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									                        International Labour Organization

                  ILO Bureau of Employers’ Activities (ACT/EMP)


                                     Project on
                        Youth Employment and Social Dialogue
                                 in Southern India


Project code:                      INT/06/56/NOR


Activity title:                    Youth Employment and Social Dialogue


Country:                           India


Languages:                         English, Tamil


Activity Site:                     Tamil Nadu (Coimbatore District)
                                   Karnataka (various locations)


Starting date:                     May 2007


End date:                          December 2008


Duration

Cooperating organization(s):       Council of Indian Employers
                                   Employers‟ Federation of Southern India
                                   Southern India Mills‟ Association
                                   Karnataka Employers‟ Association
                                   State Governments of Tamil Nadu and Karnataka
                                   Training institutes
                                Project summary


India has experienced strong economic growth for more than a decade. Such growth has
not benefited all parts of the population, however, and considerable attention is now
being given to ensure that growth is sufficiently inclusive. In southern India, urban
centers have grown rapidly creating employment for their residents but also drawing in
migrants from rural areas. Many of the migrants are young people. Young people who
have few skills find it difficult to secure decent employment.

The ILO Bureau of Employers‟ Activities will partner with the Council of Indian
Employers (CIE), Employers‟ Federation of Southern India (EFSI), Southern India Mills‟
Association (SIMA), Karnataka Employers‟ Association (KEA), state-level departments
and other organizations to carry out the following project activities in Tamil Nadu and
Karnataka:
   1. situation assessment of youth employment
   2. social dialogue
   3. skills training
   4. apprenticeships
   5. certification of graduates
   6. entrepreneurship training
   7. equipment donations for ITIs

The project is part of the ILO-Norway Framework Agreement on Social Dialogue (2006-
2007/8). The Programme is designed to address youth unemployment and improve
industrial relations in the countries covered by the Programme. Along with India, the
other countries (as of 2007) are Cambodia, Nepal, Indonesia, Uganda and Vietnam.
Programme activities are conducted through the ILO Bureau of Employers‟ Activities
(ACT/EMP) and the Bureau of Workers‟ Activities (ACTRAV), in partnership with
national workers‟ and employers‟ organizations. Funding is provided by Norway. This
project will be coordinated with a separate ACTRAV project in Tirupur, Tamil Nadu,
which is also part of the ILO/Norway Programme Framework.




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                                                  Table of Contents




Project summary .......................................................................................................... 2
1. Background and justification .................................................................................. 4
a. Economic developments .......................................................................................... 4
b. Youth employment ................................................................................................... 5
c. Training .................................................................................................................... 7
d. Justification for the project ....................................................................................... 8
2. Project strategy and activities ................................................................................. 8
Goal ............................................................................................................................. 8
Objective 1: Situational assessment ............................................................................ 8
Objective 2: Social dialogue ......................................................................................... 9
Objective 3: Skills training .......................................................................................... 10
Objective 4: Apprenticeships ..................................................................................... 11
Objective 5: Certification of graduates ....................................................................... 12
Objective 6: Entrepreneurship training ....................................................................... 12
Objective 7: Equipment donations ............................................................................. 13
3. Institutional framework ........................................................................................ 14
a. Partners ................................................................................................................. 14
b. Project management .............................................................................................. 15
c. Funding .................................................................................................................. 15
d. ILO support: and the Office in Delhi ....................................................................... 16
e. Risks and assumptions .......................................................................................... 16
4. Inception Phase ...................................................................................................... 16
5. Sustainability .......................................................................................................... 17
6. Monitoring, reporting and evaluation .................................................................. 17
7. Knowledge management and sharing .................................................................. 18




                                                               3
1. Background and justification

1.        Background & Context

Fostering adequate growth of productive employment is widely regarded as one of the
most important challenges facing India. There is widespread concern that the acceleration
in GDP growth in the post-reform period has not been accompanied by a commensurate
expansion in employment. Public sector employment has fallen as that sector has
withdrawn from many areas. In Tamil Nadu, for example, employment in the public
sector fell by 4.5% in the period 2002-2004. Domestic liberalization and globalization
have caused some companies to shed labour in order to remain competitive, while new
technology, which is essential for competitiveness, is typically more automated and
therefore not job creating. At the same time, however, a more liberalized economy has
created new opportunities for firms and generated a demand for labour. The annual
growth rate of employment fell to 1.6% in 1993-2000 and prompted a heated debate
about „jobless growth‟. The figure rebounded to 2.5% in 1999-2005 and the debate is
now cooling.


a. Economic developments

In the southern states of Tamil Nadu and Karnataka there is a demand for skilled labour
in manufacturing and service activities. Employers are recruiting workers, notably young
workers, from rural areas to fulfill demands in the cities and larger towns. Urban
migration is taking place rapidly.

