TITLE Training in the Motor Vehicle Repair and Sales Sector in Spain

DOCUMENT RESUME

ED 379 483 CE 068 307

TITLE Training in the Motor Vehicle Repair and Sales Sector in Spain. Report for the FORCE Programme. First Edition. INSTITUTION European Centre for the Development of Vocational Training, Bellin (Germany). REPORT NO ISBN-92-826-8138-6 PUB DATE 94 NOTE 84p.; 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-83-94-199-EN-C: 8 European Currency Units). PUB TYPE Reports Research/Technical (143)

EDRS PRICE MF01/PC04 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); *Trade and Industrial Education; *Training Methods; Training Objectildas; Trend Analysis IDENTIFIERS *Spain

ABSTRACT A- international team of researchers studied the following aspects of training in Spain's motor vehicle repair and sales sector: structure and characteristics; institutional and social context; relationship to Spain's overall labor market; changing structural, economic, and organizational conditions; and training and recruitment and relationship to Spain's education system. Social and labor/employment statistics were analyzed, and case studies of three auto dealerships and one authorized vehicle repair center were conducted. The firms varied in size; however, all were linked to large manufacturers. Consequently, all four firms had manufacturer- designed systems of continuing training to keep employees current with innovations in new vehicle models. No great satisfaction with commercial training was found in any of the case studies. In general, workers and unions were not involved in training related decisions. A transition from training based on a functional model in which training is viewed as a catalogue of tasks to be performed to a systematic concept in which continuous updating is seen as essential to survival in the sector appeared to be in progress. The report includes 49 tables/figures, andcontains 18 references. (MN)

*********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. *********************************************************************** F SCE FORMATION CONTINUE EN EUROPE European Commission

MOTOR VEHICLE REPAIR AND SALES SECTOR

U.S DEPARTMENT OF EDUCATION Office of Educational Research and Improvement EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) fi This document has been reproduced as received from the person or organization originating it. Minor changes have been made 10 improve reproduction quality - Points of view or opinions stated in this document do not necessarily represent official OERI position or policy.

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TO THE EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC)."

BEST COPY AVAILABLE MOTOR VEHICLE REPAIR AND SALES SECTOR TRAINING IN THE MOTOR VEHICLE REPAIR AND SALES SECTOR IN SPAIN REPORT FOR THE FORCE PROGRAMME

drawn up by INEM (Institute Nacional de Empleo) in collaboration with Jose Luis Esplugues, Marisa Mendez-Vigo and Christina Prat CIREM and research team

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

IIINVINIIONMMIFIIIIIMMONINII111110 Cataloguing data can be found at the end of this publication.

Luxembourg: Office for Official Publications of the European Communities,1994

ISBN 92-826-8138-6

ECSC-EC-EAEC, Brussels Luxembourg, 1994

Reproduction is authorized, except for commercial purposes, providedthe source is acknowledged.

Printed in the United Kingdom 7777. c FORCE

Formation continue en Europe Commission of the European Communities TASK FORCE Human Resources, Education, Training and Youth Rue de la iLoi, 200; B-1049 Bruxelles

THE IDEA FORCE The future economic strength and the potential for socialprogress of the European Community depends on a consistent impovement in the competence and qualifications of its 132.000.000 labour force. Better continuing vocational training is one of the essential conditions for thesuccess of the Single Market 1993. The European Commission is determined to support and give fresh impetus to the efforts whichcom- panies 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 train- ers and training bodies, employer and union representativeseveryone concerned with improving 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 througha European transnaticnal 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 projects 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 inyour company, sector or local labour market. At the same time you can help to contribute to the improvement and availability of continuing trainingand thus to shaping the European Community.

3 CEDEFOP

European Centre for the Development of Vocational Training Jean Monnet House, Bundesallee 22, D-10717 Berlin

Institutional status

CEDEFOP is an autonomous body, independent of the departments of the Commission of the European Communities, but its task and activities are closely integrated with those of the Commission, to which the Centre contributes its technical and scientific expertise.

Working guidelines for the Centre are laid down by its Management Board, whose members represent the EC Commission (3), trade unions (12) employers' organizations (12) and governments (12). The Management Board decides on the Work Programme, draws up and approves budgets and adopts the Annual Report.

The members of the Management Board are appointed by the organizations they represent and remain in office for two years. The chairmanship of the Board changes each year.

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

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

Consultation: CEDEFOP, as an organization supporting the Commission, has the task of promoting a concerted approach to vocational training problems. It takes every opportunity to promote and encourage training.

6 5 ACKNOWLEDGEMENTS

This study was carried out in the framework of the Theproject team 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 Kaj Olesen and Bruno Clematide, DTI - Denmark so generously. Oriol Hams, CIREM - Barcelona Georg SOK 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. CONTENTS

PART 1 - SECTORAL CONTEXT EMPLOYMENT AND TRAINING IN THE SPANISH MOTOR VEHICLE REPAIR AND DISTRIBUTION SECTOR 1.Definition and scope of the sector 2.Structure and characteristics of the sector 2.1 Brief historical background 2.2 Structure of the distribution subsector 2.3 Structure of the repairs subsector 3.The institutional and social context 3.1 Legislation 3.2 Agreements between vehicle-makers and repair and distribution firms 3.3 Opening and staff working hours 3.4 Role of the social partners 4.Employment and labour 4.1 Trends in employment 4.2 Occupational structure 4.3 Employment of special groups 4.4 Structure of the workforce 4.5 Working conditions 5.Technological change and its implications for qualification and training requirements 5.1 New technologies 5.2 Impact on firms 6.Training and recruitment 6.1 Education and training systems 6.2 Occupational structure as related to training 6.3 Skills required by the major occupational groups 6.4 Continuing training 6.5 Training needs arising from new technologies 6.6 The training effort: distribution by types of enterprise 7.Conclusions

8.Bibliography 33 "::= " 9.Note on methodology '34

PART 2 - CASE STUDIES 1.ROMAGOSA AUTOMOVILES S.A. .35 1. General description of the case 35 2. General description of the firm 35 2.1 The firm 35 2.2 Brief history and recent development 35 2.3 Structure of the firm 36 2.4 Human resources 37 3. Provia,irs of training 34 3.1 The firm's structure and strategy 39

8 3.2 Manufacturer's training service 4.The firm's training policy 4.1 In-house training plans 4.2 Relationship between training and skills 4.3 Access to training - targets 4.4 Training plans 4.5 Training costs 5. Evaluation of training approach 5.1 Data on the personnel sample from the repair shop workforce c! Romagosa Automoviles

2.ENTERPRISE "A"

1. General description of the case 2. General description of the firm 2.1 The firm 2.2 Brief history and recent development strategy 2.3 Structure of the firm 2.4 Human resources 3. Providers of continuing training 3.1 The firm's structure and strategy 3.2 Manufacturer's training service 4. The firm's training policy 4.1 In-house training plans 4.2 Access to training - targets 4.3 Training plans 4.4 Training costs 5. Evaluation of training approach 5.1 Evaluation of workforce training record 5.2 Best practice/normal practice 5.3 Future demands 5.4 Training content

3.ENTERPRISE "B" ;: 57 1. General description of the case 57 2. General description of the firm 57 2.1 The firm 57 2.2 Brief history and recent development 58.. 2.3 Structure of the company 2.4 Human resources 60 3. Providers of continuing training 60 3.1 The firm's structure and strategy 60 3.2 Training structure at FASA-Renault 60 4.The firm's training policy 62 4.1 In-house training plans 62 4.2 Relationship between training and skills 62 4.3 Access to training - targets 63 4.4 Training plans 63 4.5 Training costs 64 5. Evaluation of training approacl. 64 5.1 Evaluation of existing training 64 9 5.2 Best practice/normal practice 5.3 Future demands

4.PRADES MOTOR S.A. 1. General description of the case 2. General description of the firm 2.1 The firm 2.2 Brief history and recent development 2.3 Structure of the firm 2.4 Human resources 3. Providers of continuing training 3.1 The firm's structure and strategy 3.2 Manufacturer's training service 4. The firm's training policy 4.1 In-house training plans 4.2 Trainees 4.3 Training plans 4.4 Training costs 5. Evaluation of approach to training 5.1 Summary of workforce training record 5.2 Best practice/normal practice 5.3 Training demands

PART 3 - TRENDS GENERAL CONCLUSIONS 1. Presentation of the case studies 2. Planning and conception of training 3. Target trainees 4. Content, methods and organization 5. Cost and financing APPENDIX Opinions of social partners

1 Qs PART 1:

EMPLOYMENT AND TRAINING IN THE SPANISH MOTOR VEHICLE REPAIR AND DISTRIBUTION SECTOF

1. Definition and scope of the sector

2. Structure and characteristics of thf sector

3. The institutional and social contex

4. Employment and labour

5. Technological change

6. Training and recruitment

7. Conclusions 8. Bibliography 9. Note on methodology

11 1. DEFINITION AND SCOPE OF THE SECTOR

The target sector of this study encompasses those cycles", as the sector provides no separate data firms engaging in the repair and/or distribution of on this. Then there are the "intermediaries dealing motor vehicles and their components and alliedin machinery, material and vehicles"; this report products. includes those dealing in vehicles, as they are responsible for part of Spanish vehicle distribu- The National Classification of Economic Activities tion. (CNAE) lists the following groups for this sector: Repair shops are classified on the following Code Activity basis (as provided by Royal Decree 1457/1986, 10th January, or by the relevant Autonomous 672 Repair of motor vehicles, motorcycles and ommunity regulations): bicycles. 614.1 Wholesale trade in vehicles, motorcycles By their relationship with vehicle, equipment and accessories. and component-makers: 645 Retail trade in vehicles, motorcycles and General or independent. accessories. Allied to one brand. 634 Intermediaries dealing in machinery, material and vehicles. By type of activity: Mechanical All these activities are carried on by firms of Electrical varying types, including: agents and sukidiaries Bodywork of motor vehiclemanufacturers),car dealers Paintwork (independent), shops authorized to repair and distribute vehicles (independent but linked to car Specialist shops: limited to repair or replace- manufacturers),generalvehiclerepairshops ment of specific items of vehicle equipment or (independent), shops specializing in the repair of systems. components and allied products. Motorcycle repair shops: engaging in repair or On occasions, some of these firms deal in second- replacement work on two- or three-wheeled hand vehicles; according to sources within the motor vehicles or similar. trade', this generally represents around 20% of allsuchtransactions.Alsoincludedinthis All such establishments are obliged to possess the category are firms whose sole activity is dealing minimum equipment required for their type of in secon -hand vehicles. This type of business, work and speciality. Any shop may work in one or which tends to operate in locally-circumscribed more of these categories provided that it complies markets, makes up the remaining 80% of second- with official requirements. hand sales. Motor vehicle distributors may be classified as There are other differences between the Spanish agents or dealers, depending on whether they system of categories and the classification pro- belong to a manufacturer's primary or secondary posed by the FORCE programme: thus,itis salesnetwork.Usedvehicledistributorsare impossible to isolate activity in respect of "motor- classified separately.

1 Source: Confederation Espanola de Tolleres de Roporaci On de AutomOviles y Afines. 12 2. STRUCTURE AND CHARACTERISTICS OF THE SECTOR

2.1 ilrief historical background % 89/90 % 90/91 In the past, the Spanish motor vehicle repair and distribution sector operated in a market character- Cars + 2.48% + 5.6% ized by ageing stock, a large proportion of second-hand vehicles and a type of firm typically Industrial vehicles and buses 8.08% 17.7% performing poor-quality repairs because of shod- dy materials and a rather shaky grasp of the technical side, acquired largely through practice. Whereas motor car output has sustained an upward trend over the last decade, industrial The models of available motor vehicle makes vehicle and bus output stopped growing in 1989, remaIned unchanged over long periods and repair since when it has been falling steeply2. shops thus adapted to them through sheer inertia of repetition, while customers harboured no greatAs table 1shows, the most striking thing is that expectations as to assurance of quality in repairs. three-quarters of national vehicle output isfor Training was a slow, unplanned process, with export. The category of vehicle for which export personnel lucking a cultural base from which tosales have increased most is "Motor cars", 20.5% build towards a defined concept of professionalism. up on the previous year followed by "Buses and coaches", up 13%. Industrial vehicle exports have Towards the end of the 1970s, the figure of the fallen by 12.3% in unit terms. "apprentice"disappeared,withoutbeingre- placed by an effective alternative avenue of entryThe years from 1980 to 1989 saw major growth to the trade, a situation which further hindered the of car sales. If we take sales in 1980 as 100%, normal hand-over from one generation to thethese increased to 104.8% in 1985, rising rapidly vex .With the 1980s came new technologies, thereafteruntil1989, whentheystoodat witever more varied ranges of models, greatly 212.7V. increasing the complexity of the sector in both sales and repairs. These changes require ever Intheperiod1990/1991,thenumber of higher skill levels and ever greater specialization, Spanish-made vehicles plus imports by Spanish which existing personnel cannot easily acquire. makers fell by 13.1 %. Exports, on the other hand, were 15.6% up on the previous year, although at The sectorhasfurther undergone qualitative all events this was an isolated situation. change in response to certain important stimuli, such as Decree 809/1972 which introducedAs table 2 shows, Renaultis market leader, regulation of the sector for the first time, or Royal followed by Seat-VW-Audi and Ford. The Japa- Decree 1457/1986 providing detailed regulation nese makes have not yet made any great of industry and consumer protection, to which the impression on the domestic market, but they have industry had to adapt its tooling,its equipment laid the foundations for future growth. anditsadministrativepractices.Under these regulations, hitherto voluntary quality standardsSales trends were positive in 1992, but results began to be mandatory. The General Consumerwere not uniformly positive for all firms in the and User Protection Act of 1984 made similarsector. Nissan Motor lberica and Santana re- provision in respect of distribution. portedlosses,while Renault and Citroenin- creased their profitb4. The market balance was up 13-57% on the period JanuaryAugust 1991, 2.2 Structure of the distribution indicating a likely recovery. Forecasts for the nexr subsector two years are moderately optimistic.

2.2.1 Structure of the sales market In Spain, the ratio of vehicles to population is low All the vehicle manufacturers operating in Spain (relative to other European countries), average are under majority overseas ownership, and the vehicle age high and population structure rela- same is true of spares manufacturers. Typically, tivelyyouthful.This means that Spain, now products in this sector are designed abroad and Europe's fourth car manufacturer and the world's manufactured in Spain. sixth exporter, is one of the domestic European As for manufacturing, in the years 1989, 1990 marketswithmost growthpotentials.Spain and 1991 totai vehicle output in Spain evolved aspossesses 270 cars for every 1000 inhabitants, follow- that is 100 cars per 1000 inhabitants less than the

2 Source: ANFAC Statistical Bulletin, Dec. 1991.

3 Source Proceedings of 1s1 National Congress of Automobile Distributors, organized by FACONAUTO, 1990.

' Source "El Pais", 10/09/92. 5 Source: Anolisis de la Politica Contractual en Materia de Forinacian Continua. Dir.F. Duran Lopez and M. 14 Alcaide Castro, 1992. Pending publication. !.1

a Table 1 Vehicle sales by category (19911

Output Domestic Import Exports units prod. sales sales

Cars 1,773,752 518,846 212,730 1,284,440

Industrial vehicles - Modified motor cars 169,429 82,113 6,205 91,802 - All-terrain 54,410 25,750 1,912 29,112 Vans 64,117 26,802 25,208 37,445 - Light 11,074 7,708 4,551 3,629 - Heavy 5,308 4,620 2,428 593 - Tractor trucks 2,959 2,149 1,394 1,011

Total ind. veh. 307,297 149,142 41,698 163,592

Buses and coaches 662 725 527 156

Total vehicles 2,081,711 668,713 254,955 1,448,188

Source: ANFAC Statistical Bulletin, December 1991. Does not include data on importers not manufacturing in Spain.

Table 2 Market shares of car producers in Spain. The commercial structure of the car market may best be illustrated by an example covering the No. of vehicles Share Companies Share 1992 largest possible number of stages. An enterprise 1991 1991 Jan/Aug engaged in the manufacture of vehicles and spare parts covers its marketing, repairs and mainte- Renault 164,475 18.5% 19.7% nance requirements throughits agents. A firm Seat-VW-Audi 150,431 17.0%' 16.3% obtains "agent" status upon signing an agreement Ford 120,619 13.6% 14.4% with the maker, whereunder the latter grants it Opel 105,636 1.9% 11.3% exclusive rights within a given geographical area. Peugeot/Talbot 85,656 9.7% 9.1% The agent in turn appoints dealers within this area. Citroen 77,959 8.8% 13.5% Fiat 62,460 7 1% 4.1% Where agencies belong to the maker, they are Japanese 29,475 3.3% ? known as "subsidiaries" and are normally found Others 89,470 10.1 % ? in areas where there are no independent firms to carry that part of the service. Agents may likewise Source: Authors, based on data from the survey "Analysis of own dealerships, which are then referred to as Recruitment Policy with Respect to Continuing Vocational "branches". Training" by F. Duran and M. Alcaide, 1992, and from the magazine "Red Action ", Sept. 1992. Table 3 No. of authorized services in 19918:

cars agents dealers Community average. As for age, sources in the industrial vehicles, 2,677 6,852 industry indicate that in 1990, 40% of all Spanish buses and coaches 11 1,164 vehicles were more than 10 years old6. Total 1991 2,688 8,016 2.2.2 Marketing structure Car distributionbasically functions through a system of exclusive sales points assigned by the73.3% of car distributors are linked to manufac- makers to a limited number of retailers selected byturers operating in Spain. The maker with the them. At their showrooms, these retailers carrylargest share of the sales networks is Fasa-Renault, only one make of car, in respect of which they are with 17.7% of distributors, although the Seat-VW- responsible for sales and post-sales service'. Audi group have the most agencies.

6Source: I Congreso Nacional de la DistribuciOn de la Automocian, FACONAUTO, 1990. 7 Source: 1er Congreso de la ConfederaciOn Espanola de Talleres de ReparaciOn de AutornOviles y Afines, 1990. 8 Source: The Authors, utilizing data for 1991 supplied by FACONAUTO and "Nuestros Talleres" 15 Table 4 - Vehicle distribution networks in Spain, cars, It will be seen that over these years the institution 1991. of new authorized services was considerable. Outstanding in this respect are General Motors No. of No. of strength and Ford Espana, which practically doubled their Brands agents dealers No. % authorized services in this period.

I. Domestic However, this overall growth contrasts with the manufacturers following development:

Fasa Renault 288 1,397 1,685 17.7% Table 6 - No. of Authorized Services for all motor vehicle 344 853 1,199 12.6% Seat-VW-Audi categories: Opel GME 222 435 657 6.9% Ford Espana 211 844 1,055 11.1% 1990 1991 Peugeot/Talbot 217 900 1,117 11.7% Auth. Services Citroen Hisp. 198 1,075 1,273 13.4% Agents 2,778 2,688 Dealers 7,894 8,016 Subtotal I 1,480 5,506 6,986.73.3%

Total 10,672 10,704 II. Importers Source: "Nuestros Talleres", April 1991, April 1992. Fiat 129 225 354 3.7% Lancia 64 123 187 1.9% Alfa Romeo 71 139 210 2.2% The total number of agents in 1991 was 90 less Austin Rover 52 177 229 2.4% than in 1990. On the other hand, there were 122 BMW 57 - 57 0.6% more dealers. Clearly, there are firms thatclose Volvo 42 78 120 1.3% down or change status. Mercedes Benz 66 252 318 3.3% It should be noted that it is not possible to purchase Nissan 169 352 525 5.5% a new vehicle other than directly orindirectly Saab 23 23 0.2% through the maker's official distributor. Jaguar 12 12 0.1% Toyota 49 - 49 0.5% Porsche 23 23 0.2% 2.3 Structure of the repairs subsector Other brands' 440 - 440 4.6% Table 7Classification of firms by no. of workers: Subtotal II 1,197 1,346 2,547 26.7%

No. of employees % of total firms Total 2,677 6,852 9,533 100% From 1 to 4 70 % Source: Federation de Asociaciones de Concesionarios de From 5 to 9 20 % la Automocion. From 10 to 25 8.5% Note: figures for Mercedes Benz and Nissan also include More than 25 1.5% industrial vehicle agencies and dealerships. Source: Confederacion Espanola de Talleres de Reparation de Autornoviles y Afines, 1992.

Table 5 - Development over time of domestic manufacturers' authorized service networks.

Makers 1986 1991

C D Total C D Total

1,397 1,685 Fasa- Renault 212 1,287 1,499 288 1,199 Seat-VW 232 856 1,088 344 855 657 Opel-GM 156 200 356 222 435 1,055 Ford-Espana 200 450 650 211 844 1,117 Peugeot-Talbot 215 720 935 217 900 1,075 1,273 Citroen Hispania 154 843 997 198

6,986 Total 5,525

Source: The authors, utilizing data supplied by FACONAUTO and "NuestrosTalleres".

C Agents; D .Dealers

Rolls Royce), East European 9 Includes agencies of certain top-range European makes (Ferrari, Lotus, Morgan, makes (Lada, Skoda, Wartburg), Japanese makes (Honda, Mazda,Mitsubishi, Subaru, Suzuki) and American 16 makes (GM, Ford, etc.). I 5 Clearly, most firms in the sector are small. We Table 9 No. of tax permits relating to the sector (1991): should note here that it was not possible to adhere totheclassificationproposedinthe FORCE activity no. of permits programme, according to which firms with 10 to 50 workers should be grouped in one category Retail sale of cars, trucks and motor-boats: and firms with more than 50 in another. new 9,014 used 5,422 Retail sale, without establishment, store or depot, 2.3.1 About repair shops of cars, motor vehicles and motorcycles 149 In Spain there are almost 52,000 motor vehicle Retail sale of vehicle accessories and spare parts 5,739 repair shops, classified as follows: Wholesaling of passenger cars and vehicles for the transport of passengers and goods. Table 8 Classification on the basis of relationship with new 572 vehicle-makers: used 430 Wholesaling of accessories and spare parts for Type of firm Absolute nos. vehicles of all kinds 3,971

Agent 2,688 5.2% Total distribution and sales 25,297 Dealer 8,016 15.4% Independent shop 41,241 79.4% Repair of passenger cars and motorcycles, including bodywork repairs Total 51,945 100% 43,289 Repair of coaches, trucks and other load-carrying Source: The authors, utilizing data for 1991 supplied by vehicles, including bodywork repairs 3,540 FACONAUTO and CETRAA. Repair of motor vehicles in general, including bodywork repairs 5,532 Official agents and dealers make up 20.6% of the sector, as opposed to 79.4% of independent Total repair shops 52,361 shops. It is important to note that in most cases it is difficulttoseparate distributionfromrepair Source: The authors, utilizing data at 24/3/92supplied statistics. We may statein general that firms by the Barcelona Chamber of Commerce, Industry and engagingin new vehicle distribution also do Shipping. repairs. Table 10Vehicle repair shops distributed by autonomous Only 20% of allrepair shops have been in communities: (1991) existence for less than 5 years, whereas a high percentage belong to the most characteristic type: Autonomous Repair Autonomous Repair old workshops not dependent on any maker, community shops community shops handed down through the family'. Andalucia 7,738 Valencia 5,857 These data do not suffice to draw up a census of Aragon 1,641 Extremadura 1,149 existing premises or firms, given that any repair Asturias ,546 Galicia 4,229 shop may possess one or more of the permits listed Balearic Island:, 1,635 Madrid 5,016 above. Moreover, those firms having "dealership" Canary Islands 2,142 Murcia 1,541 Cantabria 815 Navarra status do not require a permit to sell motor vehicles 881 Castille and La 2,298 since they operate under their agent's invoices; Basque Country2,432 Mancha La Rioja 413 they do, however, require a permit to sell spares. Castille and Leon 3,002 Ceuta and Melilla 111 Then again, these statistics generally record the Catalonia 9,488 issue of new permits but not the withdrawal of old ones, so that they cannot be taken at face value. Totol 51,945 On the other hand, we do have information on the number of activities carried on in the sector, while Source: Sectorial Surveys by the INEM on repairs and the statistics provide an idea of the extent, if not an maintenance, 1992. accurate picture of the number and size of the firms involved. 2.3.2 About the workers According to the Spanish Confederation of Motor Numbers of repair shops are most highly concen-Vehicle and Allied Repair Workshops, the total trated in the Autonomous Communities with higher number of workers in the sector at present is population and vehicle densities. around 206,000, that is 0.5% of Spain's working

to Source: "Nuestros Talleres". 17 population.It should be stressed that 70% of Table 12 - Distribution of repair shops by type of repairs repair shops employ 5 persons or less. performed:

Mechanical only 38.3% 2.3.3 Annual turnover Mechanical and electrical 20.7% The annual turnover of the entire group in respect Mechanical, bodywork and paintwork 6.5% of repairs comes to over one thousand million Mechanical, electrical, bodywork an.A. pesetas. This breaks down as follows: paintwork 11.8% Electrical only 7.7% Table 11 Bodywork and paintwork 13.5% Bodywork and electrical 0.9% Pesetas Enterprises Paintwork only 0.5%

less than 10 million 50.0% Source: Confederation Espanola de Talleres de Automoviles from 10 to 15 million 15.0% y Afines, 1992. from 15 to 25 million 14.0% from 25 to 50 million 12.0% The general trend as regards vehicle ,apairs is 9.0% more than 50 million towards a decline in the importance of repairs as such and growth of what we might call "main- Source: Confederacion Espanola de Talleres de Reparation de Automoviles y Afines, 1992. tenance". This means that increasingly, faulty parts are not repaired but simply replaced by new ones, As the above table shows, as many as one half of and hence itis the component and ecJipment- all repair shops declare low turnover less than makers who are dictating the terms of :repair shop 10 million pesetas in contrast with a smallpolicy regarding both pricing and training. As a minority (9%) declaring annual turnover in excess result, mechanical repairs of the traditional type of 50 million pesetas. Although imprecise, these are on the wane while the importanceof body- data do reflect the fragmentation of the sector aswork and paintwork grows. regards characteristic types of firm. Recent years have seen the gradual penetration of Overall annual turnover of firms engaging in the sector by large enterprises pursuing a strategy distribution amounts to about 3.5 thousand million of specialization in specific areas of activities, with pesetas11; however,itis not easy to separatedrive-in fast-service vehicle-painting, general and distribution from repairs in the returns of these firms. ancillary servicing, spares sales,etc.For the moment, however, availability of this kind of 2.3.4 Quantity and variaty of repair service is limited. work As the table below shows, the most numerousAnother major qualitative change has come about group are the shops doing exclusively mechanical incompany-customerrelations.Repair shops repairs (38.3%), followed at a distance by those increasingly seek to attract customers by offering engaging in mechanical and electrical repairs. a full rarge of services, often in apersonalized The proportion of shops doing bodywork and format. With the decline in conventional repairs, paintwork is much smaller, and yet sources withincompetition among repairshopsisonthe the industry state that thesa are now becoming the increase, and hence these are being forced to two most profitable activities. move to where the custom is.

