CHIETA STRATEGIC PLAN 2014/15 to 2018/19 AND …...2014/09/19 · 1. INTRODUCTION South Africa’s...

CHIETA STRATEGIC PLAN 2014/15 to 2018/19 AND APP 2015/16

(30 September 2014: Second Draft)

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CHEMICAL INDUSTRIES EDUCATION AND TRAINING

AUTHORITY (CHIETA)

Strategic Plan for the Fiscal years

2014/15 to 2018/19 and Annual Performance Plan 2015/16

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1. INTRODUCTION

South Africa’s new National Skills Development Strategy III (NSDS III) became operational on 1 April 2011. The Chemical Industries Education and Training Authority (CHIETA) embraced this visionary strategy with an expanded focus on alleviating poverty through job creation, in support of increasing productivity through focused skills development within the chemical industries sector. For the CHIETA the key focus areas now also include artisan training and forming sustainable and meaningful partnerships with public and private training providers across the further and higher education bands, working effectively with employers that can provide access to workplaces and labour unions that are capacitated to understand the role of skills development, to effectively confront the country’s enormous skills needs in support of the promotion of productivity, competitiveness, employment and self-employment. To this end, the CHIETA Strategic Plan has been conceptualized within the NSDS III framework and packaged in line with the NSDS III eight (8) identified goals, by outcome and outputs and the critical and scarce skills need articulated within the CHIETA Sector Skills Plan. The CHIETA Strategic Plan will be used as the basis for our Organisational performance monitoring and evaluation interventions and external organisational performance audit by the Auditor- General of South Africa (AGSA). In terms of the CHIETA funding protocol the Strategic Plan and Performance areas are strongly informed by the promulgated SETA grant regulations regarding monies received by a SETA and related matters signed by the Minister on 15 November 2012. (Government Notice R990 of 3 December 2012). In addition to NSDS III and the CHIETA Sector Skills Plan which forms the bedrock of this Strategic Plan Macro Government priorities and social partner accords such as the National Development Plan HRDS-SA, New Growth Path, Skills Accord, Youth Accord, Rural Development Strategy, Environmental Strategy, IPAP 2, Government’s Medium Term Strategic Framework and white paper for post-school education and training was also taken into account. The CHIETA Strategic Plan also includes delivery areas forthcoming from the performance agreement between the Minister of Higher Education and Training and the President of South Africa. This Plan also illustrates that we have designed interventions to partner with higher education institutions to support those areas of research that will contribute to the needs of the CHIETA and our stakeholders. The CHIETA recognizes that despite the significant amount of work done by the CHIETA during NSDS I and NSDS II, the Chemical Industries Sector and the South African economy as a whole still remain constrained by a shortage of appropriate skills. The new Strategy seeks to improve effectiveness and efficiency, while encouraging the linking of skills development to career paths, career development and promoting sustainable employment and in-work progression. The Strategic Plan promotes partnerships between employers, public education institutions, FET Colleges, universities and universities of technology, private training providers to ensure cross-sectoral collaboration so as to open up access to workplaces and contribute to gainful employment. This Plan has also taken into account important transformational priorities of race, class, gender, geographic considerations, age related needs, disabilities and the HIV/AIDS pandemic and includes planned interventions, supported through well thought-out special projects that will be funded through discretionary grant allocations. Within this context the CHIETA will facilitate the delivery of specific skills interventions in the Chemical Industries Sector as was identified by our stakeholders and articulated in our Sector Skills Plan. We as a CHIETA is confident that this strategic plan will make a substantial impact and difference to the skills needs of the Chemical Sector and the broader socio-economic imperatives of South Africa.

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Official sign-off

It is hereby certified that this Strategic Plan:

Was developed by the management of the Chemical Education Training Authority (CHIETA) under the guidance of CHIETA Accounting Authority taking into account all the relevant policies, legislation and other mandates for which the CHIETA is responsible. This document accurately reflects the strategic outcome oriented goals and objectives which the CHIETA will endeavour to achieve over the period 2014/15 to 2018/19 and the Annual Performance Plan (APP) for 2015/16.

Mosehla Mampho Signature: _____________________________ Chairperson: Governance & Strategy Committee (On behalf of and as mandated by Governing Board)

Approved

Dr Blade Nzimande Signature: ___________________________

Minister of Higher Education and Training

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Table of Contents

PART A:

Strategic overview 1 Vision ........................................................................................................................................................................................ 6 2 Mission ...................................................................................................................................................................................... 6 3 Values ........................................................................................................................................................................................ 6 4 Conceptualisation of CHIETA Strategic Plan .............................................................................................................................. 6 5. Policy Context for Skills Planning in the Chemical Sector .......................................................................................................... 7 5.1 Government interventions aimed at skills development .......................................................................................................... 7 5.2 Legislative environment .......................................................................................................................................................... 17 5.3 CHIETA support and Contribution towards the Minister of HET’s Outcomes ........................................................................ 1 8 6. Situational Analysis of Chemical Sector ................................................................................................................................... 20 7. Strategic Outcome Orientated goals ....................................................................................................................................... 24 7.1 SSP Strategic Plan Linkage Table ...................................................................................................................................... 28A + B 8. Chemical Sector scarce and critical skills ................................................................................................................................. 28 9. Transformational Focus and contribution to NSDS III .............................................................................................................. 30 10. Rural Development focus and support to rural learners .......................................................................................................... 32 11. Green Skills and occupations ................................................................................................................................................... 32 12. Public FET and HET collaboration ............................................................................................................................................ 32 13. Artisan related training and recognition of prior learning ....................................................................................................... 38 14. Government macro strategic and policy framework linkage ................................................................................................... 40 14.1 CHIETA Contribution to presidential outcomes ....................................................................................................................... 40 14.2 CHIETAs linkage of strategic objectives to Macro Strategic priorities of Government ............................................................ 41 15. Partnerships with Government ................................................................................................................................................ 45 16. Organisational and Performance Environment ........................................................................................................................ 46 17. Resource Considerations ......................................................................................................................................................... 46 17.1 People management ................................................................................................................................................................ 46 17.2 Staff Turnover .......................................................................................................................................................................... 46 17.3 Equity ....................................................................................................................................................................................... 47 17.4 Training and Development ...................................................................................................................................................... 47 17.5 Recruitment ............................................................................................................................................................................. 47 17.6 Employee Wellness .................................................................................................................................................................. 47 17.7 Financial Resource ................................................................................................................................................................... 47 17.8 Quality management system ................................................................................................................................................... 48 17.9 Performance monitoring and evaluation ................................................................................................................................. 48 18. IT Governance .......................................................................................................................................................................... 48 19. Risk Management .................................................................................................................................................................... 48

PART B: Annexure A: CHIETA ANNUAL PERFORMANCE PLAN (APP) 2015/16 AND CHIETA MTEF BUDGET ............................ 51 Annexure B: CHIETA AND DHET SERVICE LEVEL AGREEMENT 2015/16 .................................................................... 89 Annexure C: MATERIALAITY AND SIGNIFICANCE FRAMEWORK .............................................................................. 95 Annexure D: TECHNICAL INDICATOR DESCRIPTIONS ............................................................................................. 100 Annexure E: ORGANISATIONAL ALIGNMENT FRAMEWORK .................................................................................. 111

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STRATEGIC OVERVIEW

1. VISION

World class education and training for the Chemical Industries sector.

2. MISSION

CHIETA contributes to sustainable development through facilitating the provision of skills for the growth of the Chemical sector

3. CHIETA VALUE STATEMENT

The CHIETA values are:

Stakeholder Orientation We seek to meet stakeholder expectations in everything we do Accountability We are committed to CHIETA delivery imperatives Integrity We do the right thing even when we are not watched People We are committed to our employees Performance We achieve our desired results all the time Service Excellence Meet and exceed client expectations in all CHIETA functional areas

4. CONCEPTUALISATION OF CHIETA STRATEGIC PLAN AND KEY STRATEGIC ISSUES

In order to respond to the 8 goals of the NSDS III, the CHIETA has contextualised these Goals, Outcomes and Outputs and located them within our sector specific environment through our CHIETA Sector Skills Plan and aligned our Strategic Plan and the Annual Performance Plan to respond to the Skills Development Priorities of the Chemical Sector and Macro Strategic imperatives and Policy frameworks of National Government. The CHIETA Strategic Plan is structured in the following manner, namely: Vision, mission and value statement to direct integrated organisational behaviour towards performance Legislative and policy context for skills planning and strategic deliverables CHIETA support and contribution towards the Minister of HET’s outcomes Situational analysis of the Chemical Industry Sector Ten (10) CHIETA Strategic programme descriptions inclusive of purpose and strategic objectives Chemical Sector Scarce and Critical Skills and interventions to address this challenge through the respective CHIETA

strategic programmes. Transformational focus and contribution to NSDSIII Rural development focus Public FET collaboration Public HET collaboration Artisan related training and recognition for prior learners (RPL) Chemical sector and CHIETA contribution to Macro Strategic and Policy frameworks from Government. Partnerships Organisational and performance environment Organisational resource considerations Information Technology and IT Governance to ensure integrated system support towards performance Risk management framework Annual Performance Plan (APP) 2015/16 with performance indicators and pre-determined targets Programme based budget and financial resource allocation Service Level agreement with DHET for 2015/16

The key strategic issues for CHIETA are: 4.1 Positioning CHIETA as a sustainable and value-adding business partner to all of its stakeholders 4.2 Moving beyond pure numbers but and demonstrating impact of CHIETA skills development interventions

towards addressing the socio-economic imperatives of South Africa 4.3 Partnerships on a public and / or private basis become a primary delivery arm for skills development

interventions; 4.4 Maintain and continually improve a culture of good governance within CHIETA 4.5 Sustained and continuous improvement of performance and service delivery to CHIETA stakeholders; and

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4.6. Alignment of all CHIETA strategic focal areas towards the delivery on NSDS III and the CHIETA Sector Skills Plan

5. POLICY CONTEXT FOR SKILLS PLANNING IN THE CHEMICAL SECTOR

Skills planning in the SETA environment takes place within the context of government policies and plans to improve the skills base of the country and to uplift and stimulate economic growth. The most important policies relevant to skills planning by the CHIETA are outlined in this section. Skills interventions planned for the period covered by this SSP update will aim to address the skills development needs of the Chemical Sector, and at the same time support the various government policies, plans, strategies, projects and programmes.

The government initiatives are discussed under three headings: Interventions aimed specifically at skills development, those aimed at economic and social development, and lastly those aimed at monitoring and evaluation.

5.1 Government interventions aimed at skills development

The SDA provides an institutional framework to devise and implement national, sector and workplace strategies to develop and improve the South African and Chemical Sector workforce. A core function of SETAs is to develop and implement a SSP within the framework of the National Skills Development Strategy (NSDS III).

The NSDS III falls under the umbrella of the second Human Resources Development Strategy for South Africa (HRDSSA II). In support of the HRDSSA II, SSPs need to reflect a commitment to: addressing priority skills shortages; developing sufficient skills to meet social and economic development demands; improving universal access to quality basic education; developing skills that assist in reducing poverty and unemployment; focusing on skills development among the youth; improving national technological and innovation capacity for enhanced national economic competitiveness; developing skills for improved public sector capacity; and establishing effective and efficient planning capabilities in respect of skills development1.

NSDS III further advances the drive to bring alignment between the supply and demand for labour in the South African labour market. It represents an explicit commitment to encouraging the linking of skills development to career paths, career development and promoting sustainable employment and in-work progression.

NSDS III has the following eight broad goals:

i. Establishing a credible institutional mechanism for skills planning. ii. Increasing access to occupationally directed programmes.

iii. Promoting the growth of a public Further Education and Training (FET) college system that is responsive to skills needs and priorities at sector, local, regional and national levels.

iv. Addressing the low level of youth and adult language and numeracy skills to enable additional learning. v. Encouraging better use of workplace-based skills development.

vi. Encouraging and supporting cooperatives, small enterprises, worker-initiated initiatives, non-government organisations (NGOs) and community training initiatives.

vii. Increasing public sector capacity for improved service delivery and supporting the building of a developmental state. viii. Building career and vocational guidance.

In addressing these issues, NSDS III will be guided by and measured against the following seven developmental and transformation imperatives: race, class, gender, geography, age, disability and the human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS) pandemic.

In order to achieve the skills development imperatives, NSDS III has the following pillars:

• Sector strategies (aligned to government and industry development strategies), programmes and projects developed with and supported by sector stakeholders. The DHET will play a leading role in forging a closer working relationship and collective identification of skills development priorities amongst all the key institutional players in the education and training system.

• Relevant sector-based programmes addressing the needs of unemployed people and first-time entrants to the labour market will be developed and piloted by SETAs, with roll-out being planned, managed and funded, where appropriate, in partnership with the National Skills Fund (NSF). SETA funds will primarily be used to fund the skills development needs of employers and workers in their sector. However, the utilisation of SETA discretionary funds must be guided by the goals of NSDS III.

• Professional, vocational, technical and academic (PIVOTAL) programmes. These are programmes, which provide a full occupationally directed qualification. Such courses will normally begin in a college or university and would

1 Department of Higher Education and Training. (2011). National Skills Development Strategy III.

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include supervised practical learning in a workplace as part of their requirement. The courses, especially for workers, could in some cases start in the workplace and then move to a college or university. The courses would culminate in an occupational qualification. PIVOTAL courses will normally be offered by arrangement between a SETA, an educational institution, an employer and a learner. Fundamental to the successful implementation of PIVOTAL programmes will be a model of cooperation between a SETA, a higher or further education and training institution and an employer. This will help ensure responsive curricula and courses.

• Programmes that contribute towards the revitalisation of vocational education and training, including the competence of lecturers and trainers to provide work-relevant education and training, and promote occupationally directed research and innovation.

• Incentives for training and skills development capacity in the cooperative, NGO and trade union sectors, including community and worker education initiatives, contributing to effective training of youth and adults.

• Partnerships between public and private training providers, between providers and SETAs and between SETAs, addressing cross-sectoral and inter-sectoral needs.

• An increased focus on skills for rural development to support Government’s prioritisation of rural development.

Following the release of the NSDS III in January 2011, numerous important developments have taken place to enhance skills development in the country:

• The White Paper for Post-School Education and Training, released on 15 January 2014 , outlines a vision for the post-school system and proposes measures to improve colleges, Universities, private education provision, disability, open learning, linking education to the workplace and Quality Councils.

• The Quality Council for Trades and Occupations (QCTO) is now established and operational and has published various policies around the development and registration of occupational qualifications, including a policy on Development Quality Partners (DQPs) and Assessment Quality Partners (AQPs), and curriculum development and assessment.

• Various Skills Development Act and Skills Development Levies Act regulations, such as the Grant Regulations, Learning Programme Regulations and Listing of Occupations as Trades, have been revised.

• Work is being done by the Ministerial Task Team on a performance review of SETAs in various areas in order to make SETAs more efficient and effective.

• The Human Resource Development Council of South Africa is undertaking research into various areas related to skills supply in South Africa.

• The launch of the National Skills Development Plan under the auspices of National Planning Commission to align skills planning in South Africa with the New Growth Path.

• The revised Broad-Based Black Economic Empowerment (BBBEE) codes were published for public comment in October 2012. An important change is the increase of the weighting of the skills development element from 15% to 20%.

A regulation of particular importance to the SSP and its implementation, is the Grant Regulations of 03 December 2012. The main purpose of the regulations is to improve the focus, management and effectiveness of SETA grant spending. The regulations are further intended to: • Provide for SETAs, including the CHIETA, to contribute to the cost of the QCTO for occupational qualifications and

programmes registered at National Qualifications Framework (NQF) Levels 1 – 6.

• Improve the quantity and quality of labour market information received by SETAS, including the CHIETA, in the form of workplace skills plans, annual training reports and PIVOTAL training reports, to inform skills planning.

• Promote NQF registered and quality assured PIVOTAL programmes that address priority scarce and critical skills needs identified in the respective sectoral SSPs.

• Create a framework within which public education and training providers are used to a larger extent for the provision of skills development programmes. This refers specifically to public FET colleges, universities of technology and universities.

Under the new grant regulations, the CHIETA is required to:

• Clearly set out in its published plans the Chemical Sector skills needs.

• Limit spending on administration to 10,5% with a maximum of 0,5% allocated to the QCTO to fulfil its function in the roll-out of PIVOTAL programmes.

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• Target funding towards structured workplace learning and experience, as part of partnership programmes between education and training institutions, and credible providers and employers.

• Ensure that at least 80% of the discretionary grants are spent on programmes that address scarce and critical skills needs in the Chemical Sector. The remaining 20% is for other interventions designed to implement the SSP. This is part of the commitment of NSDS III to increase funding for PIVOTAL programmes and to reduce the funding of short courses.

• Develop a Sector Learning Programmes Matrix outlining funded PIVOTAL and non-PIVOTAL programme types aligned to the SSP.

• Allocate a maximum of 20% of the SDL to mandatory grants available to qualifying levy-paying employers. The CHIETA has developed a funding policy for mandatory and discretionary grants which was adopted by the CHIETA Governing Body. This policy has been submitted to the DHET for approval. Furthermore, the CHIETA has addressed the core requirements of the new grant regulations in the SSP, the strategic plan and Annual Performance Plan (APP), for implementation in the next financial year.

Subsequent to the publication of the new grant regulations the DHET has also formulated a policy regarding the funding of artisan training programmes. This follows the publication of a list of 125 occupations that are now viewed as registered trades for which artisan qualifications are required2. The CHIETA funding policy is adapted to conform to the requirements of the DHET policy.

As new developments unfold, the CHIETA is making the necessary adjustments and provides support to member companies in this regard.

The National Skills Accord is one of the first outcomes of social dialogue on the New Growth Path, which is discussed in the next section. This accord was entered into between government, business, labour and civil society, and was signed in July 2011. The accord consists of the following eight commitments:

i. To expand the level of training using existing facilities more fully. ii. To make internship and placement opportunities available within workplaces.

iii. To set guidelines of ratios of trainees: artisans as well as across the technical vocations, in order to improve the level of training.

iv. To improve the funding of training, the use of funds available for training and incentives for companies to train. v. To set annual targets for training in state-owned enterprises.

vi. To improve SETA governance and financial management, as well as stakeholder involvement. vii. To align training to the New Growth Path and improve Sector Skills Plans.

viii. To improve the role and performance of FET Colleges. Not all the commitments have a direct bearing on the skills planning of the sector – i.e. Commitment v. that sets targets for training in state-owned enterprises.

The National Youth Accord, signed in April 2013, represents an agreement of the social partners to work together in addressing youth unemployment and expand the opportunities for greater employment and empowerment of youth in the economy. The accord consists of the following six commitments:

i. Education and Training: Improve education and training opportunities for the gap grouping between school leaving and first employment

ii. Work exposure: Connect young people with employment opportunities through, amongst others, support for job placement schemes and work readiness promotion programmes for young school leavers and provide young people with work experience.

iii. Public sector measures: Increase the number of young people employed in the public sector, through coordinating and scaling up existing programmes under a ‘youth brigade’ programme coordinated with the National Youth Service Programme.

iv. Youth set-aside targets: Youth target set-asides need to be considered in particular industries, particularly new industries where young people can be drawn in large numbers and should be progressively realised.

v. Youth entrepreneurship and youth cooperatives: Youth cooperatives and youth entrepreneurship should be promoted.

vi. Private sector measures: Work with the private sector to expand the intake of young people, with targeted youth support and incentives approved by all constituencies.

2 Government Gazette 35625, 31 August 2012

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In addition to all these strategies and legislative changes, most of the provincial governments have developed provincial skills development strategies. The strategy documents vary in quality and in terms of providing strategic direction to skills development in the respective provinces. Nevertheless, these documents also informed the CHIETA’s skills planning processes where possible.

Government interventions aimed at economic growth and development

The following section presents a high-level summary of the macro policy and legislative environment within which the Chemical Sector operates, and highlights the most important policy imperatives impacting on the sector. The section includes both general and sector-specific interventions.

The Medium Term Strategic Framework (MTSF) for the period 2009 to 2014, was approved by Cabinet on 1 July 2009. “The MTSF, under the theme, 'Together doing more and better', is informed by the 2009 national electoral mandate and outlines the Government's medium-term strategy to meet this mandate. It serves as the foremost frame of reference outlining the Government’s policy posture and programme to improve the conditions of life of South Africans over the next five years. The MTSF identifies the development challenges facing South Africa and defines the priorities over the next five years”3. These priorities are:

i. Speeding up growth and transforming the economy to create decent work and sustainable livelihoods. ii. Massive programme to build economic and social infrastructure.

iii. Comprehensive rural development strategy linked to land and agrarian reform and food security. iv. Strengthen the skills and human resource base. v. Improve the health profile of all South Africans.

vi. Intensify the fight against crime and corruption. vii. Build cohesive, caring and sustainable communities.

viii. Pursuing African advancement and enhanced international co-operation. ix. Sustainable resource management and use. x. Building a developmental state including improvement of public services and strengthening democratic institutions4.

Effective skills development is a key factor underpinning all of these priorities, although the DHET and SETAs are specifically and collectively responsible for delivering on the fourth priority. The focus is on initiatives and interventions that will respond to the following pressing challenges:

• Inadequate skills levels and work-readiness of graduates entering the workforce. • Lack of literacy and numeracy of the long-term unemployed. • Skills shortages in artisanal, technical and professional fields. • Over-emphasis on NQF levels 1-3, without sufficient progression towards more intermediate and high-level skills. • Failure of businesses to equip workers to adapt to changes in the economy, as it becomes more knowledge based. • Systemic blockages in the provision of skills. • Absence of coherent strategies within industries. • Urban bias of development.

The National Development Plan: Vision for 2030 (NDP)5 has the vision of creating a more inclusive and equitable South African society in which the economy serves the needs of all citizens regardless of race, gender, wealth, skills level and geographic location. It offers a long-term perspective and defines the desired destination and the role that each sector of society must play in achieving the vision. Although the NDP was only finalised in November 2011, it now stands as the overarching vision guiding the resource allocation to, and the implementation of, most other government social and economic policies6.

The NDP essentially gives effect to the New Growth Path (NGP)7 by unpacking the intentions and goals of the NGP in detail. Apart from its general provisions, which will impact on all sectors of the economy, there is a particular focus on innovation that is critical for the Chemical Sector and skills planning therein.

3 http://www.info.gov.za/speeches/2009/09071411151001.htm. Accessed 25 November 2012. 4 http://www.dpsa.gov.za/article.php?id=57. Accessed 29 November 2012. 5 National Planning Commission, National Development Plan 2013 – Our Future – Make it Work. 6 SA News. (2013). The National Development Plan unpacked, 9 February 2013, South African Government News Agency. http://www.sanews.gov.za/south-africa/national-development-plan-unpacked. Accessed 25 June 2013. 7 Government of South Africa, The New Growth Path – The Framework. http://www.info.gov.za/view/DownloadFileAction?id=135748. Accessed 8 July 2013.

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http://www.info.gov.za/speeches/2009/09071411151001.htm

http://www.dpsa.gov.za/article.php?id=57

http://www.sanews.gov.za/south-africa/national-development-plan-unpacked

http://www.info.gov.za/view/DownloadFileAction?id=135748

The NDP emphasises the importance of science and technology as the keys to development: innovation is the most important driver of the kind of technology-based growth that is associated with higher living standards. Therefore, the NDP aims to build an ‘innovation economy’.

Technological innovation drives productivity, a critical underpinning for the higher growth rate that South Africa needs to achieve. The NDP makes it clear that the extent to which South Africa will achieve its growth and development goals will depend on its ability to innovate. The goal of the NDP is that ‘national systems of innovation and learning permeate society and businesses’.

Achieving this goal will require investment in human capital, new product development and technology. Within this strategy, a research and development (R&D) sector that supports commercialisation is essential.

In 2007, Government adopted the National Industrial Policy Framework (NIPF). The NIPF has the following central objectives (echoed in the NDP, above):

• Facilitate a diversification away from the current basic resource-dominated structure of the economy. This implies a focus on growing value-added activities.

