Services SETA Presentation toServices SETA Presentation to The Portfolio Committee on Labour The Portfolio Committee on Labour

23 August 2005 23 August 2005

Introduction by CEO – Ivor Blumenthal

Introduction of team attending etc.

Framework of presentation

Brief Service SETA organisational overview

Brief sector overview

Highs and lows of SSETA activities for 2004/5 year

Report on funds received and disbursed for 2004/5 year

SSETA contribution to National objectives of Growth, Employment and Poverty alleviation

Opportunities and challenges for SSETA in implementing NSDS 2005 – 2010

Q&A session with portfolio committee

Brief overview of SETA

Male female Male FemaleCouncil incl.audit committee 49 11 6 16 15 1EXCO 15 3 0 8 4

Board member numbers and equity profile

WhiteDisabledDescription Total

Black

Male female Male FemaleExecutive management 11 3 3 3 2Senior management 17 3 8 0 6Staff incl middle management 127 21 89 0 15 2

Total 155 27 100 3 23 2

Disabled

Management & staff numbers and equity profile

Black WhiteTotalDescription

Cont… Brief overview of SETA

List of standing committees supporting governance and management structures include :-

ETQA & Learnership committee

Research committee

Audit committee

Remuneration committee

Conference committee

Employment Equity committee

Regional advisory boards currently established in 5 provinces – subject to change to 4 SIC code committees in each province mirroring the new 4 chamber structure

Brief overview of Sector

107,588 employers on database with projected 10% continuing to pay levies after 1st August 2005 expanded threshold introduction

New employer base characterised by 87% SMEs and 13% LMEs

9 chambers re-structured & consolidated into 4 new chambers and 23 industries

Business Services Chamber

Management Services Chamber

Commercial & Industrial Services Chamber

Client Care Services Chamber

Largely trans-sectoral (13 of 23 industries specifically in 2 chambers) i.e. New Business & Management chambers

83% of employers reside in 3 largest provinces of Gauteng, Western Cape and Kwa Zulu Natal

New governance structure focusing on regional SIC code input through establishment of regional SIC code committees.

Black provider forum establishment

Highlights of SSETA activities for last financial year

Re-establishment of SSETA for period April 2005 to March 2010

Exceeding GDS targets by over 300%

Over 600 SDFs trained

23 learnerships registered with SAQA totaling 54 to date

ISO accreditation of SSETA as an organisation

Piloting of School pre-learnership project

Establishment of the African Marketing Confederation & African hairdressing confederation

Partnership agreement with the Dti

Signing of international partner agreements regarding reciprocity and certification frameworks

Roll out of Amasondi Esibindi disability project to other provinces

Development and registration of the small business qualification for SMEs

Successful implementation of NSF funded Domestic Worker skills development project

Cont… Highlights of SSETA activities for last financial year

Employee assistance programme roll out in response to a holistic view to skills development linked to productivity focus of NSDS 2000 - 2005

Introduction of video conferencing to reduce flight costs

Exceeding disability targets by 2% on learnership enrolments for 2004/5 period

Support for the formation of an Inter-sectoral Disability Forum and facilitation of a PESTEL workshop for the forum

Accreditation of 1089 providers

2423 providers assisted through accreditation workshops

26 Strategic planning (PESTEL) workshops conducted at an industry and provincial level with key informants and captains of industry

Completion of 8 research projects to inform development of new Sector Skills Plan

Participation through the NSA retreat in the development of NSDS 2005 - 2010

Lowlights of SSETA activities for last financial year

learner apathy

SDF fraud

Provider apathy

Employer fraud

Learner fraud

ETQA over commitment

Biased media

Professional & band ETQA conflict with vocational ETQAs

Report on funds received and disbursements for 2004/5 year

REVENUE R'000Skills development levy income 396,542Skills development penalties and interest 5,990NSF - Domestic worker project income 75,043Investment income 5,260Other income 3,004

Total Revenue 458,839

EXPENDITUREEmployer grants and project expenses (465,784)Administration expenses (42,863)NSFDomestic worker project expenses (75,043)

Total Expenditure (583,690)

Net deficit for the year (97,851)

SETA contribution to National objectives of Growth, Employment and Poverty alleviation

800 learners to receive NVC qualification at NQF level 4

6 regional offices established in 6 provinces supporting skills development on a national basis

Contact centre learnerships contribute to foreign direct investment of R250 million and 200 sustainable jobs

Partnership with FET sector - piloting of PSLP – 54 schools in 9 provinces - 3000 learners – enter labour market in 2009

Successful implementation of DWSDP having met all targets

15 336 new business registered in the sector over 2004/5 year

Graduate intern programme with over 30 learners placed permanently

Venture creation implemented with disabled communities and rural community where learnership grant itself exceeded basic income of individuals.

