The Chemical Industries Education & Training Authority - FIVE … · 2016-06-13 · This is the...

FIVE YEAR SECTOR SKILLS PLAN FOR THE

CHEMICAL SECTOR

Annual Update: 2015-2020

Final : 15 November 2014

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FOREWORD

It is with pleasure that the Chemical Sector Education and Training Authority (CHIETA) Board submits the Sector Skills Plan (SSP) update for the Chemical Sector for the period 2014 to 2019 to the Department of Higher Education and Training (DHET).

The Sector Skills Plan has been prepared in accordance with the National Skills Development Strategy (NSDS) III for the period 2011 to 2016, as well as the DHET requirements for Sector Skills Plans. Feedback received from the DHET on previous SSP updates has been taken into account in the development of this report. Additionally current debates around skills development, including sector specific and broader national discussions around the growth and development of the economy have also been considered. Specific consideration was given to the National Development Plan (NDP) which provides the guiding principles for further development of the country, including skills development. The White Paper for Post School Education and Training gives effect to some of the principles outlined in the NDP and provides a roadmap for the further development of the education and training and skills development system. Although the implementation guidelines are still expected to unfold over time, the CHIETA is taking cognisance of the general direction provided by these documents. The recently gazetted Grant Regulations (3 December 2012) have also been factored into this SSP update.

The Industrial Policy Action Plan (IPAP) is one of the key mechanisms through which Government intends to stimulate economic growth and development. As IPAP focuses on key aspects of the Chemical Sector the CHIETA has a responsibility to support economic development plans with corresponding skills development initiatives. The skills needs resulting from IPAP interventions are factored into the CHIETA’s planning.

The National Development Plan emphasises the importance of science and technology as the keys to development. Innovation is the most important driver of the kind of technology-based growth that is associated with higher living standards. The Chemical Sector is at the forefront of the drive towards an ‘innovation economy’ and the improvement of the skills of our workforce is imperative for the achievement of this.

The main purpose of this SSP update is to guide and inform skills development initiatives in the sector. It is the result of not only a thorough research process, but also of extensive stakeholder consultation. Through the various consultative processes undertaken in the development of this update, the CHIETA stakeholders have taken ownership of this plan and now all stakeholders are urged to work together over the next five years to address the skills development priorities and to achieve the goals and objectives set out in this SSP.

The SSP will be revised and updated on an annual basis and will be aligned to government policies and growth plans, as these become operational.

Ms NolithaFakude Board Chairperson Chemical Industries Sector Education and Training Authority

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BOARD ENDORSEMENT

This is the Sector Skills Plan update prepared by the Chemicals Sector Education and Training Authority for the Chemical Sector (2015 – 2020). It is submitted to the Minister of Higher Education and Training in partial compliance with the requirements of the Skills Development Act of 1998 as amended. The Sector Skills Plan update is hereby approved by the CHIETA Accounting Authority (Governing Board).

Endorsed by For Title Signature Date

Ms Kedibone Moroanel

CHIETA Acting Executive Manager: Research and Skills Planning

Ms Ayesha Itzkin CHIETA

Acting Chief Executive Officer

Mr Mosehle Mampho

On behalf of the CHIETA Accounting Authority (Governing Board), as duly authorised.

Governance and Strategy Committee Chairperson

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Table of Contents

FOREWORD ....................................................................................................................................... i

BOARD ENDORSEMENT ...................................................................................................................... ii

1 THE SKILLS DEVELOPMENT CONTEXT ...........................................................................................1

1.1 BACKGROUND TO THIS SSP ........................................................................................................... 1

1.2 PROCESS FOLLOWED IN THE DEVELOPMENT OF THE SSP .................................................. 1

1.2.1 INFORMATION UTILISED ....................................................................................................... 1

1.2.2 SECTOR PARTICIPATION AND CONSULTATION ..................................................................... 2

1.3 POLICY CONTEXT FOR SKILLS PLANNING IN THE CHEMICAL SECTOR ................................. 3

1.3.1 GOVERNMENT INTERVENTIONS AIMED AT SKILLS DEVELOPMENT ..................................... 4

1.3.2 GOVERNMENT INTERVENTIONS AIMED AT ECONOMIC GROWTH AND DEVELOPMENT..... 9

1.3.3 MONITORING AND EVALUATION STRATEGIES ................................................................... 22

1.3.4 NEW AND UNFOLDING GOVERNMENT INTERVENTIONS ................................................... 23

1.4 STRUCTURE OF THE SSP .................................................................................................... 23

2. PROFILE OF THE SECTOR ........................................................................................................... 25

2.1 INTRODUCTION ................................................................................................................. 25

2.2 INDUSTRIAL COVERAGE .................................................................................................... 25

2.3 OVERVIEW OF THE SUBSECTORS IN THE CHEMICAL SECTOR ........................................... 27

2.3.1 BASE CHEMICALS ................................................................................................................ 27

2.3.2 PETROLEUM ........................................................................................................................ 28

2.3.3 FAST MOVING CONSUMER GOODS .................................................................................... 28

2.3.4 PHARMACEUTICALS ............................................................................................................ 29

2.3.5 EXPLOSIVES ......................................................................................................................... 29

2.3.6 FERTILISERS ......................................................................................................................... 29

2.3.7 SPECIALITY CHEMICALS ....................................................................................................... 29

2.3.8 SURFACE COATINGS ............................................................................................................ 29

2.3.9 GLASS .................................................................................................................................. 30

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2.4 ORGANISATIONS IN THE CHEMICAL SECTOR .................................................................... 30

2.4.1 EMPLOYERS ......................................................................................................................... 30

2.4.2 EMPLOYER AND INDUSTRY ORGANISATIONS ..................................................................... 33

2.4.3 Employee organisations ...................................................................................................... 34

2.4.4 Government departments involved with the sector .......................................................... 34

2.5 EMPLOYMENT IN THE SECTOR .......................................................................................... 34

2.5.1 Total employment ............................................................................................................... 34

2.5.2 Employment per subsector ................................................................................................. 34

2.5.3 Provincial distribution of employees .................................................................................. 35

2.5.4 Educational profile of employees in the sector .................................................................. 38

2.5.5 Equity profile of employees in the sector ........................................................................... 39

2.5.6 Age profile of employees in the sector ............................................................................... 43

2.6 SPECIAL CHARACTERISTICS OF THE SECTOR ..................................................................... 45

2.6.1 Regulatory environment ..................................................................................................... 45

2.6.2 Offshore operations ............................................................................................................ 45

2.6.3 Global integration ............................................................................................................... 45

2.6.4 Scientific base and dependence on research and development ........................................ 46

2.6.5 Transformation ................................................................................................................... 46

2.6.6 Health and safety ................................................................................................................ 48

2.6.7 Environment and pollution ................................................................................................. 49

2.6.8 Transportation .................................................................................................................... 50

2.7 CONCLUSIONS ................................................................................................................... 50

3. THE ECONOMIC PERFORMANCE OF THE SECTOR ....................................................................... 51

3.1 INTRODUCTION ................................................................................................................. 51

3.2 THE CHEMICAL SECTOR’S CONTRIBUTION TO THE NATIONAL ECONOMY ....................... 51

3.3 THE ECONOMIC PERFORMANCE OF THE CHEMICAL SECTOR ........................................... 52

3.3.1 Imports and exports ............................................................................................................ 52

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3.3.2 Growth in gross value added .............................................................................................. 52

3.4 FACTORS THAT INFLUENCE THE ECONOMIC PERFORMANCE OF THE SECTOR ................ 54

3.4.1 The availability and cost of raw materials .......................................................................... 54

3.4.2 International trends in chemical production ...................................................................... 54

3.4.3 Growth in export markets ................................................................................................... 55

3.4.4 Global economic growth ..................................................................................................... 55

3.4.5 Exchange rates .................................................................................................................... 55

3.4.6 The performance of other sectors of the economy ............................................................ 56

3.4.7 Consumer markets and consumer spending ...................................................................... 56

3.4.8 Administered, logistics and compliance costs .................................................................... 56

3.4.9 Government initiatives to stimulate the growth of the sector ........................................... 57

3.5 CONCLUSIONS ................................................................................................................... 58

4. THE DEMAND FOR SKILLS IN THE SECTOR .................................................................................. 59

4.1 INTRODUCTION ................................................................................................................. 59

4.2 TRENDS IN TOTAL EMPLOYMENT ..................................................................................... 59

4.3 THE OCCUPATIONAL COMPOSITION OF DEMAND ........................................................... 61

4.3.1 Employment in the main occupational groups ................................................................... 61

4.3.2 Employment in designated trades ...................................................................................... 62

4.3.3 Employment in green occupations ..................................................................................... 62

4.4 FUTURE DEMAND FOR SKILLS ........................................................................................... 64

4.4.1 Baseline employment ......................................................................................................... 65

4.4.2 Assumptions used in the model .......................................................................................... 65

4.4.3 Results of the demand projection model ........................................................................... 67

4.4.4 Changes in and limitations of the model ............................................................................ 70

4.5 FACTORS THAT INFLUENCE THE DEMAND FOR SKILLS IN THE SECTOR ............................ 71

4.5.1 Industry growth ................................................................................................................... 71

4.5.2 Government initiatives to stimulate sectoral growth ......................................................... 71

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4.5.3 Transformation imperatives ............................................................................................... 72

4.5.4 The need for R&D ................................................................................................................ 72

4.5.5 Technological development ................................................................................................ 72

4.5.6 Environmental legislation and regulations ......................................................................... 73

4.6 CONCLUSIONS ................................................................................................................... 73

5. THE SUPPLY OF SKILLS TO THE SECTOR ...................................................................................... 74

5.1 INTRODUCTION ................................................................................................................. 74

5.2 THE STOCK OF SKILLS ........................................................................................................ 74

5.2.1 Current employees .............................................................................................................. 74

5.2.2 Unemployed ........................................................................................................................ 75

5.3 THE SUPPLY OF NEW SKILLS TO THE SECTOR ................................................................... 76

5.3.1 General education and training .......................................................................................... 76

5.3.2 Further Education and Training .......................................................................................... 77

5.3.3 Higher education and training ............................................................................................ 82

5.3.4 Workplace learning ............................................................................................................. 87

5.3.5 Career guidance .................................................................................................................. 89

5.3.6 Maths and science education at school level ..................................................................... 89

5.3.7 The FET college sector ......................................................................................................... 90

5.3.8 The Higher Education Sector ............................................................................................... 90

5.3.9 Work integrated learning .................................................................................................... 91

5.3.10 Transition between education and the labour market ....................................................... 91

5.3.11 Lack of articulation .............................................................................................................. 92

5.3.12 Professional registration and Government Certificates of Competency (GCC) .................. 92

5.4 CHIETA INTERVENTIONS TO STIMULATE THE SUPPLY OF SKILLS TO THE SECTOR AND TO

ADDRESS SUPPLY-SIDE CONTRAINTS` ........................................................................................... 92

5.4.1 Establishing a credible institutional mechanism for skills planning .................................... 92

5.4.2 Increasing access to occupationally directed programmes ................................................ 94

5.4.3 Supporting institutes sectoral and occupational excellence (ISOEs) .................................. 95

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5.4.4 Running a bursary programme ........................................................................................... 95

5.4.5 Co-operating with universities and universities of technology .......................................... 95

5.4.6 Promoting growth of public FET college system that is responsive to sector, local,

regional and national skills needs and priorities ................................................................................ 96

5.4.7 Addressing the low level language and numeracy skills to provide access to additional

training 96

5.4.8 Encouraging better use of workplace-based skills development ....................................... 96

5.4.9 Encouraging and supporting co-operatives, small enterprises, worker initiated NGO’s

and community training initiatives ..................................................................................................... 96

5.4.10 Increasing public sector capacity for improved service delivery and supporting and

building of a developmental state ...................................................................................................... 97

5.4.11 Building career and vocational guidance ............................................................................ 97

5.4.12 Chamber specific responses to skills needs ........................................................................ 97

5.4.13 Provincial engagements ...................................................................................................... 98

5.5 CONCLUSIONS ................................................................................................................... 98

6. SKILLS NEEDS OF THE CHEMICAL SECTOR ................................................................................. 100

6.1 INTRODUCTION ............................................................................................................... 100

6.2 SKILLS SHORTAGES IN THE CHEMICAL SECTOR ............................................................... 100

6.3 GENERAL AND CROSS-CUTTING SKILLS NEEDS ............................................................... 106

6.3.1 Core chemical skills including specialist/contextual knowledge ...................................... 106

6.3.2 Management and leadership development ..................................................................... 106

6.3.3 Professional skills needs.................................................................................................... 107

6.3.4 Environment ...................................................................................................................... 107

6.3.5 Health and safety .............................................................................................................. 108

6.3.6 Recognition of Prior Learning (RPL) .................................................................................. 108

6.3.7 Foundational learning ....................................................................................................... 108

6.3.8 New skills and occupations ............................................................................................... 108

6.4 SKILLS REQUIRED FOR THE SUCCESSFUL IMPLEMENTATION OF STRATEGIC

INFRASTACTURE PROJECTS (SIPS) ............................................................................................... 109

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6.5 CONCLUSIONS ................................................................................................................. 112

7. CHIETA STRATEGIC OBJECTIVES ............................................................................................... 113

7.1 INTRODUCTION ............................................................................................................... 113

7.2 STRATEGIC ISSUES ARISING FROM THIS SSP ................................................................... 113

7.3 CHIETA’S STRATEGIC PRIORITIES..................................................................................... 114

7.4 SUBSECTOR PRIORITIES ................................................................................................... 116

7.4.1 Petroleum and Base Chemicals ......................................................................................... 116

7.4.2 Explosives and Fertilisers .................................................................................................. 117

7.4.3 Glass .................................................................................................................................. 118

7.4.4 Pharmaceuticals and FMCG .............................................................................................. 118

7.4.5 Speciality Chemicals and Surface Coatings ....................................................................... 119

7.5 CHIETA’s STRATEGIC PROGRAMMES .............................................................................. 119

7.6 CONCLUSION ................................................................................................................... 121

Commitment 1: To expand the level of training using existing facilities more fully ......................... 127

Commitment 2: To make internship and placement opportunities available within workplaces. ... 127

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. ......................................................................... 127

Commitment 4: To improve the funding of training and the use of funds available for training

and incentives on companies to train. .............................................................................................. 128

Commitment 6: To improve SETA governance and financial management as well as stakeholder

involvement. ...................................................................................................................................... 128

Commitment 7: To align training to the New Growth Path and improve Sector Skills Plans. ......... 128

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LIST OF TABLES

Table 2-1 Industrial coverage, subsectors and chambers of the Chemicals Sector ............................. 26

Table 2-2 Provincial distribution of employees according to subsector: March 2014 ........................ 37

Table 2-3 Race and gender profile of employees per occupational group: March 2014 .................... 42

Table 2-4 Fatalities in the Chemical Sector: 2007 to 2011................................................................... 49

Table 2-5 Recordable Incident Rate ..................................................................................................... 49

Table 3-1 The Chemicals Sector’s contribution to the South African economy: 2012 ......................... 51

Table 4-1 Average GVA and employment growth figures from the econometric model ..................... 66

Table 4-2 Average employment growth figures used in the CHIETA labour demand projection model

.............................................................................................................................................................. 66

Table 4-3 Mortality rates used in model .............................................................................................. 67

Table 4-4 People who will retire in the planning period and retirement rates used in model ........... 67

Table 4-5 Demand projections 2014 to 2020: baseline scenario......................................................... 68

Table 4-6 Demand projections 2014 to 2020: low growth scenario .................................................... 69

Table 4-7 Demand projections 2014 to 2020: high growth scenario .................................................. 70

Table 5-1 Grade 12 output data: 2008 to 2012 .................................................................................... 78

Table 5-2 Examination results of selected National Certificate subjects at FET colleges: November

2011 ...................................................................................................................................................... 80

Table 5-3: Examination results of selected National Certificate (Vocational) subjects at FET colleges:

November 2011 .................................................................................................................................... 81

Table 5-4 Number of national diplomas awarded in selected engineering fields: 2001-2012 ............ 84

Table 5-5 Number of first degrees* awarded in selected engineering fields: 2001-2012 .................. 84

Table 5-6 Number of diplomas and first degrees awarded in Chemistry and Pharmaceutical Science:

2001-2012 ............................................................................................................................................. 85

Table 5-7 Number of masters degrees awarded in selected engineering fields: 2001-2012 ............... 85

Table 5-8 Number of doctoral degrees awarded in selected engineering fields: 2001-2012 .............. 86

Table 5-9 Number of national diplomas and first degrees awarded in selected fields in Life Science:

2010 - 2012 ........................................................................................................................................... 86

Table 5-10 Trade tests completed: 2009 - 2013 .................................................................................. 88

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Table 6-1 Summary of vacancies in scarce skills occupations: 2014 ................................................. 101

Table 6-2 List of scarce skills in the Chemical Sector:2014 ................................................................. 102

Table 6-3 Scarce Skills for the Special Infrastructure Projects (SIPs) ................................................. 110

LIST OF FIGURES

Figure 2-1 The CHIETA subsectors in relation to the Chemical industry value chain .......................... 27

Figure 2-2 Subsectoral distribution of levy-paying organisations and levy-amounts paid: 2013/2014

.............................................................................................................................................................. 31

Figure 2-3 Levy-paying organisations according to province: 2013/2014 ........................................... 32

Figure 2-4 Levy-paying organisations according to size categories: 2013/2014 ................................. 32

Figure 2-5 Employees per subsector: March 2014 .............................................................................. 35

Figure 2-6 Provincial distribution of employees: March 2014 ............................................................. 35

Figure 2-7 Educational levels of employees: March 2014 ................................................................... 38

Figure 2-8 Comparison of educational distribution (NQF levels) of employees in the Chemical Sector

and employed population in South Africa ............................................................................................ 39

Figure 2-9 Race distribution of employees: March 2014 ...................................................................... 40

Figure 2-10 Gender distribution of employees: March 2014 .............................................................. 40

Figure 2-11 Female employees in the Chemical Sector by race: March 2014 ...................................... 41

Figure 2-12 Percentage employees with disabilities per subsector: March 2014 ............................... 43

Figure 2-13 Age distribution of employees: March 2014 .................................................................... 44

Figure 2-14 Age distribution of employees by subsector: March 2014 ............................................... 44

Figure 2-15 Race and gender profile of the Chemical Sector compared to the profile of all companies

that submitted EE reports ..................................................................................................................... 46

Figure 2-16 Comparison of race of employees in the Chemical Sector and employed population of

South Africa ........................................................................................................................................... 47

Figure 3-1 Imports and Exports of the Chemical Sector 2003 - 2013 .................................................. 52

Figure 3-2 Economic performance of the Chemical Sector and subsectors: 2003 - 2013 ................... 53

Figure 4-1 Total employment in the Chemical Sector from 1970 to 2013 ........................................... 60

Figure 4-2 Skills composition of the Chemical Sector: 1970 to 2013 ................................................... 60

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Figure 4-3 Employment per occupational group: March 2014 ............................................................. 61

Figure 4-4 Number of employees in designated trades: March 2014 .................................................. 62

Figure 4-5 Number of employees in ‘green’ occupations: March 2014 ............................................... 64

Figure 5-1 Percentage of employees who received training according to occupational category:

2013/ 2014 ............................................................................................................................................ 75

Figure 5-2 Components of the skills development system ................................................................... 76

Figure 5-3 Grade 12 Mathematics and Physical Sciences achievement rates: 2008-2012 .................. 79

Figure 5-4 Enrolments and achievements on CHIETA qualifications (learnerships excluded):2003 to

2013 ...................................................................................................................................................... 82

Figure 5-5 Learnership enrolments and achievements: 2003 to 2013 ................................................ 87

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ACRONYMS AND ABBREVIATIONS

ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

API Active Pharmaceutical Ingredient

AQP Assessment Quality Partners

ARV Antiretroviral

ATR Annual Training Report

BBBEE Broad-Based Black Economic Empowerment

CAIA Chemical and Allied Industries' Association

CEE Commission for Employment Equity

CHIETA Chemical Industries Sector Education and Training Authority

CPD Continuing Professional Development

CTL Coal-to-Liquid Technology

DBE Department of Basic Education

DHET Department of Higher Education and Training

DEA Department of Environmental Affairs

DME Department of Minerals and Energy

DMR Department of Mineral Resources

DoE Department of Energy

DoH Department of Health

DoL Department of Labour

DQP Development Quality Partners

DST Department of Science and Technology

DTTC Decentralised Trade Test Centre

dti Department of Trade and Industry

EAP Economically Active Population

EE Employment Equity

EU European Union

FET Further Education and Training

FETC Further Education and Training Certificate

FLC Foundational Learning Competency

FMCG Fast Moving Consumer Goods

GDP Gross Domestic Product

GET General Education and Training

GTL Gas-to-Liquid Technology

HDI Historically Disadvantaged Individuals

HEI Higher Education Institution

HEMIS Higher Education Management Information System

HET Higher Education and Training

HETC Higher Education and Training Certificate

HIV Human Immunodeficiency Virus

HRDS Human Resource and Development Strategy

IDC Industrial Development Council

IPAP Industrial Policy Action Plans

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IRP Integrated Resource Plan

ISOE Institute of Sectoral or Occupational Excellence

LFC Liquid Fuels Charter

MTSF Medium Term Strategic Framework

NAMB National Artisan Moderator Body

NADSC National Artisan Development Support Centre

NSFAS National Student Financial Aid Scheme

Nedlac National Economic Development and Labour Council

NC(V) National Certificate (Vocational)

NDP National Development Plan

NGP New Growth Path

NIPF National Industrial Policy Framework

NQF National Qualifications Framework

NSC National Senior Certificate

NSDS National Skills Development Strategy

OFO Organizing Framework of Occupations

PESTEL Political, Economic, Social, Technological, Environmental and Legislative

PIC Public Investment Corporation

PIVOTAL Professional, Vocational, Technical and Academic Learning

PG Dip/Cert Post Graduate Diploma / Certificate

QCTO Quality Council for Trades and Occupations

QLFS Quarterly Labour Force Survey

R&D Research and Development

RPL Recognition of Prior Learning

SAPIA South African Petroleum Industry Association

SAQA South African Qualifications Authority

SARB South African Reserve Bank

SARS South African Revenue Services

SATN South African Technology Network.

SDA Skills Development Act

SET Science, Engineering and Technology

SETA Sector Education and Training Authority

SIC Standard Industrial Classification

SIP Special Infrastructure Project

SMME Small, medium-sized, and micro-enterprises

SSP Sector Skills Plan

StatsSA Statistics South Africa

UG Dip/Cert Under Graduate Diploma / Certificate

UIF Unemployment Insurance Fund

UoT University of Technology

YEA Youth Employment Accord

WSP Workplace Skills Plan

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SYNOPSIS

The Chemical Industries Sector Education and Training Authority (CHIETA) has prepared this Sector Skills Plan (SSP) update in accordance with the requirements of the Department of Higher Education and Training (DHET). One of the requirements is to provide a synopsis, addressing the following areas:

What Policies have been identified as the key policy drivers in the Sector Skills Plan?

What have been the major shifts within the sector?

What is the methodology used to determine these?

What skills needs have been identified in the sector, including scarce and critical skills?

How are these needs going to be addressed (planned interventions and resources allocation)

What skills needs are going to be addressed through interventions that are going to yield results in the short term and long term.

The SSP has been prepared within the context of the most recent Government policies, plans and initiatives to stimulate the South African economy, improve the skills base of the country and create employment. Cognisance was specifically taken of the National Development Plan as a launch pad and blueprint for socio- economic development strategy for the country, the National Skills Development Strategy (NSDS) III, the National Skills Accord, the Youth Employment Accord (YEA), White Paper for Post-School Education and Training, the Quality Council for Trades and Occupations (QCTO) policies, and various regulations, such as the Grant Regulations (released 03 December 2012, Gazette 35940). Furthermore, the SSP has been developed within the context of national economic growth and development policies and strategies, specifically the National Development Plan (NDP), Industrial Policy Action Plan (IPAP) that provides for interventions in the cosmetics and pharmaceutical industries and Government’s infrastructure development plans that provide, among other things, for the building of a new oil refinery. These projects may stimulate the growth of the Chemical Sector, but at the same time they need to be supported by skills development.

The information presented in this SSP is the result of an extensive research process as well as stakeholder engagements. The research includes an analysis of the WSP/ATR submissions to the CHIETA in March 2014 which represent approximately 84% of the workers in the sector. Through weighting this data has been extrapolated to sector totals. Various other data sources were also used, for example economic data from the national accounts, the Quarterly Labour Force Survey, HEMIS and FETMIS information from the Department of Higher Education and Training, CHIETA commissioned research projects and various other research documents. Stakeholder consultations included the following:

Discussions in the five CHIETA chambers: Skills planning is a core constitutional function of the five CHIETA chambers, which consist of employers, trade unions, government departments and critical interest groups: The chambers, through meetings and workshops, have played a central role in the updating of the SSP.

Subsector skills plans. In 2013 CHIETA developed subsector skills plans for each of the nine subsectors that comprise the Chemical Sector: These documents provide detailed analyses of each of the subsectors. These analyses formed the basis of the information used in this SSP update.

Regional forums: The SSP update was part of the agenda for the regional skills forums held in June 2014 in Gauteng (for Gauteng and the inland provinces), KZN, Eastern Cape and Western Cape (including Northern Cape). The regional skills forums were attended by employers, trade unions, private and public education and training providers, critical interest groups and CHIETA staff.

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A strategic planning workshop of the Governing Authority provided valuable strategic input into the updating of the SSP and the strategic plan.

The Research and Skills Planning Committee guided the development of the SSP update and recommended its approval to the relevant Governing Authority structures.

Feedback received from the Department of Higher Education and training and peers in the SETA Goods Cluster provided in October 2013 has been considered and addressed in so far as is possible.

The Chemical Sector is a significant role player in the South African economy and in 2013 it contributed 4.4% to GDP. However, the sector is capital intensive and while in 2013 it accounted for 6.0% of the total capital stock, it contributed only 1.2% of total employment in the country. South Africa is currently a net importer of chemical products and in 2013 the value of imports was almost double the value of exports. The sector was hard hit by the recent recession and in 2009 it contracted by 7.9%. However, it recovered and grew significantly (more than 5% per year) over the period 2010 to 2012. In 2013 growth dropped again to only 1.1%.

On 31 March 2014 there were 1 924 levy paying companies in the Chemical Sector and they employed approximately 158 000 people. Employment in the sector has been declining steadily over the last two decades with investments in capital equipment largely replacing labour. This reduction in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards higher level skills.

The skills shortages experienced in the sector span most of the occupational groups, but are most acute among professionals and artisans. Skills shortages are monitored by the CHIETA through the WSP/ATR submissions which require employers to report on scarce skills experienced by their organisations as well through stakeholder engagements. While the WSP/ATR submissions provide quantitative perspectives on skills shortages, the stakeholder engagements provide an in-depth and qualitative understanding.

The skills shortages that are currently experienced are mainly the result of a number of constraints experienced on the supply-side of the market. These include insufficient career guidance, the poor performance of the basic education system in terms of maths and science, constraints experienced in the FET college- and higher education and training sectors and challenges faced in respect of finding workplace placements for learning programmes that require work experience. Transformation of the sector (especially at professional and managerial level) remains a challenge for the sector.

This SSP update includes an analysis of the mismatches that exist in the Chemical Sector labour market that manifest in skills shortages – also known as “scarce skills”. Although employers identified scarce skills across a plethora of occupations, not all these can be regarded as truly scarce. A shortened list of scarce skills consisting of only 32 occupations – most of which are professional occupations or registered trades – is included. In most instances these occupations require maths and science for entry into the study programmes and a pre-entry training period of four years or longer. Many of the occupations also require workplace training as part of the training period. The scarce skills are clearly the result of the supply-side constraints highlighted in the SSP.

Skills shortages are, however, not only a matter of numerical imbalances. In many instances they have a strong qualitative component. That means that employers not only need people with the necessary qualifications, but they are looking for specific specialised skills – many of which can only be developed in the work environment. In addition, the sector also needs to attend to a number of cross-cutting and general skills (critical skills) – many of which involve large portions of the existing workforce. These skills include: Core chemical skills including specialist/contextual knowledge and artisan development, management development, particularly in relation to HDIs, professional skills,

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environmental skills, health and safety, foundational learning, RPL, and new and emerging skills. It is important that the CHIETA and industry work together in solving the skills challenges experienced in the Sector.

The SSP includes a list of occupations identified as scarce in relation to the SIPS. Some of these occupations are also relevant to the Chemical Sector and will receive support from the CHIETA. The CHIETA will support the development of welders in particular.

The CHIETA has, over the last decade, developed various interventions to address the supply-side constraints, to ensure a steady flow of new skills onto the market and to provide for the up-skilling of workers in the sector. Many of these interventions will continue in the period covered by this SSP.

Based on the analysis presented in this SSP, the CHIETA has identified five strategic priorities that will guide its interventions over the next five years. These priorities are:

Enhancing the skills of the existing workforce of the Chemical Sector.

Supporting skills development of new entrants to the Chemical Sector.

Responding to changing sectoral needs and priorities.

Strengthening and expanding strategic partnerships to maximise sustainability and impact of skills development interventions.

Supporting national imperatives in relation to skills development, with emphasis on the Chemical Sector.

The priorities will be attained through 10 strategic objectives which largely mirror the NSDS III goals. These objectives are:

i. Establishing a credible institutional mechanism for skills planning; ii. Increasing access to occupationally directed programmes;

iii. Promoting the growth of a public Further Education and Training (FET) college system that is responsive to skills needs and priorities at sector-, local-, regional- and national levels;

iv. Addressing the low level of youth and adult language and numeracy skills to enable additional learning;

v. Encouraging better use of workplace-based skills development; vi. Encouraging and supporting cooperatives, small enterprises, worker-initiated-, NGO- and

community-training initiatives; vii. Increasing public sector capacity for improved service delivery and supporting the building of

a developmental state; viii. Building career and vocational guidance;

ix. Support of Medium term Strategic Framework priorities; x. Administration (Governance).

The targets and resource allocation for these objectives are contained in the CHIETA’s Strategic Plan and its Annual Performance Plan.

Whilst CHIETA has a number of interventions in place across the skills development value chain, key to addressing the skills challenges in the Sector and the country is facilitating and consolidating partnerships with government industry, public providers and other relevant institutions in order to ensure long term sustainability and maximum impact.

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EXECUTIVE SUMMARY

Introduction

The Chemical Industries Sector Education and Training Authority (CHIETA) has prepared this Sector Skills Plan (SSP) update in accordance with the requirements of the Department of Higher Education and Training (DHET). The policy context for skills planning includes the National Skills Development Strategy (NSDS) III, the National Skills Accord, the National Youth Employment Accord (NYEA), the White Paper for Post-School Education and Training, the Quality Council for Trades and Occupations (QCTO) policies, and various regulations, such as the Grant Regulations (released 03 December 2012, Gazette 35940). Furthermore, the SSP has been developed within the context of a number of important skills development and national economic growth and development policies and strategies. In particular, the National Development Plan emphasises the importance of science and technology as the keys to development. Innovation is the most important driver of the kind of technology-based growth that is associated with higher living standards. The Chemical Sector is at the forefront of the drive towards an ‘innovation economy’ and the improvement of the skills of our workforce is imperative for the achievement of this.

Key to the Chemical Sector’s future growth and development are the National Development Plan (NDP) and Government’s Industrial Policy Action Plan (IPAP) that provides for interventions in the cosmetics and pharmaceutical industries and the infrastructure development plans that provide for the building of a new oil refinery. These projects may stimulate the growth of the Chemical Sector, but at the same time they need to be supported by skills development.

The information presented in this SSP has been drawn from a number of sources. In relation to data on the workplaces in the sector, the CHIETA has used the information from Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs). The CHIETA’s format for the WSPs and ATRs exceeds the minimum legislated requirements, specifically in that, as from the 2012/2013 Mandatory Grants cycle, employers have been submitting individual employee records against the Organising Framework for Occupations (OFO) codes - referred to as source data. The decision was taken to adopt the source-data approach because the CHIETA sees the information contained in the WSPs/ATRs as critical in providing detailed baseline statistical information on the sector. The WSPs/ATRs represent more than 80% of employees in the sector and the very detailed data submitted, has enabled the CHIETA to undertake a much more detailed and accurate analysis of the sector than before.

This source data was supplemented with other sector specific and national data; such as Quantec 2013 data and data from the Quarterly Labour Force Surveys. Other national data sources used include, for example, employment equity reports published by the Department of Labour, the Higher Education Management Information System (HEMIS) and data from Further Education and Training Institutions, maintained by the DHET.

In addition to the quantitative data sources outlined above, the CHIETA has also undertaken a range of research projects, which contributed to the overall understanding of the Chemical Sector. Several of these project reports were used in the preparation of this SSP update and they were augmented by research conducted by government departments, national research institutions and industry bodies.

More qualitative information used in this SSP update was obtained through consultation with sector stakeholders. The CHIETA has five chambers, which consist of employers, trade unions, government departments and critical interest groups. Skills planning is a core constitutional function of the chambers that meet regularly, at least quarterly. The chambers played a central role in the updating

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of the SSP. The SSP update was also part of the agenda for the regional skills forums held in June 2014 in Gauteng (for Gauteng and the inland provinces), KZN, Eastern Cape and Western Cape (inclusive of Northern Cape). The regional skills forums were attended by employers, trade unions, private and public education and training providers, critical interest groups and CHIETA staff.

A strategic planning workshop of the Governing Authority provided valuable strategic input into the updating of the SSP and the strategic plan.

CHIETA’s involvement with government departments on specific skills needs, such as skills needed to support Dti IPAP projects on pharmaceuticals and cosmetics, and scarce and critical skills needs of the Department of Energy related to the Chemical Sector, have been factored into the SSP.


Feedback received from the Department of Higher Education and Training and peers in the SETA Goods Cluster provided in October 2013 has been considered and addressed in so far as is possible.

Profile of the sector

In the 2013/14 financial year a total of 1 924 companies paid skills development levies to the CHIETA. This figure increased by 139 from the previous financial year. Although only 39% of these companies submitted workplace skills plans (WSPs) to the CHIETA, these companies employ, approximately 84% of the workers in the sector.

At the end of March 2014 all the organisations in the sector employed approximately 158 000 people. Even though the Petroleum Subsector comprised only 10% of the total number of levy paying companies in the sector it contributed 45% of the levies paid. The majority (80%) of the companies in the Chemicals Sector are classified as either micro1 or small. The high prevalence of micro and small companies in the sector has major implications for the nature of the support which the CHIETA is required to provide to workplaces in relation to skills development. The Petroleum Subsector is a particular challenge in relation to the size of its enterprises as it consists of a few very large firms and a number of small ones.

More than a quarter (29%) of the workers in the Sector is employed in the Petroleum Subsector. High concentrations of employees across the different subsectors work in Gauteng, except for the Petroleum Subsector; 40% of the employees in the Petroleum Subsector work in Mpumalanga. Employees in the Chemical Sector are better educated than the total South African employed population. Almost half (42%) of the workers in the Chemical Sector hold qualifications above NQF Level 4 compared to only 21% of all employed people in South Africa. The age distributions of the different subsectors are very similar and the average age of workers in the sector is 41. Thirteen per cent of the workers in the Chemical Sector are close to retirement age (between the ages of 55 and 64)

In terms of equity just over half (54%) of the employees are African. When compared to the employed population of South Africa it is clear that White and Indian people are relatively over-represented in the Chemical Sector. African women are particularly under-represented. At the end of March 2014 there were 1 245 employees with disabilities working in the Chemical Sector. This equates to 0.8% of all employees in the sector.

1 For the purposes of this SSP companies with fewer than 20 employees are classified as “micro” and companies with 20 to

49 employees are classified as “small”.

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Economic performance of the sector

The Chemical Sector is a significant role player in the South African economy and in 2013 it contributed 4.4% to GDP. However, the sector is capital intensive and while in 2013 it accounted for 6.0% of the total capital stock, it contributed only 1.2% of total employment in the country. South Africa is currently a net importer of chemical products and in 2013 the value of imports was almost double the value of exports. The sector was hard hit by the recent recession and in 2009 it contracted by 7.9%. However, it recovered and grew significantly (more than 5% per year) over the period 2010 to 2012. In 2013 growth dropped again to only 1.1%.

The economic performance of the sector is affected by various factors including the availability and cost of raw materials, international trends in chemical production, growth in export markets, global economic growth, exchange rates, the performance of other sectors of the economy, consumer markets and consumer spending, administered, logistics and compliance costs and Government initiatives to stimulate the growth of the sector.

The demand for skills in the sector

The demand for labour in absolute numbers in the Chemical Sector has been declining steadily over the last two decades with investments in capital equipment being largely used to replace labour. This reduction in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards the higher level skills.

In March 2014, 20% of the workers in the sector worked as technicians and associate professionals, 15% as professionals and 12% as managers. These are the occupational groups that mostly require people with tertiary education and together they formed 47% of the employment in the sector. Clerical support workers constituted 11% of employment and service and sales workers only 2%. The occupational group craft and related trades workers includes artisans and this group formed 6% of employment. The occupational group plant and machine operators included 18% of the workers in the sector and elementary occupations 14%. Learners formed 2% of the workforce. The sector employed 10 064 people in 64 designated trades. The largest group of artisans was mechanical fitters (2 078), followed by electricians (1 196) and millwrights (1 114). At the end of March 2014 there were about 17 500 employees in the Chemical Sector working in occupations that are identified in the OFO 2013 as ‘green’ occupations.

For the purpose of the SSP a demand projection model was developed for the Chemical Sector. The purpose of the projection of future demand is to provide the sector with a broad understanding of the numbers of people that will have to be trained to meet sector needs. The demand projections provide for new demand that will result from sectoral growth and employment creation, as well as for replacement demand that will occur because of mortality, emigration and the retirement of employees. The demand projection model was developed to project demand at a detailed occupational level. Three employment scenarios were prepared; a low growth-, a baseline-, and a high growth scenario.

Under all three scenarios employment in the Base Chemicals, Fertilisers and Glass subsectors is expected to decline. Some of the factors that may have an influence on the demand for skills in the sector are industry growth and developments, government’s initiatives to stimulate sectoral growth, transformation imperatives, research and development, and technological development.

The supply of skills to the sector

Supply is viewed from different perspectives: new supply (the output from basic education, FET colleges and HET institutions; and current supply (the development of skills among those that are

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already employed within the Chemical Sector as well as the pool of unemployed but available to work for the sector).

In respect of the new supply to the sector there has been substantial growth in the numbers of new graduates from universities and universities of technology in certain engineering fields. In terms of average annual output for national diplomas, growth is reported at 7% for diplomas in chemical engineering and technology and 6% for first degrees in the same field.

Despite these positive growth trends, increases have not yet been sufficient to meet the needs of the national economy and the Chemical Sector in particular. In order to ensure future growth it will be necessary to support higher education institutions through a variety of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace-training opportunities for students from the universities of technology.

The output from the school system stays a concern in respect of the following: inadequate (in terms of quantity and quality) supply of school leavers with Mathematics and Physical Science passes that can pursue studies to become engineers, technologist and technicians (at HET level) and artisans (at FET level); and inadequate education levels of the general workforce that enters the Chemical Sector without previous training. The supply of new skills from the FET sector into the Chemical Sector has traditionally been very limited. However, government’s recent focus on increasing both the quality and quantity of output from FET colleges may result in these institutions playing more significant roles in the supply of skills to the sector.

Current supply includes the group of people that are presently employed in addition to those that are unemployed but that are available for work. The training and development of the current workforce forms a critical aspect of skills supply. In 2013/2014 training opportunities were afforded to 47% of employees in the Chemical Sector. In total about 250 000 training opportunities were afforded to the employees (one employee could have accessed to more than one training opportunity). A large proportion of these training opportunities are short courses, skills programmes and induction programmes. The training also includes international courses that are offered in areas of specialisation where there is no training available locally and e-learning programmes.

Since its inception the CHIETA has developed a host of interventions and mechanisms to address the skills needs of the sector and to overcome skills shortages. The skills development priorities and plans for the coming five years build on the work that has been started in previous years. The CHIETA interventions span the whole skills development pipeline and include interventions at school level – especially in respect of maths and science teaching, support to FET colleges, support to and co-operation with higher education and training institutions, artisan development, qualification development and quality assurance, institutes or centres for training excellence, HIV/AIDS interventions, chamber specific responses to skills needs, partnerships with government departments, provincial engagements, support to rural learners, support to small and micro enterprises, the recognition of prior learning and pivotal programmes to address critical skills needs. The CHIETA has also made good progress in the development of a credible mechanism for skills planning. The skills planning processes in the sector include various research projects, the collection of WSP/ATR data according to individual employee records (source data) and the in-depth analysis of this data, a research colloquium and several partnerships with research institutions.

The skills needs of the sector

The information on skills shortages was obtained by analysing the results set out in the WSPs submitted in March 2014. Employers had to identify the occupations in which they experienced

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scarcity (i.e. when people are available in the labour market but do not meet other employment criteria of the company such as employment equity considerations or cannot be attracted due to the geological location of the company and/or when people are generally in short supply in the labour market). For all the occupations in which scarcity was experienced employers also had to indicate how many vacancies were available at the time they completed the WSPs. At that time 26% of the employers that submitted WSPs reported that they experienced skills shortages in the market in the sense that they could not find suitable people to fill positions in their organisations.

The shortages of skills in the manager, professional, technician and associate professionals, and skilled and trade workers occupational categories were evident from the vacancy data. Although the subsectors in the Chemical Sector have very specific needs in some instances, most of them share their needs for: managers in the production and sales and marketing fields; professionals in the chemistry, engineering, and sales of industrial and pharmaceutical products fields; technicians that can work at the level of chemical plant coordinators; and various artisans. The sector has to compete with the broader manufacturing and other sectors for some of these skills and is affected by national skills shortages.

Apart from skills shortages there are also other skills needs to attend to a number of cross-cutting and general skills (critical skills) – many of which involve large portions of the existing workforce. These skills include: Core chemical skills including specialist/contextual knowledge and artisan development, management development, particularly in relation to HDIs, professional skills, environmental skills, health and safety, foundational learning, RPL, and new and emerging skills. It is important that the CHIETA and industry work together in solving the skills challenges experienced in the Sector.

The CHIETA supports a number of occupations related to the SIPs for the unemployed, particular focus is been paid to welders as it has been identified by the sector as a scarce skills, stakeholder engagements indicated that the scarcity is further experienced at specialisation level.

CHIETA strategic priorities

Following an analysis of the sector profile, and the skills demand and supply within the sector, the CHIETA has determined strategic priorities and a set of sector specific skills development objectives and goals that will meet sector needs. In the development of these priorities, objectives and goals various national Government imperatives were taken into consideration.







The priorities will be attained through 10 strategic objectives which largely mirror the NSDS III goals. These objectives are:

xi. Establishing a credible institutional mechanism for skills planning; xii. Increasing access to occupationally directed programmes;

xiii. Promoting the growth of a public Further Education and Training (FET) college system that is responsive to skills needs and priorities at sector-, local-, regional- and national levels;

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xiv. Addressing the low level of youth and adult language and numeracy skills to enable additional learning;

xv. Encouraging better use of workplace-based skills development; xvi. Encouraging and supporting cooperatives, small enterprises, worker-initiated-, NGO- and

community-training initiatives; xvii. Increasing public sector capacity for improved service delivery and supporting the building of

a developmental state; xviii. Building career and vocational guidance;

xix. Support of Medium term Strategic Framework priorities; xx. Administration (Governance).

The targets and resource allocation for these objectives are contained in the CHIETA’s Strategic Plan and its Annual Performance Plan.

