CHAMBER: GLASSSKILLS PLAN FOR THE GLASS SUBSECTOR

FINAL MARCH 2014

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TABLE OF CONTENTS

1 INTRODUCTION.............................................................................................................................1

1.1 OVERVIEW OF THE SUBSECTOR.............................................................................................1

1.2 LINKAGES WITH OTHER SECTORS OF THE ECONOMY............................................................2

2 PROFILE OF THE SUBSECTOR.........................................................................................................4

2.1 ORGANISATIONS IN THE SUBSECTOR....................................................................................4

2.1.1 EMPLOYERS AND EMPLOYER ORGANISATIONS.............................................................4

2.1.2 INDUSTRY ASSOCIATIONS..............................................................................................5

2.1.3 TRADE UNIONS..............................................................................................................5

2.2 EMPLOYEES REPRESENTED BY THE SUBSECTOR....................................................................6

2.2.1 TOTAL EMPLOYMENT....................................................................................................6

2.2.2 EMPLOYMENT IN THE SUBSECTOR................................................................................6

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Please Note:

The CHIETA developed subsector skills plans for the first time in 2013/2014, to achieve the mandate of the Chambers in terms of schedule 9(a) of the SDA 97 of 1998; to consult with the 9 sub-sectors of the Chemical Sector in areas of skills development and planning. The objective of such consultation is to compile a SSP for the sector that takes into consideration areas of skills demand, and skills supply.

The CHIETA subsector skills plans are a great start but will continue to be strengthened going forward as work in progress with particular emphasis on detailed planning.

2.3 CONCLUSION.......................................................................................................................13

3 ECONOMIC GROWTH AND FACTORS IMPACTING ON THE SUBSECTOR......................................14

3.1 INTRODUCTION....................................................................................................................14

3.2 ECONOMIC GROWTH...........................................................................................................14

3.3 FACTORS THAT IMPACT ON THE SECTOR.............................................................................18

3.3.1 LEGISLATION AND REGULATIONS................................................................................18

3.3.2 INNOVATION................................................................................................................18

3.3.3 COMPETITIVE ADVANTAGE..........................................................................................18

3.3.4 SMALL, MEDIUM AND MICRO ENTERPRISES................................................................19

3.3.5 CORRUPTION...............................................................................................................19

3.3.6 INTELLECTUAL PROPERTY RIGHTS (IPRS).....................................................................20

3.3.7 PRODUCT SUBSTITUTABILITY.......................................................................................20

3.3.8 CHEAP IMPORTS..........................................................................................................20

3.3.9 EXPORT ISSUES.............................................................................................................20

3.4 CONCLUSION.......................................................................................................................20

4 THE DEMAND FOR SKILLS IN THE SUBSECTOR.............................................................................21

4.1 TRENDS IN EMPLOYMENT....................................................................................................21

4.2 THE OCCUPATIONAL COMPOSITION OF DEMAND...............................................................22

4.3 CONCLUSION.......................................................................................................................28

5 THE SUPPLY OF SKILLS TO THE SUBSECTOR.................................................................................29

5.1 NEW ENTRANTS TO THE LABOUR MARKET..........................................................................29

5.2 THE TRAINING AND DEVELOPMENT OF EMPLOYEES...........................................................29

5.3 TRAINING ISSUES IN THE GLASS SUBSECTOR.......................................................................31

5.4 CONCLUSION.......................................................................................................................32

6 SKILLS SHORTAGES IN THE SUBSECTOR.......................................................................................34

6.1 SCARCE SKILLS IN THE SUBSECTOR......................................................................................34

6.2 CONCLUSION.......................................................................................................................37

7 SKILLS PLAN FOR THE SUBSECTOR...............................................................................................38

REFERENCES…………………………………………………………………………………………………………………………………….40

ANNEXURE 1 …………………………………………………………………………………………………………………………………..42

ANNEXURE 2 …………………………………………………………………………………………………………………………………..44

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LIST OF TABLES

Table 2-1 Levy-paying companies and WSP submissions according to subsector.................................4

Table 2-2 Size of levy-paying companies and companies that submitted WSPs....................................5

Table 2-3 Highest qualifications of employees in the Glass Subsector................................................10

Table 2-4 Qualifications not indicated.................................................................................................10

Table 2-5 Occupations by age in the Glass Subsector..........................................................................12

Table 4-1 Managers in the Glass Subsector.........................................................................................23

Table 4-2 Professionals in the Glass Subsector....................................................................................24

Table 4-3 Technicians and associate professionals in the Glass Subsector..........................................24

Table 4-4 Clerical support workers in the Glass Subsector..................................................................25

Table 4-5 Service and sales workers in the Glass Subsector................................................................26

Table 4-6 Skilled and related trades workers in the Glass Subsector..................................................26

Table 4-7 Plant and machine operators and assemblers in the Glass Subsector.................................27

Table 4-8 Elementary occupations in the Glass Subsector..................................................................27

Table 5-1 Training opportunities in the Glass Subsector.....................................................................30

Table 6-1 Vacancies in the Glass Subsector.........................................................................................36

LIST OF FIGURES

Figure 2-1 Total employment in the Chemical Sector and its subsectors..............................................6

Figure 2-2 Type of appointment of employees in the Glass Subsector..................................................7

Figure 3-1 Average percentage change in Gross Value Added: 1970-2020.........................................15

Figure 4-1 Employment in the Glass Subsector compared to total employment in the Chemical Sector from 1970 to 2012...............................................................................................................................21

Figure 4-2 Distribution of workers across occupational categories in the Glass Subsector.................22

Figure 5-2 Proportion of employees who received training opportunities according to occupational category: March 2012..........................................................................................................................30

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ABBREVIATIONS AND ACRONYMS

AAAMSA Association of Architectural Aluminium Manufacturers of South AfricaADP Automotive Production and Development ProgrammeAIDS Acquired Immune Deficiency SyndromeAIS Automotive investment schemeASDA Aluminium Stockist and Distributors AssociationBRICS Brazil, Russia, India, China and South AfricaCAPEX Capital expenditureCEPPWAWU Chemical, Energy, Paper, Printing, Wood and Allied Workers UnionCFL Compact fluorescent lampCHIETA Chemical Industries Sector Education and Training AuthorityCSP Customised Sector ProgrammeDEA Department of Environmental AffairsDHET Department of Higher Education and TrainingDoE Department of Energydti Department of Trade and IndustryEPSASA Expanded Polystyrene Association of Southern AfricaETQA Education & Training Quality Assurance BodiesEU European UnionFET Further Education and TrainingFMCG Fast Moving Consumer GoodsGDP Gross Domestic ProductGHG Greenhouse GasGIEA Glass Industry Employers’ AssociationGIWUSA General Industries Workers Union of South AfricaGTRs Global Technical RegulationsHET Higher Education and TrainingHIV Human Immunodeficiency VirusHRDC-SA Human Resource Development Council of South AfricaIPAP Industrial Policy Action PlansIPR Intellectual Property RightISOE Institute of Sectoral or Occupational ExcellenceJSE Johannesburg Stock ExchangeLED Light-emitting diodeLRA Labour Relations ActNIPF National Industrial Policy FrameworkNQF National Qualifications FrameworkNRCS National Regulator for Compulsory SpecificationsNSDS National Skills Development StrategyOFO Organising Framework of OccupationsPET Polyethylene terephthalateQCTO Quality Council for Trades and OccupationsQLFS Quarterly Labour Force SurveyR&D Research and DevelopmentSABISA South African Building Interior Systems AssociationSABS South African Bureau of StandardsSACWU South African Chemical Workers UnionSAFIERA South African Fenestration Insulation Energy Rating Association

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SAGGS South African Glass & Glazing AssociationSAGI South African Glass InstituteSAHC South African Handmade CollectionSARS South African Revenue ServicesSASA Sky light Association of Southern AfricaSETA Sector Education and Training AuthoritySIC Standard Industrial ClassificationSMME Small, medium and micro enterpriseSOC-ATD TTT State-Owned Companies Artisan Development Task TeamSOCs State-Owned CompaniesSRCC Specialists Engineering Contractors CommitteeTIASA Thermal Insulation Association of Southern AfricaTPMA Thermal Panel Manufacturers AssociationUASA United Association of South AfricaWSP Workplace Skills Plan

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EXECUTIVE SUMMARY

INTRODUCTION

The Glass Chamber is one of five CHIETA Chambers and Glass is one of nine sub-sectors in the Chemical Sector. The Glass Subsector involves the manufacture of raw glass by melting various raw materials (e.g. soda ash), which is converted into products. Although the Glass Subsector can be divided into several sub-industries, the Glass Industry Employers’ Association (GIEA) divides the Glass Subsector into four main sub-industries:

Glass manufacturing (mass production); Glass processing and distribution; Fibreglass manufacturing; and Industrial mineral and manual glass production.

Economic activities in the Glass Subsector are defined by the SIC Code 341100 - Manufacture of glass and glass products and SIC Code 34112 - Manufacture of glass containers; glass kitchenware and tableware; scientific and laboratory glassware; clock and watch glasses; and other glass products not elsewhere classified.

Similar to the broader Chemical Sector, the Glass Subsector is linked to other sectors of the economy such as mining (which is responsible for the production of the raw materials used by the subsector), and various other industries that use glass as an input product, for example building and construction, automotive manufacturing, boatbuilding, aircraft manufacturing, solar energy, and creative arts and crafts.

PROFILE OF THE GLASS SUBSECTOR

In the 2011/2012 financial year 124 employers in the Glass Subsector paid skills development levies to CHIETA, which represent 8.0% of all CHIETA levy-paying companies. The 124 levy-paying companies paid 5.4% of the total levies in the Chemical Sector. More than half (54.8%) of the levy-paying companies were micro (employing between 1 and 19 people), 30.6% small (employing between 20 and 49 people), 11.3% medium size (employing between 50 and 149 people) and only 3.2% large (employing 150 and more people).

One of the four large companies in the Glass Subsector, four (28.6%) of the 14 medium size companies, eight (21.1%) of the 38 small companies and six (8.8%) of the 68 micro companies submitted WSPs. The Glass Subsector employed only 5.1% of the workers in the Chemical Sector. Most (92.4%) employees in the Glass Subsector were in permanent positions at the end of March 2012.

In terms of equity just more than half (56.5%) of the workers were African, only 18.2% were female, and 1.1% were living with a disability. African males formed the majority of workers in all occupational categories, except in the managerial, professional, and services and sales workers categories. Almost half (47.0%) of the workers had a National Senior Certificate (matric) and just more than a third (35.9%) had post-school qualifications. The average age of all workers in the Glass Subsector was 41 and 7.2% of all workers were close to retirement (between 55 and 60).

ECONOMIC PERFORMANCE AND FACTORS IMPACTING ON THE SUBSECTOR.

The demand for glass is to a large extent determined by the overall level of economic growth, particularly consumer expenditure, manufacturing and construction, which cover the main demand sectors. The subsector is negatively affected by bulk exports (e.g. exporting of wine in containers, not bottles) and cheap imports (such as windscreens). The average percentage change in gross value added (GVA) over five-year periods from 1970 to 2010 shows that there was much fluctuation in the Glass and Glass Products figures over with contraction of the industry in the 1995-2000 period.

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However, it is estimated that the subsector will show positive growth at an average rate of 2.1% during the 2010-2015 period and 5.3% during the 2015-2020 period.

Some of the factors impacting on the subsector are innovation, intellectual property rights, substitutions for glass, and cheap imports. The glass industry has been innovative by introducing environmentally friendly products. Glass faces strong competition from alternative materials such as plastic, metal and cardboard. South Africa has high production standards and according to some in the Glass Subsector, much too high to produce at a competitive price. Manufacturers of glass have to compete against cheap Chinese imports that are of substandard quality.

THE DEMAND FOR SKILLS IN THE SUBSECTOR

The demand for labour in absolute numbers in the Chemical Sector has been declining steadily over the last two decades, with investments in capital equipment being largely used to replace labour. The reduction in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards the higher level skills. The exception to this rule is the Glass Subsector, which also lost jobs overall, but has retained the same skills composition with reductions in employment affecting all skills levels.

In 2012 more than half (54.8%) of the workers were craft and related trades workers, plant and machine operators and assemblers, and people working in elementary occupations. Close to a fifth (17.9%) of workers were technicians and associate professionals, while professionals constituted only 6.2% of total employment. Just more than a tenth (12.1%) of all employees worked in management positions.

THE SUPPLY OF SKILLS TO THE SUBSECTOR

The supply-side of the labour market consists of the stock of skills – the skills currently employed in or available for work in the subsector and the flow of skills – the flow of new entrants into the market. In the analysis of the flow of skills the following is considered: the output from the basic education system, the further education and training colleges and higher education and training institutions. Work-based training such as apprenticeships and learnerships also plays an important role in the flow of new entrants to the market.

