ADDENDUM NO. 1 TO REPUBLICOF PALAU S INTEGRATED STRATEGIC FIVE-YEAR PLAN FOR TITLE I OF THE WORKFORCE INVESTMENT ACT OF 1998

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I. State Workforce Strategic Plan Governor s Vision: This portion of the Integrated Workforce Plan must describe the governor s strategic vision for the state s economy and overarching goals for the state s workforce system. This vision should provide the strategic direction for the state workforce system and guide investments in workforce preparation, skill development, education and training, and major initiatives supporting the governor s vision. The plan also must specifically address the governor s vision for aligning efforts among workforce development partners to achieve accessible, seamless, integrated, and comprehensive service, and how programs and activities described in the plan will support the state s economic development needs and the employment and training needs of all working-age youth and adults in the state. The plan must include a description of the methods used for joint planning, and coordination of the programs and activities included in the plan. (WIA Sections 111(d)(2), 112(a)-(b), W-P Section 8(c).) President Johnson Toribiong won the Palauan people s heart with his campaign slogan of MOVING FORWARD WITH TRUE PALAUAN SPIRIT and THE MEASURE OF NATION S DEVELOPMENT IS NOT HOW MUCH WE HAVE BUT RATHER HOW HAPPY AND CONTENT WE ARE WITH WHAT WE HAVE, and his over all vision for the Republic of Palau s wor kfor ce development system to continue to improve and balance a demand-driven approach with supply-side needs. A demand-driven workforce development system is to prepare the existing and emerging human resources and citizens of Palau for careers and drives the work of the island nation s workforce and economic development agencies, while meeting the needs of business. During the past three and half years, President Toribiong has continued to build on and improve the major planning documents within the 1 Palau 2020 National Master Development Plan (PNMDP), the 1995-1999 Economic Development Plan (EDP), and the 2000 JICA Final Report ( The Study for Promotion of Economic Development in the Republic of Palau), and the Palau National Committee of Population and Children (CoPopChi) Report on Sustainable Human Development, and other reports which include the 2000 Palau Census, Palau Social Security Annual Report, and Actions for Palau s Future Medium-Term Development Strategy of 2009-2014,. In his May 02, 2012, State of the Republic Address, President Toribiong emphasized that he has always considered Article VI of our Constitution. The text of that article bears repeating: The National Government shall take positive action to attain these national objectives and implement these national policies: conservation of a beautiful, healthful, and resourceful natural environment; promotion of the national economy; protection of the safety and security of persons and property; promotion of the health and social welfare of the citizens through the provision of free or subsidized health care; and provision of public education for citizens which shall be free from gr ades one to twelve and compulsory as pr escr ibed by law. 1 http:/ / www.palaugov.net/ stats/ PalauStats/ Publication/ publications.htm 1

