1. FP&M SETA 2011/12 Performance Annual General Meeting: 28 September 2012

2. Introduction Background 2011/12 Highlights 2011/12 Performance Challenges

3. Background FP&M SETA PPPPCTFLFIETA Minister of HET announcement in November 2010 Amalgamation of 3 SETAs

4. Background FP&M SETA was established from 1 April 2011 to 31 March 2016 to provide skills development services to the following fibre processing and manufacturing sub-sectors: – Clothing, Footwear, Forestry, Furniture, General Goods, Leather, Packaging, Print Media, Printing, Publishing, Pulp and Paper, Textiles and Wood Products

5. Background Interim Board and Constitution – 1 April 2011 – 30 September 2011 Constitution based on standard SETA constitution in place from 1 October 2011 Permanent Board appointed by Minister of HET: – Ministerial appointees (3) including Independent Chairperson – 6 organised employer representatives – 6 organised labour representatives Functional Committees established SETA Organisational structure established

6. Highlights Completed structural amalgamation – Implemented new organisational structure successfully – Complied with statutory requirements and national skills development deadlines Implemented sound financial and corporate governance policies and procedures Complied with mandatory grant requirements for 2011/12 – 55% of mandatory grant income disbursed Allocated discretionary grant funding to key priority areas – R111 million allocated

7. Highlights Focused discretionary grant funding on skills development – In rural areas; – Targeting designated groups (youth, women, persons living with disabilities; and – To address scarce and critical skills needs in the FP&M sector Broadened stakeholder consultation – Regular regional workshops and focused strategic discussions – Active participation by employer and labour organisations in SETA strategic planning processes (SSP development)

8. Performance: 2011/12 Indicator 4.1 – Credible Institution for Skills Planning Target 2011/12PerformanceVariance Submit consolidated FP&M Sector Skills Plan (SSP) by 31 August 2012 AchievedNo variance Develop and implement a Research Agenda AchievedNo variance Maintain a central skills planning and learner database AchievedNo variance Submit Quarterly & Annual Reports according to DHET timeframes AchievedNo variance

9. Performance: 2011/12 Indicator 4.2 – Increasing access to occupationally directed programmes Target 2011/12PerformanceVariance Conduct annual WSP/ATR analysis to determine middle level skills needs. AchievedNo variance Learning programmes (RPL) 50 workers entered 25 workers completed Learning programmes (RPL) NIL workers entered NIL workers completed Learning programmes (RPL) -50 workers entered -25 workers completed Learning programmes (AET) 800 workers entered 400 workers completed Learning programmes (AET) 209 workers entered 52 workers completed Learning programmes (AET) -591 workers entered -348 workers completed

10. Performance: 2011/12 Indicator 4.2 – Increasing access to occupationally directed programmes Target 2011/12PerformanceVariance Learnerships 600 employed and 1200 unemployed learners registered 300 employed and 600 unemployed learners completed Learnerships 522 employed and 978 unemployed learners registered 329 employed and 567 unemployed learners completed Learnerships -78 employed and -222 unemployed learners registered 29 employed and -33 unemployed learners completed Skills Programmes 200 employed and 500 unemployed learners registered 100 employed and 250 unemployed learners completed Skills Programmes 708 employed and 628 unemployed learners registered 311 employed and 448 unemployed learners completed Skills Programmes 508 employed and 128 unemployed learners registered 211 employed and 198 unemployed learners completed

11. Performance: 2011/12 Indicator 4.2 – Increasing access to occupationally directed programmes Target 2011/12PerformanceVariance Bursary Programmes 80 employed and 100 unemployed learners registered 40 employed and 50 unemployed learners completed Bursary Programmes 18 employed and 125 unemployed learners registered NIL employed and NIL unemployed learners completed Bursary Programmes -62 employed and 25 unemployed learners registered -40 employed and -50 unemployed learners completed Work Experience Placement 90 unemployed learners placed. Work Experience Placement 28 unemployed learners placed. 11 Firms entered into agreements with the SETA & FET/HET institutions. Work Experience Placement -62 unemployed learners

12. Performance: 2011/12 Indicator 4.2 – Increasing access to occupationally directed programmes Target 2011/12PerformanceVariance Section 13 Apprenticeships 100 employed and 100 unemployed learners registered 50 employed and 50 unemployed learners completed Section 13 Apprenticeships 47 employed and 54 unemployed learners registered 52 employed and NIL unemployed learners completed Section 13 Apprenticeships -53 employed and -46 unemployed learners registered 2 employed and -50 unemployed learners completed Section 28 RPL programmes 50 learners assisted to achieve artisan qualifications through RPL Section 28 RPL programmes 2 applications to conduct Section 28 trade tests were received. Section 28 RPL programmes -48 learners

