Training in the Motor Vehicle Repair and Sales Sector in Italy

DOCUMENT RESUME

ED 379 481 CE 068 305

AUTHOR Volonta, Marco TITLE Training in the Motor Vehicle Repair and Sales Sector in Italy. Report for the FORCE Programme. First Edition. INSTITUTION European Centre for the Development of Vocational Training, Berlin (Germany). REPORT NO ISBN-92-826-8168-8 PUB DATE 94 NOTE 147p.; For reports on other countries, see CE 068 304-308. Cover title varies. AVAILABLE FROMUNIPUB, 4661-F Assembly Drive, Lanham, MD 20706-4391 (Catalogue No. HX-83-94-208-EN-C: 8 European Currency Units). PUB TYPE Reports Research/Technical (143)

EDRS PRICE MF01/PC06 Plus Postage. DESCRIPTORS Auto Body Repairers; *Auto Mechanics; Case Studies; Corporate Education; Educational Improvement; Educational Needs; Educational Trends; *Education Work Relationship; Employment Patterns; Employment Projections; Employment Qualifications; Foreign Countries; *Job Training; Labor Market; Personnel Management; Postsecondary Education; Private Sector; Recruitment; *Sales Workers; Secondary Education; Tables (Data); *Track and Industrial Education; *Training Methods; Training Objectives; Trend Analysis IDENTIFIERS *Italy

ABSTRACT An international team of researchers studied the following aspects of training in Italy's motor vehicle repair and sales sector: structure and characteristics; institutionaland social context; relationship to Italy's overall labor market; changing structural, economic, and organizational conditions; andtraining and recruitment and relationship to Italy's education system. Social and labor/employment statistics were analyzed, and case studies of an independent auto repair shop and four automobile distributors were conducted. Included in each case study were a profile of the company and analysis of its human resource development/training conceptsand policies, and provisions for continuing vocational training. A distinct lack of initial vocational training required to produce workers capable of keeping pace with the rapid changes in the sector was noted. This deficiency was partly compensatedfor by courses provided by manufacturers and, to a lesser degree, related associations. The training currently offered by the companies studied was rated average to better than average.Employee training was being provided almost exclusively by manufacturers. A trend away from training only in traditional technical areas toward training in areas deemed useful for overall company management(including planning, marketing, and telemarketing) was noted. (Sixty tables/figures are included.) (MN) European Commission

MOTOR VEHICLE REPAIR AND SALES SECTOR

U S DEPARTMENT OF EDUCATION (rice o onai rieseatitit a.c IproverV,1 EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) vfl This document has been reproduced as received from the person or Organintion originating it 0 Minor changes have been made to improve reproduction qualiiy.

Points of view or opinions stated in this document do not necessarily represent official OERI position or policy

-PERMISSION TO REPRODUCE THIS MATERIAL HAS BEEN GRANTED BY

TO THE EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC)"

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... EST COPY AVAILAB ,) v) 0O ,- MOTOR VEHICLE REPAIR AND SALES SECTOR TRAINING IN THE MOTOR VEHICLE REPAIR AND SALES SECTOR IN ITALY REPORT FOR THE FORCE PROGRAMME

drawn up by Marco Vo lonta Consorzio Sviluppc, del'Elettronica e del'Automazione (CSEA)

1993

First edition, Berlin 1994 Published by: CEDEFOP European Centre for the Development of Vocational Training, Jean Monnet House, Bundesallee 22, D-10717 Berlin Fax 49-30 + 88 41 22 22 Tel. 49-30 + 88 41 20 Telex 18 41 63 eucen d The Centre was established by Regulation (EEC) No 337/75 of the Council of the European Communities

3 Cataloguing data can be found at the end of this publication.

Luxembourg: Office for Official Publications of the EuropeanCommunities, 1994

ISBN 92-826-8168-8

ECSC-EC-EAEC, Brussels Luxembourg, 1994

Reproduction is authorized, except for commercial purposes,provided the source is acknowledged.

Printed in the United Kingdom FORCE

Formation continue en Europe Commission of the European Communities TASK FORCE Human Resources, Edecation, Training and Youth Rue de la Loi,:00; B-1049 Bruxelles

THE IDEA FORCE The future econorn..; strength and the potential for social progress of the European Community depends on a consistent impovemept in the competence and qualifications of its 132.000.000 labour force. Better continuing vocational training is one of the essential conditions for the success of the Single Market 1993. The, European Commission is deteiried to support and give fresh impetus to the efforts which companies throughout the Community are making to improve continuing training. FORCE is the European Community's action programme for the development of continuing vocational training. It is focussed on companies, especially on small and medium-sized companies. It involves trainers and training bodies, employer and union representativeseveryone concerned with impro. ong the competence of the labour force.

WHAT DOES FORCE OFFER? FORCE promotes working partnerships in continuing training between companies, training bodies, public authorities and social partners. These will include: supporting continuing training innovation through a European transnational network, an exchange programme, transnational and transfrontier pilot projects and projects concerned with the evolution of qualifications; assuring closer policy co-operation between Member States by evolving a common statistical means of analysing what is being done in terms of continuing training, through regular analysis of relevant contractual policy and collective agreements, and through enquir- ies into sectoral needs; supporting the establishment of regional consortia and transnational continuing training partnerships which specialise in transferring exemplary good practice to economically weak regions. JOINING You can take part in the FORCE network and apply for financial assistance to join its innovation and transfer exchanges and pi Djects if you are: a large, medium-sized or small company, a training body working with industry or commerce, an employer or trade union body, a training or human resource expert or manager. Through FORCE you can help improve continuing training in your company, sector or local labour market. At the same time you can help to contribute to the improvement and availability of continuing training and thus to shaping the European Community.

3 CEDEFOP

European Centre for theDevelopment of Vocational Training Jean Monnet House, Bundesallee22, D-10717 Berlin

Institutional status independent of the departments of theCommission of the European CEDEFOP is an autonomous body, Commission, to which Communities, but its task and activities areclosely integrated with those of the the Centre contributes its technicaland scientific expertise. laid down ty,, its Management Board,whose members repres- Working guidelines for the Centre are (12). (3), trade unions (12) employers'organizations (12) and governments ent the EC Commission and approves budgets and The Management Board decides onthe Work Programme, draws up adopts the Annual Report. they represent and The members of the ManagementBoard are appointed by the organizations changes each year. remain in office for two years.The chairmanship of the Board

Institutional tasks Information: information is one of the Centre's vital tasks. Itsdocumentation service In the field of vocational training, information from a network of national and a constantly updatedbibliographical database receive made available to a very wideaudience, in part via highly correspondents, and the information is then also ensures that the sophisticated computerized channels. Itscarefully planned publishing policy in the field of vocational training.It produces its own regular Centre's voice is heard on major issues flash special«) and occasional publications (»Vocational Training«,»CEDEFOP flash« and »CEDEFOP publications such as research reports,monographs and manuals.

Research: the Community, provides CEDEFOP, as a centre for the promotionand coordination of research within information, expertise and encouragementfor the planning and implementation support in the form of focus for innovation. of vocational training initiatives inMember States. In so doing it serves os a

Consultation: the Commission, has the task of promoting aconcerted CEDEFOP, as an organization supporting and encourage train- approach to vocational trainingproblems. It takes every opportunity to promote ing.

6 ACKNOWLEDGEMENTS

This study was carried out in the framework of the Theprojectteam wouldliketothankthe European motor vehicle repair and sales sector,companies who gave access for research, and within the EC FORCE programme and conducted whose staff provided the information and help by a central team made up of: which enabled us to write the case studies. We very much appreciate the time and effort invested Kai Olesen and Bruno Clematide, DTI Denmark so generously. Oriol Horns, CIREM Barcelona Georg Spat!, ITB Bremen We would alsoliketo thank the employers' with the participation of Skevos Papaioannou, organizations and trade unions, and their repre- INE Greece sentatives, who contributed to the research by making suggestions for case studies, attending under the responsibility of Felix Rauner, ITB meetings and commenting on the draft report. Bremen andinclose collaboration with Tina Bertzeletou, CEDEFOP.

7 CONTENTS

PART 1 - SECTORAL CONTEXT EMPLOYMENT, WORK AND TRAINING IN THE MOTOR VEHICLE REPAIR AND SALES SECTOR

1. Definition and limits of the sector 11 . 2.Structure and characteristics of the sector 13 3.Social and institutional context 17 4.Employment and work 21 5.Changing conditions (technological, electronic innovation etc.) and their implications for the level of qualifications required 24 6.Training 25 7.Appendices 26 8.Tables 30

PART 2 - CASE STUDIES 1. SA.MI CAR REPAIRS S.N.C. OF SACCO & MIGLIASSO 39 1.General description of the case study 39 2.General description of the company 39 3.Provision of continuing vocational training (CVT) 40 4.Training policies adopted by the company 40 5.Assessment of the training concept 41 6.Conclusions regarding continuing vocational training 41

2.Dl VIESTO SRL (VOLKSWAGEN CAR DISTRIBUTOR) 42 1.General description of the case study 42 2.General description of the company 42 3.Provision of continuing vocational training (CVT) 43 4.Training policies adopted by the company 45 5.Assessment of the training concept 45 6. .onclusions regarding continuing vocational training 46

3.DANILO REPAIR SHOP (CITROEN CAR DISTRIBUTOR) 64

1. General description of the case study 64 2.General description of the company 64 3.Provision of continuing vocational training (CVT) 65 4.Training policies adopted by the company 67 5.Assessment of the training concept 68 6.Conclusions regarding continuing vocational training 69 4.G. & G. PAGLINI SpA (RENAULT CAR DISTRIBUTOR) 74

1 General description of the case study `74 2.General description of the company 74 3.The provision of continual vocational training 76 4.Training policies adopted by the company 77 5.Assessment of the training concept 79 6.Conclusions regarding continuing vocational training 79

5.BETTONICA & GARGAN SRL (FIAT CAR DISTRIBUTOR) 94

1 General description of the case study .94 2.General description of the company 94 : 3.The provision of continuing vocational training 96 4.Training policies adopted by the company .98 5.Assessment of the training concept 99 .. 6.Conclusions regarding continuing vocational training

PART 3 - TRENDS CONCLUSIONS 1. State of the economy, employment and training 2.Standard and better practice (in relation to the case studies) '71,04 Categories for evaluation: Work organization 104 Relations between maoufacturer and repair shop/dealer -.104 Customer relations :104 Control or freedom of training '105 3.Problems 06' Employment practice (employee recruitment methods, types of contract, training, apprenticeship) 106 Contrasts/contradictions between social groups :106 Working hours 106.. Needs, demands, requirements me employer and the worker 106 Economic problems 106 Problems with the six dimensions of social dialogue 106 4.Current state of employment and future prospects: need for training and quality training 107 5.Open issues 108 6.Report on the meeting with the social partners 109

, MilerNMANNIIIINIIP PART 1:

EMPLOYMENT, WORK AND TRAINING IN THE MOTOR VEHICLE REPAIR AND SALES SECTOR

1.Definition and limits of the sector

2.Structure and characteristics of the sector

3.Social and institutional context

4.Employment and work

5.Changing conditions (technological, electronic innovation etc.) and their implications for the level of qualifications required

6.Training

7.Appendices

8.Tables

10 1. DEFINITION AND LIMITS OF THE SECTOR

In Italy the motor vehicle repair sector can be At the same time, there was a drop in the average divided into the following areas: number of sales of Italian motor vehicles in favour of 'he foreign makes. This can be attributed to the dealers, increasingnumber of dealerssellingItalian dealers with repair shops, vehicles and also to increased demand on the repair shops authorized by the manufacturer, domestic market for foreign vehicles. repair shops authorized by ACI (Automobile Club Italia), Table 3 shows that the market share of foreign independent repair shops, manufacturers in 1973 was 25 2% increasing to second-hand car dealers with or without repair 32.8% in 1980 and levelling out at some 34% in shop. 1986/1988.

The main areas which can be grouped into This slight recovery by Italian manufacturers after various types of dealers and repair shops will be 1980 may be attributedto the popularity of examinedingreaterdetailinthis and thecertain vehicles with the Italian consumer, for following section. instance the Fiat "UNO". However, from 1988 onwards there has been a significant recovery on There are no statistics on employment and types of the national market of foreign manufacturers. business fat dealers. In this context Table ,4 is significant. The strong upswing of foreignmanufacturers isevident Dealers (47.1 % of salesin1990).Inthe course of In Italy motor vehicles are distributed by commer- 1991, for thefirst time foreign manufacturers cial networks, directly controlled by the manufac- sold more vehicles overall than national manufacturers through their own dealers (mainly busi- turers, satisfying 53.2% of overall demand. This nessesbutinsome casesindividuals) whocorresponds to a totalof 1,246,096 vehicles purchase vehicles from the manufacturer and sell compared with1,094,620 sold by national them to the customer. manufacturers.

Apart from the dealers, other people are also Other data on motor vehicle sales are given in the involved in motor vehicle sales, i.e. agentS, sub-following Tables up to no. 10. agents, business intermediaries or simply people who identify potential customers. Itshould be stressedthat today a small but significant share of the market is in the hands of Tables 1 and 2 demonstrate the importance of the the Japanese manufacturers. It is no coincidence vehicle sector in Italy: that the Japanese have moved from a percentage of vehicles sold equivalent to 1.9% in 1990 to a turnover amounts to some 2.4% of the GDP and share of 2.6% in1991,inspiteof quota 7.7% of industrial production. restrictions hampering imports of Japanese vehicles into Italy.. Estimates show that inItaly the motor vettrio sector directly employs 220,000 people (includ- ast available data regarding motor vehicle ing employment originating from ancillary sup- sales confirms the expected downward trend on plies) and approx. 1,780,000 people indirectly the car market in 1992 (see Table 10). (employment related to vehicle sales and use). The businesses operating in the sector have, in In 1973 there were 1,324 dealers in Italy selling fact, signalled the end of the favourable trend. This foreign vehicles compared with 1,102 dealers sign of crisis is linked, although not exclusively, to selling Italian vehicles. the current stringent economic policy in Italy which will influence market development. In the same year dealers of foreign vehicles sold, on average, 255 vehicles each compared to 910 Thelatestfigureshighlightthecrisisatthe by dealers selling Italian makes. beginning of 1993 with an average drop of 14% in sales in Italy, coupled with a European In 1980 1,341 dealers in Italian makes of vehicles situation which would appear to be even more sold, on average, 769 vehicles each compared to disastrous. 1,714 dealers of foreign makes who, on average, sold 371 vehicles each. Preluding economic recovery, 1993 would seem to paint a sad picture. In 1986 the number of dealers sellingItalian makes exceeded that if foreign dealers: thereMotor vehicle repair were 1,636 dealers selling Italian makes com- Motor vehicle repairs r currently being carried pared with 1,624 selling foreign vehicles. out by the following types of business:

11 dealers who, alongside their own activity, majority of whom are small businesses. It encom- guarantee customers adequate technical assis- passes the following activities: mechanical repair tance both during the vehicle's warranty period shops (including those carrying out this work as a and qfterwards; secondary activity), engine reconditioners: electricians, bodywork specialists, tyre repairers, car repair shops authorized by the manufacturer. repair shops and dealers (those with a repair shop attached to the business). Such authorization is recognition of the professional abilities and is conferred upon the motor To evaluate the demand in the motor vehicle repair vehicle repair mechanic by the manufacturer.It sector,reference rust be made tothe main also entitles him to perform repair and main-indicator, i.e. the number of vehicles on the road tenance work on new vehicles during the warranty and their composition. period and to charge the full cost of repairs to the manufacturer. From a survey carried out in 1984 (see Table 12) 92.1% of the vehicles currently on the road are repair shops authorized by ACI (Automobilecars and 7.9% industrial vehicles. Club Italia) independent repair shops. With reference to 1984 (more recent data is not available) Table 13 shows the number of cars in Here there is no link with the manufacturer or othercirculation per inhabitant. In 1984 there were 366 specific associations. Rather than specializing in a cars per 1,000 inhabitants. Estimates for 1990 particular make of vehicle, they offer services onshow 435 vehicles per 1,000 inhabitants. the market as a repair service capable of dealing with any type of vehicle. Another important piece of information meriting evaluation is the age of vehicles. Table 14 high- A precise assessment of he motor vehicle repairlights that in 1990 there were some 25,200,000 sector in Italy is extremely difficult. vehicles on the road in Italy.

The few statistics available do, however, permit aWhen weconsiderthat in recentyears number of reliable conclusions to be drawn. 2,300,000 vehicles were registered for the first time each year, then only a quarter of the total From an analysis carried out by AMA (Associa- vehicle fleet has gone on the road in the past three tionofInsurance Companies)in1987,the years. turnover of the repair trade was estimated to be between 10 and 16 billion lire. In 1984, 36% of vehicles were more than 10 years old. Itwould seem realistic,currently,toestimate turnover at some 20 billion lire per year consider-This information will not be significantly different ing the rise in costs in this period due to increased today, it is an important indicator for the type and running costs and inflation. degree of demand for vehicle repairs.

The only available source of information is the From the 1981 survey, it was evident that 9% of survey carried out by ISTAT (Central Statisticsvehicles were owned by companies and 91 % Office) in 1981. were privately owned. In northern Italy 19 out of 100 families owned at least two cars. The ISTAT classification contains a single category known as "motor vehicle and cycle repairs" In conclusion, it can be highlighted how, in Italy, in divided into three classes with distinct activities: addition to comparatively new vehicles (approximately one-third) that require more servicing than "vehicle repair","vehicle bodywork repair" actual repair work, there are also a number of and "motor bicycle and bicycle repair". vehicles registered for many years with mechanical systems that require real repair work. Motor vehicle repair The most recent data available for companies inThere is a need for a repair service based on the motor vehicle sector are contained in a surveyelectronics and on integrated type components carried out by the research company Promotec requiring use of sophisticated equipment in order (see Table 11)in1990 using the register ofto correctly diagnose the defect before carrying companies of the Chamber of Commerce and, outrepairwork. Thereisalso a needfor more recently, by the Ministry for Finance. traditional work in which the practical skills arid experience of the mechanic inidentifying the The general category, motor vehicle repairs,is mechanical part needing repai is more important made up of some 90,000 local operators, the than the equipment used. 12 12 2. STRUCTURE AND CHARACTERISTICS OF THE SECTOR

Structure and brief history of the replaced with a new vehicle and the old one was dealers consequently taken in part exchange. InItaly the distribution network, composed of dealers of the various makes of vehicles, has Little by little, dealers frequently found themselves developed and grown in line with trends in the having to manage a large second-hand car fleet market and strategies of the manufacturers. as well as a new one. This tied-up capital led to a subsequent increaseincostsforthedealer, Following the creation of the Common Market and already hit by rising administrative, fiscal and progressive abolition of customs barriers from related costs as well as advertising costs (in order 1961 to 1968, Italy witnessed a sharp increase in to beat the competition). dealers in foreign makes. The first Italian manufacturer (Fiat) attempted to maintain its position in Lower income and the increase in costs forced thedealernetworkdespiteanincreasein dealers to follow the example set by foreign registrations (from slightly less than 72 million in manufacturers and tostart offering secondary 1961 to 1.5 million in 1973, a growth of 300%).services, maintenance and repair activity for both EvidentlyFiat wanted to consolidateits own new vehicles, covered by warranties, and second- dealers becauseit was convinced that with a hand vehicles, parallel to their main commercial solid economic structure it would be able to exploitactivity. economies of scale both in terms of the administrative apparatus and management of technical This change has been encouraged by Italian equipment. This would place it in a better position manufacturers who, for the first time, have been on the market. urging their dealers to offer this type of service directly to the customer and not only indirectly From 1970 to 1980 the vehicle market continuedthrough authorized repair shops. to expand while competition from foreign manufacturers was less significant. In the course of this change, the relationship between the two parties(the dealer and the Consequently Italian manufacturer 1, operating a manufacturer) has also changed. virtual monopoly, were able to maintain a policy aimed at guaranteeing their presence or favouring Initially dealer contracts did not exist. Instead there establishment of dealers in main towns only. were commission contracts (commission agencies). In the following years, the market moved from aiming to supply every family with a car (first There is a great difference as the dealers did not supply phase) to a phase which saw virtually allpurchase the vehicles from the manufacturers; they fam;lies with this means of transport. At the same sold them on behalf of the manufacturer having time, foreign manufacturers were making greaterbought them co a lower price. The difference in-roads on the Italian market and competition, between the purchase price and the selling price both in terms of quality and price, for foreign was the profit or commission for the commission vehicles was g.-owing. Since coming on to the agency. market, foreign manufacturers have encouraged their dealers to guarantee their customers high-During this time the dealers of foreign manufac- quality technical assistance. This type of organiza- turers had higher costs. As the manufacturer did tion, capable of undertaking vehicle repairs, wasnot have a branch in the country he had to provide stressed in advertising campaigns and enabled an after-sales service for the customer. them to secure a footing on the market. During the 1960s and 1970s, Italian manufac- Faced with an increasingly less receptive market turers, in particular Fiat, moved away from the and a greater presence of foreign manufacturers, commission contract to the dealer contract and, at Italian manufacturers, in particular Fiat, increased the same time,there was an increaseinthe the number of dealersinorder to create a network of repair shops attached to dealers. capillary network throughout the country. The near future The shift f-em the dealer system, guaranteeing a As stressed above strong competition in this sector wide customer band, to a capillary system that prompted the manufacturers and their dealers to consequently reduced their influence and relative develop increasingly targeted presentation strat- turnover, has created strong competition between egies for their products. dealers, even those serving the same manufacturer. With progress towards European union, competition will become stiffer in the near future. Meanwhile, we have witnessed the transformation from a market supplying first vehicles to all familiesThe opening of borders and the creation of a and characterised by a demand for new vehicles, Single European Market will lead to the disman- 13 to a market where the second-hand vehicle was tling of all customs barriers and to a free exchange innovation and foreigncompetitors were not Iis of goods bringing different models and technologies on to the market. The main reference market for manufacturers will no longer be the nationalbut the EuropeanAt that time, a typical repair shop was small, Community market. comprising the owner and staff, often with a low level of schooling. Fixed capital investment was To date, Italian manufacturers have been endeav- often very low. ouring to organize their dealers in order to face this new market. Often the owner, together with a skilled worker and apprentice, had been trained within the This they did by attempting to: industry or the component sector, and had not, therefore, undergone any specific training pro- restrict the number of dealers (without interven-gramme or structured skills upgrading except for ing directly to reduce them). When a dealer theshorttrainingcoursesprovidedbythe resigns he isnot always replaced and his individual component suppliers. business area is assigned to existing dealers; In the decades to follow, the increased complexity consolidate dealers by widening their territoryof the engine, the introduction of a differentiated and improving information, training and ser- range of models and makes, Foreign competition, vices. the acceleration in technological innovation, the widespread introduction of the computer, electron- A similar policy has also been introduced for the ic and automation systems and, more recently, authorized repair shops. the adoption of systems on the standard range vehicles which in the past had been optional and, The policy operated by foreign manufactu. :rs istherefore, limited to the higher range of vehicles, not very different. They tend to supplement andhave radically changed the requirements and reinforce their network within the dealer territory, conditions of the repair shop. This has forced the guaranteeing them maximum possible assistance. repair shop to widen its basic knowledge very quickly and has increased the need for frequent Dealers and the second-hand car and systematic skills upgrading. market Statistics on the annual turnover of dealers are not Faced with these changes, the network of Italian available at present. repair shops has responded in a variety of ways:

In 1991, 2,340,716 new vehicles were registered the repair shops attached to a dealer and and 740,300 second-hand vehicles were sold. authorized repair shops have been able to Assuming that the average cost of a new vehicle is exploit information on new products and/or approx. 10 million lire and that of a second-hand componentsand the continuingtraining vehicle 5 millionlire,annual turnover would schemes offered by the manufacturer which amount to some 23,400 billion lire for the new are generally of a high standard. car market and 3,700 billion lire for the second- hand car market. this has not been the case for independent repair shops many of which, in southern Italy, The economic importance of this market is evident still suffer from endemic constraints (extremely without even considering the market forlight smallinsize,with an average of 2-2.5 vehicles, trucks, buses, trailers and semi-trailers employees per company, a lack of information (due to the complete lack of sales data). on new products and components and little or no access tostructured continuing training Structure and brief history of the vehicle systems and unsuitable equipment). repair market The turning point in the development of the vehicle it should be noted that all types of repair shop repair network in Italy was the 1960s when Fiat offer assistance for any type of vehicle as there underwent major automation. are no restrictions on accepting vehicles of any particular make. Some of the structural weaknesses of this sector can be identified (at least for the independent (Inadditiontothe mechanical repair shops, repair shops), i.e. those not able to utilize thespecializations have emerged for various types information and training offered by the manufac-of technology such as bodywork, carburettor, turer. tyres, electricsf etc.).

