Skills Planning for
the FPM Sector
Daryl McLean
Pauline Matlhaela and Associates
Outline of Presentation

SSP requirements
Relationship between SSP/ASP/APP
 Questions an SSP is trying to answer
 The structure of a sector skills plan
 “Performance-based” sector skills planning



Methodology and Project Plan
Analyses for








Leather and footwear
Clothing and textiles
Forestry, wood, pulp and paper
Furniture
Publishing
Printing and packaging
Print media
Priority Skills Interventions
The Legal Mandate
A SETA must, in accordance with any requirements that may be
prescribed:
a. develop a sector skills plan within the framework of the
national skills development strategy;
b. implement its sector skills plan byi.
ii.
iii.
iv.
v.
establishing learnerships;
approving workplace skills plans;
allocating grants in the prescribed manner and in accordance with any
prescribed standards and criteria to employers, education and training
providers and workers; and
monitoring education and training in the sector;
promote learnerships by –
1.
2.
3.
4.
identifying workplaces for practical work experience;
supporting the development of learning materials;
improving the facilitation of learning; and
assisting in the conclusion of learnership agreements;
“Performance” Requirements and Framework
Treasury Regulations 5 and 30 require FPMSETA to:





“Produce and table a Strategic Plan with a five-year planning horizon, outlining the
planned sequencing of projects and programme implementation and associated
resource implications and other prescribed information
Produce and table an Annual Performance Plan including forward projections for a
further two years, consistent with the medium-term expenditure framework (MTEF)
period, with annual and quarterly performance targets, where appropriate, for the
current financial year and the MTEF
Identify a core set of indicators needed to monitor institutional performance
Adopt a quarterly reporting system, including submission of agreed information to
executive authorities, the Presidency or Premier’s Offices, the relevant treasury and
Parliamentary portfolio committees. Public entities are encouraged to submit the
reports to their executive authorities and responsible departments.
Ensure that there is alignment of reporting between the Strategic Plans, Annual
Performance Plans, budget documents and annual and quarterly reports”.
Content and Structure of Strat Plans
and Performance Plans
Top-Down and Bottom-Up
Planning
Under NSDS1 and 2