13. Performance: 2011/12 Indicator 4.2 – Increasing access to occupationally directed programmes Target 2011/12PerformanceVariance Develop an ISOE strategy to address high level skills gaps Development of strategy is underway Strategy to be finalised in the 2012/13 financial year Establish a Stakeholder forum to address high level skills supply A stakeholder forum was established to develop a generic design course of the FP&M sector in collaboration with SABS Design Institute and identified HETs. No variance Sign an MoU with an HET Institution to conduct sector research This is being addressed through the collaboration with SABS Design Institute An MoU will be signed in the 2012/13 financial year

14. Performance: 2011/12 Indicator 4.2 – Increasing access to occupationally directed programmes Target 2011/12PerformanceVariance Post-Graduate Studies 5 employed and 10 unemployed post graduate students registered 4 employed and 8 unemployed post graduate students completed Post-Graduate Studies 5 employed and 3 unemployed post graduate students registered NIL employed and 7 unemployed post graduate students completed Post-Graduate Studies NIL employed and -7 unemployed post graduate students registered -4 employed and -1 unemployed post graduate students completed

15. Performance: 2011/12 Indicator 4.3 – Promoting growth in public FET system Target 2011/12PerformanceVariance A minimum of 1 FET College is accredited per province Accredited 4 FETs in KZN, 3 in Gauteng and 2 in Limpopo -6 provinces Support 10 ISOEs located within FET/HET institutions 3 ISOEs in HET Institutions MoAs with 5 FET Colleges -7 ISOEs Indicator 4.4 – Addressing low level of language and numeracy skills Target 2011/12PerformanceVariance Develop a central learner database to track training opportunities AchievedNo variance

16. Performance: 2011/12 Indicator 4.5 – Encouraging better use of workplace skills development Target 2011/12PerformanceVariance 80% of large, 60% of medium and 40% of small firms submit WSP/ATRs by 30 June 2011 1258 firms submitted WSP/ATRs of which 1055 received mandatory grant payments. Unable to establish the breakdown of levy paying entities per size and could therefore not draw a comparison Develop and maintain a database of accredited providers AchievedNo variance Advertise discretionary funding windows AchievedNo variance 1 collaboration agreement with other SETA or line department KZN DEDT (continuing collaboration) DAFF (new agreement) No variance

17. Performance: 2011/12 Indicator 4.6 – Supporting cooperatives, small firms and worker/community training initiatives Target 2011/12PerformanceVariance Develop and implement a strategy to assist cooperatives Discretionary funding strategy makes provision for the support of cooperatives No variance Assist 20 cooperatives to address skills needs 1 cooperative awarded discretionary funding -19 cooperatives Develop and maintain database of interventions AchievedNo variance Develop and implement a strategy to assist cooperatives Discretionary funding strategy makes provision for the support of small firms No variance Assist 20 small firms to address skills needs 8 small firms awarded discretionary funding -12 small firms

18. Performance: 2011/12 Indicator 4.6 – Supporting cooperatives, small firms and worker/community training initiatives Target 2011/12PerformanceVariance Establish regional liaison committees to discuss the skills needs of worker / community based organisations to determine skills needs Discussions were held with sub-sector groupings to determine skills needs. The groupings included representatives from unions and community based organisations. No regional liaison committees established Fund project proposals received from unions and community based organisations Awarded discretionary funding to a number of projects initiated by these organisations No variance Assist organisations to submit proposals to NSF No progressThe matter to be addressed in the 2012/13 financial year

19. Performance: 2011/12 Indicator 4.6 – Supporting cooperatives, small firms and worker/community training initiatives Target 2011/12PerformanceVariance Establish regional liaison committees to discuss the skills needs of worker / community based organisations to determine skills needs Discussions were held with sub-sector groupings to determine skills needs. The groupings included representatives from unions and community based organisations. No regional liaison committees established Fund project proposals received from unions and community based organisations Awarded discretionary funding to a number of projects initiated by these organisations No variance Assist organisations to submit proposals to NSF No progressThe matter to be addressed in the 2012/13 financial year

20. Performance: 2011/12 Indicator 4.8 – Building Career and Vocational Guidance Target 2011/12PerformanceVariance Develop career information package AchievedNo variance Participate in 3 career exhibitions Participated in 7 career exhibitions 4 career exhibitions

21. Performance: 2011/12 Sector Priorities Target 2011/12PerformanceVariance Sector projects to conduct skills development initiatives aimed at assisting people with disabilities Allocated R2,8 million to organisations to conduct special projects targeting disabled people No variance Sector projects to conduct skills development programmes in rural areas Allocated R5,9 million to organisations to conduct special projects in rural areas No variance Sector projects to address key skills development needs in the FP&M sector Allocated R5,2 million to organisations to conduct special projects to address key skills needs. No variance

22. Challenges Integration of business cultures and processes – Management of historical projects – Audit finding relating to management of apprenticeship agreements Under-performance on certain targets – Under-spending on discretionary projects Inadequate Internal Audit Function – Risk assessment not conducted

23. Challenges Sector Skills Planning and Research constraints – Lack of comprehensive baseline information – Lack of industrial strategies (in certain sub- sectors) Sub-sectoral priorities vs FP&M sector priorities

24. Questions Thank you for your interest!