Portfolio Committee on Labour

20 October 2005Presented by: Mr. Joel Dikgole (CEO –

W&RSETA)

OVERVIEW OF PRESENTATION

W&R SETA PROFILEW&R SECTOR PROFILE NSDS 2001-2005 ACHIEVEMENTSOTHER ACHIEVEMENTSAFS & AUDIT RESULTSSTRATEGIC PROJECTSKEY CHALLENGES 2005-2006

W&RSETA PROFILE

BOARD MEMBERSMANAGEMENT STRUCTUREDEMOGRAPHICSREGIONS – KZN & WC

EMPLOYER ORGANIZATIONS

6 BOARD MEMBERS FROM:RAFTASOINSASAISAHOST

EMPLOYEE ORGANIZATIONS

6 BOARD MEMBERS FROM:SACCAWUSACTWUDICHAWUHOTELLICCAFEDCRAWECCAWUSA

GOVERNANCE STRUCTURE

Main Board

Executive Committee

Finance Audit Remuneration Projects Core Functions JIP ETQA

Labour

COO

Smme L/Ships Skills IiP

CFO

FinanceProjects IT SCMHRComms

CEO

PA

ETQA

PA

PA

BoardSecretariat

W&RSETA MGMT STRUCTURE

HEAD OFFICE

Regions

Organogram and Demographics

0

5

10

15

20

25

30

35

40

45

African White Indian Coloured Female Male

STAFF COMPLEMENT

African =43 Females = 32 Males = 11

Whites = 7 Females = 6 Males = 1

Coloureds = 6 Females = 4 Males = 2

Indian = 3 Females =1 Males = 2

W&R SECTOR PROFILE

STATISTICS

COMPANIES REGISTERED COMPANIES PARTICIPATING

CRITICAL SKILLS

W&R SECTOR PROFILE

SEPTEMBER 2004# EMPLOYED -2.5mRETAIL TRADE SALES -R352bnWHOLESALE TRADE -R485bnTOTAL SALES -R837bn

Source: Stats in brief 2005-Statistic SA

Number of Companies

Levy Paying CompaniesIncluding-R500 000 Threshold

Small <50 employees -24kMedium 50-150 employees -664Large 150 + employees -234

W&R SECTOR PROFILE

CRITICAL & SCARCE SKILLSSUPPLY CHAIN MANAGERSMANAGERSRETAIL IT EXPERTSRETAIL TECHNICAL SKILLSFINANCESource: SSP

Scarce skillsStore Managers

ManagementStore ManagementFinancial MarketerMarketing ManagementCall Center OperatorLife Skills-HIV/CulturallyDiversity/Leadership

Supply Chain Managers

Supply Chain ManagementBuyer and PlannerImporter & Exporter(Merchandise Planner)Warehouse Management Distributor-DC Warehouse DistributorLogisticsInventory

Retail Information Technology Experts

Retail ITManagementProject ManagementBusiness AnalystProgrammers Analysts Inventory Control Software DevelopersW&R Com. Literacy

Retail Technical Skills

Technical SkillsButchery/BlockmanBakery/ConfectionerWindow DresserRetail Beauty SalesFood Preparation/SalesStore Designer•CAD DesignerVisual MerchandisersRepairs-Jewellery,watch,•furniture,small appliances

Finance FinanceAccountingInternal AuditCredit Controller Credit Clerks

REGISTERED VS PARTICIPATING ORGANISATIONS

5 year TRENDREGISTERED ORGS – 17k TO 46k

LEVYPAYING ORGS - 13K TO 24K

WORKPLACE SKILLS PLANS – 564 TO 9,5k

IMPLEMENTATION REPORTS - 287 TO 6k

Registered Organisations vs Participating in Sector

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Year 2000/2001 Year 2001/2002 Year 2002/2003 Year 2003/2004 Year 2004/2005

Number ofOrganisations

Number of payingOrganisations

Number oforganisations receivinggrants

Number ofOrganisationsparticipating

% Increase of registered organisations in the sector

Year 2000/2001

17 396 Org.

Year 2001/200227.98%

22 263 Org.

Year 2002/200326.23%

28 103 Org.

Year 2003/200423.94%

34 830 Org.

Year 2004/200532.89%

46 285 Org.