• Moving towards a knowledge based economy. • Promoting a more labour-intensive growth path, particularly through investments that will catalyse employment

growth. • Promoting a more inclusive economy. • Contributing to industrial development in the rest of Africa. Seven sets of policies were identified to achieve these goals:

i. Better integration of macro and micro economic policies. ii. Better targeted industrial financing.

iii. Leveraging public and private procurement to support domestic production and local employment. iv. A developmental trade policy. v. Policies to lower costs for productive investments and for poor households.

vi. A focus on skills development and innovation. vii. Alignment between new policy initiatives and work already done.

The second Industrial Policy Action Plan (IPAP II) was released in February 2010. IPAP II has identified key macro and micro-economic policies critical to its success. In terms of macro-economic policies IPAP II proposes competitive and stable exchange rates, and competitive real interest rates to support local production.

In terms of micro-economic policies, the following were identified as key to the stability of the macro variables:

• Lowering the rate of inflation, particularly with respect to inputs of goods and services into the productive economy (including manufacturing) and goods and services consumed by low-income households.

• Active promotion of investment in those sectors that will have a positive impact on inflation (such as food prices). • Contributing to an improved trade balance, by increasing the competitiveness of exported goods and supporting

increased production of goods locally, to compete with imported goods. IPAP II has a strong focus on the strategic leveraging of public procurement across a range of sectors. The goal of this policy would be to support domestic producers by excluding non-local suppliers from the procurement process, thereby eliminating ‘import fronting’ (see below for more details on the new preferential procurement regulations).

The key sectors on which IPAP II will focus are the following three clusters:

Cluster 1: Qualitatively new areas of focus

• Realising the potential of the metal fabrication, capital and transport equipment sectors, particularly arising from large public investments.

• Green and energy-efficiency industries. • Agro-processing (linked to improving food security and reducing food prices). Cluster 2: Scale up and broaden interventions in existing IPAP sectors

• Automotive products and components, and medium and heavy commercial vehicles. • Plastics, pharmaceuticals and chemicals. • Clothing, textiles, footwear and leather. • Biofuels. • Forestry, paper, pulp and furniture. • Strengthening linkages between cultural industries and tourism.

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• Business process outsourcing. Cluster 3: Sectors considered having potential for long-term advanced capabilities

• Nuclear. • Advanced materials. • Aerospace. With specific reference to the pharmaceutical sector, IPAP II identified the following key opportunities for development:

• The domestic production of active pharmaceutical ingredients for key antiretrovirals (ARVs), which will involve appropriate sequencing, in consultation with the Department of Health (DoH), of the domestic production of selected ARV active pharmaceutical ingredients (APIs).

• The local production of reagents for AIDS/HIV diagnostics, under licence. • The domestic production of vaccines under licence, which will involve the restart of the production of vaccines to

supply the domestic market (market estimated at R1.2 billion). • The domestic production of biological medicines such as erythmpoietin, monoclonal antibodies and vaccines. IPAP II highlighted the relatively small size of the clinical research market in South Africa, which is currently worth around R2 billion a year. According to this policy document it is estimated that the potential size of this market could be as high as R5 billion a year. Supporting this market will require, inter alia, the removal of certain regulatory barriers and constraints.

These identified constraints include the lack of key skills in the highly specialised areas of new drug design, pharmaceutical formulation and pharmaceutical biotechnology.

The following key activities were identified in IPAP II in respect of the Chemical Sector:

Advancement of fluorochemicals: South Africa has the second largest fluorspar reserve in the world and is the third largest producer of fluorspar. However, more than 95% of fluorspar production is exported and less than 5% beneficiated to crude and pure hydrogen fluoride (HF), fluorine (F2) and fluorochemical products. July 2012 saw the official opening of the multi-purpose fluorination pilot plant at the Nuclear Energy Corporation of South Africa. The pharmaceutical industry is one of the industries that will benefit from advances in fluorochemicals.

Manufacturing of pharmaceuticals: In her Budget Vote address earlier this year, Minister Pandor announced the establishment of Ketlaphela, a joint venture between Government through Pelchem, and Lonza, a leading global player in pharmaceuticals. This R1.6 billion project will result in the establishment of the first pharmaceutical plant to manufacture active pharmaceutical ingredients for antiretroviral medicines in South Africa. This is in line with the country’s plan to address HIV and AIDS through local and cost effective production of antiretroviral drugs. Ketlaphela will significantly reduce the country’s dependence on imported drugs and will provide a security of supply of priority drugs and stable pricing with less sensitivity to exchange rate fluctuations.

Polypropylene beneficiation: A Fund for Research into Industrial Development, Growth and Equity (FRIDGE) study into potential downstream polypropylene products was commissioned by the Department of Trade and Industry (the DTI) and has been used as a base for the development of a polypropylene business case, which has been included in investment campaigns in targeted countries. The case outlines benefits for investing in South Africa coupled with technical assistance given by local feedstock suppliers. The intervention relates to the roll-out of the programme, which started during the 2007/08 IPAP.

Investigate costs and benefits of proposed new liquid fuels projects: Renewable fuels are one of the areas identified for accelerated economic growth within the Accelerated and Share Growth – South Africa (AsgiSA) initiative.

IPAP 2013/14 to 2015/16 continues to support initiatives to develop renewable fuels and provides feedback on the implementation of various research projects, policies and programmes in support of renewable fuel production8. In terms of the key activities outlined in IPAP II, IPAP 2013/14 to 2015/16 aims to achieve the following:

Polypropylene beneficiation

The DTI aims to develop a business case on syringe manufacturing in conjunction with the IDC in order to stimulate the local beneficiation of polypropylene.

Plastics trade policy measures

8 DTI. (2013). Industrial Policy Action Plan 2013/14-2015/16: Economic sector and employment cluster, 2013.

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The DTI aims to encourage and support local production of components in order to improve the local industry’s international competitiveness. The intervention on incorrect coding is specifically aimed at clamping down on illegal imports that have been undermining local production in recent years.

Designation of pharmaceutical tenders

The aim is to designate the entire volume or parts of pharmaceutical tenders for domestic manufacturers, in consultation with the Department of Health (DoH). However, this process will take the following into account: the local manufacturing capacity, the impact that such measures will have on the security of supply and additional costs that may be incurred because of necessary price premiums.

Facilitation of Project Ketlaphela

This project has been described above. IPAP 2013/14 to 2015/16 sets the following milestones for this period:

• Construction of the first built component of the project (a R105 million pilot plant), together with the necessary R&D, training and technology validation unit.

• Environmental Impact Assessment (EIA). • Completion of basic engineering. Facilitation of the Biovac Project (Manufacture of Vaccines)

The SA vaccine project, Biovac, is a 40-60 public-private partnership that was started in 2003 but has been experiencing long delays since its inception because of a sharp increase in the project’s capital cost – from R40 million (2003 estimates) to R250 million. These increases were driven by the need to keep up with rapid advances in the sophistication of vaccine technology globally. Biovac, which is expected to be fully operational by 2017 will be the third vaccine factory in Africa (after Egypt and Senegal).

IPAP 2013/14 to 2015/16 sets the following milestones for this period:

• Completion of inspection of compliance with the current Good Manufacturing Practice (cGMP) and approval by the SA Medicines Control Council (MCC).

• Completion of construction of a R75 million Inspection (Viewing), Labelling and Packaging (VLP) facility. • Manufacturing of the first commercial-scale batch of vaccine (Hepatitis B). • Installation/commissioning of R20 million pre-filled syringe line. Pharmaceutical skills strategy

The aim of this strategy is to provide the required skills for the domestic pharmaceutical industry and the broader public and private healthcare sector, by adjusting training programmes to meet demand for specific scarce skills.


• Training programme for medicine control regulators and industry regulatory affairs personnel, regarding manufacture of active pharma ingredients, biological medicines and vaccines.

• Training programme to be provided for Project Ketlaphela. • Training programme to be provided for Biovac project. Development of the cosmetics sector strategy

The DTI will develop a cosmetic sector strategy which is aimed at alleviating constraints experienced by local cosmetics companies.

Quality, safety standards and toxicology skills in the cosmetics sector

The aim of this intervention is to facilitate safety testing of cosmetic products produced in South Africa, so that products will get tested and certified locally by toxicologists. Products that are tested will be more acceptable in export markets. At the same time local certification will greatly reduce the exorbitant costs that companies currently pay to have their products tested overseas.

So far the DTI has worked with the Toxicology Association of South Africa (TOXSA) and the Cosmetics, Toiletries and Fragrances Association (CTFA) to request the DST to amend the Natural Scientific Professions Act 27 of 2003 to recognise toxicology as a profession. This approval and the amendment of the Act became effective in March 2012. It has also in partnership with the University of Pretoria, TOXSA and DST developed a two year safety assessment course that will address

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skills shortage in toxicology testing in the country. The course is currently being registered and approved by the university and it will be offered from 2015. The DTI in partnership with the University of Cape Town is in a process of establishing a comprehensive hair testing and cosmetic toxicology laboratory.


• Identify quality and safety standards required for toxicology tests. • Work with TOXSA to identify skills requirements • Upgrade current facilities and laboratories to enable enhanced toxicology testing. • Workplan produced to set up a dedicated laboratory to perform toxicology tests locally.

The CHIETA is directly involved in the skills development aspects of IPAP. It serves on task teams and working group and works closely with the DTI to facilitate delivery towards the milestones that relate to skills development.

The South African Government recognises the importance of small and micro enterprises (SMEs) for economic growth and job creation. One of the mechanisms through which SMEs are supported is called “incubators”. An incubator is an institution or initiative aimed at nurturing new businesses through their early development phases by, for example, offering office space, business skills training, and access to financing and professional networks9. In 2012 the DTI launched the Incubation Support Programme (ISP) which aims to develop incubators and create successful enterprises with the potential to revitalise communities and strengthen local and national economies.

The ISP is one of the support measures to encourage partnerships in which big business assist SMEs with skills transfer, enterprise development, supplier development and marketing opportunities10. The DTI and Sasol established an incubator, ChemCity Business Incubator (CBI). This R60-million facility is situated in Sasolburg and will cater for start-ups and early-stage SMEs that operate in various sectors, including chemicals, energy and related sectors, as well as the manufacturing, agribusiness and food processing sectors. Other incubators active in the Chemical Sector with Government support and funding are The South African Chemical Technology Incubator (Chemin) that specialises in supporting the start-up and growth of SMMEs in chemical production technologies and products and Technology Station in Chemicals (TSC), a Department of Science and Technology (DST) funded programme aimed at transferring chemical technology to SMEs. This programme is based at the Tshwane University of Technology and the Mangosuthu University of Technology).

The National Economic Development and Labour Council (Nedlac) Crisis Response Process to the global recession has emphasised the need to consider lowering the tariffs on intermediate inputs. It identified that there was the possibility of using tariffs as a policy tool when there was potential for significant creation and/or retention of jobs and when there was potential for significant replacement of imports by local production.

Preferential procurement of domestically produced goods and services has been identified for several years as a key catalyser of economic development. Progress in this regard has recently been made. National Treasury’s new preferential procurement regulations came into effect on 07 December 2011. The regulations replace the previous regulations that were published ten years earlier, in 2001 and contain the new local procurement guidelines. Eight designated sectors have been identified for minimum local sourcing targets: power pylons, rolling stock, buses, canned vegetables, clothing, textiles, footwear and leather products, and set top boxes. However, even where a tender does not involve a designated sector, organs of state or public entities may still exercise their discretion to include local content provisions in tender conditions.

Another new development is that preferential procurement regulations will now apply to a number of public entities which were previously exempt. These include Eskom, Telkom, Denel, the South African Post Office and the various SETAs. This substantially widens the pool of potential government customers and contracts for local producers. The first significant result of these new procurement regulations was for medicines, procured by the Department of Health.

South Africa’s Beneficiation Strategy provides a framework for translating South Africa’s considerable competitive advantage in mineral resources into wider local economic benefits and is aligned to IPAP and the NGP. The strategy identifies several instruments that constitute an enabling environment for beneficiation (policies, legislation, incentives, etc.) and that support diversification of the economy’s productive base. The beneficiation strategy aims to advance development through the optimisation of linkages in the mineral value chain, facilitation of economic diversification, job creation and industrialisation. In addition, the strategy has an important focus on supporting South Africa’s transition to a knowledge based economy. The strategy aims to develop sustainable final stage beneficiation level for ten minerals in five value chains, namely: security of energy, industrial minerals (e.g. steel and stainless steel), advanced metal (e.g. Ti pigment production), auto-catalyst and diesel particulate, and jewellery fabrication11.

9 Sepulveda, F., (2013). Business Accelerator vs Business Incubator, Impulsa Business Accelerator. http://www.impulsaxl.com/business-accelerator-vs-business-incubator.html. Accessed: 06 Nov. 13 10 DTI, SMME Development Financial Assistance (Incentives): Incubation Support Programme (ISP). http://www.theDTI.gov.za/financial_assistance/financial_incentive.jsp?id=54&subthemeid=8. Accessed: 06 Nov. 13 11 DMR. (2011). A beneficiations strategy for the minerals sector of South Africa, June 2011.

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http://www.thedti.gov.za/financial_assistance/financial_incentive.jsp?id=54&subthemeid=8

Implementation of beneficiation policies have thus far been relatively unsuccessful, with the result that minerals beneficiation still remains an untapped opportunity. As part of IPAP 2013/14 – 2015/16, Government has committed to undertaking comprehensive research that will support the development of a strategy and action plan to advance backward and forward beneficiation in the following selected group of key minerals value chains:

• Ferrous (iron ore, ferro-alloys, steel and specialty steels). • The Platinum Group Metals (PGMs). • Titanium and pigments. • Polymers (from coal, gas and oil). • Mining inputs.12 South Africa’s Biofuels Strategy (December 2007) is also relevant for the Chemical Sector. The strategy aimed to achieve a 2% penetration level of biofuels (i.e. 400 million litres per annum) in the national liquid fuel supply by 2012, but has fallen far short of this target.

South Africa's energy policy is centred on coal as the main source of electricity, which currently supplies 90% of electricity, but there is increasing scope for commercial renewable projects. In addition, the transition to a renewable energy base is now seen as an economic development opportunity (as indicated in economic policy documents such as the NGP) rather than as an economic cost, which was the prevalent view in the past13.

The Integrated Resource Plan (IRP)14 is a national electricity plan. The IRP is based on an identified need of an additional electricity generation capacity of more than 50 000 megawatt by 2030 and envisages renewable energy contributing 42% of the total new generation added to South Africa's electricity mix between 2010 and 2030. Within this target there is substantial opportunity for new private sector development in energy generation. The recent publication of the tariffs at which Government will purchase power from independent power producers (IPPs) has been an important milestone in encouraging investment. The increased focus on and allocation of resources to green and renewable energy offers a number of new opportunities for the Chemical Sector. These include nanotechnology, photo-catalysts and the glass components of solar energy installations.

The Industrial Development Corporation (IDC) has recently concluded a R5-billion private placement with the Public Investment Corporation (PIC) for a 'green bond'. This has been established to facilitate funding for businesses wishing to invest in clean-energy infrastructure developments.

Government’s focus on green and renewable energy is embedded in a much wider initiative to promote the development of a ‘green economy’. The concept of a green economy refers to two interlinked developmental outcomes for the South African economy, namely growing economic activity (which leads to investment, jobs and competitiveness) in the green industry sector; and a shift in the economy as a whole towards cleaner industries and sectors with a low environmental impact compared to their socio-economic impact. The green economy is an economic development model that is receiving more and more support and that aims to reduce the adverse impact that economic activities can have on the environment15.

The importance of a green economy and consideration for the environment in economic development have been emphasised in many of the policies and economic development plans that have seen the light over the past ten years. The green economy is prioritised as one of the key economic drivers in MTSF 2009 – 2014 and in the NGP.

One of the prominent developments in the promotion of the green economy was South Africa’s response to the United Nations’ call for economic transformation to a greener economy that creates green jobs and that promotes sustainable and inclusive growth. In response to this call the Department of Environmental Affairs convened a Green Economy Strategy Summit in May 2010. This was followed by a framework for South Africa’s response to the international economic crisis, in which Government recognises the opportunities in the development of industries that combat the negative effects of climate change. The framework urges South Africa to develop strong capacity in green technologies and industries and to develop incentives for investment in a programme geared at creating a large number of green jobs. The framework sees investments in both public and private sectors as the mechanism for the reconfiguration of businesses that will lead to a higher share of green sectors in the economy, more green and decent jobs, reduced energy and material intensities in production processes, less waste and pollution, and significantly reduced greenhouse-gas emissions16.

12 DTI. (2013). Industrial Policy Action Plan 2013/14-2015/16: Economic sector and employment cluster, 2013. 13 Edkin, Marquard and Winkler, 2010. Cosatu News. 14 Department of Energy, (2010). The Integrated Resource Plan (IEP). 15 Chief Directorate: Communication, Department of Environmental Affairs, South Africa’s Green Economy Strategy, Pretoria. http://www.enviropaedia.com/topic/default.php?topic_id=342. Accessed 6 October 2012. 16 Chief Directorate: Communication, Department of Environmental Affairs, South Africa’s Green Economy Strategy, Pretoria. http://www.enviropaedia.com/topic/default.php?topic_id=342. Accessed 6 October 2012.

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In November 2011 South Africa’s Green Economy Accord was signed by Parliament. The Accord, one of the most comprehensive social pacts on green jobs in the world, builds a partnership to create 300 000 new jobs by 2020, in economic activities as diverse as energy generation, manufacturing of products that reduce carbon emissions, farming activities to provide feedstock for biofuels, soil and environmental management, and eco-tourism17 .

The Presidential Infrastructure Coordinating Commission assessed the infrastructure gaps in the country through spatial mapping which analyses future population growth, projected economic growth and areas of the country not served by water, electricity, roads, sanitation and communication. Based on this work, a common national infrastructure plan has been develop with 18 Strategic Integrated Projects (SIPs) to support economic development and address service delivery in the poorest provinces.

The SIPs of most direct relevance to the chemical sector relate to the Energy SIPS aimed at addressing the energy mix of South Africa, with emphasis on sustainable energy and the South East Nodal development, which includes Project Mthombo18.

Furthermore, the DHET, which is responsible for skills development to support the SIPS, has made estimates of the skills that will be required for the SIPS projects and have indicated to the SETAs which skills they regard as “scarce”. SETAs will contribute to the development of those skills. The DHET has also instituted new structures called “Occupational Teams”. These teams will consist of industry experts that will advise the education sector on the exact skills needed by industry.19

The Special Economic Zones Bill, which was gazetted on 1 March 2013 and introduced in Parliament on 5 March 201320, is intended to replace the DTI’s IDZ programme initiated in 2000. The SEZ programme seeks to promote trade, economic growth and industrialisation in targeted areas across South Africa (SA) that will take account of the economic development needs and challenges of specific regions in order to improve current spatial development inequalities21. The national budget for 2013/14 states that money has been allocated for the building of world-class industrial parks and that tax incentives to enhance this initiative are currently underway22.

The study undertaken to develop a SEZ in the Saldanha Bay area highlights the importance of local skills development initiatives that target the training of maintenance personnel in chemical, mechanical, electrical and control engineering23.

Another national strategy that needs to be considered is the Integrated and Sustainable Rural Development Strategy (ISRDS) of 2000, which is designed to realise a vision that will “attain socially cohesive and stable rural communities with viable institutions, sustainable economies and universal access to social amenities, able to attract and retain skilled and able people, who are equipped to contribute to growth and development”24.

Monitoring and Evaluation Strategies

Most important in this area is the ‘Policy Framework for Government-Wide Monitoring and Evaluation’ (GWM&E), released by the Presidency in 2007. This is the policy instrument through which Government aims to fulfil its constitutional mandate to promote ‘economy, efficiency, effectiveness and equity’ in the use of national resources. It is important to note that responsibility for achieving these constitutional provisions is deferred to oversight bodies with such allocated responsibilities. The CHIETA, as a statutory body, thus has the responsibility for monitoring and evaluating its own mandated activities using the criteria set out in the GWM&E. The starting point is the collection of baseline information on the sector, including the detailed source data that is used in this SSP.

New and unfolding Government interventions

In addition to the Government Strategies described above, new Government Strategies, policies and other interventions are constantly being developed while existing ones are reviewed and changed. At the same time, strategies that have been announced but have not yet been fully implemented are gradually taking effect. This creates an ever-changing environment to which the CHIETA has to adapt. The recently announced white paper on Post-School Education and Training clearly defines policy objectives, namely:-

17 Government of South Africa. http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=23648&tid=50584. Accessed 6 October 2012. 18 Project Mthombo is PetroSA’s initiative to build a world class crude refinery project. 19 Communication received from Ms A. Bird, DHET. 20 DTI. (2013). Memorandum on SEZ Bill 2013 following public consultations. http://www.DTI.gov.za/parliament/Memo-SEZ.pdf. Accessed 25 June 2013. 21 DTI. (2012). Policy on the Development of Special Economic Zones in South Africa: For public comment only. 22 RSA. (2013). 2013 Budget Speech by the Minister of Finance Pravin Gordhan, 27 February 2013. http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=34533&tid=99785. Accessed 28 June 2013. 23 DTI. (undated.) Saldanha Bay IDZ Feasability Study. 24 www.info.gov.za/otherdocs/2000/isrds.pdf. Accessed 29 November 2012.

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A post school system that can assist in building a fair, equitable, non-racial, non-sexist and democratic South Africa.

A single co-ordinated post school education and training system.

Expanded access, improved quality and increased diversity of provision.

A stronger and more co-operative relationship between education and training institutions and the workplace.

A post-school education and training system that is responsive to the needs of individual citizens, employers in both public and private sectors, as well as the broader societal and development objectives.

At the same time it creates the need for the SETA to engage with all these new developments to ensure that the Chemical Sector’s interests are served and that the sector contributes optimally to ensure the success of all these interventions.

5.2 Legislative Environment

The CHIETA mandate is derived from the Skills Development Act, 1998 (Act No. 97 of 1998) and its responsibilities include the following:

i. Develop a Sector Skills Plan (SSP) within the framework of the National Skills Development Strategy (NSDS); ii. Establish and promote learnerships through:

- identifying the need for a learnership; - developing and registering learnerships; - identifying workplaces for practical work experience; - supporting the development of learning materials; - improving the facilitation of learning; and - assisting in the conclusion and registration of learnership agreements.

iii. Collect and disburse the skills development levies in its sector; approving workplace skills plans and allocating grants in the prescribed manner to employers, education and training providers and workers;

iv. Fulfil the functions of an ETQA as delegated by the QCTO; and v. Monitoring education and training in the sector.

The legislative framework in which the CHIETA functions and policy and legislative changes that influence programme spending plans are shown below:

i. National Skills Development Strategy (NSDS III);

ii. Skills Development Act No. 97 of 1998; iii. Skills Development Amendment Act 31 of 2003; iv. Skills Development Amendment Act 37 of 2008; v. Skills Development Act (97/1998) Service Level Agreement Regulations under regulation number No. R716

of 18 July 2005; vi. Skills Development Levies Act 9 of 1999;

vii. Sector Education and Training Authorities (SETAs) grant regulations regarding monies received by a SETA and related matters (Government Notice R990) in terms of the Skills Development Act, 1998 (Act No. 97 of 1998) dated 3 December 2012.

viii. Regulations regarding the establishment of Sector Education and Training Authorities under Notice R106 of 4 February 2005, (“SETA Establishment Regulations”);

ix. Public Finance Management Act No. 1 of 1999 as amended (“PFMA”); x. Treasury Regulations issued in terms of the Public Finance Management Act (“Treasury Regulations”) of

2005; xi. Public Audit Act 25 of 2004;

xii. Directive : Public Finance Management Act under GN647 of 27 May 2007; xiii. Government Notice GN52 of 6 February 2010: Extension of Existing Period of establishment of Sector

Education and Training Authorities; xiv. Approval of the Constitution for the Chemical Industries Education and Training Authority (CHIETA). xv. Promotion to Access to Information Act;

xvi. Promotion to Administrative Justice Act; xvii. Employment Equity Act, Labour Relations act, Basic Conditions of Employment Act and Occupational Health

and Safety Act; xviii. Tax Laws; and

xix. CHIETA Constitution inclusive of the role and functions of a SETA.