The targets were set in NSDS

These were cascaded to 22 SETAs

The budgets were divided by the targets in developing
the plans
Under NSDS3:
There are top-down
AND bottom-up processes
What is a “Sector Skills Plan”?
What is Required in Each SSP
Section
SSP Section
Purpose, Questions, Data and Analysis Required
Profile of the
Sector
Purpose is to scope the sector – who is included/excluded in the analysis? What
are the key features of the sector that are relevant to the analysis? The impact
level of measurement must be defined here.
Demand for skills
Purpose is to identify how many (new and existing) employees must be trained
over a 5 – 10 year timeframe; for which jobs; and why (the impacts intended).
This includes growth demand and replacement demand. Data must include
growth forecasts; employer/employee data; labour market trends; and key
strategy drivers.
Supply of skills
Purpose is to analyze the supply-side capacity required to achieve the demandside targets. Data must include current providers; provider capacity; programs;
enrolment, retention and achievement rates (all analyzed against demand
side/regional distribution). Also budgets, EEEE analysis.
Priority areas for
skills interventions
Purpose is to list the scarce/critical needs and to prioritize the most important.
Then to identify the priority (systemic) interventions required to address the
problems.
Strategies for
delivering priority
interventions
Purpose is to identify the key challenges in delivering the priority skills, and to
propose strategic framework for SETA operations. These must relate back to the
impact level of measurement and the RoI/EEEE baselines.
Performance Information
Categories of Performance Information
Using SMART Performance
Measures
Managing
Performance
What are we trying
to achieve?
What evidence do
we use?
Where are we
now?
How do we
add value?
Performance
Measures
Performance
Indicators
Baselines and
Targets
Actions and
Outputs
Measuring “Effectiveness”
Level
Effectiveness Objective
Level
Sample Indicator
1
Are learners satisfied?
• Course evaluation forms
completed by learners
2
Are learners learning?
• Assessor and moderator reports
3
Are learners transferring
what they learn to the
workplace?
• Transfer of learning evaluation
forms completed by learners,
supervisors and managers
4
Is the transfer improving
productivity or service
delivery?
• Multivariate analysis of
performance data
5
Is the workplace performing
better as a result?
• Multivariate analysis of
workplace/industry data
6
Is the country or sector
doing better as a result?
• Analysis and synthesis of data
collated at previous levels
Illustrative Framework of Indicators
Education and
training
outcomes
% correlation of enrolment figures against scarce and critical
needs of sector
% rise in achievement rates, measured by the number of learners
passing divided by those who enrolled
% rise in retention rates, measured by the number of learners
completing divided by those who enrolled
Stakeholder
Satisfaction
Outcomes
Employment
Outcomes
Social Outcomes
% learner satisfaction, measured against standardized course
evaluation ratings
% employer satisfaction, measured against standardized employer
feedback ratings
% of unemployed learners in jobs 6 months after training
% transfer of learning to the workplace, measured against
standardized transfer of learning ratings
% contribution to sector employment equity objectives
(applicable to all providers for reporting, but only to SETA-funded
provision as measurement)
Equity Baseline – Gender and
Disability (ATR)
Occupation Group
Male
Female
Disabled
Clerks
3824
6427
1686
Craft & Related Trades
3915
446
80
Elementary Occupations
7109
2506
73
Legislators, Senior Officials and Managers
3498
1872
40
Plant & Machine Operators & Assemblers
12562
2195
92
Professionals
1991
1987
22
Services & Sales Workers
5032
4960
102
10
5
0
Technicians & Associate Professionals
5333
5052
63
Baseline Expenditure
63%
37%
3%
Skilled Argricultural & Fishery Workers
Equity Baselines - Race
Occupation Group Number
African
Coloured
Indian
White
Clerks
2778
3181
3162
2816
Craft & Related Trades
1212
1177
775
1277
Elementary Occupations
6316
2492
619
261
Legislators, Senior Officials
and Managers
Plant & Machine Operators
& Assemblers
Professionals
660
668
613
3469
7043
4616
2104
1086
658
563
402
2377
Services & Sales Workers
2641
1706
1621
4126
2
7
0
6
1830
1743
2462
4413
32.6%
22.8%
16.6%
28%
Skilled Argricultural &
Fishery Workers
Technicians & Associate
Professionals
Baseline Expenditure
Baselines for Effectiveness/Efficiency
Costs Divided by Pass Rates
COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS
168
168
100%
7
72
10%
DEPT OF SPORT,ARTS,CULTURE AND RECREATION
35
63
56%
DEPT OF AGRICULTURE AND RURAL DEVELOPMENT
34
327
10%
DEPT OF ECONOMIC DEVELOPMENT AND PLANNING
9
64
14%
304
227
134%
43
575
7%
9
639
1%
301
1%
DEPT OF POLICE,ROADS AND TRANSPORT
DEPT OF INFRASTRUCTURE DEVELOPMENT
DEPT OF ECONOMIC DEVELOPMENT AND TOURISM
DEPT OF PUBLIC WORKS
DEPT OF LOCAL GOVERNMENT AND TRADISTIONAL AFFAIRS
DEPT OF AGRICULTURE
DEPT OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS
.
.
729 .
4
SETA Performance Value Chain
Management
Steers Organisation Toward Goals / Responds to Context
Sector Skills Planning
Identifies Strategic Issues, Needs, Causes, Policy Options
Projects
Grants
Learning
Programs
Innovates
Implements
Implements
Best Practice Best Practice Best Practice
Solutions
Solutions
Solutions
Increased Workplace
Participation in
Planning/Delivering
Skills Development
ETQA
Steers
Provision
Toward
Needs
Improved Correlation
Between Provider
Capacity and Sector
Skills Needs
Measured Against Framework of Indicators
Gov
Serv
Fin
Ops
METHODOLOGY
AND
PROJECT PLAN
Past Approaches to SSPs in SA