The Palau National Master Development Plan, which was adopted by the Olbiil Era Kelulau (National Congr ess), as the Republic s long ter m developmental planning document, is a widefocused roadmap that articulates economic and social development priorities for the Republic, including infrastructure priorities. The development vision of the PNMDP is to substantially enhance the quality of life of Palauan citizens in both the long and short terms. The Economic Development Plan (EDP) was prepared prior to the PNMDP, pursuant to Section 231 of the Compact of Free Association (COFA). The plan was defined in Article VI, Section 461(j) of the Compact as a documented program of annual development that identifies the specific policy and project activities necessary to achieve a specified set of economic goals and objectives during the period of free association. Such a document included an analysis of population trends, manpower requirements, social needs, gross national product estimates, resource utilization, infrastructure needs and expenditures, and the specific private sector projects required to develop the local economy of Palau. This Integrated Republic of Palau Five-Year Workforce Strategic Plan for Years 2012 to 2016 shall continue to use adopted goals and objectives stated in Palau Management Action Plan (MAP) of March 2001, the Cost Reduction Plan of September 2002, and the Public Sector s Investment Program (PSIP) 2003-2007, plans developed using the economic and workforce development goals in the PNMDP and EDP, and incorporating the President s vision to Move Forward With True Palauan Spirit And Continue to Measure Nation s Development By Not How Much We Have But Rather How Happy And Content We Are With What We Have, and further incorporates new goal structures of a Prepared, Competitive, Safe and Secure Workforce, and Strengthened Economic Protections by: 1. Providing effective training and support services to new and incumbent workers and to supply high-quality information on the economy and labor market that is customer-driven, the ultimate customer being employer s; 2. Enhancing the effectiveness and efficiency of the workforce development and regulatory systems that assist workers and employers in meeting the challenges of regional and wor ldwide competition, and focused on economic development; 3. Ensuring that the workforce system is business-led and workplaces are safe, healthful, and fair; provide workers with the wages due them; providing equal opportunity; and pr otecting veter ans' employment and r eemployment r ights; 4. Protecting and strengthening economic security through effective and efficient provision of wor ker s' compensation and secur ing pension and health benefits; 5. The workforce development system is user-friendly, locally planned and controlled, committed to maximizing worker potential; and accountable for results while continuously impr oving the system. 2

Pr esident Tor ibiong s immediate vision for the Republic of Palau s wor kfor ce is as follows: Create, Save, or Place citizens and residents of Palau into 100 local jobs by end of 2014 1. Creation of jobs in the private sector in the fields of construction for infrastructure projects of secondary roads, improvement of water and sewer system funded by foreign grants through talent development activities and hiring of local citizens and residents and to retain at least 35% of the workers. 2. Current and ongoing talent development activities are being funded in part by WIA funds and the Palau Community Action Agency through the apprenticeship training program with the Civic Action Team. 3. Through established agreement with the Ministry of Health and Palau Community College, shall place citizens and residents in workforce talent development activities through classroom training, practicum, and on the job training programs with guaranteed placements of par ticipants after successful completion of r equir ed pr ogr am components to reflect stronger employment demand in health and allied cares, such as laboratory, pharmacy, and radiology technicians, especially in the ever present demands for nurses. Improve Student Achievement and School, College, and Career Readiness in Palau by 25% by End of 2014 Assessment of skill gaps of target groups and/ or individuals served with WIA funds shall be made through the collaborative efforts of workforce partners of the Ministry of Education through the 2career academies program that is school instructional program with the goal of motivating students to participate in courses and work related activities that will lead to graduation with a high school diploma, an industry recognized credential or prepared to enter postsecondary education in a related degree program. It is a career-oriented program with the direct involvement of local employer to provide students with a major step towards the skills employers need. It prepares students academically and vocationally for either entrance to college or career in a selected field or both. Provides graduates to earn certifications based on competency exams for occupations within each academy program. Partnered with community college, local employers, and parents. 1. Involves a close working partnership between the high school and local businesses. 2. Focuses on the concept that all students select a career pathway upon which to focus their studies while in high school. 3. All require parental and guardian permission for participation in the program. 4. Orient students toward graduation and receiving a fully credited diploma. 5. Develops workplace skills used and needed by local employers. 6. Includes a Job Shadowing in the 10th grade, Career Mentoring in the 11th grade and Career Practicum in the 12th grade. 2 http://www.palaumoe.net/phs/ 3

