Department of Labour Progress Report to Portfolio Committee on Skills Development and
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Transcript of Department of Labour Progress Report to Portfolio Committee on Skills Development and
Department of LabourProgress Report to Portfolio Committee
on Skills Development andHuman Resources Development
22 May 2001
Skills Development Act
Purposes of the Act:
• Increase quality of life of workers• Increase productivity in the workplace• Promote self-employment• Delivery of social services• Improve employability work seekers• Ensure quality of education and training
Purposes of the Act to be achieved by:
(i) NSA(ii) NSF(iii) Levy-grant scheme(iv) Labour Centres(v) SDPU(vi) Learnerships / Skills programmes
National Skills Authority
(a) Advise the Minister on the NSDS(b) Any regulations to be made
National Skills Authority
(a)Advised on NSDS (9 Provincial Consultations) NSDS launch 22/23 February 2001
(b) Regulations- SETA Establishment (20 March 2000)- Funding Year 1 (7 February 2000)- Learnerships (3 April 2001)- Financing (awaited with SLA’s)
National Skills Fund: Income = 2001/2
Provinces SETA’s DTI/DoL DoL H/O Total
R270 m R 450 m R 69 mR 71 m R 860 m
National Skills Fund: ProvincesU
nem
plo
yed
Project
Project
Project
Project
Labour Centre
Province
Recruit +Select
Provincial Skills Dev. Forum
Skills Plan
Fund
Identify
National Skills Fund: SETAs
Govern
ment’
s Jo
b +
Soci
al D
ev.
Str
ate
gy
S.S
.P’s
Key
Str
ate
gic
Pro
ject
SETA+
Govt.Dept.
DoL
NSA
DG/Minister
Approval
National Skills Fund: Skills Support Programme (SSP)
New
in
vest
men
tp
rop
osa
l
DTI
DoL
SSP1. Development of curriculum etc.2. Upgrade training provider (capital)3. Skills training
Ap
pro
val
National Skills Fund: DoL H/O
Applications
Cri
teri
a
DoL
H/O
- Innovation/ Research
- Capacity building of stakeholders
- Marketing/ Promotion
National SD levy/grant
Enterprise
SARS
to
DoL
Year 215% + 50%
80% to SETA SETA
20% to NSF National Skills Fund
Year 2
1% of payroll
National SD levy/grant: LEVY INCOME
April 2000 – March 2001Total Collected by SARS (0,5%) : R1 250 003 750,64
80% to SETA’s (to Feb) : R 799 314 880,10
Total Employers paying : 109 925Total employers on SARS database : 221 600
= 50,9%[Estimated that 10% firms pay 85% levy]
Projected for 2001/2 (1%) = R2 625 000 000,00
National SD levy/grant: GRANT PAYMENTS
1 April 2000 to 31 December 2000• 13 SETA’s made grant payments• 2298 grants paid• R21 067 910,00 paid
1 April 2000 to 31 March 2001• 15 SETA’s made grant payments • 4 227 grants paid• R47 263 000,00 paid
Issues: Public Sector, VAT, PMFA
LABOUR CENTRES: Restructuring- Opportunities for social development initiatives identified- Skills of unemployed developed and assisted with placement into work- Opportunities within formal sector large scale firms (reactive interventions) identified- Threats within formal sector large-scale (reactive interventions) identified- Learners referred and placed into learnerships- Dept of Home Affairs advised on Work Permits- Appropriate skills to work seekers provided by service providers- Efficient and high quality services to work seekers by private employment agencies
Job placements by ProvinceProvince 1999 2000
Western Cape 746 406
KwaZulu-Natal 970 596
North West 1138 483
Eastern Cape 771 174
Free State 111 140
Northern Province 557 459
Mpumalanga 1161 1369
Northern Cape 169 66
Gauteng South 981 548
Gauteng North 647 133
Total 7251 4407
Job recruitment by firms - study
Skilled (%) Semi-Skilled (%) Low-Skilled (%)
Word of Mouth 31.1 44.0 50.9
Family Network 28.8 5.0 3.4
Public
Advertisements
14.7 9.4 3.6
Employment
Bureaus
10.7 8.1 2.9
Current workers 4.3 23.5 31.1
Direct applications 2.1 4.8 4.1
Recalling lay-offs 0.2 0.4 0.5
In-house database 1.5 1.1 0.7
Other 3.6 3.7 2.9
Skills Development Planning Unit (SDPU)
- 25 Sector Skills Plans (draft 1) by Sep 2000- 24 approved in March 2001
Overall shortages• Management Skills• Engineering• Information Technology
Also• Health and Safety• Customer service• Literacy and Numeracy
NSA / SDPU: Negotiations with SETA’s
NSDS5 yr Targets
SETA5 yr Targets
SETA1 yr Targets
Assumptions DoL Services
13 negotiations completed
Learnerships
• Number of learnerships identified by SETAs – 416
• Number of learnerships in development – 70
• Number of learnerships submitted for registration – 56
• Number of learnerships to be implemented by 2002 – 150
• Number of SETAs accredited as ETQA - 13
The ETDP SETA has embarked on training a minimumof 1250 educators, mentors, supervisors etc. by 2002.
HRD Strategy
2SUPPLY SIDEProvision of FurtherAnd HigherEducationAnd Training
3DEMAND SIDEDemand for skillsFrom Employers.
1GENERAL EDUCATION
The underpinning supply ofCompulsory schooling; EarlyChildhood Development andAdult Basic Education and
Training
HRD StrategyLinking the four
Strategic objectives
4National systems of Innovation,
Research and Development
Co-ordinating structureCabinet Cluster
FOSAD
HRD CC
Public ServiceDelivery
SMMEScarceSkills
Learnerships ABET ECD
Research&
Development
Ministers of Education/Labour
Directors-General Education/Labour
Chief Director’s Education/ Labour + HSRC