Challenges and Policy Implications
1. Changes in policy environment
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Chapter
Ⅴ Challenges and Policy Implications
1 Changes in policy environment
Foreseeable decrease in the working-age population, resulting from low birth rates and aging demographics, leads to concerns over economic vitality from weakening productivity and skills shortage and deficiency from retirements. The significance of apprenticeships will be further emphasized, as the program counters the decrease in productivity from smaller working population by improving productivity of individual workers and providing an opportunity of skills transfer before experts retire. Furthermore, structural demographic change, such as decreasing student population, may become an impediment to the expansion of apprenticeships; efforts to broaden the participant pool are needed. A new program needs to be developed for general high school students, who are currently excluded from the apprenticeships, based on a detailed analysis of students' career path. Since the apprenticeship programs for new workers are also highly likely to stagnate, they should focus on the advancement of skills in existing employees through the expansion of the participant pool.
The labor market is becoming more volatile with diversifying ways of work, changing
core job competencies and more frequent turnovers, owing to the new technologies and
business models, epitomized by the fourth industrial revolution. To address the changes in
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industry demand, more apprenticeship programs need to be developed in new industries and new technologies, while actively seeking new companies to join the programs based on demand survey. Moreover, automation has elevated concerns over decreasing number of jobs and heightened the need for position transfer training for workers in traditional manufacturing sectors. Schemes to train workers in new industries and technologies through position transfer of existing workers should be considered as apprenticeships have the added benefit of learning in the field through OJT.
In the light of the above-mentioned demographic changes and labor market volatility, social demand for consistent and active lifelong career management is expected to grow.
Therefore, in the operation of the programs, it needs to take into account the lifelong career management of apprentices. In particular, for participants to manage their careers and growth through the apprenticeship program, a detailed career path within the participating company must be provided
24). In the case of apprenticeship schools, many companies only recognize the degree at the time of initial employment contract, effectively not recognizing any further degrees apprentice student obtains in the future (Ahn et al., 2019). In such context, to select companies that would be willing to help apprenticeship student’s settlement in the labor market and sustained development, having an established career path should be considered criteria in the company selection process. Furthermore, it could require participating companies to provide information on support of the apprenticeship student’s further education and career advancement roadmap within the company in the apprenticeship work contract.
24) In general, there is no official career path for apprentices within participating companies.
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2 Flexibility
Because the primary goal of the apprenticeships is to raise talents demanded by industries and companies through providing systematic education based on NCS, it must be able to adjust its training programs based on the environment and circumstances industries and companies face. However, the current system follows a rigid single standard in training program design and operations, making it difficult to reflect diverse industry characteristics. Therefore, in order to operate the apprenticeship system more effectively, it needs to reinforce the flexibility in training programs and also needs to develop various types of apprenticeship programs.
First, the system should move on from the current government-driven approach to find ways to increase industry and civilian participation, and management mechanisms based on level of autonomy. Although there are times active government involvement and support is needed, control-oriented approach must be avoided to allow flexible workforce training fit for the accelerating change in technology. The apprenticeship system should adopt various forms from the industry-led autonomous programs with low-level control government driven models with extended control. The level of financial support could depend on the control levels and different forms of awarding qualification could be considered accordingly. Furthermore, it is essential to develop and implement management systems that discourage companies from abusing the apprenticeship system as means to supplying low-cost labor.
NCS has not been yet developed for many competencies related to new industries and
technologies. If training programs are continued to be designed based on NCS, they may
have discrepancies from the field, in which case, the effectiveness of the program cannot
be guaranteed. Therefore, considering the unique circumstances in new industries,
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apprenticeship system should allow the participation for sectors yet to have NCS or NCS
based qualification. Current apprenticeship standards are based on the past industrial
environment, such as traditional manufacturing sector, prior to the Fourth Industrial
Revolution, more flexible standards could be applied. While providing high level of
autonomy, the government should actively participate in areas such as adjusting company
selection criteria and training OJT instructors, taking into account weak infrastructure and
staff capacity to operate the training program.
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3 Participation of companies
Since participating companies serve as both employers for apprentice students and training institutions, their active participation is essential for sustainable outcomes of apprenticeships. However, there are difficulties in retaining participating companies and recruit new ones because of negative perception and lack of awareness of the apprenticeships. Main reasons associated with the negative perception are absence of apprentice trainee and instructors during training periods, and workplace conflicts from HRD personnel’s increased workload. This indicates that for the streamlined operation of the apprenticeships it is essential to improve the understanding and perception of the programs among members of the participating companies while identify new participating companies.