The vehicle repair network was set up following The dealer and authorized repair shops have an the automation of Fiat when there were few advantage over the independent ones as they may 14 vehicles on the market, when there was littlework on vehicles under warranty for the menu- 14 facturer that they represent as well as being today any type of electronic fault will block the recommended to customers by the manufacturer. vehicle completely. Such recognition testifies to their professionalism, technical skills and equipment. This makes the demand for preventative maintenance even greater. Bearing in mind that the Similarly, the repair shops authorized by ACI technology in new cars is largely electronic, it can have an advantage over others on account of be assumed that the traditionalrepair shops, advertising policy as they are officially notified to specialized in single technologies, are outdated. members of the association as authorized assistance points. Itis evident that today's car repair shop must be highly specialized. Between 1981 and 1990 a large number of businesses,inalllikelihood small family busi- Fault diagnosis, repair work and quality assur- nesses, closed as they were unable to bear theance isno longer carried out by traditional increasingfinancial burden and not ableto procedures but by very sophisticated instrumenta- develop the required economies of scale. tion.In a modern repair shop, alongside the traditionaltools needed to repair mechanical Due to the lack of precise data, it is difficult to faults,new equipment suchasbrake-testing make a detailed estimate of this phenomenon. benches, exhaust-fume analyzers, clearance-test benches, econometers, rev. counters, are becom- Based on what has already been sated with ing indispensable. regard to the history and structure of the motor vehicle sector and following market evaluation, it Intheserepairshops,inadditiontoparts can be stated that companies still operating have replacement, work also involves reducing exhaust been reinforced structurally through the purchase emission levels and noise,. both of which must fall of technical equipment and both qualitatively and within the legal limits aimed at preventing noise quantitatively with regard to the workforce. and air pollution (knowledge of catalyst and ecofit systems). This is certainly the case in repair shops managed by dealers, who have over the past decadeToday's safety requirements dictate the use of implemented aneconomicpolicyaimedat sophisticatedelectronicdevicesforchecking providing better and broader technical assistance. brakes, steering and suspension and ensuring that these satisfy the legal requirements. The near future Future trends would seem to favour the creation of The futurewillprobably see the creationof repair shops capable not only of repairing faults structures enabling work in the integrated repair but of preventing them with a versatile workforce of the whole car system. This will only be possible able to work on the vehicle as a whole and not where there are modern, multi-process repair only specific areas. shops able to provide sophisticated diagnostic services, to ensure proper use of equipment and The car of todayismore reliable andless high-quality manual work in the correct fitrig of susceptible to breakdown. spare parts.

The car in today's society is regarded less as a In this type of repair shop, skills and capabilities product and more as a service. found today in a variety of specializations will be restructured and knowledge of electronics will be It has been transformed from e luxury or super- linked to that of traditional mechanical skills. fluous good, used mainly in leisure time, to a real working tool and an indispensable means of Traditional repair shop skills will not be redundant. transport. This has evoked in the user the need to They will be reorganized and enriched with new be able to rely on this increasingly efficient means knowledge ofelectronics whichisbecoming of transport. evermore prevalent in modern diagnostics and car components. Fromthispointofview,new technologies (electronics, new materials, modern paints) are These developments are currently taking place in producing a vehicle which will need even less repair shops attached to dealers and in authorized repair woric. repair shops.

This has made preventative maintenance moreSuch repair shops have an average number of important than ever with vehicle repairs becoming employees andamplediagnosticequipment relatively unimportant. covering a wide range of specializations. They have a sufficient number of customers to offset the In t'-.e past a mechanical fault was usually detected highrunning and purchasingcostsof such 15 insufficiero time to haveitrepaired, whereas equipment. 15 This is not the case in independent repair shops. technical innovation in the engine, electronics, materials and paintwork, will lengthen In the latter, structural weaknesses are still evident the car's life and reduce repair needs. (fragmentation,lackof equipment,out-dated skills) even inthe face of a changing market For the repair shop: which calls for a new type of repair shop. a growing need for sophisticated diagnostic equipment; The next few years will probably see significant restructuring with a decrease in the number of a growing need for information, continuing local repair shops and an increase in professional trainingand ahighstandardofskills capabilities, quality and technical equipment. upgrading;

The following factors will contribute to this: new, more restrictive, and far-reaching laws on environmental and safety issues (repair for the car: shop standards, waste disposal, etc.). new legislation on cars (more frequent and stringent MOTs) will considerably reduce the average age of vehicles on the road and consequently the need for repair;

16 3. SOCIAL AND INSTITUTIONAL CONTEXT

Legislative aspects commercial agreement drawn up between the two Legislation affecting dealers parties.

The dealer's main activity is the sale of vehicles The relations between dealers, agents and other and this is covered by commercial legislation. bodies operating in the commercial sector are governed by civil law. The main law governing this sector is Law 426 of 11 June 1971. A Council Regulation (ref. EEC 123/85) on motor vehiclesalesregulatescompetition,protects Two main laws make provision for public interven-weaker parties(the dealers),regulates prices tion in commerce. and gives official recogni,;on to dealers and their associations as businesses on the same level as The first governs the occupational qualification customers and manufacturers. of commercial operators. Finally, National Law No. 122 of 5 February Owners, partners and employees entitled to sell 1992 draws up registers of companies in this must be registered with the REC (Registro degli sector and, in regard to dealers, a national list esercenti ii commercio). kept on a regionalbasis by the Chambers of Commerce, Industry,Crafts tradesmen and To qualify for registration one must satisfy at least Agriculture (CCIAA). one of the following conditions: The law is described in greater detailin the have passedthe Chamber of Commercefollowing section on car repair shops. Commission examination on general aspects (fiscal, law, etc.) and, more specifically, on the products they intend to sell; either Lainpossession of a high schoolLegislation on car repair shops diploma, have attended a recognized voca- Prior to 1992, there was no legislation restricting tional training course or have graduated from car repair businesses. higher education, provided that the subjects covered are relevant to the activity; Law No. 122 of 5 February 1992 came into force have been active in sales in that particularon 5 March 1992. sector for at least two years as an employee, partner in a family run activity or a partner with This law governs car repair activities in order to administrative duties. protect customers, guarantee road safety, protect and safeguard companies that satisfy the require- The second law covers the need for local ments. authority permission to operate a business. The law states that "all replacement, modification Restraints aim to ensure that a balanced commer- and repair work for any component, or part, of cial network is created throughout the country. vehicles and engine-powered vehicle assemblies come under the car repair activity, as well as the The Law of 1971, following many legislative and installation of systems and fixed components on administrative modifications, was supplemented vehicles and engine-powered vehicle assem- by Law No. 375 of 1988 andisthe only blies".Italsostatesthat the term"vehicles" regulation governing the exercise of commercial includesmotorcycles,agriculturalmachinery, activity.Itcontains the provisions on practical trailers and trolleys,for the transportationof procedure andconditionsforsettingup a goods ;mid people on public highways. commercial company. It also stipulates: Tne following activities are included "car washes, the business must be locatedinan area petrol stations, replacement of air filters, lubricat- designated for commercial activity in the urban ing oil filters and other lubricants and coolants". development plan; the business must be conducted in premises By September 1992 each Chamber of Commerce with suitable hygiene and structural standards. had to draw up a single register for all repair shops. This register is divided into four sections: The mayor of the borough legislates on businessengine mechanics, electrical repairs, bodywork hours (opening not later than 09.00 and closing and tyres. not later than 20.00). Businesses must remain closed on Sundays and public holidays and forCompanies may only exercise the activities for one half day during the working week. which they are registered except where work complements the main activities. In this instance it The relations between a dealer and a manufac- is permissible to carry out work not strictly within turer are not subject to specific laws but to a the range of competence.

17 To be registered, new companies must provideThe law states that the periodic inspection of documentationtestifyingthattheyfulfilthree vehicles (MOT) may be carried out by private requirements: repair shops as well as by government agencies.

availability of space and suitable premises with The Ministry can, on the basis of its decree, entrust the relevant administrative approval; inspection activities (MOTs) to registered compa- equipment and tools necessary for the activitynies possessing the necessary equipment for a in line with the tables approved and drawn up period of 5 years. This is to be defined in a decree by the Ministry for Transport; to be issued by the Ministry. a technical supervisor with specific professional and personal capabilities. Licences granted to private repair shops at present are li nited to vehicles with an engine size less The technical supervisor must fulfil one of the than 3,500 cc. The repair shops are subject to following conditions: periodic checks by the general management of the MCTC which has the power to revoke licences have worked as a qualified mechanic for at and impose fines if essential equipment is found to least 3 years in a company in the sector during be missing or if the technical inspections (MOTs) the preceding 5 years. This period is reduced to have not been carried out satisfactorily. The

1 yeariftheperson concerned has an Ministry of Transport fixes the charges for these academic or occupational qualification; inspection operations carried out by public centres have attended a regional course followed by 1 or private repair shops. The latter must send the year of work as a qualified mechanic; MOT certificate to the MCTC offices so that it can possess a secondary school diploma or certifi-be entered in the log book. cate in a relevant subject. The role of the social partners Companies whose main activity is the sale ofThe social partners operating in the sector are vehicles may also exercise secondary activities. Indescribed below (employer organizations, work- this instance such companies must be registered in ers' unions, sectoral associations), as well as the a speciallist forming part of the Car Repair nature of the relationships between them. Register. Such secondary activities on the part of car retailers are permissible if the activity aims to Dealer entrepreneurial associations improve the quality of the main activity and is not an end in itself. Car dealers belonging to the commercial sector.

In this case a technical supervisor can be namedThe organizations representing, on a national whoisnotinpossessionof thenecessary level, the companies belonging to the commercial occupational qualifications if he is the owner, sector are: partner or a relative participating in the company or an employee who has worked for the company Confcommercio Confederazione Generale for at least 3 years out of the last 5. Italiana del Commercio del Turismo e dei Servizo (GeneralItalianConfederationfor By March 1995 these ,_,...yanies will have to Commerce, Tourism and Services); provide evidence that they have the necessary Confesercenti Confederazione Italiana space, premises and technical equipment attheir Esercenti Aftivito Commerciali e de: Servizi disposal. (ItalianConfederationfor Commerce and Services). Penalties are planned for those businesses exercis- ing an activity incorrectly, for those businesses These associations are to be found throughout the carrying out work beyond their competence, as country in regional offices that, as well as carrying well as for users who carry out the work covered out trade union-type activities to promote qualifica- by this law or who make use of the services oftionsin the sector, also offer the services to unauthorized businesses. companies inareas such as tax consultancy, accounting, and short-term training courses. Allthe companiesinthesector bear legalBoth associations plan and organize training responsibility for the work they carry out. On theactivities through national organizations on a basis of a subsequent decree by the Ministry of regional basis: Transport,allbusinessoperatorsmustissue certificates guaranteeing the quality of the work Cescot for Confesercenti; provided. Forter for Confcommercio.

This regulation will oblige car repair businesses to For the car dealer sector these activities focus carry out the work correctly and providethe mainly on sales (courses for sales assistants and customer with a quality guarantee. the commercial network). 18 18 Car repair entrepreneurial organizations sectors such as economics, tax and social policy. Underthisagreement asinglecoordination The organizations representing companies be-committee has been set up in which all organiza- longirg to the car repair sector,all or which tions participate. belong to the craft trade sector, are the following: With regard to training, craft trade organizations CNA Confederazione Nazionale dell'Arti- have recently signed an Interconfederation Agree- gianato edellePiccole Imorese (National ment (January 1993) with the union counterpart Confederation for Trades and Small Compa- which deals specifically with continuing training. nies) A copy of this document is attached. Confartigianato Confederazione Generale Artigianato (General Trades Confederation) Other employer organizations such as Confindus- CASA Confederazione Autonoma Sindacati trio and Confapi represent and protect industrial Artigiani,Confederazione Libere Associazio- companies. ni Artigiani (Autonomous Trade Union Trades Confederation,Free Confederation of Trades Other company associations within the sector Associations). There are a number of other national organiza- As in the case of the organizations representing tions in the sector which, rather than dealing with the commercial sector, functions include protecting trade union relations or the protection of company and representing the sector and their associatesinterests, represent the various types of businesses andinaffirming the economic,political and nationally motor vehicle manufacturers, foreign ethical values of the company and, in particular, car importers, dealers linked to Italian manufac- (as stated in the statutes of one of these associa-turers and their common interests, particularly tions) "of economic democracy and entrepreneur- with regard to legal aspects. ial skills, promoting the direct and autonomous participation of the craftsman and small compa-Three of the most important of these organizations nies in the choice of economic and social policiesare: in the sector". Federaipca, representing Itanian car dealers; These associations also operate throughout the Unirae, for car importers (representatives of whole country with offices at provincial and area foreign manufacturers); level and offer union-type assistance and repre- Anfia, the car manufacturers' association. sentation for the whole sector. They offer tangible services to the companies similar to those offered Employee union organizations by the associations in the commercial sector. The union organizations existing on a national Some of the craftsman confederations have their level are: own organizations devoted to vocational training activities (specific courses on a variety of topics, CGIL Confederazione GeneraleItalian° proposed by theentrepreneur andpartners, del Lavoro (General Italian Confederation of including employees, on managerial, administra- Labour); tive and technical subjects). CISLConfederazione Italiana Sindacati Liberi (Italian Confederation of Free Trade Unions); The CNA has a body of its own known as ECIPA UIL Unione Italiana del Lavoro (Italian Labour Ente Confederate Istruzione Professionale Artigi- Union). ana (Confederate Institute for Trades Training) that operates at regional and provincial level in the These organizations operate throughout the coun- company training sector. try at regional, provincial, area and company level, providing assistance at these levels. Although the Confartigianato does not have a national organization it promotes initiatives in theThey protect the dealer's employees through their variousregions companiesorgroupsof national unions for the commercial sector (FIL- companies for vocational training which alreadyCAMS-CGIL, FISASCAT-CISL and UILTUCS-UIL) exist in many regions such as Lombardy, Piedmontand for the repair shop sector through the national (ERFA), Emilia (IRFA), etc. unions for the metal processing and mechanical sector (FIO-CGIL, FIM-CISL, UILM-UIL). These organizations play an important rolein representing their sector when negotiating work With regard to continuing training for dealers, the contracts with employee organizations. National Contract for the tertiary and services sectors of14. 12.90 currentlyinforceisof Recently an agreement has been signed between importance as it contains the EEC Memorandum the craft trade organizations, committing them to between the social partners (Eurofiat and CECD) coordinated action in all matters of interest to thedated 1988. Originally only applicable to work- 19

1 9 ers in the retail sector it has since been extended to Union participation is guaranteed in negotiations the whole of the commercial sector. and in the signing of the CCNL (the national collective bargaining agreement) and through Bilateral companies are an example of thenegotiation at a number of levels on economic possible collaboration between the social part- and legal issues, suchs safety, health and worker ners for vocational training. training.

Recent contract laws between the social partners The unions also assist and protect workers with have laid down the aims and procedures forregard to health, social security, taxation and collaboration in the services field and for voca- pension issues. tional training, jointly controlled by the associations representing the employers and the employ-Collective bargainingstructuresalsoexistat ees. regional and local level (at provincial level for car repairers and at company level for dealers). This facilitates analysis of training needs, training planning and,in agreement with the training With regard to dealers, in the past inter-company agencies or vocationaltrainingcentres and contracts were signed on a national level but these respecting the training laws regulating training were not followed up. (the responsibility of the regions), provision for training. Collective bargaining takes place generally at national and company level (the latter with greater This is innovative as regards relations between the and lesser degrees of autonomy in relation to social partners in Italy. Joint companies currently national agreements depending on the manufac- exist on national level between the Confcommer- turer's stance). cio and the workers' organizations CGIL-CISL and UIL, as well as workers' organizations and CGIL-CISL and UIL union representatives are to be craftsman's organizations, Confapi - Associozone found throughout the dealer network (RSA) and Imprenditoriale della Piccolo e Media 1mpresacollective bargaining reflects agreement reached (Employers' Association of Small and Medium-. on a national level. sized Companies) and Confindustria. For repair shops, the Interconfederation Agreement Apparently these are the only organizations of 1988, which is still in force, establishes agreed offering training in the car sector. representation "di bacino" (usually corresponding to the provinces) and this is where real bc.-..aining Union relations power is to be found; there is no provis., -for company trade union representatives. Having presented and describedtheparties involved in the social dialogue it is interesting to The company landscape is too fragmented and view how this is organized from the trade union companies too small to permit widespread union perspective. representation or an expedient bargaining procedure.

2U 4. EMPLOYMENT AND WORK

Employment opportunities in the dealer including bodywork) were subdivided by number sector of employees. 40% of the repair shops operated There is no available statistical data for thesector with no more than 2 employees whilst 30% had 5 to permit accurate classification of zompanies byor more employees. type (according to the number of employees, the division between technical and administrativeThe car repair sector, in the strictestsense of the employees, age, scholastic level, type of employ- word, employs 150,000 workers. ment and vocational training, sex, etc.). For further elements of analysis, the survey carried out by the Tuscany region in 1987 is significant, witha sample of129 companiessituated Employment opportunities in thecar throughout the whole region, it is considered to repair sector be sufficiently representative for the wholecountry. The survey produced dataon the number of p.-ople employed by car repair companies inOf these companies, 31.2% employed 1-2 general and the number employed in local repair workers, 46.1% employed 3-5 workers and shops and units where the activity is carried out. 22.7% 6 or more workers.

The survey shows that some 10,000more are45.8% of these companies wererun by their employed in this sector than figures forcompany owner or by partners. 39.3% had employees, levels would indicate. This means thata significantwhilst the percentage of apprentices employed did number of companies carrying out repair work donot exceed 9.4% (see Table 18). so as a secondary activity.It should be stressed that, in the case of craft tradesmencar repairers, The level of academic achievementwas modest; company and local units are almost identical.It 36% of owners had a school-leaving certificate could be assumedin1981that companieswhile 52% had only completed primary school offeringcarrepairservicesas a secondary and in the specialized repair shops, only 12% of activity were car dealers. ownershadschool-leavingcertificates (see Table 19). This would indicate that, in carrying outa more Of the companies considered, 4 out of 5owners exhaustive analysis, reference should be made to (80%) had served apprenticeships withcompa- local repair units. nies in the sector (see Table 20).

Table 15 of the surv. y shows that therewere some Only in companies with particular specializations 107,000 localrr pair units specialized in the are there a significant number of owners who had repair of vehicles and bicycles in general, witha gained experience outside the sector. total of 264,000 employees (2.5 employeesper local unit). The owner's only training model has been in companies within the sector. In Table 16 data from Table 15 is subdivided into areas of specialization and the average number of The academic achievement of employeeswas also employees per local unit. low; the majority of employees commenced work upon completing compulsory schooling. 15.1 % of Disregarding the cycle and motorcycle repair employees had a primary school-leaving sector, of no interest to us, it is interesting to notecertificate whilst 78.5% had completed the lower that the car repair sector in general is composed of secondary level (see Tables 21 and 22). some 90,000 local units with an average of 2.58 employees per repair shop. This testifies to theThe number of workers with secondary school- fragmented nature of the sector. leaving certificates was insignificant.

Of these units 31,300 operated in the bodyworkThe statistical breakdown of the type of worker sector (32.8%),employing 81,000,whilst employed in the sector is particularly interesting: 65,700unitsoperated as carrepair shops 36.3% of the workers have special skills, 35%are (67.7%), employing 170,000. Of the latter,it is skilled workers and 28.7% are unskilled (see estimated that 13,000 were employed in repair- Table 23). ing tyres in some 5,000 repair shops or local units (see Day of Study The car and the future of car From this it is evident that employees in this sector repairs C.N.A. Emilia Romagna, p. 46, Dr. F.have a high level of qualification. luno). Analysis of the data on the level of schooling of In Table 17 thetotal number of localunits employees and the age at which they takeup operating in vehicle repairs in the strictest sense work shows that their skills have been gained of the word (including car repair companies in through experience in the companies and not general, excluding cycles and motorcycles butethrough training. 21

21 Occupational trends in the two sectors Current training offered by manufacturersis of and In the absence of reliable data it canbe assumed good quality. This will be further improved underpinned by legislation at national level. that the employment situation in thedealer sector is stable, even though in recentmonths there has greatest needsfor been a downward trend in the demandfor cars. Inthisinstance, dealers' continuing training would seem tobe the following: Inthe near future the car repair sectorwill theeffectsofthetendencies probablyfeel (to mentioned in 2.2. 1. company administration and management reinforce and consolidate existing networks);

Employment in the social groups atrisk 2. customer relations (transition fromthe chance customer-salesperson relationship to the long - Social groups considered at risk are thosewhose obligatory in accordance with lasting consultancy type relationship based on employment is purchase): current national law andrefers in particular to trust before, during and after invalids and the handicapped. behaviourial type courses problem analysis and problem solving; Itis believed that in the sector(dealers and car repair shops), risk groups arecatered for in line (effective with national provisions. This is particularly true 3. marketing and sales techniques for dealers, as repair shops whichemploy on demonstration of the innovative qualities of average 2.4 employees are notsubject to these the product). restrictions nor obliged to employeerisk groups. The need for continuing training inthe risk groups car repair sector There is no legal provision for other future car repair such as migrant or foreign workers. Itis no exaggeration that the company will be increasinglycomplex to manage. but Their presence in companies inthe sectoris There is a trend towards reduced dimensions companies must be of sufficient size towork in an insignificant. integrated way on the whole vehicle to guarantee efficiency and high-quality service. in the The need for continuing training over-bur- two sectors Family-run repair shops are currently dened by excessive management costs andshow The need for training within dealerships structural weaknesses. They appear unlikely to future. become modify their company structure in the ner7 Italian and European manufacturers will be increasingly opposed to the continuing expansion Companies, consortia and cooperaves may for the customer and of the Japanese market. Thr future cardealer willset up to guarantee versatility complex equipment have to be more than a good carsalesperson; he to purchase arid share the will need to be a professional capableof making required. company decisions. The tendencyistowardsconsolidation and and skills. He must be able to implement,throughout his integration in terms of both dimensions territory, the advertising ormarketing strategies Companies' main training needs are in manage- adopted by the manufacturer andimplement his ment and, in particular, analysisand control of own forms of advertising.Additionally, he must be in a position to comprehendproduct requirements company expenses. and to pass feed-back on to themanufacturer. In specialized sectors, such asthe electrical car the market repair sector, the new constructiontechnologies, The future dealer must be familiar with and and offer productsthe use of electronic compc.ie its and parts in which he is operating computerized responding to customer needs both in termsofthe need for more sophisticated, the company to sophistication, economy and convenience(finan- diagnostic equipment forces update continuously. At present themanufacturer cial consultancy) as well as after-sales supportand satisfies training needs with regard to construction advice. technologies. This method is beneficial todealers independent The salesperson will require a broadknowledge and authorized repair shops while base, know-how in order to analyzethe market repair shops have great difficulty in getting access Equipment manu- strategies,aprecise to this type of documentation. and develop marketing documentation technical understanding to presentthe product, facturers supply all the. necessary that equipmentisusedcorrectly assessing new technical solutionsfor guaranteeing toensure Equipment manufacturers, however, do not seem increased safety, comfort, extendedvehicle life, upon acquisitionof the lower fuel consumption and maintenance costs toprovidetraining 22 and environmental friendliness. equipment. 22 Law No. 122/92 will require all companies to be the manufacturers' new policy aiming at more equipped with modern diagnostic technology if organized networks of dealers which require they wish to gain authorization to carry out car new skills in management, organization and inspections (MOTs) and if they wish to remain control; competitive. the customer's changing perception of the car This law will also compel companies to guarantee (a necessity rather than a luxury item which the work they have carried out. This increases the must offer comfort, quality and safety), which in responsibility of the car repairer who will need to turn changes the customer-manufacturer rela- become more professional. tionship and the task of the dealer;

Clearly there will be both a demand and o need the need to protect employment in the, sector, for continuing training. which increasingly relies on sophisticated skills in technology, management and marketing. Training needs at present focus on the following areas: In the report and in the summary there are detailed explanations of why continuing vocational train- company management,accountancy,cost ing is the key to modernization and development. analysis and control A electronics, in particular, for: A prerequisite for this is: diagnostics mechanics 1.the introduction of new national legislation; monitoring systems and vehicle inspection (ABS, central locking, etc.) 2. the introduction of suitable technology and new materials (bodywork, paint, special treat- methodology for continuing training to make ments, etc.) activities more flexible and to overcome the lack of flexibility in time, space, training place Why continuing vocational training (open learning, multi-media, etc.); may become important for the development sector 3.increasing the quantity and quality of con- Continuing vocational training is fundamental to tinuingtraining on offer which, today,is the development of this sector. mainly based onthemanufacturers and sectoral associations. This is due to: Italy, it has been observed, lags behind other EC new national and EEC legislation to promote countries in spite of efforts made by the social modernization and quality in companies; partners to experiment.

technological innovation which fundamentally In the absence of substantial government invest- altersthe traditionalskillsof both the car ment it is impossible to attain the necessary quality repairer and dealer; which is becoming increasingly urgent.

23 5. CHANGING CONDITIONS (TECHNOLOGICAL, ELECTRONIC INNOVATION, ETC.) AND THEIR IMPLICATIONS FOR THE LEVEL OF QUALIFICATIONS REQUIRED

The change in conditionsisrelatedto many 3. increased safety and comfort differentfactors;inparticular the operational ABS context, the market and technological innovation. on-board electronic diagnostics electronic testing systems Traffic congestion and the increasing social and protection systems (e.g. airbags) human costs of accidents, energy crisis, pollution and environmental damage, saturation of the4. environmental protection market and aggressive international competition composition of fuel are the environmental and contextual factors with catalyticconverterandretrofitsystem the greatest impact on change in production. (controlling exhaust) perfecting and marketing the electric car Thishasledtotechnologies whichreduce stricterregulations on the location and consumption,maintenance andrepaircosts, activities of repair shops increase safety, reduce environmental damage and improve quality of performance and services The logical consequence of this is a growing need in the various models. for new skilllevels and the transformation of traditional skills in the sector to incorporate the The motor vehicle has been transformed from a innovations introduced in both production end car consumer good aimed at transporting goods and repair. people to an investment which requires multi- functional performance, safety, quality and com-This will have a number of effects on training: fort. It has led to a demand for higher skill levels from These new technologies (widespread productionthe dealer, who must be capable of presenting his ofelectronicsforinstrument andmeasuring product on the market and its technical character- systems and for controlling information systems) istics,safety,comfort,innovative and price/ have significantly altered the design and produc-quality ratio aspects. tion of the motor car which is becoming less and less a mechanical object and increasingly aAs regards the car repair sector, along with the mixtureof mechanics, computing,electronics need for traditional car repair work, which will and automation. remain (although this is decreasing) and for which practical experience is the essential ingredient, Thefollowingphasesofinnovation can be thereis an increasing demand for repairs to distinguished(technological,organization and electronic equipment or components which require legal) which have, and will continue to have, a basic knowledge and skills as well as correct use strong impact on the sector's structure and thus the of the equipment, increasingly electronic and need for continuing training. computerized, needed to correctly diagnose and repair the fault. Innovation aimed at: This will have two consequences for the sector: 1.restricting consumption reduction in weight increased attentwn to academic performance vehicle transmission technologies when recruiting staff; the need to regard continuing training as the 2. increased life of the vehicle main, irreplaceable, way of upgrading em- new materials and paints ployee skills in the sector in view of the speed of anti-corrosive treatment (zinc coating, etc.) technological innovation (see 4.5 regarding the need for continuing training in the dealer and car repair sectors).

