SUBSECTOR SKILLS PLAN

FAST MOVING CONSUMER GOODS

DRAFT: 16 SEPTEMBER 2014

CONTENTS

1. INTRODUCTION............................................................................................................................1

2. STATISTICAL OVERVIEW................................................................................................................2

3. KEY CHALLENGES AND OPPORTUNITIES........................................................................................4

4. SKILLS DEVELOPMENT PRIORITIES................................................................................................6

5. PRIORITY AND SCARCE SKILLS.......................................................................................................7

ANNEXURE A Methodology used to weight WSP data to sector totals..............................................10

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1. INTRODUCTIONThe Chemical Sector Education and Training Authority (CHIETA) consists of five chambers that represent the nine subsectors of the Chemical Sector. The five chambers are:

Petroleum and Base Chemicals Fast Moving Consumer Goods and Pharmaceuticals Explosives and Fertilisers Speciality Chemicals and Surface Coatings Glass.

Skills planning is a core function of all SETAs and according to CHIETA’s constitution, this function cascades down to its constituent chambers. According to the CHIETA constitution the chambers are (among other things) responsible to consult with the nine subsectors in areas of skills development and planning. The ultimate objective of such consultation is to compile a SSP for the Chemical Sector that takes into consideration areas of skills demand, skills supply, and scarce and critical skills as they manifest in the respective subsectors and a strategic plan that addresses the needs of the total Chemical Sector and its subsectors.

In 2013 the CHIETA commissioned subsector skills plans for each of the nine subsectors. These documents provided detailed analyses of each of the subsectors and were meant to assist the respective chambers in skills planning and to reflect the skills needs of and skills planning for each of the subsectors.

In 2014 the CHIETA decided to prepare much shortened versions of the subsector skills plans – with a strong focus on the most recent challenges and opportunities identified in the respective subsectors and the skills development priorities identified by the chambers responsible for the subsectors.

This shortened version of the subsector skills plan consists of the following sections:

Statistical Overview

This overview is based on the levy payment information for the 2013-2014 financial year and the workplace skills plans (WSPs) submitted to the CHIETA in March 2014. The data was weighted in order to extrapolate it to subsector totals (see Annexure A). The statistical overview provides information on the organisations in the subsector and the employees working in the subsector.

Key Challenges and Opportunities

At a series of chamber meetings held in July 2014 the key skills development challenges facing the Chemical Sector as a whole (as identified in the 2014 SSP update) were presented and discussed. The ways in which each of the subsectors and chambers were affected and reacted to these challenges were highlighted. Challenges and opportunities that were unique to each subsector were also identified. These discussions form the basis for this section in the subsector skills plan.

Skills development Priorities

The skills development priorities that each of the chambers set for itself are reflected in this section of the subsector skills plan.

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Scarce skills

A list of occupations in which skills shortages exist in the Chemicals Sector was compiled for the 2014 SSP. This list was based on the scarce skills information provided by employers in the WSP submissions of March 2014. In the last section of this subsector skills plan the skills shortages identified by employers in this particular subsector are listed in table format. The table is an extract from the scarce skills list of the total sector and contains information on the number of vacancies identified in the subsector. It also provides a sector perspective, i.e. whether it is regarded as a priority skill in the Chemical Sector as a whole, total employment in this occupation in the Chemical Sector, the total number of vacancies in the Chemical Sector and vacancies and percentage of total employment.

This subsector skills plan is a draft document for further discussion in the chamber meetings that will be held in October 2014.

2. STATISTICAL OVERVIEW

ORGANISATIONS IN THE SUBSECTORNumber of levy-payers in subsector 215Percentage of levy-payers in the Chemical Sector 11Percentage of levies paid in the Chemical Sector 8

EMPLOYMENT IN THE SUBSECTORTotal employment 15 025

PROVINCIAL DISTRIBUTION OF EMPLOYEESProvince N %

Eastern Cape 602 4.0Free State 11 0.1Gauteng 6 946 46.2KwaZulu-Natal 5 235 34.8Limpopo 13 0.1Mpumalanga 148 1.0North West 6 0.0Northern Cape 137 0.9Western Cape 1 928 12.8Total 15 025 100.0