Karnataka possesses a world-renown IT/ITES sector based in Bangalore but it is also
home to manufacturing firms in aerospace, automobiles (Toyota has a large facility) and
other sub-sectors. The state government is encouraging companies to locate outside of
Bangalore to achieve a more balanced geographical distribution of business activity and
also to tap rural labour sources. Overall, the state remains highly rural. Some 62.5% of
the total workforce is engaged in the primary sector, notably agriculture, while
manufacturing and other secondary activities account for 11.8% of the workforce (see
table below).

In Tamil Nadu, the capital city, Chennai, has become a major centre for manufacturing,
notably in the automotive industry. Hyundai has a large facility there, while a joint
venture involving Nissan, Renault and Mahindra & Mahindra recently announced the
establishment of a major vehicle production facility.1 In Coimbatore, the state‟s second-
largest city, and nearby Tirupur the textile and garments sectors have been growing
rapidly in recent years after experiencing a slump in the late 1990s. Tirupur, one of
India‟s top two centers for knitwear production, recorded total exports of US$ 2.2 billion
in 2006. According to an industry representative, there is a shortage of 25,000-30,000

1
    The announcement was made in late February, 2007.


                                                   4
workers. Companies recruit regularly from rural areas and this is adding to the already
high level of urbanization. In 2007, the urban population is expected to exceed the rural
population for the first time in the state‟s history.2 Coimbatore is also a major centre of
metal-based engineering and manufacturing, producing quality pumps for export,
machinery for the local textile and knitwear sectors and a range of other products.

The recent good fortunes in the knitwear sector are based in part on a change in labour
recruitment patterns. In the late 1990s, many companies reduced substantially their
permanent staff through voluntary retirement schemes. In their place, many firms hired
young women (aged 17-18) on apprenticeships. The women are provided with hostel
accommodation and food, in addition to their apprentice stipend. At the end of the three
years, many of these women are given Rs. 30,000 (US$ 665) which they use, in addition
to any savings, to return to their village and get married.3 These women are usually from
poor households and appear to be content with their earnings. The system keeps wages
low and labour unrest to a minimum but it also causes high labour turnover. The trade
unions cite incidents of abusive labour practices, including confinement to company
premises and long working hours.4 Unionization has also fallen dramatically under the
new system. Some industry sources fear that the system may not be sustainable as the
firms are left with few skilled workers which may lower their competitiveness in the
longer term.

Output and employment by sector
                        Tamil Nadu                                             Karnataka
Sector            NSDP          Employment                               NSDP        Employment
                    %               %                                      %              %
Primary            14.7             --                                    20.9           62.5
Secondary          26.5             --                                    25.5           11.8
Tertiary           58.8             --                                    53.6           25.7

Notes: NSDP = net state domestic product. „Primary‟ is composed of agriculture, forestry, fishing and
mining; „Secondary‟ is composed of manufacturing, construction and energy; and „Tertiary‟ is services.
Figures for Tamil Nadu: 2004-05; Karnataka: 1999-2000.


b. Youth employment

Since the beginning of planning in India, youth have been recognized as a vital part of
society. In India today, there are an estimated 312 million young people, representing
28.1% of the population. In Tamil Nadu there are 18 million youths and in Karnataka

2
  According to projections contained in the Census of India 2001, the state‟s urban population is expected
to reach 50.3% of the total population.
3
  This general description of labour practices in the garment sector was confirmed by several sources
including representatives from government, employers and trade unions.
4
  The women appear to be paid for working an extra half shift (8 hours + 4 hours) but are paid at the normal
rate not the double rate as required by state labour law. The statements in this paragraph are drawn from
preliminary interviews with workers‟ and employers‟ representatives and government officials and are not
meant as an exhaustive treatment of the issues and practices involved.


