SECTOR SKILLS PLAN UPDATE
31 JANUARY 2014
SYNOPSIS
The Sector Skills Plan has been prepared in accordance with the guidelines of the
National Skills Development Strategy (NSDS III) and the DHET Guide to the Process
and Timeframes.
The principal aim of this Sector Skills Plan is to guide and inform skills
development initiatives in the designated sector. It is the outcome of a thorough
research process and extensive stakeholder consultation and engagement. The
Sector Skills Plan informs the strategic and annual plans of the SETA and serves as
a signpost for policy-making by Council.
Firstly, we have adopted an evidence-led research approach for identifying and
anticipating scarce and critical skills. This has been achieved by devising a
customised methodology to identify scarce skills in the sector. This is explained
clearly in Chapter Two of the document. In the future we intend refining the
research methodology to serve as an early warning system for anticipating skills
shortages in the transport sector. We want to be in a position to justify our
choices.
Secondly, we have given consideration to national policy issues outlined in the
New Growth Path, HRDSA, National Development Plan, IPAP, National Skills
Development Strategy and the Skills Accord in the SSP. These priorities inform
skills development projects in the SETA.
Thirdly, we have advised our research team to produce an SSP that is easy-to-read.
The primary target audience is employers and labour unions. The secondary
audience is public entities, NGOs, public entities, CBOs, investors, training
providers and other interest groups. Our SSP is not written in a thesis or peerreviewed academic journal style, but rather as a document which is in the public
domain for all to read. We want employers and trade unions to engage with the
document.
Fourthly, the SSP is concise; visual and graphic; uses simple language; and easy to
understand. All this is achieved without compromising the integrity, accuracy and
thoroughness of the research. The SSP is analytical, incisive and insightful, not
purely descriptive in nature. This enables a deeper understanding of occupational
and skills needs. We have balanced quantitative research with qualitative insights.
Finally, we have considered the DHET feedback on the previous SSP (2012) and the
Continuous Improvement Plan and responded accordingly. The Sector Skills Plan is
submitted to the Minister of Higher Education and Training in partial compliance
with the requirements of the Skills Development Act 1998 and the National Skills
Development Strategy (NSDS III). The Sector Skills Plan is endorsed by duly
authorised representatives.
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CHAIRPERSON: TETA BOARD
_________________________
Mr June Dube
Date: 31 January 2014
TETA CHIEF EXECUTIVE OFFICER
_________________________
Mrs Maphefo Anno-Frempong
Date: 31 January 2014
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CONTENTS
SYNOPSIS ....................................................................................................................1
ABBREVIATIONS…………………………………………………………………………………………………….7
EXECUTIVE SUMMARY................................................................................................8
CHAPTER ONE: SECTOR PROFILE .............................................................................11
1.1 INTRODUCTION ............................................................................................. 11
1.2 STAKEHOLDER ENGAGEMENT ....................................................................... 11
1.3 SCOPE OF COVERAGE (SIC CODES) ................................................................ 12
1.4 PROFILE OF THE TRANSPORT SECTOR ........................................................... 16
1.4.1 Key Features of the Transport Sector..................................................... 17
1.5 LABOUR MARKET CONTEXT ........................................................................... 18
1.5.1 Employment by Industry and Sector ...................................................... 19
1.5.2 Transport Sector Employment ............................................................... 20
1.5.3 Employment by Sub-Sector in Transport ............................................... 21
1.5.4 Employment by Province........................................................................ 21
1.5.5 Transport Sector Enterprises by size and province ................................ 22
1.5.6 Transport Sector Enterprises by size and chamber ................................ 23
1.5.7 Employment by Race, Gender and Disability ......................................... 24
1.5.8 Employment Equity ................................................................................ 29
1.5.9 Terms of Employment ............................................................................ 30
1.6 ALIGNMENT WITH NATIONAL STRATEGIES ................................................... 31
1.7 DRIVERS OF CHANGE ..................................................................................... 32
1.7.1 Decent Work ........................................................................................... 32
1.7.2 Greening the Transport Sector ............................................................... 33
1.7.3 Small Enterprise Development ............................................................... 34
1.7.4 Strategic Integrated Project (SIP) ........................................................... 35
1.7.5 Southern African Rail Network ............................................................... 36
1.7.6 HIV/AIDS ................................................................................................. 37
1.8 CONCLUSION ................................................................................................. 38
CHAPTER TWO: RESEARCH DESIGN AND METHODOLOGY ....................................40
2.1 INTRODUCTION ............................................................................................. 40
2.2 LABOUR MARKET INTELLIGENCE SYSTEM ..................................................... 40
2.3 RESEARCH DESIGN ......................................................................................... 41
2.4 RESEARCH METHODS .................................................................................... 42
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2.4.1 Interviews with Key Informants ............................................................. 43
2.4.2 Expert Workshop .................................................................................... 43
2.4.3 WSP/ATR................................................................................................. 43
2.4.5 Regional Workshops ............................................................................... 44
2.4.6 Employer Bodies and Trade Unions ....................................................... 44
2.4.7 Career Junction Index ............................................................................. 44
2.5 CRITERIA FOR DETERMINING SCARCE SKILLS ................................................ 45
2.6 CONCLUSION ................................................................................................. 47
CHAPTER THREE: SUPPLY OF SKILLS ........................................................................48
3.1 ANALYSING LABOUR SUPPLY-DEMAND ........................................................ 48
3.1.1 CareerJunction Index .............................................................................. 48
3.2 SUPPLY OF SKILLS........................................................................................... 49
3.2.1 Employment by Occupation and Industry .............................................. 49
3.2.2 Education Levels ..................................................................................... 50
3.3 WSP 2013/2014 and ATR 2012/2013 ............................................................ 52
3.3.1 Race Profile by Occupational Levels ....................................................... 52
3.3.2 Training by Race, Age and Region .......................................................... 53
CHAPTER FOUR: DEMAND FOR SKILLS ....................................................................62
4.1 SKILLS DEMAND ............................................................................................. 62
4.2 INDUSTRIES DISPLAYING MAJOR DEMAND................................................... 64
4.3 INDUSTRY TRENDS ......................................................................................... 64
4.4 DEMAND FOR SPECIFIC OCCUPATIONAL FIELDS ........................................... 66
CHAPTER FIVE: SCARCE AND CRITICAL SKILLS ........................................................68
5.1 SCARCE SKILLS................................................................................................ 68
5.2 CRITICAL SKILLS .............................................................................................. 80
5.3 CONCLUDING REMARKS ................................................................................ 82
CHAPTER SIX: STRATEGIC FRAMEWORK .................................................................84
6.1 PERFORMANCE MONITORING AND EVALUATION ........................................ 84
6.2 STRATEGIC FRAMEWORK .............................................................................. 85
REFERENCES..............................................................................................................96
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FIGURES
Figure 1: Proportion of Disabled Employees ........................................................... 28
Figure 2: High Skilled Workers by Race ................................................................... 29
Figure 3: Low Skilled Workforce by Race ................................................................ 30
Figure 4: Research Design to determine Skills in Demand ...................................... 41
Figure 5: Methods used to update the SSP ............................................................. 42
Figure 6: Methodology used for Assessment of Skills in Demand .......................... 46
Figure 7: Education Levels in Transport Sector ....................................................... 51
Figure 8: Occupation-Race Transport Sector .......................................................... 52
Figure 9: Training by Race ....................................................................................... 54
Figure 10: Completed Training by Age .................................................................... 55
Figure 11: Planned Training by Province and Race ................................................. 56
Figure 12: Planned Training by Occupation and Race ............................................. 57
Figure 13: Industries in terms of major demands ................................................... 64
TABLES
Table 1:Demarcation of Standard Industry Classification Codes ............................ 12
Table 2: Modal Classification of TETA Chambers .................................................... 13
Table 3: Employment by Industry and Sector ......................................................... 19
Table 4: Employment in Transport Industry and Total Employment 2001-2013... 19
Table 5: Employment by Sub-Sectors in Transport Industry, 2013 ......................... 21
Table 6: Employment in Transport Industry by Province, 2013 .............................. 21
Table 7: Number of Enterprises in Transport Sector by Size and Province ............ 22
Table 8: Number of Enterprises in the Transport Sector by Size and Chamber ..... 23
Table 9: Employment by Race and Gender, 2012-2013 .......................................... 24
Table 10: Employment in Transport Industry by Gender, 2008-2013 (000') .......... 25
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Table 11: Employment in Transport Industry by Age and Gender .......................... 25
Table 12: High-Skilled Workforce by Age ............................................................... 26
Table 13: Low-Skilled Workforce by Age ................................................................. 27
Table 14: High-Skilled Workforce by Gender .......................................................... 27
Table 15: Low-Skilled Workforce by Gender ........................................................... 28
Table 16: Terms of Employment ............................................................................. 30
Table 17: Employment by Occupation and Industry ............................................... 49
Table 18: Education Levels in Transport Industry ................................................... 50
Table 19: Training according to Occupation Class for the Employed and
Unemployed ............................................................................................................ 55
Table 20: Companies indicating Employees in specific Occupations to be trained 60
Table 21: Supply and demand trends in the Industry ............................................. 65
Table 22: Recruitment conditions in the Transport Industry .................................. 66
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ABBREVIATIONS
Abbreviations
Description
ABET
Adult Basic Education and Training
ATR
Annual Training Report
DBSA
Development Bank of Southern Africa
DHET
Department of Higher Education and Training
ETQA
Education and Training Quality Assurance
FET
Further Education and Training
HET
Higher Education Training
HRDSA
Human Resource Development Strategy for South Africa
HSRC
Human Sciences Research Council
IPAP
Industrial Policy Action Plan
MOU
Memorandum of Understanding
NDP
National Development Plan
NGP
New Growth Path
NQF
National Qualifications Framework
NVC
National Vocational Certificate
NSDS
National Skills Development Strategy
OFO
Organising Framework for Occupations
PFMA
Public Finance Management Act
PIVOTAL
Professional, Vocational, Technical and Academic Learning
QCTO
Quality Council for Trades and Occupations
QES
Quarterly Employment Survey
QLFS
Quarterly Labour Force Survey
RPL
Recognition of Prior Learning
SAQA
South African Qualifications Framework
SETA
Sector Education and Training Authority
SIC
Standard Industrial Classification
SIPs
Strategic Integrated Projects
SMME
Small, Medium and Micro Enterprises
SDF
Skills Development Facilitator
SSP
Sector Skills Plan
STATS SA
Statistics South Africa
WSP
Workplace Skills Plan
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EXECUTIVE SUMMARY
The transport sector plays a central role in the South African economy. It
contributed 2% to Gross Domestic Product in 2011. The sector presently employs
approximately 831 701 people which represents 6% of the national workforce.
Between 2001 and the second quarter of 2013 employment in the transport
sector grew by 17.9%, whilst total labour force employment increased by 9%. This
means the transport sector is an important generator of employment in the SA
economy.
From 2001 to 2008 employment in the transport sector grew steadily from
683 000 to 774 000. This represents an increase of 11.75% in employment. As the
global economic crisis unfolded in 2008, the economy lost 344 000 jobs between
2008 and 2009, whilst the transport sector lost 47 000 jobs. Employment levels in
the transport sector rebounded in the second quarter of 2010, 2011, 2012 and the
second quarter of 2013. The economy gained 916 000 jobs, whilst the gains for the
transport sector was 65 000 jobs.
There is a high density of employees in Gauteng, KwaZulu-Natal and Western
Cape. Collectively, they comprise 74.3% of total employment in the transport
sector.
The government has prioritised the development of the sector for job creation,
social and economic development and the competitiveness of the economy as a
whole.
In 2013, the racial composition of the sector was as follows: Africans (71.9%),
Coloureds (11.2%), Indians (4.3%) and Whites (12.6%). These percentages are
broadly reflective of national demographics. About 79.6% of employed in the
sector are male compared to 20.4% females. There is a need to achieve gender
equality in the sector.
After 19 years of democracy, it is evident that insufficient progress has been made
in transforming the demographic profile of the workforce in the designated sector.
About 47% of top management, 46.1% of senior management and 39.8% of
professionally qualified employees are White males in the sector. In contrast,
19.5% of top management, 12.4% of senior management and 15.1% of
professionally qualified employees are African males in the sector. The above
inequalities in the demographic composition of the sector signals the urgent need
for policy-makers to do considerably more to redress workforce imbalances.
Demographic imbalances also exist between males and females in the workforce
which is characterised by male over-representation in the upper echelons of the
workforce.
There are a number of factors driving change in the transport sector. Some of
these factors are sector-specific, whilst others are non-sector specific.
Reducing emissions is a major challenge to transport companies over the next 20
years. By 2030 systems will be in place to ensure that the cost of carbon is
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allocated to the causer. Whether or not they see it as a business opportunity,
logistics providers will most likely need to reduce, track, document and disclose
their caused CO2 emissions in the future.
Greater numbers of consumers are likely to live in environments which more fully
integrate work, leisure and everyday activities, reducing some of their need for
transport on a day-to-day basis. Business and leisure travel may also decline, as
communication technologies improve and the population ages. Some companies
may take a close look at their business models and consider how they position the
company for the long-term.
The way products get from the assembly line to the consumer is also likely to
change. Logistics service providers will need to cope with different transport
architecture, as transportation networks need to change in response to these
ultra-large transport modes. More bundling efforts will be required, and the modal
split may also be altered. Collaboration is also critical to maintaining flexibility.
Transport operators may profit from developing research projects along the
supply chain, or sharing resources with competitors.
Technological advances will underpin developments in the supply chain. Supply
chains are expected to become more efficient through continuous real-time
control of the flow of goods. Real-time control systems enable logistics service
providers and their customers to monitor and control many business processes
through internet interfaces.
The Public Transport Strategy aims to accelerate the improvement in public
transport by establishing integrated rapid public transport networks (IRPTNs),
which will introduce priority rail corridors and Bus Rapid Transport (BRT) systems
in cities. The essential feature of the Public Transport Strategy is the phased
extension of mode-based vehicle recapitalisation into IRPTNs. Government’s
policy is underpinned by a strong desire to have an integrated public-transport
system.
The demand for crude oil in the coming years is expected to grow at around 10%
per year. With oil from the Mexican Gulf expected to dry up in a decade and
Russian in two decades, it is expected that the oil price will escalate in the future.
This will have a negative impact on the South African economy which imports a
large proportion of its oil.
The occupational composition of the sector is as follows: Managers (15.9%);
Professionals (3.9%); Technicians (5.9%); Clerks (15.6%); Sales and Service (2.7%);
Crafts and Trades (3.8%); Plant and Machinery (38.7%); Elementary (13%). High
skills occupations (Managers/Professionals/Technicians) constitute 26.3%;
intermediate skills (Clerks/Sales and Service/Crafts and Trades) make up 20.6%
and low level skills; (Plant and Machinery/Elementary) comprise 53.1%. A high
percentage of people are in the low skills category (53.1%). There is an
opportunity to move people with low level skills into the intermediate category.
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Likewise there are opportunities for those with intermediate skills to move into
the high skills category with meaningful education and training interventions.
Just 16.4% of people in the sector have a tertiary education; 37.2% have a
secondary education; 34.3 % have not completed secondary education; 5.2% have
not completed primary education and 1.8 % with no schooling. It is necessary for
the sector to improve the proportion of people with tertiary education from 16.4%
to potentially about 25% over the next few years.
Africans are in the majority at elementary, operator, sales, clerical and service
levels which range from low level to intermediate level occupations. Whites are in
the majority of technicians, professionals and managers which comprise advanced
level occupations. This is a characteristic feature of the SA labour market – Whites
mostly dominate the upper end of the occupational spectrum, whilst Blacks
(Indians, Coloureds and Africans located at intermediate and lower levels). For
example, Whites take up 3.4% of technical posts compared with Africans with
2.6%. In March 2011 Whites took up 32% of managerial posts compared with
Africans with 7%.However, in March 2012 Africans took up 7.1% of managerial
posts compared with Whites with 5%. Affirmative Action should be a very high
priority of the skills agenda for the transport industry.
The strategic interventions required in the sector over the next 5 years are as
follows:
 Promote a Decent Work Agenda for employees in the Transport Sector;
 Participation in Strategic Integrated Projects (SIPs)
 Information and career guidance to encourage new entrants to the
Transport Sector;
 Promote and implement Recognition of Prior Learning (RPL) in the
Transport Sector;
 Occupational learning programmes to facilitate access, success and
progression to address scarce skills shortages in the Transport Sector;
 Skills programmes and other non-accredited short courses for the
employed and unemployed;
 Widening access to HET and FET for people who do meet entry
requirements;
 Establish Institutional Sectors of Excellence (ISOE) to deliver learning
programmes;
 Promote corporate environmental sustainability in the Transport Sector;
 Re-curriculating legacy qualifications and development of new
qualifications mapped to scarce skills;
 Addressing youth unemployment and employability;
 Promoting the sector to women;
 Fostering the development of green skills and occupations;
 Developing an SMME strategy for skills development;
 Setting a new skills research agenda;
 Supporting rural development; and
 HIV/Aids interventions.
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CHAPTER ONE: SECTOR PROFILE
1.1 INTRODUCTION
Chapter One profiles the Transport Sector within the wider context of the South
African Economy. It provides an overview of the size and shape of the South
African Transport Sector for the purposes of analysing skills supply and demand. It
outlines the scope of coverage of the Transport Education and Training Authority
(TETA) using Standard Industrial Classification codes (SIC codes). Factors driving
change in the sector with an impact on skills development are discussed. The
chapter also examines the economic performance of the sector. The labour
market context of the transport sector is also provided.
1.2 STAKEHOLDER ENGAGEMENT
Stakeholder participation is integral to the compilation of the Sector Skills Plan.
Widespread consultations were held with key stakeholders in the sector.
Exceptional value was added through the incorporation of focus group and
questionnaire data from stakeholders. The major steps in the research process are
the following:
Review of existing data and information sources
Literature search of studies in the sector
Analysis of industry market reports
Review of workplace skills plans and annual training reports
Annual Reports of employer associations, trade unions and
bargaining councils
Meeting with Board members, SETA Managers and Projects
Committee
Interviews with key informants in the sector
Group discussions with stakeholders
Regional workshops with stakeholders
Revision of the Sector Skills Plan
Presentation of SSP to SETA stakeholders
Approval of SSP with Board
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1.3 SCOPE OF COVERAGE (SIC CODES)
The scope of coverage of TETA in terms of the Skills Development Act 97 of 1998 is
as follows:
Table 1:Demarcation of Standard Industry Classification Codes
SIC CODE INDUSTRY NAME
13100
Ocean and Coastal Fishing
71112
Railway Commuter and Freight Services
71200
Other Land Transport
71211
Urban; Suburban and Inter-urban Bus and Coach Passenger Lines
71212
School Buses
71221
Taxis
71230
Freight Transport by Road
71232
Freight Forwarding and Clearing
71300
Transport via Pipelines
72000
Water Transport
72111
Coastal Shipping
72112
Ocean Shipping
72200
Inland Water Transport
73000
Air Transport
73001
Civil Aviation
74100
Supporting and Auxiliary Activities Air Transport
74110
Cargo Handling
74120
Storage and Warehousing
74134
Operation of Airports, Flying Fields & Air Navigation Facilities
94004
Waste Management
Source: TETA Annual Report 2011/12
The transport sector consists of at least four broad sub-divisions. A sub-division is
defined by modes of transport and encompasses:
Sea
Air
land (road, rail,
pipelines)
(Maritime
& Coastal)
Inter & multi-modal
(passengers, freight,
forwarding and clearing)
The following table classifies the 8 TETA chambers to the different modes of
transport or main activities:
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Table 2: Modal Classification of TETA Chambers
Air
Aerospace
Intermodal/Multimodal
Forwarding & Clearing; Freight Handling
Logistics
Aerospace; Forwarding & Clearing;
Freight Handling; Maritime Rail; Road
Freight; Road Passenger; Taxi
Passenger
Aerospace; Maritime; Rail; Road
Passenger; Taxi
Source: TETA Annual Report 2011/2012
Sea
Maritime
Land
Rail: Road Freight
Road Passenger;
Taxi
Supply Chain Management
Forwarding & Clearing
Freight Handling
Freight
Aerospace Forwarding & Clearing
Freight Handling; Maritime; Rail; Road Freight
The description of the functions of the sub-sectors within the Transport Sector is
captured from SA Online, Pocket Guide to South Africa 2009 for transport, p 120126):
Aerospace
The industry deals with the air transportation of passengers, goods (cargo and air
freight) and mail. This industry has two dimensions, namely, air navigation (aspects
related to physical movement, reliability and safety) and economic control (the right
to convey traffic passengers, mail and cargo by air for reward on a commercial
basis). Air navigation includes the provision and regulation of airports, heliports, air
traffic and air space services as well as the servicing, calibration and maintenance of
equipment. Economic control includes air transportation and activities involving
aircraft; their regulation, operation, design, manufacture, maintenance, repair,
overhaul and testing. The industry is tightly regulated with high barriers to entry
that make it extremely difficult for new operators to enter the sector. As a result,
there are a few large companies that dominate the industry. This dominance could
have a negative impact on the growth and development of the industry as well as a
negative impact on efficiency and cost-effectiveness in the provision of services.
Furthermore, the licensing requirements for professional, technician and trades
workers within the aviation industry impacts on the rate of supply of qualified
individuals.
Forwarding and Clearing
The forwarding and clearing industry is a complex environment of world transport,
international logistics and supply chain management. It plays a crucial role in the
conduct of international trade. Freight forwarders organise the movement of goods
by all modes of transport – shipping, airline, road and rail. The nature of goods and
the customer’s delivery requirements determine the most cost effective and
economical method. Recent operational trends point to an increasingly highly
competitive environment that is not only creating conditions for frequent and
constant mergers and acquisitions, but also the dominance of medium- and large-
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scale companies amid rising security concerns. As a result of the above, coupled
with relatively tough regulations, new economic agents are finding it increasingly
difficult to venture into the sector.
The chamber represents the interests of forwarding and clearing firms; ships‟
agents and brokers; global courier industries; and, importers and exporters. These
constitute the main stakeholders of the growth and development of this industry.
Indeed, the medium- and large-scale firms‟ interests not only dominate most of the
chamber’s activities, but also determine the participation levels depth of the smallscale entrepreneurs.
Freight Handling Industry
The freight handling industry is an integral part of the supply chain management
system and provides a vital support service to industries which span all modes of
transport. This service industry facilitates the storage and stock control of goods
through ports, airports, distribution centres, factories and other depots. The goal of
companies in the subsector is to become globally competitive, customer-oriented
and be the pre-eminent supplier of logistics solutions to customers.
The key players in this industry are companies offering services in cargo handling;
storage and warehousing; transport via pipeline; and port operations. For instance,
the cargo handling industry has well established entities and a sizeable number of
SMEs. The storage and warehousing industry is predominantly, but not entirely,
SMEs. The South African Petroleum Industry members such as SASOL dominate the
pipeline industry. These are the primary clients of Transnet Pipelines.
Maritime Industry
The maritime chamber operates in the environment of ocean and coastal shipping,
ocean and coastal fishing, port activities and associated land-based activities. In this
respect, the industry comprises of three main industries, namely, national ports,
fisheries and merchant marine. Regulations governing these industries vary. The
national ports for instance are tightly regulated making it difficult for new entrants.
These are state owned. The fisheries industry has a significant number of SMME as
well as large enterprises such as I&J and Sea Harvest. The merchant marine has a
huge presence of global players.
The maritime industry is heavily regulated and subject to a number of international
conventions, agreements, treaties and protocols. The value chain of the maritime
industry is quite complex and encompasses: maritime transport supply chain,
shipping, port management, safety and security of coasts and oceans, and marine
environment management. Each point of the value chain is governed by some form
of regulation/convention/protocol. Over and above this the maritime industry is an
integral element of international (global) trade. Over 90% of all international trade
is carried by maritime transport. In excess of 95% of South Africa’s trade is moved
by sea and through the country’s 7 commercial ports. Trade is the life blood of any
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nation’s economic growth and stability, thus making maritime transport essential to
economic development.
Rail Industry
The rail industry is the backbone of the economy as it supports a range of
commodities including goods, passengers and livestock to be transported to various
locations within and outside the country’s borders. The industry also includes the
management of railways and railway services as well as the maintenance and
servicing of rolling stock and locomotives). This industry covers both the commuter
and commercial aspect, and is expected to handle about 176 million tonnes of rail
freight while covering 467 million rail commuter trips annually. The industry
employs over 50 000 employees the majority being in service, sales and
technician/trade worker occupations.
The infrastructure expansion plans of Transnet which run into billions of rands will
obviously be a key driver for skills demand and supply in the rail industry and also in
the transport sector as a whole. The National Freight Logistics Strategy has already
been mentioned as a key driver for skills demand and supply for rail freight, an
element of the integrated freight logistics supply chain. The Integrated Public
Transport Plan of government is another driver for skills demand and supply.
The government has embarked on implementing the Integrated Public Transport
Plan. It has recently allocated about R884 million towards the remodelling and
refurbishment of the rail commuter stations. The recent merger between the
country’s key rail commuter transport provider, the Metrorail and the South African
Rail Commuter Corporation, seeks to increase the economies of scale and improve
efficiencies.
Road Freight
The road freight industry covers both public and private transportation such as
trucks moving freight to and from the airports; to and from rail; and, from pipeline
distribution centres to petrol stations. As an element of an integrated freight
logistics supply chain it is also integral to the implementation of the Freight Logistics
Strategy. The key players in the sector are bulk transport carriers, retail fleets,
removal companies and courier companies. This industry deals with the daily
movement of freight and has recently experienced an increase in the volume of
goods transported between production sites or ports and markets. It is estimated
that 80% of all freight carried out in this country is done by road.
Road Passenger Industry
Road passenger is an in industry in which employers and employees are associated
for the purpose of transporting passengers for a reward using buses and midi buses
only. The industry is integral to the Integrated Public Transport Plan. The industry
has more than 200 000 buses, of which three-quarters are used as public transport.
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These buses transport people and their personal goods to different parts of the
country. The restructuring and transformation of the public transport system into
an integrated multimodal network of public transport will be a critical and key
driver for skills demand and supply in the industry.
Taxi Industry
The Department of Transport estimates the number of taxis on the road to be at
120 000, based on the number of taxi permits it has issued, while industry
organisations estimate there are between 150 000 and 200 000 taxis. The scope of
this sector includes the control and management of such vehicles. The industry
estimates that about 38% of the population use public transport, of which 65, 14
and 12% use taxis, commuter trains and buses respectively. Due to the significant
economic importance of this industry to socio-economic development, traffic
authorities have prioritised redressing safety on our roads and ensuring the use of
reliable road worthy vehicles.
The industry employs people some of whom have no formal education. Furthermore, of
late there have been negative reports with regard to the misbehaviour of some of the
drivers and rank marshals as well as number of accidents. Indeed, the rude and gender
unfriendly behaviour by some of the drivers and rank-marshals at some of the ranks has
attracted national condemnation across the country and subsequent multi-sectoral
stakeholders public demonstration. Such negative developments call for informal
customer-oriented education and skills training programmes in addition to addressing
short- to medium-term scarce and critical skills requirements.
1.4 PROFILE OF THE TRANSPORT SECTOR
The transport sector plays a central role in the South African economy. It is a
cross-cutting sector and thus has a major influence on other sectors and the wellbeing of the national economy.
The country’s size means an efficient transport system is essential to manoeuvre
people and goods around the interior and for transit to seaports and airports for
international connections. Global links are important as the country is at the
southern tip of the continent and therefore a vast distance from large European
and North American markets. However, this location is also an advantage as South
Africa is a conduit for trade within a regional bloc.
There are no rivers that are navigable for anything other than short distances.
Accordingly, domestic transport is dependent on road and rail networks,
supplemented by air and shipping links with external markets.
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1.4.1 Key Features of the Transport Sector
The transport sector is experiencing robust infrastructure investments to meet the
needs of a growing economy. There are considerable public investments in the
transport sector which is taking place through TRANSNET and SANRAL.
Government is also in support of public-private sector partnerships to raise capital
for expansion of the transportation system.
Since transport is a fundamental pillar of a modern economy, the sector requires
workers who have the requisite skills to create value in their work. In order to
succeed in a highly competitive global market, it requires a high level of education
and skills development.
Some of the key features of the sector are the following (SAIRR 2013):
Sector contributes 8.2% of GDP.
•
Consists of 831 701 employees and 6% of national
employment
Road & rail industry had total revenues of $29.4 billion and
growth of 6.3% between 2007 and 2011.
The Road Freight segment contributes 91.8% of the industry's
overall value and Rail Freight 8.2%.
SA government is expected to invest more than R14.5bn
(US$1.96bn) on development of integrated rapid public transport
networks (IRPTNs).
Transnet announced its capital expenditure plans for the next five
years of ZAR93bn.
Aerospace grew by 16.3% to reach a value of $4.1 billion.
Domestic airlines accounts for 72.6% of the industry's total
volume.
Contribution maritime transport per se and its supporting
services is small for the economy
Page 17 of 97
It is estimated that the transport sector for the period 2010-2014, will expand on
par with the economy as a whole at an annual average rate of 3.3%.
South Africa’s major ports in Cape Town, Port Elizabeth, East London, Durban,
Saldanah Bay and Richards Bay are positioning themselves to become oil and gas
hubs. Richards Bay was originally devised as a coal terminal, but is developing into
a multi-modal transhipment port with a dry dock and container facilities.
Combining all factors, freight volume across the different modes, measured in
million tonnes-km, will rise by an annual average of 4.1% in the 2010-2014
forecast periods (Business Monitor International, 2012).
LABOUR MARKET CONTEXT
This section analyses the particular labour market context for the sector. It
provides vital employer and employee information on the sector. It is important to
note that data on the size and shape of the labour market in the transport sector
is notoriously scarce.
First, a significant number of employers and employers such as the taxi industry
are operating in the informal sector and therefore not captured in national
accounts. The taxi industry accounts for 65 percent of all public transport while
buses and trains account for 21 and 14 percent respectively. This industry provides
the main form of public transport in the country. The largest group of workers is
drivers. In addition to drivers, there are queue marshals, car washers and
administrative workers. In some parts of the country there are also fare collectors.
About 95% of workers in the taxi industry are African. Less than 2% are women.
Many of the women do administrative work for the taxi associations. Very few
drivers are self-employed. Most work for a taxi owner and are paid wages.
However, very few taxi owners have a formal written contract of employment
(International Labour Organization 2003, second impression 2004).
Second, a large number of employees are working in the formal sector in atypical
forms of employment and go unrecorded. Third, a number of employers are not
registered with the South African Revenue Services (SARS) or the National
Bargaining Councils. Fourth, a number of employees are not registered to pay
skills levies because they are exempted or simply do not pay levies. And fifth, in
some sub-sectors employers may be operating illegally.
In addition, employer bodies and trade unions are not compiling reliable
employment and employee data in the form of reports. The TETA database is also
problematic as a result of poor participation rates in the levy grant system by
employers and incorrect information on the SARS database. Therefore the most
reliable statistics on the transport sector as a whole is contained in the Quarterly
Labour Force Survey (QLFS) and Quarterly Employment Survey (QES) published by
Statistics SA.
Page 18 of 97
1.5.1 Employment by Industry and Sector
The table below situates the transport sector within the broader South African
economy. It provides formal and informal employment data across 10 sectors.
The table reveals the following (STATSSA QLFS 2013, 2nd Quarter):
Table 3: Employment by Industry and Sector
Industry
Formal
Informal
Total
711 910
Agriculture
372 120
1 520
373 640
1 520 563
214 588
1 735 151
Utilities
112 907
1 628
114 534
Construction
748 595
334 031
1 082 626
1 922 190
983 319
2 905 509
626 078
205 622
831 701
Finance
1 677 146
140 913
1 818 059
Community and Social
Services
2 711 639
338 138
3 049 777
Mining
Manufacturing
Trade
Transport
1 092 948
Private Households
Other
2 847
628
Total
Source: Stats SA Quarterly Labour Force Survey, Quarter 2, 2013





