DOCUMENT RESUME

ED 355 894 HE 026 337

AUTHOR Haugland, Marlene; And Others TITLE The Bottom Line. INSTITUTION Workforce Quality CPuncil. PUB DATE Jan 93 NOTE 28p. PUB TYPE Reports Evaluative/Feasibility (142) Viewpoints (Opinion/Position Papers, Essays, etc.)(120)

EDRS PRICE MF01/PCO2 Plus Postage. DESCRIPTORS Communications; Delivery Systems; Economic Factors; Education Work Relationship; Elementary Secondary Education; Futures (of Society); Higher Education; *Labor Force; *Long Range Planning; Needs Assessment; Private Sector; Public Sector; School Business Relationship; *State Legislation; State Programs IDENTIFIERS *Oregon

ABSTRACT This document evaluates the present needs and future shape of the Oregon workforce and recommends strategies for both public and private sectors and for communication. The first section provides a background to the issues of the state's changing economy by describing global and national economic changes and recent state legislative responses, and giving an analysis of the beneficiaries of change. The report goes on to describe the work of the Oregon Workforce Quality Council and its three-part (public, private, and communication) strategy. Three final sections address each of these areas. The goals of the public sector strategy are: Oregon schools with world class academic standards, smooth transition from school to work, training and placement aimed at high-wage jobs, and employers accessing a full range of business services. The vision for the private sector includes high-skill jobs in all areas of the state, high-performance firms, high level investment, cooperation between labor, business, and education, and expansion of the apprenticeship model in new industries and jobs. The communication vision entails taking a long-range view of expectations, engaging citizens in an effort to change the way business is done, and demonstrating that bottom-up solutions work best. An appendix gives bench mark priorities in tabular form, a list of regional workforce committees, and an annotated list of public sector partners. (Contains 16 references.) (JB)

*********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. *********************************************************************** HE

OWL UUN W01-21,:f ORCE QUALITY CLJUNCIL

JANUARY1 9 9 3

a

BEST COPY AVAIL

OF EDUCATION U.S. DEPARTMENTResearch and Improvement ()Ike of Educahonat INFORMATION EDUCATIONAL. RESOURCES CENTER (ERIC) been reproduCedas his document has of orgamtatron received from The person orrornating A to improve have been made THE r MInca changes rePrOduction duahly opinions slated inthis docu Points of view or oltiral men! do notneCesSarrly represent BOTTOM OERI position ofpolicy

"PERMISSION TO REPRODUCETHIS MATERIAL HAS BEENGRANTED BY Oregon Educational LINE Coordinating Comm

10 THE EDUCATIONALRESOURCES 2 INFORMATION CENTER (ERICI." .-111111Elms. OREGON WORKFORCE QUALITY 001-.!NCIL

225 WINTER STREET NE SALEM, OR 97310 (503) 378-3921

Vern Ryles, Jr., Chair Andrea Dobson, Vice-Chair Thomas Bartlett Kevin Concannon Diane Davidson Jon Egge Kurt Engeistad Margaret Hal lock Robert Johnson Wally Mehrens Morton Michelson Dale Parnell Steve Petersen Jennie Portis Larry Sanchez Mary Spilde Beverly Stein Suzan Turley Marilynne Keyser, ex officio

Marilyn Johnston Administrator, 1991-92

Camille Preus-Braly Administrator, 1993 3 CIPr!!1,4,1,1gli "AP

TABLE OF CONTENTS

THE CALL TO COMPETE The Changing Oregon Economy 1 Getting the Competitive Edge 2 The Legislative Response 3 Who Benefits 4 BUILDING THE FOUNDATION Oregon Workforce Quality Council How We Approached Our Work 6 PUBLIC SECTOR STRATEGY al . I ' Vision for 2010 9 9 .N i Legislative Directives What We Have Accomplished 10 Where We Are Going 12 4 PRIVATE SECTOR STRATEGY Vision for 2010 15 Legislative Directives 15 What We Have Accomplished 16 Where We Are Going 17

C COMMUNICATION STRATEGY Vision for 2010 19 Legislative Directives 19 What We Have Accomplished 20 Where We Are Going 20

APPENDIX Oregon Benchmark Priorities 22 Regional Workforce Quality Committees 23 Public Sector Partners 24 References 26 Most Oregonians have come face-to-face with the reality of our state's changing economy, and they are not comfortable with what they see. Oregonians still remember the painful experience of the THE CHANGING long and deep recession in the early 1980s. Nearly 100,000 OREGON jobs, many of them in the high wage forest products ECONOMYindustry, were lost.

The purchasing power of many Oregon families declined as per capita income fell sharplybelow the national average in 1979. Despite the creation of300,000 new jobs during the late 1980s, the income gap has not closed. The job growth has been greatest in the trade and service sectors where wages and benefits have not kept pacewith the manufacturing sector.

REAL PER CAPITA PERSONAL INCOME 1971-1997

$2.

$2 5 Project,d U.S.

5

5 : Oregon THE CALL I:

T $1?;

$1) r i i i t il I I COMPETE 1971 1974 1977 1980 1983 1986 1991 1997

Source: State of Oregon Employment Division

The very foundation of Oregon's economy is being shaken by the globalization of economic competition, the increas- ing importance of computer technology and communica- tions and the shift from high-wage blue-collar jobs to professional, technical and managerial jobs.

During the decade of the 1990s, 92 percent of all new jobs will be in sales, management, professional, technical and service occupations.

