A PROFILE OF THE FORESTRY 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 FORESTRY SUB-SECTOR ............................................................................ 33
Industrial coverage ........................................................................................................................................ 33
Employers in the forestry sub-sector ........................................................................................................... 33
Geographical distribution of employers in the forestry sub-sector .......................................................... 35
Distribution of employers by size category ................................................................................................. 36
DRIVERS OF CHANGE IN THE FORESTRY SUB-SECTOR....................................................... 36
Contribution................................................................................................................................................... 36
Privatisation ................................................................................................................................................... 40
Certification ................................................................................................................................................... 41
Research and development ........................................................................................................................... 42
Contractors .................................................................................................................................................... 43
Small growers................................................................................................................................................. 45
Community development .............................................................................................................................. 47
Information Technology ............................................................................................................................... 47
DEMAND FOR SKILLS ................................................................................................................ 47
Quantification of the labour market ............................................................................................................ 47
Active forestry companies ........................................................................................................................... 48
Levy paying forestry companies.................................................................................................................. 48
Geographical distribution of the workforce................................................................................................. 49
Population group distribution ...................................................................................................................... 50
Gender distribution ....................................................................................................................................... 51
Age distribution ............................................................................................................................................. 52
Occupational distribution ............................................................................................................................. 52
Qualifications ................................................................................................................................................. 53
SKILLS SHORTAGES.................................................................................................................. 53
SKILLS GAPS .............................................................................................................................. 54
Other factors influencing skills needs .......................................................................................................... 55
WORKPLACE TRAINING IN THE FORESTRY SUB-SECTOR ................................................... 57
Infrastructure ................................................................................................................................................ 59
Actual training provided ............................................................................................................................... 60
Claiming grants ............................................................................................................................................. 60
Learnerships .................................................................................................................................................. 61
SUPPLY OF SKILLS .................................................................................................................... 62
LIST OF TABLES: FORESTRY SUB-SECTOR
Table 17: Active levy paying forestry companies listed in the SARS database, according to SIC
Code ...................................................................................................................................... 34
Table 18: Employment in active forestry companies, according to size category........................... 48
Table 19: Employment in levy paying forestry companies, according to size category .................. 49
Table 20: Distribution of the workforce in the forestry sub-sector, by province .............................. 49
Table 21: Occupational distribution of workers, by race and by gender ......................................... 52
Table 22: Activities used to meet skills needs ............................................................................... 53
Table 23 Skills that need to be upgraded in NSS companies ........................................................ 54
Table 24: Occupations needing their skills upgraded .................................................................... 55
Table 25: Factors that would influence training decisions .............................................................. 56
Table 26: Reason for turnover....................................................................................................... 57
Table 27: Buy-in and take-up of the skills development levy in the forestry sub-sector ................. 58
LIST OF FIGURES: FORESTRY SUB-SECTOR
Figure 6: Distribution of levy paying forestry companies, by province (N=610) .............................. 35
Figure 7: Distribution of forestry companies, by size category ....................................................... 36
Figure 8: Plantation area, 1982 - 2002 .......................................................................................... 37
Figure 9: New afforestation, 1982 – 2002 ..................................................................................... 37
Figure 10: Population group distribution of workers, according to occupational category .............. 50
Figure 11: Gender distribution of workers according to occupational category .............................. 51
Forestry Sub-sector
PROFILE OF THE FORESTRY SUB-SECTOR
Industrial coverage
According to the FIETA’s Sector Skills Plan, the forestry sub-sector includes, for example,
employers who grow trees on a commercial basis. The forestry sub-sector represents activities
classified according to the following SIC Codes:
 12101
Establishment
 12102
Re-establishment
 12103
Maintenance
 12104
Fire protection, fire suppression, fire prevention
 12105
Forest conservation
 12106
Forest protection
 12107
Forest management
 12108
Forestry and tree nurseries
 12201
Harvesting
 12202
Road construction and maintenance
 12203
Transport (short haul and long haul)
 87144
Forest research
Employers in the forestry sub-sector
An analysis of the SARS database of FIETA companies shows that a quarter of them (or 947
companies) fall into the forestry sub-sector (Table 3). However, 154 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 17). Three quarters (76.9% or 610 companies) of the 793 active companies pay skills
development levies (Column E, Table 17).
Four activities (transport, nurseries, harvesting and maintenance) dominate the forestry sub-sector,
accounting for almost three quarters of the 610 active levy paying companies in the sub-sector
(Column G, Table 17). According to the SIC Codes allocated to the active levy paying companies,
a quarter (25,9%) are classified as transport companies (short haul and long haul) (SIC Code
12203). Almost a fifth (18,2%) percent of all the companies in the forestry sub-sector are classified
as forestry and tree nurseries (SIC Code 12108). A further 16,9% of the companies listed in the
SARS database are classified as harvesting companies (SIC Code 12201), and 10,5% as
maintenance companies (SIC Code 12103).
33
Forestry Sub-sector
Table 17: Active levy paying forestry companies listed in the SARS database, according to SIC
Code
Column:
Code
Description
0
Not classified
Companies in SARS database
A
B
C
D
E
F
Not
Levy
%¹ Active
%²
Total Active
paying
10
0 0.0
10
8
80.0
12101 Establishment
G
%³
1.3
31
9 29.0
22
18
81.8
3.0
9
2 22.2
7
6
85.7
1.0
12103 Maintenance
94
12 12.8
82
64
78.0
10.5
12104 Fire: protection / suppression / prevention
50
10 20.0
40
32
80.0
5.2
101
36 35.6
65
41
63.1
6.7
0.0
6
4
66.7
0.7
60
7 11.7
53
46
86.8
7.5
12108 Forestry and tree nurseries
169
28 16.6
141
111
78.7
18.2
12201 Harvesting
141
14
9.9
127
103
81.1
16.9
12102 Re-establishment
12105 Forest conservation
12106 Forest protection
6
12107 Forest management
0
12202 Road construction and maintenance
24
5 20.8
19
10
52.6
1.6
12203 Transport (short haul and long haul)
238
29 12.2
209
158
75.6
25.9
14
2 14.3
12
9
75.0
1.5
947
154 16.3
793
610
76.9
100.0
87144 Forest research
Total
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:



Transport:

Maintenance:
Associated Carriers (Pty) Ltd
Alfa Gardens cc
Interactive Trading 201 (Pty) Ltd
E H Konigkramer and Partners
Longhauls Bulk Pty Ltd
Forest Projects cc
MRB Ondernemings Edms Bpk
Golf Data Maintenance Cape cc
Nurseries:
Nyati Forestry cc
Mondi (Pty) Ltd Forests Division
Phezulu Forestry cc
SAFCOL
PMD Forestry
Thusanang Forestry Services cc
Themba Forestry Contractors cc
Harvesting:
ZAF Contracting cc
FTH Trust