                                                     5
Youth population (aged 15-29), 2006
                          Youth as % of total                                    Total
                              population                                    youth population
Tamil Nadu                        27.2                                          18 million
Karnataka                         28.8                                          16 million
All-India                         28.1                                         312 million
Source: Census of India 2001 (Government of India). Figures are official projections.

another 16 million. These two states account for about 11% of India‟s total youth
population. Among the problems they face, particular reference has been made to
unemployment (besides inadequate educational facilities and lack of opportunities for
social development, national service and leadership). The problem of youth
unemployment has been recognized as an aspect of the national unemployment problem
because the resulting frustration can pose a threat to the stability of Indian social and
political structures.

Youth unemployment tends to be higher than the general rate of unemployment. In some
cases, the youth rate is twice as high (see table). In Karnataka, the youth rate is twice or
more than the general rate in both rural and urban areas. This is similar to the all-India
situation. In Tamil Nadu, the picture is mixed. In rural areas, youth unemployment is
higher than general employment (5.1% versus 2.7%), but urban unemployment is higher
among the general workforce (12.1% versus 10.0%). These figures are for the „usual
status‟ of persons in the labour force. In Tamil Nadu, the most recent analysis suggests
that unemployment is high not only among the uneducated and unskilled but also among
degree and diploma holders.5 It is, however, difficult to assess the validity of basic
unemployment figures in either state as many low-income people cannot afford to be
unemployed and are forced to take up whatever work they can.

The employment status of people on a particular day is captured by the „Current daily
status‟. This statistic is important for it indicates that many people are not able to secure
regular employment. Intermittent periods of unemployment contribute to low overall
income, income insecurity and poverty. In Tamil Nadu, between 15.6% and 18.1% of
youths were unemployed based on this measure. These rates are higher than the all-India
levels. The figures for Karnataka are lower relative both to Tamil Nadu and India as a
whole but the urban youth rate (10.5%) is still rather high.




5
   „Report on Mapping of Human Resources and Skills for Tamil Nadu - 2015‟, sponsored by the
Confederation of Indian Industry (Tamil Nadu State Council). According to the report, 43% of engineering
graduates were not able to find suitable paid employment within two years of course completion. The
figure for diploma holders was 47%.


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Youth unemployment (%), 1999-2000
                 Usual status                    Current daily status            Usual status
                    Youth                              youth                  entire labour force

                       rural        urban          Rural         urban          rural        urban
Tamil Nadu              5.1          10.0          18.1           15.6           2.7          12.1
Karnataka               1.6           7.2           5.8           10.5           0.8           3.4
India                   3.7          11.2          11.0           15.4           1.8           5.2

Notes: Latest available data for the two states. Youth are defined as persons aged 15-29. The all-India
unemployment rate for all persons in 2004-05 was 3.1% (latest figure).
Sources: Economic Appraisal 2003-04, 2004-05 (Government of Tamil Nadu); Karnataka Human
Development Report 2005 (Government of Karnataka); Economic Survey 2006-07 (Government of India).

c. Training

Young people need skills to secure employment in India‟s high growth economy and fill
the labour demands that are developing. In Tamil Nadu and Karnataka, skilled workers
are needed in manufacturing and service industries, while agriculture has a much lower
capacity to absorb workers. Skilled labour requires adequate training facilities that are
not only accessible to the young people (in terms of location, tuition fees and living
expenses) but also provides up-to-date training in the skills needed by employers in
different sectors of the economy.

In Tamil Nadu and Karnataka, training is provided by a variety of public and private
institutes, with varying levels of quality and equipment. The state government in Tamil
Nadu operates 56 Industrial Training Institutes (ITIs). There are two ITIs in Coimbatore;
one which is co-educational, trains 1,200 students annually and focuses on industrial
vocations related to metal, electricity and plastics. It is now also branching out into the
hospitality trade. The institute has only one CNC machine but is acquiring two others;
some of its other equipment is outdated and not relevant to the work that takes place
currently in industry. The other institute, across the street, trains about 150 girls annually
in softer disciplines such as computer operations, electronics, desktop publishing and
stenography.

