A PROFILE OF THE FURNITURE SUB-SECTOR IN SOUTH AFRICA Research conducted for the Forest Industries Sector Education and Training Authority Human Sciences Research Council Employment and Economic Policy Research (EEPR) J.C. Erasmus March 2004 ©HSRC ACKNOWLEDGEMENTS The Department of Labour commissioned a National Skills Survey in 2003, which included all Sector Education and Training Authorities (SETAs). The Department of Labour has kindly allowed the analysis of the responses of employers in the Forest Industries Sector to supplement the data submitted by employers in their workplace skills plans. The project team wishes to use this opportunity to thank all the stakeholders who provided information for the study. We appreciate their time and effort. We would also like to thank Simangaliso Mkhwanazi from FIETA for his support throughout the study. Research Team: Human Sciences Research Council Employment and Economic Policy Research: Executive Director: Miriam Altman Johan Erasmus Joan Roodt CONTENTS PROFILE OF THE FURNITURE SUB-SECTOR........................................................................... 66 Industrial coverage ........................................................................................................................................ 66 Employers in the furniture sub-sector ......................................................................................................... 66 Geographical distribution of employers in the furniture sub-sector ........................................................ 67 Distribution of employers by size category ................................................................................................. 68 DRIVERS OF CHANGE IN THE FURNITURE SUB-SECTOR ..................................................... 69 Contribution................................................................................................................................................... 69 Information and Communications Technologies (ICTs) ........................................................................... 70 SMME development ...................................................................................................................................... 70 DEMAND FOR SKILLS ................................................................................................................ 71 Quantification of the labour market ............................................................................................................ 71 Active furniture companies ......................................................................................................................... 71 Levy paying furniture companies ................................................................................................................ 72 Geographical distribution of the workforce................................................................................................. 73 Population group distribution ...................................................................................................................... 74 Gender distribution ....................................................................................................................................... 74 Age distribution ............................................................................................................................................. 75 Occupational distribution ............................................................................................................................. 75 Qualifications ................................................................................................................................................. 76 SKILLS SHORTAGES.................................................................................................................. 76 SKILLS GAPS .............................................................................................................................. 77 Other factors influencing skills needs .......................................................................................................... 78 WORKPLACE TRAINING IN THE FURNITURE SUB-SECTOR .................................................. 80 Infrastructure ................................................................................................................................................ 82 Actual training provided ............................................................................................................................... 83 Claiming grants ............................................................................................................................................. 84 Learnerships .................................................................................................................................................. 84 SUPPLY OF SKILLS .................................................................................................................... 85 Training providers......................................................................................................................................... 85 Skills to Furnish International (SFI) ............................................................................................................ 86 Prestige Training ......................................................................................................................................... 88 Furniture Technology Centre (Furntech) ..................................................................................................... 88 Projects ........................................................................................................................................................... 90 Shintsha Furniture Project ........................................................................................................................... 90 Furniture Manufacturing Skills Development (FMSD) .............................................................................. 91 Other training initiatives .............................................................................................................................. 92 LIST OF TABLES: FURNITURE SUB-SECTOR Table 28: Active levy paying furniture companies listed in the SARS database, according to SIC Code ...................................................................................................................................... 66 Table 29: Provincial distribution of furniture manufacturing SMMEs .............................................. 69 Table 30: Employment in active furniture companies, according to size category ......................... 71 Table 31: Employment in levy paying furniture companies, according to size category ................. 72 Table 32: Distribution of the workforce in the furniture sub-sector, by province ............................. 73 Table 33: Occupational distribution of workers, by race and by gender ......................................... 75 Table 34: Activities used to meet skills needs ............................................................................... 76 Table 35: Skills that need to be upgraded in NSS companies ....................................................... 77 Table 36: Occupations needing their skills upgraded .................................................................... 78 Table 37: Factors that would influence training decisions .............................................................. 79 Table 38: Reason for turnover....................................................................................................... 80 Table 39: Levy paying companies that have submitted a WSP to FIETA ...................................... 81 LIST OF FIGURES: FURNITURE SUB-SECTOR Figure 12: Distribution of levy paying furniture companies, by province (N=833) ........................... 68 Figure 13: Distribution of furniture companies, by size category.................................................... 68 Figure 14: Population group distribution of workers, according to occupational category .............. 74 Figure 15: Gender distribution of workers according to occupational category .............................. 