3 475
13 719 330
There are 13 719 330 people employed in SA;
The transport sector employs 831 701 people comprising 6% of the total
labour force;
75.3% of people in the transport sector are in formal employment, whilst
24.7% are in informal employment;
The majority of employees (75.3%) in the sector are employed on a formal
basis; and
However, there is a growing trend of informalisation in the sector.
Table 4: Employment in Transport Industry and Total Employment 2001-2013
Year
Transport Industry
Total Employment
2001
683
12 494
2005
705
12 769
2008
774
13 713
2009
727
13 369
2010
767
12 803
2011
776
13 123
2012
783
13 421
2013
832
17 719
Stats SA, Quarterly Labour Force Survey, Quarter 2, 2010
Stats SA, Quarterly Labour Force Survey, Quarter 2, 2011
Stats SA, Quarterly Labour Force Survey, Quarter 1, 2012
Stats SA, Quarterly Labour Force Survey, Quarter 2, 2013
Page 19 of 97
The number of informal employment in the transport sector presents TETA with
the challenges of finding ways to promote skills development and encouraging
formalisation in the sector by supporting a Decent Work Agenda.
One of the key challenges facing the South African economy is to create sufficient
jobs on a sustained basis for a growing labour force. The significant number of
people in the transport sector in informal employment suggests that this sector
also acts as an absorber of labour for those who have lost their jobs in formal
employment. In such instances, retrenched workers can pursue unskilled and
semi-skilled jobs in the transport sector.
1.5.2 Transport Sector Employment
The table below provides employment figures for the transport sector as a
proportion of total employment in the economy between 2001 and 2nd quarter of
2013.
From the above table the following can be deduced (STATSSA QLFS 2013, 2nd
Quarter):




Between 2001 and 2012 employment in the transport sector grew by
12.7%, whilst total labour force employment increased by 6.9%. This
implies that the transport sector is an important generator of employment
in the SA economy;
From 2001 to 2008 employment in the transport sector grew steadily from
683 000 to 774 000. This represents an increase of 11.75% in employment.
As the global economic crisis unfolded in 2008, the economy lost 344 000
jobs between 2008 and 2009, whilst the transport sector lost 47 000 jobs;
In 2010, employment levels in the economy declined by 566 000 jobs while
the transport sector gained 40 000 jobs; and
Employment rebounded from the second quarter of 2011 to the second
quarter of 2013. The economy gained 4 596 000 jobs, whilst the gains for
the transport sector was 56 000 jobs in 2013.
The transport sector is sensitive to economic gyrations as it is integrally linked with
the fortunes of other sectors, but it has the propensity to reverse job losses
quickly. TETA should therefore explore job creation opportunities in the sector,
particularly for unskilled and semi-skilled people.
Page 20 of 97
1.5.3 Employment by Sub-Sector in Transport
The table below provides information on sub-sectors within the transport industry
in terms of formal and informal employment.
Table 5: Employment by Sub-Sectors in Transport Industry, 2013
Transport
Formal
Informal
Totals
Percent
Railway transport
86 676
1 325
88 001
11%
Other land transport (Road)
289 736
191 882
481 618
58%
Sea and coastal water transport
5 858
0
5 858
1%
Air transport
Supporting and auxiliary
transport activities (travel
agencies)
Postal and related courier
activities
Telecommunication
30 705
149
30 854
4%
78 239
5 574
83 813
10%
47 359
87 506
1 513
5 179
48 871
92 685
6%
11%
Total
626 078
205 622
831 701
100%
Source: Stats SA, Quarterly Labour Force Survey, Quarter 2, 2013. The above figures are rounded off.
According to the table above (STATSSA QLFS 2013, 2nd Quarter):





Railway transport employment comprises 11% of the sector;
Road transport 58%;
Sea transport 1%;
Air transport 4%; and
Supporting and auxiliary activities (Cargo handling, storage and
warehousing, other supporting transport activities, travel agency and
related activities, and activities of other transport agencies) 27%.
1.5.4 Employment by Province
The table below provides employment figures in the transport sector by province
(STATSSA QLFS 2013, 2nd Quarter):
Table 6: Employment in Transport Industry by Province, 2013
Table 7: Employment in Transport Industry by Province, 2013
Province
Employees
Western Cape
117 045
Eastern Cape
70 204
Northern Cape
14 663
Free State
34 115
KwaZulu-Natal
190 076
North West
23 423
Gauteng
310 705
Mpumalanga
39 207
Limpopo
32 264
Total
831 701
Source: Stats SA, Quarterly Labour Force Survey, Quarter 2, 2013.
Page 21 of 97
The table above reveals the following (STATSSA QLFS, 2nd Quarter 2013):





