Ivor Blumenthal

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• Presented by
• Ivor Blumenthal
• CEO

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The Beginning

• Where we started
• Established March 2000
• Very diverse sector
• Adopted chamber model
• Needed to be involved in the sector
• No learnerships registered except for
  hairdressing apprenticeships
• Large member base with over 90 SME
• Outdated Database from Dol

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Scarce Skills

• Services SETA is of the opinion that inadequate
  research has been conducted to identify scarce
  skills and will therefore spend the majority of
  2006 in extensive research on the subject

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Our membership base over the years
Year Estimated Membership
2000 20 000
2001 50 000
2002 69 000
2003 80 000
2004 100 000
2005 110 000
Projected membership for 2006 10 000
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Our structure then and now
Old Ten Chamber Model
New Four Chamber Structure
Business Services
Business Services Chamber
Cleaning Services

• Marketing
• Labour recruitment
• Estate agencies

Hiring Services
Management Services Chamber
Labour Recruitment Services

• Business Consulting
• Business Activities
• Associations
• Project Management
• Property Management

Marketing
Personal Care Services
Commercial Industrial Services Chamber
Postal Services

• Postal Services
• General Cleaning
• Hiring services (small)
• Hiring Services (large)

Project Management Services
Client Care Services Chamber
Property Management Services

• Hairdressing
• Beauty
• Nails
• Funeral
• Commercial Services

National Skills Funded Project
Domestic Services
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Size of Companies
SIC CODE BUSINESS SERVICES (1) No of Companies
99055 Call Centre management of people 12
9008 Direct Marketing 108
99056 Event conference Management excluding the operation of convention centers 25
88910 Labour Recruitment provision of staff 821
88130 Marketing Research Public opinion polling 84
9001 Marketing Services 449
99053 Valuers (incl Auctioneers) 48
84203 Estate Agencies 743
SIC CODE MANAGEMENT SERVICES (2) No of Companies
88141 General Consulting (incl management consulting code 99015) 440
9002 Marketing communications (incl Public Relations) 29
88900 Business Services N.E.C. 2209
88000 Other business activities incl Administrative Secretarial 91
99039 Generic Project Management 295
84202 Property management 480
95992 Associations , federations and umbrella bodies, (incl professional bodies) 286
99014 Quality Management related services 114
SIC CODE COMMERCIAL INDUSTRIAL (3) No of Companies
75121 Mail handling and Courier services 39
75110 National Postal activities 19
99002 General Cleaning 384
99035 Miscellaneous item hire ( video , car etc) 179
99052 Truck Plant Hire 187
SIC CODE CLIENT CARE SERVICES (4) No of Companies
99024 Beauty treatment (incl nail, skin and health) 85
99090 Other service activities (incl Commercial services) 726
99030 Funeral related activities 58
99023 Men ladies hairdressing 150
2290 Companies
3944 Companies
808 Companies
1019 Companies
TOTAL 8091
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New SETA Reporting Structure
Chief Executive Officer
Company Secretary Prelini Bennideen
Personal Assistant Zelda le Roux
Senior Chamber Manager Merle Clark
Deputy CEO Treaty Moshoeshoe
Chief Financial Officer Vernon Naidoo
Special projects Manager Meike Wetsch
Levies Grants Manager Isobel Byleveld
Compliance Manager Johan Delport
ETQA Learnerships Manager Marie-Therese Portolan
SSP research Tbc
Learnership Skills Programmes Quality
Development
Business Chamber Karthiga Padayatchi
Finance Charmayne Kok
HR TJ van der Merwe
Learnership Allocation Monitoring Ayanda
Nhlabathi
Customer Service Nicola Bokaba
NSF Co-ordination Tbc
3 Star Yolanda Srp
Procurement Raam Govender
PR Nteseng Lekubu
Management Chamber Sazi Kunene
Learnership Completion Certification Thandi
Mkhize
Provider learnership development Tbc
Facilities Ebrahim Dhaler
IT Yvette Grieb
Commercial Industrial Chamber
SAQA Co-ordination Nozipho Zondo
Regional Board Co-ordinator
Client Care Chamber Leanne Charles
EAP / IIP Nadine Dixon
Provider Learnership Quality Assurance Lerato
Bogoshi
SME Peta Broomberg
Regions Mzwandile Khanya
Chamber Support Manager Sydney Moonsamy
Disability Devilliers Rolihlahla
Accreditation Nonhlanhla Ntshalintshali
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Some of our Achievements for NSDS 1