75 Furniture Sub-sector PROFILE OF THE FURNITURE SUB-SECTOR Industrial coverage According to the FIETA’s Sector Skills Plan, the furniture sub-sector includes in its delineation upholstery, bedding and curtaining, i.e. textiles in addition to timber. The furniture sub-sector represents activities classified according to the following SIC Codes: 32291 Coffins (excluding the manufacture of coffins by funeral undertakers) 39103 Manufacture of furniture made predominantly of materials other than metal, plastic or concrete 39105 Furnishing of ships 39106 Cane furniture 39107 Bedding 39108 Curtaining 39110 Caravan furniture Employers in the furniture sub-sector An analysis of the SARS database of FIETA companies shows that a third of them fall into the furniture sub-sector (Table 3). However, 258 companies of the 1 344 companies listed in the SARS database were identified (by the Department of Labour) as not active (“cannot be traced”, “estate”, “stopped trading”, “de-registered” or “unknown”) and were excluded from the analysis (Column B, Table 28). Three quarters (76,7% or 833 companies) of the 1 086 active companies pay skills development levies (Column E, Table 28). Companies that manufacture wood furniture dominate the furniture sub-sector, accounting for almost 80% of the 833 active levy paying companies in the sub-sector (Column G, Table 28). Table 28: Active levy paying furniture companies listed in the SARS database, according to SIC Code Companies in SARS database Column: Code Description 0 Not classified 32291 Coffins (excluding the manufacture of coffins by funeral undertakers) 39103 Manufacture of furniture made predominantly of materials other than metal, plastic or concrete 39105 Furnishing of ships 39106 Cane furniture A B Not Total Active 138 2 C D E Levy %¹ Active paying 1.4 136 87 F G %² %³ 64.0 10.4 32 8 25.0 24 20 83.3 2.4 1080 234 21.7 846 660 78.0 79.2 6 100.0 0.7 6 0 0.0 6 17 0 0.0 17 12 70.6 1.4 66 Furniture Sub-sector Companies in SARS database Column: Code Description 39107 Bedding 39108 Curtaining 39110 Caravan furniture Total A B C D E Not Levy %¹ Active Total Active paying 40 8 20.0 32 28 28 5 17.9 23 3 1 33.3 2 1344 258 19.2 1086 F G %² %³ 87.5 3.4 78.3 2.2 2 100.0 0.2 18 833 76.7 100.0 ¹ Inactive companies as a percentage of all the companies listed in the SARS database. ² Levy paying companies as a percentage of all active companies listed in the SARS database. ³ Distribution of levy paying companies, according to SIC code. Source: SARS database. The major players in this sector are: Afman Bedding Cape (Pty) Ltd Metz Bedding (Pty) Ltd Alpine Upholstery (Pty) Ltd Pat Cornick (Pty) Ltd Bakker and Steyger Peach & Hatton Bress Design (Pty) Ltd Seating Transkei Cantoni Lounge (Pty) Ltd Steincraft Edblo Transvaal (Pty) Ltd Steinhoff Manufacturing Pty Ltd Entrex (Pty) Ltd Strandfoam Group Gommagomma Showwood Transvaal Mattress and Furniture Company Grafton Furniture Manufactures (Pty) Ltd Harfred Products Unita Planned Furniture Loungefurn Industries (Pty) Ltd Victoria Lewis Lylax Bedding Woodline Megacor cc Timbersa.com, South Africa’s online information and trading portal for the timber, furniture and related industries, listed and additional 73 furniture companies that are not on the SARS Database (Appendix A). Geographical distribution of employers in the furniture sub-sector Almost half the 833 levy paying companies in the furniture sub-sector are concentrated in Gauteng (41%). A quarter of the companies are located in the Western Cape and 18% in KwaZulu-Natal (Figure 12). Between six percent (Eastern Cape) and one percent (Northern Cape) of all furniture companies are located in the other provinces. 67 Furniture Sub-sector Figure 12: Distribution of levy paying furniture companies, by province (N=833) Limpopo Mpumalanga 2% 3% Free State 3% North West 2% Northern Cape 1% Eastern Cape 6% Gauteng 41% KwaZulu-Natal 18% Western Cape 24% Source: SARS database. Distribution of employers by size category The majority of companies classified as falling into the furniture sub-sector of the Forest Industries Sector employ less than 50 workers and can therefore be classified as small (Figure 13). The size category distribution of active furniture companies and the size category distribution of active levy paying companies do not differ significantly. Between five and six percent of the companies employ 200 or more workers and can be classified as large. A further 15% are medium-size companies, with between 50 and 199 employees. Figure 13: Distribution of furniture companies, by size category Large 5% Large 6% Medium 15% Small 80% Medium 15% Small 79% Active companies N=1085 Levy paying companies N=833 Source: SARS database. It is estimated that 1 029 of the 1 085 active furniture companies on the SARS database are small, medium and micro enterprises (SMMEs). From Table 29, below it can be seen that SMME furniture manufacturers are concentrated primarily in Gauteng, followed by the Western Cape and KwaZuluNatal. This trend is confirmed by a recent Survey of furniture manufacturing SMMEs, conducted by JET, Manto Management and CASE (2003). 68 Furniture Sub-sector Table 29: Provincial distribution of furniture manufacturing SMMEs SARS Province JET Consortium Survey Listed % Identified % Verified % Geographic locations¹ Gauteng 378 36.8 419 38.8 269 37.5 Johannesburg, Tshwane, Vaal Western Cape 303 29.5 356 33.0 278 38.8 Cape Town, George, Knysna KwaZulu-Natal 223 21.7 199 18.4 110 15.3 Durban Free State 28 2.7 30 2.8 12 North West 21 2.3 10 0.9 8 1.1 Rustenburg/Brits 7 1.1 10 0.9 9 1.3 Kimberley Northern Cape Sub total 960 94.1 Eastern Cape 33 3.2 Mpumalanga 23 2.1 Limpopo 12 0.7 Total 1080 100.0 1.7 Bloemfontein 717 100.0 Total ¹The survey did not cover all nine provinces. 1029 100.0 Source: SARS database. Source: Survey of furniture manufacturing SMMEs. DRIVERS OF CHANGE IN THE FURNITURE SUB-SECTOR Contribution South African wooden furniture producers are important for South Africa in terms of employment and their contribution to economic growth and exports. According to Moodley (2002) furniture accounted for 3,5 percent of total manufacturing employment and 2,7 percent of total manufacturing exports between 1995 and 1999. Of the labour-intensive sectors, furniture is the highest net exporting sector and had the best performance figures between 1995 and 1999. Exports in furniture grew from less than five percent in 1992 to over 40% in 1999. This exceeded the export/sales ration in the South African manufacturing sector as whole. South African wooden furniture producers had been inwardly oriented due to state protectionism and import substitution industrialization during the apartheid era. South African wooden furniture producers have to become connected into global value chains to grow exports in order to provide sustainable growth and to survive in the long-term (Moodley, 2002). Increasingly shifting the focus to exports markets is needed due to the following reasons: The local market is small, making it difficult to sustain economies of scale. Furniture manufacturers often produce small volumes of a range of wooden furniture products. Under such circumstances, the higher volumes and higher prices offered by the export market present a superior growth trajectory for South African wooden furniture producers. The potential for growing the domestic market in South Africa in the short term is not great. Furniture is a consumption good and South Africa, being a developing country has a depressed 69 Furniture Sub-sector construction and building industry, high unemployment, a sluggish economic growth rate and high levels of poverty and inequality. Information and Communications Technologies (ICTs) According to Moodley (2002) e-commerce capabilities is critical for South African wooden furniture producers to maintain access to international markets. This Moodley ascribes to current pressures of globalisation and the challenge to direct market expansion. During the 1990s there has been a reorganisation of the wooden furniture industry into new global-scale value chain and production network configurations. Furniture production has become globally dispersed and competition between countries has intensified. E-commerce capability is likely to become influential in determining the export success of producers in developing countries. Sectors and countries that have experienced the most rapid diffusion of information and communications