SECTOR SKILLS PLAN UPDATE 31 JANUARY 2014 Sector... · Development Strategy and the Skills Accord...

SECTOR SKILLS PLAN UPDATE

31 JANUARY 2014

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http://www.teta.org.za/index.shtml

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SYNOPSIS

The Sector Skills Plan has been prepared in accordance with the guidelines of the National Skills Development Strategy (NSDS III) and the DHET Guide to the Process and Timeframes. The principal aim of this Sector Skills Plan is to guide and inform skills development initiatives in the designated sector. It is the outcome of a thorough research process and extensive stakeholder consultation and engagement. The Sector Skills Plan informs the strategic and annual plans of the SETA and serves as a signpost for policy-making by Council. Firstly, we have adopted an evidence-led research approach for identifying and anticipating scarce and critical skills. This has been achieved by devising a customised methodology to identify scarce skills in the sector. This is explained clearly in Chapter Two of the document. In the future we intend refining the research methodology to serve as an early warning system for anticipating skills shortages in the transport sector. We want to be in a position to justify our choices. Secondly, we have given consideration to national policy issues outlined in the New Growth Path, HRDSA, National Development Plan, IPAP, National Skills Development Strategy and the Skills Accord in the SSP. These priorities inform skills development projects in the SETA. Thirdly, we have advised our research team to produce an SSP that is easy-to-read. The primary target audience is employers and labour unions. The secondary audience is public entities, NGOs, public entities, CBOs, investors, training providers and other interest groups. Our SSP is not written in a thesis or peer-reviewed academic journal style, but rather as a document which is in the public domain for all to read. We want employers and trade unions to engage with the document. Fourthly, the SSP is concise; visual and graphic; uses simple language; and easy to understand. All this is achieved without compromising the integrity, accuracy and thoroughness of the research. The SSP is analytical, incisive and insightful, not purely descriptive in nature. This enables a deeper understanding of occupational and skills needs. We have balanced quantitative research with qualitative insights. Finally, we have considered the DHET feedback on the previous SSP (2012) and the Continuous Improvement Plan and responded accordingly. The Sector Skills Plan is submitted to the Minister of Higher Education and Training in partial compliance with the requirements of the Skills Development Act 1998 and the National Skills Development Strategy (NSDS III). The Sector Skills Plan is endorsed by duly authorised representatives.

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CHAIRPERSON: TETA BOARD

_________________________ Mr June Dube

Date: 31 January 2014

TETA CHIEF EXECUTIVE OFFICER

_________________________

Mrs Maphefo Anno-Frempong

Date: 31 January 2014

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CONTENTS

SYNOPSIS .................................................................................................................... 1

ABBREVIATIONS…………………………………………………………………………………………………….7

EXECUTIVE SUMMARY ................................................................................................ 8

CHAPTER ONE: SECTOR PROFILE ............................................................................. 11

1.1 INTRODUCTION ............................................................................................. 11

1.2 STAKEHOLDER ENGAGEMENT ....................................................................... 11

1.3 SCOPE OF COVERAGE (SIC CODES) ................................................................ 12

1.4 PROFILE OF THE TRANSPORT SECTOR ........................................................... 16

1.4.1 Key Features of the Transport Sector ..................................................... 17

1.5 LABOUR MARKET CONTEXT ........................................................................... 18

1.5.1 Employment by Industry and Sector ...................................................... 19

1.5.2 Transport Sector Employment ............................................................... 20

1.5.3 Employment by Sub-Sector in Transport ............................................... 21

1.5.4 Employment by Province ........................................................................ 21

1.5.5 Transport Sector Enterprises by size and province ................................ 22

1.5.6 Transport Sector Enterprises by size and chamber ................................ 23

1.5.7 Employment by Race, Gender and Disability ......................................... 24

1.5.8 Employment Equity ................................................................................ 29

1.5.9 Terms of Employment ............................................................................ 30

1.6 ALIGNMENT WITH NATIONAL STRATEGIES ................................................... 31

1.7 DRIVERS OF CHANGE ..................................................................................... 32

1.7.1 Decent Work ........................................................................................... 32

1.7.2 Greening the Transport Sector ............................................................... 33

1.7.3 Small Enterprise Development ............................................................... 34

1.7.4 Strategic Integrated Project (SIP) ........................................................... 35

1.7.5 Southern African Rail Network ............................................................... 36

1.7.6 HIV/AIDS ................................................................................................. 37

1.8 CONCLUSION ................................................................................................. 38

CHAPTER TWO: RESEARCH DESIGN AND METHODOLOGY .................................... 40

2.1 INTRODUCTION ............................................................................................. 40

2.2 LABOUR MARKET INTELLIGENCE SYSTEM ..................................................... 40

2.3 RESEARCH DESIGN ......................................................................................... 41

2.4 RESEARCH METHODS .................................................................................... 42

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2.4.1 Interviews with Key Informants ............................................................. 43

2.4.2 Expert Workshop .................................................................................... 43

2.4.3 WSP/ATR ................................................................................................. 43

2.4.5 Regional Workshops ............................................................................... 44

2.4.6 Employer Bodies and Trade Unions ....................................................... 44

2.4.7 Career Junction Index ............................................................................. 44

2.5 CRITERIA FOR DETERMINING SCARCE SKILLS ................................................ 45

2.6 CONCLUSION ................................................................................................. 47

CHAPTER THREE: SUPPLY OF SKILLS ........................................................................ 48

3.1 ANALYSING LABOUR SUPPLY-DEMAND ........................................................ 48

3.1.1 CareerJunction Index .............................................................................. 48

3.2 SUPPLY OF SKILLS........................................................................................... 49

3.2.1 Employment by Occupation and Industry .............................................. 49

3.2.2 Education Levels ..................................................................................... 50

3.3 WSP 2013/2014 and ATR 2012/2013 ............................................................ 52

3.3.1 Race Profile by Occupational Levels ....................................................... 52

3.3.2 Training by Race, Age and Region .......................................................... 53

CHAPTER FOUR: DEMAND FOR SKILLS .................................................................... 62

4.1 SKILLS DEMAND ............................................................................................. 62

4.2 INDUSTRIES DISPLAYING MAJOR DEMAND ................................................... 64

4.3 INDUSTRY TRENDS ......................................................................................... 64

4.4 DEMAND FOR SPECIFIC OCCUPATIONAL FIELDS ........................................... 66

CHAPTER FIVE: SCARCE AND CRITICAL SKILLS ........................................................ 68

5.1 SCARCE SKILLS................................................................................................ 68

5.2 CRITICAL SKILLS .............................................................................................. 80

5.3 CONCLUDING REMARKS ................................................................................ 82

CHAPTER SIX: STRATEGIC FRAMEWORK ................................................................. 84

6.1 PERFORMANCE MONITORING AND EVALUATION ........................................ 84

6.2 STRATEGIC FRAMEWORK .............................................................................. 85

REFERENCES.............................................................................................................. 96

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FIGURES

Figure 1: Proportion of Disabled Employees ........................................................... 28

Figure 2: High Skilled Workers by Race ................................................................... 29

Figure 3: Low Skilled Workforce by Race ................................................................ 30

Figure 4: Research Design to determine Skills in Demand ...................................... 41

Figure 5: Methods used to update the SSP ............................................................. 42

Figure 6: Methodology used for Assessment of Skills in Demand .......................... 46

Figure 7: Education Levels in Transport Sector ....................................................... 51

Figure 8: Occupation-Race Transport Sector .......................................................... 52

Figure 9: Training by Race ....................................................................................... 54

Figure 10: Completed Training by Age .................................................................... 55

Figure 11: Planned Training by Province and Race ................................................. 56

Figure 12: Planned Training by Occupation and Race ............................................. 57

Figure 13: Industries in terms of major demands ................................................... 64

TABLES

Table 1:Demarcation of Standard Industry Classification Codes ............................ 12

Table 2: Modal Classification of TETA Chambers .................................................... 13

Table 3: Employment by Industry and Sector ......................................................... 19

Table 4: Employment in Transport Industry and Total Employment 2001-2013... 19

Table 5: Employment by Sub-Sectors in Transport Industry, 2013 ......................... 21

Table 6: Employment in Transport Industry by Province, 2013 .............................. 21

Table 7: Number of Enterprises in Transport Sector by Size and Province ............ 22

Table 8: Number of Enterprises in the Transport Sector by Size and Chamber ..... 23

Table 9: Employment by Race and Gender, 2012-2013 .......................................... 24

Table 10: Employment in Transport Industry by Gender, 2008-2013 (000') .......... 25

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Table 11: Employment in Transport Industry by Age and Gender .......................... 25

Table 12: High-Skilled Workforce by Age ............................................................... 26

Table 13: Low-Skilled Workforce by Age ................................................................. 27

Table 14: High-Skilled Workforce by Gender .......................................................... 27

Table 15: Low-Skilled Workforce by Gender ........................................................... 28

Table 16: Terms of Employment ............................................................................. 30

Table 17: Employment by Occupation and Industry ............................................... 49

Table 18: Education Levels in Transport Industry ................................................... 50

Table 19: Training according to Occupation Class for the Employed and

Unemployed ............................................................................................................ 55

Table 20: Companies indicating Employees in specific Occupations to be trained 60

Table 21: Supply and demand trends in the Industry ............................................. 65

Table 22: Recruitment conditions in the Transport Industry .................................. 66

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ABBREVIATIONS

Abbreviations Description

ABET Adult Basic Education and Training

ATR Annual Training Report

DBSA Development Bank of Southern Africa

DHET Department of Higher Education and Training

ETQA Education and Training Quality Assurance

FET Further Education and Training

HET Higher Education Training

HRDSA Human Resource Development Strategy for South Africa

HSRC Human Sciences Research Council

IPAP Industrial Policy Action Plan

MOU Memorandum of Understanding

NDP National Development Plan

NGP New Growth Path

NQF National Qualifications Framework

NVC National Vocational Certificate

NSDS National Skills Development Strategy

OFO Organising Framework for Occupations

PFMA Public Finance Management Act

PIVOTAL Professional, Vocational, Technical and Academic Learning

QCTO Quality Council for Trades and Occupations

QES Quarterly Employment Survey

QLFS Quarterly Labour Force Survey

RPL Recognition of Prior Learning

SAQA South African Qualifications Framework

SETA Sector Education and Training Authority

SIC Standard Industrial Classification

SIPs Strategic Integrated Projects

SMME Small, Medium and Micro Enterprises

SDF Skills Development Facilitator

SSP Sector Skills Plan

STATS SA Statistics South Africa

WSP Workplace Skills Plan

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EXECUTIVE SUMMARY

The transport sector plays a central role in the South African economy. It contributed 2% to Gross Domestic Product in 2011. The sector presently employs approximately 831 701 people which represents 6% of the national workforce. Between 2001 and the second quarter of 2013 employment in the transport sector grew by 17.9%, whilst total labour force employment increased by 9%. This means the transport sector is an important generator of employment in the SA economy. From 2001 to 2008 employment in the transport sector grew steadily from 683 000 to 774 000. This represents an increase of 11.75% in employment. As the global economic crisis unfolded in 2008, the economy lost 344 000 jobs between 2008 and 2009, whilst the transport sector lost 47 000 jobs. Employment levels in the transport sector rebounded in the second quarter of 2010, 2011, 2012 and the second quarter of 2013. The economy gained 916 000 jobs, whilst the gains for the transport sector was 65 000 jobs. There is a high density of employees in Gauteng, KwaZulu-Natal and Western Cape. Collectively, they comprise 74.3% of total employment in the transport sector.

The government has prioritised the development of the sector for job creation, social and economic development and the competitiveness of the economy as a whole. In 2013, the racial composition of the sector was as follows: Africans (71.9%), Coloureds (11.2%), Indians (4.3%) and Whites (12.6%). These percentages are broadly reflective of national demographics. About 79.6% of employed in the sector are male compared to 20.4% females. There is a need to achieve gender equality in the sector. After 19 years of democracy, it is evident that insufficient progress has been made in transforming the demographic profile of the workforce in the designated sector. About 47% of top management, 46.1% of senior management and 39.8% of professionally qualified employees are White males in the sector. In contrast, 19.5% of top management, 12.4% of senior management and 15.1% of professionally qualified employees are African males in the sector. The above inequalities in the demographic composition of the sector signals the urgent need for policy-makers to do considerably more to redress workforce imbalances. Demographic imbalances also exist between males and females in the workforce which is characterised by male over-representation in the upper echelons of the workforce. There are a number of factors driving change in the transport sector. Some of these factors are sector-specific, whilst others are non-sector specific.

Reducing emissions is a major challenge to transport companies over the next 20 years. By 2030 systems will be in place to ensure that the cost of carbon is

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allocated to the causer. Whether or not they see it as a business opportunity, logistics providers will most likely need to reduce, track, document and disclose their caused CO2 emissions in the future.

Greater numbers of consumers are likely to live in environments which more fully integrate work, leisure and everyday activities, reducing some of their need for transport on a day-to-day basis. Business and leisure travel may also decline, as communication technologies improve and the population ages. Some companies may take a close look at their business models and consider how they position the company for the long-term.

The way products get from the assembly line to the consumer is also likely to change. Logistics service providers will need to cope with different transport architecture, as transportation networks need to change in response to these ultra-large transport modes. More bundling efforts will be required, and the modal split may also be altered. Collaboration is also critical to maintaining flexibility. Transport operators may profit from developing research projects along the supply chain, or sharing resources with competitors.

Technological advances will underpin developments in the supply chain. Supply chains are expected to become more efficient through continuous real-time control of the flow of goods. Real-time control systems enable logistics service providers and their customers to monitor and control many business processes through internet interfaces.

The Public Transport Strategy aims to accelerate the improvement in public transport by establishing integrated rapid public transport networks (IRPTNs), which will introduce priority rail corridors and Bus Rapid Transport (BRT) systems in cities. The essential feature of the Public Transport Strategy is the phased extension of mode-based vehicle recapitalisation into IRPTNs. Government’s policy is underpinned by a strong desire to have an integrated public-transport system.

The demand for crude oil in the coming years is expected to grow at around 10% per year. With oil from the Mexican Gulf expected to dry up in a decade and Russian in two decades, it is expected that the oil price will escalate in the future. This will have a negative impact on the South African economy which imports a large proportion of its oil.

The occupational composition of the sector is as follows: Managers (15.9%); Professionals (3.9%); Technicians (5.9%); Clerks (15.6%); Sales and Service (2.7%); Crafts and Trades (3.8%); Plant and Machinery (38.7%); Elementary (13%). High skills occupations (Managers/Professionals/Technicians) constitute 26.3%; intermediate skills (Clerks/Sales and Service/Crafts and Trades) make up 20.6% and low level skills; (Plant and Machinery/Elementary) comprise 53.1%. A high percentage of people are in the low skills category (53.1%). There is an opportunity to move people with low level skills into the intermediate category.

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Likewise there are opportunities for those with intermediate skills to move into the high skills category with meaningful education and training interventions.

Just 16.4% of people in the sector have a tertiary education; 37.2% have a secondary education; 34.3 % have not completed secondary education; 5.2% have not completed primary education and 1.8 % with no schooling. It is necessary for the sector to improve the proportion of people with tertiary education from 16.4% to potentially about 25% over the next few years.

Africans are in the majority at elementary, operator, sales, clerical and service levels which range from low level to intermediate level occupations. Whites are in the majority of technicians, professionals and managers which comprise advanced level occupations. This is a characteristic feature of the SA labour market – Whites mostly dominate the upper end of the occupational spectrum, whilst Blacks (Indians, Coloureds and Africans located at intermediate and lower levels). For example, Whites take up 3.4% of technical posts compared with Africans with 2.6%. In March 2011 Whites took up 32% of managerial posts compared with Africans with 7%.However, in March 2012 Africans took up 7.1% of managerial posts compared with Whites with 5%. Affirmative Action should be a very high priority of the skills agenda for the transport industry.

The strategic interventions required in the sector over the next 5 years are as follows:

Promote a Decent Work Agenda for employees in the Transport Sector; Participation in Strategic Integrated Projects (SIPs) Information and career guidance to encourage new entrants to the

Transport Sector; Promote and implement Recognition of Prior Learning (RPL) in the

Transport Sector; Occupational learning programmes to facilitate access, success and

progression to address scarce skills shortages in the Transport Sector; Skills programmes and other non-accredited short courses for the

employed and unemployed; Widening access to HET and FET for people who do meet entry

requirements; Establish Institutional Sectors of Excellence (ISOE) to deliver learning

programmes; Promote corporate environmental sustainability in the Transport Sector; Re-curriculating legacy qualifications and development of new

qualifications mapped to scarce skills; Addressing youth unemployment and employability; Promoting the sector to women; Fostering the development of green skills and occupations; Developing an SMME strategy for skills development; Setting a new skills research agenda; Supporting rural development; and HIV/Aids interventions.

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CHAPTER ONE: SECTOR PROFILE

1.1 INTRODUCTION

Chapter One profiles the Transport Sector within the wider context of the South African Economy. It provides an overview of the size and shape of the South African Transport Sector for the purposes of analysing skills supply and demand. It outlines the scope of coverage of the Transport Education and Training Authority (TETA) using Standard Industrial Classification codes (SIC codes). Factors driving change in the sector with an impact on skills development are discussed. The chapter also examines the economic performance of the sector. The labour market context of the transport sector is also provided.