18 ll Source: I Congreso Nacional de la DistribuciOictla Automocion, FACONAUTO, 1990. r 3. THE INSTITUTIONAL AND SOCIALCONTEXT

3.1 Legislation central register of repair shops, this does rot yet exist and so we only have the sum of the provincial 3.1.1 Regarding installation, registers, which are not always up to date. expansion and resiting of firms Since 1980, express official permission has not been required for the opening of a repair shop: it 3.1.2 Regarding restrictions on certain is sufficient to meet the legal requirements andtypes of firm or activity register at the appropriate office Mechanical assistance on the road can only be provided as a service by a legally established There is a body of state legislation, comprising repair shop. Royal Decree 2135 of ',980, the implementing Order of the same year, and Royal Decree 1457 There is nothing to prevent a motor vehicle repair of1986regulatingvehicle and componentshop from also repairing boats: it is sufficient to distribution and repair, plus Autonomous Commu- register as such and pay for the corresponding nitylegislationsupplementingthesenational permit. statutes. There are some technical restrictions on installa- The state legislation regulates the opening of tionsintheestablishment,setforthinthe establishments, for approval of which the follow-"Technical Regulations for Low-Voltage Electric- ing documents must be submitted: ity", whereunder certain electrical installationsare mandatory, and in"Decree 30/11/1961 on a. Technical installation plan. unpleasant, harmful, insanitary and hazardous b. List of work places with technical qualificationindustries", which provides regulations governing cnd certification by professional associations locationofrepair shopsfortownplanning or labour authority. purposes.Localauthorities may also possess c. Technical study. This should include a detailed powers of land-use classificationwf,':. Icould list of the various kinds of work and service theplace limits on the location of such a business. shop can provide, and details of machinery to be installed and of technical and specialistThe sale of new vehiclesis only permitted to personnel available. authorized distributors, who may not sell motor d. In the case of an authorized brand service, vehicles to other retailers. However, the European written authorization by the maker. Community recently authorized retailing by what aretermed"commissionists".Thesearenot The regional legislation consulted (Autonomousnormally repair shops but large stores. At all Communities of Catalonia and Galicia) follows events, this type of retailing is hardly to be found in the same pattern but at point b. requires that at Spain as yet. least one person, to be technical supervisor of the shop and employed full-time, must possess at least a vocational training qualification at level 2 or a3.1.3 Regarding labour regulation of trade qualification demonstrating an equivalent the sector level of competence. We may distinguish two types of worker on the basis of activity: Regarding point c., there is a list of machinery and tools that shops are obliged to have to offer a Workers performing repairs on vehicles and given speciality. mounting or installing auxiliary assemblies or spare parts. Itis further necessary to register with a Special Workers engaged in the sale and distribution of Registry of Repair Shops for Motor Vehicles and motor vehicles and spares. Motor Vehicle Equipment and Components, which are dependent on the Ministry of Industry andThe workforces of firms in this sector may be Energy or the corresponding regional body. The composed of workers of one type or the other, ora function of these registers is to identify and record mixture. the industrial activity of repair shops, in view of their relevance to road safety and the importance The general act regulating this area of law is the of the services they provide to road users. Workers' Statute, Act 8/1980, of 10th March. Ancillary to this statute as law is the Metalworking In order to carry on their business of repair work, Labour Code, promulgated by Order of 29th July firms must make application for installation of1970. This instrument has been repealed but electric power in consonance with their activities. certain sections remain in force. The other general This application is recorded in the registers kept by set of regulations relevant to the sectoristhe the Autonomous Communities referred to above, Labour and Trade Code, promulgated by Order of and finally the information is centralized at the 24th July 1971 and amended by Order of 4th Ministry of Industry and Energy. Although DecreeJune 1975. It should be noted that the codes from 1457/1986 provides in principle for a single 19 the previous political regime are all in the process User information (on prices, Iser rights, hours of repeal. of service, spare part catal gues and price lists). Specific labour activity is regulated by province- Right of admission (in terms of hours or makes wide collective agreements between trade unions of vehicle). and employers' organizations. These agreements Right to 'eceive a written estimate, a receipt for are normally for terms of two yearsand comply deposit of the vehicle with the shop, and to a with the general regulations mentioned above, written invoice. which will have ancillary force. Guarantee of repairs (for a given period of time or distance in kilometres). In recent years there have been attempts to reach a nationwide collective agreementfor the metal- Itisimportant to note that these regulations working sector, but this has not been possible toimplement part of the General Consumer and date as the parties have failed to reach an User Protection Act 26/1984 of 19th July. understanding. 3.2 Agreements between vehicle- These regulations are not normally extended to makers and repair and distribution companies having their own collective agreements firms whose terms exceed the minimum thresholds set at The main agreements of this kind are between provincial level and are more favourable to the makers and the repair and distribution firms which workers. Also excluded are companies whose are their agents. activities are mixed and which apply codes or regulations other than those governing trade orThe manufacturer undertakes to supply motor metalworking. vehicles or spare parts within the area defined in the agreement, only to the agent and to a Labour regulations are not normally applied tospecified number offirmsbelongingtothe senior management of enterprises. network. It also undertakes not to sell products covered by the agreement to final users (direct 3.1.4 Regarding training at work sales) within the stipulated territory. (general legislation) Under article 40.1 and 2 of the Spanish Constitu- In return, authorized repair shops and distributors tion (27/12/78), the public powers are respon-areentitledtothestatusofofficialbrand sible for instituting "a policy to guarantee voca- representative and toreceive technicalassis- tional training and retraining". tance, theoretical training and accessories and spares from the maker. It should benoted that they The Workers' Statute views "vocational training at are not allowed to modify theproducts covered work" as a labour right (Art. 4.7b) and establishes by the agreement, nor may they make or sell collective agreements (Art. 22.1 and 2) as the competing vehicles under the same business name vehicles through which toregulate measures (exclusivity). Nor may they sell or use for repairs or facilitating training processes. services competing spare parts which do not meet the quality standards of those covered by the The Basic Employment Act establishes the concept agreement. The agent may not enter into agree- of Vocational Training (Art. 14a) and entrusts the ments for the distribution or service of competing National Institute of Employment (INEM) with the products, nor may it subcontract distribution or organizationofvocationaltrainingandthe service activities (dealerships and services) in its incorporationofinstitutionsandspecia!;zed territory without the supplier's consent. bodies to carry it out. Furthermore, the agent must meet certain minimum Spainhas nospecificlegislationgoverning standards previously set by the supplier regarding continuing training. equipment andfacilities,personneltraining, advertising, reception, storage and delivery of 3.1.5 Regulations concerning products, preparation and maintenance. It must assurance of quality in repairwork andobserve order schedules and carry minimum protection of the customer stocks of vehicles and spares12. Where competence in matters of industry and consumer protection has beentransferred to an 3.3 Opening and staff working hours Autonomous Community, such regulations areThe length of the working day is as stipulated in promulgated by the regional government. Other- collective agreements or labour contracts, subject wise, the State regulations apply. These establish always to the provisions of the Workers' Statute: certain minimum requirements: the normal working week may not exceed forty

20 12 These aspects are currently governed by EEC Regulation no.123/85, of which the above is a summary. 19 hours of effective work; under no circumstances of which there are only a few in'le sector. may normal working exceed nine consecutiveEmployers' organizations and repair tradeasso- hours of effective work; and at all events at leastciations are better represented, and thereare twelve hours must elapse between the end ofone associations of repair shops (CETRAA), agents working day and the beginning of the nextand dealers (FACONAUTO, GANVAN), etc. (Art. 34.1 and 2, WS Act 8/1980). which have considerable influence on decision- making in the sector. The unions havevery little In many cases agreements and labour contractssay in the kind of production decisions that affect stipulate working hours below the legal maximum. employment, nor does the situation appear likely to change in the short or the medium-term. Under the decree regulating unpleasant, harmful, insanitary and hazardous industries, municipal The role of the social partners intrainingat authorities may prohibit repair shops from operat-sectorial levelis growing progressively as they ing between the hours of 9p.m. and 9 a.m. acquire an increasingly important part inthe various mechanisms affecting vocational training. Curricula in regulated and occupational training 3.4 Role of the social partners areestablishedthroughthesocialpartners' Employers and workers, represented by theirparticipating delegations and the public institu- respective legal associations, enter into collective tionswithresponsibilityintheseareas,as agreements, whichthuseffectivelyserveas provided by Act 1/1990 on the new education specific labour legislation for the sector. system. Likewise the newly-structured continuing training issuing from the accords of December With most repair shops employing very few 1992, which are discussed further below, illus- workers, union penetrationis very slight. The trates the fundamental role of the social partners in unions are only represented in large enterprises, this field.

21 20 4. EMPLOYMENT AND LABOUR

4.1 Trends in employment 4.2 Occupational structure The official statistics available in Spain do not deal Occupational structure depends very much on the with the car distribution and repair sector as an size of the firm in question. There is no single independent unit, and therefore the data in this organizational pattern that fits across the sector. respect are not reliable. In order to make upfor this deficit to some extent, we shall look here at As for broad occupational groups in the sector, the datafor"repairs"ingeneral.Thisheading first basic divide is between those engaged in encompasses firms engaging inrepairs of all repair work and those engaged in distribution and kinds, a large proportion of these being motor sales. Then aside from this division, there are the vehicle repair shops. Moreover, itis known that owners of the Firms andbusinesses, who are firms engaging in the distribution of new vehiclesnormally also the managers in small shops. A are also repair shops andhence the repairs managerisdefined as a person under the statistics will also include them. It must, however, immediate orders of the firm and having a say in be borne in mind when reading the statistics framing its policy, who directs, coordinates and is below that they do include workers outside theanswerable for the activities of the department motor vehicle repairs sector. under him.

Because of the structural peculiarity of the sector, Table 13 - Number of workers employed in "repairs". composed as it is of a multitude of small shops, occupational groups only exist to the extent that Year No. of workers they areessentialtothefunctioningof the business. Consequently, the vast majority of such 1982 201,300 firms employ a workforce that is by and large 1983 198,900 exclusively multi-functional, one of whom is also 171,200 1984 the owner of the establishment, acting as manager 181,200 1985 and even undertaking administrative functions. 1986 199,400 221,800 Itisin the larger enterprises that we find a 1987 workforce containing the full range of occupa- 1988 219,200 tional groups. In the absence of overall statistics, 1989 219,600 by looking at 1990 225,000 we may at least illustrate this point an enterprise which is considered tobe large for Source: Anuario de Estadisticas Laborales, 1987, 1988, the sector. This is an agency with a workforce of 1990 Direccion Genera! de Informotica y Estadistica. M9 38, structured in the following way: de Trabajo y Seguridad Social. central services 6 employees During the 1980s, employment followed a down- - 1 manager ward curve until 1984, when it commenced an - 1travelling rep. upswing. From 1987 to 1990, the level remained - 1 admin. asst.cl. 1 high, albeit with some fluctuations, paralleling - 2 secretaries employment trends in the country a whole. - 1 class-1 teamleader

7 employees Atpresentthereis some tendency towards sales service decentralization. Firms employing large numbers - 1 sales supervisor of workers tend to split up and form a "capillary - 1 sales secretary network" of smaller shops, still subject in one way - 5salespersons or another to the samegeneral management. However, as often as not these networks are not after-sales service 25 employees formed by opening new shops, but rather by the - 6 inpanelbeating and paintwork absorption of existing old ones. 1 team leader, cl. 1 4 tradesmen, cl. 1 As a result of this situation, the tendency is for a 1 tradesman, c1.3 slight but steady shrinkage in the number of workers per establishment. Specialized opera- - 10 inmechanical and electrical tives and operatives familiar with newtechnol- 1 Shop supervisor ogies are scarce. On the other handthere are 1 team leader, cl. 1 large numbers of traditional workers for whom 8 tradesmen, cl. 1 retraining is difficult because of their high average age and low levelof basic training. - 5 in spares 1 spares supervisor In general, the actual number of workers maybe 4 storemen said to have changed little in recent years, even though the number of firms has held steady or - 1 admin. asst.,cl. 1 even increased. Theresult has been further to - 2 secretaries 22 reinforce the pattern if small shops. 1 receptionist Thislistincludes almostallthe occupational 4.5 Working conditions groups existing in the sector. Split working days are a common feature of the sector. Repair shops open by and large to suit 4.3 Employment of special groups customer needs, which means organizing working There has been practically ,no recruitment ofhours to cover a wide spread of times of day. women, who are to be found as a rule in the Labour contracts are generally full-time, and there minority group of administrative workers and is a certain proportion of fixed term hiring, largely scarcely at all in the other occupational groups. involving young persons. Workers with permanent contracts tend to be older. Thereis no evidence of any influx of foreign immigrants to the sector. Immigration is a relativelyAn examination of recruitment in metalworking as recent phenomenon in Spain, and the last fewa branch of industry reveals certain tendencies: years have seen very little change in the pattern of recruitment to the sector. Table 15 - Proportion of fixed term employment by gender in the "metalworking and precision" branch of industry. As for the disabled, the regulations oblige all companies with more than 50 workers to engage 1987 1988 1989 1990 at least 2% disabled persons;inthissector, however, there are hardly any firms of that size. Both sexes 7.8 14.0 19.2 21.6 Men 7.7 13.1 18.5 20.7 4.4 Structure of the workforce Women 9.3 21.5 25.1 28.1 According to sources in the sector, almost 25% of the workers are aged under 25. The maximum Source: El Analisis de la Contratacion Temporal en Espana, age of workers generally coincides with retiring D. Segura, F. Duran, L. Toharia, 1. Bento lila. 1991. Centro age: 65. de Publicaciones del Ministerio de Trabajo y Seguridad Social. If we take the "repairs" sector as a whole (not only vehicle repairs), we find that employee numbers Itcon be seen that the trendinfixed term by sex break down as follows'3: recruitment is growing, with fixed term contracts trebling in the industry between 1987 and 1990. Table 14 In the motor vehicle distribution and repairs sector the proportion may be somewhat smaller since 1989 1990 there has been no large influx of young people in recent years, while it is precisely in this age group Men 208,800 214,400 that fixed term employment is most common. The Women 10,800 11,400 figure of 21.6% of fixed term conti acts in 1990 is not far in terms of proportion from the 25% of Women, then, make up around 5% of personnel young people estimated to be in the sector in in the sector. 1992.

13 Source: Anuario de Estadisticas Laborales, 1990. Dccion. General de Informaticay Estadistico. M" de Trabajo y Seguridad Social. 23

v 22 5. TECHNOLOGICAL CHANGE AND ITS IMPLICATIONS FOR QUALIFICATION AND TRAINING REQUIREMENTS

5.1 New technologies steering, etc., now that vehicle owners are legally The most important technologicalinnovations obliged to submit them to a Technical Inspection currently being introduced in the sector are a (ITV). response to the following needs: Management technology: the obligations im- Ecological needs:inresponseto growing posed by modern user protection and tax laws social awareness of environmental issues, theforce employers toinstall computerized office competing makers are incorporating ecology equipment with whichto make up detailed as o factor in their commercial and production invoices and deposit receipts, carry VAT and so strategies. To this end, new devices are being on.Firmsarealsobeginningtobuildup introduced for electronic regulation of fueldatabases withtheperiodicrequirementsof systems andcatalyticconvertors;harmful customers in order to provide more personalized chemical compounds ore being eliminated services. from paints; new methods are being devised for utilization and recycling of lubricants, and 5.2 Impact on firms so on. The rate at which new technologies are introduced to the sector has increased greatly over the last Economic needs: cost reductions are being five years, especiallyinthe field of repairs, sought at alllevels, by vehicle-makers and prompting a need for constant updating of knowl- equally by consumers, a development thatedge. The impact of this development on the inevitably affects this sector as the intermediary occupational structure is drastic: thus, the tradi- between the two. Thus. new injection systems tional all-purpose mechanic is tending to disap- reduce fuel consumption, new computerizedpear while the ideal worker profile for the sector in systems lead to reorganization of factory work, the relatively near futurewill be the worker and so on. specializing in new technical systems. The same is happening on the distribution side, where new, Legal needs: present-day regulations govern- largely computerized data systems are being ing taxation and attentionto the customer introduced and sales personnel are being forced make computerized office equipment abso-to familiarize themselves with the new vehicle lutely essential. In addition, safety legislation components, so as to know about the product they demands new elements, for diagnosis in the are selling. workshop (vehicleinspection,etc.) and on board (seat belts, new materials, etc.). All this also gives rise to a need for change in company management methods, so that manage- These needs are prompting the introduction of new rial structures, too, are affected by the introduction technologies in different spheres: of new technologies in the sector.

Vehicle technology: electronic and information- These new technologies bring with them new technology applications in various parts of the car training needs, a subject thatis addressed in are major factor in determining new modes of Chapter 6, Section 5. operation (eg, pre-heating, automatic door and window operation, seat adjustment, fuel systemIt is estimated that 88.7% of Spanish repair shops regulation, etc.). Other innovations include new have acquired some new item of machinery or types of corrosion-resistant material,synthetic equipment in the last two years'. Investment in compounds,steelgalvanized on bothsides, new technologies consists largely of the follow- ceramics, durable plastics and so on, which areing": gas analysis equipment, injection testing giving rise to changes in bodywork and paintwork (fuel), ABS testing, laser beds, electronic steering procedures, one of the areas where the need foralignment and balancing, gearbox module test- skilled manpower is greatest. ing, oil extraction units, etc. Clear most such equipment is for diagnostic purposes, which is Diagnostic technology: as repair tasks undergoillustrative of the change that has come about in qualitative change, new instruments are also the concept of repairs. being introduced to detect malfunctions in parts of the vehicle. This type of instrument incorporates The need of a serious drive for technology has far- a good deal of information technology, an area in. reaching implications for the structuring of the which Spain is very short of specialized man- sector. Most repair shops are not equipped for all power and one whichisrapidly becoming kinds of work and are forced to specialize. Thus, essential. And again, new safety-related diagnos- repair shops are increasingly being organized tic systems are coming in, particularly for tasks like around a specific speciality, while serv..:es they periodic checks of brakes. tyres and wheels,cannot provide are contracted out. Thisis an

14Source: "Nuestros Talleres", 1990. 24 15 Source: Sectorial surveys on Maintenance and Repo rs, by INEM, 1992. 23 essential feature of the changing structural organi- new technologies; they are required by the maker zation in the sector, and one of its results is greater toirvestconstantlyinnew machinery and interdependence of firms. training. And thesefirms too make up an interdependent network with the manufacturer at Small independent shops have no easy access to the centre. either financial or training resources with which to adapt to the constant stream of technologicalThe new technologies, then, are giving rise to change. This is leading to a growing interdepend-structural changes in the sector, resulting in greater ence among firms, through specialization and interdependence of firms, both among the author- subcontractingofservices,butalsothrough ized services, whose dependence on the makers is combination to secure the necessary training. increasing, and among independent shops, which tend to specialize and need to join forces in order Firms linked to vehicle builders are better placedto adapt. than independent firms as regards adaptation to

25 6. TRAINING AND RECRUITMENT

6.1 Education and training systems Table 16 - Numbers of students enrolled in vocational training (FP1 and FP2), Motor vehicles branch, The instruction most relevant to the sector that from 1981 to 1990: concerns us here is the kind imparted aswhat has come to be called "vocational training". This Motor vehicles F.P.1 F.P.2 Total training may be "regulated" or "non-regulated", depending on whether or not itis part of the 1981-82 34,280 10,712 44,992 education system run by the Ministry of Educa- 1982-83 37,089 13,731 50,820 tion. 1983-84 37,084 16,308 53,392 1984-85 38,011 16,744 54,755 1985-86 36,"63 17,866 54,629 6.1.1 Regulated vocational training 1986-87 36,394 18,651 55,045 a. The present content of this kindof training is 1987-88 36,129 18,117 54,246 regulated under the General Education Act of 1988-89 34,632 16,677 51,309 1970;thisis now technically repealedbut 1989-90 36,246 17,365 53,611 remains in force pending full implementation of the Education System Reform Act of 1990. We are Source: MEC, Oficina de Planificacion de la Subsecretaria, Servicio de Estodistica. currentlyina phase oftransitionfrom one educational model to another. b. Vocational training under the Education System Under the 1970 Act,the Spanish education General Planning Act (LOGSE) of 3rd October system is organized in the following way: 1990. Under this new act, the education system is to be organized in the following way: There is compulsory primary instruction denomi- nated basic general education (E.G.B.), attended Compulsory education from the age of 6 to 14. Upon completion of Primary education (age 6-12) E.G.B., students may move on to school leaving Secondary education (age 12-16) (taking in certificate level (B.U.P.) (age 14-17), and from basic vocational training with technological there to university by completing a university education). orientation course (COU). Non compulsory education Students having completed E.G.B. can also move 4' School leaving certificate (age 16-18). There on to vocational training. This consistsof two are to be at least four streams: Arts; Natural structurallevels:first-levelvocationaltraining and Health Sciences; Humanities and Social (FPI) and second-level vocational training (FP2). Sciences; and Technology. These w include Third-level vocational training,although envis- provision for basic vocational training through aged in the 1970 Act, never got off the ground. optional and/or core subjects. Students completingthefirstlevelreceive a "technical assistant"certificateinthe relevant Vocational training. Entrants will have passed occupation. Those completing the second level through compulsory secondary education and receive a "skilled technician" certificatein the are admitted either by presentationof a certifi- relevant speciality. cate of completion or by entrance test. Successful completion of th s cycle leads to the "Technician" Training courses are available in 21 branches, certificate, equivalent to EEC skill level 2. each of which hasits own occupations and specialities. Below are some of those relating to Higher level. Upon completion of the school the sector that concerns us here. leaving certificate course, students enter higher level training either by presenting their Certifi- cate or sitting an entrance test. On completion of Branch Occupations this level, they are awarded a "Higher Techni- cian" certificate, equivalent to EEC skill level 3. Motor vehicles Motor vehicle bodywork FP 1 Motor vehicles Motor vehicle electrics Since 1988, a system of "training modules" has Motor vehicles Motor vehicle mechanicsbeen in operation to try out the future FP training cycles and update course contents. These reflect Specialities existing skill levels in the labour market, and the training they afford is equivalent to levels 2 and-3 FP2 Motor vehicles Motor vehicle mechanics of the five laid down by the TEC Council Decision and electrics of 16/07/85.

The intention of this new education system is for Student numbers increased gradually up to thestudents to gain a multi purpose grounding at academic year 1986-87. The studentrollin compulsory secondary education and school motor vehicles peaked in the mid-1980s,falling leaving certificate levels, leaving more specific 26 off slightly thereafter. areas of knowledge to the intermediate andhigher 25 training cycles (FPE). It is intended in this way to 6.1.2 Non-regulated vocatknal train- facilitate retraining within the same occupational ing family, for which only specific vocational training, This kind of training is the responsibility not of the ofspecifiedduration andstructure,willbe education authorities but of the labour authorities. required. While it is the latter who provide this training, the act expresses the intention of assuring coordination Table 17- Experimental training modules delivered during the between regulated and non-regulated vocational 1990/91 academic year on "motor vehicles": no. of groups, no. of students and province in which , purses were run. training, through both administrative departments (s. 30, LOGSE). "Occupational vocational training", as it is called, is intended to ensure adequate No. No. of Modules Level groups workers training for all those wishing to enter working life and those already in workinglife who seek Bodywork 2 2 25 Asturias retraining or further occupational specialization. Leon Since 1985 there has been a national plan for Motor vehicles 3 4 59 Madrid Zaragoza vocational training and work entry (Sp. "Plan FIP"), of which the National Institute for Employ- Source: Report on Experimentation in Vocational Modules, ment (INEM)isin charge. The plan regulates year 1990/91, MEC. training courses of this type and seeks to ensure

Table 16 - Diagram of the Spanish education system as provided in the Education System General PlanningAct (Act 1/1990, of 3/101:

Years

I University I 24 I Cycle 3

23 I

University 22 Cycle 2

I 21 I

r-20 University Cycle I I 19 University colleges 118 Working life

Vocational training Univ orientation course 11-7 Level 2 General Speciol Scheme Subject --I Scheme 17

I.-- 1 ; I Access I !

I l School leaving certificate 16

15 Vocational training Level 1 14 !

, 14

L12

Basicgeneral education

1- S

26 BEST COPY AVAILABLE that 'they are properly adapted to the labour Thesefigures confirmthescant presence of market. Certain economic and social institutionswomen as opposed to men in the sector.None- cooperate in the plan by organizing occupational theless, the number of women attending courses vocational training courses. relating to motor vehicles has quadrupled in the last four years. The functional scope of the national plan for vocational training and work entry(FIP) was Table 21 - "Motor vehicles" students: number of positive evaluations by age: modified and regulated by Royal Decree 1618/ 1990, which established target groups among the from 55 and unemployed population and also among em- Age group: under 25 25 to 54 over ployed workers through continuing training agreements with companies. This scope is due for Year: amendment in the near future. Thus, in view of the recently-signed tripartite agreement on continuing 1987 1,716 1,454 46 training of employed workers, discussed further 1988 2,890 1,136 16 below, the government has undertaken to repeal 1989 3,123 1,316 27 and replace the Royal Decree cited above. The 1990 3,466 1,294 23 purpose of this is to adapt thelaw to the new circumstances and limit the scope of the plan to the Source: Anuorio de Estadisticas Laborales, 1988, 1990. Direction General de Informatica y Estadistica. M' de unemployed population, since starting this year, Trabajo y Seguridad Social. training of employed workers will be carried on within the collective agreement framework and It is clear that more and more young people aged always in-house. So, from now on the labourunder 25 are going in for this kind of training, authorities will be responsible for occupational already three times more than the other age vocational training only of the various groups of groups. It is equally clear that workersaged over unemployed. 55 are a small and ever-shrinking section on these courses. The 25-54 age group hasremained the Information on occupational vocational training: most stable as regards attendance on courses, although there is a slight downward trend. Table 19 - No. of courses completed within the "motor vehicles" family, and bodies delivering them: Following priority guidelines, a selection is made of the training activities best suited to the labour Year: 1986 1987 1988 1989 1990 market, and on this basis the courses are set up. No.: 306 262 352 406 413 The courses relevant to the sector of interest here have a high priority rating and hence their volume Bodies: has been increased. There has been a consider- ablerisein demand for coursesrelatingto INEM 62 94 90 107 110 bodywork and paintwork in particular; in con- Local authorities 35 37 33 15 trast, courses on mechanical repairs now merit Cooperating only a medium priority rating, despite the large 244 133 225 266 288 centres numbers of students involved. Source: Anuario de Estadisticas Laborales, 1987, 1989, 1990 M° de Trabajo y Segundad Social. 6.1.3 University-level training The number of courses on "motor vehicles" hasThe relevance of this kind of training to the sector been increasing yearly, as have all courses in of interest is slight. There are very few courses on general. By and large, courses are delivered by subjects relating to vehicles, and they are not cooperating bodies(trade unions, employers' normally oriented towards entry in this sector. It organizations, etc.), although the INEM has alsoshould be noted that there are very few people in increased its share in this kind of training. this sector with university-level training.