Current approach




WSPs/ATRs analysis
Employer surveys
Consultations with stakeholders
Reliance on WSP/ATR and employer information






Coverage of employer through WSPS
WSPs skewed to large employers
WSPs not necessarily based on best practice WS planning
Partial picture of scale and shortages
Not differentiate between frictional as opposed to
structural causes
Limited predictive potential
19
Sector Skills Planning models internationally

Skills forecasting

Labour market signaling

Qualitative models

Cost – benefit models
Each model has weaknesses – mixture of different
models more effective to achieve purposes of sector
skills planning
Appropriate mix of models depends on availability of
data; resources available for planning; timeframes
20
Qualitative Methods
“…Qualitative methods involve attempting to reach
an assessment of skill needs through in-depth
interviews with key stakeholders such as policy
makers, and of course, employers. Wilson,
Woolard and Lee (2004) conclude that where
the data permits, standard occupational
forecasts should be produced regularly,
complemented by the more qualitative
approaches, to produce a more rounded and
enriched view of changing skill needs”.
An Assessment of International Trends in Occupational
Forecasting and Skills Research: IRNI 2008
Project Plan
Labour Market Forecasting Model
1 Macroeconomic model
2 Occupational employment model
3 Replacement demand model
4 Skills demand model
Growth Demand Calculations
FORMULA: GROWTH IN OUTPUT = GROWTH IN DEMAND FOR LABOUR (LESS
PRODUCTIVITY IMPROVEMENTS, CAPACITY UNDER-UTILISATION,
CAPITALISATION, LABOUR ELASTICITY)

Separate growth scenarios were formulated based on conservative overand under-projections of the previous average growth in the sectors in the
FP&M SETA (-1%, 2%, 5%).

The total employment figures based on the Quarterly Labour Force Survey
(QLFS) 2012 dataset from the first quarter

The capacity under-utilisation percentage was found in the Statistics South
Africa document entitled Manufacturing: Utilisation of production capacity
by large enterprises, 2012. (Except for forestry)

The productivity figures were calculated based on output data derived from
the Quantec database

Capital intensity data was collected from the Quantec database. (Except for
Forestry)

Labour elasticity was calculated based on sectoral output and wage data
from the Quantec database. For the forestry sector, employment data was
derived from Forestry South Africa’s Forestry and Forest Products and wage
data was derived from the Quantec database.
Occupational Modelling
FORMULA: DIVIDE THE TOTAL NUMBER OF JOBS
FORECAST ACROSS THE VARIOUS OCCUPATIONS
ACCORDING TO PERCENTAGES

The occupational employment figures and
disaggregation were derived from the QLFS datasets
from 2008 – 2012

Some of these look odd, so
 We
are checking with Stats SA
 We
may use the WSP categories/percentages instead
Replacement Demand
FACTORS: RETIREMENT, MORTALITY, MORBIDITY, MOBILITY

The retirement forecast figure was calculated using the age profile from
QLFS 2012. It was assumed that all of the workers aged between 60 and
65 years of age will retire in the next 5 years; and those aged between 55
and 60 years of age will retire in the next 10 years.

