FoodBev SSP 29 August 2008 · 2015-03-23 · 2 contents contents.....2 chapter one: sector...
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Transcript of FoodBev SSP 29 August 2008 · 2015-03-23 · 2 contents contents.....2 chapter one: sector...
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CONTENTS CONTENTS ............................................................................................................................................... 2 CHAPTER ONE: SECTOR PROFILE.................................................................................................... 3
1.1 Economic Environment 3 1.1.1 South African Macro Economy.................................................................................... 3 1.1.2 The South African Labour Market.............................................................................. 4 1.1.3 The Manufacturing Sector ............................................................................................ 6 1.1.4 Employees in the Manufacturing Sector .................................................................... 7 1.1.5 The Food and Beverages Manufacturing Sector (FBMS) ....................................... 8 1.2 Drivers of Change 16 1.2.1 Policy and Legislative Issues ....................................................................................... 16 1.2.2 Economic and Labour Market Changes................................................................... 17 1.2.3 Social Issues ................................................................................................................... 17 1.2.4 Technological Advancement ...................................................................................... 17 1.3 Conclusions 17
CHAPTER TWO: DEMAND FOR SKILLS........................................................................................ 19 2.1 Current Employment Patterns 19 2.1.1 Qualification of Employees......................................................................................... 19 2.1.2 Employment Trends and Skill Needs ....................................................................... 21 2.1.3 Future Employment Signals ........................................................................................ 24 2.2 Replacement Demand 25 2.3 Conclusion 25
CHAPTER THREE: SUPPLY OF SKILLS............................................................................................. 26 3.1 National Skills Supply 26 3.2 Quality and Adequacy of Supply 27 3.2.1 Mathematics and Physical Science............................................................................. 27 3.2.2 Skills Supply: Food and Beverages Manufacturing Sector .................................... 27 3.3 FET: Further Education 28 3.4 Higher Education and Training (HET) 29 3.5 Skills Development at Companies 31 3.6 Conclusions 32
CHAPTER FOUR: SCARCE AND CRITICAL SKILLS IDENTIFICATION ............................... 34 CHAPTER FIVE: SMALL BUSINESS, ENTREPRENEURIAL OPPORTUNITIES AND OTHER NSDS PRIORITIES................................................................................................................................... 51
5.1. Growth and Development Strategies 51 5.2. Quality and Adequacy of Provision 52 5.2.1. Alignment of Skills with Sector Needs .................................................................... 52 5.2.2. Scarce Skills.................................................................................................................... 52 5.2.3. Support for Entrepreneurial and Small Business Development......................... 52 5.3. Description of Projects 52 5.3.1. Skills Priority Projects ................................................................................................. 53 5.3.2. Capacity Building Projects .......................................................................................... 53 5.3.3. Stakeholder-run Projects............................................................................................ 53
Annexure A: References........................................................................................................................ 54 Annexure B: Scope of Coverage of Food and Beverages Manufacturing Sector ...................... 56 Annexure C: List of Scarce Skills ......................................................................................................... 60 Annexure D: Proposed Methodology for Validating Scarce and Critical Skills ......................... 68
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CHAPTER ONE: SECTOR PROFILE
1.1 Economic Environment
1.1.1 South African Macro Economy The South African economy is currently expanding at a rate of 4,9% which has implications for job creation, the broadening of the consumer base and improving the environment for investments to promote further economic growth. Although these are exciting economic times, much still needs to be done to ensure that growth is accelerated and sustained in the future. Attention must be focused on the challenges faced in competitive global markets, and the rapid technological developments among others that impact the growth of the South African economy (DoL, 2007). Recently, the South African economy has experienced various “shocks”, which have resulted in a slower growth rate. In particular, electricity shortages coupled with interest rate hikes have contributed to slower growth. Statistics South Africa reports that the economy grew by only 2,1% in the first three months of 2008, a rate less than half recorded in the first quarter of 2007. In fact, the rate of growth in the first quarter of 2008 is the lowest recorded in six years (Economist, 2008). The manufacturing sector, the specific focus of this report, experienced a significant drop in output levels between 2007 and 2008. Despite these shortfalls, the South African economy is on a rebound as power shortages ease. Mining and manufacturing for instance, which together account for one-fifth of GDP, have recovered to some extent, but overall economic growth remains slow as high interest rates take their toll on consumer spending (Seria & Wessels, 2008). In terms of industrial output South Africa is the leading economy in Africa and its manufacturing sector is growing. During 2006 GDP was an estimated R117 billion (DoL, 2007). Furthermore real economic growth according to the World Bank (2007), reached 5% each year between 2004-2006. This momentum continued into the first half of 2007. The South African economy has thus experienced a general upsurge which started in 1999 and recent growth is set to sustain this momentum. The Accelerated and Shared Growth Initiative for South Africa (ASGI-SA) aims to achieve an economic growth rate of 4,5 % per annum between 2005 and 2009, and an average rate of 6% between 2010 and 2014 (FoodBev SSP, 2007). In line with ASGI-SA, the government has identified priority areas to stimulate and sustain economic growth including:
• Increasing Exports o To accelerate investment in areas of competitive advantage. o Growing the manufacturing sector is considered the best way to enhance export
capabilities because of its strategic importance within the wider economy. o The manufacturing sector has strong potential to grow despite current lags and
underperformance. o Adding value to primary products in the manufacturing sector presents challenges
related to the lack of a skilled labour force to match the technological demands of the sector. There is however still opportunity for labour to be absorbed in the sector.
• Increasing Productivity o Increasing levels of productivity allow for the creation of jobs for unskilled and semi-
skilled labour in the economy. o Small business development serves as a vehicle to achieve this. The small business sector
contributes 33% to GDP and employs 4.4% of the workforce. o Many small businesses benefited from training in 2006/2007and this has enhanced efforts
to increase productivity in the sector.
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• Improved Public Sector Performance o This can be achieved by removal of bureaucratic red tape. o In some instances economic development is hindered by policies and regulations that
make the market inaccessible to new and emerging businesses. o Experts have noted that within the export sector there is a need to have competitive
market entrance guidelines in place.
• Enhance Infrastructure o Better infrastructure needed in terms of telecommunications, transport, electricity and
water. o To this extent Eskom has expanded its distribution network to ensure reliability of
supply given the high demand for electricity in South Africa. o The economy has also placed pressure on Transnets’ freight logistics capacity and peak
investment activity is set to occur between 2007 and 2009. o Investment in public infrastructure also poses skills development challenges, which
require urgent attention. All of the above have definite implications for the labour market in South Africa. Government priorities are focused in key areas in which economic growth can be fast tracked. A description of macro-economic trends and a focused analysis of developments in the manufacturing sector are needed to better understand the implications for the labour market and skills development in the country. However as mentioned earlier the economy has taken a few knocks recently, the Reserve Bank raised the repurchase rate about three times since the last quarter of 2007 to curb the growing inflation rate (Figure 1). Figure 1: Repurchase Rate in the South African Economy
Repurchase Rate Trends in SA Economy
0
2
4
6
8
10
12
14
16
2000 2001 2002 2003 2004 2005 2006 2007
Source: Adapted from SARB Annual Report, 2007
What this means essentially is that the rate at which banks borrow funds from the Reserve Bank to meet the gap between the demand they are facing for money (loans) and how much they have on hand to lend, and therefore a possible shrinking effect on the growth of the economy. 1.1.2 The South African Labour Market Consistent with a growing economy, employment growth has been quite strong in the last three years to September 2007, with more than 1.5 million people securing employment (Figure 2). However, the number of economically active people in September 2007 was lower (17,178,000)
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than in the same period in 2006 (17,191,000), resulting in a slight decline in the labour force participation rate from 57.3% to 56.7%. Figure 2: Key Labour Force Measures (‘1000)
Source : StatsSA Labour Force Survey, September 2007
This decline is attributed to the expansion in the working age population. But the current slow down in the global economy because of sharp increases in the cost of energy and food could also be a factor in this decline. The distribution of employment among industries shown in Table 1 shows that the trade sector, including wholesale and retail, continues to be the biggest employer with 2,952,000 employees, making up about 22,3% of the total employed workforce, though its overall share of employment has decreased by 1,6% from that recorded in September 2006. The manufacturing sector still retains its position as the third largest employer in the economy (after the services sector), employing about 1,799,000 people. The percentage share of total employment (13.6%) by the manufacturing sector remains the same as in 2006. Table 1: Distribution of Employment By Industry (‘1000)
Sep ‘01 Sep ‘02 Sep ‘03 Sep ‘04 Sep ‘05 Sep ‘06 Sep ‘07 Industry
Numbers (in Thousands) Agriculture 1 178 1 420 1 212 1 063 925 1 088 1 164 Mining 554 559 552 405 411 398 455
Manufacturing 1 620 1 633 1 550 1 714 1 706 1 737 1 799 Utilities 94 84 91 99 100 119 116 Construction 634 605 664 824 935 1 024 1 066 Trade 2 454 2 194 2 429 2 542 3 024 3 055 2 952 Transport 546 574 537 563 616 611 596 Finance 1 035 1 084 1 098 1 147 1 296 1 309 1 340 Services 1 999 2 043 2 180 2 185 2 192 2 319 2 452 Private households 1 034 2 029 1 075 1 075 1 067 1 108 1 244
Unspecified 42 72 34 26 29 33 51 Total 11 181 11 296 114 224 11 643 12 301 12 800 13 234
Sep ‘01 Sep ‘02 Sep ‘03 Sep ‘04 Sep ‘05 Sep ‘06 Sep ‘07 Industry
Percentage Agriculture 10.5 12.6 10.6 9.1 7.5 8.5 8.8 Mining 5 5 4.8 3.5 3.3 3.1 3.4 Manufacturing 14.5 14.5 13.6 14.7 13.9 13.6 13.6
Utilities 0.8 0.7 0.8 0.9 0.8 0.9 0.9
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Construction 5.7 5.4 5.8 7.1 7.6 8 8.1 Trade 21.9 19.4 21.3 21.8 24.6 23.9 22.3 Transport 4.9 5.1 4.7 4.8 5 4.8 4.5
Finance 9.3 9.6 9.6 9.9 10.5 10.2 10.1 Services 17.8 18.1 19.1 18.8 17.8 18.1 18.5 Private households 9.2 9.1 9.4 9.2 8.7 8.7 9.4 Unspecified 0.4 0.6 0.3 0.2 0.2 0.3 0.4 Total 100 100 100 100 100 100 100 Source: StatsSA, Labour Force Survey, 2007
The statistics contained in Table 1 illustrate that the actual labour force of the manufacturing sector increased in from 2005 to 2006 (31,000 workers) and 2006 to 2007 (62,000 workers). But statistics for the manufacturing sector indicate a decrease of 4000 employees at March 2008, compared with March 2007 (Stats SA, 2008). This is in part due to inflation and rising costs but it is also attributable to the contractions experienced in the labour force of other industries prior to 2008, particularly in the primary sectors of agriculture and mining that supply raw materials to sectors such as manufacturing, electricity and construction. The labour absorption rate presented in Table 2 suggests a steady increase in the economy as a result of the expansion in employment in September 2007. The percentage of working age South Africans with jobs rose in six of the nine provinces. Only in the Western Cape, Northern Cape and KwaZulu-Natal did absorption rates decline (Stats SA, 2007). It should be noted that absorption rates are generally skewed to the country’s wealthiest provinces, namely Western Cape and Gauteng, suggesting that labour is absorbed in regions where there are a more and larger employers. Interestingly, while absorption declined slightly in the Western Cape, it increased in Gauteng, suggesting a preference for labour mobility to the latter province. The same can be said of Mpumalanga and the Free State. Limpopo which generally has a low labour absorption rate also experienced an increase in labour absorption between 2006 and 2007. This could be the result of improved economic growth and an increase in the number of employers in that province. These trends have implications for skills development. They suggest an increased demand for labour and skills and the importance of location and availability of training programmes to meet these needs. Table 2: Absorption Rate by Province Sept 2004 – Sept 2007
Absorption rate by province
Province Sep ‘04 Sep ‘05 Sep ‘06 Sep ‘07
Western Cape 53.7 54.3 57.6 56.1
Eastern Cape 31.9 33.9 34.6 37.2
Northern Cape 40.3 40.7 43 42.5
Free State 40.7 41.6 40.7 43
KwaZulu-Natal 35.3 36 39.8 37.1
North West 34.8 38.4 37.1 39.4
Gauteng 49 53.3 53.2 54.6
Mpumalanga 40.6 39.6 41.4 45.2
Limpopo 28.2 27.6 25.8 28.4
South Africa 39.7 41.4 42.7 43.5 Source: StatsSA, Labour Force Survey, 2007
1.1.3 The Manufacturing Sector Employment in the manufacturing sector is primarily of a formal nature (83%). Forty-one percent of employment in the sector is provided by large firms. Medium enterprise increased its share of employment from 13% to 20% between 2005 and 2007 as shown in Table 3. This suggests that
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medium enterprises are now either employing more workers or that there has been an increase in the number of medium enterprises, in the manufacturing sector as a whole. The latter scenario is likely due to unbundling of larger enterprises. Table 3: Size of Firms and Percentage of Employment in the Manufacturing Sector
% of Employment Size of Firms 2005 2007
Micro Enterprise 10% 11% Small 30% 28% Medium 13% 20% Large 46% 41%
Total 100% 100% Source: StatsSA, Labour Force Survey, 2007
1.1.4 Employees in the Manufacturing Sector Generally, the manufacturing sector employs permanent staff (77.3%), but temporary or periodic contract workers are employed in times when the need for production and service delivery is greater as suggested by figures in Table 4. With the increase in both domestic an international markets for manufactured goods, the casualisation trend is likely to continue. It is therefore important that an analysis of this trend for at least the last 4 years be included in the profiling of the sector. This will help to determine the degree to which ‘casualisation’ is taking place in this sector. Table 4: Employment Status of Employees in the Manufacturing Sector
Employment Status Percentage of Employees
Permanent 77.30% Period contract 6.10% Temporary 9.10% Casual 6.30%
Seasonal 1.20%
Total 100% Source: StatsSA, Labour Force Survey, 2007
Though Africans constitute the majority of employees in the manufacturing sector, they are under represented in the highly skilled positions. In absolute numbers, Whites still hold the majority of highly skilled jobs despite rigid equity requirements stipulated by the National Skills Development Strategy (NSDS) even though in absolute numbers they constitute a minority of the population (Table 5). As the sector grows, there will be increasing demand for highly skilled workers and these workers will have to be sourced from the African population and among women. If the pool of skilled workers within the African population remains low, equity requirements are unlikely to be met. Table 5: Distribution of Occupational Categories in the Manufacturing Sector by Population Groups African Coloured White Indian Total Numbers 2 102 000 502 000 393 000 136 000 Managers 1.90% 3.20% 4.10% 9.80% Professionals 1.30% 2.60% 1.30% 3.10% Technical and associates 3.70% 5.60% 3.10% 7.40%
Clerks 4.10% 8.40% 6.10% 14.70%
Service workers 2.70% 2.80% 0.30% 0.60% Skilled agricultural 0.50% 1.00% 0 0
Craft and related trade 34.10% 22.30% 7.10% 17.20% Plant and machine operators 30.30% 28.30% 10.70% 25.80%
Elementary Occupations 21.40% 25.70% 2.00% 4.90% Unspecified 0 0.20% 0 0
Total 100 100 100 100 Source: StatsSA, Labour Force Survey, 2007
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1.1.5 The Food and Beverages Manufacturing Sector (FBMS) Description of Sector
The FBMS comprises core economic activity in South Africa, with supply-chain links to primary producers, processing and logistics, domestic retail and exports. In addition to contributing to a significant trade surplus every year, it is a key provider of business opportunities and therefore employment. Industrial Activity in the Food and Beverages Manufacturing Sector based on Economic Trends within the Manufacturing Industry
Figure 3: Production Capacity and Labour Productivity
Source: StatsSA Employment and Earnings Survey
Production capacity in the overall manufacturing sector is more than 85%, but the non-durable goods manufacturing sector in which most of the food and beverage industries are located, are lagging behind the durable goods manufacturing sector. This means the food and beverage industries still have room to expand production. Because goods produced in the FBMS are perishable, they cannot be stockpiles. Production is demand driven and while there is scope for increased production, if it is not met by a demand for those goods, there will be surplus unsold stocks resulting in profit loss.
