Manufacturing Engineering and Related Services SETA MANDATORY DISCRETIONARY

Manufacturing, Engineering and Related Services SETA MANDATORY & DISCRETIONARY GRANT ROAD SHOW LUZETTE JOSEPH – SENIOR MANAGER: ADMINISTRATION SABELO BUTHELEZI – SENIOR MANAGER: PROGRAMME IMPLEMENTATION SHERYL PRETORIUS – SENIOR MANAGER: CLIENT SERVICES

Manufacturing, Engineering and Related Services SETA LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA 100% 1% of total payroll SARS DEPARTMENT OF HIGHER EDUCATION AND TRAINING 2% National Skills Fund EMPLOYER Maximum of 0. 5% to QCTO Other Legal Entities 80% of the discretionary will be allocated to pivotal programmes 18% Maximum of 20% of the discretionary will be allocated to non pivotal programmes 80% 10. 5% Administration MANDATORY: WSP & ATR: 20% DISCRETIONARY GRANTS AND UNCLAIMED GRANTS 49. 5% LEADERS IN CLOSING THE SKILLS GAP SETA’S

Manufacturing, Engineering and Related Services SETA ACCESS REGISTRATION PROCESS • Access the SMS system via the mer. SETA website (www. merseta. org. za). or directly using the following URL http: //196. 4. 89. 14/cdas/MERSETA. asp • All signatories must register on-line for access. • Follow the steps in the submission guide to start with the registration process. – available on the mer. SETA website – www. merseta. org. za LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA FUNDING WINDOW REQUIREMENTS MANDATORY/PIVOTAL APPLICATION WINDOW 1 February – 30 April 2017 DISCRETIONARY GRANT WINDOW 1 February– 30 April 2017 PIVOTAL PROGRAMMES Large & medium sized companies = submit PIVOTAL plan during mandatory grant application Class of 2017 Matriculants Small and other legal entities = apply during discretionary grant window Class of 2017 Matriculants OFO Codes - Version 2015 throughout the application. Banking details changed = submit original banking details to mer. SETA office. NON PIVOTAL PROGRAMMES Large & medium sized companies = submit during discretionary grant window Upload = Signed minutes of Training Committee meeting LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA MANDATORY/PIVOTAL APPLICATION WINDOW 1 February – 30 April 2017 Upload = Deviation motivation + Signed minutes of Training Committee meeting + signoff page + Non NQF aligned training motivation DISCRETIONARY GRANT WINDOW 1 February– 30 April 2017 Recognition agreement = labour/union SDF + SDF sign-off 50 or more employees but no recognition agreement = employee SDF + SDF sign-off LEADERS IN CLOSING THE SKILLS GAP 50 or more employees but no recognition agreement = employee SDF + SDF sign-off

