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Manufacturing, engineering and related services SETA (merSETA) The Importance of the Manufacturing Sector for the SA Economy and the Relationship between merSETA and the FET Sector

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Manufacturing, engineering and

related services SETA

(merSETA)

The Importance of the Manufacturing Sector for the SA Economy and the Relationship between merSETA and the

FET Sector

2

Shaping the Learner…1

Manufacturing in South Africa is dominated by the

following industries:

Automotive – 12%

Chemicals – 5%

ICT and electronics 7%

Agri-processing – 4%

Metals – 8.8%; and

Textiles, clothing and footwear – 1%

3

Shaping the Learner…2

World Economy is in worst recession since 1929;

Since 2010, SA investment/output/trade has dropped from

R46-trillion to R42-trillion in 2012 – World Bank;

More than 1-million jobs lost since global meltdown in 2008;

600 000 graduates unable to find job entry

Shaping the Learner…3

4

But South Africa’s manufacturing sector remains resilient

due to high State infrastructure spend;

Government has budgeted more than R800-billion to

boost our economy;

SETAs and FETCs are crucial to developing a skilled and

capable workforce to support this inclusive growth path.

Shaping the Learner…4

5

Brief History of FETC Sector:

Decline of FETC as a sub-system of the general education

and training system was a product of post-1948 period, rather

than the post-1994 context;

Privatisation of State Owned Companies that were large

training providers of artisans

Result – An artisan development system that saw the

importation of overseas skilled technicians and limited training

for industrial growth.

Shaping the Learner…5

6

Post-1948 excessive funding of universities versus

technical colleges post-1948 and the quite drastic

reduction of funding of technical colleges that resulted in

reduced enrolment in technical colleges;

The developing of a stigma that FETC skills are

considered less than equal to the academic stream due to

many factors.

The FETC Sector

7

Skills are new global currency of the 21st century.

The merSETA manufacturing sector competes on an international

market with multi-national companies

“Without proper investment in skills, people languish on the margins of

society, technological progress does not translate into economic growth,

and countries can no longer compete in an increasingly knowledge-based

global society. (OECD, 2012, p. 10)

State Infrastructure Projects (SIPs) calls for highly skilled people as

these infrastructure calls for specialised skills.

The FETC Sector

8

Assumption that skills by itself will not necessarily lead to national development, but that without skills, the possibility for individual and national development is that much more difficult

The importance of the FET Colleges to national development is described as “….the master key that can alleviate poverty, promote peace, conserve the environment, improve the quality of life for all and help to achieve sustainable development”(Nick Burnett 2008).

“A well-functioning training system can protect against unemployment, especially among the young.

“Periods of economic crisis can, therefore, be an opportunity for countries to examine how well equipped their (further education and training) systems are to deal with change and to innovate

(OECD, 2009

The FETC Sector

9

Far from being the weakest link in education systems, FETC

system is becoming the cornerstone for the transformation of

education and training;

Indeed, the development of skills through FETCs is now one of

the most often-cited priorities by Minister Blade Nzimande as part

of the National Development Plan priorities.

Funding from all sources e.g. Education ,NSF and SETA Levy

grants are used to invest in FET Colleges.

The FETC Sector

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A special mention and salute to Minister Blade Nzimande, who I

believe has done more for the sector than anyone before in the history

of the country (at least in the last 50 years);

The attention provided to the sector, whether it through attention to

increasing artisans or in the implementation of the extensive

turnaround strategy launched in November last year is immeasurable;

Clearly, the importance of the highest level support in the attempt to

re-define the footprint of an education and training sector is

immeasurable, as the Minister has so boldly articulated in the following

objective: “The end-state is to have FET Colleges that will claim their

rightful place”;

In addition, the ongoing commitment to the goal of “We are turning

our FET Colleges into institutions of choice!” is not only articulated in

the discourse but given meaning, the various funding injections

suggests that money is being put to complement the rhetoric.