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5.2.1 Sector Education and Training Authorities (SETAs) grant regulations regarding monies received by a SETA

and related matters (Government Notice R990) in terms of the Skills Development Act, 1998 (Act No. 97 of 1998) dated 3 December 2012.

The CHIETA Strategic Plan and more specifically the planning of its Annual Performance Targets 2015/16 and financial disbursement model is strongly aligned to achieving the intent and objectives of abovementioned regulation namely:-

• regulate the proportion of funds available for skills development that is spent on administration; • provide for Sector Education and Training Authorities (SETAs) to contribute to the cost of the work of the

Quality Council for Trade and Occupations (QCTO); • discourage the accumulation of surpluses and the carry-over of unspent funds at the end of each financial

year; • improve the quantity and quality of labour market information received by SETAs in the form of workplace

skills plans, annual training reports and PIVOTAL training reports, to inform planning; • promote National Qualifications Framework (NQF) registered and quality assured PIVOTAL programmes

that address priority scarce and critical skills needs identified in sector skills plans; and

• create a framework within which expanded use is made of public education and training providers for the

provision of skills development programmes.

5.3 CHIETA SUPPORT AND CONTRIBUTION TOWARDS THE MINISTER OF HET’S OUTCOMES

Forthcoming from engagement with the DHET several priority areas were highlighted. The priority areas have

been factored strongly into the CHIETA Strategic Plan and APP for 2015/16 resulting in enhanced performance

targets for employed and unemployed learnerships, bursaries, internships, skills programmes, artisan training

and workplace experience / workplace integrated learner (WIL). The under-mentioned table illustrates CHIETA

contribution / support to the Minister as per the respective outcomes of the Minister.

The Minister of Higher Education and Training is accountable for Outcome 5 – “A skilled and capable workforce

to support an inclusive growth path” that has the five outputs and measures. CHIETA’s contribution in

supporting these outcomes is provided in the table below:-

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Table 1: CHIETA Contribution to Achievement of Minister's Outcomes

No Output CHIETA Contribution

1

Establish a credible institutional mechanism for skills planning • Develop a standardised framework for the assessment of skills

shortages and vacancies in the country.

CHIETA has submitted an SSP to the DHET that is well-researched and supported by stakeholders. CHIETA is continuing to build a credible institutional mechanism for skills planning through a range of interventions including support to SDFs to ensure quality WSP/ATRs are submitted employer survey, occupational survey, employee skills survey, and other research projects. Details, including targets, are contained in the APP 2015/16.

2

Increase access to programmes leading to intermediate- and high-level learning • Provide young people and adults with foundational learning

qualifications and increase ABET Level-4 entrants from a baseline of 269 229 to 300 000 per year.

• Improve NCV success rates, prior to massification of the programme. NCV enrolments across Levels 2 and 3 in 2009 were 122 921, of which 8.9% achieved certification at Level 2; 9.9% at Level 3; and 21.5% at Level 4.

• Create ‘second-chance’ bridging programmes (leading to a matric equivalent) for the youth who do not hold a senior certificate.

• Provide a range of learning options to meet the demand of those with matric but who do not meet requirements for university entrance.

CHIETA will continue to support ABET training in the sector, the delivery of the FLC and The “adult matric”. Preparation for implementation of the FLC and the adult matric is in progress. Details, including targets, are contained in the APP 2015/16.

3

Increase access to occupationally directed programmes in needed areas and thereby expand the availability of intermediate-level skills (with a special focus on artisan skills) • Increase the number of learnerships to at least 20 000 annually

by 2014. • Produce at least 10 000 artisans annually by 2014 • Put in place measures to improve the trade-test pass rate from

its 2009 level of 46% to 60% by 2014. • Increase the placement rate of learners from learnership and

apprenticeship programmes, as well as learners from NCV programmes, who require Workplace Experience before being able to take trade tests or other summative assessments. At least 70% of learners should have a placement every year.

• Increase the proportion of unemployed people, as compared to employed people, entering learnerships from the current level of 60% to 70%.

CHIETA continues to support learnerships/ apprenticeships for artisans and learnerships for non-artisans. Details, including targets, are contained in the APP 2015/16.

4

Increase access to high-level occupationally directed programmes in needed areas • Increase the graduate output in engineering sciences to 15 000

per year by 2014. • Increase the graduate output in animal and human health to

over 15 000 per year by 2014 • Increase the graduate output in natural and physical sciences to

8 000 annually by 2014 • Increase the graduate output in teacher education to 12 000

per year by 2014

CHIETA continues to support bursars at public HET Institutions with chemical-related faculties and workplace experiential learning linked to public HET diplomas. CHIETA plans to support Internships linked to public HET degrees and diplomas. Details, including targets, are contained in the APP 2015/16.

5

Research, development and innovation in human capital for a growing knowledge economy • Increase the output of

Honours graduates to 20 000 annually by 2014, Research masters to 4 500 annually by 2014, Doctoral graduates to 1 350 annually by 2014 Post-doctoral graduates to 100 annually by 2014

• Provide increased support to industry/university partnerships. • Increase investment in research and development, especially in

the science, engineering and technology sector.

CHIETA will support Honours, Research Masters, Doctoral and Post-doctoral graduate in relevant fields. Details, including targets, are contained in the APP 2015/16.

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6. SITUATIONAL ANALYSIS OF CHEMICAL SECTOR Introduction The Chemical Industries Sector Education and Training Authority (CHIETA) has prepared this Sector Skills Plan (SSP) update in accordance with the requirements of the Department of Higher Education and Training (DHET). The policy context for skills planning includes the National Skills Development Strategy (NSDS) III, the National Skills Accord, the National Youth Employment Accord (NYEA), the Green Paper for Post-School Education and Training, the Quality Council for Trades and Occupations (QCTO) policies, and various regulations, such as the Grant Regulations (released 03 December 2012, Gazette 35940). Furthermore, the SSP has been developed within the context of a number of important skills development and national economic growth and development policies and strategies. In particular, the National Development Plan emphasises the importance of science and technology as the keys to development. Innovation is the most important driver of the kind of technology-based growth that is associated with higher living standards. The Chemical Sector is at the forefront of the drive towards an ‘innovation economy’ and the improvement of the skills of our workforce is imperative for the achievement of this. Key to the Chemical Sector’s future growth and development are the National Development Plan (NDP) and Government’s Industrial Policy Action Plan (IPAP) that provides for interventions in the cosmetics and pharmaceutical industries the infrastructure development plans that provide for the building of a new oil refinery. These projects may stimulate the growth of the Chemical Sector, but at the same time they need to be supported by skills development. The information presented in this SSP has been drawn from a number of sources. In relation to data on the workplaces in the sector, the CHIETA has used the information from Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs). The CHIETA’s format for the WSPs and ATRs exceeds the minimum legislated requirements, specifically in that, as from the 2012/2013 Mandatory Grants cycle, employers have been submitting individual employee records against the Organising Framework for Occupations (OFO) codes - referred to as source data. The decision was taken to adopt the source-data approach because the CHIETA sees the information contained in the WSPs/ATRs as critical in providing detailed baseline statistical information on the sector. The WSPs/ATRs represent more than 80% of employees in the sector and the very detailed data submitted, has enabled the CHIETA to undertake a much more detailed and accurate analysis of the sector than before. This source data was supplemented with other sector specific and national data; such as Quantec 2013 data and data from the Quarterly Labour Force Surveys. Other national data sources used include, for example, employment equity reports published by the Department of Labour, the Higher Education Management Information System (HEMIS) and data from Further Education and Training Institutions, maintained by the DHET. In addition to the quantitative data sources outlined above, the CHIETA has also undertaken a range of research projects, which contributed to the overall understanding of the Chemical Sector. Several of these project reports were used in the preparation of this SSP update and they were augmented by research conducted by government departments, national research institutions and industry bodies. More qualitative information used in this SSP update was obtained through consultation with sector stakeholders. The CHIETA has five chambers, which consist of employers, trade unions, government departments and critical interest groups. Skills planning is a core constitutional function of the chambers that meet regularly, at least quarterly. The chambers played a central role in the updating of the SSP. The SSP update was also part of the agenda for the regional skills forums held in June 2014 in Gauteng (for Gauteng and the inland provinces), KZN, Eastern Cape and Western Cape (inclusive of Northern Cape). The regional skills forums were attended by employers, trade unions, private and public education and training providers, critical interest groups and CHIETA staff. A strategic planning workshop of the Governing Authority provided valuable strategic input into the updating of the SSP and the strategic plan. CHIETA’s involvement with government departments on specific skills needs, such as skills needed to support dti IPAP projects on pharmaceuticals and cosmetics, and scarce and critical skills needs of the Department of Energy related to the Chemical Sector, have been factored into the SSP. The Research and Skills Planning Committee guided the development of the SSP update and recommended its approval to the relevant Governing Authority structures. Feedback received from the Department of Higher Education and training and peers in the SETA Goods Cluster provided in October 2013 has been considered and addressed in so far as is possible.

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Profile of the sector In the 2013/14 financial year a total of 1 924 companies paid skills development levies to the CHIETA. This figure increased by 139 from the previous financial year. Although only 39% of these companies submitted workplace skills plans (WSPs) to the CHIETA, these companies employ, approximately 84% of the workers in the sector. At the end of March 2014 all the organisations in the sector employed approximately 158 000 people. Even though the Petroleum Subsector comprised only 10% of the total number of levy paying companies in the sector it contributed 45% of the levies paid. The majority (80%) of the companies in the Chemicals Sector are classified as either micro25 or small. The high prevalence of micro and small companies in the sector has major implications for the nature of the support which the CHIETA is required to provide to workplaces in relation to skills development. The Petroleum Subsector is a particular challenge in relation to the size of its enterprises as it consists of a few very large firms and a number of small ones. More than a quarter (29%) of the workers in the Sector is employed in the Petroleum Subsector. High concentrations of employees across the different subsectors work in Gauteng, except for the Petroleum Subsector; 40% of the employees in the Petroleum Subsector work in Mpumalanga. Employees in the Chemical Sector are better educated than the total South African employed population. Almost half (42%) of the workers in the Chemical Sector hold qualifications above NQF Level 4 compared to only 21% of all employed people in South Africa. The age distributions of the different subsectors are very similar and the average age of workers in the sector is 41. Thirteen per cent of the workers in the Chemical Sector are close to retirement age (between the ages of 55 and 64) In terms of equity just over half (54%) of the employees are African. When compared to the employed population of South Africa it is clear that White and Indian people are relatively over-represented in the Chemical Sector. African women are particularly under-represented. At the end of March 2014 there were 1 245 employees with disabilities working in the Chemical Sector. This equates to 0.8% of all employees in the sector. Profile of the sector

CHIETA Chambers CHIETA Sub-sectors

Petroleum and Base Chemicals Petroleum Base Chemicals

Fast Moving Consumer Goods and Pharmaceuticals Fast Moving Consumer Goods Pharmaceuticals

Explosives and Fertilisers Explosives Fertilisers

Speciality Chemicals and Surface Coatings Speciality Chemicals Surface Coatings

Glass Glass Economic performance of the sector The Chemical Sector is a significant role player in the South African economy and in 2013 it contributed 4.4% to GDP. However, the sector is capital intensive and while in 2013 it accounted for 6.0% of the total capital stock, it contributed only 1.2% of total employment in the country. South African is currently a net importer of chemical products and in 2013 the value of imports was almost double the value of exports. The sector was hard hit by the recent recession and in 2009 it contracted by 7.9%. However, it recovered and grew significantly (more than 5% per year) over the period 2010 to 2012. In 2013 growth dropped again to only 1.1%. The economic performance of the sector is affected by various factors including the availability and cost of raw materials, international trends in chemical production, growth in export markets, global economic growth, exchange rates, the performance of other sectors of the economy, consumer markets and consumer spending, administered, logistics and compliance costs and Government initiatives to stimulate the growth of the sector.

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The demand for skills in the sector The demand for labour in absolute numbers in the Chemical Sector has been declining steadily over the last two decades with investments in capital equipment being largely used to replace labour. This reduction in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards the higher level skills. In March 2014, 20% of the workers in the sector worked as technicians and associate professionals, 15% as professionals and 12% as managers. These are the occupational groups that mostly require people with tertiary education and together they formed 47% of the employment in the sector. Clerical support workers constituted 11% of employment and service and sales workers only 2%. The occupational group craft and related trades workers includes artisans and this group formed 6% of employment. The occupational group plant and machine operators included 18% of the workers in the sector and elementary occupations 14%. Learners formed 2% of the workforce. The sector employed 10 064 people in 64 designated trades. The largest group of artisans was mechanical fitters (2 078), followed by electricians (1 196) and millwrights (1 114). At the end of March 2014 there were about 17 500 employees in the Chemical Sector working in occupations that are identified in the OFO 2013 as ‘green’ occupations. For the purpose of the SSP a demand projection model was developed for the Chemical Sector. The purpose of the projection of future demand is to provide the sector with a broad understanding of the numbers of people that will have to be trained to meet sector needs. The demand projections provide for new demand that will result from sectoral growth and employment creation, as well as for replacement demand that will occur because of mortality, emigration and the retirement of employees. The demand projection model was developed to project demand at a detailed occupational level. Three employment scenarios were prepared; a low growth-, a baseline-, and a high growth scenario. Under all three scenarios employment in the Base Chemicals, Fertilisers and Glass subsectors is expected to decline. Some of the factors that may have an influence on the demand for skills in the sector are industry growth and developments, government’s initiatives to stimulate sectoral growth, transformation imperatives, research and development, and technological development. The supply of skills to the sector Supply is viewed from different perspectives: new supply (the output from basic education, FET colleges and HET institutions; and current supply (the development of skills among those that are already employed within the Chemical Sector as well as the pool of unemployed but available to work for the sector). In respect of the new supply to the sector there has been substantial growth in the numbers of new graduates from universities and universities of technology in certain engineering fields. In terms of average annual output for national diplomas, growth is reported at 7% for diplomas in chemical engineering and technology and 6% for first degrees in the same field. Despite these positive growth trends, increases have not yet been sufficient to meet the needs of the national economy and the Chemical Sector in particular. In order to ensure future growth it will be necessary to support higher education institutions through a variety of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace-training opportunities for students from the universities of technology. The output from the school system stays a concern in respect of the following: inadequate (in terms of quantity and quality) supply of school leavers with Mathematics and Physical Science passes that can pursue studies to become engineers, technologist and technicians (at HET level) and artisans (at FET level); and inadequate education levels of the general workforce that enters the Chemical Sector without previous training. The supply of new skills from the FET sector into the Chemical Sector has traditionally been very limited. However, government’s recent focus on increasing both the quality and quantity of output from FET colleges may result in these institutions playing more significant roles in the supply of skills to the sector. Current supply includes the group of people that are presently employed in addition to those that are unemployed but that are available for work. The training and development of the current workforce forms a critical aspect of skills supply. In 2013/2014 training opportunities were afforded to 47% of employees in the Chemical Sector. In total about 250 000 training opportunities were afforded to the employees (one employee could have accessed to more than one training opportunity).

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A large proportion of these training opportunities are short courses, skills programmes and induction programmes. The training also includes international courses that are offered in areas of specialisation where there is no training available locally and e-learning programmes. Since its inception the CHIETA has developed a host of interventions and mechanisms to address the skills needs of the sector and to overcome skills shortages. The skills development priorities and plans for the coming five years build on the work that has been started in previous years. The CHIETA interventions span the whole skills development pipeline and include interventions at school level – especially in respect of maths and science teaching, support to FET colleges, support to and co-operation with higher education and training institutions, artisan development, qualification development and quality assurance, institutes or centres for training excellence, HIV/AIDS interventions, chamber specific responses to skills needs, partnerships with government departments, provincial engagements, support to rural learners, support to small and micro enterprises, the recognition of prior learning and pivotal programmes to address critical skills needs. The CHIETA has also made good progress in the development of a credible mechanism for skills planning. The skills planning processes in the sector include various research projects, the collection of WSP/ATR data according to individual employee records (source data) and the in-depth analysis of this data, a research colloquium and several partnerships with research institutions. The skills needs of the sector The information on skills shortages was obtained by analysing the results set out in the WSPs submitted in March 2014. Employers had to identify the occupations in which they experienced scarcity (i.e. when people are available in the labour market but do not meet other employment criteria of the company such as employment equity considerations or cannot be attracted due to the geological location of the company and/or when people are generally in short supply in the labour market). For all the occupations in which scarcity was experienced employers also had to indicate how many vacancies were available at the time they completed the WSPs. At that time 26% of the employers that submitted WSPs reported that they experienced skills shortages in the market in the sense that they could not find suitable people to fill positions in their organisations. The shortages of skills in the manager, professional, technician and associate professionals, and skilled and trade workers occupational categories were evident from the vacancy data. Although the subsectors in the Chemical Sector have very specific needs in some instances, most of them share their needs for: managers in the production and sales and marketing fields; professionals in the chemistry, engineering, and sales of industrial and pharmaceutical products fields; technicians that can work at the level of chemical plant coordinators; and various artisans. The sector has to compete with the broader manufacturing and other sectors for some of these skills and is affected by national skills shortages. Apart from skills shortages there are also other skills needs to attend to a number of cross-cutting and general skills (critical skills) – many of which involve large portions of the existing workforce. These skills include: Core chemical skills including specialist/contextual knowledge and artisan development, management development, particularly in relation to HDIs, professional skills, environmental skills, health and safety, foundational learning, RPL, and new and emerging skills. It is important that the CHIETA and industry work together in solving the skills challenges experienced in the Sector. In relation to the occupations identified as scarce in relation to the SIPS, CHIETA will support welders in particular. CHIETA strategic priorities Following an analysis of the sector profile, and the skills demand and supply within the sector, the CHIETA has determined strategic priorities and a set of sector specific skills development objectives and goals that will meet sector needs. In the development of these priorities, objectives and goals various national Government imperatives were taken into consideration. Based on the analysis presented in this SSP, the CHIETA has identified five strategic priorities that will guide its interventions over the next five years. These priorities are: • Enhancing the skills of the existing workforce of the Chemical Sector. • Supporting skills development of new entrants to the Chemical Sector. • Responding to changing sectoral needs and priorities. • Strengthening and expanding strategic partnerships to maximise sustainability and impact of skills development

interventions.

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• Supporting national imperatives in relation to skills development, with emphasis on the Chemical Sector.

The priorities will be attained through 10 strategic objectives which largely mirror the NSDS III goals. These objectives are: i. Establishing a credible institutional mechanism for skills planning;

ii. Increasing access to occupationally directed programmes; iii. Promoting the growth of a public Further Education and Training (FET) college system that is responsive to skills

needs and priorities at sector-, local-, regional- and national levels; iv. Addressing the low level of youth and adult language and numeracy skills to enable additional learning; v. Encouraging better use of workplace-based skills development;

vi. Encouraging and supporting cooperatives, small enterprises, worker-initiated-, NGO- and community-training initiatives;

vii. Increasing public sector capacity for improved service delivery and supporting the building of a developmental state; viii. Building career and vocational guidance;

ix. Support of Medium term Strategic Framework priorities; x. Administration (Governance).

The targets and resource allocation for these objectives are contained in the CHIETA’s Strategic Plan and its Annual Performance Plan.

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7. STRATEGIC OUTCOME ORIENTATED GOALS CHIETA defined ten (10) strategic outcome orientated goals namely:-

Strategic outcome oriented goal 2

INCREASE ACCESS TO OCCUPATIONALLY DIRECTED PROGRAMMES This outcome focuses on the more efficient utilisation of workplace based skills development and increased access to occupational development programmes. This involves the identification of intermediate and high level scarce and critical skills through the CHIETA grant disbursement system. The focal area is to continuously improve the quality of learners in order to enhance opportunities for gainful and sustained employment. Learners in this programme include artisans, learnerships skills programmes, bursaries and internships. Another strong emphasis is placed on recognition of prior learning (RPL) to accelerate the career pathing and advancement of employed and unemployed learners.

This strategic outcome encourages better use of workplace-based skills development. The CHIETA will have to play a significant role in supporting the development of "intermediate" skills - artisanal, technical and related occupations, as well as higher level professional skills. The gazetted Grant Regulation on pivotal grants will be used as the key driver to leverage results in this programme. Employers willing to accept placements of learners and graduates in their workplaces will be able to "supplement the cost of the programme" with a PIVOTAL grant from the CHIETA. This programme will be the leading priority programme of CHIETA to visibly and tangibly ensure the successful implementation of the intent and objective of the new Grant Regulation promulgated on 3 December 2012 supported by other relevant CHIETA programmes as articulated on page 23A and 23B.


ESTABLISH A CREDIBLE INSTITUTIONAL MECHANISM FOR SKILLS PLANNING

The national and Chemical Sector need in relation to Skills Development is researched, documented and communicated to enable effective skills planning within the sector and to establish a credible integrated management information system for CHIETA informing pro-active and sound decision making and skills development interventions for the Chemical Sector and South Africa.

There has long been concern about the veracity of Sector Skills plans and their consequent value as planning tools for their sectors and the country. The CHIETA is confident that we will see sustained improvement in the quality of our information, decision-making relating to skills planning and workforce development. This will be supported by key research partnerships with local and international training institutions to further enrich the CHIETA processes in terms of strategic fore sighting and skills development support while supporting current operational sector demand. The primary delivery areas will an annual, dynamic well researched Sector Skills Plan and sub sector skills plans, sound analysis of submitted workplace skills plan from sector companies, research partnerships producing value adding research reports and tracking and tracing for graduates and all learning programmes and industry / university partnerships.

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PROMOTING GROWTH OF PUBLIC FET (TVET) COLLEGE SYSTEM THAT IS RESPONSIVE TO SECTOR, LOCAL, REGIONAL AND NATIONAL SKILLS NEED AND PRIORITIES Forging stronger synergy between CHIETA and TVET colleges to effectively contribute to the clear linkage of the TVET College system to the world of work within the Chemical Sector The Minister of Higher Education and Training emphasised the need for public TVET’s to become providers of choice and urged SETAs to play a value-adding role in this regard. Of specific importance is the FET turnaround strategy recently concluded indicating the strategic and functional areas of engagements needed. The CHIETA has long recognized the importance of TVET Colleges to support occupationally directed training for our sector. However, we have been concerned about the disjuncture between the TVET College system and the world of work. The CHIETA plans to support college lecturers to understand our qualification needs and to train our sectors’ workforce in areas such as foundational learning, theoretical courses, as well as courses such as the NCV. Linkages and closer collaboration will be supported between College lecturers and industry. In addition to forging stronger synergy between the colleges and SETAs, the CHIETA will support the DHET’s initiatives to review TVET and HET curricula by participating in review exercises to support the DHET to develop a "highly articulated system of qualifications between the TVET and universities programmes", as well as a focus on developing the "subject knowledge, pedagogy, workplace knowledge and experience" of the college lecturer cohort has been included in our Plan. The CHIETA has also planned to provide incentives for workplace experience for students so that they can meet the requirements to graduate from TVET s. In terms of the visibility and presence of CHIETA within specifically rural TVET’s, CHIETA will maintain and further enhance its presence at the Ehlanzeni TVET College and surrounding campuses in Mpumalanga and provide secondary support to other lead SETAs to also ensure CHIETA presence across relevant TVET institutions in South Africa. CHIETA will further identify potential FET partners with a bias towards equity, rural development, green economy and urban development. A strong emphasis will be to assist in continuously improving the quality of FET leadership/management and FET lecturer capacity building. The current and planned CHIETA FET footprint is captured in paragraph 12 of the Strategic Plan.


