Sector Skills Plan - Food & Bev · o The industrial and occupational profile of the sector o The profile of the workforce 1.1 THE ECONOMIC ENVIRONMENT 1.1.1 The Macro-Economy and

Sector Skills Plan

2005 – 2010

Updated August 2007

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Food and Beverages Manufacturing Sector Education and Training Authroity Sector Skills Plan 2005-10 - Updated August 2007 ____________________________________________________________________________________

TABLE OF CONTENTS

ACKNOWLEDGEMENTS 7 FOREWORD 8 CHAPTER 1 - SECTOR PROFILE 9

1.1 THE ECONOMIC ENVIRONMENT 9 1.1.1 The Macro-Economy and Labour Market 9 1.1.2 Economic Context: Food and Beverages Manufacturing Sector 11 1.1.3 National and Provincial Strategic Frameworks 11

1.2 SOCIO-POLITICAL FACTORS 12 1.3 POLICY AND LEGISLATION 13 1.4 TECHNOLOGY 13 1.5 INDUSTRIAL AND OCCUPATIONAL PROFILE OF SECTOR 13 1.5.1 Standard Industrial Classification

Coding of Companies 14 1.5.2 Summary Profile of Employers 16 1.5.3 Profile of the Workforce 17

1.6 DRIVERS OF CHANGE 19 1.7 CONCLUSION 25

CHAPTER 2 - DEMAND FOR SKILLS 26 2.1 CURRENT QUALIFICATIONS PROFILE OF WORKFORCE 26 2.2 OCCUPATIONAL STRUCTURE 28 2.3 EMPLOYMENT TRENDS AND PATTERNS 28 2.3.1 Sectoral Growth/Decline 30 2.3.2 Industry Projections: Growth/Decline 30 2.3.3 Recruitment and Replacement Requirements 31 2.4 SKILLS REQUIREMENTS 32 2.4.1 Scarce Skills Requirements 32 2.4.2 Critical Skills Needs 32 2.4.3 Skills Needs Related to Compliance Requirements 33 2.5 FUTURE EMPLOYMENT SIGNALLING 33 CHAPTER 3 - SUPPLY OF SKILLS 35 3.1 THE NATIONAL SCENARIO 35 3.2 STOCKS AND FLOWS OF SKILLS AND QUALIFICATIONS 37

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3.3 QUALITY AND ADEQUACY OF SUPPLY 39

3.3.1 Supply: Further Education 39 3.3.2 Supply: Higher Education 40 3.3.3 Enterprise Initiatives 41 3.3.4 Supply from Private Providers 44 3.3.5 Adequacy of Provision 45 3.6 CONCLUSION 45

CHAPTER 4 – SCARCE AND CRITICAL SKILLS

IDENTIFICATION 46 4.1 INTRODUCTION 46 4.2 RESEARCH METHODOLOGY 46 4.3 DEFINITION: SCARCE AND CRITICAL SKILLS 47 4.4 INTERPRETING SCARCE AND CRITICAL SKILLS WITHIN THE FOOD AND BEVERAGES MANUFACTURING SECTOR 49 4.5 SCARCE SKILLS PRIORITISED 49 4.5.1 Engineering and Trades Workers 49 4.5.2 Manufacturing, Production/Operations 53 4.5.3 Support functions 53 4.6 SCARCE SKILLS: EQUITY CANDIDATES 55 4.7 DEVELOPING A STRATEGY TO ADDRESS SCARCE SKILLS 55 4.8 FOODBEV APPROAQCH TO ADDRESS SCARCITY SCARCE SKILLS 57 4.9 DETAILED LIST OF SCARCE SKILLS AS PER OCCUPATION FRAMEWORK FOR OCCUPATIONS 59 CHAPTER 5 – SMALL BUSINESS, ENTREPRENEURIAL OPPORTUNITIES AND OTHER NSDS PRIORITIES

5.1 GROWTH AND DEVELOPMENT STRATEGIES 65 5.2 SCARCE SKILLS PROJECTS 65 5.3 QUALITY AND ADEQUACY OF PROVISION 66 5.4 SUPPORT FOR ENTREPRENEURIAL AND SMALL BUSINESS

