Department of Labour, Annual Report 2005/06 Report - Departme… · SETA Coordination ensures the...

This programme focuses on implementing the National Skills Development Strategy and theNational Human Resources Development Strategy.

There are six subprogrammes:

� Skills Development Funding ensures the flow of funds from the South African RevenueService to the National Skills Fund and the SETAs, the collection and distribution of funds,and the disbursement of grants by SETAs and subsidies by the National Skills Fund

� SETA Coordination ensures the effective and efficient implementation of the NationalSkills Development Strategy at the sector level

� INDLELA aims to develop a learnership system, increase access to work-basedqualifications, and conduct assessments at different levels and in different fields oflearning

� Training of Staff funds staff training programmes and ensures the availability of relevantskills for implementing the legislation

� Administrative Auxiliary Services supports the development and management of theemployment and skills development services and human resources development branchstrategy and policy processes, and provides support services to the branch

� The National Productivity Institute aims to support government-led strategic initiativesthat affect job creation and retention, productivity and competitiveness.

Programme PerformanceProgramme 3: Employment and Skills Development

Services and Human Resources Development

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Unemployed people are skilled in various learnerships to offer them the opportunity to find employment.

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Measurable Branch Objective: Achieve the 2005/06 target of the National Skills Development Strategy throughmanaging service level agreements and providing support services to all SETAs and managing the National Skillsfund efficiently and effectively.SSuubbpprrooggrraammmmee OOuuttppuutt MMeeaassuurree//IInnddiiccaattoorr TTaarrggeett AAccttuuaall

SkillsDevelopmentFunding

Fundingallocation toprojects andprogrammes andmonitoring ofprojects

Proportion ofavailable fundsspent or committed

Percentage ofprojectachievementsagainst project plan

At least 75% ofavailable funds spentor committed byMarch 2006

At least 75% ofprojects outcomesagainst project plansachieved by March2006

57.8% of NSF income wasspent or committed by March2006

The aggregated projectoutcomes came to 80.4%measured against approvedproject budget and actualproject expenditure

SETACoordination

Management ofSETAperformance

SETAs supportedto fulfillegislation andstrategicobligations of theNational SkillsDevelopmentStrategy

Performanceindicators andservice levelagreements (SLA)concluded andregularly managedwith all SETAs.

Number of youth inlearnerships andplaced in jobs aftercompletion

Increasecompetency ofSETA boards andfunctions

At least 15 SETAsachieve satisfactoryassessments againstindicators.

Underperformanceidentified andremedial actionagreed andimplemented by theend of February eachyear.

Minimum of 80 000youth in learnershipsby March 2005. 50%placed within 6months aftercompletion and equitytargets achieved (84%Black, 54% womenand 4% with disability)

500 enterprisesachieve a nationalstandard of goodpractice in skillsdevelopment, to beapproved by theMinister by March2005

16 SETAs achieved satisfactoryassessment against indicators.

Individual performance scorecards of 23 SETAs completed bySeptember 2005 and remedialaction on oustanding targetwas concluded in March as partof the 2006 SLAs

NNSSDDSS 22000011--005588 410 learners were inlearnerships and 21 237 were inapprenticeships (total: 109 647)of these 56 301 had completedand 77% were employed on fulltime or part time. 82% Black,45% women and 2% peoplewith disabilitiesNNSSDDSS 22000055--110037 227 unemployed learnershave entered and 11 678 havecompleted by end of March2006. 71% Black, 33% womenand 2% were people withdisabilities

Draft proposal developed butcould not be finalised duringthe period under review



Skills Levies collected and transferred to SETAs and NSF

TTaabbllee 22 illustrates the total levies collected by SARS and transferred to SETAs and the NSFwithin 30 days of each second month. The amounts represent 1 % of the employer’sremuneration bill and the current compliance level stands at 92%.

The Skills Development Levies Act was amended in August 2005 to exclude all companiesthat have a remuneration bill that is less than R500 000 per annum (previous level wasR250 000). TTaabbllee 22 illustrates the total amount collected and transferred to SETAs and theNSF by end of March 2006.