5

4 .J

0

OREGON PERCENT JOB GROWTH than they have today, and an 1990-2000 equal number believe that front-line workers will have

25 more responsibility in 24 25 ensuring that quality. After 22 21 concern for their families, cn 20 - Oregonians said that job .n opportunities and economic - 15 security was their highest Z 15 priority, followed by educa- "-c5 12 a) tion and skill development. co 10 - Forty-five percent think that a) c..) a) Oregon is doing a bad or a.5 5 3 somewhat bad job in ensuring these values for our citizens. 0 I I 1 1 1 ServiceProfes-Manage-Sales ClericalPrecision Ag/ Operators sional/ menu & CraftForestry/Fab./ Technical Admin. Workers Laborers Source: State of Oregon Employment Division GETTING THE COMPETITIVE EDGE While only 76 percent of school is connected to what available jobs, displacing Oregon high school students work they will do when they existing workers whose skills To take our place in today's graduate, the jobs of the complete their formal have not been upgraded. highly competitive global future will demand significant education. marketplace, Oregon must education beyond high There is a growing realization create a healthier business school. Most professional, However, focusing on schools that these economic shifts climate, encourage economic technical and managerial jobs is only part of the equation. will require a dramatic diversification, and reinvent will require a two-year or Eighty-five percent of the change in Oregon's workforce the way our schools teach. four-year college degree. workforce in the year 2000 and the way companies the way our companies Even sales jobs will require at and 45 percent of the work- organize work and use the organize work and the way least one year of additional force in 2010 are already skills of front-line workers. our employment and training training. For those jobs employed today. The existing programs serve our economic where a high school diploma skills of those workers will In a recent survey conducted objectives. Oregon stands on may be all that is required, it not be enough to ensure their by the Oregon Business the threshold of the 21st must be more than a certifi- success in the jobs of the Council, Oregonians con- century facing a crucial cate of attendance. future. firmed their grasp of the economic choice. changing economy and its Oregon's efforts to reform our The mix of who gets the jobs implications for them and We can choose to respond to educatioi d system must be in the year 2000 may change. their families. Sixty-five global -conomic competition accompanied by a revolution New entrants, if they possess percent of Oregonians believe and technological changes by in the way we attract our the skills needed, will have a that to produce higher quality adopting a low-skills, low- young people to learning and competitive advantage and products, workers will need wages approach that keeps ensure that what they learn in may grab a larger share of the more skills in6he next decade production costs down by

2 S

The Legislature created the moving jobs overseas, THE substituting technology for Oregon Workforce Quality workers, contracting out or LEGISLATIVE Council to bring government, using part-time, temporary RESPONSE business and labor leaders workers. together to: The 1991 Legislature, in Or, we can choose a strategy passing the Oregon Work- Raise business and labor that increases productivity force Quality Act, confirmed awareness of and commitment and assures quality through a the importance of a better to restructuring our schools, highly-skilled, flexible educated and prepared improving existing worker workforce using competitive workforce as a critical skills and changing business technology. This high-skills, economic development management practices to keep high-wages approach puts a strategy. Building on the work Oregon economically competi- premium on quality crafts- of Governor tive; manship, continuous im- and the Oregon Progress

provement and worker Board, the Legislature and 1111 Support restructuring of OREGON WILL involvement. newly-elected Governor the public school system to HAVE THE BEST embraced raise the level of student EDUCATED AND Oregon can ignore globai this vision: Oregon will have achievement; PREPARED WORK- economic competition at our the best educated and FORCE IN THE peril. Inaction will mean a prepared workforce in the Promote professional NATION BY THE workforce plagued with low nation by the year 2000 and a technical education and YEAR 200 AND A skills and under use of high workforce equal to any in the training programs that lead to WORKFORCE EQUAL skills that exist; a lack of world by 2010. high-wage jobs; . \O ANY IN THE worker confidence in Oregon WEHLOBY2010. as a place to work; and a The Legislature identified the I Provide cost-effective continuing necessity for ,eed to use taxpayers' dollars coordination and accountabil- workers to convert family wisely in providing education ity of existing employment and hours into wcrk hours to and training for Oregonians, training programs; and meet family income needs while recognizing that and avoid dependency on government can not and Develop strategies for government programs. should not do it alone. improving the level of business Although the public sector investment in worker training. Oregon has chosen the high- provides most of the formal skills, high-wages strategy. education for our youth and Recognizing that state-level many job training and goals and policies must be retraining programs for implemented in local commu- unemployed Oregonians, nities to be successful, the most adult workers must Legislature called for the depend upon their employers creation of regional workforce quality committees (regional *ft to upgrade their skills. Very few employers provide such committees) throughout the opportunities. state. Led by tile private sector, the regional commit- tees will help ensure that 7 3 strategies to improve each in dynamic and changing workers, and a large pool of region's workforce are work environments. skilled workers from which to customer driven, cost choose. effective, and responsive to The foundation is now in unique regional needs. place to pursue the goal of FOR WORKERS, personal and having a nationally and family self-sufficiency, The 1991 Legislature also internationally competitive increased self-esteem, passed Oregon's Educational workforce in Oregon. Much increased wages and benefits, Act for the 21st Century, remains to be done. A major and increased job mobility. advocating a fundamental effort must be made to restructuring of Oregon's increase the commitment of FOR OREGON, a competitive elementary and secondary employers to upgrade the workforce, increased per schools. Based on the belief skills of those already at capita income, less depen- that all students can learn work. dency on government, a when offered appropriate reputation for quality, and a opportunities, the Legislature In addition, there is consider- greater return on taxpayers' called on schools to hold able evidence that the way investments in education and --. - = it themselves and their students work is organized is just as training programs. to world class standards. important to worker produc-

