Sixth Survey on
the Effect Given to the Tripartite Declaration of Principles
concerning Multinational Enterprises and Social Policy


Paragraphs 29-32 of the Declaration

Questions

(1) Does training provided by MNEs also meet the needs of the development policies of host countries?

(2) Are there national programmes (including funds) aimed at enhancing/encouraging human resources development?

(3) If so, do national and multinational enterprises support and actively participate in such programmes? What role do they have in the process of implementation?

Answers

Antigua and Barbuda, Argentina, Australia, Austria, Bahamas, Bangladesh, Barbados, Belgium, Brazil, Cambodia, Canada, Chad, Chile, Colombia, Costa Rica, Czech Republic, Dominica, Ecuador, Egypt, Estonia, Finland, France, Gabon, Grenada, Hungary, India, Ireland, Italy, Japan, Jordan, Republic of Korea, Kuwait, Luxembourg, Mauritania, Mauritius, Mexico, Namibia, Netherlands, New Zealand, Nicaragua, Nigeria, Norway, Pakistan, Portugal, Romania, St. Vincent, Singapore, Slovakia, Slovenia, Spain, Sri Lanka, Swaziland, Switzerland, Syrian Arab Republic, Thailand, Trinidad and Tobago, Tunisia, Turkey, United Kingdom, United States, Venezuela, Zambia, Zimbabwe.

The Government of Antigua and Barbuda indicates that training provided by MNEs is in line with national development policies and there are government programmes for encouraging HRD, from which enterprises also benefit.

The Government of Argentina states that national training policies are closely linked to employment, HRD programmes and agreements concerning training which have been concluded with enterprises. The country has ratified Convention No. 142. Details of various types of training programmes carried out during the period covered by the survey are contained in a report annexed to the main reply. They include the following: special training programmes for women; retraining of public sector workers in privatized enterprises; retraining workers to use new technologies in ways that improve productivity and the competitiveness of enterprises; and institution-building (i.e. creation of networks of institutions involved in training and vocational guidance). According to the report, 8,808 contracts for providing on-the-job training to young persons up to the age of 24 years were signed between January 1992 and July 1995. Trainees received wages corresponding to the occupational categories in which they were placed, in accordance with the collective agreement covering the particular branch of industrial activity. Over the same period, 9,465 first-time jobseekers of up to 24 years of age, obtained contracts enabling them to put to practical use the training they had already received. Between 1993 and 1995 the Government concluded 76 vocational training agreements with enterprises and employers' organizations. Most of the establishments were of national origin and 20,328 persons benefited from those arrangements.

The Government of Australia notes that training is one of the subjects dealt with during discussions between local and foreign employers and government officials in Queensland. While no analysis of MNEs' training policies exists, MNEs (which generally have medium- and large-scale operations) are seen as being more likely to provide formal training than small enterprises. Training given by MNEs in South Australia and in the Australian Capital Territory (ACT) is generally in line with general development policies and the relevant legislation (e.g., the ACT Vocational Training Act 1989). In the case of South Australia, these enterprises have played an important role in the field of training. There are national and regional institutions and programmes devoted to HRD, e.g., the Australian National Training Authority, the State Department of Training and Further Education (South Australia) and the Australian Vocational Training System which was implemented in 1994. Private sector employers, which include MNEs, are assuming greater responsibility in this domain, while Government (at both the state and national levels) is involved mainly in coordination, strategic planning and providing guidance and funding. On the whole, employers support the Government's initiatives. They collaborated in the development and implementation of the HRD programme known as "Working Nation", which was launched in 1994. Under this programme, employers are given incentives to train young persons and a National Employment and Training Task Force was set up to increase jobs and training opportunities for new labour market entrants and unemployed persons. In New South Wales, there are a number of policies and institutional arrangements for assisting individuals, the community and industry to achieve high-quality results from training initiatives. MNEs do not only take active part in training programmes, they often serve as role models for local enterprises.

The Government of Austria notes that its reply to the last survey is still applicable. It adds that under the Vocational Training Act workers and employers, including those in MNEs, participate in the elaboration and implementation of vocational training policies, through their representative organizations. They take part in the activities of the Land Vocational Training Advisory Councils and the Federal Vocational Training Advisory Council. They have the right to express their views and submit proposals on draft legislation and regulations that deal with training.

The Government of the Bahamas points out that the training provided by MNEs meets the needs of the national development policies. There are national programmes for encouraging human resources development, and an additional B$10 million are being devoted to the improvement of the Technical and Voca-tional Institute. National and multinational enterprises make financial contributions to training programmes and also help in identifying specific skills needed.

The Government of Bangladesh reports that MNEs conduct internal training programmes. At times they nominate participants to attend programmes organized by the Government. Such training enables employees to enhance their knowledge, skills and attitudes to work. MNEs cooperate with the government agencies involved in programmes for skill formation and the development of vocational training. The Bangladesh Employers' Association concurs with the Government.

The Government of Barbados notes that since the type of investment encouraged is usually in keeping with the country's developmental policies, the training provided by MNEs therefore contributes both directly and indirectly to the attainment of national objectives in this regard. There are national programmes aimed at enhancing and encouraging HRD. The National Training Board -- i.e. the Barbados Vocational Educational Training Board, and the Technical Vocational Educational Training (TVET) Council, are established organs that promote national HRD programmes. The emphasis is on apprenticeship programmes, training for persons requiring new skills and the retraining of persons who have been retrenched. The TVET Council is responsible for preparing plans, establishing standards and coordinating technical and vocational education and training activities. The organizations identify, formulate and manage strategies and programmes for supporting the national export-promotion drive and meeting the demands of a changing economy. MNEs usually train their employees both in Barbados and abroad, to ensure that they meet the needs of the particular enterprises. MNEs contribute to, and benefit from, training provided by the national training institutions. Funding for the delivery of training through these organizations comes from a training levy which all employers, including MNEs, must pay. Participation in the apprenticeship programmes is open to all enterprises. Both the Barbados Vocational Training Board and the TVET Council are tripartite bodies. The Barbados Employers' Confederation has no specific details about the training provided by MNEs, but confirms that some training does take place. There are national programmes, such as technical training provided by the Samuel Jackman Prescod Polytechnic and the Technical and Vocational Education and Training. Free tertiary education is available at the Cave Hill campus of the University of the West Indies. Training programmes for youths (aged between 16 and 25 years) also exist. National and multinational enterprises actively support these activities. They are represented on committees, participate in general discussions and support local professional associations. The Barbados Workers' Union indicates that the training provided by MNEs is usually designed to meet the specific requirements of the enterprise. Government has a Training Fund to which employers and workers each contribute 0.5 per cent of the worker's insurable earnings. The National Training Board offers technical and vocational training and the Government has set up a tripartite Technical, Vocational and Educational Council to deal with HRD.

