document resume ed 353 369 ce 062 646 · document resume. ce 062 646. hallock, margaret, ed. worker...

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CE 062 646

Hallock, Margaret, Ed.Worker Education and Training in Oregon: The

Chal:enge for Labor. Report of AFL-CIO Committee on

Worker Education and Training Adopted by the 37th

Annual Convention of the Oregon AFL-CIO.Oregon Univ., Eugene. Labor Education and Research

Center.Oregon State Economic Development Dept., Salem.

2 Jun 9251p.Viewpoints (Opinion/Position Papers, Essays, etc.)

(120)

MF01/PC03 Plus Postage.Apprenticeships; *Educational Change; EducationalPolicy; *Education Work Relationship; FederalGovernment; *Job Training; *Labor Force Development;Postsecondary Education; Private Sector; PublicPolicy; P,Jblic Sector; Secondary Education; State

Government; *Unions

IDENTIFIERS AFL CIO; *Oregon

ABSTRACTOrganized labor in Oregon supports a high-skill,

high-wage economic development strategy. The Oregon AFL-CIO Committee

on Worker Education and Training has made policy recommendations that

support this strategy. The Oregon AFL-CIO believes that fundamental

reform of education is needed and recommends the following: emphasis

on a high level of academic training to all students, a broadcurriculum, student exposure to a variety of jobs, carefully

structured youth apprenticeship programs, and labor involvement in

educational reform. It encourages adoption of the apprenticeship

model and recommends support and strengthening of current

apprenticeship programs and expansion of the concept to new

industries and jobs. The Oregon AFL-CIO believes the state should

increase its investment in the current work force and improve

training opportunities for dislocated workers, with labor playing a

key role. It urges state and local governments to adopt a high-skill

approach as they reorganize the delivery of public services. The

Oregon AFL-CIO believes it has a role in changes in worker training

and education at the firm level in the private sector. (Appendixes

include the following: a 17-item bibliography, resolution to

establish the committee, "The Eight Key Elements of High Performance

Work Systems" by Ray Marshall; "Union Perspectives on New Work-Based

Youth Apprenticeship Initiatives" and "Essential Elements of Model

Youth Apprenticeship Programs" by Carol Shenon; "The Meaning of

Apprenticeship"--a policy recommendation; and information onstate-funded worker training programs.) (YLB)

**********x************** ************** * *********** **** *x*************

Reproductions supplied by EDRS are the best that can be madefrom the original document.

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WORKER EDUCATION AND TRAININGIN OREGON:

THE CHALLENGE FOR LABOR

U S. DEPARTMENT OF EDUCATIONOffice of Etlucalodnal Research and Improvement

EDUCATIONAL RESOURCES INFORMATIONCENTER (ERIC)

ct Tn.s document has been reproduced as,ecen.ed ?MT the person or Orparuzattnnond.nalIng

C Mmor changes have been made to MprOveredroduct.On Ovahty

Points Ot new W disredne Stated tn this doc,ment do not necessanty represent otfictalOERI PoS.Ion or policy

PERY T C C,LP E 'HISMAI.ER!A, to BEEN GRAN? EL' ESN

I\ A_

10 THE EDUCATIONAIINFORMATION CENTER ERI

Labor Education and Research CenterUniversity of Oregon

COPtitY

WORKER EDUCATION AND TRAININGIN OREGON:

THE CHALLENGE FOR LABOR

Report of AFLCIO Committee on Worker Education and Training

Adopted by the 37th Annual Convention of the Oregon AFLCIO

June 2, 1992

Published by the University of Oregon

Labor Education and Research Center

in cooperation with the Oregon AFLCIO

Iry Fletcher, President

Brad Wit, Secretary-Treasurer

This publication was made possible by a grant from the Oregon Economic DevelopmentDepartment.

3

4

ACKNOWLEDGEMENTS

This report was written by the Oregon AFLCIO Committee on Worker Education andTraining. The Committee was chaired and facilitated by President Iry Fletcher and BradWitt, SecretaryTreasurer. The Committee received substantial assistance from members ofthe faculty and staff of the Labor Education and Research Center, including MargaretHallock, Steven Deutsch, Marcus Widenor, Ev Gibbons, and Jerry Donnelly. Norma Saxassisted with publication of the document.

This report is part of a grant from the Partnership Division of the Oregon Department ofEconomic Development to LERC to conduct education and training in the Oregon laborcommunity on the issue of workforce development.

EDITORMargaret Hallock, Director, Labor Education and Research Center, edited the document forpublication.

4

1 0

Page

Preface v

Chapters1. Introduction and Summary 1

2. Education Reform and the School-to-work Transition 6

3. The Role of ApprenticeshipPrograms 10

4. Publicly Funded Programs inWorker Training and Programs forthe Public Sector 13

5. Enhancing Private Sector Effortsin Worker Training and Education 17

Selected Bibliography 21

Appendices

A: 1991 Resolution to EstablishCommittee 23

B: Ray Marshall's Eight Key Elements ofHigh Performance Work Systems 24

C: Final Comments from "Union Perspectives onNew Work-Based Youth ApprenticeshipInitiatives" 26

D: Essential Elements of Model YouthApprenticeship Programs 27

E: The Meaning of Apprenticeship: When andHow to Use the Term 31

F: State Funded Worker Training Programs 35

G: Worker Education and Training Committee MembersResolutions 39

iii

In 1991, the Oregon Legislature passed theWorkforce Quality Act and thereby becameone of a few states to adopt the highwage,highskills strategy to revitalize theeconomy. An integral part of the strategy isto strengthen the capacity of labor andbusiness to deliver workforce education andtraining programs and to participate in thestate's efforts.

The new state strategy poses a challenge tothe Oregon labor movement. Labor is in-volved in the development of policy, withrepresentatives on the new state levelWorkforce Quality Council. And labor iscritical in the implementation of worksiteeducation and training as well as publiclyfunded programs for dislocated workersand new entrants to the labor force. Labor'sexperience in apprenticeship programsprovides a sound grounding for Oregon'snew youth apprenticeship programs. Wenow need an organized strategy to channelthis expertise into new programs for Oregonworkers.

The Oregon AFLCIO and the Labor Educa-tion and Research Center at the Universityof Oregon have collaborated to build acoherent platform for Oregon unions on theissues in this complex arena of workforcedevelopment. They have been aided in thiseffort by a grant from the Partnership Divi-sion of the Oregon Department of EconomicDevelopment (OEDD), the agency chargedwith building the partnerships among labor,business, and government that are called forin the Workforce Quality act.

A Conference on the High SkillsStrategy

These partnersLERC, the Oregon AFLCIO, and the OEDDcosponsored a con-ference on February 22, 1992, for tradeunionists in Oregon to begin to build aplatform and agenda on workforce devel-opment. Over 150 trade unionists attendedthis conference titled "High Skills or LowWages? Setting a Union Agenda onWorkforce Training and Skills Develop-ment."

The keynote speaker was former Secretaryof Labor Ray Marshall, the 1992 WayneMorse Professor of Law and Politics at theUniversity of Oi egon. He presented thefindings of the Commission on the Skills ofthe American Workforce, which he cochaired. These findings were published inthe seminal report, America's Choice: HighSkills or Low Wages! Marshall painted agrim picture of the decline of the U.S.economy during the last two decades,including lower wages and rising inequal-ity. The major deficit, according toMarshall, is a lack of investment in ourworkforce. The U.S. invests far less in theeducation and training of its current andfuture workforce than our competitors inEurope and Asia. As a result, our manufac-turing processes often do not utilize lead-ing edge technology. Marshall urged laborto take a leadership role in worker educa-tion for two reasons. First, the future of theAmerican workforce depends upon it. Andsecond, successful education and trainingprograms require a truly joint approach inwhich workers are well represented andorganized.

6

Preface

This theme was echoed by Jan Mears,Executive Director of the British ColumbiaNurses Union. She explained the approachof Canadian unions to new technology andnew forms of work organization. Unionsmust come to grips with these develop-ments by pursuing a high-skills approachand becoming advocates for workers todevelop their skills and talents. DanMarschall of the AFL-CIO Human Re-sources Development Institute, the thirdkeynote speaker, described pilot appren-ticeship programs in the aerospace andhealth care industries, concentrating on thebenefits to unions of these sophisticatededucation and training programs.

The conference included a number of work-shops on specific topics such as developinga basic skills program, apprenticeships, andissues in the public sector. Discussantsreported back the need for action on a fewkey points:

Labor needs an overall scrategy on skills,one that is pro-active and makeseducation and training for workers ahigh priority for unions. Workers can beempowered by an aggressive approach toskill formation.

* Unions should begin by surveying themembership regarding education andtraining needs and by analyzing theirindustries for new developments inproduction and technology. Unionsshould become the expert on training formembers and not cede it to managementand education professionals.

* Resources are needed, includingtechnical assistance in bargaining anddeveloping programs, research on bestpractice, and funds for leadership andstaff development, especially in jointlabor-management and communicationsskills.

* Unions have vast exc 'rience in educationand training, especially inapprenticeship. This experience shouldbe translated to developing newapprenticeship programs and careerladders in industries other than thebuilding trades.

* Labor should support Oregon'sdeveloping workforce policy and pushfor new funds and joint labor-management initiatives for setting skillstandards and training programs.

The AFL-CIO Committee on WorkerEducation and Training

These comments from participants at theconference on High Skills or Low Wageswere forwarded to a new committee of theOregon AFL-CIO. This committee deliber-ated for six months and produced thereport which follows. The report wasadopted by the 37th Annual Convention ofthe Oregon AFL-CIO along with threeresolutions calling for training of laborrepresentatives on workforce quality com-mittees, new joint labor-managementapproaches to education and training, anddevelopment of a fund for workforce train-ing geared to the needs of each industry.

The members of the Committee on WorkerEducation and Training and the resolutionsadopted by the 1992 convention are pre-sented in Appendix G of this document.

This document thus represents the positionof organized labor in Oregon on workereducation and training. It supports a high-skill, high-wage strategy and calls for anaggressive set of programs to promote fulldevelopment of the skills of the Oregonworkforce.

Margaret Hal lock, DirectorLabor Education and Research CenterUniversity of OregonAugust 5, 1992

vi

CHAPTER 1

INTRODUCTION AND SUMMARY

The State of Oregon is embarking on majorinitiatives and policy regarding workereducation and training. The 1991 Legisla-ture passed legislation designed to alter ourpublic schools and our workforce trainingprograms. The Oregon AFLCIO at its 1991convention established a new standingcommittee, the Committee on WorkerEducation and Training to develop a laborpdsition on the issues involved in the Or-egon legislation and the national debate onworker education and work restructuring.(See Appendix A.) This document presentsthe recommendations of this committee.

High Skills or Low Wagt:s?

The United States is at a critical juncture.First, the economy is changing: we facemore competition both globally and athome through deregulation and other freemarket policies of the ReaganBush era.Second, technological change continues torevolutionize production and redefineswho is competitive almost weekly. Nobusiness or organization can long afford toignore international changes in technologyand its use. Also, government at all levels isbeing restructured. Budget deficits and taxreform are like global competition for theprivate sector. In addition, major demo-graphic shifts are having an impact on theworkforce. Thus, our jobs are changing andthe workforce is changing.