There is a high density of employees in Gauteng, KwaZulu-Natal and
Western Cape. Collectively, they comprise 72.3% of total employment in
the transport sector;
Although KwaZulu-Natal has a high density of employees, there has been a
slight decline from 2012;
It is evident that considerable attention should be given to employers and
employers in these high density provinces;
While Northern Cape, Eastern Cape and Free State have lower
employment numbers, due to being considered as rural provinces with
relatively limited economic activity than the urban provinces, there has
been an increase in employment from 2012. Although the increase is
gradual, it is beneficial to the provinces and the economy on the whole;
Mpumalanga, Limpopo and North West province have seen a decline in
employment from 2012.
It is essential that adequate skills provision exists for provinces with low
employment numbers. There is a need for TETA to align skills development
interventions to local economic development needs of particular provinces. This
requires TETA to analyse and understand the provincial labour markets and
economies. Training interventions may vary from province to province based on
local needs.
1.5.5 Transport Sector Enterprises by size and province
The table below provides figures on the number of enterprises in the transport
sector by size and province.
Table 8: Number of Enterprises in Transport Sector by Size and Province
REGION
Eastern Cape
Free State
Gauteng
KwaZulu Natal
Limpopo
Mpumalanga
North West
Northern Cape
Western Cape
Northern Province
Other
GRAND TOTAL
Source: TETA WSP 2013
0-49
769
462
5396
2578
13
1032
333
175
2951
193
67
14747
50-149
20
15
205
91
2
23
5
5
83
6
150+
14
8
203
62
455
374
11
7
66
3
Grand Total
803
485
5804
2731
15
1066
345
180
3100
202
67
15576
The table above reveals the following (TETA WSP 2013):

In the category 0-49 employees, Gauteng has the largest number of
enterprises, followed by Western Cape, KwaZulu Natal and Mpumalanga.
Page 22 of 97



The same is for the category 50-149 employees. Gauteng has the largest
number, followed by KwaZulu Natal and Western Cape. However, in
comparison, the number of enterprises in these provinces is much lower.
In total, Gauteng has the largest concentration of transport enterprises,
followed by Western Cape and KwaZulu Natal. This is due to the high
concentration of business activities and employees in Gauteng.
The other provinces have fewer enterprises due to being considered as
rural provinces with relatively limited economic activity.
1.5.6 Transport Sector Enterprises by size and chamber
The table below provides figures on the number of enterprises in the transport
sector by size and chamber.
Table 9: Number of Enterprises in the Transport Sector by Size and Chamber
CHAMBER
Aerospace
Freight forwarding
and clearing
Freight handling
Maritime
Rail
Road Freight
Road Passenger
Taxi
Unknown
(Blank)
GRAND TOTAL
Source: TETA WSP
0-49
40
50-149
16
150+
28
79
39
34
152
144
66
18
255
45
66
14
14020
14747
26
27
2
144
13
2
46
13
16
105
27
1
1
103
374
216
106
36
504
85
69
15
14309
15576
186
455
Grand Total
84
The table above reveals the following (TETA WSP 2013):





The road freight chamber has the highest number of enterprises in all
three categories. This is due to considerable movement of freight on South
African roads.
The transport sector is in the process of planning movement of road freight
to rail for purposes of limiting road damage and ensuring safe and quick
transport of freight.
The freight handling chamber has the second highest enterprises in the 049 category.
Forwarding and clearing, maritime and road passenger and aerospace
chambers have a spread of enterprises across all three categories.
The taxi and rail chambers have a very limited number of enterprises.
Page 23 of 97
1.5.7 Employment by Race, Gender and Disability
The table below provides a breakdown of employment in the transport sector by
race group and gender between 2012 and 2013.
Table 10: Employment by Race and Gender, 2012-2013
2nd Quarter 2012
2nd Quarter 2013
%
change
Male
482 862
502 770
4.0%
Female
94 289
95 159
0.9%
577 151
597 929
3.5%
Male
55 714
66 101
15.7%
Female
16 839
26 791
37.1%
72 553
92 892
21.9%
Male
25 041
26 856
6.8%
Female
6 587
9 129
27.8%
31 628
35 984
12.1%
Male
72 860
66 312
-9.9%
Female
36 849
38 582
4.5%
Total
109 709
104 895
-4.6%
TOTALS
791 040
831 700
4.9%
Population group
Gender
African/Black
Total
Coloured
Total
Indian/Asian
Total
White
Source: Stats SA, Nesstar, QLFS, 2nd Quarter, 2012 & 2013
In terms of racial and gender breakdown in the transport sector, the following can
be deduced (STATSSA QLFS 2nd Quarter 2012/2013):





In 2013, the racial composition of the sector was as follows: Africans
(71.9%), Coloureds (11.2%), Indians (4.3%) and Whites (12.6%). These
percentages are broadly reflective of national demographics;
About 80% of employed in the sector are male compared to 20% females.
There is a need to achieve gender equality in the sector. TETA should
encourage more females into the sector by encouraging and supporting
skills development, particularly in areas where females are lacking in terms
of representivity;
Employment for Blacks, Indians and Coloureds actually increased between
2012 and 2013 (2nd quarter), whilst employment for Whites declined;
There was a 37.1% increase in employment for Coloured females, followed
27.8% for Indian/Asian females, 4.5% for Whites females and 0.9% for
African females between 2012 and 2013. There was an overall increase in
employment for females between 2012 and 2013.
African males made up 60% of the labour force in 2013(2nd quarter), whilst
the percentage for African females was 11%. The under-representation of
African females should be addressed by TETA through skills development.
Page 24 of 97
The table below gives a 6 year comparison of gender in the transport sector. It
provides information on whether the sector is making progression in redressing
gender imbalances.
Table 11: Employment in Transport Industry by Gender, 2008-2013 (000')
Gender
Male
2008
602
2009
569
2010
593
2011
621
2012
621
Female
Total
172
774
156
757
173
767
167
788
162
783
2013
662
170
832
Source: Stats SA, Labour Force Survey, Historical Revision March Series 2001 to 2007;
4th
Stats SA, Labour Market Dynamics in SA 2008; Stats SA, QLFS, 2010; Stats SA, QLFS,
st
nd
Quarter, 2011; Stats SA, QLFS, 1 Quarter 2012 and Stats SA 2 Quarter 2013.The
above figures are rounded off
The table reveals the following (refer above for sources):

Females comprised 22% of the labour force in 2008, 21% in 2009, 22.5% in
2010, 19% in 2011, 20.5% in 2012 and 20.4% in 2013.
Males comprised 78% of the labour force in 2008, 79% in 2009, 77.5% in
2010, 81% in 2011, 79% in 2012 and 79.5% in 2013.
In essence, the gender composition of the labour force is static.
There has been very little progress with improving female participation in
the sector.
TETA needs to craft interventions to encourage females to enter
professions in the sector, particular for African females whom are underrepresented.




The table below provides employment information on the transport industry by
age and gender for 2013.
Table 12: Employment in Transport Industry by Age and Gender
Age Group
15-24 yrs
25-34 yrs
35-44 yrs
45-54 yrs
55-64 yrs
Total
Male
48 550
222 767
201 964
121 198
67 561
662 040
Female
13 253
61 853
66 221
21 619
6 715
169 661
Total
61 803
284 620
268 185
142 816
74 276
831 701
Source: Stats SA, Nesstar, QLFS, Quarter 2, 2013
The above table reveals the following (STATSSA QLFS 2nd Quarter 2013):



Youth aged between 15 and 34 comprise 47.7% of employees in the sector;
Most employees, 284 620, are in the 25 and 34 years age bracket old;
Given that the majority of the employees are younger than 40 years, it
becomes more feasible to invest in education and training;
Page 25 of 97



There is also an opportunity for continuity in the sector;
TETA needs to focus on youth development in the form of coaching,
mentoring, succession planning training in order to prepare young people
for better position in the sector; and
It is also evident there is an under-representation of females in the sector
with only 20.4% comprising females.
The discussion below will focus on the age and gender breakdown for high and
low skilled employees in the transport sector.
The table below provides data on the transport industry’s high-skilled workforce
by age for 2013:
Table 13: High-Skilled Workforce by Age
Occupational Class
U35
U55
O55
Total
Manager
5079
14647
2819
22 545
Professional
4301
5482
1337
11120
Technicians
12466
15986
3893
32345
Total
21 846
36 115
8049
66010
Source: TETA WSP 2013
The above table reveals the following (TETA WSP 2013):



Most high-skilled employees are in the U55 age category and make up
54.7% of the total workforce. Managers make up 65%, Professionals 49.3%
and Technicians 49.4%;
The U35 category makes up 33.1% of employees in the high-skilled
workforce. Managers make up 22.5%, Professionals 38.7% and Technicians
38.5%;
Given that a relatively large number of employees are U 35, it becomes
more feasible to invest in education and training for this age group with a
view of creating an opportunity for continuity in the sector.
Further, TETA needs to focus on youth development in the form of coaching,
mentoring and succession planning
The table below provides data on the transport industry’s low-skilled workforce by
age for 2013 (TETA WSP 2013):
Page 26 of 97
Table 14: Low-Skilled Workforce by Age
Occupational Class
U35
U55
O55
Total
Clerical
19588
17670
3060
40318
Elementary
38273
27731
7415
73419
Plant
34013
44880
11144
90037
Service
10109
9881
1619
21609
Total
101 983
100 162
23 238
225 383
Source: TETA WSP:2013






Most low-skilled employees are in the U35 age group and make up
45.2% of the sector;
In the U35 group, Clerical makes up 48.6%, Elementary 52.1%, Plant
37.8% and Service 45.2%;
The U55 group which makes up 44.4% of the sector, only had a higher
percentage in the Plant occupational class, 50% compared to the 37.8% for
the U35;
There is a very small percentage of employees in all 4 categories for the
O55. Clerical makes up 7.6%, Elementary 10.1%, Plant 12.4% and Service
7.5%;
Given that a relatively large number of low-skilled employees are U 35, it
becomes feasible to invest in education and training so as to create an
opportunity for progression amongst this age group.
There is also an opportunity for continuity in the sector.
The table below provides data on the transport industry high-skilled workforce by
gender for 2013:
Table 15: High-Skilled Workforce by Gender
Occupational
Class
Male
Female
Disabled
Total
Manager
16480
6065
95
22640
Professional
7091
4029
54
11174
Technicians
19896
12449
165
32510
Total
43 467
22 543
314
66324
Source: TETA WSP:2013

From the table above (TETA WSP 2013), it is evident that demographic
imbalances exist between males and females in the workforce which is
Page 27 of 97



characterised by male over-representation in the upper echelons of the
workforce. It must however be borne in mind that the transport sector by
its nature will be dominated by males;
Males make up 72.8% of managers, 63.5% of professionals and 61.2% of
technicians;
In contrast, females make up 26.9% of managers, 36% of professionals and
38.3% of technicians and
The disabled group also has representivity in the highly-skilled workforce.
The Table below provides data on the transport industry low-skilled workforce by
gender for 2013:
Table 16: Low-Skilled Workforce by Gender
Occupational Class
Clerical
Elementary
Plant
Service
Total
Male
20411
63494
80557
12910
177 372
Female
19907
9925
9480
8699
48 011
Disabled
297
61
131
15
504
Total
40615
73480
90168
21624
22 5887
Source: TETA WSP:2013





As in the high-skilled workforce, demographic imbalances also exist
between males and females in the low-skilled workforce, where there is
over-representation of males. It must however be borne in mind that the
transport sector by its nature will be dominated by males;
Males make up 51% of Clerical, 86.4% of Elementary, 89.3% of Plant and
60% of Service;
In contrast females make up 49% of Clerical, 13.5% of Elementary, 10.5% of
Plant and 40% of Service,
There is only a fair gender distribution in the clerical occupation, which by
its nature is largely female dominated in many sectors and
Disabled employees make up 1.2 % of the transport sector.
Figure 1: Proportion of Disabled Employees
Transport Sector
Abled Bodied 98.8%
Disabled, 1.2%
Source: TETA Database 2013
Page 28 of 97
From the figure it is clear that there is a need for TETA to encourage firms to
increase the proportion of employment and training for the disabled.
1.5.8 Employment Equity
The figure below provides data on the transport industry high-skilled workforce by
race for 2013:
Figure 2: High Skilled Workers by Race
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
White
Coloured
Indian
African
Manager
Professional
Technicians
Source: TETA WSP: 2013





After 19 years of democracy, it is evident that insufficient progress has
been made in transforming the racial profile of the workforce in the
designated sector;
Approximately 53.2% of Managers, 63.1% of Professionals and 60.1% of
Technicians are Whites in the sector;
In contrast, 30.1% of Managers, 42.1% of Professionals and 40.1% of
technicians are African in the sector;
The above inequalities in the racial composition of the industry signal the
urgent need for policy-makers and role-players to do considerably more to
redress workforce imbalances.
TETA also needs to play a far more active role in supporting Blacks
(Africans, Coloureds and Indians) acquire high level skills to take up
positions in the upper band of the occupational structure.
In addition, succession planning, mentorship and coaching should be given top
priority by TETA to support Blacks in the industry.
The figure below provides data on the transport industry low-skilled workforce by
race for 2013:
Page 29 of 97
Figure 3: Low Skilled Workforce by Race
100%
80%
White
60%
Coloured
40%
Indian
20%
African
0%
Clerical
Elementary
Plant
Service
Source: TETA WSP: 2013
The following is evident from the above figure:

Insufficient progress has been made in transforming the racial profile of
the low-skilled workforce in the designated sector;
Approximately 57.8% of Clerical, 82.3% of Elementary, 80% Plant and
65.1% of Service positions are occupied by Blacks in the sector;
In contrast, approximately 11.1% of clerical, 2.1% of elementary, 8.2%
plant and 10.1% of Service positions are occupied by Whites in the sector;
The above inequalities in the racial composition of the industry signal the
urgent need for policy-makers and role-players to do considerably more to
redress workforce imbalances.



In addition, succession planning, mentorship and coaching should be given top
priority by TETA to support Blacks in the industry.
1.5.9 Terms of Employment
The table below provides an indication of the terms of employment in the
transport sector compared to total employment for all sector in the labour
market.
Table 17: Terms of Employment
Industry
Transport, storage and
communication
Totals
Not applicable Limited duration Permanent Unspecified Total
duration
140 224
2 051 707
60 677
1 640 592
426 749 204 050
7 348 432 2 680 193
831 701
13 720 924
Source: Stats SA, Quarterly Labour Force Survey, Nesstar, Quarter 2, 2013
The above table suggests the following (STATSSA QLFS 2nd Quarter):

Roughly 51.3% of the transport sector are in permanent employment
compared to the national figure of 53.5%;
Page 30 of 97


About 7.3% of the transport sector are in limited duration (fixed term
contracts) compared to 12% for all sectors;
About 24.5% of the transport sector are in unspecified duration (casual
employment) compared to 19.5% for all sectors;
Although these figures suggest a strong degree of formalization, there has been an
increasing trend towards informalisation and atypical forms of employment in the
sector and in this respect, TETA needs to encourage Decent Work for all in the
sector. This could be achieved by supporting the Decent Work Programme of the
International Labour Organisation.
ALIGNMENT WITH NATIONAL STRATEGIES
The skills development imperatives of the Transport SETA are derived from, and
incorporated into, national skills development strategies and plans from national
government departments. The strategic framework of TETA addresses these
priorities in chapter five of this document.
The following activities contained into national strategies and plans relate directly
to the transport sector:
NATIONAL SKILLS
ACCORD
Commitment 1:
To expand the level
of training using
existing facilities
more fully
Commitment 2:
To make internship
and placement
opportunities
available within
workplaces
Commitment 3:
To set guidelines of
ratios of trainees:
artisans as well as
across the technical
vocations, in order to
improve the level of
training
IPAP 2
2011/12 will
focus on
continuity and
implementation
of strategies and
KAPs identified in
IPAP 2 2010/11
Stronger
alignment between
IPAP sector
strategies and skills
development
system required
There must be
engagement with
DHET to introduce
sector specific
programmes
derived from
strategies
STRATEGIC
INTEGRATED
PROJECTS (SIP)
SIP 2:
Durban, Free State and
Gauteng logistics and
industrial corridor
SIP 3:
South Eastern node
and corridor
development
SIP 4:
Unlocking the
economic
opportunities in
North West Province
SIP 5:
Saldanah-Northern
Cape corridor
development
NEW GROWTH
PATH
Emphasis on decent
work
Skills enhancement
Small enterprise
development
Measures to
address HIV/AIDs
Expansion of rail
transport
HRDSA
Ensure that skills
development
programmes are
demand-led
through
Substantive and
systematic input
from employers in
the determination
of skills demands
for the country
Address shortfalls in
artisanal and
technical skills
SETA co-finance
training for 10% of
the workforce
annually
NSDS III
Page 31 of 97
DRIVERS OF CHANGE
There are numerous forces driving change in the transport sector. This chapter
highlights four major factors impacting on the sector and causing it to change in a
particular way. Change drivers have direct implications for TETA.
1.7.1 Decent Work
The Department of Economic Development has placed the creation of Decent
Work at the centre of economic and social policies. According to the New Growth
Path Framework (2010) there is growing consensus that creating decent work,
reducing inequality and defeating poverty can only happen through a new growth
path founded on a restructuring of the South African economy.
Facts
 SA has a very high unemployment rate is around 25%.
 4 in 10 adults are employed and 5 people depend on the income of every worker.
 Only 12.7 million people have jobs, 5 million pay taxes and 13.8 million are on welfare
grants.
 2/3s of working people earn less than R1 000 per month.
 Share of wages dropped from 50% in 1994 to 45% in 2009, whilst profits increased from 40%
to 45%.
 40% of national income goes to10% of richest households.
 5 million jobs needed by 2020 to halve unemployment from 25% to 15%.