TTaabbllee 22:: LLeevvyy ttrraannssffeerrss ttoo SSEETTAAss aanndd tthhee NNSSFF

For 2005/06 an amount of R 55.052 million was paid to SARS as at 31 March 2006 for levycollection services.

Transfers to NPI and UYF

The money received and utilised by the NPI and UYF is also aligned to the implementationof the NSDS and is thus part of the funding for the implementation of the NSDS. For the2005/06 financial year the NPI had an adjusted appropriation amount of R 23,9 million while

LLeevvyy yyeeaarrAApprriill –– MMaarrcchh

TToottaall aammoouunntt ccoolllleecctteeddRR’’000000

AAmmoouunntt ttrraannssffeerrrreedd ttooSSEETTAAss dduurriinngg tthhee lleevvyy yyeeaarr

RR’’000000

AAmmoouunntt ttrraannssffeerrrreedd ttoo NNSSFFdduurriinngg tthhee lleevvyy yyeeaarr

RR’’000000

2005/06 R 4 883 330 R 3 906 664 R 976 666

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Support and assessSETA sector skills plans

SETA sector skillsplans assessed

25 SETA sector skillsplans assessed by endOctober 2005

23 SETA sector skillsplans were submittedduring November 2005and assessed inJanuary 2006

INDLELA Assessment servicesmaintained whiletransforming INDLELA

Apprenticeshipassessment servicesand certificationmaintained

Provide 100% ofassessment andcertification informationrelated to allapprentices as well asthe 28 recognition ofprior learningcandidates assessed atINDLELA

8 865 trade tests werearranged, 109withdrawn, 1 243candidates wereabsent on the date ofthe trade test, 7 622were tested and 3 391passed their trade test,i.e. 44%

AdministrativeAuxilliaryServices

Employment and skillsdevelopment servicesand human resourcesdevelopmentprogrammes strategyand policy processesmanaged

Workplans of thebranch finalised andperformance of thebranch against theworkplanconductedtimeously

Workplans finalised byFebruary 2005 withquarterly and annualassessments

Workplans werefinalised in April 2005and assessments wereconducted at the endof the 2nd and 4thquarters

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the UYF had an estimated revenue outcome of R 58,9 million.

National Skills Development Strategy Implementation

TTaabbllee 33 provides progress towards targets set for the period 1 April 2005 to 31 March 2006against the first year of the NSDS 2005 – 2010.

The report was generated from Quarterly Monitoring Reports submitted by SETAs, theDepartment’s provincial offices responsible for the various NSF projects and otherorganisations and institutions funded under the NSF. Where relevant, achievements by theNational Productivity Institute (NPI) and Umsobomvu Youth Fund (UYF) are also indicated.



The National Skills Development Strategy aims to enhance skills of people beyond their school-going years.

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Objective 1: Prioritising and communicating critical skills for sustainable growth, development and equity

1.1 Skills development supportsnational and sectoral growth,development and equitypriorities

23 SETA sector skills plans (SSPs)for 2005 – 2010 received by 31August 2005 and evaluated by31 March 2006.

23 SETA SSPs were received inDecember 2005 and evaluatedby March 2006.

1.2 Information on critical skillswidely available to learners andimpact measured

Scarce and critical skills listpublished. 7 183 SkillsDevelopment Facilitators (SDF)to be trained by SETAs. Nationaland sector guides distributed

State of Skills published anddistributed in October 2005.8 082 SDFs (13% over target)trained by SETAs and 39 by NPI.

Objective 2. Promoting and accelerating quality training for all in the workplace

2.1 80% of large firms and 60% ofmedium firms supportedthrough skills development.Impact on overall equity profileassessed.

3 144 large firms and 4 708Medium firms supportedthrough skills development

4 866 large firms (55% overtarget) and 5 424 medium firms(15% over target) supported

2.2 Skills development in 40% ofsmall levy paying firmssupported and the impact ofsupport measured.

27 106 Small levy paying firmssupported through skillsdevelopment

28 532 (5% over target) smalllevy paying firms supported.