What strategy should the U.S. adopt as itfaces global economic competition andtechnological change? One strategy is tocompete by cutting costs, primarilywagesthe lowwage strategy. This usu-

1

ally means cutting production costs bycontracting out jobs, moving jobs overseasto lowwage markets, using technology todeskill jobs, and by using a contingent,parttime and temporary workforce.

The alternate strategy emphasizes en-hanced productivity and quality to competein world markets and domestically. Itrequires a highly skilled workforce, onethat uses leading edge technology and isempowered to control quality, solve prob-lems, and continuously improve technologyand production processes. This is the highskill, highwage strategy, and it has beenadopted by most of our competitors inEurope and Asia. The critical ingredients ofa highskill approach are worker participa-tion and a sincere commitment to continu-ous skill improvement through educationand onthejob training.

Who would want to win the low wagestrategy? There is evidence that the U.S. ison this path, and that it is leading to areduced standard of living and undesirablejobs. We have experienced declining realwages since 1974. We are replacing highwage manufacturing jobs with lower wageservice jobs. More people are workinglonger hours, but the middle class contin-ues to lose ground.

Requirements of a HighSkillsStrategy

A highskill strategy requires collaborationamong business, labor, and governmentand a dedication to worker education andtraining. Briefly, a highskill approachwould require:

Chapter 1: Introduction

businesses to seek skilled workers,upgrade jobs, provide training, andto spurn low-wage quick fixes;

unions to make education and train-ing a priority and to bargain newprograms, such as apprenticeship orcareer ladder programs;

a culture at the workplace that em-powers front-line workers andaccepts unions as important part-ners; and

public policy that ties education andtraining to economic development,that places priority on an improvingstandard of living, and discouragesuse of contingent workers and otherlow-wage tactics.

Former United States Secretary of LaborRay Marshall has written extensively on therequirements of the high-skill, high-wagestrategy. He summarizes the eight keyelements of high performance work organi-zations in Appendix B.

New Policies in Oregon

There is a good deal of national and statedebate and policy on these issues. The HighSkill, Competitive Workforce Act of 1991has been introduced in Congress, andOregon is marching ahead on policiesrecommended in America's Choice: HighSkills or Low Wages!, the report of the Com-mission on the Skills of the AmericanWorkforce. The main parts of Oregon's newpolicy include:

education reform which stressesschool-to-work transitions and moresophisticated general and technicaleducation;

coordination of publicly fundedworker training programs such as

JTPA and dislocated worker pro-grams; and

policies to encourage private sectorinvestment in worker education andtraining, development of high-performance work organizations,and new partnerships between laborand management.

While efforts to reform the secondaryschool system will greatly improve theskills of future workers, the fact is that 75%of those who will be working in the next 15years are already out of school and em-ployed. Therefore, a major effort must bemade to upgrade the skills of those alreadyat work.

The most visible aspect of the policy is theappointment of a new Workforce QualityCouncil to oversee education reform and tocoordinate workforce training programs.This Council includes the heads of majoragencies, the Chancellor of Higher Educa-tion, the Superintendent of Public Instruc-tion, and representatives from labor, busi-ness, and community organizations. Thelabor appointees are Wally Mehrens of theColumbia-Pacific Building Trades Council,Andrea Dobson of Amalgamated TransitUnion, and Margaret Ha llock of the LaborEducation and Research Center a t theUniversity of Oregon.

Labor's Position in Oregon

Labor in Oregon and the national level havebeen deeply involved with this issue overthe last decade. Representatives of laborwere motivated to participate on the Na-tional Commission on the Skills of TheAmerican Workforce by being on thefrontlines of industrial restructuring andworkplace change. The 1983 report "TheFuture of Work" by the AFL-CIO Commit-tee on the Future of Work was a forerunnerof many studies to follow. It recognized the


impacts of technological, occupational anddemographic change. It recommended"human resource and productivity devel-opment through better education, training,retraining, upgrading and upward mobilityopportunities for all workers both em-ployed and unemployed."

That was the essence of the vision pre-sented by Ira Magaziner to the OregonLegislature for our choice of "High Skills orLow Wages." The National AFLCIO aswell as individual unions such as theAmerican Federation of Teachers, theUAW, the Sheetmetal Workers, and AF-SCME have endorsed the recommendationsin America's Choice.

The Oregon AFLCIO at its 1991 conven-tion established a Committee on WorkerEducation and Training. This committeemet monthly from December, 1991 to June,1992, and several subcommittees were alsoactive. This section summarizes the conclu-sions of this committee regarding the posi-tion of organized labor on Oregon's eco-nomic development strategy.

1. The future of the American worker andunions hinges on maintaining highskilljobs that provide a living wage forworkers and their families. Therefore,unions must support the highwage,highskills economic developmentstrategy.

The economic crisis facing U.S.workers stems from the lowwagestrategy. We must reverse the trendin jobs and incomes. One critical .

ingredient will be maintainingskilled jobs in the U.S. This willrequire both education and trainingand a new economic developmentstrategy.

We will not reverse our decliningunion membership with lowerwages and worsening workingconditions. Unions in other countrieshave discovered that strong unionsare essential to a highwage strategyand that workers benefit from up-grading skills, giving more latitudeto frontline workers, and utilizingworker knowhow to improve theproduction process. Further, techno-logical change becomes moreworkerfriendly in a highskillproduction process rather thanleading to layoffs and duller jobs.

Unions must support full employ-ment policies and other policiesdesigned to take labor out of compe-tition and promote equity. Aworkercentered strategy will not besuccessful without meaningfulmacroeconomic strategies that pro-mote economic justice along witheconomic growth.

2. This means that unions must adopt proactive policies and programs on newtechnology, work organization, andother characteristics of "highperfor-mance work organizations."

A union position would call for arole for strong unions and workerparticipation in critical areas ofdecision making. For example,unions in Australia have formulateda union strategy linking skills train-ing, work redesign, and economicdevelopment. Consider the follow-ing positions of the Australian Coun-cil of Trade Unions:

To maintain and improve livingstandards, Australia requires ashift from low value added, lowskill, domestically orientedproduction to higher value


added production and servicesdirected towards the globalmarket. This can only beachieved through a continuousprocess of employees adding totheir learning and responsibili-ties in new forms of work orga-nization and professional devel-opment throughout a workinglifetime.

Workers must be provided withgreater scope for individualinitiative, judgement and re-sponsibility for quality out-comes. The nature of manage-ment and supervision mustchange from an emphasis oncontrol and direction to onewhich coordinates and developsthe skills and potential of allemployees.

These changes will not be easy.Many of our union structures reflectthe Tayloristic structures of manage-ment, and organizational change canthreaten established structures andcontracts.

3. Unions should promote continuous skillformation for workers and make theworkplace a learning place.

Enhancing productivity must beworkercentered. New technology isabundantly flexible, but the mostimportant element in productivitygrowth is the worker. Therefore, theknowledge and skills of workers arethe most important element in ahighwage economy.

Specifically, we adopt the followingpropositions put forward by theCanadian Labor Movement:

4

Training is a right. This rightshould be universalthat is,available, without barriers toall workers.

Training is a fundamental partof a job. Workers should haveaccess to training duringworking hours with full pay.

Training is a tool for greaterequity. It is a tool for overcom-ing the particular inequities inthe labor market faced bywomen, visible minorities,native Americans, the dis-abled, and lowerpaid work-ers.

Workers and their unions musthave a central role in determin-ing, at all levels, the directionof training.

Unions should establish a workereducation and training committee ineach local to assess needs and imple-ment new programs.

4. Workplace education and trainingprograms must be workercentered.They should:

take into account all of theneeds of the worker, includ-ing needs for learning andsocial support systems;

involve the union in curricu-lum and assessment;

be broadbased and includeimportant subjects such asstrategic planning, industrialand economic analysis, andcommunications and prob-lemsolving skills; and


reflect teaching techniquesdesigned for adults.

5. Unions have a responsibility to ouryouth to participate in education reform.

Oregon public schools are beingoverhauled along the lines suggestedin America's Choice. The curriculumand teaching method will be exten-sively altered. Unions should beinvolved in order to assure that thecurriculum meets the needs of ouryouth in the areas of personal devel-opment, promoting appreciation ofparticipative democracy, and anunderstanding of labor unions andcollective activity, in addition toproviding enhanced professionaland technical training.

Unions should also assist in develop-ing structured work experience inunion shops and social service agen-cies, and unions should help withthe schooltowork transition for ouryouth.

6. Unions have a long history of successfulapprenticeship programs. These shouldbe protected and become the model fornew programs.

The apprenticeship model is nowrecognized as perhaps the mostsuccessful model of worker training.Its success is due to the joint ap-proach, the maintenance of highstandards, connecting learning slotsto a job, and the combination of onthejob and classroom learning.

This model has important lessons forother industries. It would be helpfulto model certification and careerladder programs after apprentice-ship programs. However, only trueapprenticeship programs should be

given the name apprenticeship, ;-ndwe must be sure to protect currentsuccessful programs.

7. Current publicly funded programs areinadequately funded and coordinated.

The AFLCIO supports Oregon'sefforts to better coordinate federaland state training programs. Werecommend enhanced training fordislocated workers.

Labor representatives should beincluded on all state and regionalWorkforce Development Commit-tees, and they should receive train-ing on Oregon's policies and the roleof labor.

8. Unions should support education trustsor other new funds in order to broadenworkplace learning programs.

In cooperation with affiliates, theOregon AFLCIO should studyemployer assessments, joint trustsand the use of the unemploymentinsurance mechanism to providenew resources for training. U.S.employers currently underinvest ineducation and training relative toother indust,_ ial nations, and weneed to find ways to reverse this.

The Committee recognizes that it isessential for labor to develop alliesamong private sector employers inorder to pursue a comprehensivestrategy for workplace educationand training. Both employers andunions need to place more emphasison education and training and de-velop the organizational capacity todeliver worldclass training pro-grams.

CHAPTER 2

A

Background

The State of Oregon is in the process ofimplementing legislation that will restruc-ture its public schools. The education re-form is part of a larger strategy to producethe best educated citizens and workforce inthe nation and equal to any in the world by2010.

The main features of the education reform(often referred to as the Education Act forthe 21st Century or the Katz Bill) include:

1. Renewed emphasis on early child-hood education, including higherlevels of support for preschool edu-cation such as Head Start and un-graded primary schools.

2. Restructured public high schoolswith ali schools offering a Certificateof Initial Mastery (CIM) at age 16,with requirements for the Certificatebenchmarked to world standards.

3. After the CIM, students would worktowards a Certificate of AdvancedMastery at high schools and commu-nity colleges. Students would con-centrate in one of six strands, such ashealth and human services, and allstrands could lead to work, appren-ticeship, or enrollment in highereducation.

4. The bill places emphasis on profes-sionaltechnical education andstructured work experience for highschool students.

6

The many details of the reforms are cur-rently under discussion by education pro-fessionals, and there are six pilot projects inhigh schools.