Participating Organisations

0100020003000400050006000700080009000

10000

Year 2000 -2001

Year 2001 -2002

Year 2002 -2003

Year 2003 -2004

Year 2004 -2005

Workplace Skills Plan

Workplace Implementation Grants

% Increase in participating companies

Year 2001/2002 Year 2002/2003 Year 2003/2004 Year 2004/2005

187%563 to 1184

126%1184 to 3478

99%3478 to 8421

31.8%8421 to 9545

Registered Organisations Per Region

41%

6%17%

7%

0%4%

2%4%

19%

Gauteng

Mpumalanga

Western Cape

Eastern Cape

Northern Cape

Free State

Limpopo

North West

Kwa Zulu NatalNo. of registered companiesGauteng 16105Mpumalanga 1318Western Cape 6781Eastern Cape 1512Northern Cape 356Free State 799Limpopo 466North West 836KZN 7681

Year 5

Participating Organisations Per Region

41%

3%19%

7%

2%4%

1%4%

19%

Gauteng

Mpumalanga

Western Cape

Eastern Cape

Northern Cape

Free State

Limpopo

North West

KwaZulu Natal

Gauteng 738 1432 2856 3927Mpumalanga 41 177 303 298Western Cape 344 818 1183 1849Eastern Cape 70 151 395 628Northern Cape 11 32 120 188Free State 36 106 283 398Limpopo 23 95 156 90North West 14 105 368 365KZN 337 729 1572 1802Total 1614 3646 7238 9545

Levy vs Grants paid Small (1-49) Category

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Levies Received

Grants Paid

Category 2000/2001 2001/2002 2002/2003 2003/2004

2004/2005

Levies Received

32 142 652 97 644 781 126 088 529 145154 237

167 222 871

Grants Paid 12 454 081 41 586 174 53 910 577 65 935 220

60 539 221

Levy vs Grants paid Medium (50-149) Category

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Levies Received

Grants Paid

Category 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Levies Received

2 987 414 9 529 381 13 644 928 12 962 489 15 675 515

Grants Paid 610 664 2 824 868 4 082 515 5 425 280 4 981 718

Levy vs Grants paid Large (150+) Category

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Levies Received

Grants Paid

Category 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Levies Received

14 200 193 41 973 306 46 311 798 65 761 009 64 104 250

Grants Paid 12 391 725 36 899 016 40 644 316 48 225 329 36 463 757

Levy Income vs Grants paid Total Per Category

0

100000

200000

300000

400000

500000

600000

Small Medium Large

Levy Rec.

Grants Paid

Category Small Medium Large

Levies Received 568 m 52m 221m

Grants Paid 234m 18m 175m

% Grants Paid 41% 34% 79%

ANNUAL FINANCIAL STATEMENTS

OVERVIEW OF FINANCESCASH & CASH EQUIVALENTSSURPLUS FUNDSSTRATEGIC PROJECTSREPORT OF THE AUDITOR

GENERALMATTER OF EMPHASIS

REPORT OF AUDITOR GENERAL

AUDIT OPINION:UNQUALIFIED

EMPHASIS OF MATTER:RESUBMISSION OF FINANCIAL

STATEMENTS

Finances-General Overview

Actual 2001-2005

R’000

Levy Income 971m

Invest Income 75m

Employer grants (46% of levy inc.)Projects Expenses

446m231m

Administration costs 110m

Available for Strategic Projects

265m

W&RSETA – 5 year overviewInformation based on audited financial statements

2001 2002 2003 2004 2005

PER YEAR R’000 R’000 R’000 R’000 R’000

Levy income

71 366 163 247 208 783 241 970 285 757

Invest Income

6 579 20 630 26 453 21 499

MandatoryGrants

25 249 79 834 83 078 109 861 147 763

Project expenses

- 15 867 24 848 32 813 157 029

Administration expenses

16 406 15 209 21 718 25 071 31 817

Surplus/(deficit)

26 359 59 601 101 275 103 144 (24 901)

Surplus funds - Overview

2001 2002 2003 2004 2005

CUMULATIVE R’000 R’000 R’000 R’000 R’000

Surplus funds available (A)

26 359 101 827 227 950 363 907 496 035

Surplus funds allocated (B)

0 91 266 93 415 223 070 472 357

(B) as % of (A)

0 90% 41% 61% 95%

Surplus funds spent (C)

0 15 867 40 715 73 528 230 557

(C) as % of (B)

0 17% 44% 33% 49%

2004/05 Information

2004/05

Annual Financial Statements R’000

SDL Levy Income – 80% R285 757

Investment income R21 499

Total revenue (including 80% levy income, NSF income, investment income etc.)

