Skills Development Strategy,

1
Skills Development Strategy, Presentation by
Adrienne Bird, Chief Director Employment and
Skills Development Services, Department of
Labour, 26 October 1999.
2
SKILLS DEVELOPMENT ACT - PURPOSE

• To improve the quality of life of workers, their
• prospects of work and labour mobility
• To improve productivity in the workplace and the
• competitiveness of employers
• To promote self-employment
• To improve the delivery of social services
• To increase the levels of investment in education
  and
• training in the labour market and to improve the
  return
• on that investment

3
SKILLS DEVELOPMENT ACT - INSTITUTIONS

• Minister of Labour
• Director General Labour Accounting Officer
• National Skills Authority (NSA)
• Sector Education and Training Authorities (SETAs)
• Department of Labour Programme Employment and
  Skills
• Development Services (Directorate Skills
  Development
• Unit, Funding, National Skills Authority
  Secretariat,
• Employment Services and Indlela/COTT)

4
FUNCTIONS OF THE NATIONAL SKILLS AUTHORITY

• ADVISE MINISTER ON
• National SD policy and strategy
• Implementation of strategy
• Allocation of subsidies from NSF
• LIAISON WITH SETAS
• REPORT TO MINISTER ON
• IMPLEMENTATION OF STRATEGY
• CONDUCT INVESTIGATIONS

5
COMPOSITION OF THE NATIONAL SKILLS AUTHORITY

1. Chairperson
2. Executive Officer
3. Organised business (BSA and Nafcoc)
4. Organised labour (Cosatu, Nactu and Fedusa)
5. Government departments (Labour, Education, DPSA,
   DTI, DACST)
6. Community (Youth, Women, People with
   disabilities, Rural, Civic)
7. Representatives from education and training
   providers (higher, further, ABET and private)

6

NATIONAL SKILLS AUTHORITY

• NSA established on 12 April 1999
• Chairperson not yet appointed, two acting
  co-chairpersons from
• Labour and Business
• Mr. Sam Morotoba Executive Officer, National
  Skills
• Authority
• 2 NSA meetings, 1 special NSA and 3 EXCO
  meetings
• were held this year

7
NSA POLICY ADVICE TO MINISTER TO DATE

• Critical path for the implementation of the
  Skills Development Act
• Demarcation of Sector Education and Training
  Authorities
• Publication of Government Gazette on 7
  September 1999
• Gazette Number 20442
• Grant disbursement to employers by a SETA or
  chamber
• Regulation Number R.1231
• Gazette Number 20552 dated 15 October 1999
• Published for public comment, comment to be
  received on
• 15 November 1999, NSA to consider on 18
  November 1999

8

CRIRICAL PATH APPROVED BY NSA
30 September 1999 Letters of intent from
SETAs 12 November 1999 Submission of
constitutions and business plans from
SETAs 4 January 2000 Registration of
SETAs 31 March 2000 Dissolution of Industry
Training Boards 1 April 2000 New SETAs to be
operational 1 April 2000 Date for first
calculation of levy 31 July 2000 First Sector
Skills Plans November 2000 First National
Skills Development Strategy Conference
9
SETA DEMARCATION

• Accounting and other Financial services
• Banking
• Chemical and Allied Industries
• Clothing, Textiles, Leather and Footwear
• Construction
• Defence
• Education, Training and Development Practices
• Energy
• Food
• Forestry, Furniture, Pulp Paper Board, and Wood
  Products
• Health and Welfare
• Information Systems (IT), Electronics and
  Telecommunication Technologies
• Insurance

10
SETA DEMARCATION (continue)

• Local Government, Water and Related Services
• Media, Publishing, Printing and Packaging
• Mining and Minerals
• Mining Engineering, Plastics,Motor Retail, Auto
  Manufactures and New Tyre and Rubber
• Personal Care
• Police, Justice, Security and Correctional
  Services
• Primary Agriculture
• Public Sector
• Secondary Agriculture
• Services
• Sports, Arts, Culture and Entertainment
• Tourism and Hospitality
• Transport
• Wholesale and Retail

11
FUNCTIONS OF SETAs

• Develop and implement / facilitate implementation
  of
• Sector Skills Plans and Workplace Skills Plans
  (by means of
• Skills Development grants)
• Learnerships
• Education and Training Quality Assurance function
• Liaison with Employment Services, the NSA and
  provinces
• Promotion and marketing

12
COMPOSITION OF SETAs

1. Organised employers (including smes)
2. Organised labour
3. Relevant government departments
4. Relevant professional bodies (optional)
5. Representatives from bargaining councils
   (optional)

13
SKILLS DEVELOPMENT LEVY GRANT SYSTEM
Distribution of levies paid to Commissioner (? 6
week cycle) (Section 8)

• SARS
• Transfers levies to NRF
• Transfers information to DG
• employer names in each SETA
• levies collected from each employer

National Revenue Fund Levies are earmarked DoL
budget item Paymaster General transfers levies
to SETAs NSF based on information from SARS
after approval by DG

• Department of Labour
• DG responsible for calculating levy
• allocations authorising transfer by
• Paymaster General
• 20 plus revenue where no SETA, for
• NSF
• 80 for each SETA