Labor's Position

The Oregon AFLCIO supported the educa-tion reform bill in general. In testimonybefore the Oregon Legislature, President IryFletcher stated that labor supports the billbecause it believes in the value of work andopportunity for all students to succeed andbecause the bill recognizes the importanceof employment after education.

Labor believes that fundamental reform ofeducation is needed for several reasons:

Our education system does not workfor the 25% of students who drop outof schools, and it is problematic formany of the 50% who do not go onto postsecondary education. Stu-dents flounder in our society in thetransition from school to work. Thisis not a result of age but of the spe-cific features of our education systemand labor market. Both should bereformed to ease the transition fromschool to work and provide realopportunities to all students.

Our students are not well preparedfor the world of work nor to con-tinue their education. Students areunprepared for apprenticeshipprograms and to work with newtechnology. There is evidence that

Chapter 2: Education Reform

U.S. youth are well behind worldclass standards in math, science andother academic subjects.

Oregon has adopted an economicdevelopment plan that is based onhighskill, highwage jobs. Highskill jobs require highly educatedworkers. While not all jobs currentlyrequire high skills, education isclearly a necessary component of ahighskill, high--wage economicdevelopment path.

Despite these good intentions, there areseveral potential pitfalls and problems witheducation reform and youth apprentice-ships:

We must avoid rigid tracking ofstudents into different paths, prima-rily academic and professionaltechnical. We are mindful that thecurrent education system tracksstudents into collegebound andnoncollegebound, and this track-ing should not reappear in a newand stronger form. Emphasis shouldalso he placed on erasing gender,race, or socioeconomic tracking thathas prevented many students andworkers from reaching their fullpotential. The education for all youthneeds to be upgraded and all youthneed multiple options for continuingeducation.

While structured work experiencecan help youth learn about the worldof work as well as specific job skills,we must be sure that youth appren-ticeships offer valuable educationrather than become a source of cheaplabor and that the program does notharm the existing workforce. Thereare huge practical problems wihinstituting massive work experience

programs that could detract fromattention to the academic curricu-lum. We must be sure that youthapprenticeship programs do notflood the market with poorly trainedyouth without jobs to go to, and wemust protect the integrity of currentapprenticeship programs.

There is danger in tying the schoolcurriculum too closely to work.Narrowly defined job skills are nosubstitute for rigorous academictraining that all students need.Further, the occupational areas needto be flexible and broad so thatyouths do not end up with a narrowset of career or educational options.

Labor's position is well stated in UnionPerspectives on New WorkBased YouthApprenticeship Initiatives by Carol Sheehan,Human Resources Development Institute,AFLCIO, January 1992. The summary ofthis Monograph is attached as Appendix C.

Policy Recommendations

1. The most important aspect of educationreform is to emphasize a high level of aca-demic training to all students.

Solid academic training will help pre-vent tracking and the tendency to defineeducation for work in narrow terms.More rigorous training in math, science,reading, and foreign language isneeded. The emphasis should be onapplied academics, but there should notbe separate tracks for academic andapplied academics students.

Schools do not need to teach the "mas-tery" level of skills but should concen-trate on a high level of academicachievement for all students that willallow them to pursue further education

47


or employment in a variety of trades,occupations, and professions.

2. The curriculum should be broad and notnarrowly focused on particular job skills.

We support the recommendations of theSecretary's Commission on AchievingNecessary Skills (SCANS) with oneimportant exception (see #3 below). Thisreport concludes that workers need asolid foundation in three areas:

basic skillsreading, writing,mathematics, listening, ANDspeaking;

higher order thinking skillscreative thinking, decision mak-ing, problem solving, analysis,reasoning, and knowing how tolearn; and

personal qualitiesresponsibility,selfesteem, sociability, selfmanagement, and integrity/honesty.

Further, the SCANS report recommendsthat all students achieve competency infive areas:

resource managementtime,money, material and facilities, andhuman resources;

interpersonal skillsteamwork,teaching, service, leadershipnegotiating, and diversity;

information skillsevaluation,analysis, interpretation, use ofcomputers;

systemsunderstand, design andimprove complex systems; and

technologyselect, understand,and maintain technology.

8

3. We believe that the SCANS and similarreports have one significant missing ele-mentan understanding of history and therole of labor in society. We recommend thatschools offer labor history and curriculumon unions and worker organizations.

Students should understand that theorganization of work is neither naturalnor inevitable but the result of consciouschoices. Students should understand thevalue and role of collective action andsolidarity as opposed to relying exclu-sively on values of individualism andcompetition.

These values and concepts could beusefully taught in a crossculturalframework. Comparing labor organiza-tions and work in different countries is avaluable way to learn about one's ownsociety, culture, and history.

4. Students should be exposed to a variety ofjobs, trades and professions.

This can be accomplished with fieldtrips in grade schools, "shadow" jobs inmiddle and high schools, and rotatingwork experience in high schools. We areconcerned that structured work experi-ence could lead to rigidity in job skillsand track students into specific job areasunless there is flexibility and variety inthe program.

Youth apprenticeship or structuredwork experience should place studentsin a variety of job locations, both publicand private sector, in profit and nonprofit organizations. Students should beexposed to public service, communityservice, and small businesses. Studentsshould learn about social and environ-mental issues, alternative ownershipsystems, and unions in these experi-ences.


Jobs and trades should be portrayedrealistically in schools by people fromthe industry and by visits to workplacesand job safety should be an overridingtheme of all job exposure and orienta-tion.

5. "Youth Apprenticeship" or work experienceprograms must be carefully structured toprovide a valuable education without harm-ing the adult workforce.

The curriculum for structured workexperience should be as broad as pos-sible with many options for highereducation. Work experience should berotated among several occupationalareas and interspersed with solid aca-demic work.

We must develop organizational andinstitutional supports for youth appren-ticeship. There are no current organiza-tions that can bridge the gap betweenschools and employers, and it is unreal-istic to expect these organizations tofulfill this major new role. We shouldexplore trade and labor associationssuch as in Denmark, for example.

Youth apprenticeship must be madecompatible with current collective bargain-ing agreements and labor laws. We mustspell out the rights and obligations ofparties to the program, liability and

workers' compensation issues, and thelegal status of youth apprentices. Theremust be standards and oversight of theprogram to make sure that all partiesare fulfilling their responsibilities.

We recommend that Oregon develop adetailed specification of structured workor youth apprenticeship programs. Anexample of such a list is attached as"Essential Elements of Model YouthApprenticeship Programs," AppendixD of Union Perspectives on New WorkBased Youth Apprenticeship Initiatives byHRDI, AFLCIO. (Appendix D)

6. Labor must be involved in education reformand establishing youth apprenticeships.Labor representatives should receive appro-priate training. .

The Oregon AFLCIO urges CentralLabor Councils to recruit union mem-bers to serve on appropriate RegionalWorkforce Quality Councils and localschool and community college advisorycommittees.

9

We recommend that the AFLCIO offertraining for all unionists who are in-volved in education reform and workereducation and training systems. Thistraining should cover Oregon's educa-tion and workforce policy and how toeffectively represent labor.

i0

CHAPTER 3

THE ROLE OF APPRENTICESHIP PROGRAMS

Apprenticeship traininglearning bydoing under the guidance of a skilledworker in combination with classroomtrainingis the oldest and most successfulform of job training. The labor movementhas vast experience with the apprenticeshipmodel and encourages others to adopt it.This cannot be done casually because ap-prenticeship is a rigorous and demandingprogram. However, the lessons of theapprenticeship model can be successfullyapplied in man: industries and jobs.

Labor's concerns regarding use of theapprenticeship model are effectively statedin 'The Meaning of Apprenticeship: Whenand How to Use the Term, A Policy Recom-mendation" by The Federal Committee onApprenticeship, U. S. Department of Labor,January 28, 1992. (Appendix E)

Elements of ApprenticeshipPrograms

The essential components of apprenticeshipinclude the following;

1. It combines onthejob training withclassroom based training and issponsored by employers and/orlabormanagement groups in theindustry.

2. The curriculum and standards forcompletion are dictated by the needsof the industry. National standardsare set by workers and employers.

3. Apprenticeship programs have clearresponsibilities under federal and

state laws. The rights and responsi-bilities of the apprentice and theemployer are clearly defined, includ-ing wage progression, skills ac-quired, and length of training.

4. Apprenticeship programs lead tocertification of skills and officialjourneyperson status which is recog-nized in the industry.

5. Most apprenticeship programs arejointly operated by unions anemployers and require a sizableinvestment by the parties.

6. Apprentices are paid during train-ing, and there is a defined wageprogression.

7. Apprenticeship is a training strategyin which participants learn by work-ing directly under the supervisionand tutelage of masters in the craftor occupation.

8. There is a link between the trainingopportunity and a job. Employershave a duty to provide training, andthe apprentice has a reasonable rightto expect employment upon comple-tion.

Apprenticeship has been successful becauseit effectively combines onthejob trainingwith rigorous classroom training. Instruc-tors are from the industry themselves andare experienced in the skills of the programas well as instruction.

10 17

Chapter 3: Apprenticeship Programs

There is a problem with calling programsthat do not meet these elements apprentice-ship programs. Workers who completeapprenticeship programs have industrydefined skills at industryaccepted stan-dards of performance and can reasonablyexpect to be employed.

Policy Recommendations

1. Training programs which do not meet theessential elements of apprenticeship shouldnot be called apprenticeship programs.

Apprenticeship programs have a longand successful history, and the certifi-cate still has a good deal of meaning. Inorder to preserve the strength of currentprograms and the value of the appren-ticeship credential, other programsshould not be called apprenticeshipprograms.

Training programs such as youth workexperience, twoplustwo, technicalprofessional education, and cooperativework experience may be valuable intheir own right, but they are not appren-ticeship programs that lead to certifica-tion of industrydefined skills and a job.

2. Current apprenticeship programs should besupported and strengthened.

Current programs are successful be-cause of the link to a job and joint con-trol between employers and labor.Students should not be placed in ap-prenticeship programs unless there isdemand for workers in that occupa-tional area, and labor should retain amajor voice in setting standards andproviding training.

3. The apprenticeship concept should be ex-panded to new industries and jobs.

The concept of apprenticeship trainingis applicable to many jobs and indus-tries. European countries have success-fully established sophisticated appren-ticeship programs in trade, finance,health care, and administration. TheDepartment of Labor is piloting pro-grams in health care.

For apprenticeships to be successfullyestablished, new forms of organizationmay be necessary. Employers and work-ers should develop some form of indus-trywide organization, for example,employer associations and industrywide unions. Unions may need to de-velop structures to represent workers inmultiemployer arrangements, therebycombining some features of craft andindustrial unions.

4. Even where a full apprenticeship program isnot feasible, the lessons of apprenticeshipprograms can be used to develop careerladders and new training opportunities forworkers.

11

Apprenticeship programs are difficult toestablish. They require a significantinvestment and the development ofrecognized skill standards and certifica-tion requirements. However, the lessonsof apprenticeship programs, the featuresthat make them successful, can be ap-plied in many settings. These lessonsindude:

I 8

the imports. ice of combining onthejob training with classroomlearning;

joint control and participation byemployers and workers;

Chapter 3: Apprenticeship Programs

certification of skills that is recog-nized and portable;

a clear progression of skill acqui-sition and support of the appren-tice during training;

onthejob training carried outunder skilled workers.