R356 372

Total expenses (grant provision and project expenses etc.)

R349 456

Admin expense (9%) 31 817

Net Deficit (R24 901)

Cash and cash equivalents R365 000

Cash and cash equivalents

2004/05

Annual Financial Statements R’000

Cash and cash equivalents R365 000

ADD: Assets, including levy receivables and fixed assets

R52 218

LESS: Current liabilities, including grants payable, accounts payables, accruals etc.

(R151 740)

Funds available for strategic projects R265 478

LESS: Net allocation to projects (difference between total allocation and total expenditure)

(R241 784)

Unallocated funds R23 694

Surplus funds - Overview

2001 2002 2003 2004 2005

CUMMULATIVE

R’000 R’000 R’000 R’000 R’000

Surplus funds available (A)

26 359 101 827 227 950 363 907 496 035

Surplus funds allocated (B)

0 91 266 93 415 223 070 472 357

(B) as % of (A)

0 90% 41% 61% 95%

Surplus funds disbursed(C)

0 15 867 40 715 73 528 230 557

(C) as % of (B)

0 17% 44% 33% 49%

STRATEGIC PROJECTS

SETA FUNDED

AMOUNT ALLOCATED R472m

AMOUNT DISBURSED R230m

SETA SPONSOREDSETA SPONSORED STRATEGIC PROJECTS STRATEGIC PROJECTS

• Learnerships R217m• Capacity Building for Unions R 10m• Qualifications (Dev.) R

7.5m• I.S.D.F’S R 24m• SMME’S R 24m• ABET R 30m• Assessor Training R 7m• People Living with Disabilities R

30m

NSDS 2001-2005 ACHIEVEMENTS

SCORECARD

ACHIEVEMENTS BY OBJECTIVE

OTHER ACHIEVEMENTS

DoL SCORECARDPERFORMANCE ASSESSMENT

SUMMARY

Score Comment

NSDS Targets 5Execllent perfomance levels achieved by the W&RSETA

Governance and Management 5

Execllent perfomance levels achieved by the W&RSETA

Financial Management 2.5Execllent perfomance levels achieved by the W&RSETA

Sector representation and Stakeholder Support N/A

Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvments submitted.

Overall Score for SETA 4.17

NSDS TargetsNSDS Objective

Objective 1: To develop a culture

of high quality lifelong learning

Seta Target March 05

•A Target for 8000 ABET Learners was set •120900 workers on structured learning programmes • 20 Enterprises to be committed to or have achieved the National agreed standards (IiP)

Seta Progress•8000 learners embarked on a learning programme towards an NQF Level one qualification.

•337687 workers have embarked on structured Learning programmes•35 Levy paying organisations have committed to IiP

Target

Exceeded

Number of People Trained by Companies

Total number of people trained = 337687

52%

18%

8%

22%

African

Coloured

Indian

White

PROFILE OF SKILLS PROGRAMMES PROFILE OF SKILLS PROGRAMMES OFFERED BY ORGSOFFERED BY ORGS

• TEAMWORK 153,516• CUSTOMER RELATIONSHIP 58,679• PRODUCT KNOWLEDGE

26,416• AIDS

13,800• SALES 12,136

NSDS Targets cont.

NSDS ObjectiveObjective 2:

To foster skills development in the formal economy for

productivity and employment growth Seta Target March 05

•159 Enterprise Large and Super

•448 Enterprises Medium

•7 Learnerships to be developed

Seta Progress

•210 enterprises are receiving grants

•487 enterprises are receiving grants

•10 learnerships developed

Target

Exceeded

NSDS Targets cont.NSDS Objective

Objective 3:

To stimulate and support skills

development in small businesses

Seta Target March 05

•5500 SMMEs receiving Seta support

Seta Progress

•7350 SMMEs received support

•2566 SMMEs received training.

•145 SMME retail training companies received facilitation skills training

Total of 10061 SMME received support

Target

Exceeded

NSDS Targets cont.

NSDS ObjectiveObjective 4:

To promote skills development for

employability and sustainable livelihoods

through social development initiatives

Seta Target March 05

Project RAVE

10 000 Learners to be trained in nine provinces

Seta Progress

10200 learners have completed the training and mentorship

Target

Exceeded

NSDS Targets cont.