11 EAP toolkits developed and distributed in English, Zulu and Tswana & disseminated to 3976 candidates

55 039 learners completed structured learning – 4856 high level occupations, 24 447 intermediate level occupations and 25 736 at entry level occupational levels

Opportunities facing SSETA in implementing NSDS 2005 - 2010

A more targeted approach to skills development with focus on scarce and critical skills - Concept of introducing a dedicated service excellence qualification

Collaboration and strategic partnerships at National, provincial and international levels including NEPAD secretariat

Fostering closer links with industry through training of sector specialists through collaboration with industry professional bodies and associations

More focused support and communication to large and medium firms in the sector towards skills development

Development of sector wide empowerment charter and scorecard

Integration of sector BEE, EE and skills development with customised programmes for SDFs

Provision of learning programmes to NGO and non levy paying enterprises

Venture creation and establishment of entrepreneur support base of providers, mentors, etc

Cont… Opportunities facing SSETA in implementing NSDS 2005 - 2010

Strengthen management and governance structures through CPD

Pilot new learnership enrolment with DoL provincial offices with involvement of public DOE providers

Create over 15 000 permanent sustainable jobs

Link learnerships and placement within broader EPWP framework through partnership agreements linked to demand side strategies

Create provincial quality assurance and Excellence structure to monitor providers with regard to ISOE

Challenges facing SSETA in implementing NSDS 2005 - 2010

Providing skills development support and initiatives to approximately 100 000 non levy paying employers in sector

Inclusion of EE criteria for large and medium firms in the sector for 10% mandatory grant component

Improved board profile with regards to EE

Learnership funding specifically with drop in income due to tax amendments

Organised labour representation on regional and chamber committees and boards

Mandated representation from organised business

Approval for ETQA to charge for accreditation

Fast tracking certification partners for all industries

Disability target and profile in the sector

Gainful employment amongst disabled learners

Annexure 1. Sector Scarce skillsAnnexure 1. Sector Scarce skills 1. Management & leadership skills

2. Team leader & supervisory skills

3. Project management

4. Call centre operators

5. Plant operators (e.g. bulldozers, graders etc)

6. Marketing skills ( incl. brand & research management )

7. Event management skills (2010 world-cup)

8. Property related skills ( commercial & residential)

9. Embalming skills

10. Hairdressing multi skills ( Caucasian & Afro )

11. Business related skills ( QMS, admin, finance, IT )

Annexure 2. Generic sector critical skillsAnnexure 2. Generic sector critical skills critical thinking / problem solvingCommunication and languageNumeracyLiteracyComputer LiteracyBusiness etiquetteCustomer serviceDiversity interactionGeneral life skills (finance, banking, writing)Work ethic

Culture of learning and service provisionOganisational ethos

Team WorkQuality systems and proceduresHealth & SafetyPersonal PresentationInduction to serviceAnalytical & InterpretiveReport Writing

Relationship buildingPeople ManagementABET

Corporate GovernanceNegotiation SkillsMulti-culturismDiplomacy

Project Management BasicsInformation Management

Service DeliveryMarketing strategiesVision, strategy, innovationAdministration and Finance

Annexure 3. Projected Levy Paying companies by Annexure 3. Projected Levy Paying companies by company size and Provincecompany size and Province

PROVINCE_CODE COMPANIES_SMALL

COMPANIES_MEDIUM

COMPANIES_LARGE

COMPANIES_UNKNOWN

TOTAL % per Province

Total Eastern Cape 251 38 20 0 309 3.8Total Free State 151 24 9 0 184 2.3Total Gauteng 4136 354 206 4 4700 58.3Total Kwa Zulu Natal 634 84 62 0 780 9.7Total Mpumalanga 521 53 33 1 608 7.5Total Northern Cape 39 5 1 0 45 0.6Total Northern Province 89 10 6 0 105 1.3Total North West 110 15 6 0 131 1.6Total Western Cape 1042 94 53 1 1190 14.8Total Unknown 8 0 0 1 9 0.1Total members per Province 6981 677 396 7 8061 100

% per Company Size 86.6 8.4 4.9 0.1