Other: (e.g. Forest management, Forest
Investment Facility Company
conservation,
Establishment
Ixopo Logging (Pty) Ltd
establishment)
Wartburg Timber Contractors
CLC Contracting cc
and
Re-
34
Forestry Sub-sector
Thesens
George Sawmill
Logtrans (Pty) Ltd
Hayters
Higgs Timber Harvesting
Langeni Forest Products
Hollstone Farming (Pty) Ltd
Nampak Tissue Pty Ltd
Mellgem Estates (Pty) Ltd
NCT Forestry Cooperative Ltd
Mid/serfo Transport
Payn Brothers Partnership
Tedder Contracting cc
SAFCOL
Shosholoza Foresrty cc
SAPPI Management Services (Pty) Ltd
D H Logging cc
Singisi Forest Products (Pty) Ltd
Stoneshack Timber Extractors
SOS Contractors Cc
Steyn Forestry Contracting
The Central Timber Co-op
Timberland Contractors
Yellowstone Timber Holdings
Zama Forestry Services
Timbersa.com, South Africa’s online information and trading portal for the timber, furniture and
related industries, listed several forestry companies that are not on the SARS Database (Appendix
A).
Geographical distribution of employers in the forestry sub-sector
Almost a third of the 610 levy paying companies in the forestry sub-sector are concentrated in
KwaZulu-Natal. A fifth each are located in Mpumalanga and Gauteng and 15% in the Western
cape (Figure 6). Between four percent (Eastern Cape) and one percent (North West) of all forestry
companies are located in the other provinces.
Figure 6: Distribution of levy paying forestry companies, by province (N=610)
Free State
3%
Eastern Cape
4%
Limpopo
2%
Western Cape
15%
Gauteng
21%
Northern Cape
2%
North West
1%
KwaZulu-Natal
30%
Mpumalanga
22%
Source: SARS database.
35
Forestry Sub-sector
Distribution of employers by size category
The majority of companies classified as falling into the forestry sub-sector of the Forest Industries
Sector employ less than 50 workers and can therefore be classified as small (Figure 7). The size
category distribution of active forestry 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%–16% are medium-size
companies, with between 50 and 199 employees.
Figure 7: Distribution of forestry companies, by size category
Large
5%
Large
6%
Medium
15%
Small
80%
Medium
16%
Small
78%
Active companies N=793
Levy paying companies N=610
Source: SARS database.
DRIVERS OF CHANGE IN THE FORESTRY SUB-SECTOR
Contribution
Expressed in real terms, the forestry industry contributed 8,7% of the agricultural GDP in South
Africa during the 2001/02 financial year (up from 6,3% in 1991/92). Forestry products contributed
7,3% towards the overall manufacturing GDP in the 2001/02 financial year (up from 6,2% in
1991/92). Overall contribution of the forestry industry and forestry products to national GDP is
currently 1,6% (as opposed to 1,4% in 1991/92).
SADC countries account for some 30% of Africa’s current plantation area, with South Africa alone
contributing nearly 20% of the total plantation area in Africa and being responsible for
approximately 85% of the trade in the southern African region (SA Forestry, July/August 2002).
South Africa has one of the largest man-made plantations in the world, and much of the saw timber
resource is certified by the Forest Stewardship Council (FSC) (Wood SA & Timber Times, October
2003). However, while other nations expand their timber industries, the industry in South Africa has
reduced considerably (SA Forestry, Sept/Oct 2002). The plantation area peaked at 1,52 million
hectares in 1997, declined to 1,33 million hectares in 2000 and stood at 1,35 hectares in 2002 (an
area last covered in 1991) (Figure 8).
36
Forestry Sub-sector
Figure 8: Plantation area, 1982 - 2002
1550000
All Species (Hectares)
1500000
1450000
1400000
1350000
1300000
1250000
1200000
1150000
'82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02
Source: Forestry South Africa.
The slowing down is attributed to the recent restrictions – including water allocations and the costs
of obtaining environmental clearance for new plantings - imposed on the industry by the
Department of Water Affairs and Forestry (DWAF). The country actually experienced a 190 000 ha
decline in its timber estate between 1997 and 2000 because more hectares were taken out of
forestry than were newly planted. New afforestation quadrupled from 10 034 hectares in 1982 to
45 423 hectares in 1991 but dwindled to 2 751 hectares in 2000 (Figure 9). A total of 6 207 were
newly planted in 2002.
Figure 9: New afforestation, 1982 – 2002
50000
All Species (Hectares)
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
'82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02
37
Forestry Sub-sector
Water is acknowledged to be a key constraint to economic growth in South Africa and there is
considerable pressure for efficient and sustainable use of the limited water resources (Le Maitrea,
Van Wilgena, Gelderbloma, Baileyb, Chapmana & Nela, 2002). The negative impacts of
afforestation include significant reductions in surface stream-flow around scarce resources,
especially water.
Despite this situation Smith & Everard (2001) are confident that South Africa has the technology,
competence and will to manage this problem effectively. Forestry products contribute to nearly
10% of the South African manufacturing GDP and have a R3 billion trade surplus. Discussions are
underway on how the industry can improve its water use, and government and forestry are
gradually reaching common ground in their understanding of the water issue, with forestry actively
involved in ensuring high water quality in streams and rivers by implementing responsible erosion
control procedures. These measures and the general sustainability of forestry are important issues,
yet difficult to manage in a country with such a diverse population. The call to forestry is for it to
make full use of opportunities that contribute to standards for sustainable forest management.
According to sawmillers in the Eastern Cape, Safcol (as the largest pine grower in the region) is
operating as a virtual monopoly and gives the bulk of its yield at low prices to mills owned by big
players in the area (Wood SA & Timber Times, Feb 2004). Kobus Breedt, Safcol’s chief executive,
insists that the company has been fair and consistent in the marketing of its logs but admits that
larger millers were given better prices because of bigger overheads and bigger orders The Minister
of Public Enterprises has urged Safcol to do more to ensure that the small mills are properly
supplied and that new players can enter the market.
In the Western Cape various players in the forestry industry need to enter into constructive debate
about the future of the sector. According to the Southern African Institute of Forestry chairman for
the Western Cape, Dave Le Maitre, much uncertainty exists about the future of the forestry
industry in the region (Wood SA & Timber Times, Nov 2001). According to Le Maitre the University
of the Western Cape could play a role in defining a clear vision for the industry, and the Institute of
Forestry should be taking practical steps to bridge the gap said to exist between students and the
industry.
Despite the troubled times, the industry has been able to announce major capital investment
programmes (±R7 billion in processing activity) in 2003, which are to be dedicated to the need for
an expanded resource base (±4 million tons/p.a.) (Wood SA & Timber Times, Dec 2003). It has
continued to extend its environmental operating credentials through initiatives in forest certification
and sustainable forest management, and continues to invest hundreds of millions of Rands in
research, human capital development (through training, education and Black Economic
38
Forestry Sub-sector
Empowerment strategies), technology development, and innovation. Added to this, the key
success factor of forestry has been its firm belief in the future, not only a belief in the industry itself,
but also in many hundreds of thousands of rural people who are dependent on it for their very
survival and who contribute so much to its success.
The long-term goal of the Forest Enterprise Development Office (FEDO) of the Department of
Water Affairs and Forestry (DWAF) is to stimulate all industrial development around forests (Wood
SA & Timber Times, Dec 2002). The focus is on developing the plantation resource, with the
Eastern Cape - in dire need of new investment - especially targeted for development because it
has about 120 000 ha of land suitable for new afforestation and there are available water
resources. According to Graeme Harrison from FEDO, it is possible that an annual income of R150
million/year within a period of 20 years can be achieved if half of the suitable land in the region is
developed. This does not include the benefits derived from further processing the timber.
If this figure is to be achieved, says Harrison, the plantation resource base must be expanded and
the improvement of rural infrastructure and access to finance, skills and markets also need to be
addressed. Part of the integrated development plan for Chata, a disadvantaged community,
involves exploring opportunities arising from existing and potential forestry resources. This includes
agriculture and infrastructural development such as roads, sanitation and water supply.
Further opportunities relating to forestry include: projects linked to the Amatola Hiking Trail which
passes through Chata; the sustaining and harvesting of dead and moribund trees from the
indigenous forests; and opportunities linked to the existing Chata pine plantation under DWAF
management. This could involve maintenance, silvicultural or harvesting contracts between DWAF
and the community.
According to Dr Michael Brink (SA Forestry, Sept/Oct 2002. pp. 7-8) the following factors are
certain to have a substantial impact on the growth of the forestry industry:

labour legislation;

