Third phase of training guarantee scheme agreed

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A Finnish social partners' working group agreed in January 2000 on the implementation of a scheme providing funding for people in employment to undertake vocational training courses on their own initiative. This third phase of the so-called "training guarantee scheme" is a sequel to the first and second phases, which were intended for unemployed and long-term unemployed people

In January 2000, a working group of the central Finnish social partner organisations presented its proposals as to the implementation of a training benefit scheme for persons of working age. The benefit would be granted only for full-time vocational training of up to one and a half year's duration, undertaken at the initiative of employees. This adult training benefit would replace the present vocational training grant and mature students' financial aid, and would be equal to about 80% of unemployment benefit. A condition for receiving the training benefit is that the applicant has been employed by the same employer for at least one year altogether (either continuously or in separate periods) and to have a working history totalling at least five years.

This third phase of the so-called "training guarantee scheme" is part of a programme of adult training-related reform agreed by the social partners during 1995-9 with Prime Minister Paavo Lipponen's first government, as compensation for agreements regarding the unemployment insurance system (FI9704110N). The first phase concerned the training of long-term unemployed people, and the second was intended to support self-motivated learning by unemployed peoples who had been in working life for a longer period.

Three different funding models have been put forward for the third stage of the scheme. The final model has not yet been agreed upon, the proposal being subject to further preparation.

The Confederation of Unions for Academic Professionals in Finland (Akateemisten Toimihenkilöiden Keskusjärjestö, AKAVA) accepts the general outlines of the proposal. However, it demands that certain conditions be met in the further preparation stage, such as flexible allocation of the benefit for courses that are undertaken in addition to normal work, and a broad interpretation of what occupations are entitled to the benefit. The organisation further considers that the benefit should also be granted for the continuation of studies started earlier. The funding model proposing that half of the financing of the scheme should come from unemployment insurance funds is opposed.

Lauri Ihalainen, chair of the Central Organisation of Finnish Trade Unions (Suomen Ammattiliittojen Keskusjärjestö, SAK), sees the reform as an important step in developing the "knowledge-based welfare society". "Modern society needs new and flexible ways of linking work and studies. By this means, it will be possible to meet changing occupational requirements, improve the security of the employees, and increase employment in the long run," he stated. Mr Ihalainen would like to start the preparation of the relevant law immediately.

Heikki Suomalainen, the representative for educational affairs at the Confederation of Finnish Industry and Employers (Teollisuuden ja Työnantajain Keskusliitto, TT), considers it important that the right to adult training should be acquired by virtue of a period in employment, which will ensure that the system will not be too expensive. He welcomes the fact that agreement has finally been reached on the issue, and that the solution strengthens practical strategies for learning.

Due to the consensus now achieved by the social partners, it is most likely that a law providing for the new scheme will be passed in autumn 2000. The continuation of the process is largely dependent on government action.