technologies (ICTs) have also experienced the most rapid rates of employment and output growth. However participation in e-commerce by South African wooden furniture producers is limited due to the lack of infrastructure and awareness, high costs of Internet connectivity and inadequate skilled human resources. Over the last three years Timbersa.com has established itself as a respected source of information for overseas buyers and merchants seeking products from the southern Africa region (Export Trade Directory 2003). An initiave of the SA Lumber Millers’ Association (SALMA), the Internet Clearing Desk (ICD) was established in 2001 and was placed on the Timbersa website for management and operation. The ICD is the result of a partnership between the timber, furniture and value-added industries, government and media players. Building on the success of its timber enquiries desk, Timbersa.com, with the support of the Furniture Federation of South Africa (Fedfurn), has recently launched its online furniture showcase (Export Trade Directory 2003). Manufactures now have a forum to showcase their products. Negotiations are initiated by Timbersa Internet Clearing Desk (ICD) through telephonic, e-mail and one-on-one discussion. The plan is also to put in place a specialist advisory service designed to actively assist newcomers to export with information on standards, plant, export and transactional requirements. This service will draw on the specialised expertise and capabilities of individuals and organisations in the various export disciplines. SMME development The Forest Industries Education and Training Authority’s (FIETA) Shintsha furniture Project that is being funded by the National Skills fund, will lay down the groundwork for future development in the South African furniture industry (Wood SA & Timber Times, November 2003). The project has 70 Furniture Sub-sector been scoped to target the small, medium and micro enterprises (SMMEs) within the local furniture sector. The initiative has also been challenged with introducing a very new product into the sector, namely space-saving furniture for low-cost housing projects. Through links with institutions such as the Department of Trade and Industry, the project also intended to bring to the SMMEs business development support. Another benefit that the initiative will bring to SMMEs is a culture of learning into their workplaces. DEMAND FOR SKILLS Quantification of the labour market Employment data in the SARS database of levy-paying employers was used to estimate the number of workers in the furniture sub-sector. It should be decided whether the employment figures of levy paying companies only would be used to estimate employment in the sub-sector. The difference in the estimated total employment in active companies on the SARS database and levy paying employers is as high as 7 400 workers. Active furniture companies Employment figures were stated for almost half (42,6% or 462) of the active furniture companies listed in the SARS database (Table 30). These companies collectively employed 19 959 workers, giving an average of 43 workers each. Large companies employed an average of 353 workers each, medium-size companies employed 101 workers each, and small companies 12 workers each. If the size category distribution of the active companies for which employment figures are known is extrapolated to the total number of active furniture companies listed in the SARS database, and the average number of workers per size category is assumed to apply generally, then an estimated 46 873 workers are employed in the furniture sub-sector. Table 30: Employment in active furniture companies, according to size category Large Medium Small Sub-total Not classified Total Number of companies 24 68 370 462 623 1085 % Distribution 2.2 6.3 34.1 42.6 57.4 100.0 8460 6887 4612 19959 Mean (workers per company) 353 101 12 43 Employment according to size 42.4 34.5 23.1 100.0 Total employed 71 Furniture Sub-sector Table 30 continued: Employment in active furniture companies, according to size category Projected distribution Large Medium Small Total Number of companies 56 160 869 1085 % Distribution 5.2 14.7 80.1 100.0 Mean (workers per company) 353 101 12 43 19868 16174 10831 46873 42.4 34.5 23.1 100.0 Estimated no of employees Employment according to size Source: SARS database. Levy paying furniture companies Employment figures were stated for almost half (47,7% or 397) of the levy paying furniture companies listed in the SARS database (Table 31). These companies collectively employed 18 815 workers, giving an average of 47 workers each. Large companies employed an average of 361 workers each, medium-size companies employed 101 workers each, and small companies 13 workers each. If the size category distribution of the levy paying companies for which employment figures are known is extrapolated to the total number of levy paying furniture companies listed in the SARS database, and the average number of workers per size category is assumed to apply generally, then an estimated 39 478 workers are employed in the furniture sub-sector. Table 31: Employment in levy paying furniture companies, according to size category Large Medium Small Sub-total Not classified Total Number of companies 24 61 312 397 436 833 % Distribution 2.9 7.3 37.5 47.7 52.3 100.0 8660 6152 4003 18815 Mean (workers per company) 361 101 13 47 Employment according to size 46.0 32.7 21.3 100.0 Large Medium Small Total Total employed Projected distribution Number of companies 50 128 655 833 % Distribution 6.0 15.4 78.6 100.0 Mean (workers per company) 361 101 13 47 18171 12908 8399 39478 46.0 32.7 21.3 100.0 Estimated no of employees Employment according to size Source: SARS database. 72 Furniture Sub-sector Although large companies account for six percent of all furniture companies, they provide almost half of the jobs in the sub-sector (Tables 29 and 30). Medium-size companies account for a third of the jobs and small companies for a fifth of the jobs. Geographical distribution of the workforce More than three quarters of the jobs in the furniture sub-sector are to be found in three of South Africa’s nine provinces (Table 32). Thirty-seven percent of the estimated 39 000 employees work in Gauteng. KwaZulu-Natal has the next highest percentage of employees (23%) and the Western Cape is third with 19%. Levy paying companies in North West create eight percent of the job opportunities in the furniture sub-sector. The Eastern Cape accounts for seven percent and the Free State for four percent of the job opportunities in the furniture sub-sector. Mpumalanga, Limpopo and Northern Cape each contribute to one percent of the jobs. Table 32: Distribution of the workforce in the furniture sub-sector, by province Province Companies Distribution Gauteng 338 40.6 14673 37.2 KwaZulu-Natal 153 18.4 8922 22.6 Western Cape 203 24.4 7506 19.0 North West 17 2.0 3344 8.5 Eastern Cape 49 5.9 2919 7.4 Free State 26 3.1 1514 3.8 Mpumalanga 24 2.9 294 0.7 Limpopo 17 2.0 274 0.7 5 0.6 33 0.1 832 100.0 39479 100.0 Northern Cape Total Workers Distribution Source: SARS Database. So far, employment data contained in the SARS database of levy-paying employers has been used to describe the workforce in the furniture sub-sector. Data collected during a National Skills Survey (commissioned by the Department of Labour) and through workplace skills plans will now be used to describe the distribution of the workforce in the furniture sub-sector in terms of occupation, population group and gender. 73 Furniture Sub-sector Population group distribution The majority (87%) of the workers in the furniture companies that responded to the National Skills Survey or that have submitted workplace skills plans are black, and a tenth are white (Figure 14). It is only on the managerial and technician levels where white workers predominate. More than half of all service workers and more than two-thirds of professional, clerical and agricultural workers are black. Almost all the skilled workers (93%), operators (98%) and labourers (99%) are black. Figure 14: Population group distribution of workers, according to occupational category African Coloured Asian White Total Labourers Plant / Machine Operators and Assemblers Skilled Workers Agricultural and fishery workers Service workers Clerical / administrative workers Technicians Professionals Senior officials and Managers / owner managers 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: WSPs 2002/3 and NSS respondents (N=74). Gender distribution Male workers predominate in the furniture sub-sector of the Forest Industries Sector. Only three quarters of all the workers in the furniture sub-sector are women (Figure 15). Only 14% of the senior officials and managers / owner managers are women. Around a fifth of the workers in each of the following occupational categories are women: professionals, technicians, agricultural workers, skilled workers and operators. And a quarter of the labourers are women. It is only among clerical workers that more than half of the employees are women. 