 2.9 million man days were lost in strikes in 2009.
 Trade union membership of employees dropped from 45% in 1994 to 20% in 2009.
Issues
 Creating Decent Work is at the heart economic policy to fight poverty, inequalities and
rural underdevelopment.
 Promoting international labour standards, social security, worker rights, training
opportunities, social dialogue and tripartism in the workplace.
 Protecting vulnerable workers, supporting employment equity, ensuring health and safety
on the job and assisting workers in finding employment and training opportunities.
Skills Development Priorities
 Training programmes to promote Decent Work outcomes, particularly in the Taxi
Industry.
 Awareness campaigns and capacity-building initiatives for social partners.
 Toolbox for enterprises.
 Transport Sector Programme for Decent Work aligned to country programme.
 Monitoring, measuring and evaluation of Decent Work.
 Strengthening and involving social partners and social dialogue.
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1.7.2.
GREENING THE TRANSPORT SECTO
1.7.2 Greening the Transport Sector
Businesses are striving to be more conscious when it comes to the environment.
Increased legislation is driving the demand for eco-compliance. Businesses now
have to show that they are environmentally friendly in their business processes
and in the products they offer.
Facts





SA produces 1% of the world’s emissions, yet its emissions intensity is second to China.
South Africa pledged to cut carbon emissions by 34% by 2020.
Climate Change management is a ‘key driver’ of business sustainability.
Effective governance, management and execution of Corporate Climate Change.
The New Growth Path for South Africa targets 300 000 additional direct jobs by 2020 to
green the economy.
 The advantages of cheap energy – coal – have become a competitive disadvantage.
 The New Growth Path targets 300 000 additional direct jobs by 2020 to green the
economy
Issues
 Emerging green economy has created skills needs in response to climate change and the
issue of sustainable resource usage.
 Sustainable use and management of natural resources is a national priority outlined in
the Medium Term Strategic Framework.
 Develop green skills and jobs to response to changing market needs.
 Pro-environmental measures in all sectors of the economy.
 Stronger programmes, institutions and systems to diffuse new technologies to SMEs and
households.
 Promoting Decent Work in a sustainable, low carbon world.
 Involving social partners in greening the labour market.
Skills Development Priorities







Promoting a business case for greening the transport sector.
Greening of all enterprises and funding of new emerging of jobs.
Skills programmes to green existing jobs.
Toolkit for greening enterprises.
Funding programmes to encourage businesses go green.
Code of conduct and benchmarks for environmentally sustainable practices.
Learnerships, bursaries and skills programmes for green occupations.
Page 33 of 97
1.7.3 Small Enterprise Development
The promotion of entrepreneurship and small business remains an important
priority of the government of South Africa. The New Growth Path Document
(2010) and the Department of Trade & Industry’s Integrated Strategy on the
Promotion of Entrepreneurship and Small Enterprises (1998) explore ways to
ensure that SMMEs progressively increase their contribution growth and
performance of the South African economy in critical areas such as job creation,
equity and access to markets.
Facts
 Small businesses have been identified as key in driving South Africa’s economic growth.
 32% of small business owners provide between 1 and 10 employment opportunities per small
business.
 Service-related small businesses are more likely to provide employment opportunities than
other small businesses.
 5.6 million small businesses provide an additional estimated 6 million employment
opportunities.
 76% of small business owners were unable to name any organisation that advises small
businesses.
 94% small business owners have never used any support organisations.
 SANRAL spent R2.5 billion on SMMEs, of which R1.8 billion went to black-owned businesses.









Issues
Improving regulatory environment for ease of doing business.
Small enterprise business development.
Advocacy and a voice for small business on national platforms.
Employer organisations for small business.
Decent Work for employees in small businesses.
Skills training for small business owners and employees.
More effective support measures for small businesses.
Integrating small business into formal supply chains.
Creating demand for small enterprise products and services.
Skills Development Priorities









Fostering entrepreneurship culture.
Skills training, learnerships and bursaries for small business employees.
Strengthening enterprise networks.
Providing necessary support incentives.
Improving small enterprise competencies and delivery capacity.
Coaching and mentoring of business owners.
Providing training in entrepreneurship, skills and management.
Improving industrial relations and the labour environment.
Facilitating access to appropriate technology
Page 34 of 97
1.7.4 Strategic Integrated Project (SIP)
Strategic Integrated Project (SIP) is a twenty year planning framework to coordinate a myriad of state infrastructure projects in 17 integrated projects to
prevent stop-start patterns of development.






Facts
New Growth Path (NGP) targets the creation of 20 million jobs by 2020; identifies
structural problems in the economy and points to opportunities in specific sectors and
markets.
The first driver is infrastructure – laying the basis for job creation, economic growth and
inclusivity.
SIP is aligned to skills development and human settlement planning as cross-cutters.
The Transport Sector is a cross-cutter, but there will be a focus on road, rail, ports and
logistics.
All SIP have implications for the Transport Sector.
There is an acute need for large-scale skills training in the taxi industry.
Issues







Transport provides the good opportunities for job creation.
There is a need for TETA to work with SIP co-ordinators closely.
There is a need to identify skills supply and demand for SIP and determine skills gaps.
TETA should scale up its internal operations to focus on SIP.
Discretionary projects should “talk” to SIP.
Special measures should be taken by TETA to draw youth into SIP.
Strategic Plan and SSP should incorporate SIP priorities.
Skills Development Priorities






Bigger focus on learnerships and apprenticeships for youth.
Focus on high end skills development programmes.
Management training and development is vital because of weak implementation by state.
TETA should identify SIP projects to participate.
There should be a focus on RPL, ESDAs and bursary schemes.
Dialogue with SIP partners.
Page 35 of 97
1.7.5 Southern African Rail Network
A heavy haul network stretching from Botswana through Zimbabwe and into
Mozambique and Malawi could prove a game changer in regional logistics and
exports for SADC. The proposed 1100km southern African rail network, which has
many links to it, will have huge downstream spin-offs for the region.
Facts





The project is to begin in 2012 at an expected cost of $7 billion and will take 10 years.
The main funders are the World Bank, IMF, IFC and mining companies.
Transnet is under fire from the private sector for its operational inefficiencies of its rail
network and bottlenecks at ports
Growth is the mining sector is being stymied by unreliable rail networks.
Mining companies can move 90 million tons of coal through Richards Bay but Transnet
can only support 60 million tons on its rail network.
Issues






This project provides the good opportunities for job creation.
The mega rail and port is likely to reduce the reliance on freight and road networks.
The project has the potential to inject economic growth in rural regions of SADC.
There will be a need for all levels of skills – low, middle and high – for this project.
There will be spin-offs for other industries in the economy.
TETA needs to position itself for this project.
Skills Development Priorities





Better strategies for skill development will assist in developing more creative career
pathways.
Increasing use of new technologies is a primary driver of the need for training of all
categories of employees.
Management training and development is vital for employers as most enterprises in the
transport sector are micro and small.
TETA should encourage employees and enterprises to move up the value chain.
Higher order skilling is key to the future of transport.
Page 36 of 97
1.7.6 HIV/AIDS
The impact of HIV/AIDS remains a core underlying focus area of the majority of
government initiatives as it has direct impact on the productivity, morale and skills
of the people in the country. It is imperative for the transport sector to assess the
impact of HIV/AIDS on the sector in order to determine the skills development
needs and initiatives of the sector.
Facts




South Africa’s population of 50 million has an estimated HIV prevalence rate of 10.6% which is 5.2 million people who are HIV positive.
The highest prevalence rates among 15-49 year olds in KwaZulu Natal is (25.8%),
Mpumalanga (23.1%), Free State (18.5%) North West (17.1%) and Gauteng 15.2%.
The prevalence rates amongst Africans is13.6%, 03% for Whites, 1.7% for Coloureds, and
0.3% for Indians.
The most at risk population has a prevalence rate of African females (20-34 years) 32.7%
and African males (25-49 years) 23.7%.

Risk factors include ‘living in informal settlements, urbanizing areas of rural districts and
transport

 Issues
corridors’

The diversity of the transport sector must be remembered when planning skills
development initiatives.
 Due to the high degree of mobility the focus on HIV/AIDS needs to include not only the
direct workforce but also the communities which they come in contact with.
Risk factors
include
in informal
urbanizing interventions
areas of rural districts,
and take into
 Due
to the‘living
industry
being settlements,
very male dominated,
do not often
account the gender component of HIV/AIDS.
 HIV positive workers still face high levels of stigma and discrimination at work.
 Making ARVs available at the workplace or providing time to access it will see increased
attendance at work.
Skills Development Priorities

Develop a regional transportation policy framework which would provide the basis on which
workplace programmes and initiatives could be based.
 Workplace specific policies need to be put in place.
 Develop, implement, monitor and evaluate workplace programmes.
 Create a holistic service provision where possible – this includes a wellness focus, behaviour
1.8. CONCLUSION
change, peer education, and prevention strategies.
Page 37 of 97
CONCLUSION
From the above chapter the following conclusions can be drawn with direct
implications for skills development for TETA:
The quality of labour market data for most modes of transport is inadequate. With
the exception of Statistics SA and Datamonitor, there are no authoritative data
sources for the sector. Without proper data sources, the quality of labour market
information is problematic. This exposes TETA to the inevitable risk of over and
under investments in skills development. There is a need to improve the state of
labour market intelligence in the sector.
At least a quarter of employees in the sector are in informal employment. These
employees are employed as casual, temporary and fixed-term employment
without social benefits or the full protection of the law. There is a growing trend
towards informalisation in the sector with negative consequences for labour
peace, worker morale and productivity and investments in skills development.
There is a need for TETA to actively support the concept of Decent Work and
implement a sector programme to improve conditions of employment.
Average monthly wages in the sector is relatively low in comparison to other
sectors.
About 56% of employees in the sector are involved in road transport. TETA should
ideally skew interventions proportionately to this sector.
HIV/AIDS has impacted heavily on the sector. The level of infections in the road
sub-sector is well above the national norm. TETA should become more actively
involved in fighting the disease.
A large number of transport companies are either exempted from paying skills
levies or operate informally. There is a need to find alternative sources of funding
to widen participation in the levy grant system.
Women are under-represented in the transport sector. There should be an active
campaign to reduce gender inequalities and training opportunities for women.
The transport sector is particularly sensitive to economic gyrations in the wider
economy. Fuel prices also have direct impact of the fortunes of the sector. The
economic outlook for the sector between 2010 and 2014 is positive. The sector is
expected to grow increasing the demand for skilled labour. Therefore TETA should
make training investment in scarce and critical skills to meet the demand-side
needs of the sector.
The sector contributes 8.2% of GDP and 5.8% of national employment. There are
job creation opportunities in the sector ranging from low level to advanced skills.
The transport sector requires workers who have the skills to create value through
their work. It also requires high levels of training and skills in order to succeed in
Page 38 of 97
an increasingly competitive global market. TETA should play a more active role in
supporting job creation and skills development efforts.
In recent years government has made significant infrastructural investments to
improve the road, rail, air and sea networks. This necessitates a high skill
workforce in the transport sector. TETA is a key player in supporting
infrastructural investments through the provisioning of skills development.
There is likely to be an increasing awareness to reduce carbon emissions in the
sector. Consumer patterns are expected to shift with consumers depending ecofriendly products and sustainable supply chains. Supply chains in the sector will
continue to become more efficient through the development of continuous realtime control of the flow of goods. This has direct implications for improving skills
development in the sector.
Government has produced a number of policy outlines for the sector. TETA should
align its activities to the goals in these policies.
In the next chapter the supply of skills in the transport sector would be discussed.
Page 39 of 97
CHAPTER TWO: RESEARCH DESIGN AND METHODOLOGY
2.1 INTRODUCTION
The application of a well-considered research design and methodological
approach is necessary to identify and anticipate skills needs in the designated
sector. Moreover, a systematic research process ensures the credibility and
legitimacy of the Sector Skills Plan. Such a plan can thus be defended based on
evidence acquired during the research.
One of the major problems currently in the South African skills development
environment is that the identification of scarce skills does not appear to be
supported by a factual, evidence-led enquiry. Thus the nature of skills needs and
the quantum of skills imbalances in the labour market are often misdiagnosed,
misunderstood and mistreated.
The major problem facing users of labour market information in South Africa is the
lack of a national labour market information system. There is no occupational
modelling system currently in South Africa. It is therefore difficult to make
projections about occupational needs. As a result, skills planners and policymakers are severely restricted when making public investment decisions around
skills development.
The first goal of the National Skills Development Strategy lll “is to develop an
institutional mechanism for skills planning”. Therefore researchers are compelled
to identify skills shortages using other methods such as labour market information
analysis, a method advocated by the International Labour Organisation (ILO).
Since no coherent occupational modelling is conducted, online job analysis is used
to determine occupational supply and demand trends.
2.2 LABOUR MARKET INTELLIGENCE SYSTEM
The Department of Higher Education and Training (DHET) has commissioned the
Human Sciences Research Council (HSRC) to lead a national research consortium
supporting it in creating a strategic labour market intelligence system. The
objective is to build a culture of collaborative partnership to co-ordinate efforts.
South Africa urgently needs a strong foundation for skills measurement – credible
datasets across the post-school system and labour markets, down to sector,
occupational and regional levels of analysis. Accurate, complete and compatible
information systems are absolutely necessary, but this is not sufficient. There is a
strong need for labour market intelligence research that analyses dynamics,
capabilities and constraints. The current global state of uncertainty over finance,
trade and employment makes a labour market intelligence system even more
essential
Page 40 of 97
2.3 RESEARCH DESIGN
The research design is based on mixed method studies which attempt to bring
together methods from different paradigms. In a mixed method study there is an
integration, of qualitative with quantitative methods, is also referred to
sometimes as multi-strategy research.
The chosen design is intended to supplement one information source with
another, or ‘triangulate’ on an issue by using different data sources to identify
scarce skills.
The research design to determine skills in demand is as follows:
Figure 4: Research Design to determine Skills in Demand
Literature
Review
Key
Informants
Interview
Regional
Stakeholder
Workshops
Employer /
Trade
Unions
Skills List
Experts
Workshop
Vacancy
Analysis
WSP/ATR
Analysis
Meet 3 of 6
criteria
TETA Sector
Scarce Skills
List
Chapter 5
By adopting a holistic approach, it is envisaged that the various methods would be
able to corroborate the research findings and conclusions.
Page 41 of 97
2.4 RESEARCH METHODS
Multiple research methods were employed to update the SSP. These methods
include the following:
Figure 5: Methods used to update the SSP
Review of existing data and information sources
Literature search of studies in the sector
Analysis of industry market reports
Review of workplace skills plans and annual training reports
Annual Reports of employer associations, trade unions and bargaining councils
Meeting with Board members, SETA Managers and Projects Committee
Interviews with key informants in the sector
Group discussions with stakeholders
Regional workshops with stakeholders
Revision of the Sector Skills Plan
Presentation of SSP to SETA stakeholders
Approval of SSP with Board
The use of multiple research methods enables triangulation of findings and
corroboration of research evidence. Through a process of data analysis from
workplace skills plans, existing figures and graphs on the industry profile, skills
demand and supply and other industry parameters, the SSP was updated.
To add further value to a substantial quantitative database, qualitative research
methods were used. Various focus groups were held in the provinces, where
stakeholders were consulted. The drivers of change were discussed with focus
group participants. Participants offered various solutions to address the
development of skills needs.
Page 42 of 97
The following research methods are employed to make a determination on
occupational demand for skills:
2.4.1 Interviews with Key Informants
Interviews were conducted with key informants in the transport sector. These
individuals were assumed to possess deep knowledge, understandings and
insights of skills development in the sector.
The interviews were conducted using a semi-structured interview schedule. This
kind of interview is partially structured with open-ended questions to elicit
information that would not be obtained by closed questions. The interviewer is
free to deviate from the questions so long as the issues are covered by the
conclusion of the interview.
2.4.2 Expert Workshop
An expert workshop was held with a larger group of key informants1 to validate
the findings on scarce skills from the other research methods employed.
A set of criteria was established to determine eligibility of occupations to the
Scarce Skills List. Informants rated occupations based on the criteria to
systematically identify which occupations are scarce in the sector.
2.4.3 WSP/ATR
The workplace skills plans and annual training reports of submitting companies
were analysed to identify scarce and critical skills in the sector. The WSP/ATR
represents a significant sample of companies that make up the majority of the
sector in terms of employer and employee coverage.
2.4.4 Literature Review
A review of literature was conducted in the sector. Industry publications such as
company annual reports, research studies, employer and trade union newsletters,
economic reports, sector studies and risk analysis reports were examined to
establish evolving trends in the sector.
1
An industry expert refers to an employee working a minimum of 10 years in the transport sector.
Page 43 of 97
2.4.5 Regional Workshops
Regional workshops were held with stakeholders in the sector. The purpose the
workshops were to enable stakeholders at grassroots level to articulate their skills
needs in the sector. This ensures that the principles of inclusivity and transparency
are applied in the research. The workshops and meetings were held as follows in
2012:
2013
30 July
13 August
15 August
19 August
9 September
EVENT
Meeting with TETA Skills Planning staff
TETA-DHET SSP SSP meeting
TETA SSP Workshop Birchwood
TETA- SSP – Findings meeting
SSP Task Team Meeting
VENUE
JHB
PTA
JHB
JHB
JHB
ATTENDANTS
3
8
47
5
2
2.4.6 Employer Bodies and Trade Unions
Employer bodies and trade unions in the sector were invited to send a list of
occupations they deemed scarce in the sector. Since these bodies are at the
“coalface” of developments in the sector, their respective inputs are valuable to
the research process.
2.4.7 Career Junction Index
Career Junction is a web service through which recruiters and career seekers
interact in a secure and completely confidential environment. Over 1 000 of the
country’s top recruiters (both agencies and corporate companies) advertise their
vacant positions to more than 2.5 million career seekers on Career Junction and
make use of the variety of services that are offered over and above the normal job
board service (CareerJunction Index, 2013, p 1).
The data is captured online by Career Seekers as well as employers and recruiters
which allow us to extract high quality, relevant, accurate data which provides a
detailed view of the labour market. It is the only data of its kind available in the
South African market.
The set up for the transport sector labour market analysis report requires the
following steps:



Job cluster definition;
Initial query set-up for all data extractions;
Restoration of historical databases;
Page 44 of 97




Data extraction & clustering;
Data capturing & formatting;
Data analysis; and
Accuracy analysis & quality assurance.
The analysis covers the following aspects:



Labour Demand – job adverts posted on the CareerJunction website per
region, employment level, job type (permanent, temporary or contract);
Job Applications – per region; and
Supply – potential candidates who match the skill set region, employment
level, job type (permanent, temporary or contract).
The Career Junction Index (CJI) is the first index of its kind that directly monitors
the online labour market in South Africa by examining supply and demand trends
across all industries.
2.5 CRITERIA FOR DETERMINING SCARCE SKILLS
The objective of this chapter is to develop a methodology or tool that can be used
to form an assessment of skills in demand.
The methodology developed in this plan is intended to be highly transparent, open
to replication and simple to calculate. Furthermore, the methodology is designed
in such a way that enables new information (through new and better data) to be
incorporated without the need to redesign the process.
By establishing a user-friendly framework for identification and anticipation of
skills needs, it is envisaged that all constituents right down to micro-enterprises
can participate in the research.
The methodology developed is set out as follows:
Page 45 of 97
Figure 6: Methodology used for Assessment of Skills in Demand
1
2
3
4
Entry to the occupation
requires a long lead
time of formal education
and training – 3 years
Identified as scarce
skill in interviews
or experts
workshop
Skills which people
acquire are being
deployed for the uses
intended
Shortage of skills
causes a significant
cost to the company
Meet at least 3 out
of 6 criteria for
Scarce Skills List
TETA Scarce
Skills List
2013
Hard-to-fill vacancies
– more than 3 months
to find suitable
candidate
Identified as scarce
skill in WSP/ATR
5
6
There is plausible
evidence to identify an
occupation as a scarce
skills
Recommendation from
a professional body,
trade union or employer
body in the sector
Online vacancy
analysis

All occupations considered for the Scarce Skills List are evaluated by
stakeholders according to 6 criteria as shown above.