These institutes charge about Rs. 1,000 per year, which is much below the Rs. 15,000
need to train a student. The rest of the funding is provided by the state government which
is constrained by its limited resources. There is no public ITI in Tirupur but one is
located in Trichy and provides training to about 25-30 students in textiles and garment-
making. In addition, there are 605 private ITIs that are certified by the government and
700 private industrial schools in the state. Some of these have much better equipment
(including full or part donations from equipment manufacturers or donors) but they also
charge higher tuition fees of Rs. 8,000 or more per year and thus are not accessible to
children from poor families. The state has recently allocated Rs. 2 crores to textile
training in five districts under a new program.




                                                  7
Karnataka has a diversified structure of public and private training institutes. There are
37 government ITIs and about 223 private ones. The standards at the Karnataka institutes
appear to be higher than those in Tamil Nadu, with more up-to-date equipment and better
training. The Confederation of Indian Industry (CII) has formed a HR Panel that includes
representatives from government, industry and the Karnataka Employers Federation
(KEA). The purpose of the Panel is to discuss and plan human resources and training
needs in the state in line with the needs of industry. The training efforts are being
coordinated with a strategy to diversify industry away from Bangalore. The state-level
Apprentices Act, 1961, allows for apprenticeships of six month to four years, depending
on which of 84 trades is undertaken. A monthly stipend of Rs. 640 in the first year and
rising to Rs 1,020 in the final year is paid by the employer.


d. Justification for the project
Un- and under- employment among young people presents a challenge to the socio-
economic progress, political stability and social evolution of India. Effective efforts in
channeling the energy, skills and knowledge of young people into productive
employment can contribute to the growth of the Indian economy and to the income and
welfare of its people. Adequate employment is also critical for motivating young people
and giving them a sense of pride, self-esteem and accomplishment.

The U.N., ILO and World Bank recognize youth employment as a key challenge for the
global community in the 21st century. Together these three agencies launched the Youth
Employment Network in 2003 to focus attention and action. In addition, the 8th
Millennium Development Goal („Develop a global partnership for development‟)
includes, as one of its objectives, an effort to “develop decent and productive work for
youth”. By collaborating with the ILO under the Framework Agreement, the
Government of Norway has indicated its commitment to improving employment
opportunities for young people. This project for southern India can contribute to global
objectives by testing several practical initiatives undertaken by an employers‟
organization and its partners. If successful, these initiatives can contribute to global best
practice and be replicated in other countries.



2. Project strategy and activities
Goal
The overall goal of the project is to increase the employment prospects of young people
in Tamil Nadu and Karnataka. This goal is supported by the following seven Objectives
and their corresponding Activities.


Objective 1: Situational assessment
The objective is to better understand the employment situation of youth in Tamil Nadu
and Karnataka, so that government, training providers, employers‟ and workers‟


                                             8
organizations and other interested stakeholders can make informed decisions and take
action regarding policies, programmes and incentives.

a. Activities
The project will assess the situation of youth employment through the following
activities:
     agree on the districts for assessment (Coimbatore in Tamil Nadu; one or two
         districts in Karnataka as decided in discussions with government and the HR
         Panel)
     develop an assessment framework (questionnaires, focus group discussions,
         business survey, expert interviews, etc.)
     use the framework to assess:
             o views of young people regarding employment aspirations (including self-
                  employment) and barriers they face
             o mismatch between skills required and skills possessed
             o perspective of training institutes and other training providers
             o perspective and needs of business owners
             o perspective of trade unions
     share the findings of the assessment with interested stakeholders through an
         appropriate meeting, forum or roundtable

b. Outcomes
The expected outcome is a better shared understanding of the factors that contribute to
youth un- and under- employment.

c. Indicators
The results of the activities will be:
     a report is completed which assesses the situation of youth employment in the
        chosen districts.
     the report is shared with appropriate stakeholders


Objective 2: Social dialogue
The objective is to foster social dialogue on youth employment among representatives of
workers, employers and government (including training institutes) to provide more and
better work opportunities for young people in selected districts of Karnataka and Tamil
Nadu.