74 Furniture Sub-sector Figure 15: Gender distribution of workers according to occupational category Female Male Total Labourers Plant / Machine Operators and Assemblers Skilled Workers Agricultural and fishery workers Service workers Clerical / administrative workers Technicians Professionals Senior officials and Managers / owner managers 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: WSPs 2002/3 and NSS respondents (N=74). Age distribution No data available. Occupational distribution Operators and labourers account for 70% of the workforce in the furniture companies that were interviewed or that have submitted workplace skills plans. Skilled workers account for a further eight percent, clerical workers for seven percent and managers for six percent (Table 33). Less than two percent of the workers are employed in each of the occupational categories of professionals, technicians or agricultural workers. Table 33: Occupational distribution of workers, by race and by gender Occupational level Total % Managers 580 5.8 9.0 8.1 9.8 73.1 14.3 85.7 Professionals 163 1.6 29.4 11.7 28.2 30.7 18.4 81.6 Technicians & associates 174 1.7 20.1 11.5 11.5 56.9 20.1 79.9 Clerical workers 758 7.5 26.3 19.5 19.9 34.3 53.0 47.0 Service / sales workers 326 3.2 21.2 22.1 14.1 42.6 40.8 59.2 Agricultural workers 150 1.5 40.7 35.3 3.3 20.7 16.7 83.3 Skilled workers 813 8.1 42.2 41.0 10.1 6.8 20.8 79.2 Operators 4038 40.1 61.4 25.7 11.2 1.7 21.9 78.1 Labourers 3061 30.4 76.2 17.8 5.4 0.6 27.4 72.6 10063 100.0 55.8 22.6 10.2 11.4 25.8 74.2 Total Employees African Coloured Asian White Female Male Source: WSPs 2002/3 and NSS respondents (N=74). 75 Furniture Sub-sector Qualifications According to JET, Manto Management and CASE (2003) there is a tendency among furniture companies to employ people who are qualified artisans or who have become skilled through experience within the industry. These would include upholstering, cabinet making, wood finishing and wood machining. SKILLS SHORTAGES Skills shortages arise when employers are not able to fill vacancies in a recognised occupation or field of specialisation, or experience difficulties doing so under their current conditions of employment or at their present rate of remuneration (Van Aardt, 2002). In the National Skills Survey respondents were asked to indicate the activities used by their companies to recruit new staff or to meet their skills needs. Most respondents in the furniture sub-sector reported that they recruited new staff locally to fill vacancies. Three quarters of the companies strived to improve retention of employees. More than half of the respondents reported that their companies made use of short-term contracts or consultants and less than a tenth made use of outsourcing. None of the respondents reported a need to recruit new staff from abroad, but almost a tenth of the respondents reported that they had to headhunt new staff to fill vacancies. The table below gives an overview of their responses, ranked from the activity to which the respondents gave the highest score (on a scale of 1 to 3) to the activity which received the lowest score: Table 34: Activities used to meet skills needs Activity Recruiting locally Mostly (3) Sometimes (2) Not at all (1) Total N=16 75.0 12.5 12.5 100.0 Improved retention of employees N=16 56.3 18.8 25.0 100.0 Short term contracts /consultants N=16 31.3 25.0 43.8 100.0 Outsourcing N=14 0.0 28.6 71.4 100.0 Head hunting N=13 0.0 7.7 92.3 100.0 Recruiting from abroad N=15 0.0 0.0 100.0 100.0 Source: Respondents to the National Skills Survey, 2003. 76 Furniture Sub-sector SKILLS GAPS Skills gaps are experienced when the skills level of an organisation’s workforce is inferior to what is required to meet business needs, or when the workforce does not have the necessary skills mix to ensure high levels of productivity, innovation and ability to adapt to new market and production requirements (Van Aardt, 2002). In the National Skills Survey, companies were required to indicate, on a scale of 1 to 3 (“not at all” – “to a large extent”), whether the following skills were underdeveloped or lacking among their staff during the 2002/3 financial year. Their responses are given in Table 35 (ranked from the most frequently mentioned to the least frequently mentioned). Most of the respondents to the National Skills Survey (NSS) were of the opinion that workers’ general IT user skills needed to be upgraded (to a “large extent”, according to 25% of respondents, and to “some extent” according to 63% of them). Problem solving skills appear to be next in priority, communication skills third and team working skills fourth. Table 35: Skills that need to be upgraded in NSS companies To a large extent To some extent Not at all General IT user skills N=16 25.0 62.5 12.5 100.0 Problem solving skills N=16 31.3 56.3 12.5 100.0 Communication skills N=16 25.0 56.3 18.8 100.0 Team working skills N=16 18.8 62.5 18.8 100.0 Management skills N=15 26.7 53.3 20.0 100.0 Technical and practical skills N=16 25.0 43.8 31.3 100.0 Literacy skills N=15 20.0 40.0 40.0 100.0 Numeracy skills N=15 20.0 40.0 40.0 100.0 Customer handling skills N=16 6.3 43.8 50.0 100.0 IT professional skills N=14 21.4 14.3 64.3 100.0 Source: Respondents to the National Skills Survey, 2003. Two-thirds of the respondents to the National Skills Survey (NSS) were of the opinion that workers’ technical and practical skills needed to be upgraded (to a “large extent”, according to 25% of respondents, and to “some extent” according to 44% of them). During a survey of small, medium and macro enterprises (SMMEs) in furniture manufacturing, JET, Manto Management and Case (2003) found that at an emerging enterprise level there is a need for technical skills to be enhanced among all staff. Small enterprises often do not have production lines, therefore need multi-skilled and versatile employees who can use a range of machines (JET, Manto Management & Case, 77 Furniture Sub-sector 2003). Specifically skills in upholstery take a long time to learn and are best learned through structured apprenticeships. It is important to consider skills needs by occupational category (Table 36). The aggregate means show that among furniture companies, the occupational category needing skills upgrading to the largest extent was labourers, followed closely by skilled workers and professionals. Table 36: Occupations needing their skills upgraded Mean Senior officials and Managers / owner managers 2.2 Professionals 2.3 Technicians 1.8 Clerical / administrative workers 2.1 Service workers 1.7 Agricultural and fishery workers 0.0 Skilled Workers 2.3 Plant / Machine Operators and Assemblers 2.0 Labourers 2.4 Source: Respondents to the National Skills Survey, 2003. Other factors influencing skills needs According to Smith and Hayton (1999) a number of factors appear to impact on the enterprise decision to train employees. These include: the improvement of employee performance; the improvement of the adaptability and flexibility of the workforce; investments in new technology; the adoption of new work practices and moves towards the more sophisticated systems of human resource management; changes in business strategy. In the National Skills Survey, companies were required to indicate, on a scale of 1 to 3 (“not at all” – “to a large extent”), whether certain factors would cause them to increase training during the 2003/4 financial year. Their responses can be seen in Table 37 (ranked from the most frequently mentioned to the least frequently mentioned). 