National Consultation Workshop on Industry – Career Centre – ITI collaboration

1. Directorate General of Employment and Training Ministry of Labour and Employment Government of India New Delhi 29 August 2014 National Consultation Workshop on Industry – Career Centre – ITI collaboration

2. Structure of presentation • Approach • Strategies/interventions • Re-establishing brand equity of ITIs • Setting up Model ITIs • Skill upgradation of unorganised sector workers • Restructuring employment services and setting up career centres • National Career Service portal • Framing National Employment Policy • Policy framework for National Career Services • Other initiatives • Way forward

3. Approach • To enhance employment and employability of youth and catalysing entrepreneurship • Career counselling and vocational training means to achieve the above objective • Meaningful and outcome driven linkages of local industries with Career Centres and training institutions being established • Implementation of all initiatives to be driven by the States to get desired outcomes • Role of Central Government to support States by providing appropriate frameworks, best practices, IT architecture, etc.

4. Re-establishing brand equity of ITIs • Curriculum as revised by Mentor Councils (with representatives from industry, academia, Champion ITIs, CSTARI and NIMI) in 11 core sectors being implemented w.e.f. August 2014 session • Incubation Centres (4) and Chairs (5) being set up in premier institutions including IIT-Chennai, IIT Delhi, IIT-Kanpur, IIT-Roorkee and ISM-Dhanbad • Infrastructure for training of trainers in distance mode being created • Pilot in delivery of ICT courses through Spoken Tutorial project of IIT-Bombay under progress • Training in semester pattern introduced in ITIs in February 2014 • First phase of ITI e-governance portal to be launched in November 2014 • E-certification for CTS courses being launched from November 2014 • Leadership and Management training of all Government ITI Principals being conducted in premier management institutions including IIM-Lucknow, MDI-Gurgaon, IIFT-Delhi, etc.

5. ITI-industry partnership framework • Flexible MoUsfor running industry-driven courses in ITIs • Customised industry-led courses with high employment potential (min. 80%) brought under NCVT certification • Detailed policy guidelines issued in July 2014 • MoUs signed Tata Sons, Flipkart, Cadila Pharmaceuticals, Gujarat Industries Power Company Limited, LabourNet and Raymond in August 2014

6. Concept of Model ITIs • With the national goal of Skilled India, a fresh thinking required to take the ITIs to the next level by making them more demand-responsive • Proposal to upgrade one Government ITI in each State / UT as a model institution with industry engagement, optimum capacity utilization, unorganized sector training etc. • Model ITIs are expected to become demand centres for the local industries, and evolve as institutions showcasing best practices, efficient and high quality training delivery, and sustainable and effective industry leadership

7. List of Activities under Model ITIs Scheme • Reassessment of all existing trades and units for their relevance with local market demand • Converting / opening relevant units based on the reassessment exercise • Upgradation of all retained units • Upgradation of overall facilities in the institute, including building, workshops, etc. • Filling up all vacant instructor positions by hiring contractual faculty • Setting up a full-fledged training and placements cell and appointing a full-time training and placement officer • Overhauling the institute management committee and attracting at least one industry house to conduct training programmes in the most popular trade • Creating suitable infrastructure for upgradation of skills of the existing workforce of the local industrial units • Carrying out advocacy activities for institute promotion amongst candidates and potential employers by creating websites and holding job fairs

8. Model ITIs – Structure of scheme • Proposed scheme structure: • Rs. 10 crore budget for each Model ITI • Centrally Sponsored Scheme with 70% Central Share and 30% State Share (NE-90:10) • One Government ITI to be identified by each State / UT Directorate and an Action Plan to be developed • Upgradation work to be taken up on an immediate basis after approval of the Action Plan

9. Model ITIs – Proposal from States • A communication was sent out by the Secretary (LEM) to Chief Secretaries of all States / UTs on 25th July 2014 requesting to identify one Government ITI for consideration under this initiative, and send an Action Plan by 16th August 2014 • Status of responses received so far is presented below:

10. Skill upgradation of unorganised sector workers • Proposed scheme for running an additional shift in urban ITIs (Govt. & Pvt.) across country to provide training to unorganised sector workers • Special focus to be given to courses on modern construction technology • Additional shift will be run in the ITI in the evening for training of the workers • Training will be provided in trades/sector relevant to the area in which large number of unorganised sector workforce exists • States to identify at least one ITI in each Urban/Semi urban centre to set up training infrastructure

11. Skill upgradation of unorganised sector workers • Training cost will be borne under SDI scheme • To ensure adequate focus is given to the scheme, 40% funds are proposed to be earmarked from SDI scheme for this activity • Proposal to utilise BOCW Cess funds for creation of infrastructure in ITIs in construction sector only • Stipend at the daily rates prescribed for boarding & lodging allowances in SDI scheme will be paid at the end of every month to the BOCW registered worker or his eligible family member who undergo training in such ITIs on the basis of certificate from Head of ITI

12. Restructuring employment services and offering career services • To reposition all Employment Exchanges as a hub for all career related services - National Career Service (NCS) • Focus on providing career counselling and vocational guidance • Portal for effectively delivering services of NCS being developed • National number based call centre and helpdesk will also be integrated into NCS • Capacity building programs for employment exchange officers to be conducted • NCS will be one-stop-shop for all other career related services as placement services, internships, apprenticeships, etc.

13. Objectives of Career Centres • Assess skills requirements at local, regional, national and international levels • Provide counselling both to youth visiting the centres and by outreach to educational institutions about various training, on-the-job training and job opportunities, etc. • Youth from rural, semi urban areas as well as from disadvantaged sections of the society to get information on training/employment options • Connect job-seekers and employers through portal, job fairs and other mean such as campus placement • General gap training for college pass outs through specially empanelled training providers

14. Career Centres – salient features • 50 Model Career Centres to be established this year itself; six VRCs will also be transformed into Model Career Centres for PwDs. Central support of about Rs 50 lakh each • Bihar, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal to have 2 Model Career Centres each; all other States/UT to have one Model Career Centre • States given flexibility to choose model for operating career centres (State funding, PPP-Industry Association Sponsorship/Company Sponsorship/Pvt. Owned/Partial Ownership, CSR funds, etc.) • Outcome-based monitoring - No. of candidates/ schools provided counselling; no. of candidates placed through various channels; job fairs conducted, etc.

15. Career Centres – action expected from States • States requested to send proposal for transformation of employment exchange to career centre by 25th August 2014 • Proposal received only from State of Odisha for VRC • States to expedite action plan as 10 Model Career Centres to be made operational by December 2014 and remaining 40 to be made operational by March 2015

16. National Career Service portal • State-of-the-art technology driven National Career Service Portal will provide information about available job opportunities and resources for Career Centres to function effectively • Some of the services that will be made available through NCS portal are: • An updated knowledge repository on Career Related content for effective counselling • Job & Skill Mapping for contemporary/popular careers • Job & Vacancy Postings • Training Calendar & Scheduler • Candidate Registration & Tracking • Skill Assessment and Aptitude Testing interfaces • PWC has been engaged as the Project Management Consultant for NCS portal and RFP for appointment of implementation agency has been floated on 13th August 2014 • The portal is expected to go live in December 2014

17. NCS Portal – expectations from States • Current situation analysis of existing Employment Exchanges to assess gaps and develop plan at State-level for transformation into career centres (Action plan to be submitted by 31st October 2014) • Nominate in time employment exchange officials for capacity building programs being organised by DGE&T and appoint nodal officer for managing all activities of NCS • Identify the best practices that have generated interest from Industry/Skill Institutes/Jobseekers etc. to be shared with all other States • Collate career, job and skill related data for hosting on National Portal

18. Formulating National Employment Policy:Consultation Process • Inter-Ministerial Committee comprising of representatives of Central Ministries and State Governments constituted • Comments sought from major social partners – Central Ministries, State Governments, Employers Associations, Trade Unions and Professional Bodies • Comments sought on key dimensions like: employment generation, enhancing productivity of workforce, reforms in labour laws, increase in participation of youth and women, and enhancing entrepreneurship

