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Services SETA Presentation to The Portfolio Committee on Labour 23 August 2005

Services SETA Presentation to The Portfolio Committee on Labour 23 August 2005. Introduction by CEO – Ivor Blumenthal. Introduction of team attending etc. Framework of presentation Brief Service SETA organisational overview Brief sector overview

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Services SETA Presentation to The Portfolio Committee on Labour 23 August 2005

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  1. Services SETA Presentation to The Portfolio Committee on Labour 23 August 2005

  2. Introduction by CEO – Ivor Blumenthal • Introduction of team attending etc. • Framework of presentation • Brief Service SETA organisational overview • Brief sector overview • Highs and lows of SSETA activities for 2004/5 year • Report on funds received and disbursed for 2004/5 year • SSETA contribution to National objectives of Growth, Employment and Poverty alleviation • Opportunities and challenges for SSETA in implementing NSDS 2005 – 2010 • Q&A session with portfolio committee

  3. Brief overview of SETA

  4. Cont… Brief overview of SETA • List of standing committees supporting governance and management structures include :- • ETQA & Learnership committee • Research committee • Audit committee • Remuneration committee • Conference committee • Employment Equity committee • Regional advisory boards currently established in 5 provinces – subject to change to 4 SIC code committees in each province mirroring the new 4 chamber structure

  5. Brief overview of Sector • 107,588 employers on database with projected 10% continuing to pay levies after 1st August 2005 expanded threshold introduction • New employer base characterised by 87% SMEs and 13% LMEs • 9 chambers re-structured & consolidated into 4 new chambers and 23 industries • Business Services Chamber • Management Services Chamber • Commercial & Industrial Services Chamber • Client Care Services Chamber • Largely trans-sectoral (13 of 23 industries specifically in 2 chambers) i.e. New Business & Management chambers • 83% of employers reside in 3 largest provinces of Gauteng, Western Cape and Kwa Zulu Natal • New governance structure focusing on regional SIC code input through establishment of regional SIC code committees. • Black provider forum establishment

  6. Highlights of SSETA activities for last financial year • Re-establishment of SSETA for period April 2005 to March 2010 • Exceeding GDS targets by over 300% • Over 600 SDFs trained • 23 learnerships registered with SAQA totaling 54 to date • ISO accreditation of SSETA as an organisation • Piloting of School pre-learnership project • Establishment of the African Marketing Confederation & African hairdressing confederation • Partnership agreement with the Dti • Signing of international partner agreements regarding reciprocity and certification frameworks • Roll out of Amasondi Esibindi disability project to other provinces • Development and registration of the small business qualification for SMEs • Successful implementation of NSF funded Domestic Worker skills development project

  7. Cont… Highlights of SSETA activities for last financial year • Employee assistance programme roll out in response to a holistic view to skills development linked to productivity focus of NSDS 2000 - 2005 • Introduction of video conferencing to reduce flight costs • Exceeding disability targets by 2% on learnership enrolments for 2004/5 period • Support for the formation of an Inter-sectoral Disability Forum and facilitation of a PESTEL workshop for the forum • Accreditation of 1089 providers • 2423 providers assisted through accreditation workshops • 26 Strategic planning (PESTEL) workshops conducted at an industry and provincial level with key informants and captains of industry • Completion of 8 research projects to inform development of new Sector Skills Plan • Participation through the NSA retreat in the development of NSDS 2005 - 2010

  8. Lowlights of SSETA activities for last financial year • learner apathy • SDF fraud • Provider apathy • Employer fraud • Learner fraud • ETQA over commitment • Biased media • Professional & band ETQA conflict with vocational ETQAs

  9. Report on funds received and disbursements for 2004/5 year

  10. SETA contribution to National objectives of Growth, Employment and Poverty alleviation • 800 learners to receive NVC qualification at NQF level 4 • 6 regional offices established in 6 provinces supporting skills development on a national basis • Contact centre learnerships contribute to foreign direct investment of R250 million and 200 sustainable jobs • Partnership with FET sector - piloting of PSLP – 54 schools in 9 provinces - 3000 learners – enter labour market in 2009 • Successful implementation of DWSDP having met all targets • 15 336 new business registered in the sector over 2004/5 year • Graduate intern programme with over 30 learners placed permanently • Venture creation implemented with disabled communities and rural community where learnership grant itself exceeded basic income of individuals. • 11 EAP toolkits developed and distributed in English, Zulu and Tswana & disseminated to 3976 candidates • 55 039 learners completed structured learning – 4856 high level occupations, 24 447 intermediate level occupations and 25 736 at entry level occupational levels

  11. Opportunities facing SSETA in implementing NSDS 2005 - 2010 • A more targeted approach to skills development with focus on scarce and critical skills - Concept of introducing a dedicated service excellence qualification • Collaboration and strategic partnerships at National, provincial and international levels including NEPAD secretariat • Fostering closer links with industry through training of sector specialists through collaboration with industry professional bodies and associations • More focused support and communication to large and medium firms in the sector towards skills development • Development of sector wide empowerment charter and scorecard • Integration of sector BEE, EE and skills development with customised programmes for SDFs • Provision of learning programmes to NGO and non levy paying enterprises • Venture creation and establishment of entrepreneur support base of providers, mentors, etc

  12. Cont… Opportunities facing SSETA in implementing NSDS 2005 - 2010 • Strengthen management and governance structures through CPD • Pilot new learnership enrolment with DoL provincial offices with involvement of public DOE providers • Create over 15 000 permanent sustainable jobs • Link learnerships and placement within broader EPWP framework through partnership agreements linked to demand side strategies • Create provincial quality assurance and Excellence structure to monitor providers with regard to ISOE

  13. Challenges facing SSETA in implementing NSDS 2005 - 2010 • Providing skills development support and initiatives to approximately 100 000 non levy paying employers in sector • Inclusion of EE criteria for large and medium firms in the sector for 10% mandatory grant component • Improved board profile with regards to EE • Learnership funding specifically with drop in income due to tax amendments • Organised labour representation on regional and chamber committees and boards • Mandated representation from organised business • Approval for ETQA to charge for accreditation • Fast tracking certification partners for all industries • Disability target and profile in the sector • Gainful employment amongst disabled learners

  14. Annexure 1. Sector Scarce skills • Management & leadership skills • Team leader & supervisory skills • Project management • Call centre operators • Plant operators (e.g. bulldozers, graders etc) • Marketing skills ( incl. brand & research management ) • Event management skills (2010 world-cup) • Property related skills ( commercial & residential) • Embalming skills • Hairdressing multi skills ( Caucasian & Afro ) • Business related skills ( QMS, admin, finance, IT )

  15. Annexure 2. Generic sector critical skills

  16. Annexure 3. Projected Levy Paying companies by company size and Province

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