HIV/Aids;

the price of fuel;

increased outsourcing (harvesting operations);

technology improvements (in relation to new and different machines); and

increased globalisation.
Brink also recommends that training centres be established, including one for machine operators.
39
Forestry Sub-sector
Privatisation
Of the total afforested area, some 46% of the area is under the control of private forestry
companies, such as Mondi, Sappi, and other private large companies (Tewari, 2001). Individuals
and partners under the umbrella of South African Timber Grower Association (SATGA) or
commercial farmers own another 24% of the total cover. The remaining 29% is under public
ownership and is governed by the South African Forests Company Limited (Safcol) and other state
organizations.
In his 2002/3 financial year budget speech, the Minister of Water Affairs and Forestry reported that
the previous year had seen substantial progress in restructuring state forests, both those of the
former homelands that are run by DWAF, and those of Safcol (SA Forestry, May/June 2002).
According to Minister Kasrils, real black empowerment has been effected and tangible community
benefits have accrued in the form of rentals for land used and shares in the forest companies
themselves. One unfortunate consequence of restructuring is that people have lost their jobs in the
forestry industry. For those who lost their jobs, a social plan was put in place that provided training
and advice.
The South African forest privatisation process started in 1990 and there have been at least two
successful sales to date, with one or two more pending (McPherson, 2002). In comparison to
countries such as New Zealand and Sweden, South Africa’s forest sales are doing fairly well, at
least on two accounts. Firstly, the forest sales to Hans Merensky and to Mondi look to be
successful: both of those forests now have balance sheets that will hopefully allow for some
sawmill moderations, further industrial development and, most importantly, some job and skills
development.
According to Salma’s Vince Erasmus, the state forestry assets already privatised have
demonstrated to all that government has a winning recipe for privatisation (Wood SA & Timber
Times, October 2003). The two packages already privatised are doing remarkably well. Both are
fully FSC certified. The forests and processing assets of the ex-homeland and in the Transkei are
testimony to the fact that industry prospers in commercial hands. Jobs have been created and
entrepreneurs have invested substantial sums in developing the region, its forests, products
industry, and its people. The same will be the case for the remaining privatisation packages, and
the industry is facing a better future (Wood SA & Timber Times, October 2003).
Also, South Africa has been the first country to recognise that some plantation forests should
simply be returned to their natural state rather than sold. Returning a plantation to its natural state
is better than seeing a company purchase a forest estate with all of the attendant promises and
debt involved, and then find itself bankrupt a few years later. As experience proved in New
40
Forestry Sub-sector
Zealand, high forest values are not necessarily a road to riches. Bankruptcy causes over-cutting of
the timber to raise cash and over-cutting, in turn, limits industrial development and causes years of
delay in job growth. One disadvantage, however, to South Africa’s 12 “wait” while the forests are
put “on hold” and a privatisation process takes place is the uncertainty with regard to log supplies
to local private sawmillers (McPherson, 2002).
Certification
SGS a multi-national certification company has decided to transfer its international FSC forestry
certification programme from the UK to South Africa (SA Forestry, July/August 2002). The transfer
of the programme holds the following advantages for South Africa:

South Africa will play a leading role in forest certification in future, specifically in relation to the
FSC programme;

some new auditing job opportunities for foresters will be created in South Africa (i.e. SGS will
train new auditors to assist with national and international audits);

the potential exists for a reduction in the cost of auditing as a result of lower overhead costs in
South Africa than in the UK; and

customer service locally should be substantially improved, especially in issuing certificates,
addressing appeals and replying to enquiries.
SGS South Africa has identified forest certification and testing of forest products as a future growth
industry in southern Africa (Wood SA & Timber Times, November 2003). The objectives of the
forestry division of the SGS are to:

effectively service the current FM and CoC customer base both locally and in the rest of
southern Africa;

expand FSC certification in southern Africa;