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Figure 4: Production and Investment Activities in Food Manufacturing Since 2006
Source: BER
In the food manufacturing sector, significant numbers of enterprises have reduced fixed investments from the second quarter of 2008 – in contrast to of the trend during 2007. This has resulted in reductions in production volumes, resulting from the fact that since the second quarter of 2008 many enterprises find that their stock of finished goods is greater than the market demand, because, for instance, of the current rise in food prices. Figure 5: Production and Investment Activities in the Beverage Manufacturing Sector
Source: BER
In contrast to the food manufacturing sector, industrial activities in the beverage manufacturing sector are generally positive. The percentage of companies reporting increased investment is greater
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than those experiencing a decline in investment. While many companies report an increase in production, significant numbers report that stocks are insufficient to meet market demand. Employers in the FBMS
Companies operating within the FFBMS are grouped according to their industrial activities in five sub-sectors, namely:
• Baking, Cereals, Confectionary & Snacks (BCCS)
• Beverage Manufacturing
• Dairy Manufacturing
• Manufacture of Food Preparation Products
• Processed and Preserved Meat, Fish, Fruit and Vegetables. Baking, Cereals, Confectionary and Snacks This sub-sector includes the manufacture of breakfast foods, bakery products, cocoa, chocolate, sugar-confectionary and nuts. The sub-sector is comprised mainly of companies involved in salting, baking, drying and cooking processes. Beverage Manufacturing This sub-sector manufactures spirits, beer, malt, soft drinks and mineral water, with wine and beer being major outputs. Dairy Manufacturing All dairy products are manufactured by companies in this sub-sector including fresh milk, cheese, butter, ice-cream, yoghurt and edible ice. Manufacture of Food Preparation Products This is the largest sub-sector and it produces goods that are used in making a meal or beverage. Examples of these products include noodles, spices and sauces. Companies Registered by Standard Industrial Classification (SIC)
Table 6: Registered and Levy Paying Companies by SIC and Sub-Sector Group
2007 2008
SIC Description Reg Pay Levy Reg
Pay Levy
Baking, Cereals, Confectionary and Snacks 30312 Manufacture of breakfast foods 40 10 41 6 30410 Manufacture of bakery products 1201 257 1226 203
30430 Manufacture of cocoa, chocolate and sugar confectionery 138 37 141 36 30492 Manufacture of nut food 56 22 56 15
TOTAL 1435 326 1464 260
Beverage Manufacturing
30500 Manufacture of beverages 135 40 141 35
30510 Distilling, rectifying and blending of spirits, alcohol production from fermented materials and manufacture of wine 391 112 403 95
30520 Manufacture of beer and other malt liquors and malt 56 7 63 8 30521 Breweries (except sorghum) 74 13 77 14 30522 Sorghum beer breweries 21 2 22 1 30523 Manufacture of malt 16 2 16 3 30530 Manufacture of soft drinks, production of mineral waters 135 41 146 43
TOTAL 828 217 868 199
Dairy manufacturing 30200 Manufacture of dairy products 260 83 268 74
30201 Processing of fresh milk 108 23 110 23 30202 Manufacture of butter and cheese 25 9 26 9 30203 Manufacture of ice cream and other edible ice 84 22 87 14
30204 Manufacture of milk powder. Condensed milk and other edible milk products 26 6 26 3
TOTAL 503 143 517 123
Manufacture of Food Preparation Products 30113 Production of lard and other edible fats 6 0 6 0
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30140 Manufacture of vegetable and animal oils and fats 41 17 47 19 30141 Manufacture of crude oil and oil seed cake and meal 17 6 18 5 30142 Manufacture of compound cooking fats, margarine and edible oils 14 7 14 8
30401 Manufacture of food preparation products 1090 187 1070 158
30440 Manufacture of macaroni, noodles and similar farinaceous products 28 7 28 6
30490 Manufacture of other food products n.e.c 1244 217 1263 190 30491 Manufacture of coffee, coffee substitutes and tea 66 20 69 18
30499 Manufacture of spices, condiments, vinegar, yeast, egg, products, soups and other food products 143 69 146 54
TOTAL 2649 530 2661 458
Processed and preserved meat, fish, fruit & vegetables
30100 Production, processing & preservation of meat , fish, fruit, vegetables, oils and fats 378 94 417 94
30110 Production, processing & preserving of meat and meat products 875 187 901 162
30112 Manufacture of prepared and preserved meat, including sausage 198 47 209 44
30120 Processing and preserving of fish and fish products 190 68 195 59
30121 Manufacture of canned, preserved and processed fish, crustaceans and similar foods 49 19 51 19
30130 Processing and preserving fruit and vegetables 264 62 272 60
30131 Manufacture of canned, preserved, processed and dehydrated fruit and vegetables (except soup) 96 34 101 29
Unknown 62 10 64 9
TOTAL 2112 521 2210 476
TOTAL: ALL 7527 1737 7720 1516 Source: FoodBev Seta
Figure 6 illustrates the respective distribution of companies in five sub-sectors FBMS. Figure 6: Distribution of Companies according to Sub-sector
Distribution According to Sub-Sector Groups
19%
11%
7%
34%
29%
Baking, Cereals, Confectionaryand Snacks
Beverage Manufacturing
Dairy manufacturing
Manufacture of FoodPreparation Products
Processed and preserved meat,fish, fruit & vegetables
Source: FoodBev Seta, 2008 Registered Companies
There have been marginal changes in the percentage distribution of companies in the various sub-sectors since the last SSP update in2007. The manufacture of food production products, for instance, has increased to 34% from 33% and the beverages manufacturing sub-sector now represents 11% of all companies up from 12% previously. This however does not mean that there are now more companies in the food production sector and fewer companies in the beverages sector. Quite the opposite is true in fact.
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Figure 7: Comparison of Number of Companies in Sub-sectors 2007 & 2008
Sub-Sector Distribution of Companies 2007 & 2008
0
500
1000
1500
2000
2500
3000
Baking,Cereals,
Confectionaryand Snacks
BeverageManufacturing
Dairymanufacturing
Manufacture ofFood
PreparationProducts
Processed andpreserved meat,
fish, fruit &vegetables
2007
2008
Figures extracted from 2007 SSP update and registered company data, 2008
There has been a slight increase in the number of companies in all sub-sector groups. This indicates some growth in the FBMS. The sub-sector that has grown most significantly is that of processed and preserved meat, fish, fruit and vegetables (98 additional companies), followed by the beverage sub-sector (40 additional companies), the dairy sub-sector (14 additional companies) and the manufacture of food production companies with an increase of 12 companies. The number of companies FBMS grew by overall by 9% since the last SSP update. Figure 8: Size Categories of Levy Paying Companies
836
238163
0
100
200
300
400
500
600
700
800
900
Size Categories of Levy Paying Companies 2008
small (0-49)
medium (50-149)
large (150+)
Source: Food and Beverage registered company data, 2008
There has been a decrease of 12% in the number of levy-paying companies in the FBMS since 2007. (Figure 8).There are more firms represented in the medium and large enterprise categories, while there has been a decrease in the number of small firms since 2007. A similar scenario emerges in analysis of the size categories of firms who submitted WSPs in 2007/2008 (Table 9). Figures indicate an increase in the number of medium enterprises in the sector, although the sector is still dominated by small enterprise. This trend is likely attributable to the
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unbundling of large firms to medium sized firms and to the consolidation of small enterprises, resulting in an increase in medium enterprises, which employ between 50 and 149 workers. Figure 9: Size Categories of Companies who submitted WSPs 2007/2008
141
113128
0
20
40
60
80
100
120
140
160
0-49 50-149 150+
size category
Size Categories of Companies who submitted WSPs
0-49
50-149
150+
Source: Food and Beverage registered company data, 2008
The provincial spread of companies has remained constant since 2007 in provinces with the greatest number of employers namely Western Cape, Gauteng and KwaZulu Natal. But, however the actual number of employers has decreased in the larger provinces. For example, 41.8% of sector employees are employed in the Western Cape, whereas in 2007 the figure was 54%. In Gauteng employer representation has decreased from 36,6% in 2007 to 30,7% in 2008. And in KwaZulu Natal, employer representation has decreased from 24% in 2007 to 11,6% in 2008. This suggests that other provinces are absorbing greater numbers of workers as a result of increasing numbers of enterprises in those provinces.(Figure 1.10) Figure 10: Provincial Distribution of Employers 2008
Provincial Distribution of Employers
41.8
30.7
11.6
7.1
2.1 2.1 1.9 1.6 1.10.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Weste
rn C
ape
Gaute
ng
KwaZulu
Nat
al
Easter
n Cape
Free S
tate
North W
est P
rovin
ce
Limpo
po
Mpumalanga
Northern
Cap
e
per
cen
t
Source: Food and Beverage Seta WSPs
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Employees in the FBMS
The equity profile of employees in the sector has not changed significantly since the last SSP (2007). White males constitute the majority of highly skilled employees, while the majority of Africans are employed at the lower end of the skills scale (Figure 11). Men are employed in greater numbers in all occupations, except in the occupations of machine operators and drivers where women outnumber men. Figure 12 indicates that no men occupied positions of machine operators and drivers in the sector but this might be due to the fact that the information is based on sample data provided by companies who submitted WSPs. Men occupy higher skilled occupations than women; with the greatest percentage of women employed in the labourer and machine operator categories in the sector. Figure 11: Equity Breakdown of Employees
Equity Breakdown of Empoyees
48
32
60
50
59
43
32 32
52
68
40
50
41
57
68 68
0
10
20
30
40
50
60
70
80
Clerical &
Admin
Work
ers
Community
Work
ers
Labourers
Machine O
perato
rs &
Driv
ers
Profe
ssio
nals
Sales Work
ers
Senior O
fficials A
nd Managers
Technician
s & T
rades
Work
ers
perc
ent
African
White
Source: FoodBev WSP data 2008
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Figure 12: Gender Breakdown of Employees by Occupational Category
Gender Breakdown of Employees by Occupational Category
72 73
61
0
9384 82
7276
28 27
39
100
716 18
2824
0
20
40
60
80
100
120
Cleric
al &
Adm
in W
orkers
Comm
unity
Work
ers
Laboure
rs
Mac
hine
Opera
tors
& D
river
s
Profe
ssionals
Sales
Work
ers
Senio
r Offi
cials
And
Man
ager
s
Tech
nicia
ns & T
rades
Work
ers
Tota
l
per
cen
t
Male
Female
Source FoodBev SETA WSP 2008
In terms of the provincial distribution of employees in the sector, greater numbers of employees are found in provinces that also have greater numbers of employers, such as in the Western Cape, Gauteng, KwaZulu Natal and Eastern Cape. The next highest concentration of employees is in Mpumalanga and Limpopo, two provinces that have recently recorded higher employment absorbency rates as noted earlier in this report. Figure 13: Provincial Distribution of Employees
30.0
22.3
14.3
9.4
5.9 5.5 4.9 4.92.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Wes
tern
Cap
e
Gaute
ng
KwaZ
ulu
Natal
Easte
rn C
ape
Mpu
malan
ga
Limpo
po
Free
State
North
Wes
t Pro
vinc
e
North
ern
Cape
Provincial Distribution (%) of Employees
Source FoodBev SETA WSP 2008
The age range of the workforce in the FBMS is between 35 and 55 years. Youth are not employed in significant numbers.