24 2 6. TRAINING

In Italy there is no organization at present, either (tertiary and service sector). The employer asso- publicorprivate,whichprovides continuingciations for both sectors have tended to improve training in the sector, with the exception of training their training oi-fer for employees both in terms of provided by the manufacturers, the larger dealers, quantity and quality. the associations representing the companies and equipment manufacturers. They are, however,still a long way from the continuing training urgently needed by the sector In Italy there is a general lag between the supply on a national level. of and demand for continuing training in all fields which is linked for some reason to the legal and In general, with regard to recruitment procedures, contractual lag (Law No. 845 obsolete) in this there is a distinct impression that operators need to context. possess basic technical skills (in order to be able to leain and describe the vehicles' new technical There are limited training opportunities for youngsolutions, to know how to carry out repair work people seeking their first job and some on-goirg correctly, and to know how to correctly use the training courses. In addition, the business organi- increasingly sophisticated equipment). This would zationssporadically organizeskills-upgrading tend to support a recruitment trend in favour of coursesandshortvocationaltraining pro- candidates with theoretical and academic knowl- orammes. edge as opposed to the situation in the 1980s where experience gained directly in the sector Increasing awareness in the sectors of this demandwas more appreciated. for continuing training has produced a partial response. This was discussed at the last round of Youth employment in the sector is significant and interconfederation agreements and, in particular, the turnover rate rather high. in connection with the agreement on continuing training for crafts tradesmen of January 1993, The most common procedures for recruitment are during negotiations on the National Work Con- training contracts and apprenticeship. tracts currently in force in the commercial sector

25 7. APPENDICES

Legislation Fourth level: "Those belonging to the fourth level carry out Regulations governing duties including sales and linked complementary work contracts operations as well as tasks that require specific technical knowledge, i.e. book-keeper, general Commercial sector cashier,salesassisiant,employee performing For dealers whose main activity is the sale ofadditionaloperationstosalesindepartment vehicles, the national collective bargaining con- stores,singlepricestores,supermarkets and tract for the commercial sector is applicable. Thesimilarbusinesses;employeesindistribution following personnel categories are laid down: centres and/or stocks in companies, assistant in a grilled, fried food shop, delicatessen, ware- Managers: house employee, butcher, specialized blue-collar "Those belonging to the category of managers areworker, specialist in butchery, delicatessen, gro- employees, excludingdirectors, who perform cery shop, fishmongers, cheese shop, cake shop, management duties assignedtothem on a including those with sales duties". continual basis, important for the development and implementation of company objectives within Fi7th level: the scope of strategiesfor defining company"Those belonging to this level carry out skilled programmes, in organizations of a suitable sizework requiring basic knowledge and suitable and structure, which may be decentralized". practical and technical ability, i.e. invoice clerk, typist, sales assistant inselling food, assistant First level: butcher, assistant salesperson, driver, skilled blue- "Those belonging to the first level are worker.. withcollar worker". functions comprising a high degree of skills and who may also have executive responsibilities, i.e. Sixth level: head of a service or technical, administrative, "Those belonging to this level carry out tasks that commercial (sales or purchasing), legal office,require simple practical knowledge,i.e.care- shop, or branch, supermarket manager, even iftaker, warehouse guard, postman, guard, general this is integrated in a department store or single blue-collar worker". price store". Seventh level: The most common careers on this level are: "Those belonging to this level carry out cleaning or equivalent duties, i.e. cleaner using mechanical head of service or technical, administrative, equipment, labourer". commercial, legal office; head of EDP service, shop, branch manager; repair shop supervisor. Levels 6 and 7 require training and experience of the "elementary school" type. Levels 5 to 3 require Second level: skills equivalent to "secondary school" type. Levels "Those belonging to this level are workers who 1 and 2 require skills equivalent to those obtained carryouttheirdutiesautonomously and/or with school-leaving certificate and above. Man- coordinate and supervise functions, as well as agers rerre.,nt a higherlevelofskillsand personnel who carry out tasks of a creative nature con pete for director-type responsibilities in their within the scope of a specific tecinnical and/or specific sectors. scientificarea,i.e.inspector,headcashier responsible for several tills; head of departmentIn the absence of statistics it is not possible to give or section even if not employed in selling; book- indications of the numbers and percentage of keeper with managerial duties; director's secre- employees in these subdivisions. tary with managerial duties and functions; warehouse supervisor; goods despatch external agent; Car repair sector valuer inart and antique companies; licensed For employees in the car repair sector, the national shipping agent". collective bargaining agreement for the metal- processing and mechanical sector is applicable. Third level: This contract is also applied by some dealers to "Those belonging to this level are workers who employees in the car repair shops. carry out managerial duties .and functions or mainly thoseduties whichrequireparticular The contract envisages the following classification technical knowledge or suitable experience, i.e. levels of personnel: foreign language typist, window dresser, assistant valuer in jewellery, optician, bookshop assistant 2nd Level: with specificskills and responsibilities, experi enced, specialized blue-collar worker; experi- administrative workers ho, under guidance, enced, specialized assistai a in the food sector, perform management-type functions or functions train and articulated lorry driver". thatrequireparticularvocationaltrainingor 26 26 capabilities with discretionary and decision-mak- precision and skills, ensuring that the required ing powers and the autonomy to take initiativesquality and operational level is obtained; within the hounds of the general directives given to them; employees who, following instructions, draw- ingsor equivalent diagrams,setup simple workers who carry out secretarial or support machinery(lathes,millingmachines, grinding tasks within the framework of their activity or on machines) and test benches. They perform com- the basis of general instructions, collecting and plex tasks on parts requiring repair; selecting data and information from a variety of sources and formulating summaries and evaluat- employees who, followinginstructions,dia- ing them in order to correctly and succinctlygrams and/or work cyclesandpossessing identify solutions to problems and to carry outpractical knowledge of the means and methods, liaison activities between the company for whom carry out complex welding work (also on stainless they w- rk and external companies. steel) as part of repair work;

employees who, under supervision, perform Administrative directors simple coordination and control activities of an administrativenature oractivitiesof a more workers who, under guidance, using existing complex nature than those envisaged for the procedures and within the scope of their activity, lower category. process, analyze, check and control administrative procedures. They prepare summaries, esti-5th category mates and finalresults required in drawing-up economic and investment reports and, if neces-The follow: iq occupational profiles belong to this sary, contribute to adapting accounting methodscategory: and procedures. employees who, following precise instructions, carry out work of a normal degree of complexity Accountant (graduate) on assemblies and their parts; they repair and correct minor faults; 3rd category employees who, following precise instructions The following occupational profiles belong to this and using the required equipment and machinery, category: carry out refitting and replacement work for parts and/or assemblies alongside workers from a In addition to possessing all the skills required higher category depending on the complexity of for the lower category, selecting the order of the operation; operationsperformed by equipment and,if necessary, interpreting drawings and functional skilled workers who carry out activities of an diagrams, this occupational category also makes administrative nature requiring special prepara- autonomous decisions over complex operations to tionandpracticalknowledgeofanoffice identify and assess faults and repair them. They environment or corresponding work experience. ensure that the required level of quality and/or operation is obtained using the available equip- 6th category ment and bench tests. They locate and identify the spare parts required and/or coordinate and plan The following occupational profiles belong to this repair work; category:

employees who, under supervision, perform employees carryingoutactivitiesrequiring administrative tasks requiring a certain level of limitedpractical e .perience and occupational autonomy withinthelimitsof theprinciples, knowledge of an elementary nature; regulations and procedures valid for that field of activity and requi-ing a school-leaving certificate employees who carry out simple servicing or equivalent knowledge and experience. activitiesinthe administrative sector following preciseinstructionsandpre-establishedpro- 4th category cedures;

The following occupational profiles belong to this employees who carry out simplE. manual tasks category: not directly linked to the production process and for which no particular occupational knowledge is employees who, following instructions, draw-required. ings and/or diagrams, autonomously identify faults. Using the available equipment they carryHere a high level of skills is required for Level 2 outrepair work requiring a high degree ofworkers, a secondary school level capability and

27 experience for categories 3 and 4 and a lowercontract without any specific professional skills or level for categories 5 and 6. experience. The employer is obliged to provide both theoretical and practical training. Decisions The contract covering metal workers and mechan- with regard to training are taken autonomously by ics contains a paragraph stating that the contract- the employer and training does not have to be of a ing parties will endeavour to encourage and continuing nature. promote vocational training. This is currently left to the goodwill of the employer. Normally training Inreturn for this commitment, the employer is takes place within the company and does not have given certain concessions, such as the liberty to the form of continuing training. choose recruits and reductions in the obligatory health and social security contributions. Allcontracts contain provisions protecting the rights of female workers, protecting the health of Initial training workers in general and v, omen and young people It must be noted that in Italy there islittle initial in particular. vocational training in motor vehicle repair.

Provisions also cover study leave and absenceThrough courses at a vocr'ional training centre, from work on account of sickness,accident, normally over a period 2 to 3 years,itis military service or personal reasons. possible to qualify as a skilled car mechanic, electrician, etc. The contracts also provide for part-time work, nightwork, shiftwork and overtime, the right toThere are three kinds of coursL : holidays, rest periods, practical periods, apprenticeships, disciplinary measures and other factors a. training organized by the state on a national relating to employment. level, b. training organized by the state on a regional Apprenticeships level This type of contract is common in the commercial c.training organized privately and car repair sector. Law No. 25 of 1955 providesthelegalframework. Itpermits an a. Training organized by the state on a national employer, following approval by the work inspec- level torate, to recruit a certain number of young people who do not possess any form of academic The Ministry of Education in Italy has drawn up a qualification, occupational qualification or specif- directory of professional training schemes, with a ic qualification and who are not older than 20duration of 3 years, for technicians in the motor years of age. In certain cases this age limit may be vehicle sector. raised to 26 years for specific collective work contracts. The more popular qualification is the car mechanic,his work involves diagnosing and repairing Inthis form of employment, the employeris faults. He understands the causes of malfunctions obliged to provide vocational training and in in engines, transmissions, brake systems, etc. He is exchange is exempt from paying the obligatory capable of replacing parts, materials and testing health and social security contributions. these. The training course is of 3 years duration: Where public training facilities are not available, the training takes place within the company. The training provided is not continuing training and, Subjects Hours/week with few exceptions, has little theoretical basis. year2nd year 3rd year The duration of apprenticeship varies depending on the sector and the relevant contract. Religion 1 1 1 General education 7 5 3 Training and work contracts Foreign language 3 2 This form of recruitment is widespread today both (technical aspects) Mathematics 4 2 2 in the commercial and car repair sectors. It was Physics 3 2 introduced with the aim of boosting the employ- Technical subjects 26 24 28 ment of young people. Law No. 863 of 19 Physical training 2 2 2 December 1984, subsequently modified by Law No. 407 of 1990, providing for raising the age limit from 29 to 32 years under certain conditions, is the legal framework for this. Upon completion of this course, should the student wishtocontinuehisstudies and go onto The' 'w provides for the recruitment of young university, he must attend a further 2 year course 28 people up to the age of 29 on a fixed-term to obtain a school-leaving certificate. 28 For example, he couldattend a coursefor Training provides skills enabling the student to technicians in the mechanical and motor vehicle identify the causes of malfunctions, and to repair industry. The course lasts 2 years and providesand recondition petrol and diesel engines, to training in production, organization and opera- repair transmissions, brake systems, suspensions, tionsin productionareas,laboratoriesand etc. The trainee is also capable of making static services. The trainee receives training in analyz- tests. ing the production processes and defining manu- facturing cycles in the car industry. The subjects covered are humanities (268 hours), mathematics and science (412 hours), practical The course is divided up as follows: and technical studies (1,020 hours) and theory (700 hours). Subjects 1't year 2'd year The course for motor vehicle electricians is similar

Religion 1 1 in profile but is devoted to the electrical aspects: Italian 4 4 ignition and lighting systems. History 2 2

Economics 1 The subjects and number of hours are identical to Law 1 the course for mechanics but focus on different Foreign language 4 2 aspects. Mathematics 3 5 Physics 4 4 Chemistry 4 c. Training provided privately Electronics 3 3 Technical subjects 8 12 Physical training 2 2 Each company recruiting new employees requires them to attend courses in the field in which they will work. These are in-house courses organized directly by the company. .b.Training provided by the state at regional level It is difficult to obtain national data on the number Theregionsalsobearresponsibilityforthe of courses, participants, effects, etc. in the motor vocational training of young people. They organ- vehicle area as, in the example of Case Study A, ize training courses in their centres or fund centres the regions are to a large degree responsible for to run such courses. These are of 2 years duration the organization of training, as such training has a withatotalof2,400hourstrainingand direct impact on local employment prospects. participants- are unable to proceed tofurther studies. These courses aim to prepare young There is no specific initial training t...)r employees in people for employment. the distribution sector. All types of commercial studies can meet the needs of companies which The courses for motor vehicle mechanics andare responsible for the induction of new employ- electricians fall within this category of training. ees.

2 3 8. TABLES

Table 1 - The share of the motor vehicle industry in total Table 2 - Employment in the motor vehicle industry gross national product and industrial production Country Direct Indirect Total Country Share of GNP Share of industrial employment employment employment production Italy 220,000 1,780,000 2,000,000 Italy 2.40% 7.70% France 630,000 1,330,000 1,900,000 France 5.90% 7.00% W.Germany 724,000 3,575,000 4,300,000 W. Germany 8.50% 20.00% United United Kingdom 2.50% 10.00% Kingdom 255,000 714,000 969,000 iselgium 3.70% 14.50% Belgium 51,600 730,000 781,600 Spain 7.00% 21.30% Spain 97,100 1,987,000 2,084,500 Japan 3.50% 10.00% Japan 765,000 4,486,500 5,251,500 USA 4.30% 7.40% USA 739,00010,732,00011,470,000

Source: "Commercializing the car", Volpato, Ed. CEDAM Source: "Commercializing the car", Volpato, Ed. CEDAM

Table 3

Year Total no. of % Total cars distributors Italian car Foreign car deliveret; Italian cars Foreign cars distributors distributors

1973 2,462 45.40 54.60 1,340,000 74.80 25.20 1980 3,055 43.90 56.10 1,667,000 61.80 38.20 1986 3,260 50.20 49.80 1,691,000 66.10 33.90 1988 3,358 51.30 48.70 2,004,000 66.00 34.00

Table 4

Year Total no. Total no. Total no. Total no. Total no. % % % delivered carsItalian cars foreign cars foreign carsJapanese cars Italian carsForeign cars Japanese excluding excluding cars Japanese Japanese cars cars

1990 2,384,154 1,241,806 1,106,348 1,060,330 46,018 52.9 45.2 1.9 1991 2,340,716 1,094,620 1.246,096 1,183,979 62,117 46.8 50.6 2.6

NB: Data provided by Italian manufacturers and importers

Table 5 - Trends in network sizes

Year Distributors Deliveries Average Distributors Deliveries of Average Distributors Deliveries ofAverage (000s) number of Italian Italian cars number of foreie foreign cars number cars (000s) cars (0003)

1973 2,426 1,340 552 1,102 1,002 910 1,324 338 255 1974 2,640 1,349 511 1,194 911 763 1,446 324 224 1975 2,676 1,013 378 1,220 712 583 1,456 301 207 1976 2,759 1,141 414 1 ,226 737 601 1,533 404 264 1977 2,797 1,171 419 1,237 767 620 1,560 405 260 1978 2,863 1,345 470 1,253 875 698 1,610 470 292 1979 2,918 1,323 453 1,269 853 672 1,649 522 317 1980 3,055 1,667 546 1,341 1,031 769 1,714 635 371 1981 3,145 1,675 533 1,392 1,027 738 1,753 648 370 1982 3,178 1,611 493 1,463 996 681 1,715 615 359 1983 3,267 1,502 460 1.520 994 654 1,747 508 291 1984 3,289 1,530 465 1,585 1,025 647 1,704 505 296 1985 3,257 1,627 499 1,616 1,040 643 1,641 587 358 1986 3,260 1,691 518 1,636 1,118 683 1,624 573 353 1987 3,288 1,815 552 1,690 1,191 711 1,614 624 386 1988 3,358 2,004 596 1,724 1,322 766 1,603 682 425

NB As of 1976 data refers to '(!!ivories" Italian makes included are Fiat, Lancia, Autobianchi, Alfa Romeo, Innocenti Foreign makes in, lode: Renault, Peugeot, Simca, VW-Audi, Ford, Opel -GM, BMW The data on delivered cars refers only to cars of these makes 30 Source Data provided by ANFIA-UNRAE and by manufacturers Source' "Commercializing the car", Volpato, G , CEDAM 30

4111111 Table 6 Trends in sales networks for main Italian makes (no. of distributors) Compiled in 1991 froM "Commercializing the car", Volpato, G., Ed. CEDAM

Lancia Alfa Year Fiat Innocenti Total Autobianchi Romeo

1973 547 170 285 100 1,102 1974 547 243 299 105 1,194 1975 554 246 310 110 1,220 1976 557 245 295 129 1,226 1977 560 244 295 138 1,237 1978 568 247 295 143 1,253 1979 571 251 300 147 1,269 1980 619 260 314 148 1,341 1981 658 262 317 155 1,392 1982 702 268 326 167 1,463 1983 735 307 335 164 1,520 1984 717 335 350 164 1,585 1985 759 355 352 162 1,616 1986 759 360 352 160 1,636 1987 828 365 344 153 1,690 1988 832 383 355 154 1,724 1989 849 395 357 155 1,757 19911 763 405 338 160 1,666

1 Data refers to December 1991

Source: ANFIA-UNRAE and data provided by manufacturers

Table 7 T: ends in sales networks for main foreign manufacturers (no. of distributors) Compiled in 1991 from "Commercializing the car", Volpato, G., Ed. CEDAM

VW Opel Austin Mercedes Year Renault Peugeot Simca Citroen Ford BMW Volvo Seat Audi GM Rover Benz

1973 220 132 289 198 120 124 140 101 n.a. n.a. n.a. 1974 270 136 270 140 240 136 145 109 n.a. n.a. n.a. 1975 270 146 273 145 190 146 168 118 n.a. n.a. n.a. 1976 298 159 275 153 185 175 170 118 103 n.a. n.a 1977 308 150 276 150 170 207 180 119 112 n.a. n.a. 1978 320 153 269 155 178 232 184 119 115 n.a. n.a. 1979 327 165 276 158 170 245 189 119 116 n.a. n.a. 1980 351 179 277 160 179 251 189 127 117 n.a. n.a. 1981 375 179 272 159 182 248 190 145 128 98 n.a. 1982 395 370 158 190 261 193 139 160 98 n.a. 1983 412 323 162 192 264 201 191 175 106 129 1984 411 285 152 195 261 216 184 141 107 125 177 1985 408 244 163 202 252 221 149 180 102 104 170 1986 397 244 164 203 247 222 137 187 106 110 197 1987 385 258 167 207 251 221 121 147 111 112 240 1988 384 258 165 209 251 209 127 140 111 112 240 1989 388 257 162 212 255 217 131 138 110 111 241 19911 387 256 179 226 272 213 130 148 100 136 228

Data refers to December 1991

Source: Data provided by manufacturers

31 31 CompiledYearTable 8 from - Average 'Commercializing size of marketing the cor", networks Volpato, for theG., mainEd. makes (number of cars supplied) Fiat' Lancia Alfa Renault CEDAM Peugeot Citroen YW Ford Opel BMW Austin Volvo Mercedes Seat 1973 1,1851,339 Autobianchi 600398 Romeo 312433 300303 166153 381264 Audi304111 237349 GM268335 107105 Rover n.a. n.a. Benz n.a.n.a. n.a.n. Cl. '1974 197519771976 996936867 310324320 271312 317318247 166140 314440388 248206242 324228166 224328189 184132136129 n.a.n.a. n.a.n.n.a. a. n.a. n.a. 1979197819811980 1,1771,0251,086 350435451347 355377380350 353471514426 184178182 492531500488 632504428288 290320373313 318326279299 233271183 201n.a.129 n.a.154 n.a.n.a. n.a. 198419831982 1,0881,022 959970 420430444 342311327 356,s9C,46.5 134184178 381357471 601492468 281274325 273316244 148146187141 144156198 162150173198 n.a.193120103 218n.a.176 1987198519881986 11,032 0041,106 944 550545487465 400316319321 403391392427 379324270232 413355376428 794701720878 318313281275 342259262263 186149145 169161137135 134147158 275237195 300256147 32 Soorcr. ANFIA-UNRAEData and revised data provided to include by Fiatmanufacturers subsidiaries (32 in 1989) AO.

Table 9 - Average size of marketing networks for main makes Compiled from "Commercializing the car", Vo 'pato, G., Ed CEDAM

La ncia Alfa VW Opel Year Fiat Renault Peugeot Citroen Ford Autobianchi q7,meo Audi GM

1973 995 420 303 212 107 185 212 244 234 1974 996 315 247 237 131 302 88 187 212 1975 872 304 296 235 133 298 196 157 179 1976 829 272 262 267 139 326 208 191 276 1977 862 253 221 259 135 360 198 265 183 1978 828 252 252 255 128 352 208 231 216 1979 751 240 263 295 126 346 296 201 191 1980 719 262 219 298 103 308 293 181 189 1981 681 250 204 270 105 282 363 214 182 1982 633 262 193 275 108 278 355 192 187 1983 652 271 196 246 84 225 295 173 172 1984 620 256 209 217 108 232 300 171 149 1985 572 266 183 244 132 215 412 157 150 1986 585 266 174 214 147 194 384 153 143 1987 556 275 159 197 163 208 401 158 131 1988 526 251 183 184 174 196 402 145 156

Source: ANFIA -UNRAE and data provided by manufacturers

Table 10 - Car Sales in November Deliveries and deliveries over previous year

November January-November Make 1992 % Share % Variation 1992 % Share % Variation

Alfa Romeo 8,058 5.04 - 3.30 101,618 4.57 - 4.90 Fiat 49,673 31.38 -13.60 707,620 31.79 - 0.60 Lancia 11,761 7.36 -30.60 161,070 7.24 -13.80 Others 1,028 0.64 -20.10 14,056 0.63 -18.50

Total national 70,520 44.12 -16.10 984.364 44.23 - 3.80

Audi 3,076 1.92 3.40 44,554 2.00 24.40 BMW 3,012 1.88 2 50 36,243 1.63 18.00 Citroen 4,194 2.62 -28.00 60,348 2.71 -10.00 Ford 14,506 9.08 -28.80 242,049 10.87 - 0.90 Mercedes 2,849 1.78 -19.50 37,279 1.67 -9.40 Nisan 3,056 1.91 112.70 23,699 1.06 42.30 Opel 9,770 6.11 15.90 124,496 5.59 41.50 Peugeot 6,346 3.97 -29.50 102,772 4.62 - 2.20 Renault 11,164 6.99 0.20 170,113 7.64 - 4.90 Rover 2,424 1.52 38.10 26,816 1.20 - 6.90 Seat 3,010 1.88 -37.90 50,524 2.27 -10.00 Suzuki 625 0.39 -37.10 9,893 0.44 -11.0 Volkswagen 18,338 11.47 5.50 226,285 10.17 24.00 Volvo 1,553 0.97 3.40 20,665 0.93 4.90

Other foreign makes 5,379 3.35 9.80 65,661 2.95 33.10

Total imports 89,302 55.88 - 8.00 1,241,397 55.77 7.20

Total 159,822 100 00 -1 170 2,225,761 100.00 2.00

Source: "Quattroruote" Domus, monthly magazine

3 1 TableRegions 11 Notional Car repair shops service and repair Body repair shops network Car electricians Tyre specialists andService car stationswashes Garages Car supplies bonersEngine recondi- Tyre retreaders workTotal service net- VallePiemonte 0 AOStO 3,500 14 00 2,250 11 40 840 9 30 680 14.30 9.70 1,650 15.3010 20 890510 17.1010.40 1,300 14.30 8.40 7098 12.60 9.00 2025 6.905.60 17,64310,850 17.9011.00 1,,,,ibardi,,VenetaTruer", A A 6.1002.040 250 24.40 8.201 00 2,0003.530 360 17.9010 20 1 80 1,330 740100 14.70 8 201 10 1,000 530100140 7.601.40 2,4701,600 380 9.902.40 180 40 3.400.801.70 2,200 310900220 2.006.401.40 7015 8 9.001.901.00 2810 2 7.800.502.80 2,3058,1681,460 2.308.301.50 EmiliatigunaFriuliToscana V R G 2,2202,250 950680 832 908070 1,9501,600 700500 8.109.9032 6050 990280550170 11.00 6.103.101 90 480730220 10 40 6.903.102.00 1,2201,580 620400 7.6093.802.50 80 290270280 90 5.605.205.40 1,2001,100 550 7.807.203.60 605221 6.707.702.70 202030 5.608.305 60 7,6728,9203,631 7.809.003.70 toil°MarchelJrnb..0 2 100 480200 0900 808 401 90 1,820 700320 3.609.20160 950330150 10 50 3 701 70 650220120 9.303 101 70 1,300 540320 0.103.402.003 00 1,280 503010 24 60 0.800.601.00 1,700 450230430 11 00 2.902.801.50 22202585 10.90 3.202.802.60 35202015 9.705,604.205.60 2,3259,9202,3121,410 10.10 2.402.901.40 COmpanoAbruzzo Make I1.030 310100 4 10120 530820 42 2070 630270600 73 006.70 380460220 63.10 605 40 850400780 4.805 30 320580 11 10 6.10 1,400 950 9.106.20 60 7.70 25 5 6.901.40 5,0455,845 5.905.10 SwCalabriaBasilicataPuglia 11,0 250 60 04 40301 00 310830110 0 601 60 160 60 0.701.80 260 60 3.700.90 360110 0.702 20 4010 0.800.20 490160 3.201.00 5536 4 0 504.60 402520 11.10 6.905.50 5,9051.931 579 6.002.000.60 t,aidesiriri 25 000 1.130 350 100 00 4 501.40 19,700 420950 100 00 24 1080 9,000 700150 100 00 7 801 70 7,000 300450 100 00 4.306 50 16,100 1,040 400 100 00 2.506 50 5 200 240 30 100.00 4.600.60 15,100 1,300 430 100.00 2.808 40 780 19 100.00 2.407.00 360 100.00 98,540 2,119 100.00 2.10 1.1111 a Prl IV -10!e( Survey 36 Table 12 - Structure of tht heet of cars on the road (1984) Table 15 Percentage of total number of vehicles on the road Total no. of car, Average no. of Total no. of cycle and motorcycle employees per Italy employees repair shops shop

Motor vehicles 92.10 Industrial vehicles 7.90 107,000 264,000 2 4672 100.00 Total vehicles Source: 1981 ISTAT Survey Total no. of vehicles 22,680,636

Table 16 Source: ANFIA

Toscana Quaderno No. 3 - September 1987, Regione Sector Average no. Toscana, research on the car repair sector in Tuscany. of employees per shop

Table 13 - Vehicle density (1984) Total no. of Cycle and employees in motorcycle repair 1.3 No. of registered vehicles per 1000 population the car, cycle and 2 799 motorcycle Car body repair Tuscany 446 repair shops Italy 366 264,000 Car repair 2.502 North-west Italy 420 North-east Italy 415 Tyres 2.447 Central Italy 424 Southern Italy and islands 270 Source: 1981 ISTAT Survey

Source: ANFIA-ISTAT

Toscana Quaderno No. 3 - September 1987, Regione Toscana, research on the car repair sector in Tuscany

Table 17 - Size of local car repair shops

local shops with Total no. of local shops 1-2 employees 3-5 employees 6-9 employees 10-19 employees More than 19 employees

No. % No. % No. % No. % No.

