Construction Education and Training Authority Construction Education and Training Authority [CETA][CETA]BriefingBriefing

To the Labour Portfolio Committee in ParliamentTo the Labour Portfolio Committee in ParliamentBy:By:

Themba DlaminiThemba DlaminiChief Executive Officer/Accounting OfficerChief Executive Officer/Accounting Officer

1010thth August 2004 August 2004Good Hope Chamber, ParliamentGood Hope Chamber, Parliament

CAPE TOWNCAPE TOWN

Purpose of PresentationPurpose of Presentation

To brief members of the LABOUR PORTFOLIO COMMITTEE of To brief members of the LABOUR PORTFOLIO COMMITTEE of the CETAOF THE activities in terms of Section of the SKILLS the CETAOF THE activities in terms of Section of the SKILLS DEVELOPMENT ACTDEVELOPMENT ACT

To highlight critical areas of the CETA in terms of:To highlight critical areas of the CETA in terms of: SKILLS PLANNINGSKILLS PLANNING NSDSNSDS GRANT DISBURSEMENT GRANT DISBURSEMENT QA ASSURANCEQA ASSURANCE GOVERNANCEGOVERNANCE

Skills Planning: Sector Profile

Of the 35000 enterprises, about 62.5% are registered with Of the 35000 enterprises, about 62.5% are registered with SARS and only 30.6% are paying leviesSARS and only 30.6% are paying levies

Of the levy paying employers:Of the levy paying employers:

- - approximately 96% are SMMEsapproximately 96% are SMMEs

- - 863 Workplace Skills Plans received out of 10746 863 Workplace Skills Plans received out of 10746 levy paying companies. That is 8% of levy paying levy paying companies. That is 8% of levy paying companies are participating in the Skills companies are participating in the Skills

Development StrategyDevelopment Strategy

Skills Planning-Challenges/Constraints facing CETA Delivery Processes

Inadequate research to identify sector training Inadequate research to identify sector training needs in order to provide appropriate interventionneeds in order to provide appropriate intervention

Availability of appropriate legislation to encourage Availability of appropriate legislation to encourage employer organisations to submit WSPs and employer organisations to submit WSPs and

Annual Training Reports (ARTs)Annual Training Reports (ARTs) Impact of HIV/AIDS in the workplace and the Impact of HIV/AIDS in the workplace and the

ability to anticipate the impact to address skills gaps ability to anticipate the impact to address skills gaps resulting from this pandemicresulting from this pandemic

Duration of contracts versus intake of learners on Duration of contracts versus intake of learners on learnerships programmelearnerships programme

Skills Planning: Sector Profile

The scope of the CETA coverage as specified in the list of the The scope of the CETA coverage as specified in the list of the National Economic Sectors determined by the Minister of National Economic Sectors determined by the Minister of Labour in terms of Section 9 (2) of the Act includesLabour in terms of Section 9 (2) of the Act includes

SUBSECTOR NO. OF ENTERPRISES NO. OF EMPLOYEES

Contractors 20 300 201 720

Professionals 9 450 81 000

Materials Manufacturing 3 850 33 900

Other 1 400 13 500

TOTALTOTAL 35 000 35 000 330 120 330 120

Skills Planning: Challenges/Constrains facing CETA delivery processes

Accreditation of emerging SMME training providersAccreditation of emerging SMME training providers Brain drain due to globalisation and economic status of sector Brain drain due to globalisation and economic status of sector

constituentsconstituents Design & development appropriate curriculumDesign & development appropriate curriculum Lack of infrastructure to absorb the unemployedLack of infrastructure to absorb the unemployed Inadequate processes/strategy to address skills development Inadequate processes/strategy to address skills development

needs in the SMME, non needs in the SMME, non levy paying and exempt levy sub-levy paying and exempt levy sub-sectorsector

Inadequate communication channels with affiliated government Inadequate communication channels with affiliated government departmentsdepartments

240

70 5675

18

152

101

310

152

326

179

718

399

786

408

887

470

0

100

200

300

400

500

600

700

800

900

NW MP NC FS GP L EC KZN WC

Learnership Agreements all Provinces

All

Registered

143

1285

471

180

36 2

0

200

400

600

800

1000

1200

1400

>=15 >20 >30 >40 >50 >60

<=20 <=30 <=40 <=50 <=60 <=70

Unemployed learner in Learnerships

NSDS target (below 35 :1820)

Indicator

2000

/01

Ach

ieve

men

ts

2001

/02

Ach

ieve

men

ts

2002

/03

Ach

ieve

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2003

/04

estim

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Benchmark/NSDS target March 2005

By March 2005, 266 000 workers to have a Level One Qualification on the NQF or equivalent. (70% of 380 000)

0 178 221160 2000 223178 42822 2400

By 31 March 2005, 57 000 workers, to have embarked on a structured skills development programme, of whom at least 50% have completed their programme satisfactorily. (15% of 380 000)

0 178 36793 43378 86427target

exceed 50741

By March 2005, 20 Construction sector enterprises, to be committed to, or have achieved, an agreed national standard for enterprise based (Including the CETA as IIP site) 0 0 0 12 12 8 20

NSDS Objective 1: Developing a culture of high qualify life-long learning

The benchmark NSDS targets have been adjusted by CETA to realistic scenario in the industry