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Figure 14: Age Breakdown of Employees by Occupational Category
Age Breakdown of Employees by Occupational Category
0.0
20.0
40.0
60.0
80.0
100.0
120.0
Cleric
al &
Adm
in W
orkers
Comm
unity W
orker
s
Laboure
rs
Mac
hine
Operat
ors &
Driv
ers
Profe
ssionals
Sales
Work
ers
Man
ager
s
Technic
ians
& Tra
de W
orkers
Total
per
cen
t
Aged < 35
Aged 35 t0 55
Aged > 55
Source FoodBev SETA WSP 2008
1.2 Drivers of Change There are many factors that drive the direction in which the FBMS is moving and these have an effect on the existing skills base and skills development. 1.2.1 Policy and Legislative Issues Various strategies have been put in place by government in recognition of the importance of research in the sector. According to the PAMTS (2008) the following are important to consider: Strategy Description Microeconomic Reform Strategy (MRS)
This highlights the importance of investment in human resources, research and development, innovation and the adoption of new technologies. Key drivers of performance of export sectors and include: supporting product design and innovation, improving supply chain logistics and strengthening sectoral partnerships. The need for increased co-ordination of sector strategies by government, as well as the integration of black economic empowerment (BEE) and small business objectives in sector strategies are indicated
National Research and Development Strategy (NRDS)
A strategy initiated by the Department of Science and Technology (DST) and aims to ensure that national technology resources are better developed, focused and utilised. The strategy identifies four Innovation Missions for accelerating economic growth, sustainable wealth creation and improving quality of life. Advanced Manufacturing is one of the Missions, with a focus on technological innovation, technology demonstration, new business incubation and enhanced networks.
Integrated Manufacturing Strategy (IMS)
This strategy aims to support the MRS and is closely linked to the advanced manufacturing mission of the NRDS. The IMS recognises that the future competitiveness of the manufacturing sector depends on mastering advanced technologies and moving towards knowledge-intensive goods and services. Implementation of the strategy is supported by Customised Sector Programmes (CSPs) for selected sectors, including clothing and textiles, agro-processing, metals and minerals, tourism, automotive and transport, crafts, chemicals and knowledge-intensive services.
Technology Achievement Index (TAI)
This captures how well a country creates and diffuses technology and builds a human skills base - issues that are clearly important to support a globally competitive manufacturing industry. The DDST recently updated South Africa’s TAI, and released provincial level data for the first time. Gauteng was identified as having the highest TAI, followed by the Western Cape and Free State.
Advanced This was developed to bring together related elements of these various strategies and
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Manufacturing Technology Strategy (AMTS)
initiatives, to improve the competitiveness of the manufacturing industry
Source: 1.2.2 Economic and Labour Market Changes Within the current economic context, the FBMS must take into consideration economic developments that affect the labour market and skills. Rising fuel and food costs as well as shortages of electricity negatively affect the sector. This leads to limited and reduced production of goods and the trend towards increasing imports. This negatively effects growth of the sector and the labour market. Another important factor to consider is the FBMS’s reliance on agriculture. If there is a negative trend in the agricultural sector the FBMS sector is directly influenced. Reduced production leads to a reduction in the demand for labour in the sector. Yet, the FBMS also lends itself to a wealth of opportunities in terms of employment and empowerment. The nature of its manufacturing processes produces demand for manual labour and small manufacturing operations are easily established to cater for market niches with minimal investment (PAMTS, 2008). Furthermore, low levels of investment, a lack of technological innovation and migration of skilled labour to other regions and indeed other sectors negatively impacts on the labour market for this sector. 1.2.3 Social Issues HIV/AIDS is a crucial factor to consider when analysing the FBMS. Prevalence rates are high among workers in the sector and it is predicted that these will increase in future. The majority of workers in the sector fall into the age bracket in which HIV infection rates are particularly high in South Africa. 1.2.4 Technological Advancement According to PAMTS, Western Cape, market trends defining the FBMS have been identified as convenient foods, health foods, variety foods, food safety, eco-friendly foods and value supply consolidation. Relevant technology trends including intelligent packaging, biodegradable packaging, new cultivars for unique product innovation, hydroponics and tunnel farming among others need to be developed to match advances within the sector. These trends require innovation and a suitable skills base.
1.3 Conclusions The Food and Beverages Manufacturing Sector is a major employer within the overall manufacturing sector. The sector lends itself to opportunities for economic growth and empowerment because there is room for small business growth and a reliance on semi-skilled labour in small manufacturing processes. There are however, constraints placed on the sector as a result of macro-economic trends, such as high inflation and increases in fuel and food prices resulting in reduced consumer demand for products. HIV/Aids places significant constraints on sustainable sector growth. Although there has been an increase in the number of companies operating in the sector, most of these are small enterprises employing fewer than 50 workers. There has been a decrease in the number of large enterprises in the sector and an increase in the number of medium enterprises as a result of unbundling and consolidation processes. This has implications for skills development because small enterprises are often unable to spare time and money for skills development
18
programmes. Secondly increases in the repurchase rate set by the Reserve Bank have also contributed to contraction in the sector, especially in the cases of larger, capital intensive companies who borrow at high interest rates. This has resulted to the loss of labour to medium enterprises. Dependence on the agricultural sector also has major implications for the FBMS. Decline in production and reductions in crop yields and stocks, for example, have negatively affected the sector. Increasing imports of food due to domestic demand for cheaper goods has further hampered growth of the FBMS. .
19
CHAPTER TWO: DEMAND FOR SKILLS In this chapter an analysis of both current demand and future demand signals is provided. The chapter focuses specifically on:
• Current employment trends with emphasis on qualification of employees and how this has changed over the last three years
• Employment trends with focus on sectoral and occupational trends as well as current economic indicators that are affecting the demand for skills and skills development in the FBMS.
• General business and political conditions that are likely to affect skillS demand and development in the near future.
2.1 Current Employment Patterns 2.1.1 Qualification of Employees This section outlines the qualification composition in relation to the skills in demand in FBMS. Data in Table 7 indicates that though the Africans make up almost 60% of the employees, most of them are employed as semi-skilled and unskilled labour. However, there has been an improvement in the past year. The percentage of Africans with HET qualification has increased from 42.7% to 49.2% in 2007/2008. This could indicate that more Africans are gaining higher qualification at the entry level and/or that equity regulations are having a desired effect. At the lower end the qualifications scale the opposite appears to be the case. Almost all the employees (99.7%) with below GET qualification are Africans compared to 93% in 2007. Two reasons may account for this difference: either the non-Africans who used to fall under this qualification category have acquired higher qualifications and moved up the scale or have left the sector or an increasing number of Africans with this low qualification are entering the sector. Table 7: Current Qualifications Profile of the Workforce
African Coloured Indian White
NQF Band NQF Level
m f d m f d m f d m f d
NQF 8 32 11 0 9 7 0 21 11 0 147 58 0
NQF 7 128 88 1 53 48 1 65 50 0 711 313 0
NQF 6 612 341 2 214 162 1 230 138 0 1355 783 0 HET NQF 5 1565 669 7 638 394 1 433 170 7 1925 1018 0
NQF 4 7439 2783 20 2926 2185 16 911 438 9 2606 2381 0
NQF 3 4607 1551 10 963 962 0 275 84 4 286 253 0 FET NQF 2 4886 1691 15 1424 1310 9 220 40 1 435 274 5
GET NQF 1 5808 2964 11 1255 1378 9 141 19 1 200 72 2
Below GET 4330 1110 11 884 1096 7 27 2 0 12 11 0
No proof of qualification 7344 2618 20 1049 804 5 680 248 3 1098 795 4
TOTAL 36751 13826 97 9415 8346 49 3003 1200 25 8775 5958 11
Source: WSP 2007-2008
20
Figure 15: Equity breakdown by qualification
Equity Breakdown by Qualification Level
49.2
84.8
97.7 99.7
50.8
15.2
2.3 0.30.0
20.0
40.0
60.0
80.0
100.0
120.0
HET FET GET Below GET
per
cen
t
African
White
Source of data: WSP 2007/08 Table 8 presents a comparison of qualification of employees in 2007 and 2008. While the percentage of workers with NQF Level 8 has not changed since last year there are some significant changes at other levels. For example the numbers of workers with qualifications below GET has declined from 13% to 10.3%, while the numbers with NQF Level 3 have increased by 1.8% to 12,4 % in 2008. Table 8: Qualification profile of employees in 2007 & 2008 Compared
2007 2008
Total 60846 727788
NQF Band NQF Level Percent Percent
NQF 8 0.4 0.4
NQF 7 1.9 2.0
NQF 6 5.1 5.3 HET NQF 5 9.6 9.4
NQF 4 30.1 29.8
NQF 3 10.6 12.4 FET NQF 2 13.1 14.2
GET NQF 1 16.1 16.3
Below GET 13.0 10.3
Source : Data extracted from 2007 and 2008 WSPs (those whose qualifications are not stated were excluded from the calculations)
21
Figure 16: General increase in labour demand versus qualification of workforce demanded
Figure 16 provides a summary of the demand for workforce versus the qualification of workers demanded. Generally the FBMS workforce has grown over the last three years. And as noted in the last SSP update, the qualification levels of the workforce have also grown. The margin of increase in qualification (defined as the gap between Qual 1 and Qual 2 in Figure 2.2) has been more than the increase in the general quantity of labour over the last three years. This could be a reflection of the impact of skill development programmes and the increase in qualification of new recruits. It could also be attributed to the increase in supply of higher qualifications in the labour market. Chapter Three will elaborate further in this regard.
2.1.2 Employment Trends and Skill Needs As noted in Chapter One, the share of the total workforce of the manufacturing sector within which FBMS falls has been relatively stable. However, the percentage change in employment levels between 2001 and 2007 for other sectors such as construction.
Source: StatsSA, Labour Force Survey, Sep 2007 The secondary sector shows a significant improvement in comparison to that achieved in the manufacturing sector in the same period (Table 10). The competition for the available skills from the growing construction and utility sectors affect the demand for skills in the FBMS.
Table 9: Annual Change in Employment by Industry (‘1000)
Industry Number Sep'01-
Number Sep'01-
Change Sep'01-Sep '07
Percentage change Sep ’01 - 07
Agriculture 1 178 1 164 -14 -1.2
Mining 554 455 -99 -17.9
Manufacturing 1 620 1 799 178 11.0
Utilities 94 116 22 23.4
Construction 634 1 066 432 68.1
Trade 2 454 2 952 498 20.3
Transport 546 596 49 9.0
Finance 1 035 1 340 305 29.5
Services 1 999 2 452 463 23.2
Private households 1 034 1 244 211 20.4
Unspecified 42 51 9 21.4
Total 11 181 13 234 2053 18.4
22
In terms of occupational trends in demand in the overall manufacturing sector (Table 11) over the last six years, the demand for professionals, such as engineers, has increased by 75%, followed by managers at 33%. Table 10: Number of Employees in the Manufacturing Sector by Occupation (‘1000)
Occupations Sep ‘01 (‘1000)
Sep ‘07 (‘1000)
Percentage change ’01 - ‘07
Manager 664 884 33.1
Professional 486 853 75.5
Technician 1 176 1 252 6.5
Clerks 1 091 1 206 10.5
Sales and services 1 429 1 595 11.6
Skilled agriculture 521 342 -34.4
Craft 1 529 1 822 19.2
Machine operators 1 127 1 262 12.0
Elementary (labourer) 2 253 2 923 29.7
Domestic Worker 881 1 057 20.0
Unspecified 24 38 58.3
Total 11 181 13 234 18.4
Source: StatsSA, Labour Force Survey, 2007
In Chapter One, it was found that the economic indicators for the food manufacturing sector are generally not good compare to the whole manufacturing sector in general and beverages sector in particular. The decline in production volumes and fixed investments noted in that chapter, together with stiff competition for the available skills in the overall manufacturing sector have negatively impacted the FBMS. As shown in Figure 2.3, many more companies are reporting a reduction in the total number of workers especially in the second and third quarters of 2008. However the shortage of skilled and semi-skilled labour continues to impose constraints on activities as it forces increases in labour costs in the sector. Declining performance is negatively effecting the lower end of the skills ladder. Declining performance might also affect skills training as companies opt out of activities that reduce short term profit.
23
Figure 17: Number of workers and skill shortage constraints in food manufacturing (Net Balance)
Source data: BER
The trend in demand for labour in the beverage manufacturing sector has increased and growing numbers of enterprises have reported increases in their workforces since the last quarter of 2007 despite increasing labour costs in the same period. As noted in Chapter One, the positive economic atmosphere in terms of increases in fixed investment and growing demand for products could be reasons for this positive trend. But the constraints imposed by skills shortages, especially of highly skilled labour are persistent problems for many companies in the sector as illustrated in Figure 2.4. Figure 18: Number of workers and skill shortage constraints in beverage manufacturing (Net Balance)
Source of data: BER
24
2.1.3 Future Employment Signals The general business atmosphere in the FBMS was reported to be positive until the end of 2007. Since the beginning of 2008 there has been a marked increase in the numbers of companies reporting negative business conditions and these conditions are expected to persist for the next 12 months. But many companies remain confident of the sector’s performance and of the political atmosphere in general. This confidence is likely to translate to a positive climate for investment confidence in fixed capital and the development of skills in the medium-term. Figure 19: General business atmosphere in food manufacturing (Net Balance)
Source : BER
The beverage manufacturing sector is also experiencing high levels of business confidence. There is general confidence in the political climate and the outlook for the next 12 months. Demand for skills and general employment levels are therefore expected to increase both in the short- and long-term. Figure 20: General business atmosphere in beverage manufacturing (Net Balance)
Source : BER
25
2.2 Replacement Demand HIV/Aids represents a major signal in respect of both current and future replacement demand. The main target groups for training are also those most susceptible to HIV infection, including Africans, women, youth, the unemployed, the unskilled and semi-skilled. In the food and beverages and tobacco industries, the HIV prevalence was estimated to be 16.1% in 2005 and by 2010 the percentage of workers AIDS-sick will likely be about 2.3% while deaths related to AIDS will be about 1.2%. Weighted risk index for the sector in 2005 was 7.4 out of 11. However, these figures are not considered to be a true reflection of the crisis, with some research indication risk index figures two and three times those presented here. About 48% of companies in the sector report that HIV has negatively affected output levels; 42% contend that they have lost high skilled personnel due to HIV/AIDS related illnesses and deaths; and 58% report that HIV/Aids has contributed to declines in labour productivity due to increased sick leave and frequent visits to hospital. (BER, 2006). As noted in Chapter One, the bulk of workers in the sector are between the ages of 35 and 50. This is a cause for serious concern in respect of skills development because these people age and retire sooner or are lost through other forms of attrition.