Table 20 - "Motor vehicles" students: number of positive 6.2 Occupational structure as related to evaluations by gender: training Repair service workers generally have primary 1990 Year 1987 1988 1989 level education (sometimes incomplete), especially older age groups who have learned all they know 4,119 Mule 3,093 3,735 3,782 on the job. The youngerworkers tend to have 128 307 684 664 Female intermediate-levelstudies (vocationaltraining), again sometimes incomplete. Total 3,221 4,042 4,466 4,783 There are no data on sales workers, but they are Source Anuario de Estadisticas Laborales, 1988, 1990. Direction General de Informatica y Estadistica. M° de known to possess a higher background training 28 Trabajo y Seguridad Social. level than those in post-sales services. 27 Table 22Courses for recruitment of the unemployed within relevant regulated training (vocational training, the "motor vehicles" occupational family taking place in 1989 and 1990: motor vehicle branch) has little practical content and is often outdated, that at the end of the day it is the repair shop that actually trains the worker. Description of course No. of students

1989 1990 This situation is currently changing as the new technologies make specialized training absolutely Mechanical motor vehicle repairs 1,9372,196 essential, andifitisto have real value a Panelbeating Si painting, bodywork repairs 729 1,221 qualification must include this. Panelbeating, motor vehicle bodywork repairs 421 519 Painting, motor vehicle bodywork 126 187 As to sales workers, the feeling by and large is that Panelbeating, motor vehicle bodywork while theoretical training is important, one learns building 60 the trade on thejob.For this reason more Painting, bodywork sign painting importance is generally attached to the sales- Mechanics, repair of 4-stroke gas & diesel person's personal qualities and aptitudes (eg, the engines ability to persuade) and his or her knowledge of Diesel engine adjustment 233 470 the market, the company's products and competi- Mechanics, repair of 4-stroke diesel engines 463 666 tors' products. Motor cycle mechanics 90 225 LIN B-P injection pump adjustment 135 166 B.P. rotary injection pump adjustment 100 160 As regards repair shop managers, it must be said 2-stroke int. coin. engine adjustment/assembly that under current regulations, no prior qualifica- Gas injection equipment assembly -tion of any kind is required to run a repair shop, Motor vehicle electrics 1,5162,022 except in the Autonomous Communities of Galicia Motor vehicle electrical mechanics and Catalonia, where avocationaltraining Repair of on-board electr. circuits 129 180 certificate (FP2) is required (although candidates Expert in motor vehicle diagnostic methods may alternativelysitaqualifyingtest).The Assembly /repair, vehicle steering and management side has traditionally been rather a suspension question mark in many repair shops, especially the Assembly /repair, vehicle drive and smaller ones, as owners have always been viewed transmission equipment as more mechanic than businessman. Assembly/repair, brakes

Source: Observatorio Permanente del Comportamiento de las Ocupaciones. Criterios dofinitivos de prioridad de6.4 Continuing training programacion de acciones de F.P.O. para 1991. INEM, There is generally very little continuing training :January 1991. despite growing concern about it in the sector.

Of establishment owners or managers, aroundCertain social groups are now taking action to 8.2% possess no studies whatsoever, 40% have palliate this lack of training which affects most primary studies, 50% intermediate-level studies sectors of the Spanish economy. In Catalonia, for (master tradesman or vocational training certifi- example, the most representative o. both workers' cate), and 1.8% have engineeringqualifica- and employers' intersectorial organizations have tions'. signed agreements (commencing in 1990), based upon the premise that vocational trainingis a 6.3 Skills required by the major decisive factor for the personal and occupational occupational groups advancement of workers. Their purposes are to In the repair services group, accredited experi-improve the companies' competitiveness, to take ence is generally awarded more importance than up the challenge posed by the Single European academic qualifications when hiring workers. In Market, and to adapt to the rapid pace of the case of the occupation "motor vehicle electro- technical, economic and industrial change. mechanic", the grounding normally required is judged to be equivalent to FP2 level, whereas forIllustrative of the scant incidence of vocational the occupation "motor vehicle panelbeater/paint- training in the sector is the fact that of the 52 er" the required level is equivalent to FP I or FP2provincial collective agreements in metalworking, (depending on the specific job). In either case a75% make no provision or introduce nothing new minimum of 1 to 3 years' work experience isregarding the general legal regulation of training. normally required' 7. Cther agreements make provisions on training, The reasonfor the requirement of accredited but as a rule the commitments made are not at all experience is that the instruction provided by the specific' 8.

16 Source: The authors, utilizing data for 1990 suppliedby the magazine "Nuestros Talleres". 17 Source: INEM sectorial surveys on maintenance andrepairs, 1992. 18 Source: "Analisis de la Politica Contractual en Materia de Formation Profesional Continua", dir. F. Duran Lopez and M. Alcaide Castro, 1992. Pending publication. 29

'2$ Vehicle and spares manufacturers organize re- on subjects relating to diagnostics and replace- fresher courses for their agents and allied firms. ment of parts or assemblies, in line with the This training normally coincides with the progres- tendency towards less repair work. sive introduction of new technologies to the sector. Anothertypeofcontinuingtraining isthat Table 23Average time and money spent yearly on training imparted to future workers in the sector. As there by Spanish repair shops: is no apprenticeship, initiatives are going forward to allow regulated vocational training students to Hours/year Pta/year do practical training in repair shops. The practice was first introduced in 1984 and sincethen has Overall average 224 300,000 been on the increase.

Averages by type: Training of workers in employment in Spain will, however, alter radically as from 1993 as a result Shops linked to manufacturers 300 700,000 Independent shops 50 100,000 of the "National Agreement on continuing training"signed on 16th December 1992 by the major Source: "Nuestros Talleres ", April 1992. unions and employers' organizations, and the subordinate "Tripartite Agreement on continuing If we take the average personnel number per firm trainingof workersinemployment",signed across the sector to be 5, then the overall averageimmediately thereafter by the same union and time spent on training per worker and year is 44.8employer organizations. hours, and the average amount of money is Pta 66,000. The basic idea of these agreements is that workers in employment need a continuing training system In the absence of more precise information, these connected with their places of work and hence figures will at least serve to identify existing trends. forming part of the system of social and produc- To begin with, the difference between tied shops tionrelationshipsprevailinginthefirms that and independent ones is very large. The same employ them. sources indicate that 21% of repairshops spent nothing on training in that year, although in factThese agreements give formal expression to the the figure could well be higher given that many conviction that government, employers and em- firms record as training expenses such tenuously ployees need to reach a consensus on the funding relevant items as magazine subscriptions and the and likewise on the organization, running and like. The above figures may also include occupa- delivery of continuing training within the firm. tional vocational training. The tripartite agreement, which is to be effective Continuing training is generally provided in the from 1st January 1993 until 31st December 1996 large enterprises,particularlyinrepair shops with provision for an extension of equal durin linkedin one way or another tovehicle orbefore expiry, possesses regulatory force and is component manufacturers, and thecostsare generallyapplicable. Itsprovisionsmust be normally covered fully or in part by the company observed in collective bargaining at sector and itself. Small independent shops have great diffi- enterprise level. culty in securing this kind of training because they lack the resources. The role of the signatories representing employers and workers is to accept fullresponsibility for Between 25% and 50% of repair shops and design, organization, management, distribution of distributors may be said to have some form of funds,performance of trainingactivities and training: justification thereof. The role of the government, acting through the Ministry of Labour and Social training provided by the firms themselves or bySecurity, is to lend support and counsel, particu- organizations to which they belong: thisis larly through access to public infrastructures. aimed chiefly at business managers (sales techniques, management techniques, etc.).It The agreement will be financed from the current is occasionally included in vocational training training provision of 0.7%. The distribution in programmes. 1993 is to be 0.6% to gaining of unemployed, and 0.1% to continuing training.In 1996 the Training provided by component and equip- provision for continuing training will be 0.3%. The ment manufacturers (suppliers): this is largely oudget will be managed and applied jointly by the confined to basic instruction on products. unions and employers' organizations.

Training provided by vehicle-makers, aimed atThe agreements on continuing training provide for agents and dealers: this focuses increasingly the following actions:

30 29 a. Collective plans Diesel engines. Catalytic convertors. b. Individual training release. Air conditioning and control. 16-valve engines. a. Group plans are to be in-sector and cross- "Ecological" engines. sector. There are also new diagnostic and repair systems Within the sectors there are company plans, that must be adapted to. These include: developed and presented by companies with more than 200 workers, and group plans, which Injection diagnostic systems. group companies togetherto make up 200 Exhaust gas analyzers. workers for training purposes. The latter constitute ABS test benches. an important step towards solving the problems of Electronic steering alignment. small and medium enterprises and may be Automatic circuit and DIS checks. initiated by both employers and unions. Source: INEM sectorial surveys on maintenance and Cross-sector plans envisage training on subjects of repairs, 1992. common interest to more than one sector. In overall terms, the areas in which repair firms b. Individual release, a practical development ofspend most on training are: electronics, with 44% the legal provisions of the Workers' Statute, will of total investment; ABS systems, 13%; familiar- entitle employed workers to 150 hours of training ization with new vehicle models, 10%; body and per year. Such training must meet certain condi-paintwork, 9%; diagnostic equipment, 9%;gear tions: attendance must, be in person; the courseboxes and automatics, 6%; and suspension, must be officially authorized; it must be intended steering and brakes, 3%19. todevelopor adapt occupationaltechnical qualifications;itmust not be includedin anyThe vocational training supplied by the public company or group plan. education authorities is moving in this direction, but according to sources in the sector, it still falls Both plans and releases must be submitted forvery far short of what the market really requires. approval to the joint commissions and representative organs invested with powers to deal therewith 6.6 The training effort: distribution by in both the National and the Tripartite Agree-types of enterprise ments. By far the greatest training effort is being made by the agents and authorized dealers. The agreements also appoint bodies and commissions to manage, control and monitor the sameAs will be clear from wha; has gone before, only agreements. enterprises with sufficient resources to maintain research centres are in a position to organize These agreements mark a qualitative leap for training.These are almost exclusivelymulti- continuing training in the sector and in the firms, national manufacturers, none of which is under and the social partners in the sector are alreadymajority Spanish ownership. These enterprises moving to put it into practice. provide training for their own networks of agents and authorized dealers. 6.5 Training needs arising from new technologies The small independent repair shops are excluded, New technologies are generally introduced by but they still need somehow to gain access to manufacturers. The most important for this sector training. Many small firms cannot release workers are: because they would lose too much revenue while these were on courses. Nonetheless, in response Glass fibre. to the general difficulties of this kind across the ABS. sector, private firms have begun to appear offering Electronic injection. technical training. These provide repair firms with Motor vehicle electronics. both basic training and continuing training: thus Bodywork: panels and paint. for example, in 1991 Tecnomovil delivered eight On-board computers. thousand hours of training to 500 repair shops Smart suspension. involving a total of 1100 persons.

19 Source: "Nuestros Talleres", 1990 31 :3U 7. CONCLUSIONS

Inthelightof our detailed examinationof A major change is coming about in the sector's the sector, we may identify certain characteristics functional structure: the high cost of adapting to and trends that go to make up a nationwide the new technologies is prompting many firms to picture. specialize in very specific activities, subcontract- ing work outside their narrow field to other firms. The sector is highly fragmented. The majority The result is a high degree of interdependence are small,quasi-family concerns, with a low among repair shops. degreeofspecializationandscantcapital resources. Large concerns are beginning to decentralize their services by setting up a number of special- The persistence of this fragmented, unspecial- ized firms. In this way the number of firms in the ized irsicture is related to the considerable age of sector has risen, although the new growth is linked Spanish cars (despite far-reaching modernization to a greater or lesser degree to a small number of over the last 5 years). power centres.

Repair work itself is changing qualitatively to The trendinemployment levelsisstable, become more maintenance work:carparts although on a slight downward drift. There is no nowadays are not mended but replaced. More-solid emergence of a younger generation in the over, the profile of these firms is turning increas- sector, among other reasons because the training ingly .to the "services" side. Business strategies offered by the education system is ill-suited to the tend to stress the concept of "quality" as a means needs of firms, which therefore prefer to recruit of attracting more custom. And it should not be workers with experience. forgottenthat thefirms engaginginvehicle distribution are also repair shops. The importance of the role played by the social partners varies a lot depending on the area of Domestic sales sustained a strong upward drive action: their interventionis necessary for the during the second half of the 1980s, peaking inconclusion of the collective agreements that are 1989. 1990/91 saw a drop, with signs ofto regulate labour activity and certain aspectsof recovery in 1992. Forecasts for the coming twotraining. On the other hand, the sector is very years are moderately optimistic,based upon the scantilyunionized,sothattheunionslack enormous growth potential of the Spanishmarket sufficient strength to impose their decisions and in view of the current low level of car ownershipsupervise compliance with the agreements. The and favourable population age structure. employers' organizations in the sector enjoy a high degree of decision-making power, in contrast The sales market presents a highly concentrated to the unions. structure:distributionchannelsrunfromthe makers through firms tied closely to them. Each Private organizations are making their appear- maker has its own exclusive primary and second- ance, engaging in the provision of training to ary networks. repair shops and targeting firms not linked to any of the vehicle-makers. These repair firms also New technological elements enter the sector receive continuing training from spare part and is through the vehicle and part-makers.Itis these component manufacturers, but such training new elements that determine the training require- extremely narrow and specialized. ments to which all firms have to adapt inall It must be remembered that vehicle manufacturers occupational categories and bring about changes are increasingly becoming "assemblers"of parts in the nature of tasks.It should be stressed that made by spares manufacturers, and that it is the these makers areallforeign-owned multi-na- latter who are introducing the most important tionals, so that the changes introduced in thetechnological innovations (and are consequently domestic sector are driven from abroad. the best placed to provide training).

The most salient consequence of these changes The ideal worker profile for the short term is is the pressing need of firms to secure the training one with a well-developed capacity to adapt to required to adapt to prevailing conditions; and technological change plus specialized training in given the shortcomings of the education system, one or more of the various tasksundertaken by the such training is almost exclusively in the hands of sector. To achieve this, a solid body of basic the manufacturers(theenterpriseswiththe training is needed, along with planned continuing capacity to research and create new technol- training in the firm, thus enabling businesses to ogies). And yet, even though they acknowledgekeep permanently up to date withtheskills the extreme importance of training, most firmsrequired in response to the constant changes (in (especially the smaller ones) devote very little to techniques, organization, etc.) brought about by it. new technologies.

32 8. BIBLIOGRAPHY

Ana !Isis de la Politica Contractual en materiaMEC, lnforme sabre Ia Experimentation de de Formation Profesional Continua. Dir. by MOdulos Profesionales, curso 1990/91. Federico Duran Lopez and Manuel Alcaide Castro, 1992. In process of approval and publication. Min.ofIndustryandEnergy,Reglamentacion de Tal leres de Reparation de Autom incites, ANFAC, Boletin Estadistico, Dec. 1991. 1990.

CETRAA, Ponencias del Primer Congreso de Ia Min. of Labour and Social Security, Yearbook of ConfederationEspanola detalleresde Labour Statistics, 1985, 1987, 1988, 1990. Reparation de Autom Oviles y Afines. 1990. Min. of Labour and Social Security, Centro de Pub- ECOPLE S.A., El Sector de Turismos y Vehiculos licaciones,"El Antilisis de Ia Contratacion lndustriales en Espana y en el Mundo: Temporal en Espana", D. Segura, F. Duran, L. Presente y Futuro. October 1990. Toharia, J. Bentolila. 1991.

Fundacian CONFEMETAL, La Contratacion Colecti-Auto Profesional, July 1992 (Magazine). va del Comercio del Metal en 1991. Cuadernos de Chapa y Pintura, nos. 29 to 30, INE, Industrial Survey (1986-1989). 1991-92 (Magazine).

INE, Statistical Yearbook 1991. Nuestros Talleres, 1990, 1991, 1992 (Magazine).

INEM, Observatorio Permanente del Comporta- Red Accion, no. 11, September 1992 (Magazine). miento de las Ocupaciones, January 1991. Talleres de Comunicacion, July-August1992 MEC, La FormaciOn Profesional Reg lada en (Magazine). Espana. October 1991.

33 9. NOTE ON METHODOLOGY

It should be noted that the sector referred to aswe delve into the past, so that it is oftendifficult to "motor vehicle repair and distribution" is not dealtfind comparative data for different times. with as such in official Spanish statistics. Some of the activities undertaken in the sector are normally The survey had to be compiled largely on a lumped together with a host of other activitiesqualitative basis, by attempting to identify trends under the general heading of "repairs". Others rather than furnish concrete data. come under such headings as "metalworktrade", or simply "metalworking". In cases wheresuch statistics refer to the "motor vehicle sector", the As to the parts left out, it is important to note that, figures usually refer to manufacture, distribution among others, more data are needed on industrial and repairs all together. There is, then, a general vehicles, on vehicle importers not manufacturing dearth of statistical data on the sector concerned in Spain, on types of recruitment in the sector, and here. This lack of information deepens the further data for past years in some areas.

34 33 PART 2:

1. Romagosa Automoviles S.A. 2. Enterprise "A" 3. Enterprise "B"

4. Prades Motor S.A.

34 1. ROMAGOSA AUTOMOVILES S.A.

Size: 4 The last of these has a floor area of 2,608 sq. m., with accessories and spares sections, a small Brand: Suzuki showroom and a mechanical workshop.

Motor vehicle categories: A, B All Romagosa's sales and post-sales establish- ments21 are located in the city of Barcelona. The Type: C workshop hassectionsformechanical work, electronics and electrics, and body and paintwork. 1. General description of the case Thisstudy concerns an agentforall-terrainThe firm also has a network of 16 dealerships vehicles which has been very .much marked by engaged exclusively in sales, repairs and spares the changes it has undergone. It started life as for Santana-Suzuki vehicles. These are located in agent for a make that has been manufactured inthe following towns in the Province of Barcelona: Spain since the 1940s, but now that make is in a Terrassa, Sant Cugat del Valles, Sabadell, Gran- process of gradual disappearance and is being ollers, Sant Celoni, Vic, Motor& Vilafranca del replaced by another make and vehicle following Penedes, Vilanova i la Geltrii, Igualada, Santa acquisition of the manufacture.: by a Japanese Coloma de Gramanet, Olesa de Montserrat, Rubi, firm. Cerdanyola delValles,Pineda de Mar and Ma rtorell. In view of the decisive influence of the manufacturer on policy and training at Romagosa S.A., the S:x of these dealerships are to become agencies study includes a detailed analysis of the manufac-and business partners of Romagosa Autornoviles turer's recent strategy. S.A. 2.2 Brief history and recent 2. General description of the firm development The firm was originally named Stevenson Roma- 2.1 The firm gosa y Campania. Founded with Spanish and Romagosa Automoviles S.A., founded in 1903, is British capital, it engaged in the importation and an agent locatedin the metropolitan area of sale of British coal. Barcelona. Its share capital currently stands at 3 million pesetas. The firm engages in distribution In 1919 it acquired the plant and the patent for the and repair of Santana and Suzuki 4-wheel-drive manufacture of a Spanish motor vehicle, which vehicles (Vitara and Samurai versions), for which went on to the market in 1921. they enjoy exclusive rights within the Barcelona metropolitan area. At the same time as it ventured into the world of car manufacture, Romagosa began importing and The specific services for which Romagosa has the distributing British, American and later German exclusive agency are: vehicle repairs, supply of vehicles. spare parts, and new and used vehicle sales. Shortly after the end of the Second World War, the The firm possesses 6 establishments in the city offirm was appointed official importer for The Rover Barcelona devoted to various purposes. These Company Ltd., then not long after that, the maker are: launched the Land Rover all-terrain vehicle.

One establishment devoted to general man- Romagosa AutornOviles acquired a licence to agement and administration20. manufacture the Land Rover in Spain. This licence it ceded to Santana Motor S.A. and currently still Three establishments with vehicle showrooms,sells the Land Rover, along with Suzuki products one of which also provides repair and spares made at the same factory. services. In response toitslarge sales volume and the One set of premises employed as a used requirementsof themanufacturer, Romagosa vehicle showroom and for storage of new and Automoviles has now begun a process of associa- used vehicles. tion with some of its dealers, with a view to setting up new agencies in the Barcelona metropolitan Lastly, one establishment devoted to prepara- area, where Romagosa hitherto enjoyed exclusive tion, delivery and stocking of new vehicles. rights.

20 The facilities and personnel at the asterisked establishments are shared with the agent for another brand belonging to the same business group

I The term post-sales encompasses all activities relating to vehicle repairs and sale of spares and accessories 35

35 It has been decided to set up 6 new agencies in It is divided into sections dealing with accessories the metropolitan area, based on the existingand spares, bodywork, paintwork, mechanics, dealerships.Both Romagosa AutornOviles and electrics and electronics. the dealers involved will have shares in these new firms. There are 25 workers, distributed as follows: 10 inmechanics,electrics and electronics 2.2.1 New technologies (including the shop supervisor). July 1986 saw a substantial change in govern- 6 in body and paintwork. ment ordinances defining and regulating guaran- 5 in accessories and spares.

tees to users. This change indirectly affected the 1 receptionist. training of employees in the post-sales network in 3 administrative assistants. three particular ways. 2.3.1 Work organization Firstly, the regulations lay implicit stress on theThe workflow at the shop is as follows: when a obligation to establish competitive prices, which client brings in a vehicle, he is attended to by the means cutting costs of manpower, productionand receptionist, who is an experienced mechanic and services.Thus,thefirmneedstointroducediagnoses the fault. advanced production methods which will lower the cost of repairs, which in turn means rationaliz- After diagnosis, the receptionist hands over the ing the means of production and providing thevehicle to the shop supervisor or to the assistant training necessary to deal with these technological (section head) in charge of the electrical and changes. mechanical section, unless this is solely a bodywork and paint job, in which case the vehicle is handed Secondly, the entire sphere of repair guarantees is over directly to the body and paint section head. now regulated, so that high-precisiondiagnostic and repair techniques are an absolute must to Next, the shop supervisor (or his assistant) verifies reduce theriskof error, and equally,skilled the receptionist's diagnosis and decides which personnel who know how tooperatethese parts of the vehicle he thinks need to be changed. systems and possess detailed knowledge of theAt this stage, however, the diagnosis is tentative, vehicle to be repaired. since a fault cannot be properly identified without an internal inspection. Thirdly, the some document establishes the right of the user to a detailed and precise estimate of any From here, the vehicle is passed on to the section repair, which requires a computerized system that head, who assigns therepair to any of his covers all eventualities. This in turn meansthat the subordinates, normally on the basis of availability employees who are to do this work will need basic rather than particular skill, although if a repair is vocational training. especially complicated, the vehicle will on occasions be handed over to the most skilled or the Furthermore, thesectorial agreement (section: fastest worker. provisionsgoverningpay)acknowledges the need for training activities aimed both at retrain-This is an important point to note. According to the ing of workers and at fostering recruitment in the shop supervisor, as a rule all operatives should be sector. capable of dealing with any kind of repair however complicated it may be, and if they lack 2.3 Structure of the firm sufficientpractice on a givenjob,they are The Romagosa Automoviles repair shop in the citysupposed to go to the section head or shop of Barcelona has a floor area of 2600 sq. m. and supervisor as often as need be for help and advice. handles from 300 to 350 vehicles a month. In the body and paintwork section, this step is not

Table 24 - Organizational chart

Shop supervisor

Administrative Spares & Repairs department department acc. department

,_-_ 1 Body-point 1 mech.-elect Admin asst CI 1 Spares section head section head section head

1 7 Operatives 1 Electrician 5 Storemen 2 Secretaries I 3 Panel beaters If 2 Painters 36 36 required, since, as already mentioned, the vehicle 51.6% are aged between 36 and 65. This would is handed over directly to the section head, and it is help explain the training problems found in post- he who checks the diagnosis, without the interven-sales through low training background levels. tion of the shop supervisor. Table 26 - Sales

Once the repair is completedthis is in the case of Absolute nos.Relative nos. a relatively complicated repair the operative tests the vehicle. If the operative is not considered From 18 to 25 1 14.3% From 26 to 35 2 286 %0 experienced enough, he will be accompanied by From 36 to 50 4 571% the section head or the shop supervisor. Si and over 0 -

After checking that the vehicle is running properly, The sales workforceisdistributed as follows: a report is remitted to the cashier's office, where a 57.1 % are aged between 36 and 50,the detailed invoice is drawn up. remaining 42.9% being under 35. Table 27 -The occupational structure of the firm is as follows: Finally, the repaired vehicle is handed over to the client by the receptionist or, failing him, the shop Occupational category No. of employees supervisor or a section head. Central Repair office shop Sales Clearly the shop supervisor has a very important Manager place in all the day-to-day activity of the shop, Shop supervisor from on-the-job training of employees to manage- Spares foreman ment and even actual repair work. Repairs receptionist Travelling representative Tradesman CI. 1 2.4 Human resources section head 2

Admin. asst. Cl. 1 1 1 2.4.1 Personnel structure Tradesman Cl. 1 The central and post-sales services workforce mech. & electronics 12 Tradesman Cl. 3 1 r,umber 31: 25 men and 6 women, giving Storemen 4 respective percentages of 80.6% and 19.4%. Secretaries 2 2 1

Handyman 1 Sales manager The sales department has 7 members: 6 men and 1 Salesmen 5 1 woman, giving a similar percentage distribution to the above (85.7% and 14.3%). If we look now at the correlation between gender and occupational category, we findaclose Clearly, women are in a minority on the work- correspondence between the proportion ofwom- force. en and the proportionof tasks of the kind traditionally assigned them. That is, 100% of the Looking at the development of the workforce,one women in central and post-sales services belong striking fact is that while sales personnel numbers to the categories of secretary or administrative have remained stable since 1987, the same is not assistant first class, while the woman insales true of central or post-sales services, which in four belongs to the category of sales secretary. years have grown by 7 persons. This is quite a significant increase given that it represents 22.6% 2.4.3 Working conditions of the workforce in this area of the firm. The paystructure incentralandpost-sales services, byoccupationalcategories, is as This increase reflects growth of the II-rm and the follows: need mentioned earlier to bring in personnel qualifiedtomeet the changing requirements Table 28 prompted by the introduction of new technologies. Occupational category Gross annual pay (Pia) 2.4.2 Classification of the workforce Logist.&invoicing Theworkforcefallsintothefollowingage (ad asst Cl. 11 from 3,062,000 to 3,308.000 categories: Secretary from 1,555,000 to 1.951,000 Travelling rep 2,358,000 Table 25 Postsales Shop supervisor 6,841,000 Spares foreman 2,982,000 Absolute nos Relative nos Tradesman CI 1 section head From 18 to 25 from 2.627,000 to 2,688,000 3 9.7% Repairs receptionist From 26 to 35 2.354,000 12 38 7% Storemen from 1,939,000 to 2,267.000 From 36 to 50 9 29 0% Tradesman CI 1 51 and over 7 22 6% repair shop from 2,073,000 to 2,598,000 Tradesman CI 3 If we take the last two categories together, we find repair shop 2,069,000 that this is a relatively old workforce, given that Handyman 1,585,000 37

r ..11 Thus, pay depends not only on occupationalworkers, anduntilvery recentlyvirtuallyall category but also on the specific taskundertaken expertise was acquired on thejob.Younger within that category. workers tend to have intermediate-level studies, again incomplete in many cases, and only 3 In sales, pay levels are as follows: workerhave completed vocational training in mechanics or electronics. Table 29 On thesalesside,initialtraininglevelsfor Occupational category Gross annual pay (Pta) recruitment to the department have to date been higher than those required for post-sales, and all 5,829,000 Sales manager have completedintermediate-leveleducation. from 3,210,000 to 4,150,000 Salesr, Again as in post-sales, occupational expertise 1,470,000 Secretary has largely been acquired on the job.

It will be seen that average pay levels are quite a lot higher than for the post-sales workforce, with2.4.4.1 Recruitment and promotion 85.7% of personnel earning more than 3 millionThe criteria applied to personnel selection for the pesetas a year. However, it is worth not' g that the repair shop and the administration have changed average earnings reflected by thesescales include considerably. No trainingqualifications were both the salesman's basic pay and the bonuses formerly required for posts there, whereas now, awarded them on the basis of sales performance. owing to the technological complexity of the In other words, the sales force receive a relativelyprocesses in use, prior basic training hasbecome low salary, which is made up by performancean essential prerequisite for recruitment toRoma- bonuses. gosa Automoviles.