The FETC Sector

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FET Colleges457 000

Universities810 0000

Previous Policy

The FETC Sector

12

FET

HE (U of Tech)

Universities

New DHET Focus

The FETC Sector…

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Inverted Prism

We need to understand that in the Manufacturing and Engineering

sector we find that for every one engineer we need ±5 technicians, and

for every 5 technicians we need ±15 or more artisans.

We further need to understand that artisans (and or FET students) as

well as technicians (University of Technology students) that now form

the majority of the positions required, require a formal work integrated

learning part to obtain their respective qualifications.

For the above we need workplacesin our industry that are willing and

able to take on these learners.

The FETC Sector…What needs

to be done?

14

PURPOSE:

We need rigorous debate on the nature and purpose of our FET

College system. The question of the purpose of a college needs to be

answered first, before we get to putting who we need in them;

If we are to hold the FET sector to account, we need at the least to

understand and agree nationally about what the FET sector is supposed

to be doing, and what the needs from the manufacturing and

engineering industry are.

The FETC Sector…What needs

to be done?

15

MANAGEMENT AND GOVERNANCE

Industry needs FETC governance to be stable, innovative and in

touch with the world of work.

Reaching out to industry needs and be flexible in offering

relevant skills.

LECTURERS

The current challenge seems to be lecturers with little or no

industry experience.

Theoretical knowledge of a subject makes it difficult to impart

knowledge to learners, and the result is to avoid addressing the

practical part of the subject.

The FETC Sector…What needs

to be done?

16

CURRICULUM

It is important for FETCs to offer curriculum that is relevant to the

world of work.

Curriculum and the implementation thereof should equip the

learner to be ready for work, not just minimal exposure and the bare

minimum of “observation”.

Be prepared to add to the curriculum to address requirements of

industry, without trying to specialize.

Industry would welcome learners that could add value to their

business from day one.

The FETC Sector…What needs

to be done?

17

PROGRAM FUNDING

One of the challenges for FETCs and industry is program funding

from the Department that s aimed at Vocational programmes and

not directly occupational qualifications.

The bulk of the funding from Government is aimed at NC(V)

programs with the aim of developing the learner “holistically” and to

give them the opportunity to enter into higher education.

SETAs are then expected to fill the gap and fund occupational

programs.

The number of learners with vocational programs that have to be

“re-trained” be industry is unaffordable to SETAs and the industry.

The FETC Sector…What needs

to be done?

18

Leadership in FETCs needs to close the gap in partnership with

SETAs;

Leadership must facilitate platforms for dialogue to create more work

placement opportunities;

FETC leadership should get staff to take on additional

responsibilities, including project management, placements and

assisting with the administrative burden;

Given the legacy of downscaling on occupational curriculum at FETs,

relation of trust between FET delivery and industry needs is imperative;

The FETC Sector…What

merSETA is doing to assist?

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merSETA has signed no less that 15 multi-year agreements with

public FETCs to address the following:

Management and governance: MerSETA is co-funding a program

for FETC principals on international bench-marking on best practices

with the British Council

Lecturers: merSETA has signed an agreement with NMMU as well

as CUT to offer lecturers additional skills in Science, Technology,

Engineering and Mathematics (STEM), as well as exposure in industry

to latest technology.

Learners: Agreements to expose learners to additional technology

and workplace experience forms part of most of our agreements

between FETCs and our industry stakeholders.

The FETC Sector…What

merSETA is doing to assist?

20

The agreements with public FETCs also address the following:

Curriculum: Currently four pilot programs are being rolled out where

learners from NC(V) are placed on a pathway to becoming artisans.

It includes recognition of what was covered in the NC(V) program but

adds to it the occupational skills and relevant workplace learning.

merSETA is instrumental in three pilots where a South African “Dual

System” of skills development at FETCs are implemented

The dual system allows institutional training alternated with workplace

learning on a weekly basis.

Conclusion

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Having SETAs and FETCs in one Department is setting the table to

constructive partnerships

The extra investment into FETCs by the Department is positive.

SETAs and FETCs are working closer than ever before.

However, closer links to industry are imperative to ensure uptake of learners

into the world of work.

Program funding should be reviewed.

Curriculum should be reviewed with a clear focus on the world of work.

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THANK YOU.