97,000 39.6 38,412 31.130,167 13.1 12,707 9.6 9,312 6.6 6,402

Source 1981 ISTAT Survey Table 14 - Population and motor vehicle density by region (Estimates 1990) Regions Total motor vehicles on the road Motor cars Light trucks Heavy goods vehicles Buses and coaches Trailers and semi-trailers - (,housands)Population % 9.10 7.70 11.80 TrentmolornbardVallePlem.mte D'Aosta laA A 8,9004,400 900'20 15.40 0.207.601.60 4,510,0002,400,000 400,00076,000 17.90 0.309 501.60 275,000158,000 25,000 6,000 10.9019.00 0.401.70 108,00059,00012,0002,000 16.60 0.301.90 10,7006,5001,800 400 12.60 2.100.508.00 53,00091,000 8,6001,400 20.2010.20 0.301.90 FriuliVenetoEmiliaLiguria V G Romania 4,4003,9201,2201 750 6.8027 10603.00 2,010,0002,170,000 600,000830,000 8.603.302.408.00 119,000148,00039,00032,000 10.20 2.702.208 20 70,00063,00017,00014,000 10.80 6.602.602.209.70 2,0006,8005,7003,400 7.406.704.002.40 46,00036,00052,00018,00015,000 11.60 4.003.308.00 LazioMarcheUmbriaToscana 5,1503,6001,450 820 826 5090201.40 2,500,0001,920,000 730,000430,000 10.00 7.602.901.70 112,000115,000 45,00023,000 7.907.703.101.60 43,00047,00021,00012,000 7.203.201.90 11,5002,2006,3001,600 13.50 2.601.90 34,00012,00011,000 7.602.702.401.40 MoliseAbru7zoPugliaCampania 4,0805,7801,280 350 10.00 0.602.207.10 1,210,0001,620,000 504,000102,000 4.806.400.402.00 68,00033,00081,000 9,000 4.705.600.602.30 39,00034,00016,000 4,000 6.000.602.505.20 2,5004,6006,700 700 5.407.900.802 90 18,00015,0006,3001,400 4.000.303.30 SardegnaSirCalabriaBasilicata ilia 2,1805,1901,680 630 2.9093 80001.10 1,815,000 561,000608,000204,000 0.802.207.202 40 30,00084,00035,00013,000 0.902.105.802 40 1717,00019,000 0006,000 0.902.607.202.90 5,3002,5002,5001,300 6.202.903.001.50 16,0004,3002,0009,000 0.402.003.601 00 Ouuttr.guolu , Durnus. monthly magazine 57,800 100.00 25,200,000 100.00 1,450,000 100.00 650,000 100.00 85,000 100.00 450,000 100.00 Table 18 - Structure of employment - Percentage employees

Type of Owner Partner Employee Worker Apprentice Total employee

Repair shops

1-2 75.00 2.50 22.50 100.00 3-5 50.00 2.20 3.30 33.40 11.10 100.00 6 or mare 41.80 7.50 43.30 7.40 100.00 Total 52,30 1.00 4.60 34.50 7 60 100.00

Specialists

1-2 69.20 3.90 15.40 11 50 100.00 3 -5 43.10 3.50 1.70 31.00 20 70 100.00 Total 51.20 2.40 2.40 26.20 17.80 100.00

Car body repairers

3-5 48.80 4 70 2.30 37.20 7.00 100.00 6 or more 29.20 5.30 58.40 7.10 100.00 Total 34.60 1.30 4.50 52.60 7.00 100.00

Total 45.80 1.40 4.10 39.30 9.40 100.00

Source: Toscana Quaderno No. 3 - September 1987, Regione Toscana, research on the car repair sector in Tuscany

Table 19 - Owners' educational level Table 21 Employees' occupational background Percentage Percentage

Car Car Educational Repair Repair Specialist body Total Former activity Specialist body Total shop shop Qualification repair repair

Elementary school School 55.7 86.4 39.4 52.8 certificate 48.2 44.5 65.5 51.9 Employee in another Secondary school car repair shop 35.7 13.6 49.3 38.6 certificate 35.5 48.9 27.3 36.2 Employee in an Vocational training industry 2.9 1.2 certificate 10 2.2 1.8 6.2 Other 8.6 8.5 7.4 Technical coilege certificate 3.6 4.4 1.8 2.4 Total 100 100 100 100 Other school certificates 2.7 3.6 3.3 Source: Toscana Quaderno No. 3 - September 1987, Regione Toscana, researchinthe car repair sector in Total 100 100 100 100 Tuscany

Table 22 - Employees' educational level SourceToscana Quaderno No 3 September 1987, Percentage Regione Toscana, researchinthe car repair sector in Tuscany Car Educational Repair Specialist body Total Qualificotion shop Table 20 - Q,.ners' occupational background repair Percentage Elementary school Car certificate 10 4.8 22.3 15.1 Repair Formr activity Specialist body Total Secondary school shop repair certificate 82 9 90 5 71 678 5 Vocational training School 127 133 22 10.4 certificate 71 3 7 4.6 Employee in another Technical college car repair shop 80 9 68 9 89 1 80 1 certificate 12 0.6 Employee in industry 349 45 22 15 Other school

Other 64 133 6.5 8.0 certificate 4.7 12 1 2

Total 100 100 100 100 Tot.il 100 100 100 100

SourceToscana Quoderno No 3 - September 1987, Source Toscana Quaderno No 3 September 1987, Regione Toscana, researchinthe car repair sectorin Regione Toscana, researchinthe carrepair sector in 37 Tuscany Tuscany

40 PART 2:

1.SA.Mi Car Repairs s.n.c. of Sacco & Migliasso

2.Di Viesto SRL (Volkswagen car distributor)

3.Danilo Repair Shop (Citroen car distributor)

4.G. & G. Paglini SpA (Renault car distributor)

5.Bettonica & Gargan SRL (Fiat car distributor)

41 1. SA. MI CAR REPAIRS S.N.C. OF SACCO & MIGLIASSO

Size of company: III Work is carried out on parts subjected to technical wear orthoseneedingperiodicadjustment: Make: None carburation and fuel injection systems, gearbox, petrol and diesel engines, brake systems and Category of motor vehicle: A - B suspension. The company also undertakes work on car electrics, although not directly. Type of firm: B The ccmpany was founded at the beginning of the .General description of the case study 1960s in premises adjacent to the present ones, to The case study was carried out in an independentwhichthey transferredtwo yearsago. The repair shop, not linked in any way to a car premises cover 180 sq. m. and is taken up entirely manufacturer. by the repair shop.

The study is based on an interview with Mr. Sacco Recently, to counter difficulties raised by the crisis Luciano, who is joint owner of the company along in the sector, increased competition and rapid with his fathers and uncles. technological innovation in the car industry, the company adopted the following policies: The interview was held during working hours and lasted some two hours. conservative customer policies; strategiesto keep pace withtechnological It was not possible to interview employees as some innovation (Mr. Luciano Sacco has attended 3 were absent from the repair shop and others were courses organized by the sector association); involvedintheirwork. The only vocational acquiring new equipment, including a fume training available to the company is that organ- analyzer useful for setting fuel injection sys- ized by the sector's association. tems, in addition to new equipment for fitting catalytic convertors and for monitoring engine 2. General description of the company comb.istion. It is a typical family-run company located close to the centre of Turin in via Crissolo 10/A, a locationThe company has encountered particular difficul- which can be accessed easily from the suburbs. ties in skills upgrading with regard to fuel injection systems. The problem was solved by attending a The company is a member of an independent special course on fuel injection systems organized repairshop group and has no agency or by the sector association. authorization from any car manufacturer. Thelevelof business and turnoverisgood The repair shop carries out general car repairs. although, with regard to training, not all partners have the samo degree of awareness. This hampers The interviewee was interested in the technical the development of a corporatestrategy on innovations taking place in the car industry attraining activities. present, particularly with regard to fuel supply systems (fuel injection/carburation) as this is one The company is run jointly by the 4 owners and of the company's special areas of activity. one of them (the interviewee) is in charge of the administrative management. He feelsthatskills upgrading and continuing training is a useful tool for combatting difficultiesThe 4 owners are assisted by 2 employees. in car repair resulting from the introduction of new technologies and as a means of competing with The following diagram shows the organization of authorized car repair mechanics. the company:

Thisis a typicalfamily-run company with 6 Owners/Portners 2 Employees mechanics, 4 of whom are co-owners and 2 _ employees all belonging to the same family. The company, therefore, belongs to the Group 1 typeWith the exception of administration, none of the of companies (less than 5 employees). One of thepartners have specific tasks or responsibilities. owners looks after the administrative side of the Technicalsupport and customerrelations is business in addition to his technical work. divided up equally among all partners.

The company provides repair and maintenance The 2employees are manual workerswith for any type and model of car. indefinite contracts. They are 25 and 29 years of age, male Italians and, like the partners, all Nearly all repairs are of a mechanical nature The belong to the same family. fault is detected, corrected and parts replaced. 39 4'' Working hours, holidays, allowances and salary The ECIPA courses which the interviewee attended structure are regulated by the national collectivewere: contract for the car repair sector. 2 courses on fuel injections systems; The employees are not eligible for any type of 1 course on retrofit devices. benefit and there is no need for overtime. The first two courses comprised 15 three-hour Both have completed school and have a school- sessions, half of which were devoted to theory and leaving certificate. the other half topractical aspects. The third course, on retrofit devices, was a short seminar The employees were recruited from within the comprising 5 sessions. family structure. 4. Training policies adopted by the Although the interviewee does not plan furthercompany recruitment in the foreseeable future he would beAs the company is fairly specialized in car repair, in favour of recruiting workers who have a good trainingis considered useful particularly when level of technical studies or, at least, a qualifica- concerned with technologically sophisticated sys- tion relevant to the sector in view of the technical tems such as fuel injection systems, ABS braking innovation and the various makes cnd types of systems and catalytic convertors. vehicle on the market which make widespread use of electronics. The interviewee expressed particular interest in continuing vocational trainingin the technical This has led to, and will continue to lead to, a new area. need for a solid technical background which can be built upon through continuing training. Todatethetrainingofferedby thesector association has met the company's needs.

3. The provision of continuing The intervieweeis aware that expansion and vocational training (CVT) development of the company depends on greater professional skills and in further specialization in Diagram of bodies providing training: the repair shop thus requiring a wider knowledge of equipment and technologies as well as the ability to manage the company effectively. Company On account of this,the company iscurrently considering a continuing training strategy, making CNA training organization - Piemonte use of the training offered by the sector association and opportunities for trainingin specialist areas.

The only provider of continuing vocational training It was with this in mind that, in the course of this with which the firm has had contact is the training year, some of the other company partners will organization of CNA (ECIPA) which is described attend training courses. below. Attendance at CVT courses is voluntary and takes ECIPA is a national vocational training organiza- place outside normal working hours on account of tionset up by the CNA (the national tradesthe company's limited size and the problems of confederation), which operates throughout Italycoping withthe absence of workers during at regional and provinciallevel.Alltraining working hours. branches are well organized withtheir own offices, equipment and trainers. The Turin office Up until1989 no one inthe company had is located in via Bardonecchia. attended a training course.

ECIPA provides training courses jointly with the Since 1990 the interviewee has attended courses sector associations in the following subjects: offered by the sector association.

technology; In1993 the other partnersinthe company adminstration and management; showed willingness and attended training courses sales and marketing. organized by the sector association.

Courses last, on average, 50 hours and comprise The questionnaires completed by the employees 50% theory and 50% practical activities which have not been attached as the only individuals in are carried out in conjunction with the companies the company to have attended courses are co- 40 in the sector (repair shops). owners. 43 Employees will start to attend training courses as SA. MI. accurately reflects the situation of small from 1993. repair shops.

Trainingisat the company's own expense as These are not linked to any dealer nor approved independent repair shops are not eligible to attend by the manufacturers. courses organized by the manufacturers. For the first two courses on fuelinjection systems the For this reason they are excluded from information company paid 400,000 lire each and for the and continuing training planned and organized course on retrofit systems 100,000 lire. by manufacturers. The only trainingattheir disposal is that dered by the sector associations Overall training costs amount to less than 1 million (which is of great value as it is the only training lire over the last 23 years. source available), the private courses which are offered, at high costs, and the training provided The interviewee considered the costs warranted in by the manufacturers of equipment and compo- view of the quality of the training course and of its nents. usefulness to the repair shop. This study highlights the impact of continuing 5. Assessment of the training concept training and legislationinthis respect for the The company may be classified in that group of sector. companies desperatelyrequiringanefficient continuingtrainingsystem,providing courses As such repair shops are often very small in size, which they can attend in spite of the small sizeand thus the weakest in the market, they are of the company and the rigidity imposed by the doubly penalized. need for workers to be present. The case study under review is representative of The company is gradually becoming more awarethe realities in the sector which requires urgent of this and has attempted to cater for training measures in favour of continuing training, which is needs as far as possible. expanded upon in the final part of this report.

6. Conclusions regarding continuing The case study in question is representative of the vocational training level of awareness of many owners of indepen- This case study has been included in spite of its dent repair shops with regard to training. Aware- brevity as it represents a very general situation in ness arose at too late a stage (in this case prior to the group of small, independent repair shops of1989 no one had taken part in training), this which the sector is primarily composed. hampered the spread of the awareness of training needs. Similarly, awareness of the need to remain The case study was selected from among some 20 competitive and to consider developing company repair shops with a maximum of 3-4 employees, strategieshas provoked an urgent needfor interviewedfirstlyby telephoneinorderto sporadicandcontinuingvocationaltraining ascertaintheirconditions bothinTurin and activities. Puglia. A case study in the Barletta area was not included as it was considered unrepresentative of This change in thinking over 2-3 years in the the sector. company under study would seem indicative of trends throughout the sector. The interviewer could have chosen for case study a company making greater use of continuing In SA.Mi.'s case the company intends to intensify training, but such a selection would have been continuing vocational training activities this year. incorrect as it would have been unrepresentativeOther members of staff will attend courses and of the vast majority of small, independent repairattention will be given to courses offered on the shops in the country. market and not by the sector association provided they meet the repair shop's needs.

L . 41 2. DI VIESTO SRL (VOLKSWAGEN CAR DISTRIBUTOR)

Size of company: IV of maintenance or repair work on any make of vehicle. Make: VW Audi Repairs may be of an electrical, electronic or Category of motor vehicle: A - B mechanical nature and can be carried out on any vehicle part or component. Type of company: B Recent company history and development strategies 1. General description of the case studyThe company started as a limited partnership The following case study is based on interviews in founded by the Di Viesto brothers in 1975 as a and descriptions of: mechanical repair shop in Turin.

The Di Viesto dealership srl (Turin) In 1985 the company moved to larger premises where, in addition to offering car repair services, Mr. Francesco Di Viesto, who runs the companythey began to sell new and second-hand cars. In jointly with his brother, was interviewed. 1980 the legal form of the company changed from a limited partnership to a trading partnership In an interview lasting some 31/2 hours during and the company became agents for Volkswagen normal opening time, Mr. Di Viesto detailed theand Audi (they were already an authorized repair company's past and its future projects, its currentshop for Volkswagen). They moved to their new structure and training strategy. company-owned premises in 1990.

Autogerma: Italian branch of Volkswagen-AudiThe move was prompted by a market research (Verona) survey which singled out the northern area of Turin as one not covered by a Volkswagen dealer or a Inan interview conducted at the Autogerma service network. The survey also revealed that the offices, lasting some 3 hours on 23 November, percentage share of Volkswagen car sales in this 1992, the training manager described the aims, area was low. methods and structure of training carried out by the company for the dealer network and author- On the basis of current achievement, the company ized repair shops. plans to further expand in order to:

create a new structure for Audi vehicles in order 2. General description of the company to differentiate clearly between the two manu- Di Viesto srl is a typical family business, located in facturers and avoid confusion for the custom- the Via Reiss Romoli 150 on the outskirts of Turin, an area which can be accessed easily from the fur 1- develop assistance service and customer city centre and from outside the city (ring roads, service, emphasising the quality of the product main city road networks). and the services it offers.

The company is an agent for Volkswagen and Company structure Audi and runs a repair shop and spare parts The company is run by managing directors. Mr. department. Francesco Di Viesto is in charge of the commercial sector while his brother manages the car repair It is a limited company with 45 employees. sector and the spares department.

The company sells both new (Volkswagen and The organizational chart, showing the distribution Audi cars and Volkswagen light vehicles) andof work and tasks, is annexed to the case second-hand vehicles (of any make). The company employs 45 people, subdivided as For a number of years the number of vehicles the follows: company has sold has been rising; in 1988 it sold 1,021 compared with 2,131 by 31. 10.92, a Commercial sector: 1 manager, 8 sales staff, 6 sales increase of more than 100% over the 4 year car preparers, 4 administrative clerks. period. Car repair sector: 11 skilled workers (car Increasing sales corresponds to increased t:Jrn repairmechanics)and5additionalstaff over. In recent years Di Viesto has seen increases (repair shop manager, customer receptionist, in turnover from both service, repair and main- administrative staff). tenance work as well as from sales of spare parts. Spares department: 6 employees. The mechanics' repair shop is well organized and 42 has modern equipment which guarantees any sort Administration: 5 employees.

45 A supervisorisin charge of each sector ofGeneral description of the training operations and has supervisory and productivity service control functions. The repair shop manager plays Training is provided for those involved in commer- an important role; he runs the department and cial tasks and for technical service work (including organizes work. The receptionist receives custom-spare parts, rotation of components and acces- ers, identifies their needs and ensures that they are sories/supplies and assembly). Other employees attended to. in the company and in the network are also provided with training (owners and managerial Human resources and administrative staff, computer staff). The company is composed of 8 females (17.4%) and 38 males (82.6%) all of Italian nationality Courses are arranged on technical theory for staff and with an average age of 36 (calculated on the in manual tasks and on organizational subjects for basis of the 16 sheets which were submitted). administrative staff.

All have intermediate school-leaving certificates; Training for commercial sector 6 out of15 have secondary school-leaving certificates (40%). The courses in commerce and organization are held either at the company or at the dealers, All staff are under permanent contract and theproviding suitably equipped facilities are avail- labour relations are governed by the provisions of able for the use of training equipment which the national labour contract for the commercial comprises: luminous blackboards, graphic equip- sector. ment, cards, texts and folders, televisions and. video recorders. Technical employees do not have any specific educationalqualificationsbut they do haveAutogerma SpA organizes courses for dealers training qualifications acquired through practical which aim to provide training in economic and experience and backed-up by participationin administrative management. These coursesin- training courses provided by the company. clude:

3. The provision of continuing A business management course comprising vocational training (CVT) management control and corporate budget. It To satisfy its training needs the dealer makes use of is provided for newly established dealers and, the sources described below: upon request, for existing dealers.

a. Autogerma SpA with headquarters in Verona, Currently three employees are involved inthis an importer of Volkswagen-Audi vehicles into project. Italy,provides trainingfor salesstaff and technical training in the car repair sector, with A training course in data processing to train structured courses for various skill levels. operators in the use of computer programmes b. Goldman. Cegos, of Milan, which provides and applicationsoftware, management of behaviourial training courses for all employees orders, accounting, data compilation for statis- in direct contact with the public (sales staff, tical use. The software is designed directly by sector managers, receptionists) and manager Autogerma. training courses. c. 1psoa which is responsible for training in the Marketing courses for sales managers, sales administrative sector. staff,sub-dealersinsubjectssuch asthe methodology of sales staff /customer relations, a. Autogerma Volkswagen the product and its testing, telephone sales and, withinthe company,market analysis and General information advertising techniques. Autogerma SpA,withheadquartersinVia le Gumport 1, Verona, is the official Italian importer Technical training of Volkswagen-Audi vehicles. The courses for technical staff are divided into two The company is responsible for organizing the distinct categories: distribution network for Volkswagen-Audi and for ensuring high quality service and repair of these courses for staff directly involved in sales and vehicles. repair activities; courses for staff indirectly involved To do so, Autogerma believes that it is essential to provide the companies in its network (dealers andThe first category includes employees who work authorized repair shops) with a competent training directly on the car, such as mechanics, electricians, bodywork repair, wheel and tyre special- service. 43 46 ists, paint sprayers. The second category includes Through thetrainingservice Autogerma SpA employees whose tasks involve customer recep- develops courses to introduce the new product or tion, work organization and management (repair innovationthroughoutthecountryfromthe shop managers) and staff who carry out othercommercial point of view and to ensure the administrative duties. technical skills of staff involved in servicing and maintenance. At present the technical and practical courses are held at Autogerma's technical school or in theAutogerma organizes standard, modular courses dealers' repair shops. For this type of courseat various levels which provide elementary and diagnostic equipment, test benches, mechanical basic knowledge and skills in addition to more parts and mechanical, electrical and electronicspecialized courses for advanced skills. components must be available. The training organization draws up the curricula On account of this, Autogerma has cars, used only and decides on the courses necessary for each for training purposes, which are able to fulfil allemployee in order to guarantee the best technical requirements relating to analysis, fault finding and and commercial preparation. simulation, detection and study of new materials and of innovative technical solutions. Technical and vocational trainingis managed directly by the instructor with the result that a For the body and paintwork sector, the courses progression is guaranteed. are organized in the factories of the Italian branch of BASF (Volkswagen's German paint supplier) b. Goldman-Cegos and thetrainersarealso provided bythis company. This company, known today as Mercury Italia SpA, is a member of a group of companies For bodywork repair courses useis made ofcomprising Cegos Fossa, Cegos Informatica, Autogerma facilities and staff. Cegos Consulenza, all of which have their head officeinParis, and Cegos Italia which isthe To ensure consistency all equipment and tools used parent company inItaly. The Cegos Group is in the repair shops must be of the make and type structuredinsuch as way astoguarantee stipulated by Volkswagen. Course participants are continuing training to companies intechnical, taught correct use of instruments and special tools commercial, administrative and marketing areas. (foruse onthemanufacturer's vehicles and supplied by the manufacturer through Autogerma It organizes courses at its own offices and, upon SpA) as well as testing equipment. request, external courses in companies. Inthe latter case, the course is adapted to the customer's The following courses are provided in technical requirements. subjects: c. Ipsoa "company school" Basic courses (electrics, mechanics, electronics, new products, etc.) lasting on average 5 days Ipsoa "company school" is a trademark of Infor for apprentices, new employees and those Srl, a training company, founded in Milan in lacking specific qualifications and skills 1973, with offices in Largo Augusto.

Specialistcoursesforskilledstafflasting Subsequently, Infor Srl started to provide training between 3 and 5 days. inlegal aspectsinthe following areas: law, administration and taxation, and soon expanded In the Training Assistance Office the technical on a national scale. The head office was later section comprises 8 staff:little use is made of moved to Milanofiori, where it is currently based. outside consultants and professionals. Another office, serving central and southern Italy, Training services activities: is located in Rome in the Piazza Venezia 5.