2.3 Conclusion The current employment trends in the FBMS indicate that while numbers of employees are increasing, the margin of increase does not match the demand for a more highly qualified workforce. Generally the beverage manufacturing sector continues to do well, with increases in employment figures, but employment in the food manufacturing sector appears to be shrinking when compared to the overall growth in the manufacturing sector, resulting in a reduction in demand for labour. In both food and beverage manufacturing, there are constraints imposed by shortage of skills and semi-skilled labour. The future signals are brighter for beverage manufacturing than the food manufacturing judging from the general perceptions noted from the beginning of this year. Confidence is evident across the sector, which bodes well for skills development.
26
CHAPTER THREE: SUPPLY OF SKILLS
3.1 National Skills Supply Employment in South Africa is closely linked to the quality of the skills available in the labour market. The South African economy has grown over the past few years and generally employment has increased. This is also evident in the absorption rates as discussed in previous sections of this report. Despite these trends however, there still exists unemployment and skills shortages persist in the labour market. Simply put, there is not enough supply to meet demand in the market. The number of unemployed persons decreased from 4 391 000 in September 2006 to 3 945 000 in September of 2007. Despite these improvements, unemployment in South Africa still remains relatively high. So, there is an available workforce but it is not being absorbed, indicating that education levels of the unemployed do not meet the skills required in the market. However, according to the LFS (2007) and outlined in Figure 3.1, 45% of the population have a GET (general education) qualification, 44% have an FET (further education) qualification, 3% have an HET (higher education) qualification and only 7% have no schooling or are not GET qualified. This shows that the majority of the population has some formal training with 51% having above general education qualifications. Figure 21: Qualifications of SA Population
Qualifications Levels of SA Population
7%
45%
44%
3%1%
Below GET
GET
FET
HET
Other
Source: LFS September, 2007
While the population on aggregate does hold educational qualifications, the levels of qualifications still reflect inequalities of the past. As can be seen from the figures in the table below higher qualifications are held in the main by members of the white population group.
27
Figure 22: Qualifications According to Equity Groups
African Population
10%
44%
44%
0%
2%
Below GET
GET
FET
HET
Other
Coloured Population
5%
49%
43%
2%1%
Below GET
GET
FET
HET
Other
Indian Population
24%
65%
9%
2%
0%
Below GET
GET
FET
HET
Other
White Population
0%
10%
73%16%
1%
Below GET
GET
FET
HET
Other
Source LFS September 2007
The scenarios presented above echo the findings in Chapter One and Two: that labour in South Africa is becoming increasingly qualified especially at the FET level. There are however, very few people in possession of a qualification above FET level and this is particularly evident among African and Coloured people. Moreover, the qualifications of South Africans pale in comparison with those of developed countries which has implications for the country’s ability to compete globally.
3.2 Quality and Adequacy of Supply 3.2.1 Mathematics and Physical Science The shortage of skills in the fields of mathematics and science is critical in South Africa. School leavers continue to score well below international benchmarks and the government is actively engaged in addressing this problem. Through the establishment of Dinaledi Schools, which are dedicated to developing learners’ mathematics and physical science skills, the government aims to produce 50 000 matric passes in maths and science annually by 2008. 3.2.2 Skills Supply: Food and Beverages Manufacturing Sector Research conducted in the food and beverages manufacturing sector indicated that there is a demand for higher skills levels, particularly at NQF level 5, which fall within the HET (higher education) qualification (Sector Survey, 2006). This has been confirmed by economic analyses of more recent information discussed in Chapter 2. This presents a problem on the supply side because
28
the majority of people in the South African labour market do not posses qualifications above the FET band. This demand for skilled labour indicates that the sector is developing higher levels of technological innovation and competition on a global scale. There is therefore a need to foster the growth and development of workers to qualify at NQF level 5 and above. This poses a challenge for the sector because it is difficult to train individuals beyond NQF level 4 on the FET band due to stringent entry requirements for HET band qualifications within public higher education institutions. Equity requirements also affect the sector’s ability to absorb skilled labour. It remains a challenge to fill skilled positions because of the scarcity of skills in the African workforce. Figure 23 illustrates the trends in respect of pass rates for higher grade mathematics and science. The numbers of learners passing these subjects decreased slightly between 2005 and 2006. Similar results were recorded in 2007. In Dinaledi schools, however, there has been a steady increase in the number of learners passing maths and science, proving that focused efforts to increase maths and science pass rates can produce positive results. There seems to be some contraction here. There are however Dinaledi schools that did not perform well and the DoE has undertaken to strengthen learning support and materials in theses schools. Figure 23: Learners who passed Maths and Science at Dinaledi Schools
Learners Passing Maths and Science at Dinaledi Schools
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2004 2005 2006
Maths HG
Science
Source: DoE Annual Report, 2006
3.3 FET: Further Education The Department of Education has identified FET skills that are in short supply. As part of the re-capitalisation of FET colleges, the DoE is working to improve skills in:
• Engineering (Light and Heavy Current, Mechanical and Civil Construction);
• Information technology;
• Financial management;
• Marketing;
• Tourism;
• Manufacturing and assembly;
• Fabrication and extraction; and
• Primary agriculture. In January 2007, the DoE began phasing out N1, 2 and 3 programmes and replacing them with NQF 2, 3 & 4 level vocational programmes. The new programmes run for nine months in alignment with FET in the school system.
29
The extended duration of these programmes is expected to have profound cost implications for the Learnership and Apprenticeship system. The increased time means that learnerships at every level will be extended from 1 year to 18 months. Learners in the SMME sectors could be severely restricted. Large employers too might reduce the number of learnerships they support in order to cut costs. However, considerable work is still required to address the responsiveness of college programmes to labour market demands1. The “N-courses” which provided the theoretical base for apprenticeship training are being phased out, while the national shortage of qualified apprentices is increasing and the “import” of skills is evident in many sectors. The restructured public FET sector is expected to play a significant role in supplying intermediate to high level skills. It comprises 50 merged, multi-campus institutions (many with 2 – 3 satellite campuses) with great potential for meeting the country’s skills development needs. FET colleges are located throughout South Africa with a good geographical spread and have the capacity to accommodate up to 400,000 students. According to the DoE the curriculum for 11 vocational programmes and 4 fundamentals of the National Certificate (Vocational) were finalised and implemented in 2007. Eighteen hundred lecturers were trained to teach the new programmes. A monitoring unit was established and visited colleges. Textbooks were screened and an approved catalogue circulated to colleges. The FET sector plan has been drafted and the implementation of the NCV Level 2 has begun with 25,000 students enrolled by last year (DoE, 2007).
3.4 Higher Education and Training (HET) The role of the higher education in the development of skilled labour cannot be underestimated. As noted earlier in this report, most companies require skills of NQF level 5 and above. Analysis of the current educational qualifications of the South African labour force suggests that there is a steady supply of persons with the relevant requirements entering HE institutions. Yet while enrolments in HE institutions are high, success rates in terms of completion of HE qualifications are very low as illustrated in the figure. A Compounding this is the large numbers of unemployed graduates among those who do succeed in obtaining a qualification (DPRU, 2007). A study conducted by DPRU revealed that there is an alarming rate of unemployment among graduates, graduate unemployment rates have increased by 50% between 1995 and 2005, making it the fastest growing unemployment rate among all education cohorts. The labour force over the past ten years has become younger and better educated with an increasing number of higher education graduates. However there are many unemployed graduates and this is attributed to a shortage of skills needed to meet the demands in the industry.
1 HRD Review, 2003
30
Figure 24: Higher Education Enrolments and Graduates 2006
HE Enrolments and Graduates for 2006
741380
124676
0
100000
200000
300000
400000
500000
600000
700000
800000
Enrolments Graduates
Source: HEMIS 2006
Figure 24 illustrates the difference between enrollment and graduation. This is especially true for specialist areas such as computer science, engineering and commerce, the very skills required in the FBMS. Despite the small number of graduates, there has been an improvement in the number of graduates in various fields when compared to the data reported in the 2007 SSP update. Six percent of graduates are from the engineering and engineering technology faculties. Previously these faculties produced only 3% of graduates. Twenty-four percent of graduates are from business and commerce faculties, up from 22% in 2007. Twenty-three percent of graduates are from the education faculty (HEMIS, 2007). Figure 25: Enrolments and Graduates by Field of Specialisation
Enrolments and Graduates by Field of Specialisation
0
50000
100000
150000
200000
250000
01 A
g. and
Ren
ewab
le
02 A
rch. a
nd E
nv. D
esig
n
03 A
rts, V
isua
l and
Per
form
ing
04 B
usin
ess, C
omm
erce
05 C
omm
unicat
ion
06 C
ompu
ter S
c. .
07 E
duca
tion
08 E
ngin
eerin
g an
d En
g. Tec
h.
09 H
ealth
Car
e & H
ealth
Scien
ces
10 H
ome Ec
onom
ics
11 In
dustria
l Arts
, Tra
des and
Tec
h.
12 L
angu
age,
Lin
guistic
s & L
it
13 L
aw
14 L
ibra
ries an
d Mus
eums
15 L
ife S
cien
ces and
Phys
ical S
c.
16 M
athe
mat
ical S
cien
ces
17 M
ilita
ry S
cien
ces
18 P
hilo
soph
y, R
elig
ion
19 P
hys. E
d., H
ealth
Ed.
20 P
sych
olog
y
21 P
ublic
Adm
in. &
Soc
Ser
vice
s
22 S
ocial S
cien
ces
9999
Unk
nown
Enrolments
Graduates
Source: HEMIS 2006
31
Despite their qualifications many graduates are not suited to the positions available in the labour market because they lack of practical skills and experience. They also lack technical qualifications. There is a shortage of skills at management level and graduates are often not suited to these positions. Moreover the quality of graduates being produced at higher education institutions in South Africa is said to be seriously wanting. These findings have definite implications for skills development in South Africa. While there is a need for HET band qualifications as reflected in the FoodBev sector study, these are not suited to the labour market. Thus there is a definite place for workplace learning and learnerships.
3.5 Skills Development at Companies Workplace training is a crucial component of skills development in South Africa. In the analysis of HET skills supply it is evident that there is a need for a labour force that not only hold the necessary qualifications to but also have the experience and understanding of the working environment to match. Skills development and workplace learning provides a unique opportunity to develop a workforce whose skills are aligned to sectoral and general economic needs. According to WSP data for 2007/2008, workplace learning programmes in the sector resulted in 37% percent of learners being enrolled in learnership programmes, 32% enrolled in ABET programmes, 24% in skills programme and 7% in apprenticeships (Figure 3.6). Figure 26: Enrolments in Learning Programmes
Learning Programmes
31.66
7.39
36.54
24.2
0.210
5
10
15
20
25
30
35
40
ABET Apprenticeship Learnership Skills Programme Work Experience
per
cen
t
Source: FoodBev WSP, 2007/2008
It would appear that learnerships are the preferred method of developing skills in the sector followed by theoretical institution-based education and skills programmes (Sector Survey, 2006). Figures 27 and 28 show the enrollment and completion rates of employed and unemployed learners who enter learning programmes in the FBMS. For both employed and unemployed learners, a similar trend to that found in HET emerges: significantly fewer learners than those enrolled successfully complete their programmes. This might indicate of lack of the basic knowledge and skills required to complete learning programmes. A bridging programme available to new learners would possibly enhance their chances of success.
32
Figure 27: Learner Enrolment and Completion of Learning Programmes
Workplace Training 2007 & 2008
1072
241
392
125
798
425375
191
0
200
400
600
800
1000
1200
Number of blacklearners who
enteredprogrammes
Number of blacklearners who
completedprogrammes
Number of femalelearners who
enteredprogrammes
Number of femalelearners who
completedprogrammes
nu
mb
er 2007
2008
Source FoodBev Data, 2007/2008
Figure 28: Unemployed Learner Enrolments and Completion of Learning
Training for Unemployed Learners 2007 & 2008
1801
395
1022
261
1161
703579
416
0200400600800
100012001400160018002000
Number of blackunemployedlearners who
entered learningprogrammes
Number of blackunemployedlearners who
completed learningprogrammes
Number of femaleunemployedlearners who
entered learningprogrammes
Number of femaleunemployedlearners who
completed learningprogrammes
nu
mb
er 2007
2008
Source FoodBev Data 2007/2008
3.6 Conclusions From the above, the following can be concluded:
• There is a serious need to align skills with sector demands to ensure higher employment rates and better growth trends for the sector.
• Too few school leavers graduate with the requisite skills in mathematics and science to enter the job market or institutions of higher education.
• There is a shortage of technical qualifications in the labour force resulting in high rates of unemployment among HE graduates.
• Companies operating within the FBMS require employees with qualifications at NQF level 5 and above and in line with the technical requirements of the sector.
33
These findings call for serious investments in human resource development to meet sector requirements. Efforts to ensure successful completion of learning programmes for both employed and unemployed learners need to be intensified.
34
CHAPTER FOUR: SCARCE AND CRITICAL SKILLS IDENTIFICATION
4.1 INTRODUCTION In researching scarce and critical skills, the tentative nature thereof needs to be recognised. The level of sophistication in skills forecasting in South Africa is relatively low. Only a few companies in the country do long-term projections in this regard and the concept of, and differentiation between, scarce and critical skills is still a new concept to many HR professionals
4.2 RESEARCH METHODOLOGY A sector survey was conducted in the FBMS in 2005, using a statistical modelling approach. The availability of trend data however, posed a challenge and as a result only perceptional research findings from this survey could be included in previous updates of the SSP. Research conducted by FoodBev Seta in 2006 established a starting point for the identification of scarce and critical skills. This was done through telephonic interviews, but the sample was biased towards larger companies in the sector and did not represent an even distribution across the various industries that make up the sector. During the past three years, extensive resources have been allocated to the communications arm of the FoodBev Seta to inform the sector of the strategic importance of long-term skills forecasting and the benefits to be derived from contributing towards a database in which scarce and critical skills are recorded and updated regularly. Follow-up research (through telephonic interviews) was conducted in 2006 and all food and beverages manufacturing companies that participated in the skills development strategy were contacted. Particular efforts were made to communicate with senior staff members responsible for HR forecasting. For purposes of updating the SSP in 2007, a questionnaire (based on the Organising Framework for Occupations) was included in the Workplace Skills Plan template. A similar approach was followed in 2008. Of the companies that participate in the mandatory grant process, 32% submitted data on scarce skills. This represents 40% of total employment in the sector. Companies that provided data are included in Table 12 Figure 29: Distribution of research participants according to company size
Company size Percentage of companies that submitted data
Less than 50 employees 2%
Between 50 and 150 employees 35%
Companies were relatively well distributed across the five Foodbev Seta sub-sectors, as illustrated in the graph below.