The Government of Belgium states that training forms part of the country's employment policy. Apart from the traditional vocational training activities, specific programmes for disadvantaged (or vulnerable) groups have been developed. Drawn up within the framework of collective agreements, they are financed and managed by the social partners. Since MNEs participate in these programmes under the same conditions as Belgian enterprises, it is not possible to assess their specific role in these programmes.

Compared with other enterprises, MNEs in all sectors make the biggest investment in the training of workers, states the Government of Brazil. While training is geared to meet the needs of the enterprise, MNEs also run basic educational and literacy programmes. These are private initiatives in which the Government does not intervene. All enterprises, including MNEs, contribute to sectoral and general training programmes. By virtue of the relatively large workforce and the size of their wage bill MNEs are the largest contributors to HRD funds. Activities carried out under the "System S", which comprises five different training bodies, are administered by employers' federations and confederations, with workers represented in only one of them. The Government sits on the boards of all. The Workers' Protection Fund (FAT) has a tripartite board on which MNEs are represented. The main aim of FAT is to finance training and retraining programmes for unemployed and vulnerable persons. The Single Central Organization of Workers points out that in Brazil, the demand for highly qualified staff is greater in MNEs than national enterprises and the former generally have their own training programmes. There is no effective participation of workers in the administration and curriculum development activities of publicly funded training institutions.

The Government of Cambodia notes that the training provided by MNEs meets national development needs. While there are national programmes to encourage human resources development, Cambodia needs funds from donors for their implementation. MNEs contribute financially to these programmes, albeit insufficiently.

The Government of Canada states that its vocational training policies are consistent with the Tripartite Declaration. They are directly linked to employment, in keeping with the 1989 Labour Force Development Strategy which builds on the Canadian Jobs Strategy. The Canadian Labour Force Development Board encourages both sides of industry, including in MNEs, to take responsibility for the development and implementation of training programmes and standards. Through the 1992 Sectoral Partnership Initiative, labour and management work together to identify labour market requirements and training needs and to implement appropriate training strategies. The Government of the Province of Quebec notes that there are institutional arrangements for providing assistance in the following areas: counselling, human resources management and measures for protecting and maintaining jobs. There are initiatives (including funding) for promoting employment and reforming employment policy at the sectoral, regional and national levels. MNEs have so far participated in all HRD programmes. The Act for the Development of Manpower Training (22 June 1995) provides for employers to devote 1 per cent of their wage bill to training. Those with a wage bill exceeding Can$1 million have to apply the law with effect from 1996. All contributions relating to training may be used by the Manpower Development Company of Quebec (Société québécoise de développement de la main-d'oeuvre) for granting training subsidies.

The Government reports that Chad has not yet elaborated an employment policy and the training provided by MNEs is geared to meet their own needs. There are no national programmes nor funds for encouraging human resources development.

One of the goals of the Government of Chile is to improve the quality of education both in institutions and in the workplace. The State subsidizes training by giving tax rebates to enterprises that have spent the equivalent of 1 per cent of the annual taxable remuneration. Tax concessions are also granted for apprenticeship contracts. MNEs, which tend to be among large enterprises, benefit from these concessions. It is left up to enterprises to decide on the content of training programmes as long as it meets the requirements of the National Training and Employment Service (Servicio Nacional de Capacitación y Empleo). The reform of the Training and Employment Statute which is under way is intended to involve workers and employers in the joint planning of training programmes, as a means of harmonizing the interests of both parties. Although Chile has not ratified Convention No. 142, Legislative Decree No. 1.446 of 1976 provides fiscal incentives to encourage employers to train workers. During the period under review there has been a steady rise in the number of workers who have been trained -- from 297,231 in 1992 to 434,454 by 1995. While MNEs are known to provide training for workers in all occupational categories, the aforementioned data do not provide a breakdown of training by type of enterprise.

The Government of Colombia states that MNEs support the training of Colombian workers, particularly in those areas where locals are not skilled in using new technologies. There are state-supported training programmes and the Government has restructured the National Training Service (SENA) which is a tripartite institution responsible for providing workers with training in areas for which there is a demand. There is also a school which provides higher-level training for workers in the public sector. The National Association of Manufacturers supports the statement of the Government of Colombia. The General Confederation of Democratic Workers states that MNEs in Colombia provide workers with training on an individual basis, depending on the exigencies of the job. It refers to the role and functions of the National Training Service (SENA) and adds that all enterprises are obliged by law to pay contributions to this institution. This gives them the right to send persons for job-related training.

The Government notes that former employees of MNEs in Costa Rica are a great asset to the local private sector. The training provided by multinationals responds to the country's needs. There are no national programmes and funds for promoting HRD.

The Government reports that the training provided by MNEs in the Czech Republic enhances the career prospects of local workers who acquire new technical, managerial and linguistic skills. Training programmes are generally organized in collaboration with centres approved by the Government. They meet the general standards of training as well as the overall requirements of MNEs. There are state-funded retraining programmes for "unemployed jobseekers" and internal retraining programmes funded by employers. Certain programmes related to structural changes in specific companies may be co-financed by the labour offices and enterprises under specific agreements. Others, targeted to the needs of young people, are organized and run by Labour Offices and sponsored by local enterprises. The Czech and Moravian Chamber of Trade Unions observes that a high level of specialized training is provided by MNEs (names given) which use relatively advanced technologies, and have been operating in the country over a relatively long period. National programmes, such as the Programme of Active Employment Policy, have been made possible with the support of foreign aid. However, problems relating to placements and apprenticeship centres persist. The training of apprentices, previously provided with government support, is now dependent on sponsorship and parents have to bear a significant share of the costs. The union cites the exceptional case of an MNE (name given) which retained a specialist training centre after it acquired a local company.

