FOODBEV SETA

Labour Portfolio CommitteeLabour Portfolio Committee30 August 200530 August 2005

Ravin DeonarainRavin Deonarain

Introduction and Appreciation

• Thanks and Appreciation:– Hon Minister of Labour, – Hon Chairperson of Labour Portfolio Committee – Hon Committee Members

• Representatives of FoodBev Seta– Past Chair: Mr Tommy Van der Walt– Past Vice Chair: Mr Zola Nkomo– Acting Chair: Ms Sylvia Hammond– CEO: Mr Ravin Deonarain

Presentation Outline

• FoodBev Sector

• Highlights and Lowlights

• Funds received and disbursement

• Contribution to National Objectives of Growth,

Employment and Poverty Alleviation

• Opportunities and challenges in implementing NSDS

2005 - 2010

• Questions and Answers

The Food and Beverages Manufacturing Sector

Some economic characteristics

Background and Sub Sectors

• Background– Historically not organised as a sector– Formation of Foodbev Seta

• 5 Sub Sectors– Beverages– Food Preparation Products – Baking Cereals Confectionary Snacks– Dairy– Processed Preserved Meat Fish fruit Vegetables

Economic Characteristics

• Diverse sector

• Price sensitive products

• High production volumes – costs driven

• Capital intensive and technology driven

• Intense brand competitiveness

• Dominated - few large corporations and multinationals

• Large number small food manufacturers

• Mergers and acquisitions (brands)

Economic Characteristics

• Companies and Products: SA Breweries, Kellogg's, Nestle, Frito-Lay Simba, ABI, Coke

Cola, Tiger Brands, Unilever Foods, Clover, Oceana Fishing, Enterprize Meats, Nabisco, McCain's Foods, Beacon, Cadbury’s

Bokomo

• Contribution to GDP: R83.2 b for Food

R30 b for Beverages

• Total employment : +-176 000

• Levy Income at 80% : R 96 Million

Labour Market

• 1994: Macro Economic Stabilisation and Trade Liberalisation

– Growth in demand for skilled labour – Growth in supply of unskilled and semi skilled

• Production - 18 % of manufacturing sector output

• Employment - 13,5% of manufacturing sector

• Wages - 9,5% of manufacturing sector

• Employment – 2 % of total economy(DTI, 2003)

FoodBev Seta

The Organisation

VISION

To have sufficient and appropriate knowledge and skills

available in the food and beverages manufacturing

sector in order to contribute to:

– the growth and development of the sector;– a safe, healthy, productive and competitive industry;– the promotion of access to quality education and training for all

to participate in work and life, and– the redress of past inequalities in education and training.

MISSION

The stakeholders of the food and beverages

manufacturing sector are committed to ensuring that:

– relevant and quality learning standards and qualifications are available in this sector;

– a high quality of learning provision is maintained in this sector, and

– access to knowledge and skills is improved for all in the sector.

BUSINESS OBJECTIVES

• TO ACHIEVE AND EXCEED THE NATIONAL SKILLS DEVELOPMENT TARGETS FOR THE SECTOR

• TO MANAGE EFFECTIVE OPERATIONS WITHIN 10% OF TOTAL LEVY INCOME.

• TO ACHIEVE HIGH LEVELS OF SERVICE DELIVERY AND EXCELLENCE

GOVERNANCE

• Structure

– FoodBev Seta Council• 20 members

– 10 business – 10 labour

– Chambers • 5 x Committees – sub sectors

• Max 16 members per chamber committee

HOW IT WORKS

Organisation Profile

– ADMINISTRATION BUDGET• R 10.7 m

– STAFFING• 25 permanent staff

• +- 5 temps and contract

– ORGANISATION PERFORMANCE• FINANCIAL

• NSDS TARGETS

• CUSTOMER SERVICE

ORGANISATION STRUCTURE

EMPLOYMENT EQUITY

0

2

4

6

8

10

12

14

16

18

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FEMALE

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SERVICE

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FoodBev Seta

HIGHLIGHTS AND LOW LIGHTS

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

Success Indicator NSDSTarget

FoodBevPerformance

PercentageAchievement

1.1 NQF 1 70% 72% 102%

1.2.1Structured learning 15% 34,4% 229%

1.3 Organizations on IIP 20 40 200%

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

Success Indicator NSDSTarget

FoodBevPerformance

PercentageAchievement

2.1 SD Grants (Large Companies)

75% 80% 106%

2.2 SD Grants (Medium Companies)

40% 60% 149%

2.3 Learnerships available 39 39 100%

2005 Targets based on 3056 levy paying companies

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

259% 52%20%3.1 SMME’s supported in SD

PercentageAchievement

FoodBevPerformance

NSDSTarget

Success Indicator

Employed on Learnerships only, 560 on SMME interventions, 200 on Skills Programmes; additional 350 SMME companies applying for Mandatory grants.

NSDS Objective 4: 100% NSF Fund spent on viable development projects

120% 6050 4.6 HET student SMME support

169% 5073004.5 SMME’s

107% 2132004.4 Unemployed on

Learnerships/programmes

235% 47204.3 Bursaries

102% 102410004.2 Learnerships/programme

129% 129210004.1 ABET

100% 100%R 32 m% age of NSF funds deployed

PercentageAchievement

FoodBevPerformance

NSDSTarget

Project Outputs

NSDS Objective 5: Assisting new entrants into employment

136% 68%50%5.1 Placement & employment

154%Average Performance

163% 391424005.1 Unemployed on Learnerships

PercentageAchievement

FoodBevPerformance

NSDSTarget

Success Indicator

EQUITY STATS

5557

82.4

50.2

232214.2

7.1 5 51.60.4

1716

1.50.40

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WORKERSBENEFICIARIESL/SHIPS

FEMALE