35
Figure 30: Chamber distribution of companies that participated in survey
22.2
29.8
22.8
15.9
9.3
0
5
10
15
20
25
30
Food Prep
Processed
BCCS
Beverages
Dairy
Source: FoodBev WSP’s 2007
A focus group discussion was held with the FoodBev Seta Sector Skills Planning Committee and other industry “champions” to discuss and lend further insights into the quantitative findings. The identification of scarce skills remains a challenge for many companies, especially the quantification of skills required. The list of scarce occupations provided in this chapter should therefore be seen as an indication of prioritised scarce skills needs rather than an exact quantification of the need, despite the fact that a representative sample of companies in the sector participated in the research.
4.3 DEFINITION: SCARCE AND CRITICAL SKILLS The template prescribed by the Department of Labour - based on an occupational classification system referred to as the Organising Framework for Occupations (OFO) - was used as a tool for identifying, reporting and monitoring scarce and critical skills. The detailed responses are provided at the end of this chapter. It contains a list of scarce skills identified categorised according to the organising framework for occupations. Projections of numbers needed are included in this template along with the types of learning interventions required and the NQF levels of these interventions. Within the Organising Framework for Occupations (OFO), ”skill” is defined as the ability to perform competently the roles and tasks associated with an occupation. For the purpose of this SSP, the following definitions are to be applied: SCARCE SKILLS refer to those occupations in which there are a scarcity of qualified and experienced people, currently or anticipated in the future, either (a) because such skilled people are not available or (b) they are available but do not meet employment criteria. This scarcity can arise from one or a combination of the following, grouped as relative or absolute: Absolute scarcity: suitably skilled people are not available, for example: A new or emerging occupation, i.e. there are few, if any, people in the country with the requisite skills (qualification and experience) and education and training providers have yet to develop learning programmes to meet the skills requirements.
• Firms, sectors and even the country are unable to implement planned growth strategies and experience productivity, service delivery and quality problems directly attributable to a lack of skilled people.
• Replacement demand would reflect an absolute scarcity where there are no people enrolled or engaged in the process of acquiring the skills that need to be replaced.
36
Relative scarcity: suitably skilled people available but do not meet other employment criteria, for example:
• Geographical location, i.e. people are unwilling to work outside of urban areas.
• Equity considerations, i.e. there are few if any candidates with the requisite skills (qualifications and experience) from specific groups available to meet the skills requirements of firms and enterprises.
• Replacement demand would reflect a relative scarcity if there are people in education and training (formal and work-place) who are in the process of acquiring the necessary skills (qualification and experience) but where the lead time will mean that they are not available in the short term to meet replacement demand.
CRITICAL SKILLS, on the other hand, refers to specific key or generic and “top up” skills within an occupation. In the South African context there are two groups of critical skills:
• Key or generic skills, including (in SAQA-NQF terminology) critical cross-field outcomes. These would include cognitive skills (problem solving, learning to learn), language and literacy skills, mathematical skills, ICT skills and working in teams.
• Particular occupationally specific “top-up” skills required for performance within that occupation to fill a “skills gap” that might have arisen as a result of changing technology or new forms of work organisation.
Both scarce and critical skills have been identified at occupational level, with scarce skills being considered against the occupation itself and critical skills being reflected as specific skills within the occupation.
4.4 INTERPRETING SCARCE AND CRITICAL SKILLS WITHIN THE FOOD
AND BEVERAGES MANUFACTURING SECTOR A further dimension needs to be considered when defining scarce skills - the remuneration and labour “economics” of a specific sector, resulting in recruitment difficulty. According to research conducted three years ago, economic factors were identified by 25% of respondents as the main reason for scarcity of skills. As a result of remuneration and compensation, companies cannot find candidates for appointment in certain occupations. In addition, the perception of a “blue collar” working environment further contributes to scarcity of recruits for certain occupations. This raises questions on the impact that FoodBev Seta can make in addressing skills needs in certain occupations identified as scarce, as a service specifically to the sector. The possibility exist that people trained will be employed by companies form other economic sectors. However, a service will be rendered to the broader economy. A further diffusing factor in the research findings is reference to skills programmes as a learning pathway to develop scarce skills. This probably refers to “top-up skills”, i.e. critical skills, required by the sector or even by a specific company to equip employees for specific production requirements. Skills programmes as “stand-alone” learning pathways will most probably not equip prospective employees with all the skills sets required in most of the occupations identified as scarce, especially at higher occupational levels.
4.5 SCARCE SKILLS PRIORITISED One of the main objectives of researching and identifying scarce and critical skills is to develop a strategy to address the identified scarcity. To assist the development of a strategy, the scarce occupations identified have been grouped “functionally” in this section, and scarcity is analysed across groups of career “families”.
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Although the numbers of employees required are provided in the tables that follow, the tentative/relative nature thereof needs to be borne in mind. Due to the lack of skills forecasting competencies in South Africa, the numbers projected can only be tentative at this point. This also explains the variation in numbers provided between last year and this year. At best, the numbers provided should give an indication of prioritised scarce skills. In prioritising scarce skills and developing a FoodBev strategy, the differentiation between absolute and relative scarcity has been considered.
4.5.1 Engineering and Trades Workers Engineering and trades have been identified as “absolute scarce skills” across all of the occupations listed in the table below, and the Cross-sectoral Scarce Skills Report published by the Department of Labour indicate a national scarcity. The table below indicates the needs of the Food and Beverages Manufacturing sector in tabular form. Table 11: Engineering and Trades Workers Engineering and Trades
Occupation No’s required by 2008 (last year)
No’s required by 2009
% Increase/Decrease
Specialists
Mechanical engineer 40 10 -75% Electrical engineer 20 67 +335%
Electronics engineer 10 22 +220% Production/Plant engineer
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TOTAL 70 234 +334%
Artisans Millwright 510 249 -51%
Electrician 480 168 -65% Fitter and turner 150 214 +143%
Airconditioning and Refrigeration Mechanic
22
Electrical engineering technician
50 177 +354%
Mechanical engineering technician
67
Electronic instrument trades workers
49
TOTAL 1 190 946 -21%
Trades/Apprenticeships Qualified apprentices have been identified as a scarce skill nationally. As indicated in Chapter 3, FET Colleges were originally established to provide industry led education and training with a focus on technical training (engineering studies). Due to the expected repeal of the apprenticeship system and changes in the education system, these colleges allowed their linkages with business and industry to erode. Concern has been expressed by a number of companies about the quality of training provided by FET Colleges. Students that complete the theory part of apprenticeship training frequently have inadequate mathematical skills, language ability (both written and verbal communication), skills to work in teams and time management skills. In addition, the old “N-courses” which provided students with the theoretical base for apprenticeships, are in the process of being repealed by the Department of Education. However, the biggest area of concern is company investment in the development of artisans. Until 6 – 8 years ago, state-owned enterprises such as ISCOR, ESKOM and Sasol trained large numbers of
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apprentices and developed a supply pool for the broader economy, who simply recruited from this supply without investing own resources into the development of apprentices. As indicated in the table above, research indicated that 1 000 artisans will be needed next year, and probably a much higher number over the next three to four years. The following approach is recommended:
• 1. There is a need to identify “excellence” among providers of artisan training and to provide
support where required. 2. Priority focus will be placed on providing incentives for artisan training. 3. Companies that have the capacity to recruit more than their need will be motivated and
incentivised to assist in the development of a pool of qualified artisans. 4. Support will be provided for the development of critical skills gaps as identified, through
incentivising skills programmes. 5. The implementation of learnerships for the various trades identified as scarce skills will be
incentivised Engineering A national scarcity of engineers exists (and frequently General Managers and Operations Managers in the food and beverages manufacturng sector have an engineering background). To develop skills for prospective employees, interventions could start at school or tertiary education institutions through the provision of bursaries. As discussed in Chapter 3, there are not enough school leavers with Mathematics and Science to allow sufficient numbers of students to study engineering sciences. The implication is that there is not a sufficient number of learners in study programmes to provide for the need identified at the national level. A long-term, properly costed strategy could be of assistance to teachers in mathematics, science, biology and computer science to promote and deliver excellent learning and to grow student numbers in these fields. This should be a national strategy driven by the Department of Education. Employers in the industry could adopt a school as their as part of their social responsibility programme and students could be encouraged in those specific schools by employers to take mathematics as a subject. Employers could recruit matriculants with mathematics and science and bursaries could be made available for them to study engineering sciences. Feedback from companies in the sector indicates that graduates from Higher Education Institutions are not well prepared for the skill sets required by the sector. Specific critical skills identified include problem identification and problem solving, understanding of food safety requirements and people handling skills. What is required, in addition, is the provision of work experience opportunities for graduates or the development and funding of learnerships that will complement the formative training received at higher education institutions. These two interventions should include the development of critical skills deficits that have been identified as lacking in the sector. Simultaneously, linkages between Higher Education Institutions and the sector must be facilitated to ensure that the alignment between curricula of HET institutions and the needs of industry are improved.
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Although research indicates a projected need of approximately 240 engineers over the next year, the image of the profession and recruitment challenges may make it difficult for the sector to attract recruits. The variation in numbers required between 2008 and 2009 is probably indicative of the unreliability of quantified forecasting. There is a slight decrease in the need for artisans, but up the need still is close to 1 000 required over the next year. The need for engineering specialists increased substantially. Four new occupations (in bold in table above) have been identified as scarce. 4.5.2 Manufacturing/Production/Operations The scarce skills listed below reflects a relative scarcity, i.e. there are people available in the labour market, but the potential recruits do not have the skills sets required by the sector. The table below indicate the needs of the Food and Beverages Manufacturing sector in tabular form. Table 12: Manufacturing/Production/Operations
Manufacturing/Production/Operations Occupation No’s required by
2008 No’s required by
2009 % Increase/Decrease
Managers CEO/MD 8
Corporate general manager 30 56 +187% Corporate services manager
13
Production/Operations Manager
160 232 +145%
Quality Assurance Managers 30 34 +113% Research and development manager
20 42 +210%
TOTAL 240 385 +160
Specialists Food technologist 150 172 +115
Microbiologist 70 45 -36% TOTAL 220 217 -1%
Specialised operators/factory workers Food and Beverages process machine operator
240 256 +107%
Product tester 44 Bakers 220 14 -53%
Meat process workers 30 30 Dairy products maker 30 52 +173%
Brewer 18 Confectionary maker 56
Grain mill worker 11 Winery cellar hand 5
520 486 -7%
A definite increase in numbers required at managerial level is noted, although, once again, it needs to be emphasised that numbers and percentages can at most only be used to note possible trends. New or additional scarce skills are provided in bold in the table above. Although skills at middle and senior management level can be “bought” and not developed through a career progression process (and both “buying” skills and developing skills will serve the sector well in the long run), indications are that the image and economics of the food and beverages manufacturing sector are inhibiting the ease with which employees can be ”bought”. If people are to be developed through a process of learning progression from operator level and through supporting a GETC Level 1 learnership, a broader skill set for employees entering the manufacturing environment would need to be developed, and ABET should be supported on a continued basis in this regard.
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School-leavers and unemployed people available in the labour market frequently do not have the numeracy, science, IT and basic technical competencies required for the role of process or packaging operator, especially not in high-speed production environments. This also a limits skills development in the wine, distilling, dairy and baking industries. Employers should be motivated to recruit learners onto the process operator qualifications for career development purposes (special incentives to companies recruiting top talent among school leavers and unemployed young people and developing those people accross occupational levels could be considered). Continued support should be provided for the development and skilling of process and packaging operators at and NQF level 3 across all food and beverage processes. Factors such as changes in technology, companies’ increased involvement in World Class Manafucturing and continuous improvement processes, and increased emphasis on food safety and hygiene require contiuous upskilling of operators. Lack of competence in these areas have been identified as critical skills, and should be included in training programmes. To develop people for managerial positions, support should be provided for the level 4 FETC Generic Management (Food Manufacturing), Level 5 Manufacturing Management and level 6 Manufacturing Management learnerships. Qualifications in the specialised areas of the industry, such as master baker, cellar master, master distiller, master brewer, master pasta maker, master canner, and master dairy man should be developed and established as learnerships. These should be accessible to employees through a career development process, or linked to higher education qualifications, as discussed below. Food Technologists and Science Technicians Higher Education providers have a specific role to play in developing learners and deliver a more generic curriculum that enables a learner to gain access into the broader economy rather than specialize in a specific area. In this regard it makes sense to establish and promote a development strategy that brings the needs of the employer and the skills of the higher education provider together. Relationships with Higher Education Providers should be developed to link qualifications developed by industry (such as master brewer, master baker, etc) to honours or B.Tech curriculum to develop specialist food technologists through a work experience process. Collaboration with Higher Education Institutions should be established to enable employers to be involved in the recruitment for the national diploma, with focus on schools that are from previously disadvantaged areas. Consideration should be given to incentivize employers who establish social responsibility links with schools and recruitment from those schools for either bursary support or learnership opportunities. 4.5.3 Support Functions In this section, all “support functions” are grouped. Two occupational groups were identified as “absolute scarce skills” - finance and logistics. The rest of the identified occupations are identified as a relative scarcity, i.e. potential recruits are available in the labour market, but do not have the skills sets required by the sector. Table 13: Support Functions
Support Functions Occupation No’s required by
2008 No’s required by
2009 % Increase/Decrease
Sales and marketing
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Sales and marketing manager
100 72 -28%
Marketing specialist 87 Sales representatives 230 176
TOTAL 330 335 +102% Finance
Finance manager 30 96 +320% Accountant 60 97 +162%
Bookkeeper 17 TOTAL 90 210 +223%
Logistics, warehousing and distribution Supply and distribution manager
80 49 -39%
Truck driver/delivery driver 160 96 -40% TOTAL 240 145 -40%
Human Resources Human Resource manager 20 17 -15%
HR and Training and Development specialist
60 34 -43%
TOTAL 80 51 -36% ICT
ICT project manager 15 ICT business analyst 45
ICT support engineer 18 TOTAL 78
Sales and Marketing Although there is an adequate supply from Higher Education Institutions of students graduating in marketing, people are not equipped for the sector specific requirements of a sales or a marketing career. Learnerships FoodBev support for work-experience are available to develop employees for sector specific requirements of these positions. Support is currently provided for development of people at various occupational levels in sales and marketing, and continued support will be provided to develop a skills pool for the sector. Logistics, Warehousing and Distribution In terms of Supply and Distribution Managers, degree courses are available at a limited number of universities, but current student numbers are low. Bursaries as well as work experience opportunities could be made available in this area. Learnerships are available at different levels, and continued support will be provided to develop people for occupations and career progression within this field of specialisation. Human Resource Managers and Specialists It is interesting that human resource management is registered as a relative scarce skill. Human resource management involves industrial relations, training and development, recruitment and selection, career development, human resource planning, compensation management. The human resource function should be a leadership and line management function, human resource planning should be a line function and compensation should be a strategic executive function. Human Resource Managers should be expert consultants to line managers. The possibility exists that this is not as much a scarce skill as the fact that human resources are not allocated the necessary strategic role within a company that it should be awarded. Information Technology A “new” career family has been identified as a scarce skill - Managers and specialists in the information technology field.