In respect of the supply of new skills to the subsector there has been substantial growth in the numbers of new graduates from universities and universities of technology in certain engineering fields. In terms of average annual output of national diplomas, growth is reported at 7% for diplomas in chemical engineering and technology and 6% for first degrees in the same field. Despite these positive growth trends, increases have not yet been sufficient to meet the needs of the national economy and the Chemical Sector in particular. In order to ensure future growth it will be necessary to support higher education institutions through a variety of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace-training opportunities for students from the universities of technology.

The output from the school system stays a concern in respect of the following: inadequate (in terms of quantity and quality) supply of school leavers with Mathematics and Physical Science passes that can pursue studies to become engineers, technologist, technicians and artisans; and inadequate education levels of the general workforce that enters the Chemical Sector without previous training. The supply of new skills from FET colleges into the Chemical Sector has traditionally been very limited. However, government’s recent focus on increasing both the quality and quantity of output from the public FET colleges indicates that this sector may in future play a more important role in the supply of skills to the Chemical Sector.

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The skills of current employees need to be augmented in the workplace in order to ensure that workers acquire the skills necessary for specific positions, that they can progress in career paths and that they remain abreast of new technologies and developments in their specific fields. Employers are to a large extent responsible to ensure that employees are afforded further education and training opportunities.

In 2011/2012 training opportunities were afforded to just more than two thirds (68.5%) of employees in the Glass Subsector. A quarter (25.6%) of plant and machine operators and assemblers and about a fifth of technicians and associated professionals (19.8%) and skilled and trade workers (19.1%) respectively, had access to training. Training opportunities were also afforded to just more than a tenth (13.1%) of managers. In total 12 436 training opportunities were afforded to employees (one employee could have accessed to more than one training opportunity). Most (42.5%) training opportunities in the subsector were job-specific development programmes, nearly a quarter (24.0%) were short courses, a fifth (20.8%) were induction or other courses, and around a tenth (11.0%) were skills programmes.

Stakeholders mentioned during the workshop that there are a number of issues concerning training for the subsector. The issues relate inter alia to funding, non-accredited short courses, quality of training, partnerships with training institutions, training for new technology, generic versus specialised training, protecting competitive advantages, and cumbersome administrative processes regarding learnerships.

SKILLS SHORTAGES IN THE SUBSECTOR

Of the 19 organisations whose WSPs were approved by the CHIETA, 5 (26.3%) indicated that they experienced a scarcity of skills. The total number of people reported to be needed in occupations in which there were skills shortages is 178; this equates to 2.2% of total employment in the subsector. Stakeholders reiterated the difficulty in quantifying scarce skills and discussions provided some nuanced information not indicated in WSPs. Some standardisation needs to be attempted in order to establish trends over time. In future, scarce skills numbers will influence grant applications. However, evidence of shortages of skills especially for automotive fitters and autoglaciers was received.

The CHIETA is currently engaged in a range of partnerships, agreements and plans to contribute to both the development of new skills for the sector as well as the development of skills within the existing workforce. These initiatives range from support for further and higher education institutions and partnerships with government and industry associations.

SKILLS PLAN FOR THE SUBSECTOR

Stakeholders that attended the skills planning workshop for the subsector in June 2013, identified several initiatives that should continue and/or put in place to ensure that the necessary skills will be available to the Glass Subsector. The most important initiatives relate to training at the ISOE in Springs, the training and development of artisans, assisting new entrants to get access to training, to promote professionalism in the industry, to adapt training in order to adhere to legislation regarding the green economy, and training to address health risks in the subsector.

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1 INTRODUCTION

1.1 OVERVIEW OF THE SUBSECTOR

The Glass Chamber is one of five CHIETA Chambers and Glass is one of nine sub-sectors. The Glass Subsector involves the manufacture of raw glass by melting various raw materials (e.g. soda ash), which is converted into products. Although the Glass Subsector can be divided into several sub-industries, the Glass Industry Employers’ Association (GIEA) divides the Glass Subsector into four main sub-industries:1

Glass manufacturing (mass production); Glass processing and distribution; Fibreglass manufacturing; and Industrial mineral and manual glass production.

Economic activities in the Glass Subsector are defined by the SIC Code 341100 - Manufacture of glass and glass products and SIC Code 34112 - Manufacture of glass containers; glass kitchenware and tableware; scientific and laboratory glassware; clock and watch glasses; and other glass products not elsewhere classified.

Similar to the broader Chemical Sector, the Glass Subsector is linked to other sectors of the economy such as mining, building and construction, automotive manufacturing, boatbuilding, aircraft manufacturing, solar energy, and creative arts and crafts.

There are various types of glass, which are used to manufacture a variety of products used in these sectors: Container glass, flat glass, domestic glass, glass wool fibre, reinforcement fibres, optic fibre, special glass and glass frits:2

Container glass is used predominantly in packaging bottles for drinks and jars for food, and to a lesser extent in the packaging of pharmaceutical and perfume/cosmetics products.3 Flat glass is used to make windscreens and windows for automobiles and other forms of transport, windows and facades for houses and buildings, as well as solar energy equipment like solar thermal panels and photovoltaic modules. It is also used, in much smaller quantities, for many other applications like interior fittings, decoration, appliances and electronics. Flat glass is manufactured in flat sheets and processed either as float glass, sheet glass or rolled glass. Glass produced by way of the float process represents the overwhelming majority of production. The domestic glass industry is an established mature business and includes products such as ovenware, drinking glasses and giftware. Giftware ranges from jewellery to home décor products. Glass wool fibre is typically used in building insulation. Reinforcement fibres are used in the strengthening of composite materials, including thermosetting resins and thermoplastics. Optic fibre industry products have a relatively high value and there is significant international trade in these products. The special glass industry covers a range of products such as lighting glass, cathode-ray tubes, and specialised scientific and medical items such as optical glass and pharmaceutical tubing glass. Finally, glass frits are produced for glazes and enamels, which are used for protecting and decorating ceramic materials and metals.

1 GIEA, (2010). The Glass Industry Employers’ Association. 2 ECORYS SCS Group, (2008). FWC Sector Competitiveness Studies – Competitiveness of the Glass Sector. Rotterdam: ECORYS.3 IPPC, (2001). Integrated Pollution Prevention and Control (IPPC) Reference Document on Best Available Techniques in the Glass Manufacturing Industry. Brussels: European Commission.

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1.2 LINKAGES WITH OTHER SECTORS OF THE ECONOMY

As mentioned above, glass is produced for use in various other sectors of the economy. The markets for which glass is produced have a direct influence on the demand for glass products and on the specific requirements glass products must adhere to. At the same time, developments in the Glass Subsector have a direct influence on the sectors that constitute its markets. Some of the main sectors with which the glass industry link are the building industry, the automotive industry, consumer, food and beverages industry, and the pharmaceutical industry.

In the building industry, glass strongly influences architectural design and glass technologies allow large buildings to be energy efficient by optimising the use of natural daylight, and to protect the environment.4

The market for automotive glass consists of original equipment supplied to car manufacturers for new vehicles and automotive glass replacement products supplied to the aftermarket, usually following damage. Globally in 2009, demand for replacement glass represented 17% of the total demand for automotive glass, against 83% for original equipment glass. With high crime levels in the country, glass replacement can play an increasing role in South Africa.5

Although the solar energy market for flat glass is relatively small in volume compared to the building and automotive markets, it is fast expanding due to the increasing demand for renewable energy. Renewable energy is a strong driver for innovations and extra clear glass with low iron oxide content is typically used in solar applications.

Glass on boats needs to satisfy a wide range of performance criteria, especially to meet international standards governing marine safety. Specifications for marine windows include resistance to high pressure; thermal and solar protection; defrosting and demisting; and ballistic protection. High speed vessels need to be equipped with highly resistant, but still very light glazing. Glass on commercial and cruise ships are, however, not very different from the glass used on cars.

The advanced materials intervention is one of the IPAP sectoral interventions. Advanced materials are those with superior properties such as toughness, hardness, lightweight, durability and elasticity. South Africa’s advanced materials industry has pockets of excellence in research situated in universities, science centres and manufacturing industry clusters that are internationally competitive.6 Glass strength is of particular importance in aircraft. Specially engineered glass protects against the static electric charging that can occur during flights. Glass technology applied to aircraft also includes protection against solar radiation, electro-magnetic radar beams and damaging effects of bird strikes against the windscreen. Flat glass is also used in many other products such as household appliances, office equipment, greenhouses and protective shielding against radiation (including nuclear radiation).

Products of the hollow glass industry can be divided into: Container glass such as used in bottles and jars; flaconnage, which is used in higher value containers for medicines and perfumes; and tableware products or various domestic glass products.7

The thin glass sheet market is dominated by two production methods: Float and fusion. Both production methods require extremely precise temperature and power control in order to be capable of producing flawless molten glass and forming thin glass sheets to the highest standards.

4 http://www.glassforeurope.com/en/industry/index.php. Accessed 3 June 2013.5 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.6 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.7 ECOFYS, (2009). Methodology for the free allocation of emission allowances in the EU ETS post 2012: Sector report for the glass industry. Karlsruhe: Fraunhofer-Institut for Systems and Innovation Research ISI.

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The demand for ultra-thin sheet glass increased substantially over the last 20 years. Thin film transistor and liquid crystal glass is found in many applications like computer displays, television screens, mobile phones, e-books and tablet devices. Ultra-thin glass is also used as substrate for thin film solar applications, as well as in newly developed high power automotive batteries and new lighting devices.8

8 http://www.eurotherm.com/industries/glass/tft-ultra-thin-glass/. Accessed 28 May 2013.

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2 PROFILE OF THE SUBSECTOR

This part of the report provides a profile of the Glass Subsector. It starts by describing the different role-players in the subsector such as employers, industry associations, employer associations and trade union active in the industry. It also describes the employees working in the subsector as at the end of March 2012.

2.1 ORGANISATIONS IN THE SUBSECTOR

2.1.1 EMPLOYERS AND EMPLOYER ORGANISATIONS

In the 2011/2012 financial year 124 employers in the Glass Subsector paid skills development levies to CHIETA, which represents 8.0% of all CHIETA levy-paying companies (refer to Table 2-1). These companies paid 5.4% of the total levies in the Chemical Sector. Only nineteen (15.3%) of all levy-paying companies in the Glass Subsector submitted WSPs.

Table 2-1 Levy-paying companies and WSP submissions according to subsector

SubsectorNumber of

levy-paying

companies

% WSPsubmissions

% of totalcompanies

in sector

% of totalcompanies

in subsector

% of total levies paid

Base Chemicals 314 20.4 127 8.2 40.4 13.2

Explosives 7 0.5 2 0.1 28.6 1.8

Fertilisers 89 5.8 23 1.5 25.8 8.2

FMCG 162 10.5 72 4.7 44.4 3.5

Glass 124 8.0 19 1.2 15.3 5.4

Petroleum 251 16.3 85 5.5 33.9 43.2

Pharmaceuticals 131 8.5 64 4.2 48.9 12.9

Speciality Chemicals 266 17.3 113 7.3 42.5 7.9

Surface Coatings 118 7.7 60 3.9 50.8 3.5

Other 80 5.2 6 0.4 7.5 0.4

Total 1 542 100.0 571 37.0 100.0

Source: SARS Levy data, 2011/2012; WSP submissions, June 2012.

In the 2011/2012 financial year, more than half (54.8%) of the levy-paying companies were micro (employing between 1 and 19 people), 30.6% small (employing between 20 and 49 people), 11.3% medium size (employing between 50 and 149 people) and only 3.2% large (employing 150 and more people) (Table 2-2). One of the four large companies in the Glass Subsector, four (28.6%) of the 14 medium size companies, eight (21.1%) of the 38 small companies and six (8.8%) of the 68 micro companies submitted WSPs.

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Table 2-2 Size of levy-paying companies and companies that submitted WSPs

Glass Levy-paying companies WSP submissionsN % N % of levy-paying companies

Large 4 3.2 1 25.0Medium 14 11.3 4 28.6Small 38 30.6 8 21.1Micro 68 54.8 6 8.8Total 124 100.0 19 15.3Source: SARS Levy data, 2011/2012; WSP submissions, June 2012.

