Services SETA Presentation to
The Portfolio Committee on Labour
23 August 2005
Introduction by CEO – Ivor Blumenthal

Introduction of team attending etc.

Framework of presentation

Brief Service SETA organisational overview

Brief sector overview

Highs and lows of SSETA activities for 2004/5 year

Report on funds received and disbursed for 2004/5 year

SSETA contribution to National objectives of Growth,
Employment and Poverty alleviation

Opportunities and challenges for SSETA in implementing
NSDS 2005 – 2010

Q&A session with portfolio committee
Brief overview of SETA
Management & staff numbers and equity profile
Description
Executive management
Senior management
Staff incl middle management
Total
Total
11
17
127
Black
Male
female
3
3
3
8
21
89
155
27
White
Male
Female Disabled
3
2
0
6
0
15
2
100
3
23
2
Board member numbers and equity profile
Description
Council incl.audit committee
EXCO
Total
49
15
Black
Male
female
11
6
3
0
White
Male
Female Disabled
16
15
1
8
4
Cont… Brief overview of SETA


List of standing committees supporting governance and
management structures include :
ETQA & Learnership committee

Research committee

Audit committee

Remuneration committee

Conference committee

Employment Equity committee
Regional advisory boards currently established in 5
provinces – subject to change to 4 SIC code committees in
each province mirroring the new 4 chamber structure
Brief overview of Sector

107,588 employers on database with projected 10% continuing to pay
levies after 1st August 2005 expanded threshold introduction

New employer base characterised by 87% SMEs and 13% LMEs

9 chambers re-structured & consolidated into 4 new chambers and 23
industries

Business Services Chamber

Management Services Chamber

Commercial & Industrial Services Chamber

Client Care Services Chamber

Largely trans-sectoral (13 of 23 industries specifically in 2 chambers)
i.e. New Business & Management chambers

83% of employers reside in 3 largest provinces of Gauteng, Western
Cape and Kwa Zulu Natal

New governance structure focusing on regional SIC code input
through establishment of regional SIC code committees.

Black provider forum establishment
Highlights of SSETA activities for last financial year

Re-establishment of SSETA for period April 2005 to March 2010

Exceeding GDS targets by over 300%

Over 600 SDFs trained

23 learnerships registered with SAQA totaling 54 to date

ISO accreditation of SSETA as an organisation

Piloting of School pre-learnership project

Establishment of the African Marketing Confederation & African
hairdressing confederation

Partnership agreement with the Dti

Signing of international partner agreements regarding reciprocity and
certification frameworks

Roll out of Amasondi Esibindi disability project to other provinces

Development and registration of the small business qualification for
SMEs

Successful implementation of NSF funded Domestic Worker skills
development project
Cont… Highlights of SSETA activities for last
financial year

Employee assistance programme roll out in response to a holistic view
to skills development linked to productivity focus of NSDS 2000 - 2005

Introduction of video conferencing to reduce flight costs

Exceeding disability targets by 2% on learnership enrolments for
2004/5 period

Support for the formation of an Inter-sectoral Disability Forum and
facilitation of a PESTEL workshop for the forum

Accreditation of 1089 providers

2423 providers assisted through accreditation workshops

26 Strategic planning (PESTEL) workshops conducted at an industry
and provincial level with key informants and captains of industry

Completion of 8 research projects to inform development of new
Sector Skills Plan

Participation through the NSA retreat in the development of NSDS 2005
- 2010
Lowlights of SSETA activities for last financial year

learner apathy

SDF fraud

Provider apathy

Employer fraud

Learner fraud

ETQA over commitment

Biased media

Professional & band ETQA conflict with vocational ETQAs
Report on funds received and disbursements for 2004/5 year
REVENUE
Skills development levy income
Skills development penalties and interest
NSF - Domestic worker project income
Investment income
Other income
R'000
396,542
5,990
75,043
5,260
3,004
Total Revenue
458,839
EXPENDITURE
Employer grants and project expenses
Administration expenses
NSFDomestic worker project expenses
(465,784)
(42,863)
(75,043)
Total Expenditure
Net deficit for the year
(583,690)
(97,851)
SETA contribution to National objectives of Growth,
Employment and Poverty alleviation

800 learners to receive NVC qualification at NQF level 4

6 regional offices established in 6 provinces supporting skills
development on a national basis

Contact centre learnerships contribute to foreign direct investment of
R250 million and 200 sustainable jobs

Partnership with FET sector - piloting of PSLP – 54 schools in 9
provinces - 3000 learners – enter labour market in 2009

Successful implementation of DWSDP having met all targets

15 336 new business registered in the sector over 2004/5 year

Graduate intern programme with over 30 learners placed permanently

Venture creation implemented with disabled communities and rural
community where learnership grant itself exceeded basic income of
individuals.