The Dominica Employers' Federation (DEF) states that training provided by MNEs meets the needs of the country and helps to prepare it to become competitive in the future. There are national programmes and funds devoted to HRD -- i.e. the National Training Board, the Education Trust Fund, the Higher Education Committee and Student Loan Funds. National and multinational enterprises support and actively participate in such programmes, but the levels of support and participation are not known to the DEF.

The Government of Ecuador notes that vocational training and guidance con-stitute major concerns. The Ministry of Labour, which has prime responsibility for policies in this field, applies them through the Ecuadorian Vocational Training Service (Servicio Ecuatoriano de Capacitación Profesional, SECAP). The Govern-ment as well as the private sector are represented in the management of SECAP. The Ministry of Education and Culture includes vocational training in its plans which must be carried out in all intermediate and secondary educational institu-tions. The participation of MNEs in this field can be illustrated by article 55 of the collective agreement concluded by a major MNE in the food and drink indus-try (name given). According to this agreement, the company provides training for workers at all levels and covers the cost of such training. MNEs offer workers opportunities for career advancement and personal development. For example, articles 21 and 22 of the aforementioned collective agreement provide for the setting up of bipartite bodies to deal with the promotion of staff in the company.

According to information supplied by the Federation of Egyptian Industries, the training provided by enterprises in the pharmaceutical and metal trades (named) meets the country's needs. There are national HRD programmes which are supported by certain enterprises. For example, some pharmaceutical companies provide services to different health authorities and scientific associations and are involved in various educational projects. Certain companies in the metal trades participate actively in the planning and implementation of national training policies through employers' organizations and other business associations, and provide donations to social and scientific associations, and to the local authorities responsible for higher training.

The Government of Estonia states that training is well organized in MNEs and this helps to enhance the skills of the workforce. Often, well-qualified specialists prefer working for MNEs because of opportunities to get in-depth, further training which sometimes requires going abroad. The Estonian Confederation of Industry and Employers gives the example of an enterprise (named) which spends about 4.6 per cent of its management expenses per year on training. In the opinion of the Association of Estonian Trade Unions, MNEs play an essential role, particularly in the field of retraining and updating workers' skills. There is no national HRD programme; however, there are some projects and programmes based on the Law on Protection of the Unemployed and the Law on Adult Training. However, the goals of these activities are relatively narrow.

The Government reports that Finland has strengthened activities in the field of training in order to reduce unemployment. In the autumn 1995 agreement on economic, employment and labour market policy it was agreed that 4,000 additional "starter places" (i.e. entry-level positions) per year would be created for young people. The Confederation of Finnish Industry and Employers and the Employers' Confederation of Service Industries state that their reply to the fifth survey is still applicable. The Central Organisation of Finnish Trade Unions (SAK), the Finnish Confederation of Salaried Employees (STTK) and the Confederation of Unions for Academic Professionals in Finland (AKAVA) report that a survey by the Chemical Workers' Union demonstrates that foreign-owned enterprises provide more education and training for employees, particularly in areas of direct interest to the enterprises. The subjects covered are: quality control systems, team work, business economics, improving production and productivity, communication skills, and also occupational health and safety and environmental issues.

The National Council of French Employers points out that MNEs have the same obligations as other enterprises when it comes to training, and their initiatives in this field are quite significant. For the most part, and especially in the service sector, they contribute more than the legally required 1.5 per cent of their wage bill to training.

The Government of Gabon states that the training provided by MNEs is in line with the national development policies. In addition to compulsory schooling until the age of 16, there are training institutions such as the National Agency for Training and Further Vocational Training (Agence Nationale de la Formation et du Perfectionnement Professionnel). A training levy, as well as a fund for facilitating initial employment and the return to work, have been introduced in a bid to reduce unemployment. The new Labour Code (sections 81-96) contains provisions concerning apprenticeships. By law, there is a training levy on all enterprises which do not have training units. Enterprises which are exempted from the levy are, none the less, considered to support national training programmes since they hire persons who have been trained under these programmes. In addition, they collaborate closely with those responsible for the training units by providing advice on the content of training programmes. The Gabonese Confederation of Free Trade Unions reports that, contrary to the national training programmes, the training provided by MNEs does not correspond to national employment needs. It draws attention to the noteworthy activities carried out by the National Employment Office since its creation in 1993.

The Government of Grenada confirms that the training provided by MNEs is in line with the country's development policies. There is a national programme to enhance HRD. This, however, is provided and funded by the Government and two donor agencies. Local enterprises and MNEs which belong to national organizations contribute to, support, and participate in programmes which they themselves develop. There is a secretariat which promotes the implementation of those programmes.

The Government of Hungary states that the development of the manufacturing and services is a priority. This requires a pool of highly trained and skilled manpower. In this regard, MNEs are making a significant contribution to HRD. However, training and retraining programmes are generally tailored to meet the needs of adult employees, while less emphasis is placed on addressing the skill requirements of young workers. A number of MNEs have very advanced training programmes that expose workers to the most up-to-date technologies. HRD is promoted through government-sponsored programmes financed from regular budgetary allocations, and the Labour Market Fund -- established to provide vocational training and employment support for the retraining of adults. Enterprises can deduct the cost of professional training provided to young persons from their contribution to that portion of the Fund which is earmarked for employment support programmes. Enterprises mainly from the metal trades sector have participated in these programmes which are also open to MNEs. There is a World Bank-funded national programme for the establishment of regional centres for adult training. These centres are responsible for training both employed and unemployed persons and a number of MNEs have made use of these services for their workers. The National Confederation of Hungarian Trade Unions, the National Federation of Workers' Councils, and the National Federation of Autonomous Trade Unions believe that there is a contradiction between MNEs' policies of training young persons and their employment practices as regards this group. MNEs meet their obligations regarding their contribution to the cost of vocational training, but only to the extent of fulfilling their own labour requirements.

The Government of India states that training provided by MNEs meets the country's development policy needs. There are national programmes and funds that encourage the development of human resources. National enterprises are heavily involved in such programmes. They not only help to shape national policies but are also involved in the direct implementation of the training programmes. MNEs have also been associated with various training programmes, including the Apprenticeship Training Scheme and they generally have in-house training facilities for their personnel.