provide training to the forest industry; and

provide an integrative certification solution with regard to: FSC certification, ISO 9000 and ISO
14000 (quality and environmental), SA 8000 (social), OHSAS 8000 (safety), and wood strength
testing through the SATAS wood mark.
Growers with FSC-certified pulpwood will receive a far better allocation than other growers,
according to Carl Seele, chairperson of NCT Forestry Co-operative (SA Forestry, July/August
2002). However, a number of problems remain with FSC certification, especially for the smaller
growers and these need to be addressed in future.
Substantial public concern exists over the destruction of the world’s forests. More and more people
demand products that come from well-managed forests (Wood SA & Timber Times, July 2003).
41
Forestry Sub-sector
For this reason the Forest Stewardship Council (FSC) aims to provide a truly independent,
international and credible labelling scheme for timber and timber products. This will provide the
consumer with a guarantee that the product has come from a forest that has been evaluated and
certified as being managed according to agreed social, economic and environmental standards.
African Environmental Services (AES) became the first independent group certification scheme in
the country in 2003 and is one of only a handful of group certification schemes worldwide. Group
certification is a system that was introduced to make forest certification more affordable and
achievable for small to medium-sized growers (Wood SA & Timber Times, 2003).
Eight private timber growers in South Africa have joined the scheme and four have been certified
(Wood SA & Timber Times, Jun 2003). Intrinsic to the consultancy (the AES) is a strong conviction
about the importance of private landholders to the conservation of biodiversity: According to Steve
Germishuizen of African Environmental Services, the future of many species lies in the hands of
the private timber grower and farmer, and certification is a system for improving the level of
protection offered to these species. In general, South Africa has a high standard of forestry
management and it is relatively easy to achieve certification standards. Good management allows
a much higher level of control over operations, and with that comes improved productivity that
keeps timber growers up to date with the latest legislation.
Research and development
According to Dr Jan Fryk, the president of Skogforsk, Sweden’s forestry research institute, the
focus of forestry research in Europe on environmental matters (SA Forestry, Sept/October, 2002)
resulted in less work done on forest engineering and operational management topics. Fryk calls for
an increased emphasis on research into these subjects in order for productivity levels to be raised.
This also seems to be the case in South Africa. The National Productivity Institute’s (NPI) recent
report on the contracting industry indicated that forestry contractors felt that cutting back on
research and development hindered innovation and new technology (SA Forestry, July/August
2002).
According to Sappi’s chairman, Dr John Job, South Africa is a leader in forestry research and
development (SA Forestry, Jul/August 2002).
The Department of Forest Science at Stellenbosch University has set out on a path of research
and development in the field of precision forestry in the last three years (Wood SA & Timber Times,
July 2003). The reasons for this initiative are the worldwide trend in the development of information
and communication technology (ICT) skills, and the state of the information age around the globe,
42
Forestry Sub-sector
which now allows foresters to make informed decisions, implement accurate forest management
practices, and facilitate field operations in the confidence that optimum results will be achieved.
The Department of Forest Science at Stellenbosch University presented the first South African
Precision Forestry (PF) symposium during October 2003 (Ackerman, 2004). The intention of this
university department is to present a series of symposia over the next three years, culminating in
an International Precision Forestry Conference in South Africa. During the October 2003
symposium it was concluded that precision forestry needs greater thought and to become an
integral part of the community and environment if South Africa wants to compete and trade
internationally. In its attempts to develop a strategy to ensure technology uptake by the industry it
was felt that South Africa should ensure that information on precision forestry is obtained and
filtered through to the workplace faster through demos/pilots and joint ventures.
Controls are becoming stricter and information and technology more important. The use of
applicable technology will enable accurate and relevant decision making by skilled and capable
personnel. Better planning will ensure a match between demand and supply and that products
reach the mills on time.
According to Dr John Ledger of SADC Environmental Solutions the loss of biological resources
translates into loss of economic potential and options for commercial development in future (Wood
SA & Timber Times, January 2004). However, a more visionary, and therefore promising, state of
affairs appears to be prevailing between different roleplayers at present. Biotechnology can give us
faster-growing trees, yielding more timber on the same land, and conserving grasslands for birds. It
can also address the pressure on the harvesting of medicinal plants in the wild – a big commercial
industry.
Saasveld secure funds through the National Research Foundation for a study during 2004 to
determine the research needs of contractors (Wood SA & Timber Times, March 2004). The
research is aimed at assisting Saasveld to address specific contracting and industry needs.
Contractors
The development of emerging contractors is of great importance to the South African industry and
so is the establishment of good management skills for emerging contractors (Wood SA & Timber
Times, October 2002). In this regard Safca’s development manager will assist contractors with
tendering for contracts and the basics of business management.
According to the National Productivity Institute’s (NPI) report on the contracting industry (SA
Forestry, July/August 2002), processing mills felt that contractors should adapt to timber demand,
43
Forestry Sub-sector
apply multi-skilling, and even work fewer days or find other work until the mills open again. The
report also mentions that grower staff are too busy to assist contractors with training and might
have to close training centres, that contractors are not equipped because of financing problems,
and that growers should have a dedicated team to visit contractors and consider machines,
programmes etc. (SA Forestry, July/August 2002).
On a positive note the South African Lumber Millers Association has succeeded in convincing the
growers’ organisations to co-operate more closely with processors (Wood SA & Timber Times,
December 2003).
Currently, over 200 independent contractors are operating in the forestry industry, creating
approximately 35 000 jobs in the mainly rural areas of KwaZulu-Natal and Mpumalanga (Wood SA
& Timber Times, October 2002). The outsourcing of forestry activities over the past five years has
created an industry that employs approximately 35 000 people and has an annual turnover of R600
million, which represents a significant percentage of the industry’s overall production costs
according to Dr Colin Smith, KwaZulu-Natal chairperson of the SA Institute of Forestry (SAIF)
Sappi has been one of the leading companies in South Africa in outsourcing its major forestry
activities like harvesting, transport and silviculture to contractors for a number of years (Wood SA &
Timber Times, October 2002). This is in step with the worldwide trend, which currently shows that
self-employed contractors and entrepreneurs do 70% of all forestry work.
One of the most pressing issues facing contractors is obtaining finance (Wood SA & Timber Times,
October 2002). Most forestry companies are in the process of negotiating with financial institutions
to set up independent contractors. In order to facilitate this process, long-term contracts must be
set up because contracting is capital intensive.
In many instances the level of skills and knowledge among contractors is not yet there. Therefore,
a fairly high level of interaction and supervision, mentoring is still needed, according to the
chairman of the Forestry Contractors Initiative, Mike Edwards (Wood SA & Timber Times, October
2002). The focus is now on raising contractors who, in many cases are not adequately skilled, to
the level of being accepted as permanent, capable and skilled in the running of viable businesses.
Financing, vehicle control, negotiating skills, drawing up of business plans and resolving labour
issues are all part of establishing the outsourcing business principle.
The industry is plagued by cut–throat competition and more than its share of challenges. The
general state of the economy, volatile Rand, depression in the pulp market, unwieldy labour
legislation and the serious impact of AIDS (to be discussed in more detail below) and crime all
44
Forestry Sub-sector
contribute to making contracting an extremely difficult business (Wood SA & Timber Times,
October 2001). Diversification, based on innovation and entrepreneurship, is viewed as one way to
combat the challenges. Contractors are actively seeking out profitable value–adds by creating
finished products, and the number of independent contractors is actually growing.
For anyone wishing to enter the industry a good background in both forestry and business is
recommended (Wood SA & Timber Times, October 2001). The contract must be large enough for
economies of scale and feasibility studies and business plans are essential. Contractors in general
have a high degree of professionalism and are extremely productive. They are weak on training,
tend to use old equipment, and conduct almost no research and development.
What the industry is aware of is that AIDS, as one of the major threats to growth, is likely to affect
the more mobile section of the workforce, with trained employees being likely to be affected first
(Wood SA & Timber Times, October 2001). This could have major repercussions on human
resources in the industry and lead to a situation said to be occurring in other African countries –
where for every driver, contractors have three in training. Within the next ten years, 20% of forestry
workers in South Africa will need to be replaced to maintain the current level of employment, which
figures are lower than for other South African industries because of a wide age distribution in the
forestry industry.
The perception is that 80% of small, medium-sized and micro–sized enterprises in South Africa fail
every year as a result of AIDS, crime and a lack of management expertise (Wood SA & Timber
Times, October 2001). In a study that explored the basic issues behind the high failure rate of
small business in SA, most respondents reported employing fewer than 10 employees and having
an annual turnover of less than R1m.
Despite these figures there has been an increase in the number of black empowerment contractors
over the past two years. These businesses make up 20% of the membership of the Forestry
Contractors’ Association and many of these new contractors are likely to service new growers.
Speaking at the 45th congress of the SA Timber Growers’ Association in May 2001, Minister Kasrils
said that although some progress has been made in bringing black growers into forestry, these
efforts should be strengthened (Wood SA & Timber Times, October 2001).
Small growers
During Forestry South Africa’s first annual general meeting held in 2003, the Minister of Water
Affairs and Forestry urged bigger stakeholders such as Mondi and Sappi to show a more
concerted effort in their development of smaller timber growers (Wood SA & Timber Times, June
2003). Commenting on the way in which government is hampering development through an
45
Forestry Sub-sector
inadequate licensing process, Minister Kasrils said: "I cannot abide red tape which stumps
development. The government licensing process takes far too long. However, there is a study
under way which will streamline this process".
According to Tewari (2001) the promotion of smallholder tree-growers is necessary to meet the
aspirations of many stakeholders. Smallholder cultivation is expected to:

produce fuel wood for meeting the energy needs of rural people;

alleviate poverty by generating income and employment;

conserve the fragile ecosystem; and

halt the process of deforestation.
In South Africa, wood is the primary source of fuel for 12 million rural and urban dwellers, and more
than 10 million m³ of firewood is chopped annually in South Africa, amounting to 75 000 man-h
spent every year on the gathering of wood (Tewari, 2001).
Most small growers enter into contracts with timber companies. Sappi and Mondi the two main
companies have small grower schemes. According to Tewari (2001) Mondi’s small grower scheme
is considered to be unattractive, as it demands a considerable amount of capital, forcing farmers to
sell their land to the company. Sappi’s small-grower scheme ‘Project Grow’, which was aimed at
the small-scale growers in KwaZulu-Natal, has been successful. The farmer provides all the land
and labor inputs, whilst Sappi provides tree saplings, silvicultural training and planting supervision,
and interest-free capital which is offset against the value of crop. These individuals own an area of
between 2 and 7 ha of tribal land. The scheme started in 1983 with three growers on 5 ha of land,
and since then the membership has grown more than 2 000 growers on more than 4 000 ha of
land. Manyof these small growers happen to be women.
Ninety percent of all registered timber growers are members of Forestry South Africa (FSA) and
making full financial contributions (Wood SA & Timber Times, June 2003). The FSA and DWAF
together are addressing the needs of the forestry sector. One of the cornerstones of FSA's
formation was the opportunity to open the organisation to small timber growers. However, forestry
development in rural areas has been slow and issues still being addressed are water, the
environment, human resources, transport, forest protection, and property rates. Concerns exist
about the potential financial impacts on small growers. The payment of R3,50/ha for water
consumed may not be an enormous burden, but when this is added to the payment to cover
property rates and to provide adequate security on forestry estates, the escalating costs of new
statutory environmental and minimum wage requirements, and the costs of fuel, electricity and rail
age the burden becomes intolerable. These factors are serious threats to the viability of forestry
and impact negatively on investor confidence in the sector.
46
Forestry Sub-sector
Community development
Poverty has forced rural households to exhaust their forestry resources at the expense of the longterm sustainable development of the broader communities concerned (Yirekyi-Boateng, 2001). The
communities concerned need to be empowered to reverse the deforestation process through
afforestation. Yirekyi-Boateng warns that concrete development practices are intrinsically
incomplete if not linked to a conception of sustainable development, that contingent factors should
not be ignored and that institutional support is vital.
Information Technology
Information and commercial technologies are having a growing impact on the forest industry in
Sweden (SA Forestry, Sept/Oct 2002), where digital information is available in all sections of the
timber supply chain. The Internet-based service - www.forestrysolutions.net - is part of the South
African industry’s drive to become a global player.
The objective of www.forestrysolutions.net is to provide foresters in South Africa with a "one-stop
shop" (Wood SA & Timber Times, February 2002). The Bops (best operating practices) system is
made available to registered companies through the Internet, giving clients instant access to the
latest practices available. The services on offer include start-up training, a query facility, and a
compact disk back up of the website for remote areas. The Bops allow users to submit suggestions
and new operational methods. In South Africa two certification standards have been available in
recent years, namely ISO 14001 Environmental Management System and Forestry Stewardship
Council (FSC). One of the major benefits of www.forestrysolutions.net is the fact that it provides
the user with a competitive advantage, with members having access to better information than any
individual company attempting to generate the information in-house. Further benefits offered by the
system include the fact that:

contractors can now be managed at a macro and micro level;

it enables the transfer of technology between companies;