1.2 STAKEHOLDER ENGAGEMENT Stakeholder participation is integral to the compilation of the Sector Skills Plan. Widespread consultations were held with key stakeholders in the sector. Exceptional value was added through the incorporation of focus group and questionnaire data from stakeholders. The major steps in the research process are the following:

Review of existing data and information sources

Literature search of studies in the sector

Analysis of industry market reports

Review of workplace skills plans and annual training reports

Annual Reports of employer associations, trade unions and bargaining councils

Meeting with Board members, SETA Managers and Projects Committee

Interviews with key informants in the sector

Group discussions with stakeholders

Regional workshops with stakeholders

Revision of the Sector Skills Plan

Presentation of SSP to SETA stakeholders

Approval of SSP with Board

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1.3 SCOPE OF COVERAGE (SIC CODES)

The scope of coverage of TETA in terms of the Skills Development Act 97 of 1998 is as follows:

Table 1:Demarcation of Standard Industry Classification Codes

SIC CODE INDUSTRY NAME

13100 Ocean and Coastal Fishing

71112 Railway Commuter and Freight Services

71200 Other Land Transport

71211 Urban; Suburban and Inter-urban Bus and Coach Passenger Lines

71212 School Buses

71221 Taxis

71230 Freight Transport by Road

71232 Freight Forwarding and Clearing

71300 Transport via Pipelines

72000 Water Transport

72111 Coastal Shipping

72112 Ocean Shipping

72200 Inland Water Transport

73000 Air Transport

73001 Civil Aviation

74100 Supporting and Auxiliary Activities Air Transport

74110 Cargo Handling

74120 Storage and Warehousing

74134 Operation of Airports, Flying Fields & Air Navigation Facilities

94004 Waste Management

Source: TETA Annual Report 2011/12

The transport sector consists of at least four broad sub-divisions. A sub-division is defined by modes of transport and encompasses:

The following table classifies the 8 TETA chambers to the different modes of transport or main activities:

Inter & multi-modal (passengers, freight, forwarding and clearing)

land (road, rail, pipelines)

Air

Sea

(Maritime & Coastal)

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Table 2: Modal Classification of TETA Chambers

Air Sea Land

Aerospace Maritime Rail: Road Freight Road Passenger; Taxi

Intermodal/Multimodal

Forwarding & Clearing; Freight Handling

Logistics Supply Chain Management

Aerospace; Forwarding & Clearing; Freight Handling; Maritime Rail; Road Freight; Road Passenger; Taxi

Forwarding & Clearing Freight Handling

Passenger Freight

Aerospace; Maritime; Rail; Road Passenger; Taxi

Aerospace Forwarding & Clearing Freight Handling; Maritime; Rail; Road Freight

Source: TETA Annual Report 2011/2012

The description of the functions of the sub-sectors within the Transport Sector is captured from SA Online, Pocket Guide to South Africa 2009 for transport, p 120-126):

Aerospace The industry deals with the air transportation of passengers, goods (cargo and air freight) and mail. This industry has two dimensions, namely, air navigation (aspects related to physical movement, reliability and safety) and economic control (the right to convey traffic passengers, mail and cargo by air for reward on a commercial basis). Air navigation includes the provision and regulation of airports, heliports, air traffic and air space services as well as the servicing, calibration and maintenance of equipment. Economic control includes air transportation and activities involving aircraft; their regulation, operation, design, manufacture, maintenance, repair, overhaul and testing. The industry is tightly regulated with high barriers to entry that make it extremely difficult for new operators to enter the sector. As a result, there are a few large companies that dominate the industry. This dominance could have a negative impact on the growth and development of the industry as well as a negative impact on efficiency and cost-effectiveness in the provision of services. Furthermore, the licensing requirements for professional, technician and trades workers within the aviation industry impacts on the rate of supply of qualified individuals. Forwarding and Clearing The forwarding and clearing industry is a complex environment of world transport, international logistics and supply chain management. It plays a crucial role in the conduct of international trade. Freight forwarders organise the movement of goods by all modes of transport – shipping, airline, road and rail. The nature of goods and the customer’s delivery requirements determine the most cost effective and economical method. Recent operational trends point to an increasingly highly competitive environment that is not only creating conditions for frequent and constant mergers and acquisitions, but also the dominance of medium- and large-

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scale companies amid rising security concerns. As a result of the above, coupled with relatively tough regulations, new economic agents are finding it increasingly difficult to venture into the sector. The chamber represents the interests of forwarding and clearing firms; ships‟ agents and brokers; global courier industries; and, importers and exporters. These constitute the main stakeholders of the growth and development of this industry. Indeed, the medium- and large-scale firms‟ interests not only dominate most of the chamber’s activities, but also determine the participation levels depth of the small-scale entrepreneurs. Freight Handling Industry

The freight handling industry is an integral part of the supply chain management system and provides a vital support service to industries which span all modes of transport. This service industry facilitates the storage and stock control of goods through ports, airports, distribution centres, factories and other depots. The goal of companies in the subsector is to become globally competitive, customer-oriented and be the pre-eminent supplier of logistics solutions to customers. The key players in this industry are companies offering services in cargo handling; storage and warehousing; transport via pipeline; and port operations. For instance, the cargo handling industry has well established entities and a sizeable number of SMEs. The storage and warehousing industry is predominantly, but not entirely, SMEs. The South African Petroleum Industry members such as SASOL dominate the pipeline industry. These are the primary clients of Transnet Pipelines. Maritime Industry

The maritime chamber operates in the environment of ocean and coastal shipping, ocean and coastal fishing, port activities and associated land-based activities. In this respect, the industry comprises of three main industries, namely, national ports, fisheries and merchant marine. Regulations governing these industries vary. The national ports for instance are tightly regulated making it difficult for new entrants. These are state owned. The fisheries industry has a significant number of SMME as well as large enterprises such as I&J and Sea Harvest. The merchant marine has a huge presence of global players. The maritime industry is heavily regulated and subject to a number of international conventions, agreements, treaties and protocols. The value chain of the maritime industry is quite complex and encompasses: maritime transport supply chain, shipping, port management, safety and security of coasts and oceans, and marine environment management. Each point of the value chain is governed by some form of regulation/convention/protocol. Over and above this the maritime industry is an integral element of international (global) trade. Over 90% of all international trade is carried by maritime transport. In excess of 95% of South Africa’s trade is moved by sea and through the country’s 7 commercial ports. Trade is the life blood of any

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nation’s economic growth and stability, thus making maritime transport essential to economic development. Rail Industry The rail industry is the backbone of the economy as it supports a range of commodities including goods, passengers and livestock to be transported to various locations within and outside the country’s borders. The industry also includes the management of railways and railway services as well as the maintenance and servicing of rolling stock and locomotives). This industry covers both the commuter and commercial aspect, and is expected to handle about 176 million tonnes of rail freight while covering 467 million rail commuter trips annually. The industry employs over 50 000 employees the majority being in service, sales and technician/trade worker occupations. The infrastructure expansion plans of Transnet which run into billions of rands will obviously be a key driver for skills demand and supply in the rail industry and also in the transport sector as a whole. The National Freight Logistics Strategy has already been mentioned as a key driver for skills demand and supply for rail freight, an element of the integrated freight logistics supply chain. The Integrated Public Transport Plan of government is another driver for skills demand and supply. The government has embarked on implementing the Integrated Public Transport Plan. It has recently allocated about R884 million towards the remodelling and refurbishment of the rail commuter stations. The recent merger between the country’s key rail commuter transport provider, the Metrorail and the South African Rail Commuter Corporation, seeks to increase the economies of scale and improve efficiencies. Road Freight The road freight industry covers both public and private transportation such as trucks moving freight to and from the airports; to and from rail; and, from pipeline distribution centres to petrol stations. As an element of an integrated freight logistics supply chain it is also integral to the implementation of the Freight Logistics Strategy. The key players in the sector are bulk transport carriers, retail fleets, removal companies and courier companies. This industry deals with the daily movement of freight and has recently experienced an increase in the volume of goods transported between production sites or ports and markets. It is estimated that 80% of all freight carried out in this country is done by road. Road Passenger Industry Road passenger is an in industry in which employers and employees are associated for the purpose of transporting passengers for a reward using buses and midi buses only. The industry is integral to the Integrated Public Transport Plan. The industry has more than 200 000 buses, of which three-quarters are used as public transport.

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These buses transport people and their personal goods to different parts of the country. The restructuring and transformation of the public transport system into an integrated multimodal network of public transport will be a critical and key driver for skills demand and supply in the industry. Taxi Industry

The Department of Transport estimates the number of taxis on the road to be at 120 000, based on the number of taxi permits it has issued, while industry organisations estimate there are between 150 000 and 200 000 taxis. The scope of this sector includes the control and management of such vehicles. The industry estimates that about 38% of the population use public transport, of which 65, 14 and 12% use taxis, commuter trains and buses respectively. Due to the significant economic importance of this industry to socio-economic development, traffic authorities have prioritised redressing safety on our roads and ensuring the use of reliable road worthy vehicles. The industry employs people some of whom have no formal education. Furthermore, of late there have been negative reports with regard to the misbehaviour of some of the drivers and rank marshals as well as number of accidents. Indeed, the rude and gender unfriendly behaviour by some of the drivers and rank-marshals at some of the ranks has attracted national condemnation across the country and subsequent multi-sectoral stakeholders public demonstration. Such negative developments call for informal customer-oriented education and skills training programmes in addition to addressing short- to medium-term scarce and critical skills requirements.

1.4 PROFILE OF THE TRANSPORT SECTOR

The transport sector plays a central role in the South African economy. It is a cross-cutting sector and thus has a major influence on other sectors and the well-being of the national economy.

The country’s size means an efficient transport system is essential to manoeuvre people and goods around the interior and for transit to seaports and airports for international connections. Global links are important as the country is at the southern tip of the continent and therefore a vast distance from large European and North American markets. However, this location is also an advantage as South Africa is a conduit for trade within a regional bloc.

There are no rivers that are navigable for anything other than short distances. Accordingly, domestic transport is dependent on road and rail networks, supplemented by air and shipping links with external markets.

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1.4.1 Key Features of the Transport Sector

The transport sector is experiencing robust infrastructure investments to meet the needs of a growing economy. There are considerable public investments in the transport sector which is taking place through TRANSNET and SANRAL. Government is also in support of public-private sector partnerships to raise capital for expansion of the transportation system.

Since transport is a fundamental pillar of a modern economy, the sector requires workers who have the requisite skills to create value in their work. In order to succeed in a highly competitive global market, it requires a high level of education and skills development.

Some of the key features of the sector are the following (SAIRR 2013):

Road & rail industry had total revenues of $29.4 billion and growth of 6.3% between 2007 and 2011.

• Consists of 831 701 employees and 6% of national employment

Sector contributes 8.2% of GDP.

The Road Freight segment contributes 91.8% of the industry's overall value and Rail Freight 8.2%.

SA government is expected to invest more than R14.5bn (US$1.96bn) on development of integrated rapid public transport networks (IRPTNs).

Transnet announced its capital expenditure plans for the next five years of ZAR93bn.

Aerospace grew by 16.3% to reach a value of $4.1 billion.

Domestic airlines accounts for 72.6% of the industry's total volume.

Contribution maritime transport per se and its supporting services is small for the economy

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It is estimated that the transport sector for the period 2010-2014, will expand on par with the economy as a whole at an annual average rate of 3.3%.

South Africa’s major ports in Cape Town, Port Elizabeth, East London, Durban, Saldanah Bay and Richards Bay are positioning themselves to become oil and gas hubs. Richards Bay was originally devised as a coal terminal, but is developing into a multi-modal transhipment port with a dry dock and container facilities.

Combining all factors, freight volume across the different modes, measured in million tonnes-km, will rise by an annual average of 4.1% in the 2010-2014 forecast periods (Business Monitor International, 2012).

LABOUR MARKET CONTEXT This section analyses the particular labour market context for the sector. It provides vital employer and employee information on the sector. It is important to note that data on the size and shape of the labour market in the transport sector is notoriously scarce. First, a significant number of employers and employers such as the taxi industry are operating in the informal sector and therefore not captured in national accounts. The taxi industry accounts for 65 percent of all public transport while buses and trains account for 21 and 14 percent respectively. This industry provides the main form of public transport in the country. The largest group of workers is drivers. In addition to drivers, there are queue marshals, car washers and administrative workers. In some parts of the country there are also fare collectors. About 95% of workers in the taxi industry are African. Less than 2% are women. Many of the women do administrative work for the taxi associations. Very few drivers are self-employed. Most work for a taxi owner and are paid wages. However, very few taxi owners have a formal written contract of employment (International Labour Organization 2003, second impression 2004). Second, a large number of employees are working in the formal sector in atypical forms of employment and go unrecorded. Third, a number of employers are not registered with the South African Revenue Services (SARS) or the National Bargaining Councils. Fourth, a number of employees are not registered to pay skills levies because they are exempted or simply do not pay levies. And fifth, in some sub-sectors employers may be operating illegally. In addition, employer bodies and trade unions are not compiling reliable employment and employee data in the form of reports. The TETA database is also problematic as a result of poor participation rates in the levy grant system by employers and incorrect information on the SARS database. Therefore the most reliable statistics on the transport sector as a whole is contained in the Quarterly Labour Force Survey (QLFS) and Quarterly Employment Survey (QES) published by Statistics SA.

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1.5.1 Employment by Industry and Sector

The table below situates the transport sector within the broader South African economy. It provides formal and informal employment data across 10 sectors. The table reveals the following (STATSSA QLFS 2013, 2nd Quarter): Table 3: Employment by Industry and Sector

Industry Formal Informal Total

Agriculture 711 910

Mining 372 120 1 520 373 640

Manufacturing 1 520 563 214 588 1 735 151

Utilities 112 907 1 628 114 534

Construction 748 595 334 031 1 082 626

Trade 1 922 190 983 319 2 905 509

Transport 626 078 205 622 831 701

Finance 1 677 146 140 913 1 818 059 Community and Social Services

2 711 639 338 138 3 049 777

Private Households 1 092 948

Other 2 847 628 3 475

Total 13 719 330 Source: Stats SA Quarterly Labour Force Survey, Quarter 2, 2013

There are 13 719 330 people employed in SA;

The transport sector employs 831 701 people comprising 6% of the total labour force;

75.3% of people in the transport sector are in formal employment, whilst 24.7% are in informal employment;

The majority of employees (75.3%) in the sector are employed on a formal basis; and

However, there is a growing trend of informalisation in the sector. Table 4: Employment in Transport Industry and Total Employment 2001-2013

Year Transport Industry Total Employment

2001 683 12 494

2005 705 12 769

2008 774 13 713

2009 727 13 369

2010 767 12 803

2011 776 13 123

2012 783 13 421

2013 832 17 719

Stats SA, Quarterly Labour Force Survey, Quarter 2, 2010




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The number of informal employment in the transport sector presents TETA with the challenges of finding ways to promote skills development and encouraging formalisation in the sector by supporting a Decent Work Agenda. One of the key challenges facing the South African economy is to create sufficient jobs on a sustained basis for a growing labour force. The significant number of people in the transport sector in informal employment suggests that this sector also acts as an absorber of labour for those who have lost their jobs in formal employment. In such instances, retrenched workers can pursue unskilled and semi-skilled jobs in the transport sector.

1.5.2 Transport Sector Employment

The table below provides employment figures for the transport sector as a proportion of total employment in the economy between 2001 and 2nd quarter of 2013. From the above table the following can be deduced (STATSSA QLFS 2013, 2nd Quarter):

Between 2001 and 2012 employment in the transport sector grew by 12.7%, whilst total labour force employment increased by 6.9%. This implies that the transport sector is an important generator of employment in the SA economy;

From 2001 to 2008 employment in the transport sector grew steadily from 683 000 to 774 000. This represents an increase of 11.75% in employment. As the global economic crisis unfolded in 2008, the economy lost 344 000 jobs between 2008 and 2009, whilst the transport sector lost 47 000 jobs;

In 2010, employment levels in the economy declined by 566 000 jobs while the transport sector gained 40 000 jobs; and

Employment rebounded from the second quarter of 2011 to the second quarter of 2013. The economy gained 4 596 000 jobs, whilst the gains for the transport sector was 56 000 jobs in 2013.

The transport sector is sensitive to economic gyrations as it is integrally linked with the fortunes of other sectors, but it has the propensity to reverse job losses quickly. TETA should therefore explore job creation opportunities in the sector, particularly for unskilled and semi-skilled people.

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1.5.3 Employment by Sub-Sector in Transport

The table below provides information on sub-sectors within the transport industry in terms of formal and informal employment.

Table 5: Employment by Sub-Sectors in Transport Industry, 2013

Transport Formal Informal Totals Percent

Railway transport 86 676 1 325 88 001 11%

Other land transport (Road) 289 736 191 882 481 618 58%

Sea and coastal water transport 5 858 0 5 858 1%

Air transport 30 705 149 30 854 4%

Supporting and auxiliary transport activities (travel agencies) 78 239 5 574 83 813 10%

Postal and related courier activities 47 359 1 513 48 871 6%

Telecommunication 87 506 5 179 92 685 11%

Total 626 078 205 622 831 701 100%

Source: Stats SA, Quarterly Labour Force Survey, Quarter 2, 2013. The above figures are rounded off.