a. Activities
Social dialogue opportunities will involve:
     two one-day roundtables involving government and workers‟ and employers‟
        representatives, (including the Council of Indian Employers) in Coimbatore
        District on how to increase and improve the quality of youth employment
     two one-day roundtables involving government and workers‟ and employers‟
        representatives, (including the Council of Indian Employers) in one or more



                                            9
        selected district(s) in Karnataka on how to increase and improve the quality of
        youth employment

b. Outcome
The expected outcome is better relations and understanding among workers‟, employers‟
and government representatives on creating more and better employment opportunities
for young people.

c. Indicators
The activities will produce these results:
     two one-day roundtables in Coimbatore are conducted and a list of ideas for
        increasing the quantity and quality of youth employment is agreed by the tripartite
        participants
     two one-day roundtables in Karnataka are conducted and a list of ideas for
        increasing the quantity and quality of youth employment is agreed by the tripartite
        participants


Objective 3: Skills training
The objective is to expand the training available for young people and improve its
relevance so as to increase the employability of young people.

a. Activities
Training activities will focus on training offered at private and public training institutes.
The project will:
     provide support to increase the number of training places at the new textiles
       industrial school being established by the Southern India Mills‟ Association and
       PSG College of Technology (Department of Textile Technology) in Coimbatore
     provide support to increase the training offered at Coimbatore‟s two public ITIs in
       appropriate subjects; this may include the expansion of places in existing courses,
       the offering of short courses and/or the introduction of a Modular Employable
       Skills6 approach
     provide support to increase the number of training places at two public ITIs in
       Karnataka in appropriate subjects; this may include the expansion of places in
       existing courses, the offering of short courses and/or the introduction of a
       Modular Employable Skills approach
     encourage the appointment of representatives from industry to the top decision-
       making committee of each selected ITI7


6
  The ILO has been working with the Government of Tamil Nadu on a skills and livelihoods programme in
Kanniyakamari as part of the UN post-tsunami effort. As well, discussions are underway between the
Government and ILO on initiating MES training at the ITI in that city.
7
  The approach will be similar to that being promoted by the Centre government for the upgrading of ITIs
into Centres of Excellence. Under the programme, FICCI is assisting with the upgrading of 42 ITIs in 13
states. The states include Tamil Nadu (4) and Karnataka (3) but the selected ITIs do not include those in
Coimbatore.


                                                   10
       in the context of the point above, assist industry representatives, ITI
        administrators and government representatives to review the labour market
        relevance of the courses offered and the skills taught at the selected ITIs and to
        design and implement a „Programme for Change‟
       six months after the completion of project activities, the employers of graduates
        are surveyed on the appropriateness of the skills that these young people have
        obtained.

The nature of the training provided will be determined during the Inception Phase as a
result of discussions with industry, government and training institutes and in consultation
with the Skills and Training Policy Specialist at ILO-Delhi.8 Entrepreneurship training
may be added to the curriculum. The prior educational qualifications needed by the
prospective trainees will be determined in consultation with the Government and the
training institutes, and will flow in part from the Situational Assessment undertaken
under Objective 1. An emphasis on the training of school dropouts will mean lower prior
qualifications whereas an effort to expand places in existing programmes will likely
require higher qualifications, such as the completion of 10th Standard.

b. Outcome
The expected outcome is more trained youth who are able to secure rewarding
employment.

c. Indicators
The activities will produce these results:
     50 additional young people are trained at each of Coimbatore‟s two ITIs and at
        the new SIMA/PSG industrial school (total of 150 trainees) for two years
     50 additional young people are trained at each of two ITIs in a selected district in
        Karnataka (total of 100 trainees) for two years.


Objective 4: Apprenticeships
The objective is to support the expansion of apprenticeship places in enterprises for
young women and men so that they gain the experience necessary to develop rewarding
careers in their chosen fields.

a. Activities
Efforts will be made to expand the number of businesses offering apprenticeships in
selected sectors. The project will:
     work through employers‟ organizations to encourage their members to increase
        the number of membership places they offer to young people
     work with government to assist with the expansion of entrepreneurship places



8
 The ILO has been working with the Government of Tamil Nadu on a skills and livelihoods programme in
Kanniyakamari as part of the UN post-tsunami effort. As well, discussions are underway between the
Government and ILO on initiating MES training at the ITI in that city.