MNEs provide training that primarily responds to their needs, states the Government of Ireland. However, they do contribute to skill formation by giving local workers the opportunity to work in enterprises using state-of-the-art technologies. They introduce new work organization and management techniques. Notwithstanding the absence of precise information, it is the widely held view that the skills and know-how gained by workers in these enterprises "spill over" through the movement of workers from MNEs to local industry. The State gives grants to help MNEs setting up business and to finance the training of new workers. Thereafter, these enterprises are treated as national companies, which means that they are eligible for financial assistance under the National Training and Employment Authority's (FÁS) Training Support Scheme and other forms of assistance (e.g., under the national apprenticeship scheme). Under the Training Support Scheme (TSS), firms with a workforce of less than 500 obtain grants to help finance training. According to the FÁS, in 1994, 22,480 workers in 1,700 enterprises were trained under the TSS and 11,876 apprentices were registered at the end of that year. Twenty-four new companies were assisted in developing training plans under the New Industry Training Grants. These data include MNEs since no distinction is made according to the ownership of companies. MNEs and local enterprises are represented on the employers' side of the FÁS Board and other Industrial Training Committees that advise the Board. They are regularly consulted on matters relating to the design of training programmes.

The Government states that MNEs in Italy must contribute to initiatives in the field of training and the use of human resources, taking into account as much as possible, the country's development policies. There are training programmes as well as national funds and EU co-financing to enhance HRD, with the aim of responding to market demand for certain skills and qualifications. Through their associations, enterprises play a significant role in supporting regional and national training programmes. State-financed in-plant training, jointly managed with employers' organizations, plays a positive role in retraining workers in industries undergoing conversion. This contribution is widely acknowledged, including in trade union circles. MNEs' training activities are therefore in line with social development policies. MNEs enhance the professional development of workers by contributing to national training funds. The Government believes that the continuous exchange of information on experiences as well as collaboration with regard to resources, should take place between the Government and MNEs. The General Confederation of Industry (Italy) indicates that MNEs provide training that is consonant with national development policies and that there are national HRD programmes, which all enterprises support and participate in.

The Government of Japan states that basic vocational training and guidance programmes are drawn up in accordance with the Human Resources Development Law. When necessary, the Minister of Labour can make recommendations to organizations representing employers in both national and multinational enterprises, as regards the proper implementation of the law. The Japan Federation of Employers' Associations (NIKKEIREN) refers to the Guidelines for Overseas Direct Investment (Kaigai Tshi Kd Shishin), which call on Japanese MNEs to organize in-house training programmes for upgrading workers' skills, and to take into account the need for the transfer of technology to developing countries, when implementing such programmes.

MNEs in Jordan provide training opportunities for staff, reports the Government. However, because of their small numbers and the limited scope of their activities, it is difficult to assess the extent to which the aims of the country's development policies are met. Various training programmes are run by the Vocational Training Centre, the Ministry of Education, the General Administration Institute and the Jordanian Administration Institute, as well as the national universities. MNEs and local companies participate in these programmes either by sending their employees for training, or organizing their own activities in collaboration with these bodies. Overseas training is also offered. The law requires that enterprises allocate one per cent of their annual profits to training and skills development. The Amman Chamber of Industry urges MNEs to provide training opportunities for their staff. There are several training institutions, including the Public Management Institute, the Jordan Management Institute which is run by the private sector, and the university, which sponsor some courses. The extent of MNEs' support for these institutions is not known, but they do contribute to the Banking Studies Institute.

According to the Government of the Republic of Korea, the training provided by MNEs is expected to meet the requirements of the country's vocational training policy. There are two national HRD funds, one set up under the Basic Law for Vocational Training and the other, the Job Competence Development Fund, which operates under the Employment Insurance Act. In accordance with the Basic Law for Vocational Training, enterprises with at least 1,000 full-time workers must conduct in-house vocational training. A vocational training levy is imposed on those that do not comply. The job competence development scheme applies to all enterprises with between 70 and 1,000 workers, and they have to pay an employment insurance fee. However, they are entitled to several govern-ment incentives when they implement these schemes. The Korea Employers' Federation notes that the training provided by MNEs generally meets national policy requirements. Vocational training programmes are funded by the national budget and the vocational training levy (if expenditure on vocational training is less than the obligatory amount, employers are obliged to pay the difference as a levy to the Ministry of Labour). A fund, linked to the employment insurance system is also used to finance national HRD projects. While national enterprises and MNEs participate in these HRD programmes, the vocational training levy is considered to be burdensome. A financial penalty is imposed in cases of non-participation in the programmes.

The Government of Kuwait considers training to be important and has established centres, such as the General Institution for Applied Education and Training. Moreover, under a special scheme instituted by the Government, national and multinational enterprises must set up training centres to train local staff in areas in which they need expertise. There are national HRD programmes. Employers' and workers' organizations have a great interest in training and education and they cooperate with enterprises in this regard. They organize courses for workers in their own educational centres. The Government encourages such activities. Enterprises make financial contributions and also participate in activities for implementing training programmes. Workers' interests are taken into consideration in the process.

According to the Federation of Luxembourg Manufacturers, there are consultations with MNEs when national training and vocational training policy is being finalized. The Confederation of Independent Trade Unions (Luxembourg) acknowledges that whereas many MNEs, mainly in the manufacturing sector, make serious efforts to provide workers with continuing training, they have however almost ceased to provide apprenticeship. This important part of initial vocational training continues to exist almost entirely through the efforts of national SMEs.

According to the Malaysian Trades Union Congress, the training provided by MNEs is aimed primarily at meeting their own needs. The Human Resources Development Fund supports the training and retraining of workers in the manufacturing and services sectors. Employers must contribute 1 per cent of their payroll to the Fund. MNEs support and actively participate in national HRD programmes.

According to the General Confederation of Employers of Mauritania, MNEs do not provide training and this must be partly because they employ few workers. Within the framework of the national programmes aimed at enhancing human resources development, an apprenticeship tax is imposed on all enterprises. Furthermore, the administration responsible for vocational training supervises several regional training centres and carries out training programmes. Enterprises which solicit the services of a training centre, contribute financially to the training or vocational training of their staff. Their role in the field of training consists of making known their needs which are taken into account when plans are drawn up by the centres. The Free Confederation of Workers of Mauritania states that the training provided by MNEs does not respond to the country's development needs. While there are national programmes, including funds, to enhance human resources development, these are not applied in practice.

