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E-SETA CONFERENCE INDABA HOTEL 27/11/07 Presented by: Silas M. Zimu (MD City Power) PowerPoint Presentation
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FACING THE REALITIES OF SKILLS SHORTAGES IN THE ELECTRICITY INDUSTRY . E-SETA CONFERENCE INDABA HOTEL 27/11/07 Presented by: Silas M. Zimu (MD City Power) . INDEX. Critical conversations relating to skills Employment vs Available jobs Skills Dialogue

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slide1

FACING THE REALITIES OF SKILLS SHORTAGES IN THE ELECTRICITY INDUSTRY

E-SETA CONFERENCEINDABA HOTEL27/11/07 Presented by: Silas M. Zimu(MD City Power)

index
INDEX
  • Critical conversations relating to skills
  • Employment vs Available jobs
  • Skills Dialogue
  • How do we move from dialogue to actions
  • The bigger picture
  • The South African Electricity Sector Profile
  • The skills Agenda
critical convesations
CRITICAL CONVESATIONS

REQUIRED SKILLS

FORMS OF

ENERGY

THE PACE OF

ECONOMIC

GROWTH

BRAIN

DRAIN

CAPACITY TO

GENERATE,

TRANSMIT &

DISTRUBUTE

ELECTRICITY

UNEMPLOYMENT

ELECTRICITY

INFRASTRUCTURE

POVERTY

slide4

UNEMPLOYMENT vs. AVAILABLE JOBS

Financial Mail: October 26, 2007

the harsh reality
THE HARSH REALITY

Financial Mail: October 26, 2007

escalating technical skills gaps in the sector
ESCALATING TECHNICAL SKILLS GAPS IN THE SECTOR

% of technical skills to cope with

economic growth

Financial Mail: October 26, 2007

the skills dialogue
THE SKILLS DIALOGUE

“The economic dialogue backed by the treasury and

the presidency, big businesses, the SETA’s and labour is

bringing fresh

insight into how to resolve SA’s most intractable

Dilemma: the need for growth path that will mop up

SA’s mass of unskilled labour “

Financial Mail: October 26, 2007

how do we move from dialogue to actions
HOW DO WE MOVE FROM DIALOGUE TO ACTIONS
  • Reinforce on the skills debate giving input on strategies in particular, elevating the energy sector needs
  • Proactively engage Education and Labour ministries including all role players and businesses to recommit to joint learning and skilling initiatives as critical to the future of the country
  • Invest on research to magnify the potential impact of weak or good strategies for the future
the bigger picture

Researchers

Planners

Technical skills

Financial Management

Project Managers

Experts

Experts

Infrastructure

Vendors

Vendors

Vendors

Economic Growth

and

Poverty alleviation

THE BIGGER PICTURE

CRITICAL SUCCESS FACTORS

Urban Development Framework COJ

Energy Efficiency and Alternative Energy

Legal and regulatory Framework

DRIVERS

Global warming

2010 World Cup and Beyond

Generation Capacity

SKILLS, SKILLS, SKILLS

sector employee profile
SECTOR EMPLOYEE PROFILE
  • The total number of employees in the electricity sector is 121 000

(ref: Labour Force Survey March 2006 – Stats - SA )

  • In Gauteng there are 26 000 (21.5%) employees in this sector

PS, This is a total number of people working in the sector and not a reflection of the skill required in the sector

skills agenda
SKILLS AGENDA

Industry commitment to skills development

(Learnerships)

(ASGISA)

Accelerated And Shared Growth Initiative for South Africa

Prioritization of upskilling and assessments of prior learning within the workplace

CAPACITY CREATIION

EMPLOYMENT, ECOMOMIC GROWTH, SUSTAINABILITY

(EPWP)

Expanded

Public

Works

Programme

Effectiveness leverage successful strategies (Benchmark)

skills challenge 1
Skills Challenge (…1)

One of the major challenges that faces South Africa currently is that of a skill shortage.

The South African Government was mandated in 2004 to halve poverty and unemployment by 2014. In order to achieve this Government initiated the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) which targets an economic growth rate for the country of 6%. However one of the major constraints identified was:

AsgiSA states as a binding constraint the “Shortage of suitably skilled labour amplified by the impact of apartheid spatial patterns on the cost of labour.

