Contemporary work-related education and training policy represents occupational competence as the outcome of individual performance at work. This paper presents a critique of this neo-liberal assumption, arguing that in many cases competence should be regarded as an attribute of groups, teams and communities. It proposes a theory of collective competence in terms of (1) making collective sense of events in the workplace, (2) developing and using a collective knowledge base and (3) developing a sense of interdependency. It suggests that the language of competence would become a more effective tool for understanding performance at work if the collectivistic sense of the term competence were used in conjunction with the more established individualistic sense.