Manufacturing, Engineering and Related Services SETA MANDATORY/PIVOTAL APPLICATION WINDOW 1 February – 30 April 2017 DISCRETIONARY GRANT WINDOW 1 February– 30 April 2017 SDF will be prompted prior to sign-off where outstanding information is required. Upload sign-off page of all signatories where parties are not available to sign-off electronically. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA REPORTING PERIOD Annual Training Report (ATR) & PIVOTAL Report – 1 January – 31 December 2016; and Workplace Skills Plan – WSP & PIVOTAL Plan – 1 January – 31 December 2017 LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA STAKEHOLDER FEEDBACK & IMPROVEMENTS STAKEHOLDER CHALLENGE/SUGGESTIONS After pressing enter on the Training with Other Seta's form, it would not save the info or go to the next page CAUSES The system has a timeout function which will not allow changes after a certain amount of non activity. Blank screen once logged in Compatibility view settings have not been activated. Request for duplicate information already supplied SOLUTIONS/IMPROVEME NT Log out and log back in. Internet setting document available on mer. SETA website. Request for information in All duplication has been two areas to ensure eliminated and validating the information streamlined. captured e. g. Recognition agreement LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA STAKEHOLDER FEEDBACK & IMPROVEMENTS STAKEHOLDER FEEDBACK CHALLENGE SOLUTIONS/IMPROVEMENT No space for Labour/employee SDF information mer. SETA would request clarification of sign off on manual submissions where the information was not included. Provision has been made for the Labour/employee SDF to input their details. This will eliminate query for clarification. The document uploads were failing. Either the incorrect format Split a large file and upload was used or the file separately. exceeded 5 Mb. Only use pdf, word, jpg, tiff or png formats. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA STAKEHOLDER FEEDBACK & IMPROVEMENTS STAKEHOLDER FEEDBACK CHALLENGE SOLUTIONS/IMPROVEMENT When an SDF was working on the weekends, especially near submission due date, the system would throw them out. Many companies wait until the deadline before they start the submission process which results in higher bandwidth usage. Excel upload facility required. The current SMS system mer. SETA will explore the does not have the possibility to build it into the capacity to deal with this. new system. Previous experiences of implementing the excel upload was unsuccessful. mer. SETA monitors the bandwidth usage and instructs the provider to increase the capacity. Start the process early to avoid the rush. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA STAKEHOLDER FEEDBACK & IMPROVEMENTS STAKEHOLDER FEEDBACK Data exported from the previous year came through scrambled. CHALLENGE Due to different versions of OFO codes being used, the system would scramble the information when importing it to OFO version 2015 The save button on the skills requirement page was greyed out and clients struggled to complete the section. SOLUTIONS/IMPROVEMENT The OFO code version did not change from the previous submission. The SDF is required to capture both the previous and current year information whether vacancies existed or are expected. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA STAKEHOLDER FEEDBACK & IMPROVEMENTS STAKEHOLDER FEEDBACK CHALLENGE SOLUTIONS/IMPROVEMENT Post pressing signoff by the SDF or Employee Rep they could not return to that page to print it out for uploading or scanning to H/O. The functionality exists on the mandatory grant screen and the SDF is required to click on print and paste the information into a word document for further usage. On the organisation info page the Municipality tab was greyed out. Although it seems greyed out, the SDF is required to make use of the search functionality and select the municipality LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA SYSTEM CHANGES/ADDITIONS FORM CHANGE/ADDITIONS Workplace Skills Plan (WSP) Confirmation whether training is in line with the organisation’s employment Equity plan is required. Confirmation of willingness to enter into a co-funding partnership. Non NQF aligned training Where training is not NQF aligned, the organisation is required to upload a motivation capturing the reasons therefore. Document Upload tab The current financial year must be selected to ensure that the uploaded documents are relevant to the current year. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA REASONS FOR NON APPROVALS & CORRECTIVE MEASURES REASON FOR NON APPROVAL OR QUERY No employee SDF (representative) sign-off CORRECTIVE MEASURES Companies employing 50 or more staff who do not have a signed recognition agreement with labour, must ensure that an employee SDF (representative) who is a member of the training committee signs off. This can be done electronically or manually where the sign-off page is printed, signed and uploaded. Please ensure that the person’s name, surname and who they represent is written on the manual sign-off page. The person’s details must also appear on the training committee tab. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA REASON FOR NON APPROVAL OR QUERY CORRECTIVE MEASURES Clarification of sign-off Ensure that when the employee or labour SDF signs off, that the name, surname appears. Clearly state whether the person is an employee or labour SDF. Ensure that the person’s details appear on the Training Committee tab Deviation – less than 40% from previous WSP Where the company has specified that they will train 100 employees in the WSP and when the ATR is submitted, they have only trained 39 employees, it clearly means that they have deviated more than 40%. A motivation with details explaining why the full WSP was not implemented is stated. All training must be reported on. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA REASON FOR NON APPROVAL OR QUERY No labour SDF (representative) sign-off CORRECTIVE MEASURES Companies who have a signed recognition agreement with labour must ensure that a labour SDF (representative) who is a member of the training committee signs off. This can be done electronically or manually where the sign-off page is printed, signed and uploaded. Please ensure that the person’s name, surname and who they represent is written on the manual sign-off page. The person’s details must also appear on the training committee tab. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA REASON FOR NON APPROVAL OR QUERY CORRECTIVE MEASURES No training completed Where no training has been implemented, the grant will not be approved, irrespective whether reasons are supplied. Banking details The SDF must confirm whether the banking details are correct and only if changed since the last submission is the SDF required to submit the original banking details as per the requirements to the mer. SETA regional office. ***Once received, mer. SETA will request an e-mail confirmation from the authorised person within the company as an additional risk eliminator. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA REASON FOR NON APPROVAL OR QUERY Disputes CORRECTIVE MEASURES Where a dispute arises the SDF must upload the details of the dispute against the sign-off page on the document upload page and must ensure that he/she submits the grant application electronically. TIPS TO AVOID DISPUTES: • Involve the labour representatives from the commencement of the skills needs analysis and ensure that labour representatives form part of the training committee. • Separate training related issues from bargaining issues, • Training Committee members must have a clear understanding of their existing policies relating to training and employment equity. • When you notice that there is a possibility of a dispute, involve the mer. SETA Client Liaison Office in an attempt to resolve the matter amongst the training committee members. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA APPROVAL PROCESS • The only outstanding information that will be followed up after submission is: – Banking details – Clarification of sign-off – Outstanding labour or employee SDF signatories (whichever is applicable) – Proof of inter-Seta transfer approval prior to mandatory grant submission deadline. – Submissions of deviation. This information must be submitted by no later than 15 July and no appeals will be accepted as the unclaimed mandatory grant funds will be transferred to the discretionary grant funds. • The approval process must be concluded by no later than 31 July of each year. • Unclaimed mandatory grant funds must be transferred to discretionary grants by 15 August of each year. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA PIVOTAL PLAN (Discretionary grant) • Large and Medium companies: • Must submit their mandatory grant application and complete the PIVOTAL plan. • Small and other legal entities operating in our sector: - PIVOTAL and Non-PIVOTAL • programmes: • Must submit during the discretionary grant funding window. Large and Medium companies: - Non-PIVOTAL programmes • Must submit via the discretionary grant funding window opening Wednesday, 1 February 2017 until Sunday, 30 April 2017 Preference will be given to priority skills identified and where SIPs coincide with these skills. LEADERS IN CLOSING THE SKILLS GAP on