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1 THE SKILLS DEVELOPMENT CONTEXT

1.1 BACKGROUND TO THIS SSP

In terms of the Skills Development Act (Act 97 of 1998) (SDA), the CHIETA, along with all other SETAs, are required to prepare a Sector Skills Plans (SSPs) within the framework of the National Skills Development Strategy (NSDS).

On 30 April 2010 the Minister of Higher Education and Training, in consultation with the National Skills Authority, released the first draft framework for the National Skills Development Strategy 2011/12 to 2015/16 (NSDS III) for comment and response from stakeholders.

According to this document, all Sector Education and Training Authorities (SETAs) were required to submit sectoral analyses to the Department of Higher Education and Training (DHET) that were to follow broad guidelines given in the framework document. CHIETA submitted a sector analysis of the Chemical Sector by the due date of 30 June 2010. The process continued and a draft SSP was submitted by the CHIETA to the DHET on 30 September 2010 and a final version on 16 February 2011, as required.

SETAs are required to update their SSPs every year. This is the third annual SSP update for the NSDS III period and covers a five year period from 2015 to 2020. The main purpose of the SSP is described in the guideline document issued by DHET on 23 June 2010, entitled ‘Department of Higher Education and Training – Guide to the Process and Time Frames for Developing Sector Skills Plans and the NSDS III’. According to this guideline the purpose of the SSP is to:

• Determine skills development priorities after an analysis of the skills demand, trends and supply issues within the sector.

• Identify a set of sector specific (skills development) objectives and goals that will meet sector needs, economic or industrial growth strategies, and meet scarce and critical skills (needs) in the sector.

• Identify strategies to address these objectives and goals. • Identify activities that will support these strategies. • Report on performance in relation to these objectives and goals.

The SSP is a strategic document that guides the sector in relation to skills development. It provides the basis for- and should be considered in conjunction with the Strategic Plan.

1.2 PROCESS FOLLOWED IN THE DEVELOPMENT OF THE SSP

INFORMATION UTILISED 1.2.1

No single database currently provides a complete and comprehensive profile of the Chemical Sector as it has been defined for the purposes of the Skills Development Act, and for this reason it was necessary to use a range of data sources in the development of this SSP and in the current update. In all cases the most recent and up to date datasets and information available was utilised.

a) Workplace Data

The CHIETA’s format for Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) exceeds the minimum legislated requirements. The decision was taken to adopt this approach, because the CHIETA sees the information contained in the WSPs/ATRs as critical in providing detailed statistical information on the sector. The WSP/ATR information has been captured in an electronic data

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system and analysed. Quality data is recognised as core and central to good skills planning, the CHIETA, through the chambers and as part of its skills development mandate, made a concerted effort to improve the quality of data contained in the WSPs and ATRs. Correct occupational categorisation and mapping of occupational titles used in the sector to the OFO is a key aspect of strengthening the mechanism for skill planning. For this reason the occupational profiles of key technical and support occupations were revised and updated. This resulted in the CHIETA Occupations Handbook which contains descriptions of 141 occupations. During the preparation and submission of WSP and ATR data CHIETA staff engaged with companies in the sector on a continuous basis and provided support and capacity building on the interpretation and utilisation of the OFO.

The organisations that submitted WSPs/ATRs for the financial year 2014/15 represent only 39% of the total number of levy payers in the sector but they paid 89% of the total levy amount paid to the CHIETA. It is estimated that that they employ 84% of the employees in the sector. The WSP/ATR dataset is therefore regarded as the most comprehensive and accurate information on employment in the Chemical Sector. Furthermore, in order to compensate for the companies that did not submit mandatory grant applications, the data of those that did submit were weighted and thus extrapolated to sector totals. The methodology used to calculate the weights is described in Annexure A.

b) Other Data

National Accounts data (supplied by Quantec) were used in relation to the economic performance of the sector. Other national data sources used, included the Quarterly Labour Force Survey (QLFS) published by Statistics South Africa and the Higher Education Management Information System (HEMIS) maintained by the DHET.

In addition to the quantitative data sources outlined above, the CHIETA has also undertaken a range of research projects, which contributed to the overall understanding of the Chemical Sector. Several of these project reports were used in the preparation of this SSP update and they were augmented by research conducted by government departments, national research institutions and industry bodies.

SECTOR PARTICIPATION AND CONSULTATION 1.2.2

Skills’ planning is a core constitutional function of the five CHIETA chambers, which consist of employers, trade unions, government departments and critical interest groups. The chambers meet regularly, at least quarterly, to carry out their mandate.

The role of the chambers is to:

Consult with the nine subsectors of the Chemical Sector in areas of skills development and planning. The objective of such consultation is to compile a SSP for the sector that takes into consideration areas of skills demand, skills supply, scarce and critical skills and a strategic plan.

Facilitate and participate in the development of the SSP reflecting the skills requirements of the sector and the sub sectors.

Submit a chamber skills plan, qualifications matrix and contributing towards a critical/scarce skills list for the relevant subsector(s).

Monitor the implementation of the chamber skills plan in support of SSP.

Identify and assist where possible with relevant research projects undertaken by the CHIETA in support of the SSP.

Review and make recommendations of the SSP process to the Governance structures via the Research and Skills Planning Committee.

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The chambers, through meetings and workshops, have played a central role in the updating of the SSP.

In 2013 CHIETA developed subsector skills plans for each of the nine subsectors that comprise the Chemical Sector. These documents provide detailed analyses of each of the subsectors. These analyses formed the basis of the information used in this SSP update. (The nine subsector skills plans will be updated with the recent 2014 data available.)

In June 2013 workshops were held with representatives of each of the nine subsectors. The workshops covered the following topics:

• The skills planning process and chambers’ responsibilities in this regard. • The profiles of the subsectors. • Economic growth of the subsectors and factors that influence the growth of the subsectors. • The impact of government policies, strategies and legislation. • The demand for skills in the respective subsectors. • The supply of skills and supply-side challenges and constraints. • Skill shortages. • Key interventions taking place and needed in the respective subsectors.

In addition, the SSP update was part of the agenda for the regional skills forums held in June 2013 in Gauteng (for Gauteng and the inland provinces), KZN, Eastern Cape and Western Cape (inclusive of Northern Cape). The regional skills forums were attended by employers, trade unions, private and public education and training providers, critical interest groups and CHIETA staff.

In addition, in provinces where regional skills forums were held the Premier’s Offices presented and engaged with CHIETA stakeholders on the provincial skills development strategies and priorities. Further engagements, with the aim of concretising the partnership between CHIETA and the provinces have been held.

The SSP update for 2014 followed a similar process to the 2013 update, and the work undertaken in 2013 laid the basis but was enriched for the 2014 update.

CHIETA’s involvement with government departments on specific skills needs, such as skills needed to support Dti IPAP projects on pharmaceuticals and cosmetics, and scarce and critical skills needs of the Department of Energy related to the Chemical Sector, have been factored into the SSP.


Feedback from the Department of Higher Education and Training and peers in the SETA Goods Cluster to be provided in August 2014 will be considered and addressed in so far as is possible.

1.3 POLICY CONTEXT FOR SKILLS PLANNING IN THE CHEMICAL SECTOR

Skills’ planning in the SETA environment takes place within the context of government policies and plans to improve the skills base of the country and to uplift and stimulate the economy. The most important policies relevant to skills planning by the CHIETA are outlined in this section. Skills interventions planned for the period covered by this SSP update will aim to address the skills development needs of the Chemical Sector, and at the same time support the various government policies, plans, strategies, projects and programmes.

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The government initiatives are discussed under three headings: Interventions aimed specifically at skills development, those aimed at economic and social development, and lastly those aimed at monitoring and evaluation.

GOVERNMENT INTERVENTIONS AIMED AT SKILLS DEVELOPMENT 1.3.1

The SDA provides an institutional framework to devise and implement national, sector and workplace strategies to develop and improve the workforce. A core function of SETAs is to develop and implement a SSP within the framework of the National Skills Development Strategy (NSDS).

The NSDS III falls under the umbrella of the second Human Resources Development Strategy for South Africa (HRDSSA II). In support of the HRDSSA II, SSPs need to reflect a commitment to: addressing priority skills shortages; developing sufficient skills to meet social and economic development demands; improving universal access to quality basic education; developing skills that assist in reducing poverty and unemployment; focusing on skills development among the youth; improving national technological and innovation capacity for enhanced national economic competitiveness; developing skills for improved public sector capacity; and establishing effective and efficient planning capabilities in respect of skills development2.

NSDS III further advances the drive to bring alignment between the supply and demand for labour in the South African labour market. It represents an explicit commitment to encourage the linking of skills development to career paths, career development and promoting sustainable employment and in-work progression.

NSDS III has the following eight broad goals:

i. Establishing a credible institutional mechanism for skills planning. ii. Increasing access to occupationally directed programmes.

iii. Promoting the growth of a public further education and training (FET) college system that is responsive to skills needs and priorities at sector, local, regional and national levels.

iv. Addressing the low level of youth and adult language and numeracy skills to enable additional learning.

v. Encouraging better use of workplace-based skills development. vi. Encouraging and supporting cooperatives, small enterprises, worker-initiated initiatives,

non-government organisations (NGOs) and community training initiatives. vii. Increasing public sector capacity for improved service delivery and supporting the building of

a developmental state. viii. Building career and vocational guidance.

In addressing these issues, NSDS III will be guided by and measured against the following seven developmental and transformation imperatives: race, class, gender, geography, age, disability and the human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS) pandemic.

In order to achieve the skills development imperatives, NSDS III has the following pillars:

• Sector strategies (aligned to government and industry development strategies), programmes and projects developed with and supported by sector stakeholders. The DHET will play a leading role in forging a closer working relationship and collective identification of skills development priorities amongst all the key institutional players in the education and training system.

2Department of Higher Education and Training. (2011). National Skills Development Strategy III.

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• Relevant sector-based programmes addressing the needs of unemployed people and first-time entrants to the labour market will be developed and piloted by SETAs, with roll-out being planned, managed and funded, where appropriate, in partnership with the National Skills Fund (NSF). SETA funds will primarily be used to fund the skills development needs of employers and workers in their sector. However, the utilisation of SETA discretionary funds must be guided by the goals of NSDS III.

• Professional, vocational, technical and academic (PIVOTAL) programmes. These are programmes, which provide a full occupationally directed qualification. Such courses will normally begin in a college or university and would include supervised practical learning in a workplace as part of their requirement. The courses, especially for workers, could in some cases start in the workplace and then move to a college or university. The courses would culminate in an occupational qualification. PIVOTAL courses will normally be offered by arrangement between a SETA, an educational institution, an employer and a learner. Fundamental to the successful implementation of PIVOTAL programmes will be a model of cooperation between a SETA, a higher or further education and training institution and an employer. This will help ensure responsive curricula and courses.

• Programmes that contribute towards the revitalisation of vocational education and training, including the competence of lecturers and trainers to provide work-relevant education and training, and promote occupationally directed research and innovation.

• Incentives for training and skills development capacity in the cooperative, NGO and trade union sectors, including community and worker education initiatives, contributing to effective training of youth and adults.

• Partnerships between public and private training providers, between providers and SETAs and between SETAs, addressing cross-sectoral and inter-sectoral needs.

• An increased focus on skills for rural development to support Government’s prioritisation of rural development.

Implementation of the NSDS III goals is to be guided by and measured against seven key developmental imperatives:

Race

Racial inequalities should be targeted in all skills development initiatives, with a particular focus on skills provision for blacks in general and Africans in particular.

Class

NSDS III also emphasises the provision of skills in a manner that significantly reduces social inequalities in the South African economy and society.

Gender

NSDS III requires special efforts to provide access to skills by women, especially black women, so that they can effectively participate in society and the economy.

Geography

Skills development system must increase its focus and attention on the production of skills for rural development (i.e. skills that will promote economic development in rural areas – not merely the development of the skills of rural people so that they can migrate to and find employment in urban areas).

Age

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Under NSDS III particular attention should be paid to the training of youth for employment.

Disability

NSDS III aims to significantly open up opportunities for skills training for people experiencing barriers to employment caused by various forms of physical and intellectual disability.

HIV and AIDS

All skills development initiatives must incorporate the fight against this pandemic and management of HIV and AIDS in the workplace.

The White Paper for Post-School Education and Training was approved by Cabinet on 20 November 2013. The White Paper spells out Government’s direction with and objectives for the post-school education and training system. Areas that are specifically relevant to the SETAs are:

The FET College system

The White Paper states that the DHET’s highest priority is to strengthen and expand the public FET colleges (now called Technical and Vocational Education and Training (TVET) Colleges) to become attractive institutions of choice for school leavers. The aim is also to strengthen the curricula of the colleges and to better align them to the needs of the labour market. Another objective is to strengthen the relationships between employers and the colleges.

Universities

The White Paper states that the universities have embraced the concept of an integrated post school education system. It also states that universities should seek to expand their partnerships with employers in order to secure work experience opportunities for students – especially in fields where work experience is necessary for professional registration.

Linking education and the workplace

The White Paper emphasises the importance of learnerships and internships in non-artisan fields and the role that SETAs have to play in the promotion of these forms of learning. It also states that the roles of SETAs and the NSF will be clarified and simplified with the SETAs clearly focusing on the development of skills of people already working in enterprises and on a skills pipeline to such workplaces while the NSF will focus on national development strategies and priorities.

In terms of skills planning the White Paper proposes a central planning system which will be located in the DHET. SETAs will be required to supply sector-specific information to such a central planning system.

CHIETA’s strategies objectives and plans are already to a large extent aligned to the strategic direction given by the White Paper, and engagement will be held with CHIETA stakeholders and other relevant institutions and bodies to engage on where further improvements need to be made.

Following the release of the NSDS III in January 2011, numerous important developments have taken place to enhance skills development in the country:

• The Quality Council for Trades and Occupations (QCTO) is now established and operational and has published various policies around the development and registration of occupational qualifications, including a policy on Development Quality Partners (DQPs) and Assessment Quality Partners (AQPs), and curriculum development and assessment. The first occupational qualification have been developed and registered with SAQA.

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• Various Skills Development Act and Skills Development Levies Act regulations, such as the Grant Regulations, Learning Programme Regulations and Listing of Occupations as Trades, have been revised.

• Work is being done by the Ministerial Task Team on a performance review of SETAs in various areas in order to make SETAs more efficient and effective.

• The Human Resource Development Council of South Africa is undertaking research into various areas related to skills supply in South Africa.

• Work is being done under the National Planning Commission to align skills planning in South Africa with the New Growth Path.

• The revised Broad-Based Black Economic Empowerment (BBBEE) codes were published for public comment in October 2012. An important change is the increase of the weighting of the skills development element from 15% to 20%.

A regulation of particular importance to the SSP and its implementation is the new Grant Regulations of 03 December 2012. The main purpose of the regulations is to improve the focus, management and effectiveness of SETA grant spending. The regulations are further intended to:

Provide for SETAs, including the CHIETA, to contribute to the cost of the QCTO for occupational qualifications and programmes registered at National Qualifications Framework (NQF) Levels 1 – 6.

Improve the quantity and quality of labour market information received by SETAs, including the CHIETA, in the form of workplace skills plans, annual training reports and PIVOTAL training reports, to inform skills planning.

Promote NQF registered and quality assured PIVOTAL programmes that address priority scarce and critical skills needs identified in the respective sectoral SSPs.

Create a framework within which public education and training providers are used to a larger extent for the provision of skills development programmes. This refers specifically to public FET (now TVET)colleges, universities of technology and universities.

Under the new grant regulations, the CHIETA is required to:

Clearly set out in its published plans the Chemical Sector skills needs.

Limit spending on administration to not exceed 10,5% of total levy paid by employers for the year, and to transfer an amount not exceeding 0.5% of the total levy paid by employers to the QCTO to fulfil its quality assurance functions

Target funding towards structured workplace learning and experience, as part of partnership programmes between education and training institutions, and credible providers and employers.

Ensure that at least 80% of the discretionary grants are spent on programmes that address scarce and critical skills needs in the Chemical Sector. The remaining 20% is for other interventions designed to implement the SSP. This is part of the commitment of NSDS III to increase funding for PIVOTAL programmes and to reduce the funding of short courses.

Develop a Sector Learning Programmes Matrix outlining funded PIVOTAL and non-PIVOTAL programme types aligned to the SSP.

Allocate a maximum of 20% of the SDL to mandatory grants available to qualifying levy-paying employers.

The CHIETA has developed a funding policy for mandatory and discretionary grants which was adopted by the CHIETA Governing Body. This policy has been submitted to the DHET for approval. Furthermore, the CHIETA has addressed the core requirements of the new grant regulations in the SSP, the strategic plan and Annual Performance Plan (APP), for implementation in the next financial year.

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Subsequent to the publication of the new grant regulations the DHET has also formulated a policy regarding the funding of artisan training programmes. This follows the publication of a list of 125 occupations that are now viewed as registered trades for which artisan qualifications are required3. The CHIETA funding policy is adapted to conform to the requirements of the DHET policy.

As new developments unfold, the CHIETA is making the necessary adjustments and provides support to member companies in this regard.

The National Skills Accord is one of the first outcomes of social dialogue on the New Growth Path, which is discussed in the next section. This accord was entered into between government, business, labour and civil society, and was signed in July 2011. The accord consists of the following eight commitments:

i. To expand the level of training using existing facilities more fully. ii. To make internship and placement opportunities available within workplaces.

iii. To set guidelines of ratios of trainees: artisans as well as across the technical vocations, in order to improve the level of training.

iv. To improve the funding of training, the use of funds available for training and incentives for companies to train.

v. To set annual targets for training in state-owned enterprises. vi. To improve SETA governance and financial management, as well as stakeholder

involvement. vii. To align training to the New Growth Path and improve Sector Skills Plans.

viii. To improve the role and performance of FET Colleges.

Annexure B contains more information on the National Skills Accord and the role that the CHIETA plays in honouring this accord.

The Youth Employment Accord, signed in April 2013, represents an agreement of the social partners to work together in addressing youth unemployment and expand the opportunities for greater employment and empowerment of youth in the economy. The accord consists of the following six commitments:

i. Education and Training: Improve education and training opportunities for youth in the phase between school leaving and first employment.

ii. Work exposure: Connect young people with employment opportunities through, amongst others, support for job placement schemes and work readiness promotion programmes for young school leavers and provide young people with work experience.

iii. Public sector measures: Increase the number of young people employed in the public sector, through coordinating and scaling up existing programmes under a ‘youth brigade’ programme coordinated with the National Youth Service Programme.

iv. Youth set-aside targets: Youth target set-asides need to be considered in particular industries, particularly new industries where young people can be drawn in in large numbers and should be progressively realised.

v. Youth entrepreneurship and youth cooperatives: Youth cooperatives and youth entrepreneurship should be promoted.

vi. Private sector measures: Work with the private sector to expand the intake of young people, with targeted youth support and incentives approved by all constituencies.

3 Government Gazette 35625, 31 August 2012

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In addition to all these strategies and legislative changes, most of the provincial governments have developed provincial skills development strategies. The strategy documents vary in quality and in terms of providing strategic direction to skills development in the respective provinces. Nevertheless, these documents also informed the CHIETA’s skills planning processes where possible.

GOVERNMENT INTERVENTIONS AIMED AT ECONOMIC GROWTH AND 1.3.2DEVELOPMENT

The following section presents a high-level summary of the macro policy and legislative environment within which the Chemical Sector operates, and highlights the most important policy imperatives impacting on the sector. The section includes both general and sector-specific interventions.

The Medium Term Strategic Framework (MTSF) for the period 2009 to 2014 was approved by Cabinet on 1 July 2009. “The MTSF, under the theme, 'Together doing more and better', is informed by the 2009 national electoral mandate and outlines the Government's medium-term strategy to meet this mandate. It serves as the foremost frame of reference outlining the Government’s policy posture and programme to improve the conditions of life of South Africans over the next five years. The MTSF identifies the development challenges facing South Africa and defines the priorities over the next five years”4. These priorities are:

i. Speeding up growth and transforming the economy to create decent work and sustainable livelihoods.

ii. Massive programme to build economic and social infrastructure. iii. Comprehensive rural development strategy linked to land and agrarian reform and food

security. iv. Strengthen the skills and human resource base. v. Improve the health profile of all South Africans.

vi. Intensify the fight against crime and corruption. vii. Build cohesive, caring and sustainable communities.

viii. Pursuing African advancement and enhanced international co-operation. ix. Sustainable resource management and use. x. Building a developmental state including improvement of public services and strengthening

democratic institutions5.

Effective skills development is a key factor underpinning all of these priorities, although the DHET and SETAs are specifically and collectively responsible for delivering on the fourth priority. The focus is on initiatives and interventions that will respond to the following pressing challenges:

Inadequate skills levels and work-readiness of graduates entering the workforce.

Lack of literacy and numeracy of the long-term unemployed.

Skills shortages in artisanal, technical and professional fields.

Over-emphasis on NQF levels 1-3, without sufficient progression towards more intermediate and high-level skills.

Failure of businesses to equip workers to adapt to changes in the economy, as it becomes more knowledge based.

Systemic blockages in the provision of skills.

Absence of coherent strategies within industries.

Urban bias of development.

4http://www.info.gov.za/speeches/2009/09071411151001.htm. Accessed 25 November 2012.

5http://www.dpsa.gov.za/article.php?id=57. Accessed 29 November 2012.

http://www.info.gov.za/speeches/2009/09071411151001.htm

http://www.dpsa.gov.za/article.php?id=57

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The National Development Plan: Vision for 2030 (NDP)6 has the vision of creating a more inclusive and equitable South African society in which the economy serves the needs of all citizens regardless of race, gender, wealth, skills level and geographic location. The NDP was finalised in November 2011, and it now stands as the overarching vision guiding the resource allocation to, and the implementation of, most other government social and economic policies7.The NDP provides a multi-dimensional framework with priorities to eliminate poverty and reduce inequality by 2030. The plan identifies specific elements that determine a decent standard of living and areas where the country needs to progress. Critical capabilities needed to transform the economy and society is described. Prominence is given to three priority areas: economic growth and job creation; education and skills; and building a capable and developmental state. The NDP offers a long-term strategy to increase employment and expand opportunities through education, vocational training and work experience; to strengthen health and nutrition services; and to expand social protection and community development.8.

The NDP essentially gives effect to the New Growth Path (NGP)9 by unpacking the intentions and goals of the NGP in detail. Apart from its general provisions, which will impact on all sectors of the economy, there is a particular focus on innovation that is critical for the Chemical Sector and skills planning therein.

The NDP emphasises the importance of science and technology as the keys to development: innovation is the most important driver of the kind of technology-based growth that is associated with higher living standards. Therefore, the NDP aims to build an ‘innovation economy’.

Technological innovation drives productivity, a critical underpinning for the higher growth rate that South Africa needs to achieve. The NDP makes it clear that the extent to which South Africa will achieve its growth and development goals will depend on its ability to innovate. The goal of the NDP is that ‘national systems of innovation and learning permeate society and businesses’.

Achieving this goal will require investment in human capital, new product development and technology. Within this strategy, a research and development (R&D) sector that supports commercialisation is essential.

In 2007, Government adopted the National Industrial Policy Framework (NIPF). The NIPF has the following central objectives (echoed in the NDP, above):

Facilitate a diversification away from the current basic resource-dominated structure of the economy. This implies a focus on growing value-added activities.

Moving towards knowledge based economy.

Promoting a more labour-intensive growth path, particularly through investments that will catalyse employment growth.

Promoting a more inclusive economy.

Contributing to industrial development in the rest of Africa.

Seven sets of policies were identified to achieve these goals:

i. Better integration of macro and micro economic policies.

6 National Planning Commission, National Development Plan 2013 – Our Future – Make it Work. 7 SA News. (2013). The National Development Plan unpacked, 9 February 2013, South African Government News Agency.

http://www.sanews.gov.za/south-africa/national-development-plan-unpacked. Accessed 25 June 2013. 8National Planning Commission. 2012. National Development Plan 2030, Our Future: Make it Work. “Executive

Summary”. Published at http://www.npconline.co.za/MediaLib/....pdf. (Accessed 16 July 2013) 9 Government of South Africa, the New Growth Path – The Framework.

http://www.info.gov.za/view/DownloadFileAction?id=135748. Accessed 8 July 2013.

http://www.sanews.gov.za/south-africa/national-development-plan-unpacked

http://www.npconline.co.za/MediaLib/....pdf

http://www.info.gov.za/view/DownloadFileAction?id=135748

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ii. Better targeted industrial financing. iii. Leveraging public and private procurement to support domestic production and local

employment. iv. A developmental trade policy. v. Policies to lower costs for productive investments and for poor households.

vi. A focus on skills development and innovation. vii. Alignment between new policy initiatives and work already done.

The second Industrial Policy Action Plan (IPAP II) was released in February 2010. IPAP II has identified key macro and micro-economic policies critical to its success. In terms of macro-economic policies IPAP II proposes competitive and stable exchange rates, and competitive real interest rates to support local production.

In terms of micro-economic policies, the following were identified as key to the stability of the macro variables:

Lowering the rate of inflation, particularly with respect to inputs of goods and services into the productive economy (including manufacturing) and goods and services consumed by low-income households.

Active promotion of investment in those sectors that will have a positive impact on inflation (such as food prices).

Contributing to an improved trade balance, by increasing the competitiveness of exported goods and supporting increased production of goods locally, to compete with imported goods.

IPAP II has a strong focus on the strategic leveraging of public procurement across a range of sectors. The goal of this policy would be to support domestic producers by excluding non-local suppliers from the procurement process, thereby eliminating ‘import fronting’ (see below for more details on the new preferential procurement regulations).

The key sectors on which IPAP II focused are the following three clusters:

Cluster 1: Qualitatively new areas of focus

Realising the potential of the metal fabrication, capital and transport equipment sectors, particularly arising from large public investments.

Green and energy-efficiency industries.

Agro-processing (linked to improving food security and reducing food prices).

Cluster 2: Scale up and broaden interventions in existing IPAP sectors

Automotive products and components, and medium and heavy commercial vehicles.

Plastics, pharmaceuticals and chemicals.

Clothing, textiles, footwear and leather.

Biofuels.

Forestry, paper, pulp and furniture.

Strengthening linkages between cultural industries and tourism.

Business process outsourcing.

Cluster 3: Sectors considered having potential for long-term advanced capabilities

Nuclear.

Advanced materials.

Aerospace.

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With specific reference to the pharmaceutical sector, IPAP II identified the following key opportunities for development:

The domestic production of active pharmaceutical ingredients for key antiretrovirals (ARVs), which will involve appropriate sequencing, in consultation with the Department of Health (DoH), of the domestic production of selected ARV active pharmaceutical ingredients (APIs).

The local production of reagents for AIDS/HIV diagnostics, under licence.

The domestic production of vaccines under licence, which will involve the restart of the production of vaccines to supply the domestic market (market estimated at R1.2 billion).

The domestic production of biological medicines such as erythmpoietin, monoclonal antibodies and vaccines.

IPAP II highlighted the relatively small size of the clinical research market in South Africa, which is currently worth around R2 billion a year. According to this policy documentit is estimated that the potential size of this market could be as high as R5 billion a year. Supporting this market will require, inter alia, the removal of certain regulatory barriers and constraints. These identified constraints include the lack of key skills in the highly specialised areas of new drug design, pharmaceutical formulation and pharmaceutical biotechnology.

The following key activities were identified in IPAP II in respect of the Chemical Sector:

Advancement of fluorochemicals: South Africa has the second largest fluorspar reserve in the world and is the third largest producer of fluorspar. However, more than 95% of fluorspar production is exported and less than 5% beneficiated to crude and pure hydrogen fluoride (HF), fluorine (F2) and fluorochemical products. July 2012 saw the official opening of the multi-purpose fluorination pilot plant at the Nuclear Energy Corporation of South Africa. The pharmaceutical industry is one of the industries that will benefit from advances in fluorochemicals.

Manufacturing of pharmaceuticals: In her Budget Vote address in 2013, Minister Pandor announced the establishment of Ketlaphela, a joint venture between Government through Pelchem, and Lonza, a leading global player in pharmaceuticals. This R1.6 billion project will result in the establishment of the first pharmaceutical plant to manufacture active pharmaceutical ingredients for antiretroviral medicines in South Africa. This is in line with the country’s plan to address HIV and AIDS through local and cost effective production of antiretroviral drugs. Ketlaphela will significantly reduce the country’s dependence on imported drugs and will provide a security of supply of priority drugs and stable pricing with less sensitivity to exchange rate fluctuations.

Polypropylene beneficiation: A Fund for Research into Industrial Development, Growth and Equity (FRIDGE) study into potential downstream polypropylene products was commissioned by the Department of Trade and Industry (the dti) and has been used as a base for the development of a polypropylene business case, which has been included in investment campaigns in targeted countries. The case outlines benefits for investing in South Africa coupled with technical assistance given by local feedstock suppliers. The intervention relates to the roll-out of the programme, which started during the 2007/08 IPAP.

Investigate costs and benefits of proposed new liquid fuels projects: Renewable fuels are one of the areas identified for accelerated economic growth within the Accelerated and Share Growth – South Africa (AsgiSA) initiative.

IPAP 2013/14 to 2015/16 continues to support initiatives to develop renewable fuels and provides feedback on the implementation of various research projects, policies and programmes in support of

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renewable fuel production10. In terms of the key activities outlined in IPAP II, IPAP 2013/14 to 2015/16 aims to achieve the following:

Polypropylene beneficiation

The dti aims to develop a business case on syringe manufacturing in conjunction with the IDC in order to stimulate the local beneficiation of polypropylene.

Plastics trade policy measures

The dti aims to encourage and support local production of components in order to improve the local industry’s international competitiveness. The intervention on incorrect coding is specifically aimed at clamping down on illegal imports that have been undermining local production in recent years. IPAP 2014/15 – 2016/17 the sixth annual Industrial Policy Action promises a further general clamp down on illegal imports and a focus on improved customs control.

It continues the work set out by 2013/14 -2015/2016 by pinpointing where policy improvements can be made, and how more concerted transversal action can be achieved and how sector strategies based on deeper understanding of sector and company dynamics can be implemented11

Designation of pharmaceutical tenders

The aim is to designate the entire volume or parts of pharmaceutical tenders for domestic manufacturers, in consultation with the Department of Health (DoH). However, this process will take the following into account: the local manufacturing capacity, the impact that such measures will have on the security of supply and additional costs that may be incurred because of necessary price premiums. IPAP 2014/15 – 2016/17 reports that part of the 2013-2014 Family Planning Tender (all SA-made contraceptives) worth an estimated R100 million has been designated. Preliminary data also show that 70% of the 2013-2014 anti-TB tender (worth R 850 million) has been won by South African manufacturers (in the absence of designation). The dti will continue with requests to the Minister to designate specific tenders and it will monitor and evaluate the performance of companies that receive designated tenders.12

Facilitation of Project Ketlaphela

This project has been described above. This project has been delayed because of the withdrawal of the Swiss partner and the IPAP 2013/14 – 2015/16 milestones were not achieved. Government is currently looking for another partner and will focus its attention in the IPAP 2014/15 – 2016/17 period on the appointment of a new partners, designing and contracting for the project.13

Facilitation of the Biovac Project (Manufacture of Vaccines)

The SA vaccine project, Biovac, is a 40-60 public-private partnership that was started in 2003 but has been experiencing long delays since its inception because of a sharp increase in the project’s capital cost – from R40 million (2003 estimates) to R250 million. These increases were driven by the need to keep up with rapid advances in the sophistication of vaccine technology globally. Biovac, which is expected to be fully operational by 2017, will be the third vaccine factory in Africa (after Egypt and Senegal).

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dti. (2013). Industrial Policy Action Plan 2013/14-2015/16: Economic sector and employment cluster, 2013. 11

The dti, IPAP 2014/15 – 2016/17. 12

The dti, IPAP 2014/15 – 2016/17. 13

The dti, IPAP 2014/15 – 2016/17.

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IPAP 2013/14 to 2015/16 sets the following milestones for this period:

Completion of inspection of compliance with the current Good Manufacturing Practice (cGMP) and approval by the SA Medicines Control Council (MCC).

Completion of construction of a R75 million Inspection (Viewing), Labelling and Packaging (VLP) facility.

Manufacturing of the first commercial-scale batch of vaccine (Hepatitis B).

Installation/commissioning of R20 million pre-filled syringe line.

Pharmaceutical skills strategy

The aim of this strategy is to provide the required skills for the domestic pharmaceutical industry and the broader public and private healthcare sector, by adjusting training programmes to meet demand for specific scarce skills.


Training programme for medicine control regulators and industry regulatory affairs personnel, regarding manufacture of active pharmaceutical ingredients, biological medicines and vaccines.

Training programme to be provided for Project Ketlaphela.

Training programme to be provided for Biovac project.

Development of the cosmetics sector strategy

The dti will develop a cosmetic sector strategy which is aimed at alleviating constraints experienced by local cosmetics companies.

Quality, safety standards and toxicology skills in the cosmetics sector

The aim of this intervention is to facilitate safety testing of cosmetic products produced in South Africa, so that products will get tested and certified locally by toxicologists. Products that are tested will be more acceptable in export markets. At the same time local certification will greatly reduce the exorbitant costs that companies currently pay to have their products tested overseas.

So far the dti has worked with the Toxicology Association of South Africa (TOXSA) and the Cosmetics, Toiletries and Fragrances Association (CTFA) to request the DST to amend the Natural Scientific Professions Act 27 of 2003 to recognise toxicology as a profession. This approval and the amendment of the Act became effective in March 2012. It has also in partnership with the University of Pretoria, TOXSA and DST developed a two year safety assessment course that will address skills shortage in toxicology testing in the country. The course is currently being registered and approved by the university and it will be offered from 2015. The dti in partnership with the University of Cape Town is in a process of establishing a comprehensive hair testing and cosmetic toxicology laboratory.


Identify quality and safety standards required for toxicology tests.

Work with TOXSA to identify skills requirements

Upgrade current facilities and laboratories to enable enhanced toxicology testing.

Workplan produced to set up a dedicated laboratory to perform toxicology tests locally.

IPAP 2014/15 to 2016/17 also recognises the upstream oil and gas services and equipment industry as a sectoral focus area. It also contends that shale gas has the potential to be a “game changer” in terms of South African energy self-sufficiency and economic development. At this stage the dti is

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focusing on “developing an industrial strategy that can support the optimal exploration and extraction of SA’s shale gas resource. This will include an analysis of the backward and forward linkages in terms of the upstream localisation opportunities in the capital equipment and metals fabrication sector and downstream polymer beneficiation opportunities for the plastics sector. The strategy will investigate gas as a potential long-term low cost energy option and include an assessment of the regulatory, policy, financing and technology requirements to exploit the resource.”14

The CHIETA is directly involved in the skills development aspects of IPAP. It serves on task teams and working group and works closely with the dti to facilitate delivery towards the milestones that relate to skills development.

The South African Government recognises the importance of small and micro enterprises (SMEs) for economic growth and job creation. One of the mechanisms through which SMEs are supported is called “incubators”. An incubator is an institution or initiative aimed at nurturing new businesses through their early development phases by, for example, offering office space, business skills training, and access to financing and professional networks15. In 2012 the dti launched the Incubation Support Programme (ISP) which aims to develop incubators and create successful enterprises with the potential to revitalise communities and strengthen local and national economies. The ISP is one of the support measures to encourage partnerships in which big business assist SMEs with skills transfer, enterprise development, supplier development and marketing opportunities16. The dti and Sasol established an incubator, ChemCity Business Incubator (CBI). This R60-million facility is situated in Sasolburg and will cater for start-ups and early-stage SMEs that operate in various sectors, including chemicals, energy and related sectors, as well as the manufacturing, agribusiness and food processing sectors. Other incubators active in the Chemical Sector with Government support and funding are The South African Chemical Technology Incubator (Chemin) that specialises in supporting the start-up and growth of SMMEs in chemical production technologies and products and Technology Station in Chemicals (TSC), a Department of Science and Technology (DST) funded programme aimed at transferring chemical technology to SMEs. This programme is based at the Tshwane University of Technology and the Mangosutu University of Technology).

The National Economic Development and Labour Council (Nedlac) Crisis Response Process to the global recession has emphasised the need to consider lowering the tariffs on intermediate inputs. It identified that there was the possibility of using tariffs as a policy tool when there was potential for significant creation and/or retention of jobs and when there was potential for significant replacement of imports by local production.

Preferential procurement of domestically produced goods and services has been identified for several years as a key catalyser of economic development. Progress in this regard has recently been made. National Treasury’s new preferential procurement regulations came into effect on 07 December 2011. The regulations replace the previous regulations that were published ten years earlier, in 2001 and contain the new local procurement guidelines. Eight designated sectors have been identified for minimum local sourcing targets: power pylons, rolling stock, buses, canned

14 The dti, IPAP 2014/15 to 2016/17, p. 118.

15 Sepulveda, F., (2013). Business Accelerator vs Business Incubator, Impulsa Business Accelerator.

http://www.impulsaxl.com/business-accelerator-vs-business-incubator.html. Accessed: 06 Nov. 13

16 DTI, SMME Development Financial Assistance (Incentives): Incubation Support Programme (ISP).

http://www.thedti.gov.za/financial_assistance/financial_incentive.jsp?id=54&subthemeid=8. Accessed: 06 Nov. 13

http://www.impulsaxl.com/business-accelerator-vs-business-incubator.html

http://www.thedti.gov.za/financial_assistance/financial_incentive.jsp?id=54&subthemeid=8

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vegetables, clothing, textiles, footwear and leather products, and set top boxes. However, even where a tender does not involve a designated sector, organs of state or public entities may still exercise their discretion to include local content provisions in tender conditions.

Another new development is that preferential procurement regulations will now apply to a number of public entities which were previously exempt. These include Eskom, Telkom, Denel, the South African Post Office and the various SETAs. This substantially widens the pool of potential government customers and contracts for local producers. The first significant result of these new procurement regulations was for medicines, procured by the Department of Health.

South Africa’s Beneficiation Strategy provides a framework for translating South Africa’s considerable competitive advantage in mineral resources into wider local economic benefits and is aligned to IPAP and the NGP. The strategy identifies several instruments that constitute an enabling environment for beneficiation (policies, legislation, incentives, etc.) and that support diversification of the economy’s productive base. The beneficiation strategy aims to advance development through the optimisation of linkages in the mineral value chain, facilitation of economic diversification, job creation and industrialisation. In addition, the strategy has an important focus on supporting South Africa’s transition to a knowledge based economy. The strategy aims to develop sustainable final stage beneficiation level for ten minerals in five value chains, namely: security of energy, industrial minerals (e.g. steel and stainless steel), advanced metal (e.g. Ti pigment production), auto-catalyst and diesel particulate, and jewellery fabrication17.

Implementation of beneficiation policies have thus far been relatively unsuccessful, with the result that minerals beneficiation still remains an untapped opportunity. As part of IPAP 2013/14 – 2015/16, Government has committed to undertaking comprehensive research that will support the development of a strategy and action plan to advance backward and forward beneficiation in the following selected group of key minerals value chains:

Ferrous (iron ore, ferro-alloys, steel and specialty steels).

The Platinum Group Metals (PGMs).

Titanium and pigments.

Polymers (from coal, gas and oil).

Mining inputs.18

South Africa’s Biofuels Strategy (December 2007) is also relevant to the Chemical Sector. The strategy aimed to achieve a 2% penetration level of biofuels (i.e. 400 million litres per annum) in the national liquid fuel supply by 2012, but has fallen far short of this target.

South Africa's energy policy is centred on coal as the main source of electricity, which currently supplies 90% of electricity, but there is increasing scope for commercial renewable projects. In addition, the transition to a renewable energy base is now seen as an economic development opportunity (as indicated in economic policy documents such as the NGP) rather than as an economic cost, which was the prevalent view in the past19.

The Integrated Resource Plan (IRP)20 is a national electricity plan. The IRP is based on an identified need of an additional electricity generation capacity of more than 50000 megawatt by 2030 and envisages renewable energy contributing 42% of the total new generation added to South Africa's

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DMR. (2011). A beneficiations strategy for the minerals sector of South Africa, June 2011. 18

dti. (2013). Industrial Policy Action Plan 2013/14-2015/16: Economic sector and employment cluster, 2013. 19

Edkin, Marquard and Winkler, 2010. Cosatu News. 20Department of Energy, (2010). The Integrated Resource Plan (IEP).

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electricity mix between 2010 and 2030. Within this target there is substantial opportunity for new private sector development in energy generation. The recent publication of the tariffs at which Government will purchase power from independent power producers (IPPs) has been an important milestone in encouraging investment. The increased focus on and allocation of resources to green and renewable energy offers a number of new opportunities for the Chemical Sector. These include nanotechnology, photo-catalysts and the glass components of solar energy installations.

In a recent statement the Minister of Energy reiterated Governments’ commitment to the IRP and announced that she intends to focus on and accelerate all the outstanding matters that will lead to the commencement of the nuclear build programme as envisaged in the IRP. These include the localisation, financing, funding, skills development, and fuel cycle and uranium beneficiation strategies to support the nuclear new build programme.

The Minister also announced that a draft of the Gas Utilisation Master Plan (Gump) is being finalised. The Gump, would seek to anticipate the infrastructure necessary to open up gas prospects. The plan’s scope included the development of a gas receiving and storage terminal for liquefied natural gas (LNG), which could be used to meet the gas-to-liquids requirements at PetroSA’s Mossel Bay refinery, as well as to convert Eskom’s open-cycle gas turbines (OCGTs), which currently run on diesel.21

The Industrial Development Corporation (IDC) has recently concluded a R5-billion private placement with the Public Investment Corporation (PIC) for a 'green bond'. This has been established to facilitate funding for businesses wishing to invest in clean-energy infrastructure developments.

Government’s focus on green and renewable energy is embedded in a much wider initiative to promote the development of a ‘green economy’. The concept of a green economy refers to two interlinked developmental outcomes for the South African economy, namely growing economic activity (which leads to investment, jobs and competitiveness) in the green industry sector; and a shift in the economy as a whole towards cleaner industries and sectors with a low environmental impact compared to their socio-economic impact. The green economy is an economic development model that is receiving more and more support and that aims to reduce the adverse impact that economic activities can have on the environment22.

The importance of a green economy and consideration for the environment in economic development have been emphasised in many of the policies and economic development plans that have seen the light over the past ten years. The green economy is prioritised as one of the key economic drivers in MTSF 2009 – 2014 and in the NGP.

One of the prominent developments in the promotion of the green economy was South Africa’s response to the United Nations’ call for economic transformation to a greener economy that creates green jobs and that promotes sustainable and inclusive growth. In response to this call the Department of Environmental Affairs convened a Green Economy Strategy Summit in May 2010. This was followed by a framework for South Africa’s response to the international economic crisis, in which Government recognises the opportunities in the development of industries that combat the negative effects of climate change. The framework urges South Africa to develop strong capacity in green technologies and industries and to develop incentives for investment in a programme geared at creating a large number of green jobs. The framework sees investments in both public and private sectors as the mechanism for the reconfiguration of businesses that will lead to a higher share of green sectors in the economy, more green and decent jobs, reduced energy and material

21

Creamer, T. Joemat-Pettersson reaffirms plan to expand role of gas, nuclear in SA mix, Engineering News, 21 July 2014. 22 Chief Directorate: Communication, Department of Environmental Affairs, South Africa’s Green Economy Strategy, Pretoria. http://www.enviropaedia.com/topic/default.php?topic_id=342. Accessed 6 October 2012.

http://www.enviropaedia.com/topic/default.php?topic_id=342

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intensities in production processes, less waste and pollution, and significantly reduced greenhouse-gas emissions23.