AGE DISTRIBUTION OF EMPLOYEESAge category N %Younger than 35 6 531 43.535 - 54 7 165 47.755 - 59 822 5.560 and older 507 3.4Total 15 025 100.0

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OCCUPATIONAL DISTRIBUTION OF EMPLOYEESOccupational Group N %

Managers 2 140 14.2Professionals 1 687 11.2Technicians and associate professionals 2 175 14.5Clerical support workers 1 918 12.8Service and sales workers 293 1.9Skilled and related trades workers 470 3.1Plant and machine operators and assemblers 3 049 20.3Elementary occupations 3 060 20.4Learners 233 1.6Total 15 025 100

EQUITY

Race and gender distribution of employeesFemale Male Total

N %* N %* N %*African 3 219 21.4 4 959 33.0 8 178 54.4Coloured 1 136 7.6 730 4.9 1 866 12.4Indian 867 5.8 1 338 8.9 2 205 14.7White 1 529 10.2 1 247 8.3 2 776 18.5Total 6 751 44.9 8 274 55.1 15 025 100.0*Percentage of total employment in subsector.

Number of women and Blacks per occupational group

Occupational GroupWomen Blacks

N %* N %*Managers 958 44.8 1 086 50.7Professionals 998 59.2 1 099 65.2Technicians and associate professionals 970 44.6 1 686 77.5Clerical support workers 1 203 62.7 1 521 79.3Service and sales workers 194 66.2 242 82.8Skilled and related trades workers 61 13.0 362 77.1Plant and machine operators and assemblers 722 23.7 2 993 98.1Elementary occupations 1 552 50.7 3 034 99.1Learners 94 40.3 226 96.7Total 6 751 44.9 12 249 81.5Percentage of employment in occupational group.

Number of disabled people employed 147Disabled people as % of employment 1.0

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HIGHEST EDUCATIONAL QUALIFICATIONS OF EMPLOYEESNQF Level N %

Below Level 01 425 2.8Level 01 360 2.4Level 02 887 5.9Level 03 567 3.8Level 04 3 682 24.5Level 05 1 503 10.0Level 06 927 6.2Level 07 817 5.4Level 08 585 3.9Level 09 56 0.4Level 10 20 0.1Undefined 5 196 34.6Total 15 025 100

3. KEY CHALLENGES AND OPPORTUNITIES

Key challenges and opportunities in the Fast Moving Consumer Goods (FMCG) subsector, and specifically with regard to cosmetics, were highlighted in a presentation by the dti at a chamber meeting held on 16 July 2014. These include the following:

Some progress has been made in terms of the development and manufacturing of cosmetic products:

o The National Science Professions Act of 2003 did not recognise Toxicological Science as a Natural Science Profession. The dti and TOXSA requested the Act to be amended, which was done in 2012. Since this amendment, toxicologists are required to register with the South African Council for Natural Science Professionals (SACNASP).

o The Toxicologist profile was included in the CHIETA Qualification Handbook. o A submission was made to the Department of Higher Education and Training (DHET)

to include the Toxicologist OFO Code. Once this was done the development of qualifications could commence.

o TOXSA and the Department of Science and Technology are busy developing a 2 year safety and risk assessment course.

o CHIETA in collaboration with TOXSA also developed a toxicology clip for the promotion of this career.

o CHIETA has already instituted a partnership with TOXSA to develop relevant qualifications.

South Africa does not have facilities in place to undertake toxicology tests. The upgrading of South African Bureau of Standards (SABS) laboratories for dedicated toxicology tests is currently under consideration.

At the same time universities are engaged in addressing the skills shortages in this area. The University of Pretoria will offer an internationally recognised Cosmetic Safety Assessment course at MA and PhD-level. CHIETA could make bursary funding available for the course.

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The dti is in the process of developing a draft Cosmetic Sector Strategy. The aim of the strategy is to ensure that SA has the necessary skills for cosmetics product manufacturing, testing and marketing. The strategy provides for a Cosmetic Sector Skills Gap Analysis. Institutions and incubation centres will be developed to offer critical skills for the sector and to ensure new product development and alternative testing methods.