These concepts could be applied, forexample, in health care to enable nurses'aids and other similarly skilled workersto progress in a systematic fashion tohigherskill technical and professionalor paraprofessional jobs.

5. Unions should aggressively pursue appren-ticeship and other training strategies thatcombine onthejob with classroom train-ing. This approach will benefit unions, andit is one promising approach for upgradingthe jobs of women and minority workers.

Unions that participate in apprentice-ship programs are knowledgeable aboutthe industry, technology, jobs, and

market trends. Other unions shouldconsider adopting elements of appren-ticeship programs and becoming expertin their industries and occupations.These programs offer promise to currentworkers who are already out of school.

Jobs of the future are good candidatesfor apprenticeship programs becausethey will require a high level of bothbasic skills and specific training.

Unions should expand use of appren-ticeship programs and other similartraining programs into industries andskill areas that currently make little useof the apprenticeship training model.This will put unions in a strong positionfor continuing leadership role in ap-prenticeship and worker education andtraining.

6. Guidelines for apprenticeship programsshould include strong provisions to encour-age the recruitment and retention of womenand minority workers.

12

19

CHAPTER 4

PUBLICLY _FUNDED PROGRAMS IN WORKERTRAINING-AND PROGRAMS FOR THE PUBLIC

. SECTOR

Introduction

This chapter covers two topics. The mainrecommendations concern publicly fundedworker education and training programs.These programs include the job TrainingPartnership Act (JTPA), workforce develop-ment programs funded by the lottery, andvarious adult education programs. Cur-rently, these programs are not well coordi-nated. The Workforce Quality Council hasbeen charged with streamlining theseprograms and making them more effective.

The Oregon AFLCIO believes that thestate shruld increase its investment in thecurrent workforce and improve trainingopportunities for those victimized by dislo-cation. Labor has a key role to play inreforming and improving publicly fundededucation and training programs.

The second topic of this chapter concernstraining efforts for public employees, whoconstitute 1/6 of the United Statesworkforce and are mor- highly unionizedthan the private sector. Attention to educa-tion and training programs is critical in anera of public sector cutbacks. The publicsector has its own choice to make between ahighskill versus lowwage strategy as itreorganizes the delivery of public services.The Oregon AFL -CIO urges state and localgovernments to adopt a highskill ap-proach that will involve new forms of workorganization and a commitment to trainingand education.

Labor's Goals for Displaced WorkerTraining Efforts

1. A greater amount of money needs to becommitted to governmental training pro-grams for dislocated workers in Oregon.The present funds are insufficient toreach those in Oregon in need of train-ing, which now goes beyond manufac-turing, where the original JTPA (JobTraining Partnership Act) Title III pro-grams were concentrated. The currentEconomic Dislocation and WorkersAdjustment Assistance Act, effective in1989, expands the potential for helpingdislocated workers; yet the funds avail-able are limiting the number of Oregonworkers who are enrolled.

13

2. Training and retraining goals must berealistic in terms of the future of the Oregoneconomy and workforce. Training effortsshould focus on occupations that arealready in short supply or are expectedto enjoy increased demand. Training forjobs that don't exist or where significantnumbers of union members in a particu-lar occupation are unemployed aredeceptive and wrongful approaches.

3. Public worker training programs shouldtarget family wage jobs, those which arehigh skilled and high paid. Dislocatedworkers' pay after retraining should beat least 90% of what it was before theyexperienced involuntary job loss and

dislocation.

20

Chapter 4: Publicly Funded Programs

4. Training programs must emphasize skillswhich are transferable and portable and gobeyond job specif.:c training. Flexible andhigh performance work organizationsfor Oregon's future demand a highlyskilled workforce and training programsought to feature continuous learningand skill building.

5. Training programs must accommodate thereal needs and life circumstances of dislo-cated workers. Programs need to take intoaccount child care arrangements, hourswhen classes are available, length ofclasses and courses, impact on unem-ployment insurance and other benefitprograms, transportation needs, lan-guage barriers, and adult instructionaltechniques.

How Should Oregon JTPA EffortsBe Designed?

I. State and federal training programs andfunds must have greater flexibility andcoordination.

Federal programs for dislocated workerretraining contain restrictions andlimitations, which is why the proportionof eligible workers enrolled is so small.Greater flexibility is needed to bestenable affected workers to gain access totraining, receive unemployment sti-pends, and effectively participate inretraining programs.

Given the scarcity of funds, it is impor-tant to have such programs be efficient,avoid duplication and use funds withcare. Expenditures which are unneces-sary, such as providers charging forworkers getting their GED, when theseare available at no cost at communitycolleges, must be avoided.

2. Final payment should be withheld to provid-ers for a short time after the training iscompleted to ensure trainees are long termemployed.

We are concerned with continuing andwidespread abuse of the JTPA programby some providers and contractors. Theintent of this recommendation is to limitabuses and the "quickfix" approach ofsome providers who cycle participantsthrough the program as quickly aspossible.

1.

What Role Should Labor Play inProgram Development?

Labor needs to be involved in the design oftraining programs. Labor can help makethe training curriculum relate well toworker and labor market needs as wellas future training such as apprentice-ships. Labor should be involved in thechoice of providers and program design.

2. Labor should be well represented on Stateand all regional workforce development andJTPA Committees. Unionists should beencouraged to apply as well as be ap-pointed to Oregon's new RegionalWorkforce Committees.

3. Programs should be regularly monitored bylabor to avoid abuses including review ofcontent, role of labor in design, record ofplacement, and fiscal efficiency. Thestanding Committee on Worker Educa-tion and Training of the Oregon AFLCIO should carry out this function incoordination with Central Labor Coun-cils and the Workforce Quality Councillabor representatives.

14

f)4,


4. The Oregon AFLCIO shall take a lead intraining joint labormanagement educationcommittee members and labor members onall relevant worker training bodies, utiliz-ing appropriate agencies such as theLabor Education and Research Center atthe University of Oregon.

What New State and Related PublicEfforts Might Be Developed and

How?

A. Programs AffectingPublic Employees

1. Public employees are notcovered under the existingfederal WARN legislation;there are no mandated 60day advance notice re-quirements for pendinglayoffs.To help cushion theeffect of public wor!.(erdislocation in Oregon,advance notice is needed.The current calls for"downsizing" Oregonstate government in lightof the economic crisis overtax revenue and ability tofund public services makeimperative the need forhelp in public sector em-ployment transition.

We recommend that theOregon AFLCIO pursuelegislation for the publicsector equivalent to theFederal WARN or advancenotice legislation.

2. Reductions by attrition,although avoiding layoffs,may cause speedups andstress for those left em-ployed and therefore seem

15()2

a wrong policy. Further,they result in random cutsdepending on wherepeople exit. More rationalapproaches leading toprogram cuts seems logi-cal and is a more workeroriented strategy. Wherebudget reductions are un-avoidable, strategic programcuts are preferable to "thin-ning the soup" with reducedstaffing across the board.

3. Public sector employersshould transfer, deploy andretrain to avoid layoffs. Laidoff workers and those inpositions targeted forlayoffs should get firstoption for training. Dis-placed workers should beretrained for jobs else-where in the organization."Job banks" can be used tomatch workers facing layoffs with job openingselsewhere.

4. All public agencies shouldtarget 2% of payroll for skillstraining, career developmentprograms. Skills training iscritical for achieving workrestructuring, organiza-tional and job restructur-ing, cost savings, andincreased efficiency.Worker involvement iscrucial to best achievesuch ends.

5. Joint unionmanagementdecisionmaking structuresare needed to allow for unionparticipation in public sectortraining programs.

r


B. Public Programs

1. The funding base for workerskills training and educationin Oregon must be expanded.Several interesting optionshave been explored andimplemented in othernations and in other statesin this country. Theseinclude flat taxes on pay-roll for a central workertraining fund; tax creditsfor employers who expenda stipulated percentage ofpayroll on training; jointfunding between government and private sectoremployers for trainingefforts, and the like. Asurvey of state programsin worker training isattached to the end of thisreport. (Appendix F)

2. Joint labormanagementtraining committees shouldbe developed in all workplaces in Oregon with 10 ormore employees. This isparallel to other mandatedhealth and safety commit-tees which under OROSHA law is mandated.

16

3. State funds for training ofworkers should be chan-neled through nonprofitpostsecondary institu-tions of education andnonprofit service provid-ers including unions.

4. The High Skills CompetitiveWorkforce Act of 1991 oughtto be supported in the USCongress, and we call on allmembers of the US Congres-sional delegation to supportthis bill (S 1790, HR 3470).In particular we note thatit would authorize $40million to the U.S. Depart-ment of Labor to makegrants to stimulate highperformance workerorganizations and helpemployers, unions andconsortia by disseminatinginformation and providingtechnical assistance. Fur-ther, there would be a $25million allocation forsupport of High SkillsTraining Consortia, target-ing small business.

CHAPTER 5

This section of our recommendations dealsexclusively with the role of the State Fed-eration of Labor in facilitating changes atthe firm level of the Oregon economy, asopposed to the State policy level, or withinthe secondary and higher education institu-tions. Unions have been active in helping tocreate a better educated workforce throughthe collective bargaining process for morethan a hundred yearsthe existence ofapprenticeship programs in the buildingtrades being the most visible success story.Our intent here is to extend this effortfurther into the manufacturing andservice sectors of the Oregon economy.

The creation of the Workforce QualityCouncil by HB 3133 in 1991 makesOregon's plan to develop a highly educatedn.d tz ained workforce the most compre-

hensive of all state governments in thecountry. One of the unique aspects of thislegislative effort is its attempt to make labora full partner in developing strategies forreform of education and training policy.

The Oregon AFLCIO recognizes thatworking men and women and their unionshave unique contributions to make inplanning education and training changeswithin individual firms in the privatesector. Most importantly we recognize thatthese changes are too important to be left tostate officials or business leaders alone. Ourefforts must insure that worker educationand training efforts are truly "WorkerCentered" in how they approach the needsof individual workers and whole industries.

The committee addressed three specificquestions regarding private sector policyissues:

17

How can the Oregon AFLCIOassist affiliated local unions in devel-oping effective education and train-ing programs with employers?

What legislation should the OregonAFLCIO sponsor that will furthereducation and training opportunitiesfor workers in the private sector?

What efforts should the OregonAFLCIO make to work with indi-vidual employers or associations ofemployers to seek common groundin creating education and traininginitiatives?

How the State AFLCIO Can AssistAffiliates

The collective bargaining process is thedomain of individual local unions and theirInternationals, not the State Federation ofLabor. However, the Oregon AFLCIOsupports certain general principles withregard to the negotiation of agreementsconcerning education and training issues.

