What can Jim do about this nonsense?
I wouldn't even say it's nonsense. If the proposal is that much of an issue, don't sign the document. Get less pay rise. Simple choice
The option is basically take the courses and get a yearly raise or don't take the courses and get 40% of the yearly raise. Up to Jim really, if he wants to invest in himself potentially learn something and get a yearly raise then this would be beneficial in most peoples point of views anyway.
is this legal
Since the company is basically providing an offer: Get this skillset/knowledge and receive this offer of extra income. Yes.
It is only illegal if not doing this training affects your position at your company. If this is the case then they must pay for your hours that you spend doing the training but they can still make you pay for the training. However since this is optional, it is not.
For example if you apply for a job and you have a skill they require, that skill is often part of the reason the salary is what it is. If you have a certain level in this skill then your salary is increased.
What the company is offering is get the training and get paid for the training you undertook.
They basically want their staff to be constantly improving on their own, and you'll constantly get a yearly raise.