FOODBEV SETA
FOODBEV SETA
Food and Beverages Manufacturing
Parliamentary Labour Portfolio Committee
3rd November 2009
Ravin Deonarain
CEO
Introduction and Appreciation
• Thanks and Appreciation:
– Hon Minister of Labour
– Hon Chairperson of Labour Portfolio Committee
– Hon Committee Members
• Representatives of FoodBev Seta
–
–
–
–
–
–
Council Member:
Council Member
Corporate Services Manager:
CFO:
Skills Development Projects Manager:
CEO:
Company Name
Mr Hennie Korff
Mr Boaz Mashele
Ms Liezl Gerryts
Mr Raj Rajcoomar
Mr Khotso N Potele
Mr Ravin Deonarain
Presentation Outline
• FoodBev Sector
• Highlights and Challenges
• Funds Management
• NSDS Performance
• Customer Satisfaction
• Portfolio Committee Specific Concerns
• Consultants
• Training Layoff Provision
• Employment Equity
Ravin Deonarain
FoodBev Sector
Economic Characteristics
• Diverse sector
• Price sensitive products
• High production volumes – costs driven
• Capital intensive and technology driven
• Intense brand competitiveness
• Dominance - large companies and multinationals
• Large number small food manufacturers (85%)
• Mergers and acquisitions (brands)
FoodBev Sector
• Companies and Products:
SA Breweries, Kellogg's, Nestle, Frito-Lay Simba, ABI, Coke
Cola, Tiger Brands, Unilever Foods, Clover, Oceana Fishing,
Enterprize Meats, Nabisco, McCain's Foods, Beacon, Cadbury’s
Bokomo
• Contribution to GDP
: R83.2 b for Food
R30 b for Beverages
• Total employment
Company Name
: +-176 000 (known)
Labour Market
• 1994: Macro Economic Stabilisation and Trade Liberalisation
– Growth in demand for skilled labour
– Job shedding of unskilled and semi skilled
• Production
- 17,16 % of manufacturing sector output
• Employment - 15,63% of manufacturing sector
• Wages
- 13,74% of manufacturing sector
• Employment – 2 % of total economy
(DTI, 2007)
Ravin Deonarain
Funds Management Trend
(Rm)
Ravin Deonarain
2.1 80% OF LARGE FIRMS’ AND 60% OF MEDIUM FIRMS’
EMPLOYMENT EQUITY TARGETS SUPPORTED BY SKILLS
DEVELOPMENT. IMPACT ON OVERALL EQUITY PROFILE OF
FIRMS AND SECTORS MEASURED
Success
Indicator
2008/9 PERF
Target
80% LARGE
128
140
109%
60% MEDIUM
140
148
106%
Ravin Deonarain
%age
2.2 SKILLS DEVELOPMENT IN AT LEAST 40% OF
SMALL LEVY-PAYING FIRMS SUPPORTED AND
IMPACT MEASURED
Success Indicator
2008/9 PERF
Target
40% SMALL
330
Ravin Deonarain
450
%age
136%
2.5 ANNUALLY INCREASING NUMBER OF SMALL BEE FIRMS
AND BEE CO-OPERATIVES SUPPORTED BY SKILLS
DEVELOPMENT. SURVEY PROGRESS AND MEASURE IMPACT.
Success Indicator
2008/9 PERF
%age
Target
BEE Co’s supported
Ravin Deonarain
24
36
150%
2.7 700 000 workers have achieved
ABET Level 4
Success Indicator
ABET Level 1-4
– Entered
– Completed
Ravin Deonarain
2008/9 PERF
%age
Target
800
1806
301%
600
1448
359%
2.8.
125 000 WORKERS ASSISTED TO ENTER AND
AT LEAST 50% SUCCESSFULLY COMPLETE
APPROVED PROGRAMMES
Success Indicator
2008/9
Learning Programmes
Target
PERF
%age
– Entered
800
2324
291%
– Completed
500
717
143%
Ravin Deonarain
3.2. 2000 non-levy paying enterprises, NGOs, CBOs, and communitybased co-operatives supported by skills development. Impact of support
on sustainability measured with a targeted 75% success rate.