Employers in the Glass Subsector have established their own organisation, the Glass Industry Employers’ Association (GIEA). The Association is registered in terms of the Labour Relations Act, 1995 (LRA), and has a particular role to play in representing the interests of its members in labour-related matters, especially in regard to the establishment of wage rates and other conditions of employment. Of the estimated 8 000 people employed in the subsector, 6 400 are in the service of GIEA members. Of those, some 4 600 employees fall within the scope of the Bargaining Unit, for whom conditions of employment are determined by industrial agreement, and negotiated centrally between GIEA and the relevant trade unions. These negotiations take place under the auspices of the National Bargaining Council for the Chemical Industry.9

2.1.2 INDUSTRY ASSOCIATIONS

The Association of Architectural Aluminium Manufacturers of South Africa (AAAMSA) Group administers, besides the architectural aluminium industry, the glass, ceiling and partitioning, and insulation industries represented by various associations. Its main objective is to promote commercial and group interest. The activities of AAAMSA associations are in fenestration, glass and glazing, insulation, and ceiling and partitioning industries represented by the following industry associations: South African Glass & Glazing Association (SAGGS); South African Glass Institute (SAGI); South African Building Interior Systems Association (SABISA); Sky light Association of Southern Africa (SASA); Aluminium Stockist and Distributors Association (ASDA); Thermal Insulation Association of Southern Africa (TIASA); Expanded Polystyrene Association of Southern Africa (EPSASA); Thermal Panel Manufacturers Association (TPMA); Specialists Engineering Contractors Committee (SRCC); and the South African Fenestration Insulation Energy Rating Association (SAFIERA).10

2.1.3 TRADE UNIONS

The following are the main trade unions active in the Chemical Sector:11

Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU)

General Industries Workers Union of South Africa (GIWUSA)

Solidarity

South African Chemical Workers Union (SACWU)

United Association of South Africa (UASA)

These trade unions are all active in the CHIETA structures and the first four are members of the National Bargaining Council for the chemical industry. 9 GIEA, (2010). The Glass Industry Employers’ Association. 10 http://www.aaamsa.co.za/about.html. Accessed 5 June 2013. 11 CHIETA. Five year Sector Skills Plan for the Chemical Sector: Annual update 2013-2018.

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2.2 EMPLOYEES REPRESENTED BY THE SUBSECTOR

2.2.1 TOTAL EMPLOYMENT

Figure 2-1 below shows the total employment in the Chemical Sector. The Glass Subsector is relatively small employing only 5.1% of the workers in the Chemical Sector.

Base Chemicals 14.4% (22 466)

Explosives3.4% (5 287)

Fast Moving Consumer Goods15.2% (23 794)

Fertilisers3.6% (5 651)

Glass5.1% (8 002)

Petroleum28.4% (44 371)

Pharmaceuticals14.2% (22 100)

Speciality Chemicals9.9% (15 381)

Surface Coatings5.3% (8 261)

Other0.5% (786)

Figure 2-1 Total employment in the Chemical Sector and its subsectorsSource: WSP submissions, June 2012.

2.2.2 EMPLOYMENT IN THE SUBSECTOR

2.2.2.1 TYPE OF EMPLOYMENT

Most (92.4%) employees in the Glass Subsector were in permanent positions. Only a few (2.7%) were contractors and 5.0% were temporary workers (Figure 2-2).

Contractor 2.7% (595)

Permanent 92.4% (20 734)

Temporary 5.0% (1 117)

Figure 2-2 Type of appointment of employees in the Glass Subsector

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Source: WSP submissions, June 2012.

2.2.2.2 EQUITY PROFILE

Race and gender

The majority of workers in the Glass Subsector were African (56.5%), Coloured (14.9%) and Indian (4.3%). Whites constituted about a quarter (24.3%) of the workforce (Figure 2-3). In terms of gender the majority (81.2%) were male (Figure 2-4).

African 56.5% (4 523)

Coloured

14.9% (1 189)

Indian 4.3% (342)

White 24.3%

(1 948)

Female 18.2% (1 458)

Male 81.8% (6 544)

Figure 2-3 Population group of employees in the Glass Subsector

Figure 2-4 Gender distribution of employees in the Glass Subsector

Source: WSP submissions, June 2012.

In the Glass Subsector, African males formed the majority of workers in all occupational categories, except in the managerial, professional, and services and sales workers categories (see Annexure 1). Among the managers, the majority (42.5%) were White males and nearly a quarter African males (23.4%). In the professional category, White males and African males each constituted just over a quarter (27.6% and 25.4% respectively), while the rest of the groups each formed less than 20%. Although White females constituted a quarter of the service and sales workers category, African men formed the second largest group (19.7%) in this category. Africans and males formed the majority in all other occupational groups (technicians and associate professionals; clerical support workers; skilled and trade workers; plant and machine operators and assemblers; elementary occupations; and learners) in the Glass Subsector.

Women are generally under-represented in the Glass Subsector. Looking at the employment of African women as such in the Glass Subsector, the majority of them were employed as elementary workers (20.9%) and plant and machine operators and assemblers (20.2%). Although 15.6% of all African women in the subsector were employed as technicians and associate professionals; 11.5% as professionals and 11.4% as clerical and sales workers; only 8.2% of them were in managerial positions. More African women also need to become artisans, as only 7.5% of all African women employed in the subsector were employed as skilled and trades workers. It is possible that in future more African women could move into higher level occupations, as they formed the third most (14.9%) of all the learners in the Glass Subsector. However, almost two thirds (61.7%) of learners were African males and close to a quarter (19.1%) were White males.

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Disability

There were 892 employees with disabilities working in the Chemical Sector as a whole. This equates to 0.6% of all employees in the sector. Figure 2-4 below displays the proportion of disabled employees by subsector. The Glass Subsector has the highest proportion of disabled employees – 1.1%.

Stakeholders noted that it is difficult to employ disabled people (depending on their disability) in certain occupations due to health and safety requirements. It is particularly difficult in key production occupations. However, there was an acknowledgement that more effort needs to be made to identify those occupations in which people with disabilities can be employed and to recruit people with disabilities for these occupations. In addition, the CHIETA will work with stakeholders on training around disability awareness. The CHIETA is supporting projects aimed at people with disabilities through the discretionary grants.

Base Chem

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esFM

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Figure 2-5 Percentage employees with disabilities per subsector: March 2012

Source: WSP submissions, June 2012.

2.2.2.3 EDUCATIONAL QUALIFICATIONS

In the 2011/2012 mandatory grant submissions, employers provided information on the qualifications of 73.6% of the workers employed in the Glass Subsector. Almost half (47.0%) of these employees had a National Senior Certificate (matric) and 35.9% had post-school qualifications. Only 3.4% had very limited schooling and had not reached NQF Level 1 (Table 2-3).

8

Table 2-3 Highest qualifications of employees in the Glass Subsector

Highest qualification N %Below Level 1 201 3.4

NQF Level 1 154 2.6

NQF Level 2 340 5.8

NQF Level 3 308 5.2

NQF Level 4 2 771 47.0

NQF Level 5 781 13.3

NQF Level 6 945 16.0

NQF Level 7 250 4.2

NQF Level 8 106 1.8

NQF Level 9 31 0.5

NQF Level 10 5 0.1

Total 5 892 100.0

Undefined 2 110

Total subsector employment 8 002

Source: WSP submissions, June 2012.

There was no indication of the highest qualification levels of a substantial number (2 110) of workers in the Glass Subsector (Table 2-4). Most of these workers were in core occupations and over a quarter (27.9%) of them were skilled agricultural, forestry, fishery, craft and related trades workers; nearly a quarter (23.5%) were technicians and associate professionals; 16.3% were plant and machine operators and assemblers; and 10.6% were managers. No information was provided on the qualification levels of 2.8% of service and sales workers, 4.6% of clerical support workers, 4.9% of professionals, and 8.3% of elementary workers.

Table 2-4 Qualifications not indicated

Occupations in which qualifications were undefined N %Managers 224 10.6Professionals 103 4.9Technicians and associate professionals 496 23.5Clerical support workers 97 4.6

9

Occupations in which qualifications were undefined N %Service and sales workers 58 2.8Skilled agricultural, forestry, fishery, craft and related trades workers

589 27.9

Plant and machine operators and assemblers 344 16.3Elementary occupations 174 8.3Learners 26 1.2Total 2 110 100.0Source: WSP submissions, June 2012.

10

2.2.2.4 AGE

The average age of employees in the Glass Subsector was 41 (Table 2-5). Almost a third (31.1%) were between the age of 25 and 34 and 28.5% were between 35 and 44. Only 2.9% were younger than 25 and only 1.3% were older than 65.

Given the central role of artisans in the Glass Subsector, it is positive that artisans (skilled agricultural, forestry, fishery, craft and related craft workers) had a slightly lower average age (40) than the Glass Subsector as a whole and only 4.9% of this group were nearing retirement. Other core occupations such as professionals; technicians and associate professionals; plant and machine operators and assemblers; and elementary workers, all had an average age of 41. Clerical support workers had a slightly higher average age (42) than others in the subsector, as well as the highest percentage (12.5%) nearing retirement. The average age (45) of managers was the highest and 11.6% of managers neared retirement age. However, managers of own companies are not compelled to retire at a specific age.

11

Table 2-5 Occupations by age in the Glass Subsector

Occupations

Age groups

Total Average age

Close to retirement

(55-60)15-24 25-34 35-44 45-54 55-64 65+

N % N % N % N % N % N % N % N %

Managers 2 0.2 153 16.0 338 35.3 276 28.8 169 17.7 20 2.1 958 100.0 45 111 11.6

Professionals 9 1.8 190 38.6 137 27.8 96 19.5 47 9.5 13 2.7 491 100.0 41 19 3.9

Technicians and associate professionals 45 3.2 437 31.0 397 28.2 366 26.0 140 9.9 24 1.7 1 410 100.0 41 73 5.1

Clerical support workers 8 1.4 163 29.0 159 28.2 137 24.4 89 15.8 7 1.2 562 100.0 42 70 12.5

Service and sales workers 10 6.8 48 32.6 39 26.5 31 21.1 17 11.4 2 1.5 148 100.0 39 11 7.6

Skilled agricultural, forestry, fishery, craft and related trades workers 34 2.3 521 35.1 460 31.1 326 22.0 132 8.9 9 0.6 1 482 100.0 40 73 4.9

Plant and machine operators and assemblers 57 2.8 695 34.2 519 25.5 465 22.9 275 13.5 24 1.2 2 035 100.0 41 137 6.7

Elementary occupations 21 2.6 224 27.8 229 28.4 201 25.0 126 15.6 3 0.4 804 100.0 41 83 10.3

Learners 47 44.7 55 52.1 2 2.1 0.0 1 1.1 0.0 105 100.0 26 0 0.0

TOTAL 233 2.9 2 486 31.1 2 280 28.5 1 898 23.7 996 12.4 102 1.3 7 895 100.0 41 577 7.2

Source: WSP submissions, June 2012.

12

2.3 CONCLUSION

The Glass Subsector is a relatively small subsector and employs approximately 5% of the total Chemical Sector’s workforce. Although the subsector is small, it has linkages with several other economic sectors and it contributes to the growth and development of those sectors.

The Glass Subsector employs mainly people with mid-level skills – i.e. people with matric and some post-school education and the number of professionals and people with university degrees is limited. Skills development initiatives for this subsector are likely to focus mainly on learnerships and other forms of in-service training.

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3 ECONOMIC GROWTH AND FACTORS IMPACTING ON THE SUBSECTOR

3.1 INTRODUCTION

The Glass Subsector makes up 1% of manufacturing by output, but only contributes 0.5% of total sector sales. The demand for glass is determined to a large extent by the overall level of economic growth, particularly consumer expenditure, manufacturing and construction, which cover the main demand sectors. In addition, the subsector is affected by bulk exports (e.g. exporting of wine in containers, not bottles) and cheap imports (such as windscreens).12

3.2 ECONOMIC GROWTH

The global macroeconomic outlook has deteriorated as a result of the credit crunch and this has resulted in a lack of business and consumer confidence in economies of the world. While the slowdown affects all industries, some are affected more than others and within the Glass Subsector, some sub-industries are more exposed.13 Notwithstanding, the Glass Subsector in South Africa is on a growth path.14

Figure 3-1 below reports the average percentage change in gross value added (GVA) over five-year periods from 1970 to 2010 in comparison with the total Petroleum, Chemicals and Glass Sector, as well as the total economy. It also shows the projections up to 2020. It seems that there was much fluctuation in the Glass and Glass Products figures over the years with negative growth in the 1995-2000 period. However, it is estimated that the subsector will show positive growth with an average of 2.1% during the 2010-2015 period and 5.3% during the 2015-2020 period.

1970

-197

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Glass & glass products Total petroleum, chemicals & glassTotal economy

12 CHIETA, (2013). Five Year Sector Skills Plans for the Chemical Sector: Annual Update 2013 – 2018.13 ECORYS SCS Group, (2008). FWC Sector Competitiveness Studies – Competitiveness of the Glass Sector. Rotterdam: ECORYS.14 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.

