3.8 Learning assists organisations in three ways. It raises skill levels and, through the process of learning itself, can help organisations respond to change; the successful firm of the future will know 'how' to learn as much as 'what' to learn. It also increases the knowledge base of the organisation, which is essential to discovery and innovation.

3.9 Some organisations have already turned their workplaces into centres of learning by providing employees with skills beyond those needed for immediate business objectives. Employee development schemes - pioneered by management and trade unions in Ford, Rover, and Sheffield City Council among others and now being taken up elsewhere - have been very successful in encouraging employees to learn. Firms such as Anglian Water, Motorola Ltd and British Aerospace have set up company learning centres - places where employees can study, with access to support, materials and advice. The Fryer report recommends the widespread establishment of company learning centres with strong links to the University for Industry. We propose to encourage this in both the public and private sectors, supported by individual learning accounts. Investors in People UK is launching a review of how best to incorporate approaches like this into the National Standard.

3.10 Learning is a natural issue for partnership in the workplace between employers, employees and their trade unions. Businesses, with their desire for improved competitiveness, and employees, concerned with job security and future prospects, have a shared interest in learning. This joint activity, focusing on practical issues such as time off for learning, employer support for individual learning accounts, and training plans for staff, signals a new and modern role for unions.

3.11 Trade unions have long made a valuable contribution to workplace education. Through this route many employees are encouraged to become interested in learning, leading on, for example, to further study in higher education or at residential colleges. We propose to support innovative projects in workplace education by establishing an Employee Education Development Fund. We will allocate £2 million to this fund next year and will discuss with the Trades Union Congress (TUC) how it can most effectively be used. This could include unions contracting with the University for Industry to deliver training.

3.12 The Learning Age will not just be about the 'top' of organisations spreading the message. It will be as much about encouraging demand for learning from the bottom up. For example, the TUC's Bargaining for Skills initiative, which now involves projects with about 60 TECs, is leading the way in helping trade union representatives negotiate with employers about improving training.