• 76 large 43 medium sized companies submitted
  WSPs
• 100 levy grants paid back to companies who
  submitted WSPs
• 24 funding windows crested to ensure proper
  allocation of discretionary funds
• 55 Learnerships registered
• 22000 learners in learnership
• 15000 learners in skills programmes
• 881 learners with disabilities on learnerships
• 51884 learnership applications screened
• 441 SDFs trained on one-year programme
• 1800 small business advisors trained
• 95 companies taken through ISO
• 1089 training providers accredited
• Over 7000 requests for accreditation received
• Over 1000 assessors trained
• 50 quality assurance advisors trained
• A nine model SME programme set up for SMEs
• Have commissioned 26 areas of research
• Six regions set up to service our members
• Good technology systems established

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NSF project achievements

• Domestic Worker Project
• Between 800 000 and 1,5 million domestic workers
  in SA
• Awarded R115 million by NSF
• 2428 domestic workers trained and certificated
• 15090 domestic workers on skills programmes
• Over 12000 domestic workers assessed against unit
  standards
• 100 assessors and 300 moderators trained
• Four contact centres established to assist
  domestic workers with gainful employment
• Trained an estimated 2000 domestic workers on HIV
  / AIDS and how to cope with it
• Successfully appointed 18 BEE providers

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NSDS Deliverables
No NSDS Success indicators SETA contribution from 2004 to 2005 SETA contribution from 2000 to March 2005 Comments
1.1 By March 2005, 70 per cent of all workers to have at least a Level One qualifications on the NQF 3291 learners completed training programmes at an elementary level as indicated in annual training reports received by 15 June 2005. Approximately 82 of all learners in the sector have at least an NQF level One qualification 56 202 learners completed training programmes at an elementary level as indicated in annual training reports. 5 469 learners enrolled in NQF level One learnerships of whom 2259 have completed to date Learners completing elementary programmes is not a complete reflection due to the ATR submission date set at 31 July 2005 3 210 Learners enrolled in the Hygiene and Cleaning Dry cleaning and laundry, and commercial cleaning learnerships are due to be certificated later in 2005. DoL performance rating /score for this indicator for SSETA is 100 target achievement
1.2 By March 2005, a minimum of 15 per cent of workers to have embarked on a structured learning programme, of whom at least 50 per cent will have completed their programme satisfactorily 104 124 learners to have embarked on structured learning as per WSP indications. To date 55 039 learners have completed structured learning as per ATR submissions received by 31 March 2005 4 700 learners enrolled in skills programmes of whom 4,521 completed their programmes satisfactorily 437 504 learners to have embarked on structured learning as per WSP indications over 5 years. To date 233 495 learners have completed structured learning as per ATR submissions received by 31 March 2005 15 741 learners enrolled in skills programmes over 5 years of whom 15,261 completed their programmes satisfactorily As per the SETAs feedback meeting with DoL in January 2002 , it was spelt out that a structured learning programmes was to be taken in the context that those people currently indicated for training in the WSPs are on structured learning programmes. Learners completing structured learning is not a complete reflection due to the ATR submission date set at 31 July 2005 DoL performance rating /score for this indicator for SSETA is well above 100 target achievement
1.3 By March 2005, an average of 20 enterprises (to include large, medium and small enterprises) and at least five national government departments, to be committed to, or have achieved the Investors in People Standard 123 enterprises committed to achieve IIP standard of whom 11 where recognised by Minister of Labour as having achieved the standard on 31 March 2005 147 enterprises committed to achieve the standard. 14 enterprises have achieved the IIP standard as at 31 March 2005 since promotion of the standard from April 2003 It must be noted that promotion of the standard has been derailed due to a decision by DoL not to support IIP as the national people standard. The Minister of Labour will approve and announce the national people development standard sometime in 2006. DoL performance rating /score for this indicator for SSETA is well above 100 target achievement
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NSDS Deliverables
No NSDS Success indicators SETA contribution from 2004 to 2005 SETA contribution from 2000 to March 2005 Comments
2.1 By March 2005, at least 75 per cent of enterprises with more than 150 workers are receiving skills development grants and the contributions towards productivity and employer and employee benefits are measured 316 large enterprises received skills development grants. 1309 large enterprises received skills development grants over the 5 years. This equates to approximately 80 of large enterprises receiving skills development grants That the SARS data supplied to the SETA is correct as this has been used as a proxy to determine the number of large sized companies. DoL performance rating /score for this indicator for SSETA is above 100 target achievement
2.2. By March 2005, at least 40 per cent of enterprises employing between 50 and 150 workers are receiving skills development grants and the contributions towards productivity and employer and employee benefits are measured 224 medium enterprises received skills development grants. 801 medium sized enterprises received skills development grants over the 5 years. This equates to approximately 44 of medium enterprises receiving skills development grants That the SARS data supplied to the SETA is correct as this has been used as a proxy to determine the number of medium sized companies DoL performance rating /score for this indicator for SSETA is above 100 target achievement
2.3 By March 2005, Learnerships are available in every sector A further 23 learnerships registered with SAQA 55 learnerships registered with SAQA over the 5 year period. Services SETA target over 5 years was 50 registered learnerships DoL performance rating /score for this indicator for SSETA is well above 100 target achievement
2.4 By March 2005, all government departments assess and report on budgeted expenditure for skills development relevant to Public Service, Sector and Departmental priorities. Not applicable to the sector Not applicable to the sector Not applicable to the sector
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NSDS Deliverables
No NSDS Success indicators SETA contribution from 2004 to 2005 SETA contribution from 2000 to March 2005 Comments
3.1 By March 2005, at least 20 per cent of new and existing registered small businesses to be supported in skills development initiatives and the impact of such support to be measured 11 380 SMEs supported in skills development initiatives A further 1 236 submitted WSPs and 1 560 submitted simplified SME WSPs 890 SMEs supported by external SDF support in submitting WSPs ATRs 19 790 SMEs supported in skills development initiatives over 5 years. 2 565 SMEs supported by mandatory grants and 3 711 supported by simplified WSP/ATR submissions 9000 learners placed in SMEs through learnership participation 2 800 SMEs supported by external SDF support in submitting WSPs and ATRs Provided that pending/new legislation is conducive to ongoing SME support and does not create barriers. SMEs supported in mandatory grants are set to increase due to the ATR submission date set at 31 July 2005 Small business qualification and new venture creation learnerships registered to support , enhance and sustain SME growth in the sector
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NSDS Deliverables
No NSDS Success indicators SETA contribution from 2004 to 2005 SETA contribution from 2000 to March 2005 Comments
4.1 By March 2005, 100 per cent of the NSF apportionment is spent on viable development projects R115 millions was awarded The chamber achieved 40 more than the agreed target 100 of the R115 million apportioned was used. R1 080 was budgeted per learner but R728 per learner was used for development
4.2 By March 2005, the impact of the NSF is measured by project type and duration, including details of placement rates, which shall be at least 70 per cent. 96 achieved on learnerships 100 achieved on skills programmes 2428 learnerships achieved against the agreed figure of 1750 15080 skills programmes against the agreed 10 750 20 PDI providers secured against the 16 agreed to All targets have been over achieved with 100 retention on the learnership programme
5.1 By March 2005, a minimum of 80,000 people under the age of 30 have entered Learnerships 17 270 learners enrolled in learnerships over the 2004/5 year. Growth and development target for SSETA was 4128 learners (SSETA quadrupled this target) 940 learners enrolled in 2001-2002 year. 21 210 learners enrolled in learnerships over the 5 year period. (SETA target was 10,000 over 5 years) DoL performance rating /score for this indicator for Services SETA is well above 100 target achievement
5.2 By March 2005, a minimum of 50 per cent of those who have completed Learnerships are, within six months of completion, employed, in full-time study or further training or are in a social development programme 819 learner completions with 421 placements 808 apprenticeships completed in 2001-2002 year from and enrolment of 940. 1162 completions with 608 placements
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Annual Financials Audit Results

