the credential gap: Basic Education

2. Pyramids and Icebergs of Education -Training Skills Needs and Gaps of Chemical Sector Small, Medium & Micro Enterprises:Sector Evidence and Arguments for South Africa First, there is frighteningly low level of entrepreneurial activity in South Africa, a fact that relates to all SMMEs in general, save the fact that this study focuses on the chemical sector SMMEs. Secondly, there is mass unemployment (pegged at 40%) and also concomitant underemployment in South Africa which has led some to dub South Africa a nation of employment seekers. Thirdly, the level and quality of education in South Africa is said to be one of the worst in the world as depicted by The Economist immediately after the release of the 2016 Matric results this year.

3. the credential gap: Basic Education • Comments • Black, Coloured and Asian percentages decrease until 2011 and then level off. • The rate of decrease is highest for the Black group, followed by the Coloured and Asian groups in that order. • The White group shows a minimal decrease over this period. Figure 1 – Primary education percentages per race group for 2000-2015

4. Secondary education less than grade 12 percentages per race group for 2000-2015 Comments • Black and Coloured percentages increase until 2011 and then level off. • Black percentages increase at a greater rate than Coloured ones. • White and Asian percentages decrease at approximately the same rate until 2011 and then level off. Figure 2 – Secondary education less than grade 12 percentages per race group for 2000-2015

5. Grade 12 percentages per race group for 2000-2015 Comments • For all the races the percentages increase until 2011 and then level off. • The rate of increase is greatest for the Blacks followed by the Coloureds, Asians and Whites (in this order). • Up to 2005 the Black percentage is lower than that of the Coloureds, while after this date it is higher. • When looking at percentages for the primary, secondary<grade12 and grade 12 educational levels the following “throughput effect” is evident. Figure 3 – Grade 12 percentages per race group for 2000-2015

6. Grade 12 percentages per race group for 2000-2015 CONTINUED For the Black and Coloured groups the decrease in primary education percentages result in increases in the secondary<grade12 percentages. For the Asian group the decrease in secondary<grade12 percentages in increases result in increases in grade 12 percentages. For the Black and Coloured groups the increases in the secondary<grade12 percentages result in increases in grade 12 percentages. For the White group the throughput from secondary<grade12 to grade 12 is also evident but at a lower rate than for the 3 other races.

7. Higher Education and Training Comments • The White group has the greatest percentage followed by the Asian, Black and Coloured groups (in that order). • The Black percentage is marginally greater than the Coloured one. • For all the races the percentages increase until 2011 and then level off. • The White percentage increases at lowest rate. • Initially (until 2003) the Black percentage increases most, but after that the Black, Coloured and Asians increase at about the same rate. Figure 4 – Degree/diploma percentages per race group for 2000-2015

8. Comments • For all the races the percentages increase until 2011 and then level off. • The rate of increase is highest for Black group, followed by the Coloured, Asian and White groups in that order. • Up to 2005 the Black percentage is lower than that of the Coloureds, while after this date it is higher. Common trends concerning education percentages by race • Many of the series observed level off after 2011. • For both grade 12 and post graduate the Black percentage is lower than that of the Coloureds and then higher after that. Figure 5 – Post graduate percentages per race group for 2000-2015

9. The Performance Gap Educational Literacy Educational attainment as depicted by school grade was a strong predictor of all categories of educational literacy (writing, calculating change, reading) in the chemical sector. There is a negative correlation between educational literacy difficulty and educational attainment. This association is slightly stronger for all than for petroleum products. See table 1 below.

10. (a) When considering all, writing and reading presented itself as slightly more difficult educational literacies when compared to calculating change (see figure 6). (b) For petroleum products, calculating change was more difficult than writing and reading (see figure 7).

12. Kendall coefficient of correlation between educational attainment and educational literacy Table 1 – Kendall coefficient of correlation between educational attainment and educational literacy

13. EMPLOYMENT TRENDS

14. EMPLOYMENT TRENDS

15. EMPOLYMENT TRENDS

16. EMPLOYMENT TRENDS CONT

17. EMPLOYMENT TRENDS • the semi/un skilled and informal percentages decrease over time; • skilled and highly skilled percentages increase over time; • semi/un skilled is largest single group followed by skilled and highly skilled in this order; and the informal percentage was very small (see figures 9a and 9b). • The skilled percentage increases from 28.7 in 2000 to 33.7 in 2013 (see figure 10). • This is an average increase of 1.24% per year.