14

Figure 3-3 Average percentage change in Gross Value Added: 1970-2020

Flat Glass

In 2009 the global market for flat glass was approximately 52 million tonnes (dominated by Europe, China and North America, which combined accounted for around three-quarters of global demand for flat glass). During periods of economic growth and high demand for flat glass, annual growth is around 3%, whereas during economic downturns or recessions, the flat glass sector is hit hard. Demand for flat glass is particularly sensitive to economic cycles, because of its high dependency on the building and automotive industries. Globally flat glass represents 30% of total glass production (which includes the production of both float and rolled glass). Rolled glass demand is expected to grow as new facilities are commissioned for the manufacture of high-transmittance glass for use in solar applications.15 Recycling, induced by environmental policies and other mechanisms, will result in the evolvement of cullet markets in those countries where it does not yet exist.16

In an effort to increase industrial competitiveness and broaden the participation of enterprises in the economy, the dti provides financial support to qualifying companies in various sectors of the economy. The flat glass industry can indirectly be positively influenced by the new project of BASF Construction Chemical SA (Pty) Ltd, which focuses on environmentally friendly systems. The company endeavours to expand into neighbouring countries, potentially developing into a regional market with stable growth.17

With weak household spending, the demand for flat glass in the automotive sector could decline. However, the dti’s automotive investment scheme (AIS) - designed to grow and develop the automotive sector through investment in new and/or replacement models and components - can indirectly be beneficial to the flat glass industry. South Africa has exceptional automotive production facilities, readily available raw materials, and good access to markets in Africa and the southern hemisphere. The intention of the new Automotive Production and Development Programme is to expand the automotive vehicle production to 1.2 million vehicles per annum by 2020. 18 This can positively influence growth in the flat glass industry.

Flat glass is also used in the boatbuilding industry, which is one of the new areas of intervention indicated in the Industrial Policy Action Plan (IPAP). In 2011, almost 10 000 boats of all types were manufactured in South Africa. Exports grew by 49% in 2011, increasing from R733 million in 2010 to the current level of R1.1 billion. Imports in the sector fell from R710 million in 2010 to R217 million in 2011, representing a contraction of 69%.19

Another area of growth globally is the energy efficient LED bulb industry, led by Japan, Korea, Taiwan, Europe, the USA and China. With new technology, using inexpensive silicon wafers, this industry promises to bring LEDs into competitive pricing with CFLs and incandescents to become the standard for most lighting needs.20 In 2010 there were 12 companies in South Africa involved in LED lighting manufacturing, which made South Africa one of 55 countries involved in LED lighting manufacturing.21 Lighting provision is part of the building industry, but bulb manufacturing is not a major industry in the country.22

Domestic Glass

15 http://www.glassforeurope.com/en/industry/index.php. Accessed 3 June 2013.16 ECOFYS, (2009). Methodology for the free allocation of emission allowances in the EU ETS post 2012: Sector report for the glass industry. Karlsruhe: Fraunhofer-Institut for Systems and Innovation Research ISI.17 dti, (2013). 2012/13 Incentive Performance: Selected Projects. Pretoria: dti.18 http://www.southafrica.info/business/economy/policies/automotive-290911. Accessed 10 June 2013.19 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.20 http://eartheasy.com/live_energyeff_lighting.htm. Accessed 27 June 2013.21 http://energy.sourceguides.com/businesses/byGeo/byC/SouthAfrica/SouthAfrica.shtml. Accessed 27 June 2013.22 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.

15

A slowdown in housing markets translates into fewer purchases of new household glassware. Domestic glass makers operating at the top end are especially vulnerable, as consumers react to the economic uncertainty and delay expensive/luxury purchases. The ceramics industry faces similar challenges and as such, frits producers face a tough time ahead given their relationship with the ceramics industry.23

Linked to tourism is the creative industry, which is one of the sectors with the potential to make an increasingly positive impact on both urban and rural local economies and grow significant numbers of new jobs. In 2011 the direct contribution of tourism to GDP rose by 5%, well above the 3.1% growth in the economy in 2011-12.24 The Department of Tourism is implementing regional tourism support packages, which range from infrastructure development, skills development programmes, rural tourism programmes and strategic niche tourism market development. Operations in the craft sector are typically small-scale, with hand-processing being the main contributor to the end-product. Production in this sector is classified in terms of material, which includes glass, textile, clay, etc.; product type (homeware, giftware, etc.); technique (beading, weaving); and design style (traditional, contemporary, etc.). The global market for craft is on a steady upward curve and to help the local craft industry ride this curve, the dti’s Customised Sector Programme for Craft (CSP Craft) seeks to address a number of the key challenges facing the sector by support interventions such as the South African Handmade Collection brand (SAHC) initiative.25

Container Glass

Container glass is part of the metal, glass and plastic packaging industry. The Americas account for 35% of the global metal, glass and plastic packaging market value; Europe accounts for a further 28.6%, while Asia-Pacific and the rest of the world account for 28.1% and 8.2% respectively. In 2015, the global metal, glass and plastic packaging market is forecast to have a value of USD368 million (R3 449 million), an increase of 20.8% since 2010. The compound annual growth rate of the market over the period 2010–15 is predicted to be 3.9%.26

The container glass market specifically is expected to improve significantly in coming years, yet at the same time the trend away from container glass in developed economies could slow down production. Recycling legislation in especially developed markets could impact on the production of glass containers.27 A key opportunity for glass bottles in the medium term will revolve around the continued growth in demand for wine worldwide, although an economic recession would have a significant impact upon this market, as well as on beer markets. However, given peoples’ need to eat and drink, it is unlikely to be as sharp a slowdown as for instance in the flat glass industry. Similarly, demand for pharmaceutical-related glass products in the container glass industry should hold up, as demand for healthcare is not cyclical and should remain robust even in a downturn.28

The dti’s financial support to qualifying companies in various sectors of the economy can be to the advantage of the container glass industry. One of the projects that is receiving financial support from the dti is the Brownfields (Expansion) Tiger Bands Limited project, which aims to optimise site layout that incorporates bulk manufacturing and packing technologies, as well as labour utilisation and in-house manufacturing capacity building best practices.29 23 ECORYS SCS Group, (2008). FWC Sector Competitiveness Studies – Competitiveness of the Glass Sector. Rotterdam: ECORYS.24 Statistics South Africa, (2013). Tourism Satellite Account for South Africa, final 2008 and 2009 and provisional 2010 and 2011. Pretoria: Stats SA. 25 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.26 DATAMONITOR, (2011). Global Metal, Glass & Plastic Packaging. New York: Datamonitor Plc. 27 Henderson, J. (2005). Glass containers: the global market. International Glass Review, Summer 2005: 17-20. 28 ECORYS SCS Group, (2008). FWC Sector Competitiveness Studies – Competitiveness of the Glass Sector. Rotterdam: ECORYS. 29 dti, (2013). 2012/13 Incentive Performance: Selected Projects. Pretoria: dti.

16

Another positive is that the board of Nampak - the JSE-listed packaging manufacturer - approved capital expenditure (capex) of about R1 billion for the installation of a third glass furnace for its Nampak Glass division.30

3.3 FACTORS THAT IMPACT ON THE SECTOR

3.3.1 LEGISLATION AND REGULATIONS

Due to the nature of the activities in the Glass Subsector it is subjected to the standard legislation and regulations in terms of the following: occupational health and safety; environmental conservation and management; customs and excise; and intellectual property rights. There is no legislation relating to the Glass Subsector specifically.

3.3.2 INNOVATION

The European Union (EU) is seen as a major innovator in the global glass industry and as leading the world in flat glass innovation.31 The high level of United Kingdom (UK) innovation is largely attributed to the large numbers of science and technology graduates in the UK and their relationships with and proximity to established glass manufacturers and processors. This continuous innovation ensures that the UK and the EU remain dominant players.32

South Africa has in the past developed pockets of technological leadership, which are related to the mining, chemicals, agriculture, energy, defence and aerospace industries.33 The Glass Subsector in the country can also be more innovative by building on historical industrial strength and become more competitive, especially in solar heating and other green innovation. 34

Another possible area for innovation relates to the energy sources utilised by the glass industry. Using gas for heating raw materials to produce glass is for instance cleaner than oil and more innovative technology should be applied to increase cleaner glass production. 35 Such innovation can also improve the competitiveness of the local glass industry. Energy is a key driver of production costs and could accounts for over 20% of firms’ production costs. Technological development can increase the efficiency of energy usage in production and can lead to considerable savings.36

3.3.3 COMPETITIVE ADVANTAGE

The ability of large EU firms to control the production and distribution of unique, innovative products that cannot be copied, is one reason why they continue to be profitable. 37 Foss and Knudsen (2003) state that “firms that control valuable and rare resources possess a competitive

30 Esterhuizen, I. (2013). Nampak to spend R1.6bn on glass, beverage can expansion projects. Engineering News, 8 February 2013.31 British Glass, (2007). Glass Bilateral Meeting With Government (19 November 2007),‘Notes to Government’. 32 ECORYS SCS Group, (2008). FWC Sector Competitiveness Studies – Competitiveness of the Glass Sector. Rotterdam: ECORYS.33 dti, (2007). A National Industrial Policy Framework.34 Pogue, T. (2007). Mobility of Human Resources and Systems of Innovation: A Review of Literature. Cape Town: HSRC Press. 35 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.36 ECORYS SCS Group, (2008). FWC Sector Competitiveness Studies – Competitiveness of the Glass Sector. Rotterdam: ECORYS.37 Ibid.

17

advantage and will be able to implement superior strategies”.38 This appears to be the case amongst innovative large firms and this emphasises the need for comprehensive research and development.

Small, medium and micro enterprises

Small, medium and micro enterprises (SMMEs) “… are well equipped to provide innovative solutions and transform challenges into business opportunities”.39 SMMEs can for instance focus on markets that have a preference for unique, craft and specialised products. The growth of wine, spirits and craft beer markets and the popularity of natural beverages seem to have a positive effect on glass as a primary packaging material. Consumers have shown interest in craft style beverages such as craft spirits and beer, and many of those brewers and distillers have selected glass packaging for their brands.40 Large suppliers concentrate mainly on large-scale and automated manufacturing where there is a greater necessity for economies of scale,41 leaving space for SMMEs to focus on glass products that are produced through more labour intensive processes.

Challenges that SMMEs face include competition from established brands of large players, tightening operating conditions, laws and regulations, trade barriers, volatility of the Rand, high capital outlay, and fixed costs involved in setting up and running production plants.42 In South Africa there is not enough information on SMMEs, especially in the glass industry and this needs to be addressed.43

3.3.4 ANTI-COMPETITIVE BAHAVIOUR

The Competition Commission in South Africa has the responsibility of addressing issues related to competition in the economy.44 Following a recent investigation by the Competition Commission, companies that participated in a cartel in the glass manufacturing industry in the country since 1995, faced prosecution by the Competition Tribunal. The cartel fixed minimum prices, the date for implementation of prices and also introduced a distribution or transport levy of 3% of the price charged to customers. The products involved included float glass used for the manufacturing of safety glass for automobile windshields, skylight glazing, toughened glass, shower doors, refrigerator trays and various types of plates and cookware. 45

Cartel forming is obviously detrimental to the development of an industry – especially to new and smaller organisations. Recently one of the small independent glass manufacturers has opened new branches in various towns where they had not been trading when the cartel was in operation. 46

3.3.5 INTELLECTUAL PROPERTY RIGHTS (IPRS)

Another challenge is IPRs. Authorities in the EU for example have tried to clamp down on intellectual property issues in the Glass Subsector, but sophisticated counterfeiting remains a serious concern to producers of glass products that can be easily duplicated. Tableware and ornamentalware producers

38 Foss, N.J. & Knudsen, T. (2003). The Resource-Based Tangle: Towards A Sustainable Explanation of Competitive Advantage. Managerial and Decision Economics, 24: 29-307. 39 EC, (2007). Mid-Term Review Of Industrial Policy: A Contribution To The EU’s Growth And Jobs Strategy, Sec, 2007, 917, July 2007, p. 7. 40 Jacobsen, J. (2013). A naturally premium appeal. Beverage Industry, March 2013, www.bevindustry.com: 41-42.41 ECORYS SCS Group, (2008). FWC Sector Competitiveness Studies – Competitiveness of the Glass Sector. Rotterdam: ECORYS.42 DATAMONITOR, (2011). Global Metal, Glass & Plastic Packaging. New York: Datamonitor Plc.43 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.44 http://www.compcom.co.za/about-us/. Accessed 7 June 2013.45 Visser, A. (2013). Glass companies face prosecution over cartel activity. Business Day, 9 April 2013. 46 Visser, A. (2013). Glass companies face prosecution over cartel activity. Business Day, 9 April 2013.

