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Chapter 5: NSDS II Objective Three

Promoting employability and sustainable livelihoods through skills developmentWhile NSDS II Objective Two focuses on the employed attaining relevant and essential skills, Objective Three is focused on the unemployed and the acquisition of skills for purposes of employment and ultimately poverty reduction. The NSF, Department of Labour’s Provincial Offices and the SETAs are principally responsible for ensuring that unemployed people receive training.

Training provision is targeted at individuals and groups within communities in the various provinces. All training should result in individual or groups of learners being placed in employment or being better able to engage in sustainable income generating activities.

5.1 Success Indicator 3.1: By March 2010, at least 450 000 unemployed people are trained. This training should incrementally be quality assured and by March 2010, no less than 25% of the people undergo accredited training. Of those trained, at least 70% should be placed in employment, self-employment or social development programmes including EPWP, or should be engaged in further studies. Placement categories each to be defined, measured, reported and sustainability assessed.

Any activities in pursuit of the targets specified above are funded by the NSF under the Social Development Initiatives programme. Skills development initiatives targeting the unemployed are implemented as part of Provincial Skills Plans, the Integrated Rural Development Strategy, Urban Renewal Strategies or Local Economic Development Strategies.

Progress made to dateThe NSF target for 2008/09 was to train 90 000 unemployed people and to ensure that 63 000 or 70% would be placed in employment or self-employment and 25% of the training needed to be accredited.

A total of 15 169 unemployed people were trained and 22% of this training was accredited. Of those trained 8 885 (59%) were placed in employment in the period under review. These figures reflect the roll-over in training from the previous financial year. No new contracts with service providers were entered into in the 2008/09 financial year because in this period the Department of Labour initiated a process of aligning provider procurement practices with the National Treasury prescripts. Table 5.1 shows the number of unemployed people trained under the Social Development Initiatives programme from 2005/06 to 2008/09.

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Figure 5.1 Number of unemployed trained and placed in employment

Table 5.1 Number of unemployed trained and placed in employment

Year Target Achievement % Accumulative total achievement against 2010 target (450 000 trained, 315 000 placed. 25% training accredited)

2005/06 90 000 trained 103 168 114 103 168

70% placed 55 376 54 55 376

10% accredited 0% 0 0%

2006/07 90 000 trained 118 153 131 221 321

70% placed 90 691 77 146 067

25% accredited 36% 144

2007/08 90 000 trained 101 924 113 323 245

70% placed 71 054 72 217 121

25% accredited 28% 112

2008/09 90 000 trained 15 169 17 338 414

70% placed 8 885 59 226 006

25% accredited 22% 88

Table 5.1 shows that in order for the 2010 targets pertaining to both the training and placement of the unemployed to be met, 111 586 individuals will have to be trained and 88 994 placed in 2009/10. Given that in 2006/07 and 2008/09 both these figures were exceeded, it can be concluded that since the Department has accomplished the process of aligning procurement systems with Treasury prescripts, the 2010 targets can still be achieved despite the low 2008/09 figures.

Trained Placed

103 168

55 376

3 391

9 387118 153

3 192

90 891

101 924

2 903

71 054

15 1698 885

2006/07 2007/08 2008/092005/060

20 000

40 000

60 000

80 000

100 000

120 000

140 000

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Case Study 5.1.1 Karsten Boerdery: Northern Cape

Implementing Agent: NSF

The Karsten Boerdery is a conglomerate of farms, nine of which are situated along the Orange River just outside the town of Upington in the Northern Cape Province. The Karsten Group grows and exports table grapes, dates, citrus, melons and raisins mainly to the European Union. Because of the seasonal nature of the crops, 605 permanent staff and 4 500 seasonal workers are employed. The seasonal workers, from the Northern Cape and North West provinces, are employed for 5-7 months a year.

Employees work on these farms as they have very limited access to other kinds of employment and are therefore often not motivated or committed to the company. An additional challenge is that they do not have permanent or full time employment. Faced with these challenges, management at Karsten Boerdery undertook a needs analysis that demonstrated that seasonal workers would benefit from off-season training.

Karsten Boerdery had already received support from AgriSeta for the training of its permanent employees and so approached the Upington Labour Centre for financial and other assistance for training of seasonal workers. Because the goals of the training programme aligned with the objectives of the Northern Cape provincial development projects, the intervention qualified for support under the Social Development Funding Window.