The HIV/AIDS prevalence rate was modelled on various data sets (see
following slides) but remains a very generic estimate compared to the
modelling required

For replacement demand based on deaths from causes other than
HIV/Aids-related issues, a figure of 5% was picked. This was based on the
ratio of the number of working people who died in 2009 (the latest
available Cause of death data from Statistics South Africa) to total
employed people which was 4.4%. This was rounded up to 5%.
Mortality and Morbidity - HIV/AIDS
Occupational Bands
HIV/AIDS – Education Levels
Impact of HIV/AIDS on Companies
Epidemiology of HIV/AIDS
SUMMARY OF FPM INDUSTRIES
SKILLS PLAN FINDINGS
Clothing, Footwear, Textiles,
Leather and General Goods
- Shrinking Output -
Clothing, Footwear, Textiles,
Leather and General Goods
- Imports vs Exports-
Growth Prospects
The growth prospects for the sector remain
by and large unchanged for the future
unless the sector fundamentally
restructures itself and improves product
offering and pricing. Growth for the sector
in the next 5 years is more a matter of
retaining market share against cheap
imports than about growth. If the DTI
strategy works growth may be an option
post 2015.
Capacity Utilisation
The overall sectoral utilisation of factors of production is down from
77.2% in 2009 and 74.1% in 2010. Stats SA conducted a sectoral
survey on reasons for the under-utilisation of the factors of
production…. The unused 22.6% was accounted for as follows:

Lack of raw materials : 2%

Lack of skilled labour : 0.9%

Lack of unskilled labour : 0.4%

Insufficient demand : 16.7%

Other : 2.9%
Productivity
2004
2005
2006
2007
2008
2009
14.8
7.3
7.2
7.2
20.4
-2.0
25.6
12.1
6.5
3.3
15.5
-6.0
Wearing apparel [313315]
0.7
1.6
7.1
7.8
22.3
4.6
Leather and
products [316]
15.1
10.4
8.5
22.2
34.1
-23.2
17.6
8.2
2.8
5.0
4.2
-4.8
Textiles, clothing
leather [311-317]
and
Textiles [311-312]
Footwear [317]
leather
Growth and Replacement
Scenarios: Leather
Scenarios
-1%
2%
5%
Current total employment
12278
12278
12278
Job losses forecast
-7743
-7504
-7265
New level of employment
4535
4774
5013
Total replacement demand*
3120
3120
3120
Final employment level
7655
7894
8133
Factor
Totals
Retirement
Mortality (HIV/AIDS)
Mortality (Other deaths)
Migration
Total
664
1228
614
614
3120
Growth and Replacement
Scenarios: Footwear
Scenarios
-1%
2%
5%
Current total employment
13922
13922
13922
Job losses forecast
-5812
-5529
-5246
New level of employment
8110
8393
8676
Total replacement demand*
3192
3192
3192
Factor
Retirement
Mortality (HIV/AIDS)
Mortality (Other deaths)
Migration
Total
Totals
408
1392
696
696
3192
Footwear Occupational Modelling
(Major Occupational Groups)
Legislators, senior officials and managers
839
Technical and associate professionals
1073
Clerks
2032
Craft and related trades workers
4733
Plant and machine operators
4326
Elementary Occupation
919
Total
13922
Footwear Occupational Modelling
(Minor Occupational Groups)
Supply and distribution managers
839
Technical and commercial sales representatives
814
Decorators and commercial designers
259
Stock clerks
677
Receptionist and information clerk
894
Other office clerks
461
Millers, bakers, pastry chefs
2947
Shoemakers and related workers
1786
Sewing-machine operators
902
Fur and leather-preparing machine operators
982
Shoemaking and related machine operator
2442
Hand-packers and other manufacturing labourers
919
Supply and distribution managers
839
Technical and commercial sales representatives
814
DTI Industry Strategy

Leather is divided into cattle hides, ostrich, crocodile, etc

2.5m cattle slaughtered in SA annually

60% of the hides used in auto industry

251m pairs of shoes consumed domestically, only 50m made here

Thus beneficiating the hides in footwear potentially brings these
jobs back to SA

Footwear design, quality of workmanship, branding and
international retail linkages are key constraints

Limited supply-side training to address these concerns
Leather and Footwear Strategy:
Projections
Strategy Driver
2008 Strategic Framework for Leather and
Footwear Industries
Growth demand
30 000 new jobs
Supply-side capacity/
interventions
General:
•Build local design training capacity
•Strengthen quality of workmanship/career pathing
•Ethical branding/quality management implications
•Small business competitiveness improvement
•Strengthen international networks/linkages
•Collaborative clustering” strategy behind training
Specific:
•Leather technologists
•Ethical branding – quality management
Specific Skills Priorities
Leather and Footwear Skills Strategy

