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DOCUMENT RESUME HE 026 337 ED 355 894 AUTHOR Haugland, Marlene; And Others TITLE The Bottom Line. INSTITUTION Oregon Workforce Quality CPuncil. PUB DATE Jan 93 NOTE 28p. PUB TYPE Evaluative/Feasibility (142) Reports Viewpoints (Opinion/Position Papers, Essays, etc.) (120) EDRS PRICE MF01/PCO2 Plus Postage. DESCRIPTORS Communications; Delivery Systems; Economic Factors; Education Work Relationship; Elementary Secondary Education; Futures (of Society); Higher Education; *Labor Force; *Long Range Planning; Needs Assessment; Private Sector; Public Sector; School Business Relationship; *State Legislation; State Programs *Oregon IDENTIFIERS ABSTRACT This document evaluates the present needs and future shape of the Oregon workforce and recommends strategies for both public and private sectors and for communication. The first section provides a background to the issues of the state's changing economy by describing global and national economic changes and recent state legislative responses, and giving an analysis of the beneficiaries of change. The report goes on to describe the work of the Oregon Workforce Quality Council and its three-part (public, private, and communication) strategy. Three final sections address each of these areas. The goals of the public sector strategy are: Oregon schools with world class academic standards, smooth transition from school to work, training and placement aimed at high-wage jobs, and employers accessing a full range of business services. The vision for the private sector includes high-skill jobs in all areas of the state, high-performance firms, high level investment, cooperation between labor, business, and education, and expansion of the apprenticeship model in new industries and jobs. The communication vision entails taking a long-range view of expectations, engaging citizens in an effort to change the way business is done, and demonstrating that bottom-up solutions work best. An appendix gives bench mark priorities in tabular form, a list of regional workforce committees, and an annotated list of public sector partners. (Contains 16 references.) (JB) *********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. *********************************************************************** HE OWL UUN W01-21,:f ORCE Y CLJUNCIL QUALIT 1 9 9 3 JANUARY a BEST COPY AVAIL OF EDUCATION U.S. DEPARTMENT Research and Improvement THE ()Ike of Educahonat INFORMATION EDUCATIONAL. RESOURCES CENTER (ERIC) as been reproduCed his document has of orgamtatron received from The person orrornating A to improve have been made r MInca changes rePrOduction duahly this docu opinions slated in oltiral Points of view or neCesSarrly represent BOTTOM men! do not policy OERI position of THIS LINE "PERMISSION TO REPRODUCE GRANTED BY MATERIAL HAS BEEN Oregon Educational Coordinating Comm 2 RESOURCES 10 THE EDUCATIONAL INFORMATION CENTER (ERICI." .-111111Elms. OREGON WORKFORCE QUALITY 001-.!NCIL 225 WINTER STREET NE SALEM, OR 97310 (503) 378-3921 Vern Ryles, Jr., Chair Andrea Dobson, Vice-Chair Thomas Bartlett Kevin Concannon Diane Davidson Jon Egge Kurt Engeistad Margaret Hal lock Robert Johnson Wally Mehrens Morton Michelson Dale Parnell Norma Paulus Steve Petersen Jennie Portis Mary Wendy Roberts Larry Sanchez Mary Spilde Beverly Stein Suzan Turley Marilynne Keyser, ex officio Marilyn Johnston Administrator, 1991-92 Camille Preus-Braly Administrator, 1993 CIPr 3 !!1,4,1,1gli "AP TABLE OF CONTENTS THE CALL TO COMPETE The Changing Oregon Economy 1 2 Getting the Competitive Edge 3 The Legislative Response 4 Who Benefits BUILDING THE FOUNDATION Oregon Workforce Quality Council 6 How We Approached Our Work PUBLIC SECTOR STRATEGY al ' . I 9 Vision for 2010 9 .N Legislative Directives i 10 What We Have Accomplished 12 Where We Are Going 4 PRIVATE SECTOR STRATEGY 15 Vision for 2010 15 Legislative Directives 16 What We Have Accomplished 17 Where We Are Going COMMUNICATION STRATEGY C 19 Vision for 2010 19 Legislative Directives 20 What We Have Accomplished 20 Where We Are Going APPENDIX 22 Oregon Benchmark Priorities 23 Regional Workforce Quality Committees 24 Public Sector Partners 26 References Most Oregonians have come face-to-face with the reality of our state's changing economy, and they are not comfortable with what they see. Oregonians still remember the painful experience of the THE CHANGING long and deep recession in the early 1980s. Nearly 100,000 OREGON jobs, many of them in the high wage forest products ECONOMY industry, were lost. The purchasing power of many Oregon families declined below the national as per capita income fell sharply 300,000 new jobs average in 1979. Despite the creation of during the late 1980s, the income gap has not closed. The job growth has been greatest in the trade and service with sectors where wages and benefits have not kept pace the manufacturing sector. REAL PER CAPITA PERSONAL INCOME 1971-1997 $2 . $2 5 d Project, U.S. 5 5 : Oregon THE CALL I: T ; $1 ? COMPETE $1 ) i I I t i i r il 1997 1986 1991 1983 1980 1977 1974 1971 Source: State of Oregon Employment Division The very foundation of Oregon's economy is being shaken by the globalization of economic competition, the increas- ing importance of computer technology and communica- tions and the shift from high-wage blue-collar jobs to professional, technical and managerial jobs. During the decade of the 1990s, 92 percent of all new jobs will be in sales, management, professional, technical and service occupations. 5 4 .J 0 OREGON PERCENT JOB GROWTH than they have today, and an 1990-2000 equal number believe that front-line workers will have more responsibility in 25 24 25 ensuring that quality. After 22 concern for their families, 21 Oregonians said that job cn 20 - .n opportunities and economic - 15 security was their highest Z 15 priority, followed by educa- 12 "-c5 a) tion and skill development. co 10 Forty-five percent think that - a) c..) Oregon is doing a bad or a) 5 a. 5 somewhat bad job in ensuring 3 these values for our citizens. 