According to the table above (STATSSA QLFS 2013, 2nd Quarter):

Railway transport employment comprises 11% of the sector;

Road transport 58%;

Sea transport 1%;

Air transport 4%; and

Supporting and auxiliary activities (Cargo handling, storage and warehousing, other supporting transport activities, travel agency and related activities, and activities of other transport agencies) 27%.

1.5.4 Employment by Province

The table below provides employment figures in the transport sector by province (STATSSA QLFS 2013, 2nd Quarter):

Table 6: Employment in Transport Industry by Province, 2013 Table 7: Employment in Transport Industry by Province, 2013

Province Employees

Western Cape 117 045

Eastern Cape 70 204

Northern Cape 14 663

Free State 34 115

KwaZulu-Natal 190 076

North West 23 423

Gauteng 310 705

Mpumalanga 39 207

Limpopo 32 264

Total 831 701

Source: Stats SA, Quarterly Labour Force Survey, Quarter 2, 2013.

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The table above reveals the following (STATSSA QLFS, 2nd Quarter 2013):

There is a high density of employees in Gauteng, KwaZulu-Natal and Western Cape. Collectively, they comprise 72.3% of total employment in the transport sector;

Although KwaZulu-Natal has a high density of employees, there has been a slight decline from 2012;

It is evident that considerable attention should be given to employers and employers in these high density provinces;

While Northern Cape, Eastern Cape and Free State have lower employment numbers, due to being considered as rural provinces with relatively limited economic activity than the urban provinces, there has been an increase in employment from 2012. Although the increase is gradual, it is beneficial to the provinces and the economy on the whole;

Mpumalanga, Limpopo and North West province have seen a decline in employment from 2012.

It is essential that adequate skills provision exists for provinces with low employment numbers. There is a need for TETA to align skills development interventions to local economic development needs of particular provinces. This requires TETA to analyse and understand the provincial labour markets and economies. Training interventions may vary from province to province based on local needs.

1.5.5 Transport Sector Enterprises by size and province

The table below provides figures on the number of enterprises in the transport sector by size and province.

Table 8: Number of Enterprises in Transport Sector by Size and Province

REGION 0-49 50-149 150+ Grand Total

Eastern Cape 769 20 14 803

Free State 462 15 8 485

Gauteng 5396 205 203 5804

KwaZulu Natal 2578 91 62 2731

Limpopo 13 2 15

Mpumalanga 1032 23 11 1066

North West 333 5 7 345

Northern Cape 175 5 180

Western Cape 2951 83 66 3100

Northern Province 193 6 3 202

Other 67 67

GRAND TOTAL 14747 455 374 15576

Source: TETA WSP 2013

The table above reveals the following (TETA WSP 2013):

In the category 0-49 employees, Gauteng has the largest number of enterprises, followed by Western Cape, KwaZulu Natal and Mpumalanga.

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The same is for the category 50-149 employees. Gauteng has the largest number, followed by KwaZulu Natal and Western Cape. However, in comparison, the number of enterprises in these provinces is much lower.

In total, Gauteng has the largest concentration of transport enterprises, followed by Western Cape and KwaZulu Natal. This is due to the high concentration of business activities and employees in Gauteng.

The other provinces have fewer enterprises due to being considered as rural provinces with relatively limited economic activity.

1.5.6 Transport Sector Enterprises by size and chamber

The table below provides figures on the number of enterprises in the transport sector by size and chamber.

Table 9: Number of Enterprises in the Transport Sector by Size and Chamber

CHAMBER 0-49 50-149 150+ Grand Total

Aerospace 40 16 28 84

Freight forwarding and clearing

79 39 34 152

Freight handling 144 26 46 216

Maritime 66 27 13 106

Rail 18 2 16 36

Road Freight 255 144 105 504

Road Passenger 45 13 27 85

Taxi 66 2 1 69

Unknown 14 1 15

(Blank) 14020 186 103 14309

GRAND TOTAL 14747 455 374 15576

Source: TETA WSP


The road freight chamber has the highest number of enterprises in all three categories. This is due to considerable movement of freight on South African roads.

The transport sector is in the process of planning movement of road freight to rail for purposes of limiting road damage and ensuring safe and quick transport of freight.

The freight handling chamber has the second highest enterprises in the 0-49 category.

Forwarding and clearing, maritime and road passenger and aerospace chambers have a spread of enterprises across all three categories.

The taxi and rail chambers have a very limited number of enterprises.

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1.5.7 Employment by Race, Gender and Disability

The table below provides a breakdown of employment in the transport sector by race group and gender between 2012 and 2013.

Table 10: Employment by Race and Gender, 2012-2013

Population group Gender 2nd Quarter 2012 2nd Quarter 2013 %

change

African/Black Male 482 862 502 770 4.0%

Female 94 289 95 159 0.9%

Total 577 151 597 929 3.5%

Coloured Male 55 714 66 101 15.7%

Female 16 839 26 791 37.1%

Total 72 553 92 892 21.9%

Indian/Asian Male 25 041 26 856 6.8%

Female 6 587 9 129 27.8%

Total 31 628 35 984 12.1%

White Male 72 860 66 312 -9.9%

Female 36 849 38 582 4.5%

Total 109 709 104 895 -4.6%

TOTALS 791 040 831 700 4.9%

Source: Stats SA, Nesstar, QLFS, 2nd Quarter, 2012 & 2013

In terms of racial and gender breakdown in the transport sector, the following can be deduced (STATSSA QLFS 2nd Quarter 2012/2013):

In 2013, the racial composition of the sector was as follows: Africans (71.9%), Coloureds (11.2%), Indians (4.3%) and Whites (12.6%). These percentages are broadly reflective of national demographics;

About 80% of employed in the sector are male compared to 20% females. There is a need to achieve gender equality in the sector. TETA should encourage more females into the sector by encouraging and supporting skills development, particularly in areas where females are lacking in terms of representivity;

Employment for Blacks, Indians and Coloureds actually increased between 2012 and 2013 (2nd quarter), whilst employment for Whites declined;

There was a 37.1% increase in employment for Coloured females, followed 27.8% for Indian/Asian females, 4.5% for Whites females and 0.9% for African females between 2012 and 2013. There was an overall increase in employment for females between 2012 and 2013.

African males made up 60% of the labour force in 2013(2nd quarter), whilst the percentage for African females was 11%. The under-representation of African females should be addressed by TETA through skills development.

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The table below gives a 6 year comparison of gender in the transport sector. It provides information on whether the sector is making progression in redressing gender imbalances.

Table 11: Employment in Transport Industry by Gender, 2008-2013 (000')

Gender 2008 2009 2010 2011 2012 2013

Male 602 569 593 621 621 662

Female 172 156 173 167 162 170

Total 774 757 767 788 783 832

Source: Stats SA, Labour Force Survey, Historical Revision March Series 2001 to 2007; Stats SA, Labour Market Dynamics in SA 2008; Stats SA, QLFS, 2010; Stats SA, QLFS,

4th

Quarter, 2011; Stats SA, QLFS, 1st

Quarter 2012 and Stats SA 2nd

Quarter 2013.The above figures are rounded off

The table reveals the following (refer above for sources):

Females comprised 22% of the labour force in 2008, 21% in 2009, 22.5% in 2010, 19% in 2011, 20.5% in 2012 and 20.4% in 2013.

Males comprised 78% of the labour force in 2008, 79% in 2009, 77.5% in 2010, 81% in 2011, 79% in 2012 and 79.5% in 2013.

In essence, the gender composition of the labour force is static.

There has been very little progress with improving female participation in the sector.

TETA needs to craft interventions to encourage females to enter professions in the sector, particular for African females whom are under-represented.

The table below provides employment information on the transport industry by age and gender for 2013.

The above table reveals the following (STATSSA QLFS 2nd Quarter 2013):

Youth aged between 15 and 34 comprise 47.7% of employees in the sector;

Most employees, 284 620, are in the 25 and 34 years age bracket old;

Given that the majority of the employees are younger than 40 years, it becomes more feasible to invest in education and training;

Table 12: Employment in Transport Industry by Age and Gender

Age Group 15-24 yrs 25-34 yrs 35-44 yrs 45-54 yrs 55-64 yrs Total

Male 48 550 222 767 201 964 121 198 67 561 662 040

Female 13 253 61 853 66 221 21 619 6 715 169 661

Total 61 803 284 620 268 185 142 816 74 276 831 701

Source: Stats SA, Nesstar, QLFS, Quarter 2, 2013

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There is also an opportunity for continuity in the sector;

TETA needs to focus on youth development in the form of coaching, mentoring, succession planning training in order to prepare young people for better position in the sector; and

It is also evident there is an under-representation of females in the sector with only 20.4% comprising females.

The discussion below will focus on the age and gender breakdown for high and low skilled employees in the transport sector.

The table below provides data on the transport industry’s high-skilled workforce by age for 2013:

The above table reveals the following (TETA WSP 2013):

Most high-skilled employees are in the U55 age category and make up 54.7% of the total workforce. Managers make up 65%, Professionals 49.3% and Technicians 49.4%;

The U35 category makes up 33.1% of employees in the high-skilled workforce. Managers make up 22.5%, Professionals 38.7% and Technicians 38.5%;

Given that a relatively large number of employees are U 35, it becomes more feasible to invest in education and training for this age group with a view of creating an opportunity for continuity in the sector.

Further, TETA needs to focus on youth development in the form of coaching, mentoring and succession planning The table below provides data on the transport industry’s low-skilled workforce by age for 2013 (TETA WSP 2013):

Table 13: High-Skilled Workforce by Age

Occupational Class U35 U55 O55 Total

Manager 5079 14647 2819 22 545

Professional 4301 5482 1337 11120

Technicians 12466 15986 3893 32345

Total 21 846 36 115 8049 66010


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Table 14: Low-Skilled Workforce by Age

Occupational Class U35 U55 O55 Total

Clerical 19588 17670 3060 40318

Elementary 38273 27731 7415 73419

Plant 34013 44880 11144 90037

Service 10109 9881 1619 21609

Total 101 983 100 162 23 238 225 383

Source: TETA WSP:2013

Most low-skilled employees are in the U35 age group and make up 45.2% of the sector;

In the U35 group, Clerical makes up 48.6%, Elementary 52.1%, Plant 37.8% and Service 45.2%;

The U55 group which makes up 44.4% of the sector, only had a higher percentage in the Plant occupational class, 50% compared to the 37.8% for the U35;

There is a very small percentage of employees in all 4 categories for the O55. Clerical makes up 7.6%, Elementary 10.1%, Plant 12.4% and Service 7.5%;

Given that a relatively large number of low-skilled employees are U 35, it becomes feasible to invest in education and training so as to create an opportunity for progression amongst this age group.

There is also an opportunity for continuity in the sector.

The table below provides data on the transport industry high-skilled workforce by gender for 2013:

Table 15: High-Skilled Workforce by Gender

Occupational Class

Male Female Disabled Total

Manager 16480 6065 95 22640

Professional 7091 4029 54 11174

Technicians 19896 12449 165 32510

Total 43 467 22 543 314 66324


From the table above (TETA WSP 2013), it is evident that demographic imbalances exist between males and females in the workforce which is

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characterised by male over-representation in the upper echelons of the workforce. It must however be borne in mind that the transport sector by its nature will be dominated by males;

Males make up 72.8% of managers, 63.5% of professionals and 61.2% of technicians;

In contrast, females make up 26.9% of managers, 36% of professionals and 38.3% of technicians and

The disabled group also has representivity in the highly-skilled workforce.

The Table below provides data on the transport industry low-skilled workforce by gender for 2013:

Table 16: Low-Skilled Workforce by Gender Occupational Class Male Female Disabled Total

Clerical 20411 19907 297 40615

Elementary 63494 9925 61 73480

Plant 80557 9480 131 90168

Service 12910 8699 15 21624

Total 177 372 48 011 504 22 5887


As in the high-skilled workforce, demographic imbalances also exist between males and females in the low-skilled workforce, where there is over-representation of males. It must however be borne in mind that the transport sector by its nature will be dominated by males;

Males make up 51% of Clerical, 86.4% of Elementary, 89.3% of Plant and 60% of Service;

In contrast females make up 49% of Clerical, 13.5% of Elementary, 10.5% of Plant and 40% of Service,

There is only a fair gender distribution in the clerical occupation, which by its nature is largely female dominated in many sectors and

Disabled employees make up 1.2 % of the transport sector.

Figure 1: Proportion of Disabled Employees

Disabled, 1.2%

Abled Bodied 98.8%

Transport Sector

Source: TETA Database 2013

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From the figure it is clear that there is a need for TETA to encourage firms to increase the proportion of employment and training for the disabled.

1.5.8 Employment Equity

The figure below provides data on the transport industry high-skilled workforce by race for 2013:

Figure 2: High Skilled Workers by Race

Source: TETA WSP: 2013

After 19 years of democracy, it is evident that insufficient progress has been made in transforming the racial profile of the workforce in the designated sector;

Approximately 53.2% of Managers, 63.1% of Professionals and 60.1% of Technicians are Whites in the sector;

In contrast, 30.1% of Managers, 42.1% of Professionals and 40.1% of technicians are African in the sector;

The above inequalities in the racial composition of the industry signal the urgent need for policy-makers and role-players to do considerably more to redress workforce imbalances.

TETA also needs to play a far more active role in supporting Blacks (Africans, Coloureds and Indians) acquire high level skills to take up positions in the upper band of the occupational structure.

In addition, succession planning, mentorship and coaching should be given top priority by TETA to support Blacks in the industry. The figure below provides data on the transport industry low-skilled workforce by race for 2013:

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Manager Professional Technicians

White

Coloured

Indian

African

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Figure 3: Low Skilled Workforce by Race


The following is evident from the above figure:

Insufficient progress has been made in transforming the racial profile of the low-skilled workforce in the designated sector;

Approximately 57.8% of Clerical, 82.3% of Elementary, 80% Plant and 65.1% of Service positions are occupied by Blacks in the sector;

In contrast, approximately 11.1% of clerical, 2.1% of elementary, 8.2% plant and 10.1% of Service positions are occupied by Whites in the sector;

The above inequalities in the racial composition of the industry signal the urgent need for policy-makers and role-players to do considerably more to redress workforce imbalances.

In addition, succession planning, mentorship and coaching should be given top priority by TETA to support Blacks in the industry.

1.5.9 Terms of Employment

The table below provides an indication of the terms of employment in the transport sector compared to total employment for all sector in the labour market. Table 17: Terms of Employment

Industry Not applicable Limited duration Permanent Unspecified duration

Total

Transport, storage and communication 140 224 60 677 426 749 204 050 831 701

Totals 2 051 707 1 640 592 7 348 432 2 680 193 13 720 924

Source: Stats SA, Quarterly Labour Force Survey, Nesstar, Quarter 2, 2013

The above table suggests the following (STATSSA QLFS 2nd Quarter):

Roughly 51.3% of the transport sector are in permanent employment compared to the national figure of 53.5%;

0%

20%

40%

60%

80%

100%

Clerical Elementary Plant Service

White

Coloured

Indian

African

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About 7.3% of the transport sector are in limited duration (fixed term contracts) compared to 12% for all sectors;

About 24.5% of the transport sector are in unspecified duration (casual employment) compared to 19.5% for all sectors;

Although these figures suggest a strong degree of formalization, there has been an increasing trend towards informalisation and atypical forms of employment in the sector and in this respect, TETA needs to encourage Decent Work for all in the sector. This could be achieved by supporting the Decent Work Programme of the International Labour Organisation.

ALIGNMENT WITH NATIONAL STRATEGIES

The skills development imperatives of the Transport SETA are derived from, and incorporated into, national skills development strategies and plans from national government departments. The strategic framework of TETA addresses these priorities in chapter five of this document.

The following activities contained into national strategies and plans relate directly to the transport sector:

NATIONAL SKILLS ACCORD

Commitment 1:

To expand the level of training using existing facilities

more fully

Commitment 2:

To make internship and placement opportunities

available within workplaces

Commitment 3:

To set guidelines of ratios of trainees: artisans as well as

across the technical vocations, in order to improve the level of

training

IPAP 2

2011/12 will focus on

continuity and implementation of strategies and KAPs identified in IPAP 2 2010/11

Stronger alignment between

IPAP sector strategies and skills

development system required

There must be engagement with DHET to introduce

sector specific programmes derived from

strategies

STRATEGIC INTEGRATED

PROJECTS (SIP)

SIP 2:

Durban, Free State and Gauteng logistics and

industrial corridor

SIP 3:

South Eastern node and corridor development

SIP 4:

Unlocking the economic

opportunities in North West Province

SIP 5:

Saldanah-Northern Cape corridor development

NEW GROWTH PATH

Emphasis on decent work

Skills enhancement

Small enterprise development

Measures to address HIV/AIDs

Expansion of rail transport

Address shortfalls in artisanal and

technical skills

SETA co-finance training for 10% of

the workforce annually

HRDSA

Ensure that skills development

programmes are demand-led

through

Substantive and systematic input

from employers in the determination of skills demands for the country

NSDS III

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DRIVERS OF CHANGE There are numerous forces driving change in the transport sector. This chapter highlights four major factors impacting on the sector and causing it to change in a particular way. Change drivers have direct implications for TETA.