2.3 80% of governmentdepartments spend at least 1%of personnel budget on trainingand impact on service deliverymeasured

80% of national and provincialdepartments spend at least 1%of personnel budget on training

National Departments spent1.74% of personnel cost ontraining. Statistics for ProvincialDepartments were notavailable.

2.4 A national standard of goodpractice framework in skillsdevelopment approved byMinister of Labour

A national standard of goodpractice in skills developmentsubmitted to the Minister forapproval

Draft proposal developed butcould not be finalised duringthe period under review.

2.5 Annually increasing number ofsmall BEE firms and BEE co-operatives supported by skillsdevelopment. Impact ofsupport measured

Annually increasing number ofsmall BEE firms and BEEcooperatives

Not measured during 2005/06.Research will be undertakenduring 2006/07 to determineBEE firms baseline.






2.6 Annually increasing number ofpeople benefiting fromincentivised training foremployment or re-employmentin new investment andexpansion initiatives.

Annually increasing number ofpeople who benefit fromincentives training foremployment /re-employment innew investments and expansioninitiatives.

1 178 workers in 93 SMEsreceived training.

NPI established 91 futureforums and 47 turnaroundstrategies in companies toprevent job losses

2.7 By March 2010, at least 700 000workers have achieved at leastABET Level 4

SETAs committed to a target of41 838 workers that includedworkers registered on ABETprogrammes before April 2005

41 097 (99% of target) workerswere registered on ABET Levels1-4.

2.8 By March 2010, 125 000 workersassisted to enter and 50%complete programmes leadingto scarce skills.

SETAs committed to a target of29 297 workers to enter and14 649 complete programmesleading to scarce skills.

NPI committed to training 560workers

79 198 workers (170% overtarget) learners have enteredand 44 623 (205% over target)completed.

NPI trained 781 workers

Objective 3. Promoting employability and sustainable livelihoods

3.1 By March 2010, at least 450 000unemployed people trained ofwhich 25% undergo accreditedtraining and 70% are placed.

90 000 unemployed peopletrained, 25% of training qualityassured, and 70% of trainedpeople, placed in employment,self-employment or socialdevelopment programmes,including EPWP.

103 168 unemployed peoplewere trained. 55 376 (54%) wereplaced.

3.2 By March 2010, 2 000non-paying enterprises, NGOs,CBOs, and Communityco-operatives supported byskills development.

SETAs committed to supportinga target of 466 non-levy payingenterprises with skillsdevelopment.

829 (78% over target) non-levypaying enterprises weresupported with skillsdevelopment.

3.3 By March 2010, 100 000unemployed people participatein ABET programme, at least70% achieve ABET Level 4

20 000 unemployed peoplehave participated in ABET Levelprogrammes, leading to theachievement of ABET Level 4

Framework and calls forapplication were completed byend of March 2006

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Services and Human Resources DevelopmentSSuucccceessss

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Objective 4. Assisting designated groups, including new entrants to participate in accredited work – integratedlearning and work – based programmes to acquire critical skills to enter the labour market and self –employment.

4.1 By March 2010, 125 000unemployed people assisted toenter and 50% completeprogrammes leading to scarceskills.

SETAs committed to a target of29 568 unemployed learners toenter and 14 784 completeprogrammes leading to scarceskills.

The NSF committed a total ofR 3,44 million to supportinglearners in programmes leadingto scarce skills includinglearnerships and bursaries

The UYF committed to assistingyoung unemployed learnerswith skills development

37 227 unemployed (26% overtarget) learners have enteredand 11 678 (79% of target)completed. 71% Black, 33%women and 2% were peoplewith disabilities

2 300 learners in ESDLEslearnerships supported, 6 941bursaries awarded.

1 452 learners in National YouthService programme and 941learners in School to WorkProgramme

4.2 100% of learners in critical skillsprogrammes covered by sectoragreements from FET and HETinstitutions assisted to gainwork experience locally orabroad.