78 Furniture Sub-sector Most of the respondents to the National Skills Survey (NSS) were of the opinion that increased competition would cause them to increase training during the 2003/4 financial year (to a “large extent”, according to 56% of respondents, and to “some extent” according to 38% of them). Quality standards and customer service objectives appear to be the next factor to influence training decisions. It is clear that the respondent companies are aware of the high quality and environmental standards that exist in the international market. For this reason companies aim to comply with a number of initiatives in place in the country to ensure that they maintain these standards. Although concern for quality improvement may be high and lead to training activity, the volume and diversity of such training may be quite low (Smith & Hayton, 1999). This makes training for quality short, sharp and cheap for enterprises. Thus, although quality is a universal training driver, it will often have only a limited impact on the overall level of training provision in the enterprise. Another strong driver of the intention to increase training is the setting of productivity targets, which suggests that companies are appreciating more strongly the potential link between training and increased productivity. However, waste reduction as a secondary productivity issue is given lower importance. Table 37: Factors that would influence training decisions Largely Increased competition Some Not at all Total N=15 46.7 33.3 20.0 100.0 Quality standards and customer service objectives N=14 57.1 21.4 21.4 100.0 Productivity targets N=14 50.0 21.4 28.6 100.0 SETA initiatives N=14 50.0 21.4 28.6 100.0 New labour legislation N=14 42.9 21.4 35.7 100.0 Technology change N=14 50.0 14.3 35.7 100.0 Waste reduction N=14 57.1 7.1 35.7 100.0 Employee expectations N=14 14.3 42.9 42.9 100.0 Increase in demand for products / services N=14 28.6 28.6 42.9 100.0 Delays in developing new products / services N=14 21.4 21.4 57.1 100.0 Organisational restructuring N=13 15.4 23.1 61.5 100.0 Levels of employee illness N=14 21.4 14.3 64.3 100.0 Employee turn-over N=13 7.7 23.1 69.2 100.0 Trade union initiatives N=14 14.3 0.0 85.7 100.0 Source: Respondents to the National Skills Survey, 2003. 79 Furniture Sub-sector It should be noted that employee turnover was not mentioned as a convincing factor to motivate employers in the furniture sub-sector to train their workers. A recent study among furniture manufacturing SMMEs found that poaching of trained staff and mobility of staff once trained, contributed to a reluctance to train in this industry (JET, Manto Management & Case, 2003). The results reflected in Table 38 below shows that poaching largely contributes to employee turnover. Respondents to the National Skills Survey (NSS) were asked to indicate the causes of employee turnover. Almost half of the respondents mentioned the loss of employees to other establishments (to a “large extent”, according to 14% of respondents, and to “some extent” according to 29% of them). Table 38: Reason for turnover Reason for turnover Large extent Some extent Not at all Total Loss of employees to other establishments N=14 14.3 28.6 57.1 100.0 Loss of employees through illness N=14 21.4 14.3 64.3 100.0 Dismissals N=15 26.7 6.7 66.7 100.0 Emigration N=13 0.0 0.0 100.0 100.0 Retirement N=14 0.0 0.0 100.0 100.0 Retrenchment N=14 0.0 0.0 100.0 100.0 Source: Respondents to the National Skills Survey, 2003. WORKPLACE TRAINING IN THE FURNITURE SUB-SECTOR In April 2000 the South African government launched its Skills Development Strategy to deal with the country’s lack of international competitiveness and the low rates of investment in the development of human capital. Three years later roughly 10% of firms in South Africa are paying 90% of the skills levies that are collected (Department of Labour, 2002). Furthermore, the Minister of Labour reported that about 27 000 people benefited from learnership training. Of these, only a quarter was young and unemployed. A target of 80 000 trainees has been set for March 2005 (Department of Labour, 2003). For a training levy scheme to be successful, the buy-in from employers is crucial. The term buyin is used to refer to the general compliance of employers to the scheme. Buy-in can be measured in terms of the number of employers that register for the payment of the levy and those who are paying the levy. However, if employers view the levy as merely an additional tax burden and do not change or increase their training behaviour, then the scheme failed in its primary objective. The 80 Furniture Sub-sector term take-up is therefore used to describe and measure the participation by employers in claiming grants (e.g. by submitting a WSP or training report). In a booklet entitled The National Skills Development Strategy: understanding the laws, the Department of Labour (2002:11) stipulates that all employers who pay PAYE Tax must pay the levy. If only the 1 085 active furniture businesses on the SARS database are expected to participate in the scheme then already three-quarters are paying the skills levy. Which might be perceived as an excellent buy-in from furniture manufacturing employers. Almost all (89%) of the large enterprises on the SARS database are paying levy. Eighty percent of medium-sized employers and three quarters (75%) of small employers are paying levy. If buy-in is measured in terms of the number of enterprises that are paying levy, then take-up can be measured in terms of the number of levy paying enterprises that claim reimbursements for submitting WSPs and training they have provided. Of the 833 employers that are paying the skills levy, a mere 8% (63 enterprises) have submitted a workplace skills plan (Table 39). Confirming international compliance trends, take-up from large employers are higher as oppose to mediumsized and small employers. Although a third (34%) of larger levy paying employers are submitting WSPs, only a fifth (20%) of the medium-sized and a mere three percent of the smaller employers do so. Table 39: Levy paying companies that have submitted a WSP to FIETA Company size ¹Active companies ¹Levy paying % ²Submitted WSP % 56 50 89.3 17 34.0 Medium 160 128 80.0 26 20.3 Small 869 655 75.4 20 3.1 Total 1085 833 76.8 63 7.6 Large ¹Source: SARS Database. ²Source: FIETA. International evidence shows that small and medium-size employers have rarely benefited from payroll levies in any country for which there is available evidence (Dar et al., 2000:7). Tax incentives have benefited larger firms that would have trained their staff anyway (Dar & Gill, 2002:4). According to Dar et al., the schemes have ended up as subsidies for large firms and taxes on small ones. Furthermore, the better educated and more highly skilled workers are the primary recipients of training as they are more likely to work in larger enterprises. In the National Skills Survey respondents were required to provide information on skills development. The feedback would give an indication of the responding companies’ commitment to 81 Furniture Sub-sector skills development. This section gives an overview of existing training measures, actual training provided, utilisation of grant opportunities and participation in learnership programmes. Infrastructure All 16 companies in the furniture sub-sector that participated in the National Skills Survey responded to questions about training infrastructure. Four of the respondents employed a training manager, four made use of a skills development facilitator and three have selected a training committee to oversee skills development/training. The training committees comprised of representatives from management and employees but excluded union representatives. Five furniture companies reported that no specific person was responsible for skills development/training. Three of the companies that did not employ such a manager, facilitator or committee (two medium-sized and a small company) did not provide training at all. With regard to training budgets and plans, bursary and study leave policies and other training measures: Only four of the sixteen respondents from the furniture sub-sector stated that their companies had a training budget as on 1 April 2003. Only three of the respondents reported that the company had a policy on bursaries in place. Only five of the respondents reported that the company had a policy on study leave in place as on 1 April 2003. Six of the sixteen companies were keeping training records during the 2002/3 financial year. Eight of the sixteen respondents from the furniture sub-sector stated that their companies had a workplace skills plan (WSP) as on 1 April 2003. However, according FIETA records only five of these companies have submitted a workplace skills plan. Three of the companies who have submitted a workplace skills plan were medium-sized and two were small companies. Six of the sixteen respondents from the furniture sub-sector stated that their companies had a formal business plan as on 1 April 2003. Three of the companies that had a formal training plan and a formal business plan reported that the two plans were linked. It was mainly the small companies and some of the medium-sized companies that had no training budget or plan, bursary or study leave policies or other training measures in place as on 1 April 2003. This trend was confirmed by the findings of a survey of small, medium and macro enterprises (SMMEs) in furniture manufacturing. JET, Manto Management and Case (2003) found that although a number of SMMEs were able to illustrate some planning aspect, the planning remained in the heads of the owner/managers. 