Skills Development Strategy,

Presentation by Adrienne Bird,

Chief Director: Employment and Skills

Development Services,

Department of Labour,

26 October 1999.

SKILLS DEVELOPMENT ACT - PURPOSE

i. To improve the quality of life of workers, their prospects of work and labour mobility

ii. To improve productivity in the workplace and thecompetitiveness of employers

iii. To promote self-employment

iv. To improve the delivery of social services

v. To increase the levels of investment in education and training in the labour market and to improve the returnon that investment

SKILLS DEVELOPMENT ACT - INSTITUTIONS

i. Minister of Labour

ii. Director General: Labour – Accounting Officer

iii. National Skills Authority (NSA)

iv. Sector Education and Training Authorities (SETAs)

v. Department of Labour: Programme: Employment and SkillsDevelopment Services (Directorate: Skills Development Unit, Funding, National Skills Authority Secretariat, Employment Services and Indlela/COTT)

FUNCTIONS OF THE NATIONAL SKILLS AUTHORITY

ADVISE MINISTER ON:

• National SD policy and strategy

• Implementation of strategy

• Allocation of subsidies from NSF

LIAISON WITH SETAS

REPORT TO MINISTER ONIMPLEMENTATION OF STRATEGY

CONDUCT INVESTIGATIONS

COMPOSITION OF THE NATIONAL SKILLS AUTHORITY

i. Chairperson

ii. Executive Officer

iii. Organised business (BSA and Nafcoc)

iv. Organised labour (Cosatu, Nactu and Fedusa)

v. Government departments (Labour, Education, DPSA, DTI, DACST)

vi. Community (Youth, Women, People with disabilities, Rural, Civic)

vii. Representatives from education and training providers (higher, further, ABET and private)

NATIONAL SKILLS AUTHORITY

NSA established on 12 April 1999

Chairperson not yet appointed, two acting co-chairpersons from Labour and Business

Mr. Sam Morotoba = Executive Officer, National Skills Authority

2 NSA meetings, 1 special NSA and 3 EXCO meetings were held this year

NSA POLICY ADVICE TO MINISTER TO DATE

Critical path for the implementation of the Skills Development Act

Demarcation of Sector Education and Training Authorities – Publication of Government Gazette on 7 September 1999 – Gazette Number: 20442

Grant disbursement to employers by a SETA or chamber – Regulation Number R.1231 Gazette Number 20552 dated 15 October 1999

Published for public comment, comment to be received on 15 November 1999, NSA to consider on 18 November 1999

CRIRICAL PATH APPROVED BY NSA

30 September 1999 Letters of intent from SETAs

12 November 1999 Submission of constitutions andbusiness plans from SETAs

4 January 2000 Registration of SETAs

31 March 2000 Dissolution of Industry Training Boards

1 April 2000 New SETAs to be operational

1 April 2000 Date for first calculation of levy

31 July 2000 First Sector Skills Plans

November 2000 First National Skills DevelopmentStrategy Conference

SETA DEMARCATION

xi. Accounting and other Financial services

xii. Banking

xiii. Chemical and Allied Industries

xiv. Clothing, Textiles, Leather and Footwear

xv. Construction

xvi. Defence

xvii. Education, Training and Development Practices

xviii. Energy

xix. Food

xx. Forestry, Furniture, Pulp & Paper Board, and Wood Products

xxi. Health and Welfare

xxii. Information Systems (IT), Electronics and Telecommunication Technologies

xxiii. Insurance

xviii. Local Government, Water and Related Services

xix. Media, Publishing, Printing and Packaging

xx. Mining and Minerals

xxi. Mining Engineering, Plastics,Motor Retail, Auto Manufactures and New Tyre and Rubber

xxii. Personal Care

xxiii. Police, Justice, Security and Correctional Services

xxiv. Primary Agriculture

xxv. Public Sector

xxvi. Secondary Agriculture

xxvii. Services

xxviii. Sports, Arts, Culture and Entertainment

xxix. Tourism and Hospitality

xxx. Transport

xxxi. Wholesale and Retail

SETA DEMARCATION (continue)

FUNCTIONS OF SETAs

Develop and implement / facilitate implementation of:

i. Sector Skills Plans and Workplace Skills Plans (by means ofSkills Development grants)

ii. Learnerships

iii. Education and Training Quality Assurance function

iv. Liaison with Employment Services, the NSA and provinces

v. Promotion and marketing

COMPOSITION OF SETAs

i. Organised employers (including sme’s)

ii. Organised labour

iii. Relevant government departments

iv. Relevant professional bodies (optional)

v. Representatives from bargaining councils (optional)

Distribution of levies paid to Commissioner ( 6 week cycle)(Section 8)

SARSTransfers levies to NRFTransfers information to DG:• employer names in each SETA• levies collected from each employer

SARSTransfers levies to NRFTransfers information to DG:• employer names in each SETA• levies collected from each employer

National Revenue FundLevies are earmarked DoL budget itemPaymaster General transfers levies toSETAs & NSF based on information from SARS & after approval by DG

National Revenue FundLevies are earmarked DoL budget itemPaymaster General transfers levies toSETAs & NSF based on information from SARS & after approval by DG

Department of LabourDG responsible for calculating levyallocations & authorising transfer byPaymaster General:• 20% plus revenue where no SETA, for NSF• 80% for each SETA

Department of LabourDG responsible for calculating levyallocations & authorising transfer byPaymaster General:• 20% plus revenue where no SETA, for NSF• 80% for each SETA

NSFUp to 2% of levies paid to

SARS to cover collection costs

SETASETA

Employer

80% 20%

SKILLS DEVELOPMENT LEVY – GRANT SYSTEM

USE OF 0,5% LEVY – 1 APRIL 2000 – 31 MARCH 2001 (PROPOSED)