For an occupation to be eligible for inclusion on the Scarce Skills List at
least 3 out of the 6 criteria should be met.

In addition, the occupation should be identifed as a scarce skill in the
Workplace Skills Plan/Annual Training Report; online vacancy analysis and
either the interviews or experts workshop to make the final Scarce Skills
List.

The above point will also be used to establish a Critical Skills List with the
WSP/ATR becoming the primary source of evidence.

A draft list will then be produced based on the above criteria for
consideration by the SSP Task team of the SETA.

A final list will be developed with supporting evidence.
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2.6 CONCLUSION
The purpose of this chapter is to conceptualise and implement a research method
for the identification and anticipation of scarce and critical skills in the sector.

One of the major problems currently in the South African skills
development environment is that the identification of scarce skills does not
appear to be supported by a factual, evidence-led enquiry. Thus the nature
of skills needs and the quantum skills imbalances in the labour market are
often misdiagnosed, misunderstood and mistreated.

The Department of Higher Education and Training (DHET) has
commissioned the Human Sciences Research Council (HSRC) to lead a
national research consortium supporting it in creating a strategic labour
market intelligence system. The objective is to build a culture of
collaborative partnership to co-ordinate efforts.

Multiple research methods were employed to update the SSP. These
include: interviews, workshops, literature review, usage of administrative
data, online vacancies, professional lists and WSP/ATR Analysis.

In this way, majority coverage of the sector was achieved in terms of
employment coverage and annual financial turnover.

The method employed to devise a Scarce Skills List involved the following
steps:
o
o
o
o
o
Identifying an occupation for inclusion;
Rating the occupation in terms of 6 criteria to establish eligibility;
Determining whether the occupation has been identified by online
vacancy sources, WSP/ATR analysis and interview/ workshops as,
indeed, scarce or in demand;
Subjecting the eligible occupation to an expert’s analysis discussion;
and
Making a final determination.
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CHAPTER THREE: SUPPLY OF SKILLS
This chapter highlights supply of skills in the sector. It analyses Workplace Skills
Plans and Annual Training Reports to determine supply of skills.
3.1 ANALYSING LABOUR SUPPLY-DEMAND
CareersJunction, an online career website, conducts supply-demand analysis on a
quarterly. It is the only organisation that does so. It determines supply-demand
according to occupational categories instead of specific occupations, which is what
is ideally needed.
CareersJunction includes job vacancies advertised in the Sunday Times Careers
section. This supplement is a nation-wide advertising medium for jobs and is the
most widely used in South Africa.
3.1.1 CareerJunction Index
CareerJunction is a web service through which Recruiters and Career Seekers
interact in a secure and completely confidential environment. Over 1,000
companies advertise their jobs on CareerJunction (CareerJunction Index, 2013, p
1).
The CareerJunction Index (CJI) has been established due to a lack of updated and
accurate online labour market information in South Africa. The CJI is the first index
of its kind that directly monitors the online labour market in South Africa by
examining supply and demand trends across all industries.
The CJI data is sourced from the CareerJunction website, where over 1,000 of the
country’s top recruiters (both agencies and corporate companies) advertise their
vacant positions to more than 1 million career seekers. With the Internet
becoming an increasingly popular method of finding a job and sourcing candidates
for positions, the CareerJunction Index provides HR professionals and recruitment
agencies with valuable insights into online labour trends in South Africa. In
addition, it provides a basis for recruitment agencies and businesses to focus on
specific and relevant occupations when developing their retention strategies
(CareerJunction Index, 2013, p 1).
Page 48 of 97
3.2 SUPPLY OF SKILLS
This section deals with the supply of skills in the transport sector. It gives an
indication of supply-side dynamics in the sector.
3.2.1 Employment by Occupation and Industry
The table below provides information on the stock of skills in the sector by
occupational level per sub-sector.
Table 18: Employment by Occupation and Industry
Source: Stats SA, Quarterly Labour Force Survey, Nesstar, Quarter 2, 2013
The table above reveals the following (STATSSA QLFS 2nd Quarter 2013):




The composition in percentages of sub-sectors are as follows: Railway
(10.6%); Road (57.9%); Sea (0.70%); Air (3.7%); support and auxiliary (10.1%);
Postal and courier (5.9%); Telecommunications (11.1%);
TETA should align skills development support in terms of the size of subsectors;
The occupational composition of the sector is as follows: Managers (16%);
Professionals (4%); Technicians (6%); Clerks (15.6%); Sales and Service (2.8%);
Crafts and Trades (3.9%); Plant and Machinery (38.8%); Elementary (13.1%);
High skills occupations (Managers/Professionals/ Technicians) constitute 26%;
intermediate skills (Clerks/Sales and Service/Crafts and Trades) make up
Page 49 of 97



22.3% and low level skills; (Plant and Machinery/Elementary) comprise
51.9%; and
A high percentage of people are in the low skills category (51.9%);
There is an opportunity to move people with low level skills into the
intermediate category; and
Likewise there are opportunities for those with intermediate skills to move
into the high skills category with meaningful education and training
interventions.
3.2.2 Education Levels
The table below gives information on education levels in the transport industry:
Table 19: Education Levels in Transport Industry
No schooling
6 312
NTC 3
4 277
Grade R
1 584
NTC 4
2 829
Grade 1
361
NTC 5
2 628
7 398
NTC 6
5 638
1 789
Grade 2
Grade 3
5 414
Certificate < Grade 12
Grade 4
10 938
Diploma < Grade 12
4 867
Grade 5
9 368
Certificate & Grade 12
15 151
Grade 6
12 593
Diploma & Grade 12
54 465
Grade 7
27 060
10 869
40 613
Higher Diploma
Post Higher Dip (Masters;
Doctoral Diploma)
Grade 9
38 950
Bachelors Degree
33 231
Grade 10
94 764
Bachelors Degree & Diploma
4 403
Grade 11
91 350
Honours Degree
4 780
Grade 12
320 481
Higher Degree (M, Phd)
3 023
NTC 1
3 342
Other
286
NTC 2
0
Do not know
8 847
831 701
Grade 8
Total
4 091
Source: Stats SA Quarterly Labour Force Survey, Nesstar, Quarter 2, 2013
The table above reveals the following (STATSSA QLFS 2nd Quarter 2013):

13.8% of people in the sector have a tertiary education; 38.5% have a
secondary education;
31.9% have not completed secondary
education; 0.1% have not completed primary education and 0.7%
with no schooling;
Page 50 of 97

It is necessary for the sector to improve the proportion of people with
tertiary education from 13.8% to potentially about 25% over the next
few years;

It is strongly suggested that TETA should invest in RPL to improve
education levels in the sector;

There is potential to move 32% and 0.1% of people who have not
completed secondary and primary schooling respectively up a band
based on work experience where appropriate.

TETA should focus on FET qualifications since a large number of
workers (346 705 - below Grade 12 and 320 481 – Grade 12) need to
access education and training in this band. This effectively makes up
80.2% of the workforce;

Sectors such as sea, air, support and auxiliary and postal and courier
require people with a secondary education;

Land transport has a high proportion of people with primary schooling
or less. There is a need for upskilling this sub-sector and creating
opportunities for unskilled workers to enter formal employment.
Transportation is seldom a career of choice amongst students. The sector is not
characterised by high levels of education.
Figure 7: Education Levels in Transport Sector
Transport Education Levels
350 000
300 000
250 000
200 000
150 000
100 000
50 000
0
Stats SA QLFS Q2 2013

It can be seen from the figure above that 41.7% of people employed in the
transport sector have a below-grade 12 qualification. This has significant
implications for skills development in the sector.
Page 51 of 97
3.3 WSP 2013/2014 and ATR 2012/2013
The Workplace Skills Plan/ Annual Training Report 2012/2013 offer valuable
information on planned training and training already undertaken. The composite
WSP/ATR findings serve as a sample for training in the transport sector since only
a limited number of organisations make mandatory grant applications to the TETA.
3.3.1 Race Profile by Occupational Levels
The figure below provides information on the ethnic profile of the sector by
occupational class for the 2012/2013 period.
Figure 8: Occupation-Race Transport Sector
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
African/Black
Coloured
Indian/Asian
White
0.0%
Stats SA QLFS Q2 2013
The above figure reveals the following (STATSSA QLFS 2nd Quarter 2013):

Africans are in the majority at elementary, operator, craft & related trade
works, clerical and service levels which range from low level to
intermediate level occupations;

In 2011, Whites took up 50.9% of managerial posts compared with Africans
with 11.2%;
Page 52 of 97

In 2012, Blacks took up 47.9% of managerial posts compared with Whites
with 33.6%.

In 2013, Blacks took up 60.3% and whites 26.3%. This progress is positive
as it indicates progress into an advanced level occupation;

A characteristic feature of the SA labour market – Whites mostly dominate
the upper end of the occupational spectrum, whilst Blacks, Indians and
Coloureds are located at intermediate and lower levels;

In 2012, 47% of Whites are professionals and 43.5% are technicians, whilst
the figures for Africans are 46.7% and 33% respectively;

In 2013, 44.1% of Blacks are professionals and 47.7% are technicians,
while the figures for Whites are 35.5% and 27.7%respectively;

88.7% of Africans are operators and 79.2% are elementary workers. The
corresponding figures for Whites are 3.2% and 0.4%;

There is clearly a need for TETA to become more active in supporting
Blacks in most of the occupations, through skills development so that they
could occupy more senior and higher level occupations in transport; and

Affirmative Action should be a very high priority of the skills agenda for the
transport industry.
3.3.2 Training by Race, Age and Region
The figure below provides information on the number of workers in the transport
industry that was actually trained for the 2012/2013 period.
Page 53 of 97
Figure 9: Training by Race
60000
52269
50000
40000
30000
20000
14686
9543
10000
5150
0
African
Coloured
White
Indian
Source: TETA WSP 2013
The table above reveals the following (TETA WSP 2013):

There are 831 701 workers in the transport industry of which 81 648
received training.

In terms of race, 52 269 Africans, 9543 Coloureds, 5150 Indians and 14 686
Whites were trained.

As evident most training was received by the Africans. This is significant
considering they are in the majority and were previously disadvantaged.
Page 54 of 97
Figure 10: Completed Training by Age
40000
35000
30000
25000
20000
15000
10000
5000
0
U35
U55
O55
Source: TETA WSP 2013
The table above reveals the following (TETA WSP 2013):

A total of 70 000 workers spanning a range from under 35 years to over 55
years received training.

Most training was in the under 55 age group (38 000), followed by the
under 35 group (28 000) and the over 55 group (4000).

Minimal training was done in the over 55 age group as this group was near
retirement, hence major investment in this group would not be of long
term benefit to the transport industry.

While the under 55 age group received most of the training, the under 35
age group should have received more as they have longer years of service
to offer.
Table 20: Training according to Occupation Class for the Employed and Unemployed
Number of Actual Beneficiaries
Employed
Unemployed
Clerical support workers
13697
572
Elementary occupations
11460
594
Managers
9237
1
Plant and machine operators and assemblers
36374
1037
Professionals
4087
51
Page 55 of 97
Service and sales workers
8587
749
Skilled agricultural, forestry, fishery, craft and 6579
related trades workers
1082
Technicians and associate professionals
12513
502
Grand total
102534
4588
Source: TETA ATR: 2013
From the above table, the following is evident (TETA WSP 2013):

Most of the training was allocated to employed workers, 96.7% whilst
4.3% was allocated to the unemployed;

Training for the employed was largely in the following occupational
categories, plant, clerical, technician, and elementary; and

Training of the employed also indicates that considerable skills
development is taking place in the work environment.
3.3.3 Planned Training
Figure 11: Planned Training by Province and Race
80000
70000
60000
50000
40000
Sum of White
30000
Sum of Indian
20000
Sum of Coloured
10000
Sum of African
0
Source: TETA WSP: 2013
In terms of planned training by region, the following is revealed (TETA WSP 2013):

Planned training is skewed heavily in favour of Gauteng. This is
understandable because the region is the heart of the SA economy
comprising the most numbers of employers and employees;
Page 56 of 97

Western Cape and KwaZulu also have increased levels of training due
to the high number of organisations in these provinces;

However, the above figure also implies the need for TETA to pay
attention to the other provinces;

Apart from the Northern Cape, most of the training in all provinces
goes to Blacks;

This represents a concerted effort by stakeholders in the transport
industry to address past employment inequalities through increased
training opportunities;
TETA should continue to take leadership in becoming an agent of national
transformation for the industry.
Figure 12: Planned Training by Occupation and Race
40000
35000
30000
25000
20000
15000
10000
5000
0
White
Indian
Coloured
African
Source: TETA WSP: 2013
In terms of planned training by occupation and race, the following is revealed
(TETA WSP 2013):




Apart from training for technicians and associate professionals, Africans are
allocated the highest percentage of training across all the other occupations,
a positive stride on the part of stakeholders to get correct the inequalities of
the past;
Whites have the highest percentage of training for technicians and associate
professionals, 45.8% compared to 35.3% for Africans;
Although there are training needs in a number of specialisations, the table
above indicates the firms ranking according to their needs;
The need for training freight operators is the highest at 13863. As many as
331 firms have ranked freight drivers as their number one need; and
Page 57 of 97

In many instances, although the number of firms requiring training for
certain specialisations is low, the actual number per firm is very high such as:
o
o
o
o
o
Passenger coach driver: 53 firms and 6091 trainees;
Sheet metal production/Process worker: 38 firms and 5498 trainees;
Minibus Drivers: 20 firms and 3974 trainees;
Aircraft Loaders: 10 firms and 1796 trainees; and
Airplane Captain: 10 firms and 1435 trainees.
3.4 FET and HET Partnerships
The SETA is committed to working with FET and HET institutions to roll out skills
training country-wide.
Page 58 of 97
OFO
Specialisation
Firms
Reporting
Number to
be Trained
Ranking
TETA is committed to forging partnerships with FET Colleges and Universities to
upskill the transport sector. We have rolled out a number of projects with FET
Colleges country wide ranging from training of assessors to the development of
733201
Freight Operator
331
13863
1
733201
Lorry Driver
280
8643
2
733103
Passenger Coach Driver
53
6091
3
411101
Administration Clerk / Officer
562
5983
4
718905
Sheet Metal Production / Process Worker
38
5498
5
733101
Minibus Driver
20
3974
6
811201
Cleaner (Non-domestic)
162
3667
7
441501
Documentation Clerk / Officer
46
3355
8
833301
Freight Loader
175
3179
9
734402
Forklift Operator
290
3116
10
733204
Petrol Tanker Driver
52
2894
11
334102
Office Coordinator
303
2795
12
432102
Dispatch Clerk / Officer / Operator / Assistant / Worker
273
2714
13
833301
Checker and Loader Transport Vehicle
146
2453
14
862202
Handy Person
113
2398
15
121901
Business Operations Manager
516
2130
16
541401
Security Guard
103
2114
17
732101
Van Driver
111
2061
18
511101
Cabin Steward / Attendant (Aircraft)
8
1856
19
511101
Airport Attendants
16
1834
20
833304
Aircraft Loader
10
1796
21
732101
Driver-messenger
234
1656
22
422206
Call or Contact Centre Agent
157
1656
23
833302
Furniture Removalist hand
105
1594
24
734301
Crane Driver
46
1589
25
335402
Export Agent / Clerk
140
1503
26
315303
Airline Captain
10
1435
27
312201
Production Plant Supervisor
103
1410
28
431101
Accounting Clerk
277
1377
29
733101
School Bus Driver
27
1371
30
quality management systems. The FET Colleges have the advantage of providing
training in rural areas at an affordable cost. Their occupationally driven curricula
fit in well with developing semi-skilled and unskilled workers in the sector.
Page 59 of 97
The University of Western Cape is a strategic research partner for the SETA. Its
objective is to provide credible research for sector skills planning and build
research capacity within the organisation. The universities of Cape Town and
KwaZulu Natal are Centres of Excellence for the transport sector. These
institutions are funded by the Department of Transport with the primary objective
of increasing the supply of engineering skills in the sector. The following
partnerships have been established:
Table 21: Companies indicating Employees in specific Occupations to be trained
PARTNERSHIPS WITH FET & HET INSTITUTIONS
Province
College
Deliverables
KZN
Umfolozi FET, eThekwini
ETQA RELATIONSHIPS
Gauteng
Victory FET, Ekhuruleni FET
Limpopo
Lephalale FET, Capricon FET
Free State
Motheo FET, Goldfield FET
Training
for
assessors,
moderator facilitators in line
with ETD unit standards
Western Cape
College of Cape Town, False Bay, Northlink
Mpumalanga
Gert Sibande FET
ETQA RELATIONSHIPS
Northern Cape
Northern Cape Urban FET
Western Cape
College of Cape town, False Bay, Northlink
TETA to provide QMS toolkit
for programme approval
Mpumalanga
Ehlanzeni FET
Northern Cape
Northern Cape Rural FET
Mpumalanga
Gert Sibande FET, Ehlanzeni FET
ETQA RELATIONSHIPS
Gauteng
Victory FET, Ekhuruleni FET
Northern Cape
Northern Cape Urban FET
Development & delivery of
the learning
Western Cape
College of Cape town, False Bay, Northlink
Eastern Cape
Ingwe FET
North West
Taletso College
Gauteng
Ekhuruleni FET
Eastern Cape
Ingwe FET
North West
Orbit FET
ETQA RELATIONSHIPS
Gauteng
Victory FET, Ekhuruleni FET
Eastern Cape
Ikhala FET, Ingwe FET
Support & moderate
assessment in line
Western Cape
College of Cape Town, False Bay, Northlink
North West
Taletso College
Western Cape
University of Cape Town
CoE RELATIONSHIPS
University of Western Cape
University of KZN
Centres of Excellence (funded
by Dept of Transport)
University of Western Cape
Research Partner
KZN
materials
mandate
within
TETA
Assist 30 learners per FET to
obtain driver licenses
the
with SAQA criteria to meet
learner
endorsements on the NLRD
Centres of Excellence (funded
by Dept of Transport)
Page 60 of 97
3.5 Quality Council for Trade & Occupations [QCTO]
The SETA has also established a working relationship with the Quality Council for
Trades and Occupations (QCTO) and is actively working with the QCTO to register
occupationally directed qualifications for the sector.
The following deliverables were outlined:

Accredit providers for the qualifications or part qualifications in terms of
QCTO criteria;

Monitor provision by providers of learning programmes leading to
qualifications;

Evaluate learner assessment and the facilitation of moderation of learner assessment by prov

Register assessors to undertake assessment for specified qualifications in
terms of OCTO criteria;

Certify qualified learners in accordance with the policy determined by
Minister in terms of section 26F of the SDA;

Maintain a comprehensive learner information management system; and

Upload learner data to the NLRD according to NLRD specifications.
A research partnership has been established with the University of Western Cape
for the development of the Sector Skills Plan.
Page 61 of 97
CHAPTER FOUR: DEMAND FOR SKILLS
This section gives an indication of the demand for skills in the sector. It gives an
indication of supply-side dynamics in the sector.
4.1 SKILLS DEMAND
Below is a visual illustration of the current online labour market situation, taking
into account the amount of active career seekers and the amount of advertised
jobs on the Career Junction website (CareerJunction Index 2013).
Please note that this is not an indication of how many career seekers have applied
to positions, but rather the number of potential career seekers who have been
active on the Career Junction website in the previous 6 months.
The diagrams below indicate the number of work-seekers who have applied for
jobs per advert on the CareersJunction website. It gives an indication of skills
demand.
Finance
Building & Construction
Sales
FMCG, Retail & Wholesale
Human Resources & Recruitment
Travel & Tourism
Medical
10.18
10.64
10.81
10.85
11.10
11.35
11.61
Petrochemical
Information Technology
Motor
Telecommunication
Hospitality & Restaurant
Business & Management
11.76
13.65
15.65
17.43
18.17
18.25
CJI Executive Summary Report, June 2013
Page 62 of 97
Media
Legal
Distribution, Warehousing & Freight
Agriculture
20.43
23.54
25.35
26.77
Manufacturing, Production & Trades
Transport & Aviation
Engineering
26.99
27.40
28.88
CJI Executive Summary Report, June 2013
Safety, Security & Defence
30.55
Government
&
Local 34.08
Government
Science & Technology
36.02
Maritime
38.83
Marketing
39.24
Property
39.37
Design
42.70
Mining
55.41
Beauty
Arts & Entertainment
57.45
75.28
Education
Social & Community
Sport & Fitness
Admin, Office & Support
Botanical
97.63
101.65
117.84
118.66
166.17
CJI Executive Summary Report, June 2013
The analysis of online labour supply and demand provides the positioning of each
industry sector, based on the average amount of potential career seekers available
per job advert. Integrating the number of job adverts and the number of potential
career seekers per job advert for each industry sector, reflects the online labour
supply versus demand per industry sector (CareerJunction Index 2013).
Recruiters currently face difficult to moderate recruitment conditions across most
industries in the South African online labour market. A steady decrease of active
career seekers as well as an increase in labour demand is further aggravating
recruitment conditions and placement is becoming challenging across more
industries. Recruiters currently face moderate recruitment conditions in Transport
& Aviation, Engineering and Distribution, Warehousing and Freight sectors. The
supply pool of talent within these sectors is between 10 and 20 potential career
seekers per job vacancy.
Page 63 of 97
Retaining valuable staff is an advisable strategy for employers who seek talent in
these sectors, especially in regions where recruitment activity is particularly high,
for example Gauteng, the Western Cape and KwaZulu-Natal.
The above table indicates the difficulty of recruiting labour by economic sector. It
is evident from the table that to recruit in the transport sector is moderate. There
are roughly between 10 and 20 potential career seekers per job advert. The
potential career seekers per job advert in the transport and aviation sector is
about 27.40. This is high (CareerJunction Index 2013).
4.2 INDUSTRIES DISPLAYING MAJOR DEMAND
The figure below indicates industries in terms of major demand (jobs being
advertised within specific industry sectors).
Figure 13: Industries in terms of major demands
Source: CJI Executive Summary Report, June 2013
An overview of vacancy levels across various industries provides a good indication
of where the majority of employment takes place. The Finance; IT; Engineering;
FMCG, Retail & Wholesale; and Manufacturing, Production and Trades industries,
amongst others listed are most sought after (CareerJunction Index 2013).
4.3 INDUSTRY TRENDS
The table below illustrates supply and demand trends experienced by all industry
sectors over a 6 month period, where the first 3 months’ data are compared to the
next 3 months’ data.
Page 64 of 97
Table 22: Supply and demand trends in the Industry
Source: CJI Executive Summary Report, June 2013
A six months analysis of the online labour market in South Africa reveals an overall
decrease in online labour supply. Demand for labour has increased during this
period. As a result, recruitment conditions have weakened across most industries.
Recruiters currently face easy recruitment conditions in Maritime, Distribution,
Warehousing & Freight and Transport and Aviation sectors. The supply pool of
Page 65 of 97
talent is between 0 and 5 potential career seekers per job vacancy within these
sectors.
In Transport and Aviation the supply of labour is 3% and demand is 13%. There are
27.40 career seekers per job advert. The figures for Maritime are 2% for labour
supply, 71% for labour demand and 38.83 career seekers per job advert
(CareerJunction, 2013).
4.4 DEMAND FOR SPECIFIC OCCUPATIONAL FIELDS
The following occupational fields have been analysed by CareerJunction to obtain
information on supply and demand dynamics.
Table 23: Recruitment conditions in the Transport Industry
Recruitment Conditions for Scarce Skills on Transport Industry List
Occupational Fields
Career
Comment
seekers per
Advert
Client Services
7.02
Difficult
Sales
12.25
Moderate
General Management
11.40
Moderate
Procurement, Supply Chain & Logistics
14.70
Moderate
Operations (Control & Planning)
16.53
Financial Management
6.68
Electrical & Electronic Engineering
10.03
Mechanical Engineering
22.25
Automotive Engineering
302.79
Training & Development
53.26
Artisanship
10.47
Trades & Commerce
18.76
Fitting & Machining
22.25
Metallurgy
28.33
Quality Control & Assurance
36.56
Draughtsmanship
27.50
Fabrication & Production
25.60
Source: CareerJunction, Job Report, 2nd Quarter, 2012
Moderate
Difficult
Moderate
Easy
Very Easy
Very Easy
Moderate
Moderate
Easy
Easy
Very Easy
Easy
Easy
There are various occupational fields found within the transport industry. When
examining these, it is advantageous to analyse the levels of demand in order to
distinguish which skills are most required.
Page 66 of 97
4.5 RPL AND WIL
Recent years have seen an increased demand for a skilled technologically advanced labour
force in both the private and public sub-sectors. Success in skills development initiatives in
each of the transport sub-sectors depends substantially on the involvement of the
stakeholders some of whom have realised the importance of Recognition or Prior Learning
and Work-Integrated Learning (WIL).
TETA is currently developing RPL systems to:








