Pillar 1 study Financing Models Brussels, April 3. 2012 AFT-IFTIM

1. Pillar 1 study Financing Models Brussels, April 3. 2012 AFT-IFTIM

2. Compulsory traininggeneratescosts. Withoutfunding, training costs are seen as a burdenwhileit must beviewed as an investment inhuman capital. Review of fundingmechanismsinvolved or not all stakeholders Whatisatstake ?

3. The costsindicatedrefer to fees (training sellingprices) applied to candidates withoutfunding. ComparisonamongMember States is not appropriate due to differences in living standards Initial qualification averagecostsin Europe in option test onlyMember States

4. Initial qualification costs in MemberStates withcompulsory training and test option The costsindicatedrefer to training sellingpricesapplied to candidates withoutfunding. The hugedifferencescouldbeexplained by differences in living standards.

5. Funding of initial qualification • Initial qualification couldbeobtainedwithtraditionalvocationalschemes (apprenticeships). • Within the compulsory training and test option brought by the Directive, public fundingexists in someMember States: • Luxemburg: as agreedbefore transposition of the Directive, the State covers the costs. • In Finland, France, Spain, …employmentpolicies have set up financingmechanismsaiming to bear the costs of the initial qualification for job seekers. But, as reflected by questionnaires collected, in a few Member States, the driver has to pay for her/his initial qualification: Romania, the CzechRepublic, Poland, ….

6. Periodic training costs in Europe Periodic training averagetariffs (withoutfinancingmechanisms) range froman average of 70 € in Romania to 1000 € in Luxemburg. Comparisonis not appropriate due to differences in living standards.

7. A dichotomy in funding practices of vocational training in Europe (1/2) • A broadvariety of situations co-exists in Europe: the State, the companies and/or the drivers contribute to finance the periodic training. • In Member States that have a long tradition in vocational training involving also social partners: • Fundingmechanisms of vocational training existedbeforeimplementation of Directive 2003/59, mechanisms inwhichcompulsory training have naturally found their places; • Denmark, the Netherlands, Spain, France, …

8. A dichotomy in funding practices of vocational training in Europe (2/2) • In Member States where vocational training systems are under development, funding are based on the driver and/or the company: in Estoniaand Romania (and easternMember States), in most cases, the driver bears the cost but ithappensthat the company and the driver shareitunder conditions • Other States have set up specific mechanisms resulting from the consultation : in Luxemburg, periodic training costs are sharedbetween the State (1/3) and the company (2/3)

9. The funding of initial vocational training in France • Training is financed by the companies, the regions and the State. • Companies contribute for 0,5% (taxed’apprentissage) of the company’s gross total payroll (total wage and salary cost) to a fund for professional training. • The contribution depends on the number of employees in the company.

10. The funding of periodic training in France • All employers contribute to a fund for professional training (periodic training). • The contribution depending on the number of employees is calculated on the basis of the company’s gross total payroll.

11. The funding of drivers compulsorytraining in France • This tax is levied when issuing vehicle's registrations. • The tax is based on the category of the vehicle. • The proceeds of the tax are used for the development of the qualifications and for the funding of compulsory training. 34 € 127 € 189 € 285 €

12. The funding of training in Belgium • The Fonds Social Transport et Logistique contributes to the drivers’ training within the collective agreement (CCT). • It supports training costs of the workers reported to the ONSS. • To obtain a C driving license, for example, the contribution of the FSTL could go up to 700 EUR. • For the basic training in driving school and legal examinations for the driving license Cat. EC: maximum 950 EUR. • For the Certificate of Professional Competence Group C: maximum EUR 500. • These amounts are cumulative.

13. The funding of training in Belgium • The Fonds Social Transport et Logistique provides an annual training budget for each company within the collective agreement for workers reported to the ONSS (CCT). • The company can benefit from funds from the FSTL for its drivers training if its training plan has been approved by the FSTL before attending the training. • To obtain a C driving license, for example, the contribution of the FSTL could go up to 700 EUR. • For the basic training in driving school and legal examinations for the driving license Cat. EC: maximum 950 EUR. • For the Certificate of Professional Competence Group C: maximum EUR 500. • These amounts are cumulative.

14. The funding of vocational training in Denmark Initial qualificationcan be obtained through 2 ways : • 3-year apprenticeship: free of charges for apprentices who are paid during the contract period from public funds; • AMU program (Adult vocational training): theparticipant pays app. 80 Euros per week, the rest is financed by the state from the 8% labor tax, plus funding deriving from compulsory payments from the companies (the AER-payments). AMU financing is based on a tripartite procedure (State, employer and trade-unions): contributions are paid into an Employer-Trainee-Fund (AER) jointly administered by the employers and the trade-unions. The fixed tax collected by State represents around 350€/employee/year.

15. The costs of drivers compulsory training in Denmark Initial training Periodic training People without further education than a vocational training: 79 € Compensation for lost salary 409 € People with further education than vocational training: 654 €No compensation for lost salary People without further education than a vocational training: 472 € Compensation for lost salary 2.452 € People with further education than a vocational training: 3923 € No compensation for lost salary

16. Financing model in Spain:the keyrole of the Tripartite Foundation for Employment and Training • The Tripartite Foundation is responsible for public policies related to employment and vocational training. It involves: • representatives of autonomouscommunities; • workersrepresentatives; • Employersrepresentatives. • the Tripartite Foundation administers the system for allowances for training demand by companies and the justification process for the allowances;

17. Spain - Tripartite foundation funds • Tripartite foundation funds that are fed by a contribution of 0.7% collected through the social security system (company 0,6%, employee 0,1%) are the most requested financial means: 60% of collected funds finance job training for the unemployed and 40% is dedicated to continuous training. • Training for Employment aims at retraining unemployed workers and continuing training for the employee

18. Financing model in Spain • Initial qualification throughcompulsory training and test benefitsfrom Tripartite foundationfunds and isalso free for traineesthat have topay the administrative taxes (19€) related to the exams and the issue of the CPC license (33€). • Periodic training for employees could also benefit from Tripartite Foundation funds if training plans elaboratedtogether by workers’ representatives and employers representatives have been approved. Companies could deduct the total cost of training from its following monthly Social Security payment, in a certain limit.