According to the Government, the National Human Resource Development strategy of Mauritius aims at ensuring that lack of trained manpower does not constitute a major constraint to further economic development. A Ministry of Manpower Resources and Vocational and Technical Training was set up in October 1991 to coordinate the provision of appropriate manpower to meet the economic and social development needs of Mauritius. Sectoral studies covering the whole economy were undertaken with a view to making concrete proposals for improving manpower training and development. The Industrial and Vocational Training Board (IVTB) set up in 1988, inter alia, regulates, administers and operates training programmes. In order to ensure that the training efforts of the Government are responsive to the needs and have the full support of all concerned, equal numbers of private and public sector representatives comprise the council which administers the IVTB. The IVTB is currently running Vocational and Pre-Vocational Training Centres and operating a Distance Training Programme. A National Apprenticeship Scheme has also been set up to provide both on-the-job and institutional training to youths who have dropped out of the formal education system, while other training centres are run by various ministries and parastatal organizations. Moreover, a number of private training institutions and in-house training centres provide training and IVTB ensures that the quality of such training meets the required norms. In order to promote and boost training, a number of financial incentives are available to trainees, employers and private training institutions. The private sector contributes a training levy of 1 per cent of its wage bill to IVTB and participates in the Task Force on Human Resource Development.

According to the Government of Mexico, human resources development is a matter of great concern and a Project for the Modernization of Labour Markets, partly financed by the World Bank, is being implemented. The aim is to facilitate labour mobility and the adjustment processes, raise productivity, promote transparency and mitigate the social effects of structural change. In order to attain these goals, the Total Quality and Modernization Programme (CIMO), activities for the Strengthening of the National Employment Service (FSNE) and the Training Scholarships Programme for Workers (PROBECAT) are being implemented. Other supporting activities include the dissemination of labour market information, policy evaluation and institution building. CIMO is demand-driven, co-financed by the private sector and reaches workers and enterprises in different parts of the country. It has so far been implemented in a wide range of industries, the main ones being the metal trades, wholesale and retail trades, construction, food processing, hotels and restaurants, educational services, and the textile, chemical and wood industries. Micro-enterprises (15 workers or less) and small enterprises (between 16 and 100 workers) have been the main beneficiaries of CIMO which responds to the training needs of these enterprises, which together accounted for 81 per cent of the activities of the Training Promotion Units (UPC). The FSNE and PROBECAT handle basic training, retraining, building competence for self-employment and acquiring skills for the development of micro-enterprises. National and multinational enterprises as well as government authorities at the state and federal levels take active part in the sectoral training committees. The Mexican Confederation of Chambers of Industry indicates that training programmes in all enterprises must be organized in accordance with the statutory requirements. MNEs tend to have advanced training schemes and their participation in this area is significant. They also take part in industry-specific training programmes. The Confederation of Mexican Workers agrees with the Government.

According to the Government, training provided by MNEs in Namibia is in keeping with the country's development policies. There are national programmes and funds aimed at enhancing and encouraging HRD. Since both national and multinational enterprises are equally represented on the Namibian Vocational Training Board, they are actively involved in the implementation of HRD programmes.

The Government of the Netherlands reports that its reply to the last survey is still valid. The Federation of Netherlands Industry and Employers agrees with the Government.

Under the 1992 Industry Training Act, industry-based training has been sub-stantially reformed, reports the Government of New Zealand. The aim of the new law is to enhance the relevance, quality and amount of training provided. Industry Training Organizations (ITOs), which are recognized by the Education, Training and Support Agency (ETSA), have been set up to do the following: set national skill standards for the industries they represent; develop and implement internal and off-the-job training arrangements for enterprises in the respective industries; and determine the modalities for monitoring training standards and assessing trainees. Standards developed by the ITOs are registered with the National Qualifications Framework and subject to regular review and updating in consulta-tion with the New Zealand Qualifications Authority (NQA). ITOs can obtain subsidies through government training funds. At the end of 1995 there were 50 officially recognized ITOs covering some 66 per cent of the entire workforce. There is no specific information on the participation of MNEs in training and the practices of these enterprises are indistinguishable from those of large local com-panies. However, there is evidence that MNEs support and take active part in ITO training activities. The Government gives the example of a foreign MNE from an OECD Asian and Pacific country (enterprise and country named) in the forestry, wood, pulp and paper industry, which is training its workers within the frame-works developed by the NQA and in close collaboration with the relevant ITO. The Government's views are shared by the New Zealand Employers' Federation.

The Government of Nicaragua states that HRD policies and related activities are defined and administered by the National Institute of Technology (Instituto Nacional Tecnológico). MNEs respect the policies and standards in this field, and they also have programmes for training and further training, both within the enterprise and abroad. There is a National Vocational Training Programme which is financed by the State and employers' contributions. MNEs participate in national training programmes by sending staff on courses, signing agreements for the use of facilities for training new workers, and delegating specialists to sit on technical committees which draw up training programmes. They are also represented on the tripartite Administrative Council for Vocational Training, responsible for defining training policies and strategies.

The Government of Nigeria reports that training programmes for local management in fields such as industrial relations and manpower development are provided by many relevant, private and public institutions. These institutions are supported and utilized by MNEs for their training and HRD needs. A number of multinationals have set up vocational training schools of a high standard for the training of their employees in useful fields, which open up career opportunities. By law, all enterprises, including MNEs, must train a fixed percentage (unspecified) of their workforce and contribute towards an education fund. The Nigeria Employers' Consultative Association concurs with the Government. The Nigeria Labour Congress confirms that training offered by MNEs meets the needs and development policies of the country. There are no national HRD programmes or funds. Most programmes (including funds) exist mainly at the level of the respective organizations.

The Government of Norway reports that the 1977 Act respecting Workers' Protection and the Working Environment promotes HRD. One of the objectives is to secure meaningful employment for individuals (paragraph 1(2)). In order to ensure that the kind of training provided by MNEs meets the host country's needs, the Act stipulates that "conditions shall be so designed that the workers are afforded a reasonable opportunity for occupational and personal advancement" (paragraph 12(1)). The issue of lifelong learning is a subject of public debate. The Confederation of Norwegian Business and Industry endorses the views expressed by the Government.

