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FOODBEV SETA Food and Beverages Manufacturing

FOODBEV SETA. FOODBEV SETA Food and Beverages Manufacturing. Parliamentary Labour Portfolio Committee 3 rd November 2009 Ravin Deonarain CEO. Introduction and Appreciation. Thanks and Appreciation: Hon Minister of Labour Hon Chairperson of Labour Portfolio Committee

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FOODBEV SETA Food and Beverages Manufacturing

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  1. FOODBEV SETA FOODBEV SETAFood and Beverages Manufacturing Parliamentary Labour Portfolio Committee 3rd November 2009 Ravin Deonarain CEO

  2. Company Name Introduction and Appreciation • Thanks and Appreciation: • Hon Minister of Labour • Hon Chairperson of Labour Portfolio Committee • Hon Committee Members • Representatives of FoodBev Seta • Council Member: Mr Hennie Korff • Council Member Mr Boaz Mashele • Corporate Services Manager: Ms Liezl Gerryts • CFO: Mr Raj Rajcoomar • Skills Development Projects Manager: Mr Khotso N Potele • CEO: Mr Ravin Deonarain

  3. Ravin Deonarain Presentation Outline • FoodBev Sector • Highlights and Challenges • Funds Management • NSDS Performance • Customer Satisfaction • Portfolio Committee Specific Concerns • Consultants • Training Layoff Provision • Employment Equity

  4. FoodBev SectorEconomic Characteristics • Diverse sector • Price sensitive products • High production volumes – costs driven • Capital intensive and technology driven • Intense brand competitiveness • Dominance - large companies and multinationals • Large number small food manufacturers (85%) • Mergers and acquisitions (brands)

  5. Company Name FoodBev Sector • Companies and Products: SA Breweries, Kellogg's, Nestle, Frito-Lay Simba, ABI, Coke Cola, Tiger Brands, Unilever Foods, Clover, Oceana Fishing, Enterprize Meats, Nabisco, McCain's Foods, Beacon, Cadbury’s Bokomo • Contribution to GDP : R83.2 b for Food R30 b for Beverages • Total employment : +-176 000 (known)

  6. Ravin Deonarain Labour Market • 1994: Macro Economic Stabilisation and Trade Liberalisation • Growth in demand for skilled labour • Job shedding of unskilled and semi skilled • Production - 17,16 % of manufacturing sector output • Employment - 15,63% of manufacturing sector • Wages - 13,74% of manufacturing sector • Employment – 2 % of total economy (DTI, 2007)

  7. Ravin Deonarain Funds Management Trend (Rm)

  8. Ravin Deonarain 2.1 80% OF LARGE FIRMS’ AND 60% OF MEDIUM FIRMS’ EMPLOYMENT EQUITY TARGETS SUPPORTED BY SKILLS DEVELOPMENT. IMPACT ON OVERALL EQUITY PROFILE OF FIRMS AND SECTORS MEASURED

  9. 2.2 SKILLS DEVELOPMENT IN AT LEAST 40% OF SMALL LEVY-PAYING FIRMS SUPPORTED AND IMPACT MEASURED Ravin Deonarain

  10. Ravin Deonarain 2.5 ANNUALLY INCREASING NUMBER OF SMALL BEE FIRMS AND BEE CO-OPERATIVES SUPPORTED BY SKILLS DEVELOPMENT. SURVEY PROGRESS AND MEASURE IMPACT.

  11. Ravin Deonarain 2.7 700 000 workers have achieved ABET Level 4

  12. Ravin Deonarain 2.8. 125 000 WORKERS ASSISTED TO ENTER AND AT LEAST 50% SUCCESSFULLY COMPLETE APPROVED PROGRAMMES

  13. Ravin Deonarain 3.2. 2000 non-levy paying enterprises, NGOs, CBOs, and community-based co-operatives supported by skills development. Impact of support on sustainability measured with a targeted 75% success rate.

  14. Ravin Deonarain 4.1. 125 000 unemployed people assisted to enter and 50% successfully complete programmes

  15. Ravin Deonarain 4.2. 100% of learners in critical skills programmes covered by sector agreements and Nat Priorities from local FET and HET institutions assisted to gain work experience. 70% find placement in employment or self-employment.

  16. Ravin Deonarain 4.3. 10,000 young people trained and mentored to form sustainable new ventures and at least 70% of new ventures in operation

  17. Ravin Deonarain 5.1. By March 2010 each SETA recognises and supports at least five Institutes of Sectoral or Occupational Excellence (ISOE) within public and private institutions and through Public Private Partnerships (PPPs)

  18. Ravin Deonarain 5.2. Each province has at least two provider institutions accredited to manage the delivery of a new venture creation qualification. 70% of new ventures still operating after 12 months

  19. Ravin Deonarain 5.3. Measurable improvements in the quality of the services delivered by skills development institutions

  20. Beneficiaries Employment Equity Company Name

  21. NSDS 2 2005-2009 • Total Learning Programmes: 13 890 • Learnerships • Completion Rate 30% (average) • Drop out 12% • In Progress 58% • Issues • L/ship completion rate slow – 15 months • Withhold/recover grant funds • Investigation report commissioned

  22. NSDS 2 2005-2009 • Skills Programmes • Completion rate – 83% • Drop out rate - 5% • Internships/Work Experience • Employment Rate - 100 % • Apprentices in training - 850

  23. FoodBev Seta SLA Performance • Rating Includes: • NSDS/SLA target performance for sector • Financial Performance

  24. Customer Survey Results Ravin Deonarain

  25. FoodBev StaffEmployment Equity Company Name

  26. Consultants • Very specialized skills • Non recurring and infrequent • Specific tasks or projects • Costs and resources

  27. Training Layoff • Communication in sector - all media • Briefing • Organised Labour Forum • Employer Forum • Council Decision • 300 skills programmes – R 1.8 m • 30 new venture creation – R 0.75 m

  28. Thank you Questions

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