992 and 1995, one third of the total number of registered career starters and unemployed youth participated in labour market training (25,000-36,000 persons). Basing on the decision of the Labour Market Committee (LMC), which represents employees, employers, and the Government, the costs were covered by the Employment Fund.

· The basic principle of the VTA is to secure the requirements of a market economy for improving the links between vocational training and the world of work. The Act thus promotes the increased participation of business organizations in training. The role and the declaration of interests - from the formulation of professional qualifications, over vocational training and examination requirements, to the participation in the work of examination boards - are guaranteed at legislative level. The social and economic significance of these issues may be illustrated by the fact that the recent amendments of the VTA were supported by all parliamentary parties.

· Regulations concerning the Chambers of commerce are the latest elements in the legislative framework, and are currently being introduced. In accordance with these regulations, three national chambers were established in Hungary by the end of 1994: the Hungarian Chamber of Commerce and Industry, the Hungarian Chamber of Agriculture, and the Hungarian Chamber of Craftsmen. These public institutions, which have regional organizations in all the counties, are important allies of the Government policy of strengthening the relationship between the economy and vocational training. The Chambers of commerce supervise on-the-job training, conclude contracts with trainees, and also represent the interests of a certain trade or profession during qualification examinations.

· The Hungarian Constitution guarantees civil rights and freedoms which are an essential condition for a market economy, since they allow freedom of association and travel which are essential for the formation of businesses and foreign trade. With regard to vocational training, the training levy is a legal obligation, and in fact the nature and extent of participation in vocational training is primarily determined by economic rationality. Irrespective of whether the business organizations are private ones or state-owned, apart from the already specified opportunities to reduce their tax assessment, there are no further benefits offered by the State. Similarly, the Government does not support vocational training in the cases of purchase of assets or employment of staff. In this respect, it is necessary to draw attention to the fact that Hungarian secondary vocational training represents nearly 80 % of the secondary education and is perhaps the biggest subsystem of the entire educational system.

· In order to meet the changing training demands, attention has also been paid to the improvement of the conditions of the vocational training schools themselves. Between 1990 and 1994, due to significant developments, the conditions of training at schools have improved. As a whole, the number of training posts at school-based workshops rose by almost 100 % (see Table 6). It was in these academic years that the ratio to school-based vs. factory-based training posts changed in favour of school-based training. In 1994, 52 % of the training posts in training workshops were offered at schools. The occupancy of training posts has also significantly improved: in 1990 there were 537 training posts available for 1,000 students - who received hands-on training at school workshops - whereas in 1994 they amounted to a number of 627.

· The structural change regarding the conditions of hands-on training inside and outside the schools had its reflection in the number of students who received training at various institutions. Table 6 and 7 clearly demonstrate that, between 1980 and 1990, but even in 1990, around 60 % of vocational trainees received on-the-job training at factory workshops, while after 1990 this ratio dropped very quickly to almost 50% of the previous figure. This change triggered the improvement of the conditions in the schools and, as a result, the number of vocational trainees receiving hands-on training at their own schools has risen by 68 % since 1990.

· In addition to the improvement of hands-on training opportunities in schools, between 1990 and 94 small enterprises and the private sector emerged as major providers of such training posts, and following the schools, these are the second most important places where vocational trainees receive on-the-job training (in 1990 their number was 52,600, 1992 then reached a peak of 62,000 students, today this number has dropped to 54,200).

The ratio of hands-on training provided inside and outside schools - apart from trades that belong to the service sector - has shifted towards training provided at school workshops in almost all economic sectors. The structural change regarding the economic environment and the rapid increase of the number of small enterprises did not equally occur in all economic sectors. Table 8 shows the participation rates in on-the-job training of different types of economic organizations by economic structure.

4.2 Social partners and other agents

In Hungary a tripartite-type National Council for the Reconciliation of Interests (NCRI) was already established in 1988-89. At first it dealt with wage policy and labour law. An institutional structure was only established after 1991 within the framework of the employment policy, and especially in connection with retraining. The present Council for the Reconciliation of Interests (CRI), in which basic labour questions are discussed at the highest level of Government, trade unions, and employers, was established in October 1991, at the time of the so-called “cab strike”.

Vocational conciliation is provided by a tripartite board which equally consists of national representatives of employees and employer associations, the chambers of commerce and industries, and of the Ministers who are responsible for vocational qualifications.