Mr Students will be expected to tivity and satisfaction as the Unparalleled collaboration is earn a certificate of initial workers' skill levels. Work needed among educators, mastery at the end of 10th must be reorganized to employers, business inves- grade and a certificate of empower front-line workers tors, workers and government advanced mastery in one of and use leading-edge technol- leaders to achieve the full six broad occupational ogy to increase productivity benefits available to us. The categories within the next and keep Oregon businesses most successful workforce two or three years. A variety competitive. development strategies will of work-place learning fall short of our goals if better experiences will allow jobs are unavailable or if students to apply what they betters jobs come at the learn. expense of the quality of life WHO BENEFITS Oregonians have chosen for Students leaving Oregon's themselves. high schools of the future will If the initial spirit of collabora- be well prepared for an entry- tion and broad ownership of Your action is needed now. level job, an apprenticeship the vision by both the private Everyone has a role in program, community college and public sectors continues changing Oregon's training, or a college or and grows, Oregon could bottom line. university education. Be- approach and achieve: cause the average worker may change careers four to FOR BUSINESS, reduced six times, all options must initial and retraining costs, provide students with the increased productivity skills to apply what they learn through more highly trained 8 4 a

The Workforce Quality Council's membership is purposeful. The majority of the members are from the private sector because business and labor must be in a position to take the lead in achieving Oregon's vision for a high quality workforce. Top level state OREGON officials who oversee workforce agencies are represented WORKFORCEto ensure they have an ownership of and commitment to QUALITYthe strategies the Council develops. COUNCIL The Council is made up of 21 members. The governor appoints 14 members who represent:

Business (5)

Labor and community-based organizations (5)

State Legislature (1)

Local elected official (1)

Local education (1) / General public (1) It The remaining seven serve because of the positions they hold:

Gcvernor or designee ex officio

Chancellor BUILDING State System of Higher Education THE Director Department of Human Resources FOUNDATION Commissioner Office of Community College Services

Superintendent of Public Instruction Department of Education

Director Economic Development Department

Commissioner Bureau of Labor and Industries

5 9 The Oregon Workforce To coordinate the delivery Quality Act which created the of all education, training, HOW WE Council charged it with employment, apprenticeship APPROACHED achieving these six goals: and related programs to OUR WORK eliminate needless duplica- To provide comprehensive tion and assure the efficient In developing a work plan for education and training and effective provision of the first 18 months of opera- programs, especially profes- these services; tions, the Council reviewed sional and technical pro- the Oregon Progress Board's grams, for students and To ensure the equitable benchmarks and the legisla- workers that equal the distribution of quality tive directives included in highest international stan- education, training and three related pieces of dards of achievement; employment services state- workforce legislation passed wide, especially to distressed by the 1991 LegislatureThe To promote continuous and rural areas, and areas Oregon Workforce Quality Act public and private investment serving the economically (HB 3133), The Educational

le in improved management disadvantaged citizens of this Act for the 21st Century (HB practices, competitive state; and 3565) and The Workforce production processes and 2000 Act (HB 3474). The worker training; To achieve the bench- Council selected 10 bench- marks established by the marks related to education To develop the capacity of Oregon Progress Board that and training to focus our - and provide significant relate to education and efforts. These benchmarks opportunity for business and training. are listed in the appendix of labor to direct the develop- this report. ment and delivery of state education and training policy, Our workplan unfolded

II programs and standards; around three strategies:

A public sector strategy

A private sector strategy

A communication strategy

10

6 most of the workforce of the The charges to the Council It was clear that most of the future is now at work. We created big shoes to fill over legislative directives, particu- cannot have a world-class our anticipated six-year life. larly those that had a short- workforce without signifi- We have walked in those term deadline, called for a cantly upgrading the skills of shoes for 15 monthssince focus on state and federal the current workforce. our first meeting in October education and training 1991. We have often felt programs. Legislative There were no legislative daunted by the tasks we have concern over the quality of directives that specifically before us. We have made a public education and frustra- addressed the need for a respectable start. We have tion over a seemingly discon- communication strategy. Yet, no illusions that our goals can nected jumble of programs without ownership from be achieved quickly. The without adequate evaluative everyone around the state, strategies discussed in this data required the Council to the public and private sector report are the foundation of a direct our primary attention strategies will be impossible long-range plan that is still to our public sector strategy. to achieve. being developed by the THE WORKFORCE Council, working with QUALITY COUNCIL S Although legislative directives The level of change required regional committees. There is OBJECTIVE IS were fewer and more long- to move Oregon's workforce still much to be done. NOT SIMPLY term, the need for a private to the best educated and ANOTHER STUDY sector strategy that involves prepared in the nation by the For each strategy, we de- OR ANOTHER business and labor is compel- year 2000 and one equal to scribe our vision for the year REPORT: ling. First, Oregon will not any in the world by 2010 is so 2010, identify legislative IT IS ANOTHER achieve significant education big it will require a communi- directives, share what we DIRECTION. reform, especially the cation strategy that touches have accomplished, and creation of structured work parents, schools, businesses, explain where we are going in r L1,1,(11,1 experience sites for students, government agencies, the next two years. without the active participa- workers and community tion and support of business leaders. This job cannot be and labor. Education and done by the Workforce training in all publicly funded Quality Council alone. It will programs must be linked require renewed gubernato- closely to the private sector if rial support, continued the programs are to be legislative commitment and a effective. But the more dynamic partnership of important 'reason for private government, education, sector involvement is that business and labor.

1 7 VISION FOR0ur vision for the public sectorincludes: 2010

Students leaving Oregon schools having achieved academic standards benchmarked to the highest in the world; - \ Young people transitioning smoothly from school into adult life roles of citizenship, work and continuing educa- tion; Students and workers easily accessing an integrated, customer-driven system and receiving education, training and job placement services that lead to high-wage jobs; and Employers easily accessing a full range of business services, including job placement, economic development assistance and customized training for their employees.

