Services SETA Presentation to
Portfolio committee on Higher
Education and Training
26 May 2010
1
MANDATE
for 23 INDUSTRIES THAT
CONSTITUTE THE SERVICES
SECTOR
2
NSDS II extension
3
NATIONAL SKILLS DEVELOPMENT STRATEGY EXTENSION DOCUMENT
Guidelines of focus areas within NSDS II
Firstly, investment into the
development of identified
scarce and critical skills,
needed to implement the
various priorities
Secondly, the poor and
vulnerable are to be
assisted in a more focused
manner
Thirdly, investment into the
strengthening of the
country’s system of colleges,
universities of technology and
universities
Note: Success Indicators 2.8,
4.1 and 4.2 are to be given
special emphasis
Note: see success Indicators
2.5, 3.2 and 4.3).
Foundational learning is an
option under Success
Indicator 2.7.
Note: all the Success Indicators listed
under Objective 5 of NSDS II are
important in the year ahead
Objective 1 and Objective 2 (2.1, 2.2,
2.3) remain unchanged and will apply
to and/or extend to the financial year
ending March 2011
4
Source: Executive Summary “National Skills Development Strategy Extension Document
”
Medium Term Strategic Framework relevance to
The National Skills Development Strategy are:
1. Speeding up economic growth and transforming the economy to create
decent work and sustainable livelihoods
2. Massive programme to build economic and social infrastructure
3. Comprehensive rural development strategy linked to land and agrarian
reform and food security
4. DHET focus - Strengthen our skills and human resources base
5. Improve the health profile of the nation
6. Intensify the fight against crime and corruption
7. Build cohesive, caring and sustainable communities
8. Pursuing African advancement and enhanced international co operation
9. Sustainable Resource Management and use
10. Building a Developmental State including improvement of public services
and strengthening democratic institutions
5
Source: Executive Summary “National Skills Development Strategy Extension Document
”
BUDGET AND STRATEGIC
PLANS 2010 / 11
Linked to 10 MTSF
priorities and unpacked
into 58 indicators aligned
to NSDS ii
6
2010/11 Budget at a Glance
R 960 million incl.
NSF portion
Admin Budget
R 93 million
9.7 %
Mandatory
…
Discretionary
R 155 million
16.1 %
R 520 million
54.2 %
Focus As Per NSDS II Extension
Discretionary (R520 million)
Primary 50% 2.8
4.1
53 %
4.2
Secondary
2.5
10%
3.2
4.3
11 %
2.7
Balance of
Discretionary –
objective 5 and
other indicators
36%
R 77 million
R 93 million
R 106 million
R 2 million
R 36 million
R 5 million
R 15 million
R 186 million
7
50% Discretionary Plans (R 276.5 million)
Scarce and Critical Skills
2.8 5510 learners
•720 learnerships
•200 section 13 apprenticeships
•400 section 28 apprenticeships
•2990 scarce skills bursaries
•1200 skills programmes
4.1 4075 learners
•1700 learnerships
•500 section 13 apprenticeships
•400 section 28 apprenticeships
•1295 scarce skills bursaries
•180 skills programmes
4.2 3225 learners
• 3225 internships with targeted
2580 placements
8
10% Discretionary Plans (R 58 million)
The Poor and Vulnerable
2.5 BEE support
• 400 small BEE firms
•100 BEE co-operatives
2.7 Adult Learning
•1410 learners to complete level 4
3.2 Non Levy Paying enterprises
• 6208 NPLE’s
•776 NGO’s
•388 CBO’s
•388 Co-operatives
4.3 New Ventures
• 450 young people
9
Other Discretionary projects
NSDS indicators
Budget
1.1 SSP and provincial offices
52 million
1.2 SDF’s and career guidance
8 million
2.2 SME’s support to 6550
enterprises
48 million
5.1 ISOE’s
40 million
5.2 NVC providers
200 thousand
5.3 NQF support
4.7 million
5.4 Board governance and
capacity building
2 million
10
SLA TARGETS 2010/2011
Success Indicators
Target
Success Indicators
Target
1.2 SDFs / SS
400
2.7 ABET 1 Achieved
0
2.1 Large
452
2.7 ABET 2 Achieved
0
2.1 Medium
557
2.7 ABET 3 Achieved
0
6,550
2.7 ABET 4 Achieved
1,058
2.7 TOTAL ACHIEVED
2.8 Learners (Workers) Entered
Learnerships
2.8 Learners (Workers) Entered MTA
Section 13
2.8 Learners (Workers) Entered MTA
Section 28
2.8 Learners (Workers) Entered
Bursaries
2.8 Learners (Workers) Entered
Internships
1,058