NSDS Objective

Objective 5:

To assist new entrants into employment

Seta Target March 05

•2000 SETA Target

•3000 GDS Target

Seta Progress

•18.1 Employed Learners – 1427

•18.2 Unemployed Learners- 5293

Target

Exceeded

LEARNERSHIPS STATUS

41%

59%

0%

Total Completed

Total in Progress

Terminations

 SETA Target

Total Achieved

Total Completed

Total In Progress

Terminations

18.1 2000 1427 671 756  

18.2 4000 5057 1461 3260 336

Total 6000 6484 2132 4016 336

Learnership Achievements

0

200

400

600

800

1000

1200

18.1 18.2

18.1 and 18.2 Achieved per Qualification

National Certificate:W&R Processes (NQF 2)

National Certificate: W&R Sales and ServiceTechnology (NQF 4)

National Certificate: Certificate in RetailOperations Management(NQF 5)

National Certificate: W&R Processes (NQF 2)

National Certificate: W&R Sales and Service Technology (NQF 4)

National Certificate: Certificate in Retail Operations Management (NQF 5)

18.1 626 207 38

18.2 1032 284 6

Total 1658 491 44

STRATEGIC PROJECTS

NSF FUNDED (R 000m)

PROJECT RAVE

AMOUNT ALLOCATED R68mAMOUNT DISBURSED R54m

18.2 LEARNERSHIP (unemployed)

AMOUNT ALLOCATED R50mAMOUNT DISBURSED R38m

W&RSETA QUALIFICATIONS

20 QUALIFICATIONS DEVELOPED

11 REGISTERED WITH SAQA & DoL

National certificate: Retail shop floor practices - NQF Level 2National certificate: Retail and wholesale sales and services technology 4National certificate: Wholesale and retail credit control 4National certificate: Wholesale and retail operations supervision 4National certificate: Wholesale and retail sales practices 3National certificate: Wholesale and retail operations management 5National certificate: Retail and wholesale processes 2National certificate: Wholesale and retail distribution 2

Wholesale and Retail Generalist 2Wholesale and Retail Specialist 4Wholesale and Retail Management 5

OTHER ACHIEVEMENTS

5 Unqualified Audit reports Re-Accreditation as an ETQA by SAQA -3years Re-Established as a SETA for next 5 years 57 Providers Accredited

30 In house – organisations 15 External 12 BEE

68 FET Colleges participating in W&RSETA qualifications

1421 Assessors Registered 125 Moderators Registered 2193 Certificates for Full Qualifications issued 2500 Record of Achievements in SMMEs 295 Learning Programmes approved

BEST PRACTICE

SAQA Auditors congragulates :

Qualifications Framework

Balance Score Card

IT Policies and Procedures

CHALLENGES

Increase training and participation of SMME’S Form strategic private,public & community partnerships

Capacitate and Accredit SMME Providers

Develop exit strategies - Learnerships

Develop new demand-led qualifications

Address Scarce SkillsNational Presence –Provincial Roll-out StrategyImplement our Vision PlanAssess & Evaluate impact

Specific Issues for Portfolio Committee Attention…

R500K exemption has caused the following: There will be no database of businesses to work with

(A suggestion to work with DTI database) Number of SMMEs participating has been reduced Reduced funding base Increased administration to better manage non-levy

paying companies

Companies pay levies but do not train employees.

Placement of unemployed remains a challenge.

Other government agencies should be encouraged to work with the SETAs

Key Challenges for 2005 – 2006 contd….

To establish partnerships with Education Institutions for driving. New Venture Creation ABE Institutes of Sectoral Excellence High Level Qualifications Informal Sector Skills Development RPL

To foster cooperation with Provincial & Local Government to localise delivery

To initiate Public Private Partnerships with Corporates in the Sector for the benefit of SMMEs and the unemployed, especially women

To improve our impact assessment mechanisms so that we can be able to improve our delivery to the sector.

To refine our discretionary grant disbursement capability

Key Challenges for 2005 - 2006

To establish the SETA presence in all provincesTo establish a comprehensive list of scarce

skills in the sectorTo develop skills programmes that adequately

address the needs of the sectorTo create a seamless interface with other SETAs

that will enable employees in our sector to access skills programmes in those SETAs

To initiate learnerships that result in placement for the unemployed

To increase the number of providers that are accredited to deliver Wholesale and Retail training programmes

To increase the number of SMMEs that participate in skills development

Thank youThank you

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