In November 2011 South Africa’s Green Economy Accord was signed by Parliament. The Accord, one of the most comprehensive social pacts on green jobs in the world, builds a partnership to create 300 000 new jobs by 2020, in economic activities as diverse as energy generation, manufacturing of products that reduce carbon emissions, farming activities to provide feedstock for biofuels, soil and environmental management, and eco-tourism24 .

The Presidential Infrastructure Coordinating Commission assessed the infrastructure gaps in the country through spatial mapping which analyses future population growth, projected economic growth and areas of the country not served by water, electricity, roads, sanitation and communication. Based on this work, a common national infrastructure plan has been develop with 18 Strategic Integrated Projects (SIPs) to support economic development and address service delivery in the poorest provinces.

The SIPs of most direct relevance to the Chemical Sector relate to the Energy SIPS aimed at addressing the energy mix of So Mthombo uth Africa, with emphasis on sustainable energy and the South East Nodal development, which includes Project Mthombo25.

Furthermore, the DHET, which is responsible for skills development to support the SIPS, has made estimates of the skills that will be required for the SIPS projects and have indicated to the SETAs which skills they regard as “scarce”. SETAs will contribute to the development of those skills. The DHET has also instituted new structures called “Occupational Teams”. These teams will consist of industry experts that will advise the education sector on the exact skills needed by industry.26

The Special Economic Zones Act, which was signed into legislation on 22 May 201427, is intended to replace the dti’s IDZ programme initiated in 2000. The SEZ programme seeks to promote trade, economic growth and industrialisation in targeted areas across South Africa (SA) that will take account of the economic development needs and challenges of specific regions in order to improve current spatial development inequalities28.More specifically the Act provides for the designation of the following types of SEZs:

Free Ports: Duty free areas adjacent to a port of entry where imported goods may be unloaded for value-adding activities, repackaging, storage and subsequent re-export, subject to special customs procedures

Free Trade Zones: a duty free area offering storage and distribution facilities for value-adding activities within the Special Economic Zone

Industrial Development Zone: A purpose built industrial estate that leverages domestic and foreign fixed direct investment in value-added and export-oriented manufacturing industries and services

23

Chief Directorate: Communication, Department of Environmental Affairs, South Africa’s Green Economy Strategy, Pretoria. http://www.enviropaedia.com/topic/default.php?topic_id=342. Accessed 6 October 2012. 24

Government of South Africa. http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=23648&tid=50584. Accessed 6 October 2012. 25

Project Mthombo is PetroSA’s initiative to build a world class crude refinery project. 26

Communication received from Ms A. Bird, DHET. 27

The dti, Press release, 22 May 2014. 28

dti. (2012). Policy on the Development of Special Economic Zones in South Africa: For public comment only.


http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=23648&tid=50584

19

Sector Development/Specialised Zones: A zone focused on the development of a specific sector or industry through the facilitation of general or specific industrial infrastructure, incentives, technical and business services primarily for the export market. 29

The national budget for 2013/14 states that money has been allocated for the building of world-class industrial parks and that tax incentives to enhance this initiative are currently underway30.

The study undertaken to develop a SEZ in the Saldanha Bay area highlights the importance of local skills development initiatives that target the training of maintenance personnel in chemical, mechanical, electrical and control engineering31.

Another national strategy that needs to be considered is the Integrated and Sustainable Rural Development Strategy (ISRDS) of 2000, which is designed to realise a vision that will “attain socially cohesive and stable rural communities with viable institutions, sustainable economies and universal access to social amenities, able to attract and retain skilled and able people, who are equipped to contribute to growth and development”32.

In addition to the national strategies described above, each of the provinces has its own growth and development strategy. As with the provincial skills development strategies these strategies vary in depth and quality and in many instance they are relatively vague in terms of the actual actions that will be taken. The main issues that are relevant to each of the provinces are summarised below:

Western Cape

The Saldanha Bay area of the Western Cape has begun to receive substantial attention for the development of an economic hub focussed on offshore reserves of oil and gas. This development forms part of the recent Special Economic Zones (SEZ) policy of the National Department of Trade and Industry (the dti), and is one of its first projects.33 The Saldanha Bay SEZ also forms a key component of government’s recent Strategic Infrastructure Projects (SIPs), which additionally aims to support the development of a transport corridor between Saldanha Bay and the Northern Cape.34 The Western Cape Economic Development Strategy specifies the oil and gas industry as one of its priority sectors that could benefit from collective support.35

The Western Cape’s Green Economy Strategy Framework, ‘Green is Smart’ is also likely to have an impact on the regional chemicals sector. The strategy aims to get the province to the lowest per capita carbon consumption in SA. Various projects are supported by this strategy, among which is the potential for the development of greenfield gas infrastructure and gas-based power plants that will utilise the off-shore natural gas. Furthermore, the provincial government aims to support initiatives that use cleaner-burning Petroleum Liquid Gas (such as that produced by PetroSA’s gas to liquid plant in Mosselbay) in public transport vehicles. These initiatives should support certain chemical subsectors in the region. The same document however, says that the province will support

29

The dti, Press release, 22 May 2014. 30

RSA. (2013).2013 Budget Speech by the Minister of Finance Pravin Gordhan, 27 February 2013.http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=34533&tid=99785. Accessed 28 June 2013. 31

dti. (undated.) Saldanha Bay IDZ Feasability Study. 32

www.info.gov.za/otherdocs/2000/isrds.pdf. Accessed 29 November 2012. 33

The dti, Saldanha Bay IDZ Feasibility Study, October 2011 34

Presidential Infrastructure Coordination Commission (2012) A summary of the South African National Infrastructure Plan. 35

Western Cape Provincial Government (2007) iKapa Elihlumayo Growth and Development Strategy, 15 November 2007.


http://www.info.gov.za/otherdocs/2000/isrds.pdf

20

initiatives such as Woolworth’s ‘Farming for the Future’ which aims to reduce farmers’ dependence on chemical fertilisers, pesticides and insecticides.36

Eastern Cape

Through a range of policies and strategies the Eastern Cape has identified various chemical subsectors as being of strategic importance for provincial development, and thus critical for focus and support.

There are two existing industrial development zones in the province, the Coega IDZ and the East London Industrial Development Zone (ELIDZ). Both these zones have already attracted considerable investment from a range of companies including some in the chemicals sector. Under the SEZ policy, support for firms in these zones should increase further through access to improved infrastructure and other forms of government support.

The Eastern Cape Provincial Industrial Development Strategy of 2010 identified chemicals and petrochemicals as a priority sector. The document outlined the planned development of a new PetroSA crude oil refinery facility at Coega IDZ, envisaged to produce over 400 000 bpd diesel, petrol and petroleum products as well as sulphur and petroleum coke that can be beneficiated further. It also envisaged that the COEGA oil refinery would produce a number of organic commodity products such as ethanol and other alcohol blends as well as limited quantities of olefins to serve as feedstock for downstream chemical production. The oil refinery would create the necessity for the development of a new tank farm, with these two projects enabling the development of the necessary downstream chemical industry complex and support sectoral job creation in the region.37

The Eastern Cape Jobs Strategy of 201238 however indicates with regards to the COEGA Oil Refinery, that while national Cabinet has approved the project of the parastatal PetroSA in principle, the new refinery capacity will now be split between Coega and Durban. Furthermore, a final investment decision for the anchor investor is not expected before 2015 and then construction on the still massive project would take about five years to complete. The strategy argues that the potential production of petrochemicals is far more important for job creation in the province than the produc-tion of liquid fuels due to the downstream job creation potential in industries such as plastics and textiles/garments (synthetic fibres). Thus the strategy suggests that the province should assess alternative means of acquiring petrochemical feedstocks, such as the importation of naphtha or methane/methanol production (coal/gas, shale gas or methanol from biofuels), to underpin job cre-ation in the downstream industries.

The Pharmaceutical industry is also highlighted as a critical provincial sector by the Eastern Cape Jobs Strategy. With the largest pharmaceutical manufacturing plant in South Africa based in the Eastern Cape and two pharmacy schools at provincial universities, the strategy indicates that there is scope for developing the Eastern Cape pharmaceutical supply chain to provide essential inputs to the national health care sector, with the aim of creating local jobs, reducing dependence on imports and, being competitive enough to expand production into export markets, particularly into Africa.

Outside of its existing supply into the automotive manufacturing sector, opportunities for the glass manufacturing subsector are also highlighted by the Eastern Cape Jobs Strategy: with the major

36

Western Cape Green Economy Strategy Framework, Green is Smart, http://www.westerncape.gov.za/sites/www.westerncape.gov.za/files/documents/2013/July/wcg-green-economy-strategy-framework-2013.pdf 37

Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (2010), Eastern Cape Provincial Industrial Development Strategy (PIDS), March 2010. 38

Government of the Eastern Cape (2012) Eastern Cape Provincial Jobs Strategy 2012.

http://www.westerncape.gov.za/sites/www.westerncape.gov.za/files/documents/2013/July/wcg-green-economy-strategy-framework-2013.pdf


21

provincial focus on developing the renewable energy sector, glass manufacturers in the province are being encouraged to adapt their processes to manufacture glass for photovoltaic panel production.

The final chemical subsector that is set to gain some advantage from provincial development policies in the Eastern Cape is the fertiliser industry. The Eastern Cape Rural Development Strategy raises the provincial government’s concern with the impact of high and variable costs of fertilisers, especially on rural small scale farmers, and advocated some form of government support in order to combat this.39 The Eastern Cape Provincial Industrial Development Strategy proposes government support for agricultural sector consumables such as fertilisers as part of its strategic intent to improve productivity of local agriculture and to develop the provincial agro-processing sector.

KwaZulu Natal

The KwaZulu-Natal Provincial Growth and Development Strategy (PGDS) has as its first strategic objective the retention, and then creation, of jobs in the province. One of the ways in which this is to be done is by means of enhancing industrial development through trade, investment and exports and improving the efficiency and infrastructure and incentive offerings of the Durban and Richards Bay Ports, the Richards Bay IDZ and the Dube Trade Port. While no other specific details are provided, the strategy indicates that it intends that its focus on trade, investments and exports in this way, will underpin growth in key provincial manufacturing sectors, including the Chemical Sector.40

Free State

The chemical industry is the single most important manufacturing subsector in the Free State. Sasol through Sasol Chemical Industries and Sasol Polymers plays a dominant role in the Free State provincial economy and is responsible for 42% of the total manufacturing output of the province.

Sasol in Sasolburg is also critical in terms of skills development for both the provincial and national petro-chemicals sector. In November 2012, a new R150 million state-of-art research and technology (R&D) facility was unveiled. This new facility includes 14 laboratories, a number of piloting facilities, and houses approximately 150 PhD graduates, close to 100 engineers, over 200 scientists and over 100 chemists and technologists.

Sasol Technology is currently executing further capital projects with a value of more than R450 million to support its development activities.

The Free State provincial government has recognised Sasolburg, with its focus on the petro-Chemical Sector, as a provincial development node.41

Northern Cape

Northern Cape Provincial Growth and Development Strategy makes no direct mention of the Chemicals Sector. Indirectly however, and to a very small extent, the Chemical Sector is supported by the strategy in two ways: Firstly, support for the fertiliser subsector may be provided through the provincial government’s intention to expand and diversify the agricultural sector as a means of improving food security. Secondly, repair and upgrading of infrastructure at the small-vessel harbours of Port Nolloth, Alexander Bay and Hondeklip Bay may impact positively on the offshore oil

39

Eastern Cape Department of Agriculture and Rural Development (2010) Draft Eastern Cape Rural Development Strategy. 40

KwaZulu Natal Provincial Planning Commission (2011) Provincial Growth and Development Strategy: Building a Better Future Together, August 2011. 41

Free State Provincial Government (2013) Free State Province Provincial Spatial Development Framework, Phase 2 Report, 7 March 2013.

22

and gas exploration activities taking place at the Kudu and Ibhubesi natural gas fields off the West Coast of the province.42

North West

The North West Provincial Growth and Development Strategy43 does not mention of the Chemical Sector or any of its subsectors.

Gauteng

Despite the fact that a significant proportion of the South African Chemicals Sector is located in Gauteng, the Gauteng Industrial Policy Framework does not include the sector in the group of six sectors selected by the province for targeted support.44

The Gauteng Employment, Growth and Development Strategy regards the Chemical Sector as one of a group of sectors that deserve policy attention due to their strategic importance as critical suppliersof downstream sectors. In particular the strategy focuses attention on the challenges experienced by downstream sectors that result from monopolistic pricing of basic industrial goods such as chemicals.45

Mpumalanga

The Mpumalanga Provincial Growth and Development Strategy recognises the refined petroleum products, chemicals, rubber and plastic industry as its most important manufacturing sector, pointing to the fact that more than a fifth of South African chemicals and chemical products are manufactured in the province. Furthermore the strategy also recognises the importance of supporting local downstream beneficiation of chemical products.46 The more recent Mpumalanga Growth and Development Path indicates that the province is the largest producer of coal in South Africa, and that beneficiation of its natural resource base hold potential for increased local economic development.47

Limpopo

The Limpopo Employment Growth and Development Plan48 focuses attention on the potential economic benefits that arise from having the single largest coal field in South Africa. Limpopo plans to prioritize beneficiation in the coal, energy, petrochemicals and downstream chemicals industries as a means to grow the provincial economy, with opportunities identified in the Styrofoam, plastic, nylon, rubber products and non-recovery coking sectors. Planned projects also include Sasol’s Coal to Liquids petrochemicals industrial complex in the Waterberg District.

MONITORING AND EVALUATION STRATEGIES 1.3.3

Most important in this area is the ‘Policy Framework for Government-Wide Monitoring and Evaluation’ (GWM&E), released by the Presidency in 2007. This is the policy instrument through which Government aims to fulfil its constitutional mandate to promote ‘economy, efficiency, effectiveness and equity’ in the use of national resources. It is important to note that responsibility

42

Northern Cape Provincial Government (2007) Northern Cape Province Provincial Growth and Development Strategy. 43

North West Provincial Government (2004) North West Province Provincial Growth and Development Strategy: 2004-2014. 44

Gauteng Department of Economic Development (2010) Gauteng Industrial Policy Framework 2010-2014. 45

Gauteng Department of Economic Development (2010) Gauteng Employment Growth and Development Strategy. 46

Mpumalanga Provincial Government (2004) Mpumalanga Provincial Growth and Development Strategy: 2004-2014 47

Mpumalanga Provincial Government (2011) Draft Mpumalanga Economic Growth & Development Path, February 2011. 48

Limpopo Provincial Government (2009) Limpopo Employment Growth and Development Plan 2009 - 2014

23

for achieving these constitutional provisions is deferred to oversight bodies with such allocated responsibilities. The CHIETA, as a statutory body, thus has the responsibility for monitoring and evaluating its own mandated activities using the criteria set out in the GWM&E. The starting point is the collection of baseline information on the sector, including the detailed source data that is used in this SSP.

NEW AND UNFOLDING GOVERNMENT INTERVENTIONS 1.3.4

In addition to the Government Strategies described above, new Government Strategies, policies and other interventions are constantly being developed while existing ones are reviewed and changed. At the same time, strategies that have been announced but have not yet been fully implemented are gradually taking effect. This creates an ever-changing environment to which the CHIETA has to adapt. At the same time it creates the need for the SETA to engage with all these new developments to ensure that the Chemical Sector’s interests are served and that the sector contributes optimally to ensure the success of all these interventions.

1.4 STRUCTURE OF THE SSP

The SSP update consists of eight chapters.

Chapter 1 serves as an introduction to both the CHIETA as an organisation, as well as to the process followed in developing this document. The chapter also outlines the policy environment set by Government, in which skills planning takes place.

Chapter 2 provides a descriptive profile of the sector. After a brief overview of the nine CHIETA subsectors and the profile of the organisations that make up the Chemical Sector, employment in the sector is discussed from various perspectives. This is followed by a summary of the characteristics of the sector that have a particular impact on skills development priorities and programme implementation.

Chapter 3 deals with the economic performance of the sector. Within a framework of sustainable development, this chapter considers the various factors that have an impact on the economic performance of the Chemical Sector, presently and into the future, data on the economic growth of the sector and its contribution to GDP, as well as the initiatives that are in place to enhance the sector’s growth.

Chapter 4 considers the sector’s demand for labour. The focus is on existing demand, highlighting Trades and Green Occupations, while factors that may impact on future demand in the sector are also noted.

Chapter 5 describes the supply of skills to the sector. A description of current supply from the basic, further and higher education and training systems is provided, with particular reference to the skills needs of the Chemical Sector. The chapter also considers the CHIETA’s interventions that are aimed at alleviating skills shortages.

Chapter 6 provides a qualitative review of the broad categories of skills development needs as they emerge from this SSP, followed by more detailed information on specific scarce skills in the sector.

Chapter7 outlines the five skills development priorities for the CHIETA - the culmination of the research and consultations processes described above. This chapter also outlines the CHIETA’s contribution to the strategic areas of focus of the National Skills Development Strategy III (NSDS III), Government’s Medium Term Strategic Framework (MTSF) objectives, Governments Industrial Policy Action Plan (IPAP), the New Growth Path (NGP), the National Skills Accord and the Beneficiation

24

Strategy of South Africa. Furthermore the recently released National Development Plan: Vision 2030 and the Infrastructure Plan are considered.

It is important to note when reading this SSP, that while issues are complex and cross-cutting, adherence to the structure of an SSP document demands that only particular aspects of any given issue are discussed in each chapter. This document must therefore be read as a whole.

25

2. PROFILE OF THE SECTOR

2.1 INTRODUCTION

This chapter outlines the profile of the Chemical Sector as demarcated by the Department of Labour (DoL) in 1999, in the promulgation of the skills development legislation and subsequently confirmed through the re-registration processes, which the CHIETA along with all other SETAs, has had to undergo since its establishment. This chapter provides a descriptive overview of the sector and highlights the key characteristics of the sector, which impact on skills development.

The first part of the chapter outlines the industrial subsectors and economic activities of the sector, including the subsectoral demarcations used in the CHIETA and in the rest of this SSP. This is followed by a description of the organisations and the employees working in the sector, as at the end of March 2012. This is followed by a summary of the characteristics of the sector that have a particular impact on skills development priorities and programme implementation, such as transformation, health and safety, environment and HIV/AIDS.

2.2 INDUSTRIAL COVERAGE

The Chemical Sector, as determined by the skills development legislation, consists mainly of companies engaged in manufacturing activities (SIC Major Division 3). Also included are companies in Agriculture, Fishing and Forestry (SIC Major Division 1); Electricity Gas and Power Supply (SIC Major Division 4); Wholesale and Retail Trade (SIC Major Division 6); and Financial Intermediation, Insurance, Real Estate and Business Services (SIC Major Division 8).

The CHIETA has grouped the SIC Codes into nine subsectors and the subsectors into five chambers. The chambers form part of the organisational structure of the SETA and much of the work pertaining to skills planning takes place in the respective chambers. Table 2-1 shows the SIC codes allocated to the sector, the SIC codes that are combined to form subsectors and the combinations of subsectors that make up the five chambers.It should be noted that the subsectors included in the CHIETA scope of coverage do not fully correspond with the dti delineation of the Chemical Sector. Direct comparisons are therefore not always possible.

26

Table 2-1 Industrial coverage, subsectors and chambers of the Chemicals Sector

SIC Code

Scope of Coverage/Description Subsector Chamber

33410 Manufacture of basic chemicals, except fertilisers and nitrogen compounds

Base Chemicals

Petroleum and Base Chemicals

33430 Manufacture of plastics in primary form and of synthetic rubber

34000 Manufacture of other non-metallic mineral products

41210 Manufacture of industrial gases in compressed, liquefied or solid forms

33100 Manufacture of coke oven products

Petroleum 33200 Petroleum refineries/synthesisers

61410 Wholesale trade in solid, liquid and gaseous fuels and related products

87140 Industrial research, e.g. fuel research

33501 Chemically-based general household and personal care products

Fast Moving Consumer Goods

Fast Moving Consumer Goods and Pharmaceuticals

33541 Manufacture of soap and other cleaning compounds

33543 Manufacture of beauty products

33530 Manufacture of pharmaceuticals, medicinal chemicals and botanical products

Pharmaceuticals

33592 Manufacture of explosives and pyrotechnic products Explosives

Explosives and Fertilisers

11600 Production of organic fertiliser

Fertilisers 33420 Manufacture of fertilizers and nitrogen compounds

33421 Manufacture raw materials and chemical compounds used in agriculture

33502 Manufacture, sale and/or distribution of diversified speciality chemicals for industrial use Speciality

Chemicals Speciality Chemicals and Surface Coatings

36400 Manufacture of accumulators, primary cells and primary batteries

33520 Manufacture of paints, varnishes and similar coatings, printing ink and mastics

Surface Coatings

39005 Powder coating

34110 Manufacture of glass and glass products

Glass Glass 34112

Manufacture of glass containers; glass kitchenware and tableware; scientific and laboratory glassware, clock and watch glasses and other glass products n.e.c.

27

2.3 OVERVIEW OF THE SUBSECTORS IN THE CHEMICAL SECTOR

Figure 2-1 illustrates the chemical industry value chain from the point where raw materials are explored, extracted or produced to the point of final consumption. Overlaid onto this process flow is the positioning of the nine subsectors of the Chemical Sector.

Figure 2-1 The CHIETA subsectors in relation to the Chemical industry value chain

Source: Ozone Business Consulting (Pty) Ltd and IT Aware

BASE CHEMICALS 2.3.1

The first subsector shown on the figure is Base Chemicals. Base Chemicals include all products that are manufactured by means of polymerisation synthesis into a primary form (e.g. beads), ready to be converted by means of mechanical or thermo-mechanical processes into fabricated plastic and rubber products.

A basic or primary organic chemical is the first point at which a substance exists as an isolated and reasonably pure chemical. These chemicals are typically sold in large volumes and have multiple applications. It includes those products generally referred to as petrochemicals. Organic intermediate chemicals and solvents are chemicals for which a definite chemical precursor can be identified. Intermediate chemicals usually undergo further chemical reactions (transformation) to produce a variety of other chemicals.

Inorganic chemicals are those products most often produced from metallic and non-metallic minerals, which have commercial properties. They are also typically sold in large volumes and have multiple applications. Although some inorganic chemicals are used to manufacture other chemicals, the distinction between basic, intermediate and end chemicals is much less clear than in the organic chemicals group. Inorganic chemicals are used less as building blocks and more as processing aids in the manufacture of both chemical and non-chemical products.

7 Speciality Chemicals

8 Surface Coatings

5 Explosives

6 Fertilisers 2 Base Chemicals

9 Glass

1 Petroleum

3 Fast Moving Consumer Goods

4

Silica Sand

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PETROLEUM 2.3.2

The Petroleum Subsector includes upstream recovery from the earth’s resources, midstream conversion into a number of core elements and downstream commercial applications. The economic activity in the subsector includes the exploration of oil and gas, refining of crude oil, gas to liquid (GTL) refining, storage and distribution, and wholesaling. Industrial research, and specifically fuel research, is also included in this subsector.

South Africa has limited oil reserves and about 64% of its crude oil requirements are met by imports from the Middle East and the rest of Africa49. However, South Africa has the second largest refinery capacity in Africa after Algeria, with four operational refineries and a fifth on its way.

Oil refineries essentially serve as the second stage in the production process, following the actual extraction by oil rigs. The first step in the refining process is distillation, where crude oil is heated at extreme temperatures to separate the different hydrocarbons. The crude oil components, once separated, can be sold to different industries for a broad range of purposes. Lubricants can be sold to industrial plants immediately after distillation, but other products require more refining before reaching the final user. Major refineries have the capacity to process hundreds of thousands barrels of crude oil a day50.

South Africa is a world leader in coal-based synthesis and gas-to-liquid technologies and has a unique and highly developed synfuels industry that uses coal and gas as feedstock. The two synfuel facilities are owned by Sasol and by PetroSA51.

The subsector also includes the manufacturing of coke and coke by-products, including coke oven gas, which is produced by heating, in the absence of air, of suitable grades of coal. The process further includes the processing of coke oven gas to remove tar, ammonia, phenol, naphthalene, light oil and sulfur before the gas is used as fuel for heating the ovens52.

In terms of wholesaling, the main players in the South African industry operate storage terminals and distribution facilities throughout the country.

South Africa is a world leader in fuel conversion technologies and a recent World Bank report highlights the area as one of SA's core research and development strengths53. The petroleum refining companies are all involved in research in collaboration with universities.

FAST MOVING CONSUMER GOODS 2.3.3

The term ‘Fast Moving Consumer Goods (FMCG)’is used as the name of one of the Chemical Sector’s subsectors. However the FMCG sector in South Africa comprises a range of product categories that are not all applicable to the CHIETA. FMCG is defined as products that are sold quickly and that are commonly replaced or used up over a relatively short period. FMCG products are generally sold at supermarkets and have a high customer demand. The main products of the FMCG sector include personal care products (such as oral care, hair care, skin care, soaps, cosmetics, toiletries, deodorants, perfumes and shoe care), household care products (such as fabric cleaners, household

49

http://www.hsrc.ac.za/uploads/pageContent/3328/2011febSouth%20African%20Crude%20Oil%20import%20portfolio%20risks.pdf 50

http://www.investopedia.com/terms/o/oil-refinery.asp. Accessed 28 May 2013. 51

Ibid. 52

http://www1.ifc.org/wps/wcm/connect/9ecab70048855c048ab4da6a6515bb18/coke_PPAH.pdf?MOD=AJPERES. Accessed 28 May 2013. 53

http://www.bdlive.co.za/articles/2012/05/16/petrosa-launches-sa-s-first-academic-fuel-research-centre;jsessionid=71B5475152CA2825A9899B5441858237.present1.bdfm. Accessed 28 May 2013.

http://www.hsrc.ac.za/uploads/pageContent/3328/2011febSouth%20African%20Crude%20Oil%20import%20portfolio%25


http://www.investopedia.com/terms/o/oil-refinery.asp

http://www1.ifc.org/wps/wcm/connect/9ecab70048855c048ab4da6a6515bb18/coke_PPAH.pdf?MOD=AJPERES

http://www.bdlive.co.za/articles/2012/05/16/petrosa-launches-sa-s-first-academic-fuel-research-centre;jsessionid=71B5475152CA2825A9899B5441858237.present1.bdfm


29

cleaners, insecticides, metal polish and furniture polish), and food and beverage products (such as soft drinks, cereals, bakery products, snack food, tea, coffee; processed fruits, vegetables and meat; dairy products, bottled water, flour, sugar).

In the CHIETA the FMCG subsector consists of all consumer chemicals, such as soaps and cleaning chemicals, as well as cosmetics and toiletries. Industrial cleaning chemicals, which are regarded as speciality chemicals, are excluded.

PHARMACEUTICALS 2.3.4

Formulated pharmaceutical products include all products in final application dosage and form for use in human and animal medicinal applications. Pharmaceutical products are in a separate subgroup due to their highly controlled environment, as well as the impact of Government in controlling the major share of the end-use market, i.e. the public health system. The major product categories in terms of product form are: tablets, capsules, liquids, creams, steriles and injectables. The major product categories in terms of therapeutic use include: analgesics, anti-diarrhoeals, anti-microbials, urinary system, gastro-intestinal tract, respiratory system, central nervous system, endocrine system, muscular-skeletal agents, vitamins, tonics and minerals.

EXPLOSIVES 2.3.5

The Explosives Subsector comprises the activities surrounding the manufacture and distribution of explosives. The key activities in this subsector include the designing of explosives, the manufacturing of explosive materials and the specialised transportation required to distribute the products. Explosives are manufactured for use in mining and civil construction and for military use.

FERTILISERS 2.3.6

Bulk formulated chemicals are formulated products compounded from high volume, commodity based chemicals. This includes mainly fertilisers and explosives.

Organic fertilisers that are more specialised and smaller volume products are included in this subsector.

SPECIALITY CHEMICALS 2.3.7

Speciality chemicals are chemicals that serve specific purposes. In South Africa there are more than 50 categories of speciality chemicals, including textile dyes and chemicals, leather dyes and chemicals, pharmaceutical intermediates, intermediates for pesticides and herbicides, pigments, additives, electronic chemicals, adhesives, plastics, paints and water treatment chemicals.

SURFACE COATINGS 2.3.8

Surface coating includes any mixture of film-forming materials plus pigments, solvents and other additives, which yields a thin film that is functional and often decorative when applied to a surface and dried. Surface coatings include paints, drying oils and varnishes, synthetic clear coatings and other products with the primary function of protecting the surface of an object from the environment. These products can also enhance the aesthetic appeal of an object by emphasising its surface features or even by concealing them from view54.

54

Encyclopaedia Britannica, Surface Coating. http://global.britannica.com/EBchecked/topic/575029/surface-coating

http://global.britannica.com/EBchecked/topic/575029/surface-coating

30

Most surface coatings employed in industry and by consumers are based on synthetic polymers - that is, industrially produced substances composed of extremely large, often interconnected molecules that form tough, flexible, adhesive films when applied to surfaces. The other component materials of surface coatings are pigments, which provide colour, opacity, gloss and other properties; solvents or carrier liquids, which provide a liquid medium for applying the film-forming ingredients; and additives, which provide a number of special properties.

GLASS 2.3.9

The Glass Subsector involves the manufacture of raw glass by melting various raw materials (e.g. soda ash), which is converted into products. The Glass Subsector is divided into four main sub-industries55:

Glass manufacturing (mass production),

Glass processing and distribution,

Fibreglass manufacturing, and

Industrial mineral and manual glass production.

Similar to the broader chemicals sector, the glass sector is linked to other sectors of the economy, such as mining (of raw materials), building and construction, automotive manufacturing, boatbuilding, aircraft manufacturing, solar energy and other industries that use glass in the manufacturing of products or in the packaging of products.

There are various types of glass which are used to manufacture a variety of products used in these sectors: container glass, flat glass, domestic glass, glass wool fibre, reinforcement fibres, optic fibre, special glass and glass frits.

2.4 ORGANISATIONS IN THE CHEMICAL SECTOR

EMPLOYERS 2.4.1

In the 2013/14 financial year a total of 1 924 companies paid skills development levies to the CHIETA. This figure increased by 139 from the previous financial year. This increase can mainly be attributed to very small companies that started to pay the SDL – probably because their payrolls exceeded the levy threshold of R500 000 per year.56

The Petroleum subsector contributed 45% of the levies paid in 2013/2014 although companies in this subsector only comprised 10% of the total number of levy-paying companies in the Chemical Sector (Figure 2-1). The reason for this is the presence of a few very large companies in this subsector.

The Pharmaceutical subsector contributed 14% of the levies paid and the Base Chemicals subsector 11%. This is followed by Speciality Chemicals (10%) and FMCGs (8%). The other subsectors are relatively small. The Glass and Surface Coatings subsectors contributed 4% each to the total levy amount, the Fertilisers subsector 3% and the Explosives subsector 2%. The CHIETA received levies from a small number of organisations that do not, in terms of their activities and focus, belong in the

55

GIEA. (2010). The Glass Industry Employers’ Association. 56

The levy threshold has not been adjusted since 2006.

http://www.britannica.com/EBchecked/topic/206927/film

31

Chemical Sector. They constituted 1% of the organisations in the sector and contributed only a very small amount – less than 0.5% of the total levy amount.57

Figure 2-2Subsectoral distribution of levy-paying organisations and levy-amounts paid: 2013/2014

Source: CHIETA data system, extracted June 2014.

Figure 2-3 shows that 45% of companies that paid levies to the CHIETA in 2013/2014 were located in Gauteng, followed by 19% in KwaZulu Natal and 16% in the Western Cape. The Northern Cape only had 1% of companies. The companies in the Chemical Sector are mostly located in urban areas.

57

These organisations form a very small component of the sector and they seldom submit WSPs to CHIETA. They have

been excluded from the workforce profile presented in Section 2-5.

29

0

4

11 9

10 9

20

7

1

11

2 3

8

4

45

14

10

4

0 0

5

10

15

20

25

30

35

40

45

50

Pe

rce

nta

ge

% of levy paying companies % of total levies paid

32

Figure 2-3Levy-paying organisations according to province: 2013/2014


The majority (80%) of the companies in the Chemicals Sector are classified as either micro (employing fewer than 5 people) or small (employing between five and 49 people) (Figure 2-4). Only 13% are categorised as medium (employing between 50 and 149 people) and 7% as large (employing more than 149 people).

The high prevalence of micro and small companies in the sector has major implications for the nature of the support which the CHIETA is required to provide to workplaces in relation to skills development.

Figure 2-4 Levy-paying organisations according to size categories: 2013/2014


Eastern Cape 5%

Free State 3%

Gauteng 45%

KwaZulu-Natal 19%

Mpumalanga 7%

Northern Cape 1%

Limpopo 2%

North West 2%

Western Cape 16%

Micro 34%

Small 46%

Medium 13%

Large 7%

33

The employers in the sector include a few strategic state owned companies58, for example:

the Nuclear Energy Corporation of South Africa (NECSA) which is in terms of Section 13 of the Nuclear Energy Act, No. 46 of 1999, the South African Nuclear Energy Corporation SOC Limited (Necsa) is, among other things, mandated to undertake and promote research and development (R&D) in the field of nuclear energy and radiation sciences and technology59 and

PetroSA, the integrated oil company under the Central Energy Fund (CEF) which is involved in the exploration for oil and gas onshore and offshore South Africa, as well as in the rest of Africa; the production of environmentally friendly petroleum fuels and petrochemical products from gas and condensate at its synfuels refinery outside Mossel Bay; and the management of oil storage facilities.

These companies play key roles in government strategies to stimulate the local economy.

EMPLOYER AND INDUSTRY ORGANISATIONS 2.4.2

The following employer associations are active in the Chemical Sector and are parties to the National Bargaining Council for the Chemical Industry:

Explosives Industry Employers’ Association

Fertilizer Industry Employers’ Association

Glass Industry Employers’ Association

Labour Affairs Association of the Pharmaceutical Industry

National Base Chemical Employers’ Association

National Fast Moving Consumer Goods Employers’ Association

National Petroleum Employers’ Association

National Speciality Chemicals Employers’ Association

Surface Coatings Industry Employers’ Association

In addition to the employer organisations that play a key role in labour relations and in collective bargaining processes, the sector also has various industry organisations whose main functions are to set and promote quality standards, represent the local industries in international forums and to market and promote the specific industries in various ways. These organisations, some of which are actively involved in CHIETA activities include:

The Chemical and Allied Industries' Association (CAIA)

The Cosmetic, Toiletry and Fragrance Association of South Africa (CTFA)

The Fertiliser Society of South Africa (FSSA)

The National Association of Pharmaceutical Manufacturers (NAPM)

The National Institute for Explosives Technology (NIXT)

The South African Glass and Glazing Association (SAGGS)

The South African Glass Institute (SAGI)

The South African Oil and Gas Alliance (SAOGA)

The South African Paint Manufacturers Association (SAPMA)

The South African Petroleum Industry Association (SAPIA).

58

A State owned company is either a company defined as a “state-owned enterprise” in the Public Finance Management Act 1 of 1999 or a company owned by a municipality. The majority of the provisions of a public company will apply to state-owned companies as well 59

http://www.necsa.co.za/Necsa/Company-Information-499.aspx, accessed 24 November 2012

34

Many of the employees in the sector are professionals and technicians who belong to voluntary professional associations and/or are registered with statutory professional councils such as the Engineering Council of South Africa (ECSA), the Health Professions Council of South Africa (HPCSA) and the Pharmacy Council of South Africa (PCSA). These organisations are in various ways involved in skills development and for this reason they are important role players to be considered in skills planning processes.

EMPLOYEE ORGANISATIONS 2.4.3

The following are the main trade unions active in the Chemical Sector:

Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU)

General Industries Workers Union of South Africa (GIWUSA)

Solidarity

South African Chemical Workers Union(SACWU)

United Association of South Africa(UASA)

These trade unions are all active in the CHIETA structures and the first four are members of the National Bargaining Council for the Chemical Industry.

GOVERNMENT DEPARTMENTS INVOLVED WITH THE SECTOR 2.4.4

As per the CHIETA constitution, the most relevant government departments are:

Department of Trade and Industry (the dti)

Department of Energy (DoE)

Department of Science and Technology (DST)

Department of Environmental Affairs (DEA).

2.5 EMPLOYMENT IN THE SECTOR

TOTAL EMPLOYMENT 2.5.1

Total employment in the Chemical Sector was estimated at 157 992 in March 2014. This is 1 444 people more than the estimated employment a year before – an increase of 1%. These figures were derived from weighting60 the WSP/ATR data submitted to CHIETA in June 2013 and in March 2014. The weighted data can be considered to be representative of the total sector and roughly corresponds with the total employment figure of 154 006 for the Petroleum, Chemicals and Glass Subsectors calculated by Quantec (2014)61.

EMPLOYMENT PER SUBSECTOR 2.5.2

More than a quarter (29%) of the workers in the Chemical Sector work in the Petroleum subsector followed by 15% in the Pharmaceutical subsector, and 14% and 13% in the Speciality Chemicals and Base Chemicals subsectors respectively (Figure 2-5).

60

Weighting was done separately for each subsector and was calculated by using the levy amounts paid by organisations in each subsector and the amounts paid by organisations that submitted WSPs.

61 Quantec data obtained in July 2014. These estimates are based on various national data sources.

35

Figure 2-5 Employees per subsector: March 2014

Source: WSP submissions, March 2014.

PROVINCIAL DISTRIBUTION OF EMPLOYEES 2.5.3

A total of 41% (65 000) of the workers in the Chemical Sector were based in Gauteng at the end of March 2014, followed by 17% in KwaZulu Natal, 13% in Mpumalanga, 12% in the Western Cape, and 7% each in the Eastern Cape and Free State. Only small numbers of people were based in the other provinces:3% in North West, 1% in Limpopo, and only 0.4% in the Northern Cape (Figure 2-6).

Figure 2-6 Provincial distribution of employees: March 2014

Base Chemicals 13%

Explosives 3%

Fast Moving Consumer

Goods 5%

Fertilisers 9%

Glass 6%

Petroleum 29%

Pharmaceuticals 15%

Speciality Chemicals

14%

Surface Coatings 6%

Eastern Cape 7% Free State

7%

Gauteng 41%

KwaZulu-Natal 17%

Limpopo 1%

Mpumalanga 13%

North West 2%

Northern Cape 0%

Western Cape 12%

36


Table 2-2 below shows the concentration of employees by province and subsector. High concentrations of employees across the different subsectors worked in Gauteng, except for the Petroleum subsector; 40% of the employees in the Petroleum subsector worked in Mpumalanga. A large contingent (35%) of employees in the FMCG subsector worked in KwaZulu Natal. This is also the case for the Surface Coatings subsector; almost a third (31%) of its employees worked in KwaZulu Natal.

37

Table 2-2 Provincial distribution of employees according to subsector: March 2014

Subsector Eastern Cape Free State Gauteng KwaZulu Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total

N % N % N % N % N % N % N % N % N % N %

Base Chemicals 964 5 1 934 9 8 774 42 4 201 20 648 3 1 148 6 1 248 6 164 1 1 579 8 20 662 100

Explosives 6 0 20 1 2 424 61 17 0 126 3 133 3 467 12 77 2 716 18 3 986 100

Fertilisers 84 1 1 615 21 2 330 31 1 673 22 113 1 734 10 217 3 92 1 693 9 7 550 100

FMCG 602 4 11 0 6 946 46 5 235 35 13 0 148 1 6 0 137 1 1 928 13 15 025 100

Glass 903 9 122 1 6 520 63 891 9 89 1 85 1 28 0 1 0 1 661 16 10 300 100

Petroleum 255 1 5 900 13 9 138 20 5 060 11 143 0 18 078 40 154 0 87 0 6 657 15 45 473 100

Pharmaceuticals 4 364 18 219 1 14 290 60 1 808 8 8 0 11 0 414 2 11 0 2 529 11 23 653 100

Speciality Chemicals 2 378 11 451 2 10 340 46 5 718 26 66 0 525 2 539 2 64 0 2 169 10 22 249 100

Surface Coatings 728 8 15 0 4 256 47 2 826 31 0 5 0 2 0 0 1 260 14 9 093 100

Total 10 285 7 10 288 7 65 017 41 27 429 17 1 206 1 20 867 13 3 075 2 633 0 19 193 12 157 992 100


38

EDUCATIONAL PROFILE OF EMPLOYEES IN THE SECTOR 2.5.4

Information about the educational levels of the workforce is regrettably not comprehensive (educational levels for 29% of the workforce were undefined in the March 2014 data).62Based on the information that is available, almost half (42%) of the employees held HET qualifications (NQF Levels 5 to 10), while 40%have qualifications at NQF Level 4. Only 3% have qualifications below NQF Level 1 (Figure 2-7).

Figure 2-7 Educational levels of employees: March 2014

Percentages do not add up to 100 because of rounding. Source: WSP submissions, March 2014.

Figure 2-8 shows the comparison between the educational levels of workers in the Chemical Sector and all the workers in South Africa. It is clear that employees in the Chemical Sector are proportionally higher educated than the employed population of South Africa. In March 201442% of the workers in the Chemical Sector held qualifications above NQF Level 4 compared to only 21% of all employed people in South Africa. Furthermore, only 3% of the workers in the Chemical Sector had not attained an NQF Level 1 qualification, compared to 20% of the employed population of South Africa. These figures clearly show the Chemical Sector’s relative high demand for high-level skills.

62

The educational distribution portrayed in this figure is based on only 71% of the individual records submitted as part of the March 2014 WSPs. The analysis of the records without educational information showed that they were distributed across all occupational groups. There is, therefore, no reason to suspect that the records with educational information do not provide a fair reflection of the educational profile of employees in the sector.

BelowLevel 1

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Level 9Level

10

% Employees 3 3 6 5 40 8 16 11 4 2 1

0

5

10

15

20

25

30

35

40

45

42% 17%

39

Figure 2-8 Comparison of educational distribution (NQF levels) of employees in the Chemical Sector and employed population in South Africa

Source:WSP submissions, March 2014 and Quarterly Labour Force Survey, March 2013.

EQUITY PROFILE OF EMPLOYEES IN THE SECTOR 2.5.5

The equity profile in terms of race, gender and disability of the employees is provided in the followingsections.

Race

Figure 2-9 shows that just over half (54%) of the employees were African and just more than a quarter (26%) were White. About a tenth were Coloured (11%) and Indian (9%) respectively.

< NQF1

NQF 1 NQF 2 NQF 3 NQF 4 NQF 5 NQF 6 NQF 7 NQF 8 NQF 9NQF10

% of employed population 20 6 10 10 32 1 12 4 3 1 0.3

% of employed in Chemical sector 3 3 6 5 40 8 16 11 4 2 0.7

0

5

10

15

20

25

30

35

40

45

Pe

rce

nta

ge

40

Figure 2-9 Race distribution of employees: March 2014


Gender

The gender distribution as presented in Figure 2-10 shows that men dominate the workforce in the Chemical Sector - more than two thirds (68%) of the workers were male. Of the female employees 44% were African (Figure 2-11).

Figure 2-10 Gender distribution of employees: March 2014


African 54%

Coloured 11%

Indian 9%

White 26%

Female 32%

Male 68%

41

Figure 2-11 Female employees in the Chemical Sector by race: March 2014


Table 2-3 provides information on the race and gender composition of each of the occupational groups employed in the Chemical Sector. A total of 6.4% of the managerial positions in the sector are filled by African women and 14.5% by African men. African women form 13.8% of the professionals in the sector, 12.4% of technicians and associate professionals and 20.0% of clerical support workers.