ADDRESSING THE LOW LEVEL LANGUAGE AND NUMERACY SKILLS TO PROVIDE ACCESS TO ADDITIONAL TRAINING Assisting the young people leaving school and adults with an opportunity to engage in training or work experience in order to improve employability. Many young people who exit school before completing a secondary qualification have little chance of participating productively in the economy and there are approximately 3 million youth aged between 18 to 24 years who are not in employment, in education or training, have a poor educational foundation and are ill-prepared to undertake further learning. South Africa and specifically the CHIETA cannot afford to overlook this problem and the urgent attention it deserves. This programme focuses on youth and adult learners to AET programmes. Strong emphasis is also placed on Maths and Science bridging programme ensure learner readiness. Interventions to support Maths and Science teacher/educator will also be an evolving focal area.

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ENCOURAGING BETTER USE OF WORKPLACE-BASED SKILLS DEVELOPMENT Training of employed workers to address critical skills, improving productivity, economic growth and the ability of the workforce to respond to changes in the labour market In support of this goal, the CHIETA has planned to focus on the ongoing training of employees – in order to improve the overall productivity and performance of the chemical sector and addressing the skills imbalances within the Chemical Industries Sector. We will focus on the critical and scarce skills as defined in the SSP and the development of a work force that can adapt to changes in the labour market. Through our Mandatory and Discretionary Grants the CHIETA will support training of the employed workers and encourage employers to expand such training in order to improve productivity and close any skills gaps that they identify. This work will be guided also by the Organizing Framework of Occupations (QCTO).


ENCOURAGING AND SUPPORTING CO-OPERATIVES, SMALL ENTERPRISES, WORKER INITIATED NGO’S AND COMMUNITY TRAINING INITIATIVES Support of these structures is of importance in order to contribute to economic and employment growth. This is the CHIETA’s Social Development Funding Window which supports Co-operatives, NGOs, CBOs CBCs and small businesses. The CHIETA will support established quality projects that have a proven track record and collaborate with our employers in supporting their existing CSI programmes. Our main aim in this funding window is to utilise the skills development opportunities to empower people to make a sustainable living. Low levels of education and training as well as the lack of standardised, appropriate and accredited training are key constraints to enabling people to create their own opportunities. There are also constraints to up-scaling the contribution of co-operatives, which if properly supported can play an important role in both the mainstream and margins of the South African Chemical Industries Economy.

In terms of small business support specifically CHIETA will maintain and enhance its SMME Voucher programme in providing accredited and focused skills training to small businesses within the chemical sector.


INCREASING PUBLIC SECTOR CAPACITY FOR IMPROVED SERVICE DELIVERY AND SUPPORTING AND BUILDING OF A DEVELOPMENTAL STATE

CHIETA will support the provision of quality education and training interventions within the public sector

A clear focus towards support of the public sector is essential as it is the single largest employer in the country and to positively impact and contribute to sustained service delivery.

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BUILDING CAREER AND VOCATIONAL GUIDANCE Career guidance initiatives to attract the youth and rural students into scarce and critical skills for the Chemical Sector. CHIETA will maintain and continuously update a career guide, inclusive of a Maths and Science career guide for the chemical industry. The CHIETA has planned to develop and disseminate career guides to schools focusing strongly on rural areas and targeting pupils/learners from Grade 9 level in order to influence career choices at an early stage given the fact that school pupils have to make their relevant school subject choices from grade 10 onwards. This career guide will address the career pathways in the chemical industry inclusive of critical and scarce skills.


ADDRESSING THE MEDIUM TERM STRATEGIC PRIORITIES OF GOVERNMENT CHIETA within the ambit of its skills development mandate is responsive to the medium term priorities of government with dedicated projects in support of specifically rural development and the strengthening of the Human Resources and skills base of South Africa.


ADMINISTRATION The purpose of the programme is to instil a culture of good governance within CHIETA within the framework of governance best practices, CHIETA Constitutional Framework, PFMA and relevant skills development legislation. Part of the process is the continuous defining and quality assurance of optimised business processes, knowledge management systems and organisational architecture frameworks in support of the professional and confident discharge of our legislative mandate through directing organisational behaviour in a structured, capacitated and focussed manner.

In terms of abovementioned ten strategic outcomes the detailed table on page 28A and 22B illustrates the integrated linkage of CHIETA strategic goals / programmes and performance focus with the five strategic thrusts of the CHIETA Sector Skills Plan, funding framework as per the promulgated Grant Regulation (R990 of 3 December 2012) and subsequent linkage to Public Educational institution and rural development impact in terms of targets and financial investment.

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8. CHEMICAL SECTOR PRIORITY AND CRITICAL SKILLS WITH CHIETA INTERVENTIONS PER STRATEGIC PROGRAMME The table on pages 29A and 29B illustrate priority and scarce skills in the chemical sector.

8.1 CHIETA followed a detailed and focused analysis of data forthcoming from the Workplace Skills Plans of chemical

sector companies and stakeholders input. In order to arrive at the top priority and skills requirement for the chemical sector the following was considered within a weighted statistical analysis model, namely:

• Employees indicating if an occupation is priority and / or scarce to them. • Number of employers indicating criticality and scarcity of an occupation. • Number of nine CHIETA sub-sectors indicating if an occupation is priority and / or scarce to them. • Current vacancy rate of each occupation. • Occupations historically funded as priority and scarce to establish historical patterns. • Analysis of 2014/15 pivotal applications received from member companies. • Qualitative input from national and decentralised stakeholder forums. • Linkage to DHET top 100 scarce skills list. • Linkage to the SIPS priority skills list.

8.2 In following this methodology while also recognising that it is always an evolving process CHIETA identified the

undermentioned (62) priority and scarce skills for the chemical sector and mapped them accordingly to CHIETA strategic programmes, anticipated learning interventions, pre-determined targets and budget allocation.

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9. TRANSFORMATIONAL FOCUS AND CONTRIBUTION TO NSDSIII

Overall reporting on the Chemical Sector’s progress in relation to transformation is difficult as, in terms of the Commission for Employment Equity’s (CEE) classification, most employers in the CHIETA scope of coverage are subsumed within Manufacturing for the purposes of EE reporting. In addition, the current (2012) CEE Annual Report, the race and gender profile of all employers who submitted EE reports is not given for the Manufacturing Sector as whole, but only for certain occupational groups within the Manufacturing Sector. In order to get some picture of the progress of the Chemical Sector in meeting transformation targets, the race and gender profile of the sector is compared to the profile of all private sector companies who submitted EE reports for the 2011/2012 cycle. The Chemical Sector is over-represented in terms of White Males and White Females, and significantly under-represented in terms of African Females.

This section focuses on the contribution of the Chemicals Sector to the strategic areas of focus for the NSDS III.

A more detailed analysis of the equity profile of the Chemical Sector per each of the nine sub sectors are contained in the CHIETA Sector Skills Plan.

Race

There are real challenges in relation to the equity representation in the sector, particularly in certain key occupations. In addressing this, programmes and projects will have a strong focus on the training of HDSAs – especially in the occupational categories in which designated groups are under-represented. The CHIETA records and reports on its learners in terms of the racial categories prescribed by employment equity legislation.

Class

It is suggested that this sector’s contribution in terms of this aspect of equity should be measured and reported on in terms of the level of education of the employees in the sector, as well as the numbers of workers within each occupational category as defined by the OFO.26

Gender

There is significant work to be done on correcting the gender imbalances in the sector. The CHIETA will strive to ensure that at least 50% of all learners on CHIETA programmes are women.

Geography

NSDS III places special emphasis on skills development that will support the economic development of rural areas. As noted above, due to the nature of the industries in the sector, the CHIETA’s activities tend to be focused in urban areas. However, specific work is being done to support FET Colleges that serve students from more rural areas. In addition, the CHIETA bursary programme considers the originating town of potential students in making awards.

Age

Most of the learning programmes supported by the CHIETA focus on youth. Learners’ ages are recorded by the CHIETA and reporting can take place in terms of the ages of learners.

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Disability

There are only 892 disabled employees in the Chemical Sector, or less than 1% of total employees. Stakeholders noted that, due to health and safety issues, it was difficult to employ disabled people (depending on their disability) in certain occupations, particularly those relating directly to production. However, there was an acknowledgement that more effort needed to be made with regard to identifying those occupations in which people with disabilities could be employed and making specific efforts regarding recruitment of people with disabilities for these occupations. In addition, CHIETA will work with stakeholders on training around disability awareness. CHIETA is supporting projects aimed at people with disabilities through the discretionary grants. HIV and AIDS

The need for relevant education and skills interventions in regard to HIV/AIDS remains a priority. The CHIETA has been implementing HIV/AIDS workplace programmes for companies in its sector from as early as 2004. In 2011/2012 HIV/AIDS workplace programme indicate that over 1100 employees in the sector were trained on a range of HIV/AIDS-related training programmes, including peer educator, counsellor, manager and awareness programmes. In addition, research was conducted among 40 companies across the sector on the potential economic impact of HIV/AIDS, as well as the Knowledge, Attitudes and Practices of employees, in order to benchmark trends and provide insight into the impact of HIV/AIDS on scarce skills in the sector. In 2012/2013, the CHIETA launched an HIV/AIDS workplace programme which includes capacity building and workplace research for a further 50 companies in the following sub-sectors of the chemical sector: Petroleum & Base Chemicals, Speciality & Surface Coatings, Explosives & Fertilisers, Pharmaceuticals & FMCG, and Glass. This programme is continuing and is expected to reach of over 1000 employees in the current financial year alone.

10. RURAL DEVELOPMENT FOCUS AND SUPPORT TO RURAL LEARNERS

The CHIETA approach to rural development cannot be seen in isolation and forms an integral part of CHIETA interventions across several of our strategic outcomes / programmes. One of NSDS III key pillars and also that of CHIETA is an increased focus on skills for rural development to support government prioritisation of rural development. The following CHIETA Programmes are relevant towards our rural development focus • Programme 1 on Research and Skills Planning will focus on a well-researched SSP indicating scarce and critical

skills needs to be sourced from rural areas. • Programme 2 on Occupationally Directed Programmes with rural beneficiaries from unemployed learnerships,

Skills programmes, bursaries, internships and artisans. • Programme 3 on FET colleges where FET graduate placement will benefit rural learners. • Programme 4 on low level youth / adult numeracy and language skills where rural learners will also benefit from

AET / ABET Training and Maths and Science bridging programme. • Programme 6 on support to co-ops, NGO’s and Small Business will also benefit rural learners and communities. • Programme 8 on career guidance for grade 9 – 12 learners from rural areas. • Programme 9 deals with strategic projects in support of Government Priorities where partnerships will be forged

with key stakeholders in the Chemical Sector to roll out programmes and projects through their programme as part of their corporate social investment programme.

The integrated table on page 28A and 28B provides clear articulation of relevant targets and financial investment in the respective programmes. In total 5 246 rural development learners will be targeted to benefit from CHIETA interventions. In addition rural communities will also be supported through 30 co-operatives, 27 NGOs/CBO’s and 90 SMMEs.

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11. GREEN SKILLS / OCCUPATIONS

As the OFO is used to collect and reflect labour market information on skills needs, it has been agreed to also identify and reflect “green occupations” on the OFO 2012 to enable SETAs to better reflect skills demands in support for a green economy in their future Sector Skills Plan updates. DHET, in The Organising Framework for Occupations (OFO) 2012 applied the following definition to identify and reflect occupations as “green” on the OFO 2012: Green occupations are those that have as their direct purpose the nationally identified priorities and initiatives of reducing negative environmental impact and contribute sustainably to environmental, economical and social sensitive enterprises and economies. This includes occupations that directly contribute to the maintenance of processes related to these national initiatives to: • Develop and adopt renewable sources of energy • Reduce consumption of energy, fossil fuels and raw materials • Enhance energy and resource efficiency (Ref: DHET The Organising Framework for Occupations (OFO) 2012)

12. PUBLIC FET AND HET COLLABORATION 12.1 Number of Agreements between CHIETA and FET Colleges and HET’s

Significant progress has been made by the CHIETA regarding partnership agreements with Public FET Colleges, Universities and Universities of Technology. The following table provides an overall breakdown of these agreements:

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FET college Province DG Interventions DG Strategic Projects (2013 - 2014)

Accredited providers of off

the job practical:

Designated Trades

DTTC: Designated

Trades

Qualification / Programme (NQF)

Planned Programmes

Coastal FET College: Durban City Campus

KZN Electrical Engineering Engineering and Related Design

Electrician Turner

Coastal FET College: Swinton Campus

Boilermaker Motor Mechanic Turner

Gert Sibande FET college MP Electrical Engineering Learnerships

Chemical Electrician Trade Certificate NCV Level 4: Engineering FETC Learnership Engineering

Completion of current programme

Northlink FET College: Belhar Campus WC

Instrument Mechanician NC - Boilermaking Level 2 NC - Fitting Level 2 NC - Welding Level 2 Electrician Fitter-Welder Electrical Engineering Engineering and Related Design Other (Management) Other (Programme based on 6 Unit Standards)

Infrastructure for Instrument Mechanicians, Millwrights and Mechatronics Facility The establishment of an instrumentation laboratory for the training of technicians is the first of its kind at an FET college in the Western Cape. The project was the result of a need identified at the Chevron Refinery in Cape Town. The laboratory will serve the petro-chemical refineries and the pharmaceutical sector in the Western Cape.

Electrician Electrician Completion of current programme

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Northlink FET College: Bellville Campus

Boilermaker Welder Diesel Mechanic Motor Mechanic

Boilermaker Welder Diesel Mechanic Motor Mechanic

Northlink FET College: Wingfield Campus

Fitter Turner

Fitter Turner

Port Elizabeth FET College EC

Electrician Fitter Turner Welder

Sedibeng Training Centre / Sedibeng FET College GP

Boilermaker* Fitter* Rigger* Welder* Turner* Electrician*

College of Cape Town: Althone Campus

CPT

Electrician Other (Fitter) Other (Upskilling of Technical Academic Staff) Welder Turner Other (ELECTRICAL SKILLS TRAINING LEVEL 1-3) Engineering and Related Design Electrical Engineering Engineering and Related Design

Motor Mechanic

Motor Mechanic

College of Cape Town: Pinelands Campus Electrician Electrician

College of Cape Town: Thortone Campus

Fitter Turner Welder

Fitter Turner Welder

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East Cape Midlands FET College: Charles Goodyear Campus

EC

Fitter Welder Turner Motor Mechanic

Welder

Newcastle Training Centre (Majuba FET College)

KZN Other (Various) Other (RPL) Other (WIL)

Boilermaker Electrician Fitter Instrument Mechanician Rigger Turner Welder

Boilermaker Electrician Fitter Instrument Mechanician Rigger Turner Welder

Umfolozi FET College: Richards Bay KZN

Electrician Fitter and Turner Welder Electrical Engineering Engineering and Related Design

Learner Maths, Science & English upgrade

Electrician Fitter Welder

Electrician

Trade Certificate NCV Level 4: Engineering FETC Learnership Engineering Maths & Science NSC

False Bay College WC

Other (Management) NC - Boilermaking Level 2 NC - Welding Level 2 Other (Mechanical Engineering NQF 2) Other (Skills Programmes - Installations) Other (CMBT fitting and turning level 1-3) Other (CBMT Electrician 2-3)

Electrician Fitter Turner Welder

Trade Certificate NCV Level 4: Engineering Practical CBMT Certificate

Tshwane South College for FET GP

Boilermaker Electrician Fitter Instrument Mechanician Turner

West Coast FET College: Atlantis Campus WC

Fitter and Turner Welder Other (Project

Fitter

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West Coast FET College: Vredenburg Campus

Management) Welder

Esayidi Further Education and Training College

KZN

Occupational Directed Education and Training Practitioner Level 4 Welder Engineering and Related Design

Establishment and training of 10 rural cooperatives within the Chemical Sector for the Ugu and Sisonke Districts

Registered and functional cooperatives

Flavius Mareka FET College FS Engineering and Related

Design

Vuselela FET College

NW

Civil Engineering and Construction Electrical Engineering Engineering and Related Design

Maluti FET College

FS

Civil Engineering and Construction Electrical Engineering Engineering and Related Design

Ehlanzeni FET College

MP Other (MANCOSA)

Internships, forging partnerships between the Public FET College with local industry resulting in increased capacity to meet industry needs, and providing platforms for young people to obtain additional vocational skills and work experience, entering the labour market with marketable skills, and obtain employment

Workplace Exposure

WESTERN COLLEGE FOR FET GP Engineering and Related

Design

NORTHERN CAPE RURAL FET COLLEGE

NC Other (Engineering) Other (Management)

Maths and Science

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Boland College

WC

Maths and Science bridging programme to enter artisan programmes and assistance of matric learners to obtain university entrance

Maths & Science NSC

Elangeni FET College

KZN

Learnerships - Welding, Electrical Engineering and Refrigeration, and FET work placement

Trade Certificate NCV Level 4: Engineering

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12.2 Nature of agreements between CHIETA and Universities and Universities of Technology

Name of University / UOT Province Focus Planned Programmes

Gauteng and Central

1. University of the Witwatersrand (Wits) Gauteng

WITS / SAPIA Department of Energy & CHIETA Partnership

Continuation and expansion of programme

Bsc. Chemical Engineering and Msc. Petroleum Engineering

WITS Business School- Management Advancement Programme, National Diploma in Management and Transformational Framework (BBBEE codes) for learners from Chemical Sector companies.

Support Wits Real Centre Masters, Doctorates, and Post Doctorate graduates in core labour market and TVET themed research

Maths and Science teacher capacity building in Limpopo Province

Provide education and skills development at High Education level for M.Sc. Chem Eng. in the field of Petroleum, Oil and Gas Engineering at NQF 8, and develop 121 new and practicing managers in the two key CHIETA sub sectors (Oil and Gas; Pharmaceuticals)

2. University of South Africa (UNISA) Gauteng Workplace Experience for Chemical Engineering Students - School of

Engineering Dept. Continuation of programme

3. University of Johannesburg (UJ) Gauteng Trade Union Learning Practitioner: customised capacity building programme aimed at capacity building trade unionists for skills development facilitation.

Under development

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4. University of Limpopo Limpopo

Infrastructure development to build a University Instrument Laboratory and purchase a mobile Pharmaceutical Laboratory and Learner support (Maths and Science for rural schools). Transformational Leadership for Managers in FET Colleges Maths and Science support to rural learners through the rural support outreach programme

Continuation of programme

5. University of the Free State (UFS) Free State Maths and Science support to rural learners through the rural support

outreach programme Continuation of project

6. Tshwane University of Technology (TUT) Gauteng

7. University of Pretoria (UP) Gauteng Toxicology

Western Cape

1. University of the Western Cape Western Cape

Maths and Science Tutorial Programme for grade10,11&12

Completion of current programmes

Building the University's capacity to offer career and Vocational Guidance to school learners in outreach projects

Retaining Undergraduate Student to Graduation

Facilitating Access to Honours Studies in Scarce Skills Areas

Support Masters graduates in TVET enterprise case studies

Promote postgraduate study as a critical step in developing a national research and innovation ethos, and securing a confident and competent cohort of learners equipped to pursue post-school study in Mathematics and Science related fields

2. Cape Peninsula University of Technology (CPUT) Western Cape

Workplace experience

Completion of current programme

Upgrading of Industry Mentors to assist Experiential Learners at the Workplace

Experiential Learning for ND Chemical Engineering (NQF 6) & National Diploma Analytical Chemistry(NQF 6)

of 116

Maths and Science support to rural learners through the rural support outreach programme and creation of training opportunities for workplace experience internships

3. University of Cape Town (UCT) Western Cape IPAP lab

Kwa Zulu Natal

1. Durban University of Technology (DUT) Kwa Zulu Natal

CHIETA representation on Chemistry Advisory Board

Continuation of programmes Workplace experience in Analytical, Chemical, Industrial, Electrical, and Mechanical Engineering, as well as Biotechnology.

2. Mangosothu University of Technology (MUT) Kwa Zulu Natal

A Chemical Technology Station has been established at Mangosuthu University of Technology (MUT) in Durban which is pioneering expertise in processing of chemical products for chemical engineering students for example, soap and detergent-making. CHIETA has awarded MUT a Discretionary Grant and students have been given learnership grants and workplace experience required to obtain their qualification. Students have also been exposed to real workplaces in the industry in the area. Their processes also encourage SMME development so that possible business start-ups become a reality.

Completed

SME Co-operative Development, Mentorship programme, Business Management and Training for 10 rural co-ops.

3. University of Kwa Zulu Natal (UKZN) Kwa Zulu Natal Shop steward training in occupational health and safety Completed

Port Elizabeth

1. Nelson Mandela Metropolitan University (NMMU) Port Elizabeth

With DEDAT (Department of Economic Development and Tourism), support Masters, Doctorates and Post Doctorate graduates in the Technical Evaluation and Socio-Economic Analyses of Shale Gas in the Eastern Cape

of 116

CIPSET - Research Innovention (Bursaries via NSFAS)

Eastern Cape

1. Rhodes University Eastern Cape Support Masters graduates in the Chemical sector and green skills Continuation of programme

of 116

Bursary Programme Support The CHIETA has established a bursary programme to offer financial assistance to young South Africans who qualify to undertake full-time, pre or part graduate studies at any accredited South African Educational Institution in primarily the following and other relevant fields: Analytical Chemistry Biochemistry Chemical Engineering Biomedical Technology Mechanical Engineering Polymer Technology Civil Engineering Operations Management Electrical Engineering Environmental Science Industrial Engineering Bachelor of Science The bursaries are open to South African citizens between 16 and 35 who do not have any other bursary funding. Applicants need a minimum achievement Level 6 pass in Grade 12 Mathematics and Physical Science. The APP 2014/15 indicates the targets on specifically under programme 1 and programme 2 of the APP. 13. ARTISAN RELATED TRAINING AND RECOGNITION OF PRIOR LEARNING (RPL)

The CHIETA has reviewed the DHET draft guidelines for the generic national artisan learner grant funding and administration system and in principal supports the implementation thereof as per the recommendations outlined in the guideline. We have reviewed our business strategy, funding priorities as per the NSDS 3 as well as the affordability and have committed a sizeable allocation for Artisan development over the next financial year as per the requirement of the first process step of the draft proposed annual process. It is further envisaged that the total number of new artisan learner’s (employed and unemployed) from qualifying employers for the next financial year will be in the region of 2100. This projection is based on historical industry trends as well aggregate sector information collated from the annual on line WSP / ATR submissions and the Sector Skills Planning (SSP) process. The above number of potential artisans is at this stage only a projection and CHIETA therefore fully supports the second process step of the annual process (Mini Task Team Stakeholder Consultation Process), which will confirm the actual number of artisans per year based on applications from qualifying employers. It is however crucial that further artisan specific research is commissioned in the chemicals sector and the CHIETA has commenced with this by conducting sector specific skills surveys and skills audits. We therefore believe that relevant and current research must establish the baseline for the sector demand for artisans and future projections. It is critical that the sector demand is linked to actual training and supply of artisans not only to the chemical and related sectors, but also nationally across all sectors in the South African economy that require artisans. The CHIETA has assessed the component cost of the RPL process over the last few years and has determined that the overall cost of the section 28 RPL process is substantially lower than the cost of the full section 13 program. The anticipated artisan targets are captured under programme 2 in the APP under Occupationally directed programmes.

The CHIETA RPL target for artisans and learnerships is 1835 learners.

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The CHIETA’s Annual Process for a Generic National Artisan Learner Grant Funding & Administration

STEP

ACTIVITY TIMEFRAMES GUIDELINES

1

Budgeting

The CHIETA and NSF establishes the total rand value budget for Artisan Development for the next financial year and submits to DHET for Consolidation to establish Total Available National Artisan Development Budget

31 October Each Year

Strategic priorities as determined by the Government Priorities and the CHIETA Governing Board .NSF also have strategic priorities

2

The CHIETA will issue a call for artisan learner grant applications from QUALIFYING CHIETA EMPLOYERS for funding of new artisan learners for registration from April the following year for all trades as listed in the Gazette. SETAs submit a summary of applications received to DHET for consolidation onto a single national database of approved artisan learner workplaces for use in planning spatially based capacity building initiatives. Registration from April2013 CHIET A & DHET consolidate all applications into a single national database of approved workplaces and applications

30 November Each Year

Accept applications ONLY from workplaces approved by the CHIETA. Application must be based on V2012 OFO Codes per Gazette Trade List. Must include proposed date of registration of the learner. Can also include employed RPL Candidates as well as unemployed learners that are to be developed by the employer.