7. All students including special education students that have transitioned to the regular education classroom are enrolled in an integrated curriculum with a minimum of three academic classes and one vocational technical course in a blockscheduling format each semester during high school. Career Practicum is an activity for 12 th graders and students will spend a semester long with a host employer everyday for three hours. This opportunity provides students more in depth learning about work and the career of their interest. Students will strengthen their communication skills and ability to relate well different people of all ages in a variety of work roles and settings. From the established partnership agreement between the Palau WIA Program and the Ministry of Education, youth funding both federal and non-federal, shall be used to pay stipends or hourly wage of the students through work experience and talent development program and pursuant to the activities stated in the career development plan. Continuation of the career/ school-to-career program, the selected senior students from the Palau High School Career Academies enroll in dual program at the Palau Community College. This program is also funded with WIA youth, adult, and dislocated worker funds as well as non-wia funds, depending on the availability of program funds. As stated in this Plan, established partnership with the Palau Community College, the only institution of higher learning/ post-secondary education, all students who are eligible to receive WIA services are registered with the WIA Office and through collaborative efforts, these participants are placed in OJT, classroom training, and work experience activities in the fields of nursing, allied health, accounting, clerical, construction/ carpentry, and small engine related fields with local business partners including government agencies during their internship. Incr ease the Number of Palauans who r eceive skills tr aining by 20% at the end of 2014 Continuing to address the skill gap, through the Regional Workforce Development Council of the Pacific Workforce Investment Workgroup, a committee within the Micronesian Chief Executives Summit, the Center for Micronesian Empowerment recently enrolled 8 Palauan men and women, brought them to Guam for apprenticeship training, with two of them returning to Palau while the remaining participants are still continuing their talent development program. Through this regional partnership, the local human resources within the Micr onesia ar ea will be able to attain tr ansfer able skills within the r egional ar eas. 4

Priority of Service for Veterans and their eligible spouses The State Board, its Committee and Council, the WIA Office and its workforce partners in prioritizing services to veterans from the United States Armed Forces shall provide the following workforce activities funded by WIA youth, adult, and dislocated worker as follows: Core Services 5 Determination on whether the individuals are eligible to receive assistance. Outreach, intake and worker profiling, and orientation to the information and other available services. Initial assessment of skill levels, aptitudes, and supportive service needs. Job search and placement assistance, and where appropriate, career counseling. Provision of employment statistics information relating to local and regional labor market areas. Provision of performance information and program cost information on training services, youth activities, adult education, post-secondary vocational activities, and vocational rehabilitation program activities. Provision of accurate information relating to the availability of supportive services, including child care and transportation, available in the local area, and referral to such services, as appropriate. Follow-up services, including counseling regarding the workplace, for participants in workforce investment activities authorized under the subtitle that are placed in unsubsidized employment for not less than 12 months after the first day of the employment, as appropriate. Intensive Services Comprehensive and specialized assessment of the skill levels and service needs which may include: a. Diagnostic testing and use of other assessment tools b. In-depth interviewing and evaluation to identify employment barriers and appropriate employment goals. Development of an individual employment plan, to identify the employment goals, appropriate achievement objectives, and appropriate combination of services for the participant to achieve the employment goals. Group counseling Individual counseling and career planning Case management for participants seeking training services Short term prevocational services, including development of learning skills, communication skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct, to prepare individuals for unsubsidized employment or training. Training Services Occupational skills training, including training for nontraditional employment On the job training Programs that combine workplace training with related instruction, which may include cooperative education programs

Training programs operated by the private sector Skill upgrading and retraining Entrepreneurial training Job readiness training Adult education and literacy activities provided in combination with services described above Customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training. Providing services to disabled population The State Board, its Committee and Council, the WIA Office and its workforce partners of Special Education Office under the Ministry of Education shall provide the same core, intensive, and training activities funded by WIA youth, adult, and dislocated worker to disabled population. In addition to providing core, intensive, and training services to disabled population, WIA Office and its partners are required to have within their premises available access to wheelchairs and special walkways for the disabled individuals. Specific services provided to eligible individuals with disabilities under the Ministry of Education is consistent with Palau Public Law 3-9 and U.S. Individulas with Disabilities Education Act 2004 (IDEA 04). Palau does not receive funds under the Vocational Rehabilitation Programs but through the collaborative efforts of the partner agencies from the Ministry of Education, Palau Community College, and the Ministry of Health, services are provided to identified disabled populations. 6