19. Formulating National Employment Policy:Consultation Process • Comments received till date from: • Central Ministries • Ministry of Agriculture • Ministry of Commerce & Industry • Ministry of Heavy Industries & Public Enterprises • Ministry of Home Affairs • Ministry of Housing & Urban Poverty Alleviation • Ministry of Human Resource Development • Ministry of Mines • Ministry of Power • Ministry of Road Transport & Highways • Ministry of Textiles • State Governments • Government of Himachal Pradesh • Government of Karnataka • Government of Mizoram • Government of Odisha • Government of Tripura • Government of Uttar Pradesh • Trade Unions • Hind MazdoorSabha • Indian National Trade Union Congress

20. Formulating National Employment Policy:Consultation Process • Comments received till date from: • Employers Associations • All India Manufacturers’ Organisation • Employers Federation of India • Federation of Indian Women Entrepreneurs • Indian Chamber of Commerce, Kolkata • LaghuUdyogBharati • Professional Bodies/Institutions • BSE Institute Ltd., Mumbai • Indian Industrial Relations Association

21. Highlights of the Comments • Employment Generation: • National Employment Policy should be integrated closely with other national policies to ensure growth-employment linkage • Expand employment opportunities in non-farm sector • Attract and retain youth in farming and processing of farm products • Promote small scale and cottage industries, particularly in backward regions • Focus on policies to reduce youth unemployment rates, particularly among women

22. Highlights of the Comments • Employability: • Recognition of prior learning • Recognition and certification of informally acquired skills • Certification of skills in consonance with the emerging market needs • Expand vocational/technical courses through Public Private Partnership mode • Creation of National Career Service Portal • Amending the Apprenticeship Act to make it more flexible • Integrating vocational training with industry with a minimum specified period for on the job training • Introduction of behavioural/soft skills in vocational curriculum • Encouraging entrepreneurship in vocational training strategies

23. Highlights of the Comments • Employability: • Focus on vocational training for women • Customised skill development training for socially disadvantaged groups • Developing skills for demanded in the international market • Focus on skill development to the populous of border areas

24. Highlights of the Comments • Labour Regulations: • Re-orient labour laws for facilitating manufacturing and export growth • Amendment mainly sought in Industrial Disputes Act, Contract Labour Act • Factories Act may be amended to consider the issue of working of women in night shifts • Simplification of procedures for compliance of labour laws, particularly for small scale sector • Promoting alternative dispute resolution processes • Operationalisation of toll free helpline numbers for information regarding labour laws

25. Highlights of the Comments • Social Security: • Extend Social Security for all categories of unorganised sector workers , including Home Based Workers • Enhance social security benefits for seasonal migrants in urban areas • Longer maternity leave for women to encourage their re-entry to the labour market in the post maternity phase

26. National Employment Policy NEP is a key part of the policy framework to support employment in the country. It needs to be seen in conjunction with the demand and supply factors, both of which are critical elements in the employment process. An illustration of elements involved in such process are as shown below:

27. NEP – Framework Vision “NEP will be a major enabling factor for generating decent employment to all citizens to obtain dignified, productive and secure livelihood thereby enhancing their well-being.” Key Pillars of NEP 1. Employability Demand responsive skill development 2. Employment National career service, Self-employment 3. Working conditions Labour regulations, Occupational Health and Safety (OHS) 4. Social Security and Benefits Social Security benefits, Wages Coverage - All workers in terms of sectors (organized and unorganized), categories (regular, part time and casual) and status (wage employment and self employment); Special focus on women, youth and home based workers and other economically and socially disadvantaged groups Goals Interventions Desired Outcomes - Quantitative and Qualitative Governance and Monitoring