One method to improve participation of companies is awarding “Certification of Excellent Participating Company” to those who have dedicated themselves to training talent and achieved certain level of outcome. Various benefits could be considered for the certified companies, including tax audit exemption, tax benefits, partial exemption from workplace safety control through coordination among various ministries and agencies.
Certified companies will also take pride in their contribution to the apprenticeships, and
their external images will improve as well, which, in turn, would encourage further
participation of other companies. The certification program will not only increase
awareness of the apprenticeships, but also serve as an important data point for apprentice
students selecting a participating company.
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4 Governance
Although the coordination among government, public agencies and industry associations, and private sector companies is critical for apprenticeships, it has not yet formed a flat governance structure and operates under a government driven Top-Down governance system
25). For example, HRD Korea establishes operations plans based on the policy direction of Ministry of Labor and Employment, and institutions such as Korea Polytechnics, Industry Skills Councils, and other support bodies, all deliver tasks outsourced by HRD Korea. Because OJT and Off-JT, the core curriculums of the apprenticeships, are operated by the private sector
26), the private sector’s role is critical in implementing the training and delivering the outcomes. Therefore, a cooperative governance structure that allows public-private cooperation and partnership must be established; such a governance structure must further allow main issues of the system to be openly discussed for a streamlined operation. Moreover, because the current apprenticeship system has been driven by the central government since inception, the program is focused on traditional manufacturing sectors outside of the greater metropolitan area, which does not allow for regional considerations to be reflected. Each regional government seeks to identify and develop industries suiting its region; the apprenticeship system should reflect the regional governments’ industry policies to serve as a key pillar for talent training.
The basic premise of cooperative governance is equal relationship and horizontal structure, under which various stakeholders could have active discussions and reach a consensus for decision making. As such, a governance structure needs to be established that allows active participation of those who represent the stakeholders in the apprenticeship system, such as ISC and RSC, labor unions. It is also recommended that key roles of each
25) Ministry of Employment and Labor → Human Resources Development Service of Korea → Related Agencies 26) Participating companies, Joint Training Centers
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ChapterⅤ Challenges and Policy Implications 103
participant in the governance structure be stipulated. There are many cases where a
governance structure has an exterior structure that incorporates diverse participants, but
only in writing. Considering the complex nature of the apprenticeships system, a
governance form only with declarative meaning will only create further confusion and
inefficiency. Therefore, it is critical that the roles and responsibilities of participants in the
governance system be clearly postulated.
Reference
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Hong, Gwang-Pyo., Park, Jong-Sung., Kim, Dae-Young., Ahn, Sun-Min., Oh, Hyuck-Je., Park, Dong-Jin., Jeon, Seong-Jun., Oh, Ho-Young. (2020). Apprenticeship survey 2020, HRD Korea & Korea Research Institute for Vocational Education and Training(KRIVET).
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HRD Korea(2017). The 4th Announcement for Recruiting Participating Companies for Apprenticeship in 2017.
HRD Korea(2017). Training Plans for In-Company Trainers of Apprenticeship in 2017.
HRD Korea(June 2017). Improving Apprenticeship Program Development and Verification System.
HRD Korea(September 2018). Current Status of Apprenticeship in Korea(Statistical Data).
HRD Korea(2018). Operation Budget for Apprenticeship in 2014-18.
HRD Korea(2018). Training materials for 2018 Apprenticeship program recognition committee.
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HRD Korea(September 2020). Current Status of Apprenticeship in Korea(Statistical Data).
HRD Korea(2020). The 1st Announcement for Recruiting Participating Companies for
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ILO(2012). Overview of Apprenticeship Systems and Issues.
Jeon, Seung-Hwan & Kang, Kyeong-Jong & Lee, Han-Byul & Chang, Hye-Jeong & Jeong, Dong-Yeol(2015). Economic & Social Outcome Analysis of Korean Apprenticeship (2015), Ministry of Employment and Labor & Korea Research Institute for Vocational Education and Training(KRIVET).
Jeon, Seung-Hwan & Kang, Kyeong-Jong & Lee, Han-Byul & Chae, Chang-Kyun &
Hwang, Sung-Su(2016), Economic & Social Outcome Analysis of Korean Apprenticeship (2016), HRD Korea & Korea Research Institute for Vocational Education and Training (KRIVET).