both parties are able to provide their input into innovation schemes; and

the website also includes other services, such as advertising.
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 forestry sub-sector. It should be decided whether the employment figures
47
Forestry Sub-sector
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 6 700 workers.
Active forestry companies
Employment figures were stated for almost three quarters (70,7% or 561) of the active forestry
companies listed in the SARS database (Table 18). These companies collectively employed
34 273 workers, giving an average of 61 workers each. Large companies employed an average of
691 workers each, medium-size companies employed 98 workers each, and small companies 11
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 forestry companies listed in the SARS database, and the
average number of workers per size category is assumed to apply generally, then an estimated
48 447 workers are employed in the forestry sub-sector.
Table 18: Employment in active forestry companies, according to size category
Large Medium
Small Sub-total Not classified
Total
Number of companies
30
86
445
561
232
793
% Distribution
3.8
10.8
56.1
70.7
29.3
100.0
20728
8446
5099
34273
Mean (workers per company)
691
98
11
61
Employment according to size
60.5
24.6
14.9
100.0
Large Medium
Small
Total
Total employed
Projected distribution
Number of companies
42
122
629
793
% Distribution
5.3
15.3
79.3
100.0
Mean (workers per company)
691
98
11
61
29300
11939
7208
48447
60.5
24.6
14.9
100.0
Estimated no of employees
Employment according to size
Source: SARS database.
Levy paying forestry companies
Employment figures were stated for almost three quarters (73,8% or 450) of the levy paying
forestry companies listed in the SARS database (Table 19). These companies collectively
employed 30 787 workers, giving an average of 68 workers each. Large companies employed an
average of 780 workers each, medium-size companies employed 99 workers each, and small
companies 12 workers each.
48
Forestry Sub-sector
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 forestry companies listed in the SARS
database, and the average number of workers per size category is assumed to apply generally,
then an estimated 41 733 workers are employed in the forestry sub-sector.
Table 19: Employment in levy paying forestry companies, according to size category
Large Medium
Small Sub-total Not classified
Total
Number of companies
25
73
352
450
160
610
% Distribution
4.1
12.0
57.7
73.8
26.2
100.0
19488
7225
4074
30787
Mean (workers per company)
780
99
12
68
Employment according to size
63.3
23.5
13.2
100.0
Large Medium
Small
Total
Total employed
Projected distribution
Number of companies
34
99
477
610
% Distribution
5.6
16.2
78.2
100.0
Mean (workers per company)
780
99
12
68
26417
9794
5523
41733
63.3
23.5
13.2
100.0
Estimated no of employees
Employment according to size
Source: SARS database.
Although large companies account for five percent of all forestry companies, they provide almost
two thirds of the jobs in the sub-sector (Tables 18 and 19). Medium-size companies account for a
quarter of the jobs and small companies for less than a fifth of the jobs.
Geographical distribution of the workforce
Almost 40% of the more than 40 000 employees in the forestry sub-sector work in KwaZulu-Natal
province. Gauteng province has the next highest percentage of employees (35%), Mpumalanga is
third with 16%, and the Western Cape is fourth with six percent (Table 20).
Table 20: Distribution of the workforce in the forestry sub-sector, by province
Province
Companies
Distribution
KwaZulu-Natal
180
29.5
16629
39.8
Gauteng
131
21.5
14477
34.7
Mpumalanga
135
22.1
6752
16.2
91
14.9
2577
6.2
Western Cape
Total employed Distribution
49
Forestry Sub-sector
Limpopo
14
2.3
804
1.9
Eastern Cape
24
3.9
178
0.4
Free State
17
2.8
131
0.3
North West
8
1.3
104
0.2
10
1.6
81
0.2
610
100.0
41733
100.0
Northern Cape
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 forestry 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 forestry sub-sector in terms of occupation,
population group and gender.
Population group distribution
More than 80% of all the workers in the forestry companies that responded to the National Skills
Survey or that have submitted workplace skills plans are black, and less than a fifth are white. The
majority of managerial (75%), professional (84%) and technical (56%) staff are white. At least twothirds of clerical/ administrative workers, service workers and skilled workers are black. The
majority (94% plus) of agricultural workers, operators and labourers are black (Figure 10).
Figure 10: Population group distribution of workers, according to occupational category
50
Forestry Sub-sector
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=57).
Gender distribution
Male workers predominate in the forestry sub-sector of the Forest Industries Sector. Only a quarter
of all the workers in the forestry sub-sector are women (Figure 11). Very few female workers are
employed as operators (five percent). Only a tenth of the managers, professional workers and
skilled workers are women.
Close to a fifth of technicians, a quarter of service workers and a third of the labourers are women.
It is only among agricultural workers (51%) and clerical workers (43%) that there are a more
representative distribution of female workers.
Figure 11: 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=57).
51
Forestry Sub-sector
Age distribution
No data available.
Huyssteen & Mortimer (2003) are concerned that forestry management teams are maturing and
some of these teams will all be retiring within five years and find there are few younger foresters to
replace them. There are even fewer foresters available elsewhere to fill the gaps and no longer is
there a pool of government foresters to draw from.
Occupational distribution
Operators and labourers account for more than half of the workforce in the forestry companies that
were interviewed or that have submitted workplace skills plans. Technicians and clerical workers
each account for a tenth of the workforce (Table 21). The rest of the jobs in the forestry sub-sector
are agricultural workers (8%), skilled workers (7%), professionals (5%) and managers (2%). Less
than one percent of the workforce in the forestry sub-sector is employed as service or sales
workers.
Table 21: Occupational distribution of workers, by race and by gender
Occupational level
Total
% African Coloured
Asian
White Female
Male
Managers
343
2.0
21.3
2.3
1.5
74.9
9.3
90.7
Professionals
850
5.0
6.2
1.8
7.9
84.1
14.1
85.9
Technicians & associates
1565
9.3
27.0
3.8
13.3
56.0
16.9
83.1
Clerical workers
1593
9.4
49.2
5.4
13.8
31.6
43.3
56.7
125
0.7
44.8
10.4
7.2
37.6
25.6
74.4
Agricultural workers
1339
7.9
91.6
1.6
0.5
6.2
51.0
49.0
Skilled workers
1212
7.2
54.5
2.6
9.1
33.9
10.1
89.9
Operators
3575
21.1
79.8
7.5
7.7
4.9
4.5
95.5
Labourers
6316
37.3
95.0
4.0
0.6
0.3
31.4
68.6
16918
100.0
71.7
4.5
5.6
18.3
24.2
75.8
Service / sales workers
Total Employees
Source: WSPs 2002/3 and NSS respondents (N=57).
An analysis of the racial composition of the different occupational levels shows an inverted pattern:
whites predominate in the few top-level jobs, while it is mainly black workers that are employed in
the large number of positions at the lower end of the scale (Table 21).
52
Forestry Sub-sector
Qualifications
No data available.
Part of the makeup of a graduate forester is the unique blend of the scientific and the practical that
enables the forester to adapt to the local and current demands and at the same time to evaluate
the consequences of today’s actions when viewed on the long term (Huyssteen, & Mortimer,
2003).
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 forestry sub-sector reported that they recruited new staff locally to fill
vacancies (to a “large extent”, according to 67% of respondents, and to “some extent” according to
27% of them). Two-thirds of the companies strived to improve retention of employees. Almost a
third of the respondents reported that their company made use of short-term contracts or
consultants. None of the respondents reported a need to recruit new staff from abroad, but almost
a quarter of the respondents reported that they had to headhunt new staff to fill vacancies. Less
than a tenth of the companies sometimes used outsourcing as a means 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 22: Activities used to meet skills needs
Activity
Recruiting locally
Mostly (3) Sometimes (2)
Not at all (1)
Total
N=15
66.7
26.7
6.7
100.0
Improved retention of employees N=13
30.8
30.8
38.5
100.0
Short term contracts /consultants N=13
23.1
7.7
69.2
100.0
Head hunting
N=13
15.4
7.7
76.9
100.0
Outsourcing
N=13
0.0
7.7
92.3
100.0
Recruiting from abroad
N=13
0.0
0.0
100.0
100.0
Source: Respondents to the National Skills Survey, 2003.
53
Forestry 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 23, below (ranked from the
most frequently mentioned to the least frequently mentioned).
Almost three quarters of the respondents to the National Skills Survey (NSS) were of the opinion
that workers’ literacy1 skills needed to be upgraded (to a “large extent”, according to 40% of
respondents, and to “some extent” according to 33% of them). Team working skills appear to be
next in priority, communication skills third and numeracy¹ skills fourth.
Table 23 Skills that need to be upgraded in NSS companies
To a large extent To some extent
Not at all
Literacy skills
N=15
40.0
33.3
26.7
100.0
Team working skills
N=14
14.3
50.0
35.7
100.0
Communication skills
N=13
23.1
38.5
38.5
100.0
Numeracy skills
N=15
20.0
33.3
46.7
100.0
Management skills
N=15
13.3
33.3
53.3
100.0
Problem solving skills
N=14
14.3
28.6
57.1
100.0
Technical and practical skills
N=14
7.1
35.7
57.1
100.0
IT professional skills
N=13
30.8
7.7
61.5
100.0
General IT user skills
N=13
0.0
38.5
61.5
100.0
Customer handling skills
N=14
0.0
0.0
100.0
100.0
Source: Respondents to the National Skills Survey, 2003.
It is important to consider skills needs by occupational category (Table 24). 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 workers in the nine occupational categories needed their skills upgraded during the
2002/3 financial year. The aggregate means show that in forestry companies, the occupational
category needing skills upgrading to the largest extent was labourers, followed closely by
agricultural workers and labourers. The high rating of need among labourers is consistent with the
1
These skills appear to be mainly needed by labourers, agricultural workers and operators (see Table 23).
54
Forestry Sub-sector
earlier observation that there is a need for literacy and numeracy skills. Our calculation of training
rates shows that training presented during the 2002/3 financial year was predominantly focused on
agricultural workers (see section on actual training provided, below). The higher rating of skills
needs among labourers is a concern, given that our calculation of training rates shows that
labourers have low training ratios.
Table 24: Occupations needing their skills upgraded
Mean
Senior officials and Managers / owner managers
1.6
Professionals
1.5
Technicians
1.3
Clerical / administrative workers
1.5
Service workers
0.0
Agricultural and fishery workers
2.0
Skilled Workers
1.3
Plant / Machine Operators and Assemblers
1.9
Labourers
2.5
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 the following factors would cause them to increase training during
the 2003/4 financial year. Their responses are given in Table 25 (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 the targets set
for productivity would cause them to increase training during the 2003/4 financial year (to a “large
55
Forestry Sub-sector
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 and new labour legislation third.
Table 25: Factors that would influence training decisions
Largely
Productivity targets
Some Not at all
Total
N=16
56.3
37.5
6.3
100.0
Quality standards and customer service objectives N=15
40.0
46.7
13.3
100.0
New labour legislation
N=14
57.1
21.4
21.4
100.0
Levels of employee illness
N=16
46.7
26.7
26.7
100.0
Employee turn-over
N=14
64.3
0.0
35.7
100.0
Increase in demand for products / services
N=16
37.5
25.0
37.5
100.0
Technology change
N=15
20.0
40.0
40.0
100.0
Organisational restructuring
N=14
14.3
42.9
42.9
100.0
Employee expectations
N=14
14.3
35.7
50.0
100.0
SETA initiatives
N=14
21.4
28.6
50.0
100.0
Increased competition
N=15
33.3
13.3
53.3
100.0
Waste reduction
N=13
23.1
15.4
61.5
100.0
Trade union initiatives
N=14
7.1
14.3
78.6
100.0
Delays in developing new products / services
N=14
0.0
7.1
92.9
100.0
Source: Respondents to the National Skills Survey, 2003.
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. The
National Productivity Institute’s (NPI) recent report on the contracting industry emphasises that the
quality of work by contractors was of a generally high standard (SA Forestry, July/August 2002. p.
30-31). However, there are some attitude problems on the grower / processor side, while
insufficient income seems to lie behind many of the contractor issues. Mondi Forests and its
contractors had a joint meeting to discuss root causes of constraints in the forest industry (Joseph
& Steenkamp, 2002). Issues that were discussed included mutual trust, contractual arrangements,
transformation, and the cost of contracting. Mondi Forests have proposed an informal three-man
(arbitration) committee independent of any particular geographic area to attend to problematic
issues between contractors and Mondi. The changing environment from own field-operations by
growers to outsourcing, and from the current business structures to empowered businesses also
needs to receive attention.
56
Forestry Sub-sector
Productivity is a major concern to all parties and although the FCPI (Forestry Contractor
Productivity Initiative) determined that contractors generally are productive, there is no room for
complacency. Improved productivity by a contractor will give his business a competitive edge.
According to Joseph & Steenkamp (2002) a positive partnership between for instance the Work
Study Department of Mondi Forests and contractors can create an environment conducive to
innovation and adaptation: this will support the sustainability and growth of contractors’
businesses.
Levels of employee illness and employee turnover ranked among the top five factors that would
cause companies to increase training (Table 26). In a separate question respondents were asked
to indicate the causes of employee turnover. The causes for turnover, ranked from the most
frequently mentioned to the least frequently mentioned, are shown in the table below. A third of the
respondents to the National Skills Survey (NSS) mentioned the loss of employees through illness
(to a “large extent”, according to six percent of respondents, and to “some extent” according to
31% of them).
Table 26: Reason for turnover
Large extent Some extent
Not at all
Total
Loss of employees through illness
N=16
6.3
31.3
62.5
100.0
Loss of employees to other establishments
N=16
6.3
18.8
75.0
100.0
Dismissals
N=15
13.3
6.7
80.0
100.0
Retirement
N=15
6.7
6.7
86.7
100.0
Retrenchment
N=15
0.0
6.7
93.3
100.0
Emigration
N=15
0.0
0.0
100.0
100.0
Source: Respondents to the National Skills Survey, 2003.
The high rating of the loss of employees through illness as a factor that may influence companies
in their decision making on training strategy, coupled with the fact that it is perceived as the most
influential reason for employee turnover, may reflect the impact of HIV/Aids on the workforce in the
forestry sub-sector. In the July/August 2002 issue of SA Forestry (p.5), it was suggested that the
industry work towards more mechanization in view of the HIV/Aids problem. According to Erasmus
(2003) the pandemic is depleting the skills base in all rural-based industries.
WORKPLACE TRAINING IN THE FORESTRY 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
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Forestry Sub-sector
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 buy-in
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
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 the 793 active companies in the forestry sub-sector on the SARS database are expected to
participate in the scheme then more than three-quarters are paying the skills levy. Which might be
perceived as an excellent buy-in from employers. The majority (81%) of the large and mediumsized employers on the SARS database 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 610 employers that are paying the skills
levy, a mere 7,5% (46 enterprises) have submitted a workplace skills plan (Table 27). Confirming
international compliance trends, take-up from large employers are higher as oppose to mediumsized and small employers. Although a third (35%) of larger levy paying employers are submitting
WSPs, almost a quarter (23%) of the medium-sized and a mere two percent of the smaller
employers do so.
Table 27: Buy-in and take-up of the skills development levy in the forestry sub-sector
Company size
Large
Medium
¹Active companies
¹Levy paying
%
²Submitted WSP
%
42
34
80.7
12
35.4
122
99
81.1
23
23.2
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Forestry Sub-sector
Small
629
477
75.9
11
2.3
Total
793
610
76.9
46
7.5
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
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 forestry sub-sector that participated in the National Skills Survey
responded to questions about training infrastructure. Three of the respondents employed a training
manager, seven made use of a skills development facilitator and five have selected a training
committee to oversee skills development/training. The one company that did not employ such a
manager, facilitator or committee was a small company, which did not provide training at all.
With regard to training budgets and plans, bursary and study leave policies and other training
measures:

Eight of the sixteen respondents from the forestry sub-sector stated that their companies had a
training budget as on 1 April 2003.

Only one 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.

Twelve of the sixteen companies were keeping training records during the 2002/3 financial
year.

Eleven of the sixteen respondents from the forestry 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. Four of the companies who have
submitted a workplace skills plan were large and one was a medium-sized company.
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Forestry Sub-sector

Eleven of the sixteen respondents from the forestry sub-sector stated that their companies had
a formal business plan as on 1 April 2003.

Two of the companies that had a formal training plan and a formal business plan reported that
the two plans were not linked.
It was mainly small companies that had no training budget or plan, bursary or study leave policies
or other training measures in place as on 1 April 2003.
Actual training provided
The fifteen companies that employed a training manager or skills development facilitator to
oversee skills development/training 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. Six of the fifteen
companies (or 40%) had trained less than a quarter of their workforce. Forestry companies who
have submitted training reports to the FIETA in 2000 reported similar trends. Nine of the 18 forestry
companies (or 50%) had trained less than a quarter of their workforce.
Provision of training focused on professionals, technicians and labourers. Around half of the
workers in these occupational categories have received training. Around a third of all the managers
and clerical workers participated in training. A quarter of the agricultural workers, a fifth of all skilled
workers and 15% of all operators have received training.
Most of the respondent companies that participated in the National Skills Survey provided in-house
courses presented by their own training staff. Mainly on the job training was provided. Half the
companies had also engaged external agencies to present courses, on or off their premises.
Five of the companies in the forestry sub-sector that participated in the National Skills Survey
responded to a question about training standards. Two-thirds of the courses presented to workers
in these companies met South African Qualifications Authority (SAQA) / National Qualifications
Framework (NQF) standards. A fifth of the courses met nationally recognised standards other than
SAQA/NQF standards and a fifth was presented according to internationally recognised standards.
Claiming grants
Only seven of the fifteen companies that employed a training manager or skills development
facilitator to oversee skills development/training and 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.
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Forestry Sub-sector
All the small companies, three medium-sized and one large company reported that they did not
claim grants against their levy payment. Five of the eight non-claiming companies gave reasons.
Two small companies indicated that they were not aware of the grants, another felt the effort did
not make financial sense and one did not have time to complete the forms. One medium company
found the application procedure too complicated.
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:

Less than half of the respondent companies (two large, three medium-size and two small ones)
indicated that they have planned to initiate learnership programmes for established employees
during the 2003/2004 financial year.