The Labour Market Committee (LMC), which consists of the national trade union confederations, the national employer alliances, and the Government, was established in 1991 according to the general scheme of the reconciliation of interests, at the time when mass unemployment emerged. The National Training Council (NTC) was established at the same time under the Employment Act and enhanced in authority in 1993 through the Vocational Training Act (VTA). The main function of the NTC is to manage training resources which have been received from the Employment Fund. In addition to a special horizontal division of work, it also started a vertical one. The horizontal aspect of its character is due to the fact that the LMC hands-on training resources of the Employment Fund to the NTC under certain conditions, and regarding its vertical aspect, in the course of operating the decentralized Employment Fund, training became one of the most dynamically growing instruments of employment policy. In the tripartite organizations with special roles of employers, employees, and local governments, resources are allocated through the county labour boards.

From 1991 to 1994 the majority of training resources, about 90 %, were channelled through the Employment Fund. This meant that the social partners were able to manage these resources at county level within the frame of the county employment policy. At that time training resources were distributed on the basis of tenders. These tenders were managed by the labour administration, the County Labour Council, and the decisions which were brought by the County Labour Board as a result of the tender preparation. The participation of social partners both in the identification of needs and the implementation had a serious purpose within the framework of the NTC. Laws which are concerned with to training are elaborated by the National Qualification List (NQL), which includes the special qualifications recognized by the State, and are also compiled, expanded or reduced by this organization. Apart from that, the NTC also manages central tenders, which generally represent almost 10 % of the training expenses, with an annual cost of HUF 500-400 million, and supervises World Bank programmes; therefore the nine Regional Manpower Development and Retraining Centers (RMDRCs) were established.

The organization referred to as the Supervisory Board of the RMDRCs is not characterized by the self-organized, tripartite-type participation of social partners in training. Similar to the North-American model, the request for membership on the basis of a preliminary consultation has some tripartite character, since employees’ representatives also have a role next to the employer and the chamber organizations. The decision mechanism and the board membership organization type is not characterized by the classical tripartite form. The task of these supervisory boards involves the evaluation of the regional training processes, the determination of the training specialization of the training institutes, the preparation of the annual budget, and the evaluation of the activity of the training center.

In Hungary, the participation of social partners in this programme is not just a formality. They work very intensively in the committees. The law grants significant powers to the boards, authorizing them to make financial and operational decisions. Often this entails serious debates. In addition, certain related features can be found. On the one hand, responsibility for employment programmes and, more significantly, the financial powers of the LMC and the NTC, which are further concentrated through the county labour boards, gives rise to certain conflicts. On the other hand, in spite of the relatively large number of organizations which are involved, the role of the social partners in evaluating training procedures is restricted to follow-up examinations, a fact due to criticism which has been revealed by the different governmental tests and that is not always reacted to, and feedback is very uncertain in this institutional system.

In 1995 social partners began to deal with the question of how to optimize financing of the reconciliation of interests and of training and labour market procedures, what caused a considerable debate. One reason for the change is that employment policy resources have generally been reduced, and such budget restrictions limit the means of implementing the employment policy.

In the current debates, people tend to keep the classical tasks of the reconciliation of interests - conception development, strategy planning and evaluation - within a national framework. At the same time, the majority of operative functions would be transferred to bodies with the chambers, or at certain level, the local governments also participating. Just like the related changes in law and statutes, these debates are in their initial stage. However, several elements of the system which has been described above are expected to be modified in 1995.

In Hungary the training system for unemployed people developed very fast during the last 4 to 5 years. This development was significantly affected by a dramatic change, the emergence of mass unemployment, as well as by an educational training culture which has extremely rich traditions and operates institutions which also have a long history in the field of special training. In each of the last two years about 2.5 % of the active earners and more than 20 % of the registered unemployed people entered the training and retraining system. In Hungary training is a means of employment policy and affects most people.

It is obvious that the training function and its effectiveness is continuously being debated by those who are involved in employment policy and by those who deal with technical and vocational education, i.e. the labour force development. In spite of this, the social needs of both individuals and employers, as well as the endeavours made by all economic sectors clearly demonstrate that in Hungary this development is taking place with different interests clearly being involved and represented.

The role of the Government in Hungary was significantly transformed at the time of the formation of a market economy. The main governmental responsibility is borne by the MOL, and the VTA clearly defines its coordinating role within the specialized training system as a whole. Since training in Hungary basically has an exit/exam/qualification character, the Ministries which are involved are also responsible for the quality of professional qualifications. This also applies to the regulation of the content and the administration of examinations. Beyond governmental responsibility, local and county governments have a certain degree of responsibility regarding the field of technical and professional education, especially in the maintenance of schools.