Cenrral services work a split day, unlike post-Entry to the post-sales department now depends sales, where rotatingshifts are worked at the on the candidate's basic training,and particularly request ofthe employees. Therepair shopon the possession of traininginelectrics and operates on three shifts, relieving one another so electronics at FP2 level. that the shop stays open twelve hours a day. Two of these shifts are continuous (from 7a.m. toThis is understandable given the change in vehicle 3 p.m. with a twenty- minute sandwich break) andcomponents, in which electrical and electronic the other is a split shift (8 45 a. m. to 1 p.m. and work has so far superseded mechanical work that but 2:15 p.m. to 6 p.m.). Thereisa yearly rota nowadays mostpartsarenotrepaired whereby all the employees work seven months replaced. on a continuous shift andfour months on the split Nonetheless, particularly in the sales department, shift. the prevailing view is that although theoretical Working hours in the sales department, on the training is important, one really learns by doing other hand, are permanently split (from 9 a.m. to the job. 1 p.m. and 4 p.m. to 8 p.m.) in order to fit in with client demand. As a result, the qualities most prized in a salesman are:being "good withpeople",possessing In both cases, the working week is 40 hours and 5 persuasive skills, and knowledge not only of the days. product one isselling but also of competing products. For the salesman today needs to be Post-sales workers occasionally do some overtime, well armed with sales argurm its, as the people he for which they are paid at the standard rateshas to deal with cre increasingly well informed. agreed for the sector. Occasionally, Romagosa AutomOviles will look The sales personnel, however, work more than the outsideforqualified personnel when internal stipulated hours whenever necessary. There is no training levels are inadequate. overtime payment for this, as it is understood to be part of the salesman's job. There are two reasons for recruiting on the outside market. Firstly, the older repair workers have a low All the employees in this firm work full-time. There level of background training and hence have is no part-time employment. great difficulty in assimilating the basic knowledge required. 2.4.4 Training and skills Post-sales workers come in with primary educe Secondly, the more recent recruits not only have a tion or industrial trades qualifications (theold better trailing background, but being young they vocational trainingsystem). These are largely are also more receptive 5 innovations; moreover, incomplete,particularlyinthe case of olderthere are a number of official aids and subsidies 38

38 which encourage recruitment of young people byIn order to make good this deficiency, the firm has noticeably reducing firms' payroll costs. instituted a new business policy aimed at improving the training levels of company employees and In this line, Romagosa AutomOviles has set up a recruiting henceforth only workers possessing a scheme in coordination with vocational traininggiven level of basic training and equipped to colleges, to provide mutual support and fosterassimilate subsequent retraining without difficulty. entry to working life. The colleges send the firm well-grounded students, and it in return acts as aRomagosa's interestinofferingitsemployees practical training laboratory, assigning an opera-training lies, then, in the need to retrain workers tive to teach each student the work and superviseto meet the demands of an increasingly competi- his/her performance. This practical trainingis tive market and to take up the challenges arising useful to the company, which can then selectfrom technological innovation. students for recruitment. For this purpose the firm takes advantage of a Training helps fit workers to perform their to.ks, number of training programmes sponsored and but itis not a vehicle of internal promotion: theorganized chiefly by the vehicle manufacturer possibilities of promotion are scant, given the lack (Santana Motor). These courses are assumed to be of any real hierarchical job divisions either in sales sufficient to remedy the training and retraining or in post-sales. deficiencies of Romagosa's workers.

Thus,sinceinternalpromotion isdifficultatTo be more precise, however, it should be said that Romagosa Automoviles for structural reasons,it although training for 'post-sales workers is largely does not seriously motivate training. In this sense, provided by the manufacturer, the company also training will at the most attract workers because of takes up training offers from: paint and electronic the retraining involved and/or the prospects for component suppliers, who h- ve their own training self-employment that it opens up. facilities; insurance companies with specialized facilities for training in bodywork; and the training All central and post-sales service personnel are on business itself, which delivers the training through permanent contract, whereas in sales 71.4% are the suppliers. on permanent contract while 28.6% (2 persons) are on fixed term contract. The type of contract is In recent years, the firm has begun to organize related to the age of the worker and hence to his/certain internal training activities for both its own her seniority in the firm. repair mechanics and those of its dealer network. The first of these courses took place in 1990, and a further one is planned for this year. 3. Providers of training The firm does not have a training department, and 3.1 The firm's structure and strategy hence all training matters are dealt with by an The continuousintroductionof new workingassistant belonging to the firm's general manage- techniques and methods hasledto a gap ment. between existing worker training levels and the levels required for proper performance of their tasks, particularly in post-sales. 3.2 Manufacturer's training service

The introduction of new technologies has meant 3.2.1 The firm Santana Motor S.A. on the one hand the incorporation of increasingly Founded in 1955, Santana Motor is part of a complex repair and diagnostic methods and multi-nationalconcerncontrolledbySuzuki. techniques(brakemeters,steeringalignment Capital in 1991 totalled o,125 million pesetas. equipment, chassis and bodywork test beds, paint cabins withactivated-carbon waste cleaning It has one production plant (registered address of devices, tuning control, etc.), and on the other the brand) at Linares (Province of Jaen), a second hand occupational retraining to adapt to changes production plant (making some engine parts and in the production process, which in turn requires a spares) at Manzanares (Province of Ciudad Real), certain level of prior training. adistributioncentre(small)atLaCarolina (Province of Jaen) and a Financial management Moreover, in view of the tremendous complexity of centre in Madrid. the current system of marketing, the growing intensity of competition in the market segment The enterprise builds all-terrain vehicles with four hitherto dominated by Santana Motor and the wheel- drive. reorientation of commercial strategy prompted by the introduction of the manufacturer's new model, Output is now aimed particularly at an urban there is an absolute need for additional training upper-middleclassmarket segment withan for the Romagosa Automoviles sales force. average age of 36. 39 33 .}..1,111111 3.2.2 Commercial policy to try and remedy the problems arising out of a Santana and Suzukivehiclesaredistributed commercial policy ill suited to the needs of the through a network of agents spread all over the moment. notional territory, which in turn have their own car dealersintheirrespectivezones. There are It was against this background that Samena Motor currently 77 agents and 380 dealers. The largerbegan to dea! with the agents responsible for agents have around 40 employees. distributingits vehicles one by one and in an organized, systematic manner. Among the new Agencies are awarded on a franchise basis and departures was the creation of a training depart- are governed by agreements which stipulate thement for the agency network; the only technical exclusivearea,equipment required,typeoftraining given hitherto had not been part of a services to be provided, manufacturer's obliga- comprehensive plan. tions regarding vehicle or accessory deliveries, characteristics of advertising and promotion, etc. Briefly, the loss of market share to new competitors The manufacturer issues a yearly estimate of sales in the same segment, the need for greater market expected from the agents on the basis of their size, penetration both at home and abroad to raise exclusive area, etc. Santana Motor agents may profitability, and the need to adapt commercial not operate agencies for other makers from the practice to thintroduction of a new vehicle aimed same registered address. at a very different social group, all required a strategy radically different from what had gone Dealers likewise have agreements with the agents before. governing the terms of the dealership. They are the exclusive outlets for vehicles and accessories in a Faced with such a situation, the enterprise has given area, but unlike the agents they may sell ordeveloped a comprehensiveplanunderthe repair other makes of vehicle, provided that these direction of the marketing department, which is are of a type not competing with Santana Motorto influence and guide planning inall depart- products. ments, whether in production, repairs or distribution. The Santana Motor commercial network and its mode of operation is currently being reorganized Inorder to implement thisplan, a five-year in response to changes in overall strategy. programme has been drawn up. This is revolu- tionary for the factory, but even more so for the At the end of the 1980s, management began to agents inasmuch as it affects their repair shops detect deficiencies in marketing and sales, affect- and vehicle distribution systems. ing both organization and distribution. At that time, the company lc cked an adequate commer- The primordial objectives mapped out in the plan cial policy: competitors were an entirely unknown include modernization of the commercial network quantity,prices were set without prior market by the following means: analysis on the basis of which to offer the right products at competitive prices, and supply was Provision of unified IT support for economic, highly deficient. financial and accounting management, etc. The offer to the network of a consulting service Until very recently Santana Motor had never had to help modernize and improve the manage- to worry about adjusting its output to a competitive ment of the agencies. market, since there was no competition inits Preparation of an image projection scheme, segment, it being the sole manufacturer producing laying out action plans for: advertising, promo- a four-wheel-drive vehicle (Land Rover). tion, public relations and the press. Provision and encouragement of training with a In addition, problems arose from the transforma- view to improving work performance. tion and expansion of the product range. The introduction of the Suzuki all-terrain vehicle to the The changes alsoprovidefor an increased detriment of the Land Rover, demand for which number of exclusive franchise zones and hence was ever shrinking as consumerpreferences more agencies. The existing agents havefound shifted, prompted a need to change and unifytheir sales areas curtailed, and some have given the criteria governing the sales system, given that up their franchise as they cannot accept certain the main product was no longer avehicle conditions (especially with the transition from work designed almost exclusivelyforwork,but a to leisure vehicles and the consequent change in vehicle conceived for leisure purposes and hence customer profile). aimed at an entirely different population group. 3.2.3 Training policy A completely different marketing strategy was From the outset, Santana Motor has been at pains therefore required, and this would affect produc- to train the employees inits post-sales network tion, organization and distribution parameters.(particularly repairs), in order to offer a good 40 So, in 1989, a marketing department was set upservice to customers. The first step it took in this

4 direction, then, was to provide technical training In addition to the theoretical training provided by for mechanics. RS&T, Santana Motor gives a practical course consisting in the performance of tests on their own This drive for quality of service came at a time vehicles and their competitors'. when the firm had no competitors in the Spanish market,beingtheonly maker ofall-terrain While the design and delivery of the commercial vehicles with four-wheel drive. trainingcoursesistheresponsibilityofthe consultant RS&T, coordinat'on is the province of The sales force has been the last section to beSantana Motor's sales training department head, incorporated into the company's current general who acts as liaison between the outside consultant plans under the new commercial policy. and the agency and dealer personnel on the course. Training programmes are prepared on the basis of a pre-established general plan drawn up by theThe training programme for agents is part of a sales and post -sales department heads.Inthe plan aimed at administrative heads, managers, case of sales, as has been noted, the marketing branch sales heads and salesmen. department and the consulting firm RS&T also take part. The courses being given at present are designed: a. to make managers aware of the importance of All employees and managers of official agentstraining and help improve management; b. to and their dealers are potential training targets. teach the salesmen commercial (sales) techniques; and c. to equip sales heads with the tools they Santana Motor's training policy may then be need to improve their commercial management. summed up thus. extension of training to include all agency employees; planning of training, andTraining of salesmen and dealers is a strategic application of training through a general planobjectiveforSantana Motor giventhatthe affecting the agents' organization and distribu-company's chiefccre...ernistomaintain and tion increaseits market share.In June this year a programme was started up, comprising seven 3.2.3.1 Training for agents courses to be delivered in various cities throughout Twining of commercial network personnel, both Spanish territory. cgents and dealers, is the general responsibility of the general commercial management and the Programme content is as follows: specific responsibility of its subordinate marketing Familiarization with the market for Suzuki- and post sales department. Santana products. Technological principles and main features of In order to modernize the agency network and the product. enhance profitability as contemplated in the five- Sales techniques. year plan mentioned above, the manufacturer engaged the consultant RS&T to set up a training Santana Motor's second training objective is to protect fat the commercial network. start up a scheme of commercial management guidance for agency sales heads, although to InFebruary1992, RS&T prepared areportdate only a pilot project has been carried out. proposing a strategy for introduction of a training scheme at Santana Motor, targeting its authorized The pilot project is divided into ten sections: establishments. Sales management in an agency. Sales techniques. According tothisproposal,allareas of the Prospecting. establishment's management structure must be- Contact and rating. come involved and take an active part in the Presenting the product. manufacturer's training scheme. Demonstrating the product. Trading in. Network training policyisstructured around a Closing the deal. prontysystembaseduponthecommercial Delivery. strategy defined by Santana Motor. Customer loyalty.

The twining offer was drawn up after analysis of Finally, we should mention the course for man- the state of the network and of how it operates and agers, to be held next September and October. what its training needs are The manufacturer'sThe aim of the course is to make managers aware management intervened in this defining process, of the importance of their own training and the contributing suggestions and highlighting those preparation of their sales force to meet coming aspects requiring special attention, to ensure thatmarket challenges, to teach managers to run their thePlan wastailoredtothereal,specific agencies better, and to inform them more fully of requirements of the commercial network what the maker expects from their management. 41 6: 41 The course is divided into six basic sections: cater for the new vehicles being produced at the Economic and financial statements as a tool forfactory. management decision-making. = The balance sheet. The company issue:, regular circulars to its agents, The profit and loss account. informing them of course programmes on a six- Analyzing andinterpretingeconomic and monthly basis and also seeking to make managers financial statements. aware of the need to put their workers through The budget. training updates. Comments on Act 19/89 on company reform. These circulars define the occupational profile for Organization of training operates through the course participants and the background training following channels: level required for proper assimilation.

The maker sends a circular to the distribution The most important change in technical training in networkinvitingparticipationinthe planned the last five years has come about through the training activities, a list of which is attached. change of main vehicle, particularly with the shift from mechanical to electronic equipment and the The agents then contact Santana Motor, indicating introduction of new diagnostic systems. the number of persons interested in attending each course. The courses consist of a theoretical part in which videotapes are used to facilitate assimilation, and In this way, the agency network is kept informed of a practical part the more important in which coming courses while enabling seminars to be students are asked to apply the theoretical knowl- arranged on the basis of actual demand. edge they have acquired. These courses last five days and take place at the Santana Motor training Personnel attending the courses are selecteci by centre in La Carolina (Province of Jaen). the agency management, who in turn pass or the invitations to their dealers. Although course volume has not changed significantly in the last few years, content has become At the end of the day, all the employees ol an more complex owing to the increasing varietyof agency receive training in principle, although in models22. all cases selection, by the line of commano, an the basis of individual course content. There are 12 courses scheduled for 1992. Below are some examples, with content and target In 1991, investment in sales training totalled 12 groups: million pesetas. For post-sales heads and shop supervisors at new According to the manufacturer, this is an approx- dealerships. General course on: imate figure, as this heading does not includeCharacteristics of thedifferent models. Using expenditure on: remuneration, travel and main-technical documentation. Spares documentation tenance of Santana Motor training department and orde,:., sing the spares catalogue. Guaran- heads;shortinstructioncoursesforcongress tes. Dea:.ng with the customer. Repairshop stewardesses; or preparation required by training regulationsandequipment.Periodicmainte- service organizers. nance. Diagnosis of faults. Principles ofelectronic injection. Principles of combustion. Tuning and setting, T.T. handling and use. Factory visit. Technical training For electrical and electronic technicians. Course Santana Motor boasts a long tradition of technicalon combustion and electronic injection, compris- training, which for 20 years has been system-ing: atically provided at the firm's training centre in La Characteristics of the different models. General Carolina (Province of Jaen). descriptionof theelectronicinjectionsystem. Theory of fault diagnosis. Practical handling of This training is aimed at agency repair workers measuring apparatus.Identificationof compo. and includes all employees from shop supervisor nents in the vehicle. Using the spares catalogue. to receptionist. Tuningandsetting.Enginecheck.Practical solutionofelectronicinjectionfaults:several The La Carolina centre has all the equipment practical cases. Checking various circuits. Inspec- necessary for the training given. In recent years tion of control module and circuits. Inspection of there has been major investment in equipment to components. Theory of catalytic convertors. Theo-

22 For more information about the courses offered by the manufacture', see the section onvocational training at 42 Romagosa Automoviles 4 2 ry of combustion. Adjustment, setting and repair of combustion and electronic injection. The last two carburettors. were for electrical and electronic Technicians with FP2 level training. For first-class tradesmen with sound knowledge of mechanics. Course on Suzuki mechanical assem- Again in 1990, this time on his own initiative, the blies: shop supervisor attended a course on industrial Characteristics of the different vehicle models. electronics, lasting 6 months at 5 hours a week. Specific characteristics of each product. Diagnos- The course was run by a private academy and tic and fault testing. Ignition setting and tuning.after he .completedit,Romagosa Automoviles Bed repairs. Cylinder head repairs. Distributor reimbursed him as they considered that he had tuning. Rocker setting. Assembly diagnosis and made good use of the training. repair: gearboxes, rear transmission boxes, axles, steering, suspension and brakes.Principles of4.2 Relationship between training electronic injection. Using the spares catalogue. and skills The information gathered would suggest that the In addition to these courses there are a number of occupational category occupied by any employee other training programmes on: reflects not so much basic training background as Santana mechanical assemblies. factors like personal ability and work experience. Course for receptionists. Diagnosis and electrics. Itwill be seen that the basic training level of Vitara injection. Romagosa's workers is quite low. Only two have Air conditioning. basic training equivalent to FP2, one has FP1 equivalent and the rest either did not complete The courses last from 2 days (air conditioning) to 5 vocational studiesthere are four in this situation days (shop supervisors, combustion and electronic or else only ho..e primary studies. This last is true injection, etc.). of the rest of the workforce, except for one worker who has administrative studies. On these courses, which take place away from the participants' normal places of work, Santana Generally spea:nng, age and training level are in Motor pays for breakfast and midday meal, while inverse proportleo: in other words, the older the the agents have io pay for travel, accommodation worker, the lower his level of training tends to be. and evening meal for each employee sent, plus a sum in the region of 20,000 pesetas. There are two fundamental reasons for this: firstly, the opportunities for workers to study were limited Santana Motor's budget in1991for agencyat one time; and secondly, at that time basic technical training courses amounted to 6 million training background was not considered vital or pesetas.Thiscoversonlyperishablegoods even important for adequate performance of the materials used and meals, as overheads for the workrequired. Most tasks were manual or training premises and training staff payroll come mechanical and could be learned as they went under post-sales deportment expenses. along.

4. The firm's training policy r.....:Atning received in the firm, it is notable that - shop supervisor (and on one occasion an 4.1 In-house training plans employee) has attended courses outside the firm. Until recently, continuing training of Romagosa's rest have either attended no courses of any post-sales employees W7JS a problem. According kind or attended the seminar for electrical and to the firm, all its employees cannot be sent on themechanical workers run by the shop supervisor in courses offered by the manufacturer, for two 1990. reasons: firstly, Santana lack sufficient capacity toorganize them, andsecondly,Romagosa The workforce has grown by 3 persons since cannot afford training for all its workers. 1988. However, the changes in vehicle technology and the improvements in their manufactured So, up to the present at least, only the shop quality has brought about changes in personnel supervisor (and an occasional employee) has structure and in the relative weight of the different taken up the training offered by the manufac- sections. Thus, personnel needs in the traditional turer. What he learned there, he then passed on mechanical sections, which are incidentally where informally to his subordinates on the job. most of the longest.serving and oldest of the firm's workers are to be for nd (see age distribution table Between 1989 and 1992, the shop supervisorin the general < heater on the company), have attended a number of courses at Santana Motor In shrunk in favour of such sections as electronics, 1989 he was at a monographic course on thebody and pointwork and 7'11111'. As there is characteristics of the new model (Suzuki 410 and more demand in these :-r nons, :r r there that most 413), in 1990 he attended a course on Vitara andyounger personnel, wa better raining or at least Swift injection; and in 1992 he was on one on better prospects, have been recruited 43 43 The firm has seen toitthat the shop's oldestCourses always take place during working hours. workers are relocated in reception and spares. Attendance is entirely voluntary, but as we have seen, the deciding factor is whether the agent can These changes are both the accompaniment and afford it. the consequence of the introduction of new diagnostic and repair technologies, whickin- In sales, the ratio of annual hours' training per clude: worker is higher than in the repair shop. In 1991, this was 28 hours/worker, not including adminis- brake meters trative personnel, and reflects two courses at- steering alignment equipment tended by two of the firm's employees. tuning control headlight adjustment apparatus In the first half of 1992, average hours' training chassis and bodywork repair beds per worker was 12, corresponding to the seminar paint cabins with activated-carbon residue run by one of the department's employees. cleaning mechanisms, etc.

Within the broad sections mentioned, tasks are4.4 Training plans apportioned, naturally enough, on the basis of In response to technological innovations, Roma- employee skills and job designations. However, gosa Automoviles recentlyinstituted a policy younger andbetter-qualifiedworkersinthe aimed at providing continuing training for all electrical and electronics section tend to be moreworkers connected with the firm. multi-functional,performing more varied and complex tasks (air conditioning and combustion, Underthispolicy,a programme oftraining for example). activities was started up in 1990, targeting not only Romagosa's own posy -sales personnel but The older mechanics do almost exclusively repair also that of its dealer network. and maintenance work on Land Rover vehicles, whose technology is essentially mechanical. The new system is organized as follows: the shop supervisor attends Santana Motor's training pro- The supervisor, who has been with the firm for 24 grammes and then organizes courses at whichhe years, is very concerned about this issue.It has passes on what he has learned, both to his own been his practice from the very beg: ,ning to and the dealers' personnel. informally pass on to the employees the knowledge that he acquires on training courses. In 1990, then, after attending a course sponsored by Santana Motor, the supervisor organized a In 1990, with the support and encouragement ofseries of seminars over a 4-month period. The management in view of the really pressing need of course was attended by workers in themechanical a training update for the workers,he organized and electronics section of Romagosa Automoviles the first course ever given to employees in the for two hours every Wednesday outside working electronic/electricaland mechanicalsections, hours. The course was voluntary and hence details of which have already been noted. unpaid, but all the workers attended.

For this quarter he is preparing a second course, The course, imparted by the shop supervisor, was this time on single-point and multi-point injection, on Vitora injection.It was divided into fifteen following the same format. sections, as follows:

The rest of the employees in the other sections General principles of electronic injection. have received sporadic training on single topics, Single-point electronic injection. largely provided by suppliers on the occasion of Multi-point electronic injection. new product launches. Theory of fault diagnosis. Practical use of measuring apparatus. Identification of components in the vehicle. 4.3 Access to trainingtargets Using the spares catalogue. The criteria applied in deciding who is to receive Tuning and setting. training are lack of experience and the work load Engine checks. that a salesman has, although aside from these Correcting faults in electronic injection. considerations, the real cost of training generally Several practical examples. imposes limits. Inspecting the various circuits Diagnosing faults/ith Tech One. In fact the decision to send personnel on courses Inspecting components. organized by the manufacturer frequently de- Theory of catalytic convertors. pends on thefacilitiesbeing offered by the organizer (hotel,paid attendance,travel and The course also included information on electronic 44 maintenance). injection for the Swift car.

4 I As already noted, the same shop supervisor alsofor the sales network, Santana Motor employeda gives courses to employees from Romagosa'sconsultant called TEA CEGOS to give courseson dealer network. These workers receive the samemarketing and sales techniques. None of these content as the Romagosa workers, but in intensiveinitiatives were part of a comprehensive training format over one or two days. programme, but rather arose as a sporadic series of unconnected activities. Teaching methods are very similartothose employedinthecourses organized bythe In1991the manufacturer devised a training manufacturer, being primordially practical with a programme aimed at salesmen. Three of Roma- small amount of theory. The materials supplied bygosa's employees attended the course, which was Santana Motor are used to reinforce the course on sales techniques. content. For 1992, under Santana Motor's comprehensive In view of the success of the pilot course, this year plan, mentioned earlier, Santana has organized a itis planned to organize another seminar on series of courses for its agents, on subjects relating single and multi-point injection,followingthe to the market, technological principles and sales same format. techniques.

In 1990, a total of 20.7 hours of training were (For more information see section 3.2 on the given per worker, not including administrative manufacturer.) personnel. This highratioreflectsthe course delivered periodically to the ten employees in the 4.4.1 Participation of the social electrical and mechanical sections plus the course partners attended by the supervisor at Santana Motor, onThere is currently no union representation in the Vitara and Swift injection. company, except for a post-sales shop steward. Although officially still holding office, this employ- In1991 the ratio dropped to 7.05 hours per ee has not been active since the rest of the staff worker. Only the supervisor attended a course, on committee members left the firm. industrialelectronics.This was onhis own initiative, but he was subsequently reimbursed byAccording to the employees, relations with the Romagosa Automoviles. company ore quite good. These are conducted directly through the manager or the personnel In the first half of 1992, 7.05 hours' training were manager, so that any demands or complaints are given per worker, reflecting a course attended bydealt with automatically on a personal basis. That the supervisor and one employee. is to say, there is indiviciu.,1 personal contact with management, and hence problems are settled on It should be noted that the sales department relies a personal rather than a collective basis. entirely on Santana Motor's training schemes. No trainingactivities are contemplated other than With no staff committee organizing and structur- those provided by the manufacturer. ing employee demands, the workers have no means of taking an active part in the framing and At no time has the need been raised for a policy of implementation of the firm's training policy. permanent updating; employees are expected to learn from day-to-day practice and occasional courses on specific subjects. However, the sales 4.5 Training costs manager does believe it important for salesmen to It is not possible to gauge the relative importance attend a refresher course roughly every two years. of spending ontraining. The reasonisthat although we have figures for payroll costs,we In the opinion of the sales manager, training has a hove no data on costs arising from training since positiveinfluence on sales, and not only asRomagosa AutomOviles does not budget specifi- regards volume, but also quality, meaning thatcally for this but provides training as and when the customers are treated better and the sales system need arises. improves, which in turn creates a more favourable impression of the firm and opens up prospects ofSantana's courses areresidential,withsales new custom. people attending from all over the country. This entails additional expenditure over and above the As a rule, when a new salesman joins the team he actual cost of tuition, and Romagosa does not feel is sent on a training course in order to acquaintthat it can always afford this. him with the characteristics of the product he will be selling, the peculiarities and policy of theIn addition, the agent has to pay a quota for each maker, and so on. employee it sends to the training centre, to cover the consultant's fees. These quotas amount to Before the consultants RS&T were brought in in 25,000 pesetas for the first employee registered 1992 to design and develop training programmes and 15,000 pesetas each for any more. 45 5. Evaluation of training approach workforce as a means of encouraging and Romagosa AutornOviles is currently in the process improving training levels among its employees, of adjusting to a new situation arising from thelearning on the job continues to be common introduction of new technologies to the workpractice in the firm. process, and from the development and growing complexity of new commercial systems inthe Hence, in view of the company's own stated motor vehicle industry. requirements as regards qualified personnel, the present system of continuing training would still This technological change has brought an abso-appear to be inadequate. lute need for retraining and specialization of the company's workers. And yet the firm must take up this challenge with a repair shop workforce of 5.1 Data on the personnel sample from high average age and long service, who havethe repair shop workforce of Romagosa received no continuing training the general storyAutomoviles throughout the sector and the country. This lack of past training aggravates the present situation, Table 30 where vehicles are coming out with new technol Seniority Courses ogies requiring knowledge that part of the work- Training23 Age Position Years completed force cannot now easily acquire.

5 17 The firm tries to solve this problem in a number of 47 Section head FP2 51 Section head Primary school 9 ways: 12 48 Tradesman Cl. 1 Primary school 19 12 50 Tradesman Cl. 1 FP2' 35 It attempts to improve the training level of the 11 2 1 34 Tradesman Cl. 1 FP2' 12 workforce, although this is not at all easy given 23 Tradesman Cl. 1 FP2 6 the low level of basic training and advanced 36 Tradesman Cl. 1Primary-Admin. 3 age of the workers. 41 Tradesman Cl. 1 FM' 5 48 Shop supervisor FP 1' 24 5 Internal organization is adjusted tofill posts 60 Receptionist Primary school 46 requiringlittlein the way of occupational 34 Tradesman Cl. 1 FP 1 3 expertise with personnel whose deficient train- 45 Storeman Primary school 22 ing background and advanced age make them unsuitable for refresher training. Training incomplete at this level. 2 Course given by shop supervisor to electrical and mechanical employees Finally, recruitment policy is designed to bring in qualified personnel with a good trainingThe table above shows the data collected on the background suited to present-day technologi-information sheetsfilledinat the Romagosa cal processes. Automoviles repair shop, representing approximately 30% of the shop workforce. The firm attaches a great deal of importance to the training of its workers and is currently starting up an incipient system of in-house training.It recently initiated a training strategy involving the running of training courses for post-sales workers by thePersons interviewed shop supervisor. At the factory providing the (raining The shop supervisor has thus become a key figure in the Romagosa AutomOviles training system. He Industrial manager is responsible for the actual instruction, which Human resources manager means thatnot only must he have sufficientMarketing manager training to enable him to absorb and digest the Post-sales head theoretical and practical content of the courses, Representatives of the staff committee but he must also be able to deliver this information in a cogent, professional manner to students most At Romagosa of whom, as we have seen, have a poor training background. Manager Assistant manager However, despite growing interest on Romagoso's Shop supervisor part in extending training to a broad sectorof the Two workers

23 Educational levels are equivalent to current categories since the great majoritystudied at Industrial College, where vocational training was organized in three years at tradesman levelcorresponding to the present FP I and Iwo 46 years at master tradesman level, corresponding toFP2

46 2. ENTERPRISE "A"

Size: 4 Custom comes basically from industry, farmers and transport companies in the area. Brand: Iveco and Pegaso Thereisone singleestablishment on asite Motor vehicle measuring approximately 16,000 sq. m. in area, categories:Light and heavy commercial housing the repair shop, sales of spares and accessories, sales of new and used vehicles, stores Type: C and administration.