2.2 Small Levy Paying
2.3 Government Departments
personnel budget
N/A
2.5 Small BEE/BEE CO-Ops
2.5 Small BEE
400
2.5 Small BEE Co-ops
100
2.5 Total Supported
500
2.7 ABET 1 Registered
0
2.7 ABET 2 Registered
0
2.7 ABET 3 Registered
2.7 ABET 4 Registered
2.7 TOTAL REGISTERED
2.8 Learners (Workers) Entered U/S
Skills programme
720
200
400
2,990
0
1,200
0
1,410
0
2.8 TOTAL ENTERED
2.8 Learners (Workers) Completed
Learnerships
2.8 Learners (Workers) Completed
MTA Section 13
5,510
504
140
11
SLA TARGETS 2010/2011 (continued…)
Success Indicators
Success Indicators
Target
2.8 Learners (Workers) Completed
MTA Section 28
280
2.8 Learners (Workers) Completed
Bursaries
2,093
2.8 Learners (Workers) Completed
Internships
0
2.8 Learners (Workers) Completed
U/S Skills programme
840
2.8 TOTAL COMPLETED
3,857
3.2 NPLEs, NGOs, CBOs, CO-Ops
7,760
3.2 NLPEs
6,208
3.2 NGOs
776
3.2 CBOs
388
3.2 CO-Ops
388
4.1 Learners (Unemployed)
Entered Learnerships
4.1 Learners (Unemployed)
Entered MTA Section 13
4.1 Learners (Unemployed)
Entered MTA Section 28
4.1 Learners (Unemployed)
Entered Bursaries
1,700
500
400
1,295
4.1 Bursary Entered Non SA Citizen
4.1 Learners (Unemployed) Entered
Internships
4.1 Learners (Unemployed) Entered U/S
Skills programme
Target
0
180
4.1 TOTAL ENTERED
4.1 Learners (Unemployed) Completed
Learnerships
4.1 Learners (Unemployed) Completed
MTA Section 13
4.1 Learners (Unemployed) Completed
MTA Section 28
4.1 Learners (Unemployed) Completed
Bursaries
4.1 Learners (Unemployed) Completed
Internships
4.1 Learners (Unemployed) Completed
U/S Skills programme
4,075
4.1 TOTAL COMPLETED
2,853
4.2 Learners in Critical Skills
3,225
4.2 Workplace Experience placed
2,580
1,190
350
280
907
0
126
4.3 NVC Entered
450
4.3 NVC Sustained
315
5.1 ISOEs
5.2 NVC Institutions
5
18
12
BUDGET ANALYSIS OF THE
2009 / 2010 YEAR
13
Budget Analysis of 2009/10
Admin 10%
Budget
(Rm)
Collected
(Rm)
Actual
(Rm)
88.1
94.6
94.4
9.98%
Mandatory
50%
Discretionary
20%
176.5
488.2
481.5
236.2
50% = 240.7
98.1%
207.3
561.2
14
Performance highlights 2009/10
SSP approved and signed off
Comprehensive career guidance – media coverage
576 SDF’s trained of planned 300
125% of large firms and 137% of medium firms
wsp/atr received grants
2085 Non levy paying firms, NGO’s, CBO’s and
community based co-operatives supported against a
planned 1300
8714 unemployed learners enrolled against a
planned 7500
4654 unemployed learner completions including
previous year intake
8471 SME’s supported of planned 6522
1262 BEE firms and BEE co-ops supported of planned
550 including EME and SME verification support
3099 adult learning interventions of planned 1800,
introducing the new Business Foundational Programme
7561 employed learners enrolled against a planned
5520
1669 learners enrolled in critical skills and 998
enrolled on internships to gain work experience
393 young people enrolled on new venture
programme against a planned 200
9 provincial ISOE’s established through provincial
ISOE model
47 providers accredited to provide NVC qualification
5117 completions including previous year intake
15
Sample FET / HET List
1 Advtech Resourcing
2 Vuselela College FET
3 Zodiac Commercial School
4 Goldfields FET College
5 Motheo FET College
6 Maluti FET College
7 Flavius Mareka FET College
8 Skills Training & Employment Centre
9 Port Elizabeth FET College
10 University of the Witwatersrand
11 (UNISA)
12 Tshwane University of Technology (TUT)
13 Nelson Mandel Metropolitan University
14 PC Training & Business College
15 EWC Kathorus Campus
16 Walter Sisulu University
17 Buffalo City F.E.T College
18 Central Johannesburg College
19 Vega- Imagination Lab
16
SWOT ANALYSIS – Internal Factors
Strengths
Diversity of the sector – 37 industries
Strong Leadership capability
Financial viability due to sector growth
Willing to test new and innovative
approaches
Strong brand awareness
Many industries skills sets benchmarked
Positioned as supporter of the disabled
Ten locations in south Africa
Strong strategic partnerships at local and
global levels
Diverse culture of the management and staff
Leadership philosophy of innovation and