African Female,

22 073, 44%

Coloured Female,

7 104, 14%

Indian Female,

4 864, 10%

White Female,

16 188, 32%

42

Table 2-3 Race and gender profile of employees per occupational group: March 2014

Occupation Group African Coloured Indian White Total

Total Female Male Female Male Female Male Female Male Female Male

Managers N 1 181 2 668 510 829 750 1 799 3 121 7 481 5 562 12 776 18 339

% 6.4 14.5 2.8 4.5 4.1 9.8 17.0 40.8 30.3 69.7 100.0

Professionals N 3 213 4 032 1 018 1 016 1 468 1 548 5 347 5 597 11 045 12 193 23 238

% 13.8 17.3 4.4 4.4 6.3 6.7 23.0 24.1 47.5 52.5 100.0

Technicians and associate professionals

N 3 936 12 760 1 189 2 014 911 1 949 3 052 5 931 9 089 22 654 31 743

% 12.4 40.2 3.7 6.3 2.9 6.1 9.6 18.7 28.6 71.4 100.0

Clerical support workers N 3 372 3 866 1 755 1 082 1 232 912 3 638 1 004 9 997 6 863 16 861

% 20.0 22.9 10.4 6.4 7.3 5.4 21.6 6.0 59.3 40.7 100.0

Service and sales workers N 679 1 465 218 273 152 166 502 394 1 551 2 298 3 849

% 17.6 38.1 5.7 7.1 4.0 4.3 13.0 10.2 40.3 59.7 100.0

Craft and related trades workers N 645 5 140 105 1 100 15 403 67 2 786 832 9 430 10 262

% 6.3 50.1 1.0 10.7 0.1 3.9 0.6 27.2 8.1 91.9 100.0

Plant and machine operators N 2 980 20 211 938 2 529 128 990 169 883 4 215 24 613 28 828

% 10.3 70.1 3.3 8.8 0.4 3.4 0.6 3.1 14.6 85.4 100.0

Elementary occupations N 5 235 12 181 1 281 1 618 103 355 142 756 6 760 14 910 21 670

% 24.2 56.2 5.9 7.5 0.5 1.6 0.7 3.5 31.2 68.8 100.0

Learners N 824 1 264 86 131 102 234 138 242 1 151 1 872 3 023

% 27.2 41.8 2.9 4.3 3.4 7.8 4.6 8.0 38.1 61.9 100.0

Total N 22 064 63 588 7 101 10 592 4 861 8 356 16 175 25 074 50 202 107 610 157 812

% 14.0 40.3 4.5 6.7 3.1 5.3 10.2 15.9 31.8 68.2 100.0 Source: WSP submissions, March 2014.

43

Disability

There were 1 245 employees with disabilities working in the Chemical Sector by the end of March 2014. This equates to 0.8% of all employees in the sector. Figure 2-12 below displays the proportion of disabled employees by subsector. The Fertiliser subsector had the highest proportion of disabled employees– 1.0% and the Glass Subsector the lowest – 0.3%.

Stakeholders noted that it is difficult to employ disabled people (depending on their disability) in certain occupations due to health and safety requirements. It is particularly difficult in key production occupations. However, there was an acknowledgement that more effort needs to be made to identify those occupations in which people with disabilities can be employed and to recruit people with disabilities for these occupations. In addition, CHIETA will work with stakeholders on training around disability awareness. CHIETA is supporting projects aimed at people with disabilities through the discretionary grants.

Figure 2-12Percentage employees with disabilities per subsector: March 2014


AGE PROFILE OF EMPLOYEES IN THE SECTOR 2.5.6

More or less a third (37%) of the workforce in the Chemical Sector were younger than 35 and half (50%) between the ages of 35 and 54 (Figure 2-13). Nine per cent were close to retirement (between the ages of 55 and 64). The age distributions of the different subsectors are very similar (Figure 2-14).

The average age for all the occupation groups was between 38 and 40. The exception was managers whose average age was 45.

0.6

0.8 0.7

1.0

0.3

0.9 0.9 0.9

0.6

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Pe

rce

nta

ge

44

Figure 2-13 Age distribution of employees: March 2014


Figure 2-14 Age distribution of employees by subsector: March 2014


16-34 years 35-54 years 55-59 years 60-64 years 65+

Employees (%) 37 50 8 1 4

0

10

20

30

40

50

60

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Base Chemicals

Explosives

FMCG

Fertilisers

Glass

Petroleum

Pharmaceu-ticals

Speciality Chemicals

Surface Coatings

BaseChemicals

ExplosivesFMCGFertilisersGlassPetroleumPharmaceu-

ticalsSpecialityChemicals

SurfaceCoatings

15-34 363240363836373343

35-54 505148524853505348

55-59 8117797785

60-64 454443442

65+ 111211221

45

2.6 SPECIAL CHARACTERISTICS OF THE SECTOR

In this section a few of the characteristics of the Chemical Sector that have a direct impact on skills development are discussed.

REGULATORY ENVIRONMENT 2.6.1

The Chemical Sector is, in general, a highly regulated environment – some of the subsectors more so than others. The regulations impacting on the sector span a whole array of areas including control over the country’s natural resources and energy supply; the handling of hazardous materials; occupational health and safety; control over medication; protection of patents and intellectual property rights and various others. Many of the regulations have a direct bearing on the types of skills that the sector can and may employ. Certain positions in organisations are, for example, reserved for registered professionals because they require high levels of skills and professional accountability.

OFFSHORE OPERATIONS 2.6.2

Some of the activities in the Chemical Sector entail the exploration and extraction of oil and gas at offshore sites. The offshore operations require skills sets that are unusual and very specific to the offshore environments.

GLOBAL INTEGRATION 2.6.3

The South African Chemicals Sector is in various ways integrated in and influenced by international economic trends and markets. Many of the raw materials are imported, many companies export their products and a number of companies in the sector, specifically in the Pharmaceutical and Petroleum subsectors, are multi-nationals. In many respects the South African Chemicals Sector is bound to international quality, safety and environmental standards.

The fact that the sector is highly integrated in the global environment has many implications, some of which are listed below:

The sector is much affected by foreign trade policies (local as well as those of trading partners);

The sector is sensitive to fluctuations in exchange rates;

Multi-national companies have to adhere to accounting and administrative practices that satisfy the local legislative requirements, as well as those of their mother companies and the countries where they are located. In some instances it even leads to companies keeping two accounting systems – one based on the South African Rand and another in US dollars or Euros. This in turn has an impact on the skills needed by those companies63.

Staffing and human resources development are complex in the international environment. International companies have to ensure that their employees are adequately equipped to implement international business strategies. They also have to overcome shortages of skilled managers and professionals, particularly in emerging markets and they need to train their staff to be sensitive to cultural differences in the workplace and marketplace.

South African operations of multi-nationals have to adhere to the training requirements and standards prescribed by their mother companies. In most instances programmes aimed at these requirements are not accredited in South Africa and for this reason the companies cannot claim any grants for this training64.

63

Petroleum and Base Chemicals stakeholder workshop, 22 June 2013. 64

Ibid.

46

The sector is dependent on advanced technological training that is not available locally. This training has to be procured at very high cost.

SCIENTIFIC BASE AND DEPENDENCE ON RESEARCH AND DEVELOPMENT 2.6.4

The Chemical industry plays a major role in research and development (R&D) in the country and the industry is seen as a leader in innovation. Companies in the Chemical Sector are mainly involved in R&D in order to keep their competitive advantage (by developing new or better products, processes and technology) and to reduce their environmental impact6566. The sector’s dependence on R&D means that it is also dependent on highly skilled professionals and scientists – some of which are often in short supply in South Africa.

TRANSFORMATION 2.6.5

Transformation remains a challenge for the Chemical Sector. However, overall reporting on the Chemical Sector’s progress in relation to transformation is difficult as, in terms of the Commission for Employment Equity’s (CEE) classification, most employers in the CHIETA fall within the Manufacturing Sector for the purposes of Employment Equity (EE) reporting. In the published reports, the Chemical Sector is not shown as a separate sector. In addition, the occupational classification used for the purposes of EE reporting is not based on the Organising Framework for Occupations (OFO).

Nevertheless, in order to form an idea of transformation in the sector, the Chemical Sector is compared to the profile of all private sector companies who submitted EE reports for the 2013/2014 period. Figure 2-15 below shows that Whites and Indians are over-represented in the Chemical Sector while Africans are under–represented.

Figure 2-15 Race and gender profile of the Chemical Sector compared to the profile of all companies that submitted EE reports

Source: WSP submissions, March 2014 and CEE Annual Report, 2013/201467

.

65


Pharmaceutical stakeholder workshop, 26 June 2013. 67

Department of Labour, 14th

Commission for Employment Equity Annual Report, 2013-2014.

AM AF CM CF IM IF WM WF

All private companies (%) 45 25 6 6 2 2 8 6

Chemicals Sector (%) 40 14 7 4 5 3 16 10

0

5

10

15

20

25

30

35

40

45

50

47

Another way of evaluating the transformation of the sector is by comparing the racial profile of the sector to that of all employees in South Africa. This comparison can be seen in Figure 2-16. This figure also makes it clear that proportionally White and Indian people are over-represented in the Chemical Sector, while African people are under-represented.

Figure 2-16 Comparison of race of employees in the Chemical Sector and employed population of South Africa

Source:WSP submissions, March 2014and Quarterly Labour Force Survey, March 2014.

The Petroleum Subsector is the only subsector that is subject to a transformation charter: the Petroleum and Liquid Fuels Charter (LFC) of 2000. The LFC was created to achieve the policy objectives of the 1998 Energy White Paper. The LFC covers the following elements of transformation:

Ownership

Management control

Supportive culture

Capacity building

Employment equity

Private sector procurement

Access to infrastructure

Refining capacity

Retailing

Wholesaling

Financing

Terms of credit

Synfuel supply

An audit was conducted in 2011 on the implementation of the LFC. The aim of the audit was to measure the extent of compliance, as well as the effectiveness of the LFC between 2000 and 2010.

African Coloured Indian White

Employed in the Chemicals Sector(%)

54 11 8 26

Employed population in SA (%) 73 11 3 13

0

10

20

30

40

50

60

70

80

48

The audit measured the companies against the elements mentioned in the previous paragraph. Some of the major findings were the following 6869:

The performance at sub-element level yielded only 19% outright “Yes” (full compliance)

answers.

The average performance level using a semi-scientific basis is 48% of the LFC requirements,

whilst the overall compliance level is 62%.

The performance rate on BBBEE requirements is 70%.

The top 4 sub-elements that scored a “Yes” are ownership and procurement related. The top 6

worst performing requirements, scoring an overall “no” are related to the three worst

performing elements, being capacity building, employment equity (EE) targets and access to

infrastructure.

The two top performing elements in terms of the LFC were management control and ownership,

whilst the worst performing elements were enterprise development, skills development and EE.

The overall average compliance level with each sub-element is 3.5 out of 7 companies.

The results are very similar to the BEE ones in terms of the worst performing elements, where-in

skills development and employment equity scored lowest. The top performing element in both

frameworks is management control.

The major difference between the LFC and BEE results is with respect to enterprise

development. It is the worst performing element with the LFC, yet was in second place under

BEE.

All scores improved significantly since 2006, because of the time lag. However, the following

four indicators have worryingly decreased: Supportive Culture: Full time Executive Director

Level; Capacity Building: Total skills spend on historically disadvantaged South Africans (HDSAs),

percentage spend on HDSA’s and learnerships; Employment Equity: semi-skilled and unskilled

Black people and Retailing.

HEALTH AND SAFETY 2.6.6

Many of the substances used and produced by the Chemical Sector are potentially hazardous and if the correct preventative measures are not instituted and adhered to workers may be exposed to diseases or injuries such as chemical burns, asthma, allergies, irritant contact and allergic contact dermatitis, skin infections and injuries, skin and other cancers etc.

The South African Chemical Sector is committed to the continuous improvement of its health, safety and environmental (SHE) performance and is part of the international initiative called “Responsible Care”. This initiative is voluntary and is co-ordinated in South Africa by CAIA. Participating organisations (of which there are currently 136 in South Africa) commit themselves and their employees to the principles and the code of practice of the initiative.70

68 DoE. (2011). Petroleum and liquid fuels charter: Final audit report.http://www.energy.gov.za/files/media/Pub/PetroleumAndLiquidFuelsCharter_AuditReport.pdf. Accessed 30 May 2013. 69

Odendaal, N. (2012). Engineering News Online. Liquid fuels charter audit findings disappointing. 5 July 2012.http://www.engineeringnews.co.za/article/liquid-fuels-charter-audit-findings-disappointing-minister-2012-07-05. Accessed 30 May 2013. 70

CAIA, (2013) Responsible Care 2013 - South African Performance Report.

http://www.energy.gov.za/files/media/Pub/PetroleumAndLiquidFuelsCharter_AuditReport.pdf

http://www.engineeringnews.co.za/article/liquid-fuels-charter-audit-findings-disappointing-minister-2012-07-05

49

The number of fatalities reported by participants in Responsible Care can be seen in Table 2-4. In 2007 seven people died as a result of incidences in the industry. In 2009 this figure rose to 16 and in 2010 it was 14. Fatalities dropped to eight in 2011 but in 2012 it rose again to 11.

Table 2-4 Fatalities in the Chemical Sector: 2007 to 2011

2007 2008 2009 2010 2011 2012

Employees 3 1 8 9 5 9

Contractors* 4 3 8 5 3 2

Total 7 4 16 14 8 11 *A contractor is a person who is not an employee but provides services tothe facility. Source: CAIA, Responsible Care 2013 - South African Performance Report.

Participants also reported on injuries sustained in the work environment. Recordable injuries are those resulting from incidents which arise out of or during an employee’s normal course of duty and the execution of work-related responsibilities and which requires more than first aid treatment. Injuries are monitored with the use of the recordable injury incident rate which is the number of recordable injuries for every 200 000 hours worked. In the period 2007 to 2009 the recordable incident rate was far below the international figures reported by the International Council of Chemical Associations (ICCA). However, in 2010 it shot up and exceeded the international figure. In 2012 the Recordable Incident Rate for in-house incidents in South African companies reached an all-time high of 0.943. At the same time the rate for contractors decreased substantially to only 0.441 (Table 2-5).

Table 2-5 Recordable Incident Rate

2007 2008 2009 2010 2011 2012

Recordable Injuries/200 000 hours worked

In-house 0.432 0.411 0.374 0.805 0.796 0.943

Contractors 0.438 0.374 0.528 0.829 0.693 0.441

ICCA (International data) 0.780 0.910 0.830 0.710 0.862 *

*Not yet available. Source: CAIA, Responsible Care 2013.

From these statistics it is clear that the South African organisations that participate in the Responsible Care initiative fare relatively well in terms of occupational health and safety. There is currently no empirical information available on the performance of the total sector. Nevertheless, the importance of health and safety in the sector is undisputed and skills development initiatives and interventions should be shaped with this in mind.

ENVIRONMENT AND POLLUTION 2.6.7

The Chemical Sector is inevitably a contributor to different forms of pollution. The containment of pollution and the responsible handling of chemical waste are also key elements of the functioning of the sector that impact on its skills needs and on its skills development interventions.

As mentioned in the previous section, the South African Chemical Sector is an active participant in the international Responsible Care initiative. Companies that participate in this initiative strive to meet and go beyond legislative and regulatory compliance in terms of occupational health and safety and environmental impact. They also measure different aspects health, safety and environmental impact and report to CAIA on a number indicators which, in turn allows for

50

international comparisons. At this stage the South African industry compares favourably with international benchmarks.71

The petroleum industry faces several significant challenges pertaining to environmental impact. Reducing the level of harmful emissions from motor vehicles is a critical issue for the subsector. Efforts are being made to improve the quality of the liquid fuels being used to reduce the environmental impact of the sector. The DoE aims to have new cleaner fuels standards introduced by July 2017. The National Association of Automobile Manufacturers (Naamsa) is supporting the DoE in this regard by endorsing the products of those oil companies who are prepared to supply the cleaner fuel before 201772. Two of the country’s crude oil refineries have shown their intention to prepare for the implementation of the cleaner fuels specifications. This entails the modification and upgrading of existing facilities and the building of new plants73.

TRANSPORTATION 2.6.8

The transportation of chemical products takes place at various stages in the value chain and forms an integral part of the economic activities in the sector. The transportation of chemical products is strictly regulated by law and requires specialist skills. This is therefore an aspect that needs to be considered in skills planning.

2.7 CONCLUSIONS

In March 2013 there were 1 924 levy paying companies in the Chemical Sector. Even though the Petroleum Subsector only comprises 10% of the total number of levy paying companies in the sector it contributed to 45% of the levies paid. The majority (80%) of the companies in the Chemicals Sector are classified as either micro or small. The high prevalence of micro and small companies in the sector has major implications for the nature of the support which the CHIETA is required to provide to workplaces in relation to skills development.

The Chemical Sector employs approximately 158 000 people. More than a quarter (29%) of the workers are employed in the Petroleum Subsector. High concentrations of employees across the different subsectors work in Gauteng, except for the Petroleum Subsector; 40% of the employees in the Petroleum Subsector work in Mpumalanga. Employees in the Chemical Sector are better educated than the total South African employed population. Almost half (42%) of the workers in the Chemical Sector hold qualifications above NQF Level 4 compared to only 21% of all people employed in South Africa. The age distributions of the different subsectors are very similar. Eight per cent of the workers in the Chemical Sector are close to retirement (between the ages of 55 and 59).

In terms of equity just over half (54%) of the employees are African. When compared to the employed population of South Africa it is clear that White and Indian people are relatively over-represented in the Chemical Sector. African women are particularly under-represented.

71

Ibid. 72

Creamer Media, (2012). Liquid Fuels 2012: A review of South Africa's liquid fuels sector. 73

Ibid.

51

3. THE ECONOMIC PERFORMANCE OF THE SECTOR

3.1 INTRODUCTION

In this chapter an overview is given of the economic performance of the Chemical Sector. In Chapter 2 of this SSP it was indicated that the subsector demarcations followed in the CHIETA don’t correspond with those of the SIC. The national accounts data that is used in this section are based on the SIC and also don’t correspond perfectly with the CHIETA subsectors. An explanation of the mapping of the SIC subsectors represented in the economic data to the CHIETA subsectors can be seen in Annexure C. The first section of this chapter is descriptive and provides insight into the size of the sector in relation to the total South African economy, its contribution to the total economy and its performance over the past ten years. The section also provides an overview of the economic performance of the different subsectors over the last ten years.

The second part of the chapter looks at the factors that influence the growth of the Chemical Sector. The factors that are considered include: world economic performance; exchange rates; the availability and cost of raw materials; the performance of other sectors of the local economy; consumer markets and consumer spending and administered, logistics and compliance costs and government’s interventions specifically aimed at growing the Chemical Sector or components of it.

3.2 THE CHEMICAL SECTOR’S CONTRIBUTION TO THE NATIONAL ECONOMY

In 2013 the Chemicals Sector contributed 4.4% of the South African gross domestic product (GDP). The subsector Coke and Refined Petroleum Products contributed 2.1% and the subsector Other Chemicals and Man-made Fibres contributed 1.0%. The sector was responsible for 15.7% of the country’s imports. The Coke and Refined Petroleum Products subsector was responsible for 6.2% of imports and the Other Chemicals and Man-made Fibres subsector for 5.0%. At the same time the Chemical Sector contributed 12.6% of the country’s exports.

The Chemical Sector is capital intensive and in 2013 it accounted for 6.0% of the total capital stock while it contributed only 1.2% of total employment in the country. (Table 3-1.)

Table 3-1 The Chemicals Sector’s contribution to the South African economy: 2012

Subsector GVA Imports Exports Capital stock Employment

Coke & refined petroleum products 2.1% 6.2% 3.2% 3.6% 0.2%

Basic chemicals 0.8% 3.5% 6.7% 1.2% 0.1%

Other chemicals & man-made fibres 1.0% 5.0% 2.1% 0.6% 0.3%

Non-metallic minerals 0.5% 0.8% 0.4% 0.5% 0.5%

Glass & glass products 0.1% 0.2% 0.2% 0.1% 0.1%

Total petroleum, chemicals & glass 4.4% 15.7% 12.6% 6.0% 1.2%

Source: Quantec

52

3.3 THE ECONOMIC PERFORMANCE OF THE CHEMICAL SECTOR

IMPORTS AND EXPORTS 3.3.1

South Africa is currently a net importer of chemical products. In 2003 exports exceeded imports by a slight margin. However, this situation changed in 2004 and from that time onwards it worsened systematically. In 2013 the value of imports was almost double the value of exports (Figure 3-1). This was mainly caused by a dramatic increase in imports in the Coke and Refined Petroleum Products and in the Other Chemicals and Man-made Fibres subsectors, while the exports of these two subsectors remained almost unchanged.

Figure 3-1 Imports and Exports of the Chemical Sector 2003 - 2013

Source: Quantec

GROWTH IN GROSS VALUE ADDED 3.3.2

Gross value added (GVA) at basic prices (normally used in relation to a sector) or gross domestic product (GDP) (normally used in relation to a national economy) is defined as output minus intermediate consumption. GVA (or GDP) is usually considered to be the best measurement of the activity within and performance of a sector (or economy).

The growth of the respective subsectors and of the Chemical Sector as a whole over the last decade is illustrated in Figure 3-2. As Figures 3-2 (a) – (e) show, the performance of the different subsectors varied substantially over the years. In 2003 most of the subsectors contracted and the Chemical Sector as a whole declined by 1.5%. In the period 2004 to 2008 the sector showed positive growth although some of the subsectors contracted. In 2009 all the subsectors, with the exception of Basic Chemicals, declined. In that year the Chemical Sector declined by 7.9%. In the subsequent three years the sector recovered and grew by 5.4% in 2010, by 8.6% in 2011 and by 5.5% in 2012 even though some of the subsectors showed periods of contraction. In 2013 the sector grew by only 1.1%. The subsector that performed the best in that year was Other Chemicals and Man-made Fibres (5.1%)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Imports 35 541 41 621 49 326 62 845 77 864 77 429 65 199 76 699 92 214 93 516 100 57

Exports 38 922 39 534 46 794 44 693 51 564 56 850 40 923 45 389 55 493 59 747 62 033

0

20 000

40 000

60 000

80 000

100 000

120 000

R m

illio

n (

20

05

pri

ces)

53

(a) Coke and refined petroleum products (b) Basic chemicals

(c) Other chemicals and man-made fibres (d) Non-metallic minerals

(e) Glass and glass products (f) Total petroleum, chemicals and glass Figure 3-2 Economic performance of the Chemical Sector and subsectors: 2003 - 2013

Source: Quantec

1.7%

6.0% 3.0%

10.1%

5.6%

-1.3% -4.5%

3.1%

26.7%

20.3%

-0.9%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

20032004200520062007200820092010201120122013 -0.9% -4.5%

8.8% 7.5%

1.9% 2.1% 4.6%

7.2%

-6.4% -9.6%

2.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

20032004200520062007200820092010201120122013

-5.6%

14.2% 16.1%

6.2% 5.1% 3.0%

-12.7%

3.9%

-0.9% -4.7%

5.1%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

20032004200520062007200820092010201120122013-3.3% -3.8%

4.1% 6.2% 5.3%

0.4%

-25.7%

12.1% 8.5%

0.6% 0.2%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

-3.4%

13.1%

6.7% 3.4% 4.7% 4.8%

-15.8%

9.0%

-6.7%

-0.9%

1.4%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

20032004200520062007200820092010201120122013 -1.5%

4.3% 7.8% 7.7%

4.6% 1.0%

-7.9%

5.4% 8.6%

5.5%

1.1%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

54

3.4 FACTORS THAT INFLUENCE THE ECONOMIC PERFORMANCE OF THE SECTOR

The economic performance of the Chemical Sector is influenced by a host of factors. These factors do not necessarily have the same impact on the respective subsectors. Some of the most pertinent factors are discussed below.

THE AVAILABILITY AND COST OF RAW MATERIALS 3.4.1

The Chemical Sector’s most important inputs are organic substances, crude oil and gas. All of these are non-renewable resources whose prices are subject to long-term upward pressure.74All the subsectors of the Chemical Sector are influenced by the availability and cost of feedstock and raw materials used in the production of chemical products. Most of the subsectors are dependent on imported feedstock. As indicated earlier in this chapter, the sectors’ imports in 2012 amounted to approximately R95 billion.

Because South Africa has very limited crude oil reserves or resources, oil refineries are mainly dependent on crude oil imports from countries such as Iran, Saudi Arabia, Nigeria, Angola and Oman75. This makes the country vulnerable to decreases in world oil exports and to rising prices. The availability of crude oil to South Africa could be influenced by several factors, including: the continuing rise in domestic oil consumption in oil exporting countries; depletion of reserves and production in oil exporting countries; wars, conflict and political uncertainty in oil exporting countries; sanctions on oil exports from oil producing countries (for example Iran); and the increase in the demand for oil from large and developing economies such as China76. Rising crude oil prices reduce profit margins along the value chain.

INTERNATIONAL TRENDS IN CHEMICAL PRODUCTION 3.4.2

The global chemicals industry has grown steadily over the past decades. In the period 2000 to 2010 the industry increased by 54%. However, this growth was uneven with some countries experiencing particularly rapid growth compared to the rest of the world. China’s production nearly tripled over the period and in 2010 China was the largest chemical producing country, with sales of US$ 754 billion. China’s share in world production rose from 6.4% to 24.4%. The share of other Asian countries and of Latin America also rose in recent years, while the European Union’s share declined from 29.2% to 20.9%.

Africa’s contribution to global chemical production is small. However, South Africa’s chemical industry is the largest in Africa. Other African countries with relatively strong chemical industries are Algeria, Egypt, Libya, Morocco, Tunisia and Nigeria. Currently, petrochemical commodities, polymers and fertilizers are the main chemical products of African countries.

OECD countries are the major producers of higher-value chemicals such as specialty chemicals, but indications are that companies in China, India, and the Middle East are increasingly investing in the production of specialty and fine chemicals.77

The phenomenal growth in chemical production by large economies such as China and India may have a negative effect on the local sector’s competitiveness – not only in international markets but

74

Department of Labour, (2008). 75



UnitedNations Environment Programme (UNEP) (2013). Global Chemicals Outlook – Towards Sound Management

of Chemicals.

55

also in the domestic market. In the workshops that preceded this SSP update some stakeholders reported that their subsectors are threatened by imports – especially from China. The extent to which local markets are protected through tariffs also has an effect on the growth of the local chemical industry.

Contrary to this, growth in chemical production and consumption in the rest of Africa is potentially positive for the local industry. Many South African companies are expanding their operations to the rest of Africa and/or export intermediate products to the chemical industries in other African countries.

GROWTH IN EXPORT MARKETS 3.4.3

Despite the growth in competition from fast-growing countries, the South African Chemicals Sector is looking at growing its export markets. The sector is dominated by large companies in the Petroleum, Base Chemicals, Pharmaceutical and Speciality Chemicals Subsectors. Some of the companies in the sector have diversified and expanded their interests in tertiary products, especially those with export potential78. Some companies are in the process of expanding their export markets – especially into the rest of Africa.

Outside of the borders of South Africa the growth in the Petroleum industry provides a huge opportunity for South Africa to become a major role player in supplying services related to logistics, repair and maintenance. It is foreseen that South Africa can become a hub for the sub-Saharan region in this regard. 79 Initiatives like these could have a profound effect on the growth of the sector.

GLOBAL ECONOMIC GROWTH 3.4.4

The level of global economic growth influences the Chemical Sector in several ways, for example:

Economic growth in the rest of the world increases the demand for chemicals and may open up new export markets or increase the demand from existing markets;

Subdued global growth may, on the other hand, increase competition from imports;

The prices of input commodities are affected by the level of growth in the rest of the world.

EXCHANGE RATES 3.4.5

The South African Rand is one of the most volatile currencies in the world; it can exhibit moves of greater than 0.20c in a single day of trading versus the US dollar.80Exchange rate instability generally causes an uncertain environment for investment. According to the NDP Rand volatility poses great difficulty for both exporters and importers and for small- and medium-sized enterprises in particular.81

Apart from its volatility the Rand is also the worst performing emerging market currency and has weakened by more than 20% against the US dollar since the beginning of August 2011.82Given the overall trade deficit of the Chemical Sector and its dependence on imported raw materials, the negative effects of a weaker exchange rate can be expected to outweigh sector benefits accruing

78


Ibid. 80

PSG Online, http://www.psgonline.co.za/docs/mandates/IRC_Brochure_Currency_Trader.pdf, Accessed 19 August 2013. 81

National Planning Commission, National Development Plan 2030. Our Future – Make it Work. 82

Stanlib, Economic Focus, http://www.stanlib.com/EconomicFocus/Pages/SARandexchangerateNov2011.aspx, Accessed 19 August 2013.

http://www.psgonline.co.za/docs/mandates/IRC_Brochure_Currency_Trader.pdf

http://www.stanlib.com/EconomicFocus/Pages/SARandexchangerateNov2011.aspx

56

from higher export earnings. Although it could be argued that a weaker exchange rate could support import substitution industries, the weakening would probably have to be substantial and sustained for that effect to have a meaningful impact.

THE PERFORMANCE OF OTHER SECTORS OF THE ECONOMY 3.4.6

There are strong linkages between the Chemical Sector and the Manufacturing Sector which uses chemical products in the majority of its processes. This implies that the fortunes of the Chemical Sector are fairly closely correlated with those of manufacturing. Manufacturing is the biggest of the “production” sectors, contributing approximately 15% of total GDP. However, the Manufacturing Sector has been particularly badly affected by the slowdown that started in 2008. Although the sector has recovered to some extent, key leading indicators for the Manufacturing Sector in general are pessimistic: In the second quarter of 2014, the Bureau for Economic Research’s manufacturing business confidence index fell sharply to 25, from 41 in the previous quarter. This was the lowest level since the start of the cyclical upswing late 2009. Most of the underlying activity indicators deteriorated and the domestic demand as well as output indicators even fell back to levels last reported in the wake of the 2009 recession. 83The Explosives Subsector is directly affected by the performance of the mining and construction industries while several of the other subsectors are dependent on mining for raw materials. Factors such as labour unrest and volatility in the mining industry may have a knock-on effect on the Chemical Sector.

CONSUMER MARKETS AND CONSUMER SPENDING 3.4.7

Some of the subsectors in the Chemical Sector are directly affected by consumer markets and spending, for example the FMCG subsector and the Glass subsectors. Others are more indirectly affected through changes in the demand for manufactured products.

ADMINISTERED, LOGISTICS AND COMPLIANCE COSTS 3.4.8

“Administered costs” refers to the prices that firms pay for non-raw material inputs and services over which they have no bargaining power. Included are items such as port tariffs, electricity, water and municipal rates. While poor service and price increases in all of these areas negatively impact the economic performance of the sector,84 of most concern is the uncertain electricity supply and the considerable increases in electricity prices in recent years. Interruptions in electricity supply have a profound effect on production processes and have huge cost implications for firms in the sector.

“Logistics costs” refers to those costs arising from the movement of input and output products between suppliers and customers. Most transport fuel in South Africa is produced in the coastal areas and about 68% of it is consumed in the inland Gauteng region85. Most chemical producers are located inland which means that relatively high transport costs reduce industry competitiveness. Inefficiencies and/or lack of capacity in the transportation sector (such as in bulk rail freight) also increase costs and reduce profitability of operations in the Chemical Sector.

There is also a cost to firms associated with having to use bad roads to transport freight. Although the recent road infrastructure upgrading project in the Gauteng has been necessary and welcome, the process was expensive and the cost-recovery process (in the form of highly controversial and not

83

www.ber.ac.za accessed 24/09/2014 84

The CSIR’s 7th

Annual State of Logistics Survey for South Africa 2010 found that Durban harbour was not only the most expensive of the 12 harbours they used in the benchmarking exercise, but also the worst in respect of productivity. 85 South Africa Yearbook 2011/2012 – Energy.

http://www.ber.ac.za/

57

yet implemented user tolls86) will undoubtedly impact on the cost of logistics for the large proportion of Chemical Sector which is based in this region. Furthermore, it is anticipated that toll-avoidance behaviour will result in freight vehicles being diverted to alternative roads, aggravating congestion and road damage on those routes.87

“Compliance costs” refers to costs associated with compliance with the different forms of legislation and regulations. This includes health and safety, waste management and other environmental legislation. Although these forms of legislation and regulations have certain positive implications for the economy and for society at large, they also have cost aspects that generally add to the administered and logistics costs cited above and increase the total cost of doing business in SA.

GOVERNMENT INITIATIVES TO STIMULATE THE GROWTH OF THE SECTOR 3.4.9

In section 1.3.2 a number of Government policies and plans that create the backdrop for skills planning have been identified. Most of these policies and plans have been developed over the last five to ten years by different organs of state. Many of them overlap and some have been subsumed within others. The two goals that all the policies and plans have in common, however, is the stimulation of the South African economy and job creation.

While the NDP provides an overall vision and framework for most of the other policies and plans IPAP and the projects steered by the dti, and some of the infrastructure projects have a direct bearing on the Chemical Sector. The growth of the sector can, for example benefit from:

The fact that dti has committed itself to contribute substantially towards the identification of key export markets, the development of common standards for the classification of chemicals in the Southern African Development Community (SADC) and an improvement in the trade balance by building new areas of export88.

Project Mthombo - PetroSA initiative to build a new world-class crude refinery in the Coega Industrial Development Zone in the Eastern Cape;

Project Ketlaphela – the building of a pharmaceutical plant;

The production of vaccines to supply the domestic market;

Government initiatives to stimulate the export market of ARV;

Initiatives in support of plastic converter plants (plastics strategy) in order to stimulate growth and exports of products;

Government support strategies aimed at the supply of upstream oil and gas service equipment, and services related to logistics, repair and maintenance for oil producers in the sub-Saharan region89.

The exploration and possible extraction of shale gas in the Karoo.

The Saldanha Bay Industrial Development Zone

In addition to these, some of the subsectors may benefit indirectly from Governments’ infrastructure development projects. For example the demand for explosives and glass may increase as a result of public infrastructure development.

86

Mail&Guardian (2013) Gauteng e-tolls just around the corner, 26 May 2013, http://mg.co.za/article/2013-05-26-gauteng-e-tolls-just-around-the-corner, Accessed 14 June 2013. 87

CSIR (2012) 8th

Annual State of Logistics Survey for South Africa 2011: Gearing up for change, http://www.csir.co.za/sol/docs/8th%20SoL%202011_23May2012.pdf, Accessed 14 June 2013. 88 dti. (2013). Industrial Policy Action Plan 2013/14-2015/16: Economic sector and employment cluster, 2013. 89 Ibid.

http://mg.co.za/article/2013-05-26-gauteng-e-tolls-just-around-the-corner


http://www.csir.co.za/sol/docs/8th%20SoL%202011_23May2012.pdf

58

3.5 CONCLUSIONS

The South African Chemical Sector plays a critical role in the South African economy. Not only does it contribute significantly to GDP, but it also produces inputs that are used in almost all other economic sectors. However, the sector is highly dependent on imports, which makes it vulnerable to changes in world economic growth, competition from fast-growing chemical producers such as China and exchange rate fluctuations.

The sector contracted severely during the 2008/2009 recession, but it has recovered since then and has grown substantially over the period 2010 to 2012. However, growth has substantially slowed down in 2014. The Bureau for Economic Research reported that business confidence index fell sharply to 25 in Q2 from 41 in Q1. This is reported to be the lowest level since the start of the cyclical upswing in late 2009.

There are clearly many opportunities for growth of the sector and the South African Government has several plans to stimulate its growth – including the building of a new oil refinery and a pharmaceutical plant. If all these plans come to fruition, employment in the sector will increase. Conversely, the successful implementation of government strategies will require the necessary skills and skills development is a critical factor in all government initiatives to stimulate the economy. The demand for skills is the subject of the next chapter.

59

4. THE DEMAND FOR SKILLS IN THE SECTOR

4.1 INTRODUCTION

This chapter looks at the demand for skills in the Chemical Sector. The chapter starts with the trends in employment and in the broad skills composition of the sector. It then looks at the specific occupations that occur in the sector and the numbers of people employed in the occupations. Detailed tables on the occupations that occur in each occupational group are included in Annexure E in order to provide an understanding of the variety of skills needed in the sector and the relative importance (in terms of the numbers of people needed) of the different types of skills needed. Although the occupations give some indication of the types of skills required, at this stage it is not possible to provide a complete picture of the educational requirements of the sector. For some of the occupations the educational requirements are relatively clear, for example the engineering occupations. However, other occupations may require specific qualifications or registered professionals, but the requirement cannot be deducted from the occupation name. In the past year the CHIETA had engaged in a process of occupational profiling which shed more light on specific skills requirements. Currently it is addressing various issues relating to the OFO and the way in which employers in the sector categorise their workers. The aim is to effect changes to the OFO that will allow employers to specify occupations correctly and to identify specialisations in occupations that require specific training programmes. The work with employers is aimed at obtaining correct and consistent data submissions from them so that the sectoral labour market can be closely monitored.

The future demand in terms of the number of people that will have to be trained to meet sector needs is also projected in this chapter. The CHIETA’s demand projection model was updated based on the employment information obtained through the March 2014 WSP submission and econometric projections that take into consideration the performance of the economy up to 2013. The future demand projections are meant to provide a broad indication of the demand for skills given certain economic growth scenarios.

The chapter closes with a section on the factors that will influence the demand for skills in the sector.

4.2 TRENDS IN TOTAL EMPLOYMENT

The demand for labour in absolute numbers in the Chemical Sector has been declining steadily over the period 1988 to 2002 with investments in capital equipment being largely used to replace labour (see Figure 4-1). Although employment in the sector increased from 2003 to 2008 it peaked at about 40 000 short of the number of jobs in 1988. The effect of the recession is clear from the drop in employment between 2008 and 2010. It is only in 2013 that employment in the sector recovered slightly with some 3 000 jobs being created.

The overall reduction in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards higher level skills (see Figure 4-2).

60

Figure 4-1 Total employment in the Chemical Sector from 1970 to 2013

Source: Quantec, July 2014

Figure 4-2 Skills composition of the Chemical Sector: 1970 to 201390

Source: Quantec data, July 2014

90

The skills levels referred to in this graph cannot be directly equated to occupational categories or to educational levels as referred to in the rest of this SSP. The graft reflects a time series that has been built up over more than four decades using different classification systems (as they have changed over time) and different data sources. The graph is only included to illustrate a general trend.

0

50 000

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250 000N

um

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Semi- and unskilled Skilled Highly skilled

61

4.3 THE OCCUPATIONAL COMPOSITION OF DEMAND

EMPLOYMENT IN THE MAIN OCCUPATIONAL GROUPS 4.3.1

The graph below shows that in March 2014, 20% of the workers in the sector worked as technicians and associate professionals, 15% as professionals and 12% as managers. These are the occupational groups that mostly require people with tertiary education and together they formed 47% of the employment in the sector. Clerical support workers constituted 11% of employment and service and sales workers only 2%. The occupational group craft and related trades workers includes artisans and this group formed 6% of employment. The occupational group plant and machine operators included 18% of the workers in the sector and elementary occupations 14%. Learners91 formed2% of the workforce.

Figure 4-3 Employment per occupational group: March 2014


91

In the guidelines for the WSP submissions organisations were requested to only use the term“Learner” in cases where the person is on the organisations payroll, has no output other than learning and is not linked to a specific job. The “job title” may be “cadet”, “student” or “trainee”. People undertaking learnerships and internships should have been mapped to the occupation that they were studying towards. The figures suggest, however, that some employers mapped learners on learnerships to the occupation “Learner”.

12%

15%

20%

11%

2%

6%

18%

14%

2%

0%

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25%

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62

EMPLOYMENT IN DESIGNATED TRADES 4.3.2

At the end of March 2014 the Chemical Sector employed 10 064 people in 64 designated trades. The largest group of artisans was mechanical fitters (2 078), followed by electricians (1 196) and millwrights (1 114) (Figure 4-4).

Figure 4-4 Number of employees in designated trades: March 2014

Source: WSP submissions, March 2014. Occupations were selected using the list of 125 trades published in the Government Gazette 35625, 31 August 2012. Only occupations with more than 20 employees are listed.

EMPLOYMENT IN GREEN OCCUPATIONS 4.3.3

Green jobs or green occupations are defined in various ways. The Minister of Economic Development defined them as “… work in agricultural, manufacturing, research and development, administrative, and service activities that contribute substantially to preserving or restoring environmental quality. Specifically, but not exclusively, this includes jobs that help to protect ecosystems and biodiversity; reduce energy, materials, and water consumption through high efficiency strategies; de-carbonise the economy; and minimise or altogether avoid generation of all forms of waste and pollution.”92

92

Opening address by Deputy Minister of Economic Development during the Training Workshop on Green Jobs, Braamfontein, 20 November 2012. https://groups.google.com/forum/#!topic/cosatu-daily-news/SmUTNa96XsA.

25

28

32

38

43

44

45

48

60

63

68

75

76

97

101

125

131

186

202

214

239

259

376

417

543

862

1 020

1 114

1 196

2 078

0 500 1 000 1 500 2 000 2 500

Plumber

Upholsterer

Rotary Printing and Re-reeling Flexographic Machine Technician

Diamond Cutter

Sheet Metal Worker

Carpenter and Joiner

Automotive Motor Mechanic

Fitter-Welder

Vehicle Painter

Painter

Mechatronics Technician

Toolmaker

Manufacturing Machine Setter

Optical Mechanic

Electroplater

Metal Fabricator

Industrial Machinery Mechanic

Rigger

Boiler Maker

Diesel Mechanic

Glass Maker

Welder

Metal Machinist

Glazier

Packaging Manufacturing Machine Setter

Fitter and Turner

Instrument Mechanician

Millwright

Electrician

Mechanical Fitter

Number of employees

https://groups.google.com/forum/#!topic/cosatu-daily-news/SmUTNa96XsA

63

Since 2012 the OFO includes a list of occupations that can be regarded as “green occupations”. This list is based on the following definition: “Green occupations have as their direct purpose the nationally identified priorities and initiatives of reducing negative environmental impact and contribute sustainably to environmental, economic and social sensitive enterprises and economies. This includes occupations with descriptors that directly reflect and contribute to the maintenance of processes related to national initiatives to:

Develop and adopt renewable sources of energy

Reduce consumption of energy, fossil fuels and raw materials

Enhance energy and resource efficiency

Reduce greenhouse gas emissions

Decrease waste and pollution

Recycle materials

Prevent the loss of biodiversity and restore ecosystems.”93

Not all green jobs are new ones. Some green jobs are easily identifiable – such as people employed to install a solar panel or operate a wind turbine. Others, particularly in supplier industries, may be far less so. For instance, a particular piece of specialty steel may be used to manufacture a wind turbine tower without the steel company employees even being aware of this fact. Thus, some jobs come with a clear ‘green badge,’ whereas others – in traditional sectors of the economy – may not have an obvious green look and feel94.

The occupations reported in Figure 4-5 are listed in the OFO as green occupations (the figure only shows occupations in which 20 or more people are working). At the end of March 2014 there were about 17 500 employees in the Chemical Sector working in ‘green’ occupations. The largest occupational group was chemical plant controller (5 802 people were working in this occupation) and 3 736 were chemistry technicians.

93

Department of Higher Education and Training, (2013) OFO Guideline 2013, p. 14 94

Government of South Africa. About Green Economy. http://www.environment.gov.za/?q=content/projects_programmes/greeneconomy/about#definition. Accessed 6 October 2012.

http://www.environment.gov.za/?q=content/projects_programmes/greeneconomy/about#definition

64

Figure 4-5 Number of employees in ‘green’ occupations: March 2014

Source: WSP submissions, March 2014. Occupations were selected from the green occupations on the OFO. Only occupations with 30 or more employees were included in the figure.

