Manufacturing, engineering and related services SETA (merSETA)

Strategic Plan 2013/14

merSETAPresentation to the

Parliamentary Portfolio Committee on Higher Education and Training

21 August 2013

The Skills Development Ecosystem

Priority 5 is to develop the skills of the existing

workforce as this is of primary importance for the development of the sector

and for achieving outcomes that are consistent with

decent work, equity, and sector economic growth and

employment

Priority 1 is to develop a sector labour market

intelligence (LMI) system.

Priority 2 is the continued and increased focus on

artisan development

Priority 3 is to establish and facilitate strategic partnerships that will

impact on both the funding available for skills

development and the improved quality of skills

development

merSETA has five strategic skills development priorities:

Sector Skills Development Priorities

Priority 4 is to increase the flow of newly skilled

workers into the sector, through increasing the skills available to the

sector to meet its short-term needs and improving the base level of learning

Performance in previous year (2012/13) Part 1

Figure 1: Performance against numerical targets (part I)

Performance in previous year (2012/13) Part 2

Performance in previous year (2012/13) Part 3

Target Comparison between previous & current year

PERFORMANCE INDICATOR TARGET 2012/13 TARGET 2013/14

Employed Bursaries Entered 116 132

Employed Bursaries Completed 61 10*

Unemployed Learnerships Entered 2021 4500

Unemployed Learnerships Completed 1184 1600

Unemployed Skills Programmes Entered 806 1500

Unemployed Skills Programmes Completed 188 1690

Unemployed Bursaries Entered 194 350

Unemployed Bursaries Completed 43 47

Internships Entered 180 221

Internships Completed 63 110

Employed Artisans Entered 1504 2400

Employed Artisans Completed 563 1200

Unemployed Artisans Entered 2204 3600

Unemployed Artisans Completed 1390 2000

* Reporting mechanism for bursaries was changed by DHET during quarter 3 of previous year. Now can only report entry & completion once rather than for each level in the programme.

Target Comparison between previous & current year cont....d

PERFORMANCE INDICATOR TARGET 2012/13 TARGET 2013/14

Work Experience 555 662

Work Placement 210 1350

FET College Partnership 6 14

Employed Skills Programmes Entered 3099 3400

Employed Skills Programmes Completed 1448 2380

Employed Learnerships Entered 1732 4500

Employed Learnerships Completed 940 2200

Mandatory Grants Paid to Large Companies 400 500

Mandatory Grants Paid to Medium Companies 777 833

Mandatory Grants Paid to Small Companies 1718 1812

Cooperatives 2 16

Small Business Support 2087 2315

NGO, CBO, CBC (NLPE) 9 215

Career Guidance 1178 1720

Performance Highlights

9

i. All targets achieved and exceeded with the exception of one (employed bursaries entered)

ii. Contributions to peer interaction and policy discourse resulting in positive contribution toward improving overall effectiveness of collective SETA system

iii. Artisan Training Programme has placed merSETA at forefront of SETAs that are responsive to the most urgent strategic priorities (programmes such as AATP, and Dual System Apprenticeships)

iv. merSETA has been successful in addressing a number of key priorities, linked to the National Skills Accord and National Development Plan, particularly with regard to artisan training

AATP Post Trade Test Tracer Study

merSETA conducted a Tracer Study in Sept 2012, which yielded the following results.

Employed Group80% indicated they were working (53% permanently employed; 44% on

contract; 3% part time)Limpopo, Eastern Cape and Mpumalanga regions were the highest

absorbers of artisansRiggers, Fitters, Millwrights, Mechanics and Fitters and Turners are more

likely to be employed (85% and above)Of the artisans who left their original training company, 72% stated this

was because the company could not take them on as employees.

AATP Post Trade Test Tracer Study

Unemployed Group20% indicated they were not working. 0.78% were not looking for work; 3.92% had not worked in less than 3 months. Thus 15.69% could be classified as unemployed. 33% of female artisans were not working compared to 18% of their male counterparts. 73% cited the main reason for not having found employment yet was because more experienced people were getting the jobs.Of the total unemployed, 58% had worked for a while after completing their apprenticeships, with 65% stating their contracts had expired.The most popular way of looking for work is advertisements, internet and word of mouth.

Challenges in current environment

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Aligning industry needs with national development imperatives, policy directives, and DHET priorities.

Financial and Budgetary Constraints, e.g. year on year, applications for Discretionary Grants by companies significantly exceeds available funds.