18

have been particularly affected by the import of comparable and substitutable glass products that are sold at much lower prices than those of domestic producers.47

3.3.6 PRODUCT SUBSTITUTABILITY

In some product markets, glass faces strong competition from alternative materials such as plastic, metal and cardboard. In some cases glass producers are disadvantaged by having to comply with environmental regulations that non-glass producers do not have to comply with, or the regulations have an unintended consequence of favouring alternatives, e.g. weight-based regulations which favour lighter materials.48 The threat of substitutes may, however, be ameliorated by diversifying into several packaging materials.49

3.3.7 CHEAP IMPORTS

South Africa has high production standards and according to some in the Glass Subsector, much too high to produce at a competitive price. Manufacturers of glass have to compete against cheap Chinese imports that are of substandard quality. Another factor is that the Chinese use different glass codes from South Africa and customs pass products according to codes provided in documents as opposed to the physical quality of products.50

3.4 CONCLUSION

The growth of the Glass Subsector is dependent on the demand for glass. The demand, in turn, is determined to a large extent by the overall level of economic growth, particularly consumer expenditure, and manufacturing and construction activities. Various other factors have an impact on the development and performance of the subsector. Such factors relate inter alia to innovation, intellectual property rights, and competing with cheaper imported products as well as substitute products.

47 ECORYS SCS Group, (2008). FWC Sector Competitiveness Studies – Competitiveness of the Glass Sector. Rotterdam: ECORYS.48 Ibid.49 DATAMONITOR, (2011). Global Metal, Glass & Plastic Packaging. New York: Datamonitor Plc.50 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.

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4 THE DEMAND FOR SKILLS IN THE SUBSECTOR

This chapter looks at the demand for skills in the Glass Subsector. The chapter starts with the trends in employment and in the broad skills composition of the subsector. It then looks at the specific occupations that occur in the numbers of people employed in the occupations. Although the occupations give some indication of the types of skills required, at this stage it is not possible to provide a complete picture of the educational requirements of the subsector. For some of the occupations the educational requirements are relatively clear, while other occupations may require specific qualifications or registered professionals, but the requirement cannot be deducted from the occupation name. The CHIETA is currently engaged in a process of occupational profiling which will shed more light on specific skills requirements.

4.1 TRENDS IN EMPLOYMENT

The Chemical Sector in South Africa employed approximately 148 000 workers in 1970. This figure increased steadily over the subsequent two decades and reached an all-time high of almost 260 000 in 1993. Employment in the sector then declined quite rapidly over the next decade to 156 000 in 2002. Over the period 2003 to 2008 employment in the sector increased again but it dropped again from 2009 onwards (See Figure 4-1.)

Employment in the Glass Subsector declined from 1975 to 1985, increased from 1985 to 1990, and then declined again over the 1995-2010 period (Table 4-1). It is projected that this trend will continue over the period 2010-2015 but that employment will level off between 2015 and 2020.

19701975

19801985

19901995

20002005

20102012

,0

50,000

100,000

150,000

200,000

250,000

Glass & glass products Total petroleum, chemicals & glass

Figure 4-4 Employment in the Glass Subsector compared to total employment in the Chemical Sector from 1970 to 2012

20

Table 4-6 Average percentage change in employment, 1970-2020

SectorAverage % change

1970-1975

1975-1980

1980-1985

1985-1990

1990-1995

1995-2000

2000-2005

2005-2010

2010-2015

2015-2020

Glass and glass products 3.8% -

2.3%-0.5% 4.5% 2.1% -

4.7%-0.4%

-1.4%

-2.3% 0.0%

Total petroleum, chemicals and glass

3.2% 1.7% 2.3% 0.7% -1.9%

-6.9% 4.7% -

2.4%-0.6%

-0.7%

Source: Quantec, June 2013.

4.2 THE OCCUPATIONAL COMPOSITION OF DEMAND

The occupational distribution of employees in the subsector can be seen in Figure 4-1. The largest occupational group is plant and machine operators and assemblers, with 25.8% of employees. This is followed by the group skilled agricultural, forestry, fishery, craft and related trades workers, which includes artisans (18.8%) and technicians and associate professionals (17.9%). Professionals constituted only 6.2% of total employment, while managers formed 12.1% of all employees – a relatively high percentage.

Managers 12.1% (958)

Professionals 6.2% (491)

Technicians and associate professionals 17.9% (1 410)

Clerical support workers 7.1% (562)

Service and sales workers 1.9% (148)

Skilled agricultural, trades workers, etc. 18.8% (1 482)

Plant and machine oper-ators and assemblers

25.8% (2 035)

Elementary occupations 10.2% (804)

Figure 4-5 Distribution of workers across occupational categories in the Glass Subsector

Source: WSP submissions, June 2012.

Occupations in each of the eight main occupational groups in the Glass Subsector with a count 10 or higher are shown in subsequent tables (Table 4-1 to 4-8). Specialist titles used by employers for these occupations are provided in Annexure 2.

The manager group includes directors of an enterprise or organisation. The Glass Subsector employed 164 production/operations managers (manufacturing), as well as engineering managers (61). Many of these occupations require qualified engineers.

21

Stakeholders were of the opinion that the reported 215 quality systems managers seemed rather high and that some of these should rather be reflected as quality systems inspectors or quality systems auditors and that the OFO should be adapted to reflect these nuances.51

It was also indicated that engineers in the Glass Subsector are often appointed in sales positions, because of their industry and technical knowledge.52 In order to supervise and co-ordinate technical marketing and sales activities many (91) marketing managers and sales managers (38) are therefore appointed in the Glass Subsector.

Table 4-7 Managers in the Glass Subsector

OFO Code Managers N121908 Quality Systems Manager 215132102 Production/Operations Manager (Manufacturing) 164122101 Sales and Marketing Manager 91132104 Engineering Manager 61112101 Director (Enterprise/Organisation) 51121901 Corporate General Manager 45121101 Finance Manager 42122102 Sales Manager 38132401 Supply and Distribution Manager 31122105 Customer Service Manager 28121201 Personnel/Human Resource Manager 21122301 Research and Development Manager / Product Developer 20132404 Warehouse Manager 17121905 Programme or Project Manager 17121202 Business Training Manager 12121902 Corporate Services Manager 12132402 Logistics Manager 12Source: WSP submissions, June 2012.

With many engineers forming part of the managerial component, not that many engineers are categorised under professional occupations. Industrial Engineers formed the majority (29) of the engineering component, followed by mechanical engineers (12), chemical engineers (12) and electronic engineers (11). Stakeholders indicated that mechatronics is important in the Glass Subsector. On the OFO mechatronics is classified as a specialisation under mechanical engineering. 53 Other engineers are employed in the marketing and sales unit as marketing practitioners (40) and sales representatives/salesmen (industrial products) (17), where their technical knowledge can be applied.

Stakeholders reported the importance of industry specific in-house training in the Glass Subsector to address gaps in skills. For this reason the subsector employs as many as 54 professionals as occupational instructors/trainers. With so many small and micro companies in the Glass Subsector and each needing the smooth running of finances, it is not surprising that quite a number of professionals in the financial and accounting fields are employed in the subsector. In total, 88 professionals in the financial and accounting field (36 management accountants, 29 general accountants and 23 financial accountants) were employed in the Glass Subsector. The core business

51 Quality systems auditor is one of the alternative titles in the 2013 OFO list. Currently the OFO provides the following alternative titles for quality systems manager: Agriculture and forestry quality controller; ETQA manager; management system auditor; quality assurance/systems auditor; quality auditor; quality certification manager; quality control manager; quality manager; and quality systems coordinator.52 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.53 Ibid.

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of the Glass Subsector is manufacturing and in order for glass production to run according to specifications and to assure required analyses and modification of technologies according to production needs, the industry employed 25 industrial engineering technologists.

Table 4-8 Professionals in the Glass Subsector

OFO Code Professionals N242402 Occupational Instructor/Trainer 54243103 Marketing Practitioner 40241102 Management Accountant 36241101 Accountant (General) 29214101 Industrial Engineer 26214102 Industrial Engineering Technologist 25241107 Financial Accountant 23226302 Safety, Health, Environment and Quality (SHE&Q) Practitioner 23242303 Human Resource Advisor 20243301 Sales Representative/Salesman (Industrial Products) 17242101 Management Consultant 13243302 Sales Representative (Medical and Pharmaceutical Products) 13214401 Mechanical Engineer 12222104 Registered Nurse (Community Health) 12214501 Chemical Engineer 12215201 Electronics Engineer 11252101 Database Designer and Administrator 11

Source: WSP submissions, June 2012.

In line with the core business of the Glass Subsector, the majority (475) of technicians and associate professionals were production/operations supervisors (manufacturing) overseeing production processes. The sector also employed 74 manufacturing technicians; 73 chemical plant controllers controlling the operations of chemical production plants and 67 electrical engineering technicians manufacturing and maintaining electrical equipment and systems.

Core production technicians and associate professionals formed over two-thirds of the technicians and associate professionals employed in the Glass Subsector (Table 4-3).

Table 4-9 Technicians and associate professionals in the Glass Subsector

OFO Code Technicians and associate professionals N312201 Production/Operations Supervisor (Manufacturing) 475333903 Sales Representative (Business Services) 140334102 Office Administrator 85311904 Manufacturing Technician 74331201 Credit or Loans Officer 74313301 Chemical Plant Controller 73311301 Electrical Engineering Technician 67313901 Integrated Manufacturing Line Process Control Technician 53312101 Production/Operations Supervisor (Mining) 44311101 Chemistry Technician 30332202 Sales Representative (Building and Plumbing Supplies) 29334302 Personal Assistant 26311401 Electronic Engineering Technician 23332302 Purchasing Officer 22

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OFO Code Technicians and associate professionals N311501 Mechanical Engineering Technician 21332301 Retail Buyer 18335914 Train Examiner / 13312202 Maintenance Planner 13311801 Draughtsperson 11313501 Metal Manufacturing Process Control Technician 10Source: WSP submissions, June 2012.

Among the clerical support workers, the main focus is on manufacturing with the majority (222) of employees in production coordinator positions. Other support occupations in the Glass Subsector include general clerks (67), stock clerks/officers (56), accounts clerks (41), 39 receptionists (general), and warehouse administrators/clerks (29).

Table 4-10 Clerical support workers in the Glass Subsector

OFO Code Clerical support workers N432201 Production Coordinator 222411101 General Clerk 67432101 Stock Clerk/Officer 56431101 Accounts Clerk 41422601 Receptionist (General) 39432104 Warehouse Administrator/Clerk 29432102 Dispatching and Receiving Clerk/Officer 18431301 Payroll Clerk 16441601 Human Resources Clerk 16441903 Programme or Project Administrators 14422202 Outbound Contact Centre Consultant 11Source: WSP submissions, June 2012.

To support the sales and marketing managers, professionals and associate professionals, there were 95 sales support personnel (59 sales clerks and 36 general sales assistants) in the Glass Subsector. For lack of a better title on the OFO, the title “special forces operator” was used as the activities were the nearest match.54

Table 4-11 Service and sales workers in the Glass Subsector

OFO Code Service and sales workers N524903 Sales Clerk/Officer 59522301 Sales Assistant (General) 36542203 Special Forces Operator / Team leader 34Source: WSP submissions, June 2012.

Central to manufacturing is the occupational group skilled agricultural, forestry, fishery, craft and related trades workers. Glazier is the main trade in the Glass Subsector and comprises 376 trade workers.55 Following closely are mechanical fitters with 355 employed in the Glass Subsector. Stakeholders indicated a shortage of fitters (the OFO indicates general fitter as an alternative title to mechanical fitter). The Glass Subsector also employed 132 millwrights, electricians (115), metal machinists (88), and fitters and turners (88).

54 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.55 Alternative titles for glazier are: Film fitter, glass beveller, glass cutter, glazier installer, leadlight glazier, mirror installer, mirror silverer and window glass fitter.

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Table 4-12 Skilled and related trades workers in the Glass Subsector

OFO Code Skilled agricultural, forestry, fishery, craft and related trades workers N642501 Glazier 376653303 Mechanical Fitter 355671202 Millwright 132671101 Electrician 115652301 Metal Machinist 88652302 Fitter and Turner 88672105 Instrument Mechanician 59661501 Glass Maker 55643202 Vehicle Painter 30651203 Fitter-welder 30652201 Toolmaker 24651302 Boilermaker 21651101 Moulder 16661101 Precision Instrument Maker and Repairer 16642603 Gasfitter 10643101 Painter 10Source: WSP submissions, June 2012.

The Glass Subsector is highly dependent on glass production machine operators that numbered 1 158 in 2012. The subsector also employed chemical production machine operators (168), 166 packaging manufacturing machine minders, 128 forklift drivers, 119 bulk materials handling plant operators, and 81 truck drivers (general).