3

The new artisan learner grant for 2014 – 2015 will be R 46 450 per new artisan learner per annum (as per the Artisan Learner Grant Funding and Admin Model) with SETAs and NSF allocating a commitment R 139 350 per each new artisan learner they can fund. The commitment must be approved by relevant Accounting Authority. The new learner grant must be increased annually by an escalation percentage determined by DHET in collaboration with SETAs and NSF to ensure sustainable, guaranteed funding regime. CHIETA in consultation with all ATD Stakeholder Forums determines total numbers of new learners that can be funded based on total budget

31st January Each Year

This is the most complicated of the steps and needs considerable time to for consultation and discussion among stakeholders. The four existing ATD Forums will be the basis of consultation with final recommendations emanating from the Policy Generic National Artisan Learner Grant Funding and Administration System

4

The CHIETA will determine allocations of grants to qualifying employers based on SETA Board criteria and advise employers. NSF determines allocations to qualifying employers based of NSF criteria either through the CHIETA or direct with employers and advise the CHIETA and/or employers.

28 February Each Year

These rules and guidelines will be largely determined by the decisions made in step 3 but critical that allocations ONLY be made to qualifying employers.

5

The CHIETA and NSF manages, pays and reports on the disbursement of the R 139 350 grant per learner based on a based on 4 tranche disbursement framework described in detail in the model.

Each payment subject to compliance to

framework.

Subject to the CHIETA Employer Artisan Grant SLA. This must cover provisions for the payment of learner allowances. Monitoring process by the CHIETA is critical to ensure that the Employer utilises funds correctly.

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14. GOVERNMENT MACRO STRATEGIC AND POLICY FRAMEWORK LINKAGES

CHIETA fully supports and endorses the President’s outcomes approach to planning government’s work as is evidenced by the detailed strategic plan and annual performance plan of the CHIETA. The CHIETA management and Board continuously monitor and report on progress against CHIETA’s strategic plan.

14.1 CHIETA Contribution to Presidential Outcomes for Minister of Higher Education and Training

The Minister of Higher Education and Training is accountable for Outcome 5 – “A skilled and capable workforce to support an inclusive growth path” that has the following five outputs and measures. Refer to page 14 of the Strategic Plan in terms of CHIETA’s support and alignment.

NO OUTPUT CHIETA CONTRIBUTION

1

Establish a credible institutional mechanism for skills planning

• Develop a standardised framework for the assessment of skills shortages and vacancies in the country.

CHIETA has submitted an SSP to the DHET that is well-researched and supported by stakeholders. CHIETA is continuing to build a credible institutional mechanism for skills planning through a range of interventions including (See programme 1 in APP 2015/16)

2

Increase access to programmes leading to intermediate- and high-level learning

• Provide young people and adults with foundational learning qualifications and increase ABET Level-4 entrants from a baseline of 269 229 to 300 000 per year.

• Improve NCV success rates, prior to massification of the programme. NCV enrolments across Levels 2 and 3 in 2009 were 122 921, of which 8.9% achieved certification at Level 2; 9.9% at Level 3; and 21.5% at Level 4.

• Create ‘second-chance’ bridging programmes (leading to a matric equivalent) for the youth who do not hold a senior certificate.

• Provide a range of learning options to meet the demand of those with matric but who do not meet requirements for university entrance.

CHIETA will continue to support ABET training in the sector, support the delivery of the FLC by training FLC facilitators and providing grants to companies in the sector who train FLC learners. Details, including targets, are contained in the Strategic Plan and APP of 2015/16. (See programme 4 in APP)

3

Increase access to occupationally directed programmes in needed areas and thereby expand the availability of intermediate-level skills (with a special focus on artisan skills)

• Increase the number of learnerships to at least 20 000 annually by 2014.

• Produce at least 10 000 artisans annually by 2014

CHIETA continues to support Learnerships/ apprenticeships for artisans and Learnerships for non-artisans. Details, including targets, are contained in the strategic plan and APP 2015/16 in programme 2.

44

• Put in place measures to improve the trade-test pass rate from its 2009 level of 46% to 60% by 2014.

• Increase the placement rate of learners from learnership and apprenticeship programmes, as well as learners from NCV programmes, who require workplace experience before being able to take trade tests or other summative assessments. At least 70% of learners should have a placement every year.

• By 2011, establish a system to distinguish between Learnerships up to and including Level 6 and above.

• Increase the proportion of unemployed people, as compared to employed people, entering Learnerships from the current level of 60% to 70%.

4

Increase access to high-level occupationally directed programmes in needed areas

• Increase the graduate output in engineering sciences to 15 000 per year by 2014.

• Increase the graduate output in animal and human health to over 15 000 per year by 2014

• Increase the graduate output in natural and physical sciences to 8 000 annually by 2014

• Increase the graduate output in teacher education to 12 000 per year by 2014

CHIETA continues to support bursaries at public HET Institutions with chemical--related faculties, workplace experiential learning linked to public HET diplomas, and Internships linked to public HET degrees and diplomas. (See programme 1 and 2 in APP 2015/16)

5

Research, development and innovation in human capital for a growing knowledge economy

• Increase the output of

o Research masters to 4 500 annually by 2014,

o Doctoral graduates to 1 350 annually by 2014

o Post-doctoral graduates to 100 annually by 2014

• Provide increased support to industry/university partnerships.

• Increase investment in research and development, especially in the science, engineering and technology sector.

See Programme 1 in CHIETA APP 2015/16 dealing with Research and Skills Planning

14.2 The under-mentioned table further illustrates CHIETA’s linkage of strategic objectives to Macro strategic

priorities of Government.

45

NO

NSDS 3 GOALS CHIETA STRATEGIC OBJECTIVES PROJECTS / PROGRAMMES HRD - SA

NEW GROWTH PATH

SKILLS ACCORD

RURAL DEVELOPMENT

STRATEGY IPAP 2 MTSF

NATIONAL PRIORITIES

1

Establishing a credible institutional mechanism for skills planning

To provide a mechanism that will provide credible information with regards to the supply and demand for skills within the CHIETA & communicate emerging trends to inform planning to meet the Chemical Industries skills needs

On line source data WSP & data analysis linking with the SSP OFO linking and Job Profiling Skills audit and skills gap analysis Tracking, Tracing and monitoring of learners, internships, workplace experience Impact analysis and ROI On line platform accessible to industry, learners, FETCs, Providers and HEI’s

Establishing effective and efficient planning capabilities for the successful implementation of the HRD-SA. To improve South Africa’s performance in areas of teaching, research, innovation and the commercial application.

To improve SETA governance and financial management as well as stakeholder involvement. Align training to the New Growth Path and improve Sector Skills Plans

Skills development

The recent lowering of import tariffs on polymers and other inputs will contribute towards more competitive input prices. Products of the primary chemical sector are the basis for almost every manufacturing activity in South Africa. Hence the pricing practices in the sector significant impact on broader manufacturing competitiveness. Assessment of economic cost/benefits of proposed new liquid fuels projects. Improve trade balance, employment, investment and carbon emissions.

Improve the health profile of all South Africans

Build cohesive, caring and sustainable communities

2

Increasing access to occupationally-directed programmes

To fund projects that facilitate agreements between the CHIETA and university faculties to support improved entry to priority PIVOTAL Programmes, increased work experiential learning opportunities and access to post graduate work experiential opportunities

On line accessible institutional mechanism for learners, industry and educational institutions Promotion of agreements between CHIETA and Universities, FET’s and UOT’s faculties Enhanced entry to priority PIVOTAL programs Increase in work integrated and experiential learning

We will urgently overcome the shortages in the supply of people with the priority skills needed for the successful implementation of current strategies to achieve accelerated economic growth

Expanding the level of training using existing facilities more fully. The CHIETA agrees to increase the numbers of artisans as well as other scarce skills.

Skills development Improve service delivery to ensure quality of life

Building a developmental state, including improvement of public services and strengthening democratic institutions.

3

Promoting the growth of a public FET college system that is responsive to sector, local, regional and national skills needs and priorities

To build capacity within FET’s, Universities and UoT’s for training provision. The CHIETA will identify FET Colleges with relevant Programmes within the Industry to offer vocational courses and work experience for college learners.

Expanding capacity of training provision within public FET’s Identify relevant programs within industry and offer vocational courses and work experience Possible exchange programs Promote communication & maths through FTC Rural infrastructure and capacity development.

We will ensure that the public sector has the capability to meet the strategic priorities of the South African Developmental State.

To make internship and placement opportunities available within workplaces. The CHIETA will facilitate a programme of placement with industry annually

Improve service delivery to ensure quality of life Skills development

Massive programme to build economic and social Infrastructure Build cohesive, caring and sustainable communities

46

4

Addressing the low level of youth and adult language and numeracy skills to enable additional training

To develop a strategy to provide opportunities for youth within the Chemical Sector to engage in training and workplace experience to improve their employability

Increasing employability of youth within chemical sector through training and workplace experience to increase employability Functional ABET

To accelerate the implementation of training programmes for the youth which are focused on employment creation.

Improving the role and performance of FET Colleges. All constituencies must support the new focus on FET Colleges and on ABET.It is agreed that the FET colleges will be the preferred training providers for skills training programmes

Improve service delivery to ensure quality of life

Improve the health profile of all South Africans

5

Encouraging better use of workplace-based skills development

Enhance productivity and performance in the workplace and increase the overall growth and development of the economy.

Enhance productivity and performance in the workplace

Accelerate overall economic growth and development

Creating mobility and portability of career paths

To ensure that skills development planning is credible, integrated, coordinated and responsive to social and economic demands

To improve the funding of training and the use of funds available for training and incentives on companies to train In order to improve the level and quality of training: we ll request and motivate large enterprises (employing more than 300 employees) to spend at least 3 % of payroll on training



Speeding up growth and transforming the economy to create decent work and sustainable livelihoods

6

Encouraging and supporting cooperatives, small enterprises, worker-initiated, NGO and community training initiatives

To support Cooperatives with skills training and development. Specific sector projects are established to develop SME’s and Civil society(NGO’s,CBO’s,NLPE’,etc)

Specific sector projects supporting development / growth of informal sector, e.g. OHS related Incentivisation and support of entrepreneurship and business sustainability Collaborative Partnership with institutions such as SEDA and industry associations

We will urgently implement skills development programmes that are purposefully aimed at equipping recipients/citizens with requisite skills to overcome related scourges of poverty and unemployment.

1.Cooperative development 2.Explore and support non-farm economic activities 3.Stimulate agricultural production

Comprehensive rural development strategy linked to land and agrarian reform and food security Build cohesive, caring and sustainable communities

7

Increasing public sector capacity for improved service delivery and supporting the building of a developmental state

To develop projects to increase specific skills levels of public service employees. To engage in sector economic and industrial planning.

Comprehensive career guide for chemical industry occupations Mapping of occupational learning pathways Prioritisation and promotion of maths and science and training of educators (Grade 10-12) Vocational guidance for youth Careers mapped to qualifications – greater mobility and progression

We will ensure improved universal access to quality basic education and schooling (up to Grade 12) outcomes for the poor.

The CHIETA support the efforts to ensuring that the education and skills base of the young people not in employment.

Institutional capacity development

Strengthen the skills and human resource base Build cohesive, caring and sustainable communities

47

8

Building career and vocational guidance

To improve the emphasis on CHIETA career guidance and vocational guidance for youth. Careers are mapped to CHIETA Qualifications to enhance greater mobility and progression so as to promote comprehensive career development.

Cooperate with PSETA Promote use of underutilized public training centres Cooperate on artisan training Promote skills development in unison Enhance the levels of service delivery through skills and training.

We will ensure that young people have access to education and training that enhances opportunities and increases their chances of success in further vocational training and sustainable employment.



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15. CURRENT PARTNERSHIPS WITH GOVERNMENT

CHIETA engagement with government departments

Dept. Focus of Engagement Description

DoE Collaboration on strategic skills and capacity imperatives for the energy sector, including the department’s own internal skills needs

Support of learners on Project Management learnerships, Public Administration learnerships, learners on Internal Auditing programme, learners in Petroleum Engineering bursaries and 22 DoE employees on skills programmes.

DEA Collaboration on implementation of environmental issues relevant to the sector and DEA skills needs

Pro-active planning for current and future skills given green economy imperatives related to the chemical sector

16. ORGANISATIONAL AND PERFORMANCE ENVIRONMENT The performance environment in which CHIETA must contribute is clear and explicit. Of critical importance for CHIETA is to clearly illustrate the translation of the macro and high level strategic outcomes and output into cross cutting organisational programmes supported by measurable performance indicators and pre-determined targets for each performance cycle and financial year. This illustrates clearly the contribution from CHIETA supporting government and chemical sector priorities in such a manner that sustainable impact can be demonstrated.

The CHIETA Governing Board mandated a new organisational architecture arrangement to optimally support delivery on NSDS III. Specific emphasis was placed on the importance of Research and Skills Planning, Multi Stakeholder Partnerships within best practice Governance and Financial Compliance Management Frameworks. The CHIETA Annual Performance Plan targets are clearly linked to CHIETA Business Unit targets and individual performance agreements to ensure common focus, ownership and synchronized organisational behaviour towards target and performance achievement. Monitoring and evaluation are done continuously to measure progress and identify challenges to ensure pro-active intervention when and where needed. CHIETA has demonstrated over a substantial number of financial years our commitment to delivery and performance.

17. RESOURCE CONSIDERATIONS

17.1 People Management

CHIETA aims to establish a challenging, rewarding and fulfilling work experience that leads to a learning, high

performance organisational culture.

The CHIETA strategy focuses on:

Attracting;

Engaging;

Recognising; and

Rewarding talented employees.

It continually seeks to develop and implement relevant and legally compliant HR Policies, systems and good practice.

It further seeks to continually provide a continuous learning and development opportunity that leads to individual and

organisational growth.

49

17.2 Staff Turnover

Staff turnover in general on all collective levels of CHIETA is low with many staff members having considerable years’

service with CHIETA which articulates clearly organisational stability to ensure delivery on strategic objectives.

17.3 Equity

The gender ratio of the CHIETA is 55% female and 45% male, of whom 11% comprise of Indian, 6% white, 8% coloured

and 75% African people. All races and genders are represented on the majority of the occupational levels in the

organisation. CHIETA view diversity as a business asset which will contribute significantly towards stakeholder

delivery.

17.4 Training and Development

Through employee personal development plans forthcoming from the Performance Management processes of CHIETA

staff members and line managers agree on developmental areas to ensure a culture of continuous learning for the

ultimate benefit of organisational performance and self actualisation.

17.5 Recruitment

The main objective of recruitment at the CHIETA is to appoint candidates with skills and attributes specific to the

organisation’s needs and who will add the highest value. This is done by conducting competency-based interviews and

assessments. Recruitment decisions are also informed by the organisation’s current equity profile.

17.6 Employee Wellness

CHIETA has partnered with ICAS as our organisational wellbeing partner to assist in the physical and emotional

wellbeing of our staff, knowing fully that employees whom are contempt are productive and performing staff

members.

17.7 Financial Resources

The following are assumptions upon which the CHIETA’s budget is based:

The budget is based on a mandate that must be performed; Assumption on staff establishment; Assumption for salary increases; Performance and recognition for all levels; Inflation scenarios on income; Inflation of costs; Assumptions on Government/Levy funding; Equipment replacement strategy; Confirm whether the estimated budget presented will enable the SETA to implement activities; Cost saving measures; and Reprioritisation of resources.

50

The budget is programme-based; funds are allocated to different initiatives based on priority and affordability. The priorities, upon which the budget allocations are effected, are aligned to the NSDS III. Annual targets are set after reviewing the performance of the previous year and budget availability. A conservative approach has been implemented in setting the assumptions upon which the budget is based. This has been done to ensure that in the event of unanticipated occurrences, the budget will still remain feasible and delivery on mandate is not compromised. Discretionary Grants budgeting is in line with the costs of training to be provided on the committed initiatives. Mandatory Grants projections are based on estimated levy income and historic claim ratio. Historically, administrative expenses have been within the legislative threshold of 10% and this trend has been projected going forward.

The detailed CHIETA budget per each strategic programme is included in the Annual Performance Plan (APP) for 2015/16.

17.8 Quality Management System

The CHIETA is also revamping its total QMS function focusing best practice standards in support of delivery areas. The QMS framework will consist of:

i. Define, outline and document various processes within CHIETA;

ii. Align Quality Management System to the NSDS III framework; iii. Identify and document statutory/regulatory requirements related to the CHIETA sector; iv. Conduct internal quality audits to verify compliance to documented procedures; v. Policies, guidelines, regulations and acts related to CHIETA sector; and

vi. Provide recommendations for improvements where required.

17.9 Performance Monitoring and Evaluation

Performance monitoring and evaluation will be done pro-actively monthly and reported on quarterly to the Governance Strategy of CHIETA. Performance monitoring and evaluation processes and accurate reporting will also be supported and quality assured by Internal and External audit. A new Performance Information Policy Framework adopted by CHIETA will further assist in clear role clarification and accountability in all collective levels in the organisation.

18. IT Governance IT forms an integral part of the Strategic and Business Planning processes of CHIETA. An integrated and stabilised IT Platform across all four platforms of windows, MIS, Pastel and VIP are ensured to contribute to the delivery of the 56 targets within the APP 2015/16. A detailed IT Strategy and ICT Governance framework supports the CHIETA Strategic Plan and APP 2014/15. The IT Strategy focuses on important areas of inter alia the following:- i) IT Governance Framework aligned to the Public Sector and King III IT Governance protocol / framework ii) IT Steering Committee oversight of system integration in support of performance deliverables iii) Regular reporting to Governance Structures iv) IT Security protocols and IT Policy Framework v) IT Business Continuity vi) IT Risk Management vii) IT investment and expenditure; and viii) IT asset management

19. Risk Management

Risk Management forms an integral part of the CHIETA Strategic and Operational business planning processes. CHIETA maintains a strategic and operational risk register which clearly defines potential organisational risks that can hinder / obstruct the optimised and sustained delivery of service and performance articulated in the Strategic Plan if not managed effectively within an integrated framework. CHIETA organisational risks are directly linked to each of the CHIETA strategic programmes in the strategic plan and CHIETA risks are defined and scored on an inherent (before controls) and residual basis (after controls). CHIETA will as per the under-mentioned table implement appropriate risk treatment controls to ensure that all organisational risk are managed within the acceptable risk tolerance and risk appetite levels set by the CHIETA Accounting Authority.

51

The CHIETA organisational risks register will be closely managed and monitored on a strategic and operational level within the organisation. The top strategic and operational risks will be reported and monitored continuously by the CHIETA Accounting Authority while management will ensure that all the risk treatments linked to each risk are effective and functional. The under-mentioned table indicates the current strategic risks identified by the CHIETA Accounting Authority.

Strategic Programme Risk

1.Administration

• CHIETA's organisational leadership not providing the necessary guidance, direction and oversight towards the achievement of CHIETA's overall vision, mission and strategic imperatives.

• Arrangement of CHIETA's delegated, controlled and co-ordinated lines of authority, roles, responsibility and communications (information flows) not aligned to the achievement of business strategy goals and objectives.

• Ineffective business strategy setting and development towards directing and guiding CHIETA and its resources towards the achievement of strategic business requirements and government imperatives.

• Business processes and systems not commensurate to the effective and efficient realisation of CHIETA's business strategy, goals and objectives.

• Ineffective business performance management approach and practices aimed at measuring and monitoring CHIETA's achievement of established business strategies, goals and objectives.

• Management reports and information not empowering CHIETA's Governing Board and Executive Management to make and recommend business decisions and effectively and efficiently evaluate business performance.

• Inability to maintain, improve and uphold CHIETA's brand as a means to fulfil stakeholder expectations within the chemical industry while maintaining consistency in stakeholder satisfaction.

• CHIETA's governing board not ensuring acceptable accountability, fairness and transparency in its relationships with all of its stakeholders (internal and external)

• Business risks and exposures associated with the pursuit of CHIETA's business strategy, goals and objectives not properly understood and adequately managed.

• CHIETA not satisfying all requirements and provisions instituted by the general public regulatory framework and SETA specific legislative framework.

2. Research and Skills Planning. • Non-credible information regarding the supply and demand for skills within the chemical industries sector.

3. Research and Skills Planning, Occupationally directed Programmes, Workplace based Skills Development

• Inability to supply a trained workforce fulfilling the demand and needs of the Chemical Industry and Sector.

• Lack of a holistic outlook on training and development in Chemical Industry.

• No common understanding between industry/stakeholders and CHIETA

3. FET Colleges • Inability to forge credible partnerships among stakeholders within the industry

• Chemical Industry not having confidence in FETs ability to satisfy industry training and development demands.

• Risk of employers not opening workplaces to advance workplace experience within industry

4. Youth and adult language and numeracy skills

• CHIETA seen as not supporting key social economic challenges of the country in respect of adult and youth learning and education.

•

5. FET Colleges, Occupationally directed programmes and

• CHIETA skills development interventions not contributing towards improving workplace

52

Strategic Programme Risk Workplace based Skills Development

experience within industry workplaces.

6. Support to small business, Co-OPS, NGO’s and CBO’s

• CHIETA not supporting sustainable new venture creation project initiatives

7. Research and Skills Planning, Public Sector Capacity and FET Colleges

• CHIETA choosing the right partnership that will have a return on investment and impact in the chemical industry related to training and development.

8. Career and vocational guidance

• Ill-informed career choices to the determent of the chemical industry and the broader economy.

9.Meduim Term Government priorities

• CHIETA not visible in supporting government priorities

10. All ten strategic programmes of CHIETA

• Insufficient support to Minister in terms of performance objectives in SLA with the President of SA.

53

CHEMICAL INDUSTRIES EDUCATION

AND TRAINING AUTHORITY (CHIETA)

Annexure A

Annual Performance Plan for

2015/16

54

Official sign-off

It is hereby certified that this Annual Performance Plan:

Was developed by the management of the Chemical Education Training Authority (CHIETA) under the guidance of the CHIETA Accounting Authority and accurately reflects the performance targets which CHIETA will endeavour to achieve given the resources made available in the budget for 2015/16

Mosehla Mampho Signature: _____________________________ Chairperson: Governance & Strategy Committee (On behalf of and as mandated by Governing Board)

Approved

Dr Blade Nzimande Signature: _______________________________

Minister of Higher Education and Training

55

1. CHIETA Programmes 1.1 Programmes

CHIETA defined ten (10) cross cutting matrix based organisational programmes illustrated in under mentioned matrix

CHIETA PROGRAMME PURPOSE OF THE PROGRAMME PROGRAMME 1: RESEARCH AND SKILLS PLANNING A professional and credible skills development planning tool for the

Chemical Sector articulating sector realities and needs and agreed sector strategies to address skills need.

PROGRAMME 2: OCCUPATIONALLY DIRECTED PROGRAMME

To ensure continuous training of the Chemical Sector workforce through mid- level skills need and apprenticeship training and addressing of high level national scarce skills through work ready graduates from Higher Education Institutions.

