A Critical Analysis of National Apprenticeship Training Scheme (NATS) and It's Employability on Technical Graduates: A Case Study of the Eastern Region.

Chapter-I

Evolution of Apprenticeship

1.1 Introduction

A formal contract specifies the duration and the terms of the Master-Apprentice relationship that governs apprenticeship training in an art or skill.

Ancient civilizations, including Ancient Egypt, Rome, Greece, and Asia, had a strong understanding of apprenticeship. Later Middle Ages saw the development of the European apprenticeship system, which was governed by local governments and guilds of artisans.

Societies have always ensured that abilities are passed on from generation to generation. Skilled people who produced goods or rendered services were known as artisans. There were two types of artisans: master craftsmen and journeymen or apprentices. The master artisans were greatly regarded and founded Craft Guilds/Independent Collegia to protect their trade standards.

The apprenticeship system, which entails trainees learning a skill or trade via hands-on experience while aiding an experienced worker, is utilized around the globe, even though its nature has changed through time and greatly differs between countries.

The foundation of technical education is an apprenticeship, which can only be fully realized when theoretical knowledge acquired in academic settings is combined with efficient and useful hands-on training in the workplace. The apprenticeship system allows an apprentice to make money while studying; it serves as a mode of training and education and a full-time job arrangement. Due to the dual nature of apprenticeship, education and training programs are designed to help apprentices accomplish these two objectives.

The apprenticeship system allows an apprentice to make revenue while studying; it is both a full-time job arrangement and a method of training and education. Due to the dual nature of apprenticeship, apprentices' education and training are created to assist them in achieving these two goals.

The specifics of apprenticeship in several nations have recently been institutionalized and bureaucratized due to governmental control and the licensing of polytechnics, engineers, and vocational courses.

1.2 Overview of Apprenticeship Programs in other Countries

In an apprenticeship program, employees learn on-the-job while working and earning money, as well as while attending classes. The apprentice obtains crucial work experience and accreditation upon completing the apprenticeship, enabling them to work in the same or a different trade or industry.

Apprenticeship terms range from one to six years and depend on the trade. Apprentices receive a stipend or minimum wage for their full-time labor. Every country has a different entry age and wage structure for apprentices.

Three different apprenticeship kinds exist:

•  Time-based: The amount of time the apprentice spends in class and on the job is used to gauge how far along they are.

•  Competency-based: The apprentice's development is assessed based on their capacity to show how pertinent information, skills, and talents are applied.

•  Hybrid: the apprentice's development is assessed using the number of hours invested in the program and the competencies displayed at work.

Let's look at the apprenticeship systems in other nations.

Australia: With a capacity to accept close to four lakh trainees, Australian apprenticeship supports more than 500 occupations. Australian Apprenticeship Support Network offers the instruction. With its Group Training Scheme, Australia also has a distinctive safety net for companies and Australian Apprentices. A frequent visit from an industry consultant who confirms that the apprentice/trainee is fulfilling their training and work responsibilities with the host company is one of the extra advantages, in addition to providing a safety net for both the trainee/apprentice and the host business.

Canada: Canada's provinces each have their apprentice program. After passing this provincial test, individuals can take the standard interprovincial exam. These tests are used as provincial examinations in certain provinces, including British Columbia. This implies that meeting the requirements for the province will satisfy all of Canada. All provinces have agreed on the exam's interprovincial questions.

France: In France, the first set of facilities for apprenticeship training was founded in 1961, and apprentices were formally included in the definition of a professional trainee in 1971. The minimum age requirement to start an apprenticeship increased from 20 to 25 in 1986. In 1961, the bare minimum of training hours increased to 360, then in 1986, to 400. Since 1987, the range of certifications that may be obtained through an apprenticeship has grown to include the Certificate of Vocational Baccalaureate Diploma, Vocational Aptitude, Engineering Diplomas, Advanced Technician's Certificate, and more.

The French government is committed to developing apprenticeships to achieve academic and professional achievement. Eighty percent of young French individuals who have completed apprenticeships found jobs in 2005.

As apprenticeships are often associated with educational failure in school and the capacity to understand only practical skills and not theoretical ones, they also tried to enhance their perception of them through an information campaign.