Leather
 Leather
technologists NB
 Quality
control (ethical branding) focus
 Career
pathing from NQF2 upwards
 Electrical

and engineering NB
Footwear
 “Collaborative
 Bursaries
 Design
clustering” to inform skills interventions
for international design studies (short-term)
Institute
Growth and Replacement
Scenarios: Textiles
Scenarios
-1%
2%
5%
Current total employment
253742
253742
253742
Job losses forecast
-10432
-9876
-9320
New level of employment
243310
243866
244422
Total replacement demand*
60962
60962
60962
Factor
Totals
Retirement
Mortality (HIV/AIDS)
Mortality (Other deaths)
Migration
Total
10214
25374
12687
12687
60962
Textiles Retirement Demand
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60+
Total
Male
1498
2784
5,513
2,584
9,254
1,923
3,433
1,919
3,267
2,289
34,464
Female
785
1172
2076
3,152
6,943
5,578
5214
4,092
4,817
2518
36347
Total
2283
3956
7,589
5,736
16,197
7,501
8,647
6,011
8,084
4,807
70,811
Growth and Replacement
Scenarios: Clothing
Scenarios
-1%
2%
5%
Current total employment
121324
121324
121324
Job losses forecast
- 35370
- 31466
- 27563
New level of employment
156694
152790
148887
Total replacement demand*
30979
30979
30979
Factor
Totals
Retirement
Mortality (HIV/AIDS)
Mortality (Other deaths)
Migration
Total
6715
12132
6066
6066
30979
Retirement Demand (Clothing)
Male
Female
Total
15-19
0
1,800
1,800
20-24
0
7,790
7,790
25-29
2,828
11,621
14,449
30-34
2,243
15,575
17,818
35-39
4,817
13,982
18,799
40-44
2,200
12,037
14,237
45-49
3,374
17,065
20,439
50-54
705
13,195
13,900
55-59
1,466
9,288
10,754
60+
0
1,338
1,338
Total
17,633
103,691
121,324
Clothing and Textiles CSP
Strategy Driver
DTI Customised Sector Program
Growth demand
50 – 60 000 new jobs
Clothing and Textiles CSP/Charter
CSP focus areas

Domestic market development (local sourcing, trade
measures, combat illegal imports, promote local)

Exports (promote trade, market access)

Competitiveness (capitalisation, supply chain)

Sustainable HR (training of managers, avoid
sweatshops…)
Empowerment

Empowerment (charter commits to 30% BEE in textiles,
50% in clothing)
Clothing and Textiles


Technical textiles

Replacement demand – aging workforce

New equipment coming in

Critical skills: new equipment; technical artisan skills especially; mechanical
engineers; technicians; mechanics; quality contollers

Challenges with existing provision: no external training capacity due to
specialisation

Have to send people oversees, or bring people in from outside country – could
look at partnerships with industry (esp india) or at increasing stipend since
learning is international
Clothing

Replacement demand: aging workforce; provident fund debacle

Need for versatile/multi-skilled machinists

Three most important things: supporting more learnerships in companies and
trying to see how we can multi-skill