Product development with a focus on ethic hair and skin care is required. The North West University wanted to expand their Centre of Competence for Cosmetics Science. A business plan has been submitted to the dti for consideration. The University of Cape Town is considering the establishment of a Hair Care Institute. The National Skills Fund and CHIETA have been approached for funding.

The Tshwane University of Technology is considering the establishment of a cosmetics hub. The aim of the hub would be to support SMMEs in the development of cosmetic products.

Clinical tests are only required for medical purposes and not for cosmetic products. The cosmetic industry is still self-regulated. However, for export purposes the following safety assessments are required: preservative efficiency testing, stability testing, microbiological testing as well as Good Manufacturing Practice evaluations. These are all being done in South Africa. However, the tests are costly.

Greener products are increasingly being required by cosmetics consumers.

The SA Pharmacy Council recently engaged CHIETA to develop qualifications together.

Some of the more general challenges facing the Chemical Sector as a whole also have an effect on the FMCG subsector. These include:

Poor maths and science education at school level. CHIETA as well as companies in the sector are contributing towards the building of the skills pipeline through bridging and school support programmes.

Weaknesses in the public FET sector. FET sector is not seen as very relevant to the FMCG subsector.

High drop-out and low throughput rates. Lack of relevance of qualifications. Some of the qualifications offered are not sufficiently

relevant to the industry and the content of the courses are not always up-to-date. In order to address these issues, more structured relationships between industry and the universities is required. There is some capacity available in private HET institutions (e.g. the Da Vinci Institute). This needs to be harnessed and CHIETA needs to engage with these providers on behalf of the industry.

Challenges related to the education and training of engineers. A plateau was reached in the awarding of engineering qualifications over the past two years notwithstanding the fact that engineering skills were in high demand. Engineers that qualified/graduate were not registering with the Engineering Council of South Africa (ECSA).

Work integrated learning (WIL) and access to workplaces. WIL is a national priority both in terms of in-service training to complete qualifications as well as post qualification workplace experience. Some of the companies in the sector provide WIL to students. However, CHIETA bureaucratic requirements and the amount of paperwork involved are blockages in the efficient functioning of the system.

Lack of career guidance and access to learning opportunities.

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Shortage and capacity of education and training providers including experienced workplace mentors.

Transition between education and the labour market. The majority of new entrants to the labour market find it very difficult to obtain first entry.

Lower skills levels in rural areas. Delays in QCTO processes and uncertainty about managing the transition on quality

assurance issues. Lack of articulation between qualifications.

4. SKILLS DEVELOPMENT PRIORITIES

For the Pharmaceuticals and FMCG Chamber the following are priorities:

The review and development of an integrated approach to qualifications for the pharmaceuticals subsector. This includes

o Working with the professional associations and relevant SETAs, specifically the HWSETA and WRSETA, in relation to professional occupations and support personnel.

o Identifying critical pre-competitive programmes related to key occupations that are currently not accredited but may be worth formalising.

Supporting IPAP imperatives in relation to growing the pharmaceuticals and cosmetics subsectors with emphasis on the development of regulatory pharmacists and toxicologists.

Development and dissemination of career information to workers within companies as well as young people. This information will emphasise the legal requirements of occupations.

The continued training of pharmacists, including industrial pharmacists, and sales and marketing personnel with a professional skills base.

Provision of in-service training. Continuing to work with public universities and UoTs to ensure relevant programmes and

delivery modes (e.g. part time classes, e-learning etc.). Promoting the alignment of BBBEE skills development objectives with training in support of

transformation. Increasing the number of engineers who obtain professional registration and who attain the

GCC.

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5. PRIORITY AND SCARCE SKILLS

Occupation Code Occupation Name Pr

iorit

y Sk

ill in

Ch

emic

al S

ecto

r

Tota

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ploy

men

t in

Chem

ical

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Scar

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kill

in C

hem

ical

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ctor

Empl

oyer

s in

Chem

ical

Se

ctor

who

Iden

tified

Sc

arce

Ski

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in

Chem

ical

Sec

tor

Vaca

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s as %

of

Empl

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ent

Comments

Vaca

ncie

s FM

CG

121101 Finance Manager YES 1 490 NO 6 8 0.5 6121202 Business Training

ManagerYES 249 YES 8 26 10.3 4

121908 Quality Systems Manager

YES 437 YES 14 30 6.8 20

122101 Sales and Marketing Manager

YES 1 238 NO 13 57 4.6 6

122301 Research and Development Manager

YES 287 NO 6 9 3.3 4

132104 Engineering Manager YES 916 YES 13 61 6.6 4132401 Supply and

Distribution ManagerYES 978 NO 8 9 0.9 4

134904 Office Manager YES 118 NO 2 4 3.4 2211101 Physicist YES 1 NO 3 27 2090.0211301 Chemist YES 261 YES 22 51 19.6 7213108 Microbiologist YES 134 NO 4 5 3.5 4

