1 1 E-SETA CONFERENCE INDABA HOTEL 27/11/07 Presented by: Silas M. Zimu (MD City Power) FACING THE...
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Transcript of 1 1 E-SETA CONFERENCE INDABA HOTEL 27/11/07 Presented by: Silas M. Zimu (MD City Power) FACING THE...
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E-SETA CONFERENCEINDABA HOTEL
27/11/07 Presented by: Silas M. Zimu
(MD City Power)
FACING THE REALITIES OF SKILLS SHORTAGES IN THE ELECTRICITY INDUSTRY
2
INDEX
Critical conversations relating to skills
Employment vs Available jobs
Skills Dialogue
How do we move from dialogue to actions
The bigger picture
The South African Electricity Sector Profile
The skills Agenda
3
CRITICAL CONVESATIONS
BRAIN BRAIN DRAIN DRAIN
UNEMPLOYMENT UNEMPLOYMENT
FORMS OFFORMS OF ENERGYENERGY
ELECTRICITY ELECTRICITY INFRASTRUCTURE INFRASTRUCTURE
REQUIRED REQUIRED SKILLS SKILLS
POVERTYPOVERTY
THE PACE THE PACE OF OF
ECONOMIC ECONOMIC GROWTHGROWTH
CAPACITY TO CAPACITY TO GENERATE, GENERATE, TRANSMIT &TRANSMIT &DISTRUBUTE DISTRUBUTE ELECTRICITYELECTRICITY
4
UNEMPLOYMENT vs. AVAILABLE JOBS
Financial Mail: October 26, 2007
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THE HARSH REALITY
Financial Mail: October 26, 2007
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ESCALATING TECHNICAL SKILLS GAPS IN THE SECTOR
ECONOMIC GROWTH OUTLOOK
0
1
2
3
4
5
6
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007* 2008# 2009#
Y/Y
%
* 2nd Quarter 2007# Reuters Economic Forecast
Source: Stats SA, Reuters
% o
f te
ch
nic
al skills
to c
op
e w
ith
econ
om
ic g
row
th
Financial Mail: October 26, 2007
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“The economic dialogue backed by the treasury and
the presidency, big businesses, the SETA’s and labour is
bringing fresh
insight into how to resolve SA’s most intractable
Dilemma: the need for growth path that will mop up
SA’s mass of unskilled labour “
THE SKILLS DIALOGUE
Financial Mail: October 26, 2007
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HOW DO WE MOVE FROM DIALOGUE TO ACTIONS
Reinforce on the skills debate giving input on strategies in particular, elevating the energy sector needs
Proactively engage Education and Labour ministries including all role players and businesses to recommit to joint learning and skilling initiatives as critical to the future of the country
Invest on research to magnify the potential impact of weak or good strategies for the future
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Urban Development Framework COJUrban Development Framework COJ
Energy Efficiency and Alternative EnergyEnergy Efficiency and Alternative Energy
Legal and regulatory FrameworkLegal and regulatory Framework
Global warmingGlobal warming
Generation Capacity Generation Capacity
SKILLS, SKILLS, SKILLS SKILLS, SKILLS, SKILLS
THE BIGGER PICTURE D
RIV
ER
SD
RIV
ER
S
CRITICAL SUCCESS FACTORSCRITICAL SUCCESS FACTORS
2010 World Cup and Beyond2010 World Cup and Beyond
Economic Growth and
Poverty alleviation
Researc
hers
Pla
nn
ers
Pro
ject M
an
ag
ers
Tech
nic
al s
kills
Fin
an
cia
l Man
ag
em
en
t
Experts
Vendors
Experts
VendorsInfrastructure Vendors
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SECTOR EMPLOYEE PROFILE
78%
22%
•The total number of employees in the electricity sector is 121 000
(ref: Labour Force Survey March 2006 – Stats - SA )
•In Gauteng there are 26 000 (21.5%) employees in this sector
PS, This is a total number of people working in the sector and not a reflection of the skill required in the sector
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SKILLS AGENDA
(ASGISA)Accelerated And Shared
Growth Initiative for South Africa
(ASGISA)Accelerated And Shared
Growth Initiative for South Africa
Prioritization of upskilling
and assessments
of prior learning within the workplace
Prioritization of upskilling
and assessments
of prior learning within the workplace
Effectiveness leverage
successful strategies
(Benchmark)
Effectiveness leverage
successful strategies
(Benchmark)
Industry commitment to
skills development(Learnerships)
Industry commitment to
skills development(Learnerships)
CAPACITY CREATIION CAPACITY
CREATIION
(EPWP)Expanded
PublicWorks
Programme
(EPWP)Expanded
PublicWorks
Programme
EMPLOYMENT, ECOMOMIC GROWTH,
SUSTAINABILITY
EMPLOYMENT, ECOMOMIC GROWTH,
SUSTAINABILITY
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Skills Challenge (…1)
One of the major challenges that faces South Africa currently is that of a skill
shortage.