A recent University of Oregon report indi-cates that training and education programshave been a relatively low bargainingpriority for Oregon unions in the past. Italso indicates that the most comprehensive

2 4

Chapter 5: Enhancing Private Sector Efforts

training and education opportunities ex-isted in companies where labor had taken aproactive approach to negotiating agree-ments that guarantee the union a role indesigning and carrying through the pro-gram. The committee supports this proac-tive philosophy and encourages affiliates tobetter prepare themselves to participate ineducation and training programs by devel-oping internal expertise ("capacity") tonegotiate over the terms of their creation,implementation and evaluation.

1. To support this general approach wehave adapted a set of principles,many of them drawn from the AFLCIO's Human Resources Develop-ment Institute and the Ontario Fed-eration of Labour. In order for work-place related training and educationprograms to adequately address theneeds of workers they must address theseconcerns:

Principles of Worker CenteredLearning Systems:

Programs should build on whatworkers already know andshould reflect workers' identifica-tion of their skill needs.

Programs should address theneeds of the whole person, notsimply the narrowest require-ments of a particular job or task.

Workers and their unions mustbe involved in developing andplanning programs.

Workers must have equal accessto education and training pro-grams in their workplaces.

18

Curriculum content and programstructure must reflect the diverselearning styles and needs of adultworkers.

Workers should be involved inhelping to design any tests orassessments used for evaluatingindividual training programparticipants or program curricu-lum.

All classroom records must bekept confidential.

Education and training mustenable workers to have morecontrol over their jobs, and morejob security.

Education and training programsshould help people work moresafely, and learn about individualand collective rights.

Programs must support thedevelopment of good job design,and technology that enhances theskills of workers.

Education and training initiativeswhich involve joint laborman-agement cooperation and thereorganization of the labor pro-cess must be based on equalparticipation by labor unions,and must guarantee the institu-tional integrity of the union.Work reorganization should beapproached in a proactive wayby unions. Joint labormanage-ment initiatives must build soli-darity in locals unions rather thansubvert it.

25


2. The Oregon AFLCIO will assist affili-ates by making available material re-sources that address private sectorworkplace education and training issues.It will also help facilitate internalunion education programs, throughinstitutions like LERC at the Univer-sity of Oregon, to prepare locals tonegotiate over the terms and condi-tions of workplace education andtraining programs ("capacity build-ing").

The Oregon AFLCIO will seekfunding from the state or federalagencies to develop a curriculum forlocal union capacity building in thearea of workplace education andtraining, either by itself or in con-junction with the Labor Educationand Research Center.

3. The Oregon AFLCIO urges affiliates tocreate local committees to assess theeducation and training needs of itsmembers and employers and togenerate creative ideas for the imple-mentation of worker centered pro-grams in their respective workplaces.

Legislative Efforts to EncourageEducation and Training in the

Private Sector

While efforts to reform the secondaryschool system will greatly improve theskills of future workers, the fact is that 75%of those who will be working in the next 15years are already out of school and em-ployed. Therefore, a major effort must bemade to upgrade the skills of those alreadyat work. Unfortunately, the typical Ameri-can company spends less than 2% of itstotal payroll on the continuing educationand training of its workforce. Germanemployers, for example, spend at leasttwice this amount.

I. In order to increase the level of privatesector workforce training in Oregon, theCommittee recommends that the AFLCIO pursue the creation of a state fundfor this purpose. (For a preliminarydiscussion of this issue see AppendixF.)

The Oregon AFLCIO, through thestanding committee on WorkerTraining and Education, shouldexamine existing funding programs,Labor's involvement in the formula-tion of those programs, and Labor'sevaluation of existing fundingmechanisms.

2. The Oregon AFLCIO, after examiningthe findings of the committee, shoulddraft a legislative package for our state.That legislation should address thefollowing issues:

The funding mechanism mustinsure that large and small em-ployers are treated equitably.

The funding mechanism mustrequire labor representation inthe creation, delivery, and evalu-ation of all education and train-ing programs whether they areoffered inside individual firms,through community colleges orvoctechs, or by private trainingorganizations.

The funding system must respectthe integrity of existing, negoti-ated labormanagement educa-tion and training programs, suchas the apprenticeship systems invarious industries.

2619

Employers who already provideadequate training opportunities for


their workers should be recognizedfor their efforts. Comprehensive,preexisting programs, like thejointly managed apprenticeshipprograms in the construction indus-try, should qualify employers for anexemption from contributing to astatewide training fund.

The f anding system shouldinclude provisions that reflect thephilosophy of the above stated"Principles for Worker CenteredLearning Systems."

The legislation should precludeemployers from using funds asmere wage subsidies for inad-equate and superficial "onthejob" training programs.

Efforts to Create Coalitions with thePrivate Sector Business Community

1. The committee recognizes that it is abso-lutely essential for labor to develop allies

among private sector employers in order topursue a comprehensive strategy for work-place education and training. A crucialdifference between our system and thatwhich exists in Europe is the presencethere of both strong employer associa-tions and widely organized unions thathave explicitly recognized the value ofongoing, well funded training andeducation opportunities for their work-ers.

2. The Oregon AFLCIO supports educationefforts among employers which focus onworkplace education and training issuesand which increase the capacity ofbusinesses to create more programs inthe area.

20

3. The Oregon AFLCIO stands ready to meetand work with employers and associationswhere their education and trainingefforts are seen by affiliated local unionsas positive steps towards greater jobsecurity and enhanced skill develop-ment for workers.

27

IP

Banks, Andy and Jack Metzgar, "Participating in Management: Union Organizing in a NewTerrain" Labor Research Review, (Fall 1989) 14:1-55.

Carnevale, Anthony, J. America and the New Economy. JosseyBass Publishers, San Fran-cisco, 1990.

, Janey W. Johnson. Training America: Strategies for the Nation, National Centeron Education and the Economy, Rochester, N.Y., 1989.

, Leila J. Gainer, and Janice Shari. Training Partnerships: Linking Employers andProviders, American Society for Training and Development and the U.S. Depart-ment of Labor, Washington, D.C., 1990.

, Leila J. Gainer, and Eric Schulz, Training the Technical Workforce, JosseyBassPublishers, San Francisco, 1990.

Donnelly, Jerry, Worker Education and Training: Oregon Union Initiatives and ActivitiesLessons for Labor, Labor Education and Reserach Center, University of Oregon,Eugene, 1992.

Ferman, Louis and Michele Hoyman, Joel Cuther-Gershenfeld, Ernest J. Sovoie eds. JointTraining Programs: A Union-Management Approach to Preparing Workers for theFuture. ILR Press, Ithaca, N.Y., 1991.

, Michele Hoyman, Joel Cuther-Gershenfeld, Ernest J. Sovoie eds. New Develop-ments in Worker Training: A Legacy for the 1990s, Industrial Relations ResearchAssociation, Madison, WI, 1990.

Hallock, Margaret and Bob Baugh, "High Stakes: Oregon Labor Sets Union Agenda forHigh Skill, High Wage Strategy" Labor Research Review, (Fall 1992) 19:69-82.

Hilton, Margaret, "Shared Training: Learning from Germany," Monthly Labor Review, Vol.114, No. 3, April, 1991.

Miller, Tami, and Bob Baugh, Lessons from the Old School: European Workforce Develop-ment Strategies for Oregon, Oregon Economic Development Department, Salem,OR. 1990.

National Center on Education and the Economy, America's Choice: High Skills or LowWages, Report on the Skills of the American Workforce, Rochester N. Y. 1990.

Ontario Federation of Labour, Training A Labour Perspective. Ontario, 1990.

2128

Bibliography

Sarmiento, Anthony R., and Ann Kay, Worker Centered Learning: A Union Guide to Work-place Literacy, AFL-CIO Human Resources Development Institute, Washington,D.C. 1990.

Task Force on Oregon Apprenticeship Programs. Apprenticeship: Oregon's Best KeptSecret. Oregon State Printing Office, Salem, 1988.

U.S. Congress, Office of Technology Assessment, Worker Training: Competing in the NewInternational Economy, U.S. Government Printing Office, Washington, D.C. 1990.

U.S. Department of Labor and U.S. Department of Education, The Bottom Line: Basic Skillsin the Workplace, U.S. Government Printing Office, Washington, D.C. 1988.

22

29

APPENDIX A

RESOLUTION PASSED BY 1901 OREGON AFL-CIO

RESOLUTION NO. 32Introduced by Iry Fletcher, President, Oregon AFL-CIO

Referred to Education Committee

Committee on Worker Education and TrainingWHEREAS, global competition, technologicalchange, and economic restructuring are havingan immense impact on jobs; and

WHEREAS, most employers in the Unitedstates are currently choosing a low-wage, low-skill path in order to compete globally; and

WHEREAS, high-skill, high-wage jobs are theonly way to reverse the growing inequalities inincomes and jobs in the U.S. and a better pathto competitiveness; and

WHEREAS, developing high-skill, high-wagejobs involves the entire workplace, includingwork organization, production processes andshop-floor relations; and

WHEREAS, the changing workforce and jobswill require continuing education and trainingof new workers and current workers in allindustries; and

WHEREAS, the rapid transition of the Oregoneconomy and forest products industry requiresworker assistance, education and training; and

WHEREAS, labor has been a leader in develop-ing excellent apprenticeship programs whichshould be a model for new training programs inother industries; and

WHEREAS, unions, in order to representworkers in a fast-changing economy, must beinvolved in skill development, skill certifica-tion, worker education and job development;and

WHEREAS, the United States has an inferiorworkforce training and education system andspends less than other industrial countries onworker education; and

WHEREAS, the University of Oregon LaborEducation and Research Center is coordinatinga major conference, "Worker Education andTrainingLabor's Agenda," in February, 1992;and

WHEREAS, the state of Oregon has launched amajor workforce policy, including the establish-ment of a Workforce Quality Council whichwill oversee a strategic plan to make Oregon'sworkforce among the best in the world; and

WHEREAS, the Oregon AFL-CIO and itsaffiliates should be active participants in thispolicy; therec.ire be it

RESOLVED, that the Oregon AFL-CIO estab-lish a Committee on Worker Education andTraining to develop a strategy and agenda forOregon unions to participate in Oregon'sworkforce policy and to assist unions in devel-oping worker-centered training programs, andto support current union apprenticeship pro-grams, and be it finally

RESOLVED, that this Committee will beappointed by the President of the Oregon AFL-CIO and staffed by Oregon AFL-CIO staff.

23 30

APPENDIX B

THE EIGHT KEY ELEMENTS OF HIGHPERFORMANCE WORK SYSTEMS

As Identified by Dr. Ray Marshallin Keynote Address to

AFL-CIO Human Resources Development InstituteConference on "High Performance Work and Learning Systems"

September 26-27, 1992Washington, D.C.

The most successful "high performance" workplaces feature the following eight compo-nents, all functioning together as an integrated and mutually supportive system.

1. Effective use of all company rescurces,especially the insights and experienceof frontline workers, in order toachieve continuous improvements inproductivity.

2. Acute concern for the quality of prod-ucts and services in order to satisfy thedemands of a consumerdriven mar-ketplace.

3. A participative and non-authoritarianmanagement style in which workersboth at the point of production and atthe point of customer contactareempowered to make significant deci-sions by (1) using their individualdiscretion, experience and creativity,and (b) cooperating with their peers ina mutually supportive atmosphere.

