ETDP SETA PRESENTATION ON THE 20089 ANNUAL PERFORMANCE

ETDP SETA PRESENTATION ON THE 2008/9 ANNUAL PERFORMANCE REPORT AND ITS PARTICIPATION IN THE TRAINING LAY OFF SCHEME Event: Presentation to the Parliamentary Portfolio Committee on Labour Date: 11 September 2009 Venue: Committee Room E 249, Second Floor National Assembly, Cape Town

Scope of coverage Section A: 1. Performance against the NSDS II Objectives (2008/9) 2. Summary of ETDP SETA achievements for the last four years 3. Equity targets Section B: 4. Background 5. ETDP SETA interventions 6. Current scenario 7. Short term measures 8. Medium and long term measures 9. Process for applying for TLS 2

1. Performance against NSDS objectives 3

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… Continued Table 2 5

Table 2. … Continued 6

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2. Summary of ETDP SETA achievements for the last four years in % NSDS Success Indicator 2005/6 2006/7 2007/8 2008/9 1. 2 Dissemination of scarce & critical skills 140% 127% 128. 9% 114. 1% 2. 1 (a) Large firms submitted WSPs/ATRs 68% 107% 125. 9% 127. 7% 78% 227% 233% 223. 8% 31% 95% 92. 9% 99. 2% 2. 1 (b) Medium firms submit ted WSPs/ATRs 2. 2 Small firms submitted WSPs/ATRs 10

NSDS Success Indicator 2. 5 Support to small BEE firms 2005/6 2006/7 2007/8 2008/9 00% 220% 185% 140% 2. 7 Workers in ABET programmes 00% 111% 136. 6% 123% 2. 8 Workers who entered programmes 70% 164% 194. 6% 143. 2% ______ 00% 03% 286. 7% 188. 1% 77% 122% 237. 20% 167%11 Workers who completed programmes 3. 2 Support to NLPEs, NGOs

NSDS Success Indicator 4. 1 Unemployed who entered programmes ____ Unemployed who completed programmes 4. 2 Work place experience for learners in critical skills ______ Learners in critical skills assisted to get placement New venture 2005/6 2006/7 2007/8 2008/9 93% 173% 167% 156. 9% _____ 00% 0. 34% 165. 4% 122. 2% 00% 153% 141% 276. 6% ______ n/a n/a 00% 125% 105%12

ETDP SETA’s performance in the last four years using the Do. L performance rating scale Percentage Score Rating Performance Description 0% - 60% 61 – 80% 81 – 100% 101% – 120% +120% 1 2 3 4 5 Performance is Poor Performance is below Requirements Performance meets Requirements Performance is above Requirements Performance is Excellent The information below shows the ETDP SETA Performance for the last four years 2005/6 2. 64 2006/7 4. 10 2007/8 4. 77 2008/9 4. 53* * denote that the score is provisional as it is still due for signing off by Do. L 13

3. Equity Targets Skills development equity targets are determined as follows: - 85% of total number of learners trained must be black - 54% must be women - 4% must be people living with disabilities In 2008/9 the ETDP SETA facilitated the implementation of training to 9466 learners in learning programmes, including ABET levels 1 – 4, bursaries, internships, skills programmes and workplace experience 14

Equity profile breakdown Entry to all learning programmes 8604 (90. 8%) of learners trained were black, 862 (9. 2%) were white, 6052 (63. 9%) were female, 171 (1. 8%) were people with disabilities and 5122 (54. 1%) were youth Programme completions A total of 4399 learners (both employed and unemployed) completed various programmes, 4116 (93. 5%) were black, 283 (6. 5%) were white, 2671 (60. 7%) were female, 61 (1. 3%) were people with disabilities and 1735 (39. 4%) were youth 15

• SECTOR PROFILE • All Departments of Education • Higher Education Institutions • Libraries and Archives • Further Education and Training Institutions • ECD & ABET Centres • Private Providers in Education • Independent Schools • School Governing Bodies • Political Parties • Trade Unions • NGOs and CBOs 16

SECTION B ETD SECTOR PLANS TO SUPPORT TRAINING LAY OFF SCHEME 17

4. Background - ETD sector has not fully felt the impact of the recession as yet - ETDP SETA’s involvement in the 1 st phase of the TLS implementation will prepare it for the knock-on effect of the economic down turn in its sector - The SETA plan will address the short, medium and long term interventions 18

Background. . . cont - Job losses in other sectors would also have a knock-on effect in the ETD sector since these employees are parents of children in schools (both private and public), FET colleges and HET institutions - There already signs that ECD centres (mainly levy exempted and private ETD providers) are beginning to feel the impact 19

5. ETDP SETA interventions Short Term Measures - In 2008/9 the SETA collected R 166 802 m in revenue (therefore, job losses in the sector will mean less revenue for the ETDP SETA) The August 2009 Board approved the support of the TLS and mandated the Executive Committee to develop an implementation plan - Given the urgency of the matter an immediate available R 30 m is to be made available towards the implementation of TLS. 20

ETDP SETA interventions Short Term Measures. . . cont - It is envisaged that the money will be used for training on generic workplace skills in the form of skills programmes in areas identified by employers 21

6. Current scenario - If employment is said to have contracted by 267 000 in the 2 nd quarter of 2009 to 13. 37 m (Fin 24. com, 8/9/2009), the ETDP SETA can predict potential job losses of about 16 000 employees which is approximately 6% of 267 000 - The provider training fees for 16 000 employees on skills programmes will cost about R 96 m, ( @ R 6000 person per programme), excluding the training allowances - Based on an assumption that the training allowance is pegged at 50% of the employee’s basic salary or wage to a maximum of R 7 500 per month for three months which gives R 22 500. Therefore, the ETDP SETA will in total need to secure about R 360 m from the NSF for 22 training allowances

7. Short term measures - Based on the available R 30 m, the ETDP SETA will participate in the scheme by providing training to about 5000 employees on skills programmes (responsible for funding provider training costs at an estimated cost of R 6000 person per programme and apply for R 112 500 000 from the NSF for salaries for three months. 23

8. Medium and long term measures - • • Currently preparing to conduct consultative sessions with its stakeholders, so that a comprehensive plan that responds to this challenge could be developed The plan which will be informed by research and taking into account the prescripts of NSDS III will seek to outline among others the following: Provisioning of advice to training options across sectors Development of relevant programmes and qualifications Channelling of funds towards the development and appointment of assessors and moderators Specifying the role(s) that each social partner in the sector should play, namely: Do. E, private employers, labour, PSCBC, CCMA and the NSF 24

9. Future: EMPLOYABILITY - A single framework that holds the key to how our country can build a work force that is competent, flexible, productive, able to move vertically and horizontally in the same or different industries/companies. - Workplace learning- work integrated learning , a high skilled approach to economic development 25

10. Process for applying for TLS The ETDP SETA will entertain any form of source request for the facilitation and funding of training that comes through any of the following modes: - Agreements that emanate from a CCMA process in terms of Section 189 and Section 189 A - Agreements that emanate from parties in the labour market not involved in a CCMA process, and - Through requests for training layoff that come from parties in the labour market not involved in a CCMA process 26

Thank you! Contact Details: ETDP SETA Tel: (011) 628 5000 Fax: (011) 482 6419 E-mail: nombulelon@etdpseta. org. za www. etdpseta. org. za Toll Free: 0800 3837 73 27