The Basics About WIA Funding for Union Training Programs

For decades, building and construction trades unions have worked with their employers to create world-class apprenticeship training programs.

Traditionally, union workers and their employers have funded these programs themselves through joint apprenticeship training committees (JATCs), made up of representatives from unions and industry employers. Each year these local training trust funds spend over $500 million on training in more than 2,000 training centers across North America.

Recently many union-employer partnerships have found ways to stretch their private dollars and expand their training programs by taking advantage of additional resources through the Workforce Investment Act (WIA), the federal initiative that governs the nation’s public workforce investment system.

Created by Congress in 1998 and administered by the U.S. Department of Labor, WIA can support an individual’s career in the building trades at every rung of the career ladder—from preparing an individual for an apprenticeship program, through the apprenticeship process itself, to upgrading skills at the journey level.

This special insert of Connections is designed to help union leaders in the building and construction trades become more familiar with WIA and the funding opportunities WIA offers for training.

Five Facts
You Should Know
About WIA

• If unions and their employers are not accessing these public resources, low road employers may be using them by default.
• Accessing WIA funds can free up existing employer-worker training dollars to support new training programs and projects.
• Under WIA, all training providers, including Joint Apprenticeship and Training Committees (JATCs), can set their own entrance standards for trainees.
• WIA funding can cover all or part of the cost of expanding a training program.
• By connecting with WIA, unions can become stronger voices for workers and help keep local communities on the economic high road.

Learning the Lingo

Here are definitions of key terms to help better understand the Workforce Investment Act.

WIA, WIBs and Funding

Workforce Investment Act (WIA), created by Congress in 1998, replaced the Job Training Partnership Act (JTPA) and provides federal funding for workforce development nationwide.

Workforce Investment Boards (WIBs) oversee the use of WIA funds and have broad leeway in determining local workforce development policies. At least two labor representatives, nominated by state and local labor federations, sit on each board.

WIA’s Funding Formula allocates funds for adult, dislocated worker, and youth services among the local WIBs. Governors retain up to 15% of state WIA allocations of all three funding streams. Governors can use these funds for any allowed statewide activity under WIA. In many states, the Governor’s 15% fund is the only source of WIA money for incumbent worker journey-level training.

Basic Services Under WIA

• Core Services refer to a universally available set of services for job seekers—regardless of their earnings history— that must be provided at all One-Stop Career Centers. Examples of these services include helping prepare resumes and reviewing local job announcements.
• Intensive Services are available to adults and dislocated workers who need additional assistance to gain employment. Examples include personalized skills analysis and career counseling. In some areas, pre-apprenticeship training may be considered an intensive service if it focuses on basic education and English as a Second Language (ESL) as tools to prepare a person for an apprenticeship program.
• Training Services can be made available to unemployed adults and employed adults whose income falls below the self-sufficiency standard. These services are primarily funded through ITAs. This is why realistic self-sufficiency standards are critical to the eligibility of apprentices for training through ITAs.

Ways of Delivering Training Services

Customized Training pays up to 50% of the cost of training workers for employers who agree to employ or continue to employ trainees once training is completed. The use of customized training under WIA varies widely from one workforce area to another.

Individual Training Accounts (ITAs) are publicly-funded training vouchers that individuals use to purchase training from a list of eligible training providers. The self-sufficiency standard set by the WIB determines eligibility for these vouchers for employed individuals.

On the Job Training offers participants the opportunity to be paid while learning the skills they need to do a job. These programs, which have fixed time limits, can use WIA funds to reimburse employers up to 50 percent of a participant's wage rate.

Types of Training WIA Supports

• Pre-Apprenticeship Training seeks to improve basic skills and prepare an individual for an apprenticeship program.
• Apprenticeship Training is earn-while-you-learn training that provides the work skills necessary for an individual to succeed in a craft or trade.
• Journey-Level Upgrade Training provides the training necessary for an individual to expand their skills in their trade and usually results in a special certification of competency in a trade or craft.

Other Key Terms

Eligible Training Provider is an organization that has been certified by a local or state WIB to provide publicly funded training under WIA.

One Stop Career Centers are local publicly-funded facilities that provide individuals with employment-related services including helping establish eligibility for training.

Self-Sufficiency Standard refers to the maximum that a working adult can earn and still be eligible for publicly funded training services. WIBs can set their own standards. If they fail to do so, the law defaults to the often inadequate Lower Living Standard Income Level determined by the federal government.

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