4. Internal and external flexibility inorder to: (a) rapidly adjust internalproduction processes to produce avariety of good or services; and (b)accurately comprehend the externalenvironment and adjust to changingeconomic and social trends.

5. A positive incentive structure thatincludes: employment security; re-wards for effectively working in

groups; decent pay and working condi-tions; and policies that promote anappreciation for how the companyfunctions as an integrated whole.

6. Leading-edge technology deployed ina manner that extends human capabili-ties and builds upon the skills, knowl-edge and insights of personnel at alllevels of the company.

7. A well-trained and well-educatedworkforce capable of: improving acompany's work organzation andproduction processes; adapting exist-ing machine technology and selectingnew equipment; developing new andimproved products or services; andengaging in continuous learning, bothon-the-job and in the classroom.

8. An independent source of power forworkersa labor union and collectivebargaining agreementthat protectsemployee interests in the workplace;helps to equalize power relations withmanagement; and provides mecha-nisms to resolve disagreements thatarise because of the inherentlyadversarial nature of labor-manage-ment relations.

24 31

APPENDIX C

by Carol Shenon, Human Resources Development Institute, AFL-CIO, 1992. pp. 34-35.

III. Final Comments

This report presents the attitudes of 14 laborofficials in the spring of 1991 toward theyouth apprenticeship approach. As the dis-cussion reveals, there is a diversity of opinionnot only among the union representativesinterviewed, but also within each of the threesectors they represent. Moreover, it is likelythat there would have been some variation inthe results had different unions been selectedto participate. However, while the findingscannot be seen as definitive, they highlightnumerous union concerns, supportive views,and suggestions for improvement.

Obstacles preventing non-college boundyouth from obtaining jobs with advance-ment potential, skilled work, and a livingwage. Union officials identified six majorhurdles confronting the "Forgotten Half."They include: the absence of the basic aca-demic and higher order skills required oftoday's and tomorrow's workforces; thefailure of the federal government to create aschooltowork transition system and focusmore employment and training dollars andactivities towards those youth that are notimmediately "'at risk;" the deficiency oftraining opportunities in various industries;the shortage of positions to fit the qualifica-tions of these young people; some youths'troubled backgrounds and the cripplingeffect this has on their performance; the

absence of national skills standards, assess-ment, and certification systems required toobtain and maintain competitiveness; and theunderdeveloped work ethic of many of theseyoungsters.

Positive aspects of the youth apprenticeshipmodel. The labor representatives interviewednoted eight reasons to be supportive of theyouth apprenticeship approach. This modelcould: create a national schoolwork/appren-ticeship transition system; provide valuablejob and related skills training; extend thehighly effective traditional apprenticeshipapproach into new areas; introduce youth tonumerous occupations and careers whichmay offer selection assistance; allow youth tounderstand the context in which they'll applytheir learning; motivate young people towork harder by showing them the relevanceof their education; encourage the positiveinteraction of youth and adults; and establishrelationships between the youth and employ-ers that could lead to job offers followingsuccessful program completion.

Concerns regarding the youth apprentice-ship model and suggested solutions. Theseunion officials focused on eleven areas ofconcern. This approach could: impact incum-bent workers in a variety of negative ways;promote the use of program participants as asource of cheap labor; decrease the amount of

25 32

Appendix C

time spent learning desperately needed basicacademic skills; narrow future career and/oreducational options by focusing on the acqui-sition of skills required by a single occupa-tion or employer; weaken the meaning of theterm "apprenticeship"; and increase thenumber of individuals with particular skillsin already tight labor markets. Questionssurrounding the sources and maintenance ofprogram funding, the opportunity to exposeparticipants to the union philosophy, theavailability of jobs following the program'scompletion, wages and working conditions,and a variety of other issues were also raised.

Compatibility of youth apprenticeship andexisting registered apprenticeship pro-grams. While opinions on the appropriatelevels of linkage and/or compatibility ofthese two systems varied widely, each laborofficial expressing a view on this matterbelieved that some manner of linkage and/orco-existence was possible.

Applicability of the youth apprenticeshipmodel in various industries. While themajority of the in::ustrial manufacturingsector and service/public sector representa-tives expressed support for introducingyouth apprenticeship initiatives in theirindustries, the building trades representa-tives were skeptical or opposed to it in theirjurisdictions.

Union involvement in the youth appren-ticeship system. While justifying a major role

for unions due to their unique knowledgeand talents and stressing the importance ofeqaal representation with employers inprogram management to foster the program'ssuccess, the labor officials also enumeratedroles for unions on the various committeesinvolved in the creation, implementation, andevaluation of the system. In addition, theydiscussed the need for local involvement inand "ownership" of any serious effort.

Union experiences applicable to the youthapprenticeship approach. Unions' in-depthexperiences operating traditional apprentice-ship and/or other education and trainingprograms revealed numerous lessons appli-cable to the creation and operation of a youthsystem. These included the need for labor-management cooperation, advance programplanning and design, and the incorporationof the union philosophy into any nationaleffort.

In future discussions of the possible imple-mentation of the youth apprenticeship sys-tem, the views documented here merit fur-ther examination and serious consideration.With their experience and expertise orga-nized labor is an integral part of the employ-ment and training landscape in this countryand must be intimately involved in the de-sign and implementation of any nationalinitiative in this area. Their participationwould benefit not only unions, but the entirenation when a superior program resultedfrom any coordinated effort.

26 33

APPENDIX D

I0

Published as Appendix D of Union Perspectives on New Work-Based Youth Apprentice-ship Initiatives.by Carol Shenon, Human Resources Development Institute, AFL-CIO, 1992.

pp. 43-46.

Introduction

The following pages propose a set of essen-tial elements for youth apprenticeshipprograms designed to link employers,secondary schools, and postsecondaryinstitutions in the provision of alternativeroutes from high school to high skills ca-reers.

This document reflects discussions involv-ing two different groups: the NationalAdvisory Group for Jobs for the Future'sNational Youth Apprenticeship Initiative;and the group of co-sponsors of the "YouthApprenticeship, American Style" confer-ence organized by the W. T. Grant Founda-tion Commission on Youth and America'sFuture. It was prepared by Jobs for theFuture.

This document does not necessarily reflectthe view of the Human Resources Develop-ment Institute, AFL-CIO, or the unionrepresentatives interviewed in this study.

What is 'Youth Apprenticeship'?

Youth apprenticeship programs combine, ata minimum, three basic elements:

1. Work experience and guided learn-ing opportunities provided forparticipants by employers within anindustry or occupation cluster;

2. A structured linkage between sec-ondary and postsecondary compo-nents of the program, leading to ahigh school diploma, postsecondarycredential, and certification of occu-pational skills;

3. Close integration of academic andvocational learning and of schooland workplace experiences throughplanning and ongoing collaborationbetween schools, employers, rel-evant unions, and other key institu-tions and through innovations incurriculum and instructional strate-gies in the classroom and at work.

The following sections elaborate on designelementsincluding issues of structure,governance, and the responsibilities ofemployers, schools, and participantsthatare essential if youth apprenticeship is to bea viable, attractive and worthwhile oppor-tunity for large numbers of Americanyoung people. The final sections highlightdesired outcomes for participating institu-tions and learners.

1. Structure

2734

Program duration of at least twoyears, including at least one year ofsecondary and one year ofpostsecondary education.

Appendix D

Preceded by a strong career develop-ment program beginning with careerawareness in elementary school andcareer exploration in middle schooland early high school years.

Part-time employment during theschool year with employer commit-ted to providing guided learningexperiences at the workplace.

Classroom-based program for aca-demic learning, generic literacy andemployability skills.

Structured mechanisms for integra-tion of work experience and class-room instruction (e.g. seminar co-taught by school and workplacepersonnel; regular meetings of teach-ers and workplace supervisors toenable use of work experiences inacademic and vocational courses;summer internships for teacherswith participating employers).

Adequate initial and ongoing oppor-tunities for staff development ofteachers and workplace trainers whowill be responsible for the integra-tion of academic and occupationalinstruction and learning.

Structured summer componentintegrating schoolbased learningand paid work experience.

2. Governance

Involvement in program planning ofkey decisionmakers from: employ-ers, industryspecific and statewideemployer associations, schooldistrict(s), posLecondaryinstitution(s), relevant labororganization(s), state and localgovernment.

Governance by a board comprised ofleaders of these institutions.

3. Employer and Labor Roles andResponsibilities

28

Work out mutuallyagreeable pat-tern of participation and collabora-tion between employers and unionsrepresenting workers in participat-ing firms and industries in undertak-ing the following activities.

* Participate in specifying jobandemployabilityrelated competenciesthat graduates will be expected tohave mastered.

Participate with educators in curricu-lum design and development.

Provide work experience and guidedlearning opportunities for partici-pants for the duration of thL enroll-ment in program.

Impart agreedto skills and knowl-edge through work and trainingassignments.

Provide each participant with astructured mentoring relationshipwith an employee of the firm ororganization.

Designate one or more personswithin the firm who will be trainedin how to work with and train youngadults.

' Participate in orientation and staffdevelopment activities to preparesupervisors and employees forparticipation in program.

* Monitor own and participants'progress towards achieving skilldevelopment goals.

Agree to nondiscrimination inselection of apprentices and to non-displacement of existing workers byprogram participants.

Appendix D

si Sign contract with school and ap-prentice that specifies these andother agreed upon roles and respon-sibilities.

4. Secondary School Roles andResponsibilities

* Deliver instruction that preparesyoung adults for both productiveeconomic participation and effectivecitizenship.

* Impart academic and workrelatedskills and knowledge (such as prob-lem-posing; problemsolving, andcritical thinking) general enough tobe transferable to a broad range ofwork and life situations.

' Implement applied academics andcooperative learning approaches toclassroom learning that draw fromthe work experience of participants.

Offer participants structured oppor-tunities for reflection on their workexperience, in academic classes andthrough sound career counseling.

Ensure that program exit by a par-ticipant before the twelfth gradesdoes not jeopardize high schoolprogress and graduation.

Provide adequate orientation, train-ing, and ongoing staff developmentopportunities in workbased learn-ing approaches for program instruc-tion staff.

Ensure that teachers develop a solidunderstanding of the nature andsequencing of participants' work-place activity.

Sign contract with students andemployer that specify roles andresponsibilities.

Sign letter of agreement withpostsecondary school specifying therelationship between their respectivecomponents.

5. Postsecondary Institution Rolesand Responsibilities

Offer preadmission or specialconsideration to participants whosuccessfully complete the first twoyears of the program and earn theirhigh school diploma.

* Participate in the process of design-ing the program's secondary schoolcurriculum.

17: Offer one or more courses speciallydesigned for program participantsand facilitate scheduling that enablesparticipants to stay at their appren-ticeship job.

Provide career development servicesto participants, including counselingand placement assistance.

Sign letter of agreement with sec-ondary school specifying the rela-tionship between the two compo-nents of the program.

Sign letter of agreement with stu-dents and employers specifying rolesand responsibilities.