The most difficult aspects of the legacy of apartheid to unwind arise from its deliberately inferior system of education and irrational patterns of population settlement. In a period of growth it is evident that we lack sufficient skilled professionals, managers and artisans, and that the uneven quality of education remains a contributory factor. In addition, the price of labour of the poor is pushed up by the fact that many live a great distance from their place of work.”

current status
Current Status

Joint Initiative on Priority Skills Acquisition (JIPSA) has set a target to facilitate the training of up to 50 000 artisans by 2010.

State owned enterprises (SOEs) would play a critical role in the implementation of AsgiSA.

Commercialisation of SOEs from 1987/88 onwards coupled with the rationalisation and consolidation, which took place within government post 1994 created unforeseen consequences.

Processes were flawed in that there was no central oversight or strategic co-ordination of training within government.

Government departments (and SOEs) took decisions about the future of their training facilities without exploring whether these could still be utilised within the system.

Rationalisation and integration process inadvertently contributed towards the ‘decapacitation’ of the state.

Outsourcing of training across government departments has further contributed towards this.

national skills development initiatives
National skills development initiatives

In terms of local government and service delivery the focus is on addressing the skills problems through Project Consolidate. The skills interventions include:

The deployment of experienced professionals and managers to improve project development, implementation and maintenance of capabilities.

SALGA’s Integrated Capacity Building Strategy:

Encompassing local government’s large-scale transformation and restructuring which has created a large demand for new skills and skills upgrading.

Identified the lack of “know-how” to support restructuring and the rising service delivery demands and the weak capacity to respond to the challenge.

The fact that historically much of the training in the sector has been of poor quality and relevance and that this still remains the case today.

The need to introduce a sector-wide workplace learning, facilitating, coordinating and managing mechanism.

Eskom and AMEU Technical Training Committee:

Working closely with the National Wires Workgroup

Identifying the issue of duplication of Training facilities.

Competing for the same resources.

Optimise partnerships and the development of training material.

Eskom’s recent decision to centralise training into “one Varsity for all”

edi skills challenge
EDI skills challenge

One of the major challenges that will face RED management is that of effectively staffing the organisation due to:

The current South African major skills shortage.

The high number of current vacancies in the legacy organisations.

Due to the nature of the Industry fragmented policies with regards to training and development.

The limited number of instructors/trainers/coaches within the Industry.

The confusion surrounding SETAS and skills programmes, Learnerships etc.

Many of the professional staff i.e. engineers are of an age 50+.

Staff loss to other industries and overseas

Experienced staff going pension.

slide16

Industry Priorities

  • Building Capacity in the Programme management environment:
    • COW, Project Co-ordinators, Project managers, Programme managers.
  • Development of COW Learnership.
  • Registration of skills programmes, Electrical NQF 1, NQF 2, NQF 3, COW, Pricing.
  • Develop entry level qualifications, e.g. Linesmen.
  • Creation of Centres of Excellence – Research on applied Technology.
  • Material Development – Governance.
  • ASGISA Project:
  • Workplace training:
    • Coaches
    • Mentors
    • Assessors
  • Retaining of qualified staff in Engineering.
  • Training of Contractors.
  • ORHVS e-learning
transitional plan 1
Transitional plan (…1)

EDI Holdings establish a EDI National Training and Development Forum.

This Forum’s membership may comprise of the following role players:

EDI Holdings

Eskom

SALGA

Trade Unions

Energy SETA

Other pertinent SETAs (e.g. FASSETA)

Members of AsgiSA and/or JIPSA

Department of Labour

National Productivity Institute

NEDLAC

Representatives/experts in Higher Education

Human Capital Workgroup representation

Technical Training Committee

transitional plan 2
Transitional plan (…2)

The proposed mandate for this forum may include:

The development of training and development strategies and plans for the Industry.

The engagement of relevant parties such as AsgiSA/JIPSA/SAQA/SETAs/ to promote and advance training and development for the EDI.

To review current legislation and if required make recommendation to the relevant bodies regarding reform.

To Consider the possible establishment of a National EDI Capacity Building Academy that would be capable of developing individuals within the Industry, at all levels, with an acceptable level of quality assurance, SAQA accreditation and in conjunction with recognition higher education institution.

To ensure the alignment of EDI initiatives to other initiatives e.g. JIPSA, SALGA, Eskom etc.

the end
THE END
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