Employer
NSF Up to 2 of levies paid to SARS to cover
collection costs
SETA
80
20
14
USE OF 0,5 LEVY 1 APRIL 2000 31 MARCH 2001
(PROPOSED)
20 to be deducted and paid to National Skills
Fund At least 50 to be returned to employers
and grants At most 10 for SETA development (eg.
Design of learnerships) At most 20 of SETA
administration (to drop to 10 in year 2)
15
GRANTS FROM SETAs TO EMPLOYERS IN YEAR ONE
(PROPOSED)
Assuming 50 to employers Grant A 15 -
Employers submit the name of a Skills
Development Facilitator Grant B 10
- Employers submit a Workplace Skills Plan Grant
C 20 - Employers submit a report of
implementation of plan Grant D 5 -
Employers address priorities identified by
sector
16
NATIONAL SKILLS FUND (PROPOSED)
SMEs Incentive-2
COMPANIES/PROVIDERS/LEARNERS
17
PILOT PROJECTS TO BE SUPPORTED BY THE NSF
Learnerships Hospitality (Business
Trust) Agriculture (Eastern Cape, KZN
and Northern Province) Arts and crafts
(DACST) Etc. Skills Programmes Housing
(Public Works) SMEs (Phase 2
Danida) Spatial Development Initiatives Lebombo,
Wild Coast, Coega Industry policy Clothing and
Textile (DTI) Social Plan Mooi River (KZN
Economic Council)
18
EUROPEAN UNION IMPLEMENTATION SUPPORT
Labour Market Skills Development
Programme 46million Euros R280 million Six
projects Project 1 Capacity of Programme
ESDS Project 2 Strategic planning and
information systems Project 3 Learnerships and
skills programmes Project 4 In-service
training (for those employed) Project 5 SETAs
and NSA Project 6 Funding levy/grant and NSF
19
CAPACITY BUILDING
Quality process
Democratic processes
Project management
Generic Operations management
Strategic thinking
Communication
Information Processing
Elective
Higher degree Level 7/8
B. Degree in Org. Leadership
National Diploma in Organisation Management Level
5
National Certificate in Organisation Administratio
n Level 5
National Certificate in Workplace Skills Level 4
20

• DEPARMENT OF LABOUR CHIEF DIRECTORATE
• EMPLOYMENT AND SKILLS DEVELOPMENT SERVICES
• The Department of Labour Employment and Skills
  Development
• Services wishes to develop an education and
  training system that will
• develop the capacity of its staff and social
  partners to implement
• the Skills Development Strategy
• result in credits and qualifications for a
  proposed new workplace-
• based set of qualifications
• provide learning and learner support on national
  basis
• You are invited to tender as a individual service
  provider or as a co-
• ordinating body for one of the following areas of
  learning
• Generic Management
• Information processing and knowledge management
• Communication and advocacy
• Systemic and strategic thinking particularly in
  labour market issues,

21
BI-LATERAL SUPPORT FROM OTHER DONORS
German Government (GTZ) Irish Aid The
Netherlands Sweden / Norway / Switzerland Austra
lian government / AusAid Korean
government American government / USAid UK
government
22
The Minister of Labour
The National Skills Authority
The National Skills Strategy Steering Committee
The PMU
7
1
2
5
4
3
6
9
11
10
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Public/ Private Partnerships established
Institu-tional capacity
In-service training
SDS Capacity Building
Capacity of DoL
Strategic Info System
Learner -ships
Funding systems
ETQAs
Designated Groups
LABOUR MARKET SKILLS DEVELOPMENT PROGRAMME
FUNDED BY THE EU
23
PROVISIONAL OVIs (continue)

• Project 1
• At least 70 of plus minus 544 staff members
  have improved
• their levels of competence / qualifications by
  at least 1 level
• by end of year 3
• At least 60 have improved staff performance
  appraisals

24
PROVISIONAL OVIs (continue)

• PROJECT 2
• Data standards committee established and first
  session
• held by 31 October 1999
• Draft data dictionary developed by 15 December
  1999
• Identification of data sets relevant for
  provincial, sector
• and national skills development planning by 15
  February 2000
• Sources of data elements defined and data
  provision agreements
• negotiated and signed by 31 March 2000
• Hardware and soft ware needs defined by 31 May
  2000 and
• tender document prepared
• Design, test and implement software used for
  SDIS by
• 31 December 2000

25
PROVISIONAL OVIs

• PROJECT 3
• Provincial workshops held
• Decentralised tasks identified and agreed upon
• by DoL provincial offices
• Job descriptions designed
• Staff appointment / redeployed
• Training Materials developed
• Staff development support system established

26
PROVISIONAL OVIs (continue)

• PROJECT 6
• Financial management reporting formats
  developed
• by March 2000
• NSF incentive implementation plan by October
  2000
• Window funding incentives manual by October
  2000
• NSF financial recommendations on budgeting
  process for
• window incentives by October 2000
• Computer specification for NSF disbursement by
  March
• 2000
• NSF skills programme marketing document by
  February
• 2000
• 90 of incentive windows utilised by the end of
  the year

27
MARKETING STRATEGY
Marketing strategy is being designed to be
designed by the end of 1999 and implemented from
2000.