6. Student Roles andResponsibilities

Evidence commitment to program,measured by attainment of agreedupon benchmarks, such as atten-dance at school and workplace anddemonstration of specified learningoutcomes.

la Have structured input into programassessment and redesign over thecourse of the program.

3298

Ap endix D

Sign contract with school and em-ployer that specifies roles and re-sponsibilities of each.

7. Expected Outcomes forSuccessful Participants

Certification of academic and occu-pational proficiencies that reflecthigh expectation/high achievementcurriculum and are pegged toworldclass standards.

Award of high school diploma afterthe equivalent of twelfth grade.

Award of credential of occupationalskills achievement recognized atleast within the state.

Award of Associates Degree if par-ticipant meets all requirements or oftransferable postsecondary creditstoward degree earned during thecourse of the program.

Ability to continue postsecondarylearning in a fouryear college pro-gram.

Successful placement in generaloccupational area for which traininghas been provided.

Access to career ladder thatprogresses to high quality, highwage career.

8. Other Expected Outcomes

ilk Evidence of employer reconsidera-tion and redesign of work organiza-tion to make the firm more of alearning, high performance organi-zation.

30

Evidence of progress by schools inintegrating problemsolving, learn-ingtolearn, and other "necessaryskills" and handson instruction intoprograms and curricular for allstudents.

Evidence of institutionalization ofnew forms of collaborative effortamong employers, labor organiza-tions, school districts, andpostsecondary educational institu-tions.

3"

APPENDIX E

THE MEANING OF APPRENTICESHIP: WHENAND HOW TO USE THE TERM

A POLICY RECOMMENDATIONJanuary 28, 1992

Prepared byThe Federal Committee on Apprenticeship

U.S. Department of LaborEmployment and Training Administration

31

3 9

Appendix E

Office of Work-Based LearningBureau of Apprenticeship and Training

THE MEANING OF APPRENTICESHIP: WHEN AND HOW TO USE THE TERM

A Policy Recommendation Prepared by The Federal Committee on Apprenticeship

January 28, 1992

Increasing national attention is being paidto workforce preparation in the UnitedStates. This stems from the growing realiza-tion that America's ability to occupy aleading competitive position in the emerg-ing global economy hinges, to a large de-gree, on assuring that the nation'sworkforce is second to none. Today, unfor-tunately, this is not the case. Employersfrequently report that significant numbersof young people and adults alike exhibitserious educational deficiencies and are illequipped to perform effectively in theworkplace. As a consequence. leaders fromindustry, labor, education, and governmentare all grappling with how to design educa-tional reforms and education/trainingstrategies that will improve the skills ofAmerica's current and future workforce.

In the spirit of this reform, one particulartraining strategy apprenticeship hascaptured the interest of many policy mak-ers, educators and others who are involvedin the national reform movement_ Its grow-ing appeal comes as no surprise and, per-haps, is long overdue. Experience both inthe U.S. and abroad has repeatedly demon-strated that apprenticeship is a highlyeffective strategy for preparing people forwork. The bulk of apprenticeship programsoffered in the U.S. and its territories are inthe building trades and manufacturingindustries, but there is significant potentialto develop apprenticeship programs in avariety of other industries.

The rush to embrace apprenticeship, how-ever, is leading to efforts that could under-mine the very pillars of its value. For ex-

ample, in some instances, apprenticeship isbeing viewed as a generic conceptonethat can be loosely applied to a variety oflearning situations. Likewise, others navecoined such terms as "youth apprentice-ship" to characterize various schooltowork transition programs. Such thinking,while understandable in an environmentthat begs for creativity and innovation, maybe more harmful than helpful to the cause.

What Apprenticeship Is: The EssentialComponents

1. Apprenticeship is a training strategythat a) combines supervised, structuredonthejob training with related theo-retical instruction and b) is sponsoredby employers or labor/managementgroups that have the ability to hire andtrain in a work environment.

2. Apprenticeship is a training strategythat prepares people for skilled employ-ment by conducting training in bonafide and documented employmentsettings. The content of training, bothon-the-job and related instruction, isdefined and dictated by the needs of theindustry.' The length of training isdetermined by the needs of the specificoccupation within an industry. In thebuilding trades, for example, someapprenticeship programs are as long asfive years with up to 240 hours of re-lated instruction per year.

'As used herein, "industry" refers to alltypes of business/workplace settings.

323_

Appendix E

3. Apprenticeship is a training strategywith requirements that are clearly delin-eated in Federal and State laws andregulations. The National Apprentice-ship Act of 1937 (also known as theFitzgerald Act) and numerous Statelaws provide the basis for the operationof formal apprenticeship training pro-grams in the U.S.; regulations thatimplement these laws are in force today.These laws and regulations establishminimum requirements for protectingthe welfare of the apprentice such as thelength of training, the type and amountof related instruction, supervision of theapprentice, appropriate ratios of ap-prentices to journeypersons, apprenticeselection and recruitment procedures,wage progression, safety, etc.

4. Apprenticeship is a training strategythat by virtue of a legal contract (inden-ture) leads to a Certificate of Comple-tion and official journeyperson status.These credentials have explicit meaning,recognition and respect in the eyes ofFederal and State governments andrelevant industries.

5. Apprenticeship is a training strategythat involves a tangible and generallysizable investment on the part of theemployer or labor/management pro-gram sponsor.

6. Apprenticeship is a training strategythat pays wages to its participants atleast during the onthejob trainingphase of their apprenticeship and thatincreases these wages throughout thetraining program in accordance with apredefined wage progression scale.

7. Apprenticeship is a training strategy inwhich participants learn by workingdirectly under the supervision andtutelage of masters in the craft, trade, or

relevant occupational area.

8. Apprenticeship is a training strategythat involves a written agreement andan implicit social obligation between theprogram sponsor and the apprentice.The written agreement, which is signedby both the apprentice and the programsponsor and is ratified by government,details the roles and responsibilities ofeach party. The implicit social obligationgives employers or program sponsorsthe right to expect to employ the ap-prentice upon completion of traininggiven the investment in training andgives the apprentice a reasonable rightto expect such employment. Labormarket conditions should guide the sizeof training programs to enable eachparty to maintain his or her side of theobligation.

What Apprenticeship Is Not

Unless they conform to the essential com-ponents described previously, apprentice-ship is not cooperative education, voca-tional education, tech prep, two plus two(three or four), summer or parttime workexperiences or any of the other myriadtraining strategies that many are promotingas ways to assure adequate workforcepreparation. Such strategies undoubtedlyhave value in their own right, but they arenot apprenticeship. What distinguishesapprenticeship from most of these otherapproaches are such fundamental qualitiesas training program sponsorship and loca-tion, the skills acquired, the value attachedto the credential earned, curricula contentthat is defined exclusively by the work-place, wage requirements, the writtenagreement, and the implicit social contractthat exists between program sponsors andtheir participants. No other training strat-egy provides for this unique combination ofcharacteristics. When a person completes a

33 40

Appendix E

registered apprenticeship program, he orshe is prepared to go to work as a fullytrained, competent journeyperson whoseskills enable him or her to perform effec-tively in the workplace. Few, if any, othertypes of educational programs can makethis claim.

A Policy Recommendation

As the ducation and training system inthis country undergoes its restructuring,low apprenticeship fits in must be consid-ered. Some may argue that the definition ofapprenticeship should be broadened toencompass sot ,e or all of the previouslydescribed alter Lative training strategies.Unfortunately, this could have the practicaleffect of seriously undermining a tried andtrue training strategyone that, ironically,ex:-jbits all of the qualities that reformers

striving to achieve in new trainingdesigns. Of particular concern is the possi-bility that an expanded definition couldsignificantly dilute the value and meaningattached to the apprenticeship credential.Today, an apprentice who earns a Certifi-cate of Completion and attainsjourneyworker status from a registeredapprenticeship program knows that he orshe has acquired industrydefined skills atindustryaccepted standards of perfor-mance and can reasonably expect to begainfully employed in his or her occupa-tional area. If alternative training strategies(ones that do not fully conform to theessential components) are also permitted tocall themselves "apprenticeship," the ap-prenticeship credential stands to becomedevalued. Such a step makes little sense at atime when other credentialssuch as highschool diplomashave lost much of theirmeaning.

Thus, we conclude that the term "appren-ticeship" should be reserved only for thoseprograms that adhere to the eight essentialcomponents described previously. Otherstrategies may seek to adopt designs thatconform to all the essential components, inwhich case they may be called apprentice-ship. But to call any other types of pro-grams "apprenticeship" is to do a majordisservice to the participants in such pro-grams. Whether intentional or not, theparticipants may be misled into thinkingthat completion of these programs willallow them to reap the benefits accorded tograduates of true apprenticeship programs.

Clearly, we are on the verge of a majorreolution with respect to how Americaprepares its workforce. As a new nationaltraining system emerges in the comingyears, considerable thought should begiven to the role of true apprenticeship inthat new system. On one hand, apprentice-ship could be the locomotive that drivesthis training system. Under this scenario,apprenticeship programs would serve asthe principal form of training for preparingthe majority of the nation's workforce.Alternatively, apprenticeship may becomeone of several cars on a train that provides avariety of training options to existing andfuture workers. This choice requires furtherstudy and broader deliberation, but, what-ever the outcome, the integrity of the term"apprenticeship" should not be jeopardizedor compromised.

34

The Federal Committee on Apprenticeship(FCA) is established by charter to advise theU.S. Secretary of Labor on matters pertain-ing to the U.S. apprenticeship system. TheFCA consists of representatives of employ-ers, labor, educators, and others.

41_ _ _

APPENDIX F

IP

The Labor Education and Research Center(LERC) University of Oregon has initiatedresearch into existing state-funded workertraining programs. This Appendix providesa summary of our preliminary findings. A1989 American Society for Training andDevelopment (ASTD) report, New Founda-tions: State Economic Growth ThroughTraining, provided a starting point. Thereport summarized the status of statefunded programs as of 1989. We are nowconducting a survey to obtain updatedinformation (1992).

The LERC survey is focused on programsfunded by means other than annual generalfund appropriations and programs admin-istered by independent or quasi-indepen-dent agencies. In addition, based on theexperience of these other states, the surveyis helping to identify potential problemsthat will need to be addressed in develop-ing a program for Oregon.

The ASTD Findings

The 1989 ASTD report found that 46 statesprovided some form of state-funded, in-dustry-specific programs (some states havemore than one program). Most of theseprograms were developed during the1980's. The programs are viewed by moststates as economic development tools,intended to provide a fast response to theneeds of particular industries or businessesfor training or retraining their employees.The programs vary substantially in terms oftargeted industries or populations but theydo have several common characteristics:minimal "red tape," broadly written pro-

gram rules to encourage flexibility in thedesign, development and implementationof training programs, and minimal regula-tion of decisions relating to selection oftraining providers or locations to encouragecustom designed programs which best meetspecific training needs.