Success Indicator
2008/9
Skills Dev Support
Target
NGOs, CBOs, Co-ops
40
Non Levy Paying
Companies
Ravin Deonarain
PERF
82
%age
177%
4.1. 125 000 unemployed people assisted to enter and
50% successfully complete programmes
Success Indicator
2008/9
Learning Programmes
Target
PERF
%age
– Entered
600
1283
214%
– Completed (50%)
300
381
127%
Ravin Deonarain
4.2. 100% of learners in critical skills programmes covered by sector
agreements and Nat Priorities from local FET and HET institutions
assisted to gain work experience. 70% find placement in employment or
self-employment.
Success Indicator 2008/9
PERF
%age
Target
To Gain Work
Experience
5
7
140%
Find placement
after completion
70
67
96%
Ravin Deonarain
4.3. 10,000 young people trained and mentored to form
sustainable new ventures and at least 70% of new ventures in
operation
Success Indicator
2008/9
PERF %age
Target
New Venture Creation
– Entered
5
– 70% operational 90
after 12 months
Ravin Deonarain
12
240%
111
123%
5.1. By March 2010 each SETA recognises and supports at least five
Institutes of Sectoral or Occupational Excellence (ISOE) within public and
private institutions and through Public Private Partnerships (PPPs)
Success Indicator
2008/9 PERF
%age
Target
ISOE’s
recognised/supported
Ravin Deonarain
1
2
200%
5.2. Each province has at least two provider institutions
accredited to manage the delivery of a new venture creation
qualification. 70% of new ventures still operating after 12 months
Success Indicator
2008/9 PERF
%age
Target
New Venture Creation
Provider
Ravin Deonarain
4
5
125%
5.3. Measurable improvements in the quality of the
services delivered by skills development institutions
Success Indicator
2005/6 PERF
%age
Target
SAQA Audit of
FoodBev Seta
Ravin Deonarain
1
1
100%
Beneficiaries
Employment Equity
8000
7222
7000
6000
TARGET
5000
4000
3305
3205
ACTUAL
3000
2036
2000
1000
151
67
0
BLACK
Company Name
WOMEN
DISABLED
NSDS 2
2005-2009
• Total Learning Programmes:
13 890
• Learnerships
– Completion Rate
30% (average)
– Drop out
12%
– In Progress
58%
• Issues
– L/ship completion rate slow – 15 months
– Withhold/recover grant funds
– Investigation report commissioned
NSDS 2
2005-2009
• Skills Programmes
– Completion rate
– Drop out rate
– 83%
- 5%
• Internships/Work Experience
– Employment Rate
- 100 %
• Apprentices in training
- 850
FoodBev Seta SLA
Performance
DoL
2003/4
2004/5
2005/6
2006/7
2007/8
2008/9
Excellent
Excellent
Excellent
Exceeds
Exceeds
Excellent
Targets
Targets
4/5
4/5
Rating
5/5
NSDS 1
5/5
5/5
NSDS 2
Rating Includes:
• NSDS/SLA target performance for sector
• Financial Performance
5/5
Customer Survey Results
Consolidated Customer Survey Results - 2007
60
2007
50
2006
2005
40
30
20
10
0
Strongly Agree
Ravin Deonarain
Agree
Neither Agree
nor Disagree
Disagree
Strongly
Disagree
FoodBev Staff
Employment Equity
80
70
60
50
40
% STAFF
30
20
10
0
BLACK
Company Name
WOMEN
DISABLED
Consultants
•
•
•
•
Very specialized skills
Non recurring and infrequent
Specific tasks or projects
Costs and resources
Area
Number
Costs
Scarce Skills Research
1
R 371 000
Skills Forecasting Tool Development
1
R 201 600
Customer Satisfaction Survey
1
R 112 400
12
R 438 900
Assessors and Moderators
Training Layoff
• Communication in sector - all media
• Briefing
– Organised Labour Forum
– Employer Forum
– Council Decision
• 300 skills programmes – R 1.8 m
• 30 new venture creation – R 0.75 m
Thank you
Questions