SETAs committed to a target of8 301 learners

3 693 learners (44% less thanthe target) entered work placesto acquire workplaceexperience.

4.3 By March 2010, 10 000 youngpeople trained and mentored toform sustainable new venturesin operation 12 months aftercompletion of the programme.

SETAs committed to a target of1 669 young people to enternew venture creationprogrammes

NPI committed to assisting 300micro enterprise entrepreneurs

1 731 young people (4% abovetarget) entered new venturecreation programme

327 emerging entrepreneurswere trained

Objective 5. Improving the quality and relevance of provision

5.1 By March 2010, each SETArecognises and supports at leastfive Institutes of Sectoral orOccupational Excellence. (ISOE)

SETAs committed to recognisingand supporting 55 ISOEs

103 organisations wererecognised and supported asinterim ISOE’s

5.2 By March 2010, at least twoprovider institutions perprovince accredited to managethe delivery of new venturecreation qualification.

SETAs committed to supporting33 provider institutes

58 provider institutes (76%above target) supported.

5.3 Measurable improvement inquality of services delivered byskills development institutionsand institutions implementingNQF in support of the NSDS.

All SETA based Education andTraining Quality Assurance units(ETQAs) maintain SAQAaccreditation.

SAQA funded by NSF to supportETQAs

21 SETAs received three-yearETQA accreditation status fromSAQA and Agri- SETA andSASSETA received a conditionalyear-long accreditation.

R 16,8 million grant paid toSAQA to support SETA QualityAssurance services.

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Umsobomvu Youth Fund (UYF) and the National ProductivityInstitute (NPI)

The Umsobomvu Youth Fund (UYF) and the National Productivity Institute (NPI) are the twoagencies whose work closely contributes to meeting the objectives of the NSDS. The NPIbudget allocation forms part of the Programme 3 Vote 17 MTEF allocation. Both of theseagencies have their separate offices, staff and Boards and are Section 21 Public Entities. TheUYF and the NPI produce separate detailed annual reports regarding their activities.

Umsobomvu Youth Fund

The UYF was established in January 2001 by the South African Government and mandatedto facilitate and promote the creation of jobs and skills development among young SouthAfricans, aged primarily between the ages of 18 and 35 years. UYF was funded through theproceeds of the Demutualisation Levy Act of 1998, amounting to R855 million and fulfils itsmandate by making strategic investments that facilitate opportunities for young people toacquire skills, to access jobs or pursue meaningful self-employment opportunities throughvarious enterprise initiatives.

The National Productivity Institute (NPI)

The NPI is an organisation led by an advisory council and board drawn from government,organised labour and organised business. It is dedicated to the development andenhancement of South Africa’s productivity and contributes to socio-economicdevelopment, competitiveness, and ultimately the general improvement of the quality of lifeof all South Africans.




5.4 NSA constituency basedassessment of improvement instakeholder capacitydevelopment

Funding framework developedand referred to NSA forconsideration

Draft framework was developedand tabled to NSA

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Programme PerformanceProgramme 4: Labour Policy and Labour Market Programmes

Labour Policy and Labour Market Programmes is responsible for creating an equitable andsound labour relations environment, including international labour matters, throughresearch, analysis and evaluation of labour policy and through providing statistics on thelabour market:� Labour Relations promotes the establishment of an equitable and peaceful labour

relations environment, including support for the Commission for Conciliation, Mediationand Arbitration

� Labour Policy encompasses research, analysis, evaluation and development of labourpolicy, providing statistical information on the labour market. The main aim is to supportpolicy formulation and the drafting of legislation both in the Department and inGovernment in general

� International Labour Matters represents Government at the International LabourOrganisation, the African Union and the African Regional Labour Administration Centre

� NEDLAC promotes economic growth, participation in economic decision-making andsocial equity by seeking consensus and making agreements on social and economicpolicy and all proposed labour legislation between community organisations, labour,business and Government.