82 Furniture Sub-sector Actual training provided Thirteen furniture companies that participated in the National Skills Survey reported that they had provided training for their employees during the 2002/3 financial year. The percentage of employees that had received training varied from three percent to all of the employees of the respondent companies. Ten of the thirteen companies (or 77%) had trained less than a third of their workforce. Furniture companies who have submitted training reports in 2002 reported similar trends. Twenty-six of the 34 furniture companies (or 78%) had trained less than a third of their workforce. Provision of training was focused on higher skilled workers. Around a third of the managers, clerks and service workers of the furniture companies have received training. A quarter of the technicians and around a fifth of all the skilled workers participated in training. Slightly more than a tenth of the professionals and of all operators in the furniture companies have received training and seven percent of all labourers. The low training ratio of labourers is of concern, given that high rating of skills needs among labourers (Table 36, above). The skills upgrading needs analysis of the furniture companies that participated in the National Skills Survey also shows that professionals have a relatively high need, but only a few of the professional staff have received training. It was required from the respondents to the National Skills Survey to indiate the types of training (or forms of delivery) used. Employees tend to participate to a greater extent in courses that are presented in-house and consist of on the job learning, suggesting that this kind of learning is still of value in craft and skilled trade occupational environments. According to JET, Manto Management and Case (2003) small, medium and micro enterprises in furniture manufacturing prefer in-house training because the training is tailored to suit production specifications. Half the companies in the furniture sub-sector that participated in the National Skills Survey had sent their workers to attend training provided by an external agency. Only two companies engaged external agencies to present courses on their premises. A third of the companies involved their employees in skills programmes, while only a fifth participated in learnerships. This may be because skills programmes are levy-grant qualifying, unit-standard based programmes, and, crucially, are shorter than learnerships but can cumulatively still lead to a learnership qualification. It may be that this type of programme provides greater flexibility. Nine of the companies in the furniture sub-sector that participated in the National Skills Survey responded to a question about training standards. Just over a third of the courses presented to workers in these companies met South African Qualifications Authority (SAQA) / National 83 Furniture Sub-sector Qualifications Framework (NQF) standards. More than half of the courses met nationally recognised standards other than SAQA/NQF standards, four percent was presented according to internationally recognised standards and one percent according ISO 9000 standards. Claiming grants Only four of the thirteen companies that reported that they had provided training for their employees during the 2002/3 financial year indicated that their companies were claiming grants against their levy payment (one large and three medium-sized companies). All the small companies, four medium-sized and one large company reported that they did not claim grants against their levy payment. Seven of the non-claiming companies gave reasons. Two medium-sized companies found the application procedure too complicated. One medium-sized company indicated that the company was not aware of the grants, another did not provide training. Two small companies indicated tat they did not have time to complete the forms and another felt the effort did not make financial sense. Learnerships Sector Education and Training Authorities (SETAs) have to promote learnerships by identifying workplaces for practical work experience, supporting the development of new qualifications and learning materials, and assisting in the conclusion of learnership agreements. They are also responsible for the registration of learnerships. The South African business community appears reluctant to provide opportunities for new learners to obtain job experience. In February 2003 the Minister of Labour had to challenge the business community to increase the number of learnerships offered in workplaces (SAPA, 2003). The respondents to the National Skills Survey confirmed that there was a tendency not to participate in the learnership scheme: Just over a third of the respondent companies (five medium-size and one small company) indicated that they have planned to initiate learnership programmes for established employees during the 2003/2004 financial year. Only a quarter of the respondent companies (four medium-size and one small) indicated that they have planned to initiate learnership programmes for new employees during the 2003/2004 financial year. The Forest Industries Education and Training Authority (FIETA) has identified, developed and registered 12 learnerships for the furniture sector (Department of Labour, 2004). These include: an entry level certificate at level 1, called National Certificate in Furniture Production Level 1; 84 Furniture Sub-sector a National Certificate in Furniture Production: Wood Machining and Cabinet Making Level 2; a National Certificate in Furniture Production: Upholstery Level 2; a National Certificate in Furniture Production: Upholstery Level 3; a National Certificate in Furniture Production: Upholstery Level 4; a National Certificate in Furniture Production: Wood Finishing Level 2; a National Certificate in Furniture Production: Wood Finishing Level 4; a National Certificate in Furniture Production: Wood Machining Level 3; a National Certificate in Furniture Production: Wood Machining Level 4; a National Certificate in Furniture Production: Cabinet Making Level 3 and a National Certificate in Furniture Production: Cabinet Making Level 4. SUPPLY OF SKILLS Training providers Skills to the sub-sector are supplied by reputable and accredited training providers, including Skills to Furnish International (SFI), Prestige Training, and Furniture Technology Centre (Furntech). Two of the main projects that these training providers are engaged with are the Shintsha furniture project and Furniture Manufacturing Skills Development (FMSD). Accredited training providers in the furniture sub-sector are: Ethembeni Education & Training (Programme Approval Accreditation) Furntech Training Centre Yorkcor Training Centre Cape College Prestige Home Centre (apparently de-accredited in March 2004) The following training providers have been provisionally accredited: Skills to Furnish International Highveld Tech. (Provisionally Programme Approval Accreditation) Pretoria Correctional Services (Provisionally Programme Approval Accreditation) Hillside View College (Provisionally Programme Approval Accreditation) Malmesbury Correctional Services (Provisionally Programme Approval Accreditation) Furntrain Training Centre