One-third of the respondent companies (two large companies, three medium-size and one
small) indicated that they have planned to initiate learnership programmes for new employees
during the 2003/2004 financial year.
Currently no learnerships are registered with the Department of Labour. A National Certificate in
Forestry: Timber Harvesting Level 3, has been submitted to SAQA for registration. The FIETA is in
the process of identifying six learnerships leading to the National Certificate in Forestry: Timber
Harvesting Level 3. The learnerships include:

cable yarding

feller buncher

harvester

tractor

skidder

forwarder
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Forestry Sub-sector
The standard generating body (SGB) and consultants are working at registering a qualification to
cover silviculture.
SUPPLY OF SKILLS
The creation of a forestry culture is a process essential to healthy forests (Zwolinski, 2001). Good
forestry teaching, politics and leadership have the ability to create a forestry culture based on
knowledge, dedication and professional ethics. Foresters must acquire the necessary knowledge
and skills to communicate with rural communities and integrate forest management with land use
and environmental conservation. Efforts to build a more competitive forest industry by increasing
productivity, rehabilitating the environment, creating conducive policies, etc., are bound to fail
unless a new generation of specialists are recruited into the forest profession (Huyssteen &
Mortimer, 2003).
For this reason universities need to function as centres of excellence and advanced thinking. They
must maintain a leading role in promoting technological advancement, economic growth and
society development. Development in policies, laws strategies and programmes must become an
integral part of forestry education. Within the discipline of forestry, the ethos of multi–purpose
forestry should be emphasised, with foresters needing to become custodians of forest land and to
be able to participate in multi–disciplinary teams deciding on use and management in the broader
context of resources. The objective for forestry teaching should not be based on optimising the
current objectives but on optimising the choice of objectives.
According to Prof. Janusz Zwolinski (2001) a successful agricultural university must include reallife situations based on the co-operative efforts of academics, students and involved communities.
Another requirement is a mixture of technical knowledge in the fields of economics, history, political
science, anthropology, demography, sociology with skills such as the ability to listen, to interview,
to organise, to support, to mediate, to act, to lead and direct, to evaluate, and to promote and
market. Partnerships and daily collaborations should be set up with various organisations – private
sector, public sector and non–governmental organisations. The wider the team of partners with
which agricultural universities collaborate, the more relevant can their contribution to forestry be.
Diverse forestry workshops have been held for future foresters to teach them how to manage the
natural resources responsibly, to provide for people’s needs, and to drive the economic
development of the country.
Southern African forestry education made history when the first joint distance education course in
Forest Engineering, undertaken by both Stellenbosch and Saasveld forestry students, was
completed successfully (Ackerman & Längin, 2003). The development of the course, Operational
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Forestry Sub-sector
Efficiency, was made possible through a joint research and development project funded by the
National Research Foundation (NRF) and its German counterpart, Forschungszentrum Jülich.
By using WebCT as a learning platform on the Internet, students were able to complete self-tests
online, use discussion boards, and chat for idea exchange. The web site also offered a
comprehensive database of course material, articles and journal excerpts online. The practical side
of forest engineering was taught through face-to-face lecturing, practical sessions, and field days.
Students were expected to participate in practical exercises; for example, assessing and
classifying terrain and the analysis and costing of harvesting operations.
This combination of face-to-face lecturing, practicals, field trips and distance education via the
Internet offered students at both institutions (Stellenbosch and Saasveld) the opportunity to join
forces for an improved and extremely interesting forest engineering course.
The PE Technikon provided an excellent opportunity for their forestry students to gain experience
in an activity that will eventually form part of their work. As part of the technikon’s initiative to
manage the natural environment of the campus, the development of an environmental
development plan for the campus was initiated in February 2003 (Wood SA & Timber Times,
December 2003). The management systems used in the course were designed in a way to
encourage student involvement and thus ensured a firm grounding for environmental ethics. The
proposed plan addresses aspects of the management of infrastructure such as the natural
environment and hiking and mountain bike trails. The plan also provides details on the
development of conservancy - a means of encouraging Saasveld’s neighbours to actively manage
the environment adjacent to Saasveld.
With significant changes in the nature of the forest industry of South Africa, tertiary education
institutions are facing new challenges to meet demands on the required skills of learners who
obtain their qualifications. For this reason, Saasveld has decided to restructure its forestry and
wood technology courses from 2004 (Wood SA & Timber Times, March 2004). The first and third
years of training will consist of academic training, while the second year will consist of a
combination of structured practical training on campus and industry experience. FIETA provided
financial assistance to implement the new structure.
Different exit levels in the form of a national certificate, national diploma and BTech degree will
lend greater flexibility to training programmes. A total of 105 first year students registered for 2004
at Saasveld: 45 students started the forestry course, 13 enrolled for wood technology and 47
registered for the BTech degree (Wood SA & Timber Times, March 2004).
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Forestry Sub-sector
Three accredited training providers are currently participating in the Forestry Industry Education
and Training Authority’s (FIETA) SMME training project (Hlengwa, 2004). These training providers
are:

Aquila Training in Graskop;

Edufarm in Piet Retief; and

SA Forestry College in Crammond.
Other accredited training providers in the forestry sub-sector are:

New Africa Skills Development

T & S Dealers cc (trading as Fire Tech.)

Lottenburg

Stop Fire
Training providers with provisionally accreditation include:

Dale Nortje

Concordia

Platorand

Practical Solutions
According to Hlengwa (2004) there is a lack of active forestry-training establishments in the
southern provinces, where they are really needed.
Developing new field trainers needs attention (Hlengwa, 2004). Since the 1970s and 1980s when
many people were trained, the forest industry has been drawing from a pool of trained personnel
that has not been replenished. This has resulted in a shortage of personnel such as chainsaw
operators, loader operators and supervisors, and the effects have been clearly felt by the industry.
Safety at work has also suffered. The view of training as an investment and not a cost needs to be
re-emphasised. The recent FIETA project was an attempt to address this problem, and forestry
operators are urged to take FIETA’s recent initiative further and use the Skills Development Fund
to train even more of their workers, and even outsiders.
Gauteng-based Enviro Chainsaws has expanded its activities to include training in the use of
chainsaws, which is set to grow into a major feature of the business (Wood SA & Timber Times,
February 2002). Extensive training is essential as many people simply lack the knowledge required
to maintain and repair a machine that is as highly sophisticated as a chainsaw.
New Africa Skills Development is a company that offers accredited vegetation management
training courses (Wood SA & Timber Times, November 2001). The five-day courses cover
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Forestry Sub-sector
herbicide legislation, safety, species identification and application (spraying). Training manager,
Mark Dicks, identified the need for courses to lead to a ‘ticket’ from product-related training
undertaken by a herbicide company. The courses take place on the premises of the client and are
intended to ease the way to acquiring a licence in job areas related to the components of the
courses.
65