1. General description of the case The bulk of the site is undeveloped and used for Thisstudy concerns a medium-sizedprivate parking, used vehicle sales andas the repair shop company whichis an agent for goods and yard. The floor area, measuring about passenger transport vehicleslight and heavy 3000 sq. m., is occupied by offices, vehicle and trucks and buses). It sells and repairs vehicles in spares sales offices, stores and repair shop. this category and deals in spares and accessories for them. Most vehicle repairs are performed in the repair shop, but there is a 24-hour emergency service, Most training, on both the sales and the technical so that repairs are sometimes effected on the spot. side, is provided by the vehicle manufacturer that Spares and accessories sales are also undertaken the firm represents. The training in these fields atthe Almazorafacility.Vehiclesales and supplied by the manufacturer amounts to 95% ofcustomer prospecting are carried on both at the all training given. company offices and through travelling salesmen.

Allthetrainingsuppliedtoagents bythe The firm repairs an average of 500 vehiclesa manufacturer is planned and imparted through month. the commercial division and the marketing and post-sales departments depending on it. It has a network of 8 dealers in the province. These are independent firms employing a total of 35 On odd occasions, which have been very few in workers (the largest of them has 10 workers and recent years, the company has also received some the smallest 2, including the owner). The basis of training from component-makers. the relationship with the dealers is that the latter are obliged to attend Iveco and Pegaso vehicles that are under guarantee. They also channel 2. General description of the firm customers in the direction of the agent. 2.1 The firm Company A, located in the town of Almazora (Province of Castellon), engages in the sale and2.2 Brief history and recent repair of goods and passenger transport vehicles. development strategy Enterprise A was founded in 1983 by the present It is an autonomous firm and is exclusive agent for owner and managing director, who bought up the Iveco and Pegasovehicles,accessories and assets of the former Pegaso agency in the area spares in the province of Castellon. when it went bankrupt. He subsequently acquired the Iveco agency too, and thus came to represent Capital is 12 million pesetas. both makes. As a result of the acquisition of ENASA, the company that makes Pegaso vehicles, The firm's total invoice turnover in1991 was by the Italian firm IVECO in 1992, Enterprise A 2,300 million pesetas, of which 15% was from the has maintained its status as agent for the two repair shop. marks, both now built by the new concern IVECO PECASO S.A. At the beginning of October 1992, the firm employed 46 persons including the managing The firm was founded at a time of speedy recovery director. of the Spanish economy, with 21 workers from the former agency. Business, and with it employee The vehicles in which the firm deals total 25 Iveco numbers, continued to expand until1990, by and Pegaso models, of both large and smallwhich time the workforce numbered 74. In that tonnage, for the transportation of goods and year the owner set up another business specializ- passengers:inother words,light and heavy ing in body and paintwork, to which he trans. trucks, buses and vans. ferred 16 workers.It was at this time that the recession, presently continuing, began to bite, The firm's mainactivity is as authorized bringing with it a sharp drop in sales figures. At representative of these vehicle brands, butits the same time, with an increasingly open market, repair and second handsalesbusiness alsothe local scene was invaded by other firms with includes other makes of vehicle of these types. franchises from foreign makers of vehicles of the 47

97 same type. As a result, the firm's marketshare in Table 31 the area fell from its peak of42%in1989to its present level of 31%. Manager

Both factors, but most particularly the ongoing recession, have prompted manpower cuts in the Commercial Administrative Post.sales Spares last few years, down to the present strength of49. manager manager supervisor supervisor This readjustment process is not yet at an end and willaffect 3-4 worker., more inthe coming months. Cuts, which are being implemented by Salesmen Administrative Shop Personnel means of retirement and non-renewalof fixed supervisor supervisor term contracts, are affectingallsections,but above all sales and administration. Personnel Personnel In this way the company seeks to adjust payroll costs to present demand for services, which has been shrinking as the recession sets in. The business is divided into four sections. Like all firms in its sector, it is feeling the effects of change in the nature of the product: improved quality of vehicles and the tendency to replace2.3.1 Work organization and repair partsor assemblies haveprocedure rather than The workers are distributed among the different brought about new working procedures, especially in the repair shop. Frequent, high-cost, sections as follows: lengthy repairs are no longer the order of the day; the commercial division are the commercial the emphasis is now on quicker, cheaper, cleaner In operations, so that the business must now be manager and 7 travelling salesmen, plus one clerk. conceived rather as vehicle maintenance services to the client. In this context, the firm runs frequent In spares there are the section head, the chief campaignsboth its own and those sponsored by assistant, 3 other assistants, one auxiliary and one the manufacturer offering special prices via direct mailing to clients and advertising, and administrative assistant. targeting specific services: compulsory vehicle In administration are the administrative supervisor, inspections, brakes, lights, antifreeze, etc. This 2administrative assistants and2secretaries. practice, inil;ated in1988,has been expanded since1990,with a current average of15 In the repair shop there are25persons, occupied promotions or campaigns every year. as follows:

2.2.1 New technologies 1 post-sales supervisor 1 shop supervisor The introduction of tfe new technologies in tooling and vehicles means that work isincreasingly 3 electricians 1 lathe operator and assistant technical and hence there is more work involving skilled technicians, pumps and injection maintenance, diagnosis and tuning of the different 2 1 receptionist, who performs administrative work assemblies.This,thefirmdeals with through 2skilled technicians, steering and brakes investment intooling, continuing training and work experience. Nonetheless, the kind of vehi- 2 in gearboxes and assemblies 4 in engines cles concerned are still basically mechanical with 4 in accidents only limited use of electronics, unlike other kinds of 1 handyman (cleaning, auxiliary tasks) vehicle. 3 non-specialist assistants The most modern items of equipment that they The steering and gearbox specialists also do the have are a bench and a manual tester for pre. heaters, a central unit with vacuum pump for airair conditioning work. conditioning and a unit for ABS brakes. 15of the repair shop workers possess the top occupational qualification, whichistradesman first class, three are tradesmen second class and 2.3 Structure of the firm two third-class. The others are the handyman, Eact section has administrative personnel for its apprentices and the receptionist. own business.Thelegal and organizational dernands of the company as such and as an Most of the Class-1 tradesmen joined the firm with coent require a great deal of administrative work, that grading, as they came directly from either which is unified under the administrative manage. Finanzauto or IVECO. The Class-2 and Class-3 48 ment. tradesmen have attained their categories with theAllthe administrativeposts are occupied by firm. women.

There is also a specialist driver for any work requiring someone so qualified. 2.4.2 Classification of the workforce

The repair shop has all the sections required for Table 32 mechanical and electrical repairs. Upholstering. radiator and suspension work is subcontracted out Distribution of workers by age groups to other local firms. Body and paintwork is done under 25 4 by another, separate firm belonging to the same from 26 to 40 19 owner, which was founded in 1989. from 41 to 55 18 over 55 5 For repairs and purchases, customers go directly to the firm's premises except in emergencies. The age structure of the workers, 75% of whom are between 26 and 55 years old, reflects the age In repairs, work is organized as follows: when a ofthe company and therecruitmentpolicy vehicleis brought in,the receptionist recordsfollowedsinceitscreation.Thepracticeof sufficient details to identify the problem. He is keeping on the qualified workers at the firms sometimes assisted in this by the shop supervisor. taken over and recruiting largely adult workers Then, once the fault has been identified, the shop with experience has meant that the firm's ages supervisor hands the vehicle over to one of the pyramid is relatively old. available skilled technicians to effect the repair withthe human and material means athis All the company's employees are of Spanish disposal. nationality and birth.

When the repair is finished, the vehicle is tested by Labour contracts are currentlydistributedas the skilled technician in charge then handed over follows: to the shop supervisor. He and the receptionist are responsible for delivering the vehicle to its owner. Permanent Fixed term 44 5 Although there is clearly occupational specialization at the repair shop, built up through working As noted earlier, the company came into existence experience and attendance at training courses through the acquisition of two agencies, whose over many years, the demands of day-to-day workers were kept on andpreservedtheir work call for versatility: some operatives will turn acquired rights. This factor and the subsequent their hands to tasks which are outside their special practice of recruiting experienced, well-qualified field but which they know how to perform from workers are the distinguishing features of recruit- experience. This situation does not appear to raise ment policy and the reason for the large number of any problems forthe operatives and skilledpermanent contracts. For a time the firm tried technicians involved. recruiting young people for the repair shop, as apprentices and on fixed term contracts; however, Because of the small size of the repair shop, the the practice was abandoned as unprofitable, large size of the vehicles repaired (big trucks andsince training them was very costly and the results buses) and the shop's volume of business, even were not good. Thejustificationofferedfor though work is divided into specialized areas, the discontinuing the recruitment of young people at organization and distribution of the work amonga given moment was that the younger candidates these areas presents some difficulties in practice, "lacked interest in this kind of work and a sense of so that many tasks are performed in the yard, with responsibility." all the difficulties and inconvenience thatthis involves for the workers. This has come aboutHowever, five workers have been recruited on because the repair premises are old and it has notfixed term, renewable contracts for the adminis- been possible to extend them. tration, sales and spares sections.

2.4 Human resources All employees are full-time. 2.4.1 Evolution in worker numbers 2.4.3 Working conditions In October 1992, there were a totalof 49 By and large, working hours, vacations and pay workers, 45 of them men and 4 women. Sinceare in line with the provincial collective agree- 1989, when the workforce totalled 58, 9 jobs ment. have been eliminated, involving an equal percentage of men and women. The legally-established working hours for 1992 are a total of 1826 hours of effective work per All production sections have been affected. annum, at an average of 40 hours per week. 49 s Hours: In general, the additional items over and above Monday-Thursday: 8.30 a.m. to 1 p.m. and the basic wage, plus overtime, raise pay by an 3p.m. to 6.45p.m. average of 25-30%. Friday: 8.30 a. m. to 1 p.m. and 3p.m. to 6p.m. Table 34 - Average gross monthly pay up to 1st October 1992 was as follows Evening overtime and Saturday morning opening 243,000 Pta are normal practice. Travelling salesmen Showroom supervisor 254,000 199,000 is a 24-hour emergency Sales assistants In addition, as there Sales auxiliaries 129,000 service, a section of the workers, involving chiefly Repair shop supervisor 288,000 the repair shop but also spares and administra- Cl. 1 tradesmen 199,000 tion, has a duty rota for attendance to emergen- Cl. 2 tradesmen 152,000 cies during hours when the repair shop is closed. Cl. 3 tradesmen 128,000 Repair shop auxiliaries 105,000 As a result, employees can work as many as 180 Repair shop apprentices 79,000 to 200 hours per month. Repair shop handyman 101,000 Administrative supervisor 343,000 All this extra work is included in the worker's pay Administrative assts. 152,000 slip on top of the forty hours established by law, Secretaries 146,000 and hence is subject to the Social Security levy. Driver 137,000

Pay scales in the sector were established by a provincial metal trades agreement in 1992. Inthe case of sales employees, these gross monthly averages include commissions, which As a rule, wages comprise basic pay plus anconstitute an important part of pay. increment for seniority. This is paid for every five years worked and in each category amounts to Pay at this firm is above average for the sector. It is 5% of basic pay. Wages are paid in twelve highly dependent on individual circumstances and monthly payments plus three extra payments atthus there are pay differences even between workers in the same category. The firm says that Christmas,insummer and out ofprofits.In addition, companies may introduce bonuses for it does not mind paying different and higher rates productivity, attendance, etc. to the skilled workers that it needs. As a rule, the philosophyisto pay skilled workers or new recruits above market rates if they are needed Table 33 - Gross monthly wages established by collective and the company can affordit.However, this agreement for 1992 for the categories existing in this company are: means that the firm also risks losing competent employees at times of recession if they are unable Travelling salesmen 76,821 Pta to equal or better the wages offered by competi- Showroom supervisor 86,890 tors. Sales assistants from 72,000 to 89,856 Sales auxiliaries 65,505 The agreement provides for 30 days' vacation a Repc.ir shop supervisor 83,647 year. Cl. 1 tradesmen 81,686 Cl. 2 fradesmen 77,552 2.4.4 Workers' training levels 73,416 CI.3 tradesmen The basic training background of the employees in 63,000 Repair shop auxiliaries this company, especially the operatives, consists of from 38,000 to 63,000 Repair shop apprentices primary education: that is, up to 12/14 years of Repair shop handyman 69,360 Administrative supervisor 86,928 age. Administrative assts. 81,586 Secretaries from 71,283 to 79,237 In the repair shop, only 4 workers have received Driver 81,686 vocational training in the field of motor vehicles or metalworking. Two of these are aged under forty and two over. The shop supervisor, too, has These amounts do not include any seniority merely undergone primary education. The head increments applicable. of post-sales services is a graduate.

The w'- es detailed by the company are furtherMost employees on the sales side have undergone supplemented by a variety of payments for suchprimary education, except for the spares and sales items as productivity, overtime and extra working. department heads, who have received academic It should be borne in mind that the data given secondary education. below show gross monthly averages and hence include the corresponding portions of the extra In administration, the head of department is a 50 payments received up to 1st October 1992. graduate. His subordinates have completed sec- 50 ondary education, and in two cases vocational ENASA (maker of Pegaso vehicles) and now Iveco training in administration. Pegaso S.A.

As regards the sales and repairs sides, the firm The other 5% is provided sporadically by suppliers does not generallyrequirespecificskillsor of equipment: past examples of this have been training other than a basic background sufficient ABS brakes or air conditioning suppliers. In recent to enable further training. years, no such training has been given by any firm of this kind. With the recruitment policy already described, aimed at ready-qualified personnel, and particu- 3.2 Manufacturer's training service larly workers with experience, the company has In its day, Pegaso, a business founded in Spain in no need of any specificinitialtraining. Then the 1940s, constituted a unique experience as again, such a policy is feasible precisely becauseregards the motor industry and the state of the from the outset the company has been the agent ofeconomy and technology in Spain: the manufac- a manufacturer that is well known in the Spanish ture of trucks and buses. marketforthetraining itprovidesfor its representatives. For nearly four decades it succeeded in constantly expanding its presence in domestic and overseas Pre-requisites for recruitment, besides experiencemarkets, attaining a high level of prestige in the in the sector, are chiefly a display of "interest" and sector. "willingness to work" on the part of candidates, and age - the firm prefers to recruit workers whoSince 1991, having passed through a variety of have done their military service and hence are situations, Pegaso has belonged to the Italian firm over 21. IVECO. It is currently still building Pegaso vehicles and has begun to build Iveco vehicles as well. The bases for promotion of workers are occupational experience and interest. However, as we At present, Iveco Pegaso has 105 agents in Spain, have seen, in the repair shop most workers havewith a total of around 1800 employees (including gone as high as is possible for them, and the only agencies and dealer networks). Of these numbers, opportunity left for one of them would be a roughly 60% are repair shop technical staff and vacancy for shop supervisor. Training is linked to the other 40% work in sales and administration. promotion in the sense that where an employee shows interest and his practical record bears this The manufacturer has traditionally provided a lot out, he can better equip himself for promotion by of training for agents, especially technical and attending courses to improve his skills. repair instruction. Due largely to the many years in which Pegaso was virtually without competition in As we have seen, the workers generally have a the domestic market, commercial training has low educational level: 80% have primary educa- hitherto been more neglected. tion only, undoubtedly reflecting the average age of the workforce. In contrast, occupational quali- In commercial and product training there is one fication is high, with a large number of first-classsupervisor and four technicians, while in repairs/ tradesmen as compared to second- and third- technical training there is one supervisor and two class. It is precisely this situation, a consequencetechnicians. There are also teachers (monitors) of the practice of recruiting mainly on the basis of specializingintechnicaltraining. When the skill and experience, that makes internal promo- occasion arises, employees from other sections tion so difficult. may deliver courses. The externalsituationon the labour market obviously depends very much on the general The objectives of the training furnished to agents economic situation. The Province of Castellon has are set in obedience to the manufacturer's need to one of the lowest unemployment ratesinthe secure and expand its penetration of a market in country, and by and large skilled tradesmen are expensive to recruit. Nonetheless, the firm prefers Table 35 Organizational chart to pay above market ratesinthe light ofits unsatisfactory experience in the intake of young Managing director people, caused essentially by a lack of interest in this kind of work on the part of the younger groups and the availability of other kinds of work in the Divisions Commercial division area (tourism, industry).

3. Providers of continuing training Marketing Post-soles and spares 3.1. The firm's structure and strategy Of the training received by the firm's workers, Commercial training Technical training 95% is provided by the manufacturer, formerly 51 51 which competition is increasingly stiff. The agents to devote this money prize fully to making good need to be responsive to customer requirements, to any deficiencies detected. be familiar with their own vehicles and their characteristics as compared to those of their The training and personnel parameter, then, refers competitors, and they need to be able to put this to the number of each agent's employees who across to their customers. All of which goeshand have attended the manufacturer's training courses, inhand withthepursuitoftotalqualityin and points are awarded on that basis. production and service. This system will undoubtedly encourage more Decisions regarding design, planning and method- attendance by the agents' employees. ology, ultimately the responsibility of the commercial division, are made by its marketing and post- sales/spares departments. Such decision-making 3.2.1 Training plans prepared by the does take agents' needs into account: the market- manufacturer for its agents ing department runs surveys among the peopleA six-monthly or yearly programme of training receiving the training and the agents for the courses isregularly sent to the agents. These purpose of evaluating the training givenand circulars are also intended to encourage the latter recording the agents' suggestions and require-to seek training by drawing their attention to the ments. The response to these suggestions andchanges and new requirements arising in the requests comes laterand this is actual practice sector. in the programming of the courses requested. Another development, again by the manufacturer, The most important innovation in the design and has been to improve the presentation of the delivery of trainingsince the appearance ofcourses for agents, which has made a major IVECO has been in commercial training. There difference according to the firm concerned here. are two reasons for this: one, more attentionis The improvement consists in explaining the actual now paid to this kind of trainingthan in the past; course content, with concrete details,and recom- and two, there is much more competition since the mending the kind of training background or skills entry in Spain of more makes of the some kindsofthat course participants should ideally have. With vehicle. IVECO's long experience in the field of information of this kind, the firms are better able to commercial training has made a major contribu- decide how their personnel and their requirements tion to the company's commercial practice. fitin with the content and level of the courses offered. One possibleillustrationof the way that the manufacturer's aims link up with training can be This change has been in place since mid-1992. found in a long-term campaign for "improved service quality", launched in 1992. In 1992 the Pegaso/Iveco Factorywillgive approximately 150 courses, 90 of them technical The campaign, which touches all sections of the and 53 commercial, with a total of roughly 1400 agents,hasthefollowingobjectives:a)to participants. enhance the brand image with customers; b) to make the network aware of how vitalit is to be Since the maximum number of students allowed on constantly improving the service; and c) to detectany course is not very high (10-12 persons on deficiencies of any kind that affect quality of technicalcourses), many of thecourses are service,witha viewtopointingeffortsfor repeated over the year in order to serve the improvement in the most worthwhile direction. entire network. The campaign is based upon the following four parameters: The technical subjects are logically designed to familiarize students with all the models, old and Customer opinion (via surveys) new, on the market, and withcomponents, Facilities and equipment assemblies and engines, and also to improve Training and personnel their knowledge of mechanical, electrical and Repair shop management other tasks. There are likewise courses on such subjects as dealing with customers, economical The degree of achievement of the objectives set for driving, command skills, sales techniques, and so thesefourparametersismonitoredbythe on. manufacturer on a monthly or yearly basis, and in consequence "points" are awarded. Agentswill By way ofillustration,listedbelow arethe be graded on this basis. technical courses given in March 1992:

The top-scoring agents will be entitled to a number 330.30 engine of money prizes, which will be used to remedy Troner pneumatics problems or insufficiencies arising in respect of C.V. 16S-160 52 any of the parameters. The agents mustundertake 330.30 electrics Dealing with customers On every course, documentation is issued giving a Compact 500 N steering briefbut detailed summary ofthetechnical Troner electrical installation information. This is consulted by the employees Techniques for negotiating with customers at the firm of reference. 340/370 CV engine Economical driving In1992, the manufacturer spent 50 million Daily electrics pesetas on agency training. This figure includes 7000 pump thetrainingstructureitselfwithtrainingstaff C.V. 2819 bridges/brakes payroll,teachingmaterials and trainingstaff expenses arising from delivery of courses in other Most of the technical courses last from three to four towns (hotels, travel, maintenance, etc.). days, although there are two-day and five-day courses. They take place at Pegaso's training Course participants, sent by firms from all aver the centre in Madrid. country, are accommodated in hotels. The manufacturer provides transport to and meal services at Commercial training, on the contrary, is movable the training centre. and is giver in the areas where there are agents. Thus, in 1992 courses were given in almostevery Registration fees range from Pta 11,750 per provincialcapitalinthe country:the course person for two-day courses to Pta 18,750 for subjects and the teaching equipment required five-day courses. make thispossible. Commercial and product courses last one working day. These costs, plus accommodation, maintenance and transport from the workplace, are payable in Table 36 - The following product/commercial courses were all cases by the agent. given in 1992:

Number Name 4. The firm's training policy 2 Eurocargo product (6-10MT) 9 Soles techniques 4.1 In-house training plans 9 Eurocargo product (12-15MT) Enterprise "A" has a long tradition of sending its 5 Special action for new agents workers on the manufacturer's trainingcourses. 11 Pegaso product The philosophy behind this is that its manpower is 10 Iveco product very expensive and therefore needs to be well 7 Pegaso Ironer 400 CV product qualified in order to meet customer needs and avoid problems for the firm.

Before any new vehicle model is launched, agents Historically, training at Enterprise A was deter- and employees are always given training/infor-mined by the process whereby the firm was mation courses. created and byitsvery close links with the manufacturer. The latter originally providedits The approach is essentially practical, with audio- agents with continuing training by means of a visual media for the theoretical parts. In technical travelling system involving the movement of the training,a group of10 students under thetraining module with all the material from place to direction of monitors with wide experience and place in specially-prepared vehicles. This system proven teaching skills will spend almost the entire was abandoned 7 years ago. Now, Enterprise A's course working on the materialinthepilot training policy follows the guidelines and pro- workshop,assemblinganddisassembling it, gramming laid down by the manufacturer. provoking failures and repairing them, and this is something participants particularly appreciate Continuing training is of tremendous importance discussing the situations they have experienced, for the firm, in view both of the growing need for which are then studiedin an atmosphere ofbetter-qualified, more specialized workers and of intense participation. the constant introduction of changes in productsor assemblies (gearboxes, brake systems, etc.) by the Moreover,the manufacturerwillfurnishbusi- makers. Therefore, every year from 12 to 15 nesses or students on request with copies of the persons (the bulk of the repair shop workforce) are videotapes that it cits and uses for its training sent on Pegaso's training courses in Madrid, a courses. The firm concerned here has a numberpractice that has been adhered to ever since the of these whichitlends toitsemployees on firm became operative. Continuing trainingis request aimed especially at the repair shop and the sales department, w.111 less attention paid to spares and The manufacturer issues course attendance certifi- accessories. The greatest deficiencies are currently cates. At the same time, it may remit opinions onto be foundinthe training of administrative students to their employers, especially in the casepersonnel since the introduction of new computer of outstanding performers. systems;however,itmust be saidthatthe administrative personnel on the whole have a in Enterprise A is made on the basis of discussions better basic training background than the repair or between the manager and the relevant section sales personnel. head. Given that the bulk of training is directed at sales and repair shop personnel, once it has been As a relatively young concern (founded in 1983) decided that an item is worthwhile, the decisions enjoying a close relationship with a manufacturer are generally made by the post-salesand repairs thrit has always been concerned about training, supervisors and the commercial manager. the firm has not alteredits training policy or strategy in recent years. Nor is it thought that there Since 1987 75 members of staff have been on will be any need in the future either for a change courses, mostly repair shop personnel, but some in its current policy or to set up a training structure from sales and spares too. This means than on of its own, as they are quite satisfied with theaverage all the workers in the sectionsnamed structure operated by the manufacturer. None-have attended two courses in the last five years. theless, they are considering the possibility of However, this is not entirely accurate given that the introducing some kindofinternalmeans ofdepartmental heads (post-sales, commercial and providing the training required by the adminis-repairs) attend practically every course and the trative personnel. skilled technicians more than two. In fact, then, a number of workers have attended only one course All technical training takes place at the Pegaso and some have attended none at all. centre in Madrid, in the form of courses lasting from two to five working days. The commercial4.3 Training plans and product courses, normally lasting one day, Although the firm has no training schemes as such, take place in towns closer to the agent. themanufacturerrunsahalf-yearlytraining programme with courses constantly adapted to For more information on this subject, see 3.2.1. agents' demands, plus information on such items as new products and equipment.This enables the 4.2 Access to trainingtargets firm to organize training for its employees in such Training targets all the firm's employees, including a way as to provide for present ore.: futureneeds management. However, the manufacturer onlyand deficiencies, and to plan the activities best provides training for repair, spares and salessuited to each worker on the basis of his skills, his workers, so that administrative personnel are those specialist area and the needs of the firm. with the least opportunities and the greatest need of training. 4.3.1 Participation of the social partners Toe trainingofferedbythemanufactureris The collective agreement for the sector, a docu- structured and programmed with individuals in ment subscribed by the provincial employers' and mind, and therefore employees are sent to Madrid union organizations, includes a clause on voca- on an individual rather than a groupbasis. In the tional training which says: "Where a worker repair shop, trainingis open chiefly to thoseundertakes regular study for an academic or workers possessing a basic knowledge of the occupational qualification, he shall be entitled to subject, so that they can get the most possible out such leave as may be required for attendance at of the courses. examinations". Clearly this, the sole reference to training, has no relevance for in-house continuing Account is also taken of the employees' personal training, which is neither regulated nor provided interests as regards training; the manufacturer has for. run a survey among the firm's operativesrecord- ing their preferences. According to the firm, "it isWithin the firm, the existing works committee (3 best to send people for training who are interestedworkers) has no part whatsoever in the training in the subject in question: in this way we are sureprovided. Itis only recently that they demanded of maximum utility and return on investment". more training for the younger workers as a means However, the younger workers in particular areof improving their prospects of promotion within not sent on courses as often as they would like. the firm.