28. NEP Goals Key Pillars of NEP 1. Employability Demand responsive skill development • Create a skilled and employable labour force focusing on youth, women and the socially disadvantaged, to respond to the rapidly changing demand for skills 2. Employment National career service, Self-employment • Establish a National Career Service linked to a robust labour market information system to facilitate matching of supply and demand for jobs and skills at all levels 3. Working conditions Labour regulations, Occupational Health and Safety (OHS) • Rationalisation of the existing labour regulation to balance fairness with flexibility and ensuring compliance by simplifying procedures 4. Social Security and Benefits Social Security benefits, Wages • Expanding coverage of social security particularly for those in informal employment • Enhancing the level of benefits of existing social security • Ensuring portability of benefits Goals of NEP

29. 1. Employability – Interventions proposed Current Need Analysis Interventions (At a glance) • Supply side - Need to widen base of vocational skill pyramid training with a focus on sector specific requirement • Mismatch between vocational training imparted and youth expectations • Strengthen the skill development institutions - Institutional changes • Need for re-orientation of the Apprenticeship scheme • Increase reach, awareness and desirability of vocational training using media campaigns and programs • Vocational education as a core subject at senior secondary level (esp. directed for high employment generation industry sectors) • Re-evaluate no. of Apprentices, Stipends for the Apprentices (in state and industry contributory model) periodically; Expand apprenticeship base(could include tapping the potential of the MSMEs) • Strong Monitoring of the current ITIs (in terms of the education standards, Tech tools being used, Facilities, regularity and staffing of teachers, Staff to students ratio, instructor training, etc). • Course curriculum should emphasize industry relevant courses(soft skill development , Industrial Safety and hazards, Basic computer literacy, etc. in simple english – E Station Rural Gujarat model) and be developed in conjunction with Industry • Evaluate prospects of creating skill development centres (rural areas) in the existing schools, during the evening hours • Need for focused approach in directing training and skill development interventions (especially for skilling socially disadvantaged groups like SC and ST and increasing employability of educated young women) • Mobile Vocational Training Vans (for areas with low accessibility in Rural parts of the states, similar to ‘DoorStep education’) • Residential institutes for women in each state capital • Skill mapping / Role identification for the disabled

30. 1. Employability – Interventions proposed Current Need Analysis Interventions (At a glance) • Demand side - Need for industry support for boosting employability • Lack of importance, awareness and avenues for SMSE to hire skilled workforce • Insufficient involvement of industry in skill development • Strengthen trainer base for imparting skill at training institutes • Create awareness and boost Industry Participation • Regular structured communication across various industry forums –Quantum and Importance of skilled workforce • Industry sponsored courses/ scholarships at VTIs (esp. for women) • Revamping of existing infrastructure setup by running ‘Adopt an Institute (ITI/ Polytechnic)’ initiative for corporates • Tax Incentives for companies which hire from ITIs • Create Databases • E-Enabled Single Window Registration process for all types of apprentices (current process is cumbersome) • Online database of available skilled workforce (certified through various courses of the NSDC, and others )to be made available online for access by Industries • Online repository of all Apprentices for employee hiring by industries – including those of students passing out of ITI and Diploma colleges • Strengthening of Trainers • Consider Industry experts to impart specialized training to ITI faculty • Budget allotment and utilization stipulations on ITIs could be considered to ensure compulsory expenditure on staff training

31. 2. Employment – Interventions proposed Current Need Analysis Interventions (At a glance) • Need for increasing LFPR (Labour Force Participation Rate) – Supply side enhancement (especially of youth and women) • Improve service levels provided by employment exchanges to stakeholders • Defined SLAs and single-window clearing mechanisms at Employment Exchanges • Support with setup of a national technology enabled career service (NCS) – Key features • Far and wide network of offices / branches • Ease of interaction - Walk-in Service, separate section on the NCS for women, persons with disability and learning difficulties • Reach and access - Setup of a Helpline and web chat service • Consolidate information on corporate hiring efforts for differently abled candidates (Titan, etc.) • Improved capability of national employment service personnel using various means like inclusion of Industry professionals as Career Advisers on a rotation basis • Create awareness of NCS through media • Boost entrepreneurship and industrialization • Encourage entrepreneurship by providing platforms (possibly tech enabled) for interface with Venture Capitalists • Increasing industrialization and hence jobs by reducing land acquisition related complications (Online Registration process) • Need for creation of high quality jobs - Increasing the demand side aligned to economic growth • Need for to review and revamp the setup in place for job matching in terms of technology, infrastructure, capacity building of National Employment Service personnel, location and accessibility to employment exchanges • Increase Entrepreneurship