18. SKILLS OUTLOOK IN GENERAL IN SOUTH AFRICA - NATIONAL • For all the age groups the percentages decrease until 2011 and then level off. • The greater the age, the greater the percentages. • The 20-34 age group has the greatest decrease rate followed by the 35-49, 50-64 and over 65 groups (in this order). Figure 11 – Primary education percentages per age group for 2000-2015

19. Comments • For all the age groups the percentages increase until 2011 and then level off. • The lower the age the greater the percentages. • The 50-64 age group has the greatest increase rate followed by the over 65, 35-49 and 20-34 age groups (in this order). Figure 12 – Secondary education less than grade 12 percentages per age group for 2000-2015

20. SKILLS OUTLOOK IN GENERAL IN SOUTH AFRICA - NATIONAL Comments • For all the age groups the percentages increase until 2011 and then level off. • The lower the age the greater the percentages. • The 35-49 age group has the greatest increase rate followed by the 50-64, over 65 and 20-34 age groups (in this order). Figure 13 – Grade 12 percentages per age group for 2000-2015

21. For ages less than 65 the percentages increase until 2011 and then decrease slightly. • For the over 65 group the percentages increase until 2011 and then level off. • The rate of increase is the highest for the 50-64 group followed by the 35-49 group. • The rate of increase is lowest for the 20-34 and over 65 groups. • The 35-49 age group has the highest percentages and over 65 the lowest ones. • After the year 2000 the 50-64 age group has a higher percentage than the 20-34 group. • The following “throughput effect” is evident. For grade 12 the 20-34 group has the highest percentages, while for degree/diploma the 35-49 group has the highest percentages. Figure 14 – Degree/diploma percentages per age group for 2000-2015

22. The rate of increase is the highest for the 50-64 group followed by the 35-49 group. • The rate of increase is lowest for the 20-34 and over 65 groups. • The 35-49 age group has the highest percentages followed by the 50-64, 20-34 and over 65 groups in this order. • The following “throughput effect” is evident. For post graduate the 35-49 age group has the highest percentage. This is to a large extent due to this age group also having the highest percentage for degree/diploma. Figure 15 – Post graduate percentages per age group for 2000-2015

23. Sector Education and Training Authorities (SETAs) All programmes show an increase over time. The internship shows the greatest increase over time, while the artisanal learning shows the lowest increase over time. Figure 16 – SETA Artisanal Learning programme 2011-2014

24. The Chemical Industries Education and Training Authority (CHIETA ) all the programmes (education-training attainment versus employment, attainment versus programmes type, and employment versus programmes type) for the period 2010 through 2014 All programmes show a significant increase over time (Figures 148 – 150).

25. Figure 1 7 : Most Important Training needs of the organization technical training needs are the most salient in the chemical sector . SURVEYDATA

26. Figure 18 Highest formal qualifications Survey Data Continued

27. Survey Data continued… Table 1: Core Business and Primary Activity

28. Survey Data continued…

29. Figure 9 : Most important training needs of the organisation Survey Data Continued…

30. Survey Data Continued

31. VOICES FROM THE EDUCATION-TRAINING SKILLS GAP IN THE CHEMICAL INDUSTRIES About the data Interview Schedule Data; Questionnaire Survey Open section, and In-depth Interview Data. directors, training facilitators, and senior managers of chemical sector SMMEs. Key Research questions posed for this study, namely: What is the scope of skills needs in the identified sectors? What skills do these sectors recruit and how much of these skills are needed? Who receives training in these organisations, how much training do they receive, and for what skills? Do these organisations recruit enough skills? If not, how can their skills needs or gaps be addressed?

32. Where Are Skills Acquired? Formal and Informal Training “Skills are also developed through informal learning. Our organisation use Standard Operating Procedures (SOP) to train workers. SOP is a bullet list of sentences telling a worker what to do when manufacturing, packaging dangerous goods. Workers can often be trained without complete formal approaches. Our organisation uses this SOP as training document. It helps to prevent failures in manufacturing, packaging and dispatch of goods”. “…there are number of methods to develop skills, of which formal training is one of them. More importantly, on the ground experience and tutoring have proved to be much more beneficial from the exposure I have had”. “…Some skills are developed from practice”. “In the classrooms but training them on site gives the trainer an opportunity to do practicals. “I do training myself”. “All staff should be taught the theory part followed by the practicals”. “I would say that the best place is on the shop floor. Practical experience coupled with theory proves to yield the best results. Keep in mind, the level of education of the SMME’s do not warrant classroom type exposure to practical situations”.