1.7.1 Decent Work

The Department of Economic Development has placed the creation of Decent Work at the centre of economic and social policies. According to the New Growth Path Framework (2010) there is growing consensus that creating decent work, reducing inequality and defeating poverty can only happen through a new growth path founded on a restructuring of the South African economy.

Facts

SA has a very high unemployment rate is around 25%. 4 in 10 adults are employed and 5 people depend on the income of every worker. Only 12.7 million people have jobs, 5 million pay taxes and 13.8 million are on welfare

grants. 2/3s of working people earn less than R1 000 per month. Share of wages dropped from 50% in 1994 to 45% in 2009, whilst profits increased from 40%

to 45%. 40% of national income goes to10% of richest households. 5 million jobs needed by 2020 to halve unemployment from 25% to 15%.

2.9 million man days were lost in strikes in 2009. Trade union membership of employees dropped from 45% in 1994 to 20% in 2009.

Issues Creating Decent Work is at the heart economic policy to fight poverty, inequalities and

rural underdevelopment. Promoting international labour standards, social security, worker rights, training

opportunities, social dialogue and tripartism in the workplace. Protecting vulnerable workers, supporting employment equity, ensuring health and safety

on the job and assisting workers in finding employment and training opportunities.

Skills Development Priorities

Training programmes to promote Decent Work outcomes, particularly in the Taxi

Industry. Awareness campaigns and capacity-building initiatives for social partners. Toolbox for enterprises. Transport Sector Programme for Decent Work aligned to country programme. Monitoring, measuring and evaluation of Decent Work. Strengthening and involving social partners and social dialogue.

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1.7.2. GREENING THE TRANSPORT SECTO

1.7.2 Greening the Transport Sector

Businesses are striving to be more conscious when it comes to the environment. Increased legislation is driving the demand for eco-compliance. Businesses now have to show that they are environmentally friendly in their business processes and in the products they offer.

Facts

SA produces 1% of the world’s emissions, yet its emissions intensity is second to China. South Africa pledged to cut carbon emissions by 34% by 2020. Climate Change management is a ‘key driver’ of business sustainability. Effective governance, management and execution of Corporate Climate Change. The New Growth Path for South Africa targets 300 000 additional direct jobs by 2020 to

green the economy. The advantages of cheap energy – coal – have become a competitive disadvantage. The New Growth Path targets 300 000 additional direct jobs by 2020 to green the

economy

Issues Emerging green economy has created skills needs in response to climate change and the

issue of sustainable resource usage. Sustainable use and management of natural resources is a national priority outlined in

the Medium Term Strategic Framework. Develop green skills and jobs to response to changing market needs. Pro-environmental measures in all sectors of the economy. Stronger programmes, institutions and systems to diffuse new technologies to SMEs and

households. Promoting Decent Work in a sustainable, low carbon world. Involving social partners in greening the labour market.


Promoting a business case for greening the transport sector. Greening of all enterprises and funding of new emerging of jobs. Skills programmes to green existing jobs. Toolkit for greening enterprises. Funding programmes to encourage businesses go green. Code of conduct and benchmarks for environmentally sustainable practices. Learnerships, bursaries and skills programmes for green occupations.

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1.7.3 Small Enterprise Development

The promotion of entrepreneurship and small business remains an important priority of the government of South Africa. The New Growth Path Document (2010) and the Department of Trade & Industry’s Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises (1998) explore ways to ensure that SMMEs progressively increase their contribution growth and performance of the South African economy in critical areas such as job creation, equity and access to markets.

Facts Small businesses have been identified as key in driving South Africa’s economic growth. 32% of small business owners provide between 1 and 10 employment opportunities per small

business. Service-related small businesses are more likely to provide employment opportunities than

other small businesses. 5.6 million small businesses provide an additional estimated 6 million employment

opportunities. 76% of small business owners were unable to name any organisation that advises small

businesses. 94% small business owners have never used any support organisations. SANRAL spent R2.5 billion on SMMEs, of which R1.8 billion went to black-owned businesses.

Issues Improving regulatory environment for ease of doing business. Small enterprise business development. Advocacy and a voice for small business on national platforms. Employer organisations for small business. Decent Work for employees in small businesses. Skills training for small business owners and employees. More effective support measures for small businesses. Integrating small business into formal supply chains. Creating demand for small enterprise products and services.


Fostering entrepreneurship culture. Skills training, learnerships and bursaries for small business employees. Strengthening enterprise networks. Providing necessary support incentives. Improving small enterprise competencies and delivery capacity. Coaching and mentoring of business owners. Providing training in entrepreneurship, skills and management. Improving industrial relations and the labour environment. Facilitating access to appropriate technology

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1.7.4 Strategic Integrated Project (SIP)

Strategic Integrated Project (SIP) is a twenty year planning framework to co-ordinate a myriad of state infrastructure projects in 17 integrated projects to prevent stop-start patterns of development.

Facts New Growth Path (NGP) targets the creation of 20 million jobs by 2020; identifies

structural problems in the economy and points to opportunities in specific sectors and

markets.

The first driver is infrastructure – laying the basis for job creation, economic growth and

inclusivity.

SIP is aligned to skills development and human settlement planning as cross-cutters.

The Transport Sector is a cross-cutter, but there will be a focus on road, rail, ports and

logistics.

All SIP have implications for the Transport Sector.

There is an acute need for large-scale skills training in the taxi industry.

Issues

Transport provides the good opportunities for job creation. There is a need for TETA to work with SIP co-ordinators closely. There is a need to identify skills supply and demand for SIP and determine skills gaps. TETA should scale up its internal operations to focus on SIP. Discretionary projects should “talk” to SIP. Special measures should be taken by TETA to draw youth into SIP. Strategic Plan and SSP should incorporate SIP priorities.


Bigger focus on learnerships and apprenticeships for youth. Focus on high end skills development programmes. Management training and development is vital because of weak implementation by state. TETA should identify SIP projects to participate. There should be a focus on RPL, ESDAs and bursary schemes. Dialogue with SIP partners.

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1.7.5 Southern African Rail Network

A heavy haul network stretching from Botswana through Zimbabwe and into Mozambique and Malawi could prove a game changer in regional logistics and exports for SADC. The proposed 1100km southern African rail network, which has many links to it, will have huge downstream spin-offs for the region.

Facts

The project is to begin in 2012 at an expected cost of $7 billion and will take 10 years.

The main funders are the World Bank, IMF, IFC and mining companies.

Transnet is under fire from the private sector for its operational inefficiencies of its rail

network and bottlenecks at ports

Growth is the mining sector is being stymied by unreliable rail networks.

Mining companies can move 90 million tons of coal through Richards Bay but Transnet

can only support 60 million tons on its rail network.

Issues

This project provides the good opportunities for job creation. The mega rail and port is likely to reduce the reliance on freight and road networks. The project has the potential to inject economic growth in rural regions of SADC. There will be a need for all levels of skills – low, middle and high – for this project. There will be spin-offs for other industries in the economy. TETA needs to position itself for this project.


Better strategies for skill development will assist in developing more creative career

pathways. Increasing use of new technologies is a primary driver of the need for training of all

categories of employees. Management training and development is vital for employers as most enterprises in the

transport sector are micro and small. TETA should encourage employees and enterprises to move up the value chain. Higher order skilling is key to the future of transport.

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1.7.6 HIV/AIDS

The impact of HIV/AIDS remains a core underlying focus area of the majority of government initiatives as it has direct impact on the productivity, morale and skills of the people in the country. It is imperative for the transport sector to assess the impact of HIV/AIDS on the sector in order to determine the skills development needs and initiatives of the sector.

1.8. CONCLUSION

Issues

The diversity of the transport sector must be remembered when planning skills

development initiatives.

Due to the high degree of mobility the focus on HIV/AIDS needs to include not only the direct workforce but also the communities which they come in contact with.

Due to the industry being very male dominated, interventions do not often take into

account the gender component of HIV/AIDS.

HIV positive workers still face high levels of stigma and discrimination at work. Making ARVs available at the workplace or providing time to access it will see increased

attendance at work.


Develop a regional transportation policy framework which would provide the basis on which

workplace programmes and initiatives could be based.

Workplace specific policies need to be put in place.

Develop, implement, monitor and evaluate workplace programmes.

Create a holistic service provision where possible – this includes a wellness focus, behaviour

change, peer education, and prevention strategies.

Facts

South Africa’s population of 50 million has an estimated HIV prevalence rate of 10.6% - which is 5.2 million people who are HIV positive.

The highest prevalence rates among 15-49 year olds in KwaZulu Natal is (25.8%), Mpumalanga (23.1%), Free State (18.5%) North West (17.1%) and Gauteng 15.2%.

The prevalence rates amongst Africans is13.6%, 03% for Whites, 1.7% for Coloureds, and 0.3% for Indians.

The most at risk population has a prevalence rate of African females (20-34 years) 32.7%

and African males (25-49 years) 23.7%.

Risk factors include ‘living in informal settlements, urbanizing areas of rural districts and

transport

corridors’

Risk factors include ‘living in informal settlements, urbanizing areas of rural districts, and

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CONCLUSION From the above chapter the following conclusions can be drawn with direct implications for skills development for TETA: The quality of labour market data for most modes of transport is inadequate. With the exception of Statistics SA and Datamonitor, there are no authoritative data sources for the sector. Without proper data sources, the quality of labour market information is problematic. This exposes TETA to the inevitable risk of over and under investments in skills development. There is a need to improve the state of labour market intelligence in the sector. At least a quarter of employees in the sector are in informal employment. These employees are employed as casual, temporary and fixed-term employment without social benefits or the full protection of the law. There is a growing trend towards informalisation in the sector with negative consequences for labour peace, worker morale and productivity and investments in skills development. There is a need for TETA to actively support the concept of Decent Work and implement a sector programme to improve conditions of employment. Average monthly wages in the sector is relatively low in comparison to other sectors. About 56% of employees in the sector are involved in road transport. TETA should ideally skew interventions proportionately to this sector. HIV/AIDS has impacted heavily on the sector. The level of infections in the road sub-sector is well above the national norm. TETA should become more actively involved in fighting the disease. A large number of transport companies are either exempted from paying skills levies or operate informally. There is a need to find alternative sources of funding to widen participation in the levy grant system. Women are under-represented in the transport sector. There should be an active campaign to reduce gender inequalities and training opportunities for women. The transport sector is particularly sensitive to economic gyrations in the wider economy. Fuel prices also have direct impact of the fortunes of the sector. The economic outlook for the sector between 2010 and 2014 is positive. The sector is expected to grow increasing the demand for skilled labour. Therefore TETA should make training investment in scarce and critical skills to meet the demand-side needs of the sector. The sector contributes 8.2% of GDP and 5.8% of national employment. There are job creation opportunities in the sector ranging from low level to advanced skills. The transport sector requires workers who have the skills to create value through their work. It also requires high levels of training and skills in order to succeed in

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an increasingly competitive global market. TETA should play a more active role in supporting job creation and skills development efforts. In recent years government has made significant infrastructural investments to improve the road, rail, air and sea networks. This necessitates a high skill workforce in the transport sector. TETA is a key player in supporting infrastructural investments through the provisioning of skills development. There is likely to be an increasing awareness to reduce carbon emissions in the sector. Consumer patterns are expected to shift with consumers depending eco-friendly products and sustainable supply chains. Supply chains in the sector will continue to become more efficient through the development of continuous real-time control of the flow of goods. This has direct implications for improving skills development in the sector. Government has produced a number of policy outlines for the sector. TETA should align its activities to the goals in these policies. In the next chapter the supply of skills in the transport sector would be discussed.

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CHAPTER TWO: RESEARCH DESIGN AND METHODOLOGY

2.1 INTRODUCTION

The application of a well-considered research design and methodological approach is necessary to identify and anticipate skills needs in the designated sector. Moreover, a systematic research process ensures the credibility and legitimacy of the Sector Skills Plan. Such a plan can thus be defended based on evidence acquired during the research.

One of the major problems currently in the South African skills development environment is that the identification of scarce skills does not appear to be supported by a factual, evidence-led enquiry. Thus the nature of skills needs and the quantum of skills imbalances in the labour market are often misdiagnosed, misunderstood and mistreated.

The major problem facing users of labour market information in South Africa is the lack of a national labour market information system. There is no occupational modelling system currently in South Africa. It is therefore difficult to make projections about occupational needs. As a result, skills planners and policy-makers are severely restricted when making public investment decisions around skills development.

The first goal of the National Skills Development Strategy lll “is to develop an institutional mechanism for skills planning”. Therefore researchers are compelled to identify skills shortages using other methods such as labour market information analysis, a method advocated by the International Labour Organisation (ILO).

Since no coherent occupational modelling is conducted, online job analysis is used to determine occupational supply and demand trends.

2.2 LABOUR MARKET INTELLIGENCE SYSTEM

The Department of Higher Education and Training (DHET) has commissioned the Human Sciences Research Council (HSRC) to lead a national research consortium supporting it in creating a strategic labour market intelligence system. The objective is to build a culture of collaborative partnership to co-ordinate efforts.

South Africa urgently needs a strong foundation for skills measurement – credible datasets across the post-school system and labour markets, down to sector, occupational and regional levels of analysis. Accurate, complete and compatible information systems are absolutely necessary, but this is not sufficient. There is a strong need for labour market intelligence research that analyses dynamics, capabilities and constraints. The current global state of uncertainty over finance, trade and employment makes a labour market intelligence system even more essential

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2.3 RESEARCH DESIGN

The research design is based on mixed method studies which attempt to bring together methods from different paradigms. In a mixed method study there is an integration, of qualitative with quantitative methods, is also referred to sometimes as multi-strategy research.

The chosen design is intended to supplement one information source with another, or ‘triangulate’ on an issue by using different data sources to identify scarce skills.

The research design to determine skills in demand is as follows:

Figure 4: Research Design to determine Skills in Demand

By adopting a holistic approach, it is envisaged that the various methods would be able to corroborate the research findings and conclusions.

Experts

Workshop

TETA Sector Scarce Skills

List Chapter 5

WSP/ATR

Analysis

Vacancy

Analysis

Key Informants Interview

Literature

Review

Employer / Trade

Unions Skills List

Regional Stakeholder

Workshops

Meet 3 of 6 criteria

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2.4 RESEARCH METHODS

Multiple research methods were employed to update the SSP. These methods include the following:

Figure 5: Methods used to update the SSP

The use of multiple research methods enables triangulation of findings and corroboration of research evidence. Through a process of data analysis from workplace skills plans, existing figures and graphs on the industry profile, skills demand and supply and other industry parameters, the SSP was updated.

To add further value to a substantial quantitative database, qualitative research methods were used. Various focus groups were held in the provinces, where stakeholders were consulted. The drivers of change were discussed with focus group participants. Participants offered various solutions to address the development of skills needs.

Review of existing data and information sources

Literature search of studies in the sector

Analysis of industry market reports

Review of workplace skills plans and annual training reports

Annual Reports of employer associations, trade unions and bargaining councils

Meeting with Board members, SETA Managers and Projects Committee

Interviews with key informants in the sector

Group discussions with stakeholders

Regional workshops with stakeholders

Revision of the Sector Skills Plan

Presentation of SSP to SETA stakeholders

Approval of SSP with Board

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The following research methods are employed to make a determination on occupational demand for skills:

2.4.1 Interviews with Key Informants

Interviews were conducted with key informants in the transport sector. These individuals were assumed to possess deep knowledge, understandings and insights of skills development in the sector.

The interviews were conducted using a semi-structured interview schedule. This kind of interview is partially structured with open-ended questions to elicit information that would not be obtained by closed questions. The interviewer is free to deviate from the questions so long as the issues are covered by the conclusion of the interview.

2.4.2 Expert Workshop

An expert workshop was held with a larger group of key informants1 to validate the findings on scarce skills from the other research methods employed.

A set of criteria was established to determine eligibility of occupations to the Scarce Skills List. Informants rated occupations based on the criteria to systematically identify which occupations are scarce in the sector.

2.4.3 WSP/ATR

The workplace skills plans and annual training reports of submitting companies were analysed to identify scarce and critical skills in the sector. The WSP/ATR represents a significant sample of companies that make up the majority of the sector in terms of employer and employee coverage.

2.4.4 Literature Review

A review of literature was conducted in the sector. Industry publications such as company annual reports, research studies, employer and trade union newsletters, economic reports, sector studies and risk analysis reports were examined to establish evolving trends in the sector.

