1. PRESENTATION TO PORTFOLIO COMMITTEE ON LABOUR Dr. K.P. Govender Chief Executive Officer 14 October 2005 “BRIDGING THE SKILLS GAP” Ref: 11/HWSETA/01/04/05

2. 2 Introduction  The HWSETA is a national statutory body.  Established in 2000 under the provision of the Skills Development Act (1998).  Classified as a Schedule 3A public entity of the Public Finance Management Act (2000). Ref: 11/HWSETA/01/04/05

3. 3 Introduction cont. Governance framework of the HWSETA:  Clarified in the Constitution of the HWSETA.  The Minister of Labour via the Department of Labour is the Executive Authority.  The Board is accountable to the Minister of Labour. Ref: 11/HWSETA/01/04/05

4. 4 Introduction cont. The HWSETA Board appoints:  The HWSETA Chief Executive Officer (CEO) to serve as the Accounting Officer.  The CEO is accountable to the Board. Ref: 11/HWSETA/01/04/05

5. 5 Introduction cont. Governance Principles:  The King Report (I and II) on good governance.  In addition other key framing and guiding documents such as legislation and regulations, policies, code of good conduct, and best practices approaches.  Members of the HWSETA Board are both individually and severally liable for all matters pertaining to the HWSETA. Ref: 11/HWSETA/01/04/05

6. 6 Vision The creation of a skilled workforce to meet the health and social development needs of all people in South Africa. Ref: 11/HWSETA/01/04/05

7. 7 Mission The Health and Welfare Sector Education and Training Authority endeavours to create and implement an integrated approach for the development and provision of an appropriate skilled workforce that will be empowered to render quality health and social development services that are comparable to world-class standards. Ref: 11/HWSETA/01/04/05

8. 8 Philosophy The HWSETA espouses the philosophy of a better life for all through people development. Ref: 11/HWSETA/01/04/05

9. 9 Values  To be transparent, fair and consistent in our conduct.  To conduct ourselves with honesty, integrity and trust.  To be courteous and caring to others.  To honour deadlines.  To commit ourselves to the principle of equity.  To work within a framework of co-operative governance.  To strive for continuous service excellence.  To promote people-centered development.  To uphold the values as espoused in the Skills Development Act and HWSETA Constitution. Ref: 11/HWSETA/01/04/05

10. 10 Sector Profile Department of Labour Health and Welfare Sector Education and Training Authority Social Development Health PrivatePublic Private Training Providers Learners Training Providers Employers Ref: 11/HWSETA/01/04/05

11. 11 Sector Profile cont.  Primary data related to the sector profile of the health and welfare sector remains undefined.  The health and welfare sector falls under the Standard Industrial Code (SIC) category 93.  Public and private health and social development sectors.  Levy-exempt sector: NPOs, community-based organisations (CBOs) and faith-based organisations (FBOs) in the health and social development sector.  SMME private health and social development and social services sectors.  Manufacturers of medical and surgical equipment and appliances.  Veterinary sectors.  Traditional healing.  Research and development.

12. 12 Sector Profile cont.  The health and welfare sector remains the second highest employment in the industry – providing employment for approx. 3 million people.  Number of employers by number of size:  No. of small business in the sector is:3900  No. of employers between 50 – 149:185  No of employers over 150:87

13. 13 Scarce and Critical Skills (work in progress)  Welfare Support Workers & Social Welfare  Probationary Officers.  Social Security.  Child and Youth Worker.  Social Worker.  Social Auxiliary Worker.  Community Worker.  Social Policy Studies.  Early Childhood Development.

14. 14 Scarce and Critical Skills cont.  Health Workers  Disability Service Officer.  Paramedics / Ambulance  Pharmaceuticals:  Pharmacists Assistant (Basic and Post Basic)  Optical Laboratory Assistant.  Health Promotion Officer.

15. 15 Scarce and Critical Skills cont.  Radiography:  Diagnostic.  Ultrasound.  Nuclear Sound.  Physiotherapist Assistant.  Speech Therapist Assistant.  Medical Practitioners.  Pathologists.  Dentistry:  Dentists.  Oral Hygienists.  Dental Assistants.  Orthodontist.

16. 16 Scarce and Critical Skills cont.  Nursing  Auxiliary.  Enrolled.  Bridging.  Primary Health Care.  Nursing Specialistion e.g. ICU Theatre.  Midwifery.  Medical Technologist.  Phlebotomy Technician.  Medical Laboratory Technicians.  Veterinary Nurse.  Clinical Engineers.  Clinical Technicians.  Laboratory Assistant.

17. 17 Scarce and Critical Skills cont.  Project Management.  Financial Management.  Management  Computer Skills (Basic & Intermediate)  Human Resource Management.  Customer Care  HIV /Aids Awareness.  Entrepreneurial Skills.  Fund Raising.  Researchers.  Life Skills.  ABET.