� Sheltered Employment is responsible for the administrative, production and financialcontrol of the work centres for people with disabilities, subsidising operating losses andcapital expenditure of work centres for people with disabilities, subsidising workshops forthe blind in accordance with approved standards.

A Sectoral Determination for the Forestry Sector was published for the first time.

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Labour Relations Registration of tradeunions, employers’organisations,bargaining councilsand statutorycouncils

Percentage andnumber of labourorganisationsregistered

70% of newapplicationsprocessed.

300 existingapplicationsprocessed

83% of newapplicationsprocessed.

All 300 existingapplicationsfinalised.

Employment equityawards

First awardsceremony

June 2005 A decision was takenby the Commissionfor EmploymentEquity to launch theEE Awards System inmid 2006 toemployers and toimplement thesystem in August2007.

Amendments to theEmployment EquityAct (1998) andRegulations

Amendmentssubmitted toNEDLAC andpromulgated

Submitted toNEDLAC bySeptember 2005.Promulgated by May2006.

The AmendedEmployment EquityRegulations havebeen completed andpublished in May2006.

Provide informationon the status ofemployment equity

Publish 2004/05employment equityand employmentequity analysisreports

May 2005 The analysis ofemployment equityreports received in2004 has beencompleted andpublished on thewebsite. The 5th CEEAnnual Report forthe 2004/2005period has also beencompleted andpublished.

Determineminimum conditionsof employment andwages for vulnerableworkers in varioussectors

Publish sectoraldeterminationswithin settimeframes

Forestry: March 2005

Taxi: May 2005

Forestry came intoeffect in April 2006

Taxi came into effectin April 2005

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Review the 2existing sectoraldeterminations

Domestic workerswage review

Domestic workersprovident fundestablished

Shelteredemployment: June2005

Welfare: February2006

Farm workers wagereview: December2005

Domestic workerswage review: August2006

August 2006

Wholesale and RetailFebruary 2006

Shelteredemployment reportcompleted inSeptember 2005.The ECC did notrecommend asectoraldeterminationbefore finalisation ofrestructuring

Welfare to be doneby March 2007

Farm workers reviewcompleted inFebruary 2006

Domestic workersreview completed inNovember 2005

EmploymentConditionsCommissionrecommendedinvestigation in 2008

Wholesale and Retailinvestigation wasdone andpromulgated inFebruary 2006

Provide informationon wagedifferentials

Publish reports onwage differentialswithin set timeframe

Report submitted toEmploymentConditionsCommission:December 2005

Referred to October2007 due to delay indata collection

Implement nationalprogramme ofaction on theelimination of childlabour

Reports on worstidentified forms ofchild labour

Intersectoral childlabour structuresconsisting of NGOs,CBOs, business,labour andgovernment

Departmental childlabour deskimplemented andoperational

Submit reports byMarch 2006

March 2006

March 2006

Reports on worstforms of child labour- Removed fromwork plan due toprioritisation

Intersectoralstructures: Not donedue to therestructuring of theOffice of the Rightsof the Child

Not done due torestructuring of theabove.

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Strengthening CivilSociety

Support worthy newprojects targetingvulnerable workersin rural and remoteareas

8 new projectssupported by April2005

13 projects were supported

Labour Policy Labour marketinformation service

Up-to-date,accessible labourmarket information

New informationcaptured withinone month ofbeing available

New information collectedand updated into thesystem within one monthafter availability. The labourmarket information systemis accessible on theDepartment of Labourintranet.