In sales and spares alike, the basic guideline is Labour relations in the firm are efficient and easy. that salesmen should have a good knowledge of Nonetheless, owing to the highly individualized the product they are to sell. The sales supervisor is pay system, the shop stewardshave difficulty in always sent on training courses, and the salesmen presenting a common position for the workers on are sent as budgets, availability andneed dictate. pay-related issues. There are regular exchanges of views between management and unions. Training is voluntary, and the general attitude to it among the employees is highly positive. 4.4 Training costs Since most of the training received is in Madrid, Once the firm has the relevant information from training costs largely arisein connection with 54 the suppliers, the decision on training of workers employee travel, accommodation and mainte. 51

'+; nonce. The training as such costs much less than ambitious workers as they set up theirown the travel, etc. involved. Course fees range from businesses. Thisis already happeninginthe Pta 11,750 for a two-day course to Pta 18,750 sector. for a five-day course. The current skill levels of the workers is highas we In1991 the total cost of training to the firm, have seen, and onthe whole they display involvingexclusivelyrepairshop andsales satisfaction - especially in the repair shop and personnel, was Pto 1,616,000 (including travel). sales department - with this constant updating, These costs take no account cifloss of hourswhich makes their day-to-day work easier and worked, which in many cases can be as high as familiarizes them with the manufacturer's latest 160 hours a year innovations.

Spread over the entire workforce, this gives an The firm is likewise very satisfied with the training average cost of Pta 31,000 per worker.If we provided by the manufacturer, its only complaint !nclude only the sections for which trainingwas being that it has to take place in Madrid with the provided, the average is Pta 43,000. extra costs that this entails.

Inthe same year, spending on training as a Solutions to the worst of the deficiencies identified percentage of total pay was 1.1%, and the total - training of the administrative workers - are number of hours spent per worker was 10.5. presently being sought via agreements with the Although no figures are available for 1987, the National Institute of Employment. information to hand suggests that the proportions were toughly similar. The sample of workers selected showsa very representative cross-section of the firm, with a In the firm's view, if mobile training facilities were high level of involvement of repair shop and sales used asinthepast,this would lower costs personnel in training, and a lower level inspares considerably and allow a significantly higher and administrative personnel. attendance by employees. The sample also reveals less involvement of the younger repair shop workers in training activities, 5. Evaluation of training approach a particular case being the assistant who has been Enterprise A's training policy, combined with its with the firm for five years. However, the situation practice of recruiting ready-qualified personnel, would not appear to be a common one if we would appear adequately to meet itspresent compare itwith operatives who are not much strategy of avoiding problems with customers by older. responding to their needs. It is further accredited by the firm's performance in recent years, when despite a major recessioninthe sector and growing competition, it has succeeding in holding 5.1 Evaluation of workforce training on to one third of the market in the province, with record steadily-mounting customer satisfaction as attested What follows is a sample involving 38% of the to in surveys run by the manufacturer. firm's workers as a whole. The sample of repair shop workers is larger: 50%. However, there are a number of factors which could cause problems in the future, particularly if In 1991 and 1992, the firm sent workers on 25 the market recovers and economic activity picks courses with a total of 30 attendances. All were on up technical subjec's, except for two on dealing with customers. Recruitment of mature, qualified personnel with experience meets present needs, but it also makes Since most oftherepair shop workers are for an ageing workforce. This, combined witha specialized, they are sent on courses on the basis refusal to recruit young people as apprentices and of their speciality and level of skill. In thecase of the relatively small amount of training afforded to some of the personnel who are not yet fully the firm's younger workers, means that new skilled specialized, some planning does go into their workers are not being trained up, and the result occupational future, the criteria being the needs of could be a shortage of qualified manpower in the the repair shop and employees' individualvoca- future tional interests.

If we acid to this en external labour marketon The decision as to which of the wide range of manpower is not attracted to this sector, courses offered by the manufacturer should be there is a real possibility that this firm will be attended by which workers takes into considera forced always to pay very high wages to attracttion the type of vehicle that sells most and the workers, and that given the existing ceilings on actual need for familiarization with them or their pay and promotion it will lose its best or most components 55 Table 37

Age Position Training Seniority Courses

35 Post-sales supervisor graduate 9 3 1991 58 Repair shop supervisor primary 6 4 90-92 49 Cl. 1 tradesman, mech. primary 7 6 87-91 42 CI1 tradesman, lathe F. P. 9 48 Cl. 1 tradesman, mech. primary 9 4 90-91 47 Cl. 1 tradesman, injec. primary 9 3 87-91 46 CI. 1 tradesman, mech. primary 9 3 88-92 36 Cl. 1 tradesman, mech. F. P. 9 4 87-90 30 Cl. 2 tradesman, mech. F. P. 4 2 90 -91 25 Cl. 2 tradesman, elec. primary 5 4 89-91 30 Cl. 2 tradesman, mech. primary 7 3 89-91 1 91 24 Cl. 3 tradesman, mech. primary 1 23 Assistant primary 5 1 90 56 Salesman primary 9 4 91-92 1 87 41 Spares primary 9 35 Spores primary 9 1 87 61 Admin. supervisor graduate 8 30 Admin. asst. secondary 8 1 87 27 Admin. asst. secondary 7 1 91 30 Admin. asst. F. P. 8

5.2 Best practice/normal practice Table 38 In view of the characteristics of the training involved, thereisno way of assessing these Duration No. participants criteria for the courses given. Course

C.V. 9s-109 3 days' 4 Troner Pneum. Equip't. 4 days 2 ABS preheating 3 days 5.3 Future demands ITC computer 5 days Most demand in the future will come from the field Air conditioning 4 days of electronics, whose use in vehicles is expected to Dealing w. customors 3 days 2 grow rapidly. The need for training inelectronics Doily and 330.301-'W 2 days 3 is apparent both as regards workers currently with Eurocargo 2 days 3 the firm and workers who may be recruited in the Daily, electrics 4 days future, as the vocational training courses currently 330.30HW, electrics 4 days being given for the sector are not keeping abreast Daily, pump 4 days of developments in the field. 330.30HW, engine 4 days Bridges/brakes D 4 days

Each day consists of 8 hours attendance at the centre. 5.4 Training content The course content of the training given by the manufacturer to the firm's employees is designed Persons interviewed to provide a good technical knowledge of all the vehicle models currently in the market or due to At the company appear, and likewise of components,assemblies Company managing director and engines. They are also intended to improve Head of personnel performance in mechanical, electronic and other Post-sales supervisor tasks. Repair shop supervisor 1 union representative There ore also courses on dealing with customers, 3 workers driving economically, command skills, etc. At the manufacturer In 1991, the employees of Company A attended ihe following courses: Activities management coordinator

56 5 6 REST COPY AVAILABLE 3. ENTERPRISE "B"

Size:2 At present there are a total of 7 persons working at Enterprise B, including the owner, who acts as Brand: Renault manager. All the workers have labour contracts, except for one who is officially self-employed. Category: A Three out of the seven are related to the owner.

Type: C Total turnover for 1991 was Pta 25 million.

1. General description of the case The firmrepairs 180 vehicles per month on The firm studied here is a small private company average. providing services authorized by a motor vehicle manufacturer, for which it is a dealer. The firm's Customers are generally private individuals from activities include repair and distribution of carsthe area. As the firm does not repair industrial anci vans, and sale of spares and accessories forvehicles, its customers do not tend to engage in these. any one specific activity.

The major supplier of trainingisthe vehicle 2.2 Brief history and recent manufacturer, which offers both technical anddevelopment commercial training. In most cases such training The present owner has been running the firm since reaches the firm through the agent on which it 1972, but it was founded by his father in 1959 depends. and engaged chiefly in machining parts. Custom- ers in the early years tended to be basically motor The training required for paintwork is normally vehicle builders located in the area, and the firm provided by the paint manufacturer. also did some maintenance and repair work on industrial machinery (La Casera, Central Lechera, etc.). Starting in 1972, it was decided to start 2. General description of the firm doing motor vehicle repairs. The reason for this decision was the number of problems arising out 2.1 The firm of the constant changes in the kinds of parts to be Enterprise B, which engages in the repair and sale machined, involving frequent changes of very of cars and vans,is located in the "Argales" costly machinery. industrial estate in Valladolid. In the early 1970s the firm had as many as 14 Itconsistsof a singleestablishment roughly workers, the largest number it has ever had. Over 1000 sq.m.inarea, consisting of mechanical the rest of that decade and the next, the number repair facilities, sale of spares and accessories, dwindled, finally steadying at the present figure of new vehicle sales, stores and administration. Of seven. this total area, 100 sq. m. is taken up by a garden at the entrance and the restisbuilding. The When the firm began to do motor vehicle repairs, manager's office occupies about 25 sq. m., and it took on all categories (buses, trucks, cars, etc.). some 150 sq. m. are reserved for display and sale At the time there was a serious shortage of spare of vehicles. parts in Spain and they made what parts they needed,didvehiclealterations andsoon. This is an autonomous concern, an authorized However, as the sector modernized, spare parts Renault dealer linked to the maker through abecame easily available and the firm began to Renault agency called VASA (Valladolid Autom6-concentrate on repairs in the conventional sense, viles S.A.) located in the same town. The employer specializing in cars and vans. is registered as a self-employed worker with other workers in his employ. The firm joined the Renault network in 1982, since when itsactivityhas beenconfinedalmost The firm is exclusively a Renault dealer, selling exclusivelytotherepair and distributionof only Renault vehicles: all models of car and van. It Renault cars and vans. The changeover has not also largely repairs Renault vehicles of these types, however been a sudden one and there are still a although it does on occasion repair vehicles of number of customers from the old days who keep other makes. coming to this firm even though they have vehicles of other makes. But the important point is that from The firm's main activity is repairs. The repair shop that moment on, the company became a vehicle is divided into four work sections: mechanical, distributor as well as repairer. electrical/electronic, panelbeating /bodywork and paint.It has been selling vehicles for about Since it became an authorized Renault dealer, the 10 years, but this has never been a major part offirm has had the same number of workers. itsbusinessoverall.Currently,however,the establishment is being fitted out for more sales In the last few years it has based its strategy on business improved attentiontothe customer,toenlist 57 customer lo /alty so that they will not hesitate to 2.3.2 Occupational structure bring their vehicles to this firm for repair. This is not The manager, who is the owner of the company, hard tolcf ieve for a small firm without largealso doubles up as receptionist (along with his numbers of customers, as it is easier to get to know son). those that there are. The proof of its success is that there is almost always more work than the shop Up until1988, the work of the administrative can handle, and even a waiting-list at times. section was done by the owner himself and an administrative assistant. Since the latter left, this The firm's repair work underwent a qualitativework has been dealt with by the owner and by an change when it became part of the Renault network, outside firm of administrators. as it was obliged to bring the repair shop up to Renault's standards. As a consequence of this, andThe sales section is run by the owner alone. It is of the changing characteristics of the new carsplanned to recruit a salesperson in the near future. coming out, the company has been acquiring the requisite tools and equipment to deal with the new The repair shop comprises 6 people, occupied as technologies. The nature of repair work as such has follows: changed a lot: mechanical parts are no longer repaired but replaced, normally with new parts 1 shop supervisor supplied by FASA-Renault. As a result, less man- 2 mechanics

hours are spent on repairs, which means less 1 electrical/electronic technician and income under that heading. Body and paint work receptionist are proportionally more time-consumingand there- 1 panelbeater

fore more profitable. 1 painter

In view of this situation,the firm's short and All are qualified Cl. 1 tradesmen. medium-term objectives envisage expanding the distribution and the body and paint sides, without however taking on less mechanical and electrical2.3.3 Work organization and work. Previously, it undertook motor vehicle sales methods on a very minor scale:infact,the owner/Customers for repair work or sales come directly manager himself did all the work. Now, in order to the firm's establishment. The firm does no to adapt to present trends in the sector, there are advertising of any kind, as it enjoys a fairly plans to expand the workforce, taking on onesteady clientele. person for the sales section and two more forbody and paint work.Inaddition,alterations areRepair work is distributed as follows: when a currently in progress at the establishment to make vehicle is brought to the shop, the receptionist room for a vehicle showroom. (the owner or his son) records the details on a card and fills in the diagnosis on forms supplied What the new technologies are bringing about is by Renault or that purpose. The forms are signed not so much a change in the basic working of by both parties. The customer is given a counter- vehicles, but rather a change in the way mechan-foil, which he or she returns upon collecting the ical and electrical repairs are organized. Thus, the repairedvehicle. Once a vehiclehas been firm's latest equipment acquisitions have consisted accepted, the order of repair is as follows: it is chiefly in diagnostic apparatus: polymeters, ansent first to the mechanical section, then to the oscilloscope, a heat tester, the Renault "kit"(a electrical/electronic section, then to the body- multi-functional computerized device; it operateswork section and finally to the paint section (as with a diskette that is changed every six months required, of course). and includes the charaderistics of the new Renault car models). The firm has also acquired a paintPolicyisfotry and ensure thatrepairsfor cabin and a chassis bench. customers in the greatest hurry and simpler or more isolated kinds of repair are carried out more 2.3 Structure of the company quickly than others. 2.3.1 Organization The shop has no particular speciality but undertakes repairs of all kinds.It does not normally Table 39Organizational chart subcontract work to other firms, except for radiator cleaning, which is farmed out to a specialist firm on the same industrial estate. Manager The workers normally carry out tasks within their own specialized areas, butinevitably there are times when pressure of work forces them to turn 1 iSales selection Repair shop Administration their hands to work outside their own normal 58 fields. 58 2.4 Human resources Shop supervisor Pta 127,301 Tradesman Cl. 1 Pta 99,780 2.4.1 Evolution of employee numbers In November 1992, there were a total of sevenOn top of these basic rates are the increments persons working inthe firm,all male and ofmentioned above, which depend on the charac- Spanish nationality. At the beginning of October, teristics of each worker and his specific job. Thus, a panelbeater retired and his replacement wasgross monthly pay inthis firmis currently as recruited in September, so that during that month follows: there was one worker more. Mechanic A 111,924 In 1989 the number of workers was the same as it Mechanic B 102,908 is now. Painter 110,937 Panelbeater 101,949 Electrician 131,475 2.4.2 Classification of the workforce

Table 40 - Distribution of workforce by age: Overall rates, then, are as follows:

Age groups No. of workers Tradesmen Cl. 1 111.839 (average) under 25 0 Shop supervisor Has no fixed rates from 25 to 40 5 of remuneration. from 41 to 55 56 and over There is no collective agreement in the firm. The workers are classed as tradesmen Cl. 1 andare The average age of the firm's workers is around normally paid rates more or less in line with the 39. provincial collective agreement plus supplements. The idea is for everyone to receive top rates for All the workers on the payroll have permanenttheir occupational categories, since itis consid- contracts, except for the new panelbeater: he has ered vital to retain good tradesmen, who are not a 6-monthcontract,butwillbe takenon easy to come by. permanently when that expires.

There are two persons not under labour contract: one of these is the manager, who is registered as 2.4.4 Workers' training level self-employed with other workers in his employ;The workers' basic training background may be the other is the shop supervisor (the manager'sclassified as follows: brother), who isa self-employed worker on service contract. The shop supervisor and the panelbeater joined the firm with primary education (compulsory regulated education up to the age of 14). 2.4.3 Working conditions Mechanic A completed first-level vocational On the whole, working hours, vacations an-1 pay training (FP 1) in the motor vehicle branch. are as establishedinthe provincial cc octive Mechanic. B completed the university prepara- agreement. tory course (COU), The receptionist/electrician studied technical The establishment is open to the public from 8 a. m. engineering, electronics branch. to 1p.m. and from 3.30 to 7 p.m. The manager is The manager has a qualification in industrial available to customers during all these times; the engineering. workers, on the other hand, are subject to a legal annual total of 1826 working hours, equivalent toThere is no systematic approach to the level of an average of 40 hours per week. Work hours are training required of new workers. No specific from Monday to Friday. skills or studies are demanded. The basic criterion is that they know their trade well, and this is not Vacations consist of the entire month of August, something that an be achieved through the when the business shuts down entirely. academic training currently available. For this reason, the prime consideration when recruiting Current pay rates in the sector are established bysomeone is experience. In the manager's opinion, the provincial metal trades agreement of 1992, the Vocational Training Colleges are not ad- which is valid for two years. By and large, wages equately equipped to train tradesmen, besides consist of basic pay plus increments for seniority,which experience in a workshop is essential for special features of the job, etc. There are twelvelearning the trade. For all these reasons, then, monthly payments plus two extra payments. Basic recruiting policy favours ready-skilled personnel gross monthly pay for 1992 were as follows forwith experience, so that the firm has no need to the categories existing in this firm: provide any kind of basic training. 59

9 Internal promotion isnot a practical option at Table 41 Organizational chart present, since all the workers are at the top of their Chairman of the Board respective categories. The situation has remained of Directors unchanged for quire some years now, despite the fact that at least c le of the current workforce Management committee started in the repair shop as an apprentice. Even the panelbeater who has only been with the firm for 3 months started as a tradesman Cl. 1; this is Divisions Commercial division because he already has sufficient expertise gained previously as self-employed owner of a small two- close man repair shop before he was forced to Other depts. Post-sales dept. Marketing dept. down and come to work at the firm concerned here. Post-sales Sales 2.4.5 The situation outside on the training organization 'labour market 7 In recent years, properly skilled tradesmen for the Commercial Spare Technical soles school sector have been expensive and hard to come by. parts and service Workers with experience normally have no trouble training at all in finding employment, and this militates against beginners in the sector who have not yet had theopportunitytogain the experience Technical Customer necessary to become fully skilled. This goes some training relations way to explaining the high average agefound in the sector.

Particularly hard to find are experienced panel- inthe beaters and painters; however, where previouslyprecise about thelast two categories they were not to be found at all, such tradesmen secondary network owing to the small size of the have recently started to become available as a dealerships. Roughly speaking, we may estimate inthe result of the progressive disappearance of motorthat there are some 10,000 working vehicle repair firms employing 1 to 3 workers. primary network and 7,000 in the secondary network.

3. Providers of continuing training The training imparted falls into three structural categories:underthe headingofpost-sales 3.1 The firm's structure and strategy training we have the technical and the organiza- Virtually all continuing training is supplied by thetional sides, and under commercial training we technicalside employs 25 manufacturerFASA-Renaultthrough itsarea havesales.The agency. The manager has on occasionattended instructors and 6 outside consultants; the organi- courses run by the Associationof Vehicle Repair zation side has 6 instructors and 3 consultants; Shops of Valladolid; and finally, some continuingand the sales side has 6 instructors and 4 training is provided by their paint manufacturer, consultants. Of this personnel, about 10% are althoughitreallyconsistsingiving periodicadministrative. technical advice. 3.2.1 FASA-Renault: general policy 3.2 Training structure at FASA-Renault and training policy in respect of agents For decades now, FASA-Renault has been one of The basic guidelines of training policy are directed the country's biggest motor vehicle builders. towards achieving the highest possible quality, a goal which has been at the heart of general FASA-Renault currently possesses a network ofcompany policy since 1988, and especially in more recent years. With this end in view, training 280 agencies and14subsidiaries,plusa secondary network of 1500 dealers. The Renault is given to agents to familiarize them with the network of authorized establishments is the largest product they are handling, with the commercial strategy they are to follow, with organization and in Spain. management of sales and post-sales, and above The personnel employed by this network breaks all to make them strive for better quality in post- down as follows: 11,500 persons engaged in sales repairs. repair work;1500 middle managersinthe primary network and around 1500 owners ofGeneral and commercial policy tie in closely with the enterprise dealerships in the secondary network, of equiva- agency training policy. In this way lent rank to the former. There are 1200 personsseeks to adapt constantly to the market in a sector doing work related to stores and 1500 working inthat has been in a state of permanent flux for some technological 60 sales in the primary network. Itis difficult to beyears owing to such factors as

13 innovation,better-informedclientele,growing departments. This being a multi-national concern, competition from other makers, and so on. suggestions on training guidelines are sometimes received from France. Training guidelines are set Every year, training objectives are set for each only after a general objective has been identified agent, as a means of stimulating them to attain the through a series of meetings between training desired level of instruction. Within the agencies, staff, regional office personnel and outsidecon- training is also seen as a very important stepping- sultants for the purpose of harmonizing interests. stone to personal promotion, as vacancies are The outside consultants are normally commis- filled from below with house personnel possessing sioned particularly to supply the methodology to sufficient merits. be used on the courses.

The most important innovation to be introduced in As a rule, the costs of courses are defrayed by the trainingsince 1987 has been preciselythe manufacturer, the agent paying travellingex- attachment of such importance to it,particularly penses only. beginning in 1988, since which time training is the activity where costs have increased fastest for Dealers go for training to their agency, which must equipment (new teachingtechniques, videos, have premises in which to provide training plus at computer simulation,etc.) and personnel, and least one person highly specialized in technical has become a key part of the firm's generalaspects of vehicles. The agent pays the costs of strategy. It is estimated that in 1987 only one-fifth trainingitsdealers, who only have to pay as many courses were given as in 1992. travelling expenses. Where the subject is of some complexity, the dealers go for training to their 3.2.2 Preparation of courses regional FASA-Renault offices, and in the case of Every year, a training plan is drawn up setting greater difficulty still, they must attend the training forth the courses to be offered and is sent to allcentres in Madrid. agents and subsidiaries. With advice from the regional FASA-Renault offices, these select the The methodology currently followed on these courses that they wish to attend, which will be the coursesisparticipativeinstyle,using simula- subjects for which they see most need. On the tions, with an instructor and plenty of practical basis of the returned applications, the manufac- casestudies.More and more new training turer adjusts supply to demand and draws up the techniques are being introduced, and thereis final training plan for the year. much use of audiovisual media, computer-assisted instruction,etc.Courses generally have some With this planning system, the agents take an theoretical content but are eminently practical. active part in structuring the training they are to receive. They may also suggest the inclusion of As to syllabuses, in 1992 the technical training courses on subjectsnot plannedfor by the section offered a total of 30 different course types, manufacturer. the organizational section 33 types and the sales section 20. Technical course content is aimed at Although attendance on courses is not obligatory, familiarization with models both old and new, the manufacturer may withdraw the agency from engines, components and so on. The sales courses any firm failing in normal circumstances to devote include commercial techniques, knowledge of the a given percentage of profits to training. Dealersdifferent models on the market,etc. And the normally receive their training through the agent, organization courses cover customer relations, whose duty it is to inform them, train them, givecommand skills, economic management, adapta- classes and in general supervise them. tionof dealerships to the company's way of working, etc. By way of illustration, the last set of At the premises where the courses are held, an courses given in post-sales were as follows: area of 5000 sq. m. under cover is reserved for technical training. Of this, 60% is taken up by the organization practice area and the rest is occupied by 20 stores control and management classrooms: of these, 60% are in Madrid and the operating account other 40% are located at regional offices in the business organization and management country's major cities. For organizational training, marketing there are 8 classrooms occupying an area of mechanized store management 750 sq.m. And for sales training, there are 6 commercial accounting course classrooms occupying 700 sq. m. The last two office computerization types of training are given only in the Province etc. of Madrid (Alcobendas). technical Decisionsontrainingdesign,planningand gasoline injection methodology are ultimately the responsibility of suspension the commercial division, within which itis dealt power steering with specifically by the marketing and post-sales air conditioning 61 ABS brakes of the new technologies that these incorporate, AXR -25 diagnostics is now one of the most important tasks, single-point injection and training is becoming increasingly necessary etc. to be able to operate the instruments for this.

The organizational and sales courses are aimedIn body and paint work, operatives have to adapt particularly at middle management level(unit basically to the new materials, while the sales- heads,shopsupervisors,dealers,etc.).The man'sjobhas become moredirect,more technicalcourses are aimed atrepair shop"aggressive", requiring detailed knowledge of personnelandalsoatmiddle managementthe different makes on the market, particularly people who need to have some grasp of vehiclethe one he is trying to sell. technology.