33. Formal and Informal Training… “Workplace. Able to solve most challenges … At my premises…In our factory. They need to be taught through practice [on the field]”. “Workplace – best place where learners acquire knowledge and skills through practical learning experience. Workplace - employees who are in possession of knowledge and skills but have no formal certificates can acquire formal education through skills programmes and workplace provides such platform. I think workplace is the right place to look for skilled talent.”

34. Formal and Informal Training… “I am not sure where else this form off knowledge can be expressed. However, on a social level between friends in similar sectors seem to be a valuable source of knowledge and practical experience…Interaction with other peers from other organisations”. “Abet programmes – most of the workers in South Africa have no formal education, and these workers can able to acquire vital skills through abet programmes. Our organisation currently does not use abet programmes to acquire skills. We use accredited training providers to provide training for our organisation”

35. Formal and Informal Training… Learning by doing while the most widespread type of learning, is most silent and least documented in education-training and skills development literature. skills development and acquisition through informal are prevalent and fulfil most training needs in the chemical sector SMMEs. RPL programmes should be implemented to formalise them. literature on skills development has it that informal work related learning is possible to escalate in situations of economic uncertainty and workplace reorganisation (1999).

36. Sector Analysis of Skills Needs, Gaps and Constraints: Scope of Skills Needs Living in the Performance Gap - Operational Level – Skills for Doing the Work “… regarding skills needs …it would be management training. Often with SMME’s we find the owner is wearing a number of different caps and hence tries to manage all parts of the organisation simultaneously. If this individual is thought to delegate and manage fewer parts, it would be of huge benefit”. “Skills that our organisation recruits are technical skills [namely]: (a) Storage and Handling of dangerous goods. (b) Loading and unloading of goods. (c) Delivery drivers will then transport these chemicals to customers. (d) Driving forklift – unloading and loading goods. (e) First aid, (f) firefighting, (g) Quality assurance…All highly needed by our organization in order to be productive and remain competitive”.

37. Skills for Doing the Work… “Chemical operators – are trained to handle dangerous goods, unloading and loading of dangerous goods. Training takes one day and certificate is valid for 2 years • Forklift drivers – trained to operate forklift. Training takes 5 days and certificate is valid for 3 years • Delivery drivers – trained to convey dangerous goods by road. Training takes one day and certificates valid for one year. • First Aider – trained to respond to health and safety emergencies. Training takes 1 day and certificates valid for 3 years. • Firefighters – trained to extinguish fire. Training takes 1 day and certificate valid for 2 years”.

38. Skills for Doing the Work… “Wastage is the most important one and safety. They also need more training on productivity and self-management”. “Skills already in place – Driving forklift, delivery drivers, manufacturing of goods, loading and unloading goods; Skills needs to be included in the workplace – Dispatching, Skills gaps” “Supervision, chemical safety, good manufacturing practice”. “Basically it is more on mixing, weighing and self-management”. “I would say at the operator level. They are usually trained in performing small tasks that are repetitive and do not require much qualifications”.

39. Skills for Doing the Work… Focus on operational level skills ‘for doing the work’. Organising Framework for Occupations (OFO) buttresses this: job title not definitive rather the job output is the descriptor and task alignment with the actual output. • most SMME’s cannot afford to recruit the skills they need…, they recruit as the opportunity arises and train that individual’. • ‘not enough is emphasized on recruiting or nurturing talent towards innovation, research and development’. • Formal skills needed to be transferred from traditional (big) companies. But candidates can look at their own environment and find how to utilise their skills. • SMMEs employed people without skills and then trained them’. of skills development’ in the chemical sector SMMEs; • think of skills consolidation.

40. Skills for Doing the Work… Most Binding Constraints in Skills Development in chemical Sector SMMEs “Constraints in skills development within our sector – (a) most of the trainings require mathematics/maths literacy and physical science as a pre-requisite for some courses and a large number of workers do not have formal education; Lack of the right skills particularly in engineering qualification such as manufacturing”. “1. Mathematics 2. Chemical knowledge. Understanding what you do, why you do it, what you want to achieve, and finding better ways of doing it”. “1. Understanding chemical reactions for safety, 2. Learn to manage themselves, not to be followed at all times, 3. Understand productivity [wastage, time, product], and 4. reduction of comeback product”. “Rigid labour legislation, bureaucracy in government, business registration, regulatory laws that makes it difficult for SMMEs to meet requirements”.

41. Most Binding Constraints in Skills Development … • Credential and performance gap: recruit properly qualified personnel (credential gap) who can deliver on their jobs (performance gap).