Germany: The dual education system there includes apprenticeship training, which is acknowledged as the most effective apprenticeship model. The dual system means that apprentices work mostly outside and attend school part-time. They often spend one to two days at a technical school and three to four days a week working for the enterprise. The average period of training is 35 months. A law was passed in 1969 that codified the state's joint obligation with unions, organizations, and chambers of commerce and industry. It regulated and harmonized the vocational training system. Since it is nearly impossible to find a job without having finished an apprenticeship, everyone must complete the training. The German Chamber of Commerce coordinates the entire program, which is the employer's responsibility. Apprentices are not permitted to hold other jobs and are only covered by an apprenticeship contract that prevents them from being fired suddenly until the program is over.

Japan: In Japan, employee training and apprenticeship programs frequently include a personal orientation uncommon in other industrialized countries. The distinctive Japanese idea of apprenticeship results from a distinction in the employment relationship. Although this arrangement does not apply to most small and medium-sized establishments and industries, large Japanese establishments and industries have a social obligation to provide lifelong employment for employees who, in exchange, are needed to remain with the same employer (until retirement or death). Because Japanese apprenticeship emphasizes work with a certain business, it lacks a strong connection between an apprentice and a particular trade elsewhere.

United Kingdom: The UK government introduced Modern Apprenticeships in 1995 to further enhance apprenticeships' reputation and inspire young people to pursue them (in 2004, the phrase was renamed Apprenticeships). By developing frameworks for apprenticeships (like those in accounting or business administration) and attaching them to particular qualifications and certificates, an attempt was made to establish a more controlled system. Advanced Modern Apprenticeships were formerly called Advanced Apprenticeships, and those who complete them are awarded an apprenticeship certificate, National Vocational Qualifications, and a technical certificate. As of 2009, 180 trades were included in the UK's apprentice program. The apprenticeship training is being reinvigorated. Core skills are taught to youth instead of specific knowledge or talents; apprentices have work contracts with their employers, and independent establishments/industries also provide them with formal education. Although no minimum time is required, an apprenticeship typically takes around 21 months.

Government financing organizations enter into agreements with learning providers to carry out apprenticeship programs and certify them as National Skills Academies or Centers of Vocational Excellence. These establishments/industries manage the administrative burden of the apprenticeships and offer off-the-job training. Most providers are private training firms, although they can also include further education institutions, nonprofit groups, chambers of business, and employers themselves.

United States: In the US, apprenticeship programs are governed by the National Apprenticeship Act, sometimes called the Fitzgerald Act.

According to the US Department of Labor, apprenticeship is a tried-and-true method for addressing company demands of a highly skilled workforce while preparing workers for employment. This learn while you earn approach is led by the employer and combines classroom teaching that is job-related and tied to the accomplishment of national skill requirements with on-the-job training provided by the company that employs the apprentice. The concept also calls for progressively higher salaries and skill levels for apprentices. A typical apprenticeship program has five elements. These consist of the following:

•  Business Involvement: Employers often share the administrative chores necessary to sustain apprenticeship programs via apprenticeship councils, industry groups, or other partnerships.

•  Structured On-the-Job Training: An experienced mentor gives apprentices practical instruction at the workplace. The emphasis of on-the-job training is on the skills and information that an apprentice must pick up during the program to be fully competent on the job. Based on national market norms, this training is tailored to the company's demands.

•  Related Instruction: The fact that apprenticeships integrate in-class instruction with related training in the cognitive and technical skills required for employment is one of their distinctive features. The curriculum is developed in partnership with businesses and frequently includes nationally recognized skill requirements.

•  Compensation Increases for Skill Attainment: Apprentices start with a starting salary and see their pay rise as they reach skill-attempt goals. These encourage and reward people.

•  Nationally recognized Credential: Every participant who completes an apprenticeship program is awarded a nationally recognized credential. With this transferable credential, apprentices may show employers that they are fully competent.

The aforementioned established nations successfully execute the apprenticeship training program compared to developing nations. The current problem facing emerging nations is integrating these talents into technical training and the workplace. It is necessary to keep defining what is required for this. After taking the lead in identifying the necessary capabilities, the system may next turn to service partners to address those requirements. This strategy respects grownups, who typically have fewer resources to set themselves up for success. Additionally, it could persuade hesitant participants that learning fundamental skills is relevant to their aim of finishing an apprenticeship.