4.4 FUTURE DEMAND FOR SKILLS

For the purpose of this SSP a demand projection model was developed for the Chemical Sector. The purpose of the projection of future demand is to provide the sector with a broad understanding of the numbers of people that will have to be trained to meet sector needs. The demand projections provide for new demand that will result from sectoral growth and employment creation, as well as for replacement demand that will occur because of mortality, emigration and the retirement of employees. The demand projection model was developed to project demand at a detailed occupational level. The baseline figures and assumptions used in the model are explained in the sections below.

30

30

33

33

34

45

46

49

49

49

61

63

63

63

64

65

67

82

88

100

102

108

112

135

152

169

185

188

293

310

371

380

420

432

569

732

750

1 196

3 736

5 802

0 1 000 2 000 3 000 4 000 5 000 6 000 7 000

Metallurgical Engineering Technologist

Environmental Science Technician

Geophysical Technician

Petroleum Engineer

Metallurgical or Materials Technician

Sales Representative - Building and Plumbing Supplies

Facilities Manager

Waste Materials Plant Operator

Civil Engineer

Economist

Industrial Engineering Technician

Agriculture Consultant

Electronics Engineer

Geologist

Environmental Scientist

Water Quality Analyst

Agricultural Technician

Electrical Engineering Technologist

Electronics Engineering Technologist

Water Process Controller

Civil Engineering Technician

Agricultural Scientist

Mechanical Engineering Technologist

Surveyor's Assistant

Mining Engineer

Electronic Engineering Technician

Chemical Engineering Technologist

Chemical Engineering Technician

Electrical Engineer

Industrial Engineering Technologist

Mechanical Engineer

Physical Science Technician

Manufacturing Quality Manager

Mechanical Engineering Technician

Electrical Engineering Technician

Chemical Engineer

Industrial Engineer

Electrician

Chemistry Technician

Chemical Plant Controller

65

BASELINE EMPLOYMENT 4.4.1

The baseline employment figures used for the demand projection model were derived from the employment information submitted by employers to the CHIETA in March 2014. This information reflects employment in the sector as on 31 March 2014. The WSPs represent the majority of employees in the sector (approximately 84%). By weighting, the data estimates of employment in the whole sector were derived.

The 2014 WSP submissions were the third set of submissions in which employers submitted individual employee records. Although the OFO and the mapping of occupations in the sector to OFO codes still present challenges, this dataset was, at the time of preparing this SSP update, the most comprehensive and accurate set of information on employment in the Chemical Sector.

ASSUMPTIONS USED IN THE MODEL 4.4.2

a) Economic growth and employment growth

The employment growth figures used in the model were derived from econometric modelling performed by EcoQuant. The econometric modelling, which is based on the sectoral demarcations found in the National Accounts data, provides, among many other things, forecasts of employment. However, the subsectors that are used in the econometric model do not match the CHIETA subsectors perfectly and some of the model’s subsectors span more than one of the CHIETA subsectors (See Annexure B for an explanation of the mapping of the model’s subsectors to those of the CHIETA.)

The baseline scenario was obtained using the following process: a macro-econometric simultaneous equation model was employed to project gross domestic product (GDP) and employment numbers. A separate model broke down the final demand components of household consumption and fixed capital formation into their detailed components. The outputs of these models were then used in an input-output model to provide detailed forecasts for sectors of the SA economy.

To obtain high-growth and low-growth scenarios, the assumption was made that employment in a particular sector would be highly dependent on gross value added (GVA) growth in that sector. The sector growth was assumed to be in turn dependent on overall economic growth.

A low-growth scenario and a high-growth scenario were thus assumed that would be respectively lower and higher than the base case scenario. The standard deviation measured over the last ten years was used to determine the lower and higher values. Total employment sensitivity was statistically measured by means of OLS (ordinary least squares regression) to establish the percentage point increase in total employment that would be associated with a one percentage point change in total GDP growth.

Finally, it was assumed that sectoral employment growth would be closely related to total employment growth in the economy. These sensitivities (or multipliers) were statistically determined by means of regression of sectoral GVA growth rates on employment growth rates for the various sectors. Data for the baseline forecasts were used.

The economic growth rates, the associated employment growth rates from the econometric model can be seen in Table 4-1 and the final employment growth rates used for each of the subsectors in the CHIETA’s labour demand model can be seen in Table 4-2. Under all three scenarios employment in the Base Chemicals, Fertilisers and Glass subsectors is expected to decline.

66

Table 4-1 Average GVA and employment growth figures from the econometric model

Subsector

Low growth Baseline High Growth

GV

A g

row

th

(%)

Emp

loym

en

t gr

ow

th (

%)

GV

A g

row

th

(%)

Emp

loym

en

t gr

ow

th (

%)

GV

A g

row

th

(%)

Emp

loym

en

t gr

ow

th (

%)

Coke & refined petroleum products 0.94 0.66 2.25 1.57 6.78 4.74

Basic chemicals 1.98 -0.36 2.61 -0.27 6.16 -0.12

Other chemicals & man-made fibres 2.51 0.80 2.59 1.79 9.79 3.13

Non-metallic minerals -1.61 -4.34 0.41 -3.07 8.04 -1.28

Glass & glass products 1.68 -3.26 3.60 -2.50 9.54 -0.88

Total economy 1.81 0.89 2.94 1.70 5.39 2.65 Source: EcoQaunt, July 2014.

Table 4-2Average employment growth figures used in the CHIETA labour demand projection model

CHIETA Subsectors Low growth Baseline High growth

Base Chemicals -0.4 -0.3 -0.1

Explosives 0.9 1.9 3.4

Fertilisers -0.4 -0.3 -0.1

FMCG 0.9 1.9 3.4

Glass -3.8 -2.5 -1.2

Petroleum 0.8 1.6 5.3

Pharmaceuticals 0.9 1.9 3.4

Speciality Chemicals 0.9 1.9 3.4

Surface Coatings 0.9 1.9 3.4

Source: EcoQaunt, July 2014.

b) Mortality

The mortality rates used in this model were based on the age distribution of workers in the different occupational groups in the baseline data, the mortality figures reported by Stats SA in their 2010 mortality report and the 2010 mid-year population estimates. The mortality rates applied to the different occupational groups are indicated in Table 4-3.

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Table 4-3 Mortality rates used in model

c) Retirement

The retirement rates used in the model can be seen in Table 4-44. These rates are based on the age distribution of employees in the baseline data. The table shows the percentage of people in each occupational group in the sector who is in the age group 60 to 64 years and who will retire within the next 5 years – that is, if the retirement age is taken as 65. The percentage of people who will retire each year, used in the model, is also shown.

Table 4-4 People who will retire in the planning period and retirement rates used in model

Occupational category

% of people who will retire in next

five years

Retirement assumption

Managers 6 1.2

Professionals 4 0.7

Technicians and Associate Professionals 4 0.8

Clerical Support Workers 5 1.0

Service and Sales Workers 3 0.6

Skilled Agricultural, Forestry, Fishery, Craft and related Trades Workers 4 0.9

Plant and Machine Operators and Assemblers 4 0.9

Elementary Occupations 4 0.7

d) Emigration

Stats SA stopped recording emigration figures in 2003 and at this stage there is no single local data source that provides information on the movement of workers out of SA. In the absence of any empirical data, it is estimated that approximately 0.5% of managers and professionals of the sector are lost to the SA labour market as a result of emigration. It was assumed that emigration of the other occupational groups is negligible because of the lack of international demand for lower level skills and the cost of emigration.

RESULTS OF THE DEMAND PROJECTION MODEL 4.4.3

The results of the three demand scenarios are shown in Tables 4-5, 4-6 and 4-7. Each of the tables shows the total number of positions that will exist in the Chemical Sector each year from 2014 to 2020. The tables also show the total number of positions that will have to be filled. The positions that will need filling consist of new positions and positions that will become vacant because of

Mortality rate %

Managers 1.5

Professionals 1.3

Technicians and Associate Professionals 1.3

Clerical Support Workers 1.3

Service and Sales Workers 1.3

Skilled Agricultural, Forestry, Fishery, Craft and related Trades Workers 1.4

Plant and Machine Operators and Assemblers 1.4

Elementary Occupations 1.3

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people retiring or leaving the sector and because of mortality. These positions comprise “replacement demand”. The three tables also show the number of new entrants that will be needed.

Table 4-5 Demand projections 2014 to 2020: baseline scenario

New Positions to be created in period

Occupational group 2014 2015 2016 2017 2018 2019 2020

Managers 150 260 230 220 240 240 230

Professionals 230 380 340 320 350 350 340

Technicians and Associate Professionals 260 450 400 380 410 410 400

Clerical Support Workers 130 230 200 190 210 210 210

Service and Sales Workers 20 50 40 40 40 40 40

Skilled Agricultural, Forestry, Fishery, Craft and related Trades Workers 30 80 70 60 70 70 70

Plant and Machine Operators and Assemblers 190 350 300 290 320 310 310

Elementary Occupations 170 300 260 250 270 270 270

Total 1 200 2 100 1 840 1 750 1 910 1 900 1 870

Replacement demand


Managers 590 590 600 610 610 620 630

Professionals 580 590 600 600 610 620 630







Total 3 580 3 610 3 670 3 700 3 750 3 800 3 840

Total positions that need to be filled


Managers 740 850 830 820 850 860 860

Professionals 810 960 930 930 960 970 970

Technicians and Associate Professionals 920 1 110 1 070 1 060 1 100 1 100 1 110




Plant and Machine Operators and Assemblers 830 1 000 960 950 990 990 1 000


Total 4 760 5 690 5 500 5 450 5 660 5 690 5 710

Note: Figures have been rounded to the nearest 10. Owing to rounding, figures may not add up.

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Table 4-6 Demand projections 2014 to 2020: low growth scenario



Managers -30 140 110 90 110 100 80

Professionals -20 210 160 130 160 150 120

Technicians and Associate Professionals -50 260 200 160 180 160 120

Clerical Support Workers -20 120 90 70 100 90 70

Service and Sales Workers -10 30 20 20 20 20 10

Skilled Agricultural, Forestry, Fishery, Craft and related Trades Workers -40 60 40 30 20 20 0

Plant and Machine Operators and Assemblers -50 180 130 100 150 130 100

Elementary Occupations -30 140 110 90 130 120 100

Total -260 1 140 860 690 870 790 600 Replacement demand


Managers 590 580 590 590 600 600 600

Professionals 580 580 590 590 590 600 600







Total 3 580 3 570 3 610 3 620 3 640 3 670 3 680 Total positions that need to be filled


Managers 560 720 700 680 700 700 680

Professionals 560 790 750 720 760 740 720







Total 3 340 4 690 4 480 4 310 4 510 4 430 4 270

Figures have been rounded to the nearest 10. Owing to rounding, figures may not add up.

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Table 4-7 Demand projections 2014 to 2020: high growth scenario



Managers 220 500 640 710 750 800 810

Professionals 290 670 860 950 1 020 1 080 1 090

Technicians and Associate Professionals 360 880 1 140 1 260 1 350 1 440 1 460




Plant and Machine Operators and Assemblers 330 740 950 1 050 1 120 1 190 1 200


Total 1 810 4 210 5 410 5 980 6 380 6 780 6 870 Replacement demand


Managers 590 590 610 630 650 680 700

Professionals 580 590 600 630 650 680 700







Total 3 580 3 630 3 720 3 860 3 980 4 150 4 290 Total positions that need to be filled


Managers 800 1 090 1 250 1 340 1 410 1 480 1 510

Professionals 870 1 260 1 470 1 580 1 670 1 760 1 800

Technicians and Associate Professionals 1 020 1 550 1 820 1 970 2 080 2 200 2 250

Clerical Support Workers 580 830 970 1 040 1 100 1 150 1 180



Plant and Machine Operators and Assemblers 970 1 400 1 620 1 740 1 830 1 930 1 970

Elementary Occupations 670 980 1 140 1 220 1 280 1 350 1 370

Total 5 380 7 840 9 140 9 830 10 380 10 930 11 170

Figures have been rounded to the nearest 10. Owing to rounding, figures may not add up.

CHANGES IN AND LIMITATIONS OF THE MODEL 4.4.4

As explained earlier in this SSP, during 2013 and the first half of 2014 the CHIETA put considerable effort into the development of an occupational dictionary for the sector and into the mapping of occupations in the sector to the OFO. The result was significant changes in the occupational matrix as represented by employment figures presented in the WSP submissions of 2014. While on 2013 employers mapped the jobs in their organisations to approximately 720 OFO codes, this figure came down to 672 in 2014. This is probably an improvement on the data quality. However, this required an adjustment of the baseline data.

71

An area that still needs attention is the inclusion of non-levy paying companies in the baseline figures. The limitations that data deficiencies place on the demand projections are acknowledged. Future iterations of the demand projections will hopefully be based on improved versions of the baseline dataset and will therefore provide more accurate projections.

Another limitation of the current model is the underlying assumption that the occupational structure of the sector will remain the same over the forecast period. All the CHIETA’s subsectors have seen the proportion of unskilled and semi-skilled workers dropping, while the proportion of skilled and highly skilled workers has increased. This increasing shift towards more highly skilled workers is not considered in the calculations, because of the absence of information on exactly how this shift affects the specific occupations in the sector. The result is a possible under-calculation of the future demand for skilled and highly skilled workers, especially if there is any acceleration in the trend.

People leaving the sector to find employment in other sectors of the economy or who stop working altogether (to become homemakers, for example) is an important factor contributing to replacement demand. However, there is no statistical information available about the magnitude of this form of skills attrition in the sector. In the absence of any reliable data this figure was assumed to be zero. It is acknowledged as a limitation of the model, which inevitably renders very conservative estimates of replacement demand.

The effect that dramatic future developments, for example the exploration of shale gas, may have on the demand for skills is not provided for in the demand projections.

4.5 FACTORS THAT INFLUENCE THE DEMAND FOR SKILLS IN THE SECTOR

The quantitative demand for skills as well as the specific skills sets required in the sector is influenced by various factors.

INDUSTRY GROWTH 4.5.1

Although the sector is capital intensive, growth will result in some job creation. The number of positions that are expected to be created under different growth scenarios have been indicated in the previous section.

GOVERNMENT INITIATIVES TO STIMULATE SECTORAL GROWTH 4.5.2

Chapters 1 and 3 provide information on government initiatives that have a direct bearing on the sector. These initiatives require a sufficient number of people with the skills required by the chemical industries.

In the Petroleum Subsector the building of a new refinery will have an influence on the demand for skills. It is estimated that the refinery will provide up to 10 000 jobs during the three to four-year construction phase and 2 500 permanent jobs afterwards95. In addition there will be a challenge in terms of the provision of the required skills to run a refinery. Current supply already does not meet the demand for engineers and operators with the skills necessary to manage refineries9697.

In the Pharmaceutical Subsector the designation of pharmaceutical tenders for domestic manufacturing is expected to increase competitiveness and create more employment. Project Ketlaphela and various other projects planned in the Ketlaphela cluster (the Pelindaba valley) such as

95

http://www.petrosa.co.za/building_futures/Pages/Project-Mthombo.aspx 96

http://www.mbendi.com/indy/oilg/ogrf/af/sa/p0005.htm 97

Petroleum and Base Chemicals stakeholder workshop, 22 June 2013.

http://www.petrosa.co.za/building_futures/Pages/Project-Mthombo.aspx

http://www.mbendi.com/indy/oilg/ogrf/af/sa/p0005.htm

72

the production of bio-pharmaceuticals (insulin, erythropoietin, etc.), various fluorine-related APIs and fine chemicals, as well as the SA vaccine project, Biovac, are also expected to stimulate the growth of and ultimately employment creation in the sector.

TRANSFORMATION IMPERATIVES 4.5.3

The Petroleum Subsector is the only subsector within the Chemical Sector which is subject to a transformation charter as described in Chapter 2. Private companies in the Petroleum Subsector have to align their business and skills development plans with the transformation imperatives as published in the Liquid Fuels Industry Charter (LFC). The business elements in the LFC relate to issues such as ownership, access to business opportunities and giving effect to supportive procurement policies98.

In terms of skills development, the LFC conditions that organised industry and government work together in addressing the skills shortages in the industry. To this end government promises to, in its bi-lateral relations with relevant countries, secure training opportunities for HDSA staff with oil companies operating outside of South Africa and industry will continue to interface with statutory bodies such as the CHIETA. In terms of meeting employment equity requirements, the LFC states inter alia that South African subsidiaries of multinational companies and South African companies should focus their overseas placement and/or training programmes on historically disadvantaged South Africans and companies should ensure inclusiveness of gender99.

THE NEED FOR R&D 4.5.4

R&D or innovation is key to securing the future of the chemical industry in any country. Many of the challenges faced by the chemical industry affect economic activity and society as a whole, and relate to various manufacturing activities. In the Chemical Sector, R&D is indispensable to overcome challenges, to benefit from related opportunities, and to ensure the further growth and success of the industry.

R&D concerns new products, but can also aim to develop new applications, new services or new processes. R&D intensity in the European chemical industry has shown a slight overall decrease during the last decade while some emerging countries have strongly increased their efforts with notable success. In South Africa, corporate R&D is more concentrated in large companies. Companies that are involved in R&D know that reducing the time to bring innovations to market is essential to success. In addition, a unique set of skills is required in the R&D environment. This creates a further challenge for the supply pool of skills in the field100.

TECHNOLOGICAL DEVELOPMENT 4.5.5

Advanced technology is extremely important in the Chemical Sector and continuous improvement, breakthrough and development in technology is one of the key rudiments of the sector. The use of advanced technology has an effect not only on the quality of the skills needed to operate or apply the technology, but also on the number of people employed. New technological developments usually require that the skills of current staff have to be upgraded or new people with the relevant skills have to be recruited (these skills may not always be readily available). In some instances advanced technology can replace workers in the sector.

98

DoE. 2011. Petroleum and liquid fuels charter: Final audit report. 99

DoE. 2011. Petroleum and liquid fuels charter: Final audit report. 100

Stakeholder workshops, June 2013.

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ENVIRONMENTAL LEGISLATION AND REGULATIONS 4.5.6

Environmental legislation and regulations and the sector’s own efforts to comply with strategies to reduce the environmental impact of chemical production increase the need for skilled specialists across a variety of occupations who can design and implement technologies, processes and practices aimed at reducing pollution and promoting a green economy.

4.6 CONCLUSIONS

This chapter provides an overview of the demand for labour in the Chemical Sector. The chapter clearly shows the professional nature of the sector and the high intensity of highly skilled and skilled labour demand. It can be expected to remain this way. The sector will continue to need highly skilled managers, professionals, technicians and associate professionals, and appropriately skilled trade workers. The labour demand scenarios presented in this chapter are all based on the assumption that the world economy will continue recovering from the recession and that no further external shocks will occur over the next five years.

Another point that is very important to note is that the demand scenarios presented in this chapter assume no supply-side constraints. The growth of the sector is highly dependent on the availability of people with the necessary skills – especially engineering professionals and technicians and associate professionals such as chemical plant controllers. If the supply side of the market cannot produce the necessary skills, the growth of the sector may become constrained. Lastly, it is important to note that the Chemical Sector is not the only user of engineering and technician skills. Ideally, the demand for engineers and technician skills should take the needs of the total manufacturing sector into consideration.

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5. THE SUPPLY OF SKILLS TO THE SECTOR

5.1 INTRODUCTION

This chapter considers the supply of skills to the Chemical Sector. The supply-side of the labour market is viewed from two perspectives: the “stock” of skills already available in the market and the flow of new skills onto the market. The stock of skills consists of the people already employed in the sector and those who are unemployed but who have the skills required by the sector. This last group specifically includes people who have previously been employed in the sector, but who lost their jobs and are currently unemployed.

The flow of skills deals with the total skills development pipeline, starting at school level, including post-school education and skills development in the workplace. In this chapter statistical information on both the stock and flow of skills is analysed. The chapter describes in broad terms the contribution of the formal education system to the supply of skills to the sector. It also describes the CHIETA’s interventions aimed to stimulate the supply of skills to the sector. The chapter ends with some of the most important supply-side constraints experienced in the sector and the CHIETA’s interventions to address these.

5.2 THE STOCK OF SKILLS

CURRENT EMPLOYEES 5.2.1

The stock of skills available to the Chemical Sector includes the group of people that are currently employed in addition to those that are currently unemployed but that are available for work. The preceding chapters of this SSP have outlined the skills levels of the people currently employed within the sector, linked to the occupational profile. As indicated in Chapter 2, in March 2014 20% of the workers in the sector worked as technicians and associate professionals, 15% as professionals and 12% as managers.

As a result of the occupational composition of the Chemical Sector, almost half of the employees hold HET qualifications (NQF Levels 5 to 10), while just more than a third have qualifications at NQF Level 4. However, approximately 16% of the employees in the sector have not attained the NSC and as a result they may be constrained in their career development.

Maintaining the skills levels of the employees in the sector in the face of technological and other developments and changes and providing for career development are mainly the responsibility of employers or workplaces. Companies in the Chemical Sector are involved in a range of training and development initiatives that focus on developing the skills of their employees. Such initiatives supplement, but also build on, the training that supplies new skills to the sector. The training and development of the current workforce forms a critical component of skills supply.

In the ATRs submitted to the CHIETA in respect of the 2013/2014 financial year, employers reported that 47% of employees in the Chemical Sector had received training.

75

Figure 5-1 Percentage of employees who received training according to occupational category: 2013/ 2014

Source: WSP/ATR submissions, March 2014

Approximately 250 000 training opportunities were afforded to the employees (one employee could have accessed more than one training opportunity). A large portion of these training opportunities are short courses, skills programmes and induction programmes. The training also includes international courses that are offered in areas of specialisation where there is no training available locally. Some of the companies in the sector make extensive use of e-learning – especially to provide standardised in-house training to branches or divisions that are situated in different locations across the country and across the world.

UNEMPLOYED 5.2.2

People who are currently unemployed but were previously employed in the Chemical Sector must also be considered part of the current supply of skills. The QLFS for March 2013 found 230 440 unemployed101 workers who had previously worked in the Manufacturing Sector as a whole. However, the Chemical Sector only forms part of the Manufacturing Sector. Further analysis of the shows that 27 342 of these workers had previously worked in the Chemical Sector. These workers are available for re-absorption into the sector.102 The extent to which they may need re-training and up-skilling is not known.

101

The official (strict) definition of unemployment was used in this calculation. That means that only unemployed people who were actively seeking employment were included. 102

Further analysis of variables such as race, gender, province, etc. was not done because the sample sizes became too small for reliable analysis.

52%

58% 57%

44%

40%

46%

39%

27%

0%

10%

20%

30%

40%

50%

60%

70%

Managers Professionals Techniciansand associateprofessionals

Clericalsupportworkers

Service andsales workers

Craft andrelatedtrades

workers

Plant andmachine

operators

Elementaryoccupations

76

5.3 THE SUPPLY OF NEW SKILLS TO THE SECTOR

Skills formation for the Chemical Sector takes many forms and takes place in the formal education system as well as in the workplace. The various components of the skills development system is illustrated in Figure 5-2. In the General Education and Training (GET) band the most important component is the General Education and Training Certificate (GETC) at NQF level 1 which signifies the first formal qualification that can be attained. In the Further Education and Training (FET) Band potential entrants to the sector qualify with the National Senior Certificate (NSC), the National Certificate (Vocational) (NCV) and the N1 to N6 courses that lead to National Certificates (also known as the NATED courses). In the Higher Education and Training (HET) band people qualify with first degrees in a variety of study fields relevant to this sector. Post graduate qualifications are also an important factor in the supply of skills to the sector because of its dependence on research and development capabilities. The sector does not only rely on the formal education system for the supply of skills. A large amount of training takes place in the workplace through learnerships, apprenticeships, internships, work experience programmes that provide the practical experience needed for certain qualifications and for professional registration and through in-service training. This section analyses the output from and identifies the most pertinent constraints experienced in each component of the system.

Figure 5-2 Components of the skills development system

GENERAL EDUCATION AND TRAINING 5.3.1

Only 3% of the current workforce of the Chemical Sector exited the education system without completing the general education and training phase and another 3% have only attained an NQF Level 1 qualification – which is the General Education and Training Certificate (GETC) or an equivalent qualification.

The CHIETA is the quality assurer of several industry-specific qualifications at NQF Level 1 that provide people without formal qualifications the opportunity to obtain a formal qualification. In the ten-year period from 2004 to 2013 more than 2 000 people obtained NQF Level 1 qualifications in the Chemical Sector.

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FURTHER EDUCATION AND TRAINING 5.3.2

a) The National Senior Certificate (NSC)

A key factor in the supply of skills to the sector is the National Senior Certificate (NSC) examination results. Not only is a large portion of the workforce sourced from people who exit the formal education system with the NCV, but the size of the pool of school leavers who meet the requirements for accessing higher education and training is a critical factor in the supply of skills to the sector. Of specific importance are the pass rates in Mathematics and Physical Sciences. Grade 12 Mathematics is a prerequisite for tertiary studies in most of the study fields relevant to the sector, while Physical Science is a compulsory subject for tertiary studies in fields such as chemical engineering, chemical technology, mechanical engineering, material science and industrial engineering.

The NSC examination of 2008 was the first examination that was based on the New Curriculum Statement, which requires all learners in Grades 10 to 12 to take seven subjects. It is compulsory for learners to take two South African languages, Life Orientation and either Mathematics or Mathematical Literacy. To obtain a NSC a candidate must achieve either 40% or 30% in six subjects and in the seventh subject a candidate is allowed to achieve less than 30%.103

The number of Grade 12 learners who sat for examinations varied over the five-year period 2008 to 2013. The figures increased in 2009, but dropped substantially in 2010 and 2011. Although there was an increase again in 2012, the number of learners who wrote matric was still more than 20 000 short of the 2008 figure. In 2013 the figure of learners who sat for the matric examination increased 562 112, surpassing the 2008 figure by 28 551. The number of learners who wrote Mathematics decreased annually over the same period by 7%. Fewer candidates (only 80 716) achieved 40% or more for Mathematics in 2012 than in 2008 (91 796). The number of learners who achieved 40% or more in Physical Science increased only slightly from 64 538 in 2008 to 70 083 in 2012. (Table 5-1)

103

Education Statistics in South Africa 2011. Department of Basic Education, March 2013.

78

Table 5-1 Grade 12 output data: 2008 to 2013104

2008 2009 2010 2011 2012 2013

N % N % N % N % N % N %

Wrote Grade 12 533 561 100.0 552 073 100.0 537 543 100.0 496 090 100 511 152 100.0 562 112 100

Achieved Grade 12 333 604 62.5 334 718 60.6 364 513 67.8 348 117 70.2 377 847 73.9 439 779 78.2

Wrote Mathematics 300 829 56.4 301 654 54.6 263 034 48.9 224 635 45.3 225 874 44.2 241 509 43

Achieved Mathematics (30105

% and more)

91 796 17.2 90 699 16.4 81 374 15.1 67 541 13.6 80 716 15.8 142666 59.1

Wrote Physical sciences 220 164 41.3 225 102 40.8 205 364 38.2 180 585 36.4 179 201 35.1 184 383 32.6

Achieved Physical sciences (30% and more)

64 538 12.1 49 524 9 60 917 11.3 61 109 12.3 70 083 13.7 124 206 67.4

Wrote Life sciences 297 417 55.7 298 683 54.1 285 496 53.1 264 819 53.4 278 412 54.5 301 718 53.7

Achieved Life sciences (0% and more) 117 787 22.1 119 069 21.6 147 601 27.4 122 302 24.7 120 734 23.6 222 374 73.7

Source: Department of Basic Education, 2014.

104

Department of Basic Education, (2013). National Senior Certificate Examination, Technical Report for the 2013 NSC Examination.. 105

The Department of Basic Education for the 2013 report, started reporting learner achievement from 30% and more, previously achievements were reported from 40% and more

79

Figure 5-3 below shows the total percentage of Grade 12 learners who passed with marks above 40% in Life Sciences, Physical Science and Mathematics. The overall rates remained very low for all these subjects.

Figure 5-3 Grade 12 Mathematics and Physical Sciences achievement rates: 2008-2012

Source: Department of Basic Education, 2014.

b) NATED

About 40% of the employees in the Chemical Sector work as Technicians and Associate Professionals, and Plant and Machine Operators. Some of the training and development for these occupations may be available at public FET colleges. FET colleges usually offer programmes that are more closely aligned to the work environment, and these programmes generally include workplace placement.

The table below shows the examination results in November 2013 for some of the subjects most relevant to the Chemical Sector. The overall pass rates for Chemical Sector relevant occupations appear to be improving. The pass rate at N6 level (diploma level) in Chemical Technology was only 11% in 2011 but improved to 26% in 2013 and that of Chemical Plant Operation was only 32%. In 2011 but increased to 70% in 2013. The increase in Chemical Sector specific subjects in can be attributed to CHIETA partnership model with FETs.

0

10

20

30

40

50

60

Achieved Mathematics(40% and more)

Achieved PhysicalSciences (40% and

more)

Achieved Life Sciences(40% and more)

2008 31 29 40

2009 29 22 40

2010 31 30 52

2011 30 34 46

2012 36 39 43

Pe

rce

nta

ge o

f le

arn

ers

wh

o w

rote

th

e

sub

ject

80

Table 5-2 Examination results of selected National Certificate subjects at FET colleges: November 2013

Subject Level Wrote Passed Pass rate

(%)

Industrial science N2 1 0 0

Plant Operation Theory N2 100 71 69

Engineering science N2 10 493 5 069 48

Mathematics N2 9 219 4 467 50

Electrical trade theory N2 6 861 3 631 53

Fitting and machining theory N2 1 742 814 46

Diesel Trade theory N2 1 018 493 48

Diesel Trade theory N3 394 185 57

Electrical trade theory N3 413 162 37


Plant Operation Theory N3 45 25 47



Chemistry N4 104 68 56


Chemical Plant Operation N4 129 70 45



Chemistry N5 89 52 59

Chemical Technology N6 95 28 26


Mathematics N6 1 447 694 48

Source: Department of Basic Education, Resulting and Certification Directorate, November 2013 Examinations, Further Education and Training Colleges and Adult Education and Training Centres.

c) NCV

The National Certificates (Vocational) (NCV) was introduced to replace the traditional National Certificates, and provides an alternative to the NSC. Although the NCV qualifications are to a large extent occupationally directed, they include more fundamental educational components such as languages and life orientation. The NCV also provides access to some higher education programmes.

The table below shows the examination results of selected NCV subjects at public FET colleges in November 2013. The overall pass rates are higher than those on the N-Courses. However the Mathematics pass rates for 2013 are concerning with 0% pass rates reported across L2 – L4 by the Department of Basic Education. At the time of finalising this SSP the CHIETA was still gathering more information from both the Departments of Basic Education and Higher Education and Training in relation to this statistics.

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Table 5-3: Examination results of selected National Certificate (Vocational) subjects at FET colleges: November 2013

Subject Level Wrote Passed % Pass

Welding L2 198 103 67

Mathematics L2 14 731 0 0

Fitting and turning L2 1 478 691 49

Engineering Technology L2 3 246 1 913 64

Engineering Fundamentals L2 2 208 1 252 62

Process Chemistry L2 21 16 77

Process Chemistry L3 5 2 42


Fitting and turning L3 325 218 64

Engineering practice and maintenance L3 805 564 73

Engineering fabrication - boiler making L3 367 209 60

Welding L3 16 9 57

Welding L4 5 3 62


Engineering fabrication - boiler making L4 91 71 72

Fitting and turning L4 208 172 89

Source: Department of Basic Education, Resulting and Certification Directorate, November 2013 Examinations, Further Education and Training Colleges and Adult Education and Training Centres.

d) Industry-specific qualifications

Apart from the qualifications awarded by public institutions, a substantial number of people were also trained on national qualifications that fell in the ETQA scope of the CHIETA. These qualifications refer to training not funded by CHIETA, training in straight qualification is funded solely by companies although CHIETA accredited and quality assured. The number of people who enrolled on these qualifications and those that completed over the period 2003 to 2013 can be seen in Figure 5-4. (These figures exclude people who attained their qualifications through learnerships). The figures fluctuated somewhat over the total period, but on average approximately 1 350 people enrolled for qualifications and approximately 1 130 completed their qualifications each year. Most (88%) of the qualifications awarded by the CHIETA were on NQF Level 2 to 4.

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Enrolments 1 485 1 502 1 171 980 923 1 181 1 310 1 751 1 685 1 558 1 284

Achievements 6 2 008 1 009 942 712 968 1 400 1 124 1 496 1 746 1 055

0

500

1 000

1 500

2 000

2 500

82

Figure 5-4 Enrolments and achievements on CHIETA qualifications (learnerships excluded):2003 to 2013

Source: CHIETA data system, July 2014.

HIGHER EDUCATION AND TRAINING 5.3.3

The analysis of the supply of skills at HET level is based on information obtained from the Department of Education’s Higher Education Management Information System (HEMIS).106

Table 5-4 reports the number of national diplomas awarded in specific engineering fields between 2001 and 2012. The field with the largest numbers of qualifiers was electrical engineering and technology. Output in this field showed consistent growth until 2008, but the figures dropped from 2009 to 2012.

Since 2004 the number of national diplomas awarded in chemical and engineering technology had increased from 113 to 499 in 2012. The average annual growth rate for national diplomas in chemical engineering and technology was 8% over the 2001 to 2011 period. However, if the most recent period (from 2007 to 2012) is considered, the average annual growth rate was only 4%, showing that output in this field has stagnated.

Table 5-5 shows the number of first degrees awarded in specific engineering fields between 2001 and 2012. In most of the fields output increased until 2007 or 2008, but then levelled off until 2012. The only exception is mechanical engineering which grew consistently until 2012. However, output increased slightly again in 2012 in the chemical engineering and technology, electrical engineering and technology, and industrial engineering and technology fields.

The number of national diplomas and first degrees awarded in the field of chemistry and pharmaceutical sciences can be seen in Table 5-6. The national diplomas in chemistry increased over the period 2001 to 2021 at an average annual growth rate of 3%. First three-year degrees increased until 2009. The drop in figures in 2010 could possibly be ascribed to the changes in the SAPSE system explained in the footnote below. First four-year degrees in pharmaceutical sciences increased at an average annual growth rate of 4% over the 2001 to 2012 period.

Table 5-7 shows the number of master’s degrees awarded in specific engineering fields between 2001 and 2012. In total 1 879 master’s degrees were awarded in electrical engineering and technology, 1 053 in mechanical engineering and 783 in chemical engineering and technology over the 11-year period. A total of 343 master’s degrees in systems engineering have been awarded since 2010.

Table 5-8 shows the number of doctoral degrees awarded in specific engineering fields between 2001 and 2012. In total 303 doctoral degrees were awarded in electrical engineering and technology, 238 in mechanical engineering and 200 in chemical engineering and technology.

106

This database contains data required for quality assurance, national and institutional higher education planning, and the allocation of government funds to higher education institutions. After its inception in 2000, HEMIS used the subject matter classifications of the old South African Post-Secondary Education (SAPSE) system. The key skills needed in the Chemical Sector relate to the following HEMIS categories: Engineering, Life Science and Physical Science. In 2008, the system was revised and category changes were made. The revised categories were used to collect output data from 2010 onwards. The broad subject matter category “Engineering” was disaggregated into 33 second-order categories, compared to the 26 of the old SAPSE system. Furthermore, the category “Life Science and Physical Science” was divided into two separate categories i.e. “Life Science” and “Physical Science” with more second-order categories than before. In the absence of official information about the correspondence between the two systems (mapping), HEMIS data from 2010 onwards cannot always be compared to the data of earlier years. HEMIS supply data from 2001 to 2004 separated university and university of technology data. From 2005 and onward data for universities and universities of technology were combined.

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Information on qualifications awarded in life sciences is only available for the years 2010 and 2012. Output in the fields’ botany/plant biology, microbiological sciences and immunology, pharmacology and toxicology and biotechnology are shown in Table 5-9. The time period is too short to discern any clear trends in these fields.

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Table 5-4 Number of national diplomas awarded in selected engineering fields: 2001-2012

Field of study 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Chemical engineering & technology 223 235 230 133 274 359 408 417 426 458 444 499

Electrical engineering & technology 644 777 890 206 1 171 1 342 1 464 1 543 1 519 1 403 1 460 1 372

Engineering mechanics 1 94 12 37 28 28 23 12 30 109 109 143

Industrial engineering & technology 49 47 64 142 97 139 207 216 302 210 200 254

Manufacturing engineering & technology 8 18 3 0 16 5 2 3 2 27 21 16

Materials engineering & technology 15 20 10 25 19 50 80 61 63 6 12 17

Mechanical engineering & technology 222 250 281 83 396 536 526 613 649 578 711 793

Systems engineering

13 14 17

Polymer/Plastics engineering

7 5 8

Source: HEMIS (DHET), 2001-2012.

Table 5-5 Number of first degrees* awarded in selected engineering fields: 2001-2012

Field of study 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Chemical engineering & technology 292 263 311 311 362 363 511 533 588 515 512 649

Electrical engineering & technology 518 564 627 627 706 795 851 845 858 884 849 934

Engineering mechanics 12 37 50 50 55 68 60 63 66 68 33 38

Industrial engineering & technology 152 160 169 169 273 333 387 400 482 343 389 431

Manufacturing engineering & technology

1 1 2 4 1 2 3 51 34 26

Materials engineering & technology 32 43 52 52 58 34 28 41 66 35 37 29

Mechanical engineering & technology 381 337 328 328 343 401 506 615 754 755 917 1 024

Systems engineering

60 69 64

Polymer/Plastics engineering

10 7 18

*First degrees include first degrees from universities and universities of technology (BTech degrees) Source: HEMIS (DHET), 2001-2012.

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Table 5-6 Number of diplomas and first degrees awarded in Chemistry and Pharmaceutical Science: 2001-2012

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Chemistry: National diploma 266 272 268 85 337 339 339 535 394 450 422 372

Chemistry: First 3-year degree 422 408 408 516 544 619 693 601 666 360 424 471

Pharmaceutical science: First 4-year degree 359 380 380 491 367 308 385 394 386 466 508 561


Table 5-7 Number of masters degrees awarded in selected engineering fields: 2001-2012

Field of study 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total

Chemical engineering & technology 42 51 38 27 62 59 58 62 66 84 122 112 783

Electrical engineering & technology 97 123 149 159 182 175 144 136 172 149 191 202 1 879

Engineering mechanics 6 4 1 2 4 4 2 23

Industrial engineering & technology 30 34 37 19 31 24 16 34 29 16 32 43 345

Manufacturing engineering & technology 1 8 1 10

Materials engineering & technology 18 16 19 9 17 8 14 17 9 3 130

Mechanical engineering & technology 61 51 49 70 67 79 76 83 99 119 149 150 1 053

Systems engineering 110 112 121 343

Polymer/Plastics engineering 1 4 5


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Table 5-8 Number of doctoral degrees awarded in selected engineering fields: 2001-2012

Field of study 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total

Chemical engineering & technology 16 14 15 12 14 26 11 14 16 13 21 28 200

Electrical engineering & technology 19 18 16 18 18 25 28 27 35 34 21 44 303

Engineering mechanics 0 0 0 0 0 0 0 0 0 0 0 0 0

Industrial engineering & technology 2 2 3 4 5 4 0 0 4 5 0 4 33

Manufacturing engineering & technology 0 0 0 0 0 1 0 0 0 0 3 0 4

Materials engineering & technology 1 0 0 0 0 1 0 0 0 0 0 0 2

Mechanical engineering & technology 15 26 16 19 19 22 17 8 13 24 41 18 238

Systems engineering 2 2 2 6

Polymer/Plastics engineering 1 0 1 2


Table 5-9 Number of national diplomas and first degrees awarded in selected fields in Life Science: 2010 - 2012

Category Qualification 2010 2011 2012

Botany/Plant Biology National diploma 5 0 2

Three-year degree 147 105 160

Microbiological Sciences & Immunology National diploma 42 46 52


Pharmacology & Toxicology National diploma 29 28 23


Biotechnology

National diploma 136 144 154


Four-year degree 212 226 60


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WORKPLACE LEARNING 5.3.4

Learning programmes that have workplace components are a very important part of the supply of skills to the Chemical Sector. These programmes are also seen as a critical component of skills formation in NSDS III – to the extent that the funding regulations have been drastically changed in favour of PIVOTAL programmes (See Section 1.3.1).

a) Learnerships

Learnerships are highly formalised learning programmes that lead to qualifications that are registered on the NQF. Learnership contracts are registered with SETAs and the numbers of registered learners can therefore be tracked.

The number of learners enrolled in the Chemical Sector since the inception of the SETA can be seen in Figure 5-5. The enrolment figures grew rapidly between 2005 and 2008, but declined from 2009 to 2011. The figures showed a marked increase again in 2012 and 2013. The first learners on learnerships qualified in 2004. Although many of the learnerships are multi-year learnerships and the enrolment and achievement figures cannot be compared directly, the overall picture suggests that the completion rate on learnerships is relatively low. Some of the reasons anecdotally attributed to this are the high drop- out rates on learnerships and also by the fact that when employees leave an organisation to find employment elsewhere they cannot automatically resume or continue with their learnership with the new employer.

Figure 5-5 Learnership enrolments and achievements: 2003 to 2013

b) Apprenticeships and trade tests

There are currently different routes available for learners who want to become artisans:

An apprenticeship under the mentorship of a qualified artisan.

A learnership or a series of learnerships.

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Enrolments 626 2 060 1 400 2 107 2 274 2 777 2 602 1 980 1 807 2 705 2 628

Achievements 66 109 603 577 1 379 2 598 1 807 1 220 1 197 1 197

0

500

1 000

1 500

2 000

2 500

3 000

88

A learning programme that includes prescribed work experience, such as an internship, after completion of the knowledge and practical components.

The accumulation of knowledge and experience over a minimum period of time while doing the work of an artisan that allows the learners too apply for recognition of prior learning (RPL).

All these routes end in a trade test which the learner must pass in order to qualify as an artisan.

In the period 2009 to 2013, 1 599 learners from the Chemical Sector had successfully completed trade tests. More than half (54%) were Section 18.1 (employed) learners and the remaining 46% were Section 18.2 (unemployed) learners. The trades in which they qualified are shown in Table 5-10. A total of 624 learners qualified as mechanical fitters and 596 as electricians.

Table 5-10 Trade tests completed: 2009 - 2013

Trade 2009 2010 2011 2012 2013 Total

Automotive Motor Mechanic 2

2

Boiler Maker 7 29 13 29 14 92

Diesel Mechanic 1

1 1 3

Electrician 34 88 136 127 211 596

Instrument Mechanician 5 37 27 26 44 139

Mechanical Fitter 29 169 110 170 146 624

Metal Machinist

5 1 2 8

Rigger

16 15 22 6 59

Welder 5 38 14 4 15 76

Total 83 377 320 380 439 1 599 Source: CHIETA MIS, November July 2014.

c) Internships

The term “internship” is often used loosely to refer to workplace training that differs in format and duration. In most instance internships don’t lead to formal qualifications and they are not always formally reported. For this reason there is not reliable information available on the number of interns that receive training in and for the sector.

d) Workplace experience programmes

Workplace experience programmes are programmes that provide students enrolled for the National Certificates offered by the public FET colleges and students enrolled at universities of technology with the necessary work experience to complete their qualifications. The term also includes the workplace experience required for professional registration in certain professions, for example the candidate programmes for engineers, technologists and technicians.

At this stage there is no time series data available on the number of students who graduate on the National Diploma (i.e. after completion of the workplace component of their studies.