Monitor the impactof labour marketpolicies andprogrammes byidentifying theDepartment ofLabour’s researchand informationneeds

Quality researchpapers, briefingnotes on labourmarket policy

10 priorityresearch reportscommissioned bythe end of 2005/06

90% of all briefingnotes delivered bythe end of 2005/06

The following researchreports werecommissioned, preparedand completed in 2005/06:� Firm performance,training and skillsdevelopment – results fromEkurhuleni Firm Survey2004� The Return on Trainingand Investment (ROTI)study� Youth employment paper� Client Satisfaction Survey� Position paper on thelabour marketflexibility/rigidity debate� Employment Servicesdiscussion paper� Position paper oncasualisation and atypicalforms of employment inSouth Africa for discussionat NEDLAC� Industrial Action report� Position papers onvarious areas in preparationfor the International LabourConference, ILO GoverningBody meetings and theAfrican Union Labour andSocial Affairs Commission� Annual Labour MarketBulletin

Various policy briefs weredeveloped for the Ministerand senior management.

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Reports on progresswith GDSimplementationwithin government

Measure, aggregatethe impact ofpolicies on thelabour market

Number of GDSprogress reports

Labour MarketReview

Report on state ofskills report

4 GDS progressreports completedby the end of2005/06

Bi-annual in2005/06

Annual in 2005/06

Four quarterly reportsincluding a consolidated reporton the implementation of theGDS Agreement werecompleted and submitted tothe NEDLAC GDSImplementation Committee. Aconsolidated report waspresented at the PresidentialJoint Working Group meetingin July 2005.

Labour Market Reviewpublished and complementedby Annual Labour MarketBulletin

State of Skills report published

InternationalLabour Matters

Influence and shapepolicies in theInternational LabourOrganisation (ILO)to achieve a decentwork agenda

Report compiledand submitted asrequired by theConstitution of theILO

Attend annualconference

Successful International LabourConference and GoverningBody Session were attended inJune, November 2005, andMarch 2006, and South Africaremains a titular member ofthe ILO Governing Body afterbeing re-elected to serve until2008

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NEDLAC Transferpayment toNEDLAC

Percentage ofnegotiations engagingbusiness, labour thecommunity andgovernment to reachconsensus.

Monitor, evaluate andreport on the progress ofthe agreeements signedby the stakeholders atthe Growth andDevelopment Summit

80% of agreementsconcluded.

Reports due in March2005

Details of the ProgrammePerformance of NEDLAC areset out in the NEDLACAnnual Report tabledseperately in Parliament� A successful 10th AnnualSummit presided over bythe Deputy President, washeld in August 2005 withthe theme “Growth, DecentWork, Development andSocial Equity”. A policydiscussion on “Internationaltrade and investment, leverfor promotion of Economicdevelopment andalleviation of Poverty” washeld at the Summit� Collectively the NEDLACChambers identified anddealt with more than 40 keypriority areas that formedthe basis of the workprogrammes of theChambers.� The Executive Council ofNEDLAC held two focussessions on Monetary Policyand Skills Development andASGI-SA� The ManagementCommittee of NEDLAC metfour times in the periodunder review and dealt with14 key outputs

The GDS ImplementationCommittee monitoredprogress on theimplementation of the GDSAgreement. A consolidatedreport was presented at thePresidential Joint WorkingGroup in July 2005

ShelteredEmployment

Restructuringof shelteredemploymentfactories

Submission to Ministeron restructuring options,with recommendations.

Develop and implementturnaround strategy

Restructuring agreedby April 2005

Strategy agreed byMarch 2005.Implementation byMarch 2006

See page 43

See page 43

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Programme PerformanceProgramme 5: Social Insurance

Social Insurance contributes to the Unemployment Insurance Fund and provides for thecompensation of public servants in case of occupational injuries or illness while on dutythrough the Compensation Fund. The Unemployment Insurance Fund and theCompensation Fund publish their own Annual Reports in terms of the PFMA.

The Unemployment Insurance Fund provides benefits to contributors when they become unemployed.(Foto: Liza van Deventer, Pretoria News)

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OOuuttppuutt MMeeaassuurree//IInnddiiccaattoorr TTaarrggeett AAccttuuaall

Funding allocation toprojects and programmes,and monitoring ofprojects

Proportion of availablefunds spent andcommitted.

At least 75% of availablefunds for 2005/06 spentor committed by March2006.

57.8% of NSF income wasspent or committed byMarch 2006.

