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  1. 1. Skilling the youth of India- Changing the model of Apprenticeship -By Subham Agarwal Shweta Vishwanathan Himani Sharma Swati Lal Monikuntal Sonowal Year V, BA.,LLB(Hons) NALSAR, University of Law, Hyderabad
  2. 2. —  These numbers show not even half of the total population can be counted as the labour force of the country. Capacity of training in India Proportion of Population in the working age (15-59 years) 58% (2001) 64%(2021) Total Labour Force (2004-2005) 420 million 470 million Total Labour Force (2009-10) 520 million- 40% of the Population No. of persons entering the workforce per annum: 12.8 million Vocational Training Capacity: 3.1 million Total ITIs/ITCs: 8039 with a capacity of 11.16 lakh Government ITIs: 2133 with a capacity of 4.32 lakh ITCs: 5906 with a capacity of 6.84 lakh For every million of the population between 15-19 years, no of places in the ITIs/ITCs Rest of the Country: 5000 Andhra Pradesh, Kerala, Karna taka, Orissa, Tamil Nadu: 13,000
  3. 3. India’s Regulatory Framework and its consequences —  The Apprentice Act , which is the regulatory framework in India, no where claims to link itself with improving skill based training or increasing employability. —  Instead, it aims to strictly control and regulate the terms of apprenticeship and impose various obligations on the employer without providing any benefit, thereby disincentivising the employer from even participating in the apprenticeship program —  The World Bank Report estimates that close to 2/3rd of the apprentices do not find jobs in what they were trained for and 1/3rd of the apprentices are trained in obsolete trades. —  There is a mismatch between what the Act regulates and what is demanded by the market Total Employment (2004-05) 385 million 2009-10: 506 million 1.97% average annual growth FORMAL VOCATIONAL TRAINING RECEIVED IN INDIA OTHER COUNTRIES 60% Developed Countries 96% Korea 2% (15-29 years
  4. 4. Various types of Vocational Training in India
  5. 5. Problems in The Apprentices Act 1961 versus the German and the Swiss Models of Apprenticeship Provision Indian model German model Swiss model 1)  Qualification to be an ‘apprentice’ 2)  Costs of the System Ø  Has to be above 14 years of age. Ø  Has to satisfy such standards oreducation and fitness as may be prescribed ( different standards may be prescribed for different trades). Ø  The cost of the Industrial Training Institutes are borne by the employer. Ø  Employer pays for the basic training also whether in-house or outsourced and the cost of the stipend to the apprentice as well. Ø  Students are separated into different tracks of secondary education at the age of 10 years, amely Hauptschulen, Realschulen and Gymnasien. Ø  End of Compulsory Schooling (Hauptschulen) is designed for the students who plan on doing apprenticeship programmes which start at age 16. Ø  Realschulen focuses on providing the skills necessary for an apprenticeship and more advanced academic theory is taught as compared to the Hauptschulen. Ø  The highest level is Gymnasien which is for students who plan to attend Universities to do further studies. Ø  Shared between regional governments, private companies and the apprentices themselves Ø  Ordinance issued by the federal office of professional education and technology which defines the qualification of the apprentice. Ø  System of education is dual because student spend one day of week in school and rest of the week trained by the company or one week in the company and next week learning occupationally relevant subjects in school. Ø  Additional training in industrial training centres for apprentice to learn complementary practical skills. Ø  Cost are met through a mix of federal and cantonal funds. Ø  The trade and professional association bear the cost of assessment of apprentices. Ø  Federal funds are available to small firms that cannot meet all the training requirement of an apprentice. Ø  Firms cover there training cost over 3-4 years of apprentice and manage to make a small profit.
  6. 6. Provision Indian model German model Swiss model Stipend Graduate Apprentice (Rules) Ø  Engineering Graduates: Rs 1970 p.m. Ø  Sandwich Course (students from degree institutions): Rs 1400 p.m. Ø  Diploma holders: Rs. 1400 p.m. Ø  Students from diploma institutions: Rs 1140 p.m. Trade Apprentice Ø  1st year – 850 per month Ø  2nd year - 940 per month Ø  3rd year – 1090 per month Ø  4th year – 1230 per month Ø  One-third of the wages of a regular worker Ø  They are fixed across companies regionally through the collective agreement of the participating employers Ø  Apprentices are paid, 1/5th the wage of a Skilled Blue Collar Worker which is
  7. 7. Suggestions: Ways to Improve India’s Vocational Programme —  To make setting up an apprentice system attractive to the companies there has to be some incentive to engage in it. Indian companies aren't interested in recruiting and training apprentices as the entire cost in borne by them. —  Both the German and Swiss firms have a large amount of freedom to allocate tasks to their apprentices and the Swiss firms make the apprentices do the work that a skilled worker does. Therefore, apprentices are highly productive from day one of the program. —  Industries in India have no autonomy and have to follow a program set out by the apprentice advisor appointed under the Apprenticeship Act, 1961. The German and Swiss companies, on the other hand, handle the course content in the schools, making them occupationally relevant. They revise the existing list of occupations being taught and also add new ones as per the market requirement and this entire exercise is funded by the Government. The Government is also responsible for funding education in the vocational schools as well. The companies are only responsible for funding its own in-company training. —  The wages of apprentices in India are determined by the Apprentice Rules decided in way back in 1992 and have not been increased since then. As compared to this, Germany and Switzerland determine wages through Collective Wage Negotiations by the industry.
  8. 8. —  Further, Germany and Switzerland have a clear demarcation of roles and responsibilities of the different authorities in their respective Apprenticeship Systems. In India, firstly Ministry of Labour and Employment and HRD Ministry are involved and other authorities include National Council on Vocational Training, State Council on Vocational Training and the National Skill Development Corporation. There are so many authorities with no clear understanding on whose function is what that there are parallel decisions on the same issues. —  Added to this, in India, individuals are being trained in occupations that are obsolete. Demand and supply need to be matched as mentioned before in the major lacunae in our Regulatory Framework. —  This can be done using the Swiss method of “Apprentice Barometer”. At the central level there are business surveys conducted twice a year and telephone surveys of all the youth between the ages of 14 and 20 are taken as well. The regional government does this on a monthly basis. Therefore, for a system of skilling to be efficacious, an assessment of the apprentice market has to be done.
  9. 9. —  References: —  Kathrin Hoeckel and Roberth Schwartz, Learning for Jobs OECD reviews Vocational Education and Training: Germany, Sep. (2010); —  Kathrin Hoeckel, Simon Field and W. Norton Grubb, Learning for Jobs OECD Reviews of Vocational Education and Training, Switzerland, Apr (2009); —  Hilary Steedman, The State of Apprenticeship in 2010, a report for the Apprenticeship Ambassadors Network, Centre for Economic Performance, London School of Economics and Political Science; —  World Bank Report on Skill Development in India (2003) —  Regina Dionius et al, Cost and Benefit of Apprenticeship Training: A Comparison of Germany and Switzerland, Institute for the study of Labour, Apr (2008) —  Apprenticeship Act 1961, Apprenticeship Rules 1992,Vocational Training Act 2005; Vocational and Professional Education and Training 2002; Apprentices Act 1961 —  Planning Commission Report on Skill Development