                                                11
e. Outcome
The expected outcome is the increased employability of more young people due to the
expansion of apprenticeship places.

f. Indicators
The activities are expected to produce these results:
     creation of 500 additional apprenticeship places in Coimbatore District
     creation of 500 additional apprenticeship places in one or more selected districts
        in Karnataka


Objective 5: Certification of graduates
The objective is to improve the system of certification for skills training given at public
and private ITIs and industrial schools.

a. Activities
The program will carry out the following activities:
     discuss the issue of certification with the state government, with training institutes
       and with employers‟ organizations9
     discuss and decide whether improvements can be made in certification to ensure
       that all graduates of public and private training institutes and industrial schools
       have similar competencies for each type/level of training and whether certification
       is reliable for enterprises wishing to engage graduates of various institutes and
       industrial schools
     carry out any improvements as decided by the parties noted above

b. Outcomes
The expected outcome is greater reliability that graduates possess the skills for which
they have been certified. This will increase employability by making it easier and less
costly for employers to engage young graduates.

c. Indicators
     that employers feel that graduates from training institutes and industrial schools
        do in fact possess the skills for which they are certified.


Objective 6: Entrepreneurship training
The objective is to offer business training (Start, Improve or Expand Your Business) of 2-
4 days to potential or existing micro and small-scale entrepreneurs.

a. Activities
The program will carry to the following activities:

9
  The Specialist Commissioner, Employment and Training, Government of Tamil Nadu, suggested
certification as an area for collaboration. The modalities for such collaboration (between the State
Government and the EOs/project) will be determined during the Inception Phase.


                                                12
      decide on the level and length of the training
      select appropriate training providers
      deliver training of trainers (TOTs) to the selected training providers
      advertise the courses and select the trainees
      deliver the training
      assess the impact in terms of business start-up and performance

b. Outcomes
The expected outcome is an increased number of people who can successfully operate a
micro or small business and thus provide employment for themselves and others.

c. Indicators
     200 potential or existing entrepreneurs complete entrepreneurship training in the
        Coimbatore area of Tamil Nadu
     200 potential or existing entrepreneurs complete entrepreneurship training in one
        or more selected areas of Karnataka
     70% of potential entrepreneurs start businesses following completion of the
        course
     70% of existing entrepreneurs expand employment in their businesses following
        completion of the course.

Trainees will pay a course fee to screen-in those most interested in the training and to
reduce the cost of administration for the project, thus making the activity more
sustainable. Business training may also be added to the curriculum of the ITIs, if
included in the „Programme for Change‟ noted in Objective 3.



Objective 7: Equipment donations
The objective is to foster donations of machinery from employers and machine producers
to upgrade the facilities for training in government-run or other ITIs to ensure that
training is relevant to the contemporary needs of employers in the two states.

It is not certain that the project will be able to encourage equipment donations. However,
some private training institutes in Coimbatore have received part donations (half-price) of
equipment from machinery makers and the industry has donated equipment to the ITI in
Trichy for textiles skills training. Given the severe need for better equipment in some
ITIs, the project will explore the possibilities and make a strong appeal, through
employers‟ organizations and directly to businesses, to achieve this objective.

a. Activities
The program will carry out the following activities:
     a small taskforce comprised of officials from Coimbatore‟s two ITIs and from the
       business community will assess the current equipment used in training at those
       two ITIs to determine their relevance for training young people for today‟s job
       market


                                            13
        the taskforce will draw up a list of machinery that is needed to bring the institutes
         up to contemporary standards
        the taskforce will consult with relevant business associations, including the
         Southern India Mills‟ Association (SIMA), Tirupur Exporters‟ Association
         (TEA), and Employers‟ Federation of Southern India (EFSI) regarding donations
         of machinery noted on the list
        the taskforce will then solicit machinery (full cost or partial cost) from businesses
         as per the list so as to properly equip the ITIs
        a similar process will be undertaken in one or more selected districts in Karnataka
         involving the Karnataka Employers‟ Association (KEA), government, the HR
         Panel, selected public ITIs and other partners

b. Outcomes
The expected outcome is better equipped public ITIs in selected areas in Karnataka and
Tamil Nadu and thus graduates with better skills and increased employability.

