PRESENTATION TO THELABOUR PORTFOLIO
COMMITTEE
SKILLS DEVELOPMENT ACT / NATIONAL SKILLS
DEVELOPMENT STRATEGY
08 AUGUST 2007
Overview of PresentationOverview of Presentation
1. Historical context2. Skills Development Act, 1998
Implementation Framework3. Skills Development Levies Act 19994. The National skills development Strategy
2005 – 20105. NSDS implementation
1. SETAs, National Skills Fund, Umsobomvu Youth Fund, National Productivity Institute
6. Conclusion: Work in progress
1. Historical contextWhere do we come from?
Century of deprivation for the many Skills development for the few Exclusive “manpower” forecasting & training to mass
based Sector Skills Planning and Workplace Skills Planning
From anarchy to democracy From economic regression to growth From skills retreat to skills advance From the Pariah of Africa to the Leader of Africa – not by
accident but by design !
Objective of the Skills Development Act Benefits to Working People & the unemployed
To encourage workers to participate in scarce skills learnerships, Apprenticeships & other critical skills programmes
To develop skills of workers to: Improve their quality of life Improve their prospects for work Improve their labour mobility Improve quality of goods and services Promote self employment
To assist Work-seekers to find work Retrenched workers to re-enter labour market Employers to find skilled employees
To provide and regulate employment services To improve employment prospects of
previously disadvantaged persons and redress the disadvantages through education & training
To ensure quality of education and training in and for the workplace
Benefits to Working People & the unemployed
Benefits to Employers
To improve productivity and competitiveness To increase levels of investment in E & T, training in
the labour market, and improve the return on that investment
To encourage employers to: Use workplaces as learning environments Provide opportunities for employees to acquire new
skills Provide opportunities for new entrants to labour
market to gain work experience Employ people who find it difficult to be employed
CURRENT DEBATES/CHALLENGES IN RELATION TO NSDS
RESEARCH AND INNOVATIONNeed to EXPAND our capacity to Innovatee and rresearch
SUPPLY SIDENeed to INCREASE the
quantity of those with quality further and higher
learning
Graduates without jobs?
Retrenched?
Long-term unemployed?
School leavers?
REDUCENew work opportunities to signal scarce &
critical skills needs!
DEMAND SIDENeed to INCREASE the
number of employers and workers in quality lifelong
learning
Very few opportunities for many General Education and Graduates
GENERAL EDUCATION
INCREASE the quality of schooling for all
EARLY CHILDHOOD DEVELOPMENT
Improve and expand
ADULT BASIC EDUCATION AND TRAINING
Redress
INNOVATION, RESEARCH AND DEVELOPMENT
DEMAND SIDE
Immigration of scarce skills
SUPPLY SIDE Too few jobs
yet some skills
very scarce!
No-where for unemployed and school-
leavers to go
Learnerships with incentives for employers to provide work experience
ECD ABET
Up-skill existing public & SMME workforce
Scarce skills
bursaries
1 2
3 &4
5a
5b
6
7
FOUNDATION FOR HUMAN DEVELOPMENT
8 HRD linkages
2. Skills Development Act, 1998 Implementation Framework
Skill Development Act 1998 Legislative framework providing for objectives, National Skills
Authority, SETAs, Learnerships, Skills Programmes etc.
Manpower Training Act 1981 Legislative framework governing apprenticeship training (Sections 12-32
remain in force) Skills Development Levies Act
Legislative framework providing for skills levy contribution, collection, administration, financial management etc.
South African Qualification Authority Act 1995 Legislative framework providing for accreditation, standards
setting, quality assurance of learning Public Finance Management Act Other related legislations
Labour relations Act Basic conditions of employment act Employment equity act
Implementation Framework
National Skill Development Strategy 2005 - 2010 Policy framework recommended by NSA on National Objectives, Indicators
& Targets to be achieved
Seta Grant Regulations Regulate the manner in which SETAs must use transferred income to meet
sector NSDS targets.