Manufacturing, Engineering and Related Services SETA DISCRETIONARY GRANT DISTRIBUTION OF 49, 5% Pivotal Programmes (80%) Minimum of the discretionary grant budget 70% of DG to be ring fenced for levy paying employers that have submitted Pivotal Plan through the Mandatory Grant Window DG Awards to commence from 1 September 20% of DG to be ring fenced for SME levy paying and mer. SETA non -levy paying companies Non Pivotal Programmes 10% of DG to be ring fenced for other legal entity or public providers Window to open on the 1 February and close 30 April DG Awards to commence on 1 September LEADERS IN CLOSING THE SKILLS GAP (20%) maximum of the discretionary grant budget Window to open on the 1 February and Close 30 April

Manufacturing, Engineering and Related Services SETA DISCRETIONARY GRANTS – AWARDING CRITERIA 1. Submissions for large and medium companies occur during the mandatory grant application process. 2. Small mer. SETA levy paying companies who intending to apply for consideration for discretionary grants for the training of Matriculants “Class of 2017”, must apply via this window. 3. Legal entities are defined as: • Public and Private education and training institutions • An employer within the jurisdiction of the mer. SETA who is not required to • pay Levies. Community based organisations (CBO’s), Co-operatives. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA DISCRETIONARY GRANTS – AWARDING CRITERIA • Trade Unions in the mer. SETA Sector, for the benefit of educating and developing their members on Skills Development-related programmes which forms part of their duties as shop stewards and which is beneficial to the mer. SETA Sector. 4. Disputes - The Regional office will carry out a verification process on Mandatory Grant applications and where insufficient consultation with labour/employee representatives has occurred, the mandatory and discretionary grant will not be approved. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA DISCRETIONARY GRANTS – AWARDING CRITERIA 5. Verification on workplace readiness will be carried out by the regional offices. 6. Preference will be given to the priority skills identified in the mer. SETA Annual Performance Plan and SSP. 7. All claims must be in respect of learners who are South African citizen and who are in possession of a valid South African Identity document. 8. All withdrawals will be investigated to determine reasons for the withdrawal and how it could affect future discretionary grant awards. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA DISCRETIONARY GRANTS – AWARDING CRITERIA Further grant awards will depend on progression on delivery of previous grant awards, as follows: DISCRETIONARY SATISFACTORY PROGRESSION GRANT WINDOW DG 5 Closed out with exception of approved extensions where apprentices await trade testing. Year 14 and 3 rd tranche payments of all learning interventions has been paid. agreements for All short learning interventions has closed out. the “Class of 2013 Matriculants” LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA DISCRETIONARY GRANT WINDOW SATISFACTORY PROGRESSION Year 15 and agreements for the “Class of 2014 Matriculants” 2 nd tranche payment of all learning interventions has been paid All learning interventions to be closed out, except for learners on apprenticeships and NQF Level 2 to 4, bursaries and internships Year 16 and agreements for the “Class of 2015 Matriculants” First and second tranche payments for all learning interventions has been paid. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA DISCRETIONARY GRANTS AWARDS • Awarding of discretionary grants is at the sole discretion of the mer. SETA based on the approval of the Accounting Authority; • Award is given via an Mo. A to the stakeholder where the stakeholder takes full responsibility for the learner; • Approved awards will be aligned to the 49, 5% levies received by an organisation; • Appeals regarding an award of a grant must be submitted in writing detailing the reasons for the appeal, within 14 days of receipt of the award. LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA DISCRETIONARY GRANTS AND BBBEE Spend on Skills Development has been increased from 3% to 6% of the payroll LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA EMPLOYER CATEGORIES CATEGORY CRITERIA PLATINUM Must be mer. SETA levy-paying companies and up Platinum companies get 1 x 49. 5% levies -to -date with levies; contributed and a further 2 x 49. 5% on condition that they match and contribute 2 Have received Mandatory Grants payments for x 49. 5% of their fund towards the funding last three years; agreement. , Top Training Clients COMMENT Have an average pass rate of 80% in implementation of learning programmes including apprenticeships according to the companies training track record; Companies must be encouraged that 2% of learners applied for and enrolled are persons with disability for primary or nonprimary focused learning. An active training committee must be in place if the employer has 50 or more employees and where there is a recognised trade union or unions, they must form part of the training committee; Employers awarded 10 or more awards will be encouraged to participate in mer. SETA’s initiative to develop lecturers, within Public TVET Colleges, by indicating the availability of such workplaces to train such lecturers. Have a progress or placement average of 70%; Placements will be measured for a three-year LEADERS IN CLOSING THE SKILLS GAP period.