Strengthen the implementation of RPL and WIL in the sector;
Ensure all routes of learning allow for RPL and WIL;
RPL and WIL policies, processes and procedures that meet the requirements of
relevant ETQA bodies;
RPL and WIL provision in all learning programmes;
Number of learners granted RPL for full qualifications given access to higher learning
via RPL route;
Development and implementation of good practice (models, procedures and
guidelines) for RPL and WIL consistent with their National Standards and Guidelines
in the context of lifelong learning;
All new occupational learning qualifications should contain processes to facilitate
RPL and WIL; and
Ensure utilisation of RPL among training providers in the sector.
Page 67 of 97
CHAPTER FIVE: SCARCE AND CRITICAL SKILLS
Chapter Five focuses on scarce and critical skills. Scarce skills are actually
occupations in demand while critical skills refer to skills gap within occupations.
In order to determine the scarce skills in the transport sector, TETA administrated
a survey to all member companies on the SETA database to establish which
occupations are in high demand.
In addition, interviews were conducted with key informants in the sector to
corroborate the findings of the skills survey.
5.1 SCARCE SKILLS
The Scarce Skills List 2012/2013 is drawn from the skills survey, interviews,
workplace skills plan/ annual training reports, careers guide, literature review and
workshops with stakeholders in the designated sector.
The following tables catalogue the scarce skills as per the 8 chambers in the
transport sector.
The following scarce skills derived from the WSP/ATR, key informants and experts
workshops have been classified as follows:
Absolutely Scarce
Takes longer than 6 months to find a suitable candidate
Relatively Scarce
Takes between 3 and 6 months to find a suitable candidate
Somewhat Scarce
Takes 1 to 3 months to find a suitable candidate
Page 68 of 97
1.
NO
1
2
3
4
5
6
UNIT GROUP
Mechanical Engineers
Air Traffic Controllers
Electronics
Mechanics
Servicers
and
Aircraft Engine Mechanics and
Repairers
7
8
Electrical Mechanics and Fitters
9
10
11
12
13
Welders and Flame Cutters
Spray Painters and Varnishers
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
OCCUPATION/ SPECIALISATION
Accident Investigators
Aeronautical Engineers
Mechanical Engineer
Air Traffic Assistant trainer
Air Traffic Controller
672101
Avionics Technician
672101
Aircraft Electronician
672105
Aircraft Instrument Mechanic
672102
Aircraft Radartrician
653202
Aircraft Composite Structures Worker
5
653201
Aircraft Engine Fitter
5
653201
Aircraft Mechanic
653203
671208
Aircraft Trimmer
Aircraft Electrician
Aircraft Performance analysis/ weight&
balance analysis
Aircraft Welder
Aircraft Spray Painter
Airport Maintenance Electricians
CAA Inspectors
N/C
651202
643202
N/C
N/C
Travel Attendants and Travel
Stewards
Electronics Engineers
Mechanical
Engineering
Technicians
Industrial and Production Engineers
Transport Clerks
Meteorologists
511101
215201
311503
214101
432301
N/C
211210
N/C
Mining
and
Technicians
Metallurgical
Sheet Metal Workers
Software Developers
Metal Working Machine
Setters and Operators
Tool
AEROSPACE
OFO CODE
N/C
214403
214401
N/C
315401
ATPL Pilots
Electronic engineer
NQF
5
7
7
5
6
5
5
5
5
5
5
7
7
6
Engineering Technician ATNS
Industrial Engineer
Load Controller
Aircraft Tow Tractor Driver
Meteorologist (research, climate &
Casting)
Air quality scientist
Non Destructive Testing Technician
7
5
4
7
7
5
311702
N/C
N/C
N/C
651301
N/C
251201
652301
Passenger Handling
Aircraft Loading Supervisors
Flight Controller
Aircraft Sheet Metal Structure Worker
Ramp Handling
Aviation Software Engineer
Turner Machinist
4
5
6
5
4
7
6
N/C
N/C
N/C
N/C
N/C
Airport Manager
Baggage Handling Manager
Airports Commercial Manager
Airport Planning
Aviation Security Management
6
5
6
6
5
Page 69 of 97
NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
1. ROAD FREIGHT
UNIT GROUP
OFO CODE OCCUPATION
/SPECIALISATION
Motorcycle Drivers
732101
Delivery Drivers – Medium &
Heavy drivers, Heavy duty
drivers, Abnormal load
Heavy Truck and Lorry Drivers
733201
Truck Driver
733205
Tow Truck Driver, (medium &
heavy)
733204
Tanker Driver
733203
Furniture Removalist
( heavy duty)
N/C
Driving Instructors, (heavy
duty)
Car, Taxi and Van Drivers
732203
Emergency Vehicle Drivers
Agricultural
and
Industrial 653306
Diesel & Petrol Mechanic
Machinery
Mechanics
and
Repairers
Motor Vehicle Mechanics and 653101
Motor Mechanic
Repairers
Vehicle Service Technicians
Electrical Mechanics and Fitters
671208
Auto Electrician
671208
Autotronics Technician
Driving Instructor
516501
Driving Instructor Trainer
Policy
Administration 242208
Risk manager/Officer
Professionals
Police Officers
541201
Traffic Policing
Sales and Marketing Managers
122101
Marketing & Sales manager
Supply, Distribution and Related 132401
Supply Chain Manager
Managers
N/C
Vehicle tracking operator
Personnel
and
Careers 242304
Industrial relations officer
Professionals
Data Entry Clerks
413201
Data Capturer
Employment
Agents
and 333301
Recruitment Officer
Contractors
NQF LEVEL
4
4
4
4
4
4
4
4
4
4
4
4
5
5
5
6
6
6
5
6
Page 70 of 97
2.
NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
UNIT GROUP
Business Services and
Administration Managers not
Elsewhere Classified
Administration Professionals
Administration Professionals
Administration Professionals
Administration Professionals
Finance Managers
Supply, Distribution and Related
Managers
Supply, Distribution and Related
Managers
Sales and Marketing Managers
Policy Administration
Professionals
Town and Traffic Planners
Management and Organization
Analysts
Policy Administration
Professionals
Business Services and
Administration Managers not
Elsewhere Classified
Personnel and Careers
Professionals
Business Services and
Administration Managers not
Elsewhere Classified
Freight Handlers
Policy Administration
Professionals
Industrial and Production
Engineers
FORWARDING AND CLEARING
OFO CODE OCCUPATION /SPECIALISATION
121901
General Manager
NQF
6
121905
121201
121202
7
7
6
121206
121101
132402
Project Manager
Human Resource Manager
Business Training Manager/Skills
Development Facilitator
Health and Safety
Finance Manager
Logistics Manager
132403
Road Transport Manager
6
122105
242203
Customer Service Manager
Company Secretary
6
7
216402
242101
Transport Analyst
Business Analyst
7
7
242207
Compliance Officer
5
121908
Quality Systems Manager
IT/Manager
7
242304
6
121902
International Relations
Manager/Officer
Corporate Service Manager
833301
242304
Freight Handlers
Industrial Relations Officer
5
6
214102
Industrial Engineering Technologist
(Process Analyst)
7
Page 71 of 97
6
7
6
6
NO
3. RAIL
OFO CODE OCCUPATION/
UNIT GROUP
SPECIALISATION
1
Locomotive Engine Drivers
731101
2
Railway Brake, Signal and Switch
Operators
Railway Brake, Signal and Switch
Operators
731202
Earthmoving and Related Plant
Operators
Building Construction Labourers
734212
3
4
5
6
7
Elementary Workers not Elsewhere
Classified
731201
831307
N/C
862920
8
Civil engineers
214201
9
Electrical engineers
215101
10
Electronics engineers
215201
11
Agricultural
Machinery
Repairers
653304
653306
and
Industrial
Mechanics
and
12
13
N/C
Welders & flame cutters
14
Agricultural and Industrial
Machinery Mechanics and
Repairers
15
16
Building and Related Electricians
Train driver:
Railway Engine Driver
Electric and diesel
Electric Train Driver
Fireperson
Locomotive Driver
Locomotive Observer
Mine and Quarry Engine Driver
Rail Car Driver
Train control officer
Railways Yard Foreman
Railway signal operator:
Railway Shunter
Railway Switching and Signalling
Operator
Railway Traffic Assistant / Operator
Railway Yard Assistant
NQF
LEVEL
6
4
4
4
Track Masters
Track Inspectors
Perway Technicians
Railways assistant:
Railway Porter/guard
Railway Surface man
Railway Washout man
Railway Traffic foreman
Railway Yard master
Civil engineers (rail design; rail
alignment)
Electrical engineers (rail design; rail
alignment)
Electronics
engineer
(railway
signalling;
testing
&
commissioning)
Diesel Fitter
Diesel mechanic
(Permanent
4
4
8
8
8
6
4
4
651201
Technical Worker
Way)
Pressure Welder
651202
651203
651204
Welder
Fitter-welder
Gas Cutter
4
4
4
653303
671101
N/C
Maintenance fitters
Electrical Fitters
Electricians – Sub Stations (High
Voltage - 3Kv, 25 Kv & 50 Kv)
4
4
4
4
Page 72 of 97
17
18
19
Electrical Mechanics and Fitters
Electrical
Repairers
Line
Installers
and
20
21
22
23
24
25
26
27
28
29
N/C
N/C
Telecommunications Engineering
Technicians
Draughtspersons
Chemical Engineers
Industrial
and
Production
Engineers
Mechanical engineers
Civil engineers
Chemical and Physical Science
Technicians
30
31
32
33
34
35
36
N/C
671207
671202
671301
352201
311801
214501
214101
214401
214201
N/C
311702
N/C
Mechanical Engineering
Technicians
Electronics Mechanics and
Servicers
Railway Brake, Signal and Switch
Operators
Training and Staff Development
Professionals
311502
41
42
43
44
45
46
Environmental and Occupational
Health and Hygiene Professionals
Environmental Engineers
Physical and Engineering Science
Technicians not Elsewhere
Classified
Environmental and Occupational
Health and Hygiene Professionals
Environmental and Occupational
Health and Hygiene Professionals
Management and Organization
Analysts
Buyers
4
4
4
5
5
5
Telecommunications Technicians
Rail draughtsman
Chemical Engineer
Industrial engineer
Mechanical engineer
Civil engineer
5
8
8
8
8
4
Code 29 Practitioner
Metallurgy
8
Shed Personnel (Chief Shedman,
Shedman & Shed Assistant,)
Inspector (Pressurized Equipment)
672102
4
7
7
Radiotricians
731202
4
Loco Control Administrator
Train Monitoring Administrator
Train Planning Administrator
242401
37
38
39
40
Vehicle builders – (Coach builders)
Armature Winder
Millwright
Electric Line Mechanic (Overhead
Track Equipment) (High Voltage 3Kv, 25 Kv & 50 Kv)
Rail assessors
Track technicians and training
specialist
N/C
N/C
226302
214302
311903
226302
226302
Curriculum Developers
Education, Training and
Development (ETD) Practitioners
(Operations and Technical)
(Facilitators, , Assessors and
Moderators, Coaches and
Mentors)
Supervisory Skills
Human Factor Specialist
Hygienist
Environmental Specialist
Food Safety Specialist
Occupational, Health and Safety
Specialist
Risk and Safety Management
Officers
242101
332302
4
6
8
7
5
6
7
8
8
5
5
6
Project Manager
Procurement Specialist/Officer
6
Page 73 of 97
47
Management and Organization
Analysts
242101
Financial Specialist (CA)
8
48
49
50
N/C
N/C
N/C
4
4
4
51
N/C
Rail Track Maintenance
Heavy Haul Logistics
Train and Maintenance Crew
Communication Technology
Design and manufacturing of
railway wagons for specific types of
freight
Rail Wheel interface
Foreman (Electrical Lighting and
Power)
Railway safety and security
inspectors
Railway safety auditors
Rolling stock specialists
52
53
Production Clerks
N/C
432201
54
Security Guards
541401
55
56
57
58
59
N/C
Government Regulatory Associate
Professionals not Elsewhere
Classified
Information and Communications
Technology Installers and Servicers
and Related Occupations
Business Services and
Administration Managers not
Elsewhere Classified
60
61
62
63
64
65
66
67
68
69
335914
672205
N/C
121901
N/C
Building and Related Electricians
Information and Communications
Technology Installers and Servicers
and Related
Occupations
Electronics Mechanics and
Servicers
Electrical Line Installers and
Repairers
Agricultural and Industrial
Machinery Mechanics and
Repairers
Welders and Flame Cutters
Sheet Metal Workers
Sheet Metal Workers
7
4
6
4
5
4
6
Telecoms Specialists
OHTE Specialists
Rail Operations Management
Specialists
6
6
Diesel and Electric locomotive
trainers
Electricians (Substations)
Examiner and Repairer
Telecommunications Technicians
6
6
671302
Service Technician – Telecoms
(Communication Technicians)
Cable Technician
653303
Wagon Fitter
4
651202
651302
651301
Platelayers
Boiler maker
Sheet Metal worker
4
4
4
671101
N/C
672205
672108
4
7
6
4
Page 74 of 97
5. ROAD PASSENGER
NO
1
2
UNIT GROUP
Business Services and
Administration Managers not
Elsewhere Classified
Human Resource Managers
3
4
5
Finance Managers
Bus and Tram Drivers
Supply, Distribution and Related
Managers
6
7
Sales and Marketing Managers
Agricultural and Industrial
Machinery Mechanics and
Repairers
Motor Vehicle Mechanics and
Repairers
Craft and Related Workers not
Elsewhere Classified
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Electrical Mechanics and Fitters
Craft and Related Workers not
Elsewhere Classified
Spray Painters and Varnishers
Policy Administration Professionals
Town and Traffic Planners
Management and Organization
Analysts
Driving Instructors
Policy Administration Professionals
Business Services and
Administration Managers not
Elsewhere Classified
Police Officers
Business Services Agents not
Elsewhere Classified
Personnel and Careers
Professionals
Police Officers
OFO CODE
121901
121905
OCCUPATION /SPECIALISATION
General Manager
Project Manager
NQF
6
7
121201
121202
7
6
121206
121101
733101
132402
Human Resource Manager
Business Training Manager/Skills
Development Facilitator
Health and Safety
Finance Manager
Bus Driver
Logistics Manager
132403
122105
653306
Road Transport Manager
Customer Service Manager
Diesel Mechanic
6
6
6
653101
Automotive Motor Mechanic
6
684905
Vehicle Body Builder
6
671208
684904
Auto Electrician
Panel Beater
5
5
643201
242203
216402
242101
Spray Painter
Company Secretary
Transport Analyst
Business Analyst
5
7
7
7
516501
242207
121908
Driving Training Officer/Technical
Compliance Officer
Quality Systems Manager
IT/Manager
5
5
7
541202
333908
Police Officers
Marketing Coordinator
5
6
242304
Industrial Relations Officer
6
541201
Traffic Officer
5
Page 75 of 97
6
7
4
6
NO
UNIT GROUP
1
Ship’s Engineer
2
Ships’ Deck Officers
and Pilots
3
Skilled Inland and
Coastal Waters Fishery
Workers
4
Engineer-Fishing
5
Ships’ Deck Crews and
Related workers
Supply, Distribution
and Related Managers
6
7
8
9
10
11
12
Supply, Distribution
and Related Managers
Services Managers not
Elsewhere Classified
Mechanical Engineers
Ships' Deck Officers
and Pilots
Electrical Mechanics
and Fitters
Human Resource
Managers
6. MARITIME
OFO CODE OCCUPATION/
SPECIALISATION
315101
Ship's Engineer
Chief engineer (< 750kW port operations)
Chief engineer (< 1500kW port operations)
Chief engineer officer (port operations)
Engineer officer
Second engineer (< 3000kW)
Chief engineer (< 3000kW)
Second engineer
Chief engineer
Electro technical officer
Chief engineer officer (special grade)
315201
Ship's Master
Master (< 200GT near-coastal)
Master (< 200GT)
Master (< 1600GT port operations)
Master (port operations)
Master (< 500GT near coastal)
Master (< 500GT)
Master (< 3000GT)
Master (special grade)
622201
Skipper (Fishing)
Skipper fishing (< 24m limited waters)
Skipper fishing (< 24m unlimited waters)
Skipper fishing (≥ 24m limited waters)
Skipper fishing (≥ 24m unlimited waters)
Deck officer fishing (< 24m)
Deck officer fishing (≥ 24m)
N/C
Engineer (Fishing)
Marine motorman Grade 2
Marine motorman Grade 1
Marine motorman Higher Grade
Second engineer (fishing)
Chief engineer (< 3000kW fishing)
Chief engineer (fishing) (unlimited)
735101
Deck Hand
Electro-technical rating
132407
Harbour Manager (harbour master = fishing
port / port captain = commercial merchant
port)
132407
Port Captain
143907
Dockmaster
NQF
6
6
4
4
4
5
5
7
214405
8
315203
Naval Architect
Ship's Surveyor
6
671202
Millwright (Electromechanician)
3
121201
Personnel / Human Resource Manager:
Crewing Manager
Business Training Manager
6
121202
Page 76 of 97
6
7. TAXI
NO
1
2
3
11
12
UNIT GROUP
Customer Service manager
Psychologists
Typists and Word Processing
Operators
Professional Services Managers not
Elsewhere Classified
Business Services Agents not
Elsewhere Classified
Personnel / Human Resource
Manager
Business Services and Administration
Managers not Elsewhere Classified
Business Services Agents not
Elsewhere Classified
Environmental and Occupational
Health and Hygiene Professionals
Personal Care Workers in Health
Services not Elsewhere Classified
Human Resource Managers
Personnel and Careers Professionals
13
14
Finance Manager
Policy Administration Professionals
15
Craft and Related Workers not
Elsewhere Classified
Motor Vehicle Mechanics and
Repairers
Spray Painters and Varnishes
4
5
6
7
8
9
10
16
17
18
19
Craft and Related Workers not
Elsewhere Classified
Electrical Mechanics and Fitters
20
Personnel and Careers Professionals
OFO CODE
122105
263404
413101
OCCUPATION /SPECIALISATION
Client Services Advisor
Behaviour Management Consultant
Word Processing Clerk
134903
Small business manager
333908
Marketing Coordinator
121201
Employee Relations Manager
121905
Programme or Project Manager
333905
Supply Chain Administrator
226302
Safety, Health, Environment and Quality
(SHE&Q) Practitioner
First Aid Attendant
532901
121205
242304
121101
242210
242207
242209
684905
Employee Wellness Consultant
Industrial Relations Officer
Resolution Practitioner
Finance Manager
Business Administrator
Compliance Officer
Accounting Officer
Vehicle Bodybuilder
653101
Motor Mechanic
643202
Vehicle Painter
684904
671208
242302
/Conflict
Panelbeater
Auto Electrician
Skills Development Facilitator / Practitioner
Page 77 of 97
NO
1
UNIT GROUP
Supply, Distribution and Related
Managers
2
Business Services and
Administration Managers not
Elsewhere Classified
Finance Managers
Industrial & Production Engineers
Elementary Workers not
Elsewhere Classified
Physical and Engineering Science
Technicians not Elsewhere
Classified
Electrical Mechanics and Fitters
Supply, Distribution and Related
Managers
Heavy Truck and Lorry Drivers
Supply, Distribution and Related
Managers
Advertising and Marketing
Professionals
Plumbers and Pipe Fitters
Database and Network
Professionals not Elsewhere
Classified
Human Resource Managers
Crane, Hoist and Related Plant
Operators
Freight Handlers
Stock Clerks
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
26
27
28
29
30
Air Conditioning and
Refrigeration Mechanics
Lifting Truck Operators
Environmental and Occupational
Health and Hygiene Professionals
Professional Services Managers
not Elsewhere Classified
Nursing Professionals
Information and Communications
Technology Service Managers
Clearing & Forwarding Agents
Policy and Planning Managers
Agricultural and Industrial
Machinery Mechanics and
Repairers
8. FREIGHT HANDLING
OFO CODE
OCCUPATION /SPECIALISATION
132402
Logistics Manager
132401
Freight Manager
132403
Cargo Manager
121905
Project Manager
121901
Business Operations Manager
NQF
6
7
121101
214101
862918
Finance Manager
Manufacturing Logistics Engineer
Artisan Aide Electrical
7
8
3
311905
Industrial Engineering Technicians
6
671202
132401
Millwright (Electromechanician)
Supply and Distribution Manager
4
6
733201
132404
Freight Operator
Warehouse Manager
5
5
243103
Marketing Practitioner
5
642607
252902
Pipe Fitter
Technical (ICT) Support Services
Manager
4
6
121202
734301
Business Training Manager
Crane or Hoist Operator
7
4
833303
432102
5
5
642702
Stevedore
Dispatching and Receiving Clerk /
Officer
Cold Storage Maintenance Serviceman
734402
226302
Forklift Operator
Safety Manager
4
6
134916
Stevedore Foreman
5
222101
133105
Occupational Health Nurse
Information Technology Service
Manager
Shipping Agents & Operators
Clearing & Forwarding Agent/Specialist
Clearing Agent/Customs
Dangerous Goods Professionals
Supply Planners
Planning Managers
SHERQ Manager
7
7
333101
N/C
N/C
121301
N/C
653306
Diesel Mechanic
Page 78 of 97
5
5
5
5
6
6
6
NO
31
32
33
34
35
36
37
38
39
UNIT GROUP
Mechanical Engineers
Industrial and Production
Engineers
8. FREIGHT HANDLING
OFO CODE
OCCUPATION /SPECIALISATION
N/C
Mechanical Technician
N/C
Electrical Technician
N/C
Industrial Technician
N/C
Hydraulics Technician
N/C
IT Technicians
N/C
Plumbing Technician
N/C
Artisan Electrical
214101
Industrial Engineer
N/C
Informatics Technician
Page 79 of 97
NQF
5
5
5
5
5
5
5
5.2 CRITICAL SKILLS
The table below lists the types of critical skills reflected in the WSP/ATR as per the 8
chambers.
Road Passenger
Driver Qualification
Management skills
-Generic
-Supervisory
-Human Resource
-Financial
-Business
management
Corporate
governance
Tendering process
Marketing
Communication
Compliance
Human resources
Legislative
development
Scheduling and
planning
Project
management
Supply chain
management
Customer Care
Conflict
management
First aid
Fire fighting
Wellness/Employee
Assistance
Health and Safety
Anger management
New Venture
Creation
Coaching and
Mentoring
Basic IR Skills
Forwarding &
Clearing
Call Centre
Management
Administrative &
Clerical
Human Resource
Transformation
Management
Freight Forwarding
Customs Clearing
Regulatory Training
Supply Chain
Management
Management Skills
Communication
Sales Skills
Information
Technology
Customer care
Project management
Material / Freight
handling
Logistics
Customs
Dangerous goods
Data Analysis
Road Freight
Aerospace
Maritime
Driving Skills
Dangerous Goods
Management
-Generic
-Supervisory
-Human Resource
-Financial
-Key Accounts
Project Management
Risk Management
Supply Chain
management
Procurement
Transport Logistics
- Networks
- Route
- Processes & Market
- Route Planning
- Operations systems
- data analysis
-Welding
-Business
Administration
-Sales Training
-Health & Safety
-Operations
(scheduling / business
principles / legislation)
-Marketing (business
contracts)
Enforcement (traffic
policing)
Health (illness /
nutrition / general
health)
ABET
IT basic and advanced
Customer Service
(Contact Centre)
Logistics
Warehousing
Refueling
Mentor and
Coaching
Sales
Training Skills
Customer Liaison
Negotiating client
contracts
HR Skills
Computer literacy
Health & Safety
Management Skills
Communication
Financial
Industry Legislation
Problem solving
Accounting
Quality Assurance
Management
Fire Fighting
Supervisory skills
Network
administration
Situation awareness
training
Sales clerks
Computer literacy
Passenger handling
staff
Fixed wing pilot
training, specifically
the progression from
Commercial (CPL)
level to Airline
Transport Pilot (ATP)
level
Assessor training for
flight instructors
Aircraft Maintenance
Staff – Mechanical,
electrical, structural
and avionics
Business
Practices &
Management
Compulsory
STWC&STWC
(revalidation
requirements)
Occupational
Health &
Safety
Long & Short
Range
Operations
HACCP
Leadership
Management
Navigation
Skills (Watch
Officer)
Fishing and
Merchant
Marine
Engineering
Skills (Watch
Officer)
Fishing &
Merchant
Marine
Fishing
Technologies
Fish hunting
Pilotage
AET
Lifeskills
HIV/AIDS
Fishing
Technologies
& Fish Hunting
Page 80 of 97
Rail
Transport Management
(Human Resources, equipment,
drivers, dangerous goods for all modes
of transport)
Supply Chain Management
(Production planning and logistics)
General Management (Leadership and
motivational skills)
IT
(handling, operations, administration
and management)
Train Driving
Railway Engineering
Train Management
Tracking of information in real time
E-commerce
GPS positioning and signalling
Wagon repairs and building
Rail wheel interface management
Track conditioning evaluation for
maintenance evaluations
Operational improvement
Cost containment
4PL
Joint Venture Management
Developing of monitoring system in
technical
environment & operations eg. Train
condition-monitoring system
Heavy haul logistics
Rail traffic management systems
development and implementation
Train and maintenance crew
communication technology
Design and manufacturing of railway
wagons
for specific types of freight
Rail track maintenance
Freight Handling
ABET / Transport Management
Supply Chain Management / Logistics
Management / General Management
Supervisory / HR / Finance
Administration / Key Account
Management / Customer Services
Safety Awareness / Technical
Operator Skills / Port Management
Business Development Management
Performance Management / Computer
skills
Mentorship /coaching /delegation
Discipline /IR skills / Planning and
budget / Performance assessment
Project management
Problem-solving /conflict management
Health and safety / Risk management
Fire-fighting / First aid
HIV/AIDS / Skills Development
Marketing management / Strategic
Analysis / Procurement
Security (physical, information,
people)
Facility management / Workplace
planning / Freight handling(materials)
Inventory systems
/ Transport
planning skills / Supply chain
management
Contract administration / Customer
care
Customs clearing / Machine operators
Picking /packing /slaughtering skills
Cargo coordinators / Cargo controller
Tally clerks / Data capturing
Coordinating skills / Literacy &
Numeracy
Food handling / Receiving &
Dispatching / Variable temperature
control / Professional driving / Truck
Driver / SHERQ Practitioner / Steer
operator
HR Manager / Employee wellness
Reefer handling / Skid steer
Aerial Platform / Front end loader
TLB Operator / Hatchman
Freight Operator
Taxi
Customer Services
Safety Awareness
Supervisory
Administration
Transport Management
Driver Qualification
Communication
Compliance
Management
-Generic
-Supervisory
-Human Resource
-Financial
-Business management
Customer Care
Conflict management
First aid
Health and Safety
Anger management
New Venture Creation
Basic IR Skills
Entrepreneurship
Small business
management
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5.3 CONCLUDING REMARKS
A major problem impacting adversely on the skills development environment is
the lack of a national labour market information system. As a consequence, users
of labour market information are making policy choices and public investments in
education and training without credible data. An additional problem facing SETAs
is that no occupational forecasting is undertaken by research agencies or
government departments. Therefore it is not possible to predict future skills
demands within reliable parameters.
With these limitations, the only reliable sources of occupational supply-demand
information are analysis of job adverts conducted by CareerJunction.
CareerJunction is a web service through which Recruiters and Career Seekers
interact in a secure and completely confidential environment. CareersJunction
uses its website which includes job vacancies advertised in the Sunday Times
Careers section.
Road transport, according to StatsSA (2011), makes up 62% of the total sector.
TETA therefore should focus considerably on improving skills in this sector.
High skills occupations (Managers/Professionals/ Technicians) constitute 26.1%;
intermediate skills (Clerks/Sales and Service/Crafts and Trades) make up 20.6%
and low level skills; (Plant and Machinery/Elementary) comprise 53.3%. A high
percentage of people are in the low skills category (53%). 2 There is an opportunity
to move people with low level skills into the intermediate category. Likewise there
are opportunities for those with intermediate skills to move into the high skills
category with meaningful education and training interventions.
TETA should focus on FET qualifications since a large number of workers (308 035
and 106 347)3 need to access education and training in this band. This effectively
makes up 66% of the workforce.
A strong feature of the transport sector is that Whites dominate the upper end of
the occupational spectrum, whilst Blacks (Indians, Coloureds and Africans are
located at intermediate and lower levels).
There is clearly a need for TETA to become more active in supporting Blacks,
especially Africans, through skills development to occupy senior and high level
occupations in transport. Affirmative Action should be a very high priority of the
skills agenda for the transport industry.
The mandatory grant system is not been effectively utilised by firms in the
transport sector. The very low penetration rate (the total number of workers by
the number actually trained per occupational level) means that training
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interventions do not reach scale in the transport industry and are unlikely to have
a meaningful impact of improving the skills base of the industry. In short, more
people need to receive training in the industry than is currently the case.
The recession has weakened labour demand in the transport sector as a result of
reduced trade activities. During tough economic times firms are reluctant to hire
new staff. Recruitment currently in the sector is “easy” according to
CareerJunction. On average there are 21.79 new career seekers per job
advertised.
There is a strong demand for engineering-type occupations in the sector.
Mechanical, electrical and electronic engineering appear to be in very strong
demand. At artisanal level, fitting and turning are popular. This is followed by
procurement, supply chain and logistics occupations.
The lack of training berths remains a major impediment to the training of
seafarers in the maritime sector. In addition, changes in international protocol /
legislative environment are also causing pressures on both the demand and supply
of skills to this sector. Amendments to the standards of training, certification and
watch-keeping (STCW) in Manila have resulted in various new licensing
requirements for seafarer certification.
The Manila Convention, which takes effect on 01 January 2016, will result in
increased demand for training (especially re-validation of qualifications) as well as
increased cost to the supply environment as providers align their training to the
new requirements. The imminent promulgation of new standards for the fishing
sector (STCW-Fishing), while broadly regarded as crucially important to skills
development, will have similar consequences to the demand and supply of skills.
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CHAPTER SIX: STRATEGIC FRAMEWORK
Chapter Six recommends a set of skills development priorities for the transport sector in the
form of a strategic framework. These priorities are drawn from the research findings of
preceding chapters and take cognisance of government initiatives including, but not limited
to, the Department of Higher Education and Training Guide to the Process and Time Frames
for Developing Sector Skills Plans and the NSDS III, Framework for the National Skills
Development Strategy 2011/12 – 2015/16 and President’s Priorities and the Medium-Term
Strategic Framework.
The purpose of this chapter is to offer the stakeholders of the Transport Sector Education
and Training Authority a strategic framework for skills development over the next 5 years.
Ten broad skills development priorities have been identified based on the research. These
priorities lay the foundation for framing a service level agreement between TETA and the
DHET.
6.1 PERFORMANCE MONITORING AND EVALUATION
The Strategic Framework incorporates the broad precepts of government-wide performance
monitoring and evaluation framework for programmes where the high level strategic
approach in the SSP is regarded as providing the broad impact, outcome and output
indicators and measures for the annual strategic business plans and service level agreements
that the SETA will adopt and sign-off with the Department.
OPINION-BASED INDICATORS
Data gathered through surveys
DIRECT INDICATORS
Data gathered mainly by
management information
systems
RELATIONSHIP INDICATORS
Indicators
Calculated using a combination
of direct indicators and other
data
IMPACTS
Equity
Types of direct
indicators
Quantity
Quality
Cost / Price
Timeliness
Start and end times
Distribution
Adequacy
Accessibility
Indicators
OUTCOMES
Effectiveness
Indicators
OUTPUTS
Indicators
ACTIVITIES
Efficiency
Economy
Indicators
INPUTS
Source: National Treasury, 2007, Framework for Managing Programme Performance
Information
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6.2 STRATEGIC FRAMEWORK
The strategic goals for TETA over the next five years are as follows:
STRATEGIC GOAL 1: Establish a credible institutional mechanism for skills planning and build
and sustain research capacity on labour markets within TETA
RATIONALE: TETA is committed to building institutional labour market research capacity. This
involves strengthening the existing skills research and planning unit. There is a need to review
the existing research strategy and offer multiple interventions to improve labour market
intelligence. Staff development programmes should focus on analysis of labour markets;
statistics for managers; alignment of industrial policy, skills strategies and labour markets;
labour economics; theoretical understanding of skills shortages; labour market information
systems and occupational supply and demand analysis.