1.3 Indian Apprenticeship Regime

India has had a structured apprenticeship system that has been underutilized and largely unknown since it was established in 1961. Less than 0.01% of its workforce—roughly 700,000 formal apprentices—compares to 2.7% in Germany. Only 35,000 employers in India hire trainees (the United Kingdom has 200,000). Despite the Apprentices Act having undergone four amendments, the 2014 and 2017 amendments set a lofty target of 10 million apprentices by 2030.

1.3.1 Apprenticeship Training Scheme (ATS)

For any nation, industrial development is a major contributor to economic expansion. However, it has been noted that growth and maintenance necessitate qualified employees who may be able to carry out essential multifaceted tasks. Technological advancement, research, and development, as well as inventions, are prerequisites to industrial progress and the ensuing economic expansion, as Solow (1956) and Romer (1990) have noted. R&D activities, which are in turn propelled by private companies' desire to capitalize on breakthroughs, are what propel technological advancement (Kniivilä, 2007). Therefore, a collaboration between technology, innovations, and R&D is essential for structural transformation.

India had a sizable labor force that was ignorant and unskilled at independence. India's planned route to development, which heavily emphasizes the state and public sectors, focuses on industrial growth. Four decades later, as industrialization accelerated, a need for new skill sets in various economic areas that weren't already present arose.

As industrialization accelerated, policymakers anticipated that every year there would be enormous populations of human resources available for employment, the bulk of whom would be uneducated rural school dropouts lacking practical and marketable skills. It was thought to be a good idea to connect this big labor pool with industrial businesses so they could learn different trades and crafts and develop functional and vocational skills. Through the enactment of The Apprentices Act, the Government of India implemented the ATS (Apprenticeship Training Scheme) to make use of facilities and offer training in businesses to increase the demand for skilled labor in the developing industrial activities and to impart practical skills-in-demand to the aspirant youth (school dropouts and graduates) entering the workforce. The National Apprenticeship Program was created voluntarily in 1959. The Apprentices Act, passed in 1961 and took effect on March 1, 1962, gave it official enforcement.

The Apprentice Act of 1961 gave young persons between the ages of 14 and 21 the opportunity to learn skills while working and receive compensation for a set time, which could range from six months to four years, depending on the skills and their formal vocational training with prior experience.

Working for an employer who assists apprentices in learning their trade in return for their continued labor for a certain period after becoming skilled takes up most of the training time. The following objectives of the 1961 Apprentices Act were established:

•  To govern the industry's apprentice training program to comply with the Central Apprenticeship Council's specified curriculum, training duration, etc.

•  To develop synergy among all the stakeholder groups, it is important to fully use the industry's facilities for practical training to satisfy industry demands for trained labor.

An apex statutory tripartite body called the CAC (Central Apprenticeship Council) had been made to inform the government on formulating plans and prescribing standards and guidelines for ATS. While the Union Minister of Skill Development and Entrepreneurship serves as the CAC Chairman, the Vice Chairman is the Minister of State for Education.

The Apprentices Act 1961, as amended in subsequent years, states that certain establishments must hire a specific number of recently graduated engineers and diploma holders for one-year apprenticeship training without a guarantee of employment after training. The government body of the Eastern region identified these establishments under the Ministry of Education, GoI. To their advantage, employers are recommended to favor former apprentices. The following are key characteristics of apprenticeship training:

•  During the training, apprentices can learn about and experience the most recent methods, procedures, and technology used in the industries.

•  Acquiring Practical experience in their area of expertise

•  Students are allowed to stop their training if they get a job.

•  After completing their one-year program, apprentices get a Completion Certificate from the Government. Students are permitted to stop their training if they have a job gained. This certificate is recognized as one year of job experience to find permanent employment.

Every year, new trainees who are found to be qualified according to accepted practice and who received the government body’s (BOPT) approval are hired by employers or establishments. Employers must pay 100% of the minimum defined amount on a monthly basis. This is the minimum value of stipend that the Government has specified.

Without signing an apprenticeship contract with the employer or their guardian if they are minor, no one may be engaged as an apprentice to undergo a training course in a specified trade.

1.3.2 Amendments to the Apprentices Act of 1961

The legislation was originally altered in 1973 to permit the apprenticeship of diploma and graduate engineers as Technician and Graduate trainees. The Act was subsequently amended in 1986 to extend its authority to include the training of Technician (Vocational) Apprentices from the 10+2 vocational stream.