Manufacturing, Engineering and Related Services SETA CATEGORY CRITERIA COMMENT GOLD Gold companies get 1 x 49. 5% levies contributed and a further allocation to a maximum of 0. 5 x 49. 5% on condition that they match and contribute 0. 5 x 49. 5% of their fund towards the funding agreement. The Gold mer. SETA levy-paying companies have a training record, . However there are gaps where the employer needs to be developed in order to move to the Platinum Category; Must be mer. SETA levy-paying companies and up-to -date with levies; An active training committee must be in place if the employer has 50 or more employees and where there is a recognised trade union or unions, they must form part of the training committee; Has participated in the submissions of mandatory grants and these grants have been approved for payment; These employers to indicate that work -integrated learning or workplace learning for persons with disability can take place for primary or non-primary focused learning. Have an average pass rate of 60% of learning programmes implemented; Have a sound track record of training over a minimum period of two years; Have a progress or placement average of 60%. Placements IN CLOSING will be measured. LEADERS for a three-year period. THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA CATEGORY CRITERIA COMMENT SILVER The Silver Category companies are companies with limited exposure to skills development or have never worked with the mer. SETA before including non -levy paying companies. 10% of the total surplus budget available will be allocated to New Business employers. Non levy paying companies and It is important to note that an active training levy paying companies where committee must be in place if the employer has 49. 5% is below R 150 000. 00 in 50 or more employees and where there is a this category will get an allocated recognised trade union or unions, they must grant equivalent to one form part of the training committee. apprentice and a further grant equivalent to 1 apprentice on condition that they contribute equal grant. LEADERS IN CLOSING THE SKILLS GAP

CO-FUNDING EXAMPLE WITHOUT COFUNDING WITH CO-FUNDING Manufacturing, Engineering and Related Services SETA Levies available for Maximum Grant mer. SETA Company 20% of DG Mer. SETA Maximum Total of 20% to 80% to purposes Funding portion on Co Mandatory Distribution Portion on Co Mer. SETA DG Grants NSF mer. SETA after 10. 5% without Co-funding Grant 49. 50% -funding Funding Received Admin and funding (2 x 49. 50%) Payment (2 x 49. 50%) QCTO Allocated Category Company levies Contributed Platinum 1 000 200 000 800 000 Company levies Contributed Levies available for Maximum 20% of Grant Mer. SETA Company DG Mer. SETA Mandatory Maximum Total of 20% to 80% to purposes Funding portion on Co Distribution Portion on Co Grant Mer. SETA DG Grants NSF mer. SETA after 10. 5% without Co-funding 49. 50% -funding Payment Funding Received Admin and funding (0. 5 x 49. 50%) QCTO Allocated 1 000 200 000 800 000 Category Gold Category Company levies Contributed 716 000 396 000 792 000 396 000 198 000 792 000 198 000 160 000 1 188 000 594 000 1 348 007 754 000 Levies available for Grant 20% of Mer. SETA Maximum Total of purposes DG Company Mandatory Maximum Total 20% to 80% to Funding Mer. SETA Grants after 10. 5% Distribution portion on Co Grant Mer. SETA DG NSF mer. SETA without Co- Portion on Co Received Admin and 49. 50% -funding Payment Funding funding -funding QCTO Allocated % 188% % 105% % LEADERS IN CLOSING THE SKILLS GAP Silver 150 000 30 000 120 000 107 400 53 163 150 000 24 000 300 000 324 000 270%

Manufacturing, Engineering and Related Services SETA SUMMARY • The SMS system will open on 1 February 2017 • mer. SETA regional offices and call centre is available for assistance, upon request • Register your labour and employee SDF’s on the SETA Management System (SMS) Now – Don’t wait!!! LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA LEADERS IN CLOSING THE SKILLS GAP

Manufacturing, Engineering and Related Services SETA LEADERS IN CLOSING THE SKILLS GAP

THANK YOU Luzette Joseph Sabelo Buthelezi mer. SETA