According to the Government of Pakistan, the 1969 Apprenticeship Ordinance also applies to MNEs. Under the terms of this Ordinance, employers have to provide 70 per cent of the "selected workers" with training. MNEs must provide trainees with a stipend for the duration of the training period. The Federal Government has initiated a scheme to educate workers and managers in enterprises on industrial relations practices. HRD is mainly carried out through government-funded programmes. The National Training Ordinance of 1980 provides for the creation of a National Training Board, and the Provincial Training Boards in each province. The aim of Phase II of the National Vocational Training Project is to enhance training programmes by setting up new training centres and upgrading existing facilities. Under this project, Centres' Management Committees and Skill Development Councils have been set up to increase employers' representation in training schemes. The Apprenticeship/Inplant Training Programmes have been expanded, and Mobile Training Units are used to train workers in the informal sector. In 1994, the Prime Minister's Special Programme for Training in Technical Trades and Domestic Services was launched to train 31,120 youths. Under the Public Sector Development Programme, each province includes in its annual budget, allocations for the establishment of new training centres and for the improvement of HRD programmes. The Employers' Federation of Pakistan (EFP) notes that the training provided by MNEs meets national requirements. Under the Apprenticeship Ordinance, enterprises of a certain size must train a minimum number of their workers. In order to increase productivity at the local level and enhance national economic development, a National Training Board, Provincial Training Boards and Skills Development Councils have been set up to provide vocational training to half-a-million people over a five-year period.

The Independent Self-Governing Trade Union "Solidarno" notes that MNEs in Poland train workers to meet the requirements of the enterprise. There are no national HRD programmes and funds. The training policies and practices of MNEs are favourable in large enterprises which tend to accord great importance to their reputation.

The Government of Portugal has no specific information on training offered by MNEs. However, it surmises that these enterprises, by virtue of their size, pay special attention to HRD, which is critical to their development strategies. They contribute to training at the sectoral, regional and national levels, by participating in a number of tripartite bodies that deal with vocational training policies and programmes (eight such entities named). Government institutions (especially the Employment and Vocational Training Institute) give technical, teaching and financial support to all enterprises, including MNEs, which carry out their own training activities. During the period under review, the Government issued a number of Orders and legislative decrees, some of which dealt with the following: the training of youths and adults to facilitate their entry into the labour market; provision of grants to unemployed persons and workers for full-time or part-time training; regulation of information systems on vocational training; the promotion, organization and functioning of special vocational training schemes; incentives for the recruitment of young, first-time jobseekers and the long-term unemployed; and support for training in the field of agriculture (list of all laws provided). A noteworthy development is the enactment of Legislative Decree No. 34/95 of 11 November 1995 to provide training, job placement services and other forms of support to workers in sectors undergoing restructuring, those in enterprises experiencing difficulties and those in regions hard hit by the social and economic effects of restructuring. The General Union of Workers notes that MNEs train workers within the framework of national policies in this field. The training is packaged to meet the needs of the enterprise. Portugal has received funding from the EU for improving training and MNEs, like local enterprises, have access to these and other national resources to finance their activities.

The Government of Romania states that the training provided by MNEs meets the country's needs. Under the Foreign Investment Act, a 25 per cent reduction of taxes on profits for periods exceeding the legal limit is given to investors who devote more than 10 per cent of their total expenditure to scientific research, the development of new technologies in Romania and vocational training. There are no national programmes for enhancing HRD.

The St. Vincent Employers' Federation states that the training provided by MNEs is in line with the country's development policies and there are national training programmes. Most of the funding for training comes from external agencies with some contribution from the Government. MNEs support training initiatives by accepting to take on individuals so that they can gain work experience. Some of the graduates are subsequently hired.

According to the Government of Singapore, MNEs have provided various types of training. This has contributed to the fulfilment of local manpower needs and has supported economic development policies. The Skills Development Fund (SDF) was established in 1979 to provide incentive grants for the building up of a highly trained workforce to support the country's economic restructuring effort. Funding is provided for under the Skills Development Levy Act, which requires that all employers make a contribution equivalent to 1 per cent of the total salaries of employees earning less than S$1,000 per month. A wide range of training schemes is carried out under this programme. (A list of the schemes and the range of activities was annexed to the report.) MNEs and national enterprises have collaborated in the development of training infrastructures. For example, three joint training centres have been established with the participation of local tertiary institutions, foreign MNEs and foreign governments (names of two MNEs given). These centres satisfy the requirements of these MNEs, while also helping to meet the needs of others in the industry. Joint and bilateral initiatives have been undertaken with a view to responding to the country's technological needs. (A list of major projects established under this approach was annexed to the report.) Several MNEs which provide "excellence" training programmes, as well as local enterprises, collaborate with the SDF to develop better and more cost-effective programmes. So far, 15 projects have been launched through this collaborative effort. The country has also benefited from adopting training systems from other countries as a means of facilitating the transfer of technology. The Singapore National Employers' Federation points out that HRD has played an important role in transforming Singapore from "an under-developed country into a prosperous one". The country has benefited substantially from inflows of skilled workers, professionals and managers. Over the years, it has increased its pool of skilled local workers and professionals through the extensive development of its educational and vocational training institutions. The focus is now mainly on upgrading skills, increasing productivity, encouraging wage flexibility and attracting skilled and professional personnel from overseas. There has been an appreciable investment in training. MNEs have undoubtedly contributed to enhancing managerial and technical skills, and by virtue of their ability to attract and retain the best local managers they play an important role in improving the quality of management. A survey conducted by the Nanyang Business School, Nanyang Technological University (NTU) found that organizational development was not yet considered an integral human resource function among companies in the country. Human resources managers were found to play a greater role in MNEs compared to local companies in developing career development programmes -- 42 per cent in MNEs as opposed to 17 per cent in local companies. The survey also showed that of the 42 per cent of the companies with overseas operations which conducted international HRD programmes, foreign MNEs comprised the majority. Both MNEs and local companies were found to conduct technical training more frequently than other types of training.

The Government states that the training and retraining programmes organized by MNEs meet the development policy objectives of Slovakia. Both national and multinational enterprises comply with regulations which provide for the implementation of an active employment policy which supports and stimulates HRD.

The Government of Slovenia states that most MNEs are "deeply aware" that the achievement of high quality and standards depends on the quality of the workforce. Therefore, MNEs (examples given by name) provide various types of training locally and abroad. There are national programmes financed by the Government which are aimed at training and retraining mainly unemployed persons. The financial resources provided for these programmes are not intended to assist MNEs.