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4.5.4 SCARCE SKILLS: EQUITY CANDIDATES Research findings identified a scarcity of equity candidates for the following occupations: Table 14: Scarce Skills: Equity Candidates
Occupation
General managers
Advertising, sales and marketing managers
Engineering managers
Production/operations managers
Quality assurance managers
Accountants
Technical sales representatives
Electronics and mechanical engineers
Electrical engineering technician
Fitter and turner
Fitter (General)
Millwright
Electrician (General)
FoodBev Seta grants will support training according to the equity targets contained in the National Skills Development Strategy, being 85% black persons and 54% female. If equity candidates are developed through a process of career progression (top talent recruited at previously disadvantaged schools or support provided through bursaries and work experience) this scarcity could be addressed over a period of 4 – 7 years.
4.6 DEVELOPING A STRATEGY TO ADRESS SCARCE SKILLS In developing an approach to address scarce skills, a differentiation is made between occupations that reflect an absolute scarcity, i.e. where it is not possible to find potential recruits, and relative scarcity, i.e. where potential employees do not have the required skills sets. What is proposed is a multi-pronged approach:
1. Specific FoodBev Seta projects to address absolute scarcity (e.g. apprenticeships, bursaries, learnerships)
2. Grant incentives to employers to address relative scarcity (ABET, learnerships, skills programmes, work experience, bursaries).
The following strategy will be adopted in addressing scarce skills:
1. continue emphasising the importance of long-term skills forecasting at company level 2. publish a guide on scarce skills and communicate opportunities for employment in
the sector; providing information that will make the sector more attractive to propsective employees
3. distribute this guide widely to scholars at the point of making subject or study choices and to students at higher eduction institutions marking career choices.
4. disseminate information on the provincial location of scarce skills needs 5. train career guidance specialists in the utilisation of information contained in this
guide. 6. inform companies in the sector of scarce skills, and incentivese them to train in
areas identifed as scarce
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7. motivate companies to train for the broader sector and the economy, and not only for internal needs and requirements
8. develop qualifications to bridge the gap between formative qualifications obtained at higher education institutions and strive to build these “work-based qualifications” into the higher education cirricula (e.g. cellar master)
9. motivate companies to adopt schools and recruit talent among matriculants, for either bursaries or learnerships
10. continue to provide grant incentives to subsidise development of scarce skills identified by the sector (apprenticeships, learnerships, work-expereince, internships and bursaries)
11. focus on support to providers that can offer excellence in training across career pathway/s
12. Launch special projects to accelerate training in areas identified as absolute scarce skills needs
4.7 FOODBEV APPROACH TO ADDRESSING SCARCE SKILS IN THE SECTOR
In summary, FoodBev Seta will focus it’s approach to decreasing scarcity of skills in the sector by
1. Project-based interventions to accelate training across learning pathways to develop people for occupations where absolute scarcity exists
2. Provide grant incentives to employers to address relative scarcity (for all occupations listed in Section 4.10).
More detail is provided in the Table 15
Table 15: Overview of Scarce Skills ABSOLUTE SCARCE SKILLS Occupational groups Reasons for scarcity FoodBev and sector interventions Engineering • Inadequate supply form educational institutions
• Sector-specific “top-up” training needed
• Image of sector (“blue collar” with low remuneration and poor working conditions)
• Bursaries (recruitment of “top talent” from schools)
• Grants and projects to support the development of sector-specific skills requirements via learnerships and internships/work experience
• Publication of “scarce skills guide” to, among other, generate interest in engineering as a study and career choice and the sector as a “sector of choice” for prospective employees
Trades • Inadequate numbers of learners in practical training
• Quality of theory provision poor
• Image of sector (“blue collar” with low remuneration and poor working conditions)
• Grants and projects to support the development of trades workers via the apprenticeship route
• Grants and projects to support the development of trades workers via learnerships
• Identification of and support to “excellence” among providers
• Publication of “scarce skills guide” to, among other, generate interest in trades as a study and career choice and the sector as a “sector of choice” for prospective employees
Logistics, warehousing and distribution • Inadequate supply form educational institutions
• Sector-specific “top-up” training needed
• Bursaries (recruitment of “top talent” from schools)
• Grants and projects to support the development of sector-specific skills requirements via learnerships, work experience
Finance • Inadequate supply form educational institutions
• Sector-specific “top-up” training needed
• Bursaries (recruitment of “top talent” from schools)
• Grant incentives and projects (learnerships and work-experience)
• Publication of “scarce skills guide” to, among other, generate interest in engineering as a study and career choice and the sector as a “sector of choice” for prospective employees
Specialist food technologists & science technicians
• Sector-specific “top-up” training needed
• No qualifications available
• Development of occupationally based qualifications
• Link qualifications to B Tech curricula
• Grant incentives and projects (learnerships and work-experience)
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RELATIVE SCARCE SKILLS Occupational groups Reasons for scarcity FoodBev and sector interventions Manufacturing management • Sector-specific “top-up” training needed
• Image of sector (“blue collar” with low remuneration and poor working conditions)
• Grants and projects to support the development of sector-specific skills requirements via learnerships
• Publication of “scarce skills guide” to, among other, generate interest in engineering as a study and career choice and the sector as a “sector of choice” for prospective employees
Specialised operators • Sector-specific “top-up” training needed • Grant incentives for learnerships and skills programmes Specialists • Sector-specific “top-up” training needed
• Grant incentives for learnerships and skills programmes
Sales and marketing • Sector-specific “top-up” training needed • Grant incentives for learnerships
• Work experience grants Human Resources • Sector-specific “top-up” training needed • Grant incentives for learnerships and skills programmes
4.8 DETAILED LIST OF SCARCE SKILLS AS PER THE OCCUPATIONAL FRAMEWORK FOR OCCUPATIONS (OFO)
As per the requirements of the Department of Labour, the scarce skills identified is provided in the “OFO” template. The following are guidelines for interpreting the data provided in the table. o Where critical skills shortages have been identified, these are listed against specific
occupations. o Projected need is provided for 2008 and 2010. These two figures combined provide the
need by 2010. Typical training interventions to develop people for employment in these occupations are provided.
NQF Need/
Period Comments
Aligned
OCCUPATION SS Specialisation/ Job
Critical skills
Intervention NQF levels
Y N
2008 2010
1 MANAGERS 11 Chief Executives, General Managers and
Legislators
111 Chief Executives, General Managers and Legislators
1112 General managers 111201
Corporate General Manager (incl Senior Government and Local Government Officers)
Problem solving; people handling
Theoretical institution plus experiental work placements
6/7 Y 30 50
13 Specialist Managers 131 Advertising, Marketing and Sales Manager 1311 Advertising, Marketing and Sales Manager 131102 Sales and Marketing manager Theoratical based &
experiential work based placements
6/7 Y 100 140
132 Business Administration Managers 1322 Finance manager 132201 Finance manager Problem
solving Theoretical institution & work based placements
6/7 Y 30 45
1323 Human Resource Manager
132301 Personnel/Human Resource Manager
Theoretical institution plus learnerships
6/7 Y 20 40
1325 Research and Development Managers 132501 Research and Development
Managers Theoretical
institution 6/7 Y 20 20
133 Construction, Distribution and Production/Operations Managers
1332 Engineering Manager 133201 Engineering Manager People
handling skills
Theoratical based & experiential work based placements
6/7 Y 50 80
1335 Production/Operations Manager 133502 Production/Operations
Manager People
handling skills; working
Theoretical institution plus learnerships
5/7 Y 160 210
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in teams
1336 Supply and Distribution Manager
133601 Supply and Distribution Manager
People handling skills
Theoretical institution plus learnerships
5/7 Y 80 120
139 Miscellaneous Specialist Manager 1399 Other Specialist Managers 139904 Quality Assurance Manager Theoratical based &
experiential work based placements
5/6 Y 30 40
2 PROFESSIONALS 22 Business, Human Resource and Marketing Professionals
221 Accountants, Auditors and Company Secretaries 2211 Accountants 221101 Accountants (General) Theoratical based &
experiential work based placements
6/7 Y 60 110
223 Human Resource and Training Professionals 2231 Human Resource Professionals 223101 Human Resource Advisor Mathe-
matical skills
Theoretical institution plus learnerships
5/6 Y 60 90
225 Sales, Marketing and Public Relations Professionals 2251 Advertising and Marketing Professionals
225103 Marketing Specialist Mathe-matical skills
Theoretical institution plus learnerships
5/6 Y 20 30
2254 Technical Sales Representatives 225404 Technical Sales
Representatives Mathe-
matical skills; working in teams
Theoretical institution plus learnerships
5/6 Y 230 350
233 Engineering Professionals 2333 Electrical Engineers 233301 Electrical Engineer Working
in teams Theoretical institution plus learnerships
6 Y 20 30
2334 Electronics Engineers 233401 Electronics Engineer Working
in teams Theoretical institution plus learnerships
6/7 Y 10 10
2335 Industrial, Mechanical and Production
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Engineers 233501 Mechanical Engineer Working
in teams Theoretical institution plus learnerships
6 Y 40 70
234 Natural and Physical Science Professionals 2342 Chemist, Food and Wine Scientists
234202 Food Technologists Conflict handling, working in teams
Theoratical based & experiential work based placements
5/6 Y 150 150
3 TECHNICIANS AND TRADE WORKERS 32 Engineering, ICT and Science Technicians 311 Agricultural, Medical and Science Technicians
3114 Science Technicians NEW OCCUPATION Food Science Technicians Theoratical
based & experiential work based placements
5/6 Y 70 70
312 Building and Engineering Technicians
3123 Electrical Engineering Draftpersons and Technicians
312302 Electrical Engineering Technician
Working in teams
Apprentice-ship/learner-ship
5 Y 20 25
3124 Electronic Engineering Draftpersons and Technicians
312402 Electronic Engineering Technician
Working in teams
Apprentice-ship/learner-ship
5 Y 30 35
32 Automative and Engineering Trades Workers 323 Mechanical Engineering Trades Workers 3232 Metal Fitters and Machinists 323201 Fitters (General) Apprentice-
ship/learner-ship
5 Y 50 50
323202 Fitters and Turners Apprentice-ship/learner-ship
5 Y 150 190
3235 Millwrights and Mechatronics Trades Workers
323501 Millwright Apprentice-ship/learner-ship
5 Y 510 240
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34 Electrotechnology and Telecommunications Trades Workers
341 Electricians 3411 Electricians 341101 Electrician (general) Apprentice-
ship/learner-ship
5 Y 480 200
35 Food Trades Workers 351 Food Trades Workers 3511 Bakers and Pastrycooks 220 270 351101 Bakers Learnership 4/5 3512 Butchers and Smallgoods makers 351201 Butcher Team-
work, numer-acy skills
Learnership 3/4 Y 30 50
NEW OCCUPATION Dairy Process Controller Learnership 4/5 Y 30 70 7 MACHINERY OPERATORS AND DRIVERS 71 Machine and Stationary Plant Operators 711 Machine Operators 7119 Other Machine Operators 711909 Food and Beverages Process
Machine Operators nec Literacy
and nume-racy
Learnership, skills programme
3/4 Y 240 330
NEW OCCUPATION Packing Machine Operator Literacy and nume-racy
Learnership, skills programme
3/4 Y 100 210
712 Stationary Plant Operators 7129 Other Stationary Plant Operators 712901 Boiler or Engine Operator Literacy
and nume-racy
Learnership, skills programme
3/4 Y 20 20
73 Road and Rail Drivers 732 Delivery Drivers 7321 Delivery drivers 732101 Delivery driver (vehicle) Literacy
and nume-racy
Learnership, skills programme
3/4 Y 160 200
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CHAPTER FIVE: SMALL BUSINESS, ENTREPRENEURIAL OPPORTUNITIES AND OTHER
NSDS PRIORITIES
5.1. Growth and Development Strategies Two charters that were recently launched provide strategic direction for the transformation of sector to include Black South Africans at all levels of sector activity and enterprises. These sector charters provide for a way forward in terms of developing an adequate pool of BEE candidates into senior positions as well as ensuring continued support for the spectrum of skills development needs of the sectors including improvement of baseline educational levels of employees within the sector. These charters are the Wine industry Transformation Charter (2007) and the AgriBEE Charter (2008). The Wine Industry Transformation Charter This charter was accepted by the Wine Industry Council on 30 July 2007 after three year intensive consultation process. The charter provides a clear statement of intent, committing all sectoral role-players to the transformation of the industry. The scope of the wine charter and its scorecard allows companies to make substantial contributions to:
• Ownership
• management
• employment equity
• skills development
• preferential procurement
• business development initiatives
• rural development
• poverty alleviation The wine scorecard has particular scoring incentives geared toward economic and social development as well as skills. AgriBEE Charter This charter is also a product of intensive consultation among sector stakeholders over a number of years. The charter derives directly from the sectors core objective to ensure increased and access and equitable participation in the sector. Furthermore the charter aims to facilitate BBEE by:
• Increasing the Black, female, disabled and youth ownership and management of new and existing agricultural enterprises.