0 I I 1 1 1 Sales Operators Manage- Precision Service Profes- Clerical Ag/ /Fab./ Forestry menu sional/ & Craft Workers Laborers Technical Admin. GETTING THE Source: State of Oregon Employment Division COMPETITIVE EDGE available jobs, displacing school is connected to what While only 76 percent of To take our place in today's existing workers whose skills work they will do when they Oregon high school students highly competitive global have not been upgraded. graduate, the jobs of the complete their formal marketplace, Oregon must education. future will demand significant create a healthier business There is a growing realization education beyond high climate, encourage economic that these economic shifts school. Most professional, However, focusing on schools diversification, and reinvent will require a dramatic technical and managerial jobs is only part of the equation. the way our schools teach. change in Oregon's workforce Eighty-five percent of the will require a two-year or the way our companies and the way companies workforce in the year 2000 four-year college degree. organize work and the way organize work and use the Even sales jobs will require at and 45 percent of the work- our employment and training least one year of additional skills of front-line workers. force in 2010 are already programs serve our economic training. For those jobs employed today. The existing objectives. Oregon stands on In a recent survey conducted where a high school diploma skills of those workers will the threshold of the 21st not be enough to ensure their by the Oregon Business may be all that is required, it century facing a crucial success in the jobs of the Council, Oregonians con- must be more than a certifi- economic choice. firmed their grasp of the cate of attendance. future. changing economy and its We can choose to respond to implications for them and The mix of who gets the jobs Oregon's efforts to reform our global -conomic competition educatioi d system must be their families. Sixty-five in the year 2000 may change. and technological changes by percent of Oregonians believe New entrants, if they possess accompanied by a revolution adopting a low-skills, low- that to produce higher quality the skills needed, will have a in the way we attract our wages approach that keeps products, workers will need competitive advantage and young people to learning and production costs down by more skills in6he next decade may grab a larger share of the ensure that what they learn in 2 S The Legislature created the moving jobs overseas, THE Oregon Workforce Quality substituting technology for LEGISLATIVE Council to bring government, workers, contracting out or RESPONSE business and labor leaders using part-time, temporary together to: workers. The 1991 Legislature, in Raise business and labor Or, we can choose a strategy passing the Oregon Work- awareness of and commitment that increases productivity force Quality Act, confirmed to restructuring our schools, and assures quality through a the importance of a better improving existing worker educated and prepared highly-skilled, flexible skills and changing business workforce using competitive workforce as a critical management practices to keep technology. This high-skills, economic development Oregon economically competi- high-wages approach puts a strategy. Building on the work tive; premium on quality crafts- of Governor Neil Goldschmidt manship, continuous im- and the Oregon Progress Support restructuring of OREGON WILL provement and worker Board, the Legislature and 1111 the public school system to HAVE THE BEST newly-elected Governor involvement. raise the level of student EDUCATED AND Barbara Roberts embraced PREPARED WORK- achievement; Oregon can ignore globai this vision: Oregon will have FORCE IN THE economic competition at our the best educated and NATION BY THE Promote professional peril. Inaction will mean a prepared workforce in the YEAR 200 AND A technical education and workforce plagued with low nation by the year 2000 and a training programs that lead to WORKFORCE EQUAL workforce equal to any in the skills and under use of high high-wage jobs; . \O ANY IN THE skills that exist; a lack of world by 2010. 2010. WEHLO BY worker confidence in Oregon I Provide cost-effective as a place to work; and a The Legislature identified the coordination and accountabil- continuing necessity for ,eed to use taxpayers' dollars ity of existing employment and workers to convert family wisely in providing education training programs; and hours into wcrk hours to and training for Oregonians, meet family income needs while recognizing that Develop strategies for government can not and and avoid dependency on improving the level of business should not do it alone. government programs. investment in worker training. Although the public sector Oregon has chosen the high- provides most of the formal Recognizing that state-level education for our youth and skills, high-wages strategy. goals and policies must be many job training and implemented in local commu- retraining programs for nities to be successful, the unemployed Oregonians, Legislature called for the most adult workers must creation of regional workforce depend upon their employers quality committees (regional to upgrade their skills. Very *ft committees) throughout the few employers provide such state. Led by tile private opportunities. sector, the regional commit- tees will help ensure that 7 3 strategies to improve each in dynamic and changing workers, and a large pool of region's