Table 4-13 Plant and machine operators and assemblers in the Glass Subsector

OFO Code Plant and machine operators and assemblers N718102 Glass Production Machine Operator 1 158713101 Chemical Production Machine Operator 168718304 Packaging Manufacturing Machine Minder 166734402 Forklift Driver 128718906 Bulk Materials Handling Plant Operator 119733201 Truck Driver (General) 81732101 Delivery Driver 41714202 Plastic Compounding and Reclamation Machine Operator 20711402 Glass, Clay and Stone Manufacturing Machine Setter and Minder 20734301 Crane or Hoist Operator 19711203 Diamond Cutter 17711404 Cement Production Plant Operator 15714205 Reinforced Plastic and Composite Production Worker 11712102 Metal Manufacturing Machine Setter and Minder 10Source: WSP submissions, June 2012.

Elementary occupations most common in the Glass Subsector were glass processing workers (361); people working in storage (113); food and beverage factory workers (71) working specifically in the glass container industry; metal engineering process workers (45); and plastic composites and rubber factory workers (32) performing routine tasks in the manufacturing of fibreglass.

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Table 4-14 Elementary occupations in the Glass Subsector

OFO Code Elementary occupations N832906 Glass Processing Worker 361833402 Store Person 113832904 Food and Beverage Factory Worker / Line Attendant 71832901 Metal Engineering Process Worker 45832902 Plastics, Composites and Rubber Factory Worker 32811201 Commercial Cleaner 24862919 Mechanic's Assistant 20831301 Builder's Worker 19862918 Electrical or Telecommunications Trades Assistant 18862202 Handyperson 16862914 Sheltered Workshop Worker 16833401 Shelf Filler 15

Source: WSP submissions, June 2012.

4.3 CONCLUSION

This section clearly shows that employment in the Glass Subsector showed a declining trend over the last two decades. The reduction in employment has mainly impacted on low-skilled and semi-skilled workers who are the major components of workers in the subsector. More than half (54.8%) of the workers are craft and related trades workers, plant and machine operators and assemblers, and people working in elementary occupations.

Glazier is the main trade in the Glass Subsector.

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5 THE SUPPLY OF SKILLS TO THE SUBSECTOR

The supply of skills is viewed from different perspectives in this section. The supply of skills refers in the first instance to new entrants to the labour market from basic education, FET colleges and HET institutions (new skills). However, it is also important to consider the skills needs of the current workforce and the training initiatives aimed at developing their skills levels.

The first part of this chapter deals with new entrants to the labour market. Key trends and supply-side constraints are highlighted. Initiatives undertaken by the subsector to increase the number of appropriately skilled new entrants are described.

The second part of the chapter describes the inputs of employers to train their current staff.

5.1 NEW ENTRANTS TO THE LABOUR MARKET

The formation of skills starts with general education and training (i.e. the school system). The output from this system remains a concern to the Chemical Sector, mainly because the system seems to be unable to supply adequate numbers (and quality) of school leavers with mathematics and physical science passes that can pursue studies to become engineers, technologist, technicians and artisans. The general standard of education of school leavers who enter the labour market without any further training is also insufficient.

The supply of new skills from the FET colleges into the Chemical Sector has traditionally been very limited. However, Government’s recent focus on increasing both the quality and quantity of output from FET colleges holds the promise that these institutions can play a more significant role in skills supply to the Chemical Sector in future.

In respect of the supply of higher level skills to the sector, there has been substantial growth in the numbers of new graduates from universities and universities of technology in certain engineering fields. In terms of average annual output of national diplomas, growth is reported at 7% for diplomas in chemical engineering and technology and 6% for first degrees in the same field. Despite these positive growth trends, increases have not yet been sufficient to meet the needs of the national economy and the Chemical Sector in particular. In order to ensure future growth, it will be necessary to support higher education institutions through a variety of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace training opportunities for students from the universities of technology.

5.2 THE TRAINING AND DEVELOPMENT OF EMPLOYEES

Companies in the Chemical Sector are involved in a range of training and development initiatives that focus on developing the skills of their employees. Such initiatives supplement, but also build on the training that supplies new skills to the sector. This training and development of the current workforce forms a critical source of skills supply.

In 2011/2012 training opportunities were afforded to just more than two thirds (68.5%) of employees in the Glass Subsector. Proportionally the largest occupation category that received training was technicians and associate professionals with a total of 77.1%. Three quarters (75%) of managers were afforded training opportunities. Only 51% of service and sales workers were afforded training opportunities in the Glass Subsector (Figure 5-2).

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Figure 5-6 Proportion of employees who received training opportunities according to occupational category: March 2012 Source: WSP/ATR submissions, June 2012.

In total 12 436 training opportunities were afforded to employees (one employee could have accessed more than one training opportunity). The type of training opportunities is listed in the table below. Most (42.5%) training opportunities in the subsector were job specific development programmes, nearly a quarter (24.0%) were short courses, a fifth (20.8%) were induction or other courses, and around a tenth (11.0%) were skills programmes.

Table 5-15 Training opportunities in the Glass Subsector

Qualification/learning type N %Job Specific Development Programme 5 289 42.5Short Courses 2 985 24.0Induction and other training 2 590 20.8Skills Programme 1 372 11.0NQF Level 1 57 0.5CHIETA Learning Programme 47 0.4Work Placement 47 0.4Learnerships 41 0.3Below Level 1 6 0.0NQF Level 4 2 0.0Total 12 436 100Source: WSP submissions, June 2012.

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5.3 TRAINING ISSUES IN THE GLASS SUBSECTOR

Stakeholders mentioned during the workshop that there are a number of issues concerning training for the subsector that need to be addressed in a subsector skills plan. The issues relate inter alia to funding, non-accredited short courses, quality of training, partnerships, new technology, generic versus specialised training, protecting competitive advantages, and cumbersome administrative processes regarding learnerships.

Funding

Bursaries and other forms of funding for education and training are important to address skills shortages in the subsector. Stakeholders indicated that in general funding is challenging. One of the reasons is that companies make extensively use of short courses. However, most of these short courses are not accredited which means it is difficult to obtain funding for them.56

Quality training

Stakeholders feel that some institutions need to be closed down (e.g. some in the Eastern Cape), because of substandard training. The experience is that these institutions do not prepare their students sufficiently for the labour market – placing the unfair burden on industry to provide the education and training that young people should have received before entering the labour market.57

Partnerships

Partnerships between training institutions, companies in the industry, as well as SETAs are required to ensure relevance of education and training. Industry needs to provide input into curricula to ensure that the content of programmes is in line with the needs of industry. The SETA should facilitate such partnerships. 58

Work placements

Companies have a crucial role to play in providing work experience opportunities. Some companies go out of their way to provide placements for learners and after obtaining the required workplace experience, often appoint graduates in permanent positions.

However, the provision of work placements can be further stimulated by a consolidated national database containing information on graduates who are available for placement and companies who have positions available – i.e. a mechanism to match the demand and supply-sides of the market.59

New Technology

New technology and development usually result in a demand for new occupations, or a new set of skills or in the need to up-skill existing workers. The industry has to stay abreast in this regard and ensure that workers get access to opportunities to acquire new skills or upgrade existing skills. For example, furnace operation workers usually need basic training, but in certain instances on-the-job training on specific equipment is necessary before they can operate new machinery. Sometimes training abroad is the only option to up-skill employees. Furthermore, South African graduates need to be exposed to new technology at established glass manufacturers to increase their tacit knowledge and innovative capabilities.

56 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.57 Ibid.58 Ibid.59 Ibid.

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Generic versus specialised training

Different companies have different titles for the same activities. It could be that the same base training is required for various titles, but in-house training can add a specialised focus that is required in a specific company environment. WSPs do not provide this nuanced focus and discussions at workshops are crucial to add detail to the information regarding specialised gap training. The following needs for more specialised training were discussed by stakeholders:60

The training of fitter and the training of fitter and turner need to be separated. Scarcity of glass furnace operators/glass production machine operators (718102) was

confirmed, but it was also indicated that glass maintenance operators and furnace maintenance operators (not alternative titles in the OFO) were brought in from abroad. The training of glass maintenance operators, as opposed to the training of glass furnace operators, and level of responsibility need to be determined in order to justify a separate occupation (and possibly different qualifications).

The position of glaziers needs to be considered. This occupation has been listed as trade, which means that a full apprenticeship and trade test becomes a requirement for entering this occupation. At the moment the training for glaziers is only three months in duration. The CHIETA needs to engage with NAMB and determine whether the occupation should not be removed from the list of trades. Alternatively an appropriate learning programme that leads to a trade test needs to be developed.

As a result of intense heat applied in the processing of raw materials and the need to replace linings of furnaces, refractory masons (641303) have a high turnover and there is a need for specialised training in this area. Basic training to become a stonemason can be broadened to include elective components for the training of refractory masons.

A shortage of electricians was confirmed. However, the Glass Subsector requires specific types of electricians with specialised training and experience. For example electricians in some company environments require mechatronic and/or electronic skills. Qualifications need to be changed to provide for these specialisations (possibly as electives) or part-qualifications need to be registered for this purpose.

Cumbersome learnership administration processes

Stakeholders complained about the cumbersome processes involved in the administration of learnerships which sometimes force companies to appoint a dedicated person to handle the learnership administration. The SETA is required to streamline processes as far as possible and to provide more assistance to employers.

5.4 CONCLUSION

This chapter provides a short overview of the most pertinent supply-side issues relevant to the Glass Subsector. For any industry a constant and sufficient supply of suitably qualified people is of critical importance. For the Glass Subsector, that is heavily reliant on artisans and plant and machine operators, it is important that the number of people obtaining relevant qualifications is sufficient. Another facet of the supply of skills to the subsector is the training that is offered in the workplace by employers. As this chapter indicated, employers in the Glass Subsector invest huge amounts of time and money in the training and development of their own staff. Despite the initiatives to build the skills base of the industry and to stimulate and support the supply-side of the labour market, certain skills deficiencies still remain. These are the subject of the next chapter.

60 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.

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6 SKILLS SHORTAGES IN THE SUBSECTOR

There are various ways of identifying and monitoring skills shortages in a particular labour market. One of these is to ask employers about their experiences when recruiting people for positions in their organisations. Another way is by monitoring vacancy rates in that sector because skills shortages are bound to lead to unusually high vacancy rates. Skills shortages will also drive up the costs of the skills that are in short supply and therefore the monitoring of remuneration trends can also shed light on trends in relation to skills shortages.

CHIETA attempts to glean an understanding of skills shortages in the Chemical Sector by asking employers to identify these shortages when they submit their mandatory grant applications to the SETA. This information was requested for the first time in June 2011 – i.e. in the WSPs submitted for the 2011/2012 financial year. The information submitted by employers in the Glass Subsector is analysed in this chapter. In addition the feedback of stakeholders during the subsector workshops is also reported.

It has become customary in South Africa to use the term “scarce skills” to refer to quantitative shortages in the labour market – in other words there are not enough people with the necessary qualifications available to be appointed in positions that become available in the market. This term is also used in this chapter. Another aspect of skills shortages has to do with the qualitative components of the labour market – there may be people available to appoint, but they don’t have the right skills, abilities or other attributes that employers are looking for. Skills deficiencies can also develop among the workers that are already employed, because of the introduction of new technologies, new legislative requirements etc.

6.1 SCARCE SKILLS IN THE SUBSECTOR

As mentioned above, the information on scarce skills was obtained by analysing the WSPs submitted in June 2012. This information reflects the situation as experienced by employers at the end of March 2012.

In the scarce-skills table that employers completed, they first had to name the occupation in which they experienced scarcity, and then they had to select from two possible descriptions the one that best described the scarcity they experienced – i.e. “relative scarce skill” (referring to a situation where people are available in the labour market, but cannot easily be attracted to the sector); and “absolute scarce skill” (where people are generally in short supply in the labour market). For all the occupations in which scarcity was experienced, employers also had to indicate how many vacant positions were available at the time they completed the WSP. In addition, they were requested to identify what type of learning interventions they were planning to use to address the skills shortages.

Of the 19 organisations in the Glass Subsector whose WSPs were approved by the CHIETA, 5 (26,3%) indicated that they experienced a scarcity of skills. The total number of people reported to be needed in occupations in which there were skills shortages is 178; this equates to 2.2% of total employment in the subsector (Table 6-1). Stakeholders reiterated the difficulty in quantifying scarce skills and discussions provided some nuanced information not indicated in WSPs. Some standardisation needs to be attempted in order to establish trends over time.61

Automotive fitter (653101), was indicated as one of the most hard-to-fill positions in the subsector, with 45 vacancies reported. On the other hand, for mechanical fitter (653303), only two vacancies were reported. Stakeholders in the Glass Subsector pointed out that there was a shortage of fitters and specifically mentioned that it was fitters per se and not fitters and turners.62 One would expect

61 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.62 Ibid.