creativity
Values entrenched in growing the sector to
be globally competitive
Holistic approach
Weaknesses
small team to serve very large base
technology platform sometimes slow
some regions still developing
customer satisfaction improvement
Retention strategy still to be developed
17
SWOT ANALYSIS – External Factors
Opportunities
Threats
professionalise service sector
Head hunting of key personnel
develop innovation and systems thinking
territorial disputes on cross sector areas
strengthen social dialogue
traffic disruption impact on productivity
develop decent work standard
legislative effect – eg etqa vs qcto
promote employee wellness
competition vs collaboration – apprenticeships
create further job opportunities
technology disruption / unavailability
improve governance and ethics
18
PROVINCIAL ALLOCATIONS AND
SPECIAL PROJECTS FOR 2010
19
Medium Term Strategic Framework
aligned to Services SETA
Priority 1: Speeding up economic growth & transforming the economy to create decent
work and sustainable livelihoods
Indicator 1.1 Transformation of poor and marginalised to participate in the economy
Proposed projects
CBO, NGO and co-ops registration and voucher programmeramme
RPL cadet and top up interventions for 500 NLPE's , CBO's NGO's and Co-operatives
RPL cadet and top up interventions for 500 NLPE's , CBO's NGO's and Co-operatives
Foundational NQF I business certificate
ABET L4
18.1 Learnerships for scarce and critical skills linked to occupations
18.2 Learnerships for scarce and critical skills linked to occupations and 80% placement
Gainful Employment Grant for 18.2 learnerships
18.1 Apprenticeships for scarce and critical skills linked to occupations
18.2 Apprenticeships for scarce and critical skills linked to occupations and 80% placement
Gainful employment grant for 18.2 artisans
18.1 Bursaries for scarce and critical skills linked to occupations
18.2 Bursaries for scarce and critical skills linked to occupations 80% placement
Internships for scarce and critical skills linked to occupations and 80% placement rate
Gainful Employment Grant for 18.2 interns
20
Source: Office of DCEO Strategy Services SETA
Indicator 1.1 Transformation of poor and marginalised to participate in the
economy (continued…)
Main indicator
Proposed projects
1.2 weak support for SMEs and co-ops
SSEA SEDA partnership programme
1.3 growth in decent employment and income
security
DWSP standard and committee and ILO meetings
1.4 Improving industrial competitiveness
Competitiveness programme at FET and HET levels
Pum business improvement programmeramme
1.5 improvement of support structures and systems
for economic activities
SSEA and BCSA secretariat support and BUSA membership scheme
1.6 access to start up capital
Introductory programmeramme on DFI's and private equity
1.7 support growth for globally competitive sectors
including services sub sectors
Global competitiveness programme at FET and HET levels
1.8 Support also growth for domestic products and
services
1.9 Expanding decent work to include rural
development and agrarian reform
1.10 implementation of BBBEE charters and codes
Domestic competitiveness programme at FET and HET levels
Establishment of Service sector Policy think tank DWSP
transformation committee projects including advocacy and promotion of
BBBEE
Bee verification grants subsidy
BEE EME verification grants
1.11 implementing of trade and industrial policy
linked to sustainable decent work opportunities
1.12 identifying ways to reduce cost of production
while maximising the creation of decent work and
sustainable livelihoods
1.13 Strengthen consultative forum to allow for
growth of identified industrial sectors through social
partner interaction
Establishment of Service sector Policy think tank
Specialised FET / HET programmeramme on value chain analysis and
supply chain management
SSEA and BCSA secretariat support and BUSA membership scheme
21
including jobs growth summit
Source: Office of DCEO Strategy Services SETA
Indicator 1.1 Transformation of poor and marginalised to participate in
the economy (continued…)
Main indicator
Proposed projects