Courses are arranged directly by Autogerma SpA Ipsoa organizes a range of approximately 400 on the instructions of the manufacturer,they take courses annually for companies and for the public into account local conditions and proposals and sector itthe following fields: administration and requests from the nationwide network. Courses finance, ..lurliting, taxation, law, human resource are also arranged on the basis of statistical management, marketing, sales, information sys- surveys. tems, production, management, company management and company communication. To cover new products and technical innovation the head office provides the necessary materialThese courses, which vary in duration, may be and information. divided into three types:

47 basic general, and to establishing a trusting relationship with the single subject, customer. specialist. Attendance at courses and training progression is They also provide a master craftsman course once recorded on data collection cards. Analysis of a year which is of a very high level in addition tothese cards show that the company interviewed providing courses in public administration. has developed training significantly over the last few years. 1psoa also offers several specially adapted courses upon request for the public and private sector. Mr. Di Viesto is directly involved in managing training activities. Seminars, conventions and study days are also offered. Technical training is also provided by Autogerma SpA of Verona and proposals are made for TheIpsoatrainersare generallyspecialized integrating courses which are considered to be consultants, freelance trainers and businessmen. of use.

In1991, Ipso° provided training courses for Additional 'courses are selected by Mr. Di Viesto 10,000 people, 50% of which were in Milan oron the basis of the targets the company has set Rome. itself and current requirements. If new products are launchedthecompany is informedthrough documentation, video cassettes and information 4. Training policies adopted by the cards and short courses given by Autogerma. company The company pays particular attention to training The swift pace of technological change, the issues. In addition to a demand for continuing increase in technical solutions and new products technical training in innovative areas in the sector has given rise to the need for new structures better (new technologies, new products, robotics, the use equipped to supply specialized up-to-date infor- of diagnostic and repair equipment) there is amation on technologies, fault finding and elimina- need for targeted training in customer relations, tion. marketing and market research. Through the social partners, trade unions and Identifying the employees to be sent on courses is sectorassociationsareinvolvedintraining the task of the company. Attendance is voluntary although, at present, they play only a minor but it is clearly encouraged in that the acquisition part. Their training provision is more important of improved skills is clearly a key to promotion andtoindependent repair shops than theothers to career progression within the company. (dealers or authorized repair shops), as the latter can rely on training from the manufacturer. Staff at Di Viesto hove attended courses organized by the manufacturer. Collective bargaining contracts are not negotiated in such a way as to make training compulsory. Technical staff have attended courses on electrics and electronics, mechanics and product technologi- Detailed data on training costs over recent years cal innovation. were not available.

Sales staff have attended courses to improve With regard to costs, the courses provided by the customer relations, marketing courses focusing manufacturer are free of charge with Di Viesto on product demonstration and courses on identify- only beingliablefortravel and subsistence ing customer needs and the correct use of theallowances for employees attending the courses. telephone in sales. As already mentioned, the company intends to Employees have also attended computer courses extend and improve its training budget to make and courses on resources management. use of training courses offered by the manufacturer and other continuing training agencies. In 1993 the company will follow the Autogerma courses and will allocate a budget of 50 million 5. Assessment of the training concept lire for external training; these courses also cover The questionnaires were completed accurately but customer relations (sales sector). submitted by only 40% of the workforce.

The purpose of training is to guarantee upgrading The cards completed by the employees confirm of technical, administrative and company man-that Di Viesto finds continuing training important. agement. The company also focuses on training as a key to offering the best possible service to the Analysis of the cards completed show that since 45 customer, to ensuring a professional approach 1987 Di Viesto employees have, on average, 48 attended 3.5 courses each for an average of 206. Conclusions regarding continuing hours. vocational training The case study is a typical example of a company One employee had attended 7 courses, 2 had sensitive to the problems and the importance of attended 5courses and theremainder had training human resources. attended a number varying between 2 and 4. Training is held to be a key company resource and The courses covered technical,administrative, staff are encouraged to attend frequently the accounting, and managerial subjects in addition training courses organized. tosalestechniques,marketing,warehousing, company organization, new models, customerThe fact that the company makes use of the relations and behaviourial techniques. training provided by the manufacturer but also of the services of specialized and prestigious training The training offered was of a high quality and it isagencies testifies to the importance it attaches to possible to predict that, in the near future, training training. The company is endeavouring to draw will be further reinforced to optimize company up a training budget which would be continually management and ensure that innovation is part oftopped up. the basic knowledge both from the technical point of view as well as fromtheperspective of The company is equally concerned that employees company management, sales and customer rela-understand the importance of attending training tions. courses and that training is seen as adding value to the company and to their careers. Infuture the company intends to pay greater attentionto the level of general education ofThe company under review, despite the lack of recruits as new technologies require a broaderstructured continuing training in Italy, has demon- basic knowledge, in particular of electronics and strateditsawareness and has identiPed and computer sciences. studied the training offer on the market. It attempts to involve employees in all sectors of the company in its training activities.

It can be concluded that the training activities in which the company participates are indicative of good company practice, bearingin mind the constraints already mentioned.

46 49 Organizational chart Proprietors

Directors I 1 1 .Decretoriat r 1: _____i_ Head of 1 After-sales 1 servicing 1 , Head oaes - sec.riat I1 adwinistraii,nHead Sect etariat T : ---J I serviceForeign sales r- . 1 1 _T Htread of r--1 1 Esexrtevricneasl ' Head of admin./ 1 1 External i! ; 1I technical section technical sales trade in ; I- I I I I jr L Sales Head of second- H ; I ri i Service clerk Repair shop Receptionist Head of I I Repair shop Despatcnersi Head of Administration 1 I VW hand sales I _ - -, L.- foreman bodywork Fatt. ne Cassa spare parts ; -- , i I Central TS-pareI parts SolesAudi Secondhandsoles staff : bution/statisticsHead of dish'. -1 i; Iil Warranty _ [ i Mechanics 1 Paintshop .1 data depot staff i L ,. 1 -1. .1, _ i ! -, Sales Secondhand ! Head 'i' , New vehicle 1 Electi ical I I TBodywork [Spare parts nther s purchase PU/PV/P0 .1 ,iI-I preparation [ diagnosis apprentices apprentices ! , . 1. ; , ! i --, I NA. 1, x3ot , Apprentice 1 newPreparation vehicles of . i mechanics General 5 0 BEST COPY AVAILABLE 5 1 coss Data collection for employees continuing vocational training, Di Viesto 1 SurnameGeneral Data and first name Branco Spina Froncesco Age: 34 EducationalYear of recruitment qualification Secondary1980 school-leaving certificate 2 CoursePosolon attendance (1987.1992) Mechanic courseTraining Coursecontents Commence-ment date Overallduration TheoreticalMethods Practical CourseInside location and type Outside Outside awardedCertificate(level attained) htle (hours no.) (hourslessons no.) (hoursactivities no.) company(hours no.) (hourscompany no.) 8 (place)company Verona Certificate BoschspecializationCanopy TechnologyTechnology 2218.9.91 4 92 88 88 84 8 Verona Certificate Pneurnatir 5 Technology 15 6.92 24 20 4 24 Verona Certificate Data collection for employees continuing vocational training, Di Viesto I GeneralSurname Data and first name Folgiano Gianna Age. 31 fYear dui ationalof recruitment: qualification Commercial1990 school certificate 2 (e P.:Ntion attendance (1987 1992) Employee Coursecontents mentCommence- date durationOverall(hours no.) MethodslessonsTheoretical activitiesPractical companyInsideCourse location and type Outsidecompany companyOutside (levelawardedCertificate attained) TVA 21/24 64 (hours no ) (hours no.) (hours no.) (hours no.) (place) MODincomeBaionce 760770 sheet aid September balancethestatement new sheet - October5/8 PEST COPY AVAILARI F r 0 Data collection for employees continuing vocational training, Di Viesto 1 GeneralS Jrname Data: and first name Tschudin Paulo Age: 35 EYear ducationa! of recruitment qualification Secondary1991 school certificate 2 CoursePosition attendance (1987.1992) Salesman Training contentsCourse mentCommence- date durationOverall MethodslessonsTheoretical activitiesPractical CourseInside location and type Outside Outside awardedCertificate(level attained) titlesalesman 1987 (hours no )8 (hours no.) 8 (hours no.) (hourscompany no.) (hourscompany no.)8 company(place) ASTI ,alp,manSeiw.1 10 2 92 16 16 16 Verona Certificate 5 7 Data collection for employees continuing vocational training, Di Viesto I GeneralSurname Data and first name Airaldi Mauro Age: 33 Year of recruitmentd urinal aonlification Secondary1987 school certificate ( '>,r se attendance (1987-1992) Salesman !f (1,1)Ing Coursecontents Commencement date durationOverall TheoreticalMethods Practical CourseInside location and type Outside Outside Certificate(levelawarded attained) Sule (hours40 no ) (hourslessons no.) 40 (hoursactivities no.) (hourscompany no.) (hourscompany no.) 40 (place)company Verona Certificate ..rgainzation80%ine.,s ilesmon Olgunization 4/8920 10.89 24 24 24 Turin 53 PEST COPY AVAILABLE 59 Data collection for employees continuing vocational training, Di Viesto 1 GeneralSurname Data and first name Massaro Luca Age: 28 IductitionalYear of recruitment' cilification Secondary1986 school certificate 2 Course otrendonie 198 7 19921 Head of sales r a.n.i ig ,.:ntentsCourse meetCommence. date durationOverall TheoreticalMethods Practical CourseInside location and type Outside Outside awardedCertificate(level attained) Sales 10 4 87 40(hours no ( (hourslessons no.( 40 (hoursactivities no.( (hourscompany no ) (hourscompany no.( 40 (place)company Verona Certificate E-"rr-ppon ii SAles 12 5.92 8 8 8 Milan Certificate 11,srrt s.,oog,"5 !II.,111 t5 I (if Strategies 16 3 92 32 32 32 Milan Certificate ht Iv !droler-pes 1 4 92 32 32 32 Milan Certificate l51".""55 :fis sr): Oiquilization 24 10.89 24 24 24 Turin (Di Data collection for employees continuing vocational training, Di Viesto 1 GeneiolSurname Data and first name. Chirico Adriano Age: 37 EducationalYear of recruitment. quolificetton Secondary1978 school certificate 2 Position.;:,,,ee attendance (1987.1992) Head of spares department Coursecontents mentCommence. date Overallduration MethodsTheoretical Practical InsideCourse location and type Outside Outside awardedCertificate(level attainedl toteBoy.: e nurse A Spores 7.6 76 32(hours no.) (hourslessons no.) 32 activities(hours no ) company(hours no.) company(hours no.) 32 (place)company Verona course B :ise Spares 44477 12.78 24 24 24 Verona 'No.r.r.rnort SporesSpates 3479 2416 2416 2416 Verona Turin SpatesSpares 27 11312 92 83 2 90 24 24 8 24 8 VeronaVerona P,SIVA.4.S Organt7otionSpetios 24 10.1010 89 92 24 24 24 Turin cn BEST COPY AVAILABLE .... Crt Data collection for employees continuing vocational training, Di Viesto 1 GeneralSurname Data. and first name Gorolfalo Antonio Age: 41 Educat.9naiYear ol recruitment qualification Secondary1989 school certificate 2 Course attendance (1987-1992)Position Head of spares courseroleTraining contentsCourse meatCommence- date durationOverall(hours no.) lessonsTheoreticalMethods activitiesPractical companyInsideCourse location and type companyOutside companyOutside (levelawardedCertificate attained) courseI 1pdoling type 8 Spores 3 I . 5.89 24 (hours no.) 24 (hours no.) (hours no.) (hours no.) 24 (place) Turin Certificate iUpthifingSporest,Intn rn l' n n se Spares 25.514.9.91 92 2432 2432 2432 VeronaTurin CertificateCertificate Business ohon Organization 24 10.87 24 24 24 Turin 63 Data collection for employees continuing vocational training, Di Viesto 1 General Data SurnameYear of and recruitment first name Favretto1987 Ivan° Age: 33 PositionEducational qualification CommercialAccountant school diploma 2 C CUlf se attendance (1987-1992) Methods Course location and type iitlecourseTraining contentsCourse Commence.ment date Overall(hoursduration no.) Theoretical(hourslessons no.) activitiesPractical(hours no.) (hourscompanyInside no.) (hourscompanyOutside no.) Outside(place)company awardedCertificate(level attained) managerAccounts Accountancy 15.11.90 3224 1216 1216 3224 MilanMilan Certificate Balance'irpreparation sheet nd hand car,AccountancySecond lox and hand civil 20 1811 1091 91 8 6 2 8 Verona orgor./(11.or n administration Organizationprocedures 24 10.89 24 24 24 Turin rillCN 66 t7,V,-114! 0' Data callectron for employees continuing vocational training, Di Viesto I GeneralSurname Data and fist name Cavallo Marisa Age: 48 Fr-LA:01,0n°'Year of recruitment qualification Secondary1983 school certificate 2 Corse otiendance (1987 1992)Pasrion Employee 1,irecrt.i.irseIraininy contentsCourse mentCommence. date Overallduration theoreticalMethods Practical CourseInside location and type Outside Outside awardedCertificate(level attained) Arco mts manager Accountancy 13 6 85 24(hours no ) (hourslessons no.) 16 activities(hours no.) 8 (hourscompany no.) (hourscompany no.) 24 company(place) Milan °ha i . , r_pl)ris....'A, impair ,,,,,..., ; mrtnricer Accountancy 2028 10.886.85 2424 2016 48 24 Milan h),W.I.,.Si' a sheet MCI ri iSam ars andtax handand 1P 10 91 8 6 2 8 Verona ori,rP,r.I1:11 risir,rner 11,,, first .iiiiiion Marketingcivil procedures 15 10 91 8 8 8 Turin C IL ',11,01, rt A W :,1,,,t It. 11 ( )1(jamiati,,n 24 10 88 24 24 24 Turin Data collection for employees continuing vocational training, Di Viesto 1 GeneralSurname Data and first name Di Viesto Tamara --- Age: 26 - E-ducolionalYear of ,ecluarnent qualihrotton 08 11 85 (I 87 1992) Secretor y. 'ffl.ffir,c1 contentsCourse meritCommence- date (hoursdurationOverall no ) lessonsTheoreticalMethods activitiesPractical CourseInside location and type Outside Outside Certificate(levelawarded attained) inlephr,nt.: Approaching 15 10 88 24 (hours no ) 24 (hours no.) (hourscompany no.) (hourscompany no.: 24 company(place) Milan [ M4.1 ,ii iales V(' bythe telephonecustomer 24 Milan A i Int, SecretorybalanceNew 20 21.910 89 92 2432 3224 32 Milan pi,ose,,,Amoge. I IVAsheet/ 760'0 New 5 10 92 32 32 32 U.tqun.zot,,,n80.,ifies.,f,110 ,,e 2 Ort;orytotionbalance sheet 70 20 10 89 24 24 24 Turin 71 ac Data collection for employees continuing vocational training, Di Viesto 1 GeneralSurname Data and first name. Sorrento Antonio Age: 33 Educational'rear of recruitment qualification Commercial1979 school certificate 2 Course attendance (19871992)Position Sales manager title(Training nurse Coursecontents meatCommence- date Overall(hoursduration no ) TheoreticalMethodslessons activitiesPractical companyCourseInside location and type companyOutside companyOutside awardedCertificate(level attained) andSoles sales innovation development Marketing/psychologysales staff management 1987 40 (hours no ) (hours no.) (hours no.) (hours no.) 40 (place) Milan Certificatemanagement of attendance training cycleof ries management.1 organizationes', recast for 1989 StatisticspersonnelAims/results elements/budgets motivation 19871988 40 40 BolognaMilan tnunrFni)rer and apt and planning is Marketing/distribution 19901989 40 I0 40 10 Milan BusinessmanagerSenior cunimerr r.rganization lai OrganizationmanagementFinance/business techniques 241991 10.89 4024 2440 St. Margherita LigureTurin Attendancecertificate .; collection for employees continuing vocational training, Di Viesto 1 GeneralSurname Data and First name Ormea Luciano Age: 31 EducationalYear of recruitment qualification Senior1981 High School Certificate 2 CoursePosition attendance (1987.1992) Repair shop employee Laming Course mentCommence- date durationOverall TheoreticalMethods Practical InsideCourse location and type Outside Outside awardedCertificate .o.)rse Ie contents (hours no.) (hourslessons no.) (hoursactivities no.) company(hours no.) company(hours no.) (place)company Verona (level attained)Certificate Alterservice sales OrganizationSales 5 9 921.6 92 8 8 Turin Gettingorgarn/ohrmR.isinesswith people Organizationstrategies 24 10 89 24 24 Turin In 71 7 5' N: 0,0 4, Data collection for employees continuing vocational troining, Di Viesto I GeneralSorname Data and first name Di Viesto Franco Age: 50 Educat,c,nalYear of recruitment. qualification Positron out se attendance 11987- 1992) Director cNurSe Coursecontents meatCommence- date durationOverall(hours no.) TheoreticalMethodslessons activitiesPractical companyCourseInside location and type companyOutside companyOutside awardedCertificate(level attained) ,rganizot.anBuNiness Organization 24.10 89 24 (hours no.) 24 (hours no.) (hours no.) (hours no.) 24 Turin (place) Mur,uqement anagen,ent GeneralSalesmanager policy policies 25 1010.90 88 2416 2416 2416 Milan 77 Doto collection for employees continuing socational training, Di Viesto 1 GeneralSurname Data. and first name Di Viesto Lino Age: EducationalYear of recruitment qualification 2 CoursePosition attendance (1987.1992) Director courseTraining contentsCourse mentCommence dote durationOverall MethodsTheoretical Practical CourseInside location and type Outside Outside awardedCertificate pule (hours no.) (hourslessons no.) (hoursactivities no.) (hourscompany no.) company(hours no.) (place)company Turin (level attained) i-ifiustness oontiotionAfliii sales AfterOgonizatton soles 2524 104 90 89 24 8 24 8 8 Verona SP,V;r12 Productivitycoordinationservice internal 25 6 89 24 24 24 Verona BEST COPY AVAILABLE 79 Data collection for employees continuing vocational training, Di Viesto 1 General Data YearSurname of recruitment and first name C mull 1984Vincenzo Age: 38 PositionEcto, oiional qualification Car electrical repairs 2 Coi..ise attendance (1987-1992) Methods Course location and type 4,tleCC,.1T SC a;n,li contentsCourse Commence-ment date durationOverall(hours no ) lessonsTheoretical(hours no.) (hoursactivitiesPractical no.) (hourscompanyInside no.) companyOutside(hours no.) (place)companyOutside awardedCertificate(level attained) TechnicalFier tricot Jprio.ing cirr.iipmeril Bosch New models 20 204 91 10 92 24 24 8 24 16 Verona Certificate Data collection for employees continuing vocational training, Di Viesto 1 .4enerot Dal° Surname and first name. Taverniti Antonio Age: 35 EducationalYear of recruitment qualification 1976 2 CoursePosition attendance (1987.1992) Chief mechanic coursetitleTraining con.entsCourse Commence-ment date (hoursdurationOverall no.) TheoreticalMethods Practical CourseInside location and type Outside Outside awardedCertificate(1. yel attained) Business Organization 24 (hourslessons no ) 24 activities(hours no.) (hourscompany no.) (hourscompany no.) company(place) Turin cse.torneiPutt.,:3orgonizotion the full Customer 2524 10.8910 90 8 8 8 Turin ChiefInc me( hair holm- NewTechnology cars 15 154 90 5 91 1416 16 8 8 1614 VeronaMilan U4 FIFST COPY AVAILABLF 33 3. DANILO REPAIR SHOP (CITROEN CAR DISTRIBUTOR)

Size of company: Ill In 1984 it moved to a large company-owned installation on the outskirts. In 1989 it relocated Make: Citroen again toitspresent sitein an area of small businesses on the outskirts of the city and has an Category of motor vehicle.. A B area of some 680 sq. m. in addition to 60 sq. m. of office space and 1,000 sq. m. of surrounding Type of company: B parking spaces and gardens. 1. General description of the case studyDanilo has a staff of 6 composed of mechanics The following case study is based on interviews in and administrative clerks and is thus classified as a and descriptions of: type 2 business (between 5-9 employees).

The Danilo Repair shop The company is involved in servicing and repairing any type or make of car. Theinterview withMr.CornatiDanilo was conducted during normal working hours on the It is an authorized Citroen repair shop. premises and lasted for some 3 hours. It was not possible to interview other employees as they Danilo carries out mechanical,electrical and were busy working. electronic repairs withfault finding, repair or component replacement operations, vehicle tun- CitroenItalia:Italian branch of the French ing, inspection and control. manufacturer The repair shop specializes in the following: The data contained in this report is the result of a 21/2 hour interview in the Milan premises with the electrics,electronics,sound,opticaldevices, manager in charge of technical vocational train-gearbox, electrical and electronic fuel injection ing. and ignition, petrol and diesel engines, wheel balancing, brakes and braking systems, suspen- The following diagram shows the training struc-sion, carburettor. ture: The company also undertakes bodywork, work on carburettors and tyres under an agreement with Manufacture' Training Centre other companies operating in these areas.

Company Daniloislocatedinthe southern outskirts of Sector Association Ecipar Bologna in an area comprised of small, commer- (CNA training centre - cial and trades businesses; the area is densely Emilia Romagna) populated ana easy to access.

The owner gave no indication of the company's 2. General description of the company economic position. He confirmed, however, that in The Danilo repair shop, owned by Mr. Cornati spite of increasing management costs turnover is Danilo, is a typical small company run directly byrising constantly. the owner who manages both technical and administrative aspects. Recent company history and The companyisinvolvedinelectricaland development strategies mechanical car repairs. The owner is particularlyOver the past few years the company has sought interested in current technical innovation in the car to improve customer service. To this end it has sector, particularly in diagnostic equipment and increasedinvestmentintraining.Itoffers4 equipment for vehicle maintenance and repair. He compact and family-sized cars which customers is of the opinion that skills upgrading isindis- can use, free of charge, while their ownvehicles pensable for modern management of the com-are undergoing repair. The company hasinvested pany and is a means of learningabout technical in new technologies and the number of employees innovation and company management as well as has increased from 3 to 5. market analysis and investment policy. Business has been good for the company. Current vocational training is provided mainly by Citroen Italia as it is an authorized repair shop for The owner believes there is a constant need for at that make of car; a small amomt of training is leastminimum growth andfordevelopment provided by the sector association. strategies. This involves:

The company was set up in 1972 in a small repair continual technological adoption of the equip- shop in the old part of Bologna. ment; a modest increaseinemployees (max. 2 All the employees have a permanent contract. The persons) to guarantee better use of the equip- average age is 21, the eldest being 30 and the ment and more rapid paying-off of the invest- youngest 17 (the apprentice). They are all of ment costs; Italian nationality, 4 are male (80%), 1 clerk is improved work organization; female (20%). increasedturnover throughincreasingthe clientele attracted by the quality and speed ofWorking hours, holidays, allowances and the services offered, developing outside arrange-wage structure are regulated by the national ments to offer guaranteed services on body-collective bargaining labour contract for the car work, tyres, carburettor, etc. repair sector and by the provisions of the regional labour contract. The company has no specific problem with new technologies in the sector as it has always beenThe employees receive no additional benefits of particularly attentive to innovation and the corre-any kind. There is no overtime. sponding training. Allstaff have completed compulsory education In addition to repair work in the strictest sense ofand none possess higher education certificates. In the word, demand is continually increasing for the past, recruitment was based on the skills the preventative maintenance. Today the car mechan-company required whereas today preference is ic is required not only to repair the fault but to given to recruits with particular technical knowl- prevent faults and guarantee optimal running of edge. Career opportunities within the company the vehicle as a whole. depend on the employee's capabilities and the tasks carried out are in line with the provisions of The greatest difficulty faced by the car repair the collective labour contract. mechanic at present is locating and diagnosing faults. Structure of the company 3. The provision of continuing The company is managed by the owner who has avocational training master craftsman mechanics certificate which he Continuing vocational training isprovidedin obtained in 1966. He is assisted by 5 employees.courses organized by:

The company's structure is shown in the following a. the manufacturer (Citroen 80%) organizational chart: b. the sector's association throughitstraining body known as Ecipar (20%).

Owner Citroen Italia SpA

3 skilled General information I clerk workers Citroen Italia with headquarters in Milan, Via Gattamelata 41 and with regional management in Rome, Via Tommaso d'Aquino 47, is a branch of 1 apprentice the French-based manufacturer.

Citroenvehiclesand suppliesaremarketed through this organization in Italy. The owner isin charge of the technical and administrative sides of the business. Citroen Italia is entrusted with the organization of the sales network through dealers, organizing He welcomes customers and assigns work while repair shops in general, on the basis of informa- evaluating problems relating to fault diagnosistion provided by the dealers and carrying out and assists the employee in carrying out the work. servicing operations on the manufacturer's vehicles covered by warranty. In his absence the technical duties are carried out by one of the two skilled workers who also Citroen Italiais also responsible for vocational assumes the duties of repair shop manager. trainingin the distribution and repair network when operations are startedup and during Administrative and taxation affairs are the respon- operations to ensure competitiveness in the market sibility of a professional consultant. in both sales and after-sales service.

Human resources In the following pages we shall examine the Thereisa staffof five comprising 3 skilled structure and methods adopted by Citroen's Italian workers, 1 apprentice and 1clerk. branch in continuing vocational training. 85 General description of training to provide information on advertising cam- activities paigns, commercial organization and sales The training activities provided by Citroen cover programmes; two areas (commercial and technical): to teach optimal use of telephone and telemarketing sales techniques. a. Training in the commercial sector: In the "service" sector courses are provided for 1.1 sales training those who have most Frequent contact with the 1.2 service training customer and have the following aims: 1.3 spares parts training to make employees aware of the importance b. Technical training and role of the receptionist and of the repair shop manager and to teach the correct method The technical training courses of type 1 are usually of understanding the customer's expectations; given insuitable external facilities (conference to make employees aware of the importance rooms) located near the regional management in and role of the secondary network (authorized Rome. The technical courses are held in Citroen repair shops) for the manufacturer's image; Italia's schools in Milan or Rome, as they have the to teach repair shop organization and manage- necessary equipment, including instruments and ment, optimizing human resources, time and failure-simulationtestbenches,enginecross- equipment; sections and components for training purposes, toteachtheuseof communications and in addition to work benches for practical tests. management techniques.