LEGISLATIVE Legislation enacted in 1991 included 12 specific assign- ments for the Council related to the public sector.The ID I R E C T IVES following list captures the essence of these directives:

PUBLIC Maintain close ties with agencies implementing SECTOR Oregon's Educational Act for the 21st Century (HB 3133, Sec. 6 (1), (2), HB 3474, Sec. 3 (1) and FIB 3565, Sec. 22, 23, STRATEGY 24, 28, 38 and 39); Create regional committees to pull delivery of training and employment services into a set of coordinated local strategies (HB 3133, Sec. 6 (5), Sec. 7); I Recommend a more effective organizationof state workforce programs (HB 3133, Sec. 16); Approve operating plans and review budgets of state workforce programs (HB 3133, Sec. 9 (1), (2)); Establish state accluntability for workforce programs (HR 3133, Sec. 9 (3), (4), Sec. 13); Pull state workforce programs, including those funded with lottery dollars, into a single investment strategy (HB 3133, Sec. 10, HB 3474, Sec. 4 (3)); and Merge separate Councils required by federal law into the Workforce Quality Council (HB 3133, Sec. 12, Sec.13). 12 9 WHAT Here's what we have accom- IIIAssigned oversight of Oregon is ahead of many WE HAVE plished with our public sector labor market, occupational states because we have ACCOMPLISHED strategy during our first year. supply and demand, and approached our walk into the career information and 21st Century systemically GETTING ORGANIZED evaluation of workforce establishing Oregon Bench- The Council's learning curve, programs to a standing marks to measure the state's though steep, was helped by committee of the Council; progress, creating the the efforts of staff from twelve and Workforce Quality Council different workforce agencies and its regional committee who spent several months Developed an 18-month structure to improve work- prior to the appointment and work plan to accomplish as force quality and embracing confirmation of Council much of the legislative fundamental restructuring of members developing orienta- directives as possible by the our schools. tion materials and participat- 1993 Legislative Session. ing in Total Quality Manage- REGIONAL ment training. Because of its At the Council's request, the WORKFORCE QUALITY small staff, the Council must Governor has introduced a COMMITTEES rely heavily on the work of bill in the 1993 Legislature to Working with local represen- cross-functional teams made modify the Council's member- tatives of school districts, up of staff from all workforce ship in accordance with community colleges, Private agencies. changes in federal law Industry Councils, the (SB 120). Employment Service and Within its first few months, Adult and Family Services, the the Council had: Here's what we learned about Council established 15 the challenges facing us: regional committees to Elected a business integrate planning and

representative as its chair, a 11 The challenge of global delivery of workforce educa- labor representative as its competition is real and tion, training, and job place- vice-chair, and created an investing in Oregon's work- ment services at the local executive committee made up force is a good strategy for level. The Council adopted of private sector representa- states in o:Ir circumstances. guidelines that charged tives; regional committees to: Oregon is small and so are

IN Assigned state responsi- most of our businesses, so we Meet specific membership bility for federal Job Training must choose our investment requirements including at Partnership Act programs for targets carefully and hit most least 25 percent private disadvantaged youth and of them to succeed. sector representation and adults and dislocated workers private sector leadership; to a standing committee of Investing in workfo e is the Council; not enough; other economic Advise the Council on development strategies workforce policy issues; and focused on creating and keeping high-wage jobs and creating a business-friendly environment are also critical.

1 0 13 MANAGEMENT Develop regional strate- There is duplication in Two customer-driven an education and REFORMS gic plans and service delivery service delivery which adds clusters training network and a In an effort to introduce tools agreements. to administrative overhead and techniques to manage and confuses Oregonians business services network to serve business and workers public sector resources and All regional committees are trying to gain access to programs more efficiently and operating and moving training and employment as customers; effectively, the Council : forward with the regional programs; planning process. There has Regional committee involvement in designing Adopted five interim been a growing realization of Turf issues still exist performance measures to hold the importance of the among federal, state and local systems to reduce unneces- programs accountable for regional committees as the agencies and institutions, but sary duplication and integrate outcomes: wage at placement; mechanism for local involve- so does unprecedented service delivery; job retention up to eight ment in designing locally- collaboration in the effort to Consolidation of 11 quarters; cost per placement; driven workforce systems. manage programs across programs now housed in five increased skill level; and The Council has provided agency lines and funding state agencies into a single customer satisfaction. No $10,000 to each committee to categories. program currently collects help with start-up costs. The Oregon Department of Workforce Development and adequate data for all of these Council does not have The Council developed a Community Colleges adminis- measures; so they must be sufficient staff to provide state-level reorganization plan phased-in over the next two extensive assistance, and staff based on the belief that the tered by the State Board of years. More sophisticated support is being donated by design and delivery of Education; measures are also being different agencies in different workforce programs should Transferring the Work- explored. regions. be made as close to the customer as possible. force Quality Council staff to Developed a long-term plan VORGANIZATION the Oregon Economic Development Department; for a shared information PLAN Oregon's workforce develop- system which, when fully The Council spent much of its ment system has two primary and implemented, will allow the first year surveying the customers: the businesses Separating the Employ- exchange of data across myriad of federal and state that employ individuals and ment Division from the agency lines to measure workforce programs and the individual students, job- Department of Human performance and to evaluate identifying turf issues. Here's seekers or workers. Both of program effectiveness. The what we learned about the these customer groups need Resources. Council has identified three current system: to access the system; how- major areas for future work: ever, their needs are quite The Governor has submitted legislation to the 1993 confidentiality issues, common State and federal work- different and suggest that the Legislature to implement data definitions and data force programs are too organizational structure these proposals (SB 119, SB collection policies, and data fragmented to be managed designed to serve one might 121, and SB 181). See Oregon analysis. Five state agencies effectively in terms of policy, differ from the structure have been identified (Employ- accountability and customer designed to serve the other. Workforce Development System: A State-Level Reorga- ment, Vocational Rehabilita- service; The model proposed in the tion, Adult and Family Services, Council's reorganization plan nization Plan, December 1992. Worker's Compensation, and includes: Job Training Partnership Act) for a pilot project to test this 14 system for information sharing.