Service Level Agreement Regulations Governs relations between DoL and SETAs in meeting NSDS Objectives &
Targets
Learnership Regulations / Apprenticeships Skills development provision
National Skills Funding Windows Provides Identified areas of NSF support to achieve NSDS Objectives NSF Criteria and Guidelines provides procedures to access funding for
projects mainly for the poor contributing towards NSDS Objectives & Targets
Advise Minister on:
• National Skills Development policy and strategy
• Implementation of strategy• Allocation of subsidies from NSF
Liaison with SETAs
Report to Minister on implementation of strategy
Conduct investigations
To develop and implement Sector Skills Plan (SSP)
To pay grants according to sector and national priorities
To design, register, manage and promote learnerships
To perform ETQA functions (SAQA)
To liaise with NSA
To liaise with Employment Services of the DoL and any education council or board
To report to the DG
SD LEVIES ACT, 19993. Skills Development Levies Act (Section 8)
How is the NSDS Funded
SARS•Transfer levies collected to NRF•Transfer information to DG Labour• Maintain employer data per SETA• Collect 1% payroll levy from all eligible employers by 07th of each month
SARS•Transfer levies collected to NRF•Transfer information to DG Labour• Maintain employer data per SETA• Collect 1% payroll levy from all eligible employers by 07th of each month
National Revenue Fund•Maintains record of levies as part of DoL budget •Transfer funds toNSF & SETAs based on SARS informa-tion and after approval by DG Labour
National Revenue Fund•Maintains record of levies as part of DoL budget •Transfer funds toNSF & SETAs based on SARS informa-tion and after approval by DG Labour
Department of Labour•Verifying calculations and authorize transfers to SETAs within 20 days• Conclude SLA with SETAs on usage
Department of Labour•Verifying calculations and authorize transfers to SETAs within 20 days• Conclude SLA with SETAs on usage
NSFUp to 2% of levies paid to
SARS to cover collection costsUp to 2% for NSF Administration
SETASETA
Employer
80% 20%
Projected Skills Levies to be collected to end of March 2010 (excluding government
departments)
21.916.8
5.1
0
5
10
15
20
25
R Billion
NSDS
SETAs
NSF
4. NSDS 2005 - 2010 Vision (Growth, Development and Equity) Mission (institutions + incentives aligned to national
driving strategies) Principles inclusive of equity targets 5 Objectives and 20 success indicators
What critical skills are needed? Objective 1 Who should be trained? Objectives 2, 3 and 4
First economy (focus on current workers) Second economy – some bridges (focus on the poor) Explicit focus on bridging (focus on new entrants to labour
market) Who should provide the training? Objective 5
Where should the projected R22 billion be directed Grants from SETAs with a focus on first economy, current
workers, but contribution to new entrants) – about R17,6 bn Grants from National Skills Fund – Funding Windows – R4.4
bn
NSDS Objectives Objective 1
Prioritising & communicating critical skills for sustainable growth, development and equity
Objective 2 Promoting & accelerating quality training for all in the
workplace Objective 3
Promoting employability & sustainable livelihoods through skills development
Objective 4 Assisting designated groups, including new entrant to
participate in accredited work, integrated learning & work-based programmes to acquire critical skills to enter the labour market & self-employment
Objective 5 Improving the quality & relevance of provision
NSDS is a component of the SA National Human Resources Development Strategy
GROWING THE FUTURE
National capacity for Innovation, Research and Development
BUILDING THE BASE
“Improving the foundations for human development”
SUPPLY SIDEImproving the supply of high-quality skills
DEMAND SIDEIncreasing
employer participation in
lifelong learning
HRD STRATEGY
Enhancing the linkages between the other four
sstrategic objectives
1
3
4
5
2
5. NSDS implementation DoL / Seta Service Level Agreement Framework Cascades five year national objectives
and targets to sectors Provide framework for each sector to
negotiate and sign off on annual sector objectives and targets
Establish and implement monitoring & measurement system