Other technical courses are given on the dealers' b. Technical sector premises and these may be attended by the dealer's employees and those of other repair Here, the courses have the following aims: shops. toperfect professionalskillsinrepair and These courses aim to teach the correct methods of maintenance through the study of how mechan- failure diagnosis based on the information pro- ical, hydraulic, electrical and electronic com- vided by the customer on the defect and using the ponents work and assessment of the impor- equipment available. tance and role of components; to perfect skills in interpreting diagrams and In these courses a car is used which serves as a using measurement and inspection devices; test bench for failure simulation. todemonstratecorrectmethodsinfailure diagnosis. The technical schools belonging to Citroen Italia arestaffedby theinterviewee, whoisthe In this area special courses are also provided to manager, and 6 full-time instructors. familiarize participants with new technologies, new cars or alterations to existing models. Littleuseis made of the services of external consultants and professionals. The aim is to inform employees about innovations in components, about new technical, mechanical The commercial training section comprises Mr. and electronic solutions, performance rates and to Lorenzo De Angelio, willisthe manager, a provide instructions on correct diagnosis and on secretary and 3 full-time instructors. how to eliminate defects as well as how to use the equipment properly. Purposes of training Programmes, courses and training strategies The various courses have the following objectives: The course programmes, particularly technical courses, ore developed on thebasisof the a. Commercial sector proposals made by the manufacturer.

In general: During planning and development the training service takes into account the particular needs of to provide basic information on running thethe area and thelocallabour market(e.g. dealership, paying attention to the human and mechanics are often skilled in mechanical parts technical aspects; but less in electronic components and in this case to provide knowledge on sales techniques andemphasis is placed on the latter). work organization; toprovideinformationonlegislationon Courses in the commercial sector ore planned and second-hand car sales; developed directly by the training service.

86 On average, courses last no longer than one technology; week. They are free of charge to employees and administration and management; combine theory and practice. sales and marketing.

Trainingmaterialsusedconsistoftechnical Courses on average last 50 hours and have a instruction cards, diagrams and manuals, lumi-balance of theory and practicallessons. The nous blackboards and video cassettes. courses are given in the companies in the sector (repair shops) Courses are given at a variety of levels. In addition tobasiscourses,providingthefundamental 4. Training policies adopted by the knowledge, there are specialized courses forcompany which a knowledge of basic skills is a prerequisite. Training is considered indispensable in order to guarantee quality customer service although one In such courses priority is given to technical andcannot speak of a company training programme mechanical staff and those coming into contact as such. with the customer. The aim is to provide customers with a speedy, Citroen Italia's training strategy aims to train as safe and full assistance service (e.g. a car owned many employees as possible within the network. by the company is offered while repairs are being carried out) in view of the fact that the motor New dealers and newly authorized repair shops vehicle today is of primary importance both for are obliged, by contract, to attend certain trainingwork and family. courses. In the past the company has focu....A on technical Usually the courses are optional and participant training. It requires that employees at, :nd courses selection is the responsibility of the dealers and in turn organized by Citroen Italia or, where useful, authorized repair shops and emphasis is placed by Ecipar. The company intends to expand its on a progressive learning process (with regard totraining activities but in doing so must cope with curricula and skills of the personnel). the problem of staff absence from the repair shops. CitroenItaliaalsooffers tailor-made training courses to meet specific needs in the network. The interviewee showed particularinterestin vocational traininginthe technical field. The Thetrainingservicetakesintoaccountthe training offered by Citroen meets his expectations. proposals made by the network in planning its activities as thisis considered a key to theirThe training manager intends to develop more improvement. stringent training in future. The courses offered by the manufacturer must be more widely used and Conclusions regardingCitroen'scontinuing attention must be paid to the training offer on the vocational training local market.

On the basis of the answers given during theManagement of a car repair shop demands interview, it can be said that the training service isincrecisingtechnical,electrical and electronic attentive to the needs of the sector and the market. knowledge among all the staff as itis essential that the employees work autonomously. Each The flexibility of the solutions adopted, constant employee should, therefore, be placed inthe attention to sales and service networks, and the position to acquire knowledge of the subjects willingness to develop tailor-made courses are mentioned. This shows a need for frequent training positive aspects. tolearnbasic concepts and to progressively upgrade skills and keep pace with innovation in The organization and theteachingaidsfor the field. training are impressive. The owner acknowledges the need for more Ecipar continuing training in administration and manage- Ecipar is a national vocational training body set mentinordertocorrectlycontrol company up by the CNA (the National Trades Confedera- runningcostsandtoensure moreeffective tion); it has offices throughout the country at both investment. regional and provincial level. The training body is well organized and has its own offices, equipment Since 1987 company employees have attended and trainers. The office in Emiliais known as training courses given by the manufacturer and Ecipar. these courses were progressively more complex.

Ecipar provides training courses in cooperationAll company employees have the opportunity to with the sector associations of the CNA in the attend continuing training courses held outside the following subjects: working environment. Employees may consult technical cards, leaflets and microfilms on the Employee become familiar with a new

main types and makes of vehicles directly in the product (. . ...inched on the market in order to company. offer mainti no ice and repair services.

The owner ensures that employees are kept up to New technologies call for increasingly specialized date on new technologies and that the technical training on the new products and the new cards are updated. equipment. Learning how certain components. work and how to use equipment can no longer Training involves all repair shop employees with be restricted to practical learning but requires a the exception of administrative staff. One clerktheoretical foundation. may call upon the advice of an outside professional. The social partners, the trade unions and employer associations have, for some years, been analyz- The courses attended by the employees of the ing the problem of training, encouraging access to Danilo repair shop are listedinthe attached courses and the upgrading of weaker groups and sheets. minorities in general to promote their integration incompanies and toimprove theirworking Course attendance is not compulsory but encour-conditions. aged as courses are held during working hpurs and costs are borne entirely by the company. Such matters are discussed during regular meet- There is no overall planning of training activities. ings at district level. Training responds to current needs and there is a tendency to have unskilled employees attend While the contractspresentlyinforce make increasingly complex courses. reference to the need to ensure worker training, they fail to propose tangible methods for achiev- Training aims to provide the highest possibleing this. degree of technical skilling to all employees. There is no specific training budget and, thus, it is There have been no specific developments in thenot possible to ascertain total training costs. training sector since 1987 and training activities have remained constant on account of the offerCosts are borne partly by the manufacturer and provided by the manufacturer. partly by the employer.

The acquisition of new knowledge enables the employee to carry out tasks which are increasingly 5. Assessment of the training complex and opens career opportunities (limitedconcept obviously by the size of the company so that noThe data contained in the questionnaires isin direct link can be ascertained between course summary form but is sufficient. participation and career progression). The sheets were completed by all repair shop The company sti,)tegy is to ensure that employeesemployees with the exception of the apprentice. receive continuing technological skills upgrading. These sheets reveal a particular need for training Courses are designed for groups of workers and in areas such as electronics (all employees have split into different levels of complexity. attended such courses) and training on new models launched by the manufacturer. Employees attending the courses are selected carefully according to the level of complexity ofSince 1987 Danilo employees have attended on the course to ensure that participants progressively average 2 courses each of a duration of 20 hours. increase their skills and know-how. Employees have requested that they be informed The owner bearssoleresponsibilityforthe earlier of innovations in the sector. management oftrainingactivitieswithinthe company. Training courses are designed taking They believe that the repair shop needs a sound into account not only technological innovation in training programme. the areabut proposalsput forward by the employees onthebasisof analysisofthe On account of the clear increase in demand there company's requirements. will be a development in training offered in the future. To supplement the training offered by the The repair shop can request and propose to themanufacturers, e)ttPrnal training bodies will ap- manufacturer's training service that a course be pear on the market. Basic training is provided in organized to ii;eet its specific requirements. The the companies although there are efforts to identify manufacturer's trc.iiningservice may accept orexternal courses. Such courses cover technical 68 reject such a proposal. subjects only. 88 6. Conclusions regarding continuing To this end the company is examining more closely vocational training the training offered on the local market and by the The training provided for Danilo employees is in sector associations. line with normal continuing trainingfor small companies. The small size of the company highlights the constraints preventing more consistent and wide- The owner is justified in expressing a need for spread continuing training activities. In the repair more timely and frequent technical training toshop it is difficult to do without even one person keep pace with technological innovation. andstillguaranteea goodservicetothe customers. Training costs, which may increase, Importance isalso attached by the owner to could present a further problem. trainingin management and administration to guarantee a sounder base and control of costsAppropriate legislation and a good training offer and other factors. on the market could provide a response to these problems (time, location and cost constraints) and The interviewee is aware of changes currentlycould help to ensure that continuing training taking place in the sector and intends to take allbecomes more widespread in small companies. initiativesto ensure that his company remains competitive.

69 83 Data collection for employees continuing vocational training, Dani lo 1 General Data SurnameYear of and recruitment first name Piletti1980 Luciano Age: 30 PositionEducational qualification SecondarySkilled worker school certificate 2 Course attendance (1987 1992) Methods Course location and type courseTrainingtole contentsCourse Commence.ment date durationOverall Theoretical(hourslessons no.) (hoursactivitiesPractical no.) companyInside(hours no.) (hourscompanyOutside no.) companyOutside(place) (levelawardedCertificate attained) X (MechanicalTechnician 1990 20 17 3 20 Milantraining (Education centre) attendanceCertificate of Xfs.A Technicianengineering)(introduction to 1991 20 17 3 20 trainingMilan (Education centre) attendanceCertificate of ele. ta-eics electronics)ouroironics1st level 1992 8 8 8 TrainingBologna(Education Centre) attendanceCertificate of B 0 IIt I is S iniection(autotronicsTechnician equipment) for 1 1 92 32 32 (hotel)Bologna Certificateattendance of Data collection for employees continuingGeneral vocational Data training, Danilo YearSurname of recruitment and first name Liparini Alessandro Age: 22 Echcat.onalP,,S 'ton qualification SecondarySkilled worker school certificate 2 Course attendance (1987.1992) Methods Course location and type toleTraining contentsCourse mentCommence dote Overallduration lessonsTheoretical(hours no.) (hoursactivitiesPractical no.) companyInside(hours no.) (hourscompanyOutside no.) (place)companyOutside awardedCertificate(level attained) ,I,Orr,n.iBus,. 5 lechnician 1992 8 8 8 Bolognacentre)training(Education attendanceCertificate of infectionhutotronicsferImiLicin equipment) for I II 92 32 32 Bologna(hotel) attendanceCertificate of IN> Data1. collectionGeneral Data. for employees continuing vocational training, Dank YearSurname of recruitment and first name. laffei Elvis Age: 24 EducationalPosition qualification SkilledSecondary worker school education - professional course 2 Cause attendance (1987.1992) Methods Course location and type rideCourseTraining contentsCourse mentCommence- date durationOverall (hourslessonsTheoretical no.) (hoursactivitiesPractical no.) companyInside(hours no.) Outside(hourscompany no.) companyOutside(place) (levelawardedCertificate attained) lectronii. s electricalenginesIniection and systems 1992 8 8 8 centre)training(EducationBologna E le( Nun., Technicianiniection(autotioniLs equipment) for 1 11 92 32 32 (hotel)Bologna attendanceCertificate of r REST COPY AVAILABLE Data collection1. General for Data: employees continuing vocational training, Danilo YearSurname of recruitment. kind first name: J. Bertarini Roberto Age: 30 Position:Educational qualification SecondarySkilled worker school certificate 2 Course uttendance (1987-1992) Methcds Course location and type CourseTrainingtitle contentsCourse Commence-ment date durationOverall (hourslessonsTheoretical no.) (hoursactivitiesPractical no.) (hourscompanyInside no.) (hourscompanyOutside no.) (place)companyOutside Certificate(levelawarded attained) Alfa 75 Technician 9/90 30 30 training(EducationMilan centre) attendanceCertificate of Alfa 164 Technician 9/91 30 30 Milantraining(Education centre) attendanceCertificate of Electronics Basic electronics 1992 16 1 u training(EducationMilan centre) attendanceCertificate of Electronics injectior(autotronicsTechnician For .quipment) 1. 1 1. 92 32 32 (hotel)Bologna attendanceCertificate of N 06 97 4. RENAULT DEALER G. & G. PAGLINI SpA (RENAULT CAR DISTRIBUTOR)

Size of company: on sales volumes and on the results of customer surveys carried out by a specialized company Make: Renault (UNICAB in Rome) Category of motor vehicle: A The surveys are conducted inthe commercial (sales and deliveries) and the service sectors. Type of company: D They are telephone surveys.

1. General description of the case studyAs a means of evaluation, the average results of a The following study is based on interviews in andgroup of some 10 dealers with similar character - descriptions of: istics are compared.

The G. & G. Paglini dealership, part of the Quarterlyfigureshighlightthestrengths and Renault distribution network in Italy. weaknesses of each dealer as formulated in the interviews. The interview was conducted on 10.9.92. on the dealer's premises. The following people were A scale is then drawn up for the 10 dealers and an interviewed over a period of some 3 hours: average valueascertained.Theincentiveis granted if the dealer ranks above the mean value. Giorgio Poglini, managing director -Gilmo Paglini, chairman A similar procedure is used to evaluate the service Marino Montalbetti, training manager sector.

The Italian branch of Renault, based in Rome, G. & G. Poglini sell cars (93%) and commercial responsiblefororganizing and coordinating vehicles (vans 7%). trainingfor the entire distribution and service network for Renault in Italy. The companyspecializesinvehiclerepair, tuning/replacement of the following components: In a 2-hour i.;terview on Wednesday, 17 Decem- ber,1992,atthe RenaultItaliaoffices,Mr. electric, electronic, lighting, sound components Carmine Lunedi, manager of technical training, automatic transmissions described in detail the training service and how it gear boxes was organized. He gave details of operational petrol and diesel engines structure, the goals pursued and the means of electronic ignition/fuel injection systems implementing training. In a shod interview follow- suspensions ingthis,Mrs. Geremia, manager of training carburettors services for the commercial sector, illustrated the bodies general aims and content of the courses and their composition. Recent history of the company and development strategies The company was set up in 1964 and started off 2. General description of the company as a repair shop for Alfa Romeo cars. G. & G. Paglini SpA is a family-run company located in the suburbs of Busto Arsizio,in the It was owned and run by the managing director's borough of Olgiate Olona, a town in the Varese parents. In the 1970s and over a period of 2 province, close to the motorway tollgate at B...,sto years, the Alfa Romeo commercial network also Arsizio, an industrial town near Milan. distributed Renault cars in Italy.

The name and address of the company is: Following the breakdown inrelations between Alfa Romeo and Renault around 1963 the Poglini G. & G. Paglini SpA, Via per Fagncno 36, repair shop became a Renault dealer in the Busto Olgiate Olona (VA), Italy. Arsizio area. Telephone: 03 31 63 13 79, fax: 03 31 32 2049. Sales in 1987 amounted to some 500 vehicles/ The company is a dealer for Renault vehicles. year, doubling by 1991. It has expanded in terms of offices/premises with the addition of commer- Renault are the only vehicles sold and for this cial premises for new and second-hand vehicles make technical operations are also provided. and a servicing centre.

Regarding relations with the manufacturer,itis The use of new technologies for vehicle produc- important to note that unlike in the past, when tion,theproductionof components andin Renault encouraged its network to increase sales diagnosticstoidentify and repairfaultshas volumes, the current incentive schemes are based played a fundamental role within the company 9 8 with regard to the need for training and skills also in charge of relations with the 4 authorized upgrading for staff. repair shops and customers.

With regard to the repair shop, the need for skilled The organizational charts include job descriptions workers capable of working on the entire vehicleand a list of duties. and not only on specific components is becoming increasingly evident. Obviously, higher company functions (planning, budget, etc.) are the direct responsibility of the In sales, emphasis is on custor.ier relations, both at managing director and the chairman. the time of sale and after sale. The dealer's development strategies in the short Although a great deal of importance is attached to and medium-term can be summarized as follows: training, the training manager also has other duties (customer relations, coordination of servic- maintaining the sales volume already achieved ing departments). (1,000 vehicles/year in 1991); Such an accumulation of duties is common in small increasing turnover in servicing by attracting and medium-sized companies. customers who currentlyuseindependent repair shops through highlighting the reliability Human resources and competence of the dealer's service centre The company has 31 employees with the follow- and offering customers certain concessions (full ing duties: 3-year guarantee service contracts rather than annual contracts and 3-year planned assis- 12 service and sales staff tance contracts Platinum). 5 distribution staff 3 spares warehouse staff Long-term strategies depend upon the manufac- 3 vehicle repair mechanics turer.If Renault decides to reduce the number of 5 administrative clerks dealers (in the Busto Arsizio area there are 5 at 3 commercial staff present)their expansion would have tostop. Should Renault decide to increase the sales area The company falls within the category for 20-40 then expansion would be possible. employees (type 4).

The rise in sales and commercial and servicing Company structure activities has led the dealer to increase the number The organization charts1, 2 and 3 show theof employees from 20 to 31 between 1981 and company structure for the service division and the 1991. commercial division. A specialized department manages the dealer's computer services. The average age of employeesis 35,the maximum 56 (2 workers) and the minimum 20. The technical servicing department is responsible for: Most are male (70%), all are of Italian nationality (with the exception of one member of staff from 1.the management of a spare parts warehouseGhana),all(withtheexceptionof2) are

in respect of capital expenditure on spareemployed on a full-time basis and thereis 1 parts and annual component turnover (lire 1.5 external consultant. billion/year); The working conditions for the employees are 2.accepting vehicles and repair and maintenan-covered by the national contract for the commerce on mechanical, electrical/electronic andcial sector which envisages 40 working hours per lighting devices; week, 10% overtime, 35 days paid holiday. The contract also determines the salary structure. 3. bodywork repairs including spraying. Employeesreceive no additionalbenefitsor Sales staff for both new and second-hand cars, supplementary contracts. advertising staff and administrative staff, responsible for administration of purchases and transfer With regard to recruitment procedure, certificates of car ownership, are uliocated to the commercial awarded by vocational training institutes are nr sector. recognized. 50% ofemployees(mechanics, warehouse staff) hold the intermediate school- The dealer has 4 authorized repair shops. leaving certificate and 50% (clerks) possess a secondary school-leaving certificate. The computer departmentis made up of the manager responsible for relations with the manu- Career prospects depend on the dealer's needs facturer to ensure that orders are transmitted; he is and the skills of the employees. 75 99' 3. The provision of continuing b. General technical training vocational training Training for G. & G. Paglini is provided by bothMr. Carmine Lunedi, responsible for planning and Renault, mainly of the technical type, and byorganizing courses,isin charge of technical private training organizations (mainly for sales training. and management). Renault Italia's training structure and activities in continuing training for the His tasks are: dealer network are described below. to maintain contact with the French manufac- Renault Italia turer in order to remain informed about training guidelines: General remarks to organize courses, bearing in mind the Italian Renault Italia SpA, with headquarters in Rome, Via market; Tiburtina 1159, is the Italian importer of vehicles to identify areas of particular interest to the manufactured by Renault in France. network: to draw up statistics and training programmes; The main task of the company is organization of to keep in contact with the Renault branches the marketing and service network for Renault and the head office. vehicles. The technical training activities are in 3 locations: Renault Italia SpA believes that ensuring a high level of continuing vocational training for the at headquarters in Rome with 6 trainers; network of dealers and authorized repair shops is at a branch in Naples with 2 trainers; of fundamental importance. at a second branch at San Co lombano al Lambro with 3 trainers and a branch manager. General description of the training service The followingcourses arepartof technical Renault Italia SpA provides training activities in 2 training: main sectors: 1.Basic technical courses for all operators who the commercial sector must have specific knowledge of the product, general training systems, materials and spare parts.

a. Training in the commercial sector The basic subjects in these courses are:

In this context it is not possible to go into detail mechanics, electrics,electronics, ABS, new because of the limited amount of information models and innovative technology introduced provided in the short interview. in the products, bodywork. Currently, courses for the commercial network are held by outside training and professional bodies 2. Coursesinspare part management, sub- under agreements with Renault, directly at head- divided into basic courses for dealerships quarters and in conference facilities in the various and courses for spare part managers (deal- areas. ing with subjects such as the study of the territory, demand analysis, marketing, ware- The following courses are provided. house organization and management, sales, etc.). managerial courses for dealers with the aim of teaching methods for analysis of resources andThe courses for spare part managers are held only territorial needs; at the San Colombano al Lambro branch as the financial and administrative management of specific training unit is located there as part of the the dealership; National Spares Centre (or Renault Spares Italian training for sales staff or sales managers in Warehouse). subjects including customer identification, and customer relations before and after-sales. This department macesitpossible to acquire practical skills in order management, despatch, The training activities offered in this sector, in the packaging, etc. past well-structured and provided by in-house trainers, are now being reorganized.

76 lop 3. Courses for technical coordinators. This career who advise them of their particular training needs profileisconsidered fundamental to good as do the 8 regional branches of Renault Italia repair shop management and for maintaining SpA. links with the Renault Italia training department. The technical coordinator has goodIn formulating training programmes, the training technical training and is capable of solving department takes due account of the needs complex problems inservicing, repair andalthough generally the department is capable of maintenance. anticipating the networks' needs.

A special 6-week course is provided for technical The courses comprise both theory and practical coordinators and is held only in Rome, where the elements. course is limited to 8 participants. A large amount of practical traininginvolves It includes the following: locating different faults, repairing breakdowns, correct dismantling and reassembly of the engine a 3-week course on electrics, and its components and the use of the electronic 1 week devoted to car design (front and rearequipment available in the repair shops with the axle), aid of technical benches. 1 week devoted to ABS, 1 week devoted to pollution issues and theThe course participants are selected by the central turbo system, department. 1 week devoted to carburettor and fuel injection systems, An information sheet has been drawn up for each 1 week on diesel engines and air conditioning, Renault employee containing information on the 1 week devoted to communication where train- employee's level of occupational skills and his ing is provided by an external training body. training requirements.

Rome is chosen as the only location for this course Course attendance is mandatory but is clearly toenable operatorsfordifferent areas and essential to ensui,=: continuity in relations between companies to meet and encourage the exchangethe head company and branches. or experiences, thus establishing links between the technical coordinators. To encourage attendance, costs for courses are borne by Renault Italia SpA, whereas miscella- To further encourage this,during the annual neous overheads are borne by the dealers and updating courses, which last for one week and authorized repair shops. are also held in Rome, participants within the courses are replaced and the groups changed. 4. Training policies adopted by the company 4. Bodywork courses for dealers and authorizedWith regard to repair shops, training within G. & repair shops comprisingsubjects such asG. Paglini is aimed at keeping workers updated correct assembly and dismantling of the car, on new models that have been launched and on the evolution of car paints, new materialsproduct and component innovation (electronics, (polyesters and fibres), air and water tightness. ABS, turbo systems, etc.).

5. Behaviourial type courses for repair shop Repair shop employees are trained and placed in supervisors, spare parts managers, heads ofcontact, on a rotationalbasis, with the new servicing, receptionists, i.e. those who come technologies gradually introduced into the repair into direct contact with the customer. shop so that updating takes place within the company and not only on external courses. The purpose of such courses is to highlight the importance of customer relations and to create The technical coordinator plays a fundamental synergy between the repair shop manager and the role, attends all the courses organized by the spare parts manager in handling orders between manufacturer when models and model and the repair shop and store, in order to carry outproduct innovations are launched. He subse- maintenance work efficiently and in the shortestquently trains the dealer's technicians himself possible time. (throughinternalcoursesand/or on-the-job training). Planning and organization of the courses is not kid down by the French parent company, but it There has been a quantitative and qualitative leap provides orientation and guidance. forwardintrainingsince1987 interms of employee participation in external technical and The training department of Renault Italia SpA is in sales courses and in those given by the technical constant contact with its technical coordinators, coordinator. 77 4! 101 Continuing training focuses on organizations on budgeting, computer technology, administration, accounting, etc technological innovation (87%), product and model changes (15%), 4 sales and marketing employees have follow- trainingdictated by changesinlegislation ed alarge number of coursesor.sales (2%); techniques and marketing. The basic courses product and/or service quality (5%). were held in the dealership and the more specialized courses were giveninprivate The increased importance of vocational training in training organizations or by Renault Italia. the last 5 years may be attributed to the following.

factors: 1 customer service manager has attended Renault courses, lasting on average 4-5 days. the increasing importance of product quality;

greater stress on service quality (sales, techni- 1 spares warehouse manager has attended a cal assistance); limited number of theoretical courses given by the introduction of new devices on the product Renault. (ABS, electronic injection/ignition, anti pollution devices, active suspensions). Courses are mandatory and held during working Training encompasses: hours. All employees have attended courses in line with their duties. A basic sales course is given in management (3%); the dealership and there are opportunities to sales (10%); attend more advanced external courses. technical issues (87%) Technical courses are given by the technical with an annual overage of 6-10 days training forcoordinator for product innovation and partici- each employee. pants comprise new employees and employees changing tasks within the company. The questionnaires completed by G. & G. Paglini employees are attached: Attendance at such courses is important for career prospects. The following general conclusions may be drawn from the data contained in the questionnaires,The manager responsible for customer relations, which were completed by 11 employees (30% of servicing and training acquired his current posi- the total). tion through continuing training courses.