1.14 supporting programme
improvements in pay and conditions
for contract work and agriculture
TES research project on establishing of appropriate models for collective
leading to quality of jobs
engagement and improvement of TES workers
1.15 putting in place systems to
regulate contract work and address
TES capacity building programmeramme relating to convention 181 and
problems of labour brokers, particularly articles specific to addressing abusive labour practices and CAPEs
certain abusive practices
constituency support
1.16 creation of a more inclusive
economy by expanding opportunities
for the poor to access the labour
market
Establishment of Service sector Policy think tank
1.17 strengthening competitiveness
and entry into value chains by sme's
and co-ops
Specialised FET / HET programme on value chain analysis and supply
chain management
Road shows promoting co-ops act and SSEA membership
1.18 ensuring country keeps up with
global technological trends including
use of ICTs
1.19 encouraging science and
technological innovation and
development
Establishment of Service sector Policy think tank
establishment of innovation institute for Services
22
Source: Office of DCEO Strategy Services SETA
Government Priority 2: Massive programme to build economic and social
infrastructure
Main indicator
2.1 Artisan and apprenticeships
Proposed projects
Artisan section 13 apprenticeships
Artisan section 28 trade certificates
Simulator training for plant operators
2.2 management skills to support
infrastructure projects
2.3 ensuring ICT infrastructure
support and enables services to
meet needs of the country and its
people
2.4 ensuring human settlement
formation allows for economic
participation and socio cultural
amenities
Material development and
occupational qualification
development with CEPs
2.5 developing physical
infrastructure in rural areas
Pilot of construction skills management programme
Establishment of Service sector Policy think tank
Pilot of ARC community associations and linked
qualifications and meetings
FET / HET partnerships linked to development of physical
infrastructure in rural areas
Rural pilot projects
23
Source: Office of DCEO Strategy Services SETA
Government Priority 3: Comprehensive rural development strategy linked to
land and agrarian reform and food security
Main indicator
Proposed projects
3.1 Projects linked to support underdeveloped
largely rural areas linked to food production and
skills development
MASHAV SSETA pilot project
Services sector farmers market in the Eastern Cape / bursary R 16000 for 400 per
province
Main indicator
Proposed projects
3.1 Projects linked to support underdeveloped
largely rural areas linked to food production
and skills development
Farmers NVC project
3.2 Explore and support non-farm activities
UBUNTU tea house project
Register the co-op R250 / RPL the business and give a cadet programme as a start up
3.3 Co-operatives development including
development of one-stop shops
Co-op support programmeramme
24
Source: Office of DCEO Strategy Services SETA
Priority 4. Strengthen our skills and human resources base
Main indicator
Proposed projects
4.1 Improving learner outcomes by
20% improvement at schooling level SPLP and career guidance projects
4.2 Improved quality of early
childhood development services
Pilot Feuerstein IE at ECD level including facilitator training
4.3 Broaden access to post
secondary education and improve
higher education throughput rate
Pilot Singapore maths system
BBA 500 x 10 000
Pilot CAT for NQF 4 learners into 2nd year degree programmes
25
Source: Office of DCEO Strategy Services SETA
HET Programmes
Main indicator
Proposed projects
4.4 ensuring a diverse mix of sites of learning and
types of training providers to deliver postsecondary education
HET partnership delivery sites where appropriate to
address skills shortages
4.5 learners to be given tools to make informed
choices regarding education opportunities and
labour market information
Career guidance booklets and OFO toolkits for all FET /
HET institutions
SAQA Career Guidance Project