Jeon, Seung-Hwan & Kim, Dae-Young & Lee, Han-Byul & Oh, Ho-Young & Lee, Soo-Jeong(2017). System Improvement Plans to Increase Sustainability of Korean Work-learning Dual System, HRD Korea & Korea Research Institute for Vocational Education and Training(KRIVET).
Jeon, Seung-Hwan & Park, Jong-Sung, Kim, Sang-Ho, Kim, Dae-Young, Lee, Han-Byul, Jeon, Seong-Jun(2018). Apprenticeship survey 2018, HRD Korea & Korea Research Institute for Vocational Education and Training(KRIVET).
Kang, Kyeong-Jong(2017). How to Change Korean Apprenticeship for Dealing with
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Industry 4.0, Presentation Material for the 4th KRIVET International Conference on Apprenticeship.
Kang, Sae-Wook(2016). Performance Evaluation of Apprenticeship, National Assembly Budget Office.
Kim, Dae-Young & Chang, Joo-hee & Lee, Han-byul & Choi, Su-Jung(2017).
Establishment of In-company Trainers Training and Management System, HRD Korea
& Korea Research Institute for Vocational Education and Training(KRIVET).
KOREATECH, Institute of Competency Development(March 21, 2018). The way of implementing intensive training for capacity development of in-company trainers.
KOREATECH, Institute of Competency Development(July 2018). Timetable of training for in-company trainer and HRD staff.
Lee, Han-byul & Jeon, Seung-Hwan(2016). Cost-Benefit Analysis of Korean Work- Learning Dual System. The Journal of Economic and Finance of Education, 25(3), 75-105.
Lee, Han-byul(2018). Apprenticeship in Korea, Presentation Material for the Korea-IDB Employment Labor Policy Forum(held on December 5-7, 2018).
Ministry of Employment and Labour(MOEL) & HRD Korea(2016). Operation Manual for Korean Apprenticeship.
Ministry of Employment and Labor(MOEL) & Human Resource Development Service of
Korea(HRD Korea)(2017). Korean Apprenticeship Manual.
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Ministry of Employment and Labor(MOEL) & Human Resource Development Service of Korea(HRD Korea)(2020). Korean Apprenticeship Manual.
Ministry of Employment and Labor(March 6, 2018). Regulations for Apprenticeship Management & Evaluation.
Ministry of Employment and Labor(October 2017). Operation Rules for Apprenticeship.
Related Ministries(2015). Expanding Korean Apprenticeship from New Workers to School Students.
UNESCO & UNEVOC(2015). Delivering TVET through Quality Apprenticeship (Background Note).
<Legislation>
｢Act on Support for Apprenticeship in Workplace｣
｢Employment Insurance Act｣
「Occupational Skills Development Act」
｢Workforce Development and Training Act｣
<Web site>
HRD-Net http://www.hrd.go.kr/hrdp/gi/pgieo/PGIEO0530L.do (searched on February 1,
2019)
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Appendix Act on Support for Apprenticeship in Workplace
Articles Regulations
Chapter I General Provision
Article 1 Purpose
This law stipulates matters about apprenticeship system such as contents and methods of apprenticeship which is operated as part of vocational education & the protection of apprentices’
working conditions; while aiming to contribute to the improvement of the nation’s economy by promoting apprentices’
employment, improving their socioeconomic status by linking apprenticeship with qualification system.
Article 2 Basic principle
① Apprenticeship shall reflect the industrial demands and shall be implemented systematically while considering the apprentices’ capability and aptitude.
② Apprenticeship shall be provided so that apprentices can acquire vocational competencies that is customized to match their work, such as required knowledge and skills.
③ Apprenticeship shall be implemented focusing on OJT;
moreover, the job, Off-JT and OJT that will be performed by the apprentice, shall be tightly linked together.
④ The apprenticeship program shall ensure that the vocational competency acquired by apprentices is socially acceptable by linking them to the related qualifications; and the program shall contribute to the creation of a competence based society.
Article 3 Definitions
The definition of the terms used in this act are as follows;
1. “Apprenticeship” is defined as form of vocational education and training, whereby employers hire apprentices to work in a particular job while offering them vocational training, as shown below, and providing them with a recognized qualification depending on their assessment.
a. Vocational training which delivers the necessary knowledge and skills for job to apprentices, from people with professional skills and knowledge, by using firms’ production facilities and equipments; (hereinafter referred to as ‘apprenticeship OJT’;
On the Job Training)
b. Vocational training which is performed at a vocational competency development facility or vocational training institution, that is separated from the working place;
(Hereinafter will be referred to as ‘Off-JT’; Off the Job Training)
2. “Training company” is defined as a company, which conducts dual training as part of the apprenticeship system pursuant to Article 15(1), which is designated pursuant to Article 13.