Furniture World Training Centre Pollsmoor Correctional Services 85 Furniture Sub-sector Twelve new training providers applied for accreditation: Esayidi Further Education Tirhani Skill Training Goldfields FET College Orbit FET College Northern Cape FET College Industries Education & Training Drakenstein Correctional Services Mopani South East College Amamatola Training Centre Protech Training center Jala Peo Trust Skills to Furnish International (SFI) Skills to Furnish International (SFI) is a FIETA (Forestry Industry Education and Training Authority)-accredited woodworking service provider through which the unemployed are finding a means of livelihood in the woodworking sector (Wood SA & Timber Times, October 2002). This skills provider has also been accredited by a UK-based skills training authority. SFI is believed to be the only registered training provider in South Africa that specialises in furniture-production education and skills training. Its training covers all designated trades: cabinet making, wood machining, and finishing and upholstery. Successful learners, who are assessed at the various NQF levels, are awarded certificates. SFI gathered extensive experience in furniture skills training through the former Furniture Industry Training Board. Many other skills training providers are using material (including assessment and training) that has been developed by SFI over the years (Wood SA & Timber Times, November 2003). Currently this Section 21 company is training 12 unemployed students, who should be qualified in all woodworking trades by 2003 and are likely to find employment easily, if the response SFI has received from the various furniture manufacturers - where the students are undertaking their practical training – is anything to go by. The Department of Labour (DoL) is funding the training through the National Skills Fund (NSF). On completing their NQF level 3 in wood machining and cabinet making, the students will also be trained in basic business skills and computer literacy. In a half year SFI has trained more than 86 Furniture Sub-sector 4 000 students. During this period, it has also undertaken total trade test assessments, with only eight candidates not having yet made the grade (Wood SA & Timber Times, October 2002). SFI is offering woodworking companies the opportunity to claim back their levies from the Skills and Education Training Authorities (SETAS) (Wood SA & Timber Times, October 2002). The agreement will see SFI assume the role of skills development facilitator and assist with workplace skills and training plans, while providing skills training and services in woodworking. By ceding levy claims to SFI, companies will not have to pay for the training provided and have, into the bargain, access to 26 years of its expertise in training and skills development . SFI has succeeded in getting 12 employers committed to the Shintsha Furniture Project (Wood SA & Timber Times, November 2003). These employers will provide a workplace for the 24 learners from the Gauteng region that SFI has recruited to the project to date to obtain their practical training. The skills training provider intends training a minimum of 156 learners over the two-year period of the project. The learners who have signed learnership agreements were previously unemployed and were recruited according to the entry requirements of numeracy and literacy (Wood SA & Timber Times, November 2003). The project was initiated by FIETA and is being funded by the National Skills Fund (NSF) (Wood SA & Timber Times, November 2003). The focus of the training will be on experiential learning, involving training in the classroom and in the workplace. Training might comprise the skills training provider’s original 12-week-long courses that have been aligned to unit standards and an additional four weeks of practical training in the workplace. While the skills training provider will focus on the technical side of the training, the business-skills side of the instruction will be outsourced, with SFI monitoring the process carefully (Wood SA & Timber Times, November 2003). The project aims to provide high-quality furniture-manufacturing skills through learnerships and skills programmes for hundreds of employed, unemployed and entrepreneurs within small, medium and micro enterprises in the SA furniture industry. With the support of the Department of Labour (DoL), SFI has placed about 90% of the people that it has trained in the SA furniture industry, while a further 6% of its learners are self-employed woodworkers (Wood SA & Timber Times, November 2003). All of these learners are from the previously disadvantaged community, a major focus of SFI. SFI advised DoL to extend its 30-day courses to more long-term projects that focuses on multi-skilling. Three of the learners that have been trained are going to stay on at SFI as coaches and facilitators, while another one of the learners has become a trade assessor. 87 Furniture Sub-sector Prestige Training Mpumalanga-based Prestige Training is working towards ISO 9000 accreditation – a development that is believed will make Prestige Training the first South African skills training provider to be accredited by the International Standards Organisation (Wood SA & Timber Times, November 2003). Prestige Training offers learnerships on NQF levels 1, 2, 3, and 4. Over and above these one-yearlong courses, it will soon be offering the six-month-long courses developed by Skills to Furnish International (SFI) (Wood SA & Timber Times, November 2003). Prestige Training also offers skills to complement the SFI courses. These include business development skills, Aids awareness skills, and an understanding of personal hygiene. Experts in various fields are also invited on a regular basis to lecture the learners on a variety of topics, such as abrasives and spray finishing. The major focus of the training is on self-employment and entrepreneurship for the previously disadvantaged community. The training centre has managed to secure employment for three successful learners with other woodworking concerns. Prestige Training will also participate in FIETA’s Shintsha furniture project in Mpumalanga (Wood SA & Timber Times, November 2003). Furntech is sending 10 of its learners to Prestige Training to complete the practical side of their level 2 learnerships (Wood SA & Timber Times, November 2003. Furniture Technology Centre (Furntech) Furntech is a FIETA-accredited training provider, offering learnerships, skills programmes and short courses in furniture production. It offers nationally recognised qualifications to employers and employees in the wood machining, wood finishing, cabinetmaking and board-based products industry (Wood SA & Timber Times, November 2003). Furntech, a government- and private-sector partnership is presenting SA with higher level of skills training than was available before. The training is based on what the industry requires; is geared to address identified skill shortages; assist companies to identify and prioritise skills needs; and to plan interventions to address these needs and access skills levy grant payments from FIETA. Furntech’s Quality Management System (QMS) includes a stringent health, safety and environment audit and also intends achieving ISO accreditation in future. The QMS and financial management systems have been implemented in compliance with the Public Finance Management Act. Furntech’s centres are incubators for developing start-up and existing SMMEs (Wood SA & Timber Times, November 2003). The training’s “fresh and different” approach can be attributed to its affiliation to the Tibro Training Centre (TTC) in Sweden. TTC trainers have introduced a wide range 88 Furniture Sub-sector of skills and made it possible for Furntech to become a “world-class” facility. The next phase of the partnership will see a Swedish upholstery specialist from TTC coming to South Africa in 2004 to work with Furntech’s upholstery trainers. TTC has also seconded trainers and is coordinating a group of management and production consultants who will work with Furntech to upgrade the training and skills offered to the furniture and wood products industries. Furntech has established four business incubators and equipped them with combination machines, and power and pneumatic hand tools (Wood SA & Timber Times, November 2003). Furntech provides a range