Engineers who want to register as professional engineers with the Engineering Council of South Africa (ECSA) have to complete a candidate programme of at least three years. During this period they have to be registered as candidate engineers with ECSA and they have to acquire a set of competencies through work experience as specified by ECSA. In the 2012/2013 financial year only 406 engineers completed their candidate programmes and registered as professional engineers and only 178 registered as

89

technologists.107If this is compared to the number of graduates who qualified with four-year engineering degrees three years earlier (2009) then it seems as if only 14% of graduates actually registered.

Of the 7 016 candidate engineers on ECSA’s register at the end of the 2012/2013 financial year 1 459 (21%) had been registered as candidates for four to five years and another 1 824 (26%) had been registered for six years or longer. 108

e) In-service training

The vast majority of training interventions sponsored by employers are short courses – some of which are accredited because they lead to unit standards that are registered on the NQF, but the majority are non-accredited.

SUPPLY SIDE CONSTRAINTS

CAREER GUIDANCE 5.3.5

Career guidance is of critical importance to ensure a steady flow of learners into the Chemical Sector and specifically into the occupations where there are current or potential future shortages. South Africa faces many challenges in relation to the delivery of career guidance, however. A recent study commissioned by SAQA found that most of the role players in career guidance are trying to fulfil their mandates on their own and that there is only limited co-operation and co-ordination. It was also found that schools are not able to provide sufficient and comprehensive assistance to learners when they choose subjects or study fields. One of the main reasons for this is that teachers who teach Life Orientation are not adequately trained to conduct career guidance and that most schools have limited career guidance resources. The same is true of the post-school sector. FET colleges and HEIs suffer from a lack of capacity, knowledge, skills and information and some institutions do not offer any career guidance at all.109

An aspect of career guidance that poses particular challenges is guiding learners towards learnerships. Learnerships can only be entered once the learner has gained access to a workplace. At this stage there is no central source of information on learnership positions available to potential learners and learners generally struggle to find work placements.

MATHS AND SCIENCE EDUCATION AT SCHOOL LEVEL 5.3.6

At the root of the supply of skills to the Chemical Sector lies the quality of mathematics and science education at school level and the number of learners who pass the NSC with the required marks in these two subjects and with the ability to master post-school studies in chemical-related fields. The analysis presented in this chapter shows that over the period 2008 to 2011 the number of learners who passed grade 12 with at least 40% for maths dropped by almost ten per cent and those with at least 40% in physical science dropped by almost two per cent. Although there was some improvement in 2012, the 2012 figures remained below the 2008 level. Many of the study fields that lead to occupations in which skills shortages are experienced require grade 12 maths and science. The dismal performance of the

107

ECSA, Annual Report 2012/2013 108

Calculated from ECSA, Annual Report 2012/2013 and DHET, HEMIS, Table 2-13 for 2009. 109

The South African Qualifications Authority. An Environmental Scan of Career Advice Services in South Africa, 2012.

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basic education system in this area constitutes one of the most important supply-side constraints facing the Chemical and other sectors.

THE FET COLLEGE SECTOR 5.3.7

The public FET colleges play a crucial role in the training of artisans and some of the other technical personnel for the Chemical Sector. At present, the range of NCV qualifications relevant to the Chemical Sector is limited, and for this reason the Sector relies to a large extent on the old National Certificates (also referred to as the NATED courses). Anecdotal evidence also indicates that employers understand and prefer the old qualifications over the new ones and that learners qualifying with NCV qualifications experience greater difficulty to find employment. However, according to a report made to Parliament’s Higher Education and Training Portfolio Committee by the Department of Higher Education and Training, 100% of all bursary funding is allocated to NCV studies. This severely constrains the options available to learners who are dependent on financial aid, should they wish to pursue studies in fields relevant to the Chemical Sector.

The low throughput rates on the NATED courses cited earlier in this chapter is another reason for concern. These courses provide in many instances the theoretical components of artisan training programmes and the high failure rates inhibit the production of sufficient numbers of artisans.

Private FET colleges are marked by uneven quality among providers, which poses many challenges to the organisations responsible for quality assurance. Many colleges suffer from similar problems as those experienced in the public colleges.

Overall, the college sector is viewed as small and weak and unable to absorb significantly large numbers of students or to attain acceptable levels of throughput. The college sector is hampered by insufficient and unequally distributed resources, inadequate infrastructure, insufficient student financial aid, inadequate caliber of staff and poor governance, administration and intra-institutional relations.110

Another contributing factor to challenges experienced by FET colleges is the differences in quality assurance standards and measures of SETAs. Often the colleges have to be quality assured and accredited by various SETAs for the different programmes they offer. The inconsistencies and lack of uniformity in SETA’s accreditation processes are not only confusing to the colleges but also require exorbitant amounts of time from them to apply and prepare for accreditation.

THE HIGHER EDUCATION SECTOR 5.3.8

The plateau reached in the qualifications awarded in most of the engineering disciplines is a serious supply-side constraint that affects the Chemical Sector. However, increasing the supply of engineering skills from higher education institutions is not easy. Enrolments are influenced by the limited availability of suitable school leavers with good grades in maths and physical science. At the same time throughput rates are low. Poor throughput rates are the result of a combination of factors such as school leavers who are not sufficiently prepared to deal with tertiary education standards and their struggle to access financial assistance.

110

Department of Higher Education and Training, Green Paper on Post-School Education and Training, 2011.

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WORK INTEGRATED LEARNING 5.3.9

Work integrated learning, in the context of this SSP refers to formal learning programmes with work experience components. This includes qualifications that contain periods of workplace experience in the curriculum (for example the NATED courses and most of the qualifications offered by universities of technology), internships or workplace experience that are required before graduates can register as professionals, learnerships and apprenticeships.

The most pressing challenge with regard to work integrated learning is obtaining access to workplaces. It is for example estimated that approximately 65% of students at FET colleges are unable to find workplace experience which is required to complete N diplomas111. That means that these students cannot complete their qualifications. Stakeholders who participated in the consultative processes leading to this SSP identified several constraints that prevent employers from opening up their workplaces for work placements. These include:

The absence of proper logbooks that can guide the work experience programmes;

A lack of experienced mentors in industry and a lack of support for mentors from the educational institutions’ side;

A lack of information about the content of the qualifications offered at the FET colleges – employers don’t consider placements because they don’t understand the kind of skills that the learners have acquired;

Long waiting period, red-tape and unnecessary large amounts of administrative work associated with learner placements;

Restrictions placed by the CHIETA on funding of work integrated learning. Stakeholders are of the opinion that the Chemical Sector would be able to accommodate much larger numbers of learners from FET colleges and from universities of technology for workplace learning if the financial incentives were available for learners in all fields of study – not only in the technical fields that are regarded as specific to the Chemical Sector.

The absence of a single coordinated and well-maintained database of learners who are available for placement.

Uncertainty about the legal position of learners who are willing to work as volunteers in order to obtain their workplace experience and the absence of a standard contract that employers can use for such learners.

The lack of workplace placements is a complex issue that will only be resolved through a multi-pronged approach whereby employers are educated about the need for, advantages of and the requirements of workplace placements; whereby they are incentivized to take on learners and learner placements become institutionalised in workplaces and whereby strong linkages are built between educational institutions and workplaces.

TRANSITION BETWEEN EDUCATION AND THE LABOUR MARKET 5.3.10

The majority of new entrants to the labour market find it difficult to obtain first entry. One of the reasons is that more often than not employers prefer people who have some work experience to those without prior exposure to the work environment. Work integrated learning is one of the mechanisms

111

DHET, Green Paper on Post School Education and Training, 2012.

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designed to facilitate the transition from school or post school education into the labour market. However, as mentioned above, South Africa faces many challenges in this regard. Besides these there is also a need to assist new entrants to obtain a first job.

Stakeholders pointed out that the transition between education and further learning opportunities and the labour market is an even more serious challenge for learners from special schools who complete their schooling with a practical grade 12 certificate. For them there is no clear route into the sector or into training programmes that are relevant to the sector.

LACK OF ARTICULATION 5.3.11

The vertical, lateral and diagonal movement of learners through the formal education and training system remains a challenge. A lack of articulation between qualifications limits learners’ access to training programmes, their progression through learning pathways and, ultimately their mobility in the labour market. The largest stumbling blocks seem to be the lack of articulation between the old SGB qualifications (which are in the process of being replaced by QCTO qualifications) and the higher education qualifications; the NCV and NATED courses and higher education qualifications; and between the qualifications conferred by the universities of technology and those conferred by the universities.

PROFESSIONAL REGISTRATION AND GOVERNMENT CERTIFICATES OF COMPETENCY 5.3.12(GCC)

The professional registration of engineers is currently not compulsory. However, for many engineering positions in the Chemical Sector professional registration is a prerequisite because of health and safety or other legislative requirements. The supply of professionally registered engineers is hampered by the fact that a large percentage of engineering graduates enter the labour market and continue working without entering or completing the candidate phase of the learning pathway towards professional registration. There are multiple reasons for this situation including a lack of suitable work placements and mentorship.

In some instances engineers are also required to obtain the Government Certificate of Competency (GCC). However, the pass rates of the exams that lead to this certificate are notoriously low. One of the factors contributing to the low pass rates is a shortage of training providers who can prepare candidates for the exams.

5.4 CHIETA INTERVENTIONS TO STIMULATE THE SUPPLY OF SKILLS TO THE SECTOR AND TO ADDRESS SUPPLY-SIDE CONTRAINTS`

Since its inception the CHIETA has developed a host of interventions and mechanisms to address the skills needs of the sector and the supply-side constraints mentioned above. The purpose of this section is to describe in relatively broad terms these interventions and mechanisms. The CHIETA interventions span the whole skills development pipeline. It starts at school level and includes the various aspects of post school education and training and as well as workplace training of new entrants to the labour market and existing employees. Most of the work of the CHIETA involves other role players in the education and training environments.

ESTABLISHING A CREDIBLE INSTITUTIONAL MECHANISM FOR SKILLS PLANNING 5.4.1

With the introduction of the National Skills Development Strategy (NSDS) III, greater emphasis has been placed on research and analysis. Goal 1 of NSDS III specifically focuses on “Establishing a credible

93

institutional mechanism for skills planning.” In support of this goal the CHIETA has developed a research framework and a research agenda and has strengthened its research function, particularly in relation to labour market research. The framework themes relate to the core labour market research supporting the development and updating of the SSP, assessment of impact and other areas relevant to the sector such as health and safety and TVET/WIL.

In pursuance of this NSDS III goal, the CHIETA has continued working on various aspects of skills planning with CHIETA governance structures, particularly the Research and Skills Planning Committee and the five Chambers. WSP-ATR 2013 dataset: Further analysis was done to inform improvements in WSP-ATR 2014 data as well as inform the occupational profiling process Analysis of Discretionary Grant (DG) data: The DG 2013/14 data was analysed against scarce occupations. Over 80% of the DGs were spent on PIVOTAL programmes. WSP/ATR Source Data 2014: CHIETA has continued to support companies in improving the accuracy and quality of data for the 2014 WSP-ATR and PIVOTAL report cycle. The dataset was cleaned and analysed after the close-out of approved extensions and data-related queries. This data was one the sources used in Reports (WSP-ATR Analysis reports to be produced for all 9 sub-sectors as well as a consolidated report for the chemical sector). The good quality data is recognised as core and central to skills planning within CHIETA, and hence concerted effort is being made to continuously improve of the quality of data for skills planning. Occupation Profiling: CHIETA tabled a first attempt at identifying and defining occupations that are required by the sector to deliver its unique products and services in 2012 (in the 2012 Occupational Dictionary). These 54 occupations were used to inform the CHIETA qualification matrix tabled in Chambers in July 2013. Data obtained through the Workplace Skills Plan and Annual Training Report (WSP & ATR) submitted for 2013 has since been analysed in detail. This analysis, coupled with sector engagements and the Sector Skills Plan analysis have resulted in an expansion of the initial list of occupations identified as important for the sector – the new list consists of 141 occupations.

The updated version of the Occupational Handbook has been completion, and focused on expanding and deepening occupational profiles to reflect specialisations across all CHIETA subsectors as well as addressing gaps identified. The methodology employed is a manufacturing business units value chains and profiled jobs accordingly. OFO update: The occupational profiling exercise assisted in highlighting OFO misalignment and mapping issues in the chemical sector. Initial changes and amendments were submitted to the DHET for the chemical sector as well as a one-on-one engagement held in this regard. CHIETA will submit further changes to OFO V2013 informed by the completion of the occupational profiling exercise, the analysis of the WSP-ATR 2014 data and the SSP Update. CHIETA Supply-side database: The merging of the information on labour demand with information on what skills are being produced is vital to ensure the sector is able to perform in the economy. Analysis of the supply information pivots on the following two aspects: Content of qualifications being offered and how it relates to the needs identified in the occupation profiles that were developed as part of the demand information, by industry; and the number of learners that will qualify and their wiliness to work in the sector. The supply-side database aims to take the information obtained on the content of

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programmes and the learners (those requiring in-service training and graduates particularly) and provide a platform for CHIETA to have a better view of the labour market and an ability to link defined employer needs with learners. The database went live on 31st March 2014. Additional learner information will be added and CHIETA employers will be encouraged to make use of the database, particularly for WIL.

Career information

CHIETA’s career information is informed by the occupational handbook and the qualifications available.

Sub-sector skills plans

The five Chambers namely Petroleum and Base Chemicals, Fast Moving Consumer Goods and Pharmaceuticals, Explosives and Fertilisers, Specialty Chemicals and Surface Coatings and Glass, continue to play a central role in skills planning in line with their mandate. In 2013, Chambers developed skills plans at the sub-sector level for the first time. A review of the subsector skills plans has started with the April 2014 chambers for this year’s update. The Chambers and Regional Skills Forums where extensively used for stakeholder consultation and to engage qualitatively on skills needs, interventions and priorities.

The CHIETA has in addition developed a qualification matrix against the focused occupations and has finalised the revision of the CHIETA Occupations Handbook previously called the Occupational Dictionary, and will be maintaining the supply-side database for use by CHIETA companies and roll-out the occupational and individual employee skills survey.

Furthermore, CHIETA is strengthening partnerships to enhance research, delivery and impact as well as strengthening internal research capacity.

INCREASING ACCESS TO OCCUPATIONALLY DIRECTED PROGRAMMES 5.4.2

Occupationally directed programmes include learnerships, artisan development, skills programmes, and bursaries for both employed and unemployed learners. In order to increase access to these programmes the CHIETA is, among others, engaged in the following activities:

a) Qualification development and quality assurance

The CHIETA is playing the role of the Development Quality Partner (DQP) for various new qualifications developed within the new Occupational Qualification Sub-framework of the NQF (i.e. under the auspices of the Quality Council for Trades and Occupations (QCTO). In the qualification development process the CHIETA collaborates with other SETAs, FET colleges, other public institutions, and technical trades and occupations-based experts from companies.

The CHIETA’s SAQA-registered qualifications that are still fit-for-purpose will remain in place for a further three years from 30 June 2012 to 30 June 2015, or until the end of their teach-out periods. The qualifications that fall within the CHIETA’s ETQA scope range from NQF Level 1 to Level 5. Most of these qualifications are attained through learnerships. The CHIETA as part of its mandate has to ensure that providers are accredited to deliver quality training against these qualifications and programmes and it thus continues to act as ETQA for these qualifications and skills programmes following the directive by

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the QCTO that, as a transitory measure, all SETA-ETQAs need to continue to function as they did under the previous dispensation.

b) Artisan development

Artisan development is a key imperative for the CHIETA, and the SETA is implementing the nationally agreed 7-step model to artisan development. In addition, the CHIETA has a special project to support artisan development in the Chemicals Sector through the recognition of prior learning (RPL). The project focuses on supporting potential candidates who partially meet the requirements for trade tests but who have gaps in terms of either theoretical training and/or workplace experience.

The CHIETA has also put in place a Voucher Scheme for Section 28 Trade Tests, in which candidates who apply for trade tests in terms of Section 28 of the old Manpower Training Act (MTA) are subjected to a multi-step RPL process

The CHIETA continues to support employers offering apprenticeship training, as well as the CHIETA-accredited decentralised trade testing centres (DTTCs), and issues certificates to competent learners.

From January 2012 the CHIETA, as mandated by the DHET, started the process of setting up a stakeholder-driven mini task team on artisan development. The task team comprises of representatives from employers, organised labour, training providers (public and private) and members of the CHIETA board. The role of the task team is to engage their respective sectors to address issues/challenges related to the increase of apprenticeship training; encourage partnerships for artisan development; and encourage stakeholders to share lessons/practice in artisan development. The CHIETA aims through the task team, to reach every workplace within the sector and turn every workplace into a training space, including for the training of current workers and unemployed people.

The CHIETA has also embarked on various new and innovative artisan development initiatives such as the Dual System Artisan Training Programme (DSAP) in partnership with the DHET and selected SETAs.

SUPPORTING INSTITUTES SECTORAL AND OCCUPATIONAL EXCELLENCE (ISOES) 5.4.3

The CHIETA works with and supports various ISOEs in the Chemical Sector such as the Gas Institute of Excellence, The SAPMA/SAPITI Centre of Excellence training and the Glass ISOE that aims to improve the training and development of specific skills required in the Glass Manufacturing and Fitment Industry.

RUNNING A BURSARY PROGRAMME 5.4.4

The CHIETA has established a bursary programme to offer financial assistance to young people who qualify to undertake full-time studies at accredited South African education and training institutions in various fields of study that are relevant to the sector.

CO-OPERATING WITH UNIVERSITIES AND UNIVERSITIES OF TECHNOLOGY 5.4.5

The CHIETA co-operates with several universities of technology. The extent and nature of this co-operation differs from institution to institution and span a variety of interventions – from arranging workplace experience opportunities for chemical engineering students to support for maths and science tutorials at the institutions (See Annexure J).

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PROMOTING GROWTH OF PUBLIC FET COLLEGE SYSTEM THAT IS RESPONSIVE TO 5.4.6SECTOR, LOCAL, REGIONAL AND NATIONAL SKILLS NEEDS AND PRIORITIES

The CHIETA’s support to the public FET college system takes many forms (See Annexure I.). For example:

Several public FET colleges have been given programme approval to offer specific qualifications and programmes that fall within the quality assurance scope of the CHIETA.

The CHIETA has established partnerships with several FET colleges to promote artisan development through the use of public FET colleges.

In addition to the initiatives outlined above, and as part of the drive for SETA-FET collaboration and establishment of offices in rural areas and townships, the CHIETA is also a “Support SETA” in various FET colleges.

ADDRESSING THE LOW LEVEL LANGUAGE AND NUMERACY SKILLS TO PROVIDE 5.4.7ACCESS TO ADDITIONAL TRAINING

The fact that the insufficient achievements in maths and science at school level constricts the whole skills formation pipeline has been highlighted earlier in this chapter. One of the CHIETA’s initiatives to address this problem is the use of discretionary grants to provide support to maths and science learners in KwaZulu Natal, Western Cape and Limpopo.

In addition to this the CHIETA supports the bridging programmes which are already in place in a number of companies in the sector. These bridging programmes generally focus on maths, science and languages, and are intended to improve employees’ chances of success in accessing and completing FET and HET programmes, thus enabling them to attain the post schooling qualifications critical for this sector.

ENCOURAGING BETTER USE OF WORKPLACE-BASED SKILLS DEVELOPMENT 5.4.8

Skills Development Committees and Organised labour workshops are also held regularly to develop capacity for improved participation in skills development and planning. Issues related to skills development are discussed at these workshops and forums and pertinent information is shared such as the new grant regulations and information on artisan development. These forums and the support offered to companies aim to encourage better skills planning and to increasingly market work-based skills development and training.

ENCOURAGING AND SUPPORTING CO-OPERATIVES, SMALL ENTERPRISES, WORKER 5.4.9INITIATED NGO’S AND COMMUNITY TRAINING INITIATIVES

To address the needs of small and micro enterprises including co-operatives, non-governmental organisations (NGOs), community based co-operatives (CBCs) and community based organisations (CBOs) the CHIETA has instituted a training voucher scheme. Small enterprises can also utilise the discretionary grants to address their training needs. Programmes covered include: SMME development, training of coaches and mentors, training of SDFs, assessors, moderators and facilitator training for specified unit standards.

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INCREASING PUBLIC SECTOR CAPACITY FOR IMPROVED SERVICE DELIVERY AND 5.4.10SUPPORTING AND BUILDING OF A DEVELOPMENTAL STATE

Partnerships with various government departments are under consideration and the engagements are at various stages of progress. The CHIETA aims to formalise agreements with the government departments and establish partnership around areas of mutual interest.

BUILDING CAREER AND VOCATIONAL GUIDANCE 5.4.11

CHIETA continues to support career development and guidance. CHIETA’s career guide was informed by the CHIETA Occupational Dictionary and the qualifications available to support occupations that are key to the sector.

CHIETA also participates in numerous career exhibitions around the country. Often such exhibitions are hosted by provincial government, local government or government departments. The CHIETA supports the national career development and guidance strategy spearheaded by DHET, specifically in regard to chemical-related occupations. New developments in this area include the development of video clips of key chemical-related career options and support for the development of national career information/ material for practitioners and learners.

CHAMBER SPECIFIC RESPONSES TO SKILLS NEEDS 5.4.12

The CHIETA has since 2012 adopted a process whereby skills planning can take place at subsectoral and chamber level. These plans are incorporated into the sectoral skills plan. Subsectors and chambers work individually through cross cutting sector skills needs, refining and honing them into specific plans of action for the respective subsectors. These plans of action include so-called ‘flagship projects’, some of which have already been launched. The ISOEs mentioned earlier in this section are typical examples of such flagship projects.

Another example is a project undertaken jointly by the South African Petroleum Industry Association (SAPIA), the CHIETA and members of learning institutions, particularly the University of the Witwatersrand. This project aims to develop an integrated approach to the skills requirements of South Africa’s Petroleum industry.112 The plan is to develop an integrated vocational and professional education and training programme that addresses both present and future skills needs in the subsector. The programme will allow for the structured articulation between qualification levels and between qualification bands to facilitate career development of staff with appropriate qualifications and workplace experience. The programme is envisaged to involve a well-coordinated network of a select number of institutions responsible for the delivery of the required skills at the appropriate NQF levels. The institutions are:

FET colleges for the training of technicians and artisans (National Certificates) with specialised skills required by the Petroleum industry;

Universities of Technology (Diplomas and some BTech Degrees) for the training of specialist technologists;

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SAPIA, CHIETA & Wits, An integrated approach to the skills requirements of South Africa’s Petroleum industry, November 2012.

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Universities, for high level skills training (graduates and research) both upstream and downstream as well as CPD programmes aimed at updating professionals in the petroleum industry; and

Private training providers presently delivering specialised skills in accordance with the needs of the industry and possibly also other specialised skills beyond the scope of the formal higher and further education sector.

The establishment and implementation of such a model will be seen as a practice of excellence for the Petroleum subsector.

PROVINCIAL ENGAGEMENTS 5.4.13

The CHIETA participates in a range of regional and provincial skills-related forums. This includes Provincial Skills Development Forums and Inter-SETA forums. In these forums the provincial dimensions of skills shortages are explored and the specific needs of the respective provinces are identified. The skills development strategies of the various provincial governments are also considered as far as possible.

5.5 CONCLUSIONS

Chapter 4 of this SSP update indicated that the Chemical Sector is to a large extent dependent on high level professional and technical skills. In this chapter the supply of those skills was analysed.

The supply pipeline starts in the basic education system with career guidance. A second consideration with regard to this pipeline is the NSC and specifically the number of learners who pass with the required marks in maths and physical science. The fact that these numbers have declined in the last few years is a serious concern. The challenges that South Africa faces in terms of maths education also manifest in the FET college sector where the pass rates of maths in the NCV courses are very low. Without very specific interventions in this area the situation is bound to perpetuate itself – poor performance in maths means that in addition to all the other study fields that are limited, the system cannot produce enough high quality maths teachers who can turn around the country’s performance in maths.

The supply of new skills from the FET sector into the Chemical Sector has traditionally been very limited. However, government’s recent focus on increasing both the quality and quantity of output from FET colleges is likely to change the future role that these institutions can play in skills development for the Chemical Sector. Securing workplace placements for students poses a major challenge and building strong linkages between employers and colleges is of critical importance if the FET college sector is to become a major role player in the supply of skills to the sector.

In respect of the supply of new skills to the sector there has been substantial growth in the numbers of new graduates from universities and universities of technology in engineering fields up to about 2008. The figures then started to level off. However, in some of the fields the figures improved again in 2012. The Chemical Sector is not the only user of engineering skills, but it competes with the rest of the economy for many of the professional and technical skills. In order to ensure future growth it will be necessary to support higher education institutions through a variety of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace-training opportunities for students from universities and universities of technology.

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This chapter outlines in very broad terms the interventions that the CHIETA started in previous years and that will form the basis for further planning and development in the rest of the NSDS III period. The way in which these initiatives will continue in the next few years is reflected in Chapter 7.

The chapter clearly illustrates the wide range of areas in which the SETA is engaged, although not all the details of projects are discussed. Efforts are made to address the most critical blockages in the skills development pipeline and simultaneously address the most pertinent skills development needs of the subsectors that constitute the Chemical Sector. The CHIETA also attempts to balance the needs of small and large organisations in the sector and those of urban and rural areas. Although the sector is geographically unevenly spread, SETA interventions span all the provinces and where possible they tie in with provincial strategies and initiatives.

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6. SKILLS NEEDS OF THE CHEMICAL SECTOR

6.1 INTRODUCTION

The previous two chapters that looked at the demand and supply of skills to the Chemical Sector are mainly descriptive and provide perspectives on the two sides of the sectoral labour market. Chapter 5 alluded to certain constraints on the supply side that may lead to skills shortages. This current chapter continues to look at the specific skills needs of the sector, starting with scarce skills or skills shortages.

There are various ways to identify and monitor skills shortages in a particular labour market. One of these is to ask employers about their experiences when recruiting people for positions in their organisations. Another way is by monitoring vacancy rates in the sector because skills shortages are bound to lead to high vacancy rates. Skills shortages will also drive up the costs of the skills that are in short supply and therefore the monitoring of remuneration trends can shed light on skills shortages.

The CHIETA attempts to develop an understanding of skills shortages in the Chemical Sector by asking employers to identify the shortages when they submit their mandatory grant applications to the SETA. The information provided by employers in the March 2014 WSP submissions is presented in this current SSP update.

It has become customary in South Africa to use the term “scarce skills” to refer to quantitative shortages in the labour market – in other words there are not enough people with the necessary qualifications available to be appointed in positions that become available in the market. This term is also used in this chapter.

Another aspect of skills shortages has to do with the qualitative components of the labour market – there may be people available to appoint, but they don’t have the right skills, abilities or other attributes that employers are looking for. Skills deficiencies can also develop among the workers that are already employed, because of the introduction of new technologies, new legislative requirements etc. These aspects are generally addressed of by employers through in-house training. However, there are certain skills deficiencies or skills needs that are common in the sector as a whole and that require the CHIETA’s intervention. Some of these skills needs are also discussed in this chapter.

6.2 SKILLS SHORTAGES IN THE CHEMICAL SECTOR

In the scarce-skills table that employers completed, they first named the occupation in which they experienced scarcity, they then selected from two possible descriptions the one that described the scarcity they experienced– i.e. “relative scarce skill” (referring to a situation where people are available in the labour market do not meet other employment criteria of the company such as employment equity considerations or cannot be attracted due to the geographical location of the company; and “absolute scarce skill” (where people are generally in short supply in the labour market). For all the occupations in which scarcity was experienced employers also had to indicate how many vacancies were available at the time they completed the WSP.

In the WSPs submitted in March 2014 26% of the employers reported that they experienced skills shortages in the sense that they could not find suitable people to fill positions in their organisations.

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The total number of vacancies reported was 3 130; this equates to 2% of total employment in the sector (Table 6-1). The occupational group most affected by skills shortages is the group “skilled agricultural, forestry, fishery, craft and related trades workers” which includes artisans. Vacancies in this group constituted 9.7% of employment. In the occupational group “professionals” a total of 868 vacancies were reported – 3.7% of employment in the group.

Table 6-1 Summary of vacancies in scarce skills occupations: 2014

Occupational category Number of vacancies

% of total vacancies

% of total employment

Managers 491 16 2.7

Professionals 868 28 3.7

Technicians and associate professionals 380 12 1.2

Clerical support workers 103 3 0.6

Service and sales workers 30 1 0.8

Skilled agricultural, forestry, fishery, craft and related trades workers 1 000 32 9.7

Plant and machine operators and assemblers 182 6 0.6

Elementary occupations 77 2 0.4

Total 3 130 100 2.0 Source: WSP submissions, March 2014

Employers identified a total of 201 occupations in which they experienced scarcity. However, the overall impression is that the Chemical Sector is not experiencing major skills shortages, but that scarcity is being experienced more at the specialisation level within key occupations. The majority of the occupations were identified by only a few employers and in many of them the vacancy rates were quite low. In order to prioritise the skills that are in short supply in the sector a shortened list of scarce skills occupations was developed.113 This list can be seen in Table 6-2 and includes 67 occupations. The table provides information on the total number of people employed in each occupation, the number of employers who identified it as a scarce skill, the number of vacancies reported by employers and vacancies as percentage of employment in the occupation. The table also indicates whether or not the particular occupation was identified as a scarce skill in 2013, whether it is a scarce skill on the SIPS list, whether it was funded through CHIETA discretionary grants in the previous financial year and whether it occurs on the National Scarce Skills list published by the DHET in May 2014.

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This list was selected by applying the following rules to the occupations identified by employers: more than 2 employers identified it as a scarce skill, more than 5 vacancies, employment in the occupations more than 20 and vacancies as percentage of employment in the occupation more than 1%.

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Table 6-2List of scarce skills in the Chemical Sector: 2014

Occupation Name Nu

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Managing Director 1

538 5 15 1.0

Business Training Manager 249 8 26 10.3

Health and Safety Manager 367 5 18 4.9

Corporate General Manager 1

297 4 13 1.0

Quality Systems Manager 437 14 30 6.8

Sales and Marketing Manager 1

238 13 57 4.6

Sales Manager 1

960 11 19 1.0

Research and Development Manager 287 6 9 3.3

Operations Manager - Manufacturing 1

843 12 28 1.5

Engineering Manager 916 13 61 6.6

Manufacturing Quality Manager 420 6 8 2.0

ICT Project Manager 32 4 46 143.8

Application Development Manager 65 2 5 7.7

Information Technology Manager 177 2 10 5.5

Laboratory Manager 183 4 7 3.9

Operations Manager - Non Manufacturing 46 3 14 30.4

Call or Contact Centre Manager 123 5 10 8.0

Chemist 261 22 51 19.6

Manufacture Research Chemist 95 4 15 15.9

Geologist 63 2 12 18.9

Microbiologist 134 4 5 3.5

Medical Scientist 255 10 16 6.3

Pharmaceutical Physician 144 3 5 3.7

Industrial Engineer 750 15 61 8.2

Industrial Engineering Technologist 310 3 6 1.9

Mechanical Engineer 371 7 27 7.2

Mechanical Engineering Technologist 112 3 30 26.8

Chemical Engineer 732 7 14 2.0

Mining Engineer 152 2 16 10.5

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Occupation Name Nu

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Electrical Engineer 293 5 11 3.8

Electronics Engineer 63 6 13 20.9

Electronics Engineering Technologist 88 2 9 10.2

Industrial Pharmacist 406 9 20 4.9

Retail Pharmacist 22 8 48 211.8

Safety, Health, Environment and Quality - SHE&Q - Practitioner

1 410 11 65 4.6

Financial Accountant 432 3 15 3.5

Organisational Risk Manager 122 3 9 7.4

Internal Auditor 173 3 16 9.3

Regulatory Affairs Officer 476 10 24 4.9

Human Resource Advisor 806 4 22 2.7

Training and Development Professional 708 3 15 2.1

Marketing Practitioner 1

830 10 31 1.7

Communication Coordinator 194 3 39 20.1

Sales Representative - Industrial Products 2

126 19 58 2.7

Sales Representative - Medical and Pharmaceutical Products

3 031 12 33 1.1

Chemistry Technician 3

736 14 38 1.0

Electrical Engineering Technician 569 6 10 1.8

Mechanical Engineering Technician 432 3 9 2.1

Chemical Engineering Technician 188 3 6 3.0

Draughtsperson 165 8 25 15.1

Production Supervisor - Mining 456 2 16 3.5

Pharmaceutical Technician 336 6 27 8.1

Ammunition Technician 113 2 12 10.2

Sales Representative - Personal and Household Goods 279 2 10 3.6

Chemical Sales Representative 594 10 20 3.3

Pharmacy Sales Assistant 24 2 6 26.6

Production Coordinator 1

668 10 58 3.5

Program Administrator 580 2 11 1.9

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Occupation Name Nu

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Glazier 417 2 27 6.4

Boiler Maker 202 2 103 51.0

Fitter and Turner 862 7 28 3.3

Diesel Mechanic 214 2 8 3.7

Electrician 1

196 7 174 14.5

Millwright 1

114 9 51 4.6

Instrument Mechanician 1

020 9 42 4.1

Truck Driver - General 1

889 5 18 1.0 Source: WSP submissions, March 2014 and June 2013, CHIETA system DG Funding, SIPS list, DHET, Top 100 Scarce Skills.

The scarce skills information submitted through the WSPs does not always reflect all the nuances of skills shortages. In some instances the scarcity pertains only to a particular specialisation in an occupation or to people with very specific specialised skills. The OFO, which is used for the submission of scarce skills information in the WSPs, does not distinguish between true specialisations (i.e. additional or specific tasks that need to be performed in an occupation) and alternative titles used for that occupation. To better understand all the nuances of skills shortages, and to get a full understanding of scarcity and shortages from a chamber and regional perspective the CHIETA consulted stakeholders widely, through regional skills forums, and chamber meetings. The quantitative scarce skills list should be read in conjunction with the qualitative information acquired from stakeholder engagements.

In 2013 the CHIETA conducted subsector workshops to get an understanding of the different subsectors, and developed subsector-specific skills plans that contain more detail about the subsectors. In addition the regional skills forums held in June 2013 and 2014 and the Chamber meetings held in July 2013 and 2014 also focused on understanding the skills shortages in the sector.

Stakeholders that participated in these consultative processes pointed out that there are shortages in areas such as:

Site engineers and engineers with boiler experience in the Pharmaceutical subsector;

Maintenance, hydraulic, petroleum and refinery engineers in the Petroleum subsector;

LP modellers (forecasting). (Skills in this area are in short supply and there is currently no qualification in this field available in South Africa. As a result of this the Petroleum industry uses, in combination, the skills of accountants and industrial engineers to fulfil the tasks of LP modellers.);

Medical advisors (who should be qualified medical doctors);

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Specialist pharmacists (i.e. regulatory pharmacists, industrial pharmacists, responsible pharmacists) in the Pharmaceutical subsector. Sales and Marketing people with technical skills.

Research and development specialists.

Toxicologists in the cosmetics field.

Technical managers in the Surface Coatings industry. (Technical managers have to determine the type of product/paint that the company must manufacture and knowledge of chemistry is critical for this occupation).

Inspectors in the mechatronics field;

Welding inspectors (mainly because there is not dedicated training or a qualification for this occupation);

Computer numerical control (CNC) machine operators;

Instrument mechanicians with advanced skills who can render services at the level of technicians;

People who can work with ammonia in the Explosives and Fertiliser subsectors;

The Glass subsector pointed to Film applicators; and placed particular emphasis on auto glaziers and glass moulding.

Drillers with specialised skills (such as industrial abseiling or abseil-rope access);

Validation technicians;

Pack lab technologists. (The main role of pack lab technologists is to ensure that packaging is compatible with modern technology and legislation. Due to the unavailability of a qualification, the subsector is at present offering learners with Matric a one-year in-house training course to prepare them to work as pack lab technologists).

Analyser mechanicians, which is a specialisation of the occupation instrument mechanicians, in the Petroleum subsector.

Coded welders, which are specialisations of the welder occupation in the Petroleum Subsector.

Colour mixers and matchers (specialisations within chemical production machine operators) in the Surface Coatings Subsector.

Scarcity was also linked to the critical element of an occupation, for example the glass subsector reported on scaffolders, which is a top –up skill required of a selected number of glaziers.

The fact that many engineers do not complete their candidacy programmes and do not register as professional engineers’ lead to shortages in positions that require professional registration. Similarly there is a shortage of engineers with the government certificate of competency.

The reporting of scarce skills against OFO codes does not always suffice to signal the type of skills that the educational system needs to produce. Due to the technical nature of certain occupations, qualified engineers, pharmacists or medical doctors are appointed. The occupational names don’t indicate, however, that these professionals are required. In many instances the sales occupations in the Chemical Sector require high levels of technical knowledge and employers may also appoint professionally qualified people in these occupations.

Another aspect of skills shortages that needs to be borne in mind is the need to replace people who retire. In certain occupations advanced industry skills are required and people who retire are replaced from the ranks of other occupations. In occupations such as the registered trades, artisans who retire have to be replaced by people who have passed the relevant trade tests. That means that the number of people who pass the trade tests each year should at least be equal to the number who are about to retire (that is if the sector wants to provide for its own needs and doesn’t want to rely on other sectors

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to train artisans). However, in most of the registered trades there are already shortages and for this reason the number of new qualifiers have to exceed the number of people who are about to retire. Provision also needs to be made for growth of the sector.

6.3 GENERAL AND CROSS-CUTTING SKILLS NEEDS

The CHIETA does not only have a responsibility to intervene in the supply of skills to ensure that current skills shortages are addressed. The SETA also needs to attend to a number of cross-cutting and general skills – many of which involve large portions of the existing workforce. These skills needs are the focus of this section.

CORE CHEMICAL SKILLS INCLUDING SPECIALIST/CONTEXTUAL KNOWLEDGE 6.3.1

Information received from the sector on scarce skills indicates that in many of the main scarce skills areas, there is a high level of specialist or contextual skills and/or industry knowledge required. Skills shortages cannot be overcome by simply increasing the number of graduates in the relevant fields of study. Specialised knowledge is obtained through workplace experience and through advanced training programmes that are aimed at those areas of specialisation. In many instances these specialised courses are only available in the international arena and can only be accessed through courses that are offered abroad or through e-learning and other forms of distance education.

Each subsector employs a small number of specialists in a given field relevant to that specific subsector. For example Glass Architects are architects who have specialised in the technicalities of glass. Flavourists (employed in the FMCG Subsector) are specialists who are able to discern flavours in food, perfumes etcetera. Engineers specialising in explosives is another example.

The number of people needed in these occupations is usually very low but these people are key to the businesses within those industries. The Chemical Sector needs to ensure a sufficient supply of these skills as they are critical to operations in companies – even though they are not listed as scarce skills.

MANAGEMENT AND LEADERSHIP DEVELOPMENT 6.3.2

The supply of competent managers is a key aspect of skills development in any industry. The Chemical Sector employs a range of managers in specialised technical fields. These managers are mostly sourced from the ranks of experienced professionals in the sector. Technically skilled people therefore need to develop additional managerial skills. A few managerial positions are included in the list of scarce skills provided in Section 6.2. Management development should, however, not only focus on these occupations, but should provide for a steady flow of new management talent available to the sector. The managers in the sector are generally the oldest occupational category and their replacement demand is higher than that of other occupational groups.

The need for softer skills training for high level science and technical professionals has emerged as a skills need. Often the qualities that are needed and those that help highly qualified scientist and technologists can be a hindrance to them becoming successful leaders of other scientist. The transition from a scientist to a leader of scientists requires specialised management training that available management and leadership development programmes do not cover.

Management development is also needed to improve the race and gender equity profile of this occupational category.

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PROFESSIONAL SKILLS NEEDS 6.3.3

Professional skills are crucial to the Chemical Sector. Stakeholders continuously complain about the disjunction between the types of skills being produced particularly by the higher education institutions and the needs of the workplace. The CHIETA continues to build on the partnerships already established with HEIs to understand this better and to explore ways of overcoming some of the problems experienced. The focus of the work is in areas where there are likely to be immediate shortages because of the imminent retirement of experienced professionals, as well as in areas or fields of study that are relevant to and can contribute to environmental protection. It is also noted that professionals are integral to the pharmaceutical and cosmetics industries which are likely to experience rapid expansion if the IPAP II projects come to fruition and in the Petroleum subsector if progress towards shale gas exploration and extraction continues.

ENVIRONMENT 6.3.4

As indicated in previous chapters of this SSP, the environmental sustainability and the need to contain pollution, and to manage chemical waste in a responsible manner are major challenges that the Chemical Sector deals with on a continuous basis. These issues are not only managerial concerns, but involve all employees in the sector. The Responsible Care initiative referred to in Section 2.6.7 requires a commitment by all employees of participating companies to apply their expertise responsibly to the benefit of the environment.

Apart from general attitudes and an environmental orientation that needs to be cultivated in the sector, specific skills also need to be developed to assist the sector in its quest for environmentally responsible operations. The need for environmental consideration is not limited to the Chemical Sector and the CHIETA. All sectors of the economy and all SETAs have to take environmental issues in consideration. To assist SETAs in this regard, the Department of Environmental Affairs compiled an enabling document as an input into SSP processes. The following key points are relevant to the Chemical Sector:

Many subsectors of the Chemical Sector make use of non-renewable natural resources. Ensuring sustainable availability and consumption of natural resources should be a key consideration to the sector. Specific skills are needed to manage access and consumption. Strategic planning skills are needed to optimise the utilisation of extracted resources.

Diminishing fresh water supplies have led to increasing pressure on large-scale water users in the chemicals, plastics and pharmaceutical sectors. More stringent regulatory limits on the discharge of organic compounds make compliance more difficult and costly to achieve with conventional treatment processes. Skills related to water treatment and conservation are therefore very important to this sector.

Another area of specialisation relevant to several of the professions employed in the Chemical Sector is the development of cleaner production processes, including the reduction of air pollution. The South African Government has committed itself to drastically reduce carbon emissions. The chemical industry’s goals in this regard are to reduce its own emissions by improving its processes and to encourage the use of chemical products that create a net reduction of carbon emissions along the value chain.

Recycling also forms part of the improvement of the sector’s performance in terms of environmental impact. Recycling is an area where the chemical industry needs to engage with communities and it provides opportunities for outreach programmes and for skills development (and even enterprise

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development) in poor communities. One example of recycling of chemical products is the recycling of glass. The Glass Subsector is engaged in the recycling of cullet (recycled glass). Recycling of cullet benefits the environment in that it supplements raw material, saves energy through lower melting temperatures, conserves landfill space thus benefitting the lifespan of sites and reduces litter. At the same time recycling projects help with job creation. The skills needs in this area pertain specifically to micro and informal businesses. Glass collectors need to be trained to prepare the cullet in the right format and size before offering it for sale. Various other areas still need to be explored, for example the recycling or use of left-over paint.

HEALTH AND SAFETY 6.3.5

Occupational health and safety remains a key priority for the sector. This includes health and safety as a cross cutting skills need in all occupations as well as in relation to specialist occupations and roles. A relatively large proportion (31%) of environmental and occupational health inspectors are likely to retire in the next five years and as this is a critical occupation in the Chemical Sector, specific attention needs to be given to the training of a large enough group of people to feed into this occupation.

A major need for the Chemical Sector is hazardous materials handling, and ammonia handling in the fertilisers and explosives subsector and transportation of hazardous materials by truck drivers.

RECOGNITION OF PRIOR LEARNING (RPL) 6.3.6

RPL within artisan training has gained momentum within the Chemical Sector. Other RPL assessments have been conducted as part of learnerships but not recorded separately since valid assessment can take place via different routes, including RPL. The need for RPL remains in the sector.

