merSETA Strategic Plan Derrick Peo General Manager : Innovation, Research & Development

Structure of Presentation Background Skills Development Priorities Challenges in Current Environment Cross-cutting Strategies Programmes and Sub-Programmes Programme 1: Administration Programme 2: Skills Planning Programme 3: Occupationally Directed Programmes Programme 4: FETCs Programme 5: Language and Numeracy Skills Programme 6: Workplace Skills Development Programme 7: Co-operatives, Small enterprises, Worker initiated, NGO and Community training initiatives Programme 8: Career Development Targets

1. Background

2. Sector Skills Development Priorities The merSETA has five skills development priorities: Priority 1 is to develop a sector labour market intelligence (LMI) system. Priority 2 is the continued and even increased focus on artisan development. Priority 3 is to establish and facilitate strategic partnerships that will impact on both the funding available for skills development and the improved quality of skills development. Priority 4 is to increase the flow of newly skilled workers into the sector, through increasing the skills available to the sector to meet its short-term needs and improving the base level of learning. Priority 5 is to develop the skills of the existing workforce as this is of primary importance for the development of the sector and for achieving outcomes that are consistent with decent work, equity, and sector economic growth and employment.

3. Challenges in the Current Environment 3.1. Aligning industry needs with national development imperatives, policy directives, and DHET priorities 3.2. Financial and Budgetary Constraints 3.3. Improving the efficiency and effectiveness of skills development in the sector 3.4. Co-funding training, with employers, provinces, the UIF and various state departments, including ‘cluster’ SETAs 3.5. Improving employer buy-in through engaging industry associations on the challenges facing the industry

4. Cross-cutting Strategies 4.1. Rural Development 4.2. Sustainable Green Skills Development 4.3. People with Disabilities 4.4. Further Education and Training Colleges (FETCs) 4.5. Recognition of Prior Learning (RPL)

Programme 1: Administration (Effective & Efficient Governance) Nominated Governing Board/Audit/Remcom structure in place Management structure in place – no vacant key positions Unqualified external audit reports Full compliance within the legislative framework in which merSETA operates – PFMA/SDL/SDLA/National Treasury/AG/ SAQA Good internal audit reports – a tool to strengthen management Documented and implemented systems in place Clearly defined business processes Effective and documented monitoring and evaluation policies and processes Internal and External Customer Satisfaction Survey conducted Credible data and reliable MIS system Accountability and transparency in all facets of business

Programme 2: Skills Planning Established research office Capacitated merSETA internal/ external stakeholders Grants aligned to the SSP Sub-sector / chamber-focused and managed research agenda Strategic partnerships implemented for skills planning Provincial / regional Sector Skills Plans Chair in Manufacturing Skills Development

Programme 3: Increased access to occupationally directed programmes Skills development initiatives Priority intermediate skills identified specific to merSETA sub-sectors Strategy to expand artisan development List of identified high level national scarce skills Established research, development and innovation capacity Supporting Strategic Infrastructure Programmes (SIPs)

Programme 4: Promoting the responsiveness of FETCs to the intermediate skills needs of the sector FETC participation in Development Quality Partnership (DQP) processes Harnessing the potential of FETCs to strengthen the artisan development pipeline (dual system apprenticeships and post-NCV graduates) FET Curriculum Review Private / public provider partnerships Seta presence on FET college campuses Mechanisms established to address gaps between industry and academic provision Articulation across VET system E-learning Work placement for FETC graduates Cross-cutting priorities

Established partnerships with schools and relevant institutions Programme 5: Addressing the low level of youth and adult language and numeracy skills to enable additional training STEM (Science Technology, Engineering and Mathematics) programme aligned to Career development Established partnerships with schools and relevant institutions Increased entrance to tertiary education in merSETA sector Increased entrance to additional training programmes Foundational Learning Competence (FLC)

Programme 6:Promoting workplace skills development within the sector Grants allocation aligned to equity targets and workplace productivity Instruments to measure return on training investment (i.t.o Efficiency, Effectiveness and Equity) Sector projects supported to address skills gaps and imbalances towards improved productivity Cross-sectoral partnership projects supported to address skills gaps towards Local Economic Development (LED).

Programme 7: Encouraging and supporting Cooperatives, Small Enterprises, Worker-initiated, NGO and Community Training Initiatives Participation of SMEs in relevant learning programmes, especially artisan development SME Skills Audit Technology-based entrepreneurship support Established partnerships, programmes, grants and incentives Sustainable Rural and Township Development Strategy (Training for Economic Empowerment) Established sector NGOs, CBOs and Cooperatives Mechanisms and models for skills development support (grant and project-based) Meaningful linkages between Coops, NGOs, CBOs and business

Programme 8: Career Development Integrated career and learner development strategy Alternative mechanisms including national and international partnerships to enable career-pathing and personal development Established learning pathways to support career development Enhanced awareness of workplace and post-school institutions for career development opportunities of workers Enhanced profile of merSETA careers nationally Support initiatives of complementary entities including government, NGOs and institutions through regional partnerships

7. Targets Programme Performance Indicators, linked to annual targets, are negotiated with the Department of Higher Education and Training. This forms the basis of the SLA with DHET Based on the promulgation of the new grant regulations, as well as the DHET’s own scorecard, this year significant increases have been negotiated on certain categories Achievement of these sector targets depends on fully leveraging the PIVOTAL programmes, reducing budgets on non-essential projects, and negotiating partnership funding The targets are broken down per region See targets matrix (handout)

2013/14 Targets Unemployed learnerships entered 4500 (5400) Unemployed learnerships Certified 1600 (1920) Unemployed Interns entered 221 (265) Unemployed Internships certified 110 (132) Employed apprentices entered 2400 (2880) Employed apprentices certified 1200 (1440) Unemployed artisans entered 3600 (4320) Unemployed artisans certified 2000 (2400) Work Experience (P1 & P2) 662 (794) Workplace placement (FETC graduates) 1350 (1620) Employed skills programmes entered 3400 (4080) Employed skills programmes completed 2380 (2856) Employed learnerships entered 4500 (5400) Employed learnerships certified 2200 (2640) Co-ops 7 (9), Small Business Support 2315 (2778), NGO/CBO 11 (13) Career Guidance 1720 (2064)

Thank You Derrick Peo General Manager : IRD