Services SETA Presentation to The Portfolio Committee on

Services SETA Presentation to The Portfolio Committee on Labour 23 August 2005

Introduction by CEO – Ivor Blumenthal q Introduction of team attending etc. q Framework of presentation q Brief Service SETA organisational overview q Brief sector overview q Highs and lows of SSETA activities for 2004/5 year q Report on funds received and disbursed for 2004/5 year q SSETA contribution to National objectives of Growth, Employment and Poverty alleviation q Opportunities and challenges for SSETA in implementing NSDS 2005 – 2010 q Q&A session with portfolio committee

Brief overview of SETA

Cont… Brief overview of SETA q q List of standing committees supporting governance and management structures include : - q ETQA & Learnership committee q Research committee q Audit committee q Remuneration committee q Conference committee q Employment Equity committee Regional advisory boards currently established in 5 provinces – subject to change to 4 SIC code committees in each province mirroring the new 4 chamber structure

Brief overview of Sector q 107, 588 employers on database with projected 10% continuing to pay levies after 1 st August 2005 expanded threshold introduction q New employer base characterised by 87% SMEs and 13% LMEs q 9 chambers re-structured & consolidated into 4 new chambers and 23 industries q Business Services Chamber q Management Services Chamber q Commercial & Industrial Services Chamber q Client Care Services Chamber q Largely trans-sectoral (13 of 23 industries specifically in 2 chambers) i. e. New Business & Management chambers q 83% of employers reside in 3 largest provinces of Gauteng, Western Cape and Kwa Zulu Natal q New governance structure focusing on regional SIC code input through establishment of regional SIC code committees. q Black provider forum establishment

Highlights of SSETA activities for last financial year q Re-establishment of SSETA for period April 2005 to March 2010 q Exceeding GDS targets by over 300% q Over 600 SDFs trained q 23 learnerships registered with SAQA totaling 54 to date q ISO accreditation of SSETA as an organisation q Piloting of School pre-learnership project q Establishment of the African Marketing Confederation & African hairdressing confederation q Partnership agreement with the Dti q Signing of international partner agreements regarding reciprocity and certification frameworks q Roll out of Amasondi Esibindi disability project to other provinces q Development and registration of the small business qualification for SMEs q Successful implementation of NSF funded Domestic Worker skills development project

Cont… Highlights of SSETA activities for last financial year q Employee assistance programme roll out in response to a holistic view to skills development linked to productivity focus of NSDS 2000 - 2005 q Introduction of video conferencing to reduce flight costs q Exceeding disability targets by 2% on learnership enrolments for 2004/5 period q Support for the formation of an Inter-sectoral Disability Forum and facilitation of a PESTEL workshop for the forum q Accreditation of 1089 providers q 2423 providers assisted through accreditation workshops q 26 Strategic planning (PESTEL) workshops conducted at an industry and provincial level with key informants and captains of industry q Completion of 8 research projects to inform development of new Sector Skills Plan q Participation through the NSA retreat in the development of NSDS 2005 - 2010

Lowlights of SSETA activities for last financial year q learner apathy q SDF fraud q Provider apathy q Employer fraud q Learner fraud q ETQA over commitment q Biased media q Professional & band ETQA conflict with vocational ETQAs

Report on funds received and disbursements for 2004/5 year

SETA contribution to National objectives of Growth, Employment and Poverty alleviation q 800 learners to receive NVC qualification at NQF level 4 q 6 regional offices established in 6 provinces supporting skills development on a national basis q Contact centre learnerships contribute to foreign direct investment of R 250 million and 200 sustainable jobs q Partnership with FET sector - piloting of PSLP – 54 schools in 9 provinces - 3000 learners – enter labour market in 2009 q Successful implementation of DWSDP having met all targets q 15 336 new business registered in the sector over 2004/5 year q Graduate intern programme with over 30 learners placed permanently q Venture creation implemented with disabled communities and rural community where learnership grant itself exceeded basic income of individuals. q 11 EAP toolkits developed and distributed in English, Zulu and Tswana & disseminated to 3976 candidates q 55 039 learners completed structured learning – 4856 high level occupations, 24 447 intermediate level occupations and 25 736 at entry level occupational levels

Opportunities facing SSETA in implementing NSDS 2005 - 2010 q A more targeted approach to skills development with focus on scarce and critical skills - Concept of introducing a dedicated service excellence qualification q Collaboration and strategic partnerships at National, provincial and international levels including NEPAD secretariat q Fostering closer links with industry through training of sector specialists through collaboration with industry professional bodies and associations q More focused support and communication to large and medium firms in the sector towards skills development q Development of sector wide empowerment charter and scorecard q Integration of sector BEE, EE and skills development with customised programmes for SDFs q Provision of learning programmes to NGO and non levy paying enterprises q Venture creation and establishment of entrepreneur support base of providers, mentors, etc

Cont… Opportunities facing SSETA in implementing NSDS 2005 - 2010 q Strengthen management and governance structures through CPD q Pilot new learnership enrolment with Do. L provincial offices with involvement of public DOE providers q Create over 15 000 permanent sustainable jobs q Link learnerships and placement within broader EPWP framework through partnership agreements linked to demand side strategies q Create provincial quality assurance and Excellence structure to monitor providers with regard to ISOE

Challenges facing SSETA in implementing NSDS 2005 - 2010 q Providing skills development support and initiatives to approximately 100 000 non levy paying employers in sector q Inclusion of EE criteria for large and medium firms in the sector for 10% mandatory grant component q Improved board profile with regards to EE q Learnership funding specifically with drop in income due to tax amendments q Organised labour representation on regional and chamber committees and boards q Mandated representation from organised business q Approval for ETQA to charge for accreditation q Fast tracking certification partners for all industries q Disability target and profile in the sector q Gainful employment amongst disabled learners

Annexure 1. Sector Scarce skills 1. Management & leadership skills 2. Team leader & supervisory skills 3. Project management 4. Call centre operators 5. Plant operators (e. g. bulldozers, graders etc) 6. Marketing skills ( incl. brand & research management ) 7. Event management skills (2010 world-cup) 8. Property related skills ( commercial & residential) 9. Embalming skills 10. Hairdressing multi skills ( Caucasian & Afro ) 11. Business related skills ( QMS, admin, finance, IT )

Annexure 2. Generic sector critical skills

Annexure 3. Projected Levy Paying companies by company size and Province