c. Indicators
     four major equipment donations (e.g. CNC metal lathe machines) are received for
        Coimbatore‟s main ITI and other donations of equipment or computers for the
        city‟s smaller ITI
     four major equipment donations for ITIs in selected districts in Karnataka and
        other smaller donations of equipment or computers



3. Institutional framework
a. Partners

The Employers‟ Federation of South India (EFSI) was established in Madras in 1920,
subsequent to the founding of the first Indian trade union, also in that city, two years
earlier. The ILO was set up in Geneva in 1919. EFSI has subsequently acquired the
support of employers and leading industrial associations in other states in the southern
region. It currently has 600 company members and 11 major association constituents.10
One of its members is the Southern India Mills‟ Association (SIMA) which has 330
members covering all the major textile mills in southern Indian along with several in the
north. It prides itself as the „single largest employers‟ organizations for the organized
textile sector in the world‟ and has considerable in-house expertise all the way from
designing the textile product to marketing. The Karnataka Employers‟ Association
(KEA) is the main employers‟ organization in Karnataka and includes the membership of
10
  The association members are: All India Skin & Hide Tanners & Merchants Association; Tamilnadu
Spinning Mills Association; Hosur Industries Association; Indian Finished Leather Manufacturers‟ and
Exporters Association; Southern India Mills‟ Association; South Indian Sugar Mills‟ Association; South
India Tanners & Dealers Association; Tamilnadu State Beedi Manufacturers Association; Tirupur
Exporters‟ Association; United Planters‟ Association of Southern India; and, West Coast Employers‟
Federation.


                                                 14
the major enterprises in the state. It works with government and workers‟ organizations
on matters related to industrial relations and other issues.

EFSI and KEA are members of the All India Organization of Employers (AIOE) and the
Employers‟ Federation of India (EFI). In addition, EFSI is the Southern Regional
organization of EFI. AIOE and EFI are two of the three constituents of the Council of
Indian Employers (CIE)11 which is considered by ILO to be the most representative
employers‟ organization in India.

As representative bodies of employers, CIE, ESFI, KEA and SIMA are well positioned to
play a role in creating opportunities for young people in southern India. Its members‟
knowledge of skill requirements and employment opportunities will be valuable in
designing and implementing the project.

b. Project management
A Project Coordinator will be engaged and will be responsible for the execution of the
project activities. Given the nature of project activities, the individual who is recruited
should have considerable expertise and experience with skills training projects. S/he
should also be able to liaise effectively with high-level representatives from government,
business and employers‟ and workers‟ organizations. The location of the Project
Coordinator will be decided in due course but s/he will likely be based in Chennai. S/he
will report to two Project Advisory Committees (PACs), one in each state.              The
composition of each PAC will be determined by the project‟s principal stakeholders and
is likely to include:

Tamil Nadu
    Employers‟ organizations (CIE, EFSI, SIMA, possibly others)
    Ministry of Labour and Employment
    Training institutes
    Workers‟ organizations
    ILO-ACT/EMP(when available)
Karnataka
    Employers‟ organizations (CIE, KEA, possibly others)
    Ministry of Labour and Employment
    Training institutes
    Workers‟ organizations
    ILO-ACT/EMP (when available)


c. Funding
Funding is assured until the end of 2008. Additional funding may be made available
thereafter by the ILO-Government of Norway but this is not certain. If these additional
funds are not provided, the Project Coordinator, the ILO and the employers‟
organizations will work together to seek funding from other sources. If that effort is not

11
     The other constituent of CIE is the Standing Conference of Public Enterprises (SCOPE).


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successful, then full implementation of the project will be difficult. In 2007, the
following activities can be undertaken:
     Objectives 1 (Assessment) and 2 (Social Dialogue): fully implemented
     Objectives 3 (Skills training) and 4 (Apprenticeships): activities can be initiated
     Objective 5 (Certification): should probably not be initiated unless continuation of
       the project is likely after 2007
     Objectives 6 (Entrepreneurship) and 7 (Equipment donations): scaled down level
       of activity

d. ILO support: and the Office in Delhi
Lead responsibility within the ILO for project backstopping and technical support will be
with the Employers‟ Specialist at the ILO Sub-Regional Office (SRO) in New Delhi. The
ILO Bureau for Employers‟ Activities (ACT/EMP) in Geneva will provide technical and
financial support as part of the interregional programme on Social Dialogue and Youth
Employment coordinated by ACT/EMP Geneva.