According to the Government of Spain, Royal Decree 631/1993 of 3 May governing the National Plan for Training and Entry into Working Life (Plan FIP) (Plan Nacional de Formación e Inserción Profesional), makes it possible for employers' and workers' organizations to participate in training activities. Their participation may take place through programmes organized by their respective centres or through arrangements in keeping with Collaboration Agreements concluded with the National Employment Institute (INEM). Activities for training employed persons are carried out within the framework of the National Agreement on Continuing Training (Acuerdo Nacional de Formación Continua). This Agreement is complemented by the Tripartite Agreement which was signed in December 1992 by the most representative employers' and workers' organizations. The aim of these Agreements is to define and promote training activities for workers, with a view to improving their professional qualifications and personal development, thereby contributing to the competitiveness of enterprises and economic efficiency. The National Agreement opens up training opportunities for workers in all enterprises with less than 200 workers. While this is particularly advantageous to SMEs, enterprises of any size, including MNEs, can take part. Under the National Agreement on Continuing Training, enterprises can grant workers time off for training with a view to obtaining an official certificate or diploma. As regards MNEs, they facilitate the transfer of technology from countries with more advanced research and development capabilities and enhance the skills of local personnel. Like national enterprises, MNEs take part in and benefit from subsidized training schemes. Subsidies averaged 22.6 per cent and 46 per cent of the costs of training schemes in large enterprises in 1993 and 1994 respectively. The General Union of Workers (UGT) states that MNEs in Spain generally provide training for the most qualified workers. However, large enterprises tend to have training programmes for workers in all occupational categories and these are usually based on standards elaborated by or agreed with state authorities. There is a National Agreement on Continuing Vocational Training (1993-96) which was signed by the UGT, the CC.OO (Trade Union Confederation of Workers' Committees) and the CIG (a regional trade union (full name not given)), the CEOE (Spanish Employers' Federation) and the CEPYME (an employers' confederation (full name not given)), with the cooperation of the Government, which has drawn up laws for the application of this Agreement. There are also sector-specific training agreements. MNEs participate in the implementation of the National Agreement through a foundation set up by the signatories to approve and manage training programmes. They also take part in the Joint State Committee on Continuing Training (Comisión Mixta Estatal de Formación Continua) which lays down the criteria and procedures for financing training activities. Large and medium-sized enterprises can draw up individual training plans and small enterprises can have joint plans.

According to the Government, the training provided by MNEs is in line with national HRD policies. In Sri Lanka there are national HRD programmes in which only some MNEs actively participate. The Employers' Federation of Ceylon, referring to MNEs that belong to its organization, states that the training provided by MNEs in Sri Lanka is more advanced than in other enterprises.

According to the Government of Swaziland, the training provided by MNEs meets the country's development policy objectives, albeit to a limited extent. There are national programmes as well as funds operated by certain organizations, e.g. the STRIDE Project, and the Training Section of the Ministry of Labour and Public Service. National and multinational enterprises support and actively participate in such programme. However, they do not closely supervise or follow up their implementation.

The Central Union of Swiss Employers' Associations reports that the majority of enterprises, whether national or multinational, have a system of dual apprenticeship, comprising combined training at the enterprise and at vocational school. Implemented on a voluntary basis, this system enables young workers to obtain recognized qualifications which are essential for their integration in the labour market. On the whole, enterprises make a great effort in the field of training which is important for competitiveness. The establishment of specialized higher-level schools will further enhance the level of technical and commercial training. According to the Federation of Commerce, Transport and Food Industries Workers' Union, MNEs, like national enterprises in Switzerland, provide training of relevance to their operations.

The Government of the Syrian Arab Republic reports that the training provided by MNEs meets the country's development policies. National enterprises contribute to national HRD programmes, but multinationals do not. The Chamber of Industry agrees with the views expressed by the Government of the Syrian Arab Republic.

The Government of Thailand reports that MNEs provide on-the-job training to enhance skills and efficiency and increase productivity. National HRD programmes, some of which are undertaken with the assistance of MNEs, also provide vocational training and career guidance for young people. MNEs' involvement includes providing training materials, facilities and financial support.

The Government of Trinidad and Tobago reports that there are national programmes (including funds) for encouraging HRD. Approximately TT$79.7 million have been provided in the 1996 estimates under recurrent expenditure for a number of programmes, including the following: early childhood care and education; the National Apprenticeship System; the Adolescent Development Training Programme; the Youth Training and Employment Partnership Programme Ltd.; the Skills Development Programme for Heavy Industry and Advanced Technology; the Metal Industries Co-Training Subsidy Annual Scholarship; and the Study Leave Programme. National and multinational enterprises support and actively participate in the four major national training programmes: the Journeyman's Programme; the Master Craftsman Programme; the Technologist Programme; and the Master Technologist Programme. Apart from these, there are many short courses, e.g. for the training of trainers and training of supervisors. These are designed specifically to prepare people for work in the energy sector and the light, medium and heavy manufacturing industries. MNEs actively support programmes that have a technical/vocational component and they are invited to recruit persons who have received training. Once they have accepted these trainees, the MNEs share the cost of the stipend. They are also responsible for the daily supervision of these trainees, and for providing them with practical skills to complement their academic training. The Employers' Consultative Association of Trinidad and Tobago replies in the affirmative to all the questions, but adds that the role of MNEs in the process of implementing HRD programmes is limited.

The Government of Tunisia reports that the Ministry for Vocational Training and Employment has developed training policies that are closely linked to the needs of enterprises for qualified and technical personnel. Special programmes for continuing training have been implemented. Training is provided by both public and private institutions, and certificates are issued at various levels. Training programmes include the following: general and technical education; practical work; courses in social legislation, especially in OSH; and compulsory internships in enterprises. Alternating training has been successfully carried out in five areas of activity: maintenance; leather and footwear; carpentry and woodworking; textile and garments; and clerical work. This attests to the importance of the enterprise in the training process and such arrangements are to be progressively introduced at the national level. Special training programmes to enable young persons to enter into the labour market have also been set up. These include: internships; employment-training contracts; and funds to assist young persons and private enterprises. The Tunisian Confederation of Industry, Trade and Handicrafts states that legislation on vocational training was enacted in February 1993. One of its aims is to encourage the recruitment of young graduates and stimulate enterprises' interest in the university. It applies to all enterprises in the country.