42. Most Binding Constraints in Skills Development … The Political Economy of skills Development/Planning Is it skills shortage or the economy The affirmative congregants had this to assert: “I think it’s a mixture of both. However, skills have been increasing. It’s the type of skills that are required per sub-sector which is most important”. It’s little of both. South African economy has shifted in the last 30 years or so from mining to services. It therefore need leaders who understand this [trend] and implement.

43. The Political Economy of skills Development/Planning… The ambivalents with some modicum of affirmation: “Yes the economy might not do well but government is working very hard to find long–term solutions to critical skills shortages, I think through CHIETA learnership and skills programmes our country will produce promising results. In the near future our sector will look for talent locally rather than having access to skilled talent abroad. I believe that there is hope”. “It is skills shortage which is a problem. When they are skilled they can be able to suggest and give advice about product development and easy ways to manufacture better products”.

44. The Political Economy of skills Development/Planning… the economy perceived as the problem - not generating enough jobs. This buttresses the findings of this study that skills are acquired both from learning and equally from the icebergs of knowledge (informal learning). And that shortages in skills often reflect poor job conditions in the workplace(World Economic Forum 2014).

45. The Political Economy of skills Development/Planning… Is there such a thing called “skills shortage” in SMMEs within the chemical sectors? “Yes there is skills shortages in SMME’s within the chemical industries. High demand – Chemical operations such as manufacturing, handling of dangerous goods. Quality assurance, chemist and product design. Short supply - Skilled talent in engineering (chemical) such as manufacturing and research”. “Yes. To understand what is there to be achieved when making a product and what causes losses within the company and profits.” “It is the waste of education and knowledge in the workplace, either because of lack of opportunity or lack of practical focus”. “I don’t think there is a skills shortage. I believe the skills are there. It’s more a question of the type and match in industry. There is a huge number of chemical graduates who aren’t employed and look for employment. The sector needs a better mechanism of equipping these skilled individuals with the correct practical experience”. It’s the economy.

46. The Political Economy of skills Development/Planning… The role of Government Three competing camps: critics, “affirmacists” and “ambivalents”. Critiques: “the present government is preoccupied with infighting. We need leaders not politicians to drive the needs of the country”. “the government is not doing enough for small businesses [SMMEs]”. “affirmacists”had this to articulate about the perceived contributory government role: “Yes, government is serious about long-term economic recovery and tackling the skills shortages in our country. The government has a business friendly legislation to attract foreign investors. Through CHIETA training programmes, young people gain vital skills our sector needs as well as life skills necessary to be employable”. “Yes they are doing enough. Formal training conducted by FET’s, accredited training providers registered with SETAs are designed to address skills shortages in our sector”.

47. The role of Government… “ambivalents” but not on the extreme side had this to assert: “The above [SETAs] are doing fine. They need to be streamlined to meet South Africa’s short-term and long term objectives”. “Yes. They do. By taking the unemployed to train them, but a stipend of R1000.00 is very small”. “Yes [SETAs are doing well], but I think their courses are just general”. • perceived grand role for government skills development in the chemical sector industries. • government defined: the polity (state) and its associated institutions such higher education and training (SETAs, FETS etc.).

48. Cures: Relaxing the Constraints in Skills Development & Planning “[In] short-term – improve local talent or skills through abet, learnership and skills programmes. [In] long-term – the government to have legislation that will encourage or urge private sectors to adopt schools particularly secondary schools for skills development and introduce skills programmes in their curriculum”. Short term – to use Standard Operating Procedures as a document to training workers; Long term – (a) to employ skilled/ experienced staff with formal education; (b) To provide training for our current staff in order to address skills gaps”.

49. Cures: Relaxing the Constraints in Skills Development & Planning… “As I have mentioned. Practical experience coupled with theoretical training has worked wonders”. “Chemical industries need to increase their partnerships with FET colleges in order to improve the level of skills development, and these FET colleges will be able to deliver high quality education and training that are relevant to the current economy.” “I think consultants need to go to companies and identify their training needs and group those companies for a particular course”. Invoking political economy issues: “…What is lacking is political will from government to push for this. I think SMMEs should push government to do this”.

50. The Role of Intermediate and Low Skills Bands “All society should be taught … All should be targeted”. “I think for now it’s the low-skills gap that needs attention. Once the foundation is strong to build on that becomes much easier”. “South Africa is a developing country hence CHIETA should focus on low to intermediate skills bands. Developing SMMEs to specialise in one product; give another SMME to develop one product etc. Legislate big companies to buy from SMMEs”.