It is envisioned that the Employers‟ Specialist will be in frequent contact with the Project
Coordinator, will provide advice and technical assistance and will make periodic visits to
southern India to participate in the PAC and review progress.

Parallel to the activities of this project, the ILO‟s Bureau of Workers‟ Activities is
implementing a project in Tirupur, Tamil Nadu that deals with youth employment,
industrial relations and social dialogue under the ILO-Norway Framework Agreement.
The Workers‟ Specialist and the Employers‟ Specialist, both based at ILO-Delhi, will
interact frequently to ensure that the two projects reinforce one another.

The Employers‟ Specialist will also ensure that the Director and Deputy-Director at ILO-
Delhi are kept abreast of project implementation and that the project supports the
objectives of the India Decent Work Country Programme.

Specialists in Enterprise Development, Skills Training and other areas, based at ILO-
Delhi, may also be called upon by the Employers‟ Specialist to provide technical,
expertise, as required for the effective implementation of the project.


e. Risks and assumptions
For successful implementation of the project, it is necessary that:
     employers‟ organizations and training institutes agree to participate
     state governments are pleased to allow this project to be implemented
     funded be secured beyond the end of 2007, as noted in Sec. 3.c. above.


4. Inception Phase




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The first four months of the project will constitute an Inception Phase during which a
Project Coordinator will be selected and s/he will consult with the stakeholders to
determine the details of project activities. This project document should be discussed and
shared with the stakeholders. Key issues for clarification will include the nature of the
training to be provided, the role of each stakeholder in the activities and the budget
allocations for each activity. At the end of this phase, an Inception Report will be
prepared to set out in more detail the project activities. If agreed by the ILO Employers‟
Specialist, the Inception Report may take the form of a revised (expanded, more detailed)
version of this project document.



5. Sustainability

Activities under the objectives of the project should be structured with a view to their
continuation after project funding has terminated. This can be done by integrating the
project activities into the regular programming activities of the partners. A key objective
is to train EOs and governments to assess skill needs for businesses and strengthen the
certification framework. These activities can be continued subsequent to the termination
of project activities. In the longer term, governments will need to provide the required
funding for demand-based skills training and businesses will need to provide an idea of
the skills required by new employees. Encouraging a process of full or partial equipment
machinery donations for ITIs can be sustainable activity if businesses see the results in
terms of new, young workers who are better trained.



6. Monitoring, reporting and evaluation

The project will be monitored by the Employers‟ Specialist based at SRO-Delhi. Along
with monitoring from distance (telephone, email, written correspondence), the
Employers‟ Specialist will make occasional trips to southern India.

Technical Progress Reports will be prepared by the Project Coordinator on an annual and
semi-annual basis at the end of the calendar year and mid-year.

The reports will detail the activities of the project to-date as per the Workplan and will
highlight any difficulties and problems with implementation. The first three reports will
be reviewed first by the Employers‟ Specialist at SRO-Delhi and by ACT/EMP. The
reports will then be submitted to the donor (Government of Norway)

An Evaluation/Review of the project will be take place at the end of the project. Officials
of the ILO and/or Government of Norway and social partners may participate as members
of the evaluation team. The evaluation will assess the extent to which the project




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achieved its objectives by comparing the project‟s achievements against the Indicators
stated in this project document.


7. Knowledge management and sharing

Support for youth employment by employers‟ organizations is a fairly recent activity for
the ILO and its partners. As such, there are currently few examples of successful
projects. This project and the other activities of the larger six-country ILO-Norway
Framework Agreement provide exceptional opportunities for learning and knowledge
sharing. It is therefore important that the Reports and the Evaluation are carried out
properly and thoroughly as they will provide the knowledge base for the knowledge
sharing to take place. If the project proves to be highly successful, these materials may
be used to prepare a more public document that explains the basis for success.

While it is outside the scope of this project document, it is hoped that those involved in
youth employment activities in the six countries will be able to meet and share ideas and
experiences during and after implementation.




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