11 Initiated a state and Analysis of 37 program Dollars being spent are 11 regional planning process budgets from 15 workforce not tied to benchmarks and WHERE WE that satisfies federal expecta- agencies, resulting in recom- measurable outcomes for ARE GOING tions and promotes an mendations for program participants. integrated approach to funding priorities. See State Here is where we are going utilizing local, state and Agency Budget Recommenda- I! I Funding, especially from with our public sector federal resources. During the tions for 1993-95 October the federal government, strategy during the next two past year, five stateF:genci es 1992. creates programs with a life years. administering five major of their own that do not federal programs (Adult Identification of 11 current always make policy sense for REGIONAL Literacy, Carl Perkins, Family or new programs which Oregon. WORKFORCE QUALITY Support Act, Job Training warrant state lottery invest- COMMITTEES Partnership Act, Wagner- ment to make significant Information about where The Council wants to Peyser) have supplemented progress on two priority the jobs of the future will be strengthen the regional their separate plans submit- benchmarks: Job Skill is used to develop new committees during the next ted to each of their funding Preparation (percentage of programs, but rarely to two years. The ultimate sources with a common cover high school students with modify or eliminate programs success of Oregon's work- letter, overview statement significant involvement in once they are established. force development system and list of assurances. Three professional technical goes far beyond state involve- regional committees helped programs) and Workforce Federal, state and local ment. It provides for and develop methodologies to Adaptability (percentage of agencies use a maze of challenges local community integrate the five state-level displaced workers reem- different computer systems to leaders to take ownership and programs at the local level. ployed within 24 months and accumulate data about change the workforce earning at least 90 percent of training and employment development system from the STATE BUDGET their previous income). See programs, and there is no point of delivery. If adequate REVIEW Benchmark Proposal Recom- system to integrate informa- resources are provided by the The Council reviewed the mendations for 1993-95, tion so we can get a handle on 1993 Legislature, the Council federal and state investments September 1992. where the money is going and will: in workforce education, what results are achieved for training and job placement Here's what we found during the individuals completing Provide two staff to assist programs and submitted our budget review: the programs. regional committees in recommendations for use by developing their strategic the Governor in preparing the III Very few federal or state plans and service agreements; 1993-95 state budget. Most of resources are targeted for the Council's funding propos- upgrading and retraining the Review and approve als were included in the current workforce. regional committee strategic Governor's mandated budget. plans and service agreements; There were two major components of the budget Invest lottery funds with review process: regional committees in support of their strategic plans, recognizing that not all regions will be ready to use these resources at the same 15 time; and

12 Evaluate and hold regional MANAGEMENT STATE BUDGET committees accountable for REFORMS REVIEW results as their plans are The Council recognizes that The Council's review of state implemented. there is still much to be done agency programs and their to ensure progress on efforts budgets was broad rather REORGANIZATION begun in 1992. During the than deep. The Council PLAN next two years, the Council believes that spending its The Council will actively work will: time doing detailed budget with the Legislature to secure reviews which are also done support for the three bills Evaluate programs using by the Executive Department, introduced by the Governor. adopted interim performance the Governor and the Legisla- If the proposed reorganiza- measures and develop more ture, is not where it can add tion plan is enacted by the sophisticated measures to the most value. During the 1993 Legislature, the Council evaluate the impact of dollars next two years, the Council will: invested. will:

Work with the State Board Resolve three major Encourage the 1993 of Education to ensure the barriers to the integration of a Legislature to focus the state Department of Workforce state data system that would and federal dollars for Development and Community allow electronic sharing of workforce on priority bench- Colleges is a model for high- information among workforce marks and school reform; performance in the public agencies. These barriers sector; and include state and federal Use interim performance confidentiality laws, inconsis- measures to evaluate work- Involve regional commit- tent data definitions and force programs and develop tees in designing the local collection policies in agen- funding recommendations for service delivery components cies, and lack of consistent the 1995-97 budget; and of the reorganization plan. data analysis. Complete the data system pilot project Develop an investment involving five state agencies portfolio by region to support that are sharing information local planning and state level and analyze the results; and budgeting.

Submit a single state plan and necessary waivers to appropriate federal agencies and encourage regional committees to integrate these federal programs into their strategic plans.

16

13 ii VISION FOR0ur vision for the private sectorincludes: 2010

Creation and retention of high-skill jobs andcontinuing investment in the skills of the workforce inall regions of the state; A majority of firms identified as high-performance organizations in which front-line workers havethe ability and power to make decisions, improvequality, and enhance productivity; A network of business and labor organizationswhich determine industry skill standards, set thecurriculum for training workers, and certify workers whocomplete appropriate training; Continual high level of investment by firms inthe education and training of workers, particularlyfront-line workers, and a sophisticated system of continuingeduca- tion for professional and technical workers; A high degree of cooperation and partnership among .41 business, labor, and education, and the creationof appro- priate work experiences for high schoolstudents; and Expansion of the use of the apprenticeshipmodel in new industries and jobs. PRIVATE SECTEIR 0 STRATEGY LEGISLATIVELegislation enacted in 1991 gave theCouncil its being DIRECTIVESmarching orders. The following directives are addressed through our private sector strategy:

Increase the use of the apprenticeship modeland industry skill standards (HB 3133, Sec. 6 (2)and HB 3474, Sec. 3 (2)); Develop strategies to increase the level ofinvestment in worker training (HB 3133, Sec. 6 (3)); Promote business, labor and educationpartnerships and involvement in state programs (HB3133, Sec. 6 (4)); and Assist businesses in becoming highperformance organizations (HB 3474, Sec. 3 (3)).