• Increase the participation of these groups in economic activities, infrastructure and skills development.
• Empowering rural communities to do the same. In order to reach these objectives representation of the designated groups in senior management, qualified professional, specialist, mid management, skilled technical, academically
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qualified, junior management, supervisory, foreman and superintendent levels must increase within the entire sector.
5.2. Quality and Adequacy of Provision An important finding in the analysis of information and data for the SETA is that of the large gap between sector skills needs and the available pool of skills offered up by the labour force. The following section addresses this in light of proposed strategies outlined in the 2007 SSP update.
5.2.1. Alignment of Skills with Sector Needs Analysis of skills supply made it glaringly apparent that there exists a pool of educated individuals and graduates who simply do not fit the bill in terms of sector skills requirements. This is in part due to the wrong choices made by graduates in terms of their fields of expertise but also due to the misalignment between available educational programmes and curricula and the actual skills needs of the sector. The following strategies were suggested in order to address this issue:
• Talks with higher education about applicability of curricula and development of work-based qualifications to support curricula.
• Qualifications were to be developed for occupations that did not have a training programme such as “cellar master” and “master baker”.
• An evaluation of the different skill sets developed as a result of apprenticeship and learnership training.
Unfortunately due to the time constraints at submission of this document, these initiatives could not be followed up and evaluated.
5.2.2. Scarce Skills The FoodBev SETA launched a “Scarce Skills Project” to develop skilled people in areas identified as scarce skills. This initiative was supported by funds received from the National Skills Fund in early 2007. A scarce skills guide was developed to attract scholars, school leavers and students to career opportunities in the sector. This guide could be used as part career guidance at schools by highlighting scarce skills. It can assist companies with skills planning, assist curriculum development and facilitate the reduction of scarce skills for the sector. The guide also serves to inform a long term human resource strategy in order to align education and training to the needs of the sector and the larger economy.
5.2.3. Support for Entrepreneurial and Small Business Development The majority of companies that operate within the food and beverages manufacturing sector are small businesses. The food and beverages sector is amenable to the formation and sustainability of small business as discussed in prior sections of this report. It has also been pegged as an area which if adequately supported can contribute effectively to poverty alleviation, hence a range of projects have been implemented to ensure the growth and sustainability of small business.
5.3. Description of Projects FoodBev SETA allocates funds to special projects to address issues of building capacity within the sector and meeting sector priorities, some of these projects include:
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5.3.1. Skills Priority Projects
• Learnership Support The SETA has consultancies to provide a comprehensive turnkey learnership service to employers willing to take on unemployed learners.
• ABET This project will provide 1000 persons with the qualifications needed to enter learnerships
• HIV/AIDS Education in the Workplace Approximately 150 company employees nominated to be trained as “peer educators” to combat HIV/AIDS and its impact on the workplace by advising and providing related services to fellow employees. These nominees are credited with NQF credits which will enable an attainment of a national qualification.
• Investors in People Support given to companies implementing the investors in people standard 5.3.2. Capacity Building Projects • SDF capacity building Training of Skills Development facilitators to better fulfill their role in skills development’
• Quality Management System (QMS) Provision of training and assistance to allow interested companies to achieve Training Provider Accreditation with FoodBev SETA.
5.3.3. Stakeholder-run Projects
• New Venture Creation A sum of R500 000 invested to enable 25 owners of companies within the sector, who employ fewer than 50 people to take part in a new venture creation programme.
• Baking Skills At Sasko Sally Koinonia Baking School in Paarl, FoodBev SETA funds have put 39 unemployed learners through an eight-week programme that equipped them with a combination of business-, baking- and life skills, From being unemployed, one participant now earns up to R800 a week through her baking. Another participant enjoyed baking occasionally but now earns a living from it and has several regular customers. More than 60 additional learners will complete the Sasko Sally course with FoodBev’s support
• Processing Skills Thirty unemployed people to attend dairy processing, meat processing and baking programmes at the Agricultural Research Council. The aim is to equip the learners with skills that would open the doors of employment with a view to them starting their own businesses in due course.
54
Annexure A: References Mc Cord, A. Overview of the South African Economy, HRD Review 2003 HSRC: HRD Data Warehouse http://hrdwarehouse.hsrc.ac.za) Statistics South Africa, Quarterly Reviews 2000 – 2005 Statistics South Africa, Labour Force Survet, September 2007 Department of Trade and Industry 2008. Transformation Charter for Agriculture, AgriBEE Department of Education, 2007 Annual Report 2006/2007 Western Cape Provincial Advanced Manufacturing Technology Strategy (PAMTS) vol1. Department of Labour (2007) Annual Labour Market Bulletin 1 April 2006 – 31 March 2007 Department of Agriculture. 2004. AgriBEE: Broad-Based Black Economic Empowerment Framework for Agriculture. Available. [Online]: http://www.nda.agric.gov.za (November 2004). Esterhuyse, W. Socio-political Environment: Trends, Challenges and Prospects. Metlife. Oct. 2003. Medical Research Council, quoted by Jocelyn Vass, HRD Review 2003 Department of Agriculture. 2001. The Strategic Plan for South African Agriculture. Available. [Online]: http://www.nda.agric.gov.za (December 2004). NEDLAC. 2003. Growth and Development Summit Agreement. Available. [Online]: www.polity.org.za/pdf/ GDSAgreement.pdf (August 2005). Luüs, Christo (Oct 2003) Economic Overview of the South African Economy, ABSA Economic Research Group, October 2003 HSRC (2003) Human Resources Development Review 2003, Pretoria Statistics SA, September 2003 Labour Force Study P0210September 2003.pdf DTI SA Economy www.thedti.gov.za/econdb/manufrev Dept of Labour (2003) National Skills Survey Compiled by HRD Research Programme, HSRC Kraak et al (2000) Baseline Survey of Industrial Training in South Africa Gelb, (2003) S An Overview of Inequality, Poverty and Growth in south Africa The EDGE Institute
55
Bhorat, H. (2003b) The Post Apartheid Challenge: Labour Demand Trends in the South African Labour Market, 1995-1999. Development Policy Research Unit, University of Cape Town. DPRU WP 03/82. Statistics South Africa. The South African Labour Market. Pretoria, 2002b Bhorat, H (2000) The Impact of Trade and Structural Changes on Sectoral Employment in South Africa. Development South Africa. Gujarati, DN, 2003, Basic Econometrics, McGraw-Hill Seria, N & Wessels, V (2008) South African Economy Rebounds as Power Outages Ease (Update2) http://www.bloomberg.com BER (Bureau for Economic Research) (2006) The Economic impact of HIV/AIDS under alternative intervention scenarios (with specific reference to ART) on the South African economy, June 2006. HSRC (Human Science Research Council) (2005) Labour Markets and Social Policy: A Review of Labour Markets in South Africa:The Impact of HIV/AIDS on the Labour Market SA Wine Council Media Release, August 2007 www.wine.co.za/news SARB (South Africa Reserve Bank) 2007. http://www.reservebank.co.za
56
Annexure B: Scope of Coverage of Food and Beverages Manufacturing Sector
SIC DESCRIPTION
301
Production, processing and preservation of meat, fish, fruit, vegetables, oils and fats
3011
Production, processing and preserving of meat and meat products
This group includes the operation of slaughterhouses, killing, dressing or packing meat of cattle, hogs, sheep, goats, horses, poultry, rabbits, game or other animals. Included is the processing of whales on land or on vessels specialised for this work.
The production of fresh, chilled or frozen meat or poultry.
Preservation and preparation of meat and meat products by such process as drying, smoking, salting, quick-freezing, immersing in brine or canning. Sausage production and manufacture of natural sausage casings is included.
Rendering and refining of lard or other edible animal fats.
Production of meat meals or meat offal, packed meat pies and biltong.
Slaughtering includes the production of by-products such as raw hides and skins, pulled wool, feathers or down, teeth or bones.
3012
Processing and preserving of fish and fish products
This group includes the preserving of fish and fish products by processes such as drying, smoking, curing, salting, immersing in brine, dehydrating, quick-freezing or canning, and the production of fresh, chilled or frozen fish fillets or roe, including caviar and caviar substitutes. The production of frozen fish, including fish which has been cut up, minced or ground into flour for human consumption.
The production of fermented fish, fish paste or fish balls. The production of fish-meal for human consumption or animal feed.
The preserving of crustaceans or molluscs by freezing or by other means such as drying, smoking, salting, immersing in brine, cooking in sauces or immersing in vinegar. The production of meal and solubles from fish, crustaceans and molluscs and other aquatic animals unfit for human consumption.
Activities of vessels engaged in processing and preserving fish, crustaceans and molluscs are also classified here.
3013
Processing and preserving of fruit and vegetables
This group includes the manufacture of food consisting mainly of fruit or vegetables.
The preserving of cooked or uncooked fruit or vegetables by freezing, including the preparation or preserving of fruit or vegetable juices.
Preserving by other means such as dehydration, drying, immersing in oil or in vinegar.
The processing of potatoes.
The manufacture of prepared meals or vegetables.
The manufacture of potato flour and meal.
The preserving of fruit and vegetables by canning.
The manufacture of jams, marmelades or jellies.
3014
Manufacture of vegetable and animal oils and fats
This group includes the manufacture of oils and fats from vegetable or animal materials, except the rendering and refining of lard and other edible animal fats. The manufacture of whale oil. The extraction of oils from fish or fish liver. The production of vegetable oils, including oils from nuts or olives.
The production of cake or meal, or other residual products of oil production.
The production of non-defatted flour or meal of oil-seeds, oil nuts or oil kernels.
57
SIC DESCRIPTION
The production of partly hydrogenated oils; the production of margarine or other table oils or cooking fats.
The production of cotton seed oil includes cotton linters as a by-product.
302
Manufacture of dairy products
3020
Manufacture of dairy products
This group includes milk processing, the grading, filtering, testing or chilling of fresh, liquid full cream milk or cream, separating cream from milk, the pasteurising, sterilising, homogenising, peptonising or humanising of milk, the freezing or whipping of cream, milk concentrating, fermenting, "culturing", the production of milk or cream in solid form, i.e. in blocks, powder or granules.
The production of natural butter or butter that has been dehydrated, resolidified or made rancid.
The production of cheese or curd: Fresh, ripened, hard or processed cheese.
The production of whey: Fresh, concentrated or dry.
The production of yoghurt, ice cream and other edible ice, whether containing cream or chocolate or not.
The production of casein or lactose.
303
Manufacture of grain mill products, starches and starch products and prepared animal feeds
3031
Manufacture of grain mill products
This group includes grain milling: Flour, groats, meal or pellets of wheat, rye, oats, maize or other cereal grains.
Rice milling: Husked, milled, polished, glazed, parboiled or converted. The production of rice flour.
Vegetable milling: Flour or meal of dried leguminous vegetables, of roots or tubers, or of edible nuts.
The manufacture of breakfast foods obtained by roasting or swelling cereal grains or by rolling, pearling, flaking or polishing grains.
3032
Manufacture of starches and starch products
This group includes the manufacture of starches: Starches made from maize, rice, other grains, potatoes, manioc or other vegetable materials.
Wet grain milling.
The manufacture of glucose and glucose syrup, maltose.
The manufacture of gluten is included.
The manufacture of tapioca and tapioca substitutes prepared from starch.
The production of maize oil.
3033
Manufacture of prepared animal feeds
This group includes the production of prepared pet foods: Preparations consisting of mixtures of materials or of materials specially treated or packaged to make them suitable as feed for dogs, cats, birds, fish or other pet animals.
The manufacture of prepared feeds mainly for farm animals, including pre-mixes or feed concentrates, sweetened fodder or feed supplements.
304
Manufacture of other food products
3041
Manufacture of bakery products
This group includes the manufacture of fresh, frozen or dry bakery products: Fresh bread or rolls. Pastry, cakes, pies, tarts or other fine bakers’ wares. Biscuits and other dry bakery products.
3042
Manufacture of sugar, including golden syrup and castor sugar
This group includes the production of cane or beet sugar: Raw cane sugar, refined cane or beet sugar, syrup made of beet or cane sugar, other sugars and sugar syrups (e.g. maple sugar, invert sugar, palm sugar, castor sugar). The production of molasses.
3043
Manufacture of cocoa, chocolate and sugar confectionery
58
SIC DESCRIPTION
This group includes manufacture of cocoa in the form of paste, powder or blocks. The manufacture of cocoa butter, fat or oil.
The manufacture of chocolate or other chocolate preparations.
The manufacture of sugar confectionery such as boiled sweets, toffees, marshmallows, fudge, caramels, cachous, nougat, fondants and white chocolate. The manufacture of chewing gum.
The preserving of fruit, nuts, fruitpeels and other parts of plants in sugar.
3044
Manufacture of macaroni, noodles, couscous and similar farinaceous products
This group includes the manufacture of uncooked farinaceous products: Spaghetti, macaroni, noodles or other pasta products shaped for use in the preparation of lasagne, canneloni, ravioli, etc.
Manufacture of couscous. Manufacture of stuffed pasta, whether or not cooked.
Manufacture of other cooked pasta products. Manufacture of canned or frozen pasta products.
3049
Manufacture of other food products n.e.c.
