Department of LabourProgress Report to Portfolio Committee

on Skills Development andHuman Resources Development

22 May 2001

Skills Development Act

Purposes of the Act:

• Increase quality of life of workers• Increase productivity in the workplace• Promote self-employment• Delivery of social services• Improve employability work seekers• Ensure quality of education and training

Purposes of the Act to be achieved by:

(i) NSA(ii) NSF(iii) Levy-grant scheme(iv) Labour Centres(v) SDPU(vi) Learnerships / Skills programmes

National Skills Authority

(a) Advise the Minister on the NSDS(b) Any regulations to be made

National Skills Authority

(a)Advised on NSDS (9 Provincial Consultations) NSDS launch 22/23 February 2001

(b) Regulations- SETA Establishment (20 March 2000)- Funding Year 1 (7 February 2000)- Learnerships (3 April 2001)- Financing (awaited with SLA’s)

National Skills Fund: Income = 2001/2

Provinces SETA’s DTI/DoL DoL H/O Total

R270 m R 450 m R 69 mR 71 m R 860 m

National Skills Fund: ProvincesU

nem

plo

yed

Project

Project

Project

Project

Labour Centre

Province

Recruit +Select

Provincial Skills Dev. Forum

Skills Plan

Fund

Identify

National Skills Fund: SETAs

Govern

ment’

s Jo

b +

Soci

al D

ev.

Str

ate

gy

S.S

.P’s

Key

Str

ate

gic

Pro

ject

SETA+

Govt.Dept.

DoL

NSA

DG/Minister

Approval

National Skills Fund: Skills Support Programme (SSP)

New

in

vest

men

tp

rop

osa

l

DTI

DoL

SSP1. Development of curriculum etc.2. Upgrade training provider (capital)3. Skills training

Ap

pro

val

National Skills Fund: DoL H/O

Applications

Cri

teri

a

DoL

H/O

- Innovation/ Research

- Capacity building of stakeholders

- Marketing/ Promotion

National SD levy/grant

Enterprise

SARS

to

DoL

Year 215% + 50%

80% to SETA SETA

20% to NSF National Skills Fund

Year 2

1% of payroll

National SD levy/grant: LEVY INCOME

April 2000 – March 2001Total Collected by SARS (0,5%) : R1 250 003 750,64

80% to SETA’s (to Feb) : R 799 314 880,10

Total Employers paying : 109 925Total employers on SARS database : 221 600

= 50,9%[Estimated that 10% firms pay 85% levy]

Projected for 2001/2 (1%) = R2 625 000 000,00

National SD levy/grant: GRANT PAYMENTS

1 April 2000 to 31 December 2000• 13 SETA’s made grant payments• 2298 grants paid• R21 067 910,00 paid

1 April 2000 to 31 March 2001• 15 SETA’s made grant payments • 4 227 grants paid• R47 263 000,00 paid

Issues: Public Sector, VAT, PMFA

LABOUR CENTRES: Restructuring- Opportunities for social development initiatives identified- Skills of unemployed developed and assisted with placement into work- Opportunities within formal sector large scale firms (reactive interventions) identified- Threats within formal sector large-scale (reactive interventions) identified- Learners referred and placed into learnerships- Dept of Home Affairs advised on Work Permits- Appropriate skills to work seekers provided by service providers- Efficient and high quality services to work seekers by private employment agencies

Job placements by ProvinceProvince 1999 2000

Western Cape 746 406

KwaZulu-Natal 970 596

North West 1138 483

Eastern Cape 771 174

Free State 111 140

Northern Province 557 459

Mpumalanga 1161 1369

Northern Cape 169 66

Gauteng South 981 548

Gauteng North 647 133

Total 7251 4407

Job recruitment by firms - study

Skilled (%) Semi-Skilled (%) Low-Skilled (%)

Word of Mouth 31.1 44.0 50.9

Family Network 28.8 5.0 3.4

Public

Advertisements

14.7 9.4 3.6

Employment

Bureaus

10.7 8.1 2.9

Current workers 4.3 23.5 31.1

Direct applications 2.1 4.8 4.1

Recalling lay-offs 0.2 0.4 0.5

In-house database 1.5 1.1 0.7

Other 3.6 3.7 2.9

Skills Development Planning Unit (SDPU)

- 25 Sector Skills Plans (draft 1) by Sep 2000- 24 approved in March 2001

Overall shortages• Management Skills• Engineering• Information Technology

Also• Health and Safety• Customer service• Literacy and Numeracy

NSA / SDPU: Negotiations with SETA’s

NSDS5 yr Targets

SETA5 yr Targets

SETA1 yr Targets

Assumptions DoL Services

13 negotiations completed

Learnerships

• Number of learnerships identified by SETAs – 416

• Number of learnerships in development – 70

• Number of learnerships submitted for registration – 56

• Number of learnerships to be implemented by 2002 – 150

• Number of SETAs accredited as ETQA - 13

The ETDP SETA has embarked on training a minimumof 1250 educators, mentors, supervisors etc. by 2002.

HRD Strategy

2SUPPLY SIDEProvision of FurtherAnd HigherEducationAnd Training

3DEMAND SIDEDemand for skillsFrom Employers.

1GENERAL EDUCATION

The underpinning supply ofCompulsory schooling; EarlyChildhood Development andAdult Basic Education and

Training

HRD StrategyLinking the four

Strategic objectives

4National systems of Innovation,

Research and Development

Co-ordinating structureCabinet Cluster

FOSAD

HRD CC

Public ServiceDelivery

SMMEScarceSkills

Learnerships ABET ECD

Research&

Development

Ministers of Education/Labour

Directors-General Education/Labour

Chief Director’s Education/ Labour + HSRC