1. FOODBEV SETA Food and Beverages Manufacturing
Parliamentary Labour Portfolio Committee
3rd November 2009
Ravin Deonarain
CEO

2. Introduction and Appreciation
Thanks and Appreciation:
Hon Minister of Labour
Hon Chairperson of Labour Portfolio Committee
Hon Committee Members
Representatives of FoodBev Seta
Council Member: Mr Hennie Korff
Council Member Mr Boaz Mashele
Corporate Services Manager: Ms Liezl Gerryts
CFO: Mr Raj Rajcoomar
Skills Development Projects Manager: Mr Khotso N Potele
CEO: Mr Ravin Deonarain
Company Name

3. Presentation Outline FoodBev Sector Highlights and Challenges
Funds Management
NSDS Performance
Customer Satisfaction
Portfolio Committee Specific Concerns
Consultants
Training Layoff Provision
Employment Equity
Ravin Deonarain

4. FoodBev Sector Economic Characteristics
Diverse sector
Price sensitive products
High production volumes – costs driven
Capital intensive and technology driven
Intense brand competitiveness
Dominance - large companies and multinationals
Large number small food manufacturers (85%)
Mergers and acquisitions (brands)

5. FoodBev Sector Companies and Products:
SA Breweries, Kellogg's, Nestle, Frito-Lay Simba, ABI, Coke Cola, Tiger Brands, Unilever Foods, Clover, Oceana Fishing, Enterprize Meats, Nabisco, McCain's Foods, Beacon, Cadbury’s
Bokomo
Contribution to GDP : R83.2 b for Food
R30 b for Beverages
Total employment : (known)
Company Name

6. Labour Market
1994: Macro Economic Stabilisation and Trade Liberalisation
Growth in demand for skilled labour
Job shedding of unskilled and semi skilled
Production - 17,16 % of manufacturing sector output
Employment - 15,63% of manufacturing sector
Wages - 13,74% of manufacturing sector
Employment – 2 % of total economy
(DTI, 2007)
Ravin Deonarain

7. Funds Management Trend (Rm)
Ravin Deonarain

8. Success Indicator 2008/9 Target PERF %age 80% LARGE 128 140 109%
2.1 80% OF LARGE FIRMS’ AND 60% OF MEDIUM FIRMS’ EMPLOYMENT EQUITY TARGETS SUPPORTED BY SKILLS DEVELOPMENT. IMPACT ON OVERALL EQUITY PROFILE OF FIRMS AND SECTORS MEASURED
Success Indicator
2008/9
Target
PERF
%age
80% LARGE
128
140
109%
60% MEDIUM
148
106%
Ravin Deonarain

9. 2.2 SKILLS DEVELOPMENT IN AT LEAST 40% OF SMALL LEVY-PAYING FIRMS SUPPORTED AND IMPACT MEASURED
Success Indicator
2008/9 Target
PERF
%age
40% SMALL
330
450
136%
Ravin Deonarain

10. Success Indicator 2008/9 Target PERF %age BEE Co’s supported 24 36
2.5 ANNUALLY INCREASING NUMBER OF SMALL BEE FIRMS AND BEE CO-OPERATIVES SUPPORTED BY SKILLS DEVELOPMENT. SURVEY PROGRESS AND MEASURE IMPACT.
Success Indicator
2008/9
Target
PERF
%age
BEE Co’s supported 24 36
150%
Ravin Deonarain

11. 2.7 700 000 workers have achieved ABET Level 4
Success Indicator
ABET Level 1-4
2008/9
Target
PERF
%age
Entered
800
1806
301%
Completed
600
1448
359%
Ravin Deonarain

12. 2.8. 125 000 WORKERS ASSISTED TO ENTER AND AT LEAST 50% SUCCESSFULLY COMPLETE APPROVED PROGRAMMES
Success Indicator
Learning Programmes
2008/9
Target
PERF
%age
Entered
800
2324
291%
Completed
500
717
143%
Ravin Deonarain

13. Target Success Indicator Skills Dev Support 2008/9 PERF %age
non-levy paying enterprises, NGOs, CBOs, and community-based co-operatives supported by skills development. Impact of support on sustainability measured with a targeted 75% success rate.
Success Indicator
Skills Dev Support
2008/9
Target
PERF
%age
NGOs, CBOs, Co-ops
Non Levy Paying Companies 40 82
177%
Ravin Deonarain

14. 4.1. 125 000 unemployed people assisted to enter and 50% successfully complete programmes
Success Indicator
Learning Programmes
2008/9
Target
PERF
%age
Entered
600
1283
214%
Completed (50%)
300
381
127%
Ravin Deonarain

15. To Gain Work Experience 5 7 140%
% of learners in critical skills programmes covered by sector agreements and Nat Priorities from local FET and HET institutions assisted to gain work experience. 70% find placement in employment or self-employment.
Success Indicator
2008/9
Target
PERF
%age
To Gain Work Experience 5 7
140%
Find placement after completion 70 67
96%
Ravin Deonarain

16. 70% operational after 12 months 90 111 123%
,000 young people trained and mentored to form sustainable new ventures and at least 70% of new ventures in operation
Success Indicator
New Venture Creation
2008/9
Target
PERF
%age
Entered 5 12
240%
70% operational after 12 months 90
111
123%
Ravin Deonarain

17. ISOE’s recognised/supported 1 2 200%
5.1. By March 2010 each SETA recognises and supports at least five Institutes of Sectoral or Occupational Excellence (ISOE) within public and private institutions and through Public Private Partnerships (PPPs)
Success Indicator
2008/9
Target
PERF
%age
ISOE’s recognised/supported 1 2
200%
Ravin Deonarain

18. New Venture Creation Provider 4 5 125%
5.2. Each province has at least two provider institutions accredited to manage the delivery of a new venture creation qualification. 70% of new ventures still operating after 12 months
Success Indicator
2008/9
Target
PERF
%age
New Venture Creation Provider 4 5
125%
Ravin Deonarain

19. SAQA Audit of FoodBev Seta 1 100%
5.3. Measurable improvements in the quality of the services delivered by skills development institutions
Success Indicator
2005/6
Target
PERF
%age
SAQA Audit of FoodBev Seta 1
100%
Ravin Deonarain

20. Beneficiaries Employment Equity
Company Name

21. NSDS 2 2005-2009 Total Learning Programmes: 13 890 Learnerships
Completion Rate % (average)
Drop out %
In Progress %
Issues
L/ship completion rate slow – 15 months
Withhold/recover grant funds
Investigation report commissioned

22. NSDS 2 2005-2009 Skills Programmes Internships/Work Experience
Completion rate – 83%
Drop out rate %
Internships/Work Experience
Employment Rate %
Apprentices in training

23. FoodBev Seta SLA Performance
2003/4
2004/5
2005/6
2006/7
2007/8
2008/9
DoL
Rating
Excellent
5/5
Exceeds
Targets
4/5
NSDS 1
NSDS 2
Rating Includes:
NSDS/SLA target performance for sector
Financial Performance

24. Customer Survey Results
Ravin Deonarain 24

25. FoodBev Staff Employment Equity
Company Name

26. Consultants Very specialized skills Non recurring and infrequent
Specific tasks or projects
Costs and resources
Area
Number
Costs
Scarce Skills Research 1 R
Skills Forecasting Tool Development R
Customer Satisfaction Survey R
Assessors and Moderators 12 R

27. Training Layoff Communication in sector - all media Briefing
Organised Labour Forum
Employer Forum
Council Decision
300 skills programmes – R 1.8 m
30 new venture creation – R 0.75 m

28. Thank you
Questions