Framework for annual performance assessment
Basis for pro-active SETA support process and implementation of corrective actions quarterly
Seta Mandatory Grants Framework (50%)
Companies >50 Employees Submit annual workplace skills plan (WSP)
Companies <50 Employees Submit a grant application determined by SETA
Companies that have achieved a National Standard of good practice in Skills Development
Clear, specific annual cut off dates for applications 2005 / 2006 = 30 September 2005 2006 / 2007 onwards = 30 June each year
Unclaimed mandatory funds swept into Discretionary Funds immediately after cut off dates
Seta Discretionary Grants Framework (20%+ Other Income)
Sector skills research and planning Critical skills information
dissemination Support non levy paying companies,
NGOS, CBOs, Cooperatives Support learners with ABET Support learners in learning
programmes linked to scarce skills
Seta Discretionary Grants Framework (20%+ Other Income) continued Support learners to gain workplace
experience Train and mentor youth to from new
ventures Support institutes of sectoral or
occupational excellence Support new venture creation projects or
learning institutes Support providers or institutions that are
implementing the NQF in support of NSDS
Seta Discretionary Grants Framework (20%+ Other Income) continued
Support ESDAs on learnerships Support Employment & Skills
Development Lead Employers on learnerships (ESDLEs)
Support learnerships and apprenticeships
Support other sector priority skills development initiatives
•Main source of income for NSF is 20% of skills levies collected
•Minister of Labour decides on allocations from NSF on advise from NSA
•Director-General:Labour is the accounting officer of the NSF
•NSF funds projects identified in the National Skills Development Strategy (NSDS) as National Priorities or
•Other projects related to the achievement of the purpose of the Skills Development Act as the DG determines
National Skills Fund – implementation framework
NSF Funding windows cross-cutting criteria
NSDS Equity targetsBBBEE (Procurement)Geographic spread (e.g. urban/rural split)Legal and corporate governance compliance by implementing agenciesFunding excludes financing of capital expenditure and operating costsSA Citizenship
No NSF Funding Window NSDS Indicators/Mandates
1 Social Development Initiatives (Incl EPWP)
Indicator 3.1
2 Adult Basic Education & Training (ABET)
Indicator 3.3
3 Critical Skills Support Indicators 1.2 & 4.1
4 Provisioning Support Indicators 2.4 & 5.3 (SDA Amendment Act)
5 Industry Support Programme Indicator 2.3 & Job Summit Agreement
6 Informal Sector Support Indicators 3.2; 4.3 & 5.2
7 Constituency Capacity Building & Advocacy
Indicator 5.4
8 Special Projects NSDS Principles
9 Discretionary Projects & Innovation SDA
NSF FUNDING WINDOWS NSDS 2005-2010
How the NSDS supports ASGISA & Sector growth ector growth
strategiesstrategies
Sector Growth Strategy
Including industry policy, sme development and public sector initiatives linked to sector
Sector Skills Strategy
Supports sector growth strategy and is responsive to Workplace Skills Strategies
Workplace Skills Plans
Supports workplace growth strategy and is responsive to Sector Skills priorities
6. Conclusion: Work in progress National Skills Development Conference
17 – 18 October 2007- 1st & 2nd Economy interventions- Scarce & Critical Skills - NSDS Funding Framework- Mid-term assessment of the National
Skills Development Strategy 2005 - 2010 - NSDS 2010 - 2015 Review of the SETA landscape
Work in Progress:
Amendment to the Skills Development Act to insert provisions in relation to:
Manpower Training Act 1981, provisions that remain in force- Incorporation of relevant MTA provisions in the SDA- Alignment of apprenticeship conditions of employment with the LRA & BCEA and learnerships- Introduce new provisions to enable the development and
maintenance of artisan standards, moderation of decentralized private Trade Test Centres.
Establishment of the Quality Council for Trades and Occupations to ensure quality in work based learning
Accounting framework of the National Skills Fund Extending National Skills Authority term of office from 3 yrs to 5
yrs to align with NSDS and SETA lifespan.
Top Related