Training of SDFs and sector specialists on occupations
and mapping of jobs
4.6 Incentives to increase proportion of students to HET bursaries at public and private sector level for post
study at post graduate level including basic and
graduate studies at masters and phd levels linked to
applied research
applied research for the sector
HET bursaries at public and private sector for post
graduate management development programme
4.7 SETA support to link public FET colleges to link
with business and industry including FET
management capacity to respond and involve
Pilot capacity building programme with at least one
employers more meaningfully
public FET per industry
4.8 Strengthen capacity of FET colleges to partner
with government agencies and civil society
programme that create and incubate SMEs
Establishment of Service sector Policy think tank
26
Priority 5 :Improve the health of all South Africans
Main indicator
Proposed projects
5.1 Increase institutional capacities to
deliver health-system functions to
improve management of health
services, particularly at hospitals
Pilot the care giver plus occupational programme
Pilot the care giver plus occupational programme- Supervisors
Dedicated programmeramme to train cleaners for specialisation in
medical environments
5.2 Implementation of the
Comprehensive plan for the
treatments, management and care of
HIV and AIDS to reduce HIV incidence
rate by 50% by year 2011
Advocacy and toolkit support programme for employers and
employees in the sector
27
Source: Office of DCEO Strategy Services SETA
Priority 6: Intensify the fight against crime and corruption
Main indicator
Proposed projects
6.1 Involvement of individuals and
communities in the fight against Projects on raising community policing and support of
crime
CPFs
6.2 formulation and
implementation of programme to
improve efficiency and
effectiveness of the criminal
justice system
Piloting of the Moot Court Project
6.3 Urgently combat the scourge
of corruption in the public and
private sectors and in society
IOD membership and workshops on corporate
through advocacy…
governance and ethics
28
Source: Office of DCEO Strategy Services SETA
Priority 7: Build cohesive, caring and sustainable communities
Main indicator
Proposed projects
7.1 facing shared challenges and
belonging to the same democracy IDASA "active business citizenship for democracy" ABC4D
with a shared destiny…
participation project - Blydesdale Project - KZN and EC
Pilot bursary programmeramme for NGO management
focusing on grassroots lobbying and advocacy
Main indicator
Proposed projects
7.2 Promote a shared value
system and greater sense of
Pilot UBUNTU tea house project with events industry community solidarity…
at least 5 per province
7.3 Support the development
and strengthening of community
organisations…
CBO pilot grassroots lobbying and advocacy workshops
29
Source: Office of DCEO Strategy Services SETA
Priority 8 :Pursuing African advancement & enhanced international co operation
Main indicator
8.1 Continued prioritization of the African
continent
Proposed projects
AFRO Zone - Hairdressing and Beauty
Co branded certificates for Learnerships within the Afro zone
Partnership with the Namibian Training Authority
8.2 working towards the establishment of a SA
development partnership agency for partnerships
Establishment of Service sector Development agency for Africa
with other countries on the continent
8.3 Strengthening south -south relations
Employment conference in Brazil and MoU with Brazilian Services
sector organisations
India SME chamber partnership and Nasscom conference
China / Singapore . Philippines projects and partnerships
Hong Kong Beauty Seminar
ISPN Hairdressing Alliance
GAPPS
OMC Hairdressing
Mauritius Marketing Chamber Conference
China Sola heater project
New Zealand Property alliance
Australian Funeral
Est of Asian / SA Zone agreement for Marketing reciprocity
Australia / New Zealand projects and partnerships
CII partnership - New Delhi India
30
Source: Office of DCEO Strategy Services SETA
Priority 8 :Pursuing African advancement & enhanced
international co operation continued….