workforce are work environments. skilled workers from which to customer driven, cost choose. effective, and responsive to The foundation is now in unique regional needs. place to pursue the goal of FOR WORKERS, personal and having a nationally and family self-sufficiency, increased self-esteem, internationally competitive The 1991 Legislature also passed Oregon's Educational workforce in Oregon. Much increased wages and benefits, remains to be done. A major and increased job mobility. Act for the 21st Century, advocating a fundamental effort must be made to restructuring of Oregon's increase the commitment of FOR OREGON, a competitive elementary and secondary employers to upgrade the workforce, increased per schools. Based on the belief skills of those already at capita income, less depen- that all students can learn dency on government, a work. when offered appropriate reputation for quality, and a opportunities, the Legislature greater return on taxpayers' In addition, there is consider- -. called on schools to hold able evidence that the way investments in education and - = - themselves and their students training programs. work is organized is just as it important to worker produc- to world class standards. tivity and satisfaction as the Students will be expected to Unparalleled collaboration is Mr needed among educators, workers' skill levels. Work earn a certificate of initial mastery at the end of 10th must be reorganized to employers, business inves- tors, workers and government grade and a certificate of empower front-line workers leaders to achieve the full advanced mastery in one of and use leading-edge technol- benefits available to us. The ogy to increase productivity six broad occupational most successful workforce categories within the next and keep Oregon businesses two or three years. A variety development strategies will competitive. fall short of our goals if better of work-place learning jobs are unavailable or if experiences will allow students to apply what they betters jobs come at the expense of the quality of life learn. WHO BENEFITS Oregonians have chosen for themselves. Students leaving Oregon's high schools of the future will If the initial spirit of collabora- tion and broad ownership of Your action is needed now. be well prepared for an entry- the vision by both the private Everyone has a role in level job, an apprenticeship and public sectors continues changing Oregon's program, community college and grows, Oregon could bottom line. training, or a college or approach and achieve: university education. Be- cause the average worker may change careers four to FOR BUSINESS, reduced initial and retraining costs, six times, all options must increased productivity provide students with the through more highly trained skills to apply what they learn 8 4 a The Workforce Quality Council's membership is purposeful. The majority of the members are from the private sector because business and labor must be in a position to take the lead in achieving Oregon's vision for a high quality workforce. Top level state OREGON officials who oversee workforce agencies are represented WORKFORCE to ensure they have an ownership of and commitment to QUALITY the strategies the Council develops. COUNCIL The Council is made up of 21 members. The governor appoints 14 members who represent: Business (5) Labor and community-based organizations (5) State Legislature (1) Local elected official (1) Local education (1) / General public (1) It The remaining seven serve because of the positions they hold: Gcvernor or designee ex officio Chancellor BUILDING State System of Higher Education THE Director Department of Human Resources FOUNDATION Commissioner Office of Community College Services Superintendent of Public Instruction Department of Education Director Economic Development Department Commissioner Bureau of Labor and Industries 9 5 The Oregon Workforce To coordinate the delivery HOW WE Quality Act which created the of all education, training, APPROACHED employment, apprenticeship Council charged it with OUR WORK and related programs to achieving these six goals: eliminate needless duplica- To provide comprehensive tion and assure the efficient In developing a work plan for education and training and effective provision of the first 18 months of opera- programs, especially profes- these services; tions, the Council reviewed sional and technical pro- the Oregon Progress Board's To ensure the equitable grams, for students and benchmarks and the legisla- workers that equal the distribution of quality tive directives included in highest international stan- education, training and three related pieces of dards of achievement; employment services state- workforce legislation passed wide, especially to distressed by the 1991 Legislature The and rural areas, and areas To promote continuous Oregon Workforce Quality Act public and private investment serving the economically (HB 3133), The Educational in improved management disadvantaged citizens of this Act for the 21st Century (HB le state; and practices, competitive 3565) and The Workforce production processes and 2000 Act (HB 3474). The To achieve the bench- worker training; Council selected 10 bench- marks established by the marks related to education Oregon Progress Board that To develop the capacity of and training to focus our relate to education and and provide significant - efforts. These benchmarks opportunity for business and training. are listed in the appendix of labor to direct the develop- this report. ment and delivery of state education and training policy, Our workplan unfolded programs and standards; around three strategies: II A public sector strategy A private sector strategy A communication strategy 10 6

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