20% to be deducted and paid to National Skills Fund

At least 50% to be returned to employers and grants

At most 10% for SETA development (eg. Design of learnerships)

At most 20% of SETA administration (to drop to 10% in year 2)

GRANTS FROM SETAs TO EMPLOYERS IN YEAR ONE (PROPOSED)

Assuming 50% to employers:

Grant A: 15% - Employers submit the name of a Skills Development Facilitator

Grant B: 10% - Employers submit a Workplace Skills Plan

Grant C: 20% - Employers submit a report of implementation of plan

Grant D: 5% - Employers address priorities identified by sector

DG

National Skills Fund

National

Skills

Authority

Unemployed

Target

Groups

Incentive-1

SME’s

Incentive-2Social Plan

Incentive-3

Employment

generation

Incentive-4

Learnerships

Incentive-5

MINISTER

DoL PROVINCIAL OFFICE

PROVIDERS

LEARNERS

SETA

COMPANIES/PROVIDERS/LEARNERS

NATIONAL SKILLS FUND (PROPOSED)

PILOT PROJECTS TO BE SUPPORTED BY THE NSF

Learnerships Hospitality (Business Trust)Agriculture (Eastern Cape,KZN and Northern Province) Arts and crafts (DACST)Etc.

Skills Programmes Housing (Public Works)SME’s (Phase 2 Danida)

Spatial Development Initiatives Lebombo, Wild Coast, Coega

Industry policy Clothing and Textile (DTI)

Social Plan Mooi River (KZN Economic Council)

EUROPEAN UNION IMPLEMENTATION SUPPORT

Labour Market Skills Development Programme46million Euro’s = R280 million

Six projects:

Project 1 – Capacity of Programme: ESDS

Project 2 – Strategic planning and information systems

Project 3 – Learnerships and skills programmes

Project 4 – In-service training (for those employed)

Project 5 – SETAs and NSA

Project 6 – Funding – levy/grant and NSF

CAPACITY BUILDING

Qualityprocess

Democraticprocesses

Projectmanagement

GenericOperationsmanagement

Strategicthinking

CommunicationInformationProcessing

Elective

Higher degreeLevel 7/8

B. Degree inOrg.Leadership

NationalDiploma inOrganisationManagementLevel 5

NationalCertificate inOrganisationAdministrationLevel 5

NationalCertificate inWorkplaceSkills Level 4

DEPARMENT OF LABOUR CHIEF DIRECTORATE:EMPLOYMENT AND SKILLS DEVELOPMENT SERVICES

The Department of Labour: Employment and Skills Development Services wishes to develop an education and training system that will:• develop the capacity of its staff and social partners to implement the Skills Development Strategy

• result in credits and qualifications for a proposed new workplace- based set of qualifications

• provide learning and learner support on national basis

You are invited to tender as a individual service provider or as a co-ordinating body for one of the following areas of learning1. Generic Management2. Information processing and knowledge management3. Communication and advocacy4. Systemic and strategic thinking particularly in labour market issues,

and vocational education and training5. Project management6. Management of Partnerships7. Quality processes8. Electives (role specific requirements)9. Post-graduate research

Further information and the tender documents are available from:Jeanne.olivier@labour.gov.za

A briefing session will be held on 8 November 1999

BI-LATERAL SUPPORT FROM OTHER DONORS

German Government (GTZ)

Irish Aid

The Netherlands

Sweden / Norway / Switzerland

Australian government / AusAid

Korean government

American government / USAid

UK government

LABOUR MARKET SKILLS DEVELOPMENT PROGRAMME FUNDED BY THE EU

The PMU

The National Skills Authority

The National Skills Strategy Steering

Committee

The National Skills Strategy Executive

Committee

The Minister of Labour

8

Provincial Pilot for

integration of services

Project Steering

Committee

7

ETQAs

Project Steering

Committee

Capacityof

DoL

Project Steering

Committee

1

StrategicInfo

System

2

Project Steering

Committee

Institu-tional

capacity

5

Project Steering

Committee

In-service training

4

Project Steering

Committee

Learner-ships

3

Project Steering

Committee

Funding systems

6

Project Steering

Committee

11

DesignatedGroups

10

SDS CapacityBuilding

Project Steering

Committee

Project Steering

Committee

9

Project Steering

Committee

Public/Private

Partnerships established

PROVISIONAL OVI’s (continue)

Project 1:

At least 70% of plus minus 544 staff members have improved their levels of competence / qualifications by at least 1 level by end of year 3

At least 60% have improved staff performance appraisals

PROVISIONAL OVI’s (continue)PROJECT 2:

Data standards committee established and first session held by 31 October 1999

Draft data dictionary developed by 15 December 1999

Identification of data sets relevant for provincial, sectorand national skills development planning by 15 February 2000

Sources of data elements defined and data provision agreements negotiated and signed by 31 March 2000

Hardware and soft ware needs defined by 31 May 2000 and tender document prepared

Design, test and implement software used for SDIS by31 December 2000

SDI System role out started by June 2001

PROVISIONAL OVI’s

PROJECT 3:

Provincial workshops held

Decentralised tasks identified and agreed uponby DoL provincial offices

Job descriptions designed

Staff appointment / redeployed

Training Materials developed

Staff development support system established

PROVISIONAL OVI’s (continue)PROJECT 6:

Financial management reporting formats developedby March 2000

NSF incentive implementation plan by October 2000

Window funding incentives manual by October 2000

NSF financial recommendations on budgeting process for window incentives by October 2000

Computer specification for NSF disbursement by March 2000

NSF skills programme marketing document by February 2000

90% of incentive windows utilised by the end of the year

MARKETING STRATEGY

Marketing strategy is being designed – to be designed by the end of 1999

and implemented from 2000.