Services SETA Presentation to The Portfolio Committee on Labour 23 August 2005 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

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 1 st 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  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

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

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 learners – enter labour market in 2009  Successful implementation of DWSDP having met all targets  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  learners completed structured learning – 4856 high level occupations, intermediate level occupations and at entry level occupational levels

Opportunities facing SSETA in implementing NSDS  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  Strengthen management and governance structures through CPD  Pilot new learnership enrolment with DoL provincial offices with involvement of public DOE providers  Create over 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  Providing skills development support and initiatives to approximately 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

Annexures to presentation

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

Annexure 3. Projected Levy Paying companies by company size and Province

Thank You & Question & Answer session