Main indicator
Proposed projects
8.4 Strategic relations with strategic
formations of the North
MoU OECD Paris - Services sector and vocational systems
IRPF / NAR lobby advocacy programme
SANEC
TVET UK
Exponential UK
Mashav - Israel
Feuerstein - Israel
ORT Global UK / Moscow
Construction Skills
EMC Europe
Agefos - France
FEDMA - Belgium
Dansk Frissor - Denmark
Canada events management
Worldskills
31
Source: Office of DCEO Strategy Services SETA
Priority 8 :Pursuing African advancement and enhanced
international co operation continued….
Main indicator
Proposed projects
8.5 Participate in the Global system
of Governance
UN Global Compact
ITC - Geneva - services sector
ITC - ILO - Turin
ILO Geneva - ILO conference including domestic worker
discussions
CIPE - Washington
IOE - Brussels
GTZ
UN Energy - Washington
plumbing
ITUC - Paris
UNCTAD - UN Geneva
32
Source: Office of DCEO Strategy Services SETA
Priority 9: Sustainable Resource Management and use
Main indicator
Proposed projects
9.1 Efforts to meet the energy target
of 12% by 2015 and renewable energy
target of 10 000 GWh by 2013, …
Pilot energy management programme bursaries UN
9.2 Establishing a national framework
response on climate change
Pilot bursaries for green programme at FET and HET levels to
mitigation…
boost awareness and support
9.3 To pursue and explore further the
concept of Green Jobs including
scaling up of labour intensive natural
resources management practices that Pilot HET programmeramme to develop co-host of green
contribute to decent work and
specialists across property, associations and marketing sub
livelihood opportunities.
sectors
33
Source: Office of DCEO Strategy Services SETA
Priority 10: Building a Developmental State including improvement of public
services and strengthening democratic institutions
Main indicator
10.1 Government commitment to making information
available to citizens about public services and opportunities
offered by our democracy.
Proposed projects
Bursaries for certificate in political leadership for business and
labour constituents in the sector / Parliamentary Project /
Alliance Project
Bursaries for PgDip in political leadership for business and labour
constituencies
10.2 Increase the availability of programme for leadership and
management development by extending the volume and take
up of high quality practical training programme for public
service managers
Partnership with the PSETA
MDP bursaries for junior, middle and senior managers in the post
10.3 Improving the delivery and quality of public services
office / CCMA
Parliamentary Internship programmeramme
10.4 Improve management capacity in frontline services and
back office support systems…
10.5 Building partnerships with society and strengthening
democratic institutions
Partnership with PSETA - for secretarial and admin learnerships
PITMAN Certification
Bursaries for certificate in political leadership for business and
labour constituents in the sector / Lobby and Advocacy for PR
Bursaries for PgDip in political leadership for business and labour
constituencies
NEDLAC capacity building programme for org bus, org labour and
community
10.6 Educating society about values, rights and responsibilities
of citizenship as enshrined in the constitution…
IDASA capacity building project / ABC for D
10.7 improving the functionality and capacity of institutions
such as NEDLAC and strengthen the participation of organised
sectors of society in them
BCSA internships
SSEA internship
CO-op internship
NGO and CBO programmeramme
34
YOUTH UNEMPLOYMENT
STRATEGY – 2010/11
 Decent work sector programme
 Career guidance projects – SAQA , Summit, Workplace
 Apprenticeship programmes
 Learnerships
 Internships
 FET and HET Bursaries
 NVC programmes
 Partnerships with other key institutions representing youth
 jobs summit focussing on employment opportunities across all
industries in the sector (Premise if each sector can create a
thousand decent jobs = 25 industries = 250 000 jobs)
Accelerating RPL for recognition linked to training intervention
and job placement – Gainful employment grants
35
We never drop
the ball …
Thank You
36