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to rather have a shortage of general fitters/mechanical fitters (653303) as opposed to automotive fitters (653101) in the Glass Subsector, given stakeholder discussions, as well as employment figures.

For autoglaziers/component fitters (832910), 45 vacancies were reported and alternative titles are: Windscreen fitter; vehicle window tinter; exhaust and muffler fitter; motor vehicle parts and accessories fitter (general); radiator fitter; radiator repairer; tyre fitter and aligner; tyre serviceman/ serviceperson; wheel alignment attendant; and car alarm installer.

Seven vacancies were reported for operations managers (non-manufacturing) (134915). According to the workshop participants engineers are often appointed in these positions. In addition, engineers have the technical knowledge required in certain technical sales positions. There were 22 vacancies for technical sales consultants/coordinators/managers (243301) or sales representatives/salesmen (industrial products).

It was indicated by stakeholders in the Glass Subsector that packaging skills were required in various parts of the industry and that poaching of packaging skills from was a common practice.63

There were 17 vacancies for glass furnace operators/glass production machine operators (718102) and the scarcity of glass furnace operators was confirmed in discussions with stakeholders, although various companies name occupations with the same activities differently.64 OFO alternative titles are: Furnace operator (glass production); glass blowing machine operator; glass forming operator; glass furnace operator; glass laminating operator; glass melt operator; glass toughening operator; and lens grinding machine operator. It was also indicated that glass maintenance operators and furnace maintenance operators (not named in the OFO) were imported from abroad.65

There were 11 vacancies for electricians (general) (671101). It was confirmed by stakeholders in the Glass Subsector that there is a shortage of electricians, however, the Glass Subsector requires specific types of electricians with a certain level of training and experience, and in-house training is done in order to fill specific industry gaps. Some companies provide Six Sigma certification, which is a confirmation of an individual’s capabilities with respect to specific competencies66

Furthermore, four vacancies were available for electrical engineers (215101). The Glass Subsector also employs mechanical, industrial, electronic, chemical, analytical and hydraulic engineers, but vacancies were not reported for these engineers. Mechatronics plays an important role in the Glass Subsector and forms part of mechanical engineering.

Given the importance of a green economy, there will be an increasing demand for new green occupations and skills in the future. These demands will be two-dimensional as it will require not only new green occupations (reflected as “scarce skills”), but also new skill sets (reflected as “critical skills”) in existing occupations. There were three occupations that are listed on the OFO as green occupations among the vacancies indicated for the Glass Subsector: Electricians (general); electrical engineers and environmental (water; air; soil) technologists. Furthermore, there were six occupations requiring new green skill sets among the vacancies in the Glass Subsector: Automotive fitter; technical sales consultant/coordinator/manager; operations manager (non-manufacturing); operations manager (production); engineering manager; and procurement manager. 67

63 Ibid.64 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.65 Ibid.66 Six Sigma is a set of tools and strategies for process improvement. It seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.67 DHET, (2013). The Organising Framework for Occupations (OFO) 2013. Pretoria: DHET.

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Table 6-16 Vacancies in the Glass Subsector

OFO Code Occupation Number of vacancies653101 Automotive Fitter 45832910 Autoglazier 45243301 Technical Sales Consultant/Coordinator/Manager 22718102 Glass Furnace Operator/Glass Melt Operator 17671101 Electrician (General) 11134915 Operations Manager (Non-Manufacturing) 7132102 Operations Manager (Production) 4132104 Engineering Manager 4132401 Procurement Manager 4133104 Technical Solutions Manager 4215101 Electrical Engineer 4242101 Business Analyst 4121202 Technical Training Manager 3653303 Mechanical Fitter 2214502 Environmental (Water; Air; Soil) Technologist 1222104 Occupational Health Nurse 1Total 178% of employment in subsector 2.2

Source: WSP submissions, June 2012.

Stakeholders indicated that shortages had a geographical slant and that scarce skills were not experienced the same in all provinces. 68

Employers were asked what type of learning interventions they planned on using to address the scarcity of skills. All of them said that they were only going to use formal training that would lead to certificates and diplomas.

6.2 CONCLUSION

In 2012 employers were for the first time required to provide information on scarce skills in their WSP submissions. About a quarter of employers who submitted WSPs reported that they experienced skills shortages. Although the skills shortages do not seem to be acute, some evidence of shortages does exist. Many of the shortages relate to industry-specific and specialised skills needed by the Glass Subsector.

As mentioned in the previous chapter, the CHIETA is currently engaged in a range of partnerships, agreements and plans to contribute to both the development of new skills for the sector as well as the development of skills within the existing workforce. These initiatives range from support for further and higher education institutions and partnerships with government and industry associations.

68 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.

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7 SKILLS PLAN FOR THE SUBSECTOR

The skills plan for the subsector needs to be developed by the Glass Chamber. Stakeholders that attended the workshop mentioned several initiatives that should continue and/or put in place to ensure that the necessary skills will be available to the Glass Subsector. The most important initiatives are the following:

ISOE training

The Glass Chamber is in the process of developing an Institute of Sectoral or Occupational Excellence (ISOE). This institute is located in Springs and aims to provide quality and relevant skills training that is cutting edge, provide access to technology, is based on emerging best practices and is workplace based. Co-operation with employer bodies are important.69 This project needs to continue and be supported by CHIETA and by industry.

Artisans

The second largest group of employees in the Glass Subsector is artisans, representing 18.8% of workers. SETAs have a central role to play in building linkages between educational institutions and employers.70 CHIETA aims to form partnerships with employers in the Glass Subsector to provide work experience opportunities for learners who want to become artisans. Although more than half of the vacancies in the Glass Subsector were for artisans (Table 6-1), learnerships and work placements do not seem to receive sufficient attention from employers (Table 5-1).

Access to post-school institutions

The Green Paper on post-schooling education and training proposes the creation of different types of institutions to meet the high demand for education and training. In this regard the SAGI has for instance as one of its objectives to promote and facilitate education and training for those practising or wishing to practise in glass technology. SAGI also determines standards for admission to the various classes of membership of the Institute and provides means for testing the qualifications of candidates for admission to the appropriate classes of membership and also creates training modules.71

Green economy

Training related to green economy legislation and energy efficiency is currently on the table, however; with stricter standards from abroad, e.g. regarding double glazing, and colourants used in glass and other specifications; training needs to be updated continuously.72

IPAP proposes strategic delivery partnerships through Industry-Skills Hubs to ensure coherence in the delivery of specialised intermediate and high-level skills for technological development, investment and growth. Furthermore, in providing long-term funding to improve competitiveness and skills support, Centres of Excellence will be supported by the dti. Technological shifts will for instance be required to make a transition to a much less carbon-intensive economy by establishing higher value-adding, labour-intensive manufacturing industries with a significantly lower carbon footprint.73

69 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.70 DHET, (2011). Green Paper for Post-school Education and Training. Pretoria: DHET.71 SAGI, (2011). South African Glass Institute Constitution. Midrand: SAGI.72 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.73 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.

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Training to address health risks

Recycling is important in advancing a green economy, but in the process of crashing and bagging glass, health can be jeopardised when the dust is inhaled or when it irritates the eyes. People in informal settlements, who try to earn an income from class collection for recycling, are particularly exposed to this health risk. Participants in the stakeholder workshop pointed out that there is a need for the training of informal business owners in the crushing of glass to an optimal level – before it becomes dust that poses a health risk and becomes too fine for optimal recycling. Buyers of such glass can play a key role in such training. 74

74 Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.

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Stakeholder viewpoint at workshop on 19 June 2013, Johannesburg.

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ANNEXURE 1 OCCUPATIONS BY RACE AND GENDER IN THE GLASS SUBSECTOR

Equity Managers Professionals Technicians and associate professionals

Clerical support workers

Service and sales workers

Skilled and trade workers

Plant and machine operators and

assemblers

Elementary occupations

Learners

African Female 50 70 95 69 13 46 123 127 16

% 5.2 14.2 6.7 12.3 9.0 3.1 6.0 15.8 14.9

African Male 224 125 546 164 29 831 1 431 501 65

% 23.4 25.4 38.7 29.1 19.7 56.1 70.3 62.3 61.7

Total African 274 195 640 233 42 876 1 554 628 81

% 28.6 39.7 45.4 41.4 28.7 59.1 76.4 78.0 76.6

Coloured Female

13 12 43 51 11 4 66 20 0

% 1.4 2.5 3.0 9.1 7.6 0.3 3.2 2.5 0.0

Coloured Male 55 17 153 87 27 235 294 95 0

% 5.7 3.4 10.9 15.5 18.2 15.9 14.5 11.8 0.0

Total Coloured 68 29 196 139 38 240 360 115 0

% 7.1 5.9 13.9 24.7 25.8 16.2 17.7 14.3 0.0

Indian Female 16 13 20 21 8 1 0 0 1

% 1.6 2.7 1.4 3.7 5.3 0.1 0.0 0.0 1.1

Indian Male 67 34 72 17 9 37 21 4 1

% 7.0 7.0 5.1 3.0 6.1 2.5 1.0 0.6 1.1

Total Indian 82 48 92 38 17 38 21 4 2

% 8.6 9.7 6.5 6.7 11.4 2.6 1.0 0.6 2.1

38

Equity Managers Professionals Technicians and associate

professionals

Clerical support workers

Service and sales workers

Skilled and trade

workers

Plant and machine

operators and assemblers

Elementary occupations

Learners Total

White Female

127 84 196 95 37 2 6 0 2

% 13.2 17.2 13.9 16.9 25.0 0.2 0.3 0.0 2.1

White Male 407 136 286 58 13 326 94 57 20

% 42.5 27.6 20.3 10.4 9.1 22.0 4.6 7.1 19.1

Total White 534 220 481 153 50 328 100 57 22

% 55.7 44.8 34.1 27.2 34.1 22.1 4.9 7.1 21.3

Total Female

205 180 353 236 69 53 195 147 19

% 21.4 36.6 25.0 42.0 46.9 3.6 9.6 18.3 18.1

Total Male 753 312 1 056 326 78 1 429 1 840 657 86

% 78.6 63.4 75.0 58.0 53.1 96.4 90.4 81.7 81.9

TOTAL 958 491 1 410 562 148 1 482 2 035 804 105 7 996

Occupation Not Specified

6

Subsector Total employment 8 002

Source: WSP submissions, June 2012.

39

ANNEXURE 2 OFO OCCUPATIONS AND SPECIALISATION NAMES USED IN THE GLASS SUBSECTOR

OFO Code Occupation Specialisation name

111202 General Manager Public Service Labour Inspectorate Manager

112101 Director (Enterprise / Organisation) Chief Executive Officer (CEO)

Company Director

Managing Director

Non-Executive Director

121101 Finance Manager Chief Financial Officer (CFO)

Finance Director

Financial Administration Manager

Financial Administrator

Financial Controller

121201 Personnel / Human Resource Manager Employee Relations Manager

121202 Business Training Manager Human Resources Development Manager

Learning and Development Manager

Technical Training Manager

Training Manager

121203 Compensation and Benefits Manager Remuneration and Benefits Manager

121206 Health and Safety Manager Safety, Health and Environmental (SHE) Manager

121301 Policy and Planning Manager Corporate Planning Manager

Strategic Planning Manager

121901 Corporate General Manager Business Operations Manager

Administrative Services Manager

Business Services Manager

Corporate Services Manager

121903 Physical Asset Manager Resources Manager

121905 Programme or Project Manager Project Director

121908 Quality Systems Manager ETQA Manager

Management System Auditor

Quality Assurance / Systems Auditor

Quality Auditor

Quality Control Manager

Quality Manager

Quality Systems Coordinator

122101 Sales and Marketing Manager Key Account Manager

122102 Sales Manager Sales Director

Sales Executive

122103 Director of Marketing Marketing Director

Marketing Manager

122105 Customer Service Manager Client Service Manager

Customer Services Engineer

122301 Research and Development Manager Product Development Manager

132101 Manufacturer Factory Manager

132102 Production / Operations Manager (Manufacturing) Operations Manager (Production)

Plant Manager (Manufacturing)

Plant Superintendent

Processing Manager

40

OFO Code Occupation Specialisation name

Processing Unit Manager

Works / Workshop Manager (Manufacturing)