Karsten Boerdery received a total of R537 760 from the National Skills Fund Social Development Funding Window. This enabled 732 seasonal workers to be trained in Tree Management/Plant Physiology, Maintaining Effective Working Relations with staff, Tractor Operation and Tractor Maintenance. Of those trained 182 were women, 578 men and 722 were under 35 years. These learners received a daily allowance as per the terms of the National Skills Fund. Karsten Boerdery supplemented this with R15 in order to make this amount equivalent to the minimum wage.

The staff at the Upington Labour Centre supported Karsten Boerdery by monitoring the training processes that lasted 4.5 months. The trained seasonal workers form a pool from which permanent workers are recruited by Karsten Boerdery and other farms. Of the 732 seasonal workers trained, 20 workers have so far acquired permanent positions on Karsten Boerdery.

Change

Since the training, all workers and supervisors have seen a change in the seasonal employees’ mindset. Working relations between permanent and seasonal staff and between seasonal workers and supervisors has greatly improved. A better knowledge of plant physiology has led employees to develop a greater understanding of why crops have to be harvested at particular times and the pressures and demands of the harvest season. Profit and loss has also been explained and productivity issues better understood because of this. Individuals who participated in the training programme have also influenced those who did not receive training. The training has resulted in a successful harvest with fewer problems than encountered in previous years.

Workers at Karsten Boerdery during the harvest season.

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5.2. Success Indicator 3.2: By March 2010, at least 2 000 non-levy paying enterprises, NGOs, CBOs and community-based co-operatives supported by skills development. Impact of support on sustainability measured with a targeted 75% success rate.

This Objective Three Success Indicator highlights the important role that small non-levy paying enterprises, NGOs, CBOs, and Community Based Co-operatives have to play in job creation and poverty alleviation. Provision of skills development assistance to these organisations is expected to result in more robust management and operational systems that will improve the organisations’ ability to sustain and grow. SETAs and the NSF are the implementing agents that will contribute towards the achievement of the target as specified in this success indicator.

Progress made to date

5.2.1 SETAs activity

The SETAs 2008/09 target was that 5 865 non-levy paying enterprises, NGO, CBOs and Community Based Co-operatives will be supported through skills development. SETAs supported 7 601 non-levy paying organisations in skills development in the year. Table 5.2 shows the number of non-levy paying enterprises supported by SETAs from 2005/06 to 2008/09.

Figure 5.2 Number of non-levy paying enterprises, NGOs, CBOs and Community Based Co-operatives assisted through skills development by SETAs from 2005/06 to 2008/09

SETA target Achievement

466829

2 585

1 8943 192

4 204

5 865

7 601

2 903

4 196

15 1698 885

2006/07 2007/08 2008/092005/060

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

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Table 5.2 Number of non-levy paying enterprises, NGOs, CBOs and Community Based Co-operatives assisted through skills development by SETAs from 2005/06 to 2008/09

Year SETA Target Achievement Percentage % 2005/06

2005/06 466 829 178

2006/07 2 585 4 204 163

2007/08 1 894 4 196 182

2008/09 5 865 7 601 130

Accumulative four year achievement against 2010 target of 2 000.

16 841 842

Table 5.2 shows that the SETAs have consistently exceeded their annual target since 2005/06. In the fourth year of the strategy the SETAs have already achieved 842% of the five year target.

5.2.2 NSF activity

The NSF facilitates the provision of skills development support to 367 SMMEs and community based co-operatives. It has 29 active Memorandum of Agreement with service providers across all provinces. The support to 367 SMMEs benefited 4 000 co-operative workers.

Table 5.3 shows the distribution of co-operatives supported by the NSF and the utilisation of funds by province.

Table 5.3 Number of community-based co-operatives supported by the NSF per province.

Province Total budget Co-operatives supported

Spending R

Spending as % of total budget

Eastern Cape 6 400 000 80 1 664 086 26

Free State 2 880 000 36 1 037 497 36

Gauteng 2 960 000 23 989 429 30

KwaZulu-Natal 5 920 000 68 1 656 209 28

Limpopo 3 840 000 45 1 204 860 31

Mpumalanga 3 040 000 36 1 299 614 43

Northern Cape 2 080 000 36 1 125 472 54

North West 2 720 000 26 906 778 33

Western Cape 2 160 000 27 1 016 874 47

Total 32 000 000 367 12 359 351 39

The total number of non-levy paying organisations supported through skills development in 2008/09 by both the NSF and the SETAs is 7 968. The total number of these organisations supported by both implementing agents since 2005/06 is 17 208. This represents an 862% achievement of the five-year target.