17 15 WHAT Here :s what we have accom- Members of the Council representatives through WE HAVE plished with our private encouraged the National established business and ACCOMPLISHED sector strategy during our Federation of Independent labor organizations and to first year. Business (NFIB) to focus on ensure they had a lead role. and become involved in BUSINESS-LABOR Oregon's workforce agenda. The Council intends to work PARTNERSHIPS NFIB cooperated with the closely with the regional Members of the Council Oregon Employer Survey, committees to strengthen worked with the AFL-CIO to printed several articles in its private sector involvement establish a committee to deal newsletters, and promoted and develop new initiatives to with worker education and workforce as one of a few key increase the level of invest- training issues. The report of legislative issues. ment in the training of the this committee, Worker current workforce. Education and Training in Members of the Council have Oregon: The Challenge for worked with the Associated THE OREGON Labor, was adopted by the Oregon Industries (A00 in EMPLOYER SURVEY Oregon AFL-CIO. The report support of education and The Council worked closely is the first of its kind by a workforce reform. AOI with the Oregon Economic state labor federation and is supported the Oregon Development Department and viewed as a model for other Employer Survey and pub- the Employment Division to states and unions. It calls for lished several articles, conduct a survey to obtain unions to participate in pamphlets and videos on baseline information about workforce education and education and workforce current employer practices in training at the worksite and atissues. training, education, and the the policy level. organization of work. In cooperation with the The AFL-CIO, in partnership Bureau of Labor and Indus- The findings of this survey with the Oregon Department tries and the State Apprentice- include the following: of Economic Development ship and Training Council, the and the Council has worked to expand Most workers receive little Labor Education and Re- the use of the apprenticeship training other than safety- search Center, sponsored a model to new industries and related training, and the major conference in February to streamline the approval training that exists goes 1992 on "High Skills or Low process for new apprentice- mostly to more highly Wages: Setting a Union ship programs. educated managerial and Agenda for Worker Educa- professional employees. tion." The keynoter was REGIONAL former U.S. Secretary of LaborWORKFORCE QUALITY Training is viewed as an Ray Marshall, and over 200 COMMITTEES expense rather than as an union leasers and dignitaries The Council facilitated the investment. discussed the critical work- organization of the regional force issues facing Oregon committees. Efforts were III Most training is informal, and 'ne nation. made to recruit private sector on-the-job training provided by non-professional trainers.

16 a Employers believe that FUNDING MECHANISM RESEARCH WHERE WE The Council will continue to they provide more training The current level of invest- develop valuable information than their employees think ARE GOING ment in upgrading the skills of about current business they do. the workforce is inadequate. Here is where we are going Most state and federal dollars practices as well as "best- Employers believe they with our private sector go to training or retraining of practice" information. Future research topics will include involve their employees in strategy during the next two workers in transitionfrom the nature and amount of decisions about their work, years. school to work, from one job investment by employers in but employees don't neces- to another, from welfare to skill training and the returns sarily agree. REGIONAL SUMMITS self-sufficiency. Few re- The Workforce Quality sources are devoted to from such training and new forms of work organization. Few employers really Council realizes that the upgrading the skills of the understand what it means to private sector must be current workforce to avoid We plan to disseminate the be a high performance engaged in the workforce displacement and protect results of the Oregon Em- organization. agenda in all regions of the workers and businesses. The state. To this end, we intend Council believes a new ployer Survey and the Oregon Business Council's Values and Employers are clearly to organize a series of funding source will be interested in education business/labor regional necessary to provide ad- Beliefs Survey. reform, particularly coopera- summits to develop and link equate resources to firms tive work experience projects. employers and schools and to who want to upgrade the develop new worker educa- skills of their employees and HIGH PERFORMANCE tion and training in!'tiatives. introduce high performance WORKPLACES The purpose of the summits work practices or new The Council worked closely will be to solidify connections technology. with the Oregon Economic between the workplace and Development Department on education systems as well as The Council has no one the Oregon Quality Initiative, to develop regional plans to funding mechanism to a partnership among 75 increase investments in recommend. Rather, we are government, education and training the current work- studying a variety of funding industry leaders intent on force. The Council is applying sources, including the improving and promoting to foundations to support following: quality practices in business. these summit meetings and The Quality Initiative will lead the necessary follow-up Dedication of lottery funds to an annual awards program activities. to workforce development; and a high performance curriculum offered by The Council will work closely Income tax credits for community colleges. with the regional committees training programs; and to develop regional plans to enhance workforce skills and I Holding unemployment to invest lottery dollars that insurance tax rates constant may be directed to regions by and dedicating a portion to a the Legislature. new worker education training fund.

17 19 Jib

regon's vision is to have the best educated and VISION FOR prepared workforce in the nation by the year 2000 20100and one equal to any in the world by 2010. Because our vision for a high qualityworkforce is dynamic and challenging, and it will not be achieved unless we:

.4 Take a long-range view of expectations and accom- plishments; Engage Oregonians, especially local private and public sector leaders, in the effort to change the way we do business; and Demonstrate that bottom-up, community-based solutions will work best.

An effective communication strategy will ensure the following:

a Oregonians can identify Oregonbenchmarks and are engaged in meeting them; Business, labor and education constituencies under- stand Oregon's workforce strategies and are actively involved in implementing them; and The media integrates Oregon's vision, workforce strategies and the Oregon benchmarks into its news, COMMUNICATION features and editorials. STRATEGY

LEGISLATIVEThere are no specific legislative directives related to DIRECTIVES communications. However, the Council has established these three objectives:

Create internal and external communicationnetworks; Develop a common language and frameworkthat tells the workforce story to the Legislature andOregonians; Assist regional committees and their members tobe change agents in their communities.