18. 18 HR / SUPPORT SERVICES DIVISION ETQA DIVISION SKILLS DEVELOPMENT DIVISION HWSETA Board EXCO Standing Committees Board Administration Office Board Administrator Ms E. Woodward Committee Secretary Ms P Donald Chief Executive Officer Dr KP Govender Personal Assistant Ms M Annandale Administrator to CEO’s Office Ms A Rammutla Sdp Executive Manager Ms I Masilela Secretary Ms R Takoorpersadh Sub Division Health Sector Sub Division Social Development Sector WSP/SDP Manager Ms H Forbes Manager Learnership Mr V Nkalitshana Skills Development Technical Advisors Ms M Singh Mr S Zulu Mr Mngomo SDP Administrator Ms D Mokheseng Ms L Gaba SDP Administrator Mr N Motsa Ms D Brown Ms M Lekhotla Ms P Greaver WSP/SDP Manager 1x Vacant (On Hold) SDP Administrator Manager Learnership Mr P Samuels SDP Administrator Mr E Palmer Ms V Mpumza Skills Development Technical Advisors Ms N Yako Ms N Bessit 1x (On Hold FINANCE DIVISION Chief Financial Officer Mr K Keys Secretary Ms L Jooste Financial Accountant Ms P Dlamini Grant Disbursement Administration Officer Ms R van Rooyen Financial Administrator Mr F Rikhotso IT Co-ordinator Vacant Mr M Cross Procurement Officer Ms B Mmcube Payroll Administrator Ms G Hlungwane ETQA Executive Manager Mr B Zulu Secretary Ms M van der Merwe Sub Division: Provider Accreditation Sub Division Learner Achievement Sub Division: Capacity Building Manager Provider Accreditation Ms B Rantloane Manager Learner Achievement Mr A Roman Manager Capacity Building and Quality Promotion Ms C Gopal Provider Accreditation And Audit Officer Ms N Zondi ETQA Administrator Ms I Mpofu Learners Achievement Officer Ms A Maki ETQA Administrator Ms N Mdladla Capacity Building and Quality Promotion Officer Mr K Muthavhine ETQA Administrator Mr R Mohamed Manager HR & Support Services Ms S Pochee Secretary Ms C Bezuidenhout Sub Division: Human Resources Sub Division: Support Services Sub Division: PR / Marketing HR Officer Mr J Pieterse SS Officer Ms C Bench Registry Administrator Mr L Mda Receptionist Ms N Matanjana Driver Vacant Public Relations Officer Ms S Pressly Marketing Officer Vacant HR Administrator Ms A Treurnicht Ref: 11/HWSETA/01/04/05

19. 19 HWSETA Employment Equity Staff profile per occupational category JOB TITLE AfricanColouredIndianWhiteTotal MFDMFDMFDMFDMFD CEO 11 Executive Managers 12122 Managers 11111133 SDTA SDTA 211123 IT Co-ordinator 11 Accountant 11 Officers 1401226 Secretaries 2136 Board Administrator 11 Administrators 3611310592 Payroll Administrator 11 Receptionist 11 Driver 11 Total917127032028017332 Ref: 11/HWSETA/01/04/05

20. 20 HWSETA Employment Equity AfricanColouredIndianWhite % of Persons with Disability Female17%4.2%6.4%4.2%2.12% Male29.8%12.8%6.4%17%- 48.9%17%12.8%21.3%2.12% Equity breakdown within the HWSETA

21. 21 Equity breakdown of the HWSETA Board AfricanColouredIndianWhite % of Persons with Disability Female20.8%8.3%0%20.8%4.1% Male25%0%4.1%20.8%0% 45.8%8.3%4.1%41.6%4.1%

22. 22 NSDS 2001 – 2005 Achievements  Indicator 1.1 – By March 2005, 70% of workers have at least a Level 1 qualification on the NQF.  No. of workers in the sector.322,358  No. of workers at NQF 1 in the sector.302,358  Total no. of workers to be at NQF 1 by March 2005.225,651  No. of workers in the sector at NQF 1 by 31 March 2005.409,486  Target achieved.181% Ref: 11/HWSETA/01/04/05

23. 23 NSDS 2001 – 2005 Achievements cont.  Indicator 1.2 – By March 2005, a minimum of 15% of workers to have embarked on a structured learning programme (no. of interventions), of whom at least 50% have completed their programme satisfactorily.  No. of workers in the sector.322,358  No. of workers to embark on structured learning annually.48,354  No. of workers participated on structured learning in the sector by 31 March 2005.367,559  % of target achieved.152% Ref: 11/HWSETA/01/04/05

24. 24 NSDS 2001 – 2005 Achievements cont.  Indicator 1.3 – By March 2005, an average of 20 enterprises per sector, (to include large, medium and small enterprises), and at least five national government departments, to be committed to, or have achieved, an agreed national standard for enterprise- based people development.  Total no. of enterprises agreed to achieve the national standard.20  No. of enterprises committed / recognised to national standard by 31 March 2005.37  % of target achieved.185% Ref: 11/HWSETA/01/04/05