Bridging courses from ABET to higher levels, to enable progress toward
supervisor
Growth and Replacement
Scenarios: Forestry
Scenarios
-1%
2%
5%
Current total employment
36174
36174
36174
Job losses forecast
- 15884
- 14974
- 13704
New level of employment
52058
50968
49878
Total replacement demand*
8844
8844
8844
Factor
Totals
Retirement
Mortality (HIV/AIDS)
Mortality (Other deaths)
Migration
Total
1609
3617
1809
1809
8844
Retirement Demand (Forestry)
Age group
Male
Female
Total
20-24
1146
874
2020
25-29
1939
3452
5391
30-34
2569
1916
4485
35-39
4434
867
5301
40-44
3750
348
4098
45-49
583
780
1363
50-54
312
1013
1325
55-59
1333
0
1333
60-64
0
784
784
Total
16066
10034
26100
Growth and Replacement
Scenarios: Wood
Scenarios
-1%
2%
5%
Current total employment
53364
53364
53364
Job losses forecast
-10233
-9782
-9330
New level of employment
43131
43582
44034
Total replacement demand*
13178
13178
13178
Factor
Totals
Retirement
Mortality (HIV/AIDS)
Mortality (Other deaths)
Migration
Total
2506
5336
2668
2668
13178
Retirement Demand (Wood)
Male
Female
Total
15-19
1,229
0
1,229
20-24
3,578
619
4,197
25-29
3,903
4,025
7,928
30-34
13,112
3,487
16,599
35-39
5,218
1,493
6,711
40-44
3,001
1,436
4,437
45-49
7,278
4,441
11,719
50-54
4,852
1,181
6,033
55-59
3,278
565
3,843
60-64
742
0
742
Total
46,191
17,247
63,438
Pulp and Paper

This sector has had the highest output in the past 10
years but around the 3rd lowest employment figures.
Consequently, the labour productivity in this sector is
particularly high. Therefore, the growth projection
scenarios used in this example are so low that they
would result in negative employment growth and
negative employment in this sector. Because the labour
productivity is so high, this sector is not likely to require
new labour at such low growth situations. Only at very
high growth levels would positive employment be
maintained.
Forestry, Timber, Pulp, Paper
Strategy Driver
2007 Forestry Strategy/Charter
Growth demand
26 000 new jobs in Forestry (EC) and 300 downstream
15 000 new jobs KZN, with 500 downstream
3% of payroll on learning programmes for black
employees, over and above the 1% spent on the skills
levy
Scarce Skills in Forestry
Forestry, Wood, Pulp and Paper

Relevant growth demand: targets are almost certainly wrong, need to be reviewed –
closer to 6000,. Problems include land reclamation debates; number of hectares
constrained; some shrinkage taking place in land use;

Main drivers: aging workforce.

Main factors in terms of critical skills. We are driving more timber from less land
through critical skills development, therefore this should be an important focus.

Challenges with existing provision: not a lot of basic training (sawmilling etc). For
pulp and paper we need a lot of higher levels (scientists, engineers)

Areas for intervention: Improve skills of existing employees; dedicated training
centres for these skills; problems for reinvestmnt of timber; private companies don’t
have cashflow to invest in new areas (costs more to clear land etc). Forums for large
roleplayers to talk about the needs of their employees for training.
Furniture
Strategy Driver
Furniture Industry Strategy
Growth demand
9 932 new jobs
Furniture

Growth demand drivers: domestic market development, empowerment,
technology

Replacement demand: aging, remuneration (other sectors poaching our
technical skills)

Main factors driving critical skills: technology, design, aging.

Challenges with training: appropriate accreditation, qualifications, staff,
technology

Someone decided not to offer technical subjects in school, a big problem in
industry

Partnerships with industry and training providers – the providers (esp FET
colleges) approach only for placement – partnership ratther than a dumping
ground

Important things the SETA can do: engage majority of employers not only
Gauteng; engage more with SMMEs; turnaround times with grants and
programs
Growth and Replacement
Scenarios: Printing
Scenarios
-1%
2%
5%
Current total employment
75156
75156
75156
Job losses forecast
-7791
-7604
-7510
New level of employment
67365
67552
67646
Total replacement demand*
19364
19364
19364
Factor
Totals
Retirement
Mortality (HIV/AIDS)
Mortality (Other deaths)
Migration
Total
4332
7516
3758
3758
19364
Retirement Demand (Printing)
Male
Female
Total
15-19
1,450
0
1,450
20-24
2,556
3,478
6,034
25-29
6,359
7,082
13,441
30-34
6,407
4,521
10,928
35-39
8,596
5,711
14,307
40-44
8,417
3,503
11,920
45-49
2,742
2,354
5,096
50-54
2,140
1126
3266
55-59
5011
2569
7580
Publishing and Print Media
Strategy Driver
Publishing Industry Strategy
Growth demand
0 new jobs forecast
Publishing and Print Media