Funding Mechanisms

Thirty of the 46 programs identified in theASTD survey were funded by allocationsfrom the state's general fund. Five alterna-tive funding mechanisms (and the statesusing them) have been identified from thesurvey:

35

1. a tax equal to 0.1% of the unem-ployment insurance tax, (Alaska,California, Delaware, and RhodeIsland);

2. tax credits for employers' trainingcosts, (Connecticut, Illinois, Iowa,and Mississippi);

3. the sale of bonds or certificates bycommunity colleges (Iowa andMissouri);

4. dedicated lottery funds, (Florida,Kansas, and Oregon); and,

5. direct loans to employers, (Illinois,Maine, Michigan, and Wisconsin).

Independent Oversight Bodies

Programs in six states operate under inde-pendent or quasi-independent boards oragencies. These include the California

42

Appendix F

Employment Training Panel, Illinois' Prai-rie State 2000 Authority, Kentucky's Blue-grass State Skills Corporation, Massachu-setts' Bay State Skills Corporation and theIndustrial Services Program (2 separatebodies), Minnesota's Job Skills PartnershipBoard, and Rhode Island's Workforce 2000Council. The California and Rhode Islandprograms are funded through the unem-ployment insurance tax method; the otherfour rely on appropriations from the state'sgeneral fund.

Description of funding mechanism

Based on both the ASTD report and oursurvey to date, we can report the followinggeneral descriptions of these five fundingmechanisms and some of the issues raisedby each.

1. Special Taxes:

Five states (Alaska, California,Delaware, Michigan, and RhodeIsland) levy a special tax to fundtheir programs. The most commonis a tax equal to 0.1% of theemployer's unemployment insur-ance tax. (Michigan's special tax islevied on Worker's Compensationpremiums and is limited to fund-ing training programs on occupa-tional safety and health.)

One of the key facts about thisfunding mechanism is that it hasgenerally been adopted concurrentwith either a reduction of theunemployment insurance tax byan equal amount, or adopted at atime when the unemploymentinsurance tax rate was beingreduced.

A second consideration regardingthis mechanism is that the revenuegenerated is tied directly to pay-

36

roll. Thus, in an economic down-turn, revenue tends to decline atthe same time that interest intraining and retraining generallyincreases. Unless the fund hasbeen managed to provide for this,the program may be underfundedwhen it is needed most. Similarly,some of the enabling legislationfor these taxes allocated the fundsraised exclusively for trainingcosts and relied upon existingagency staff to administer theprograms. Subsequent tight bud-gets forced staff to either drop theprogram administration or expenda portion of the funds on adminis-tration. At least one state found itnecessary to amend the legislationto provide adequate programsupport staff.

2. Tax Credits::

Four states (Connecticut, Illinois,Iowa, and Mississippi) allow a taxcredit against the state's corporateincome tax or business tax. This isthe most common form of indirectfunding by states. These systemsallow employers to claim creditsfor expenditure for certain types oftraining or retraining. Tax creditprograms are generally adminis-tered through the state's revenuecollection agency; thus the admin-istrative focus is on the monetaryissues with little or no attention tothe training itself. Accordingly, tobe successful from an educationand training perspective, a taxcredit program requires eitherjoint agency administration orspecific conditions and limitationsbuilt into the statutory language inorder to target training efforts.

43

Appendix F

3. Sale of Bonds or Certificates:

Two states (Iowa and Missouri)allow the sale of certificates orbonds to finance training pro-grams. The bonds or certificatesare issued by local CommunityColleges to fund programs thatwill be provided for employees orprospective employees of a privateemployer. The bonds create a poolof available training dollars for theemployer which are used eitherfor programs offered through thecommiuiity college, or inhouseby the employer with assistancefrom the community college inprogram development and imple-mentation.

The bonds are retired over a tenyear period by one of severalmeans. Originally, both the Iowaand Missouri programs relied ontax in: -2ment financing (mostcommonly associated with urbanrenewal funding) to retire thebonds. This system was found tobe unconstitutional in Missouribut is still being used in Iowa.

The second method for retiring thebonds is for the employer to iden-tify the employees who receive thetraining and a portion (1.5% to2.5%) of the state withholding taxpaid by those employees is di-verted by the Department ofRevenue to the Community Col-lege retire the bonds.

4. Dedicated Lottery Funds:

Oregon is one three states whichearmark a portion of state lotteryfunds for training programs. Theothers are Florida and Kansas.

37

These programs divert a portion oflottery revenues to the state'scommunity colleges to providetargeted training programs.

5. Direct Loan Programs:

Three states (Illinois, Michiganand Wisconsin) have some form ofdirect loan programs. Illinois, andWisconsin provide low interestloans to employers for trainingcosts. Michigan's program paysthe interest on loans taken out byemployers to train employees.These programs are funded bygeneral fund appropriations in oneof two ways, either as an annualappropriation or a one time "seedmoney" allocation. In concept, theseed money allows a one timegeneral fund contribution to growthrough interest and loan repay-ments into an expanding pool ofavailable money.

The state of Maine had a loanprogram which was dropped in1990, but serves to illustrate somekey issues regarding loan options.In order to make these programsattractive to business, incentivessuch as lower interest rates orlonger repayment schedules mustbe offered. If the seed moneyapproach is utilized, however, theinclusion of these incentives sub-stantially slows the rate at whichthe seed money will grow andextended repayment schedulesnecessitate a relatively large initialappropriation.

This was the major problem encoun-tered by the program in Maine. Begun witha relatively small initial appropriation, theprogram provided low interest loans with aone year delayed repayment schedule.

44

Appendix F

Theoretically, employers would beginreceiving the benefits of the workforce skillsupgrading before they had to begin repay-ment on the loans. However, with droppingcommercial loan interest rates and thedelayed payment schedules, the fund couldnot grow and the state could not offeradditional incentives.

General Considerations

Regardless of what funding mechanism isadopted, some considerations must be keptin mind. The most fundamental is a deter-mination of whether the design of theprogram is to encourage employers toexpend more of their resources on trainingand retraining workers or to create a fundof available dollars for training and retrain-ing that is not necessarily tied to the em-ployer who funds it. This is the difference,

for example, between a system of employertax credits and a special tax on unemploy-ment insurance payments.

Another general consideration is targeting.Will the program target particular indus-tries, segments of the population orworkforce, or geographic areas which meetsome criteria? The underlying issue is howmuch money will such a program need tobe successful and will the mechanismproposed generate that level of funding.

A third consideration is including in thesystem recognition of efforts that are al-ready underway. For example, if a specialtax is levied, it should carry provisions for asystem of employer tax credits for contribu-tions to an existing apprenticeship pro-gram.

38 45

APPENDIX G

1VORKER EDUCATIONION AND TRAININGCOMMITTEE MEMPERS,AND RESOLUTIONS

Members of the Committee

Harold"Rick" AdamsCarpenters Local 247

Gloria AleksichCommunicationWorkers of America

Jessie BostelleOregon Public Employees Union

Dan CampbellInternational Brotherhood of ElectricalW orkers

Don CaslerWestern Council of Industrial Workers

Walt ConnerInternational Brotherhood of ElectricalW orkers

Andy DobsonAmalgamated Transit Union

Daniel FaddisInternational Brotherhood of ElectricalW orkers

Wallace D. FeistAmalgamated Transit Union

Iry Fletcher, PresidentOregon AFL-CIO

Garry P. GoodwinUnited Brotherhood of Carpenters andJoiners

Donna HammondColumbia Pacific Building Trades Council

Bob HayesUnited Steelworkers of America

Dan LacyUnited Steelworkers of America

John LillestrandOregon Machinists Council

Wally MehrensColumbia Pacific Building Trades Council

Tim MarkwellAmerican Federation of State, County andMunicipal Employees

Perry McgillSheet Metal Workers

Richard MilneOregon Machinists Council

John MohlisBricklayers and Allied Craftsmen

Mike MurphyInternational Brotherhood of ElectricalWorkers

Donald PermanSheet Metal Workers

Ted RabernWestern Council of IndustrialWorkers

Ron ShermanOregon Machinists Council

Kurt WillcoxAmerican Federation of State, County andMunicipal Employees

Brad WittOregon AFL-CIO

39 4 a

Appendix G

Advisors, Guests and Ex-Offico Members

Bob BaughOregon Economic Development Depart-ment

Steven DeutschLabor Education and Research Center

Everett L. GivensLabor Education and Research Center

Margaret Hal lockLabor Education and Research Center

Fred HoehlerWorker Education and Training Committee

Bob HulenNorthwest Labor Press

Bill SamAFL-CIO Region 9

Glenn ShuckLabor's Community Service Agency

Quint RahbergerApprenticeship and Training Division

Marcus WidenorLabor Education and Research Center

40 4 7

A I en dix G

RESOLUTIONS

Adopted by1992 Oregon AFL-CIO Convention

Resolution No. 24Introduced by the Committee on Worker Education and Training


Assistance to Affiliates in Workforce Education and Training

WHEREAS, the Oregon AFLCIO recognizes the necessity of pursuing a proactive, highwage strategy for economic development; and

WHEREAS, a high wage strategy is dependent on a well educated and trained workforce;and

WHEREAS, the Oregon AFL-CIO has outlined this strategy in its report, Worker Educationand Training in Oregon: The Challenge for Labor; therefore be it

RESOLVED, that the Oregon AFLCIO will assist affiliated unions in addressing workereducation and training issues by providing them with resource materials and sponsoringeducation forums that will ivAp local unions and Central Labor Councils develop expertisein these areas.

41

Appendix G



Legislation to Support Workforce Education and Training

WHEREAS, the Oregon AFL-CIO recognizes the necessity of pursuing a proac-tive, high wage strategy for economic development, and

WHEREAS, a high wage strategy is dependent on a well educated and trainedworkforce; and

WHEREAS, the Oregon AFL-CIO has outlined this strategy in its report, WorkerEducation and Training in Oregon: The Challenge for Labor; therefore be it

RESOLVED, the Oregon AFLCIO Standing Commmittee on Worker Educationand Training should examine funding mechanisms for private sector educationand training programs and recommend to the Executive Board a legislativepackage that would provide a fund for worker education and training that meetseach industry's needs and that protects current apprenticeship programs, and beit further

RESOLVED, that the Oregon AFLCIO Pursue legislation mandating that allState of Oregon agencies dedicate a sum equal to 2% of payroll for employeeskills training and skills development.

42 49

Appendix G



Alliances with Employers to Promote Workforce Education andTraining

WHEREAS, the Oregon AFL-CIO recognizes the necessity of pursuing a proac-tive, high wage strategy for economic development, and

WHEREAS, a high wage strategy is dependent on a well educated and trainedworkforce; and

WHEREAS, the Oregon AFL-CIO has outlined this strategy in its report, WorkerEducation and Training in Oregon: The Challenge for Labor; therefore be it

RESOLVED, that the officers of the OREGON AFLCIO seek to develop alli-ances with Oregon employers interested in improving workforce education andtraining opportuaities for their firms and industries, and be it further

RESOLVED, that the officers of the Oregon AFLCIO encourage - mployergroups to work amongst themselves and with labor in developii.. education andtraining programs.

43 50

Oregon AFL-CIO1900 Hines Street SESalem, Oregon 97302

L RCLabor Education and Research CenterUniversity of OregonEugene, OR 97403(503) 346-5054

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