This group includes roasting, grinding and decaffeinating of coffee. The manufacture of coffee substitutes containing coffee.
The manufacture of extracts, essences of concentrates of coffee and preparations with a basis of these products.
The roasting and grinding of chicory and the preparation of other roasted coffee substitutes and their essences, extracts or concentrates.
The manufacture of tea or maté extracts, essences or concentrates or preparation with a basis of these essences, extracts or concentrates or with a basis of tea or maté. Rooibos tea is included.
The production of liquid, powdered or frozen whole eggs, egg whites, egg yolks, reconstituted eggs and preserved eggs.
The production of foods for infants or for invalids which contain homogenised ingredients including meat, fish, fruit, vegetables, milk or malt extracts.
The roasting of nuts or the manufacture of nut foods and pastes.
The manufacture of artificial honey, caramel and inulin.
The manufacture of soup in liquid, powder or solid form, including frozen soup and soup tablets.
The manufacture of soup containing meat, fish, crustaceans, molluscs or pasta.
The manufacture of tartaric materials, baking powder, custard, pudding-powders and flavoured cool drink powders.
The manufacture of spices, sauces and condiments including mustard or mustard flour.
The manufacture of vinegar, yeast or other food products not elsewhere classified, including extracts and juices of meat, fish, crustaceans or molluscs.
The manufacture of pre-cooked meals for resale.
305
Manufacture of beverages
3051
Distilling, rectifying and blending of spirits;ethyl alcohol production from fermented materials; manufacture of wine
This group includes the manufacture of distilled, potable, alcoholic beverages such as whisky, rum, brandy, gin, prepared mixed drinks, liqueurs, cordials, liquors or other alcoholic beverages containing distilled ethyl alcohol.
The manufacture of compound alcoholic preparations of a kind used to make beverages.
Ethyl alcohol production by processes involving the fermentation of vegetable materials and the distillation of the resulting liquors.
The production of neutral spirits.
This group also includes the manufacture of wine from grapes not grown by the same unit, including sparkling and flavoured wines.
The manufacture of fortified wine such as sherry and marsala is included.
The manufacture of other fermented but not distilled alcoholic beverages such as perry, cider, mead or sake.
3052
Manufacture of beer and other malt liquors and malt
59
SIC DESCRIPTION
This group includes the manufacture of malt liquors such as beer, ale, porter and stout.
The manufacture of sorghum beer.
The manufacture of malt.
3053
Manufacture of soft drinks; production of mineral waters
This group includes the manufacture of non-alcoholic beverages commonly known as soft drinks.
The manufacture of soda water and of drinks flavoured with fruit juices, syrups, or other materials.
The production, i.e. bottling at the source, of spa, mineral or sea water.
60
Annexure C: List of Scarce Skills
Occupation Code Occupation SS Specialisation Critical Skills Intervention
NQF Level
NQF Aligned (Y/N)
Total Number required
1. MANAGERS
11 Chief Executives, General Managers and legislators
111 Chief Executives, General Managers and legislators
1111 Chief Executives and Managing Directors (Enterprises / Organisations)
111101 Chief Executive Officer / Managing Director (Enterprise / Organisation) Yes
Leadership, teamwork, managing people Honours/Masters (MBA) 7 Yes 8
1112 General Managers
111201 Corporate General Manager Yes
Leadership, teamwork, finance Honours/Masters (MBA) 6 Yes 56
13 Specialist Managers
131 Advertising, Marketing and Sales Managers
1311 Advertising, Marketing and Sales Managers
131102 Sales and Marketing Manager Yes Leadership, budgeting
Diploma/Degree/Work experience/ learnership
6 Yes 72
132 Business Administration Managers
1321 Corporate (Administration & Business) Services Manager
132101 Corporate Services Manager Yes
Leadership, teamwork, budgeting
Diploma/Degree/Work experience/ learnership
6 Yes 13
1322 Finance Managers
132201 Finance Manager Yes
Leadership, teamwork, managing people BCOM/CIMA/CA/ND/MBA 6 Yes 96
61
Occupation Code Occupation SS Specialisation Critical Skills Intervention
NQF Level
NQF Aligned (Y/N)
Total Number required
1323 Human Resource Managers
132301 Personnel / Human Resource Manager Yes
Leadership, budgeting, strategic thinking
Diploma/Degree/Work experience/ learnership
6 Yes 17
1325 Research and Development Manager
132501 Research and Development Manager Yes
Innovation, teamwork, budgeting
Diploma/Degree/Work experience
6 Yes 42
1335 Production / Operations Manager
133502 Production / Operations Manager (Manufacturing) Yes
Managing people, teamwork
Degree, Diploma, Certificate, plus learnership or internship 6 Yes 232
1336 Supply and Distribution Manager
133601 Supply and Distribution Manager Yes
Finance, food safety
Degree, Diploma, Certificate, plus learnership or internship 6 Yes 49
1351 Information and Communication Technology (ICT) Managers
135102 ICT Project Manager Yes
Budgeting, teamwork, leadership
B Comm Information Technology/ Internship 5 Yes 15
1399 Other Specialist Managers
139904 Quality Assurance Manager Yes
Finance, managing people
Degree, Diploma, Certificate, plus learnership or internship 5 Yes 34
PROFESSIONALS
22 Business, Human Resource and Marketing Professionals
62
Occupation Code Occupation SS Specialisation Critical Skills Intervention
NQF Level
NQF Aligned (Y/N)
Total Number required
221 Accountants, Auditors and Company Secretaries
2211 Accountants
221101 Accountant (General) Yes
Teamwork Degree, Diploma, plus internship 5 Yes 97
2231 Human Resource Professionals
223101
Human Resource Advisor Yes
Finance, strategic thinking
Degree, Diploma, Certificate, plus learnership or internship 5 Yes 34
2233 Training and Development Professional
223301 Training and Development Professional Yes
Finance, strategic thinking
Degree, Diploma, Certificate, plus learnership or internship 5 Yes 56
2251 Advertising and Marketing Professionals
225103 Marketing Specialist Yes
Finance, knowledge of FMCG environment
Nas Diploma/B Comm/Internship 87
23 Design, Engineering, Science and Transport Professionals
233 Engineering Professionals
2333 Electrical engineers
233301 Electrical Engineer Yes
Teamwork, Finance, knowledge of FMCG environment
Degree, work experience, learnership 6 Yes 67
2334 Electronics Engineers
63
Occupation Code Occupation SS Specialisation Critical Skills Intervention
NQF Level
NQF Aligned (Y/N)
Total Number required
233401 Electronics Engineer Yes B Engineering/Internship
Teamwork, Finance, knowledge of FMCG environment
Degree, work experience, learnership 6 Yes 22
2335 Industrial, Mechanical and Production Engineers
233503 Production or Plant Engineer Yes
Teamwork, Finance, knowledge of FMCG environment
Degree, work experience, learnership 6 Yes 135
234 Natural and Physical Science Professionals
2342 Chemists, and Food and Wine Scientists
234202 Food Technologist Yes
Finance, knowledge of FMCG environment
Diploma, degree, work experience, learnership 5 Yes 172
2345 Life Scientists
234507 Microbiologist Yes
Finance, knowledge of FMCG environment
Diploma, degree, work experience, learnership 5 Yes 45
261 ICT Professionals
2611 ICT Business and Systems Analysts
261101
ICT Business Analyst Yes
Working in teams
Diploma, degree, work experience, learnership 5 Yes 45
263 ICT Network and Support Professionals
2632 ICT Support and Test Engineers
263202
ICT Support Engineer Yes
Finance, knowledge of FMCG environment
Diploma, degree, work experience, learnership 5 Yes 18
TECHNICIANS AND TRADES WORKERS
31 Engineering, ICT and Science Technicians
64
Occupation Code Occupation SS Specialisation Critical Skills Intervention
NQF Level
NQF Aligned (Y/N)
Total Number required
312 Building and Engineering Technicians
3123 Electrical Engineering Draftspersons and Technicians
312302
Electrical Engineering Technician Yes
Teamwork, food safety
Diploma, apprenticeship, learnership, work experience 5 Yes 177
3125 Mechanical Engineering Draftspersons and Technicians
312502
Mechanical Engineering Technician Yes
Teamwork, food safety
Diploma, apprenticeship, learnership, work experience 5 Yes 67
32 Automotive and Engineering Trades Workers
323 Mechanical Engineering Trades Workers
3232 Metal Fitters and Machinists
323202
Fitter and Turner Yes
Teamwork Apprenticship/ learnership 4 Yes 214
3235 Millwrights and Mechatronics Trades Workers
323501
Millwright Yes
Teamwork Apprenticship/ learnership 5 Yes 249
34 Electrotechnology and Telecommunications Trades Workers
341 Electricians
3411 Electricians
341101
Electrician (General) Yes
Teamwork Apprenticship/ learnership 4 Yes 168
342 Electronics and Telecommunications Trades Workers
3421 Airconditioning and Refrigeration Mechanics
65
Occupation Code Occupation SS Specialisation Critical Skills Intervention
NQF Level
NQF Aligned (Y/N)
Total Number required
342101
Airconditioning and Refrigeration Mechanic Yes
Teamwork Apprenticship/ learnership 4 Yes 22
3423 Electronics Trades Workers
342304
Electronic Instrument Trades Worker (General) Yes
Teamwork Apprenticship/ learnership 4 Yes 49
35 Food Trades Workers
351 Food Trades Workers
3511 Bakers and Pastrycooks
351101
Baker Yes
Literacy, numeracy, teamwork, food safety and hygiene
Learnership, skills programme 3 Yes 14
CLERICAL AND ADMINISTRATIVE WORKERS
55 Numerical Clerks
551 Accounting Clerks and Bookkeepers
5512 Bookkeepers
551201
Bookkeeper Yes
Teamwork Diploma, certificate, learnership 4 Yes 17
59 Other Clerical and Administrative Workers
591 Purchasing, Supply, Transport and Despatch Clerks
5911 Purchasing and Supply Logistics Clerks
591106
Warehouse Administrator Yes
Numeracy, literacy
Learnership, skills programme 3 Yes 6
5912 Transport and Despatch Clerks
591201
Despatching and Receiving Clerk Yes
Numeracy, literacy
Learnership, skills programme 3 Yes 3
SALES WORKERS
66
Occupation Code Occupation SS Specialisation Critical Skills Intervention
NQF Level
NQF Aligned (Y/N)
Total Number required
61 Sales Representatives and Agents
611 Insurance Agents and Sales Representatives
6113 Sales Representatives
611306
Manufacturers (Sales) Representative Yes
Understanding of FMCG environment; numeracy Diploma, learnership 4 Yes 176
MACHINERY OPERATORS AND DRIVERS
71 Machine and Stationary Plant Operators
711 Machine Operators
7119 Other Machine Operators
711909 Food and Beverage Process Machine Operator nec
Yes
Numeracy, literacy
Learnership, skills programme, apprenticeship 3 Yes 256
73 Road and Rail Drivers
732 Delivery Drivers
7321 Truck Drivers
732101
Delivery Driver (Vehicle) Yes
Numeracy, literacy
learnership, skills programme 3 Yes 95
LABOURERS
83 Factory Process Workers
839 Miscellaneous Factory Process Workers
8393 Product Quality Controllers
839303
Product Tester Yes
Understanding of FMCG environment; numeracy
Certificate, diploma, work experience 4 Yes 44
831 Food Process Workers
8311 Food and Drink Factory Workers
67
Occupation Code Occupation SS Specialisation Critical Skills Intervention
NQF Level
NQF Aligned (Y/N)
Total Number required
831102 Brewer (Food and drink factory worker) Yes
Literacy, numeracy, teamwork, technical skills
Learnership, skills programme, diploma 4 Yes 18
831103 Confectionery maker Yes
Literacy, numeracy, teamwork, technical skills
Learnership, skills programme 3 Yes 46
831104 Dairy Products Maker Yes
Literacy, numeracy, teamwork, technical skills
Learnership, skills programme 4 Yes 52
831106 Grain Mill worker Yes
Literacy, numeracy, teamwork, technical skills
Learnership, skills programme 3 Yes 11
831108 Winery Cellar Hand Yes
Literacy, numeracy, teamwork, technical skills
Learnership, skills programme 3 Yes 5
8313 Meat, Poultry and Seafood Process Workers
831301 Meat process worker Yes
Literacy, numeracy, teamwork, technical skills
Learnership, skills programme 3 Yes 30
Annexure D: Proposed Methodology for Validating Scarce and Critical Skills
External Validity The table below presents a summary statistics of the sampling frame for the scarce and critical skills. The big assumption behind this computation is that the number of registered companies, as given in Table 1.6, Chapter 1, represents the total population of food and beverage manufacturing industries for which the SETA is responsible. The external validity concerns to what extent one may safely generalize the scarce skills figures derived for this study to the population of all the food and beverage manufacturing companies. The total sample is valid within a statistical margin of error 1.36. When all the companies are put together, the margin of error is about 1.36 with a confidence level of 95%. This means that if the study is conducted 100 times using the exact same procedures, the margin of error would include the "true value" in 95 out of the 100 telephonic surveys. In other words, if we should go out to do this same study to look for scarce skills in the food and beverage manufacturing industries we are 95% confident that companies would say that there is a need for about 510 millwrights, for example. Table 1
Sub-sector Percent Population Sample
Confidence Interval at 95% level
Food prep 22.2 2661 591 2.96 Processed 20.8 7720 1606 1.77
BCCS 22.8 1464 334 3.95 Beverages 15.9 868 138 5.60
Dairy 9.9 517 51 7.82 All 20.6 13230 2719 1.36
If, for example, 80% of food and beverage manufacturing companies report of the need for 510 millwrights in this sample (study) this year, the margin of error of 1.36 tells us that in the whole population of food and beverage manufacturing companies in South Africa, between 78.6% and 81.4% of them really need millwrights. The small margin of error gives a strong basis for the representativeness of the outcome generated from this study. However, when drilled down to the level of sub-sectors, the margins begin to widen, throwing caution about any attempt to divide the scarce/critical skill figures among the sub-sectors.
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