Move to digital driving industry, therefore not employment growth

Understanding how to use digital in business terms

Small niche market, individuals are not leaving industry thus no replacement demand

Critical skills: sustainability of business/market needs

Gap between younger and older employees – we have an aging workforce, training
focused on bridging this gap

Institutions do provide training, but learners graduating are not fully competent when
they enter the workforce

Engagement at all levels, pointing industry in right direction, assisting in meeting with
stakeholders (eg universities)

Understanding the collaborative clustering, bringing it together in the industry

Funding for discretionary grant: training is in-house, often can’t be funded from DG
– how do we do this?

List of experts in our industry, SETA to make use of this for eg. program design

Language in training is a concern

Straddling FPMSETA and MICSETA – SIC CODE SPLIT; INDUSTRY COMPETITION;
MDDA, ENTRY HEQ BUT PORTFOLIO; PROFILE NB; AIP STRAT;

Is it possible to bring
Printing and Packaging
Strategy Driver
No Industrial Strategy As Yet
Growth demand
? new jobs
Printing and Packaging Strategy
Critical skills drivers

Technology changes

Multiskilling
Strengthening the Skills Pipeline

Grow skills pipeline into the industry – attracting new/right talent

Improve base level of learning within the sector

Generation Y factors

Succession planning/knowledge management to address aging
workforce
Industrial strategy

Lack of industrial strategy in SA – upstream/downstream linkages

Building supply-side platform, capacity, throughput – incl HEI

Industrial cooperation
Printing

No industrial strategy.

Growth demand issues: technology; poor levels of general education; upskilling of
currently qualified staff to improve skills levels; aging workforce; shift from low skill
to high skills base;

Are not training enough people overall; are promoting unqualified people to senior
positions, need to qualify these people properly.

Critical skills drivers: science and technology; life skills at more basic levels;
business skills for the succession planning strategy;

Challenges in terms of training provision: more than enough providers of artisan
development; but at higher levels there are gaps, need to create programs and build
HET capacity to do this;

Realistic funding model needs to be developed (especially to sustain the private
training provider capacity)

Three most important things: develop an industry strategy; develop the higher level
intellectual leadership; speed up development of new curriculum that’s been in
process for the past three years

Obstacles to the industrial strategy: we need to understand why there isnt, deal with
the challenges behind this. Industry currently fragmented, silo mentality that is
inhibiting this. Also have seen steady decline in training of apprentices. We need
representation and inclusivity.
RoI Planning

More than 150 000 new jobs

Guesstimate of 10% replacement demand pa (on 209323 employees) =
100 000 existing employees will need to be replaced

Thus total of 250 000 people to be trained excluding critical skills
development

Total skills budget of R200m pa?

Learnership = R25k

Apprenticeships = R35k

Skills program = R120 per credit, 60 credits?

ABET = R3500

Interns = R25k for 6 months

Therefore need to

Improve economy and efficiency of skills efforts

Improve completion and pass rates

Explore more cost-effective training
SUMMARY OF FPM INDUSTRIES
SKILLS PLAN FINDINGS
Generic Patterns in Analysis

Literature survey




Industrial strategies aim to achieve growth in employment,
through various strategies
Labour market analysis

LMA shows high replacement demand (due to retirement/HIV)

Yet despite replacement demand, LMA shows overall negative
employment growth in every single industry, because employers
are buying machines and improving productivity
Stakeholder interviews and engagements

Almost unanimous that industry strategies are ambitious

Positive sentiment toward industrial strategies, constraints in
industrial cooperation to achieve these
WSP/ATR/ETQA findings and project allocations?? Return on
investment analysis will point to equity/effficiency baselines.
Generic Skills Priorities


“Salvage” strategies?