The South African Government was mandated in 2004 to halve poverty and
unemployment by 2014. In order to achieve this Government initiated the
Accelerated and Shared Growth Initiative for South Africa (AsgiSA) which targets
an economic growth rate for the country of 6%. However one of the major
constraints identified was:
AsgiSA states as a binding constraint the “Shortage of suitably skilled labour amplified by the impact of apartheid spatial patterns on the cost of labour.
The most difficult aspects of the legacy of apartheid to unwind arise from its deliberately inferior system of education and irrational patterns of population settlement. In a period of growth it is evident that we lack sufficient skilled professionals, managers and artisans, and that the uneven quality of education remains a contributory factor. In addition, the price of labour of the poor is pushed up by the fact that many live a great distance from their place of work.”
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Current Status
Joint Initiative on Priority Skills Acquisition (JIPSA) has set a target to facilitate the training of up to 50 000 artisans by 2010.
State owned enterprises (SOEs) would play a critical role in the implementation of AsgiSA.
Commercialisation of SOEs from 1987/88 onwards coupled with the rationalisation and consolidation, which took place within government post 1994 created unforeseen consequences.
Processes were flawed in that there was no central oversight or strategic co-ordination of training within government.
Government departments (and SOEs) took decisions about the future of their training facilities without exploring whether these could still be utilised within the system.
Rationalisation and integration process inadvertently contributed towards the ‘decapacitation’ of the state.
Outsourcing of training across government departments has further contributed towards this.
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National skills development initiatives
In terms of local government and service delivery the focus is on addressing the skills problems through Project Consolidate. The skills interventions include: The deployment of experienced professionals and managers to improve project
development, implementation and maintenance of capabilities.
SALGA’s Integrated Capacity Building Strategy: Encompassing local government’s large-scale transformation and restructuring which
has created a large demand for new skills and skills upgrading. Identified the lack of “know-how” to support restructuring and the rising service
delivery demands and the weak capacity to respond to the challenge. The fact that historically much of the training in the sector has been of poor quality and
relevance and that this still remains the case today. The need to introduce a sector-wide workplace learning, facilitating, coordinating and
managing mechanism.
Eskom and AMEU Technical Training Committee: Working closely with the National Wires Workgroup Identifying the issue of duplication of Training facilities. Competing for the same resources. Optimise partnerships and the development of training material.
Eskom’s recent decision to centralise training into “one Varsity for all”
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EDI skills challenge
One of the major challenges that will face RED management is that of effectively staffing the
organisation due to:
The current South African major skills shortage.
The high number of current vacancies in the legacy organisations.
Due to the nature of the Industry fragmented policies with regards to training and development.
The limited number of instructors/trainers/coaches within the Industry.
The confusion surrounding SETAS and skills programmes, Learnerships etc.
Many of the professional staff i.e. engineers are of an age 50+.
Staff loss to other industries and overseas
Experienced staff going pension.
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Industry Priorities
Building Capacity in the Programme management environment:
COW, Project Co-ordinators, Project managers, Programme managers.
Development of COW Learnership.
Registration of skills programmes, Electrical NQF 1, NQF 2, NQF 3, COW, Pricing.
Develop entry level qualifications, e.g. Linesmen.
Creation of Centres of Excellence – Research on applied Technology.
Material Development – Governance.
ASGISA Project:
Workplace training:
Coaches
Mentors
Assessors
Retaining of qualified staff in Engineering.
Training of Contractors.
ORHVS e-learning
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Transitional plan (…1)
EDI Holdings establish a EDI National Training and Development Forum.
This Forum’s membership may comprise of the following role players:
EDI Holdings
Eskom
SALGA
Trade Unions
Energy SETA
Other pertinent SETAs (e.g. FASSETA)
Members of AsgiSA and/or JIPSA
Department of Labour
National Productivity Institute
NEDLAC
Representatives/experts in Higher Education
Human Capital Workgroup representation
Technical Training Committee
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Transitional plan (…2)
The proposed mandate for this forum may include:
The development of training and development strategies and plans for the Industry.
The engagement of relevant parties such as AsgiSA/JIPSA/SAQA/SETAs/ to promote
and advance training and development for the EDI.
To review current legislation and if required make recommendation to the relevant
bodies regarding reform.
To Consider the possible establishment of a National EDI Capacity Building Academy
that would be capable of developing individuals within the Industry, at all levels, with an
acceptable level of quality assurance, SAQA accreditation and in conjunction with
recognition higher education institution.
To ensure the alignment of EDI initiatives to other initiatives e.g. JIPSA, SALGA, Eskom
etc.
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THE END
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