132104 Engineering Manager Engineering Maintenance Manager

132301 Construction Project Manager Construction Site Manager

132401 Supply and Distribution Manager Procurement manager

Purchase Manager

Supply Chain Executive

Supply Chain Manager

132402 Logistics Manager Dispatch Logistics Manager

132404 Warehouse ManagerCoolstore / Packhouse / Stockroom / Storeroom Manager

133101 Chief Information Officer ICT / IT Director

ICT / IT Manager

133104 Application Development Manager Technical Solutions Manager

134901 Environmental Manager Pollution and Waste Group Manager

134903 Small Business Manager Owner Manager

142101 Importer or Exporter Export Manager

142103 Retail Manager (General) Shop Manager

143901 Facilities Manager Facilities Supervisor

211301 Chemist Analytical Chemist

Manufacturing Chemist

214101 Industrial Engineer Automation and Control Engineer

Plant Engineer

Process Engineer

Production Engineer

Quality Management Engineer

214102 Industrial Engineering Technologist Automation and Control Technologist

Process Technologist

Quality Management Technologist

Supply Chain Technologist

214302 Environmental Impact and Restoration Analyst Environmental Remediation Specialist

214401 Mechanical Engineer Mechanical Engineer (Mines)

215201 Electronics Engineer Instrumentation Engineer

215202 Electronics Engineering Technologist Instrumentation Technologist

216302 Industrial Designer Glass Designer

216402 Transport Analyst Logistics Analyst

216601 Graphic Designer Graphic Artist

221211 Surgeon Occupational Medicine Specialist

222104 Registered Nurse (Community Health) Clinic Nurse

Industrial / Factory Nurse

Occupational Health Nurse

226302Safety, Health, Environment and Quality (SHE&Q) Practitioner Health and Safety Officer / Coordinator / Professional

Risk and Safety Manager

235101 Education or Training Advisor Education / Training Specialist

241102 Management Accountant Cost Accountant

Project Accountant

41

OFO Code Occupation Specialisation name

241104 External Auditor Auditor

242101 Management Consultant Business Analyst

Business Consultant

Capital Expenditure Analyst

Corporate Planner

Management Consulting Specialist

Technology Development Coordinator

242102 Organisation and Methods Analyst Organisational Performance Improvement Manager

242204 Corporate Treasurer Financial Risk Manager

242303 Human Resource Advisor Hr Administrator

Hr Officer

Human Resource Consultant

242304 Workplace / Industrial Relations Advisor Employee Relations Advisor

Industrial Relations Officer

242401 Training and Development Professional Training and Development Practitioner

Training Consultant

Training Coordinator

242402 Occupational Instructor / Trainer Business Skills Trainer

On-the-job Trainer

Operator Trainer

242403 Assessment Practitioner Assessor

243102 Market Research AnalystMarketing Research Accounts Manager / Key Account Manager

243103 Marketing Practitioner Marketing Officer

Product Manager

243201 Communication Coordinator Coordinator External / Internal Communication

243301 Sales Representative / Salesman (Industrial Products) Technical Representative / Salesman

Technical Sales Consultant / Coordinator / Manager

Technical Service Advisor / Salesman

251101 ICT Systems Analyst Systems Programmer

251201 Software Developer Software Architect

Software Engineer

252101 Database Designer and Administrator Data Administrator

Database Administrator

252201 Systems Administrator Systems Manager

262202 Information Services Manager Information Management Specialist

263510 Employee Wellness Practitioner Employee Assistance Practitioner

311101 Chemistry Technician Chemical Laboratory Technician / Analyst

Chemical Manufacturing Technician

311102 Physical Science Technician Product Quality Laboratory Technician

311201 Civil Engineering Technician Work Site Engineering Technician

311301 Electrical Engineering Technician Electrical Instrument Technician

311302 Electric Substation Operations Manager Power Station Attendant

Power System Operator

311501 Mechanical Engineering Technician Mechanical Instrument Technician

311702 Metallurgical or Materials Technician Pressure Testing Technician

311801 Draughtsperson Design and Manufacturing Draughtsperson

42

OFO Code Occupation Specialisation name

Technical Draughting Officer

Tool Designer

311904 Manufacturing Technician Glass, Clay and Stone Manufacturing Technician

312101 Production / Operations Supervisor (Mining) Mine Operations Foreman

Mine Overseer (Projects)

Shift Foreman / Boss (Mining)

312102 Miner Team Leader (Mining)

312201 Production / Operations Supervisor (Manufacturing) Manufacturing Foreman

Production Plant Supervisor

Shift Manager (Production)

312202 Maintenance Planner Engineering Planner

Maintenance Scheduler

Marine Maintenance Planner

Mine Equipment Planner / Coordinator

312301 Building Associate Clerk of Works

313301 Chemical Plant Controller Chemical Process Technician

313401 Gas or Petroleum Controller Refinery Pipeline Controller

313501 Metal Manufacturing Process Control Technician Blast Furnace Operator

Metal Processing Control Operator

313901Integrated Manufacturing Line Process Control Technician Industrial Robot Controller

325705 Safety Inspector Factory Inspector

Safety Health Environment Quality Inspector

331201 Credit or Loans Officer Credit Clerk

Credit Controller

Finance Clerk / Officer

331301 Bookkeeper Financial Administration Officer

332301 Retail Buyer General / Company Buyer

332302 Purchasing Officer Procurement Administrator / Coordinator / Officer

Procurement ClerkPurchasing Agent / Assistant / Buyer / Clerk / Controller

333101 Clearing and Forwarding Agent Shipping Agent Coordinator

333303Labour Recruitment Consultant: Temporary Employment Services (TES)

Temporary Employment Services (TES) Site Supervisor

333903 Sales Representative (Business Services) Business Services Officer

Sales Representative (Advertising)

333908 Marketing Coordinator Marketing Support Coordinator

334101 Office Supervisor Data Entry Supervisor

334302 Personal Assistant Executive Assistant

Private Secretary

351302 Geographic Information Systems Technicians Technical Support Specialist

411101 General Clerk Administration Clerk / Officer

Administrative Assistant

413201 Data Entry Operator Data Capturer

Data Control / Input Clerk

421401 Debt Collector Regional Manager Debt

422201 Inbound Contact Centre Consultant Inbound Contact Centre Team Leader

43

OFO Code Occupation Specialisation name

Call Centre Customer Service Representative (Outbound)

Call or Contact Centre Sales Agent / Consultant

Outbound Contact Centre Team Leader

422301 Switchboard Operator Telephone Operator / Attendant

422501 Enquiry Clerk Complaints Clerk

Corporate / Front Office Receptionist

Customer Centre Support Officer

Customer Services Clerk / Officer / Reception Officer

431101 Accounts Clerk Account Coordinator / Controller

Accounting Clerk

Creditors Clerk

Debtors clerk

431102 Cost Clerk Costing Clerk

431301 Payroll Clerk Payroll Officer / Administrator / Advisor / Analyst

Wage Clerk

432101 Stock Clerk / Officer Inventory Clerk / Controller / Administrator

Packaging Material Stores Clerk-Perishable Produce

Stock Control Clerk

Stores Clerk / Officer

Stores Controller

Stores Coordinator

432102 Dispatching and Receiving Clerk / OfficerDispatch Clerk / Officer / Operator / Assistant / Worker

Receiving Clerk

Shipping and Receiving Clerk

432103 Order Clerk / Officer Customer Orders Clerk

432201 Production Coordinator Distribution ControllerLogistics Clerk / Assistant / Controller / Coordinator / Planner / Officer

Material and Production Planning Clerk

Production Clerk

Production Foreman

Production Leader

Production Planner / Officer

Production Recorder / Scheduler

432301 Transport Clerk Fleet Contracts Manager / Controller / Coordinator

441301 Coding Clerk Coding Data Processing Clerk

441501 Filing or Registry Clerk Documentation Clerk / Officer

441502 Office Machine Operator Addressing Machine Operator

Office Assistant Photocopying

441601 Human Resources Clerk Human Resources Systems Administrator

441902 Contract Administrator Contract Coordinator

441903 Program or Project Administrators Administrator

Programme / Project Coordinator

Project Coordinator

Project Planner

515301 Caretaker Concierge (Building)

44

OFO Code Occupation Specialisation name

Maintenance Officer

522201 Retail Supervisor Sales Department Supervisor

522301 Sales Assistant (General) Shop Assistant

523102 Office Cashier Cashier

524903 Sales Clerk / Officer Internal Salesperson

541401 Security Officer Security Guard

542203 Special Forces Operator Team Leader (Tm Ldr)

641201 Bricklayer Bricklayer (Refractory)

641501 Carpenter and Joiner Building Maintenance Repairman

642501 Glazier Glass Beveller

Glass Cutter

Window Glass Fitter

643101 Painter Painter and Decorator

643202 Vehicle Painter Automotive / Boat / Car / Coach / Ship Painter

Vehicle Spraypainter

651101 Moulder Metal Mould Maker

651301 Sheet Metal Worker Aluminium / Stainless Steel Fabricator

652301 Metal Machinist Machine Tool Mechanician

Machine Tool Operator

Turner (Metal)

Turner Machinist

652302 Fitter and Turner Industrial Mechanician

653301 Industrial Machinery Mechanic Train Engine Repairer

653303 Mechanical Fitter General Fitter

Machine Fitter

Machine Fitter (Including Hydraulics and Pneumatics)

Maintenance Fitter

Mechanical Fitter (Machinery) Ships

661501 Glass Maker Glass Blower

662107 Printing Plate Maker Screen Maker

662203 Screen Printer Screen Printing Press Operator

662208 Roll Label Machine Technician Label printing Machinist

671101 Electrician Electrician (Engineering)

Electrician (General)

671202 Millwright Millwright (Electromechanician)

671301 Electrical Line Mechanic Electrical Line Mechanic (Distribution)

Lines Inspector

672102 Radar Mechanic Radar Fitter and Repairer

672105 Instrument Mechanician Electronic Repair Technician

Electronic Service TechnicianInstrument Mechanician (Industrial Instrumentation & Process Control)

Instrument Mechanician (Process Control)

711201 Mineral Processing Machine Operator Milling Machine Operator (Minerals)

711203 Diamond Cutter Automatic Polishers

713101 Chemical Production Machine Operator Abrasive Glass and Ceramics Mixer

714101 Rubber Production Machine Operator Rubber Moulding Machine Operator

45

OFO Code Occupation Specialisation name

714202Plastic Compounding and Reclamation Machine Operator Pelletising Extruder Operator

714205 Reinforced Plastic and Composite Production Worker Fibreglass Hand Laminator

714301 Paper Products Machine Operator Cutting Machine Operator

716108 Seed Processing Machine Operator Seed Bagger

718102 Glass Production Machine Operator Furnace Operator (Glass Production)

Glass Blowing Machine Operator

Glass Forming Operator

Glass Furnace Operator

Glass Laminating Operator

718303 Filling Line Operator Filling Machine Operator

718304 Packaging Manufacturing Machine Minder Packaging Machine Operator

718905 Engineering Production Systems Worker Computer Numeric Control (CNC) Machine Operator

718906 Bulk Materials Handling Plant Operator Palletiser Operator

721901 Product Assembler Assembler, Plastic Products

732101 Delivery Driver Driver-messenger

Light Utility Vehicle (LUV) Driver

734206 Loader Operator Front-end-loader Driver

Loader Driver

734301 Crane or Hoist Operator Crane Driver

Tower Crane Operator

734303 Dredge Operator Dredger

734402 Forklift Driver Forklift Operator

811201 Commercial Cleaner Cleaner (Non-domestic)

Factory Cleaner / Sweeper

Office Cleaner

811203 Tea Attendant Tea Lady

821104 Harvester / Picker Picker Quality Controller

821601 Fishing Hand Greaser

831101 Mining Support Worker Strata Control Observer

831301 Builder's Worker Artisan Aide Building Trade

Bricklayer's Assistant

Maintenance Person / Coordinator

832901 Metal Engineering Process Worker Fitter's Assistant

Metal Moulder's Assistant

832902 Plastics, Composites and Rubber Factory Worker Cellular Plastics Cutter Hand

Rubber Process Worker

832904 Food and Beverage Factory Worker Line Attendant

832906 Glass Processing Worker Factory Hand Fibreglass Moulding

Glass Making Process Worker

Glass Mould Cleaner

Glass Processor / Worker

832907 Chemical Plant Worker Gas Plant Labourer

832908 Clay Processing Factory Worker Brick Handler

Clay Mould Plant Operator

832910 Component Fitter Autoglazier

Windscreen Fitter

46

OFO Code Occupation Specialisation name

833401 Shelf Filler Warehouse Worker / Shelver

833402 Store Person Order Picker / Assembler

Stores Assistant

Warehouse Assistant

862202 Handyperson Handy Man

862918 Electrical or Telecommunications Trades Assistant Artisan Aide Electrical

Electrical Helper

Instrument Artisan Assistant

862919 Mechanic's Assistant Lubrication Attendant

47