1 An industry expert refers to an employee working a minimum of 10 years in the transport sector.

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2.4.5 Regional Workshops

Regional workshops were held with stakeholders in the sector. The purpose the workshops were to enable stakeholders at grassroots level to articulate their skills needs in the sector. This ensures that the principles of inclusivity and transparency are applied in the research. The workshops and meetings were held as follows in 2012:

2013 EVENT VENUE ATTENDANTS

30 July Meeting with TETA Skills Planning staff JHB 3

13 August TETA-DHET SSP SSP meeting PTA 8

15 August TETA SSP Workshop Birchwood JHB 47

19 August TETA- SSP – Findings meeting JHB 5

9 September SSP Task Team Meeting JHB 2

2.4.6 Employer Bodies and Trade Unions

Employer bodies and trade unions in the sector were invited to send a list of occupations they deemed scarce in the sector. Since these bodies are at the “coalface” of developments in the sector, their respective inputs are valuable to the research process.

2.4.7 Career Junction Index

Career Junction is a web service through which recruiters and career seekers interact in a secure and completely confidential environment. Over 1 000 of the country’s top recruiters (both agencies and corporate companies) advertise their vacant positions to more than 2.5 million career seekers on Career Junction and make use of the variety of services that are offered over and above the normal job board service (CareerJunction Index, 2013, p 1).

The data is captured online by Career Seekers as well as employers and recruiters which allow us to extract high quality, relevant, accurate data which provides a detailed view of the labour market. It is the only data of its kind available in the South African market.

The set up for the transport sector labour market analysis report requires the following steps:

Job cluster definition; Initial query set-up for all data extractions; Restoration of historical databases;

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Data extraction & clustering; Data capturing & formatting; Data analysis; and Accuracy analysis & quality assurance.

The analysis covers the following aspects:

Labour Demand – job adverts posted on the CareerJunction website per

region, employment level, job type (permanent, temporary or contract); Job Applications – per region; and Supply – potential candidates who match the skill set region, employment

level, job type (permanent, temporary or contract).

The Career Junction Index (CJI) is the first index of its kind that directly monitors the online labour market in South Africa by examining supply and demand trends across all industries.

2.5 CRITERIA FOR DETERMINING SCARCE SKILLS

The objective of this chapter is to develop a methodology or tool that can be used

to form an assessment of skills in demand.

The methodology developed in this plan is intended to be highly transparent, open

to replication and simple to calculate. Furthermore, the methodology is designed

in such a way that enables new information (through new and better data) to be

incorporated without the need to redesign the process.

By establishing a user-friendly framework for identification and anticipation of

skills needs, it is envisaged that all constituents right down to micro-enterprises

can participate in the research.

The methodology developed is set out as follows:

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Figure 6: Methodology used for Assessment of Skills in Demand

All occupations considered for the Scarce Skills List are evaluated by

stakeholders according to 6 criteria as shown above.

For an occupation to be eligible for inclusion on the Scarce Skills List at

least 3 out of the 6 criteria should be met.

In addition, the occupation should be identifed as a scarce skill in the

Workplace Skills Plan/Annual Training Report; online vacancy analysis and

either the interviews or experts workshop to make the final Scarce Skills

List.

The above point will also be used to establish a Critical Skills List with the

WSP/ATR becoming the primary source of evidence.

A draft list will then be produced based on the above criteria for

consideration by the SSP Task team of the SETA.

A final list will be developed with supporting evidence.

Entry to the occupation requires a long lead

time of formal education and training – 3 years

Skills which people acquire are being

deployed for the uses intended

Shortage of skills causes a significant cost to the company

Hard-to-fill vacancies – more than 3 months

to find suitable candidate

There is plausible evidence to identify an occupation as a scarce

skills

Recommendation from a professional body,

trade union or employer body in the sector

W&R SETA Scarce

Skills List

Meet at least 3 out of 6 criteria for Scarce Skills List

TETA Scarce Skills List

2013

Identified as scarce skill in interviews

or experts workshop

Identified as scarce skill in WSP/ATR

Online vacancy analysis

1

2

3

4

5

6

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2.6 CONCLUSION

The purpose of this chapter is to conceptualise and implement a research method for the identification and anticipation of scarce and critical skills in the sector.

One of the major problems currently in the South African skills

development environment is that the identification of scarce skills does not appear to be supported by a factual, evidence-led enquiry. Thus the nature of skills needs and the quantum skills imbalances in the labour market are often misdiagnosed, misunderstood and mistreated.

The Department of Higher Education and Training (DHET) has

commissioned the Human Sciences Research Council (HSRC) to lead a national research consortium supporting it in creating a strategic labour market intelligence system. The objective is to build a culture of collaborative partnership to co-ordinate efforts.

Multiple research methods were employed to update the SSP. These include: interviews, workshops, literature review, usage of administrative data, online vacancies, professional lists and WSP/ATR Analysis.

In this way, majority coverage of the sector was achieved in terms of employment coverage and annual financial turnover.

The method employed to devise a Scarce Skills List involved the following steps:

o Identifying an occupation for inclusion; o Rating the occupation in terms of 6 criteria to establish eligibility; o Determining whether the occupation has been identified by online

vacancy sources, WSP/ATR analysis and interview/ workshops as, indeed, scarce or in demand;

o Subjecting the eligible occupation to an expert’s analysis discussion; and

o Making a final determination.

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CHAPTER THREE: SUPPLY OF SKILLS

This chapter highlights supply of skills in the sector. It analyses Workplace Skills Plans and Annual Training Reports to determine supply of skills.

3.1 ANALYSING LABOUR SUPPLY-DEMAND

CareersJunction, an online career website, conducts supply-demand analysis on a quarterly. It is the only organisation that does so. It determines supply-demand according to occupational categories instead of specific occupations, which is what is ideally needed.

CareersJunction includes job vacancies advertised in the Sunday Times Careers section. This supplement is a nation-wide advertising medium for jobs and is the most widely used in South Africa.

3.1.1 CareerJunction Index

CareerJunction is a web service through which Recruiters and Career Seekers interact in a secure and completely confidential environment. Over 1,000 companies advertise their jobs on CareerJunction (CareerJunction Index, 2013, p 1).

The CareerJunction Index (CJI) has been established due to a lack of updated and accurate online labour market information in South Africa. The CJI is the first index of its kind that directly monitors the online labour market in South Africa by examining supply and demand trends across all industries.

The CJI data is sourced from the CareerJunction website, where over 1,000 of the country’s top recruiters (both agencies and corporate companies) advertise their vacant positions to more than 1 million career seekers. With the Internet becoming an increasingly popular method of finding a job and sourcing candidates for positions, the CareerJunction Index provides HR professionals and recruitment agencies with valuable insights into online labour trends in South Africa. In addition, it provides a basis for recruitment agencies and businesses to focus on specific and relevant occupations when developing their retention strategies (CareerJunction Index, 2013, p 1).

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3.2 SUPPLY OF SKILLS

This section deals with the supply of skills in the transport sector. It gives an indication of supply-side dynamics in the sector.

3.2.1 Employment by Occupation and Industry

The table below provides information on the stock of skills in the sector by occupational level per sub-sector.

Table 18: Employment by Occupation and Industry

Source: Stats SA, Quarterly Labour Force Survey, Nesstar, Quarter 2, 2013

The table above reveals the following (STATSSA QLFS 2nd Quarter 2013):

The composition in percentages of sub-sectors are as follows: Railway (10.6%); Road (57.9%); Sea (0.70%); Air (3.7%); support and auxiliary (10.1%); Postal and courier (5.9%); Telecommunications (11.1%);

TETA should align skills development support in terms of the size of sub-sectors;

The occupational composition of the sector is as follows: Managers (16%); Professionals (4%); Technicians (6%); Clerks (15.6%); Sales and Service (2.8%); Crafts and Trades (3.9%); Plant and Machinery (38.8%); Elementary (13.1%);

High skills occupations (Managers/Professionals/ Technicians) constitute 26%; intermediate skills (Clerks/Sales and Service/Crafts and Trades) make up

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22.3% and low level skills; (Plant and Machinery/Elementary) comprise 51.9%; and

A high percentage of people are in the low skills category (51.9%);

There is an opportunity to move people with low level skills into the intermediate category; and

Likewise there are opportunities for those with intermediate skills to move into the high skills category with meaningful education and training interventions.

3.2.2 Education Levels

The table below gives information on education levels in the transport industry:

Table 19: Education Levels in Transport Industry

No schooling 6 312 NTC 3 4 277

Grade R 1 584 NTC 4 2 829

Grade 1 361 NTC 5 2 628

Grade 2 7 398 NTC 6 5 638

Grade 3 5 414 Certificate < Grade 12 1 789

Grade 4 10 938 Diploma < Grade 12 4 867

Grade 5 9 368 Certificate & Grade 12 15 151

Grade 6 12 593 Diploma & Grade 12 54 465

Grade 7 27 060 Higher Diploma 10 869

Grade 8 40 613

Post Higher Dip (Masters; Doctoral Diploma) 4 091

Grade 9 38 950 Bachelors Degree 33 231

Grade 10 94 764 Bachelors Degree & Diploma 4 403

Grade 11 91 350 Honours Degree 4 780

Grade 12 320 481 Higher Degree (M, Phd) 3 023

NTC 1 3 342 Other 286

NTC 2 0 Do not know 8 847

Total 831 701

Source: Stats SA Quarterly Labour Force Survey, Nesstar, Quarter 2, 2013

The table above reveals the following (STATSSA QLFS 2nd Quarter 2013):

13.8% of people in the sector have a tertiary education; 38.5% have a secondary education; 31.9% have not completed secondary education; 0.1% have not completed primary education and 0.7% with no schooling;

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It is necessary for the sector to improve the proportion of people with tertiary education from 13.8% to potentially about 25% over the next few years;

It is strongly suggested that TETA should invest in RPL to improve education levels in the sector;

There is potential to move 32% and 0.1% of people who have not completed secondary and primary schooling respectively up a band based on work experience where appropriate.

TETA should focus on FET qualifications since a large number of workers (346 705 - below Grade 12 and 320 481 – Grade 12) need to access education and training in this band. This effectively makes up 80.2% of the workforce;

Sectors such as sea, air, support and auxiliary and postal and courier require people with a secondary education;

Land transport has a high proportion of people with primary schooling or less. There is a need for upskilling this sub-sector and creating opportunities for unskilled workers to enter formal employment.

Transportation is seldom a career of choice amongst students. The sector is not

characterised by high levels of education.

Figure 7: Education Levels in Transport Sector

It can be seen from the figure above that 41.7% of people employed in the

transport sector have a below-grade 12 qualification. This has significant

implications for skills development in the sector.

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

Stats SA QLFS Q2 2013

Transport Education Levels

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3.3 WSP 2013/2014 and ATR 2012/2013

The Workplace Skills Plan/ Annual Training Report 2012/2013 offer valuable information on planned training and training already undertaken. The composite WSP/ATR findings serve as a sample for training in the transport sector since only a limited number of organisations make mandatory grant applications to the TETA.

3.3.1 Race Profile by Occupational Levels

The figure below provides information on the ethnic profile of the sector by occupational class for the 2012/2013 period.

Figure 8: Occupation-Race Transport Sector

The above figure reveals the following (STATSSA QLFS 2nd Quarter 2013):

Africans are in the majority at elementary, operator, craft & related trade

works, clerical and service levels which range from low level to

intermediate level occupations;

In 2011, Whites took up 50.9% of managerial posts compared with Africans

with 11.2%;

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Stats SA QLFS Q2 2013

African/Black

Coloured

Indian/Asian

White

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In 2012, Blacks took up 47.9% of managerial posts compared with Whites

with 33.6%.

In 2013, Blacks took up 60.3% and whites 26.3%. This progress is positive

as it indicates progress into an advanced level occupation;

A characteristic feature of the SA labour market – Whites mostly dominate the upper end of the occupational spectrum, whilst Blacks, Indians and Coloureds are located at intermediate and lower levels;

In 2012, 47% of Whites are professionals and 43.5% are technicians, whilst the figures for Africans are 46.7% and 33% respectively;

In 2013, 44.1% of Blacks are professionals and 47.7% are technicians, while the figures for Whites are 35.5% and 27.7%respectively;

88.7% of Africans are operators and 79.2% are elementary workers. The corresponding figures for Whites are 3.2% and 0.4%;

There is clearly a need for TETA to become more active in supporting

Blacks in most of the occupations, through skills development so that they

could occupy more senior and higher level occupations in transport; and

Affirmative Action should be a very high priority of the skills agenda for the

transport industry.

3.3.2 Training by Race, Age and Region

The figure below provides information on the number of workers in the transport industry that was actually trained for the 2012/2013 period.

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Figure 9: Training by Race



There are 831 701 workers in the transport industry of which 81 648 received training.

In terms of race, 52 269 Africans, 9543 Coloureds, 5150 Indians and 14 686 Whites were trained.

As evident most training was received by the Africans. This is significant considering they are in the majority and were previously disadvantaged.

52269

9543

14686

5150

0

10000

20000

30000

40000

50000

60000

African Coloured White Indian

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Figure 10: Completed Training by Age



A total of 70 000 workers spanning a range from under 35 years to over 55 years received training.

Most training was in the under 55 age group (38 000), followed by the under 35 group (28 000) and the over 55 group (4000).

Minimal training was done in the over 55 age group as this group was near retirement, hence major investment in this group would not be of long term benefit to the transport industry.

While the under 55 age group received most of the training, the under 35 age group should have received more as they have longer years of service to offer.

Table 20: Training according to Occupation Class for the Employed and Unemployed

Number of Actual Beneficiaries Employed Unemployed

Clerical support workers 13697 572

Elementary occupations 11460 594

Managers 9237 1

Plant and machine operators and assemblers 36374 1037

Professionals 4087 51

0

5000

10000

15000

20000

25000

30000

35000

40000

U35 U55 O55

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Service and sales workers 8587 749

Skilled agricultural, forestry, fishery, craft and related trades workers

6579 1082

Technicians and associate professionals 12513 502

Grand total 102534 4588

Source: TETA ATR: 2013

From the above table, the following is evident (TETA WSP 2013):

Most of the training was allocated to employed workers, 96.7% whilst 4.3% was allocated to the unemployed;

Training for the employed was largely in the following occupational categories, plant, clerical, technician, and elementary; and

Training of the employed also indicates that considerable skills development is taking place in the work environment.

3.3.3 Planned Training Figure 11: Planned Training by Province and Race


In terms of planned training by region, the following is revealed (TETA WSP 2013):

Planned training is skewed heavily in favour of Gauteng. This is understandable because the region is the heart of the SA economy comprising the most numbers of employers and employees;

0

10000

20000

30000

40000

50000

60000

70000

80000

Sum of White

Sum of Indian

Sum of Coloured

Sum of African

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Western Cape and KwaZulu also have increased levels of training due to the high number of organisations in these provinces;

However, the above figure also implies the need for TETA to pay attention to the other provinces;

Apart from the Northern Cape, most of the training in all provinces goes to Blacks;

This represents a concerted effort by stakeholders in the transport industry to address past employment inequalities through increased training opportunities;

TETA should continue to take leadership in becoming an agent of national transformation for the industry.

Figure 12: Planned Training by Occupation and Race


In terms of planned training by occupation and race, the following is revealed (TETA WSP 2013):

Apart from training for technicians and associate professionals, Africans are allocated the highest percentage of training across all the other occupations, a positive stride on the part of stakeholders to get correct the inequalities of the past;

Whites have the highest percentage of training for technicians and associate professionals, 45.8% compared to 35.3% for Africans;

Although there are training needs in a number of specialisations, the table above indicates the firms ranking according to their needs;

The need for training freight operators is the highest at 13863. As many as 331 firms have ranked freight drivers as their number one need; and

05000

10000150002000025000300003500040000

White

Indian

Coloured

African

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In many instances, although the number of firms requiring training for certain specialisations is low, the actual number per firm is very high such as: o Passenger coach driver: 53 firms and 6091 trainees; o Sheet metal production/Process worker: 38 firms and 5498 trainees; o Minibus Drivers: 20 firms and 3974 trainees; o Aircraft Loaders: 10 firms and 1796 trainees; and o Airplane Captain: 10 firms and 1435 trainees.

3.4 FET and HET Partnerships

The SETA is committed to working with FET and HET institutions to roll out skills training country-wide.

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TETA is committed to forging partnerships with FET Colleges and Universities to upskill the transport sector. We have rolled out a number of projects with FET Colleges country wide ranging from training of assessors to the development of

quality management systems. The FET Colleges have the advantage of providing training in rural areas at an affordable cost. Their occupationally driven curricula fit in well with developing semi-skilled and unskilled workers in the sector.