11 EAP toolkits developed and distributed in English, Zulu and Tswana
& disseminated to 3976 candidates

55 039 learners completed structured learning – 4856 high level
occupations, 24 447 intermediate level occupations and 25 736 at entry
level occupational levels
Opportunities facing SSETA in implementing
NSDS 2005 - 2010

A more targeted approach to skills development with focus on scarce
and critical skills - Concept of introducing a dedicated service
excellence qualification

Collaboration and strategic partnerships at National, provincial and
international levels including NEPAD secretariat

Fostering closer links with industry through training of sector
specialists through collaboration with industry professional bodies
and associations

More focused support and communication to large and medium firms
in the sector towards skills development

Development of sector wide empowerment charter and scorecard

Integration of sector BEE, EE and skills development with customised
programmes for SDFs

Provision of learning programmes to NGO and non levy paying
enterprises

Venture creation and establishment of entrepreneur support base of
providers, mentors, etc
Cont… Opportunities facing SSETA in
implementing NSDS 2005 - 2010

Strengthen management and governance structures through CPD

Pilot new learnership enrolment with DoL provincial offices with
involvement of public DOE providers

Create over 15 000 permanent sustainable jobs

Link learnerships and placement within broader EPWP framework
through partnership agreements linked to demand side strategies

Create provincial quality assurance and Excellence structure to
monitor providers with regard to ISOE
Challenges facing SSETA in implementing
NSDS 2005 - 2010

Providing skills development support and initiatives to approximately
100 000 non levy paying employers in sector

Inclusion of EE criteria for large and medium firms in the sector for
10% mandatory grant component

Improved board profile with regards to EE

Learnership funding specifically with drop in income due to tax
amendments

Organised labour representation on regional and chamber committees
and boards

Mandated representation from organised business

Approval for ETQA to charge for accreditation

Fast tracking certification partners for all industries

Disability target and profile in the sector

Gainful employment amongst disabled learners
Annexure 1. Sector Scarce skills
1. Management & leadership skills
2. Team leader & supervisory skills
3. Project management
4. Call centre operators
5. Plant operators (e.g. bulldozers, graders etc)
6. Marketing skills ( incl. brand & research management )
7. Event management skills (2010 world-cup)
8. Property related skills ( commercial & residential)
9. Embalming skills
10. Hairdressing multi skills ( Caucasian & Afro )
11. Business related skills ( QMS, admin, finance, IT )
Annexure 2. Generic sector critical skills
critical thinking / problem solving
Communication and language
Numeracy
Literacy
Computer Literacy
Business etiquette
Customer service
Diversity interaction
General life skills (finance, banking, writing)
Work ethic
Oganisational ethos
Culture of learning and service provision
Team Work
Quality systems and procedures
Health & Safety
Personal Presentation
Induction to service
Analytical & Interpretive
Report Writing
Corporate Governance
Negotiation Skills
Multi-culturism
Diplomacy
Relationship building
People Management
ABET
Service Delivery
Marketing strategies
Vision, strategy, innovation
Administration and Finance
Project Management Basics
Information Management
Annexure 3. Projected Levy Paying companies by
company size and Province
PROVINCE_CODE
Total Eastern Cape
Total Free State
Total Gauteng
Total Kwa Zulu Natal
Total Mpumalanga
Total Northern Cape
Total Northern Province
Total North West
Total Western Cape
Total Unknown
Total members per Province
% per Company Size
COMPANIES COMPANIE COMPANIES COMPANIES
_SMALL
S_MEDIUM
_LARGE
_UNKNOWN
251
151
4136
634
521
39
89
110
1042
8
6981
38
24
354
84
53
5
10
15
94
0
677
20
9
206
62
33
1
6
6
53
0
396
0
0
4
0
1
0
0
0
1
1
7
86.6
8.4
4.9
0.1
TOTAL
309
184
4700
780
608
45
105
131
1190
9
8061
% per
Province
3.8
2.3
58.3
9.7
7.5
0.6
1.3
1.6
14.8
0.1
100