FOUNDATIONAL LEARNING 6.3.7

As has been noted, the qualification levels of employees in the Chemical Sector are high in relation to the highest qualification levels of the South African population as a whole. However, it has also been noted that the key driver for general growth in the sector will be innovation and technological improvement. This means that jobs in the sector are likely to demand higher level skills across all occupations, and therefore those employees who do not yet have a qualification at NQF Level 1, or who have qualifications at Levels 1 to 3, need to have access to programmes which enable them to complete foundational learning. Stakeholders have put emphasis on the need for more foundational learning programmes in the sector, particularly the NSC for Adults (NASCA), also known as the ‘second chance matric’ that has now been registered with SAQA that will soon be implemented, in addition to Adult Basic Education and Training (ABET), Foundational Learning Competence (FLC) and relevant bridging programmes.

NEW SKILLS AND OCCUPATIONS 6.3.8

The ever changing modern environment requires companies to adapt in order to remain competitive. These adaptations will often require variations in the skills demanded in specific occupations or even whole new occupations to be created. In such cases scarcity is to be expected as providers have not yet been able to construct programmes and standards to train workers. For example the growing concern over the impact of businesses on the natural environment is leading to changing occupations as well as new occupations. Perhaps in the next 5 years new occupations will emerge that rely on composite skills such as a “Greengineer” which combines engineering expertise with knowledge of environmental legislation and sustainable economic initiatives relevant to the Chemical Sector.

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6.4 SKILLS REQUIRED FOR THE SUCCESSFUL IMPLEMENTATION OF STRATEGIC INFRASTRUCTURE PROJECTS (SIPS)

In 2012 the South African Government adopted a National Infrastructure Plan that intends to transform our economic landscape and strengthen the delivery of basic services while simultaneously creating significant numbers of new jobs114.The plan will be implemented through a number of SIPS and all SETAs are required to support this plan by supporting and committing funds to identified SIPs scarce skills. A SIPs Scarce Skills List was released by government in 2013 (version one – May 2013). SETAs were requested to take into consideration the list in their planning processes. In the table below, occupations that are relevant to CHIETA have been highlighted in yellow. Welding will receive particular support from CHIETA.

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Presidential Infrastructure Coordinating Commission Report 2012

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Table 6-3Scarce Skills for the Special Infrastructure Projects (SIPs)

Occupational Cluster

Note

Critically scarce (50-100%) Significantly scarce (20-50%) Scarcity indicated (0-20%)

Management cluster

121905: Programme or Project Manager (~350)

214301: Environmental Engineer (~300)

134901: Environmental Manager (~150)

121904: Contract Manager (~100)

241101: Financial Manager (~100)

121908: Quality Systems Manager (~100)

Professionals and Associate

Professionals

216502: Land and engineering surveyors (~550)

214201: Civil Engineer (~1500) 314301: Forestry Technician (~150)

214907: Materials Engineer (~450)

215101: Electrical Engineer (~1100)

242102: Organisation and Methods Analyst (incl. scheduler, estimator) (~100)

121905: Programme or Project Manager (~350)

311301: Electrical Engineering Technician (~950)

311401: Electronic Engineering Technician (~300)

226302: Safety, Health, Environment and Quality Practitioner (~550)

214908: Materials Engineering Technologist (~150)

214401: Mechanical Engineer (~500)

351301: Computer Network Technician (~150)

132301: Construction Project Manager / Site Manager (~450)

311801: Draughtsperson (~350)

311501: Mechanical Engineering Technician (~350)

311601: Chemical Engineering Technician (~300)

214904: Quantity Surveyor (~200)

671102: Electrical Installation Inspector (~150)

121904: Contract Manager (~100)

241101: Accountant (~100)

Service and clerical workers

441903: Program or Project Administrators / Assistants (~250)

833402: Store person (~200)

Trades

641201: Bricklayer (~1700) 641502: Carpenter (~150)

671101: Electrician (~1200) 671202: Millwright (~600)

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651302: Boilermaker (~500)

641501: Carpenter and Joiner (~500)

653301: Industrial Machinery Mechanic (~450)

642601: Plumber (~400)

643101: Painter (~350)

642607: Pipe Fitter (~300)

642302: Plasterer (~250)

651202: Welder (~250)

651501: Rigger (~200)

651101: Moulder (~150)

651404: Structural Plater (~150)

651301: Sheet Metal Worker (~100)

Plant and machine operators

734205: Grader Operator (~450)

734204: Excavator Operator (~300)

733201: Truck Driver (General) (~700)

734201: Earthmoving Plant Operator (~250)

734213: Road Roller Operator (~250)

734301: Crane or Hoist Operator (~200)

711405: Concrete Batching Plant Operator (~100)

Elementary and non-trade production

workers

312301: Construction supervisor / clerk of works (~1050)

134916: Operations Foreman (Non- Manufacturing)

831305: Cement and Concrete Plant Worker (~250)

831303: Earthmoving Worker (~850)

Construction and maintenance labourers (~100)

862202: Handyperson (~850)

641401: Concreter (~2500) 831302: Drainage, Sewerage and Storm Water Worker (~800)

611302: Landscape Gardener (~150)

831312: Sign Erector (~200)

641902: Scaffolder (~500)

831310: Surveyor's Assistant (~150)

Source: PICC SIPs Scarce Skills List (version one- May 2013)

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6.5 CONCLUSIONS

This chapter focussed on the mismatches that exist in the Chemical Sector labour market that manifest in skills shortages – also known as “scarce skills”. Although employers identified scarce skills across a number of occupations, not all these can be regarded as truly scarce. In this chapter a shortened list of scarce skills consisting of only 32 occupations – most of which are professional occupations or registered trades – is included. In most instances these occupations require maths and science for entry into the study programmes and a pre-entry training period of four years or longer. Many of the occupations also require workplace training as part of the training period. The scarce skills are clearly the result of the supply-side constraints highlighted in the previous chapter of this SSP.

Skills shortages are, however, not only a matter of numerical imbalances. In many instances they have a strong qualitative component. That means that employers not only need people with the necessary qualifications, but they are looking for specific specialised skills – many of which can only be developed in the work environment. For this reason it is important that the CHIETA and industry work together in solving the skills challenges experienced in the Sector.

The skills required for the successful implementation of the SIPs were considered. The CHIETA will provide particular support in relation to welders.

The next chapter provides an overview of the CHIETA’s strategic priorities that are aimed at resolving many of these challenges.

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7. CHIETA STRATEGIC OBJECTIVES

7.1 INTRODUCTION

Following an analysis of the sector profile, and the skills demand and supply within the sector, the CHIETA has determined strategic priorities and a set of sector-specific programmes that will meet sector needs. In the development of these priorities and programmes various national Government imperatives were taken into consideration. In relation to skills development these include, the HRD Strategy for South Africa, NSDS III, the White Paper on Post-School Education and Training and the National Skills Accord. Government interventions aimed at economic growth and development includes the National Development Plan: Vision for 2030, the New Growth Plan and, IPAP and Government’s MTSF. Further consideration has been given to current and on-going commitments and funding available. The strategic priorities and programmes provide the basis for the strategic plan which contains the detail and the budgets for the planning period.

This chapter of the Sector Skills Plan starts by highlighting some of the most pertinent issues arising from the previous chapters of the SSP. This is followed by a summary of the CHIETA’s strategic priorities and priorities of each of the CHIETA chambers.

It is assumed that the reader is familiar with the first five chapters of this SSP and the CHIETA’s Strategic Plan, and is relatively familiar with the national policies and plans.

7.2 STRATEGIC ISSUES ARISING FROM THIS SSP

The CHIETA has in the last two years made great strides in the collection of data on the sector. The occupational profiling processes and the source data that were submitted through the mandatory grant applications have enabled the SETA to start developing a more robust information system and an in-depth understanding of the demand-side of the sectoral labour market. These processes need to continue into the future and improvements are still needed in terms of the categorisation of jobs and people according to the OFO. The monitoring of trends in the sector remains of strategic importance. The monitoring and evaluation of the impact of interventions is also an area that needs future attention.

The profile of the Chemical Sector, as described in Chapter 2 of this SSP, clearly highlights the sector’s dependence on high-level human resources. Furthermore, the sector’s growth is closely linked to its R&D capability which, in turn depends of high-level human resources. Many of the skills that are in short supply in the sector require people with advanced higher education qualifications as well as specialised, sector-specific training and work experience. It is important for the SETA to develop a clear understanding of the areas of specialisation necessary in each of the subsectors, to monitor skills demand in these areas and to work with industry and education institutions to ensure a sufficient supply of people in areas of specialisation. This needs to be done while simultaneously focusing on the transformational needs of the sector.

This sector uses in many instances sophisticated and expensive equipment and at the same time it works with hazardous substances. The operation and maintenance of plants and equipment is critically important and as a consequence the sector depends on technical skills – especially those of artisans. In some instances generic training in a particular trade is not sufficient and additional, sector-specific training is needed.

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The development of many of the occupations in the sector (especially artisans and certain categories of technicians and professionals) require workplace experience. The provision of opportunities to gain workplace experience remains a key imperative for the sector.

The need for specialised skills has forced employers and industry organisations to take responsibility for skills development. In some instances they have developed not only high levels of understanding of their own needs but also mechanisms to address those needs – some in collaboration with the education and training sector. At the same time some of the education and training institutions have long-standing relationships with industry while others don’t have those levels of engagement. Skills development interventions in the Chemical Sector can only be relevant and sustainable if they are planned and executed in a collaborative manner and through partnerships.

There are currently a plethora of Government strategies and interventions that exert an influence in the skills development environment. Some of them are only marginally relevant while others are directly aimed at the Chemical Sector. However, from the analysis presented in earlier chapters it is clear that Government is a key role player in the sector and that the growth of the sector depends to a large extent on the success with which Government strategies will be implemented. The successful implementation of these strategies are however dependent on the provision of the necessary skills. While there are already examples of new developments as a result of collaboration between Government (and especially the dti) and other stakeholders in the sector, support for Government strategies that aim to stimulate the growth of the Chemical Sector remains a strategic imperative for the sector.

7.3 CHIETA’S STRATEGIC PRIORITIES







Priority 1: Enhancing the skills of the existing workforce of the Chemical Sector

The development of the current workforce is the first priority area on which the CHIETA will focus. Intervention in this area is, however, dependent on a thorough understanding of the sectoral labour market, the skills required by industry and the current skills levels of the labour force. The further development and maintenance of a labour market intelligence system (including an integrated data management system and relevant research and analyses) will continue. An important component of the intelligence system is the updating and improvement of the CHIETA Occupations Handbook. The dictionary includes detailed occupational profiles and profiles of specialisations within occupations and learning pathways. The occupational profiling process will also culminate in a Chemical Sector qualifications framework. The SETA will also continue with research on existing skills and skills gaps of the workforce (skills survey). The enhancement and expansion of CHIETA’s management information system to store comprehensive skills development information remains critical.

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Upskilling of the existing workforce requires better utilisation of workplace based skills development and increased access to occupational learning programmes at the entry, intermediate and high level. The CHIETA’s focus will be on the continuous improvement of the quality of learning and to enhance learners’ prospects of gainful and sustained employment. Programmes include ABET, bridging programmes or foundational learning for workers requiring it, apprenticeships, trade and non-trade learnerships, skills programmes, and various professional programmes. Strong emphasis is placed on recognition of prior learning (RPL) to accelerate the career advancement of the existing workforce. In both artisan and non-artisan learning programmes, health and safety is key.

The CHIETA will continue to strengthen the role of skills development committees in skills planning and reporting and continue to ensure that organised labour participation in these processes is increased.

Priority 2: Supporting skills development of new entrants to the Chemical Sector

Like many other sectors, the Chemical Sector has access to a limited number of school leavers who meet the requirements for further or higher education and training in engineering and other technical disciples. As a result CHIETA supports programmes to increase the pool of school leavers with maths and science. The programmes include educator development for maths and science as CHIETA disciplines require maths and science.

The CHIETA has made bursaries available for learners to study in relevant chemical disciplines at tertiary institutions, and will now be partnering with the National Student Financial Aid Scheme (NSFAS) for bursary support.

Deepening and expanding career development and support opportunities through partnering with government and other professional or industry associations is important to ensure a steady flow of learners into the Chemicals Sector and specifically into occupations where there are current or anticipated skills shortages.

To enhance the flow of new skills into the sector, to address youth unemployment and to expand the opportunities for greater employment and empowerment of youth in the economy, CHIETA will continue supporting placement of learners and graduates in workplaces, either as part of their in-service training requirements or for post qualification work experience.

The CHIETA will support the implementation of the National Senior Certificate for Adults (NASCA) primarily for employed learners.

Priority 3: Responding to changing sectoral needs and priorities

Through research and skills planning processes changing sectoral needs and priorities are identified. The ever-changing modern environment requires adaptation and responsiveness. These adaptations often entail changes in the skills sets required in specific occupations or even the creation of new occupations. The growing concern over the impact of businesses on the natural environment is, for example, leading to changes in the skills sets required in occupations as well as the establishment of new occupations. Technological changes also lead to changing skills needs.

Following Cabinet’s decision to lift the moratorium on hydraulic fracturing exploration in 2012, whether Government will ultimately permit hydraulic fracturing to go ahead remains unclear. In anticipation of possible fracking, CHIETA will need to establish whether sufficient skills will be available for the various phases of fracking, particularly drilling and engineering skills as well as specialist skills related to fracking.

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The CHIETA will work with industry players to identify other changing needs and to respond accordingly.

The CHIETA will also continue to support new skills development initiatives, such as the Dual Artisan Model, with relevant partners.

Priority 4: Strengthening and expanding strategic partnerships to maximise sustainability and impact

of skills development interventions

Partnerships with public and private institutions in support of building a sustainable post-school sector are important. As indicated in previous chapters of this SSP, the CHIETA has a range of relationships with public FETs, UoTs and universities as do some of the CHIETA companies. The SETA will continue to play a central role in facilitating conversations and bringing relevant stakeholders together to forge stronger cooperation around skills development priorities through a structured well-coordinated skills development framework.

The CHIETA is promoting the growth of the public FET college system in various forms including giving programme approval to FETs to offer specific chemical sector qualifications and programmes, supporting infrastructure support and development of FET lecturer. Partnerships and collaboration particularly with industry is in place and with FET colleges, artisan development remains a priority. CHIETA will continue to strengthen and deepen the partnerships between industry and relevant FET colleges.

CHIETA partners with a range of public universities and universities of technology, and is looking at enhancing this collaboration.

Priority 5: Support national imperatives in relation to skills development, with emphasis on the Chemical Sector

The CHIETA, within the ambit of its skills development mandate, is responsive to the medium term priorities of government with dedicated projects in support of specifically rural development and the strengthening of the human resources and skills base of South Africa. Additional interventions are aimed at supporting the strengthening of a developmental state.

7.4 SUBSECTOR PRIORITIES

Within the framework set by the CHIETA’s skills development priorities, each of the chambers has also identified their priorities for the planning period.

PETROLEUM AND BASE CHEMICALS 7.4.1

For the Petroleum and Base Chemicals Chamber the following are priorities:

The implementation of the South African Petroleum Institute in support of an integrated skills development strategy in the petroleum industry. The Institute will be virtual in nature, consisting of a select number of affiliated educational institutions (FET colleges, universities of technology, universities and private providers) recognised as key providers to the industry and accredited by the CHIETA Education and Training Quality Assurance Body(ETQA). A centralised institute office will fulfil a facilitating and coordinating role in:

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o the provision of appropriate skills for the industry across the value chain, i.e. upstream,

midstream and downstream, through curriculum development, alignment with

technological advances, continuous professional development (CPD) programmes, etc.;

o building capacity in educational institutions by supporting educators to become subject

matter experts in their respective fields, and by periodic engagement of experts from

educational institutions abroad and/or from industry as guest lecturers;

o the provision of placements for experiential and work-based training – learnerships,

apprenticeships and internships;

o guiding and facilitating the articulation of appropriately skilled staff to higher

qualification levels through the recognition of prior learning and career development,

with a special emphasis on equity and redress; and

o collaborating with accreditation bodies such as CHIETA-ETQA, the Quality Council for

Trades and Occupations (QCTO), ECSA, and the departments responsible for the

Government Certificate of Competence (GCC), where appropriate.115

The implementation of a coherent approach to skills development in the oil and gas industry, inclusive of a Marine Oil and Gas Academy, aimed at linking industry with public and private providers and learners in the oil and gas value chain, and developing local capacity, benchmarked against global standards.

Skills to support new and emerging developments such as shale gas exploration and extraction through hydraulic fracturing or “fracking”. It is expected that this new development will require people with a strong maths and science base, that skills will have to be developed across all levels and that emphasis will have to be placed on trans-disciplinary natural and social science skills.

EXPLOSIVES AND FERTILISERS 7.4.2

For the Explosives and Fertiliser Chamber the following are priorities:

Multi-skilling of people in the manufacturing and engineering fields, for example fitters and quality inspectors.

Encouraging engineers (qualified with both BTech and BSc degrees) to obtain the GCC and ensuring that programmes are in place to prepare people for the examinations (company guidelines should be explicit regarding any requirements).

Continuing to support the UNISA Explosives Technology course as a critical qualification for employees to progress to supervisory levels.

Implementing RPL and gap training in relation to a range of occupations.

Providing work placement opportunities to FET college, university and UoT students/graduates as part of building the pipeline of new entrants to the subsectors.

Ensuring sufficient accredited skills development providers of key programmes (such as Chemical Operations Levels 1 to 4) in geographical areas where required including Richard Bay.

Consolidating the strong existing relationships with public FET colleges, universities and UoTs.

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Statement of Intent: A South African Petroleum Institute, 18th

July 2014.

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GLASS 7.4.3

For the Glass Chamber the following are priorities:

The development of an integrated approach to qualifications with glass specialisations and learning pathways. This includes

o addressing the need for a glass technology qualification at post-graduate level by engaging with universities of technology to get this in place, and

o prioritising the development of qualifications in relation to moulding glass and glazing.

The development and dissemination of career information to workers within companies as well as to school leavers and new entrants to the labour market.

The continued training of glaziers and auto-glaziers.

Multi-skilling and up-skilling of qualified machine operators to also become trade tested fitters.

Increasing the number of engineers who obtain professional registration and who attain the GCC.

Enhancing the Glass ISOE, with its two sites in Springs and Cape Town, by consolidating partnerships with local FET Colleges and municipalities and expanding learning programme offerings.

Supporting learning programmes aimed at new and emerging small enterprises (including cooperatives and CBOs), particularly in relation to re-using and recycling of glass in support of the green economy.

PHARMACEUTICALS AND FMCG 7.4.4

For the Pharmaceuticals and FMCG Chamber the following are priorities:

The review and development of an integrated approach to qualifications for the pharmaceuticals subsector. This includes

o working with the professional associations and relevant SETAs, specifically the HWSETA and WRSETA, in relation to professional occupations and support personnel.

o Identifying critical pre-competitive programmes related to key occupations that are currently not accredited but may be worth formalising.

Supporting IPAP imperatives in relation to growing the pharmaceuticals and cosmetics subsectors with emphasis on the development of regulatory pharmacists and toxicologists.

Development and dissemination of career information to workers within companies as well as the young people. This information will emphasise the legal requirements of occupations.

The continued training of pharmacists, including industrial pharmacists, and sales and marketing personnel with a professional skills base.

Provision of in-service training.

Continuing to work with public universities and UoTs to ensure relevant programmes and delivery modes (e.g. part time classes, e-learning etc.).

Promoting the alignment of BBBEE skills development objectives with training in support of transformation.

Increasing the number of engineers who obtain professional registration and who attain the GCC.

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SPECIALITY CHEMICALS AND SURFACE COATINGS 7.4.5

For the Speciality Chemicals and Surface Coatings Chamber the following are priorities:

Ensuring sufficient ATPs of key programmes (such as Chemical Operations Levels 1 to 4) in geographical areas where required including the Eastern Cape.

Supporting the development of SIP scarce occupation, i.e. painter.

Enhancing the Surface Coatings ISOE (SAPMA) by consolidating partnerships with public institutions (already NMMU partnership in relation to Paint Chemists, but considering partnering with local FET colleges) and formalising learning programme offerings (manufacturing, application and retail).

The continued training of key occupations including chemists and technical sales representatives for both speciality and surface coatings subsectors.

Addressing and opening up blockages within learning pathways between NQF bands including in relation to chemical operators (NQF Level 4), chemical engineering technicians (diploma) and chemical engineers (degree) by, amongst others, industry-provider (public and private) engagements and partnerships

Encouraging engineers to do the trade test as such dual qualifications are highly valued by industry

7.5 CHIETA’S STRATEGIC PROGRAMMES

CHIETA’s ten strategic programmes largely mirror the NSDS III goals and are listed below:

i. Establishing a credible institutional mechanism for skills planning; ii. Increasing access to occupationally directed programmes;

iii. Promoting the growth of a public FET college system that is responsive to skills needs and priorities at sector-, local-, regional- and national levels;

iv. Addressing the low level of youth and adult language and numeracy skills to enable additional learning;

v. Encouraging better use of workplace-based skills development; vi. Encouraging and supporting cooperatives, small enterprises, worker-initiated-, NGO- and

community-training initiatives; vii. Increasing public sector capacity for improved service delivery and supporting the building of a

developmental state; viii. Building career and vocational guidance;

ix. Supporting Medium term Strategic Framework priorities; x. Administration (Governance).

The specific content of the ten programmes is set out in the Strategic Plan. However, the CHIETA is involved with government, public providers and industry partners regarding initiatives in support of NSDS III and other Government policies and plans. Some of these initiatives are worth highlighting. These include:

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The CHIETA in partnership with the South African Petrochemical Industry Association (SAPIA) and the University of the Witwatersrand are developing An Integrated Approach to the Skills

Requirements of South Africa’s Petrochemical Industry. The flagship project follows a multi-phase approach in its roll out and started with the enrolment of students into the MSc in Petroleum Engineering, a new qualification previously not available in South Africa. The CHIETA has partnered with the dti Cosmetics desk’s objectives of ensuring that SA has the necessary skills for Cosmetics product manufacturing, testing and marketing by getting involved in interventions that address skills shortages for the sector. The CHIETA has gotten involved in the promotion of Toxicologist as a career option among learners by developing an occupational profile in with the dti and Toxicology South Africa (ToXSA).

The CHIETA supports two Institutes of Sectoral Occupational Excellence (ISOEs) projects in the glass and surface coatings subsectors. Investigations for ISOEs in the pharmaceutical, explosives and fertilisers and petrochemicals are underway. The SEZ programme seeks to promote trade, economic growth and industrialisation in targeted areas across South Africa (SA) that will take account of the economic development needs and challenges of specific regions in order to improve current spatial development inequalities. The study undertaken to develop a SEZ in the Saldanha Bay area highlights the importance of local skills development initiatives that target the training of maintenance personnel in chemical, mechanical, electrical and control engineering. The CHIETA through its partnership with the South African Oil and Gas Alliance plans to be actively involved in the Saldanha Bay IDZ. The CHIETA supports FET College and University of Technology learners to gain placement for

workplace experience through Work Integrated Learning through discretionary grants funding.

The WIL interventions vary from Engineering and Related Design, Electrical Engineering, to Civil

Engineering and Construction. WIL interventions are also linked to SIPs scarce skills occupations

for primarily unemployed learners. SIPs scarce occupations, are supported primarily via CHIETA

DG in SIP scarce skill occupations, and targeted projects such as in Saldanha Bay.

The CHIETA have agreed on a rural development strategy involving three district municipalities and one municipality in the uMgungundlovu district. The strategy is based on the Ecosystem approach which advocates an emphasis on internal reinforcement of the key role players. The three districts to be serviced are Chris Hani, Alfred Nzo and Umkhanyakude and the fourth local municipality is Mpendle and it falls under the uMgungundlovu district.

DHET has renamed the FET Colleges to Technical Vocational Education and Training Authorities

to align them to key objectives in the White Paper for Post School Education and Training for the

college system. In response to this, the CHIETA has supported TVET colleges with Pivotal and

non –pivotal grants to support learners registered in National Certificate Vocational, with

second chance maths and science to enable learners to access chemical sector related

programmes

Support research looking into building community colleges from the bottom up to advance the

purpose of the White Paper for Post School Education and Training. The research investigates a

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model for developing a Community Education College informed by strong non-formal learning

programmes.

Plans to support the Nelson Mandela Metropolitan University Earth Stewardship Research

Institute research into the geophysics hydrology and environmental dynamics related to Shale

Gas deposits in the Karoo area.

7.6 CONCLUSION

This SSP bears evidence of the strides that the CHIETA has made in the past few years towards the development of a robust information system and an in-depth understanding of both the demand and supply sides of the sectoral labour market. The further development and maintenance of this system, the monitoring or trends in the sector and the measuring of the impact of CHIETA interventions should continue into the future.

The Chemical Sector requires a wide spectrum of scientific, technical and support skills. Skills planning should provide for a constant flow of all these skills into the sectoral labour market. Of specific importance though are the highly specialised skills needed in the various subsectors – skills that are only developed through specialised and sector-specific formal training in combination with work experience. While skills development should provide for the development of these skills and the eradication of shortages experienced in the sector, it should simultaneously address the need for further transformation of the sector.

The growth and development of the Chemical Sector is to a large extent dependent on and intertwined with various Government initiatives to stimulate economic growth. These initiatives are, however, dependent on the provision of the necessary skills. The CHIETA has, therefore, a responsibility to support all these initiatives with targeted skills development interventions.

It is against this background that the CHIETA formulated its five strategic objectives for the current planning period:

Enhancing the skills of the existing workforce of the Chemical Sector

Supporting skills development of new entrants to the Chemical Sector

Responding to changing sectoral needs and priorities

Strengthening and expanding strategic partnerships to maximise sustainability and impact of skills development interventions


The specific interventions planned in order to give effect to these priorities are set out in the Strategic Plan. In addition to this, each of the CHIETA chambers has set out its own priorities.

In order provide in the skills needs of the sector a concerted effort is required of all the role players. Most of the interventions are therefore planned in a collaborative manner and will be executed through partnerships between the CHIETA and its stakeholders, including employers, education and training providers, industry bodies, professional bodies, organised labour, various government departments and otherSETAs

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REFERENCES

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Chief Directorate: Communication, Department of Environmental Affairs, South Africa’s Green Economy Strategy, Pretoria. http://www.enviropaedia.com/topic/default.php?topic_id=342. Accessed 6 October 2012.

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Eastern Cape Department of Agriculture and Rural Development (2010) Draft Eastern Cape Rural Development Strategy.

Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (2010), Eastern Cape Provincial Industrial Development Strategy (PIDS), March 2010.


http://www.csir.co.za/sol/docs/8th%20SoL%202011_23May2012.pdf

http://www.energy.gov.za/files/media/Pub/PetroleumAndLiquidFuelsCharter_AuditReport.pdf

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Education Statistics in South Africa 2011 (2013). Department of Basic Education.

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Gauteng Department of Economic Development (2010) Gauteng Employment Growth and Development Strategy.

Gauteng Department of Economic Development (2010) Gauteng Industrial Policy Framework 2010-2014.

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Glass Stakeholder Workshop, 19 June 2013.

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Government of the Eastern Cape (2012) Eastern Cape Provincial Jobs Strategy 2012.

http://saqccgas.co.za/?page_id=61 (Accessed 15 July 2013).

http://www.bdlive.co.za/articles/2012/05/16/petrosa-launches-sa-s-first-academic-fuel-research-centre;jsessionid=71B5475152CA2825A9899B5441858237.present1.bdfm. Accessed 28 May 2013.

http://www.dpsa.gov.za/article.php?id=57. Accessed 29 November 2012.

http://www.hsrc.ac.za/uploads/pageContent/3328/2011febSouth%20African%20Crude%20Oil%20import%20portfolio%20risks.pdf

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http://www.necsa.co.za/Necsa/Company-Information-499.aspx, accessed 24 November 2012.


http://www1.ifc.org/wps/wcm/connect/9ecab70048855c048ab4da6a6515bb18/coke_PPAH.pdf?MOD=AJPERES. Accessed 28 May 2013.

http://global.britannica.com/EBchecked/topic/575029/surface-coating

http://www.info.gov.za/view/DownloadFileAction?id=135748




http://saqccgas.co.za/?page_id=61



http://www.dpsa.gov.za/article.php?id=57



http://www.info.gov.za/speeches/2009/09071411151001.htm

http://www.investopedia.com/terms/o/oil-refinery.asp





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Limpopo Provincial Government (2009) Limpopo Employment Growth and Development Plan 2009 - 2014

Mail&Guardian (2013) Gauteng e-tolls just around the corner, 26 May 2013,http://mg.co.za/article/2013-05-26-gauteng-e-tolls-just-around-the-corner, Accessed 14 June 2013.

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Mpumalanga Provincial Government (2011) Draft Mpumalanga Economic Growth & Development Path, February 2011.

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Petroleum and Base Chemicals stakeholder workshop, 22 June 2013.

Pharmaceutical stakeholder workshop, 26 June 2013.

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PSG Online, http://www.psgonline.co.za/docs/mandates/IRC_Brochure_Currency_Trader.pdf, Accessed 19 August 2013.

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RSA. (2013). 2013 Budget Speech by the Minister of Finance Pravin Gordhan, 27 February 2013. http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=34533&tid=99785. Accessed 28 June 2013.






http://www.psgonline.co.za/docs/mandates/IRC_Brochure_Currency_Trader.pdf

http://www.education.gov.za/EMIS/StatisticalPublications/tabid/462/Default.aspx

http://www.education.gov.za/EMIS/StatisticalPublications/tabid/462/Default.aspx


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South African Reserve Bank, 2012.

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www.info.gov.za/otherdocs/2000/isrds.pdf. Accessed 29 November 2012.

www.info.gov.za/otherdocs/2000/isrds.pdf. Accessed 29 November 2012.



http://www.impulsaxl.com/business-accelerator-vs-business-incubator.html

http://www.stanlib.com/EconomicFocus/Pages/SARandexchangerateNov2011.aspx

http://www.dti.gov.za/parliament/Memo-SEZ.pdf





126

ANNEXURE A Methodology used to weight WSP data to sector totals

The information that employers submit annually to the CHIETA in their Mandatory Grant applications (WSPs/ATRs) provides detailed information on employment in the sector. In order to compensate for organisations that did not submit mandatory grant applications, the data was weighted to sectoral figures. This was done by using the size of the levy amount paid as a proxy for employment. Weighting was calculated separately for each subsector and for the different size organisations in each, because of wage differentials that occur between subsectors and organisations of different sizes.

In each of the subsector-size categories the weights applied were calculated as follows:

Weight = Levy amount paid (all organisations)/levy amount paid (organisations who submitted WSPs)

The weights were applied to the individual employee records and were used throughout the analysis of the sectoral profile. The weights that were applied to each subsector are shown in the table below.

Subsector < R100 000 R100 000 - R999 999

R1 mil – R4 999 999

R5 mil – R9 999 999

R10 mil +

Base Chemicals 4.5 1.1 1.3 1.0 Explosives

1.0

1.0

FMCG 2.2 1.1 1.2

1.0

Fertilisers 3.7 1.2 1.0 Glass 5.3 1.7

1.0

Petroleum 1.9 1.3 1.3 1.0 1.0

Pharmaceuticals 1.8 1.1 1.3 Speciality Chemicals 1.7 1.1 1.0 1.0

Surface Coatings 2.0 1.1 1.0

127

ANNEXURE B The National Skills Accord and the CHIETA’s support in relation to the Accord

The National Skills Accord116 is one of the first outcomes of social dialogue on the New Growth Path. This accord was entered into between government, business, labour and civil society and was signed in July 2011. The accord consists of the following eight commitments:

1) To expand the level of training using existing facilities more fully.

2) To make internship and placement opportunities available within workplaces.

3) To set guidelines of ratios of trainees: artisans as well as across the technical vocations, in

order to improve the level of training.

4) To improve the funding of training and the use of funds available for training and incentives

on companies to train.

5) To set annual targets for training in state-owned enterprises.

6) To improve SETA governance and financial management as well as stakeholder involvement.

7) To align training to the New Growth Path and improve Sector Skills Plans.

8) To improve the role and performance of FET Colleges.

Not all the commitments have a direct bearing on the skills planning of the sector i.e. Commitment 5 that sets targets for training in state-owned enterprises. The other commitments are discussed briefly.

Commitment 1: To expand the level of training using existing facilities more fully Under this commitment the stakeholders agreed that 30 000 new artisan learners will enter training in this financial year. Fifty six percent (16 800) of these should come from the private sector. The CHIETA ‘s targets are contained within the CHIETA Strategic Plan and Annual Performance Plan (APP).

Commitment 2: To make internship and placement opportunities available within workplaces. According to this commitment companies will annually make 12 000 placements/internship spaces available for students who complete their certificates at FET Colleges, 5 000 internships for 3rd year students at universities of technology who need the work experience as part of their qualifications, and they will provide opportunities for training exposure in a work environment to at least 16 000 lecturers at FET Colleges. This will be phased in, with 20% of the target to be achieved in 2011, 50% in 2012 and 100% from 2013. The parties also agree to work together to improve both the capacity and quality of FET colleges.

CHIETA is working together with a number of FET Colleges to strengthen their capacity and to enable them to deliver on the skills development needs of the chemical sector. Ensuring sufficient workplaces for placement opportunities remains a big challenge within the chemical sector and nationally.

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.

Under this commitment businesses should set targets of the ratios of trainees: qualified personnel they should have, in order to ensure that there are sufficient numbers of persons in the training pipeline. These ratios should be stretch targets in order to improve significantly on current performance.

128

CHIETA now has a thorough understanding of the occupational structure of the sector (see Chapter 4 of SSP Update). Based on the employment information available the SETA, as part of national processes, can now start to consider the relevant ratios and set training targets accordingly.

Commitment 4: To improve the funding of training and the use of funds available for training and incentives on companies to train.

This commitment includes various provisions, the most relevant of which is business’s commitment to improve spending on training that companies undertake beyond the 1% compulsory training levy. Business will urge companies to spend between 3 percent and 5 percent of payroll (total salary bill) on training, with as many companies as possible at the high end of this range.

The CHIETA’s role in this regard is to ensure that the necessary programmes are in place, that there is a sufficient supply of accredited providers and that good quality training takes place.

Commitment 6: To improve SETA governance and financial management as well as stakeholder involvement.

The on-going improvement of SETA governance is one of the goals within Programme 10.

Commitment 7: To align training to the New Growth Path and improve Sector Skills Plans. The stakeholders came to seven undertakings pertaining to the SSPs and their linkages to the New Growth Path. CHIETA’s support in relation to these undertakings is shown in the table below.

Undertaking CHIETA

The framework of all SSPs will be aligned to the New Growth Path and its manufacturing-driver, the IPAPII.

CHIETA’s SSP update looks at the skills requirements if the sector had to increase job creation in line with the expectations set out in the New Growth Path and IPAP. Subsequent to the signing of the Accord, government’s overarching framework is the NDP, which is also given due consideration in the SSP Update.

The SSPs should support growth and jobs in the sectors by ensuring relevant skills are developed and by significantly stepping up production of key skills. Quantitative targets will be set for training particularly for core skills and key skills to improve industrial and workplace performance. This will also include clear targets on the number of apprentices to be enrolled in each sector and systems to track progress against targets.

Priority skills are identified in the SSP Update and clear targets for the development of core skills have been set. (see CHIETA’s Strategic Plan and APP)

Business and labour commit to ensuring that the funding of New Growth Path: Accord 1.1.4 training through the skills development levy is directed towards the training that meets the skills needs of the economy, including the training of professionals and training programmes that leads to a qualification.

The training of professionals and other priority occupations in the provision of core skills is contained in the SSP Update.

Workplace skills plan requirements will be incorporated into the SSPs to ensure that these are aligned to the national goals set out herein and that training practices are transformed in South Africa’s workplaces.

CHIETA’s WSP-ATR criteria are outlined within the CHIETA Funding Policy and support national requirements. The SSP also draws on some of the information provided in the WSP-ATR as well as other qualitative data.

129

A funding plan will be developed to support the targets set out in SSPs and WSPs.

The CHIETA’s budget forms part of the strategic plan and APP documentation, and is based on priorities identified within the SSP.

Structures that exist should be used where possible and parties will work closely with relevant government departments, including those dealing with higher education, economic development, trade & industry, mineral resources, agriculture, forestry and fisheries and labour.

Key government departments (dti and Department of Energy) are represented on CHIETA structures including the Governing Board and the Chambers. Furthermore CHIETA works closely with DHET. CHIETA also engages with provincial government. Ad-hoc relationships exist with several other departments, such as Environmental Affairs.

Sectors will develop these new Sector Skills plans by September 2011 for submission to the DHET by 30 September 2011 for consideration by the Minister of higher education and training.

This SSP update is submitted by CHIETA to the DHET on the prescribed annual deadline.

130

ANNEXURE C Mapping of economic sectors to CHIETA subsectors and SIC Codes

Economic sector (Quantec data)

CHIETA Subsector SIC Code Scope of Coverage/Description

Coke & refined petroleum products

Base Chemicals 33300 Processing of nuclear fuel

Petroleum 33100 Manufacture of coke oven products

Petroleum 33200 Petroleum refineries/synthesisers

Basic chemicals Base Chemicals 33410 Manufacture of basic chemicals, except fertilizers and nitrogen compounds

Base Chemicals 33430 Manufacture of plastics in primary form and of synthetic rubber

Fertilizers 33420 Manufacture of fertilizers and nitrogen compounds

Fertilizers 33421 Manufacture raw materials and chemical compounds used in agriculture

Other chemicals & man-made fibres

Explosives 33592 Manufacture of explosives and pyrotechnic products


33501 Chemically-based general household and personal care products


33541 Manufacture of soap and other cleaning compounds


33543 Manufacture of beauty products

Pharmaceuticals 33530 Manufacture of pharmaceuticals, medicinal chemicals and botanical products

Speciality Chemicals 33502 Manufacture, sale and/or distribution of diversified speciality chemicals for industrial use

Surface Coatings 33520 Manufacture of paints, varnishes and similar coatings, printing ink and mastics

Non-metallic minerals

Base Chemicals 34000 Manufacture of other non-metallic mineral products

Glass & glass products

Glass 34110 Manufacture of glass and glass products

Glass 34112 Manufacture of glass containers; glass kitchenware and tableware; scientific and laboratory glassware, clock and watch glasses and other glass products n.e.c.