OFO

Specialisation

Firm

s

Re

po

rtin

g

Nu

mb

er

to

be

Tra

ine

d

Ran

kin

g

733201 Freight Operator 331 13863 1

733201 Lorry Driver 280 8643 2

733103 Passenger Coach Driver 53 6091 3

411101 Administration Clerk / Officer 562 5983 4

718905 Sheet Metal Production / Process Worker 38 5498 5

733101 Minibus Driver 20 3974 6

811201 Cleaner (Non-domestic) 162 3667 7

441501 Documentation Clerk / Officer 46 3355 8

833301 Freight Loader 175 3179 9

734402 Forklift Operator 290 3116 10

733204 Petrol Tanker Driver 52 2894 11

334102 Office Coordinator 303 2795 12

432102 Dispatch Clerk / Officer / Operator / Assistant / Worker 273 2714 13

833301 Checker and Loader Transport Vehicle 146 2453 14

862202 Handy Person 113 2398 15

121901 Business Operations Manager 516 2130 16

541401 Security Guard 103 2114 17

732101 Van Driver 111 2061 18

511101 Cabin Steward / Attendant (Aircraft) 8 1856 19

511101 Airport Attendants 16 1834 20

833304 Aircraft Loader 10 1796 21

732101 Driver-messenger 234 1656 22

422206 Call or Contact Centre Agent 157 1656 23

833302 Furniture Removalist hand 105 1594 24

734301 Crane Driver 46 1589 25

335402 Export Agent / Clerk 140 1503 26

315303 Airline Captain 10 1435 27

312201 Production Plant Supervisor 103 1410 28

431101 Accounting Clerk 277 1377 29

733101 School Bus Driver 27 1371 30

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The University of Western Cape is a strategic research partner for the SETA. Its objective is to provide credible research for sector skills planning and build research capacity within the organisation. The universities of Cape Town and KwaZulu Natal are Centres of Excellence for the transport sector. These institutions are funded by the Department of Transport with the primary objective of increasing the supply of engineering skills in the sector. The following partnerships have been established:

Table 21: Companies indicating Employees in specific Occupations to be trained

PARTNERSHIPS WITH FET & HET INSTITUTIONS

Province College Deliverables

KZN

Gauteng

Limpopo

Free State

Western Cape

Umfolozi FET, eThekwini

Victory FET, Ekhuruleni FET

Lephalale FET, Capricon FET

Motheo FET, Goldfield FET

College of Cape Town, False Bay, Northlink

ETQA RELATIONSHIPS

Training for assessors, moderator facilitators in line with ETD unit standards

Mpumalanga

Northern Cape

Western Cape

Mpumalanga

Northern Cape

Gert Sibande FET

Northern Cape Urban FET

College of Cape town, False Bay, Northlink

Ehlanzeni FET

Northern Cape Rural FET

ETQA RELATIONSHIPS

TETA to provide QMS toolkit for programme approval

Mpumalanga

Gauteng

Northern Cape

Western Cape

Eastern Cape

Gert Sibande FET, Ehlanzeni FET


Northern Cape Urban FET

College of Cape town, False Bay, Northlink

Ingwe FET

ETQA RELATIONSHIPS

Development & delivery of the learning

materials within TETA mandate

North West

Gauteng

Eastern Cape

Taletso College

Ekhuruleni FET

Ingwe FET

Assist 30 learners per FET to obtain driver licenses

North West

Gauteng

Eastern Cape

Western Cape

North West

Orbit FET


Ikhala FET, Ingwe FET

College of Cape Town, False Bay, Northlink

Taletso College

ETQA RELATIONSHIPS

Support & moderate the assessment in line

with SAQA criteria to meet learner

endorsements on the NLRD

Western Cape

KZN

University of Cape Town

University of Western Cape

University of KZN

University of Western Cape

CoE RELATIONSHIPS

Centres of Excellence (funded by Dept of Transport)

Research Partner

Centres of Excellence (funded by Dept of Transport)

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3.5 Quality Council for Trade & Occupations [QCTO]

The SETA has also established a working relationship with the Quality Council for Trades and Occupations (QCTO) and is actively working with the QCTO to register occupationally directed qualifications for the sector.

The following deliverables were outlined:

Accredit providers for the qualifications or part qualifications in terms of QCTO criteria;

Monitor provision by providers of learning programmes leading to qualifications;

Evaluate learner assessment and the facilitation of moderation of learner assessment by providers;

Register assessors to undertake assessment for specified qualifications in terms of OCTO criteria;

Certify qualified learners in accordance with the policy determined by Minister in terms of section 26F of the SDA;

Maintain a comprehensive learner information management system; and

Upload learner data to the NLRD according to NLRD specifications.

A research partnership has been established with the University of Western Cape for the development of the Sector Skills Plan.

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CHAPTER FOUR: DEMAND FOR SKILLS

This section gives an indication of the demand for skills in the sector. It gives an

indication of supply-side dynamics in the sector.

4.1 SKILLS DEMAND

Below is a visual illustration of the current online labour market situation, taking into account the amount of active career seekers and the amount of advertised jobs on the Career Junction website (CareerJunction Index 2013). Please note that this is not an indication of how many career seekers have applied to positions, but rather the number of potential career seekers who have been active on the Career Junction website in the previous 6 months. The diagrams below indicate the number of work-seekers who have applied for jobs per advert on the CareersJunction website. It gives an indication of skills demand.

Finance 10.18 Petrochemical 11.76

Building & Construction 10.64 Information Technology 13.65

Sales 10.81 Motor 15.65

FMCG, Retail & Wholesale 10.85 Telecommunication 17.43

Human Resources & Recruitment 11.10 Hospitality & Restaurant 18.17

Travel & Tourism 11.35 Business & Management 18.25

Medical 11.61

CJI Executive Summary Report, June 2013

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Media 20.43 Manufacturing, Production & Trades 26.99

Legal 23.54 Transport & Aviation 27.40

Distribution, Warehousing & Freight 25.35 Engineering 28.88

Agriculture 26.77


Safety, Security & Defence 30.55 Beauty 57.45

Government & Local Government

34.08 Arts & Entertainment 75.28

Science & Technology 36.02 Education 97.63

Maritime 38.83 Social & Community 101.65

Marketing 39.24 Sport & Fitness 117.84

Property 39.37 Admin, Office & Support 118.66

Design 42.70 Botanical 166.17

Mining 55.41


The analysis of online labour supply and demand provides the positioning of each industry sector, based on the average amount of potential career seekers available per job advert. Integrating the number of job adverts and the number of potential career seekers per job advert for each industry sector, reflects the online labour supply versus demand per industry sector (CareerJunction Index 2013).

Recruiters currently face difficult to moderate recruitment conditions across most industries in the South African online labour market. A steady decrease of active career seekers as well as an increase in labour demand is further aggravating recruitment conditions and placement is becoming challenging across more industries. Recruiters currently face moderate recruitment conditions in Transport & Aviation, Engineering and Distribution, Warehousing and Freight sectors. The supply pool of talent within these sectors is between 10 and 20 potential career seekers per job vacancy.

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Retaining valuable staff is an advisable strategy for employers who seek talent in these sectors, especially in regions where recruitment activity is particularly high, for example Gauteng, the Western Cape and KwaZulu-Natal.

The above table indicates the difficulty of recruiting labour by economic sector. It is evident from the table that to recruit in the transport sector is moderate. There are roughly between 10 and 20 potential career seekers per job advert. The potential career seekers per job advert in the transport and aviation sector is about 27.40. This is high (CareerJunction Index 2013).

4.2 INDUSTRIES DISPLAYING MAJOR DEMAND

The figure below indicates industries in terms of major demand (jobs being advertised within specific industry sectors).

Figure 13: Industries in terms of major demands

Source: CJI Executive Summary Report, June 2013

An overview of vacancy levels across various industries provides a good indication of where the majority of employment takes place. The Finance; IT; Engineering; FMCG, Retail & Wholesale; and Manufacturing, Production and Trades industries, amongst others listed are most sought after (CareerJunction Index 2013).

4.3 INDUSTRY TRENDS

The table below illustrates supply and demand trends experienced by all industry sectors over a 6 month period, where the first 3 months’ data are compared to the next 3 months’ data.

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Table 22: Supply and demand trends in the Industry

Source: CJI Executive Summary Report, June 2013

A six months analysis of the online labour market in South Africa reveals an overall decrease in online labour supply. Demand for labour has increased during this period. As a result, recruitment conditions have weakened across most industries. Recruiters currently face easy recruitment conditions in Maritime, Distribution, Warehousing & Freight and Transport and Aviation sectors. The supply pool of

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talent is between 0 and 5 potential career seekers per job vacancy within these sectors.

In Transport and Aviation the supply of labour is 3% and demand is 13%. There are 27.40 career seekers per job advert. The figures for Maritime are 2% for labour supply, 71% for labour demand and 38.83 career seekers per job advert (CareerJunction, 2013).

4.4 DEMAND FOR SPECIFIC OCCUPATIONAL FIELDS

The following occupational fields have been analysed by CareerJunction to obtain information on supply and demand dynamics.

Table 23: Recruitment conditions in the Transport Industry

Recruitment Conditions for Scarce Skills on Transport Industry List

Occupational Fields Career seekers per Advert

Comment

Client Services 7.02 Difficult

Sales 12.25 Moderate

General Management 11.40 Moderate

Procurement, Supply Chain & Logistics 14.70 Moderate

Operations (Control & Planning) 16.53 Moderate

Financial Management 6.68 Difficult

Electrical & Electronic Engineering 10.03 Moderate

Mechanical Engineering 22.25 Easy

Automotive Engineering 302.79 Very Easy

Training & Development 53.26 Very Easy

Artisanship 10.47 Moderate

Trades & Commerce 18.76 Moderate

Fitting & Machining 22.25 Easy

Metallurgy 28.33 Easy

Quality Control & Assurance 36.56 Very Easy

Draughtsmanship 27.50 Easy

Fabrication & Production 25.60 Easy

Source: CareerJunction, Job Report, 2nd Quarter, 2012

There are various occupational fields found within the transport industry. When examining these, it is advantageous to analyse the levels of demand in order to distinguish which skills are most required.

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4.5 RPL AND WIL

Recent years have seen an increased demand for a skilled technologically advanced labour force in both the private and public sub-sectors. Success in skills development initiatives in each of the transport sub-sectors depends substantially on the involvement of the stakeholders some of whom have realised the importance of Recognition or Prior Learning and Work-Integrated Learning (WIL).

TETA is currently developing RPL systems to:

Strengthen the implementation of RPL and WIL in the sector; Ensure all routes of learning allow for RPL and WIL; RPL and WIL policies, processes and procedures that meet the requirements of

relevant ETQA bodies; RPL and WIL provision in all learning programmes; Number of learners granted RPL for full qualifications given access to higher learning

via RPL route; Development and implementation of good practice (models, procedures and

guidelines) for RPL and WIL consistent with their National Standards and Guidelines in the context of lifelong learning;

All new occupational learning qualifications should contain processes to facilitate RPL and WIL; and

Ensure utilisation of RPL among training providers in the sector.

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CHAPTER FIVE: SCARCE AND CRITICAL SKILLS

Chapter Five focuses on scarce and critical skills. Scarce skills are actually occupations in demand while critical skills refer to skills gap within occupations.

In order to determine the scarce skills in the transport sector, TETA administrated a survey to all member companies on the SETA database to establish which occupations are in high demand.

In addition, interviews were conducted with key informants in the sector to corroborate the findings of the skills survey.

5.1 SCARCE SKILLS

The Scarce Skills List 2012/2013 is drawn from the skills survey, interviews, workplace skills plan/ annual training reports, careers guide, literature review and workshops with stakeholders in the designated sector. The following tables catalogue the scarce skills as per the 8 chambers in the transport sector.

The following scarce skills derived from the WSP/ATR, key informants and experts workshops have been classified as follows:

Absolutely Scarce Takes longer than 6 months to find a suitable candidate

Relatively Scarce Takes between 3 and 6 months to find a suitable candidate

Somewhat Scarce Takes 1 to 3 months to find a suitable candidate

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1. AEROSPACE

NO UNIT GROUP OFO CODE OCCUPATION/ SPECIALISATION NQF

1 N/C Accident Investigators 5

2 Mechanical Engineers 214403 Aeronautical Engineers 7

214401 Mechanical Engineer 7

3 N/C Air Traffic Assistant trainer 5

4 Air Traffic Controllers 315401 Air Traffic Controller 6

5 Electronics Mechanics and Servicers

672101 Avionics Technician 5

672101 Aircraft Electronician

672105 Aircraft Instrument Mechanic

672102 Aircraft Radartrician

6 Aircraft Engine Mechanics and Repairers

653202 Aircraft Composite Structures Worker 5

653201 Aircraft Engine Fitter 5

653201 Aircraft Mechanic

653203 Aircraft Trimmer

7 Electrical Mechanics and Fitters 671208 Aircraft Electrician 5

8 N/C

Aircraft Performance analysis/ weight& balance analysis

5

9 Welders and Flame Cutters 651202 Aircraft Welder 5

10 Spray Painters and Varnishers 643202 Aircraft Spray Painter

11 N/C Airport Maintenance Electricians 5

12 N/C CAA Inspectors 5

13 Travel Attendants and Travel Stewards 511101 ATPL Pilots

7

14 Electronics Engineers 215201 Electronic engineer 7

15 Mechanical Engineering Technicians

311503 Engineering Technician ATNS

6

16 Industrial and Production Engineers 214101 Industrial Engineer 7

17 Transport Clerks 432301 Load Controller 5

18 N/C Aircraft Tow Tractor Driver 4

19 Meteorologists 211210

Meteorologist (research, climate & Casting)

7

20 N/C Air quality scientist 7

21 Mining and Metallurgical Technicians 311702

Non Destructive Testing Technician

5

22 N/C Passenger Handling 4

23 N/C Aircraft Loading Supervisors 5

24 N/C Flight Controller 6

25 Sheet Metal Workers 651301 Aircraft Sheet Metal Structure Worker 5

26 N/C Ramp Handling 4

27 Software Developers 251201 Aviation Software Engineer 7

28 Metal Working Machine Tool Setters and Operators

652301

Turner Machinist

6

29 N/C Airport Manager 6

30 N/C Baggage Handling Manager 5

31 N/C Airports Commercial Manager 6

32 N/C Airport Planning 6

33 N/C Aviation Security Management 5

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1. ROAD FREIGHT

NO UNIT GROUP OFO CODE OCCUPATION /SPECIALISATION

NQF LEVEL

1 Motorcycle Drivers 732101 Delivery Drivers – Medium & Heavy drivers, Heavy duty drivers, Abnormal load

4

2 Heavy Truck and Lorry Drivers 733201 Truck Driver 4

733205 Tow Truck Driver, (medium & heavy)

4

733204 Tanker Driver 4

733203 Furniture Removalist ( heavy duty)

4

N/C Driving Instructors, (heavy duty)

4

3 Car, Taxi and Van Drivers 732203 Emergency Vehicle Drivers 4

4 Agricultural and Industrial Machinery Mechanics and Repairers

653306 Diesel & Petrol Mechanic

4

5 Motor Vehicle Mechanics and Repairers

653101 Motor Mechanic 4

Vehicle Service Technicians 4

6 Electrical Mechanics and Fitters

671208 Auto Electrician 4

671208 Autotronics Technician 4

7 Driving Instructor 516501 Driving Instructor Trainer 5

8 Policy Administration Professionals

242208 Risk manager/Officer 5

9 Police Officers 541201 Traffic Policing 5

10 Sales and Marketing Managers 122101 Marketing & Sales manager 6

11 Supply, Distribution and Related Managers

132401 Supply Chain Manager 6

12 N/C Vehicle tracking operator

13 Personnel and Careers Professionals

242304 Industrial relations officer 6

14 Data Entry Clerks 413201 Data Capturer 5

15 Employment Agents and Contractors

333301 Recruitment Officer 6

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2. FORWARDING AND CLEARING

NO UNIT GROUP OFO CODE OCCUPATION /SPECIALISATION NQF

1 Business Services and Administration Managers not Elsewhere Classified

121901 General Manager 6

2 Administration Professionals 121905 Project Manager 7

3 Administration Professionals 121201 Human Resource Manager 7

4 Administration Professionals 121202 Business Training Manager/Skills Development Facilitator

6

5 Administration Professionals 121206 Health and Safety 6

6 Finance Managers 121101 Finance Manager 7


132402 Logistics Manager 6


132403 Road Transport Manager 6

9 Sales and Marketing Managers 122105 Customer Service Manager 6


242203 Company Secretary 7

11 Town and Traffic Planners 216402 Transport Analyst 7

12 Management and Organization Analysts

242101 Business Analyst 7


242207 Compliance Officer 5


121908 Quality Systems Manager IT/Manager

7


242304 International Relations Manager/Officer

6


121902 Corporate Service Manager 6

17 Freight Handlers 833301 Freight Handlers 5


242304 Industrial Relations Officer 6

19 Industrial and Production Engineers

214102 Industrial Engineering Technologist (Process Analyst)

7

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3. RAIL

NO UNIT GROUP OFO CODE OCCUPATION/ SPECIALISATION

NQF LEVEL

1 Locomotive Engine Drivers 731101 Train driver: Railway Engine Driver Electric and diesel Electric Train Driver Fireperson Locomotive Driver Locomotive Observer Mine and Quarry Engine Driver Rail Car Driver

6

2 Railway Brake, Signal and Switch Operators

731202 Train control officer Railways Yard Foreman

4


731201 Railway signal operator: Railway Shunter Railway Switching and Signalling Operator Railway Traffic Assistant / Operator Railway Yard Assistant

4

4 Earthmoving and Related Plant Operators

734212 Track Masters

4

5 Building Construction Labourers 831307 Track Inspectors 4

6 N/C Perway Technicians

7 Elementary Workers not Elsewhere Classified

862920 Railways assistant: Railway Porter/guard Railway Surface man Railway Washout man Railway Traffic foreman Railway Yard master