The number of participants at courses in 1992 4.2.2 Relationship between skills was 9000, of which 5000received technical required and training approaches training, 2000 organizational training and 2000For mechanics, electricity and electronics, the commercial (sales)training. These figures are instructionsuppliedbyRenaultisgenerally based on course registrations, so that one person enough to meet training needs without the firm attending three different courses will be countedhaving to undertake any special training action. three times. The field of vehicle electronics, a considerable problem for most small firms in the sector, is well The duration of courses ranges from one or two catered for here since one of the workers is a days for presentation of new models to salesmen, technicalelectronicsengineer.However,the up to a maximum of 15 daysrequired to present Renault body and paint courses are not so them to specialist technical personnel. By andthorough, and atthe end of the day such large, however, courses last from three days to a deficiencies are compensated for by the workers' week. experience. In paint, they take advice from the paint manufacturers, who pay frequent visits to the Admission to some courses is contingent upon repair shop. These brands are in fact suppliers to having attended other courses; in other words, FASA-Renault, so again it is through the connec- there are cumulative blocks of knowledge with tion with Renault that they keep up to date on which students build up their personal training paints. background. This is not always the case, but it is an increasingly common practice,particularlyTraining for sales is not systematic, but what little since therecent computerization of data on thereis comes largely through FASA-Renault. personnel training. Periodic meetings are held with the urea agent Total investment in training of agents and dealers and dealers to discuss new models, the market in 1992 came to Pta 500 million. In 1987 thesituation and so on, as a means to "designing" figure came to around Pta 75 million, so that there sales strategies. The firm as such plans no action in has clearly been a quantitative change, so great this direction. as to be qualitative, in the importancethat the enterprise attaches to training. 4.2.3 Historical development of training strategy from 1987 to 1992, 4. The firm's training policy and training practice The firm's strategy intraining matters has not 4.1 In-house training plans altered in recent years:itstillrelies upon the The firm has no internal training plan of its owncourses provided by FASA-Renault.The way the beyond a willingness expressed periodically to firm brings such instruction to the repair shop is by attendtrainingcourses runby FASA-Renault sending one worker on a course, who then passes through its area agency. These courses are not on what he has learned to the restof the company. compulsory, in spite of which the firm's personnel Thisis normally always the same worker (the attend a good number of them, for itis felt that owner's son). Information from the courses is not they are essential for day-to-day adaptation topassed on to the other workers in a systematic new technologies andmodels. The firm's policyway; rather, when another worker encounters a and strategies would be meaningless without theproblem for whose solution the new knowledge is training provided by the manufacturer. required, the one who went on the course will show him how to proceed. 4.2 Relationship between training and skills Practically all the courses are given by FASA- Re,ult training staff at the agent's premises in 4.2.1 Analysis of skills acquired Valiadolid. Very occasionally, courses have been Workshop personnel need to adapt constantly to giveninAlcobendas(ProvinceofMadrid). 62 the characteristics of new vehicle models. Because Courses generally last from two to six days. 4.3 Access to trainingtargets 4.4.2 Development over time Trainingultimatelytargetsallthe company'sFrom 1987 to 1992 there has beenno change employees,includingmanagement. However,whatsoever in the firm's training structure. What given the way that this firm functions, not every-has changed is the person who attendscourses: one attends the courses: only one or two workers up to 1988 this was the manager and since then it actually receive direct training, which they then has been hisson.However,this makes no pass on to their peers. significant difference to the way training is carried on. 4.3.1 Participation in continuing vocational training courses (1987 to 1992) 4.4.3 Relationship between participa- Over this period only three persons have attended tion in training courses and workers' trainingcourses theowner,hisson(the occupational progress electrical/electronics specialist and receptionist) This does not exist. Since there areno opportu- and one of the mechanics. They attended the nities for promotion in the firm, training courses do following courses: not affect the occupational category of each worker. Table 42 4.4.4 Requirements and future plans Courses Age Position Training Seniority for continuing vocational training 1987/92 The firm's strategy as regards skill looks set to carry on in the same way. In the short-to-medium 60 Manager Graduate 20 7 term the firm is expected to recruit 2 or 3 more Tradesman Cl. 1, workers, after which it is planned thatone person 31 electrical Graduate 6 12 Tradesman Cl. 1, more attend the FASA-Renault courses along with the manager's son. It will also be seeking other 38 mechanical Secondary 16 1 training courses on panelbeating and bodywork, an area in which the firm could do with more All courses have theoretical content with practical expertise. And in spite of everything, when the demonstrations, except for those on customer new hands are hired, they will be required first relations, office organization and stores, which and foremost to have good working experience are theory only. the firm still seeks to recruit highly-qualified and ready-trained workers. In addition, FASARenault runs one-day "courses" explaining the characteristics of new models every4.4.5 Participation of social partners time one is launched. The firm generally sendsand trade associations someone on these. There is no union presence in thecompany. The unions are represented in the sector, but their 4.3.2 Access to continuing vocational presence is weak. As far as training is concerned, training their only relevanceisas signatories of the The bulk of the workers do not receive the constant provincialcollectiveagreementsthatgovern updating that this kind of training involves:itis labour relations in the sector, although in fact rather the dynamics of work in the repair shop thatthey make no mention of continuing training. force them to adapt to new needs. The decision to go on a course is made by the manager and the The firm is a member of the Provincial Association person who regularly attends them (his son), inofVehicle Repair ShopsofValladolid.The response to needs arising in the shop. Since this is association organizes courses for managers and a small firm, such needs are easily identifiable in employers in the sector, particularly on subjects the daily round of work. relating to office management and organization. The manager of the firm concerned here attended 4.4 Training plans one such course. The association has occasionally The firm has no. training plans of its own butorganized technical courses on repairs, butno- follows the lead of the manufacturer. one from the firm has ever attended since they believe that the courses add nothing to what they 4.4.1 Objectives of training get from FASA-Renault. These objectives are determined by the practical needs arising in the course of the firm's work. Labour relationsare smooth-running even There is no advanced planning of approaches to although the workers are not organized inany problems; the manufacturer to which the firm is way for the defence of thetr interests (no union has linkedintroducesinnovations which must be a representative in the firm). Disputes are settled adapted to and organizes the courses required personally with the manager and nobodyappears for the adaptation of its authorized services. Asan to have any complaints about the procedure. authorized Renault service, the firm does not plan What the workers generally want training in is the continuing training but simply attends regularly the new technologies being incorporated in vehicles, courses organized by Renault. and they seem satisfied with the way the firmgoes 63

4 '6,1 about supplying the new knowledge. It should be 5. Evaluation of training approach borne in mind thatall are very experienced workers and are therefore confident of their5.1 Evaluation of existing training ability to do their lobs well. The training level of the firm's personnel is quite high: two are graduates, two have secondary education and three primary. Their level of skill, 4.5 Training costs based on years of experience (the average is 20 There is no charge for the courses provided byyears) is also quite high. FASA-Renault. The only costs involvedinthis training are travel and maintenance. Sincethe What enables the firm to operate and adapt to the vast majority of these courses takeplacein new vehicle characteristics is thekind of skilled Valladolid, the expenses involved are minimal. In personnel on the payroll and periodic attendance the last five years it has only been necessary to ontrainingcourses by one of them.This travel outside Valladolid three timesto Alcoben- procedure, which consists in addressing needs das (Province of Madrid) where FASA-Renault has as they arise, has providedgood results to date. the sector to its sales and post-sales school. However, were circumstances in change, thereis no assurance thatit would The overall cost of training comprises travel and continue to work, since the firm has no long-term maintenance expenses where these arise, andloss viability plans. Thus, little thought is given to how of working hours in which the employee attendspersonnel can be upgraded when the scarcity of the courses and is paid by the company. In 1987 qualified workers on the market makes these hard these hours came to a total of 96 for the entire to find. The answer to this might be to introduce a firm, rising to 128 in 1992. In 1987, only the permanent continuing training plan for all employ- policy to admit other manager attended courses,then from 1988 on it ees and change recruitment was his son, who was the onlyoffender at training than fully-qualified workers. The firm has no plans courses in 1992. The manager's traininghours to train up its own workers from scratch as a cannot be calculated in money terms ashe has no means of ensuring qualified manpowerfor the fixed pay. Hours of training attended by the firm's future. employees have been as follows: In any event itis clear that given the present market situation and the economic outlook in Table 43Hours' training general, the prime consideration is immediate competitiveness, and therefore the firm has no intention of taking on added costs that will detract 1987 1990 48 hours from its current profitability. The impression one 1938 56 hours 1991 144 hours effort to 1989 144 hours 1992 128 hours gets is that no-one is making any serious provide proper training for future employees in the sector.

In 1992, then, a total of 128 hours was spent onThen again, the present approach to recruitment training. As it was the same person who did allthis will tend increasingly to ensure high wages for training, the resulting figure for hours of training good tradesmen, so that in the end of the day only per worker cannot beconsidered wholly valid, but the firms with the most nik..-ey will be in a position in any event it can be calculated and comes out as to retain and attract skilled workers withgood 18.3 hours per worker. experience, to the detritn.r,t of the smaller firms.

Between 1990 and 1992, three trips weremade The manager is very satisfied with the skills of his to Alcobendas (Province of Madrid), oneeach present workforce, and they in turn aresatisfied year. The cost of traveland accommodation by with the training they receive, although they do years was as follows: admit that it would be good to attend the courses personally; however, there is no time for this as 1990 Pta 39,000 they are needed day-to-day in the repair shop if 1991 Pto 45,000 the business is to continue operating. 1992 Pta 50,000 The firm is very satisfied with the training provided In all cases only one person was involved. by FASA-Renaultso much so that it has become one of the key elements in its operation.However, Thus, in 1992 training costs came to a total of Pta itisin body and paint work, the areasleast 155,088 (including the cost of hours not worked providedfor, and likewiseinsales,that the and travel and maintenance).If we divide this company is keenest to see more training. figure by the number of persons in the firm, we obtain an amount of Pta 22,155 per worker/year. 5.2 Best practice/normal practice Investment in training as a proportion of gross Itis not possible to apply such a criterion to the 64 payroll cost for 1992 was 2.3%. training model considered here. We might simply

ti 6 .1 note that thereis nothing exceptional or newPersons interviewed about the Firm's training procedure. In the enterprise 5.3 Future demands In the near future, the most demand for continuing Manager training will come from the areas of panelbeating Shop supervisor and body work, and sales. And itis precisely in Two workers these two areas that the firm wishes to advance in order to cater for customer demand ona profit- At the manufacturer able basis. One official from the industrial division's training When the planned expansion of the firm takes department. place, itis expected that more than one worker One training official from the post-sales section of willattendtrainingcourses. To increase the the commercial division. workforce,recruits may need to be able to perform multiple tasks. This is scarcely a possibility at present, as each section has barely enough workers to keep going. One way of solving this problem might be for workers to personally attend courses on other specialities.

There is no obvious need for future change in the contents or methods of the FASA-Renault courses. At allevents, any change should beinthe planning of access to training by the firm referred to here.

Table 44 - Courses attended by members of the firm from 1987 to 1992:

No. Year Courses (subject) Duration participating

1987 Post-sales 5 days Combustion 4 days Brakes 3 days

1988 Gasoline injection 3 days Stores 4 days Steering assemblies 3 days

1989 Georboxes 6 days Int. combustion engine 6 days Office admin. 3 days Engines 3 days

1990 Diagnostics 3 days AXP.25 (diagnostics) 3 days Air conditioning 3 days

1991 Vehicle electrics 6 days Vehicle electronics 6 days ABS brakes 6 days

1992 Injection 4 days Steering 6 days Suspension 6 days

65 a6 5 4. PRA DES MOTOR, S.L.

Size: 4 VallesOriental(where Prades Motoristhe exclusive agent for Seat). Brand: SEAT Prades Motor started as a personal business, but category: A on joining the Seat commercialnetwork as an official agency,it became a limited company Type: C (S. L.) although still independent of Seat.

1. General description of the case At present,however,itisinthe process of This is a medium-sized private company engaging splittingin response to the needs of the two in the repair, sale and distribution of new and used brands. Thus, although it continues to cater for vehicles,spare parts and accessories ofthe both makes, it has been compelled to rearrange brands Seat and Audi-Volkswagen; this case its facilities, making them officially separate units study, however, will concern itself only with the of the one agency. This has required restructuring services provided by the firm as a Seat agency. both of physical elements and of the management and administration of internalresources The training received by this agency is provided (material and human). exclusively by the manufacturer, although some very sporadic courses are givenby material During1991Prades Motor declared overall suppliers. turnover (both sales and repairs) of Pta 2,442 million,of which approximately 54.4% (Pta The manufacturer's training initiatives issue from 1,328 million) was income from activities involv- the commercial division, and more specifically ing Seat, the rest being from activities involving from the areas concerned with commercial train- Audi-Volkswagen. ing and post-sales training, which in turn depend on the central marketing and centralpost-sales Repair shop turnover for the same year was Pta departments respectively. 221,109,538, of which Pta 120,283,588 came from repairs of Seat vehicles. 2. General description of the firm Prades Motor has a workforce of 67 (including 2.1 The firm both Seat and Audi-Volkswagen), 32 of whom Prades Motor is a business engaging in the repair have been assigned to Seat services. and sale of new and used vehicles and the distribution and sale of accessories and spares. It At the present moment the capital allocated to the is located in Mataro (Catalonia). Seat side is Pta 800,000. We have no figure for Prado Motor'stotalcapital as thefirmalso The firmis part of a group composed of five represents Audi-Volkswagen. independent agents of the same brand. They are constitutedas separate legalentities with a The firm currently carries four Seat models: Terra, common president. These agents, each operating Ibiza, Ibiza Sport and Toledo, all designed for under its own trade name, all provide comprehen- passenger use and in some cases also light goods sive services and are distributed about the territory transport. of Catalonia as follows: Although the firm's main business is the repair and Barcelona. Premises with 8000 sq.m.floorsale of Seat and Audi-Volkswagen vehicles, it also space (devoted exclusively to thesale and sells used vehicles of other makes, in respect of repair of Seat vehicles). which it also offers technical services even though they are not authorized makes. Granollers. Premises with 5000 sq. m.floor space plus 20,000 sq. m. open spacefor stock- The target population for the Seat products it offers age of Seat and Audi-Volkswagenvehicles. are urban middle class.

Matar6. Premises with 10,000 sq. m. space for The firm has facilities occupying 10,000 sq. m., Seat and Audi-Volkswagen. roughly half of which is devoted to Seat products.

Badalona. Premises with 5000 sq. m. There are Allthe services are grouped together inthe two repair shops dealing with the two differentestablishment: repair shop, spares and accessory brands (one shop for Seat and one for Audi-sales, administration and sale of new and used Volkswagen). vehicles.

The group employs a total of 298 persons (for Inadditiontotheservices named, thefirm both `;eat and Audi-Volkswagen) and has 28 subcontracts other services such as tow trucks, dealers, shared by Seat and Audi-Volkswagen, upholstery, radiator cleaning and some injection 66 located in El Maresme, Barcelona, Badalona and pumps.

-4, 66 The company repairs roughly 300 vehicles every Moreover, as a means of dynamizing its sales month. system, the firm devised a system of computer files with extensive data on the potential market to make better use of the time spent by salesmen 2.2 Brief history and recent travelling away from the home premises. development Foundedin1903 by thepresent manager's This initiative and the one before it are among the grandfather,thefirmstartedout as asmall objectives that Seat, as supplier, proposes to workshop in the town of Granollers, engaging in implement among its agents. vehicle repairs and more especially gunsmith's work. 2.2.1 New technologies When the father took over the business around The introduction of new technologies in the sphere 1963, thefirst contacts took place with Seat,of motor vehicles has brought about significant which at the time belonged to the Seat-Fiat-Simca changes which in turn give rise to considerable group. modificationofthe way work proceeds in management, administration, sales and, above It was about this time that the firm began to grow. all, vehicle repairs. It expanded its area of operations through the acquisition of the Mataro premises and the group Theapplicationofincreasinglysophisticated of agents gradually expanded until it reached its diagnostic systems and the automation of mechan- present size. ical component manufacturing processes (significantly reducing manufacturing costs) have gradu- Like other businesses in the sector, Prades Motorally brought about a transformation of the work he s recently undergone far-reaching changes in processes in repair shops. response to transformations in the product and the introductionofnew technologiesthathave Replacement rather than repair of parts is becom- substantially altered work processes. ing the norm, while electrical and electronic work gradually displace mechanical work as the new These transformations, whichinevitablyentail tools and devices used in repair systems and the rethinking of business strategy and management, components incorporated in new vehicles increas- are driven by the manufacturer. Seat applies ingly require repair techniques of an electrical or general standards to the entire network and itis electronic nature. Seat that decides on the introduction of new tooling and work systems, and likewisethe In this situation of change, training becomes an internal management and organization of the essential tool for equipping workers to assimilate agency, in obedience to a number of pre-definedwith some ease the transformations that have objectives set by it. arisenin productive processes and preparing them for further transformations in the future. These objectives, which guide the maker's commercial policy, may be summarized in two broad Diagnostic systems are the most important of the lines:to improve quality and servicetothe more recentinnovationsintherepairshop, customer while maintaining or improving levels particularly the brake diagnostic system and the of profitability. system which diagnoses failures that have been detected sporadically but not recorded, storing Thus, the agent's objectives and development them in its computer memory. strategies are laid down by the manufacturer and as an agent, the chief duty of Prades Motor is to live up to the confidence that Seat has placed in 2.3 Structure of the firm it. 2.3.1 Organization of the company and Inline with the policy devised by the maker, occupational structure of the employees Prades Motor has expanded its service network, working on Seat products seeking to place an associated dealer in every In addition, there is a night watchman for all three town of any importance and thus bring services areas. closer to the customer. The firm is divided into 3 sections and the post- Also, on its own initiative the firm has placed sales section into 3 subsections, corresponding to publicityinthe media (radio and thepress) the functional divisions in the repair shop. The designed as for as possible to raise sales and structural model is identical in the part devoted to increase its market share. Audi Volkswagen.

67 Table 45 - Organizational chart

Manager

Commercial Post-sales Administration

Head of sales Head technician24 Head of administration

Body/paint Shop Spares/ supervisor supervisor accessories supervisor

1 1 3 2 6 1 4 7 Salesmen Cleaner Operatives Operatives Receptionist AdministrativeOperatives Administrative assistant assistants

2.3.2 Work organization and methods approximate since itis not easy to arrive at an The repair process is as follows. When a car is accurate estimation of the real damage which brought in,all the symptoms described by the may be concealed without disassembling the customer are entered on a card. The receptionist vehicle. then decides whether or not this information needs to be checked and enters a diagnosis. An initial estimate of time is also required given that this may very widely due to infrastructural The receptionist then hands over the vehicle to the difficulties (there are only two gauges) or lack of shop supervisor, who performs the full diagnosis sparesif there is hidden damage and the part is and assigns it to an available operative. If this notinstock,itmust be ordered fromthe operative has any doubts, he must consult eithermanufacturer (requiring 3 to 4 days if the part is the shop supervisor or the head technician.' in stock and up to a week if it has to be made).

Specialization, then, is not a vital consideration in Once the bodywork is done, the vehicle is handed this shop, where the tendency is rather towardsover for painting and then cleaning. versatility. Only inthe case of more delicate repairs are jobs assigned specifically to workersIf the vehicle has suffered an impact that could who are considered specially skilled. affect it mechanically, it is tested, and only once it is found to be satisfactory is it passed through the Upon completion, the repair is checked first on a rest of the procedure. diagnostic apparatus and then,if necessary, on the road. This is the receptionist's job. Like other Seat agents, Prades Motor has, on its own initiative, introduced a quality control system If the repair is satisfactory, it is handed over to the based on customer surveys. This is a questionnaire cleaner, who cleans and prepares the vehicle fordesigned to record the degree of confidence and delivery; inot, it is returned to the repair shop. satisfaction that customers express in ,pect of the services for which they regularly come to the An invoice is then made up detailing both theagent, and allows the firm to identify defects in the components that have gone into the repair and the performance of areas or specific work stations. hours worked, whichishanded over tothe customer along with the vehicle. Also in the line of attention to the customer, the repair shop recommends that aher 1000 km the Any doubts the customer may have or any further customer bring back the vehicle for a free check-up info, motion he may require is dealt with by theand repair (should there turn out to be a repair receptionist. defect) of all the elements involved in the repair job.

In the body and paint shop, the procedure is 2.4 Human resources essentially the same with some differences. 2.4.1 Evolution of number of workers Here,giventhatprices can vary widely,a In November 1992, Prades Motor S. L. employed previous estimate is given. This will always be32 persons on Seat services.

24 the head technician deals with both makes (Seat and Audi.Volkswogen) 68 BEST COPY AVAILABLE We lack data on evolution of workforce numbersOn several occasions the firm has entered into because up till now there was no distinction training agreements of this kind with vocational between Seat and Audi-Volkswagen personnel. training schools as a means to rejuvenateits workforce and to expand and improve training It seems that any changes that there have been in levels. The firm takes a very positive view of the workforce composition have consisted either ofresults, and infact two of the young people intake of young persons or of voluntary dis-currently on the payroll first entered the firmon charges, dischargesforcontractual or health training placement. reasons,retirement,etc.-butinno case redundancies. The firm has never resorted to this Women (6 inall) make up 18.7% of the total practice with its employees and does not considerworkforce at Prades Motor. Of these, threeare it a practical option for the future. assigned to administrative tasks and the other three are saleswomen. 2.4.2 Distribution by age groups and types of contract Theentireworkforcewithoutexceptionhas Spanish nationality. Table 46

Age Absolute nos. Relative nos. 2.4.3 Working conditions Repair Repair Agency A gency Working hours and vacation periods areas established by the current provincial agreement for the metalworking sector. Under 25 5 3 15.6% 20.0% i'om 26 to 40 9 2 28 1% 13.3% Thus, the working week is 40 hours, the working i-orn 4110 55 if 16 8 50.0%53.3% day running from 9 a. m. to 1 p.m. and 4 over 55 / 2 2 63% 13.3% p.m. to 7 p. m., except Fridays when the working day ends at 6.30 p.m. Total annual hours are made up by Table 47 - Type of contract working a rotating Saturday shift, which is used to do maintenance on the shop facilities and provide a fast service for minor repairs. Perm anon' 25 12 78.1%80.0% Fixed 'erm 6 2 18 8% 13.3%

T,o.n,ng placement 1 1 31% 6.7% The commercH departments work Saturdays to meet public demand, but arrangements are made for an alternative day off mid-week. In relative terms the repair shop workforce is older than the firm's overall workforce: 66.6% of repair Pay is scaled in accordance with a provincial shop workers are over 41 as compared to 56.3% collective agreement subscribed by the "Union of forthe agency as a whole. Thisreflects the Motor Trade Employers of Valles Oriental Gran- seniority of the workers in the shop, and probablyoilers", which lays down gross basic pay plus a also the type of contract involved. bonus for every day worked. On top of this there is an increment for seniority which accrues for every Nonetheless, if we look at the under-25 group we 5 years worked, and two extra payments per year. find that there a E'gher proportion of these in the repair shop (20% as compared to 15.6% overall), Gross monthly pay as established by the agree- again reflecting the new recruitment strategies being ment for the labour categories in the firm is as employed We shall discuss these further below. follows:

Of the firm's 32 employees, 25 are on permanent Tradesmen Cl. 1 Pta 71,310 + Pta 1,553 contracts. This gives a proportion of 78.1 % and per day worked confirms thestabilityof the workforce noted Tradesmen CI. 2 Pta 70,680 + Pta 2,356 earlierItis worth noting that where most fixed per day worked term workingis found inthe sales area; this Tradesmen Cl. 3 Pta 69,810 + Pta 1,545 probably has more to do with the peculiarities of per day worked the work than with age, given that, as we have Sales rep. Pta 73,695 + Pta 1,571 seen, there is a higher proportion of young people per day worked rn the repair shop than elsewhere in the firm. Secretary Pta 70,377 + Pta 1,548 per day worked The young person on twining placement (in the Admin. asst. C1.2 Pta 72,192 + Pta 1,560 repair shop) is the only one to work part-time: this per day worked is an essential condition of such placement as the Watchman Pta 69,330 + Pta 1,564 student is supposed to gain practical experience per day worked on the job whilestill attending classes at his Driver Pta 70,980 + Pta 1,570 training centre per day worked 69 On top of these rates there are various bonuses, inWith this end in view, for some time now Prades the case of the repair shop, this consists of a Motor has been instructing young people in the payment (Pta 400/hour) for all the time that an use of work systems and methods through training operative saves on a repair, given that all tasks are practice agreements with schools, from which they times according to a set of sector-wide tables. later select their recruits on the basis of their performance during the training period (once they In order to ensure that such incentives do not raise have completed their military service). productivity at the expense of quality standards, there are quality control systems as noted earlier. Possibilities of internal promotion are poor given the scant room for manoeuvre that the firm's size On the commercial side, on the other hand, and structure allows. Despite this, however, as the bonuses are paid on the basis of numbers of cars workers seeitthereisno direct connection sold: ie, sales people have a common basic rate between training levels attained and occupational of pay, but on top of this a bonus is paid for every category: rather, the latteris seen as obeying vehicle sold above a given number. other factors, such as seniority or experience. The firm, nonetheless, takes the opposite view. Overtime working is not habitual, but when it arises, it is paid at the agreed rates. This recruitment strategy, which is intended to rejuvenate and improve the training level of the On thewhole,overage pry(notcounting firm's workforce, helps make up for the deficien- bonuses) in this firm is higher than stipulated in cies of the external labour market consisting in the provincial agreement for the sector, in addition the firm's view of a scarcity of skilled workers and to which there are individualizing factors that give poor management and organizationinthat rise to substantial differences even between work- connection. ers in the some official categories.

There are 30 days' vacatirs rper year, during3. Providers of continuing training which time the firm closes down entirely. 3.1 The firm's structure and strategy 2.4.4 Workers' training level Practically allthe training received by Prades Twenty-seven of the workers at the firm (84.4%) Motor is provided by the manufacturer, except on have a background training level equivalent toodd occasions when suppliers arrange courses on primary education, while the other 5 (15.6%), twothefittingof accessories or on methods or of whom are aged under 25, have alevel materials used in body and paint work. equivalent to secondary education. 3.2 The manufacturer's training Such a distribution is logical bearing in mind the service average age of the workers and the nature of the Seat has a long tradition in the domesi,c motor working systemsformerlyinuse:untilveryvehicle market; for many years it was a state- recently, academic achievement was not consid- owned company enjoying a complete monopoly ered necessary for work at a motor vehicle of motor-car manufacture in Spain. agency, and particularly not in the repairshop. Formerly, then, there were two basic criteria in Given its privileged posi,ion, the enterprise had no personnel selection: experience and the ability to need of expansion plans since the demand for work fast. vehiclesfaroutstrippedproductioncapacity. However,followingtheendofgovernment However, in more recent years the tendency has subsidization, the business entered on a serious been to recruit younger, better-trained persons indecline, which was further aggravated by the response to a changed set of requirements arising subsequent withdrawal of its capital stake by Fiat, out of the introduction of new working techniqueswhich until then had supplied the technology. and methods. In 1983 Seat commenced negotiations with Consequently, the primordial factor in selection is Volkswagen, culminating withits absorption by now training background less for the fund ofthe Volkswagen group in 1986, by which time it knowledge that this may represent (given that the was beginning to emerge from its crisis situation. firm has continuing training facilities) than for the capacity to assimilate that it presupposes. The concern currently has 204 agents and 593 dealers, the former employing some 5000 per- In addition to training, other factors taken into sons and the latter around 3500. account when recruiting are age and personal motivation, both of which can be important for In the post-sales area, there is a long tradition of better assimilation of information that is essential training going back to the 1970s, which is when for adaptation to the transformations ushered in by the school was set up. Commercial training, 70 new work processes. however, is of very recent introduction. 7 0 in service and improving management of agen- bringing constant change in work processes and 2. c:es. Post-sales training concentrates on ground-systems and a consequent need for assimilation of ingrecent recruits,improvingskilllevels and new knowledge and practices. Butthe greatest updating of knowledge in line with requirements need, according to the firm, is for new learning arising from technological innovation. systems,asitisnot aquestionofsimply memorizing every technological process which For the period 1991-1992 the manufacturerwould be impossibleinany case but of organized two parallel, mutually-complementary introducing workers to the use of manuals and programmes: 1. An "Extraordinary TrainingPlan" teaching materials, so that they have no difficulty aimed at raising workers' skill levels sufficiently to in turning to them when circumstances, now and in facilitatefurtherassimilation; and2.update the future, so dictate. courses on new products and work systems. The historical development of training at this firm is This "Extraordinary Training Plan" was made up inseparably linked to the training policy intro- of 5 modules, each subdivided into 3 or 4 coursesduced by Seat.At the outset activities were aimed at specific occupational groups and involv-centralized in a single permanent centre and as ing essential knowledge connected with the tasks a result courses tended to beover-condensed in of:receptionist,mechanic,electrician,panel- order to achieve a maximum return on the costs to beater, mechanic/electrician and painter. These participants of travel, accommodation and main- courses lasted 5 days and tookplace in the area tenance. training centres. The manufacturer subsequently concluded that it There are no premises specifically devoted towould have to decentralize courses and break commercial training. This takes place in hotels,down the subjects in order to facilitate attendance where reservations are made in line with needs in by its agents' employees and to make the training order to make training more accessible to the more continuous and progressive, andhence network as a whole. more effective. Prades Motor considerthat this is definitely theright decision, and thatitwill The courses offered in 1992 included the follow-facilitate and boost continuing traininginthe ing: new Seat appointments; Sales Techniques; network. the Seat Toledo Product; and also courses on management, administration and brand culture. From the outset, then, the agent's training strategy has been organized and guided by the manufac- Teaching methods are essentially similar. In both turer in obedience to technological innovations in cases the techniques employedinvolve active work processes (innovations determined by the student participation through simulation systems manufactureritselfandintroduceduniformly with analysis of their content and the practicalthroughout the network) and to the commercial activities they involve,although the practical strategy that it has defined. element is much more marked in post-sales (in commercial training, students practise comparisonTherefore this agent has never seen any need to of vehicles of different makes). The theoretical address any specific training requirements, as it course materials used arealso similar (transpar- considers that the manufacturer is perfectly aware encies, manuals, etc.). of the needs of its network of agencies, which are all more or less the same in the opinion of Prades Much of the teaching material used is handed over Motor. to the agents so that they can make use of it in peer training and whenever the occasion arises in theHowever, although this may be true in a general course of normal working. way, it must be said that the firm is notsatisfied with the training provided forits commercial In 1991, Seat's training costs came to Pta 599 personnel. In the manager's view, the courses million pesetas, covering infrastructure, instructors' offered in this area are inadequate (designed as pay and teaching material, whilethe agent pair.l they are for newly-recruited sales personnel) and the for the rest. ineffective,sincethey arenotsuitedto training needs that arise from changes in sales systems. 4. The firm's training policy Clearly,then,themanufacturer's commercial 4.1 In-house training plans training plan outlined earlier does not meet the Traditionally, Prades Motor has always sent its training needs expressed by the agent. The reason workers on the training programmes provided byfor such a gap probably lies in the fact that the Seat. commercial training area is still in its infancy and in strategic changes in the maker's commercial The firm considers it essential to train its workers in policy addressing transformations occurring in the 72 view of the continuous int-oduction of innovations sector. 72 Seat does not have a training department as such designed to bring training activities closer to the and commercial training depends on the retail agent by dividing the national territory into 10 management, while post-sales training is run by regions. These are so arranged that trainingis the service marketing department. provided from their centres to local towns at a distance never greater than 100 km. This reduces The technical training area has one head and 16 additional costs involvedintrainingactivities technicians, while commercial training has onewhile helping suit these to the specific needs of head and 5 technicians,besides specialized the area. personnel who assist in the design and delivery of training in these areas. In this decentralization model, there is a zone instructor whose duty it is to report periodically on AlthoughSeathadalreadyinitiatedmajor the qualitative performance in the region. Thus, changes initstrainingpolicy,thearrivalof the agent is not only required to achieve a quota Volkswagen brought fresh impulse to the process, of sales set by the manufacturer (and rewarded reinforcing its structural position in terms of bothwith an increase in share of profits) but must also budgetingandallocationofresourcesand meet the training specifications also set by the priorities, with particular stress on commercial latter. These are determined in the final analysis by training. the level of customer satisfaction, failure to meet these results in a reduced share of profits. Theenterprisehas two paramountstrategic objectives: to offer maximum satisfaction to theThe manufacturer organizes its training on four customer, thus creating a positive brand image levels:1. centralized training, where specific or that will help consolidate and expand the current institutional subject matter is imparted to chains of market share, and to ensure the profitability of thecommand and training personnel; 2. peer train- network and the services it provides. Training is ing,involvingallthe agent's employees and essential to the achievement of both objectives, as delivered through instructors; 3. residential train- it is through training that the barriers to this policying, targeting groups on the basis of their functions can be overcome. within the agency and organized and delivered by the manufacturer; and 4. distance training, The planning, design and methodology of training oriented towards private study and run througha programmes takes place in the commercial and tutor system. post-sales training areas, on the basis of the priority objectives noted above. Course prepara-The drive to systematize the training on offer, thus tion and content further take account of otherenabling agents to plan their training activities objective indicators identified by surveys (con-sufficiently well in advance, together with decen- ducted on the basis of questionnaires) involving tralization, pave the way for greater participation not only prospective trainees but also brand in and better planning of such activities. customers. 3.2.1 Training for agents It is further planned to shortly introduce a system of In the course of 1992, Seat ran 402 courses for a control for each agent, consisting of an area agent total of 3780 participants, 210 of them for post- who will help bring the manufacturer closer to sales and 192 for commercial personnel. specific problems and needs,thusimproving network profitability. Atthepresent moment, commercial training consists chiefly in learning to demonstrate the As a stimulustotraining, inmid-1992 thecomparative technologicaladvantages of the manufacturer drew up a decentralization plan product, understanding the importance of quality

Table 48Organizational chart

Executive committee

Commercial vice-presidency Other vice-presidencies

Central marketing Domestic market Foreign market Central post-sales

Retail Other Service Other management departments marketing departments

Used CommercialCommercial Technical Signs Post sales vehicles management training publications training 71

REST COPY AVAILABLE So, although this firm has traditionally displayed states the approximate number of employees to an interest in training for its employees, the way it attend the proposed training programme and it is participates therein has tended to change with the the head technician and the head of the area manufacturer's training policy designs, particu-concerned who decide who exactly is to go and larly as the latter has made training easier and what coui ses they are to attend, with a view to more accessible. establishing vocational careers for employees.