NSDS Objective 1:Prioritising andcommunicating criticalskills for sustainablegrowth, development andequity

1.2. Information oncritical skills widelyavailable to learners andimpact measured.

Scarce and critical skillslist compiled anddistributed.

The updated list andnational guide to bepublished in September2006.

NSDS Objective 2.Promoting andaccelerating qualitytraining for all in theworkplace

2.6. Annually increasingnumber of peoplebenefiting from incentivestraining for employmentor re-employment in newinvestment and expansioninitiatives.

Annually increasingnumber of people whobenefit from incentivestraining for employment/re-employment in newinvestments andexpansion initiatives.

1 178 new workers of 93SMEs received training.

The NPI established 91future forums and 47turnaround strategies incompanies to prevent joblosses

Programme PerformanceNational Skills Fund

1. Introduction

The National Skills Fund (NSF) was established in terms of the Skills Development Act in 1999.The NSF has received 20% of the skills levy since the introduction of the levy in the year 2000.

The work of the National Skills Fund was given credence when the Minister of Labourannounced new Funding Windows of the NSF at the first National Skills Conference inFebruary 2001. The NSF funding windows are aligned to both the thrust and objectives of theNational Skills Development Strategy.

2. Aim of NSF

The Skills Development Act stipulates that the money in the NSF may be used only for theprojects identified in the National Skills Development Strategy (NSDS) as national priorities orfor such other projects related to the achievement of the purposes of the Act as the Director-General of the Department determines.

3. Achievements

The launch of the NSDS 2005 - 2010 required the NSF to review its funding windows andprocesses to ensure targets and objectives set in the NSDS 2005-2010 are met. The 2005/06financial year was a transitional year and any financial transactions relevant to the NSFfunding windows applicable to the 2000-2005 NSDS has continued to take place in this close-out period.

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OOuuttppuutt MMeeaassuurree//IInnddiiccaattoorr TTaarrggeett AAccttuuaall

NSDS Objective 3.Promoting employabilityand sustainablelivelihoods

3.1. By March 2010, atleast 450 000 unemployedpeople trained of which25% undergo accreditedtraining and 70% areplaced.

90 000 unemployedpeople trained and 70%of trained people, placedin employment, self-employment or socialdevelopmentprogrammes, includingEPWP.

103 168 unemployedpeople were trained and55 376 were placed

3.3. By March 2010,100 000 unemployedpeople participate inABET programme, at least70% achieve ABET Level 4

20 000 unemployedpeople have participatedin ABET Levelprogrammes leading tothe achievement of ABETLevel 4

Framework and call forapplications wascompleted by end ofMarch 2006

NSDS Objective 4.Assisting designatedgroups, including newentrants to participate inaccredited work-integrated learning andwork-based programmesto acquire critical skills toenter the labour marketand self-employment.

4.1. By March 2010,125 000 unemployedpeople assisted to enterand 50% completeprogrammes leading toscarce skills.

NSF contribute to SETAtarget of 29 568

2 300 learners in ESDLElearnerships supportedand 6 941 bursariesawarded

Objective 5. Improvingthe quality and relevanceof provision

5.2. By March 2010, atleast two providerinstitutions per provinceaccredited to manage thedelivery of new venturecreation qualification.

NSF funding frameworkfor new venture creationdelivery grantsdeveloped.

Interim guidlines in place

5.3. Measurableimprovement in quality ofservices delivered by skillsdevelopment institutionsand institutionsimplementing NQF insupport of the NSDS.

SAQA funded by NSF tosupport ETQAs

R 16,8 million grant paidto SAQA to support SETAQuality Assuranceservices.

5.4. NSA constituencybased assessment ofimprovement instakeholder capacitydevelopment

Funding frameworkdeveloped and tabled tothe NSA for consideration.

Draft frameworkdeveloped and tabled toNSA for consideration

5. Projects funded under the National Skills Fund

Apart from the NSF contribution to various success indicators of the NSDS, the followingcomments are worth noting in reference to specific funding windows and projectssupported by the NSF.