32. 3. Working Conditions – Interventions proposed Needs – Current State Analysis Interventions (At a glance) • Currently most of the labor regulations are largely premised on open ended employment contract and existence of a direct employer-employee relationship in the formal sector • Need for labour regulations to consider various employment situations (fixed term/temporary/part time employment, self employment and employment in the small firms and household industries) • Review and re-orientation of labour regulations for effective protection of all types of employees • Consolidation of labour laws under four major groupings: Working Conditions, Industrial Relations, Social Security, and Welfare • Ensuring uniformity of definitions • Providing flexibility to employers without compromising safety and security of workers • Equal pay for equal work for all non- standard employment • Enhancing compensation for retrenchment • Promoting Safety at Workplace for Women • Reforms in Minimum wages Act • National Floor Level Minimum Wages to be made statutory • Applicability of Minimum Wages Act to be expanded to all the employments and not restricted to scheduled employments • Reforms in Migrant Workmen’s Act • Interstate Migrant Workmen’s Act to be amended to include all migrants under its purview. • Benefits under the Act to be made portable.

33. 4. Social Security & Benefits – Interventions proposed Needs – Current State Analysis Interventions (At a glance) • Increased coverage in the social security net • Focused efforts towards increase in coverage of workers under the ESI and EPF Acts especially in sectors like construction • Establishment of common criteria on enterprises size and wage threshold to be adopted for availing benefits under ESI & EPF Acts • Increased coverage of RSBY (first to all BPL households and then to all the unorganized sector families) • A dedicated welfare board set up to extend social protection measures to all home based workers • Increase of Maternity leave under the Maternity Benefits Act from 12 weeks to 24 weeks • National database creation for storing social security data • Creation of a National Data Base on social security for tracking registration of beneficiaries and monitoring deliverables under various schemes • Reduction of administrative overheads and improved delivery of schemes • Setting up of a Central Labour Welfare Board to administer all existing/ proposed central welfare funds to cut down administrative overheads and improve delivery systems • Need to extend the coverage of social security benefits (involves increasing spread of coverage for workers in the organized sector, as well as those in the informal sector and home based workers) • Need to review wages for workers (especially related to wages for casual labour and social security for contract labour) • Need for benefits portability to cater to accelerated mobility of workers in search of employment (intra-state and rural to rural); Also need for adequate social protection for all internal labour migrants

34. NEP Outcomes Key Pillars of NEP • Contribute to achieving target of skilling 500 million persons by 2022 • Reduce educated youth (15-29 years) unemployment rate by 2025 – • Overall: 11.3% to 5.6% • Women:17.4% to 5.6% • Enhancing quality of skill endowment of labour force and workforce • Enhancing the income earning potential of self employed workers • Supply side – By 2025 increase LFPR • Overall: 39.5% to 55% • Women: 22.5% to 45% • Men: 55% to 65% • Youth: 44.6% to 60% • Demand side • To contribute to achieving the target of 100 million manufacturing jobs by 2022 • To contribute to the 12th Five Year Plan target of 50 million new jobs in manufacturing and services by 2017-18 • Extended scope to include all types of employees in both unorganized and organized sector • Reduction of inequities based on gender and social groups • Portability of Benefits in case of interstate migration • Increased coverage of Social Security Net • Greater focus on delivery of various schemes to ensure transparency, speed and cost effectiveness 1. Employability Demand responsive skill development 2. Employment National career service, Self-employment 3. Working conditions Labour regulations, Occupational Health and Safety (OHS) 4. Social Security and Benefits Social Security benefits, Wages NEP - Outcomes