The linkage of training to the world of work is an exclusive course of the Government and local governments. Although for many decades only the Government held the only position of importance in professional training, during recent years new actors have appeared on the scene and exerted a greater and greater influence on the transformation of technical and professional education.

Judged by its impact, the role of the employers in technical and vocational education seems to be modest. As we have described in the part about the legislation and the VTF, the employees try to represent their interests mainly by financial means. This finds its direct expression in the provision of practical training and/or, an indirect one in the financing of school based training. Although the employees have participated in reconciling conflicts of interest, their role as initiators of this process was only reinforced in recent years. This is related to the creation of economic chambers as well as to the public tasks in the field of professional training, such as the like registration of apprentice’s contracts, participation in the qualifying commissions, and a country-wide contribution in the support in the area of professional education.

The role of the trade unions in the process of the transformation is significant. This mainly effects the economic restructuring that has resulted in a negligible role of the unions in regard to Small and Medium Enterprises (SMEs), in spite of the fact that in these organizations the expansion of employment and the introduction of new technologies are actually being brought about. At the same time the trade unions which for exactly this reason are directly concerned with the declining industries and services, not least in the educational system, have an interest in slowing down a change, and they behave in a way which is appropriate for this purpose; this also applies to the harmonization of interests in professional education. Typical conflictive topics are: the security of employment of teachers who already work in educational institutions and/or the protection of state-owned institutions from the impact of the market.

4.3 The Content of Technical and Vocational Education and the Certification

In Hungarian technical and vocational education there are a traditional curricula regulation and qualification system as related to the examination. Until 1993 technical and vocational education was uniform. Uniform curricula and training periods were applied to the training of apprentices as well as to secondary education. However, the introduction of the NQL in 1994 has transformed the system of state-recognized vocational qualifications into a differentiated qualification system, which is more flexible as to adapting to the market requirements. The essence the of high-level regulation is summarized in the following:

· The current development of technical and vocational education programmes is a rather peculiar one in Hungary. The curricula, which once used to be fairly uniform in structure, are more varied now in terms of content because in the NQL more and more differentiated vocational qualifications appear, but also in respect of the time devoted to theory and practice. The period of training varies from 500 to nearly 3,000 hours, with the ratio of theory to practice varying between 15 : 85 and 60 : 40. Being the most important feature of retraining, the so-called competence-based modular training programmes are adopted to an increasing extent. In respect of coping with people of different ages and with different qualifications as well as work experience, these programmes have been very successfully adapted for vocational retraining, thus having quickly reacted to their users’ needs.

· The NIVE, which is engaged in the development of the vocational qualification system, employs about 80 outside consultants from school staffs, in addition to some 100 fellow-workers of its own, who work on the maintenance of the NQL as well as on coordinating the elaboration of central criteria and programmes. The institute is in charge of the coordination of the development of the system of roughly 2,300 different types of text-books for vocational training. It is also responsible for the distribution of these text-books on appointment by the competent ministries. As a result of these activities and also to the establishment of a technical and vocational education information centre in 1992-93 by the help of the Poland and Hungary-Assistance for Restructuring the Economy (PHARE), the NIVE Programme is in direct contact with the technical and vocational education institutes.

· It is an essential criterion for both central and local technical and vocational education programmes that they meet the examination requirements which are made public by the vocations. This aspect is monitored by an examination committee, which is technically independent from the institute which runs the vocational training. The committee consists of a chairman, who himself holds the vocational qualification which is concerned and is appointed by the responsible Minister, and at least two other members, who are delegated by the Chamber of Trade and Industry and the vocational organizations which are involved.

· Certificates of technical and vocational education, which are recognized by the State, are issued after an examination which is taken in institutions that are designed for such professional training examinations. The exams are monitored by an outside examination commission, whose chairman is a person who has the necessary professional qualifications and is appointed by the Minister who is responsible for this NQL qualification. Another member of the commission is the person who is appointed by the relevant Regional Economic Chamber. The examination commission consists of at least three members. Its professional work is legally delineated from the activities of the specialized educational institution. According to the NQL issued in 1994, about 370 different vocational qualifications can be obtained in technical and vocational education institutes. The number of qualifications that are recognized by the State and can be obtained in retraining and further education within the labour market training system, amounts to about 500; for all of them, the examination procedure is the same.

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