of services that include: administration support such as access to telephones, fax, computers and general administration support; contact with a range of service providers that have been carefully selected to assist the incubators, including legal and accounting services; technical support in terms of manufacturing methodology; and access to a fully equipped workshop. Furntech, has expanded its base from George, bringing its new approach to furniture training to Cape Town and Durban. It will also be establishing training and incubation centres in Umzimkhulu in the Eastern Cape and White River, Mpumalanga. At this stage George is the only Furntech centre with a computer numerically controlled (CNC) machine. The George centre also offers training in furniture design, using AutoCAD (Wood SA & Timber Times, November 2003). Furntech’s centre in Umzimkhulu is nearing completion, and the green-fields project is a business partnership with the Alfred Nzo Local and District Municipality and will offer training and business incubation services. The centre in White River is a joint venture with the Mbombela Local Municipality and Mpumalanga provincial government, and construction on this centre will start in 2004. Ten learners from Mossel Bay, George and Plettenberg Bay have entered the first phase of the Shintsha project and are receiving technical and business skills training to help them develop their own businesses around space-saving and multi-purpose furniture. Furntech Cape Town, Durban and Umzimkhulu are gearing up to participate in the next phase of the project in 2004 (Wood SA & Timber Times, November 2003). The success of all these initiatives can be attributed to the commitment of Furntech’s regional, national, and international partners and stakeholders,” says Prof Ernst van Biljon, chairperson of the Furntech board of trustees. Key partners in the programme are the South African Department 89 Furniture Sub-sector of Trade and Industry (the dti), the Swedish International Development Agency (SIDA), and the Port Elizabeth Technikon. In order to assist companies to realise the potential of their human resources, Furntech has: developed a range of outcomes-based training programmes in order to offer the industry customised training, based on national standards at all levels, from operator to manager; developed a holistic service that covers the determination of training needs, the development of workplace skills plans, and the implementation of workplace skills plans; and access to international training personnel to ensure that its training meets international standards. Furntech stand as a shining example of what can be achieved when government, industry, labour, international partners, higher education, research councils and development agencies work together in an attempt to improve and globalise a growing industry, says Prof van Biljon (Wood SA & Timber Times, November 2003). Projects Shintsha Furniture Project The Shintsha Furniture Project was initiated by the Forest Industries Education and Training Authority (FIETA) and is being funded by the National Skills Fund (Wood SA & Timber Times, November 2003). It aims to provide high-quality furniture manufacturing skills through learnerships and skills programmes for hundreds of employed, unemployed and entrepreneurs within small, medium and micro enterprises in the SA furniture industry. It will lay down the groundwork for future development in the South African furniture industry. Shintsha will focus mainly on previously unemployed learners and people employed by SMMEs. Some of them will spend three months with skills training providers and will then be placed into the workplace to receive hands-on instruction (Wood SA & Timber Times, November 2003). It is planned to place two or three learners in an SMME workplace for a two- to three-month period. One of the employees of the host SMME could undertake some short courses with a training provider, which will improve the skills of the existing workforce of the SMME. FIETA intends making this project a national one. The project has the potential to get a further 25 skills training providers on board before it comes to an end at the end of 2004 (Wood SA & Timber Times, November 2003). FIETA will provide support to these skills training providers and align them according to unit standards. Training providers will also need to understand what product their learners will manufacture and the customers they will 90 Furniture Sub-sector service. It is hoped that a training ecosystem will be created, which will see training providers and business work hand in hand and offer mentorship to each other. Two other training units, the College of Cape Town (which is offering upholstery learnerships and skills programmes to 25 learners) and Furntech in George, have begun skills training development under the Shintsha Furniture Project (Wood SA & Timber Times, November 2003). Furniture skills training provider, Skills to Furnish International (SFI) has committed 12 employers who will provide a workplace for the 24 previously unemployed learners that SFI has recruited to date. SFI intends training a minimum of 156 learners over the two-year period (Wood SA & Timber Times, November 2003). Training will have to meet the needs of the community it serves and providers will have to engage closely with members of its community, in keeping with the concept of needs-driven training, mentioned in the Skills Development Strategy of the DoL. The focus of the training will be on experiential learning, involving training in the classroom and in the workplace. Training might entail the skills training provider’s original 12-week-long courses that have been aligned to unit standards and an additional four weeks of practical training in the workplace. SMMEs will be provided with a skilled person to replace their workers during the period that they are undergoing training. While the skills training provider will focus on the technical side of the training, the businessdevelopment skills side of the instruction will be outsourced, with SFI monitoring the process carefully. In fact, the National Advisory Manufacturing Council, a dti agency, will provide business development services to participating SMMEs and will assist in the start-up of the incubators (Wood SA & Timber Times, November 2003). Furniture Manufacturing Skills Development (FMSD) FIETA’S other training initiative is its Furniture Manufacturing Skills Development (FMSD) project. The initiative, which is being funded by the National Skills Fund of the DoL, is aimed at the very small and micro furniture manufacturer that has difficulty accessing skills training for its employees as a result of limited financial resources (Wood SA & Timber Times, November 2003). The FMSD project is located in the Furniture Chamber of FIETA (Wood SA & Timber Times, June 2003). It aims to provide high quality furniture manufacturing skills through learnerships and skills programmes for hundreds of workers and entrepreneurs. Capacity building, which will be provided by the project, will be based on the needs identified by the skills training provider in the proposals. Wendy Newton, a sub-project manager, notes that the proposal submitted by the training providers 91 Furniture Sub-sector to the project will indicate what training they can offer to the sector for the benefit of communities and any assistance they need from the project to meet their objectives. The project also intends providing business development support. Many of the skills training providers will be offering training that differs from the training they offered in the past, and will be emphasising experimental learning, involving training in the classroom and in the workplace. Other training initiatives The University of British Columbia, the University of Stellenbosch and Port Elizabeth Technikon are currently in discussion about possible future cooperation (Wood SA & Timber Times, November 2003). A multi-faceted and integrated approach involving these three institutions will promote capacity building and sustainability through collaboration in various subject areas. UBC will assist Stellenbosch and PE Technikon to create a sizeable body of undergraduate-curriculum and online professional development courseware related to the value-added processing sector, specifically furniture manufacturing. 92