35. NEP – proposed governance structure National Employment Policy Council Provide overall direction Union Labour and Employment Minister Representations from major Central Ministries and State Governments National Employment Steering Committee Central Trade Unions DGE&T Employer and Industry representation VVGNLI (Technical support) ILO Experts in Labour studies Secretary Ministry of Labour and Employment (MoLE) Formulate specific implementation plans and prioritization of these MoLE Evolve key indicators and monitor implementation of policy parameters and outcomes on a regular basis

36. NEP Monitoring Indicators • Qualitative and quantitative dimensions of the employment policy such as • Employment and Labour force trends - sector wise/ gender/social group • Social Security - Coverage of flagship schemes and access to benefits • Labour Regulation-Simplification, compliance and enforcement trends particularly in relation to minimum wages, contract labour, equal remuneration, migrant labour etc. • Skill development- In liaison with the National Skill Development Authority – skill mapping, skill matching and expanding skill base with special focus on women, youth and socially disadvantaged groups • Labour Market Information System and National Career Service - Current and Future job market opportunities, Job search assistance Policy review frequency • Annual

37. Employment Exchange Act, 1959 • Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 • Requires all establishments in the Public Sector and non-agriculture establishments in Private Sector where 25 or more workers are employed to work for remuneration, to mandatorily notify vacancies to Employment Exchange as may be prescribed by the respective State Government/Union Territory • Employer not obliged to recruit the person through employment exchange • Penal provisions in case of non compliance • 956 Employment Exchanges across the country with around 4.5 crore people registered (TN, WB, UP, KL, MH, MP account for 3 crore approx.) • Annual placements – around 5 lakhs (GJ and MH account for 3 lakhs approx.)

38. Policy framework for supporting National Career Service • A Policy for National Career Service is proposed to address the changing needs of the labour market and align it with the policy initiatives for enhancing employability and connecting youth with employment opportunities by giving a focus on career counselling • A discussion paper on the same was prepared • An Inter Ministerial Committee has been constituted for recommending amendments to the Employment Exchange (Compulsory Notification of Vacancies) Act, 1959 • The discussion paper was shared with the IMC and its recommendations are presented in the next slide

39. Recommendations of Inter-Ministerial Committee • After deliberating on the discussion paper, following decisions were taken by the IMC: • Employment Exchange (CNV) Act, 1959 should be repealed as it has lost its relevance • NCS should function under a Policy framework which will have elaborate provisions and mechanisms for functioning of Public and Private Placement Agencies • The Policy would include development of a Code of Conduct, MoU/agreement arrangements and have a subscription base system for authorized users. The Policy would address issues like Centre-State operations, Data Sharing and Privacy Issues • To oversee the implementation of the policy, it was decided to establish governance structures like employment authorities and regulatory machinery with an effective monitoring system and provision for third party audits • The Policy will also have a robust grievance redressal mechanism to address violations, misuse etc.

40. Other initiatives • Recognition of Prior Learning for construction sector workers • Construction sector is a labour-intensive sector with only around 1% workers in rural area are formally skilled • Working Group formed to help devise a program for mainstreaming the informal skills in construction sector • WG recommendations include worksite led training and assessment of existing workforce after pre-assessment of existing skills, gap training, etc. • Last mile employability • DGE&T is working to improve last mile employability through finishing skills courses to be imparted through reputed institutions • Working Group formed to help devise courses • Basic course of 90 hours for Class X pass students and an Advanced course of 140 hours for Class XII pass and above proposed

41. Way forward • Leadership models for Industry-ITI-Career Centre collaboration • for • Enhancing employability of and entrepreneurship in youth • Upgradation of skills of existing workforce • Mainstreaming informal skills • Meeting the emerging skill needs of industry

42. Thank You Directorate General of Employment & Training Ministry of Labour and Employment, Govt. of India Shram Shakti Bhawan, 2 & 4 Rafi Marg, New Delhi-1 Phone: 011-23710446