PROGRAMME 3: FET (TVET) COLLEGE PROGRAM To visibility and tangibly establish cooperation frameworks between CHIETA, FET’s and Industry in support of relevant skills development towards industry needs and capacity requirements

PROGRAMME 4: LOW LEVEL YOUTH AND ADULT LANGUAGE AND NUMERACY SKILLS

To assist and contribute to the eradication of poor educational foundation amongst the youth and adult learners whom are currently ill prepared for further learning

PROGRAMME 5: WORK PLACED BASED SKILLS DEVELOPMENT

The training of critical and scarce skills and the development of a workforce that is adaptable to changes in the labour market and address the skill imbalances in the Chemical Sector

PROGRAMME 6: SUPPORT TO CO-OPS, SMALL ENTERPRISES, WORKER INITIATED NGO’s AND COMMUNITY TRAINING INITIATIVES

Through dedicated funding to support these structures by utilizing skills development opportunities in order to empower people to make a living

PROGRAMME 7: PUBLIC SECTOR CAPACITY Establishment and maintenance of a responsible and accountable entity responsive to stakeholder needs and imperatives

PROGRAM 8: CAREER AND VOCATIONAL GUIDANCE CHIETA providing attractive pathways for personal and career development for young people and rural learners

PROGRAMME 9: MEDIUM TERM STRATEGIC PRIORITIES To impact through skills development onto the national priorities of Government

PROGRAMME 10: ADMINISTRATION Instil and maintain a culture of good governance within CHIETA

56

1.2 BASELINE ANNUAL TARGETS FOR 2014/15 – 2018/19 PER CHIETA STRATEGIC OBJECTIVE

The ten (10) CHIETA strategic objectives with the consolidated performance and medium targets is indicated in the under mentioned table

.

Strategic objective Audited/Actual performance Estimated performance

2015/16

Medium-term targets 2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

1.1 Credible SSP 734 794 45 48 53 57 52

2.1 High level and priority skills

7031 14065 15926 16694 17346 17983 17983

3.1 FET partnerships to meet increased capacity needs

468 743 973 1128 1283 1438 1438

4.1 Raising the educational base

187 575 635 635 640 645 645

5.1 Continuous work place training

385 600 564 564 564 564 564

6.1 Quality partnerships with Co-Ops, SMME, worker initiated, NGO’s and community based education programmes training initiatives

19 125 141 152 166 180 180

7.1 Public sector capacity building

No Baseline 1 1 1 1 1 1

8.1 Career guidance 500 1003 1504 1604 1704 1804 1804

9.1 Quality projects in support of medium term Government

i i i

4 10 10 10 10 10 10

10.1 Administration 26 26 30 30 30 30 30

57

1.3 CHIETA MTEF BUDGET ESTIMATED BUDGET PER STRATEGIC PROGRAMME FOR FIVE YEARS 2014/15 TO 2018/19

PROGRAMME

NUMBER STRATEGIC PROGRAMME 5 YEAR BUDGET

2014/15 T0 2018/19 1 RESEARCH AND SKILLS PLANNING 60, 156, 445

2 OCCUPATIONALLY DIRECTED PROGRAMMES 1, 227, 076, 745

3 FET COLLEGES 71, 538, 906

4 LOW LEVEL YOUTH AND ADULT LANGUAGE AND NUMERCAY SKILLS

22, 373, 387

5 WORK PLACE BASED SKILLS DEVELOPMENT 438, 982, 954

6 SUPPORT TO SMALL BUSINESS,CO-OPS, NGO’S AND CBO’s 11, 018, 893

7 PUBLIC SECTOR CAPACITY 16, 780, 040

8 CARREER AND VOCATIONAL GUIDANCE 17, 059, 708

9 MEDUIM TERM GOVERNMENT PRIOIRTIES 323, 348, 699

10 ADMINISTRATION 344, 686, 249

TOTAL 2, 533, 022, 027

ESTIMATED BUDGET FOR STRATEGIC PROGRAMMES FOR 2015/2016

PROGRAM NUMBER

PROGRAMME NAME BUDGET ALLOCATION 2015/16

1 Research and Skills Planning 11, 292, 750

2 Occupationally directed programmes 235, 454, 925

3 FET 13, 429, 500

4 Adult and youth language and numeracy 4, 200, 000

5 Workplace based skills development 82, 407, 210

6 Support to small business, NGO’S, CBO’s and NGO’s 2, 068, 500

7 Public sector capacity 3, 150, 000

8 Career Guidance 3 202, 500

9 Government Medium Term priority 60, 699, 997

10 Administration 64, 256, 619

TOTAL 480, 162, 000

58

3. OVERVIEW OF 2015 / 16 BUDGET AND MTEF ESTIMATES

Table .Financial detail for the Chemical Industries Education and Training Authority

Outcome Medium-term estimate

Audited Audited Audited Estimated

outcome

R Thousand 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Revenue

Tax revenue

Non-tax revenue 22,474 20,699 27,395 13,605 13,575 12,282 12,501

Sale of goods and services other than capital assets

Of which:

Admin fees

Sales by market establishments

Non-market est. sales

Other non-tax revenue 22,474 20,699 27,395 13,605 13,575 12,282 12,501

Fines penalties and forfeits

Interest 20,712 19,165 20,399 12,501 12,291 11,062 11,288

Dividends

Rent on land

Other non-tax revenue 1,762 1,534 6,996 1,104 1,284 1,220 1,213

Transfers received 330,953 381,685 405,958 444,565 466,587 492,013 516,878

Other government units – – –

59

Departmental transfer

Other transfers

Department of HET (SETAS only) 330,953 381,685 405,958 444,565 466,587 492,013 516,878

Skills Development Levies 330,953 381,685 444,565 466,587 492,013 516,878

Admin - 10% / 10.5% 42,456 48,283 50,616 59,497 64,257 69,397 72,904

Employer Grant Fund Levy- 50% / 20% 207,084 238,592 128,277 78,483 82,407 87,352 93,497

Discretionary Grants - 20% / 49.5% 81,413 94,810 227,066 306,585 319,924 335,264 350,476

National Skills Fund (SETAS only) – – – – – –

Other SETAs (SETAS only)

Universities and technikons

Local Donors

Foreign governments

International donor organisations

Total revenue 353,427 402,384 433,353 458,170 480,162 504,295 529,379

Expenses

Current expense 34,126 45,301 54,958 58,990 64,187 71,131

Compensation of employees 17,651 24,890 32,784 35,407 38,240 42,064

Salary & Wages 17,651 22,624 29,544 31,908 34,461 37,907

Basic salary 12,834 20,462 25,229 27,247 29,427 32,370

Performance rewards 1,357 2,162 3,157 3,409 3,682 4,050

Service based 1,158 1,251 1,351 1,486

Compensative/ circumstantial -

Periodic payments -

Other non-pensionable allowances -

60

Social Contributions (employer contributions only) 3,460 2,266 3,240 3,499 3,779 4,157

Pension 2,689 1,787 2,488 2,687 2,902 3,193

Medical 576 180 657 709 766 842

UIF 195 299 95 103 111 122

Bargaining council

Unions

Insurance

Post retirement benefits (Medical)

Use of goods and services 15,845 19,251 21,469 22,843 25,170 28,252

Advertising 689 669 728 812 859

Advertising of posts 630 447 483 522 563

Advertising (marketing) 191 59 222 245 290 295

Audit Fees 2,910 3,016 3,269 3,531 3,813 4,118

Internal 1,161 1,304 1,408 1,521 1,643

Forensic 845

External 1,749 2,171 1,965 2,122 2,292 2,475

Bank charges

Board Costs – 570 1,296 1,400 1,512 1,632

Board - Remuneration 454 876 946 1,022 1,103

Board - Air Tickets 90 300 324 350 378

Board - Accommodation 15 120 130 140 151

Board - Subsistence 11

Bursaries (employees) 716 759 804 853

Catering services

61

Communication 897 715 1,541 1,654 1,775 1,905

Telephone 897 715 1,008 1,089 1,176 1,270

Cellphones

Postage & Courier 533 565 599 635

Satellite signals

Other

Computer services – 692 748 807 872

SITA services

External service providers 692 748 807 872

Consultants, contractors and special services 2,128 2,693 3,171 2,923 2,701 2,503

Consultants 2,125 2,693 2,597 2,338 2,104 1,894

Contractors and special services 3 574 585 597 609

Cleaning services

Catering services

Security services 3

Item 1

Item 2

Entertainment

Equipment less than R5000

Inventory 352 333 723 780 843 910

Consumables

Food and food supplies

Fuel, oil and gas

Parts and other maintenance material

62

Stationery and printing 352 809 723 780 843 910

Restoration and fittings

Other

Legal fees 369 381 800 840 882 926

Loss or (Gains) – – 25 27 29 31

Losses due to Fraud

On Sale of Assets – 25 27 29 31

Forex

Adjustments to Fair Value

Other

Maintenance and repairs – 376 254 330 198 119

Buildings 376 254 330 198 119

Infrastructure assets

Vehicles

Equipment

Operating leases 2,481 2,110 1,819 2,019 2,242 2,488

Rent-buildings 2,481 2,110 1,819 2,019 2,242 2,488

Rent-equipment

Other

Owned/ leasehold and property exp. (Establisment Costs) – – – – – –

Transport - Motor Fleet

Transport - Private Vehicles

Other

Printing and publication 250 270 292 315

63

Professional bodies and membership fees

Travel and Substinance 1,576 2,079 2,449 2,645 2,857 3,086

Air Travel - Air Tickets ( Domestic) 1,146 1,481 1,782 1,925 2,079 2,245

Air Travel - Air Tickets ( International)

Accommodation - Domestic 121 598 667 721 779 841

Accommodation - International

Entertainment

Other

Training and staff development 309 602 419 452 488 527

Utilities – 620 443 483 526 574

Water and electricity 620 443 483 526 574

Item 1

Item 2

Venues and facilities 1,071 477 501 526 552

Project expenditure 4,824 2,027 2,456 2,754 4,064 4,308

Nationa;s Skills fund expenses

Item 2

Depreciation 630 1,160 705 740 777 816

Land

Dwellings

Non- Residential Buildings

Investment Property

Other Structures (Infrastructure Assets)

Mineral & Similar Non - Regenerative Resources

64

Capital Work in Progress

Heritage Assets

Biological Assets

Computer equipment 231 431 208 218 229 240

Furniture and Office equipment 195 316 203 213 224 235

Other Machinery and equipment 180 334 233 244 257 269

Specialised military assets

Transport Assets

Computer Software 25 79 61 64 68 71

Valuables (e.g. works of art)

Mastheads and Publishing titles

Patents, Licences, Copyrights, Brand names & Trademarks

Recipes, Formulae, Prototypes, Designs & Models

Service and Operating Rights

Other Intangibles

Interest, dividends and rent on land – – – – – –

Interest

Dividends

Rent on land

Transfers and subsidies 263,563 463,369 383,249 399,180 415,976 458,248

Employer Grant 122,411 127,771 94,055 78,483 82,407 93,497

Provincial government

Municipalities

Departmental agencies and accounts

65


Foreign governments and international organisations

Public and private corporations 122,411 127,771 94,055 78,483 82,407 93,497

Nonprofit institutions

Households

Descretionary Grant 141,152 335,598 289,194 320,697 333,569 364,751


Municipalities




Public and private corporations 141,152 335,598 289,194 320,697 333,569 364,751

Nonprofit institutions

Households

Transfers other than for skills development – – – – – –


Municipalities – – – – – –

Rates and taxes

RSC levie

Other




Public and private corporations – – – – –

66

Non life insurance

Other (Artisans)

Non-profit institutions

Households

Total expenses 297,689 508,670 438,207 458,170 480,162 529,379

Surplus / (Deficit) 55,738 (75,317) 0 0 (0) 0

Tax payment

Outside shareholders Interest

Cash flow summary

Adjust surplus / (deficit) for accrual transactions (18,303) 1,187 16,421 13,028 609 646

Adjustments for:

Depreciation 678 1,160 542 575 609 646

Interest (19,165) – – – – –

Impairments 27 – – – – –

Net (profit ) / loss on disposal of fixed assets – – – – – –

Other 157 27 15,879 12,453 – –

Operating surplus / (deficit) before changes in working 37,435 (74,130) 16,422 13,028 609 646

capital

Changes in working capital 23,210 (11,276) 55,905 48,295 44,547 41,266

(Decrease) / increase in accounts payable 22,071 (11,859) 47,148 42,433 38,190 34,371

Decrease / (increase) in accounts receivable 1,104 744 1,214 1,336 1,469 1,616

Decrease / (increase) in inventory

(Decrease) / increase in provisions 35 (161) 7,542 4,525 4,887 5,278

67

Cash flow from operating activities 60,645 (85,406) 16,421 13,028 609 646

Transfers from government – – – – – –

Of which: Capital

: Current

Cash flow from investing activities (403) (1,041) (782) (737) (689) (991)

Acquisition of Assets (405) (1,041) (782) (737) (689) (991)

Land

Dwellings


Investment Property




Heritage Assets

Biological Assets

Computer equipment (223) (592) (150) (120) (125) (477)

Furniture and Office equipment (31) (229) (538) (484) (436) (392)

Other Machinery and equipment (59) (127) (50) (85) (75) (64)

Specialised military assets – – – – –

Transport Assets – –

Computer Software (92) (93) (44) (48) (53) (58)




68



Other Intangibles

Other flows from Investing Activities 2 2 – – – –

long term investments

Proceeds from sale of assets 2 2

Incease in lterm receivables

Cash flow from financing activities 1,462 – – – – –

Deferred Income

Borrowing Activities

Grants received 1,462 – – – – –

Net increase / (decrease) in cash and cash equivalents 59,183 (86,447) 15,640 12,291 (79) (345)

Balance Sheet Data

Carrying Value of Assets 1,018 1,775 2,612 2,469 2,537 2,254

Land

Dwellings


Investment Property




Heritage Assets

Biological Assets

Computer equipment 417 535 1,146 1,082 987 857

69

Furniture and Office equipment 133 535 215 203 235 215

Other Machinery and equipment 321 578 391 354 365 325

Specialised military assets – –

Transport Assets – –

Computer Software 147 127 860 830 950 857






Other Intangibles

Long Term Investments – – – – – –

Floating

Current

1<5 Years

5<10 Years

>10 Years

Cash and Cash Equivalents 369,596 342,332 277,697 209,243 257,418 259,791

Bank 369,595 342,332 277,694 209,240 257,415 259,788

Cash on Hand 1 3 3 3 3

Other

Other

Receivables and Prepayments 2,113 563 18,214 20,630 15,540 17,912

Trade Receivables 1,703 353 17,945 20,343 15,283 17,641

70

Staff Debtors 52 47 49 48 48

Accrued Income – – – –

Skills Development Levy receivables 203 87 112 82 94

Prepaid Expenses 32 210 – – – –

Other 123 135 126 126 129

Inventory 76 33 56 66 62 61

Trade 76 33 56 66 62 61

Other

Other

Capital & Reserves 346,257 277,355 208,349 158,638 171,917 161,780

Admin Reserve 6,094 6,094 6,094 6,094 6,094 5,895

Accumulated Reserves

Surplus / (Deficit)

Prior Year Adjustments

Other

Employer Grant – – – – – –

Discretionary reserve 340,163 271,261 202,255 152,544 165,823 155,885

Borrowings – – – – – –

Floating

Current

1<5 Years

5<10 Years

>10 Years

Post Retirement Benefits – – – – – –

71

Present value of Funded obligations

Unrecognised transitional liabilities

Trade and Other Payables 22,630 60,472 85,669 69,041 98,836 113,190

Trade Payables 7,948 60,472 42,074 31,843 54,132 59,545

Accrued Interest

Deferred income

Skills Development Levy payables 14,682 43,595 37,199 44,704 53,645

Other payables

Provisions 3,916 6,602 4,561 4,729 4,804 5,048

Leave pay provision 1,015 4,693 1,364 1,276 1,075 1,021

Bonus provision 2,901 3,197 3,453 3,729 4,027

Advance Billing

Other 1 1,909

Other 2

Managed Funds (e.g. Poverty Alleviation Fund) – – – – – –

Poverty Alleviation Fund

Regional Development Fund

Third Party Funds

Other 4

Contingent Liabilities – – – – – – –

Retirement Fund

Housing Guarantee

Other 1

Other 2

72

Table .Financial summary for the Chemical Industries Education and Training Authority

Outcome Medium-term estimate

Audited Audited

Audited

Estimated

outcome R Thousand 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Revenue Tax revenue –

– –

– –

–

–

Non-tax revenue 22,474 20,699 27,395 13,605 13,575 12,282 12,501 Sale of goods and services other than capital assets

– – – – – – –

Of which: Admin fees – – – – – – – Market establishments –

– –

– –

–

–

Incidental Sales – –

–

– –

–

–

Other non-tax revenue 22,474

20,699

27,395

13,605

13,575

12,282

12,501

Transfers received 330,953

381,685

405,958

444,565

466,587

492,013

516,878

Skills development transfers

330,953

381,685

405,958

444,565

466,587

492,013

516,878

Other transfers – –

–

– –

–

–

Total revenue 353,427

402,384

433,353

458,170

480,162

504,295

529,379

Expenses Current expense

34,126 39,087

45,043

58,990

64,187

68,691

71,131

73

Compensation of employees

17,651

21,240

24,890

35,407

38,240

41,299

42,064

Goods and services 15,845

17,170

19,122

22,843

25,170

26,577

28,252

Depreciation 630

678

1,031

740

777

816

816

Interest, dividends and rent on land

– – – – – – –

Interest – – – – – – – Dividends – – – – – – – Rent on land – – – – – – – Transfers and subsidies

263,563

356,883

463,369

399,180

415,976

435,603

458,248

Employer grant 122,411

215,471

128,277

78,483

82,407

87,352

93,497

Discretionary grant 141,152

141,412

335,092

320,697

333,569

348,251

364,751

Transfers other than for skills development

– – – – – – –

Total expenses 297,689

395,970

508,412

458,170

480,162

504,294

529,379

Surplus / (Deficit) 55,738

6,414

(75,058)

0

(0)

0

(1)

Tax payment – – – – – – – Outside shareholders Interest

– – – – – – –

Cash flow summary Adjust surplus / (deficit) for accrual transactions

496

705

(30,775)

13,028

609

646

816

Adjustments for: Depreciation

339 678

1,081

575

609

646

816

Interest – –

–

– –

–

–

Impairments – – – – – – –

74

Net (profit ) / loss on disposal of fixed assets

– –

–

– –

–

–

Other 157

27

(31,856)

12,453

– –

–

Operating surplus / (deficit) before changes in working

56,234

7,119

(105,833)

13,028

609

646

0

capital Changes in working capital

(46,271)

53,526

20,399

48,295

44,547

41,266

41,266

(Decrease) / increase in accounts payable

(44,538)

52,387

19,945

42,433

38,190

34,371

34,371

Decrease / (increase) in accounts receivable

(1,689)

1,104

615

1,336

1,469

1,616

1,616

Decrease / (increase) in inventory

– – – – – – –

(Decrease) / increase in provisions

(44)

35

(161)

4,525

4,887

5,278

5,278

Cash flow from operating activities

9,963

60,645

(85,434)

61,323

45,156

41,266

41,912

Transfers from government

– – – – – – –

Of which: Capital – – – – – – – : Current – – – – – – – Cash flow from investing activities

(403)

(1,462)

(1,013)

(737)

(689)

(991)

877

Acquisition of Assets (405)

(1,464)

(1,013)

(737)

(689)

(991)

877

Other flows from Investing Activities

2

2

– – – – –

Cash flow from financing activities

(1,107)

– – – – – –

Net increase / (decrease) in cash and cash equivalents

8,453

59,183

(86,447)

60,586

44,468

40,275

42,789

75

Balance Sheet Data Carrying Value of Assets

1,018

1,775

1,501

2,469

2,537

2,254

2,254

Long Term Investments

– – – – – – –

Cash and Cash Equivalents

369,596

428,779

342,332

209,243

257,418

259,791

287,135

Receivables and Prepayments

2,113

985

563

20,630

15,540

17,912

–

Inventory 76

65

33

66

62

61

61

TOTAL ASSETS 372,803

431,604

344,429

232,408

275,557

280,018

289,450

Capital & Reserves 346,257

352,671

277,355

158,638

171,917

161,780

135,285

Borrowings – – – – – – – Post-Retirement Benefits

– – – – – – –

Trade and Other Payables

22,630

74,930

67,074

69,041

98,836

113,190

150,917

Provisions 3,916

4,003

4,729

4,804

5,048

3,248

Managed Funds – – – – – – – TOTAL EQUITY & LIABILITIES

372,803

431,604

344,429

232,408

275,557

280,018

289,450

Contingent Liabilities – – – – – – –

76

Table .Financial summary for the Chemical Industries Education and Training Authority Outcome Medium-term estimate

Audited Audited

Audited

Estimated

outcome R Thousand

2011/12 2012/13

2013/14

2014/15 2015/16

2016/17

2017/18

Capital Expenditure Budget – 1,204

665

1,006

1,220

857

877

Land – –

–

– –

–

–

Dwellings – –

–

– –

–

–

Non- Residential Buildings – –

–

– –

–

–

Investment Property – –

–

– –

–

–


– –

–

– –

–

–


– –

–

– –

–

–

Capital Work in Progress – –

–

– –

–

–

Heritage Assets – –

–

– –

–

–

Biological Assets – –

–

– –

–

–

Computer equipment – 700

175

250

450

477

352

Furniture and Office equipment

– 95

75

120

110

117

60

Other Machinery and equipment

– 59

65

86

60

64

15

Specialised military assets –

77

Transport Assets – Computer Software –

350 350

550

600

200

450


– –

–

– –

–

–



– –

–

– –

–

–

Service and Operating Rights – –

–

– –

–

–

Other Intangibles – –

–

– –

–

–

78

1.4 PROGRAMME PERFORMANCE INDICATORS, MEDIUM TERM AND 2014/15 ANNUAL AND

QUARTERLY PERFORMANCE TARGETS

STRATEGIC OUTCOME ORIENTATED GOAL ONE (1)


Establish a credible institutional mechanism for Skills Planning

Goal statement The national need in relation to Skills Development is researched, documented and communicated to enable

effective skills planning within the sector and establish a credible integrated management information system for CHIETA and chemical industry

PROGRAMME 1: RESEARCH AND SKILLS PLANNING

Purpose: A professional and credible skills development planning tool for the Chemical Sector articulating sector realities and needs and agreed sector strategies to address skills need.

Strategic objective 1.1

A credible and well researched Sector Skills Plan

Objective statement

Develop and maintain a five(5) year Sector Skills Plan with annual researched updates in support of the context of NSDS 111 and Government priorities

Baseline Number of quality intervention within the SSP update addressing sector and national priorities and needs : 48

Justification This objective will contribute to sustainability and increase in the value proposition and impact of Sector Skills Plans for the chemical sector and economic growth of the country.

Links

This objective will contribute to improvement in sustainable skills development for sustainable employment in economic growth areas of the chemical and related sectors.

Strategic objective Strategic Plan target 2014/15 - 2018/19

Audited/Actual performance Estimated

Performance 2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

1.1 Number of intervention in support of quality SSP

256 734 794 45 48 53 57 57

PERFORMANCE INDICATORS WITH 2015/16 AND MEDIUM TERM TARGETS WITH BASELINE

Performance indicator Audited/Actual performance

Estimated performance

2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

1.1.1

WSP and ATR received, analysed and reported

1 1 1 1 1 1 1

1.1.2 Number of Research reports inclusive of Research Partnerships

1 10 10 10 10 10 10

1.1.3 Number of Sub Sector Chamber Skills Plans

9 9 9 9 9 9 9

1.1.4 Track and Trace System for graduates (including all learning programmes) in sector


79

1.1.5 Updated and well researched SSP (Credible institutional mechanisms for skills Planning)

1 1 1 1 1 1 1

1.1.6 Support to Master Graduates

10 10 15 17 20 25 25

1.1.7 Support to Doctorate Graduates

5 5 3 3 3 3 3

1.1.8 Support to Post Doctorates

5 5 2 3 3 3 3

1.1.9 Support Industry and University partnership

3 3 3 3 3 3 3

QUARTERLY PERFORMANCE TARGETS 2015/16

Programme performance indicators

Reporting period Annual target 2015/16

Quarterly targets

1st 2

nd 3rd 4

th

1.1.1 WSP received, analysed and reported

Annual 1 1

1.1.2 Number of research reports

Annual 10 10

1.1.3 Number of sub sector chamber skills plans

Annual 9 9

1.1.4 Track and Trace System for graduates

Annual 1 1

1.1.5 Updated and well researched SSP

Annual 1 1

1.1.6 Support of Master Graduates

Annual 17 17

1.1.7 Support of Doctorates Graduates

Annual 3 3

1.1.8 Support of Post Doctorates

Annual 3 3

1.1.9 Support Industry and University partnership

Annual 3 3

Performance indicator Audited/Actual performance Estimated performance

2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

80

STRATEGIC OUTCOME ORIENTATED GOAL TWO (2)


Increase access to occupationally directed programmes

Goal statement To encourage better use of workplace based skills development

PROGRAMME 2: OCCUPATIONALLY DIRECTED PROGRAMME

Purpose: To ensure continuous training of the Chemical Sector workforce through mid- level skills need and apprenticeship training and addressing of high level national scarce skills through work ready graduates from Higher Education Institutions.