3. “Apprentice” is defined as a worker who is provided apprenticeship programs by employers pursuant to Article
Apprenticeship in Korea 2020
Appendix 109
Articles Regulations
2(1)1.
4. “Training employment contract” is defined as a contract between apprentice and employer, and includes contents about apprentices performing job duties while being provided with vocational training set by the dual training system pursuant to Article 15(1); and employers providing apprentices apprenticeship programs with wages.
5. “Trainer” is defined in accordance to Article 33 of ｢Workforce Development and Training Act｣ which includes vocational competency development instructors and/or a person with professional knowledge and technique in related fields who is assigned by employers to deliver the necessary knowledge and skill to apprentices pursuant to Article 19.
6. “Apprenticeship qualification” is defined as the qualification given which accredits technique, skills and services according to apprenticeship system.
Chapter II Promotion
system of Apprentice
ship
Article 4 Responsibilitie s of state, etc.
① The State and local governments shall devise a scheme to accomplish goals of apprenticeship.
② Government shall evaluate the vocational competence acquired by the apprentice and depending on the result, grant the apprentice with the related qualifications; and shall ensure that the qualified apprentice will be given the same treatment as regular worker who has received the same level of qualification in related fields.
③ Employers, employers’ representatives, and human resource development councils of industrial sectors(hereinafter shall be referred to as HRD council), which is pursuant to Article 12(2) of 「Industrial Development Act」shall provide high-quality and efficient programs to apprentices, and train them as capable workers with required knowledge, skill; and shall collaborate in the protection of working conditions and employment stability of the apprentices.
Article 5 Relations with
other law
① With regards to the working conditions of apprentices, matters that are not covered in this law shall follow the 「Labor Standards Law」
② With regards to the vocational training of apprentices, matters that are not covered in this law shall follow the 「Occupational Skills Development Act」.
③ Students currently enrolled in industrial education institution, pursuant to Article 2(2) of 「Enforcement Decree of The Promotion of Industrial Education and Industry Academic Cooperation Act」, who are participating in the apprenticeship, will adhere to the provisions of 「Vocational Education and Training Promotion Act」, in regard to matters on training
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Articles Regulations
rights.
Article 6 Establishment
of promotion plan for apprenticeship
① The Minister of Employment & Labor shall establish the promotion plan for apprenticeship (hereinafter shall be referred to as promotion plan) triennially.
② The details of the content to be included in the promotion plan are as follows;
1. Basic direction of the apprenticeship policy
2. Matters regarding employment stability and treatment of apprentices
3. Roles and support of trade unions, employer’s groups and HRD councils.
4. Matters regarding the linkage between apprenticeship qualification and national technical qualification, persuant to Article 2 of 「National Technical Qualifications Act」
5. Other necessary items that the Minister of Employment &
Labor deems necessary
③ To efficiently establish and implement promotion plan, the Minister of Employment & Labor shall conduct a survey on apprenticeship once every three years and shall reflect outcomes of the survey in the promotion plan.
④ Other necessary matters regarding the establishment of the promotion plan, the scope and method of survey referred to in paragraph(3) shall be prescribed by Presidential Decree.
Article 7 Deliberation for
important affairs of apprenticeship
The following matters of apprenticeship shall undergo deliberation from the employment policy council, according to Article 10 of 「Framework Act on Employment Policy」(hereinafter shall be referred to as employment policy council), .
1. Establishment of promotion plan for apprenticeship
2. Apprenticeship occupation and standards for vocational training pursuant to Article 11.
3. Support system for training companies and vocational education training organizations participating in apprenticeship
4. Assessment and qualification of apprentices
5. The other necessary items that chief of the employment policy council deems necessary for effective management and promotion of apprenticeship.
Article 8 Regional cooperation for apprenticeship
① The Minister of Employment & Labor shall cooperate with local government, regional training organizations and regional trade associations in order to achieve the regional goals of apprenticeship.
② The details of the matters that is required to accomplish the regional goals of apprenticeship, shall be decided by the Presidential Decree.