Funding adult skills in France: here comes the ‘big bang’

Considerable controversy has surrounded President Macron’s plans for labour reform in France, especially measures designed to promote labour flexibility and limit trade union powers. Less widely reported are parallel interventions to promote skills and learning, but this is where the focus is now moving.

The politician responsible for the labour reforms is Muriel Pénicaud, an experienced human resources manager who became Minister of Labour in May 2017. After completing her first set of labour reforms last year, Pénicaud has turned her attention to training and skills, an area where she (and Macron) believe existing French policies to be antiquated and inefficient.

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“The training system is neither fair nor equitable”: unequal participation

On 5 March, the Minister announced the long-awaited content of her reforms, claiming that they had been ‘largely’ agreed with employers and unions. Above all, there are new arrangements for personal training accounts, or compte personnel de formation: whereas the old system was counted in time, the new entitlement will be calculated in cash, with the funds being collected through the social insurance system. Each individual employee’s account will be credited with €500 a year, capped at a total of €5,000; those with low skills will have a higher sum of €800 a year, capped at €8,000.

Further changes will bring part-time workers into the system, as well as absorbing the congé individuel de formation (CIF) into the CFP. A new tripartite agency, France compétences, will regulate the training costs and scrutinise quality, to avoid the kind of malpractice that dogged the initial foray into learning accounts in England and that has marred the CPF to date.

How much of this will happen is another matter. France’s unions and employers’ associations responded with their own counter-proposals. Pénicaud has initially dismissed these as too modest and conservative, arguing that what was needed was les incremental change than a ‘big bang’ (the French for which turns out to be – yes, big bang) which combined radical reform with a simplification of a complex and inefficient status quo.

Pénicaud’s ‘big bang’ also extends to other areas of skills pilicy. She is in discussion with social partners over how to improve skills levels among the unemployed, and has initiated discussions on an overhaul and expansion of the apprenticeship system. Taken together, these reforms will unsettle relationships not only with the unions buts also with employers’ organisations and France’s powerful regional governments. The outcome is still uncertain, but I’m backing Pénicaud to win.

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