In Italy there is no national certification system for The dealer encourages his employees to attend continuing vocational training courses, whether courses to build upon their skills and knowledge. organized by the m-mufacturer or private or public training organizations. For this reason the column There are no specific courses for women, ethnic "certificate atto;ned" has not been completed. minorities or the handicapped.

The most important conclusions that can be drawn The aims of the dealer with regard to continuing from the analysis of the questionnaires are: training are as follows:

3 repair shop mechanics have attended a to follow the manufacturer's courses on product limited number of courses given by Renault innovation and new vehicle launches; Italia; to increase attendance at sales courses given

1 repair shop manager has attended more by external organizations; Renaultcoursesthantheothertechnical to train new employees who have no experi- employees. ence; to train current employees in technical areas The average duration of courses is 2--3 days. allowing them to rotate jobs in the company.

The questionnaires do not contain descriptions of job training and skills upgrading activities con- In future the company intends to: ducted internally by the technical coordinator; suchcourses coverthe areasinwhichthe carefully assess the external courses offered by r anufaclurer provides trainingfor the various companies toselect the most suitable ones categories of employees. (sales courses); to increase the number of courses, particularly

1 administration manager has attended many technical courses,for employeesinthe 4 external courses organized by private training authorized repair shops linked to the dealer. 78 Table 4 contains the tasks/activities and shows the In this way, one of the major hurdles to employees internal structure of continuing vocational training. attending external courses has been overcome. Compared with 5 years ago, when training was rudimentary and lacked structure, the quality and The technical coo-dinator ensures that internal and number of courses attended by employees hason-the-job training is provided. increased. Such a training model could be transposed on For sales courses the dealer makes use of the other companies of a similar size and character- services of an external company (Head Hunters). istics. They provide 3-hour evening courses over 5 days wheresales,behaviourial and psychologicalTechnical courses organized by the manufacturer techniques are taught. seem to satisfy the training and skills upgrading needs of G. & G. Paglini. There is a trend to train Video tapes of the technical coordinator are employees to enable them to undertake a wide frequently used for technical training. rangeofdiagnostic andrepairoperations. Specialization is disappearing and training car- The courses are chosen by the managing director ried out within the dealership would seem to and chairman jointly with the training manager. follow this strategy.

The dealer image with regard to training has beenWith regard to sales and marketing courses, the enhanced in the eyes of Renault, who renew the dealer makes use of courses organized by Renault dealer contract annually, and the customer. and those organized by private organizations, the latter being more expensive for the dealer. Union representatives and regulations on collective bargaining contracts do not exist within the deal- 6. Conclusions regarding continuing ership. The same applies to sector associations. Vocational training The 3 individuals interviewed in the dealership Only the dealer decides upon continuing voca- expressed satisfaction with the effects of continu- tional training issues. ing training. They intend to increase the number of courses attended by employees as they consider For the period 1987 to 1991 the dealer estimates generally trained staff to be of little use even for training costs to have been around lire 70 million. small companies.

For the courses organized by Renault the dealer The interviewer was impressed by the frankness of must only cover the cost of travel and subsistence the interviewees and their willingness to provide as costs for course participation are borne by the the information requested and to discuss continu- manufacturer. ing training issues. The dealer makes considerable use of continuing training. Courses given by private organizations in sales and marketing techniques are at the dealer's The transferability of the experience acquired in expense. training by this dealer to other Renault dealers would seem evident. 5. Assessment of the training concept In this case study the technical coordinator plays a With regardtoexternalsalescourses,such fundamental roleinupdating employees and packages could easily be created for dealers of ensuring job rotation among mechanics in the other car makes. company thus avoiding long periods of absence for course attendance.

i 1.03 Table 1 - G. & G. Paglini SpA - Service office

Gilmo Poglini President

Montalbetti Marino Manager customer relations Service department coordinator Training

Poglini Cristina Service deportment coordinator

De Bernardi Vittorio Colombo Valerio Torno Luigi Head ofT stores Head of repair shop Head of car body repair Lualdi Giancarlo Fossa Cristinc.. Riggio Vito Pellegatta Giampiero Storekeeper Employee Reception Car body repair

Gosberti Fausto Costiglioni Rossella Sacchi Paolo Burotti Rolando Storekeeper Employee (port-time) Mechanic Car body repair

Spare parts stock Farina Costantino Noninato Paolo and sales Mechanic Cor body repair

Masiero Valerio Sottile Stefano Mechanic Car body repair

Collo Alfonso Mechanic

lannazzo Francesco Mechanic

Table 2 - Flow Chart; G. & G. Paglini SpA Sales office

Giorgio Poglini LManaging director

Zaffaroni Barbara Crespi Renzo Grillo Claudio Head of administration Head (SHC) Sales manager & computing

Buffon Dario Colloni Massimo [Colombo Graziello Paglini Alberto Somaruga Giovanna Sales (SHC/NC) Head pre-deliveries Head sales office NC sales Assistant Head of advertising Gasberti Fausto 1 I.imongi Franca Storekeeper Tadei Daniele Trevisan Walter SHC records Sales (SHC/NC)

Spore parts stock Margutti Marisa and sales Adarkwaoh Edwart (port -time) Sales assistant

Tulono Saverio (part-time)

SHC. second-hand cars 80 NC. new cars 10.1 Table 3 Computer Department

Zaffaroni Barbara Six Head of computers Lotus Works

Paglini Cristina Grillo Claudio De Berna di Vittorio Head of services Head of sales Head of stores Management (SHC/NC)

SHC: second-hand cars NC: new cars

Table 4Continuing vocational training Organizational chart Distributor G. & G. Paglini

Head of CVT

Technical Commercial coordinator management

courses in sales training product innovation

internal refresher courses training for authorized for new employees repair Mops' employees

external courses

REST COPY AVAILABLE

105 111 CO Data collection for employees continuing vocational training, G. & G. Paglini 1 General Data YearSurname of recruitment. and first name. Buffon Dario Age: 30 t ducationalPosition qualification SecondarySalesman school certificate 2 Course attendance (1987. 1992) Methods Course location and type Trainingtitlecourse Coursecontents Commence-ment date durationOverall Theoreticallessons activities(hoursPractical no.) (hourscompanyInside no.) companyOutside(hours no.) (place)companyOutside awardedCertificate(level aticined) salesBasic principlesFundamental 5/91 36 (hours no.) 36 (Renault)Milan updatingSolescourse of methodssalesEvolution 5/92 60 10 fiat() cfc;Iection for employees continuing vocational training, G. & G. Paglini 1 Ger.eralSurname Data: and first name: Trevisan Vatter Age: 30 Year of recruitment:ducationol qualification Degree1990 in electronics and Cobol programmer 2. Course attendance (1987-1992)Position VN/VO sales assistant courseTraining contentsCourse Commence-ment date durationOverall TheoreticalMethods Practical CourseInside location and type Outside Outside awardedCertificate Basictitle sales course (hourslessons no.) activities(hours no.) (hourscompany no.) (hourscompany no.) (Renault)(place)company (level attained) ProductsalesSupplementary course sales course codvancedTales techniques course 24 (Renault)(Renault) salesHeadTelephone courseHunter contact 20 training(Educatior(Renault) centre) Updating r curse Methods evolution - - 60 60 60 108 BEST COPY AVAILABLE 109 CO Data collection for employees continuing vocational training, G. & G. Paglini 1 GeneralSurname Data. and first name Paglini Cristina Age: 26 fYear ducotionai of recruitment quolikation Tour1986 operator certificate 2 Course attendance (1987 1992)Positron Coordinator of service departments courseTraining contentsCourse mentCommence- date durationOverall TheoreticalMethods Practical CourseInside location and type Outside Outside awardedCertificate(level at- title lessons(hours no.) (hoursactivities no.) 16 (hourscompany no.) (hourscompany no.) Rome(place)company (Renault) tained) MasterDelfini I computercommunication,Car market, science, second human economic hand resources, cars ' financialservicing, management, soles, 13 2 89 80 64 80 Delfinii'voster II rnent,Marketing.management human second resources,and commercial -hand management, cars, planning servicing, leadership manage- 4/90 40 30 10 40 Rome (Renault) priority ustamer agementi'Oarketing.and leadership of servic interrelations styles, e, meetings and transaction management clash ntcir personal relations and man 4/91 16 12 4 16 Milan (Renault) Specialist kmdifferentinsideOrganitati'mal and the management r aims, business instruments iceberg, the role roles to ensure coherence 'moony interfunctionality among of the organize- 22.5 92 16 12 4 16 Solo (Renault) T Data collection for employees c "ntinuing vocational training, G. & G. Paglini 1 SurnameGeneral Data: and first name: De Bernardi Vittorio Age: 45 YearEducational of recruitment: qualification Mechanical1980 designer 2 Course attendance (1987.1992)Position Head or warehouse courseTraining Coursecontents Commence-ment date durationOverall MethodsTheoretical Practical CourseInside location and type Outside Outside Certificateawarded titleManagement and organi Warehouse management 1980 40 (hourslessons no.) 40 (hoursactivities no.) (hourscompany no.) (hourscompany no.) 40 (place)companySan Colombano (level attained) Marketingzation of warehouse organization Penetration Renault and 1986 40 40 40 Milan(Renault)Al Lambro (Renault) Upgradingmanagement skills of ware- Practicalservicecar market spare operational penetration parts policy op- in 1987 8 8 8 Milan (Renault) house, manager priority. Marketingproblemsproach to marketservice 4/91 16 12 4 16 Milan (Renault) andmentrelationshipspenetration, transaction of imerfunctionality interpersonal and clash manage- ut00 112 113 CO Dana collection for employees continuing vocational training, 1 GenetS.irnarne ci Data and first name Torno Gianluigi Age: 48 EducationalYear of recruitment qualification Primary1974 school certificate 2 CourPosition se attendance (1987. 1992) Head of bodyshop titlecoursrTraining contentsCourse meatCommence- date durationOverall MethodslessonsTheoretical activitiesPractical companyInsideCourse location and type companyOutside companyOutside Certificate(levelawarded attained) bodyshopAppr,-,ach sk.11s to General 28 3 75 30 (hours no.) 15 (hours no.) 15 (hours no.) (hours no.) 30 (Renault)Rome(place) Waterproofing Water infiltration 11 1 1 90 15 7.5 7 5 15 Bologna Roprit, General 26 1 1 82 15 10 5 - 15 (Renault)Turin r. , .1,rimet, y I ibieglossTesting forpaints -Espace" with 2 31985 89 2018 109 109 - 2018 Turin(Renault) in ".',..iftrincI. :pa( f, and F ihreg lossolnrunetry innovc lions 3 6 97 20 10 10 20 (Renault)Bologna Data collection for employees continuing vocational training, G. & G. Paglini 1 Genera!Surname Data and first name Colombo Valeno Age: 37 EducationalYear of recruitment qualification Secondary1989 school certificate 2 Course attendance (1987 1992)Position Chief repair mechanic courseT(01111(19 contentsCourse Commence-merit date durationOverall TheoreticalMethods Practical InsideCourse location and type Outside Outside Certificateawarded toleAEI Renix Specialization !median 14 1 1.89 8 lessons(hours no.) (hoursactivities no.) 8 (hourscompany no.) company(hours no.) (place)companyRome (Renault) (level attained) RenaultINEk 16R" -Cliovalves and CompleteInjection 16 1211 989 90 16 8 8 8 Milan (Renault) Ter E space' ordinator Air conditioning 201990 6 90 320 16 100 220 16 Rome (Renault) Customer pr.t- ty Comprehensiverelations,penetration,Marketing. conflict service interpersonal training manage. 4/91 16 12 4 Milan (Renault) Soft nne Electricalandmerit. transaction interfunctionally components 6 4 92 12 13 Rome (Renault) CO 116 117 CO Data collection for employees continuing vocational training, G. & G. Paglini 1 SurnameGeneral Data: and first name Zaffaroni Barbara Age: 27 YearEducational of recruitment qualification Commercial1986 school certificate 2 Course attendance (1987-1992)Position Head accountant courseTrainingtitle Coursecanter is Commence-ment date durationOverall TheoreticalMethodslessons Practical InsideCourse location and type Outside Outside (levelawardedCertificate at- Management Head accountant functions, in- 18 (hours no.) 10 activities(hours no.) 8 company(hours no.) (hourscompany no.) 18 Milan(place)company tained) training accounting,Scome Ppractical links, statement introduction accountexercises, what sheets, toitbalance is sector and Oct24/25/26 1989 (Renault) operatorSpecial DMS training on AS/400course IBM for AS/400sheet practice system Mar26/27 1992 12 8 4 12 (Renault)Milan toBalance EEC instructions sheet according plesEuropeaninstructions,Reform of the aim countries,balance accordingcomparison sheet basic to withEEC princi- other 19 3.92 2 2 2 trainingBusto(Education Arsizio centre) Li sheet scheme2 integrativeosseswipni Balancenote sheet drawing up iteflu, balance Methods Course location and type titlecourseTraining contentsCourse Commence-ment date durationOverall Theoreticallessons(hours no.) (hoursactivitiesPractical no.) companyInside(hours no.) Outside(hourscompany no.) companyOutside(place) awardedCertificatetained)(level at- cordingRepair shopto EEC balance instructions sheet ac balanceBalance()gement sheetsheet instrument analysisIV directive asconsolidated man-and 9.4.92 2 2 2 training(EducationBusto Arsizio centre) enterpriseRelationship - short between term bank / businessEconomicbalance and management, and simplified financial balancefloatingsides of 4/51992 Nov 16 12 4 16 Gallarate(Industrial union) Planningfinancing tion,capital,Short-term the financial concept financial needsof leverage planning,calcula- comparisonsupplierfinancingtreasury credit,budget short of the examinationbank Floating costing credit, capital factors and 14)0andof shortermBanking servicing transparencyinstruments, components financial 121 Data collection for employees continuing vocational training, G. & G. Paglini 1 SurnameGeneral Data and first name. Pellegatta Giamptero Age: 30 EducationalYear of recruitment qualification Secondary1977 school certificate 2 Course attendance Position (1987.1992) ----Car body repair mechanic/assembler courseTraining contentsCourse Commence-ment date durationOverall TheoreticalMethodslessons activitiesPractical CourseInside location and type Outside Outside (levelawardedCertificate attained) Waterprooftitle Water infiltration 6 12.85 15 (hours no.) 8 (hours no.) 7 (hourscompany no.) company(hours no.) 15 Turin(place)company Waterproof Water infiltration 4 4.89 15 8 7 15 Turin(Renault) 123 Data collection for employees continuing vocational training, G. & G. Paglini 1 General Data: YearSurnarrt of recruitment. aid ftst name: Paglini1982 Alberto Age: 28 EducationalPosition qualification SalesmanDegree in Mathematics 2 Course attendance (1987.1992) Methods Course location and type htlecourseTraining contentsCourse mentCommence. date durationOverall (hourlessonsTheoretical no.) (hearsactivitiesPractical no.) (hourscompanyInside no.) companyOutside(hours no.) companyOutside(place) (levelawardedCertificate attained) DehniDefini III VorganizationalMarketing, 0 market study structures 19861987 15 days7 days Rome (Renault) Dalin'Dalin, IttAmerica GroupTotal quality dynamics 19921988 10 days (Renault)AmericaParis (Renault) IcebergMarlelephone kering aryl .. oilier. ntoci 19921989 2 days1 doyday Milan (Renault) DataI collection for employees continuingGeneral vocational Data training, G. & G. Paglini YearSurname of recruitment. and lust name Grillo1978 Claudio Age: 34 PositionEducational qualification SalesExpert manager 2 Course attendance (1987. 1992) Methods Course location and type titlecour$:.Training contentsCourse mentCommence- date durationOverall Theoretical(hourslessons no ) (hoursactivitiesPractical no.) company(hoursInside no.) cornpany(hoursOutside no.) (place)companyOutside awardedCertificate(level attained) Refresher COUC SI` salesAdvanced techniques 24 18 6 24 Milan(Renault) Mretingsluntr Heels forSales Howlarge techniques tofleets organize 3616 2016 16 3616 Busto(Renault)Milan Arsizio Nonverbal ignment a meetingGestures 16 16 16 Bustotraining(Education Arsizio centre) mmum u' ii interpretation PFST COPY AVAILABI training(Education centre) 12 Data collection for employees continuing vocational training, G. & G. Paglini 1 GeneralSurname Data: and first name: Naninoto Paolo Age: 24 EducationalYear of recruitment qualification Secondary1990 school certificate 2 CoursePosition attendance (1987.1992) Painter courseTrainingtitle contentsCourse mentCommence- dote durationOverall MethodslessonsTheoretical activitiesPractical CoursecompanyInside location and type companyOutside companyOutside (levelawardedCertificate attained) C olonmetry Paints correction study 10 2.92 30 (hours no.) 15 (hours no.) 15 (hours no.) (hours no.) 30 (Renault)Bologna(place) 128 REST COPY AVAILABLE 129 41:4 5. BETTONICA & GARGAN SRL (FIAT CAR DISTRIBUTOR)

Size of Company: IV vehicle or component beitof a mechanical, electrical, electronic or bodywork type. Make: Fiat The repair shop is equipped with modern equip- Category of motor vehicle: A B ment for the diagnosis and repair of any car or model within the Fiat range. Type of company: B The company currently employs 38 staff. 1. General description of the case study The following case study is based on interviews in 9 are employed in the commercial sector, 21 in and descriptions of: servicing and repair, 5 in after-sales service (upon sale of a new or second-and car the employee Bettonica and Gargan (Fiat dealer) carries out all the operations necessary before the vehicleisdelivered to the customer such as The interview was conducted in the companytechnical check to ensure that the vehicleis offices during opening hours. roadworthy, registration and changing ownership papers),1 employee in telemarketing (telephone During the interview, which lasted 21/2 hours. the contactwithcustomers andidentifying new managing director of the company outlinea the customers), 2 staff are involved in accounting. company's development, its current structure and organizations, its future plans and current achieve- Average turnover of the company is lire 25 billion ments in vocational training and future prospects. annually. Sales and turnover mirror general trends in the car market and, in particular, the market for Fiat training centre for the dealer network and Italian cars. authorized repair shops The dealer sold 1,600 new vehicles in 1987, This section on the Fiat customer service training 2,100 in 1989 and 1,800 in the current year. centre was drawn up on the basis of information collected during 2 interviews arranged by Dr.Recent history and development Oglietti (Manager for Development and Training strategy in Fiat Auto marketing and commercial section). The company was set up in 1962 and at that time was a Fiat agent. In 1968 the company moved to The first interview was conducted on 11.1.93 at its current premises which has 5,500 sq.m. of FAMI (Fiat Auto MarketingInstitute)in Noneuncovered space and 4,000 sq.m. of covered (11 km from Turin); the director of FAMI, Dr. buildings. Fava, Dr. Boella (manager of FAMI programmes and activities), Dr. Nicodemo (manager of Fiat Due to space constraints the company has not Isvor European projects) and Dr. Oglietti were been able to increase customers for repair work. It present. aims to offer its services to the dealer's customers rather than attract new customers. The second interview was at Fiat Auto After-sales Management on 12.1.92 in Corso GiamboneThe company aims to increase sales by offering a 33, Turin. The director of after-sales service, Mr. top-quality product, competitive in price, requiring Predieri, Mr. Borsarini (director of training and little maintenance and which can be repaired diagnosis systems), Dr. Nicodemo and Dr. Ogliet-quickly and for which a comprehensive after-sales to were present. service exists.

There is a need to guarantee the customer skilled 2. General description of the company servicing by staff capable of working on any part Bettonica and Gargan srl is based in Bollate, Viaor component of the vehicle from axle to tyres, Republica 41, a typical town in the Milan area, bodywork, mechanical, electrical or electronic easily accessible from both Turin and Milan by parts, checking exhaust fumes and noise levels. motorway. The company is a Fiat dealer and has a modern,In order to do so, vocational training is crucial. well-equipped repair shop which Fiat considers to be of excellent quality. It is the key to the knowledge base required for Bettonica and Gargan has a capital stock of lirenew technologies (safety, comfort, quality prod- 400 million. ucts and their innovations; technologies aimed at They sell new Fiat vehicles and second-handreducing noise and environmental pollution are vehicles of any make. particularly important and require that the repair shop possesses instruments capable of diagnosing The service and repair shop carries out tyre, faults and repairing them), advanced marketing electrical, mechanical and bodywork repairs. The and customer relation techniques, new means of 94 . service section can guarantee work on any type ofproduct presentation and service as well as

13 0 customer identification and company manage-17% have a primary school education and 60% ment. have a secondary school-leaving certificate, the remaining 23% have a more advanced qualifica- Structure of the company tion. The company is managed by the director who personally supervises the dealership's commercial Some 60% of the employees are involved in and financial progress. repair shop duties (repair and/or preparation of the vehicle), 37% have office or sales duties (sales Tasks and duties are allocated per sector: manager,secretary,7 salesstaff,telephone switchboard, employees) and there are 2 stores commercial management is controlled by theemployees. commercial director with a staff of 8; All staff are of Italian nationality, 3 are women, the after-sales service in both new and second- remainder being full-time employed males (with hand vehicles, and part sales which is man-the exception of 1 part-time employee). aged by a planning coordinator. This staff structure is indicative of the sector as a He is responsible for work scheduling before whole as already mentioned in the general report. the vehicle is delivered, vehicle preparation, registration and ownership change, supervis- Employment conditions are regulated by the ing payment and money transfers. The plan- national collective contract for sales in terms of ning coordinator is responsible for orders to salary, duties and working hours. There are no maintain the available vehicle fleet. He has 4 company benefits.

staff including 3 women, 1 with a part-time contract, who are in contact with Fiat (end ofRecruitment of employees is the responsibility of month sales targets, advertising campaigns, the director. incentives, etc.). Usually selection takes place on the basis of an the accounting sector handles the administra- interview with the candidates to ensure that they tive,accountingandtaxationsection;2 meet the necessary requirements. Duringthis employees make use of the services of an interview both school qualifications and previous external consultant; work experience are taken into account.

the repair shop section is tho responsibility of The labour market does not seem to contain a high the service manager who organizes bodywork, number of unemployed interested in working in repair work, spares. He is in direct contact with this sector. the customer using the repair shop. Young people entering this sector usually have Human resources sufficient schooling but lack practical experience The average age of the 38 employees is 37 years.or an apprenticeship.

Organizational chart

Car distributor

F- 1

Administration I Soles management After-soles service Car repair shop 1

1 L Manager Secondhandi [ Head of 2 Employees New cars + 8 sales staff cols department 2 employees+ Administrator 1 part-time + 1 employee

Testing

1 I 2

[Bodyshop1 Repair shop 1 95

; t1 3 1 REST COPY AVAILABLE J. 3. The provision of continuing During the 3-year period 1993-1995 FAMI has vocational training organized a series of courses (sales academy) for The dealer benefits from the courses offered byall "dealer managers" or individuals performing Fiat which are considered to satisfy his needs fullysimilar duties. both for training in sales and in servicing. The series comprises 5 days of courses in 1993, 5 A description of the training/skills upgradingdays in 1994 and 6 days in 1995. system offered by Fiat Auto is described below. The training courses are structured sequentially in General remarks the sense that participants must pass a test at the The Fiat training service for the dealer networkend of the first 5 days in order to proceed to the and authorized repair shops has two departments next course. They are not structured as a sequence offering different courses. of separate seminars but as a course in career development. a. FAMI b. Technical training centrefor the network, The training course is divided into 4 units: forming part of the Fiat after-sales management department. Unit 1: induction; Unit 2: basic training; The first department provides training in sales and Unit 3: knowledge consolidation; marketing techniques for the network, the second Unit 4: advanced training. providing training in technical areas linked to product innovation orthelaunching of newSee the description attached to the case study models. The department works in close collabora- (diagram 1). tion with the authorized Fiat repair shops. In addition to the "sales ac .amy" courses, as The aim of training is to offer the best pre- andfrom 1993 a series of courses for repair shop. after-sales service to the customer at a time when managers (after-sales academy) is planned which competition is becoming increasingly strong. aims to provide non-technical knowledge on ways of contacting customers. Fiat wants at least one A description of the activities of both departments employee from each dealership/repair shop to is given below. attend.

a. The structure of FAMI The courses are held at FAMI premises and comprise: FAMI was set up in 1991 and has a staff of 7 comprising: theoretical lessons in the classroom; simulation of real-life sales situations in a mock 1 director dealership; 1 programme and activities manager audio-visual and inter-active video; 2 secretaries role playing; 1 research and communications employee use of computer-based training and teaching 1 manager of Fiat internal courses software. 1 manager of dealer network courses The course culminates in a test to assess the The small number of staff employed by FAMI is participants' knowledge. attributabletothefactthatthedepartment commissionsexternalconsultancy companiesThe results of the finaltest are the basis for and Fiat ISOVAR (the company that handlesassessing suitability for other advanced courses. training for the entire trade group) to organizeA certificate is issued which is recognized within courses. the Fiat Group.