Excluded Base Chemicals 41210 Manufacture of industrial gases in compressed, liquefied or solid forms

Fertilizers 11600 Production of organic fertilizer

Petroleum 87140 Industrial research, e.g. fuel research

Petroleum 61410 Wholesale trade in solid, liquid and gaseous fuels and related products

Speciality Chemicals 36400 Manufacture of accumulators, primary cells and primary batteries

Surface Coatings 39005 Powder coating

131

ANNEXURE D NEW NQF LEVELS

NQF BAND QUALIFICATION NQF level

General Education and Training (GET)

Grade 9 / ABET Level 4 1

Further Education and Training (FET)

Grade 10/N1/NCV 1 2

Grade 11/N2/NCV 2 3

Grade 12/N3/NCV 3 4

Higher Education and Training (HET)

National certificates 5

National diplomas 6

National first degrees and higher diplomas 7

Honours degrees 8

Master’s degrees 9

Doctoral and post-doctoral research degrees 10

132

ANNEXURE E CHEMICAL SECTOR OCCUPATIONS

Unit Group Name Emp

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UG

Occupation Code Occupation Name N

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TOP

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TTED

Managing Directors and Chief Executives

1 538 112101 Managing Director 1 538 5 15 1.0

Finance Managers 1 649 121101 Finance Manager 1 490 6 8 0.5

121102 Payroll Manager 38 0.0

121103 Credit Manager 90 0.0

121104 Internal Audit Manager 32 0.0

Human Resource Managers 1 200 121201 Human Resource Manager 537 2 2 0.3

121202 Business Training Manager 249 8 26 10.3

121203 Compensation and Benefits Manager

34 0.0

121206 Health and Safety Manager 367 5 18 4.9

Policy and Planning Managers 150 121301 Policy and Planning Manager 150 0.0

Business Services and Administration Managers not Elsewhere Classified

2 778 121901 Corporate General Manager 1 297 4 13 1.0

121902 Corporate Services Manager 262 0.0

121903 Physical Asset Manager 29 0.0

121904 Contract Manager 35 0.0

121905 Programme or Project Manager 705 0.0

121908 Quality Systems Manager 437 14 30 6.8

Sales and Marketing Managers 3 908 122101 Sales and Marketing Manager 1 238 13 57 4.6

122102 Sales Manager 1 960 11 19 1.0

122103 Director of Marketing 410 0.0

122105 Customer Service Manager 294 0.0

Research and Development 287 122301 Research and Development 287 6 9 3.3

133

Unit Group Name Emp

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3

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TTED

Managers Manager

Manufacturing Managers 3 386 132101 Manufacturer 207 0.0

132102 Operations Manager - Manufacturing

1 843 12 28 1.5

132104 Engineering Manager 916 13 61 6.6

132106 Manufacturing Quality Manager 420 6 8 2.0

Supply, Distribution and Related Managers

1 615 132401 Supply and Distribution Manager

978 8 9 0.9

132402 Logistics Manager 247 3 3 1.3

132403 Road Transport Manager 23 0.0

132404 Warehouse Manager 335 1 21 6.3

132405 Fleet Manager 25 0.0

Information and Communications Technology Service Managers

444 133101 Chief Information Officer 161 2 2 1.4

133102 ICT Project Manager 32 4 46 143.8

133104 Application Development Manager

65 2 5 7.7

133105 Information Technology Manager

177 2 10 5.5

Professional Services Managers not Elsewhere Classified

542 134901 Environmental Manager 25 0.0

134902 Laboratory Manager 183 4 7 3.9

134903 Small Business Manager 56 0.0

134904 Office Manager 118 2 4 3.4

134912 Commissioned Fire and Rescue Officer

18 0.0

134915 Operations Manager - Non 46 3 14 30.4

134

Unit Group Name Emp

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Manufacturing

134916 Operations Foreman - Non Manufacturing

83 0.0

Retail and Wholesale Trade Managers

150 142103 Retail Manager - General 150 1 0 0.0

Services Managers not Elsewhere Classified

207 143901 Facilities Manager 46 0.0

143904 Security Services Manager 37 0.0

143905 Call or Contact Centre Manager 123 5 10 8.0

Chemists 356 211301 Chemist 261 22 51 19.6

211302 Manufacture Research Chemist 95 4 15 15.9

Geologists and Geophysicists 283 211401 Geologist 63 2 12 18.9

211402 Geophysicist 14 0.0

211403 Materials Scientist 206 1 1 0.5

Biologists, Botanists, Zoologists and Related Professionals

551 213108 Microbiologist 134 4 5 3.5

213110 Medical Scientist 255 10 16 6.3

213111 Pharmaceutical Physician 144 3 5 3.7

Farming, Forestry and Fisheries Advisers

208 213201 Agriculture Consultant 63 0.0

213202 Agricultural Scientist 108 1 1 0.9

213205 Food and Beverage Scientist 38 3 4 10.0

Industrial and Production Engineers 1 166 214101 Industrial Engineer 750 15 61 8.2

214102 Industrial Engineering Technologist

310 3 6 1.9

214103 Production Engineer 67 0.0

214104 Production Engineering Technologist

39 1 20 51.7

135

Unit Group Name Emp

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Emp

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Mechanical Engineers 483 214401 Mechanical Engineer 371 7 27 7.2

214402 Mechanical Engineering Technologist

112 3 30 26.8

Chemical Engineers 921 214501 Chemical Engineer 732 7 14 2.0

214502 Chemical Engineering Technologist

185 2 3 1.5

Mining Engineers, Metallurgists and Related Professionals

250 214601 Mining Engineer 152 2 16 10.5

214603 Metallurgical Engineer 26 0.0

214604 Metallurgical Engineering Technologist

30 1 2 6.7

214607 Petroleum Engineer 33 0.0

Electrical Engineers 381 215101 Electrical Engineer 293 5 11 3.8

215102 Electrical Engineering Technologist

82 1 15 18.2

Electronics Engineers 151 215201 Electronics Engineer 63 6 13 20.9

215202 Electronics Engineering Technologist

88 2 9 10.2

Pharmacists 432 226202 Industrial Pharmacist 406 9 20 4.9

226203 Retail Pharmacist 22 8 48 211.8

Environmental and Occupational Health and Hygiene Professionals

1 431 226301 Environmental Health Officer 21 0.0

226302 Safety, Health, Environment and Quality - SHE&Q - Practitioner

1 410 11 65 4.6

Accountants 1 742 241101 Accountant - General 911 1 0 0.0

241102 Management Accountant 327 0.0

241103 Tax Professional 50 0.0

136

Unit Group Name Emp

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241104 External Auditor 20 0.0

241107 Financial Accountant 432 3 15 3.5

Financial Analysts 175 241301 Financial Investment Advisor 175 1 0 0.0

Management and Organization Analysts

1 056 242101 Management Consultant 910 1 1 0.1

242102 Organisation and Methods Analyst

146 0.0

Policy Administration Professionals 1 139 242202 Policy Analyst 88 0.0

242203 Company Secretary 35 0.0

242204 Corporate Treasurer 19 1 14 73.7

242207 Compliance Officer 181 1 0 0.0

242208 Organisational Risk Manager 122 3 9 7.4

242211 Internal Auditor 173 3 16 9.3

242213 Regulatory Affairs Officer 476 10 24 4.9

242214 Intellectual Property Special Advisor

31 0.0

Personnel and Careers Professionals 959 242302 Skills Development Facilitator 74 1 0 0.0

242303 Human Resource Advisor 806 4 22 2.7

242304 Industrial Relations Advisor 60 1 0 0.0

242307 Recreation Officer 15 0.0

Training and Staff Development Professionals

1 005 242401 Training and Development Professional

708 3 15 2.1

242402 Occupational Trainer 265 1 4 1.5

242403 Assessment Practitioner 29 0.0

Advertising and Marketing 2 525 243101 Advertising Specialist 56 0.0

137

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Professionals 243102 Market Research Analyst 640 3 2 0.3

243103 Marketing Practitioner 1 830 10 31 1.7

Public Relations Professionals 258 243201 Communication Coordinator 194 3 39 20.1

243203 Corporate Communication Manager

49 0.0

243204 Event Producer 13 0.0

Technical and Medical Sales Professionals (Excluding ICT)

5 157 243301 Sales Representative - Industrial Products

2 126 19 58 2.7

243302 Sales Representative - Medical and Pharmaceutical Products

3 031 12 33 1.1

Systems Analysts 346 251101 ICT Systems Analyst 346 0.0

Software Developers 213 251201 Software Developer 50 0.0

251202 Programmer Analyst 119 1 1 0.8

251203 Developer Programmer 44 0.0

Database Designers and Administrators

276 252101 Database Designer and Administrator

276 0.0

Systems Administrators 261 252201 Systems Administrator 261 2 2 0.8

Computer Network Professionals 172 252301 Computer Network and Systems Engineer

158 0.0

252302 Network Analyst 14 1 1 7.9

Chemical and Physical Science Technicians

4 133 311101 Chemistry Technician 3 736 14 38 1.0

311102 Physical Science Technician 380 1 8 2.0

311103 Radiation Control Technician 12 1 11 88.9

Electrical Engineering Technicians 608 311301 Electrical Engineering Technician

569 6 10 1.8

138

Unit Group Name Emp

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311302 Electric Substation Operations Manager

28 0.0

311303 Energy Efficiency Technician 11 0.0

Electronics Engineering Technicians 169 311401 Electronic Engineering Technician

169 0.0

Mechanical Engineering Technicians 522 311501 Mechanical Engineering Technician

432 3 9 2.1

311502 Boilers and Pressure Vessels Inspector

91 1 13 14.4

Chemical Engineering Technicians 188 311601 Chemical Engineering Technician

188 3 6 3.0

Draughtspersons 165 311801 Draughtsperson 165 8 25 15.1

Physical and Engineering Science Technicians not Elsewhere Classified

391 311904 Manufacturing Technician 315 1 1 0.4

311905 Industrial Engineering Technician

61 1 6 10.6

Mining Production / Operations Supervisors

987 312101 Production Supervisor - Mining 456 2 16 3.5

312102 Miner 531 1 0 0.0

Manufacturing Supervisors 6 905 312201 Production Supervisor - Manufacturing

5 893 7 18 0.3

312202 Maintenance Planner 1 012 2 1 0.1

Chemical Processing Plant Controllers

5 802 313301 Chemical Plant Controller 5 802 26 52 0.9

Petroleum and Natural Gas Refining Plant Operators

1 547 313401 Gas or Petroleum Controller 1 547 1 1 0.1

Process Control Technicians not Elsewhere Classified

541 313901 Integrated Manufacturing Line Process Control Technician

351 1 0 0.0

313907 Food and Beverage 15 3 4 25.5

139

Unit Group Name Emp

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Manufacturing Process Controller

313910 Juice Extraction Process Controller

11 0.0

313912 Mineral Beneficiation Process Controller

27 0.0

313913 Chemical Waste Controller 86 0.0

313916 Manufacturing Production Technicians

42 0.0

Pharmaceutical Technicians and Assistants

336 321301 Pharmaceutical Technician 336 6 27 8.1

Environmental and Occupational Health Inspectors and Associates

709 325703 Agricultural / Horticultural Produce Inspector

11 0.0

325705 Safety Inspector 522 2 3 0.6

325706 Ammunition Technician 113 2 12 10.2

325707 Mines Safety Inspector 53 0.0

Accounting Associate Professionals 719 331301 Bookkeeper 689 1 2 0.3

331302 Accounting Technician 29 0.0

Commercial Sales Representatives 1 363 332201 Commercial Sales Representative

378 0.0

332202 Sales Representative - Building and Plumbing Supplies

45 1 0 0.0

332203 Sales Representative - Personal and Household Goods

279 2 10 3.6

332204 Commercial Services Sales Agent

32 0.0

332205 Manufacturer’s Representative 10 0.0

140

Unit Group Name Emp

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332207 Chemical Sales Representative 594 10 20 3.3

332208 Pharmacy Sales Assistant 24 2 6 26.6

Buyers 1 351 332302 Purchasing Officer 1 351 0.0

Employment Agents and Contractors

277 333301 Recruitment Consultant 28 0.0

333303 Labour Recruitment Consultant: Temporary Employment Services (TES)

249 0.0

Business Services Agents not Elsewhere Classified

1 525 333903 Sales Representative - Business Services

76 0.0

333904 Business Broker 15 0.0

333905 Supply Chain Practitioner 1 154 2 4 0.4

333908 Marketing Coordinator 179 0.0

333910 Business Support Coordinator 90 0.0

Office Supervisors 1 050 334101 Office Supervisor 318 0.0

334102 Office Administrator 732 0.0

Administrative and Executive Secretaries

847 334302 Personal Assistant 847 1 1 0.1

Computer Network and Systems Technicians

158 351301 Computer Network Technician 37 0.0

351302 Geographic Information Systems Technicians

121 2 3 2.5

General Office Clerks 3 855 411101 General Clerk 3 855 6 8 0.2

Secretaries (General) 430 412101 Secretary - General 430 0.0

Data Entry Clerks 233 413201 Data Entry Operator 233 0.0

Contact Centre Information Clerks 507 422201 Inbound Contact Centre Consultant

247 0.0

141

Unit Group Name Emp

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422202 Outbound Contact Centre Consultant

141 0.0

422203 Contact Centre Real Time Advisor

17 0.0

422206 Call or Contact Centre Agent 99 0.0

Enquiry Clerks 695 422501 Enquiry Clerk 695 0.0

Receptionists (General) 716 422601 Receptionist - General 716 1 1 0.1

Accounting and Bookkeeping Clerks 2 705 431101 Accounts Clerk 2 578 1 0 0.0

431102 Cost Clerk 127 0.0

Payroll Clerks 228 431301 Payroll Clerk 228 3 11 4.8

Stock Clerks 4 109 432101 Stock Clerk 1 795 5 7 0.4

432102 Dispatching and Receiving Clerk 1 287 0.0

432103 Order Officer 229 0.0

432104 Warehouse Administrator 760 0.0

432105 Lampman 38 0.0

Production Clerks 1 668 432201 Production Coordinator 1 668 10 58 3.5

Transport Clerks 170 432301 Transport Clerk 170 1 1 0.6

Filing and Copying Clerks 302 441501 Filing or Registry Clerk 257 0.0

441502 Office Machine Operator 44 0.0

Personnel Clerks 359 441601 Human Resources Clerk 194 1 0 0.0

441602 Skills Development Administrator

146 0.0

441603 Compensation and Benefits Clerk

17 0.0

Clerical Support Workers not 667 441902 Contract Administrator 81 1 3 3.7

142

Unit Group Name Emp

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Elsewhere Classified 441903 Program Administrator 580 2 11 1.9

Shop Sales Assistants 659 522301 Sales Assistant - General 635 7 5 0.8

522303 Automotive Parts Salesperson 20 0.0

Cashiers and Ticket Clerks 265 523102 Office Cashier 265 0.0

Sales Demonstrators 159 524201 Sales Demonstrator 159 1 15 9.4

Service Station Attendants 725 524501 Service Station Attendant 725 0.0

Sales Workers not Elsewhere Classified

800 524901 Materials Recycler 16 0.0

524903 Sales Clerk 784 3 3 0.4

Fire fighters 187 541101 Fire Fighter 187 2 4 2.4

Security Guards 517 541401 Security Officer 509 0.0

Glaziers 417 642501 Glazier 417 2 27 6.4

Welders and Flame Cutters 308 651202 Welder 259 1 283 109.3

651203 Fitter-Welder 48 2 3 6.5

Sheet Metal Workers 246 651301 Sheet Metal Worker 43 0.0

651302 Boiler Maker 202 2 103 51.0

Riggers and Cable Splicers 186 651501 Rigger 186 0.0

Metal Working Machine Tool Setters and Operators

1 237 652301 Metal Machinist 376 4 0 0.0

652302 Fitter and Turner 862 7 28 3.3

Agricultural and Industrial Machinery Mechanics and Repairers

2 567 653301 Industrial Machinery Mechanic 131 0.0

653302 Mechanical Equipment Repairer 53 0.0

653303 Mechanical Fitter 2 078 6 18 0.9

653306 Diesel Mechanic 214 2 8 3.7

653307 Heavy Equipment Mechanic 14 0.0

143

Unit Group Name Emp

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653311 Manufacturing Machine Setter 76 1 3 3.4

Glass Makers, Cutters, Grinders and Finishers

335 661501 Glass Maker 239 0.0

661502 Optical Mechanic 97 1 0 0.0

Building and Related Electricians 1 202 671101 Electrician 1 196 7 174 14.5

Electrical Mechanics and Fitters 1 192 671202 Millwright 1 114 9 51 4.6

671203 Mechatronics Technician 68 1 5 7.5

Electronics Mechanics and Servicers 1 029 672105 Instrument Mechanician 1 020 9 42 4.1

Product Graders and Testers (Except Foods and Beverages)

274 684305 Quality Examiner (Manufactured Products)

272 1 4 1.7

Miners and Quarriers 1 561 711101 Mining Operator 1 561 0.0

Mineral and Stone Processing Plant Operators

581 711201 Mineral Processing Machine Operator

533 0.0

711203 Diamond Cutter 38 0.0

Chemical Products Plant and Machine Operators

10 027

713101 Chemical Production Machine Operator

10 027 12 56 0.6

Rubber Products Machine Operators

221 714101 Rubber Production Machine Operator

221 0.0

Plastic Products Machine Operators 719 714202 Plastic Compounding and Reclamation Machine Operator

193 0.0

714203 Plastics Fabricator or Welder 10 0.0

714204 Plastics Production Machine Operator - General

363 0.0

714205 Reinforced Plastic and Composite Production Worker

36 0.0

714206 Rotational Moulding Operator - Plastics

113 0.0

144

Unit Group Name Emp

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Glass and Ceramics Plant Operators 1 942 718101 Clay Production Machine Operator

28 0.0

718102 Glass Production Machine Operator

1 914 3 8 0.4

Packing, Bottling and Labelling Machine Operators

3 211 718301 Labelling Machine Operator 72 0.0

718302 Packing Machine Operator 373 0.0

718303 Filling Line Operator 2 223 0.0

718304 Packaging Manufacturing Machine Setter

543 1 57 10.5

Stationary Plant and Machine Operators not Elsewhere Classified

1 343 718905 Engineering Production Systems Worker

546 1 2 0.4

718906 Bulk Materials Handling Plant Operator

659 0.0

718907 Weighbridge Operator 99 0.0

718912 Wash Plant Operator 16 0.0

718914 Sand Blaster 23 0.0

Electrical and Electronic Equipment Assemblers

371 721201 Electrical and Electronic Equipment Assembler

371 0.0

Assemblers not Elsewhere Classified 193 721901 Product Assembler 193 1 3 1.7

Motorcycle Drivers 1 614 732101 Delivery Driver 1 614 3 0 0.0

Heavy Truck and Lorry Drivers 3 652 733201 Truck Driver - General 1 889 5 18 1.0

733204 Tanker Driver 1 086 2 10 0.9

733208 Mobile Mining Equipment Operator

674 1 0 0.0

Mobile Farm and Forestry Plant Operators

442 734101 Agricultural Mobile Plant Operator

442 1 7 1.7

145

Unit Group Name Emp

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734204 Excavator Operator 15 0.0

734205 Grader Operator 11 0.0

734206 Loader Operator 673 0.0

Lifting Truck Operators 1 234 734402 Forklift Driver 1 230 4 8 0.7

Domestic Cleaners and Helpers 396 811101 Domestic Cleaner 396 0.0

Cleaners and Helpers in Offices, Hotels and Other Establishments

3 067 811201 Commercial Cleaner 2 869 0.0

811202 Healthcare Cleaner 31 0.0

811203 Tea Attendant 160 0.0

Window Cleaners 161 812301 Window Cleaner 161 0.0

Mixed Crop and Livestock Farm Labourers

370 821301 Mixed Crop and Livestock Farm Worker / Assistant

370 0.0

Mining and Quarrying Labourers 1 376 831101 Mining Support Worker 1 370 0.0

831302 Water Process Worker 172 0.0

831310 Surveyor's Assistant 135 0.0

Hand Packers 2 839 832101 Packer - Non Perishable Products

2 810 0.0

832102 Meat Packer 29 0.0

Manufacturing Labourers not Elsewhere Classified

6 306 832901 Metal Engineering Process Worker

496 0.0

Manufacturing Labourers not Elsewhere Classified

6 306 832902 Plastics, Composites and Rubber Factory Worker

258 0.0

832903 Timber and Wood Process Worker

64 0.0

832904 Food and Beverage Factory Worker

102 0.0

146

Unit Group Name Emp

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832906 Glass Processing Worker 598 0.0

832907 Chemical Plant Worker 4 372 7 25 0.6

832908 Clay Processing Factory Worker 125 0.0

832910 Component Fitter 293 1 25 8.5

Freight Handlers 609 833301 Freight Handler 264 0.0

833302 Truck Driver's Offsider 331 0.0

833303 Waterside Worker 14 0.0

Shelf Fillers 2 861 833401 Shelf Filler 984 0.0

833402 Store Person 1 876 0.0

Odd Job Persons 1 198 862202 Handyperson 1 197 0.0

Elementary Workers not Elsewhere Classified

1 808 862914 Sheltered Workshop Worker 58 0.0

862915 Chemical Mixer 341 0.0

862918 Electrical or Telecommunications Trades Assistant

1 316 1 0 0.0

862919 Mechanic's Assistant 90 0.0

Source: WSP submissions, March 2014

147

ANNEXURE F CHIETA STRATEGIC RESEARCH AGENDA: 2014/2015 AND 2015/2016

NO THEME DESCRIPTION

1 Core labour market research CHIETA aims to enhance and maintain a Credible Institutional Mechanism for Skills Planning for the CHIETA. This includes:

WSP/ATR Source Data Collection and Analysis

Updating the occupation profiles and the CHIETA occupational profile dictionary, inclusive of “green skills” (annual update)

Updating the chemical qualifications framework/matrix against the OFO (Annual review & update)

Occupational and Employee skills survey (Skills Audit)

Supply side database (including tracking).

The annual update of the Sector Skills Plan (SSP) and its submission to DHET is a requirement. The objectives of the update are to:

Provide for any new government and sectoral policies and imperatives

Revise the statistical information based on the most current research and information available

Update the skills needs (including scarce, critical and PIVOTAL skills list)

Expand on chamber/sub-sector analysis and projected skills needs

Incorporate a provincial dimension where possible

Report on CHIETA’s progress with regard to objectives and targets set out in the SSP since the commencement of NSDS III

Sub-sector skills plan for all 9 sub-sectors updated annually.

A annual Employment and Training Trends report in the Chemical Sector, with the aim of building up time series data ( 2012-2013 to 2014-2015 - 3yr analysis)

148

In support of building a national Credible Institutional Mechanism for Skills Planning, CHIETA will participate in DHET-HSRC Labour Market Intelligence Programme (LMIP) and other related initiatives.

2

Technical and Vocational Education and Training (TVET) including Work Integrated Learning (WIL)

Inclusive of but not limited to:

Articulation pathways for targeted occupation/s

Case studies of TVET/WIL in chemical sector

Innovations in skills development related to the chemical sector and/nationally

Critical cross field outcomes based learning in support of TVET

Institutes of Occupational and/or Sectoral Excellence (ISOE) in the chemical sector in support of TVET including WIL

3

Impact assessment

This theme includes the following elements:

Building in impact indicators to all CHIETA performance indicators as per the Strategic Plan and Annual performance Plan (APP)

Conducting impact studies on target programmes or projects

Tracking and tracing of leaners

4 Sustainability and Socio-economic development

The theme includes the following possible areas:

Projections of the impact of the Green Economy on the Chemical Sector and specific implications for skills

Hydraulic fracturing (“fracking”) for shale gas

Building community education programmes and community projects which strengthen local communities, socially and economically, with a link to the chemical sector

Strategic Infrastructure Projects (SIPs)

Growth of priority national economic sectors such as cosmetics and pharmaceuticals

5 Other Surveys or investigations based on needs as identified internally and by CHIETA stakeholders (via the Research and Skills Planning Committee)

149

ANNEXURE G CHIETA strategic goals in relation to PIVOTAL programmes and budget

SSP Strategic Priority

CHIETA Strategic Goals

CHIETA Strategic

Programmes

Programme Purpose

Performance Focus

Funding Streams in

terms of Grant Regulations

Public Institutions Rural Development

Focus

Pivotal/Non Pivotal

Programme

FET Colleges

UOT Universities

RESPOND TO CHANGING SECTORAL NEEDS AND PRIORITIES

ESTABLISH A CREDIBLE INSTITUTIONAL MECHANISM FOR SKILLS PLANNING

PROGRAMME 1: RESEARCH AND SKILLS PLANNING

A professional and credible skills development planning tool for the Chemical Sector articulating sector realities and needs and agreed sector strategies to address skills need.

A credible and well researched Sector Skills Plan.

Pivotal and Non Pivotal programmes

-

-

_

ENHANCE THE SKILLS OF THE EXISTING WORKFORCE OF THE CHEMICAL SECTOR. SUPPORT SKILLS DEVELOPMENT OF NEW ENTRANTS INTO CHEMICAL SECTOR

INCREASE ACCESS TO OCCUPATIONALLY DIRECTED PROGRAMMES

PROGRAMME 2: OCCUPATIONALLY DIRECTED PROGRAMME

To ensure continuous training of the Chemical Sector workforce through mid- level skills need and apprenticeship training and addressing of high level national scarce skills through

Development of middle and high level priority skills supported through the CHIETA Grants system.

Pivotal programme

Unemployed learners from rural areas participating in learnerships, skills programmes, internships, bursaries and artisan development

150



CHIETA Strategic

Programmes

Programme Purpose

Performance Focus

Funding Streams in



Focus

work ready graduates from Higher Education Institutions.

STRENGTHEN AND EXPAND STRATEGIC PARTNERSHIPS TO MAXIMISE SUSTAINABILITY AND IMPACT OF SKILLS DEVELOPMENT

PROMOTING GROWTH OF PUBLIC FET COLLEGE SYSTEM THAT IS RESPONSIVE TO SECTOR, LOCAL, REGIONAL AND NATIONAL SKILLS NEED AND PRIORITIES

PROGRAMME 3: FET COLLEGE PROGRAM

To visibility and tangibly establish cooperation frameworks between CHIETA, FET’s and Industry in support of relevant skills development towards industry needs and sector capacity requirements

Partnerships between CHIETA and FET colleges, CHIETA employers and private providers to ensure meeting the increased capacity needs of the Chemical Sector

Pivotal and Non Pivotal programmes

- - Rural learners for FET Graduate Placement; Grade 12 learners to obtain university entrance.

ENHANCE THE SKILLS OF THE EXISTING WORKFORCE OF CHEMICAL SECTOR. SUPPORT SKILLS DEVELOPMENT OF NEW ENTRANTS INTO THE CHEMICAL SECTOR.

ADDRESSING THE LOW LEVEL LANGUAGE AND NUMERACY SKILLS TO PROVIDE ACCESS TO ADDITIONAL TRAINING

PROGRAMME 4: LOW LEVEL YOUTH AND ADULT LANGUAGE AND NUMERACY SKILLS

To assist and contribute to the eradication of poor educational foundation amongst the youth and adult learners whom are currently ill prepared for further learning

Raising the educational base to ensure that further learning can take place. AET programmes FLC &

bridging programmes HET

ABET,

Non Pivotal programme

- -

Rural learners for Maths / Science Bridging programmes and AET / ABET

151



CHIETA Strategic

Programmes

Programme Purpose

Performance Focus

Funding Streams in



Focus

NASCA, Maths / Science

ENHANCE THE SKILLS OF THE EXISTING WORKFORCE OF CHEMICAL SECTOR

ENCOURAGING BETTER USE OF WORKPLACE-BASED SKILLS DEVELOPMENT

PROGRAMME 5: WORK PLACED BASED SKILLS DEVELOPMENT

The training of critical and scarce skills and the development of a workforce that is adaptable to changes in the labour market and address the skill imbalances in the sector

Continuous training to improve overall productivity and performance of the Chemical Sector

20% Mandatory payment in terms of the Grant Regulation R990 of 3 December 2012

- - - -

FET UOT Universities

STRENGTHEN AND EXPAND STRATEGIC PARTNERSHIPS TO MAXIMISE SUSTAINABLE AND IMPACT OF

ENCOURAGING AND SUPPORTING CO-OPERATIVES, SMALL ENTERPRISES, WORKER INITIATED NGO’S AND

PROGRAMME 6: SUPPORT TO CO-OPS, SMALL ENTERPRISES, WORKER INITIATED NGO’s AND COMMUNITY TRAINING

Through dedicated CHIETA Funding to support these structures by utilizing skills development

Quality partnerships established in support of Co-ops, worker initiated NGO’s, CBO’s small


- - Rural communities supported through, co-operatives, NGO’s, CBO, CBC and SMME Support

23A

152



CHIETA Strategic

Programmes

Programme Purpose

Performance Focus

Funding Streams in



Focus

SKILLS DEVELOPMENT INTERESTS

COMMUNITY TRAINING INITIATIVES

INITIATIVES opportunities in order to empower people to make a living

enterprises and community training initiatives

STRENGTHEN AND EXPAND STRATEGIC PARTNERSHIPS TO MAXIMISE SUSTAINABLE AND IMPACT OF SKILLS DEVELOPMENT INTERESTS

INCREASING PUBLIC SECTOR CAPACITY FOR IMPROVED SERVICE DELIVERY AND SUPPORTING AND BUILDING OF A DEVELOPMENTAL STATE

PROGRAMME 7: PUBLIC SECTOR CAPACITY

Establishment and maintenance of a responsible and accountable entity responsive to stakeholder needs and imperatives

Capacity Building of public sector through partnerships

Pivotal programme

- -

RESPOND TO CHANGING SECTORAL NEEDS AND PRIORITIES

BUILDING CAREER AND VOCATIONAL GUIDANCE

PROGRAM 8: CAREER AND VOCATIONAL GUIDANCE

CHIETA providing attractive pathways for personal and career development for young people and rural learners

Career guidance towards careers in the Chemical Sector


Grade 9 - 12 rural schools

SUPPORT NATIONAL IMPERATIVES IN RELATION TO SKILLS DEVELOPMENT WITH EMPHASIS

ADDRESSING THE MEDIUM TERM STRATEGIC PRIORITIES OF GOVERNMENT

PROGRAMME 9: MEDIUM TERM STRATEGIC PRIORITIES

To impact through skills development onto the national priorities of Government

To construct and deliver on quality projects in support of Government priorities

Pivotal programme and Non Pivotal programme

- Participation on CHIETA SMME Voucher Support Scheme.

153



CHIETA Strategic

Programmes

Programme Purpose

Performance Focus

Funding Streams in



Focus

ON CHEMICAL SECTOR

SUPPORT NATIONAL IMPERATIVES IN RELATION TO SKILLS DEVELOPMENT WITH EMPHASIS ON CHEMICAL SECTOR

ADMINISTRATION

PROGRAMME 10: ADMINISTRATION

Instil and maintain a culture of good Corporate Governance

Maintain and continuously improve stakeholder confidence on who CHIETA disburse of its mandate

10,5% in terms of grant regulation R990 of 3 December 2012

- -

154

Skills’ planning in the SETA environment takes place within the context of government policies and plans, to improve the skills base of the country and to uplift and stimulate the economy. The most important policies and plans relevant to skills planning by the CHIETA are outlined in this section. Skills interventions planned for the period covered by this SSP update will aim to address the skills development needs of the Chemical Sector, and at the same time support the various government policies, plans, strategies, projects and programmes. Annexure H indicates how the CHIETA programmes are linked to various government policies and plans

ANNEXURE H CHIETA’s strategic objectives linked to Government policies and plans

NSDS III Goals CHIETA Strategic

Objectives CHIETA focus HRDSA

New Growth Path

Skills Accord

MTSF National

Priorities

IPAP II and IPAP

2012/13 to

2016/2017

Other Policies and Plans

Establishing a

credible

institutional

mechanism for

skills planning

Establishing a

credible institutional

mechanism for skills

planning within the

Chemical Sector

A credible and well researched SSP,

On line source data WSP-ATR &

data analysis linking with the SSP,

OFO linking and Job Profiling,

Skills audit and skills gap analysis,

Tracking and Tracing of learners,

On line supply side platform

accessible to industry, learners,

FETCs, Providers and HEI’s

Support public HET research

through post-graduate research

and partnerships

Establishing

effective and

efficient planning

capabilities for the

successful

implementation of

the HRD-SA. To

improve South

Africa’s

performance in

areas of teaching,

research,

innovation and the

commercial

application.

To improve SETA

governance and

financial

management as

well as stakeholder

involvement. Align

training to the New

Growth Path and

improve Sector

Skills Plans

Strengthen the skills

and human resource

base

Pursuing African

enhancement and

enhanced

international co-

operation

CHIETA will feed

sector specific

demand and supply

information into

defined

interventions,

particularly in

relation to

pharmaceuticals

(Ketlaphela –

manufacture of APIs

for ARVs), fluorspar

production (new

pilot plant at Necsa),

polypropylene

beneficiation,

renewable

fuels/biofuels and

nuclear.

The following strategies are going to

require accurate and updated skills

demand and supply information on the

Chemical Sector if they are to be

successfully implemented:

Beneficiation strategy

Biofuels strategy

The Integrated Resource Plan

The CHIETA is already engaging

through the Petroleum subsector on

the skills development implications of

the implementation of Project

Mthombo (SIP), and more work will

be done around the other Energy SIPs.

Demand and supply information is

already being fed into CHIETA’s

engagement with rural FETs in

support of the Integrated and

Sustainable Rural Development

Strategy (IRDS)

Increasing

access to

occupationally-

directed

Increasing access to

occupationally-

directed

programmes within

Development of priority middle

level skills (learnerships, artisan

development, internships) and high

level priority skills (bursaries,

We will urgently

overcome the

shortages in the

supply of people

with the priority

Expanding the level

of training using

existing facilities

more fully.

Speeding up growth

and transforming

the economy to

create decent work

and sustainable

Most of the cluster

programmes

relevant to the

Chemical Sector

identified in IPAP II

The occupation related skills needs of

key SIP projects are already guiding

CHIETA’s partnerships with FET and

HE institutions.

155



New Growth Path

Skills Accord

MTSF National

Priorities

IPAP II and IPAP

2012/13 to

2016/2017


programmes the Chemical Sector internships, graduate placement),

Support of ISOEs

skills needed for

the successful

implementation of

current strategies

to achieve

accelerated

economic growth

livelihoods

Massive

programme to build

economic and

social infrastructure

Strengthen the

skills and human

resource base

require increased

levels of medium

and high

occupationally

located skills

Promoting the

growth of a

public FET

college system

that is

responsive to

sector, local,

regional and

national skills

needs and

priorities

Promoting the

growth of a public

FET college system

that is responsive to

Chemical Sector,

local, regional and

national skills needs

and priorities

Expand cooperation and

partnerships with public FET’s,

Expand CHIETA presence at FETs,

Support workplace experiential

leaning of FET students,

Support FET lecturer and

management capacity building

We will ensure that

the public sector

has the capability

to meet the

strategic priorities

of the South African

Developmental

State.

To make internship

and placement

opportunities

available within

workplaces.

Massive

programme to

build economic and

social

Infrastructure

Strengthen the

skills and human

resource base

Ensuring that FET

Colleges produce

the right numbers

of people with the

right skills is a key

underpinning

imperative for the

implementation of

all IPAP II projects

Partnerships are already in place with

a number of FET Colleges to enhance

their capability to deliver the skills

required for a number of important

economic development strategies. In

support of the IRDS, there is a specific

focus on colleges in rural areas.

Addressing the

low level of

youth and

adult language

and numeracy

skills to enable

additional

training

Addressing the low

level of youth and

adult language and

numeracy skills to

enable additional

training within the

Chemical Sector

Support ABET and FLC,

Support ‘Second chance’ matric

Support bridging programmes with

regard to maths and science

particularly

To accelerate the

implementation of

training

programmes for the

youth which are

focused on

employment

creation.

Improving the role

and performance of

FET Colleges. All

constituencies must

support the new

focus on FET

Colleges and on

ABET.

Strengthen the

skills and human

resource base

Most of the cluster

programmes

relevant to the

Chemical Sector

identified in IPAP II

require increased

levels of medium

and high skills,

which are

dependent on

improving workers’

ability to access

The development of an ‘innovation

economy’ outlined in the NDP is

dependent on a dramatic raising of

basic education levels amongst the

South African workforce

156



New Growth Path

Skills Accord

MTSF National

Priorities

IPAP II and IPAP

2012/13 to

2016/2017


additional training.

Encouraging

better use of

workplace-

based skills

development

Encouraging better

use of workplace-

based skills

development within

the Chemical Sector

Promote increased participation in

the levy-grant system including

WSP/ATR-mandatory grants and

PIVOTAL programmes

To ensure that skills

development

planning is credible,

integrated,

coordinated and

responsive to social

and economic

demands

To improve the

funding of training

and the use of

funds available for

training and

incentives on

companies to train

Speeding up growth

and transforming

the economy to

create decent work

and sustainable

livelihoods

Strengthen the

skills and human

resource base

The new B-BBEE Codes contain

specific provisions around workplace

training

Encouraging

and supporting

cooperatives,

small

enterprises,

worker-

initiated, NGO

and

community

training

initiatives

Encouraging and

supporting

cooperatives, small

enterprises, worker-

initiated, NGO and

community training

initiatives within

the Chemical Sector

Quality partnerships established to

support relevant training

ofcooperatives, small enterprises,

worker-initiated, NGO and

community training initiatives

within the Chemical Sector

We will urgently

implement skills

development

programmes that

are purposefully

aimed at equipping

recipients/ citizens

with requisite skills

to overcome

related scourges of

poverty and

unemployment.

Speeding up growth

and transforming

the economy to

create decent work

and sustainable

livelihoods

Strengthen the

skills and human

resource base

CHIETA’s on-going research with DTI

around co-operative support has a

specific element looking at support to

emerging co-ops in more rural areas,

in support of the IRDS.

Increasing

public sector

capacity for

improved

service

delivery and

supporting the

building of a

developmental

Increasing public

sector capacity for

improved service

delivery and

supporting the

building of a

developmental state

Through partnerships with relevant

government departments (and

SETAs where appropriate)

interventions will be supported to

build public sector capacity

We will ensure

improved universal

access to quality

basic education and

schooling (up to

Grade 12)

outcomes for the

poor.

To improve the role

and performance of

FET Colleges

Building a

developmental

state including

improvement of

public services and

strengthening

democratic

institutions

Building a

developmental

state including

improvement of

public services and

strengthening

democratic

institutions

157



New Growth Path

Skills Accord

MTSF National

Priorities

IPAP II and IPAP

2012/13 to

2016/2017


state

Building career

and vocational

guidance

Building career and

vocational guidance

with specific

reference to

occupations within

the Chemical Sector

To improve the emphasis on

CHIETA career guidance and

vocational guidance including with

regard to maths and science,

Careers mapped to chemical

related qualifications to promote

greater mobility and progression

We will ensure that

young people have

access to education

and training that

enhances

opportunities and

increases their

chances of success

in further

vocational training

and sustainable

employment.

Strengthen the

skills and human

resource base

N/A Supporting MTSF

priorities

Support targeted projects with the

relevant government and other

partners

Strengthen the

skills and human

resource base in

relation to priority

areas

N/A Administration Ensure effective functioning of the

CHIETA

A strong SETA is

able to deliver on

its mandate

effectively

To improve SETA

governance and

financial

management as

well as stakeholder

Improvement of

public services and

strengthening

democratic

158



New Growth Path

Skills Accord

MTSF National

Priorities

IPAP II and IPAP

2012/13 to

2016/2017


involvement. institutions

159

ANNEXURE I CHIETA FET programme approval and accreditation

FET college Province DG Interventions DG Strategic Projects

(2013 - 2014)

Accredited providers of off the job practical:

Designated Trades

DTTC: Designated

Trades

Qualification / Programme (NQF)

Planned Programmes

Coastal FET College: Durban City Campus

KZN

Electrical Engineering Engineering and Related Design

Electrician Turner

Coastal FET College: Swinton Campus

Boilermaker Motor Mechanic Turner

Gert Sibande FET college

MP Electrical Engineering Learnerships

Chemical Electrician Trade Certificate NCV Level 4: Engineering FETC Learnership Engineering

Completion of current programme

Northlink FET College: Belhar Campus

WC

Instrument Mechanician NC - Boilermaking Level 2 NC - Fitting Level 2 NC - Welding Level 2 Electrician Fitter-Welder Electrical Engineering Engineering and Related Design Other (Management) Other (Programme

Infrastructure for Instrument Mechanicians, Millwrights and Mechatronics Facility The establishment of an instrumentation laboratory for the training of technicians is the first of its kind at an FET college in the Western Cape. The project was the result of a need identified at the Chevron Refinery in Cape Town. The laboratory will serve the petro-chemical refineries

Electrician Electrician Completion of current programme

160

based on 6 Unit Standards)

and the pharmaceutical sector in the Western Cape.

Northlink FET College: Bellville Campus

Boilermaker Welder Diesel Mechanic Motor Mechanic

Boilermaker Welder Diesel Mechanic Motor Mechanic

Northlink FET College: Wingfield Campus

Fitter Turner

Fitter Turner

Port Elizabeth FET College

EC

Electrician Fitter Turner Welder

Sedibeng Training Centre / Sedibeng FET College

GP

Boilermaker* Fitter* Rigger* Welder* Turner* Electrician*

161

College of Cape Town: Althone Campus

CPT

Electrician Other (Fitter) Other (Upskilling of Technical Academic Staff) Welder Turner Other (ELECTRICAL SKILLS TRAINING LEVEL 1-3) Engineering and Related Design Electrical Engineering Engineering and Related Design

Motor Mechanic

Motor Mechanic

College of Cape Town: Pinelands Campus

Electrician Electrician

College of Cape Town: Thortone Campus

Fitter Turner Welder

Fitter Turner Welder

East Cape Midlands FET College: Charles Goodyear Campus

EC

Fitter Welder Turner Motor Mechanic

Welder

Newcastle Training Centre (Majuba FET College)

KZN

Other (Various) Other (RPL) Other (WIL)

Boilermaker Electrician Fitter Instrument Mechanician Rigger Turner Welder

Boilermaker Electrician Fitter Instrument Mechanician Rigger Turner Welder

162

Umfolozi FET College: Richards Bay

KZN

Electrician Fitter and Turner Welder Electrical Engineering Engineering and Related Design

Learner Maths, Science & English upgrade

Electrician Fitter Welder

Electrician

Trade Certificate NCV Level 4: Engineering FETC Learnership Engineering Maths & Science NSC

False Bay College WC

Other (Management) NC - Boilermaking Level 2 NC - Welding Level 2 Other (Mechanical Engineering NQF 2) Other (Skills Programmes - Installations) Other (CMBT fitting and turning level 1-3) Other (CBMT Electrician 2-3)

Electrician Fitter Turner Welder

Trade Certificate NCV Level 4: Engineering Practical CBMT Certificate

Tshwane South College for FET

GP

Boilermaker Electrician Fitter Instrument Mechanician Turner

West Coast FET College: Atlantis Campus WC

Fitter and Turner Welder Other (Project Management)

Fitter

West Coast FET College: Vredenburg

Welder

163

Campus

Esayidi Further Education and Training College

KZN

Occupational Directed Education and Training Practitioner Level 4 Welder Engineering and Related Design

Establishment and training of 10 rural cooperatives within the Chemical Sector for the Ugu and Sisonke Districts

Registered and functional cooperatives

Flavius Mareka FET College

FS Engineering and Related Design

Vuselela FET College

NW

Civil Engineering and Construction Electrical Engineering Engineering and Related Design

Maluti FET College

FS

Civil Engineering and Construction Electrical Engineering Engineering and Related Design

Ehlanzeni FET College

MP Other (MANCOSA)

Internships, forging partnerships between the Public FET College with local industry resulting in increased capacity to meet industry needs, and providing platforms for young people to obtain additional vocational

Workplace Exposure

164

skills and work experience, entering the labour market with marketable skills, and obtain employment

WESTERN COLLEGE FOR FET

GP Engineering and Related Design

NORTHERN CAPE RURAL FET COLLEGE

NC Other (Engineering) Other (Management)

Maths and Science

Boland College

WC

Maths and Science bridging programme to enter artisan programmes and assistance of matric learners to obtain university entrance

Maths & Science NSC

Elangeni FET College

KZN

Learnerships - Welding, Electrical Engineering and Refrigeration, and FET workplacement

Trade Certificate NCV Level 4: Engineering

165

ANNEXURE J CHIETA University and UoT Partnerships

Name of University / UOT Province Focus Planned Programmes

Gauteng and Central

1. University of the Witwatersrand (Wits)

Gauteng

WITS / SAPIA Department of Energy & CHIETA Partnership

Continuation and expansion of programme

Bsc. Chemical Engineering and Msc. Petroleum Engineering

WITS Business School- Management Advancement Programme, National Diploma in Management and Transformational Framework (BBBEE codes) for learners from Chemical Sector companies.

Support Wits Real Centre Masters, Doctorates, and Post Doctorate graduates in core labour market and TVET themed research

Maths and Science teacher capacity building in Limpopo Province

Provide education and skills development at High Education level for M.Sc. Chem Eng. in the field of Petroleum, Oil and Gas Engineering at NQF 8, and develop 121 new and practicing managers in the two key CHIETA sub sectors (Oil and Gas; Pharmaceuticals)

2. University of South Africa (UNISA)

Gauteng Workplace Experience for Chemical Engineering Students - School of Engineering Dept.

Continuation of programme

3. University of Johannesburg (UJ) Gauteng Trade Union Learning Practitioner: customised capacity building programme aimed at capacity building trade unionists for skills development facilitation.

Under development

166

4. University of Limpopo Limpopo

Infrastructure development to build a University Instrument Laboratory and purchase a mobile Pharmaceutical Laboratory and Learner support (Maths and Science for rural schools). Transformational Leadership for Managers in FET Colleges Maths and Science support to rural learners through the rural support outreach programme

Continuation of programme

5. University of the Free State (UFS)

Free State Maths and Science support to rural learners through the rural support outreach programme

Continuation of project

6. Tshwane University of Technology (TUT)

Gauteng

7. University of Pretoria (UP) Gauteng Toxicology

Western Cape

1. University of the Western Cape Western Cape

Maths and Science Tutorial Programme for grade10,11&12

Completion of current programmes

Building the University's capacity to offer career and Vocational Guidance to school learners in outreach projects

Retaining Undergraduate Student to Graduation

Facilitating Access to Honours Studies in Scarce Skills Areas

Support Masters graduates in TVET enterprise case studies

Promote postgraduate study as a critical step in developing a national research and innovation ethos, and securing a confident and competent cohort of learners equipped to pursue post-school study in Mathematics and Science related fields

2. Cape Peninsula University of Western Cape Workplace experience Completion of current

167

Technology (CPUT) Upgrading of Industry Mentors to assist Experiential Learners at the Workplace

programme

Experiential Learning for ND Chemical Engineering (NQF 6) & National Diploma Analytical Chemistry(NQF 6)

Maths and Science support to rural learners through the rural support outreach programme and creation of training opportunities for workplace experience internships

3. University of Cape Town (UCT) Western Cape IPAP lab

Kwa Zulu Natal

1. Durban University of Technology (DUT)

Kwa Zulu Natal

CHIETA representation on Chemistry Advisory Board

Continuation of programmes Workplace experience in Analytical, Chemical, Industrial, Electrical, and Mechanical Engineering, as well as Biotechnology.

2. Mangosothu University of Technology (MUT)

Kwa Zulu Natal

A Chemical Technology Station has been established at Mangosuthu University of Technology (MUT) in Durban which is pioneering expertise in processing of chemical products for chemical engineering students for example, soap and detergent-making. CHIETA has awarded MUT a Discretionary Grant and students have been given learnership grants and workplace experience required to obtain their qualification. Students have also been exposed to real workplaces in the industry in the area. Their processes also encourage SMME development so that possible business start-ups become a reality.

Completed

SME Co-operative Development, Mentorship programme, Business Management and Training for 10 rural co-ops.

168

3. University of Kwa Zulu Natal (UKZN)

Kwa Zulu Natal Shop steward training in occupational health and safety Completed

Port Elizabeth

1. Nelson Mandela Metropolitan University (NMMU)

Port Elizabeth

With DEDAT (Department of Economic Development and Tourism), support Masters, Doctorates and Post Doctorate graduates in the Technical Evaluation and Socio-Economic Analyses of Shale Gas in the Eastern Cape

CIPSET - Research

Innovention (Bursaries via NSFAS)

Eastern Cape

1. Rhodes University Eastern Cape Support Masters graduates in the Chemical sector and green skills Continuation of programme

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