One of the impact studies commissioned to be completed before the end of October 2010 is a study into the impact of NSDS II skills development support on non-levy paying organisations.

Case Study 5.2.2.1 Thembalihle Leather Craft Co-operative: Eastern Cape

Implementing Agent: NSF

Thembalihle Leather Craft Co-operative in the Madlangala area of Matatiele in the Eastern Cape was established in 2002 and registered in 2005. Land was made available for the Co-operative by the local chief in consultation

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with the Department of Agriculture and Land Affairs. The Alfred Nzo District Municipality provided four wooden cabins and one container for the co-operative to use as an office, store and work rooms. The municipality also funded the acquisition of tools and equipment such as a grinder, an industrial sewing machine, wheelbarrows, spades, forks, rakes and a generator. The co-operative has 12 members; one male and 11 females, all members of the Madlangala community.

All members are skilled leather craftsmen. They produce handmade leather bags, shoes, cushions, key holders, mats, hats, leather jackets, belts, necklaces, file covers and various other leather products. They are assisted in marketing their products in and outside Matatiele by Umzimvubu Goat, one of the divisions of the Alfred Nzo District Municipality.

Fifty percent of the members have received training in Business and Financial Management, Project Management, Fundamental Skills for Co-operatives, Teamwork, Diversity Management, Conflict Management, Communication Skills, Identifying Business Opportunities, Operating a Personal Computer and Maintaining Data through use of a computer, Occupational Health and Safety, First Aid and HIV and AIDS Management. The remaining 50% could not enrol on credit based courses because they have ABET level learning needs but they were trained on leather craft and other relevant skills. The training commenced in January 2008 and ended in June 2009.

Change

The Co-operative chairperson reports that the training has given members confidence and skills to manage their organisation. Before this training the co-operative was on the verge of dissolution. Through the acquisition of better communication and conflict resolution skills, members have now re-grouped. The Umzimvubu Goat partnership has also been weakening and this provides an opportunity for Co-op members to market their own products. Already, they have already established relationships with the Matatiele Museum and other tourist sites.

They also look forward to the 2010 FIFA World Cup which they see as another opportunity to expand their market, increase profit and add value to their community.

Three members of the Thembalihle Leather Craft Co-operative pictured together with their training providers. The members are the three people on the left.

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5.3 Success Indicator 3.3: By March 2010, at least 100 000 unemployed people have participated in ABET level programmes of which at least 70% have achieved ABET Level 4.

Whilst Success Indicator 2.7 addresses the need to enable the functionally illiterate employed to access basic education and training, this success indicator focuses on the need for the unemployed functionally illiterate to receive the same training. Acquisition of basic education skills will not only enable the learners to access further training and increase their degree of employability but it will also enable the learners to better engage in income generating activities. The participation of unemployed people in ABET programmes is supported by the NSF.

Progress made to dateThe first NSDS II NSF funded ABET programmes were implemented in 2007/08. At the end of the 2007/08 financial year 19 987 unemployed people had been registered on ABET programmes against a target of 20 100. The 2008/09 target was that 40 000 unemployed people would participate in ABET programmes at all levels and 50% would complete these programmes. A total of 73 438 learners participated in and 27 194 learners completed ABET programmes in the year under review. Table 5.4 Total number of unemployed learners registered in ABET programmes

Year Target Achievement % of four-year participation achievement against 2010 participation target

Participants Completions Participants Completions

2007/08 20 100 19 987

2008/09 40 000 20 000 73 438 27 194

Total 60 100 20 000 93 425 21 194 93.00

Despite the late start, Table 5.4 shows that increased provision of ABET for the unemployed in 2008/09 has resulted in the five-year participation target being approximated. Level 4 completions will be reported on in 2009/10. As with the ABET programmes for the employed, challenges reported in the implementation of ABET programmes for the unemployed include high drop-out rates.

5.4 Conclusion High and low levels of performance characterise the contribution towards the achievement of Objective Three. In the past year no new training programmes for the unemployed were started but the high performance of previous years has resulted in the five year target being approximated. Again, while no ABET programmes for the unemployed began in the first two years of the strategy, the high participation rate in subsequent years has resulted in the agent being 7% short of achieving the five-year target. Unavailability of statistics for ABET for the unemployed Level 4 participation and completion figures at the time of writing the report prevents more detailed comparison with the SETAs’ performance with respect to provision of ABET programmes for the employed. SETAs have consistently exceeded the targets set for providing support to non-levy paying organisations.