Strategic objective

2.1

Development of middle and high level priority skills supported through the CHIETA Grants system

Objective statement Development of intermediate skills, artisanal, technical and related occupations and high level professional skills Baseline Number of artisans, internships, learnerships and skills Programmes supported for employed and unemployed :

16694

Justification This objective will contribute to the production of high level priority skills in high level occupationally directed programmes in the entire skills development pipeline from universities and colleges to the workplace

Links This objective will contribute to the improvement of skills development linkages with the workplace in addressing

sustainable employment

Strategic objective Strategic Plan Target 2014/15 – 2018/19

Audited/Actual performance Estimated performance

2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

2.1 Number of learners participating in occupationally directed programmes

85932 7031 14065 15926 16694 17346 17983 17983

81

PERFORMANCE INDICATORS WITH 2015/16 AND MEDIUM TERM TARGETS WITH BASELINE


2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

2.1.1 Employed learnerships entered (non-artisan)

850 1500 1600 1700 1800 1900 1900

2.1.2 Employed bursaries entered

50 100 250 260 270 280 280

2.1.3 Employed internships entered

0 0 0 100 110 116 116

2.1.4 Employed Skills Programme entered

1050 3000 3200 3300 3400 3500 3500

2.1.5 Employed learnership certificated (non-artisan)

425 750 800 825 850 875 875

2.1.6 Employed bursaries certificated

25 50 125 130 135 140 140

2.1.7 Employed internship certificated

0 0 0 50 55 58 58

2.1.8 Employed Skills Programme certificated

525 1500 1600 1650 1700 1750 1750

2.1.9 Unemployed learnerships entered (non-artisan)

950 2000 2100 2200 2300 2400 2400

2.1.10 Unemployed bursaries entered

80 250 300 310 320 330 330

2.1.11 Unemployed internships\workplace experience entered

75 100 500 510 520 530 530

2.1.12 Unemployed skills programme entered

280 1000 1200 1250 1300 1350 1350

2.1.13 Unemployed learnerships certified (non-artisan)

475 1000 1050 1100 1150 1200 1200

2.1.14 Unemployed bursaries certified

40 125 150 155 160 165 165

2.1.15 Unemployed internships\workplace experience certified

38 50 250 255 260 265 265

2.1.16 Unemployed skills programmes certified

140 500 600 625 650 675 675

2.1.17 Artisan entered 650 655 660 1720 1775 1830 1830

2.1.18 Artisan certified 163 164 175 444 461 479 479

2.1.19 Work Integrated Learning HET

No Baseline 100 100 110 120 130 130

82

QUARTERLY PERFORMANCE TARGETS FOR 2015/16



Quarterly targets

1st 2

nd 3rd 4

th

2.1.1 Employed learnerships entered

Quarterly 1700 300 300 550 550

2.1.2 Employed bursaries entered

Annually 260 260

2.1.3 Employed internships entered

Annually 100 0 0 100 0

2.1.4 Employed skills programme entered

Quarterly 3300 600 600 950 1150

2.1.5 Employed Learnerships certified

Quarterly 825 150 150 250 275

2.1.6 Employed bursaries certified

Quarterly 130 130

2.1.7 Employed internships certified

Quarterly 0 0 0 0 50

2.1.8 Employed skills programmes certified

Quarterly 1650 250 250 550 600

2.1.9 Unemployed learnerships entered

Quarterly 2200 350 350 750 750

2.1.10 Unemployed bursaries entered

Annually 310 310

2.1.11 Unemployed internships\workplace experience entered

Quarterly 510 0 0 255 255

2.1.12 Unemployed skills programme entered

Quarterly 1250 300 300 325 325

2.1.13 Unemployed learnerships certified

Quarterly 1100 250 250 275 325

2.1.14 Unemployed bursaries certified

Quarterly 155 155

2.1.15 Unemployed internships\workplace experience certified

Annually 255 125 130

2.1.16 Unemployed skills programme certified

Quarterly 615 100 100 210 215

2.1.17 Artisan entered Quarterly 1720 378 378 482 482

2.1.18 Artisan certified Quarterly 444 80 80 142 142

2.1.19 Work Integrated Learning HET

Quarterly 110 110

83

STRATEGIC OUTCOME ORIENTATED GOAL THREE (3)


Promoting growth of public TVET college system that is responsive to sector, local, regional and national skills need and priorities

Goal statement

Forging stronger synergy between CHIETA and TVET colleges to effectively contribute to the clear linkage of the TVET College system to the world of work within the Chemical Sector

PROGRAMME 3: TVET COLLEGE PROGRAM

PURPOSE: To visibly and tangibly establish cooperation frameworks between CHIETA, TVET’s and Industry in support of relevant skills development towards industry needs and capacity requirements


Partnerships between CHIETA and TVET colleges, CHIETA employers and private providers to ensure meeting the increased capacity needs of the Chemical Sector

Objective statement To expand cooperation with the TVET College system through improvement of TVET College leadership and capacity,

career guidance provision, participation in curriculum review and initiate and strengthen TVET and industry collaboration

Baseline Number of learners in workplace experiential learning and placement programmes, TVET College partnerships and involvement in curriculum development: 1128

Justification

This objective will contribute to the correction of the current disjuncture between the TVET College system and the world of work and contributing to sustainable employment and industry competitiveness

Links This objective will contribute to improvement quality of life of South African by directing skills developments

interventions towards the social and economic needs of South Africa

Strategic objective Strategic Plan target 2014/15 – 2018/19


2015/16

Medium-term targets

2012/13 2013/14 2014/15 2017/18 2018/19 2018/19

3.1 Number of TVET/CHIETA collaboration and learner and lecturer beneficiaries

6260 468 743 973 1128 1283 1438 1438

PERFORMANCE INDICATORS FOR 2015/16 AND MEDIUM TERM TARGETS AND BASELINE


2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

3.1.1 FET Graduate workplace experience entered

300 450 600 700 800 900 900

3.1.2 FET Graduate workplace experience completed

150 225 300 350 400 450 450

3.1.3 Number of FET College campus partnerships

18 18 18 18 18 18 18

3.1.4 Number of FET lecturer / management capacity building

No Baseline 50 55 60 65 70 70

84




Quarterly targets 1st 2nd 3rd 4th

3.1 FET Graduate workplace experience entered

Quarterly 700 700

3.2 FET Graduate workplace experience completed

Annually 350 350

3.3 FET College partnerships Annually 18 3 7 8

3.4 FET lecturer / management capacity building

Bi - Annual 60 60

STRATEGIC OUTCOME ORIENTATED GOAL FOUR (4)


Addressing the low level language and numeracy skills to provide access to additional training

Goal statement Assisting the young people leaving school and adults with an opportunity to engage in training or work

experience in order to improve employability

PROGRAMME 4: LOW LEVEL YOUTH AND ADULT LANGUAGE AND NUMERACY SKILLS

PURPOSE: To assist and contribute to the eradication of poor educational foundation amongst the youth and adult learners whom are currently ill prepared for further learning


Raising the educational base to ensure that further learning can take place

Objective statement To expand access of youth and adult learners towards language and numeracy training

Baseline Number of learners participating in ABET, AET and bridging programmes: 635

Justification This objective will contribute to decreasing the number of adult and youth who are not ready and prepared for further learning and education

Links This objective will contribute to improvement of the quality of life of South Africans to take on further learning with

the view of attaining sustainable employment



2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

4.1 Number of learners participating in AET, ABET and bridging programmes

3195 187 575 630 635 640 645 645

85

PERFORMANCE INDICATORS FOR 2015/16 AND MEDIUM TARGETS AND BASELINE


2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

4.1.1 Number of learners in AET entered ABET, FLC, bridging programmes and foundation programmes for HET’s

125 250 250 250 250 250 250

4.1.2 Number of learners in AET certified

62 125 125 125 125 125 125

4.1.3 Number of learners in Science and / or Maths bridging programmes (Second chance – NEET)

No Baseline 200 200 200 200 200 200

1.1.4

Number of learners assisted with matric to obtain university entrance

50 50 55 60 65 70 70

PERFORMANCE QUARTERLY TARGETS 2015/16

Performance indicators Reporting period Annual target 2015/16


4.1.1 Number of learners in ABET/AET entered

Annually 250 250

4.1.2 Number of learners in ABET/AET certified

Annually 125 125

4.1.3 Number of learners in Maths and Science bridging programme

Biannual 200 200

4.1.3 Number of learners assisted with matric to obtain university entrance

Annually 60 60

STRATEGIC OUTCOME ORIENTATED GOAL FIVE (5)


Encouraging better use of workplace-based skills development

Goal statement

Training of employed workers to address critical skills, improving productivity, economic growth and the ability of the workforce to respond to changes in the labour market

86

PROGRAMME 5: WORK PLACED BASED SKILLS DEVELOPMENT

PURPOSE: The training of critical and scarce skills and the development of a workforce that is adaptable to changes in the labour market and addresses the skill imbalances in the Chemical Sector and providing mobility


Continuous training to improve overall productivity and performance of the Chemical Sector

Objective statement Provision of substantive training programmes for employed workers to address sector specific skills gaps to assist

with the transformation of our workplaces into productive businesses

Baseline Number of learners in workplace skills training entered and completed and support to levy paying companies : 564

Justification

This objective will contribute to programmes that will address the improvement of performance and productivity in the workplace

Links This objective will contribute to improved workplace equity and workplace productivity



2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

5.1 Number of learners in workplace training and number of levy paying companies supported

2820 385 600 564 564 564 564 564

PERFORMANCE INDICATOR FOR 2015/16 AND MEDIUM TERM TARGETS AND BASELINE


2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

5.1.1 Mandatory Grants paid to large firms

101 101 114 114 114 114 114

5.1.2 Mandatory Grants paid to medium firms

84 150 150 150 150 150 150

5.1.3 Mandatory Grants paid to small firms

200 349 300 300 300 300 300





5.1.1 Mandatory Grants paid to large firms

Quarterly 114 114

5.1.2 Mandatory Grants paid to medium firms

Quarterly 150 150

5.1.3 Mandatory Grants paid to small firms

Quarterly 300 300

87

STRATEGIC OUTCOME ORIENTATED GOAL SIX (6)


Encouraging and supporting co-operatives, small enterprises, worker initiated, NGO’s and community training initiatives

Goal statement

Support of co-operatives with skills development and training in order to contribute to economic and employment growth. Partnership projects are established to provide training and development support to small business and impact reported on. Worker, NGO and community-based education programmes are supported and their impact measured and reported on.

PROGRAMME 6: SUPPORT TO CO-OPS, SMALL ENTERPRISES, WORKER INITIATED NGO’s AND COMMUNITY TRAINING INITIATIVES

PURPOSE: Through the CHIETA Social Development Funding window is to support these structures by utilizing skills development opportunities in order to empower people to make a living


Quality partnerships established in support of Co-ops, worker initiated NGO’s, small enterprises and community training initiatives

Objective statement

To support established projects that have a proven track record and collaboration with existing employers in supporting their existing CSI programmes

Baseline Number of Co-ops, NGO’s, CBO,CBC and small enterprises supported: 152

Justification This objective will contribute to decreasing the number of unemployment and empower people to make a living by utilizing skills development opportunities

Links

This objective will contribute to improvement of the quality of life of the citizens of the country by reducing unemployment and poverty



2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

6.1 Number Co-ops, NGO’s, CBO’s, CBC’s and small businesses supported

819 19 125 141 152 166 180 180

PERFORMANCE INDICATOR FOR 2015/16 AND MEDIUM TERM TARGETS AND BASELINE


2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

6.1.1 Number of Co-ops supported

4 25 30 30 30 30 30

6.1.2 Number of small business supported

6 80 85 90 95 100 100

6.1.3 Number of NGO supported

3 5 7 9 12 15 15

6.1.4 Number of CBO supported

3 5 7 9 12 15 15

6.1.5 Number of CBC supported

3 5 7 9 12 15 15

6.1.6 Number of worker initiated training interventions


88





6.1.1 Number of Co-ops supported

Annually 30 15 15

6.1.2 Number of small business supported

Quarterly 90 45 45

6.1.3 Number of NGO supported

Annually 9 9

6.1.4 Number of CBO supported

Annually 9 9

6.1.5 Number of CBC supported

Annually 9 9

6.1.6 Number of worker initiated training interventions

Annually 5 5

STRATEGIC OUTCOME ORIENTATED GOAL SEVEN (7)


Increasing public sector capacity for improved service delivery and supporting and building of a developmental state

Goal statement Support provision of education and training within public sector

PROGRAMME 7: PUBLIC SECTOR CAPACITY

PURPOSE: Establishment and maintenance of a responsible and accountable entity responsive to stakeholder needs and imperatives


Capacity Building of Public Sector through partnerships

Objective statement

Partnership with public sector

Baseline Number of partnerships implemented: 1

Justification

This objective will contribute to instilling and maintaining confidence within the public sector in terms of accountability and sustained service delivery

Links

This objective will contribute to a positive perception amongst SA citizens on Public Sector capacity



2014/15

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

7.1 Number of interventions to build public sector capacity

5 No Baseline 1 1 1 1 1 1

89

PERFORMANCE INDICATORS 2015/16 AND MEDIUM TERM TARGETS AND BASELINE

Performance indicator Audited/Actual performance Estimated

2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

7.1.1 Number of public sector partnerships


QUARTERLY PERFORMANCE TARGTES 2015/16




7.1.1 Number of public sector partnerships

Annually 1 1

STRATEGIC OUTCOME ORIENTATED GOAL EIGHT (8)


Building career and vocational guidance

Goal statement

Career guidance initiatives to attract the youth into scarce and critical skills for the Chemical Sector

PROGRAM 8: CAREER AND VOCATIONAL GUIDANCE

PURPOSE: CHIETA providing attractive pathways for personal and career development for young people and rural learners


Development and dissemination of career guidance to youth

Objective statement Support and encourage careers in the Chemical Industry with emphasis on scarce and critical skills

Baseline Development career guidance framework and dissemination of career guides: 1604

Justification This objective will to make attractive for personal and career development in relevant and sustainable Chemical Sector skills

Links This objective will contribute to improvement of the quality of life of South Africans and channelling skills

development in support of economic growth



2015/16

Medium-term targets

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

8.1 Number career guidance and learners involved

8420 500 1003 1504 1604 1704 1804 1804

PERFORMANCE INDICATOR 2015/16 AND MEDIUM TERM TARGETS WITH BASELINE


2015/16

2012/13 2013/14 2014/15 2016/17 2017/18 2018/19

8.1.1 Number of CHIETA career guides inclusive of maths and science guide

No Baseline

1 1 1 1 1 1

8.1.2 Number of learners receiving career guidance

500 1000 1500 1600 1700 1800 1800

8.1.3 Partnership with professional bodies in vocational and career guidance

No Baseline

2 3 3 3 3 3

90





8.1.1 Number of CHIETA career guides inclusive of Maths and Science guides

Annually 1 1

8.1.2 Number of learners receiving career guidance

Annually 1600 1600

8.1.3 Partnerships with professional bodies in vocational and career guidance

Annually 3 3

STRATEGIC OUTCOME AND ORIENTATED GOALS NINE (9)


Addressing the medium term strategic priorities of Government

Goal statement CHIETA within the ambit of its skills development mandate is responsive to broader cross sector priorities

PROGRAMME 9: MEDUIM TERM STRATEGIC PRIORITIES

PURPOSE: To impact through skills development onto the national priorities of Government

Strategic objective 9.1 To construct and deliver on quality projects in support of Government priorities

Objective statement CHIETA in a visible and tangible manner support cross cutting government priorities

Baseline Number of project supporting Government’s medium term priorities on: Any 10 Projects from areas below

• Technical Vocational Educational Training (TVET) • FET Infrastructure • Welding Trust (ISOE) • SDF Capacity Building • Economic growth and transformation • Economic and social infrastructure • Rural Development • Strengthen Human Resource and Skills base • Improve the health of all South Africans • Building cohesive, caring and sustainable communities • Pursuing African advancement and enhanced international cooperation • Sustainable Resource Management use • Building a developmental state inclusive of improvement of public service and strengthening democratic

institutions • Crime prevention • Safe and Healthy Environment • SIPS • BBBEE Scorecard (revised) • Chemical Stakeholder Support • QCTO Development and Alignment • SSP Implementation • Capacity Building and functioning of Governance Structures • Apprenticeship Support • SMME Voucher Support • ISOE’s

Justification

This objective will contribute to deliver on projects with a high impact potential with regard to socio- economic challenges facing our country

Links This objective will contribute to improvement of sustainable employment of the youth and rural learners in

support of the 9 Government priorities


Audited/Actual performance

Estimated performance

2015/16


9.1 Number of projects in support of Government priorities

50 4 10 10 10 10 10 10

91

PERFORMANCE INDICATOR 2015/16 AND MEDIUM TERM TARGET AND BASELINE


2015/16


9.1.1 Number of projects in support of Government’s medium term priorities

4 4 10 10 10 10 10

QUATERLY PERFORMANCE TARGTES 2015/16




9.1.1 Number of projects in support of Government’s medium term strategic priorities

Annually 10 10

STRATEGIC OUTCOME ORIENTATED GOAL TEN (10)


Sound administration of CHIETA

Goal statement Instil and maintain a culture of good governance

PROGRAMME 10: ADMINISTRATION

PURPOSE: CHIETA disburses of its mandate with confidence and in compliance with relevant legislation and policy frameworks.


Maintain and continuously improve stakeholder confidence on how CHIETA disburse of its mandate

Objective statement Disciplined and transparent functioning of CHIETA funds management, business processes and governance

frameworks

Baseline Unqualified Audit opinion, effective management of CHIETA administrative budget and effective management of CHIETA Governance and Constitutional frameworks: 30

Justification

This objective will contribute to instilling and maintaining stakeholder confidence

Links This objective support on a cross cutting level all the other nine( 9) programmes of CHIETA



2015/16


10.1 Disciplined and transparent functioning of CHIETA business, financial and governance frameworks

150 26 26 30 30 30 30 30

92

PERFORMANCE INDICATORS FOR 2015/16 ADMINISTRATION

Performance indicator Audited/Actual performance Estimated

performance 2015/16


10.1.1 Unqualified Audit Opinion

1 1 1 1 1 1 1

10.1.2 Effective functioning of CHIETA Governance and Constitutional structures

24 No Baseline 24 24 24 24 24

10.1.3 CHIETA annual admin budget below the 10% threshold

1 1 1 1 1 1

10.1.4 Timeous payment of 0,5% to QTCO

No Baseline 4 4 4 4 4




Quarterly targets

1st 2

nd 3rd 4

th

10.1.1 Unqualified Audit Report

Annually 1 1

10.1.2 Effective functioning of CHIETA Governance and Constitutional structures

Annually 24 6 6 6 6

10.1.3 CHIETA annual admin budget below the 10% threshold

Annually 1 1

10.1.4 Timeous payment of 0,5% to QCTO (subject to QCTO processes and timeous download of levies)

Quarterly 4 1 1 1 1

93

CHEMICAL INDUSTRIES EDUCATION AND TRAINING AUTHORITY

(CHIETA)

Annexure B

SERVICE LEVEL AGREEMENT 2015/16 BETWEEN

THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING

AND THE CHEMICAL SECTOR EDUCATION & TRAINING AUTHORITY

(CHIETA)

Date of tabling: 30 September 2014

(Second Draft)

94

SERVICE LEVEL AGREEMENT

entered into by and between

DEPARTMENT OF HIGHER EDUCATION AND TRAINING

(hereinafter referred to as the “DHET” represented by GF Qonde, duly authorized thereto by virtue of his capacity as the Director-General),

and

CHEMICAL INDUSTRIES EDUCATION & TRAINING AUTHORITY (CHIETA)

(hereinafter referred to as “SETA" represented by Mr Mosehla Mampho duly authorised thereto in his/her capacity as Chairperson of the CHIETA Governance and Strategy Committee

by the CHIETA Governing Board)

95

1. PURPOSE OF THE SERVICE LEVEL AGREEMENT

This service level agreement is entered into between the above mentioned parties to agree on the

minimum service levels required by the SETA in performing its statutory functions, meeting the

National Skills Development Strategy targets and implementing its strategic plan and annual

performance plan.

2. DURATION OF THE SERVICE LEVEL AGREEMENT

The service level agreement is entered into for the period of 01 April 2015 to 31 March 2016.

3. OBLIGATIONS OF THE SETA

3.1 The SETA undertakes to :

3.1.1 perform its functions as required by the Skills Development Act;

3.1.2 meet the targets in the National Skills Development Strategy;

3.1.3 implement the approved Strategic Plan and Annual Performance Plan;

3.1.4 submit all documentation and reports as may be required by the Department on the times

specified; and

3.1.5 adhere to the requirements of the Public Finance Management Act and Treasury

Regulations.

3.2 Perform and provide the information and/or reports on the activities listed below:

3.2.1 assessment of the skills required for each sector and to identify scarce skills;

3.2.2 how the levels of education will be improved in the sector;

3.2.3 partnerships between SETAs and public Further Education and Training (TVET) colleges,

Universities, training providers and industry;

3.2.4 the number of bursaries awarded/to be awarded to deserving South African citizens in

critical skills at 23 Universities and 50 TVET colleges;

3.2.5 scarce and critical skills needs in the sector, how it will be addressed and reflected in the

number of learners that will be trained and placed, as well as the companies involved;

3.2.6 number of agreements signed with public TVET colleges , Universities and other training

providers as well as the amount approved per agreement which should also reflect the

number of learners that will be trained, types of training programmes and programmes

that are in place;

3.2.7 targets as reflected in the Strategic Plans and Annual Performance Plans must be credible

and linked to a “Baseline”;

3.2.8 placement of lecturers in industry as part of the Service Level Agreement;

96

3.2.9 a comprehensive plan on making the public service as a training space should be

developed with targets per annum;

3.2.10 rural development programmes and how it will be implemented;

3.2.11 progress in the implementation of Recognition of Prior Learning;

3.2.12 presence of SETAs in rural areas and townships and how and by when will it be

implemented;

3.2.13 establish working relationships with TVET colleges, Universities and industry for the

purpose of placement of students and graduates;

3.2.14 ensure the placement of N3, N6 and NC(V) Level 4 TVET graduates and University of

Technology students requiring Work Integrated Learning (WIL) in the relevant sector;

3.2.15 quarterly reporting on the placement of N3, N6 and NC(V) Level 4 TVET graduates and

University of Technology students requiring Work Integrated Learning (WIL) in the relevant

sector;

3.2.16 annual targets for registered and completed artisan learners by listed trade as agreed with

the Chief Directorate: INDLELA to address HRDC ATD-TTT Bottleneck 1;

3.2.17 monthly reports in a format determined by the Chief Directorate: INDLELA of the actual

number of registered and completed artisan learners to address HRDC ATD-TTT

Bottleneck 1;

3.2.18 implementation of the Policy on Generic National Artisan Learner Grant Funding and

Administration System to address HRDC ATD-TTT Bottleneck 2; (Implemented when

approved)

3.2.19 the number of persons supported to become qualified artisans within the national artisan

learner Recognition of Prior Learning system determined by the Chief Directorate:

INDLELA to address HRDC ATD-TTT Bottleneck 3;

3.2.20 meet minimum targets as reflected in the table below:

LEARNING PROGRAMMES TARGETS 2015/16 Workers Entering Learnerships (Non-artisan) 1700 Workers Entering Bursaries 260 Workers Entering Skills Programmes 3300 Workers Certificated in Learnerships (Non-artisan) 825 Workers Certificated in Bursary 130 Workers Certificated in Skills Programmes 1650 Unemployed Entering Learnerships (Non-artisan) 2200 Unemployed Entering Bursaries 310 Unemployed Entering Internships/Workplace Experience 510 Unemployed Entering Skills Programmes 1250 Unemployed Certificated in Learnerships (Non-artisan) 1100 Unemployed Certificated in Bursaries 155

97

LEARNING PROGRAMMES TARGETS 2015/16 Unemployed Certificated in Internships / Workplace experience 255 Unemployed Certificated in Skills Programmes 625 Artisans Entered – Artisan learnerships; apprenticeships, RPL and NCV Engineering Internships) 1720 Artisans Certificated 444

4. OBLIGATIONS OF DEPARTMENT OF HIGHER EDUCATION AND TRAINING

4.1 The Department undertakes to:

4.1.1 consult the SETA on policy and strategic matters that may affect the functioning of the

SETA;

4.1.2 provide the SETA with guidance on sector skills plans, strategic plans and any matter that

may be requested by the SETA in relation to its functions; and

4.1.3 assist the SETA where applicable in performing its functions and responsibilities.