25. 25 NSDS 2001 – 2005 Achievements cont.  Indicator 2.1 – By March 2005, at least 75% of enterprises with more than 150 workers are receiving skills development grants and the contributions towards productivity and employee benefits are measures.  No. of enterprises paying levy.87  No. of enterprises paying levy receiving WSP grants.73  % of target achieved.84%  No. of enterprises paying levy receiving ATR grants.40  % of target achieved.46% Ref: 11/HWSETA/01/04/05

26. 26 NSDS 2001 – 2005 Achievements cont.  Indicator 2.2 – By March 2005, at least 40% of enterprises employing between 50 and 150 workers are receiving skills development grants and the contribution towards productivity and employer and employee benefits are measured.  No. of enterprises paying levy.185  No. of enterprises paying levy receiving WSP grants.66  % of target achieved.36%  No. of enterprises paying levy receiving ATR grants.40  % of target achieved.22% Ref: 11/HWSETA/01/04/05

27. 27 NSDS 2001 – 2005 Achievements cont.  Indicator 2.3 – By March 2005, learnerships are available to workers in every sector.  No. of learnerships to be registered.16  No. of learnerships registered.20  % of target achieved.125% Ref: 11/HWSETA/01/04/05

28. 28 NSDS 2001 – 2005 Achievements cont.  Indicator 2.4 – By March 2005, all government departments assess and report on budgeted expenditure for skills development relevant to Public Service Sector and Departmental priorities.  No. of Government Departments have submitted WSPs.5  No. of Government Departments that have submitted WSPs. 15  % of target achieved.300%

29. 29 NSDS 2001 – 2005 Achievements cont.  Indicator 3.1 – By March 2005, 20% of new or existing registered small business to be supported in skills development initiatives and the impact of such measured.  No. of small business in the sector.3,900  No. of small businesses to receive WSP grants and support.780  No. of small businesses receiving WSP grants and support.2,759  % of target achieved.354% Ref: 11/HWSETA/01/04/05

30. 30 NSDS 2001 – 2005 Achievements cont.  Indicator 5.1 – By March 2005, a minimum of 80,000 (unemployed) people under the age of 30 (amended to 35 in GDS) have entered learnerships.  Sector baseline.322,358  Total no. of 18(2) learners to be registered.3,100  Total no. of 18(2) learners registered.7,988  % of target achieved.258% Ref: 11/HWSETA/01/04/05

31. 31 Annual Financials & Audit Results 2004 - 2005  SDL Income R 133,633m  Total Investment Income R 11,134m  Total revenue R 145,410m  Total expenses R 91,365m  Expenses as percent of SDL 62,8%  Net surplus R 54,045m  Total Cash & Cash equivalents R 224,142m Ref: 11/HWSETA/01/04/05

32. 32 Annual Financials & Audit Results  As evidenced in the Annual Report the report of the Auditor-General is unqualified and contains no matters of emphasis nor significant matters. Ref: 11/HWSETA/01/04/05

33. 33 Committed Funds and Projects cont.  Of the balance of R143,941m available in the Discretionary Reserve at the end of March 2005, R128,676m has been approved and allocated for future projects and skills priorities as set out below:  LearnershipsR 98,997m  Sector Skills PrioritiesR 13,939m  Standards Generating BodiesR 740,000  BursariesR 15,000m  TOTALR128,676m Ref: 11/HWSETA/01/04/05

34. 34 Key Challenges for 2005 - 2010  Legal challenges need to be reduced.  Spread of the discretionary funding allocation and to ensure that this is distributed equitably within reason.  Ensure that there is a balance and considered approach in funding a diverse group of sectoral stakeholders.  Design a track record of graduates on learnership programmes through a formal evaluation process to find out the extent to which they have become employed or self-employed.  Expanding the skills development agenda for the sector caught in the “second-economy” and to focus on how the HWSETA can make further contributions towards poverty alleviation and socio-economic improvement through the skills development agenda. Ref: 11/HWSETA/01/04/05

35. 35 Key Challenges for 2005 – 2010 cont.  Implementation of the new National Skills Development Strategy especially capacity and financial constraints.  Implementation of the Quality Management System for the HWSETA.  New legislation required that employers who have an annual payroll of less that R500,000, no longer have to make Skills Development Levy Contributions. However, these employers must still be encouraging to participate in Skills Development and must be accommodated from a reduced financial base.  Participation by stakeholders in the Northern Cape, North West, Mpumalanga and Free State in education and training activities still poses a big challenge.  The perceived complexity and inaccessibility of the provider accreditation criteria and process. Ref: 11/HWSETA/01/04/05

36. 36 Key Challenges for 2005 – 2010 cont.  Community based organisations whose involvement is motivated mainly by the social development challenges arising from the communities they serve, which makes it difficult for them to meet most of the accreditation requirements.  Monitoring of HWSETA constituent providers’ education and training activities poses an enormous challenge. This led to the need to outsource this function as an interim function. Ref: 11/HWSETA/01/04/05