20

19 WHAT Here is what we have accom- The Council received a The Council supported a W.K. WE HAVE plished with our communica- $25,000 grant from the U.S. Kellogg $1.8 million grant ACCOMPLISHED tion strategy during our first Department of Labor to link application from Portland year. regional committees to the State University and the Council staff through Ed-Net Oregon Progress Board to INTERNAL III, an electronic network that establish Partners for Human COMMUNICATIONS includes conferencing, Investment, an eff(to build The Council developed public bulletin board and E-mail. constituencies for gutting involvement policies that benchmarks into action assure communication with The Council endorsed the through Leadership for and access to the Council for concept of combining Change workshops and over 500 interested constitu- separate state agency annual Adopt-a-Benchmark efforts. ents. reports into one report. The first combined report, The Council developed involving at least five different common formats for prepar- workforce agencies, will focus WHERE WE ing information on policy on regional success stories ARE GOING issues before the Council for and program outcomes. discussion and actor. Here is where we are going Council members partici- with our communication EXTERNAL pated in the Liman Invest- strategy over ..ne next two COMMUNICATIONS ment Conference sponsored years. The Council utilized Ed-Net by the Oregon Progress Board teleconferencing to encour- to discuss and review The Council will pilot and age two-way dialogue and progress in reaching Oregon evaluate the use of Ed-Net III feedback between the Council Benchmarks. as a regional committee and the regional committees. communications tool, The first session invited The Council supported a expanding it to all regions as regional committee represen- $75,000 grant to the Oregon quick:y as possible. tatives to share their ideas Department of Education for and suggestions for the research and development of If funding is secured, the current and future work of the a pilot projectLeadership Council will expand Leader- Council. The second session for Changeto assist two ship for Change pilots to all provided feedback from regional workforce quality regional committees. regional committees regard- committees to become ing the Council's proposal to change agents in their The Council will work with reorganize state responsibil- communities. the Oregon Progress Board to ity for most workforce develop a communications programs into one agency. plan that significantly The third session provided an expands the circle of Orego- opportunity for the chairs of nians committed to achieving the regional committees to Oregon Benchmarks. exchange information about the regional planning process. 21 20

OREGON BENCHMARK PRIORITIES

1990 1992 1995 2000 2010

1. Percentage of high school students with significant 9% 9% 18% 35% 55% involvement in professional technical programs

2. Percentage of employer payroll dedicated to 1.5% 20/0 2.50/0 3% training and education

3. Percentage of workforce that has received at 1 .ast 20 hours of education related to work skills and knowledge within the past 12 months

4. Percentage of displaced workers reemployed 33% within 24 months and earning at least 90% of previous income

5. Completion of at least one year of postsecondary 56% 63% 65% 70% 75% education or training

6. Percentage of 25-year-olds with a certificate granted in non-baccalaureate education and 10% 15% 25% 40% training programs

7. Prose Literacy (understands text information) a. Basic 21-25 years: 77.7% 95% b. Intermediate 21-25 years: 38.0% 95% All adults: 41.1% 55% c. Advanced 21-25 years: 5.5% 95% All adults: 8.7% 50%

8. Document Literacy (can understand and use graphs, text, maps, etc.) a. Basic 21-25 years: 78.2% 95% All adults: 76.1% 85-90% b. Intermediate 21-25 years: 37.1% 95% All adults: 35.5% 55% c. Advanced 21-25 years: 6.2% 95% All adults: 6.3% 50%

9. Quantitative Literacy (can understand math and apply it) a. Basic 21-25 years: 76.9% 95% All adults: 80.0% 85-90% b. Intermediate 21-25 years: 27.5% 95% All adults: 39.0% 55% c. Advanced 21-25 years: 3.6% 95% All adults: 7.6% 50%

10. Completions in certified apprenticeship program 5,385 5,249

23 22 REGIONAL WORKFORCE QUALITY COMMITTEES

Region Counties Chair

I Clatsop, Columbia, Tillamook Jan Fletcher

2 Multnomah, Washington Jim Harper

3 Marion, Polk, Yamhill Ted Molinari

4 Linn, Benton, Lincoln Glenn Koehrsen

5 Lane Gary Pierpoint

6 Douglas Michael Christian

7 Coos and Curry Doug Fletcher

8 Jackson and Josephine Harvey Holtz

9 Gilliam, Hood River, Sherman, Wasco, Wheeler Tom Hirons

10 Crook, Deschutes, Jefferson Jerry Miller

11 Klamath, Lake Monte Mendenhall

12 Morrow, Umatilla Brent Corson

13 Baker, Grant, Union, Wallowa Michelle Sherman

14 Malheur, Harney Fran McLean

15 Clackamas Gregory Wallwork

?4 23 PUBLIC SECTOR PARTNERS

ADULT AND FAMILY SERVICES DIVISION,This agency's JOBS program (Job Opportunities and Basic DEPARTMENT OF HUMAN RESOURCESSkills) helps clients on public assistance (ADC/Aid to Dependent Contact: Jerry Burns, Manager, JOBS, Children) become self-supporting. Targeted for JOBS services (503) 945-6115 are teen parents, long-term recipients, clients whose youngest child is over three years of age and those who volunteer. The program operates in 15 service districts and focuses on local needs under a broad framework of state/federal mandates.

APPRENTICESHIP AND TRAINING DIVISION,This agency helps industry develop, expand and improve the BUREAU OF LABOR AND INDUSTRIES state's apprenticeship and training programs. In addition, it Contact: Quint Rahberger, Administrator,administers several Job Corp contracts and a certification Apprenticeship and Training Division, program to educate and train Veterans. (503) 731-4072, Ext. 275

OFFICE OF COMMUNITY COLLEGE SERVICES This agency oversees 16 community colleges that provide Contact: Debbie Lincoln,comprehensive training programs, professional technical Deputy Commissioner,education, lower division college programs, developmental (503) 378-8639 education and adult enrichment. The colleges also provide custom-designed training programs, industry-specific training and development, and management development. These colleges also provide programs for correctional institutions and welfare recipients, serve displaced homemakers and dislocated workers and assist small business owner:: through Small Business Development Centers.