NSDS Objective 2: Fostering skills development in the formal economy forNSDS Objective 2: Fostering skills development in the formal economy for productivity and employment growth productivity and employment growth

Indicator

2000

/01

Ach

ieve

men

ts

2001

/02

Ach

ieve

men

ts

2002

/03

Ach

ieve

men

ts

2003

/04

estim

ated

A

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ents

Tota

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Var

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Benchmark/NSDS target March 2005

By March 2005, 75 per cent (140) of enterprises with more than 150 workers are receiving skills development grants and the contributions towards productivity and employer and employee benefits are measured

0 121 140 125 125 15 140

By March 2005, at least 40 per cent of enterprises (178) with more than between 50 and 150 workers are receiving skills development grants (40% 0f 444)

0 145 160 164 164 14 178

By March 2005, at least 10 learnerships are available to workers in the sector

0 1 16 39 56target

exceeded

10

NSDS Objective 3: Stimulating and supporting skills development in small businesses

Indicator

2000

/01

Ach

ieve

men

ts

2001

/02

Ach

ieve

men

ts

2002

/03

Ach

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men

ts20

03/0

4 es

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Ach

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Benchmark/NSDS target March 2005

By March 2005, 20% new and existing registered small businesses (1180) to be supported in skills development initiatives (20 % of 5898)

0 211 50 621 621 559 1168

NSDS Objective 4: Promoting skills development for employability and sustainable livelihoods through social development initiatives

Indicator

2000

/01

Ach

ieve

men

ts

2001

/02

Ach

ieve

men

ts

2002

/03

Ach

ieve

men

ts20

03/0

4 es

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Benchmark/NSDS target March 2005

By March 2005, 100% of allocated NSF funds is committed or disbursed Total Budget = R 58.775 (VAT incl) Total Beneficiaries (According to contract) 450 SMMEs 1 035 Skills L/S 1 000 SDFs 265 Capacity Build TPs TOTAL 2 750

0 0 0 2750

450 SMMEs 0 0 0 630 630 180 450

1035 Skills L/S0 0 0 953 953 -82 1035

1000 SDFs0 0 0 201 201 -799 1000

265 Capacity Build TPs0 0 0 105 105 -151 265

NSDS Objective 5: Assisting new entrants into employment

Indicator

2000

/01

Ach

ieve

men

ts

2001

/02

Ach

ieve

men

ts

2002

/03

Ach

ieve

men

ts20

03/0

4 es

timat

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Ach

ieve

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Benchmark/NSDS target March 2005

By March 2005, minimum of 3233 people under the age of 35 have entered Learnerships.

0 178 50 1240 1468 -1765 3233

By March 2005, a minimum of 50 per cent of those who have completed Learnerships are employed within six months of completion (e.g. in employment, self employment), full time study or further training or are in a social

0 0 0 0 0 1616.5 1616.5

2000/012000/01 2001/022001/02 2002/032002/03 2003/042003/04

Disbursable Levy Disbursable Levy IncomeIncome

R22,5 mR22,5 m R67,2mR67,2m R93,5mR93,5m R115mR115m

No. Levy PayersNo. Levy Payers 7129 7129 75247524 90749074 1108211082

Grant Grant Recipients/Levy Recipients/Levy PayersPayers

3%3% 6%6% 6%6% 10%10%

No. of Grant No. of Grant RecipientsRecipients

228228 467467 576576 10321032

Grants Paid or Grants Paid or AccruedAccrued

R10mR10m R20,5mR20,5m R25,5mR25,5m R71.7mR71.7m

Projects FundedProjects Funded 485,776485,776 R8,7mR8,7m R12,2mR12,2m R14.8mR14.8m

Total Disbursed R10,5mR10,5m R29,3mR29,3m R37,8mR37,8m R86.5mR86.5m

Disbursements 47%47% 44%44% 40%40% 75%75%

NOF ACCREDITED: SIXTY THREE (63)

PER PROVINCE– GAUTENG – 34– MPUMALANGA – 2– LIMPOPO – 5– NOTH-WEST – 2– EASTERN CAPE – 5– WESTERN CAPE – 2– FREE STATE – 2– NORTHERN CAPE – 2– KWAZULU NATAL – 9

FOURTEEN OF THE ABOVE-MENTIONED ACTIVELY INVOLVED IN ROLLOUT OF CETA LEARNERSHIPS

ALSO OPERATING OVER MORE THAN ONE PROVINCE AND IN RURAL AREAS

CETA ACCREDITED TRAINING PROVIDERS

Governance

The CETA board is composed of representation from the

following: National Governtment (2) Organised Business (10) Organised Labour(10) Professional Council(1)

Decision Making Process: EXCO Council

Conclusion The CETA board has endorsed the Skills Development

Strategy and has introduced the intervention programmes to address some of the challenges.

CETA Reserved or unclaimed levies have re-directed into to fund the following initiatives:

- HIV/AIDS

- ABET

- Skills Programmes

- Learnerships

- Employment Skills Development Agency (ESDA)

- Standard Generating Bodies

- Bursary Scheme

- Research and Development and others

Thank You

For more information contact:

Themba Dlamini

ceo@ceta.co.za

Tel:011-265-5904/05

Fax: 011-265-5927