Social Development Funding Window

R 183,2 million was spent on the training programmes conducted under the SocialDevelopment Funding window during 2005/06 up to the end of March 2006.

Of the above mentioned amount spent, R3,34 million was allocated for the training ofunemployed people in EPWP-projects. A total of 25 810 unemployed people attended skillsdevelopment courses linked to these EPWP-projects.

Strategic Projects for NSDS 2005 - 2010

A revised model for Strategic Projects has been developed and discussed with variousstakeholders at national and provincial level. Due to a need to align the model with the newimperatives brought about by ASGI-SA/JIPSA- the launch of these projects was delayed andre-scheduled to take place during September 2006.

NSF projects flowing from the NSDS 2001- 2005

The NSF also continued to fund a number of projects flowing from the National SkillsDevelopment Strategy 2001 – 2005. Amongst these projects are the following:

Innovation and Research

A total of nine projects were approved by the Director-General under this funding windowduring 2003. The total amount committed for these projects amounted to R 11,8 million.Seven of the projects were finalised during 2005. The remaining two projects are in theclose-out process. The actual payments made with regard to these projects during 2005/06amounted to R225 828-00.

The two projects mentioned above are:

� Siyavuka Lateral Improvement Foundation (SLIF)

Project objective: To equip unemployed and disadvantaged youth with the skills theyrequire, to enable them to find employment or to start their own micro businesses inCeramic Design and production.

This project was completed in May 2005. All the learners are working in the NewtownIncubation centre.


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� South African Institute of Chartered Accountants (SAICA)

Project objective: To equip workplace providers with the knowledge and skills to developprospective professional accountants and to put in place specific strategies to ensure qualitytraining and development opportunities.

SAICA officials visited all 361 identified training venues to assess whether they have thehuman, information technology and professional resources needed to provide anappropriate learning environment for trainee accountants. SAICA conducted capacitybuilding workshops for more than 200 training officers on the management of learnershipsand assessments.

Strategic projects flowing from the NSDS 2001 - 2005

The process of winding down the strategic projects for NSDS 2001 -2005 continued during2005/06. The NSF prepared draft closure reports as well as guidelines for disposal of assetsand return of unused funds.

By end of March 2006, an amount of R883 million or 74% of the initial R1,1 billion has beendisbursed. � 44 438 learners have benefited from ABET programmes


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The NSF funds numerous projects to enable unemployed people to be skilled for possible employment.

� 35 943 people received additional skills from structured learning programmes� A total of 21 107 SMMEs received skills and other interventions including mentoring � 9 332 learners received nationally recognised learnership qualifications � The 17 projects have collectively achieved a learner profile that is 95% Black, 55% women

and 0.05% people with disabilities.

6. Other major expenditures

6.1 SARS Collection costs

The Skills Development Levies Act determines that the cost of collection incurred by theSouth African Revenue Service (SARS) for the collection of the skills development levies,interest and penalties must be refunded from the National Skills Fund to SARS. The amountclaimable by SARS may however not exceed 2% of the total amount of skills developmentlevies so collected.

In 2005/06 the amount paid to SARS amounted to R55,052 million.


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Programme PerformanceSubprogramme: Sheltered employment

MMeeaassuurraabbllee OObbjjeeccttiivvee: Ensure the effectiveness of sound administrative, production and financial control of thesheltered employment factories for people with disabilities.


ShelteredEmploymentFactories

Restructuring ofShelteredEmploymentFactories

Submission toMinister onrestructuringoptions, withrecommendations.

Develop andimplementturnaround strategy.

Restructuringagreed by April2005.

Strategy agreed byMarch 2005.Implementation byMarch 2006.

Turnaround strategyapproved andimplementationcommenced duringthe period underreview

Department of Labour, Annual Report 2005/06 Report - Departme… · SETA Coordination ensures the...

Documents

Transcript of Department of Labour, Annual Report 2005/06 Report - Departme… · SETA Coordination ensures the...