Strategic Priority
Implement research
strategy
Appointment of full- or
part-time labour market
researcher
Support the development
of emerging researchers
Conduct training,
coaching and mentoring
interventions to improve
staff research capacity
Develop an all year
programme for SSP
development
Research staff attend at
least one conference on
skills research
Build a research
repository for the sector
Hold at least 2 in-house
workshops on sectoral
research
Conduct tracer study and
skills audit
Establish an impact
evaluation mechanism in
the SETA
Research on supporting
FET College and university
partnerships
Indicator
 Number of activities
undertaken
 Employment contract
Success Factor
 Number of milestones
reached
 Researcher appointed
 Internships
 Number of emerging
researchers supported
 Training session conducted
 Coaching and mentoring
takes place
 Number of activities
undertaken
 SSP Plan
 Number of activities
undertaken
 Number of conferences
attended
 Presentation by staff
member to colleagues
 Membership with research
institute
 Number of workshops held
 Number of memberships
with research bodies.
 Two workshops takes
place
 Appointment of service
provider
 Number of graduates
tracked
 Studies published
 Approval of project
 Number of partnerships
 Conduct skills audit,
 Approval of project
 Research reports
impact study and tracer
study
FUNDING:
Administration
budget and Discretionary
grants.
BUDGET: R2 390 000






 Report published
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STRATEGIC GOAL 2: Increase access to occupationally directed programmes to address critical
and scarce skills shortages
RATIONALE: The establishment of the QCTO and the shift towards occupationally-directed
qualifications has necessitated that TETA accelerate the re-curriculation of legacy qualifications
to meet the QCTO requirements. In addition, new qualifications should be created to address
scarce skills not covered by existing qualifications. New OFO codes should be created new
occupations.


Strategic Priority
Develop a business plan
and budget
Research study on usage
and number of
enrolments on TETA
accredited qualifications,
including Learnerships
and apprenticeships
 Scoping study undertaken
to determine the number
and types of qualifications
to be curriculated
 Mapping of qualifications
to OFO Framework and
NQF
 Training of staff and CEPs
on new qualification
requirements
 Development of
occupationally directed
qualifications
 Consultation sessions with
stakeholders
FUNDING:
Discretionary
grants.
Indicator
 Approval of plan and
budget
 Criteria for eligibility of
qualifications
 Evidence of usage of
existing qualifications
 Evidence of mapping of
qualifications
Success Factor
 Number of legacy and new
programmes recurriculated
 Number of qualifications
identified for development
 Report indicating the
number and types of
programmes to be
curriculated
 All qualifications mapped
 Number of training
interventions
 Staff and CEPs trained
 Number of qualifications
 Number of qualifications
developed
 Number of consultative
sessions
BUDGET: R3 000 000 for
business planning, research,
training and workshops
 Sessions held
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STRATEGIC GOAL 3: Improve the competitiveness and job creation propensity of SMMEs by
creating greater access to skills development
RATIONALE: Virtually all policy pronouncements of government, including NSDS lll accentuates
the importance of supporting SMMEs for job creation. SETAs have generally found it challenging
to convince SMMEs to participate in the levy- grant system. Many micro-enterprises have been
excluded from compulsory skills levies due to the minimum thresholds set in the SDL Act. The
criteria for accessing discretionary grants and the bureaucratic burdens associated with it have
also meant that SMMEs are reluctant to participate in initiatives. Notwithstanding, the majority
of companies on the TETA database are classified as SMMEs with fewer than 50 employees.





Strategic Priority
Conduct research on the
skills development and
enterprise development
needs of SMMEs
Develop an SMME Skills
Development Strategy for
the Transport Sector
Consultation sessions with
stakeholders
Implementation of SMME
strategy
Establish of a portal for
SMME support
FUNDING:
Discretionary
grants.
Indicator
 Terms of Reference for
study
 Stakeholder engagement
Success Factor
 Study published
 Terms of reference for
strategy
 Study published
 Number of consultative
sessions
 Number of SMMEs
participating in a range of
TETA activities
 Specifications for portal
 Sessions held
 Increased participation of
SMMEs
 Impact evaluation
 Portal functional
BUDGET: R3 500 000 for
business planning, research,
training and workshops
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STRATEGIC GOAL 4: Skills planning for a green Transport Sector
RATIONALE: The challenge of transitioning from the current economy onto a green economy is
a formidable one and requires a platform for engagement in the transport sector. A green
Transport Sector will not be brought about by policies only: it must be taken up by stakeholders
at large as a principle guiding the many choices each employer makes every day. Skills
implications to achieve the green Transport Industry target are considerable, varied and
encompass all sub-sector. Availability of skills for green jobs plays a crucial role in triggering
change and facilitating just and timely interactions. There is a necessity to look at emerging,
changing and rapidly growing industries, as well as occupations that are completely new
(emerging) and /or require new knowledge, skills and abilities.





Strategic Priority
Conduct a comprehensive
needs study on green
skills and occupations for
the sector
Develop Green Skills
Strategy for the Transport
Sector
Consultation sessions with
stakeholders
Implementation of Green
Skills Strategy
Workshop/seminar on
green skills in the
transport sector
 Establish partnerships
with DoT, CSIR and DEAT
for promoting a green
economy
FUNDING:
Discretionary
grants.
Indicator
 Identification of green
skills, occupations and
qualifications
Success Factor
 Study published
 Terms of reference for
strategy
 Strategy published
 Number of consultative
sessions
 Number of employers
participating in a range of
green activities
 Number of participants
 Sessions held
 Number of partnerships
 Participation of partners in
TETA activities
 Increased participation
 Impact evaluation
 Workshop/seminar held
BUDGET: R500 000
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STRATEGIC GOAL 5: Increase the pool of artisans in the sector
RATIONALE: According to NSDS lll South Africa's pool of intermediate skills, especially artisanal
skills, is too low to support national and sector development and growth. The workforce is not
keeping up with the skills needed to remain competitive in an increasingly knowledge-based
economy. The TETA should contribute to building the base of intermediate level skills by giving
particular attention to occupations in this band. These occupations have been identified in the
Priority and Scarce Skills Lists.
Strategic Priority
 SETA identify priority
occupations and scarce
skills at middle level
Indicator
 Number of
apprenticeships
registered
 Identify public FET
Colleges and universities
that that deliver learning
leading to full
qualifications on NQF
 Number of grants given
Partnerships with FETs
and HETs
 Allocate grants for
middle level training as
part of project
FUNDING:
grants.
Discretionary
 Qualifications for grants
should address previously
disadvantaged youth –
rural, race, gender,
disability, family income
Success Factor
 Number of learners trained
at middle level
 Number of graduates
 Number of FET Colleges and
universities participating in
this project
BUDGET: R10 million
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STRATEGIC GOAL 6: Promoting the growth of a public FET college system that is responsive to
sector, local, regional and national skills needs and priorities.
RATIONALE: NSDS III states the public FET college system is central to the government’s
programme of skilling and re-skilling the youth and adults. Its transformation is key to the
integration of education and training and responding to the skills needs in our country. In recent
years, FET colleges have been striving to make the transition from their former status as
technical colleges to being responsive and vibrant post-school institutions for vocational
education.
Strategic Priority
 Establish a capacity-building
project for FET Colleges that
would include the
following: curriculum
development;
understanding the TETA
Sector; labour market
research to measure
responsiveness;
collaboration between
colleges and industry;
lecturer development; RPL
and assessment.
FUNDING:
grants.
Discretionary
Indicator
 Public FET Colleges
 Rural spread
 Capacity-building toolkit for
FET Colleges
Success Factor
 Number of engagements
 3 provincial workshops
 Dissemination of toolkit
BUDGET: R2.5 million
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STRATEGIC GOAL 7: Addressing youth unemployment and employability
RATIONALE: NSDS lll states that a high proportion of young people who exit school before
completing a senior secondary qualification stand little chance of participating productively in
the economy. To illustrate the severity of the problem, there are approximately 3 million
youths, aged between 18 and 24 years, who are not in employment, education or training, have
a poor educational foundation and are poorly prepared to undertake further learning. If the age
group is expanded to take into account the 16 to 18 year-olds who have dropped out of school
and are not in training or employment as well as the 25 to 35 year-olds who have remained
unemployed since leaving full time education, the number is much higher.
Strategic Priority
Indicator
 Budget approved
 ToR established
 Project assigned.
Success Factor
 Number of work
placements and internships
– about 30 per chamber.
 Number of jobs created
 Two day workshop with FET
Colleges on unemployment
and employability
 Employability and job
 Workshop held
FUNDING:
grants.
BUDGET: R2 million
 Establish a national
internship and work
placement project in
partnership with local
municipalities, FET Colleges
and chambers of commerce
Discretionary
creation
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STRATEGIC GOAL 8: Increasing submissions of WSP/ATRs, especially SMMEs.
RATIONALE: NSDS III mentions that South Africa is challenged by low productivity in the
workplace, as well as slow transformation of the labour market and a lack of mobility of the
workforce, largely as a result of inadequate training for those already in the labour market.
The New Growth Path and National Development Plan adopted by government calls for
increased workplace training of workers already in employment in order to improve productivity
and the overall growth and development of our economy. To address this challenge, the NSDS
III, through both the mandatory and discretionary grants of the SETAs, must support training of
employed workers, and encourage employers to expand such training, in order to improve the
overall productivity of the economy and address skills imbalances in our workforce in particular
and the labour market in general. Accordingly, emphasis will be placed on the use of the levygrant system with investment into our overall skills agenda.
Strategic Priority
 Promote critical skills
training by companies in the
mandatory grant process
Indicator
 Number of WSP/ATR
submissions
Success Factor
 Measuring impact
 Promote submission of
WSP/ATRs
 Number of WSP/ATR
submissions
 Measuring impact
 Develop an RPL strategy
and plan
 Implementation of RPL
 Number of RPL assessments
FUNDING:
grants.
BUDGET: R2 million
Discretionary
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STRATEGIC GOAL 9: Building career and vocational guidance especially to encourage females
to enter the sector
RATIONALE: NSDS III states that our entire skills development system must dedicate the
necessary resources to support career and vocational guidance, as this has proved to be a
critical component in successful skills development initiatives world-wide. There is also a need
to encourage females into the sector. The preceding research indicates that females, especially
blacks, are under-represented in higher levels of the occupational structure.
Strategic Priority
Workshop in KZN, W Cape
and Gauteng on the
changing nature of work
in the sector
Indicator
 Approval of workshop
Success Factor
 Workshops held

Updating career guide
 Guide updated
 Dissemination of guide

Workshop with FET
Colleges to discuss career
prospects in sector
 Approval of project
 9 workshops (one per
region)

Development and recurriculation of
qualifications aligned to
QCTO requirements
 Qualifications Management
Body to develop, align and
submit qualifications per
year to QCTO
 qualifications aligned

Development of career
pathways in sector
 Approval of project
 Number of pathways
developed

Identify and profile the
key occupations in the
Energy and Water Sector
and publish the results
thereof in a handbook of
occupations relevant to
the EWSETA.
 Handbook
 Occupational profiling
 Job or post profiles
 Handbook published
 A workshop to encourage
women in management
 Workshop held
 Outcomes of the workshop
FUNDING:
grants
BUDGET: R3 million

Discretionary
identified
Page 93 of 97
STRATEGIC GOAL 10:
Support rural development, including NGOS, CBOs and other
organisations in rural areas
RATIONALE: There is a need for TETA to pay greater attention to support rural development in
the sector. This is a key aspect of the national policy goals of government. Traditionally the focus
of TETA has been urban development. There is a need for TETA to know more about rural
development before embarking on a series of programmatic interventions.
Strategic Priority
Conduct research on the
skills development and
enterprise development
needs in rural
communities
Indicator
 Terms of Reference for
study
 Stakeholder engagement
Success Factor
 Study published

Devise a Rural
Development Strategy for
the Transport Sector
 Terms of reference for
strategy
 Study published

Consultation sessions with
stakeholders
 Number of consultative
sessions
 Sessions held

Implementation of rural
strategy
 Number of rural
organisations participating
in a range of TETA activities
 Increased participation of
SMMEs
 Impact evaluation

Establish partnership with
organisations working in
rural areas
 Workshop
 Skills interventions
 Number of interventions

FUNDING:
grants.
Discretionary
BUDGET: R1 500 000 for
business planning, research,
training and workshops
Page 94 of 97
STRATEGIC GOAL 11: Make an active contribution to Strategic Integrated Projects (SIPs)
RATIONALE: 18 SIP projects have implications for the transport sector. SIPs will lay the basis for
job creation, economic growth and poverty alleviation. The downstream effect of SIPS will be
greater demand on the transport sector to offer services. This translates to higher skills demand.
SIPs will necessitate that TETA playa a catalytic role in skills development in all 18 SIPs spatial
areas as demand in these areas is expected to pick up exponentially. TETA has been allocated
SIPs projects 1, 2 and 7 wherein it is expected to play an active role.
Strategic Priority
Conduct an alignment of
SIP projects 1, 2 and 7 to
SETA Strategic Plan
 Determine skills
development priorities
from SIPs project 1, 2 and
7 for TETA
 Board approval of SIP
interventions
 Monitor implementation
of SIPs
FUNDING:
Discretionary
grants.

Indicator
 List of interventions
identified
Success Factor
 Develop a response to
implement interventions
 Number of priorities and
interventions
 Priorities and interventions
identified
 Budget approved
 Implementation of
interventions
 Report published
 Number of activities
BUDGET: R5 000 000 for
business planning, research,
training and workshops
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REFERENCES
Bird, A. DHET, SIPs Presentation, 2013
CareerJunction Index, (2013), CJI: Index (March). www.cji.co.za
Development Bank of Southern Africa (DBSA). 2012. The state of South Africa’s
infrastructure: opportunities and challenges.
Department of Labour, 10th CEE Annual Report 2011-2012. www.labour.gov.co.za
DHET (2012), National Skills Development Strategy lll. www.dhet.gov.za
Department of Labour, 10th CEE Annual Report 2006-2007. www.labour.gov.co.za
Department of Labour, 10th CEE Annual Report 2012-2013. www.labour.gov.co.za
Economic Intelligence Unit (2013), International database of 187 countries.
www.eiu.com
Independent Development Corporation (4th Q 2012), Sectoral Trends:
performance of the primary and secondary sectors of the South African economy,
Sandton, South Africa.
SAIRR (2013), National Survey (2011-12). www.sairr.org.za
Statistics SA, Website, 2013, GDP figures.
Statistics SA, South African QLFS, Quarter 2, 2013.
Statistics SA, Labour Force Survey, Historical Revision, March, Series 2001 to 2010.
Statistics SA, Labour Market Dynamics in South Africa, 2008.
Statistics SA (2011), Labour Dynamics 2010. www.statssa.gov.za
TETA Annual Report, 2012-2013.
TETA Strategic Plan, 2012/13 – 2015/16
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