Skills Development Strategy,

Presentation by Adrienne Bird,

Chief Director: Employment and Skills

Development Services,

Department of Labour,

26 October 1999.
 SKILLS DEVELOPMENT ACT - PURPOSE
i. To improve the quality of life of workers, their
prospects of work and labour mobility

ii. To improve productivity in the workplace and the

competitiveness of employers

iii. To promote self-employment

iv. To improve the delivery of social services

v. To increase the levels of investment in education and

training in the labour market and to improve the return
on that investment
 SKILLS DEVELOPMENT ACT - INSTITUTIONS

i. Minister of Labour

ii. Director General: Labour – Accounting Officer

iii. National Skills Authority (NSA)

iv. Sector Education and Training Authorities (SETAs)

v. Department of Labour: Programme: Employment and

Skills
Development Services (Directorate: Skills Development
Unit, Funding, National Skills Authority Secretariat,
Employment Services and Indlela/COTT)
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
 COMPOSITION OF THE NATIONAL SKILLS AUTHORITY

i. Chairperson

ii. Executive Officer

iii. Organised business (BSA and Nafcoc)

iv. Organised labour (Cosatu, Nactu and Fedusa)

v. Government departments (Labour, Education, DPSA, DTI, DACST)

vi. Community (Youth, Women, People with disabilities, Rural, Civic)

vii. Representatives from education and training providers (higher, further, ABET
and private)
 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
 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
 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
 SETA DEMARCATION

xi. Accounting and other Financial services

xii. Banking
xiii. Chemical and Allied Industries
xiv. Clothing, Textiles, Leather and Footwear
xv. Construction
xvi. Defence
xvii. Education, Training and Development Practices
xviii. Energy
xix. Food
xx. Forestry, Furniture, Pulp & Paper Board, and Wood Products
xxi. Health and Welfare
xxii. Information Systems (IT), Electronics and Telecommunication Technologies
xxiii. Insurance
 SETA DEMARCATION (continue)
xviii. Local Government, Water and Related Services
xix. Media, Publishing, Printing and Packaging
xx. Mining and Minerals
xxi. Mining Engineering, Plastics,Motor Retail, Auto
Manufactures and New Tyre and Rubber
xxii. Personal Care
xxiii. Police, Justice, Security and Correctional Services
xxiv. Primary Agriculture
xxv. Public Sector
xxvi. Secondary Agriculture
xxvii. Services
xxviii. Sports, Arts, Culture and Entertainment
xxix. Tourism and Hospitality
xxx. Transport
xxxi. Wholesale and Retail
 FUNCTIONS OF SETAs

Develop and implement / facilitate implementation of:

i. Sector Skills Plans and Workplace Skills Plans (by means of

Skills Development grants)

ii. Learnerships

iii. Education and Training Quality Assurance function

iv. Liaison with Employment Services, the NSA and provinces

v. Promotion and marketing

 COMPOSITION OF SETAs

i. Organised employers (including sme’s)

ii. Organised labour

iii. Relevant government departments

iv. Relevant professional bodies (optional)

v. Representatives from bargaining councils (optional)

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

SARS
SARS National
NationalRevenue
RevenueFund
Fund
Transfers
Transferslevies
leviestotoNRF Levies
Transfers
NRF Leviesare
areearmarked
earmarkedDoL
DoLbudget
budgetitem
item
Transfers informationtotoDG:
information DG: Paymaster General transfers levies to
Paymaster General transfers levies to
••employer
employernames
namesinineach
eachSETA SETAs
••levies
SETA SETAs&&NSFNSFbased
basedononinformation
information
levies collected from eachemployer
collected from each employer from
from SARS & after approvalby
SARS & after approval byDGDG

Department
Departmentof
ofLabour
Labour
DG
DGresponsible
responsiblefor
forcalculating
calculatinglevy
levy
Employer allocations
allocations & authorising transferby
& authorising transfer by
Paymaster General:
Paymaster General:
••20%
20%plus
plusrevenue
revenuewhere
wherenonoSETA,
SETA,for
for
NSF
NSF
••80%
80%for
foreach
eachSETA
SETA

80% 20% NSF

SETA
SETA Up to 2% of levies paid to
SARS to cover collection costs
 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)

 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

 NATIONAL SKILLS FUND (PROPOSED)

MINISTER

National DG
Skills
Authority National Skills Fund

Unemployed Employment Learnerships

SME’s
Target Social Plan
generation Incentive-5
Incentive-2
Groups Incentive-3
Incentive-4
Incentive-1

DoL PROVINCIAL OFFICE SETA

PROVIDERS
COMPANIES/PROVIDERS/LEARNERS
LEARNERS
 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)

SME’s (Phase 2 Danida)

Spatial Development Initiatives Lebombo, Wild Coast, Coega

Industry policy Clothing and Textile (DTI)

Social Plan Mooi River (KZN Economic

Council)
EUROPEAN UNION IMPLEMENTATION SUPPORT

Labour Market Skills Development Programme

46million Euro’s = 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

 CAPACITY BUILDING
Elective Information Communication Strategic Generic Project Democratic Quality
Processing thinking Operations management processes process
management

Higher degree
Level 7/8
B. Degree in
Org.
Leadership

National
Diploma in
Organisation
Management
Level 5
National
Certificate in
Organisation
Administration
Level 5

National
Certificate in
Workplace
Skills Level 4
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
1. Generic Management
2. Information processing and knowledge management
3. Communication and advocacy
4. Systemic and strategic thinking particularly in labour market issues,
and vocational education and training
5. Project management
6. Management of Partnerships
7. Quality processes
8. Electives (role specific requirements)
9. Post-graduate research

Further information and the tender documents are available from:

Jeanne.olivier@labour.gov.za

A briefing session will be held on 8 November 1999

BI-LATERAL SUPPORT FROM OTHER DONORS

German Government (GTZ)

Irish Aid

The Netherlands

Sweden / Norway / Switzerland

Australian government / AusAid

Korean government

American government / USAid

UK government
 The Minister of Labour

The National Skills

Authority
The National Skills
Strategy Steering
Committee

The National Skills

Strategy Executive
Committee

The PMU

1 2 3 4 5 6 7 8 9 10 11

Project Project Project Project Project Project Project Project Project

Steering Project Project
Steering Steering Steering Steering Steering Steering Steering Steering
Committee Steering Steering
Committee Committee Committee Committee Committee Committee Committee Committee
Committee Committee

Provincial
Public/
Capacity In-service Institu- Pilot for SDS
Strategic Learner Funding ETQAs Private
of training tional integration Capacity Designated
Info -ships systems Partnerships
DoL capacity of services Building Groups
System established
LABOUR MARKET SKILLS DEVELOPMENT PROGRAMME FUNDED BY THE EU
 PROVISIONAL OVI’s (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

 PROVISIONAL OVI’s (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

 SDI System role out started by June 2001

 PROVISIONAL OVI’s

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

 PROVISIONAL OVI’s (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

 MARKETING STRATEGY

Marketing strategy is being designed –

to be designed by the end of 1999
and implemented from 2000.