The manufacturer's training structure is directed Where peer training is concerned, all the employ- towards two types: 1. individuals requiring great- ees in the area involved are potential beneficiar- er and more specific expertise, whether becauseies, although the training reaches them in an of their specific function within the agency orirregular way: that is, they receive training at odd because they are designated instructors (the firm moments as outlined above, except in the event has the power to allocate this task to a person that for operational reasons a given section of the whom itconsiders suitableinthelight of hisworkforce requires an immediate update, in which qualifications or teaching ability); and 2. groups caseacourseisarrangedforcompulsory of employees with similar training interests arising attendance by all concerned. out of specific posts,in which case the actual instructionis generally given by monitors (peerWe might add that to date the dealers have had training), although on occasions courses are given no part in these training programmes, although at the manufacturer's centre (residential training). Prades Motor has begun to draw up a plan for In the case of post-sales, such residential training them, to be carried out on a peer-training basis. normally takes place under extraordinary mass training schemes designed to eliminate basic Participationis compulsory, but this has never shortcomings that could hinder or prevent properpresented a problem, since the workers have assimilation of instruction vital for the operation ofalways shown willingness to attend. new work systems and methods. 4.3 Training plans This type of training is practically non-existent in Prades Motor's training scheme follows the guide- saes and spares, and so only the heads of eachlines set by the manufacturer. The firm has no ar a attend courses run by the manufacturer. plans of its own.

Itisthe areaheads,then,orthe persons Because of the recent internal personnel reorgani- designated for the task, who pass on the trainingzation, itis not possible to establish a historical that they receive from the manufacturer, except in pattern of training and we shall therefore confine sales where in the last two years only the headourselves to training data for the years 1991 and technicianhas given any courses, andthat 1992. sporadically. During this period 28 people attended courses, Peer training is delivered through a monitor, who mostly repair shop personnel. This averages out at enlists the other workers, informally and at times about one course per worker, although this can when their work load permits, except on specialonly be taken as a rough guide since training occasions (introduction of a new model, tool, etc.)contact has been very unevenly distributed among when structured courses are organized for a largethe workforce. proportion of the workforce directly connected with the subject (in the repair shop these generally During 1991 and 1992 a total of 17 residential take place once a month and last about twocourses for spares and post-sales personnel were hours).Insales and spares, such courses aregiven inthis firm through Seat's extraordinary organized as the operatives' needs dictate. training plan (corresponding to 5 training modules). In addition there were 2 courses introducing 4.2 Trainees a new model, usingthe centralizedtraining Trainingisintended, by definition,for allthe system. A total of 6 employees attended these agent's employees, including management, forcourses (2 attended 4 courses, another 2 attended the training programme designed by the manu-3 courses and the remaining two attended 2 facturer encompasses every area existing in the courses and one course respectively). agency and every job within each area. Over and above these, 9 peer-training courses were given. These were attended by 9 employees Where training is directed at heads or instructors, (4 from sales and the rest from post-sales).25 the manufacturer calls directly on the persons in the posts concerned who are to attend a course, We have no record of any self-study courses with whereas when the target is a group of workers tutors (known as distance courses) being run (residential or area training), the manufacturerduring this period.

25 This list does not include all the odd training given by the shop supervisor during slack periods of the working day 73 The criteria for selection of personnel to attend placeinworkinghours.The workinghours courses are concerned with improvingworkers' investedintrainingin199127 totalled 600, skills and planning vocational careers for themmaking roughly 18 hours per employee for the where these do not exist or are in the process ofwhole agency, but in reality 31 hours per post- consolidation, with due reference to the needs ofsales worker, since in that year only post-sales the agency and likewise to a proper return on personnel received such training. training investment26. The amount invested in training in 1991 as a The training schemes designed by the manufac- proportion of gross aggregate pay (including turer are the model on which Prades Motor bases overtime) was 0.3%. its monitor-run in-house training, since the objectives and strategy for implementation are defined 5. Evaluation of approach to training by the manufacturer. The firm simply applies this Prades Motor's training performance is adequate model in accordance withitscapacities and as far as the manufacturer's interestsand strategy faced needs. are concerned. However, the firm is now with a major challenge in that the split between the 4.3.1 Participation of the social two brands has resulted in imbalance as regards partners the skills and training of the workers assigned to The firm's labour relations are governed by the eitherbrand;thebasisfinallyadoptedfor provincial agreement for the sector, but as thisselection was the relative technical and mechan- makes no provisioninrespect of continuing ical complexity of the different models, with the training,such trainingisdefined tosuit theresult that the better-qualified operatives were strategic interests of the manufacturer at any time. assigned to Audi-Volkswagen to the detriment of Seat. The workers have no part whatsoever in running the training process, as they do not even have a In view of this, the firm is / considering giving the staff committee. There are three union representa- workers on the Seat side a training boost in the tives who occasionally act as intermediaries; near future in order to restore the balance inthe internal disputes are not common, and where training and skill levels of its human resources. they do arise, they are normally settled on a personal basis between the individual worker and By and large, the firm's personnel appear satisfied officials of the firm. with the training provided by the manufacturer, but there are two objections which should be taken 4.4 Training costs into account: the courses are too general, which Owing to the structural changes which this firm means that course content does notalways suit the has undergone, it is not possible to map out thesocial/occupational profiles of participants (thus historical evolution of spending on training, and reducing return on investment), and the training we shall therefore confine ourselves to thedata fordirected at sales personnelisinsufficient and 1991 and 1992. inappropriate.

Spending ontrainingoverthese two years Both defects may be remedied if the manufacturer amounted to Pta 368,000 (on travel,mainte- takes more stock of the peculiar conditions of each nance, registration fees, andaccommodation in agency as a basis for detecting shortcomingsand some cases), giving an annual averageof Pta specific needs. In this connection the manufac- 184,000 and investment per worker and year of turer's policy of decentralization will help close Pta 5,750. However, since all the employees to go these gaps by facilitating closer monitoring of on training courses outside thefirm were from the each agency. repair shop, we may estimate annual spending on training per worker inthis area at about Pta 5.1 Summary of workforce training 9,642. record

Peer training involves no additional cost since the (Table 48 p. 75) monitors are company employees and the materials are supplied by the manufacturer. However,5.2 Best practice/normal practice there is an indirect cost to be taken into account in Important hereisthe "Extraordinary Training terms of productivity, given that training takes Scheme"thathas been implementedat the

26 Itis worth noting the importance that thisfirm attaches to the factor of age This is not simply because of the younger employees' greater receptiveness, butalso takes into account the advantage to be expected from training persons who have a longer working lifeahead of them and hence are likely to yield a return on the training received for a longer time. 27 This calculation includes hours spent both on residential and peer trainingand on sporadic instruction given at 74 odd hours in the shop. 71 Table 49 The data below are for 62.5% of Prades Motor personnel, the largest group being repair shop workers.

Age Position Training Seniority No. of Courses Hours

34 Tradesman Cl. 3 Primary 20 4 20 52 Receptionist Primary 3 3 15 50 Tradesman Cl. 1 Primary 25 4 29 48 Spares Primary 20 1 10 45 Spares Primary 25 1 12 44 Tradesmen Cl. 1 Primary 30 3 15 31 Secretary Admin 16 50 Tradesman Cl. 3 Primary 2 22 Tradesman Cl. 3 FP 2 3 40 Tradesman Cl. 1 Primary 6 months 35 Tradesman CI.3 Primary 21 41 Secretary Admin. 20 61 Tradesman Cl. 1 Admin. 34

20 Tradesman Cl. 3 Primary Cert. 1 44 22 Skilled mechanic FP 1 2 44 initiative of the manufacturer, for in order to meet systems arisingfrom theintroduction of new the challenges arising from the introduction of new technologies. technologies, a prior theoretical/practical founda- tion is required which will assure proper assimila- This transformation in production systems is bring- tion and utilizationof all subsequent training ing about changes in the recruiting strategies of activities. firms as they find themselves in need of better- qualified operatives. As a result, future manpower Decentralizationisanother positive aspect ofdemand will increasingly target young persons Seat's training policy as it allows the latter to get with a good basic training background that equips closer to the specific problems and needs ofthem to assimilate reasonably easily the knowl- individual agencies while at the same time helping edge that they must have in order to meet the toensure that trainingtakes placeinbetter challenges arising out of new work systems and conditions(sincecourses can be made less methods. condensedandthusbetterabsorbed)and reaches a higher percentage of workers, by In the opinionofthepersonincharge of making it more easily accessible. commercial training at Seat, continuing training must seek to train workers in those work methods This decentralization, and a training structure that and techniquesthatfirmsare compelledto reaches the entirety of agency employees through introduceif they are to maintain and improve diversified training systems, are two key factorstheir competitive position, but following a multi- underpinningwhatis infactasystematic, functional philosophy - in other words, one that permanent training model. will enable them to tackle a much wider range of functions. Among the types of training designed by Seat we should highlight distance training. This is a rather infrequent mode of training, consisting of self- 5.3.1 Continuing training course study through a tutorial system, directed especially content at the heads of each area of the agency (although The content of the courses given by Seat to the in some cases it is used on groups of workers to agent is designed essentially to impart technical impart general instruction about their working and mechanical knowledge of vehicles and their duties) with a view to structuring their careers. component parts.

In addition, within the firm itself personnel have 5.3 Training demands received instruction in sales techniques, manage- Training, particularly in the post-sales area,is ment and administration(toequip themfor increasingly aimed at providing workers with a decision making). solid grounding, as new work systems demand a far more analytical approach. Thus, in repair andDuring the period 1991-1992, as part of the diagnosis manual procedures have been giving extraordinarytrainingscheme,courses were way to mechanical in response to the glowing given on: locating and diagnosing faults; analyz- complexity of both vehicle components and working electrical and electronic circuits and injection 75 systems; bodywork, panelbeating and paintwork; Persons interviewed characteristics of the new Seat "Toledo" model; commercial management; sales techniques for the At the firm Seat "Toledo"; introductory courses in electricity and mechanics and techniques for management, Manager administration and storage of spares and acces-Head technician sories. 1 union representative 2 workers

At the manufacturer

Head of commercial training Head of post-sales training

76 76 PART 3:

General conclusions

Appendix

n GENERAL CONCLUSIONS

1. Presentation of the case studies This is generally the case in technical training, but Like all the rest of the firms in the sector, the four in none of the cases studied was any great Spanish businesses chosen have been experienc- satisfaction shown with commercial training. ing permanent innovation for some years now. This has given rise to much change and reorgani- In such training, a new basic planning objective in zation in order to sustain the ability to compete in addition to adaptation to new technologies has an increasingly demanding market. recently been identified, and that is the attainment of a given level of quality. This is true of all the However, they have one common feature which is cases studied. not shared by a great many firms in the sector, and that is that they are all linked, more or less closely, Given current circumstances in the sector, quality to vehicle manufacturers. As a result of this, their is now an essential factor as the altered nature of approach to the changes affecting the sectorrepair and sales activities increasingly turn the differs from that of independent firms. Three of market into one of "service enterprises". Vehicle the companies studied are agents and hence part repairs as such are being superseded by main- of what is known as the "primary network" linked tenance, for parts are no longer menoed but to the manufacturers. The other' firm studiedis replaced. Sales techniques are becoming more classifiedas adealer and comesintothe aggressive, and the intensity of competition is now secondary network. This setsit apart from the such that firms are permanently on the look-out for other three, in that this firm does not have the same new custom; to attract this they have to offer commitments to training as do the agents. quality.

InSpain,ithas beenthefirmslinkedto The quality tuneiscalled primordially by the manufacturers that have done most to include manufacturers, and it is up to the companies in the continuing trainingintheir general plans and sector to maintain quality standards in post-sales strategies. Most independent businesses have not services. This is why it is increasingly important to yet begun to incorporate continuing training intohave proper continuing training. their business policies, but they are becoming increasingly aware of the need to adapt toA systematic analysis of training needs is only changing circumstances through training. feasible in one of the cases studied, despite the fact that the manufacturers are giving signs of And yet the underlying strategies are not all that moving increasingly towards effective control over different: all seek to improve their employees' skills available skilling potential. In two of the cases by one means or another. The education system studied,oneskilledpersonnormallyattends has proved incapable of providing basic training training courses then passes on what he has of value to workers in this sector, while there is a learned to the rest of the workforce, according to need to devise a system within each firm to requirements. On the whole, training acquisition is preserve what skills there are. not yet as systematic as it should be if there is to be any real coordination between firms' general 2. Planning and conception of training policy and their training policy. In most of the cases studied, training is beginning to ploy a very important role, with a direct bearing Practically no participation by workers or their on the company's general strategy. As the new representatives has been observed in the making technologies take hold, resulting in the constantof decisions about training. Workers' organiza- introduction of innovations in new vehicle models tions are poorly represented. This is because the over recent years, the firms in the sector arebeing sector is composed of numerous small firms, in forced into continuous adaptation at a far faster which there is no place for staff committees or rate than has traditionally been the case. union representatives.

Given the peculiar make-up of the sector, with a Giventhestructureofthesector, we may large number of small firms unconnected with any distinguish between firms linked to manufacturers manufacturer and the bulk of its workforce poorly and independent firms. The former are obliged to qualified and of high average age, adaptation to make training an essential part of their operations, the innovations introduced by the vehicle-makers is otherwise they risk losing their authorized status no easy task. Many firms lack the resources towith the manufacturer. All the cases studied here plan the necessary continuing training.In theare of this type. The independent firms, on the cases studied here, systems have been devised to other hand, normally have less training and in a provide training, but in no case has this been the lesssystematic manner,resortingtoitwhen work of the company itself. It is the manufacturer to immediate circumstances so dictate. which they are linked that plans and organizes training, in which the firms studied participate to a The planning and conception of training in the greater or lesser degree. It is generally accepted cases studied suggests that these firms are going that the manufacturer knows what the firm is likely through a transitional phase. They are moving to need and will provide the apprrpriate training. from a functional model in which training barely existed or was viewed simply as a catalogue ofmanufacturer and its competitors. Most training tasks to be performed, to a systematic concept in is provided by the manufacturer. As a rule, sales which continuous updating is seen as essential to people have a better training background than survival in the sector. At present this need is being repair shop personnel. perceived, but by and large sufficiently effective means of addressing it in practical terms have not In the cases studied here. managerial staff receive yet been introduced. training chiefly from the manufacturer. In firms not connected with any manufacturer, managerial 3. Target trainees staff have verylittletraining, a factthatis In the case studies, the ultimate targets of training producingadverseaffectsnowthatcrucial were the entire workforce, including management decisions need to be made to adapt firms to the and excepting only those whose tasks are not dynamics of permanent change. specific to the sector as such (basically administrative personnel). 4. Content, methods and organization Training in the cases considered here is organized Basic trainingis not widely provided. Recruits from outside the firm, through its link with a vehicle generally come with previous experience, or manufacturer.Itis the latter who design and alternatively they learn the trade on the job.In organize training through their sales, post-sales, principle, new workers entering the sector now organization and like departments. In two cases, are supposed to have acquired the necessarythere is a person within the firm normally the grounding through regulated vocational training. shop supervisor who organizes the relaying of But this is not so in practice, as the substance of the instruction provided by the manufacturer to the this training is neither suitable nor up to date, sorest of the workforce. that employers prefer to take on personnel with accredited experience rather than people direct Some institutions, such as repairers' associations, from the education system. INEM, vehicle distributors' association:, and so on, also run programmes of technical, commercial This mode of recruiting workers could bring and management training.Itis here that the adverse consequences in the near future, asit independent firms come for most of the instruction bars new people from coming into the sector, and that they require, and manufacturer-authorized thusitwill become increasingly difficult to find firms also use such services to acquire training not good tradesmen. Demand for tradesmen willprovided by the parent company. This is particu- outstrip supply; eventually only the firms with thelarly true of management training. In any event, highest purchasing power will be able to afford the supply of trainingis not well suited to the them and firms of slender means will be unable to sector's needs. compete. This situationis already beginning to arise, and one can now hear employers talk about Frequently, continuing training within a concern is "snapping up" good tradesmen. organized as "peer training", a system in which one employee, generally the shop supervisor or The standard worker profilefor the sectoris someone fairly highly qualified, attends courses evolving from the traditional jack-of-all-trades in and subsequently passes on what he has learned theold-style repair shop withskillsacquired to the rest of the workforce. This cuts down the through experience, towards an ideal type that firm's training costs both direct (registration fees, will prevail in the near future: possessing a solid travel, etc.) and indirect (loss of working hours). As groundingthatlendshimsome degreeof noted, this system is followed in two of the case versatility, plus a specialized skill in some specific studies. activity whichiscontinually updated to keep abreast of constant technological change. Training content is determined largely by the manufacturers, both of vehicles and parts, since Technical training is the kind that is most widelythey are the ones with the capacity to research given inthesector,particularlytraining in and develop new technologies and must also electromechanics. On the other hand, the training provide proper instruction for the use and care of of panelbeaters and painters provided by both the products that they introduce to the sector. vehicle manufacturers and public authoritiesis These manufacturers, then, offer training courses, much less comprehensive in spite of the growing which the firms in the sector choose according to importance of these activities for the repair shops. their needs or interests.

In none of the case studies were the personnel in Content is generally fairly specialized and specif- spares and accessories or stores particularly well ic, as a result of which courses are frequently provided for as regards training. offered in serial form, so that to attend a course one must have attended the ones that went before Sales personnel also receive training, on commercial subjects and on the characteristics of theTeaching methodology, particularly in technical 78 variousvehiclemodelssoldbytheparenttraining courses, is undergoing some qualitative 79 change with the introduction of new teaching aids margin that they need to survive. Moreover, the such as video, computer simulation and so on. As mere fact of sending workers on courses involves a rule, courses contain a theoretical part but are loss for them through diminished productivity while largely practical. They take place on premisesthese workers are absent from their posts. Many equipped with space for practice, and studentcompanies do not look on training as a medium or numbers are kept small to try and make learning long-term investment. as personalized as possible. There is a call from within the sector to the public 5. Cost and financing authorities to take a more active part in encourag- In all four case studies, training costs are partially ing training activities, either directly (organizing defrayed by the firm. The manufacturer generally them) or indirectly (through tax incentives, sub- covers the costs of course organization, while the sidies, etc.). subordinate firms are required to pay travel, accommodation and other such expenses, and in Community funds are presently being channelled some cases a course fee (either in part or in full). towards training through institutions cooperating with the INEM and providing what is known as By and large we may say that all the firms studied occupational training, and courses are given on have increased their investment in training over activities belonging to this sector. the last few years; however, the amount is still very small in relation to the firms' overall turnover andNone of the businesses considered here receive workforce size. training of this kind. However, the manufacturers that supply training do normally receive public The smaller firms say that they cannot invest more subsidies for the performance of training activities. intraining as this would eat away the profit

79 so t. APPENDIX

Comments received from the social tionsandeducationdepartments in the partners at the meeting to assess the Autonomous Communities. A good example is report on the sector Barcelona, where there are 1600 students of FP2 level on placement every academic year. ConfecleraciOn Espanola de Talleres de Reparaciones de Automoviles y Afines Finally, we should qualify the statement that the (CETRAA) training available is not sufficiently suited to the As we already pointed out at the last meeting, needs of the sector. The training available is not the survey sample does not reflect the situation sufficient to meet the volume of demand, and for most of the market and personnel in the thisis so because of the lack of stimuli to motor vehicle repair sector. workers and employers to attend courses; but the substance of the courses is suited to the The reportitselfstatesthat 20% of firms, needs of the sector as regards modernization of employing 35% of total manpower for the technology and modes of dealing with the sector, are connected with a manufacturer, and authorities and customers (users). yet only this section has been studied, ignoring 80% of the firms and 65% of the manpower. Teneo S.A. Asst. Director of the Office for Human Resources One of the first conclusions is highly debatable: and Training Management it states that fragmentation is a consequence of the high age of vehicles. On what isthis In my view, the authors have done a good job conclusion based? of description and analysis, and the final results satisfy the chief object of the exercise, which It seems to us far more logical to seek its origins was to present the situation of the sector atthe in the very distribution of Spain's population, its present moment. However, it would be helpful if territorial extension, the low ratio of vehicles to the survey were prefaced by an iniroduction inhabitants and competitiveness in repair prices clarifying its objectives. thebiggertherepair shop,the more While accepting the limits of the European expensive it is. survey, one wouldstill';iceto see global suggestions for strategies aimed at solving the Thereasonforthis isquitesimple:the problems besetting the sector at this time and investment that authorized firms are forced to hinted at in this surv-.1. make by the manufacturers, for thereis no In as much as the survey is concerned with great difference in pay between independent training practices in the sector,it would be and authorized shops. interesting to inquire into the orientation of new skills and the trends in training needs. Note the difference between the case of the In my opinion, a major campaign ought to be Renault dealer, with his costs and the ratio of mounted to bring the results of the survey to the investment in training to turnover, and all the attention of Spanish employers in the sector, in others surveyed. order to make them aware of the present and future situation as regards the competitive thrust There are errors in the replies: it is not possible and demands of the market. This would help that the Valladolid shop pays its workers half raise awareness among employers ofthe what the Castellon shop does; a simple check urgent need for continuing training. However, of prices per hour (not done) would have shown I understand that such a campaign is indeed the true situation. planned for stages subsequent to this survey and beyond. Reference is made in passing to the part played Finally, the results of this analysis prompt me to in training by Employers' Associations (vehicle wonder whether thereis any sense inthe repair firms), the only collective bodies dis- existence of independent repair shops. In this playing any kind of concern for training.If connection, I believethatthe appropriate these initiatives are ignored (which is largely strategy will depend on the results emerging the case to date), a good source of stimulus for from the surveys in other European countries training will be lost. where this kind of firm has been taken into account. Inour view, the part of the surveywhich describes the functioning and structure of motor vehicle manufacturers is superfluous, sinceit Representative of IVECO-PEGASO has little to do with the bulk of the sector 1. General aspects We shouldpointoutthattheexperience demanded of new recruits is being supplied I believe that a measurement of the importance of through training placement of vocational train- this sector ought to be based less on annual 80 ing students, fostered by employers' associa-turnover and more on the number of vehicles (both 81 private cars and industrial vehicles) on the road. 4. Approach to the survey This,in conjunction with annual growth in turnover, may provide a more accurate estimate of the The survey suffers from a limitation in that itcovers dimensions of the sector and its probable futureonly one part ofthesector,albeit thebest growth. equipped part (going on the sample shown) and also that which devotes most resources to training And to these figures we ought logically to add the and information. It is equally true that the planning large number of vehicles entering Spain temporari- and back-up for their training schemescomes ly every year either for the purposes of tourismor more from the manufacturers than from other business. organizations or official bodies.

To gain a clear idea of the importance of the sector As I see it, this makes the survey incomplete inso we might look at the latest vehicle figures, which far as it ignores the broad run of repair shops give a total of some 14 million private cars and which are smaller in size, structure andresources about 3 million industrial vehicles. If we add to than those considered here. 'hese the foreign vehicles visiting every year, we have a total pool of not less than 20 million In our view, this situation should be addressed vehicles requiring the services of this sector, to through two kinds of action: which we may also add the small increment corresponding to sales minus scrapped vehicles. In the first place, this survey should be prefaced by a few additional pages explaining the dimensions 2. Market share and scope of the FORCE project referred to. The same can be said about the European survey as a In this section the authors' own figures are not whole. valid, unless they are obtained directly from all the manufacturers. This is not easy, and the proper In the second place, I feel that it would be useful if procedure here is to use the data available fromthe repair shop areas not mentionedor provided ANFAC, ANIACAN or the DGT. These are th for in the FORCE programme were included in the figures that ought to be quoted and not the continuing training programme. authors' own. 5. Conclusion 3. Ag9nts

I believe that this is an interesting studyon the These Igures ought to be re-examined, as I basis of which it would be useful to identify further believe that they do not give the proper dimen- objectivesandactionswhichalthoughnot sions of this sector. For example, IVECO-PEGASO included are worth taking into consideration. The has 120 agents and 225 authorized repair shops. FORCE programme could be a good opportunity To give an idea of the scale of rectification for this. required, we should point out that apart from IVECO-PEGASO, the number of agents and authorized repair shops of all the other industrial vehicle makers together(Volvo,Sarnia, Mer- cedes, DAF, Renault, etc.) is slightly higher than that of IVECO-PEGASO.

8(1 CEDEFOP European Centre for the Development of Vocational Training

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

Jose Luis Esplugues, Marisa Mendez-Vigo, Christina Prat

Luxembourg: Office for Official Publications of the European Communities

1994 81 pp.21.0 x 29.7 cm

ISBN 92-826-8138-6

Price (excluding VAT) in Luxembourg: ECU 8

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