Expenditure ceilings for SETAs Improving the efficiency and effectiveness of skills development in the

sector. Co-funding training, with employers, provinces, the UIF and various state

departments, including ‘cluster’ SETAs. Improving employer buy-in through engaging industry associations on the

challenges facing the industry. Development of adequate management information systems to ensure

improved data recording & reporting Multi-year funding commitments give rise to accumulation of financial

reserves

8 Strategic Programmes

Programme 1: Administration(Effective & Efficient Governance)

Best practice is effected in line with King IIImerSETA resources are aligned to effectively execute the strategyCompliance with all relevant legislation and regulationsCustomer/stakeholder expectations met or exceededSound financial accountabilityUnqualified external audit reports Clearly defined business processesMonitoring and evaluation of operations and projectsEstablished, annual Governance Capacity Building Programme in place, linked to King III, for Board and Board Sub-committees as well as Committee effectiveness assessments

Programme 2: Skills Planning

Internal capacity is built - established research inventory hub.Capacitated merSETA internal/ external stakeholders (including Chambers and company stakeholders)Sub-sector / chamber focused research agendaLabour market information generatedInterventions with organised labour on skills planning issuesCollaboration with other SETAsProvincial collaboration on skills issues and skills planningmerSETA sector awareness created with reference to the SSPGrants aligned to the SSP (DG and mandatory)Strategic partnerships implemented for skills planning.

Programme 3: Increasing Access to Occupation-directed Programmes

16

Skills development initiatives implementedList of identified immediate skills needs that are specific to merSETA sub-sectorsArtisan development strategyList of identified high level national scarce skillsInnovation, Research & Development planSupporting Strategic Infrastructure Programmes (SIPs)

Programme 4: Promoting Responsiveness of FETCs to intermediate skills needs

Sector participation in the relevance of curricula and qualifications offered by FETs FET participation in Development Quality Partner (DQP) processesEstablished partnerships that result in increased capacity to meet industry needs throughout the country Mechanisms aimed at bridging the gap between industry and institutional provisionLecturer Development ProgrammeHarnessing the potential of FETs to strengthen the artisan development pipeline through Dual System ApprenticeshipsWork Placement for FET graduates

Programme 5: Addressing the low-level of youth & adult literacy & numeracy skills

STEM (Science, Technology, Engineering and Mathematics) Programme aligned to Career developmentEstablished partnerships with schools and relevant institutionsIncreased entrance to tertiary education in merSETA sectorIncreased entrance into additional training programmesFoundational Learning Competence (FLC) programmes

Programme 6: To promote workplace skills development within the Sector

Grants allocation aligned to equity targets and workplace productivityInstruments to measure return on training investment (i.t.o Efficiency, Effectiveness and Equity)Sector projects supported to address skills gaps & imbalances towards improved productivityCross-sectoral partnership projects supported to address skills gaps towards Local Economic Development (LED).

Programme 7: Encouraging & Supporting Cooperatives, Small Enterprises, worker-initiated NGO & Community training initiatives

Participation of SMEs in relevant learning programmes, especially artisan developmentSME Skills AuditTechnology-based entrepreneurship supportEstablished partnerships, programmes, grants and incentivesSustainable Rural and Township Development Strategy (Training for Economic Empowerment)Established sector NGOs, CBOs and CooperativesMechanisms and models for skills development support (grant and project-based)Meaningful linkages between Co-ops, NGOs, CBOs and business

Programme 8: Career Development

Integrated career and learner development strategyAlternative mechanisms including national and international partnerships to enable career-pathing & personal development.Established learning pathways to support career developmentmerSETA conducts annual learner tracer study to determine trends in learner placementEnhanced awareness of workplace and post-school and education institutions for career development opportunities e.g. NMMU project and discussions with UNISA, around graduate placement and greening the engineering disciplinesEnhanced profile of merSETA careers nationallySupport initiatives of complementary entities including government, NGOs and institutions through regional partnerships

Five Cross-cutting Strategies

1. Rural Development2. Sustainable Green Skills Development3. People with Disabilities4. Further Education and Training Colleges (FETCs)5. Recognition of Prior Learning (RPL)

The merSETA has developed strategies and charters for each of these areas through a process of stakeholder “round-tables” and allocated supporting budgets for systems and capacity-building to support these cross-cutting priorities. In addition a research and knowledge management emphasis ensures dissemination of best practices, e.g. in the development of Case Studies on RPL in the merSETA sector, submitted to SAQA.

Links to other plans

merSETA has offered skills development support towards the achievement of Strategic Infrastructure Projects (SIPs)

National Key Partnership Agreements

College of Cape TownNorthlink CollegeUniversity of Cape TownUniversity of the Western CapeWest Coast FET CollegeWestern Cape Dept of Education

SAQASci-bono Discovery CentreNYDAWorldSkills SASATN

National Institute for the DeafAtlantis FoundriesDept of Economic DevDept of Labour - UIF

NUMSA, MEWUSACEPPAWU

Eastcape Midlands CollegeBuffalo FET CollegePort Elizabeth FET CollegeLovedale CollegeNMMU

Office of the Premier Eastern CapeDept of Labour – UIFEast London Industrial Dev ZoneECSECC

SAQA, Sci- Bono, NYDA

Mercedes BenzVolkswagen SA

SATNWorldSkills SA

NUMSA MEWUSACEPPWAWU

Dept of Education NC ProvinceDept of Correctional Services NCDept of Labour – UIFNorthern Cape Rural FET College

Disabled People of SASAQASci-Bono Discovery CentreNYDAWorldSkills SA

NUMSAMEWUSACEPPAWU

Office of the Premier KwaZulu-NatalDept of Labour – UIFDept of Public WorksPresidential Youth ProjectDept of land Reform and Rural Dev.SheetechVW Naicker School for the Deaf