Training layoff scheme?

State procurement
Turnaround/growth strategies

Collaborative clustering to inform when, how and what interventions take place

Organising some parts of sector

HET role in sector leadership development/think-tanks?




Branding, international networks, retail linkages and SMME
FET role in SMME/coop development?
Supply-side strategies

Feeder systems into schools/FETs?

Specialist capacity/international linkages

Mainstreaming into FETs

Research partnerships with HETs?
Non-formal/”whole organisation” interventions

Succession planning linked to coaching and mentoring

HIV/AIDS strategy

Efficiency strategies

Effectiveness strategies
Non-Formal Interventions
A “More Developmental” SETA?

Non-formal interventions can be
conducted through



Recruit/select sample of participant companies/practitioners
Agree and develop package of tools (policies, procedures, ME
criteria, codes of practice, etc)
Pilot, revise and link to grant windows
Non-Formal Interventions

Non-formal interventions can be
conducted through



Recruit/select sample of participant companies/practitioners
Agree and develop package of tools (policies, procedures, ME
criteria, codes of practice, etc)
Pilot, revise and link to grant windows
Clothing, Textiles, Footwear and
Leather

Work closely with DTI, sector designations are an important growth driver
(means preferential procurement will include local manufacturing) – our
industry isn’t adequately prepared for this (barganing council, OSH,
business plans, etc are weaknesses).

But this is a major potential lifeline to the current industry, which is
struggling to survive

New skins and hides policy will also ensure local beneficiation, need to gear
for this in finishing plans, die houses within southern africa

Informal sector needs not being adequatley addressed, is a major growth
point – not high capitalisation required. Also not a lot of training, but there
are career paths, business development skills required, quality assurance

Leather technologistss

Industry on verge of collapse, we need to link skills strategy to the survival
strategies under discussion with DTI and the industry
Printing/Packaging

Growth demand drivers: needs to be a national industrial strategy. Will help to give direction to
the industry.

Another driver is government itself – expressed demands for printed material, scale challenges
(eg. textbooks = 30m books a year – how this is managed impacts on industry. Also example of
etolling tender – thus state procurement is a demand driver that should be managed carefully.

Replacement demand: aging workforce, technological changes in industry

Skilled professionalism is needed

Poaching of staff is a problem

General skills shortage because industry is highly technical, unless training infrastructure exists to
supply these skills we will always have a problem

Critical skills drivers: technology; supply of training;

Closure of centralised capacity resulted in proliferation of private training providers; FET capacity
not yet build to address the gap

Print training is highly capital intensive, need FPMSETA to explore support in this. Eg, training
facility for electronic origination.

Updating qualifications/standards or development of new ones – these will enable RPL and skills
training to be properly focused

SETA support priorities: work closely with industry to build supply side capacity for FETS,
including equipment. An industrial strategy would help. Also standardise learning material. Also
SETA red tape is frustrating, SETA staff need to be better equipped within the industry to be able
to lead the industry adequaely.
Leather and Footwear

Beneficiation of ostrich and crocodile focus

No design institute

No specialist training for designers in terms of specific materials

Partnerships between industries and providers

- links between theory and practice/provider and workplace

Capacity-building to increase output

International training to benchmark internationally

Productivity focus

Niche market focus to competitiveness strategies

Profiling what we can do, where we can compete

Links between manufacturing and brand strategies – affiliations and international networking

Quality control issues and systems – ethical production focus to quality

Supply chain program to improve competitiveness

Training of people on learnrships – NQF 2 upwards career pathing

Growth demand optimistic

Policy levers and systems – eg. tracking systems for each hide in each ractory

Electrical and engineering side – provifer capacity in the more rural areas NB