4

8 Civil engineers 214201 Civil engineers (rail design; rail alignment)

8

9 Electrical engineers 215101 Electrical engineers (rail design; rail alignment)

8

10 Electronics engineers 215201 Electronics engineer (railway signalling; testing & commissioning)

8


653304 Diesel Fitter 6

653306 Diesel mechanic 4

12 N/C Technical Worker (Permanent Way)

4

13

Welders & flame cutters

651201 Pressure Welder 4

651202 Welder 4

651203 Fitter-welder 4

651204 Gas Cutter 4


653303 Maintenance fitters

4

15 Building and Related Electricians 671101 Electrical Fitters 4

16 N/C Electricians – Sub Stations (High Voltage - 3Kv, 25 Kv & 50 Kv)

4

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17 N/C Vehicle builders – (Coach builders) 4

18 Electrical Mechanics and Fitters 671207 Armature Winder 4

671202 Millwright 4

19 Electrical Line Installers and Repairers

671301 Electric Line Mechanic (Overhead Track Equipment) (High Voltage - 3Kv, 25 Kv & 50 Kv)

20 N/C Rail assessors 5

21 N/C Track technicians and training specialist

5

22 Telecommunications Engineering Technicians

352201 Telecommunications Technicians

5

23 Draughtspersons 311801 Rail draughtsman 5

24 Chemical Engineers 214501 Chemical Engineer 8


214101 Industrial engineer 8

26 Mechanical engineers 214401 Mechanical engineer 8

27 Civil engineers 214201 Civil engineer 8

28 N/C Code 29 Practitioner

4

29 Chemical and Physical Science Technicians

311702 Metallurgy 8

30 N/C Shed Personnel (Chief Shedman, Shedman & Shed Assistant,)

4

31 Mechanical Engineering Technicians

311502 Inspector (Pressurized Equipment) 7


672102 Radiotricians

7


731202 Loco Control Administrator

4

34 Train Monitoring Administrator 4

35 Train Planning Administrator 6

36 Training and Staff Development Professionals

242401 Curriculum Developers

8

37 Education, Training and Development (ETD) Practitioners (Operations and Technical) (Facilitators, , Assessors and Moderators, Coaches and Mentors)

7

38 N/C Supervisory Skills 5

39 N/C Human Factor Specialist 6

40 Environmental and Occupational Health and Hygiene Professionals

226302 Hygienist

7

41 Environmental Engineers 214302 Environmental Specialist 8

42 Physical and Engineering Science Technicians not Elsewhere Classified

311903

Food Safety Specialist

8


226302 Occupational, Health and Safety Specialist

5


226302 Risk and Safety Management Officers

5


242101 Project Manager

6

46 Buyers 332302 Procurement Specialist/Officer 6

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242101 Financial Specialist (CA) 8

48 N/C Rail Track Maintenance 4

49 N/C Heavy Haul Logistics 4

50 N/C Train and Maintenance Crew Communication Technology

4

51 N/C Design and manufacturing of railway wagons for specific types of freight

7

52 N/C Rail Wheel interface 4

53 Production Clerks 432201 Foreman (Electrical Lighting and Power)

6

54 Security Guards 541401 Railway safety and security inspectors

4

55 N/C Railway safety auditors 5

56 Government Regulatory Associate Professionals not Elsewhere Classified 335914

Rolling stock specialists

4

57 Information and Communications Technology Installers and Servicers and Related Occupations

672205

Telecoms Specialists

6

58 N/C OHTE Specialists 6


121901 Rail Operations Management Specialists

6

60 N/C Diesel and Electric locomotive trainers

6

61 Building and Related Electricians 671101 Electricians (Substations) 4

62 N/C Examiner and Repairer 7

63 Information and Communications Technology Installers and Servicers and Related Occupations

672205 Telecommunications Technicians 6


672108 Service Technician – Telecoms (Communication Technicians)

6

65 Electrical Line Installers and Repairers

671302 Cable Technician 4


653303 Wagon Fitter 4

67 Welders and Flame Cutters 651202 Platelayers 4

68 Sheet Metal Workers 651302 Boiler maker 4

69 Sheet Metal Workers 651301 Sheet Metal worker 4

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5. ROAD PASSENGER



121901 General Manager 6

121905 Project Manager 7

2 Human Resource Managers 121201 Human Resource Manager 7

121202 Business Training Manager/Skills Development Facilitator

6

121206 Health and Safety 6


4 Bus and Tram Drivers 733101 Bus Driver 4



132403 Road Transport Manager 6

6 Sales and Marketing Managers 122105 Customer Service Manager 6


653306 Diesel Mechanic 6


653101 Automotive Motor Mechanic 6

9 Craft and Related Workers not Elsewhere Classified

684905 Vehicle Body Builder 6

10 Electrical Mechanics and Fitters 671208 Auto Electrician 5


684904 Panel Beater 5

12 Spray Painters and Varnishers 643201 Spray Painter 5

13 Policy Administration Professionals 242203 Company Secretary 7

14 Town and Traffic Planners 216402 Transport Analyst 7


242101 Business Analyst 7

16 Driving Instructors 516501 Driving Training Officer/Technical 5

17 Policy Administration Professionals 242207 Compliance Officer 5


121908 Quality Systems Manager IT/Manager

7

19 Police Officers 541202 Police Officers 5

20 Business Services Agents not Elsewhere Classified

333908 Marketing Coordinator 6


242304 Industrial Relations Officer 6

22 Police Officers 541201 Traffic Officer 5

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6. MARITIME

NO UNIT GROUP OFO CODE OCCUPATION/ SPECIALISATION

NQF

1 Ship’s Engineer 315101 Ship's Engineer Chief engineer (< 750kW port operations) Chief engineer (< 1500kW port operations) Chief engineer officer (port operations) Engineer officer Second engineer (< 3000kW) Chief engineer (< 3000kW) Second engineer Chief engineer Electro technical officer Chief engineer officer (special grade)

6

2 Ships’ Deck Officers and Pilots

315201 Ship's Master Master (< 200GT near-coastal) Master (< 200GT) Master (< 1600GT port operations) Master (port operations) Master (< 500GT near coastal) Master (< 500GT) Master (< 3000GT) Master (special grade)

6

3 Skilled Inland and Coastal Waters Fishery Workers

622201 Skipper (Fishing) Skipper fishing (< 24m limited waters) Skipper fishing (< 24m unlimited waters) Skipper fishing (≥ 24m limited waters) Skipper fishing (≥ 24m unlimited waters) Deck officer fishing (< 24m) Deck officer fishing (≥ 24m)

4

4 Engineer-Fishing N/C Engineer (Fishing) Marine motorman Grade 2 Marine motorman Grade 1 Marine motorman Higher Grade Second engineer (fishing) Chief engineer (< 3000kW fishing) Chief engineer (fishing) (unlimited)

4

5 Ships’ Deck Crews and Related workers

735101 Deck Hand Electro-technical rating

4


132407 Harbour Manager (harbour master = fishing port / port captain = commercial merchant port)

5


132407 Port Captain 5

8 Services Managers not Elsewhere Classified

143907 Dockmaster 7

9 Mechanical Engineers 214405 Naval Architect

8

10 Ships' Deck Officers and Pilots

315203 Ship's Surveyor 6

11 Electrical Mechanics and Fitters

671202 Millwright (Electromechanician) 3

12 Human Resource Managers

121201 Personnel / Human Resource Manager: Crewing Manager

6

121202 Business Training Manager 6

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7. TAXI

NO UNIT GROUP OFO CODE OCCUPATION /SPECIALISATION

1 Customer Service manager 122105 Client Services Advisor

2 Psychologists 263404 Behaviour Management Consultant

3 Typists and Word Processing Operators

413101 Word Processing Clerk

4 Professional Services Managers not Elsewhere Classified

134903 Small business manager


333908 Marketing Coordinator

6 Personnel / Human Resource Manager

121201 Employee Relations Manager


121905 Programme or Project Manager


333905 Supply Chain Administrator


226302 Safety, Health, Environment and Quality (SHE&Q) Practitioner

10 Personal Care Workers in Health Services not Elsewhere Classified

532901 First Aid Attendant

11 Human Resource Managers 121205 Employee Wellness Consultant

12 Personnel and Careers Professionals 242304 Industrial Relations Officer /Conflict Resolution Practitioner

13 Finance Manager 121101 Finance Manager

14 Policy Administration Professionals 242210 Business Administrator

242207 Compliance Officer

242209 Accounting Officer


684905 Vehicle Bodybuilder


653101 Motor Mechanic

17 Spray Painters and Varnishes 643202

Vehicle Painter


684904 Panelbeater

19 Electrical Mechanics and Fitters 671208

Auto Electrician

20 Personnel and Careers Professionals 242302

Skills Development Facilitator / Practitioner

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8. FREIGHT HANDLING




132401 Freight Manager

132403 Cargo Manager


121905 Project Manager 7

121901 Business Operations Manager


4 Industrial & Production Engineers 214101 Manufacturing Logistics Engineer 8

5 Elementary Workers not Elsewhere Classified

862918 Artisan Aide Electrical 3

6 Physical and Engineering Science Technicians not Elsewhere Classified

311905 Industrial Engineering Technicians 6

7 Electrical Mechanics and Fitters 671202 Millwright (Electromechanician) 4


132401 Supply and Distribution Manager 6

9 Heavy Truck and Lorry Drivers 733201 Freight Operator 5


132404 Warehouse Manager 5

11 Advertising and Marketing Professionals

243103 Marketing Practitioner 5

12 Plumbers and Pipe Fitters 642607 Pipe Fitter 4

13 Database and Network Professionals not Elsewhere Classified

252902 Technical (ICT) Support Services Manager

6

14 Human Resource Managers 121202 Business Training Manager 7

15 Crane, Hoist and Related Plant Operators

734301 Crane or Hoist Operator 4

16 Freight Handlers 833303 Stevedore 5

17 Stock Clerks 432102 Dispatching and Receiving Clerk / Officer

5

18 Air Conditioning and Refrigeration Mechanics

642702 Cold Storage Maintenance Serviceman 5

19 Lifting Truck Operators 734402 Forklift Operator 4


226302 Safety Manager 6

21 Professional Services Managers not Elsewhere Classified

134916 Stevedore Foreman 5

22 Nursing Professionals 222101 Occupational Health Nurse 7

23 Information and Communications Technology Service Managers

133105 Information Technology Service Manager

7

24 Clearing & Forwarding Agents 333101 Shipping Agents & Operators Clearing & Forwarding Agent/Specialist Clearing Agent/Customs

5

26 N/C Dangerous Goods Professionals 5

27 N/C Supply Planners 5

28 Policy and Planning Managers 121301 Planning Managers 6

29 N/C SHERQ Manager 6


653306

Diesel Mechanic

6

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8. FREIGHT HANDLING


31 Mechanical Engineers N/C Mechanical Technician 5

32 N/C Electrical Technician 5

33 N/C Industrial Technician 5

34 N/C Hydraulics Technician 5

35 N/C IT Technicians 5

36 N/C Plumbing Technician 5

37 N/C Artisan Electrical 5


214101 Industrial Engineer

39 N/C Informatics Technician

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5.2 CRITICAL SKILLS

The table below lists the types of critical skills reflected in the WSP/ATR as per the 8 chambers.

Road Passenger Forwarding & Clearing

Road Freight Aerospace Maritime

Driver Qualification Management skills

-Generic -Supervisory

-Human Resource -Financial -Business

management Corporate

governance Tendering process

Marketing Communication

Compliance Human resources

Legislative development

Scheduling and planning Project

management Supply chain management

Customer Care Conflict

management First aid

Fire fighting Wellness/Employee

Assistance Health and Safety

Anger management New Venture

Creation Coaching and

Mentoring Basic IR Skills

Call Centre Management

Administrative & Clerical

Human Resource Transformation Management

Freight Forwarding Customs Clearing

Regulatory Training Supply Chain Management

Management Skills Communication

Sales Skills Information Technology

Customer care Project management

Material / Freight handling Logistics Customs

Dangerous goods Data Analysis

Driving Skills Dangerous Goods

Management -Generic

-Supervisory -Human Resource

-Financial -Key Accounts

Project Management Risk Management

Supply Chain management Procurement

Transport Logistics - Networks

- Route - Processes & Market

- Route Planning - Operations systems

- data analysis -Welding -Business

Administration -Sales Training

-Health & Safety -Operations

(scheduling / business principles / legislation) -Marketing (business

contracts) Enforcement (traffic

policing) Health (illness /

nutrition / general health) ABET

IT basic and advanced Customer Service (Contact Centre)

Logistics Warehousing

Refueling Mentor and

Coaching Sales

Training Skills Customer Liaison Negotiating client

contracts HR Skills

Computer literacy Health & Safety

Management Skills Communication

Financial Industry Legislation

Problem solving Accounting

Quality Assurance Management Fire Fighting

Supervisory skills Network

administration Situation awareness

training Sales clerks

Computer literacy Passenger handling

staff Fixed wing pilot

training, specifically the progression from

Commercial (CPL) level to Airline

Transport Pilot (ATP) level

Assessor training for flight instructors

Aircraft Maintenance Staff – Mechanical, electrical, structural

and avionics

Business Practices &

Management Compulsory

STWC&STWC (revalidation

requirements) Occupational

Health & Safety

Long & Short Range Operations

HACCP Leadership

Management Navigation

Skills (Watch Officer)

Fishing and Merchant

Marine Engineering Skills (Watch

Officer) Fishing & Merchant

Marine Fishing

Technologies Fish hunting

Pilotage AET

Lifeskills HIV/AIDS

Fishing Technologies

& Fish Hunting

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Rail Freight Handling Taxi

Transport Management (Human Resources, equipment, drivers, dangerous goods for all modes of transport) Supply Chain Management (Production planning and logistics) General Management (Leadership and motivational skills) IT (handling, operations, administration and management) Train Driving Railway Engineering Train Management Tracking of information in real time E-commerce GPS positioning and signalling Wagon repairs and building Rail wheel interface management Track conditioning evaluation for maintenance evaluations Operational improvement Cost containment 4PL Joint Venture Management Developing of monitoring system in technical environment & operations eg. Train condition-monitoring system Heavy haul logistics Rail traffic management systems development and implementation Train and maintenance crew communication technology Design and manufacturing of railway wagons for specific types of freight Rail track maintenance

ABET / Transport Management Supply Chain Management / Logistics Management / General Management Supervisory / HR / Finance Administration / Key Account Management / Customer Services Safety Awareness / Technical Operator Skills / Port Management Business Development Management Performance Management / Computer skills Mentorship /coaching /delegation Discipline /IR skills / Planning and budget / Performance assessment Project management Problem-solving /conflict management Health and safety / Risk management Fire-fighting / First aid HIV/AIDS / Skills Development Marketing management / Strategic Analysis / Procurement Security (physical, information, people) Facility management / Workplace planning / Freight handling(materials) Inventory systems / Transport planning skills / Supply chain management Contract administration / Customer care Customs clearing / Machine operators Picking /packing /slaughtering skills Cargo coordinators / Cargo controller Tally clerks / Data capturing Coordinating skills / Literacy & Numeracy Food handling / Receiving & Dispatching / Variable temperature control / Professional driving / Truck Driver / SHERQ Practitioner / Steer operator HR Manager / Employee wellness Reefer handling / Skid steer Aerial Platform / Front end loader TLB Operator / Hatchman Freight Operator

Customer Services Safety Awareness Supervisory Administration Transport Management Driver Qualification Communication Compliance Management -Generic -Supervisory -Human Resource -Financial -Business management Customer Care Conflict management First aid Health and Safety Anger management New Venture Creation Basic IR Skills Entrepreneurship Small business management

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5.3 CONCLUDING REMARKS

A major problem impacting adversely on the skills development environment is the lack of a national labour market information system. As a consequence, users of labour market information are making policy choices and public investments in education and training without credible data. An additional problem facing SETAs is that no occupational forecasting is undertaken by research agencies or government departments. Therefore it is not possible to predict future skills demands within reliable parameters.