In 1997, additional revisions were made to the terms establishment and worker, as well as to the number of apprentices required for a given trade, the practical and theoretical training of apprentices, the obligation of employers, the penalty for violating the Act's rules, and the identification of offenses.

In 2008, additional amendments to the Act's various provisions regarding reserving positions for applicants from other backward castes (OBCs) were made.

The most recent change, which was first made in 2014, replaced the system of trade and unit-wise regulation of apprentices with a band of 2.5 percent to 10 percent of the total workforce, the addition of optional trades, the removal of strict clauses like the opportunity for businesses to outsource training services, the replacement of penalties for imprisonment with fines (For information on the progression of apprenticeship policy through time, refer Table 1.3.2). The mandatory provision for establishments with a minimum of workers was reduced in 2017 from 40 to 30, and the optional provision was reduced from 6 to 4. With a spectrum ranging from 2.5% to 15%, the most recent amendment further enhanced the unit-wise control of apprentices.

Table 1.3.2: A Chronological History of Indian Apprenticeship Policy

Source: Author’s compilation

1.4 NATS (National Apprenticeship Training Scheme), Origins and Importance

India has a strong formal education system and high levels of educational attainment. A significant amount of analytical information is incorporated in degrees and certificates in the sphere of professional education, giving qualifications and certification more weight than the actual competencies needed by a business. Establishments argue that the professionals are not industry-ready since it is regarded that skill-deficient manpower is entering the labor market. Consequently, there were several brainstorming sessions and contacts between the stakeholders, particularly between the participants on demand-and supply- sides of the market for technical, professional, and vocationally qualified human resources. The empirical study on skills and employment, employability, etc., provided thorough documentation of this issue. The above issue is referred to as India's labor transitions in one of the available literature, which is demonstrated in three general steps, including (a) Matching (tying supply and demand together - Employment reform), (b) Mismatch (fixing the supply and demand- Employability reform), and (c) Pipeline (education reform, a fundamental reform that calls for immediate structural changes at the educational level, is preparing supply for demand).

Any country's industrial growth depends heavily on developing its human resources. A key element of human resource development policy is skill upgrading. Institutional instruction alone is insufficient for the learning of skills, further training in the workplace is required.

Creating industrialization-ready human resources depends heavily on education and skill development. Several industrialized nations, including Japan and Germany, recognize the importance of education and training in supplying the need for educated and skilled labor; they have consciously established and arranged their educational systems to speed up the modernization of their economies (Timmons, 1988). He expressed a similar expectation for education and training to better the future economy of the United States of America, saying, The education of America's population determines its capacity to compete in the global market, but the educational system has to be upgraded to ensure a promising economic future (Grayson, 1988, as cited in Razik and Nalbone, 1990).

Governments are responsible for developing human resources in many other nations, particularly emerging nations. This is particularly true for Malaysia, where financial expenditures and the growth of government-sponsored training facilities may be seen as indicators. As an illustration, public skill training institutions expanded from 100 in 1995 to over 200 in 2000 (Morgan and Othman, 1998). Many actions were taken to increase the capacity for skill training, including continued support for the construction of additional training facilities.

However, despite constant increases in the training capacity, these efforts fell short of the demand for skilled labor, which has been rising in recent years and outpacing the capacity of public training institutions to satisfy it. Due to the intricacy of each sector, it is also very difficult to offer training tailored to a certain industry or business.

The apprenticeship program for training skilled workers illustrates how close collaboration between educational institutions and businesses may be developed. Mathews considered apprenticeship to be a model of skill development due to its mix of on-the-job and off-the-job or institutional training, guaranteed employment for the length of the training period, and a lower rate for indentured apprentices (Mathews, 1989). Apprenticeship, according to Coy, was the technique of transmitting specialized knowledge to a new generation of practitioners. It is a method of learning things that are difficult to convey through usual channels (Coy, 1989). Liepman presented apprenticeship as extending beyond training when she said that it is not merely the future craftsman's training, [but] is also exploited as a technique for other aims, about the area of industrial relations in general (Liepman, 1960).

The concept of an apprenticeship is characterized by the duality of its nature, the apprentice is both learning and earning, and the employer is both guiding him and paying him for productive labor, claims Liepman. The appropriateness of apprenticeship largely depends on its efficacy in balancing the interests of education and the economy, she said. Apprenticeship constitutes part of the education system and part of the economic system (Liepman, 1960).