Only travel and subsistence expenses are borne General description of the training by thedealer who sendshissalesstaffor service employees on courses. The planning and course organization expenses are borne by Fiat Auto. FAMI courses coN..r: Trainee characteristics sales techniques, Trainees in FAMI courses are mac-4e up of staff marketing, within the Fiat Group lsome 1,700 dealers and customer relations. 500 non-dealers within the European territory) and trainees belonging to the Fiat dealer network FAMI does not have a catalogue of courses but (20,000 in Europe, consisting of dealer owner- 96 attempts to offer flexible training for specific tasks. ships, sales staff and repair shop managers). The

1 30 Fiat dealer network in Europe has some 4,600The effort Fiat Auto has put into creating this sales units. department demonstratesits commitment to a marketing model for the Fiat company. FAMI plays a fundamental role in reinforcing the partnership relationship between the manufacturer b. The Technical Training Centre (Fiat Auto After- and the dealer through the area sales manager or sales Sector) area manager, who play an important role in consolidating Fiat's relationship with its distribu-General tion network. The role of the car repair mechanic has changed significantly over the past few years on account of On account of the on-going dialogue within thethe introduction of new construction technologies, dealership network, they are in a position tothe use of electronic components and sophisti- understand training needs and coy municate these cated diagnostic equipment for fault identification. to the training department. On this account the Fiat Technical Training Centre has changed in two ways: Planning training activities Courses are designed at macro level by a steering traininghas been reinforced by continual committee which is made up of: updating A the range of courses offered to the authorized repair shop network; FAMI director Fiat Auto director at the same time, increasingly sophisticated Fiat Auto marketing director diagnostic equipment has been designed and commercial director (overseas) introducedfor useinboth the production Fiat Auto human resources director department and authorized repair shops for fault diagnosis and repair. The steering committee bases its decisions on a variety of information: During the interview, another area of activity emerged for the Fiat Technical Training Centre: strategic directives originating from the manu-that of satisfyingshortcomingsintrainingat facturer; national and regional level (vocational training needs of the distribution network (as alreadyschools and technical institutes) as these courses in underlined these emerge on account of the the centres are based on use of obsolete equip- relationship based on partnership and dia- ment and out-datedtraining programmes as logue between the manufacturer and the sales opposed to current requirements for technical network); evolution in the sector. needs expressed by the customer himself in questionnaires sent to customers and used to Structure of the Technical Training highlight any shortcomings inthe servicing Centre system (customer satisfaction index). The centre is located in Turin and carries out the following training activities: The results of these questionnaires are also used to supervise the dealer network. the planning of training; designing and organizing teaching materials; In the next unit, the steering committee submits its designing and developing diagnosticinstru- training requirements to the FAMI programme and ments; activities manager who proceeds, along with his the distribution of courses for Fiat trainers. team, to plan and define the courses (content, duration, pre-requisites, teaching aids, etc.). After the trainers have been trained, the majority of the courses are distributed through a network At this juncture trainers are chosen and they may covering the entire European territory and take come from the FAMI network company, they mayplace intraditional classrooms equipped with be company experts or trainers from training repair shops (see Figures 1 and 2). institutes; the courses are held in FAMI. There are some 70 trainers in Italy and 100 in It is crucial thi it FAMI, together with the steering Europe. committee, evaluates the course in the follow-up phase following completion. In specific cases, to resolve particular problems the trainer is sent directly to the repair shop and watched by staff (on-the-job training). Conclusions Before FAMI was set up, training in sales andIn estimating numbers trained annually it should marketing(dealer network) was provided by be remembered that the number of authorized Fiat ISOVAR and external training bodies. repair shops in Italy is approximately 8,000 with 97 133 an additional 8,000 elsewhere in Europe. Each Tests are given at the end of the courses and at the repair shop has an average of 20 potential users. end of the year incentive bonuses, such as a trips, and a variety of awards, are given. Although contractually the repair shop is linked to the dealer dnd not directly to the manufacturer, the A certificate is awarded at the end of each course Fiat Technical Training Centre has established a and this is recognized within the Fiat Group. direct relationship with the after-sales service without recourse to the dealer. Only travel and subsistence expenses are borne by the dealer/repair shop sending the employee. Expenses for planning and organizing the courses General description of the training are borne by Fiat After-sales. service The Technical Training Centre offers a range ofThe number of training course days offered to the courses which are continually updated. network annually is approximately 10-12.

In addition to basic courses there are courses to cover the launch of a new model or product. Planning training activities The training activities manager and his group Attendance at the latter is usually obligatory for at base their course design on the needs of the least one employee from a dealership/authorized service networks and on product and model repair shop. innovations.

The Turin training centre draws up a training planThe planning phase can be divided up as follows: based on the "new product" and targeted at the peripheral trainers. definition of training modules (e.g. when a new mo,e1 is launched the parts that will be used in Each area/territory sends a quarterly/half yearly training must be selected); programme toits network which includes the for every module during the previous unit, the training initiatives dictated by the market's specif- content, duration, objectives, teaching support, ic needs as well as new product courses. must be formulated; production of teaching materials; In addition to technical training courses Fiat also publicizing courses through the service net- offers a series of initiatives aimed at the employees work; in the service area in order to upgrade their skills: training of trainers; dissemination of courses nationwideinthe courses for repair shop managers; various training centres. behaviourial courses for receptionists; basic courses in electrics and electronics for car Conclusions electricians. The interviewer was favourably impressed by the efforts of and results achieved by the after-sales A great deal of attention is paid to the quality of sectorintermsof planning and organizing teaching materials used in the courses: diagnosticinstruments(whicharethenused during the courses) based on technologies as illustrated documentation on the topic; well as sophisticated systems (e.g. expert systems), traditional documentation; demonstrating the ability to follow the current computer-based training; evolutionary trend in the car repair sector. video cassettes; slides; 4' diagnostic simulators. 4. Training policies adopted by the company Inconjunction withexternalsuppliersithas Training is considered vitalif the company is to become normal practice to build fault simulators retainitspositioninthe market and remain identical to the electronic equipment. competitive with other companies in both sales and repair. When required, akitissupplied contcining assemblies and parts from new models directlyCompany requirements dictate which employees from the factory. attend courses and takes into account prior skills levels. The owner of the repair shop selects a course and plans the course attendance of his employeesThe interviewee considers that Fiat has always together with the after-sales manager for that areaguaranteed excellent training services and feels who, in turn,isin close contact with the Fiatno need to look elsewhere on the market for Technical Training Centre. training provision. 98

13.1 In recent years there has been a distinct increase The company guaranty es regular attendance for in special courses in vehicle marketing and after- its employees on training courses planned and sales. organized by bodies providing continuing training. Training is aimed at all the dealer's employees, whether they are technical, commercial or admin-Courses are organized frequently and are of a istrative. highlevel,providingastructuredsystemof continuing training. It is conceived ad hoc by the Participation is mandatorybutwouldseem manufacturer for his network and answers both the essential for the company and the employee ifneeds of the sales network and the technical work is to be carried out correctly. sections.

Attendance of one or more courses does not automatically confer upon the employee career6. Conclusions regarding continuing promotion. It is interesting from both the point ofvocational training view of occupational induction and the activeThe internal training system organized by the participation that the employee has shown in hismanufactureristheonlytrainingof which work. Bettonica and Gargan make use.

The attendance costs are borne by the dealer and The Fiat continuing training system is an example the courses are held during normal working hours.of good practice in the training field because training activities: The Fiat training body is directly responsible for planning the training and the training offer is used have a systematic and progressive character as a reference for organizing employee participa- (not standardized but targeting paths or career tion. progression);

The company does not have an internal depart- cover almost all the functions present in the car ment devoted to continuing vocational training distributor with the exception of administration issues nor to planning structured training activities. and human resource issues (there are training It interads with the training services offered by the courses on sales, marketing, customer rela- manufc cturer. tions, technical courses, on the full range of possible needs withparticularattentionto Mr. Barbieri, director, is responsible for managing technological innovation and electronics); training. guarantee paths of career development and Ithas not been possible to obtain accurate skills upgrading not only for skilled employees information on training costs for the dealer in the but also for management and network mana- past 5 years but this would seem to be quite gement (car distributor management and repair substantial shop foreman);

5. Assessment of the training concept pursue a highqualitypolicyincustomer It not been possible to obtain completed relations and encompass after-sales service questionnaires from the company. and behaviour training, both for sales employees and technical staff. Training aims to TFe company stated that it is unable to provide this inteCratethequestions and needs ofthe I,tformation as it has no records detailing the customer; courses each employee has attended during the Ivst 6 years. Moreover, staff turnover makes it are interactive with the car distributor offering impossible to retrieve the training records of each not only standard training paths but tailor- employee for that period. The company has sent made courses to cater for specific needs; employees from different departments onFiat training courses which are relevant to their jobs. employ advanced equipment and technologies They have not used the services of external (CBT, educational software, audio-visual equip- trainingbodies. Thisisnot because of their ment, video disks,etc.) and makes use of contract with the providers of continuing training modern andeffectivemethodologies(role but as a result of company policy which considers playing, situation simulation, etc.); that the training activities organized by Fiat meet their needs. provide systematic feedback.

Generally speaking, the company did not seem willing to supply information relating to employeesThe car distributor interviewed cooperates with the either at the interview in December or followingFiat continuing training system and ensures that the second request for questionnaires in February. personnel attend the courses regularly. 99 The incomplete questionnaires do not permit us to only staff subsistence allowances). The company make a precise check or an objective assessment has not reviewed other fro,- .igoffers on the of the extent to which this policy matches the real market. training needs of the company. Itcan be saidthat the company considers The case study carried out confirms that, in thecontinuing training to be a necessity because it absence of any alternative solution or structured is requested by the manufacturer (although there is continuing training system, the manufacturer is the no obligation) and because it assures competitive- only body to provide training and skills upgrading ness. Continuing training came to be regarded as for the network. a resource in the company's development strategy, as "added value" which calls for and merits The company commits itself to the manufacturer sufficientinvestment and a sound corporate without formulating a career development plan for strategy. employees (it has no training budget and finances

Organizational Chart Bettonica & Gargan SRL

Car distributor

I Sales Accountancy Repair shop Lmanagement

1 shop foreman 1 sales manager 1 accountant

1 secretary 1 accountant 2 warehouse employees

1 salesman 1 part-time accountant

1 external consultant After-sales Bodyshop

1 car exchange 4 employees employee 5 employees 1 new car employee 1 1 employee 1 new car employee 2 test drivers 1 experienced car emplcyee 1 secretary

100 13t Training/advancement path of salesman

Assessment New salesmen "How to conduct a sales call"

Present salesmen Unit "1" "How to get a customer"

Assessment

"How to keep a customer" -D Follow-up

Phase "3" "How to sell a company"

REST COPY AVAILABLE

137 101 e I PART 3:

CONCLUSIONS

1.State of theeconomy, employment and training 2. Standard and betterpractice (in relation to thecase studies) 3.Problems 4. Current state ofemployment and future prospects:need for training and quality training

5.Open issues

6.Report on the meetingwith the social partners

138 1. STATE OF THE ECONOMY, EMPLOYMENT AND TRAINING

In 19'1 there was a gradual but obvious slump in larly for neighbouring countries (Germany) but economicactivity,exacerbatedin1992 by obviously for the Italian market as well. additionalfactorssuchasinflationand the subsequent decrease in family purchasing c.At European level, an increase is envisaged in power, a general increaseintaxation,high the number of vehicles per capita from the interest rates and a loss of trust in the economic current figure of less than 400 vehicles per system which led to a postponement in investment 1,000 inhabitants to 430-450 per 1,000 and a reduction in disposable incomes. inhabitants i i Western Europe, which signifies an addition )1 demand of 15 million new Over recent months continuedturbulencein vehicles per year.InItaly the number of exchange markets and the crisis of the lire has vehicles per capita is approximately 450 per aggravated thesituation and highlighted the 1,000 inhabitants, thus the latter effect will serious nature of structural deficienciesinthe have little direct significance for the internal national economy as well as public debt. market although it would be relevant for the wider European market. Today, remedies are being sought that would revive a stagnating economy and avert the risk of d.Fiat has announced an investment programme inflation but which would, at the same, safeguard for the period 1992-1996 of lire 47,000 employment where estimates put some 400,000 million (27,000 million of thisfor the car jobs at risk. The government will probably try and sector)to maximize levels of efficiency,to employ a new method to balance payments achieve higher levels of innovation and greater (balance of payments at the end of 1992 showed product quality and tointroduce 18 new a deficit of more than lire 32,000 billion). models with the opening of the new, modern factory at Lucano. All of these factors, together with current trends in the national motor vehicle industry to relocate to Finally, with regard to training, Italy isin a the south, to new ultra-modern highly automated totally different situation compared to the rest factories (with the subsequent need for rationaliza- of Europe as it has no continuing vocational tion in the sector and the component industry in training system. the north), could lead to pessimistic prospects for This would seem particularly disquieting today employment in the motor vehicle industry. as forecasts indicate that in the near future there will be a continued decrease inthe In spite of this, however, there is reason to believe number of young people entering the labour that in Italy the future of the motor vehicle industry market resulting in an overall increase in the could experience a period of relative market average age of the workforce. stability and stable employment,ifnot inthe As human resources already present in com- production sector at least in sales and service. panies are the real human capital to be valued andqualified,goodandcomprehensive This idea is supported by the following assess- continuing training will becomeand in many ments: ways has already becomecrucial.

a.In Italy vehicles on the road have an average In the specific sector under review it should be lifeof approximately 14 years,whichis stressed that continuing trends in construction significantly higher thaninother European technologies and the increasingly widespread countries. use of electronic components provokes training needs for a mechanic whose job profileis Of all the vehicles registered at the end of becoming increasingly less that of a traditional 1991, 33% were more than 10 years old mechanic/repair mechanic and more that of a while 14% were more than 13 years old. specialist in the use of sophisticated diagnostic equipment for fault finding. Following the introduction of a new highway code which envisages MOT tests 4 years after In the course of research, the distinct lack of initialregistration and then every 2 years, initial vocational training to produce occupa- many vehicles will be withdrawn as they no tional profiles capable of responding to these longer satisfy safety regulations. needs (obsolete training programmes which have not kept pace with the rapid evolution in ANFIA assumes that this, together with the the sector, a lack of adequate equipment) was effectofcatalyticconverters, may create noted as were the constraints and typical lack demand for some 150,000 200,000 new of training in the state system. vehiclesthis decade (from "Motor vehicle figures 1992"). This gap is covered in part by courses provided by the manufacturer and, to a lesser degree, by b. Liberalization in Eastern Europe has widened courses organized by the associations in the 103 the car market in Europe significantly, particu- various sectors. 139 2. STANDARD AND BETTER PRACTICE

Vocational training currently offered by companies work interruption and to allow these employees to contacted is of average standard and closer to acquire the necessary behaviourial skills which examples of better practice. are considered crucial.

As can be seen from the case studies, training isGenerally the "quality philosophy" would seem provided almost exclusively by the manufacturer to be of more importance than in the past and or itsItalian branch, in the case of a foreign this is relevant to all types of behaviour, not only manufacturer. insales and customer service but also in the repair shop. It should be stressed, as a positive element of training in recent years, that the training structure, in addition to the traditional technical topics, hasRelations between manufacturer and developed other subjects considered to be ofrepair shop/dealer particular use for overall company management. Manufacturer and dealer collaborate closely.

Such topics are inherent to company manage- The manufacturerisresponsibleforproduct ment, planning, marketing and telemarketing, publicity campaigns and managing commercial computing and its use in the company context, policythroughpromotionaloffers,discounts, customer relations, behaviour course, and prob- incentive bonuses and increasingly convincing lemsolving(theselasttopics are becoming quality guarantees. increasingly relevant in view of the changing relationship with the customer which is no longerThe manufacturer informsthedealerofthe limited to sales but to creating a trusting relation- innovations introduced and provides training and ship between customer and dealer). updating for employees. The manufacturer collates the training needs and provides solutions. Work organization Work organization, depending on the size of the If the manufacturer has a good commercial policy, company, is moving in the direction of integrating the dealer usually follows suit. knowledge and tasks. The relationship between the repair shop and the The new car product requires less maintenancedealer is usually characterized by a high level of and less traditional type repair work, the compo- trust and collaboration. nents last longer and are more likelyto be replaced than repaired. This is true both for theThe dealer is the repair shop's source of income. mechanics section and for bodywork. Electronics has also become a fundamental part of the car. Th,. car repair mechanic must guarantee high- quality andefficientservicetothedealer's Many traditional specializations (carburettor, cool- customers. ingsystem, bodywork and,to some extent, electrics)are progressivelylosingsignificance while a new job profile is emerging in the repairCustomer relations shop, encompassing a larger variety of skills notCustomer relations are of great importance when based on traditional mechanical knowledge butit comes to interpreting commercial trends and the on electronic-type skills. dealer's organizational model.

Itis possible to talk of "mechatronics" as in the Today, there is a tendency to regard the customer case of the metal processingmechanics industry, no longer as someone who avail. himself of bearing in mind the obvious differences. sporadic service (the purchase of a car) but as an individual to whom a complete range of services Although irreplaceable specializations exist (e.g. must be guaranteed (computing, sales, servicing, bodywork) thereis a tendency to widen and personalized solution of complex problems con- integrate the employee's knowledge to includenected to sales, service and consultancy, with diagnostic skills with sophisticated equipment andregard as to how the vehicle functions and the skills connected to replacing both mechanical and future requirements of the vehicle over a long electronic components. period of time).

A trend towards specializationis inevitable in There is a need to establish a sound relationship some sections in the larger repair shops and based on trust and, to achieve this, high-quality dealerships, particularly for tasks in the commer- servicemust be guaranteed toback-up the cial sector, sales, customer relations, as well as in technical skills of the employees and to promul- administration and management. gate a company philosophy which sees the customer as the real added value and the sale as Customer relations is normally handled only by an event which naturally follows on from a trusting 104 suitably qualified employeqin "order to avoid relationship which has been built up.

140 Control or freedom of training At present, there is no legislation making provision for continuing training.

The system of national regulation for training (Law 845), which requires reform, would seem obsolete and there is a growing need for specific laws for continuing training which take into account the changing trendsinthe workforce mentioned previously.

141 105 3. PROBLEMS

Employment practice Needs, demands, requirements of the In the companies contacted, almost all of whichemployer and the worker were family-run,the method usedtorecruit Today's employers seem unwilling to make new personnel is still the traditional interview between investments and are anxious to reduce company the owner or administrator (where dealing with a costs without ompromising efficiency and to large company) and the applicant to assess the optimisetheeconomicstructureand human applicant's abilities and the degree to which they resources in the company. satisfy the company's needs. There isgeneralcomplaintaboutexcessive Particular academic qualifications are oflittle bureaucracy and taxation pressure. relevance. With regard to training, interviewees showed a Such a recruitment policy would seem destined to generally goodlevelofunderstandingand change with the increasing importance of electron-seemed to have grasped the importance of ics,computing and automationinthe motorcontinuing training. vehicle and motor vehicle component fields. However, they continue to complain about high Thiswilllead to a preference for applicants costs, the absence of relevant legislation and the holding some form of academic and/or occupa- difficulties training poses for small companies in tional qualification or having some basic knowl-view of the rigidity of training (time, space, place) edge in this area. Today, the main requirement for compared to the company's needs and work employment is work experience. rhythm.

For employees working in the car repair sector theEmployees expressed a desireforvocational national collective work contract for metal proces- training. They would like to seeitin a more sing/mechanical workersisapplicable. Someconsistent form and,ifpossible, on the work dealers apply this contract to their employees in premises. the repair shops although they normally apply the collective contract for the commercial sector. Training is often seen as essential to safeguard a job and to progress in a career. The employment of young people is encouraged by certain types of contract such as apprenticeships and work and training contracts. Their aim is Economic problems to train young people without any occupationalEconomic problems are linkedto the current qualifications while reducing, for a limited period, economic crisis, to increased management costs, costs to the company. to increasing taxation pressure and to the high interest rates which hamper investment even when Contrasts/contradictions between the market conditions are favourable. social groups No particular contrasts have been noted between the social organizations although it is obvious that Problems with the six dimensions of each represent and protect interests which, at social dialogue times, may conflict. Today, a good practical knowledge of continuing training is considered indispensable. The role of the social partners may be particularly relevant when it comes to increasing awareness of Despite this, a clear training strategy for each continuing training topics and when trying toemployee would seem to be rare in companies identify ways to make provision for this. and often itis difficult to identify, even in larger companies, budgetary provisions and a training Both the last contract for the tertiary and services plan. sector and a recent inter-confederation agreement for the crafts tradesman sector and the experience Concomitant with increasing understanding and of bilateral bodies inecate development of animp oving continuing training practice, there are interesting form of collaboration between the still -amizational-type delays which are difficult social partners in spite of their various roles. It is to ignore in view of the national context and the aimed at overcoming the training lag and atlack of sufficient legal provision. experimenting with jointly formulated initiatives. Trainingis aimed at all employees, technical, Working hours commercial and sales staff. The contract stipulates 40 working hours per week.

106 '`142 As tradition dictates, the most common form ofactivities offered by the manufacturer,is more r;;Y:,fV4c.:VA trainingis of the technical type but behaviour complex and difficult. Given the current situation training is becoming increasingly important as is, in Italy there is no structured continuing vocational to a lesser extent, company management training. training system to cater for their needs.

Participation in courses is voluntary and encour-The socialpartners have shown considerable aged for career promotion. understanding of the situation and various experiments are in progress in order to set up innovative Planning of training activities is the prerogative of courses for training and to accelerate oational the manufacturer, who offers a wide range of provision in this area. high-quality training and the dealer is linked to this offer in order to identify training needs. Itisdifficult to assess the costs of continuing training as, in the repair shops, this activity is still In certain instances the company looks to the free unplanned and sporadic while dealers seem to markettosupplementtrainingprovisionfor have no suitable cost-estimating and planning employees. policy.

The situation of the independent repair shops, which may not make use of the continuing training

4. CURRENT STATE OF EMPLOYMENT AND FUTURE PROSPECTS: NEED FOR TRAINING AND QUALITY TRAINING

In all probability the employment market in thisThe current quality of training would seem to be sector will undergo modification following enact- high although thereis room for improvement. ment of Law 122 which will lead to the elimination Continuing vocational training must be absorbed of smaller companies unable to satisfy the new into the company philosophy not just as a working requirements and, at the same time, the expansiontool with normal management costs but as an of larger companies. indispensable resource for the development of the company itself. We have already noted the growing need for vocational training. Together with the traditional In the motor vehicle repair sector, bearing in mind demand for technical training there is an increas- that vehicle MOTs are soon to passed on to the ing demand for training in management (com- repair shops, training must guarantee that employ- pany management,costanalysis,investment ees are suitably qualified. It will be their task to planning on thebasis of demand, typesof guarantee vehicle safety. It is evident that quality markets, etc.) and for behaviourial type courses. training will become increasingly sought after.

107 143 1.1 5. OPEN ISSUES

There is a lack of a continuing training system in ment and in the management control sector, new Italy. Only introduction of relevant legislation, marketing techniques and new consumer relation already enforced in other countries, and a system concepts. which supports companies (particularly for small and medium-sized enterprises) will enable this to The need toidentify more flexible andless be overcome. restrictive training methods and procedures in terms of times and locations for small companies is This would provide an important stimulus for the an important factor. Alternance training,self- training market with a subsequent increase in the training, open and distance training, and the use quality of training offered. of multi-media technologies could offer training possibilities which are more flexible and which The need for reformin the secondary school encourage participation. system and a link between vocational training during the transitional phase between school and Finally, a social problem related to enactment of work, to guarantee a better basic knowledge of Law 122 could imply, in the near future, significant technical subjects and electronics, is evident. changes in the sector on account of the disap- pearance of many small companies unable to There is a need to encourage trends in the offer of adapt to new legislation and could this provoke continuing training. This is currently the domain of unemployment. the manufacturers. Trends intraining must be consistent with trends in the sector, both in the Training and vocational re-training would seem to technicalfield(diagnostics,electronics,safety, be an important strategy to guarantee employment eco-compatibility, etc.) and in company manage-and to save jobs.

108 1 41 6. REPORT ON THE MEETING WITH THE SOCIAL PARTNERS

As the social partners were available to cooperate Representatives of the social partners provided the inthisstudy,two meetings were held and necessary data to complete the final report and to additional contacts were made by telephone and help interpret data and sectoral trends. fax. Following further consultations with the representa- First meeting tives on 22 February, 1993, the chairman drew The first meeting on 5 February, 1993, in Rome at up the final report. ISFOL was attended by UILM-UIL, FILCAMS-CGIL, FISASCAT-CISL, Confartigianato, CNA (National Thisreport has been adopted by thesocial Handicrafts Confederation) and its national train-partners, at least those who were present and ing body, ECIPA-CNA. took part in its preparation.

The main employer associations also participated: In general, employers have pointed to the absence Federairpa (Confederation of Car Dealers) andof legislation that supports continuing training, the UNRAE. high cost of training courses, insufficient opportunities, rigidity in time, space and place of training In the course of the meeting the final report of the in relation to technical requirements and work first draft was assessed and several issues raised: rhythms. the need to provide more up-to-date information, to interpret data in more detail, to expand upon These difficulties, together with a growing aware- the issues concerning the social dialogue,to ness of the central importance of continuing introduce more specific proposals for continuingtraining, are stressed particularly by independent training. repair shops as dealers and authorized companies can rely on theservices of the parent The social partners who participated and who had company or manufacturer. been consulted previously but had made no detailed contribution, favoured greater involve-Workers andtradeunionassociationsalso ment and more practical cooperation. pointed to the absence of legislation and lack of economic support for continuing training. The meeting concluded with the agreement that all participants would be consulted separately byThey complained about the low level of training in CSEA. No further meeting was planned. independentrepairshopsalthoughnational negotiations among the socialpartners allow Second meeting them to take part in preparing vocational training After sending material and documentation, some programmes in parent companies (which dealers of the social partners concerned were consulted and authorized companies may take advantage on 22 February, 1993, at their head office. of) and to assess the findings.

One representative of the trade unions and one In certain instances experiments are being carried representative of the sector associations wereout to improve the training offer and the quality of interviewed. Other partners were consulted by training as well as to increase the number of telephone. employees who participate in training courses.

109 1415 CEDEFOP European Centre for the Development of Vocational Training

Training in the motor vehicle repair and sales sector in Italy (FORCE programme)

Marco Volonta

Luxembourg: Office for Official Publications of the European Communities

1994 109 pp.21.0 x29.7 cm

ISBN 92-826-8168-8

Price (excluding VAT) in Luxembourg: ECU 8

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