The Government of Turkey states that Act No. 3308 provides for the establishment of the Apprenticeship, Vocational and Technical Training Development and Extension Fund. The aims of the Fund include the following: to extend vocational and technical training through a system of formal apprenticeship and non-formal training; to increase the number and quality of trained persons; and to facilitate the training of jobseekers and workers in the private and public sectors. The Chamber of Commerce, petty traders, artisans' associations, trade unions, and the general public, contribute to the Fund, which is also financed from a 1 per cent increase on total income and corporate taxes. An Employment and Training Project has been launched to set up training programmes for the unemployed, and to develop and establish national vocational training standards, as well as testing and certification organizations. There are many training programmes available to national and multinational enterprises which are run by public and private-sector organizations. However, the level of participation by enterprises in the training process is insufficient. Large enterprises attempt to establish their own training centres, which compete with other training initiatives. Consultations with MNEs concerning the development of national HRD policies take place through the employers' associations, of which they are members. With the privatization of SOEs, MNEs should give more serious consideration to training and retraining. According to the Turkish Confederation of Employer Associations, MNEs respect the relevant legislation when developing HRD plans to meet their needs. They make a general contribution to vocational training programmes by employing nationals. The Confederation of Turkish Trade Unions states that, while not much training activity is being undertaken by MNEs, their initiatives in this field are in line with the Government's policies. There are national HRD programmes, but the funds are extremely limited and MNEs do not support and participate in these programmes.

The Government of the United Kingdom indicates that MNEs, like other enterprises, are encouraged to develop workers' skills "in every appropriate way". Government's training strategy is aimed at self-employed persons, youths, unemployed persons and those with particular disadvantages as regards skills. A key objective is to make vocational education and training more responsive to changing demands. The Government provides details of a number of national schemes and programmes that have been developed within the framework of the National Targets for Education and Training (NTET). The Confederation of British Industry (CBI) was the instigator of the NTET and, through the CBI and local training and enterprise councils, employers contributed to the drawing up of the training strategy. In the case of Northern Ireland, the Training and Employment Agency (T&EA) works closely with employers through 16 "sector training councils", which act as the voice of industry. The budget and programme of the T&EA are to help jobseekers acquire necessary skills and to enhance workers' skills. Most of the resources go into the company development programme (CDP) in which about 370 local enterprises participate. They get support for training and development and a maximum of 50 per cent of total training costs can be obtained under the CDP, which is designed to provide the impetus for additional spending on HRD by enterprises themselves. The Confederation of British Industry has been very influential in the development of vocational training policies. It is well represented in many standard-setting bodies and has contributed to the establishment of local training and enterprise councils (and in Scotland, local enterprise companies) which are responsible for implementing government-funded training programmes for young first-time jobseekers and unemployed adults. MNEs play a major role in vocational training and guidance through their in-house training programmes and involvement in "Investors in People" -- a national standard based on "best practice" in the field of HRD in leading companies.

The Government reports that in the United States there is no difference between MNEs and other enterprises as regards the degree of observance of paragraphs 30 and 32. Specific vocational training is provided primarily by public and private employers through formal and informal training in institutions and at the workplace. Training is also provided by vocational schools at the secondary level as well as in junior and community colleges at the post-secondary level. These programmes are administered by the states with limited federal financial assistance. Federally supported training is highly targeted and reaches only a very small segment of the workforce. The Comprehensive Employment and Training Act (1973) was replaced by the Job Training Partnership Act (JTPA), also known as the Economic Dislocation and Worker Adjustment Assistance Act. Under the JTPA, which came into force in October 1983, training and related services are provided for disadvantaged youths and adults as well as displaced workers. The programme is administered through a partnership arrangement involving state and local governments and private business and industry. In the programme year which ended in June 1994, expenditures for the retraining of displaced workers under Title III of the JTPA amounted to some $543 million, about 51 per cent of which was for retraining. The federal Government is working closely with business representatives, workers' organizations and academics, to help identify and implement new approaches to training. This effort includes exploring possibilities for the establishment of a voluntary system for accrediting work-based training programmes, based on standards developed jointly with industry, and providing for the certification of individual worker's skills. In cooperation with representatives of enterprises, including MNEs, academics and labour unions, Government has also developed a set of recommended "work-readiness skills", which young and adult jobseekers need in order to obtain meaningful employment and cope with a dynamic workplace. These recommended skills can be used to create secondary school curricula and to develop work-based training curricula for employees. The programmes outlined provide the framework within which enterprises in the US are participating in carrying out government policy for vocational training and guidance and closely linking educational programmes with employment opportunities. Many enterprises, especially large ones, have their own privately funded training schemes which enable workers to acquire useful skills and enhance their career opportunities.

There is no national HRD policy, reports the Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations. Consequently, MNEs set their own policies in order to meet their needs for qualified personnel. There is a National Institute for Cooperation in Education (INCE), which should develop study programmes in response to the country's needs. However, it is unable to meet the country's basic training requirements. Agreements have been signed with national and multinational enterprises, enabling them to use the facilities of INCE and other institutions, to develop their own special training activities. Enterprises, in many cases, finance training and skill development programmes.

The Government of Zambia attaches importance to training. Through the Ministry of Science, Technology and Vocational Training, a national training policy, which takes into account the manpower requirements and needs of the labour market, has been formulated. Training needs are met through programmes carried out in universities, colleges and vocational training institutes. MNEs carry out their own training programmes at various public and private training centres, and such training generally meets the country's development policy. The involvement of national enterprises and MNEs in training constitutes an important form of support to national initiatives for promoting HRD.

The Government of Zimbabwe states that MNEs do provide training for their workers. The Zimbabwe Manpower Development Fund (ZIMDEF) is responsible for HRD, and MNEs and national enterprises, apart from contributing to the fund, are also involved in the development of programmes. The Employers' Confederation of Zimbabwe notes that the training provided by MNEs meets the needs of the development policies of the country and that national programmes are aimed at enhancing and encouraging HRD. The Government, through the Ministry of Higher Education, operates the Zimbabwe Manpower Development Fund (ZIMDEF) to promote HRD. MNEs and national enterprises support and actively participate in these arrangements through the National Advisory Council which is a tripartite body comprising Government, industries, employers' and workers' representatives. MNEs and national enterprises which participate in the training of apprentices may obtain a rebate from ZIMDEF.

Paragraphs 33-35

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