With these limitations, the only reliable sources of occupational supply-demand information are analysis of job adverts conducted by CareerJunction. CareerJunction is a web service through which Recruiters and Career Seekers interact in a secure and completely confidential environment. CareersJunction uses its website which includes job vacancies advertised in the Sunday Times Careers section. Road transport, according to StatsSA (2011), makes up 62% of the total sector. TETA therefore should focus considerably on improving skills in this sector. High skills occupations (Managers/Professionals/ Technicians) constitute 26.1%; intermediate skills (Clerks/Sales and Service/Crafts and Trades) make up 20.6% and low level skills; (Plant and Machinery/Elementary) comprise 53.3%. A high percentage of people are in the low skills category (53%).2 There is an opportunity to move people with low level skills into the intermediate category. Likewise there are opportunities for those with intermediate skills to move into the high skills category with meaningful education and training interventions. TETA should focus on FET qualifications since a large number of workers (308 035 and 106 347)3 need to access education and training in this band. This effectively makes up 66% of the workforce. A strong feature of the transport sector is that Whites dominate the upper end of the occupational spectrum, whilst Blacks (Indians, Coloureds and Africans are located at intermediate and lower levels). There is clearly a need for TETA to become more active in supporting Blacks, especially Africans, through skills development to occupy senior and high level occupations in transport. Affirmative Action should be a very high priority of the skills agenda for the transport industry. The mandatory grant system is not been effectively utilised by firms in the transport sector. The very low penetration rate (the total number of workers by the number actually trained per occupational level) means that training

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interventions do not reach scale in the transport industry and are unlikely to have a meaningful impact of improving the skills base of the industry. In short, more people need to receive training in the industry than is currently the case. The recession has weakened labour demand in the transport sector as a result of reduced trade activities. During tough economic times firms are reluctant to hire new staff. Recruitment currently in the sector is “easy” according to CareerJunction. On average there are 21.79 new career seekers per job advertised. There is a strong demand for engineering-type occupations in the sector. Mechanical, electrical and electronic engineering appear to be in very strong demand. At artisanal level, fitting and turning are popular. This is followed by procurement, supply chain and logistics occupations. The lack of training berths remains a major impediment to the training of seafarers in the maritime sector. In addition, changes in international protocol / legislative environment are also causing pressures on both the demand and supply of skills to this sector. Amendments to the standards of training, certification and watch-keeping (STCW) in Manila have resulted in various new licensing requirements for seafarer certification. The Manila Convention, which takes effect on 01 January 2016, will result in increased demand for training (especially re-validation of qualifications) as well as increased cost to the supply environment as providers align their training to the new requirements. The imminent promulgation of new standards for the fishing sector (STCW-Fishing), while broadly regarded as crucially important to skills development, will have similar consequences to the demand and supply of skills.

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CHAPTER SIX: STRATEGIC FRAMEWORK

Chapter Six recommends a set of skills development priorities for the transport sector in the form of a strategic framework. These priorities are drawn from the research findings of preceding chapters and take cognisance of government initiatives including, but not limited to, the Department of Higher Education and Training Guide to the Process and Time Frames for Developing Sector Skills Plans and the NSDS III, Framework for the National Skills Development Strategy 2011/12 – 2015/16 and President’s Priorities and the Medium-Term Strategic Framework. The purpose of this chapter is to offer the stakeholders of the Transport Sector Education and Training Authority a strategic framework for skills development over the next 5 years. Ten broad skills development priorities have been identified based on the research. These priorities lay the foundation for framing a service level agreement between TETA and the DHET. 6.1 PERFORMANCE MONITORING AND EVALUATION The Strategic Framework incorporates the broad precepts of government-wide performance monitoring and evaluation framework for programmes where the high level strategic approach in the SSP is regarded as providing the broad impact, outcome and output indicators and measures for the annual strategic business plans and service level agreements that the SETA will adopt and sign-off with the Department.

Source: National Treasury, 2007, Framework for Managing Programme Performance Information

IMPACTS

OUTCOMES

OUTPUTS

INPUTS

ACTIVITIES

RELATIONSHIP INDICATORS

OPINION-BASED INDICATORS

Types of direct

indicators

Quantity

Quality

Cost / Price

Timeliness

Start and end times

Distribution

Adequacy

Accessibility

DIRECT INDICATORS

Economy

Efficiency

Effectiveness

Data gathered through surveys

Equity

Indicators

Indicators

Indicators

Indicators

IndicatorsData gathered mainly by

management information

systems

Calculated using a combination

of direct indicators and other

dataIMPACTS

OUTCOMES

OUTPUTS

INPUTS

ACTIVITIES

RELATIONSHIP INDICATORS

OPINION-BASED INDICATORS

Types of direct

indicators

Quantity

Quality

Cost / Price

Timeliness

Start and end times

Distribution

Adequacy

Accessibility

DIRECT INDICATORS

Economy

Efficiency

Effectiveness

Data gathered through surveys

Equity

Indicators

Indicators

Indicators

Indicators

IndicatorsData gathered mainly by

management information

systems

Calculated using a combination

of direct indicators and other

data

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6.2 STRATEGIC FRAMEWORK The strategic goals for TETA over the next five years are as follows:

STRATEGIC GOAL 1: Establish a credible institutional mechanism for skills planning and build and sustain research capacity on labour markets within TETA

RATIONALE: TETA is committed to building institutional labour market research capacity. This involves strengthening the existing skills research and planning unit. There is a need to review the existing research strategy and offer multiple interventions to improve labour market intelligence. Staff development programmes should focus on analysis of labour markets; statistics for managers; alignment of industrial policy, skills strategies and labour markets; labour economics; theoretical understanding of skills shortages; labour market information systems and occupational supply and demand analysis.

Strategic Priority Indicator Success Factor

Implement research strategy

Number of activities undertaken

Number of milestones reached

Appointment of full- or part-time labour market researcher

Employment contract Researcher appointed

Support the development of emerging researchers

Internships Number of emerging researchers supported

Conduct training, coaching and mentoring interventions to improve staff research capacity

Number of activities undertaken

Training session conducted Coaching and mentoring

takes place

Develop an all year programme for SSP development

SSP Plan Number of activities undertaken

Research staff attend at least one conference on skills research

Number of conferences attended

Presentation by staff member to colleagues

Build a research repository for the sector

Membership with research institute

Number of memberships with research bodies.

Hold at least 2 in-house workshops on sectoral research

Number of workshops held Two workshops takes place

Conduct tracer study and skills audit

Appointment of service provider

Studies published

Establish an impact evaluation mechanism in the SETA

Number of graduates tracked

Report published

Research on supporting FET College and university partnerships

Approval of project Number of partnerships

Conduct skills audit, impact study and tracer study

Approval of project Research reports

FUNDING: Administration budget and Discretionary grants.

BUDGET: R2 390 000

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STRATEGIC GOAL 2: Increase access to occupationally directed programmes to address critical and scarce skills shortages

RATIONALE: The establishment of the QCTO and the shift towards occupationally-directed qualifications has necessitated that TETA accelerate the re-curriculation of legacy qualifications to meet the QCTO requirements. In addition, new qualifications should be created to address scarce skills not covered by existing qualifications. New OFO codes should be created new occupations.


Develop a business plan and budget

Approval of plan and budget

Number of legacy and new programmes re-curriculated

Research study on usage and number of enrolments on TETA accredited qualifications, including Learnerships and apprenticeships

Criteria for eligibility of qualifications

Number of qualifications identified for development

Scoping study undertaken to determine the number and types of qualifications to be curriculated

Evidence of usage of existing qualifications

Report indicating the number and types of programmes to be curriculated

Mapping of qualifications to OFO Framework and NQF

Evidence of mapping of qualifications

All qualifications mapped

Training of staff and CEPs on new qualification requirements

Number of training interventions

Staff and CEPs trained

Development of occupationally directed qualifications

Number of qualifications Number of qualifications developed

Consultation sessions with stakeholders

Number of consultative sessions

Sessions held

FUNDING: Discretionary grants.

BUDGET: R3 000 000 for business planning, research, training and workshops

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STRATEGIC GOAL 3: Improve the competitiveness and job creation propensity of SMMEs by creating greater access to skills development

RATIONALE: Virtually all policy pronouncements of government, including NSDS lll accentuates the importance of supporting SMMEs for job creation. SETAs have generally found it challenging to convince SMMEs to participate in the levy- grant system. Many micro-enterprises have been excluded from compulsory skills levies due to the minimum thresholds set in the SDL Act. The criteria for accessing discretionary grants and the bureaucratic burdens associated with it have also meant that SMMEs are reluctant to participate in initiatives. Notwithstanding, the majority of companies on the TETA database are classified as SMMEs with fewer than 50 employees.


Conduct research on the skills development and enterprise development needs of SMMEs

Terms of Reference for study

Stakeholder engagement

Study published

Develop an SMME Skills Development Strategy for the Transport Sector

Terms of reference for strategy

Study published



Sessions held

Implementation of SMME strategy

Number of SMMEs participating in a range of TETA activities

Increased participation of SMMEs

Impact evaluation

Establish of a portal for SMME support

Specifications for portal Portal functional



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STRATEGIC GOAL 4: Skills planning for a green Transport Sector

RATIONALE: The challenge of transitioning from the current economy onto a green economy is a formidable one and requires a platform for engagement in the transport sector. A green Transport Sector will not be brought about by policies only: it must be taken up by stakeholders at large as a principle guiding the many choices each employer makes every day. Skills implications to achieve the green Transport Industry target are considerable, varied and encompass all sub-sector. Availability of skills for green jobs plays a crucial role in triggering change and facilitating just and timely interactions. There is a necessity to look at emerging, changing and rapidly growing industries, as well as occupations that are completely new (emerging) and /or require new knowledge, skills and abilities.


Conduct a comprehensive needs study on green skills and occupations for the sector

Identification of green skills, occupations and qualifications

Study published

Develop Green Skills Strategy for the Transport Sector


Strategy published



Sessions held

Implementation of Green Skills Strategy

Number of employers participating in a range of green activities

Increased participation Impact evaluation

Workshop/seminar on green skills in the transport sector

Number of participants Workshop/seminar held

Establish partnerships with DoT, CSIR and DEAT for promoting a green economy

Number of partnerships Participation of partners in TETA activities


BUDGET: R500 000

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STRATEGIC GOAL 5: Increase the pool of artisans in the sector

RATIONALE: According to NSDS lll South Africa's pool of intermediate skills, especially artisanal skills, is too low to support national and sector development and growth. The workforce is not keeping up with the skills needed to remain competitive in an increasingly knowledge-based economy. The TETA should contribute to building the base of intermediate level skills by giving particular attention to occupations in this band. These occupations have been identified in the Priority and Scarce Skills Lists.


SETA identify priority occupations and scarce skills at middle level

Number of apprenticeships registered

Number of learners trained at middle level

Identify public FET Colleges and universities that that deliver learning leading to full qualifications on NQF

Number of grants given Partnerships with FETs and HETs

Number of graduates

Allocate grants for middle level training as part of project

Qualifications for grants should address previously disadvantaged youth – rural, race, gender, disability, family income

Number of FET Colleges and universities participating in this project


BUDGET: R10 million

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STRATEGIC GOAL 6: Promoting the growth of a public FET college system that is responsive to sector, local, regional and national skills needs and priorities.

RATIONALE: NSDS III states the public FET college system is central to the government’s programme of skilling and re-skilling the youth and adults. Its transformation is key to the integration of education and training and responding to the skills needs in our country. In recent years, FET colleges have been striving to make the transition from their former status as technical colleges to being responsive and vibrant post-school institutions for vocational education.


Establish a capacity-building project for FET Colleges that would include the following: curriculum development; understanding the TETA Sector; labour market research to measure responsiveness; collaboration between colleges and industry; lecturer development; RPL and assessment.

Public FET Colleges Rural spread Capacity-building toolkit for

FET Colleges

Number of engagements 3 provincial workshops Dissemination of toolkit


BUDGET: R2.5 million

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STRATEGIC GOAL 7: Addressing youth unemployment and employability

RATIONALE: NSDS lll states that a high proportion of young people who exit school before completing a senior secondary qualification stand little chance of participating productively in the economy. To illustrate the severity of the problem, there are approximately 3 million youths, aged between 18 and 24 years, who are not in employment, education or training, have a poor educational foundation and are poorly prepared to undertake further learning. If the age group is expanded to take into account the 16 to 18 year-olds who have dropped out of school and are not in training or employment as well as the 25 to 35 year-olds who have remained unemployed since leaving full time education, the number is much higher.


Establish a national internship and work placement project in partnership with local municipalities, FET Colleges and chambers of commerce

Budget approved ToR established Project assigned.

Number of work placements and internships – about 30 per chamber.

Number of jobs created

Two day workshop with FET Colleges on unemployment and employability

Employability and job creation

Workshop held


BUDGET: R2 million

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STRATEGIC GOAL 8: Increasing submissions of WSP/ATRs, especially SMMEs.

RATIONALE: NSDS III mentions that South Africa is challenged by low productivity in the workplace, as well as slow transformation of the labour market and a lack of mobility of the workforce, largely as a result of inadequate training for those already in the labour market. The New Growth Path and National Development Plan adopted by government calls for increased workplace training of workers already in employment in order to improve productivity and the overall growth and development of our economy. To address this challenge, the NSDS III, through both the mandatory and discretionary grants of the SETAs, must support training of employed workers, and encourage employers to expand such training, in order to improve the overall productivity of the economy and address skills imbalances in our workforce in particular and the labour market in general. Accordingly, emphasis will be placed on the use of the levy-grant system with investment into our overall skills agenda.


Promote critical skills training by companies in the mandatory grant process

Number of WSP/ATR submissions

Measuring impact

Promote submission of WSP/ATRs

Number of WSP/ATR submissions

Measuring impact

Develop an RPL strategy and plan

Implementation of RPL

Number of RPL assessments


BUDGET: R2 million

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STRATEGIC GOAL 9: Building career and vocational guidance especially to encourage females to enter the sector

RATIONALE: NSDS III states that our entire skills development system must dedicate the necessary resources to support career and vocational guidance, as this has proved to be a critical component in successful skills development initiatives world-wide. There is also a need to encourage females into the sector. The preceding research indicates that females, especially blacks, are under-represented in higher levels of the occupational structure.


Workshop in KZN, W Cape and Gauteng on the changing nature of work in the sector

Approval of workshop Workshops held

Updating career guide

Guide updated Dissemination of guide

Workshop with FET Colleges to discuss career prospects in sector

Approval of project 9 workshops (one per region)

Development and re-curriculation of qualifications aligned to QCTO requirements

Qualifications Management Body to develop, align and submit qualifications per year to QCTO

qualifications aligned

Development of career pathways in sector

Approval of project Number of pathways developed

Identify and profile the

key occupations in the

Energy and Water Sector

and publish the results

thereof in a handbook of

occupations relevant to

the EWSETA.

Handbook Occupational profiling Job or post profiles

Handbook published

A workshop to encourage women in management

Workshop held Outcomes of the workshop identified

FUNDING: Discretionary grants

BUDGET: R3 million

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STRATEGIC GOAL 10: Support rural development, including NGOS, CBOs and other organisations in rural areas

RATIONALE: There is a need for TETA to pay greater attention to support rural development in the sector. This is a key aspect of the national policy goals of government. Traditionally the focus of TETA has been urban development. There is a need for TETA to know more about rural development before embarking on a series of programmatic interventions.


Conduct research on the skills development and enterprise development needs in rural communities

Terms of Reference for study

Stakeholder engagement

Study published

Devise a Rural Development Strategy for the Transport Sector


Study published



Sessions held

Implementation of rural strategy

Number of rural organisations participating in a range of TETA activities

Increased participation of SMMEs

Impact evaluation

Establish partnership with organisations working in rural areas

Workshop Skills interventions

Number of interventions



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STRATEGIC GOAL 11: Make an active contribution to Strategic Integrated Projects (SIPs)

RATIONALE: 18 SIP projects have implications for the transport sector. SIPs will lay the basis for

job creation, economic growth and poverty alleviation. The downstream effect of SIPS will be

greater demand on the transport sector to offer services. This translates to higher skills demand.

SIPs will necessitate that TETA playa a catalytic role in skills development in all 18 SIPs spatial areas as demand in these areas is expected to pick up exponentially. TETA has been allocated SIPs projects 1, 2 and 7 wherein it is expected to play an active role.


Conduct an alignment of SIP projects 1, 2 and 7 to SETA Strategic Plan

List of interventions identified

Develop a response to implement interventions

Determine skills development priorities from SIPs project 1, 2 and 7 for TETA

Number of priorities and interventions

Priorities and interventions identified

Board approval of SIP interventions

Budget approved Implementation of interventions

Monitor implementation of SIPs

Number of activities Report published



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REFERENCES Bird, A. DHET, SIPs Presentation, 2013 CareerJunction Index, (2013), CJI: Index (March). www.cji.co.za Development Bank of Southern Africa (DBSA). 2012. The state of South Africa’s infrastructure: opportunities and challenges. Department of Labour, 10th CEE Annual Report 2011-2012. www.labour.gov.co.za DHET (2012), National Skills Development Strategy lll. www.dhet.gov.za Department of Labour, 10th CEE Annual Report 2006-2007. www.labour.gov.co.za Department of Labour, 10th CEE Annual Report 2012-2013. www.labour.gov.co.za Economic Intelligence Unit (2013), International database of 187 countries. www.eiu.com Independent Development Corporation (4th Q 2012), Sectoral Trends: performance of the primary and secondary sectors of the South African economy, Sandton, South Africa. SAIRR (2013), National Survey (2011-12). www.sairr.org.za Statistics SA, Website, 2013, GDP figures. Statistics SA, South African QLFS, Quarter 2, 2013. Statistics SA, Labour Force Survey, Historical Revision, March, Series 2001 to 2010. Statistics SA, Labour Market Dynamics in South Africa, 2008. Statistics SA (2011), Labour Dynamics 2010. www.statssa.gov.za TETA Annual Report, 2012-2013. TETA Strategic Plan, 2012/13 – 2015/16

http://www.cji.co.za/

http://www.labour.gov.co.za/

http://www.dhet.gov.za/



http://www.sairr.org.za/

http://www.statssa.gov.za/

SECTOR SKILLS PLAN UPDATE 31 JANUARY 2014 Sector... · Development Strategy and the Skills Accord...

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