• SDL Income R396,542 million based on 86,521
  member cos registered in the services sector.
• Total Investment Income R5,260 million
• Total revenue R485,839 million
• Total expenses R583,690 million
• Expenses as percent of SDL Income 148
• Net surplus / (deficit) (R97,851 million).
  This deficit was funded by reserves carried
  forward from the previous financial year.
• Total Cash Cash equivalents R90,730
  million. This is equivalent to approximately 2.7
  months of levy income.

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Annual Financials Audit Results
as noted by AG and plans that the SETA has to
rectify the concerns raised. - None

• Qualifications None for the past 4
  consecutive financial years.
• Matters of emphasis - None for the past 4
  consecutive financial years.
• Significant matters None for the past 4
  consecutive financial years.

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Committed Funds and Projects
Commitments of R166,512 million remains at
year-end. These commitments become due and
payable over the following 12 month period upon
delivery by providers/suppliers. 93 of the
commitments relate to learnerships.
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Key Challenges for 2005 - 2006

• Key challenges faced by the SETA in the next
  reporting year
• implementation of the international accounting
  standards in conjunction with GRAP,
• standardization of reporting template currently
  to many templates in circulation i.e. the DoL,
  National Treasury, the ASB, SARB, Stats SA, etc
• Specific issues that the members of the Portfolio
  Committee on Labour should be aware of or be able
  to assist with should be highlighted.
• Assistance with the above challenges.