OREGON DEPARTMENT OF CORRECTIONS This agency provides adult basic education and GED programs Contact: Shannon DeLateur,in most correctional institutions. Included in this package are Corrections Education Program,English as a second language, adult high school diploma and (503) 378-3463 social skills. Professional technical programs are offered at the larger institutions. For those on parole and post-prison supervi- sion, help is provided to reintegrate inmates into their commu- nities.

WORKFORCE DEVELOPMENT SECTION,This agency maintains and promotes the vitality of Oregon OREGON ECONOMICbusiness and assists in the creation of jobs. The Workforce DEVELOPMENT DEPARTMENTDevelopment Section administers two grants programs, Key Contact: Bob Baugh, Manager, Industry Training Program and Targeted Training Program, Partnership Division,which provide customized training. This section also adminis- (503) 378-2285 ters community college and secondary vocational education grant programs for aovanced technology, skills centers, curriculum revision, America's Choice Sites, and business/labor activation for partnerships. 25

24 OFFICE OF PROFESSIONAL TECHNICALThis office of the Department of Education provides technical EDUCATION, OREGON DEPARTMENTassistance and grant management needed to create quality, OF EDUCATIONintegrated learning environments for all students engaged in Contact: J. D. Hoye, Associate K-14 educational programs. Strong business and labor connec- Superintendent for Professional Technical Education,tions are a prerequisite for professional technical programs. (503) 378-3584 Federal resources are targeted to assist special populations in succeeding in these programs.

EMPLOYMENT DIVISION,This agency runs a labor exchange to provide employers with DEPARTMENT OF HUMAN RESOURCES qualified applicants and applicants with suitable jobs. Special Contact: Virlena Crosley,programs help clients with specific needshomeless individu- Assistant Administrator for Research and Statistics, als, migrant farm workers, youth and adult ex-offenders and (503) 378-5490 recovering drug and alcohol clients. Employers receive special technical services as well as labor market and occupational information.

JOB TRAINING PARTNERSHIP ACT (JTPA)This agency administers three federally funded job training OREGON ECONOMICprograms for economically disadvantaged youth andadults, as DEVELOPMENT DEPARTMENTwell as dislocated workers affected by plant closures and Contact: Ron Stewart and Jana Hofer, Supervisors,layoffs. Funds are funneled through service delivery areas (503) 373-1995throughout the state based on specific federal criteria.

OFFICE OF THE CHANCELLOR,This agency provides broad baccalaureate education and skills, STATE SYSTEM CF HIGHER EDUCATIONtraining and education for professionals and managers, continu- Contact: Larry Large, Vice Chancelloring education for today's workforce and extensive research to for Public Affairs,support an economy built on highly-skilled workers. Education (503) 373-7494 is provided both on campuses and in communities in response to economic and business needs.

VOCATIONAL REHABILITATION DIVISION,This agency provides services to help individuals with physical, DEPARTMENT OF HUMAN RESOURCES mental or emotional disabilities so they can become economi- Contact: Lynnae Ruttledge, Asst.cally independent. Administrator, (503) 945-6204

WORKER'S COMPENSATION DIVIC.ON,This agency administers Oregon's Workers' Compensation Law DEPARTMENT OF INSURANCE AND FINANCEwhich regulates insurance carriers and self-insured employers Contact: Geoff Guilfoy, Deputyto make sure that workers injured on the job receive benefits Director, Department of Insurance and Finance, and employment assistance to help them regain economic self- (503) 378-6596sufficiency. Two programs also are administered: Reemploy- ment Assistance Reserve and Preferred Worker Program.

76 MI= 25 1111111111111111111INIII REFERENCES 1993 are2on Values and Beliefs, Oregon Business Council, to be published in early 1993. 1992 Benchmark Proposal Recommendations for 1993-95, Workforce Quality Council, September 1992.

Focus Group Study of Oregon Employers, Oregon Economic Development Department, October 1992.

JOBS Program Review: A Response to the State Emergency Board. Legislative Fiscal Office, July 1992.

Oregon Benchmarks: Standards for Measuring Statewide Progress and Government Performance, Oregon Progress Board, December 1992.

Oregon Employer Survey: Worker Training and Work Organization, Employment Division, Department of Human Resources, and the Oregon Economic Development Department, December 1992.

Oregon Report Card: The Annual Report on Public Education to the Citizens of Oregon, Department of Education, Fall 1992.

Ie. on W r' forD v m m: A R or.rniir PI .nr 2000, Workforce Quality Council, December 1992.

State Agency Budget Recommendations for 1993-95 Workforce Quality Council, October 1992.

Taking Action in Oregon: The National Education Goals, Second Annual Report, Office of the Governor, September 1992 .

W rk r Education and Training in Oregon: for Labor, Labor Education and Research Center, University of Oregon, June 1992. 1991 Human Investment Partnership: Achieving Benchmarks for Exceptional People, Oregon Progress Board, November 1991.

Oregon Benchmarks: Setting Measurable Standards for Progress, Oregon Progress Board, January 1991.

The Oregon Literacy Survey: Measuring Adults' Functional Skills, Oregon Progress Board, May 1991. 1990 Job Training. Retraining_and Placement: A Program Budget and Review, Legislative Fiscal Office, September 1990.

Oregon: Workforce at Risk. Employment Division Department of Human Resources, April 1990. 27 26 THIS REPORT WAS PREPARED WITH THE HELP OF:

Marilyn Johnston,project manager Marilynne Keyser,editor Marlene Haug land,writer Joanne McLennan,graphic designer Ellen Jull,production

WORKFORCE QUALITY COUNCIL STAFF:

Ellen Jull Dave Tilton Elizabeth Umulap John Westine

BEST COPY MAHAL 28