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Occupation Code Occupation Name Pr

iorit

y Sk

ill in

Ch

emic

al S

ecto

r

Tota

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ploy

men

t in

Chem

ical

Sec

tor

Scar

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kill

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hem

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ctor

Empl

oyer

s in

Chem

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who

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Ski

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in

Chem

ical

Sec

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Vaca

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s as %

of

Empl

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ent

Comments

Vaca

ncie

s FM

CG

214101 Industrial Engineer YES 750 YES 15 61 8.2 Engineers not registered. Experienced engineers are scarce.

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214401 Mechanical Engineer YES 371 YES 7 27 7.2 Engineers not registered. Experienced engineers are scarce.

5

214501 Chemical Engineer YES 732 NO 7 14 2.0 Engineers not registered. Experienced engineers are scarce.

1

226302 Safety, Health, Environment and Quality - SHE&Q - Practitioner

YES 1 410 NO 11 65 4.6 4

242401 Training and Development Professional

YES 708 NO 3 15 2.1 10

311801 Draughtsperson YES 165 YES 8 25 15.1 4332203 Sales Representative

- Personal and Household Goods

YES 279 NO 2 10 3.6 10

411101 General Clerk YES 3 855 NO 6 8 0.2 2718304 Packaging YES 543 YES 1 57 10.5 57

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Occupation Code Occupation Name Pr

iorit

y Sk

ill in

Ch

emic

al S

ecto

r

Tota

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ploy

men

t in

Chem

ical

Sec

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Scar

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kill

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Empl

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Chem

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who

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Chem

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Sec

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Vaca

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s as %

of

Empl

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ent

Comments

Vaca

ncie

s FM

CG

Manufacturing Machine Setter

900000 Learners YES 3 020 NO 0 22 0.7 22522301 Sales Assistant -

GeneralYES 635 NO 7 5 0.8 2

642702 Refrigeration Mechanic

YES 13 NO 1 6 47.3 6

652302 Fitter and Turner YES 862 NO 7 28 3.3 4671101 Electrician YES 1 196 YES 7 17

414.5 4

671202 Millwright YES 1 114 NO 9 51 4.6 28672105 Instrument

MechanicianYES 1 020 NO 9 42 4.1 3

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ANNEXURE A Methodology used to weight WSP data to sector totals

The information that employers submit annually to the CHIETA in their Mandatory Grant applications (WSPs/ATRs) provides detailed information on employment in the sector. In order to compensate for organisations that did not submit mandatory grant applications, the data was weighted to sectoral figures. This was done by using the size of the levy amount paid as a proxy for employment. Weighting was calculated separately for each subsector and for the different size organisations in each, because of wage differentials that occur between subsectors and organisations of different sizes.

In each of the subsector-size categories the weights applied were calculated as follows:

Weight = Levy amount paid (all organisations)/levy amount paid (organisations who submitted WSPs)

The weights were applied to the individual employee records and were used throughout the analysis of the sectoral profile. The weights that were applied to each subsector are shown in the table below.

Subsector

< R100 000

R100 000 - R999 999

R1 mil –R4 999

999

R5 mil –R9 999 99

9R10 mil +

Base Chemicals 4.5 1.1 1.3 1.0Explosives 1.0 1.0FMCG 2.2 1.1 1.2 1.0Fertilisers 3.7 1.2 1.0Glass 5.3 1.7 1.0Petroleum 1.9 1.3 1.3 1.0 1.0Pharmaceuticals 1.8 1.1 1.3Speciality Chemicals 1.7 1.1 1.0 1.0Surface Coatings 2.0 1.1 1.0

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