Coastal KZN CollegeUmgungundlovu FET College

Esayidi FET CollegeMopani FET CollegeBelgium ConsulateToyota SA

SAQA, Sci Bono, NYDAWorldSkills SA, SATNDisabled People of SANUMSA, MEWUSA,CEPPWAWU

Office of the Premier Free StateDept of Correctional Services Free State

Motheo FET CollegeSAQA, Sci Bono, NYDASATN

WorldSkills SA

Disabled People of SA

NUMSA, MEWUSA, CEPPWAWU

University of JohannesburgCentral Johannesburg CollegeSedibeng FET CollegeTshwane University of Technology

Human Sciences Research Council

SAQA, Sci Bono, NYDAWorldSkills SASATNDisabled People of SA

NUMSA, MEWUSA,CEPPWAWU

Mittal SteelSCAWDenel AviationVolkswagen SAJaguar LandroverToyotaSAGDA

Gauteng Dept of EducationDept of Labour - UIF

Dept of Labour – UIFSmall Enterprise Development Agency (SEDA)

SAQA, Sci Bono, NYDA

WorldSkills SA

Disabled People of SA

Taletso FET CollegeOrbit CollegeVuselela FET College

NUMSA, MEWUSA,CEPPWAWU

Sedibeng FET CollegeGert Sibande FET College

SAQA, Sci Bono, NYDA

WorldSkills SA

Disabled People of SA

NUMSA, MEWUSA,CEPPWAWU

Dept of Labour - UIF

Dept of Labour - UIF

SAQA, Sci Bono, NYDA

NUMSA, MEWUSA,CEPPWAWU

WorldSkills SA

Disabled People of SA

Budgetary Overview

2013/2014 Total costs per target Description Target Unit Cost Value of Commitment

Employed/unemployed artisans entered 6 000 140 000 840 000 000 Employed/unemployed learnerships entered 9 000 33 000 297 000 000 Unemployed Interns entered 221 6 000 1 326 000 Employed/unemployed skills programmes entered 4 900 9 000 44 100 000 Unemployed bursaries entered 350 35 000 12 250 000 Employed bursaries entered 132 15 000 1 980 000 Work Experience entered 662 15 000 9 930 000 Workplace Placement 1 500 6 000 9 000 000 1 215 586 000 Cost of existing bursaries 2013/14 28 300 000 Total Cost of Training 2013/14 1 243 886 000 Administration Costs Budget 128 760 674 Total Costs 1 372 646 674

Projected IncomeProjected Levy Income 1 046 669 882 Other Income projected 119 909 740 Total Projected Income 1 166 579 622 Projected Shortfall -206 067 052

Commitments at 31 March 2013

Balances as at 31 March 2013

R'000

Bank Reserves 1 135 207 Total commitments 914 187 Total current liabilities 203 856 Available reserves 17,164

Learning Interventions Committed

Cost Analysis per Priority

The essential but non-focus learning areas consists of interventions such as:

- Training Layoff Scheme - HIV/Aids in workplaces - People with disabilities - Foundational Learning Certificates - Co-operatives projects - Non-levy paying CBOs and NGOs - SME Project

Planned Performance 2013/2014

LEARNING PROGRAMMES TARGETS

Workers Entering Learnerships 4 500

Workers Entering Bursaries 132

Workers Entering Skills Programmes 3 400

Workers Certificated in Learnerships 2 200

Workers Certificated in Bursaries 10

Workers Certificated in Skills Programmes 2 380

Unemployed Entering Learnerships 4 500

Unemployed Entering Bursaries 350

Unemployed Entering Internships/Workplace Experience 221

Unemployed Entering Skills Programmes 1 500

Unemployed Certificated in Learnerships 1 600

Unemployed Certificated in Bursaries 47

Unemployed Certificated in Internships/Workplace Experience 110

Unemployed Certificated in Skills Programmes 1 690

Artisan Entered Employed 2 400

Planned Performance 2013/2014 cont ...d

LEARNING PROGRAMMES TARGETS

Artisan Certificated Employed 1 200

Unemployed Artisans Entered 3 600

Unemployed Artisans Completed 2 000

Total Artisans Entered 6 000

Total Artisans Completed 3 200

FET Graduate Placement 1 350

Work Integrated Learning (Universities) Experiential Learning (work experience)

662

FET College Partnerships 14

AET Programmes Entered 1 500

AET Programmes Certified 1 050

Cooperatives Supported 16

Small Business Supported 2 315

NGOs 10

NLPE 200

CBO 5

Career Guidance Provided 1 720

THANK YOU

Ms Phindile Nzimande: Chairperson Dr Raymond Patel: CEOMr Wayne Adams: COO

Ms Lindiwe Ndlela: CFO Mr Derrick Peo: GM: IRD

Ms Valerie Ndou: Acting GM: HRS&C

Tel: 010 219 3338Email: ceo@merseta.org.za

www.merseta.org.za