5. GENERAL

Any amendments to the Service Level Agreement shall be in writing and sign by both parties.

Unemployed Graduate Placement / workplace experience (TVET) 700 Work Integrated Learning / Workplace Experience (HET / Universities of Technology) 100 FET College Partnerships 18 Foundational Learning (AET / ABET / FLC / Bridging Programmes Entered 250 AET / ABET / FLC / Bridging Programmes Certificated 125 Cooperatives Supported 30 Small Business Supported 90 NGOs / CBCs / CBO Supported / Worker initiated training 32 Career Guidance Provided to learners 1600

98

SIGNED AT _________________ON THIS ___ DAY OF ____________________2014

________________________________

ACCOUNTING AUTHORITY

(Represented by Mr Mosehla Mampho who warrants that he/she is duly authorised to this

agreement)

SIGNED AT _________________ON THIS ___ DAY OF ____________________2014

________________________________

DIRECTOR-GENERAL

(Represented by GF Qonde, duly authorized thereto)

99

CHEMICAL INDUSTRIES EDUCATION AND

TRAINING AUTHORITY

(CHIETA)

Annexure C

Materiality and Significance Framework

Date of tabling: 30 September 2014

(Second Draft)

100

1. Materiality and Significance Framework Objective The policy is intended to determine material & significant events that warrant disclosure by the Accounting Authority to: The Executive Authority / legislature; The National Treasury; The Office of the Auditor General; Therefore events of a similar nature as considered material & significant but does not constitute material & significant will be managed “in-house” by the Accounting Authority in terms of formal enquiries & disciplinary processes defined by the Human Resources policies & procedures. Legal Framework In terms of Treasury Regulations, section 28.1.5, issued in terms of the Public Finance Management Act, Act No. 1 of 1999, and the Accounting Authority must develop and agree a framework of acceptable levels of materiality and significance with the relevant Executive Authority in consultation with the external auditors. The specific sections of the Public Finance Management Act that is relevant to:

Materiality is:- Section 50(1)(c) – “The Accounting Authority for a public entity must on request, disclose to the Executive Authority responsible for that public entity or the legislature to which the public entity is accountable, all material facts, including those reasonably discoverable, which in any way influence the decision or actions of the Executive Authority or that legislature.” Section 55(2) (b) (i) – “The annual report and financial statements must include particulars of any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful expenditure that occurred during the financial year.” Section 66(1) – “An institution to which this Act applies may not borrow money or issue a guarantee, indemnity or security, or enter into any other transaction that binds or may bind that institution or the Revenue Fund to any future financial commitment, unless such borrowing, guarantee, indemnity, security, or other transaction – Is authorized by this Act; and In the case of public entities, is also authorized by other legislation not in conflict with this Act; and In the case of loans by a province or a provincial government business enterprise under the ownership control of a provincial executive, is within the limits as set in terms of the Borrowing Powers of Provincial Governments Act, 1996 (Act No. 48 of 1996).” Significance is:- Section 54(2) – “Before a public entity concludes any of the following transactions, the Accounting Authority for the public entity must promptly and in writing inform the relevant treasury of the transaction and submit relevant particulars of the transaction to its Executive Authority for approval of the transaction – Establishment or participation in the establishment of a company; Participation in a significant partnership, trust, unincorporated joint venture or similar arrangement; Acquisition or disposal of a significant asset; Commencement or cessation of a significant business activity; and A significant change in the nature or extent of its interest in a significant partnership, trust, unincorporated joint venture or similar arrangement.” Factors considered in developing the Framework The following factors were considered in determining the framework: Nature of the business Given the nature of the organization’s activities i.e. – The creation and registration of national standards and qualifications in the sector and sub-sectors; To curriculate, assess, certify and manage performance in the sector to ensure targeted and generic service skills; To ensure that a quality learning provision is maintained throughout the sector; To create and maintain a database to target generic and specific skills development; To engage in learnerships and skills programme activities; To implement the sector skills plan; a lower level of materiality is considered appropriate.

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Statutory Requirements The organization is a public entity, as contained in schedule 3A of the Public Finance Management Act, and as such is governed by legislation applicable to government entities. Such legislation are therefore prepared in terms of good corporate governance and is intended to govern finance, supply chain management, asset management, etc. within the organization. In light of this, the probability of a material or significant infringement is considered unlikely. Governance Structure The Accounting Authority (Governing Board) is represented by its stakeholder’s i.e. organized employer and employee representation from the sector. The Accounting Authority, in terms of legislation is accountable for the performance and governance of the organization to the Executive Authority (Minister of Labour). In terms of governance, the organization is further directed by the Audit Committee (external members), the external auditors (the Auditor General’s office), and the internal auditors (external firm of auditors). In view of the external participation in the operations of the organization, it is considered appropriate to have a lower level of materiality. Control and Inherent Risks The following factors were examined in determining the control and inherent risk in the organization: Annual risk assessment; Three year internal audit plan; Fraud prevention plan; Appropriate procurement policy and modalities; The implementation and adoption of a quality management system; Technical competence, skills and experience of staff engaged in the decision making process; Structure of the Audit Committee with reference to the King Code of Corporate Governance. In terms of the control and inherent risks, a lower level of materiality is considered appropriate. Qualitative Factors Materiality is only related to the size of and the elements of the financial statements. Misstatements that are large individually or in aggregate may affect a reasonable user’s assessment. Misstatements may also be material on qualitative grounds. The organization has considered the following qualitative factors: Unusual transactions entered into that are not of a repetitive nature and are disclosable due to the nature and the knowledge thereof affecting the decision-making of the users of financial statements; Sizable increase in the stakeholder base i.e. more member companies contributing SDL to the organization; Fraudulent or dishonest behaviour of ALL officers or staff of the organization. Any rand value will warrant disclosure; Operations in regions that are economically unstable or the expansion into new locations; Operations exposed to volatile markets; Going concern and liquidity including loss of significant stakeholders; Constraints on the availability of capital and credit; Changes in the industry in which the entity operates; Developing or offering new products or services; Entities or business segments likely to be traded or lost; Complex alliances and joint ventures; Changes in key personnel including departure of key executives; Changes in the IT environment; Pending litigation and contingent liabilities; Public accountability to stakeholders, parliament, auditors and the community at large; The sensitivity of the organization’s financial information in making decisions; Inadequate policies and procedures to mislead users; Material infringement of legislation; The imposition of regularity restrictions that can impair operating capabilities; Any transaction entered into that could result in reputation risk; Application of new or changes in accounting policy.

1.1 Materiality Definition Information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. Materiality depends on the size of the item or error judged in the particular circumstances of its omission or misstatement. Thus materiality provides a threshold or cut-off point, rather than being a primary qualitative characteristic which information must have if it is to be useful.

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Materiality Level The level of a material loss is assessed at 1% of budgeted total revenue (NSF revenue and VAT excluded, includes levy income, interest and penalties and any other income). Different levels of materiality can be used and the decision to use a conservative level of 1%, irrespective of whether the transaction / event relates to assets, liabilities, or reserves, is based on the fact that the total assets of the organization is not considered to be an indicator of performance as the organization is not an asset intensive entity and the revenue component is selected as a basis for the materiality calculation as the level of activity (grant and discretionary disbursements) is dependent on the total revenue received.

1.2 Significance Definition

A transaction is significant if conducting the transaction is vitally important to fulfil the organization’s mandate and for it to operate effectively. Significance is larger than materiality as significant transactions may impact the organization as a whole. A transaction may be material but not significant whereas all significant transactions are material. Significance Level The organization will promptly and in writing inform the National Treasury of the transaction and submit relevant particulars of the transaction to its Executive Authority for approval of the transaction. The following transactions will be regarded as significant and will require full disclosure: Establishment or participation in the establishment of a company; Participation in a significant partnership, trust, unincorporated joint venture or similar arrangement; Acquisition or disposal of a significant asset; Commencement or cessation of a significant business activity; and A significant change in the nature or extent of its interest in a significant partnership, trust, unincorporated joint venture or similar arrangement Reporting of the Framework The materiality and significance framework must be updated yearly, preferably before the financial year commences to ensure the identification of material and significant transactions. The framework will further be developed in consultation with the external auditors. The framework will be included into the: Corporate / strategic plan and Annual Report

TREASURY REGULATION 28.1.5 “For purposes of “material” [sections 50(1), 55(2) and 66(1) © of the Act] and “significant” [section 54(2) of the Act], the accounting authority must develop and agree a framework of acceptable levels of materiality and significance with the relevant executive authority in consultation with the external auditors.”

MATERIAL

Section 50 (1)

(1)The accounting authority for a public entity must – on request, disclose to the executive authority responsible for that public entity or the legislature to which the public entity is accountable, all material facts, including those reasonably discoverable, which in any way influence the decision or actions of the executive authority or that legislature.

Quantitative – 1% of total revenue Qualitative – events as contained in the Materiality & Significance Framework Policy

Section 55 (2)

(2)The annual report and financial statements must – include particulars of – (i)any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful expenditure that occurred during the financial year

Quantitative – 1% of total revenue Qualitative – events as contained in the Materiality & Significance Framework Policy

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Section 66 (1)

(1) An institution to which this Act applies may not borrow money or issue a guarantee, indemnity or security, or enter into any other transaction that binds or may bind that institution or the Revenue Fund to any future financial commitment, unless such borrowing, guarantee, indemnity, security or other transaction – (a) is authorized by this Act; and (b) in the case of public entities, is also authorized by other legislation not in conflict with this Act; and In the case of loans by a province or a provincial government business enterprise under the ownership control of a provincial executive, is within the limits as set in terms of the Borrowing Powers of Provincial Governments Act, 1996 (Act No 48 of 1996).

All events / transactions will require disclosure – 100% compliance

Significant

Section 54 (2) Before a public entity concludes any of the following transactions, the accounting authority for the public entity must promptly and in writing inform the relevant treasury of the transaction and submit relevant particulars of the transaction to its executive authority for approval of the transaction – establishment or participation in the establishment of a company; participation in a significant partnership, trust, unincorporated joint venture or similar arrangement; acquisition of disposal of a significant shareholding in a company; acquisition or disposal of a significant asset; commencement or cessation of a significant business activity; and a significant change in the nature or extent of its interest in a significant partnership, trust, unincorporated joint venture or similar arrangement.

All events / transactions will require disclosure – 100% compliance

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(CHIETA)

Annexure D

Technical Indicator Descriptions

2015/16

105

ANNEXURE D

TECHNICAL INDICATOR DESCRIPTION

TITLE OF INDICATOR

ESTABLISHING A CREDIBLE INSTITUTIONAL MECHANISM FOR SKILLS PLANNING

SHORT DEFINITION

The national need in relation to skills development is researched, documented, and communicated to enable effective skills planning within the sector and establish a

credible integrated management information system for the CHIETA and the Chemical Industries Sector

PURPOSE

A professional and credible skills development tool for the Chemical Sector articulating

sector realties and needs and agreed sector strategies to address skills needs. The purpose of this indicator is to provide credible analysis and information with regards to

the supply and demand for skills within the Chemical Industries Sector. The idea here is to document and communicate recent and emerging trends as well as develop solid baseline indicators. The other critical area within the CHIETA is to establish a credible institutional

Integrated Management Information System and mechanism for skills planning and access to opportunities for students who need it in order to complete their qualification

requirements.

SOURCE / COLLECTION OF

DATA

The CHIETA Sector Skills Planning Business Unit

METHOD OF CALCULATION

Compare the accuracy of the CHIETA information from the MIS as either high, medium or low, when compared to the SAQA NLRD data or the data of the emerging QCTO when it is operational, as well as the DHET data. Use national data and CHIETA data yielded from our research to plan our interventions. Survey into the percentage of sector stakeholders that use our information and measure the impact of it.

DATA LIMITATIONS

The manner in which the CHIETA MIS is configured or the actual system that will prevent the availability of data information

TYPE OF INDICATOR

Outcome Indicator

CALCULATION TYPE

Non-Cumulative

REPORTING CYCLE

Annually

NEW INDICATOR

No

DESIRED PERFORMANCE

The desired level of performance is a higher level of performance, accuracy and integrity of data

INDICATOR

RESPONSIBILITY

The Sector Skills Planning Executive

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ANNEXURE D


TITLE OF INDICATOR

INCREASE ACCESS TO OCCUPATIONALLY – DIRECTED PROGRAMMES

SHORT DEFINITION To encourage better use of workplace based skills development

PURPOSE

The number of middle level skills needs are identified and addressed in the Chemical Sector: • To track the extent the sector is responding to the need to increase the pool of mid-

level skills in the economy The number of artisans per year that qualify with relevant skills and find employment:

• This tracks the extent to which the sector is responding the need to increase the number of artisans with relevant skills and that find employment in the economy

The number of high level national scarce skills needs that are addressed by work ready graduates from Higher Education Institutions:

• Tracking the number of graduates form HEI’s that possess high level national scarce skills as identified in the SSP

The number of innovative research projects established: • Tracking the number of research projects that relate to building new knowledge

liked to sector and national industrial plans SOURCE / COLLECTION OF

DATA Regions, Strategic Projects, ETQA and Apprenticeship Units


The number of middle level skills needs are identified and addressed in the Chemical Sector: • Compare the number of middle level skills needs identified and addressed as

reported in the SSP against the number reported against the targets The number of artisans per year that qualify with relevant skills and find employment:

• Comparing the number of artisans per year that qualify with relevant skills and find employment against the target set for the CHIETA by the HRDSA Task

The number of high level national scarce skills needs that are addressed by work ready graduates from Higher Education Institutions:

• Comparing the number of high level national scarce skills needs that are addressed by work ready graduates from HET’s against set targets set by the CHIETA

The number of innovative research projects identified through research and established: • Comparing the number of innovative research projects against the targets set by the

CHIETA DATA LIMITATIONS The delayed provision of evidence of the deliverables for training

TYPE OF INDICATOR

Outcome Indicator

CALCULATION TYPE

Cumulative – For the year All the above indicators are measured cumulatively

REPORTING CYCLE

Annually

NEW INDICATOR No

DESIRED PERFORMANCE The desired level of performance is to meet the set targets and try to exceed it

INDICATOR RESPONSIBILITY

The Learning Programs Unit Regional Offices Research Unit Strategic Projects

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ANNEXURE D


TITLE OF INDICATOR

PROMOTING GROWTH OF A PUBLIC FET COLLEGE SYSTEM THAT IS RESPONSIVE TO SECTOR, LOCAL, REGIONAL AND NATIONAL SKILLS NEEDS AND PRIORITIES

SHORT DEFINITION

Forging stronger synergy between CHIETA and TVET Colleges to effectively contribute to the clear linkage of the TVET College system to the world of work within the Chemical Sector

PURPOSE

To visibility and tangibly establish cooperation frameworks between CHIETA, TVET’s and Industry in support of relevant skills development towards industry needs and capacity requirements

SOURCE / COLLECTION OF DATA Strategic Projects / Regions


Partnerships between CHIETA and TVET Colleges, CHIETA employers and private providers to ensure meeting the increased capacity needs of the Chemical Sector

DATA LIMITATIONS

The delayed provision of evidence of the deliverables for training

TYPE OF INDICATOR

Activity Indicator

CALCULATION TYPE

Non- Cumulative

REPORTING CYCLE

Quarterly

NEW INDICATOR Yes

DESIRED PERFORMANCE The desired performance is to support the identified number of TVET’s for capacity building

INDICATOR

RESPONSIBILITY

Regional Offices

The number partnerships formed with TVET Colleges identified for capacity building The number of lecturers identified that are un-qualified and under-qualified The number of work experience programmes identified The number of workplaces identified for workplace experiential training

Strategic Projects

Unit

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ANNEXURE D


TITLE OF INDICATOR

Addressing the low level Language and Numeracy skills to provide access to additional training

SHORT DEFINITION

Assisting the young people leaving school and adults with an opportunity to engage in training or work experience in order to improve employability

PURPOSE

To assist and contribute to the eradication of poor educational foundation amongst the youth and adult learners whom are currently ill prepared for further learning

SOURCE / COLLECTION OF DATA Regions


Comparing the number of youth that exited school before completing their senior secondary qualification to qualify with relevant skills and find employment against the target set by the CHIETA

DATA LIMITATIONS


TYPE OF INDICATOR

Outcome Indicator

CALCULATION TYPE

Cumulative – For the year

REPORTING CYCLE

Quarterly

NEW INDICATOR

Yes

DESIRED PERFORMANCE The desired performance is the successful implementation of this National CHIETA Strategy

INDICATOR

RESPONSIBILITY

Regional Offices

109

ANNEXURE D


TITLE OF INDICATOR

Encouraging better use of Workplace-Based Skills Development

SHORT DEFINITION

Training of employed workers to address critical skills, improving productivity, economic growth and the ability of the workforce to respond to changes in the labour market

PURPOSE

The training of critical and scarce skills and the development of a workforce that is adaptable to changes in the labour market and address the skill imbalances in the Chemical Sector

SOURCE / COLLECTION OF DATA CHIETA Employers / Regions


To increase the number of Workplace Skills Plans submitted by CHIETA employers through the Regions

DATA LIMITATIONS

Employers not uploading their source data on the MIS

TYPE OF INDICATOR

Outcome Indicator

CALCULATION TYPE


REPORTING CYCLE

Annually

NEW INDICATOR

No

DESIRED PERFORMANCE

The desired performance is to enhance productivity and performance in the Chemical Industries Sector and establish relevant sector specific projects to address the skills gaps Provision of substantive training programmes for employed workers to address sector specific skills gaps to assist with the transformation of our workplaces into productive business


Regional Offices

110

ANNEXURE D


TITLE OF INDICATOR

Encouraging and supporting Co-operatives, Small Enterprises, Worker initiated, NGO’s and Community Training Initiatives

SHORT DEFINITION

Support of co-operatives with skills development and training in order to contribute to economic and employment growth. Partnership projects are established to provide training and development support to small business and impact reported on. Worker, NGO and community-based education programmes are supported and their impact measured and reported on.

PURPOSE

Through dedicated funding to support these structures by utilizing skills development opportunities in order to empower people to make a living

SOURCE / COLLECTION OF DATA Regional Offices


To increase the number of cooperatives identified and supported with skills training and development

The number of NGOs and community based programmes are supported in rural areas

DATA LIMITATIONS


TYPE OF INDICATOR

Impact Indicator

CALCULATION TYPE


REPORTING CYCLE

Quarterly

NEW INDICATOR

No

DESIRED PERFORMANCE

The desired performance is to assist especially the Chemical SMME’s into the mainstream of the economy


Regional Offices Strategic Projects Unit

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ANNEXURE D


TITLE OF INDICATOR

INCREASING PUBLIC SECTOR CAPACITY FOR IMPROVED SERVICE DELIVERY AND SUPPORTING THE BUILDING OF A DEVELOPMENTAL STATE

SHORT DEFINITION Support provision of education and training within public sector

PURPOSE

Establishment and maintenance of a responsible and accountable entity responsive to stakeholder needs and imperatives

SOURCE / COLLECTION OF DATA Strategic Projects


Compare the number of support to public enterprises and track the progress of service delivery

DATA LIMITATIONS


TYPE OF INDICATOR

Output Indicator

CALCULATION TYPE


REPORTING CYCLE

Annually

NEW INDICATOR

New Indicator

DESIRED PERFORMANCE

The desired performance is to ultimately build capacity within public sector institutions so that service delivery is improved


Strategic Projects

112

ANNEXURE D


TITLE OF INDICATOR

Building Career and Vocational Guidance

SHORT DEFINITION

Career guidance initiatives to attract the youth into scarce and critical skills for the Chemical Sector

PURPOSE

CHIETA providing attractive pathways for personal and career development for young people and rural learners

SOURCE / COLLECTION OF DATA Regional Offices


Clarify the scope and reach of the CHIETA Career Guides disseminated to schools, TVET’s and HET’s

DATA LIMITATIONS


TYPE OF INDICATOR

Outcome Indicator

CALCULATION TYPE

Cumulative

REPORTING CYCLE

Annually

NEW INDICATOR

New

DESIRED PERFORMANCE

The desired performance is to: • Extend the scope of reach to especially rural educational institutions promoting

bursaries to both HET and TVET institutions through discretionary grants funding opportunities to attract PDI on chemical related qualifications Implement extra-curricular maths and science tuition in selected schools from grade 10-12


Regional Offices

Exhibitions, Expos and career awareness programmes implemented through the Regional Outreach Strategy

Relationship and Communications Unit

Monitor, Evaluate and capture the impact of initiatives

Skills Planning & Chambers Unit

Development of Career Guides

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ANNEXURE D


TITLE OF INDICATOR

Addressing the Medium Term Strategic priorities of Government

SHORT DEFINITION

CHIETA within the ambit of its skills development mandate is responsive to broader cross sector priorities

PURPOSE

To impact through skills development onto the national priorities of Government

SOURCE / COLLECTION OF DATA Regional Offices / Strategic Projects


Increase the number of projects addressing the Medium Term Strategic Priorities of Government

DATA LIMITATIONS


TYPE OF INDICATOR

Output and Impact Indicator

CALCULATION TYPE

Cumulative

REPORTING CYCLE

Quarterly

NEW INDICATOR

New

DESIRED PERFORMANCE

Contributes to the improvement of sustainable employment of youth and rural learners in support of the Government priorities


Regional Offices and Strategic Projects

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ANNEXURE D


TITLE OF INDICATOR

Sound Administration of the CHIETA

SHORT DEFINITION

Instil and maintain a culture of good governance

PURPOSE

CHIETA disburses of its mandate with confidence and in compliance with relevant legislation and policy frameworks

SOURCE / COLLECTION OF DATA All business units


Unqualified audit opinion, effective management of the CHIETA administrative budget and effective management of CHIETA Governance and Constitutional frameworks

DATA LIMITATIONS

Disciplined and transparent functioning of CHIETA funds management, business processes and governance frameworks

TYPE OF INDICATOR

Outcomes Indicator

CALCULATION TYPE

Cumulative

REPORTING CYCLE

Quarterly

NEW INDICATOR

New

DESIRED PERFORMANCE

Maintain and continuously improve stakeholder confidence on how the CHIETA disburses its mandate


Governance and Risk

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(CHIETA)

Annexure E

Organisational Alignment Framework

116

CHIETA STRATEGIC PLAN 2014/15 to 2018/19 AND …...2014/09/19 · 1. INTRODUCTION South Africa’s...

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