DEVELOPMENT 66 5.5 FOODBEV SETA CONTRIBUTION TO NSDS 67

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ANNEXURES

ANNEXURE A: REFERENCES 71

ANNEXURE B: ABBREVIATIONS AND ACRONYMS 72

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LIST OF FIGURES

Figure 1: Employment Trends 10 Figure 2: Chamber Distribution of FoodBev SETA 16 Figure 3: Size Categories of Levy Paying Companies 16 Figure 4: Provincial Spread of Companies 17 Figure 5: Equity Breakdown of Workforce 18 Figure 6: Gender Breakdown of Workforce 18 Figure 7: Geographic Distribution of Employees 19 Figure 8: Qualifications Profile 27 Figure 9: Equity Breakdown: Sector qualifications 27 Figure 10: Employment Trends: Formal and Informal

Sector Employment 29

Figure 11: Industry Projections: Vacancies 30 Figure 12: Reasons for Scarcity of Skills 33 Figure 13: National Recruitment Difficulties 36 Figure 14: Required Educational Levels of Recruits 37 Figure 15: Structured Learning per Occupational Group 41 Figure 16: Investment in Training: Equity 41 Figure 17: Learnership Statistics 42 Figure 18: Type of Learning Programmes best suited to

Develop Scarce Skills 43 Figure 19: Chamber distribution of companies that participated in

Survey 47

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LIST OF TABLES

Table 1: Business activities according to SIC system 14 Table 2: Occupational breakdown of workforce 18 Table 3: Summary of factors impacting the sector 20 Table 4: Strengths, weaknesses, opportunities, threats 25 Table 5: Qualifications profile of workforce 26 Table 6: Sectoral employment totals 29 Table 7: Scarce skills requirements 32 Table 8: Addressing reasons for scarcity 34 Table 9: Qualifications profile of South Africans 35 Table 10: Occupations experiencing relative and absolute scarcity 38 Table 11: Equity profile of training interventions 41 Table 12: Adequacy of learning programmes 45 Table 13: Distribution of research participants according to Company size 46 Table 14: Engineering and trades workers 50 Table 15: Manufacturing/production/operations 52 Table 16: Support functions 54 Table 17: Scarce skills: equity candidates 55 Table 18: Scarce skills ranked by number of companies who

mentioned scarcity 59

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ACKNOWLEDGEMENTS

Foodbev Seta acknowledges the contribution of each stakeholder who participated either directly or indirectly in the development of this Sector Skills Plan. A special word of gratitude to

• companies who participated in sector surveys completed the scarce skills research section of the Workplace Skills Plan

• the SSP Committee for contributing to the contents of the document

• the Food Standards Generating Body

• Foodbev SETA Executive Committee members

• the Department of Trade and Industry for making resources available to participate

• the Department of Agriculture for participating in the process

• the Department of Labour who provided advise and guidance on the process adopted

• Members from organised labour

• Each company that participates in the mandatory grant system, for supplying invaluable data (which assisted in the compilation of statistics)

• South African Institute of Consumer Research

• South African Meat Processing Association

• South African Chamber of Baking

• Milk South Africa

• South African Wine and Brandy Company

• Cape Wine and Spirits Institute

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FOREWORD

Skills development holds a central place in the activities required to enable the economy to change and grow. This is the precept that has given rise to the broad national Human Resources Development Strategy which is supported by the agreements reached at the watershed Growth and Development Summit held in 2003. The overriding aims that have shaped the agreements at the summit are that the country:

− Is the leading emerging market for investors with social equity and fair labour standards

− Is a productive economy based on skills and modern systems of work organisation & management

− Has economic opportunities for all, poverty is eradicated, income inequality is reduced and basic services are available for all

− Sees its people develop to their fullest potential

− Is characterised by values of social equity, fairness and human dignity

Derived from these focuses is the National Skills Development Strategy that will lead skills development for the next five years. This SSP is developed from the direction provided by the NSDS and strives to take into account a changing micro economic environment in this sector. This document reflects these central concerns and provides an implementation framework for the achievement of the strategy in the Food and Beverages Manufacturing Sector. It is hoped that the reader will benefit from the insights afforded by this study and is intended to provide a blueprint for FoodBev Seta’s activities over the next 3 years. Ravin Deonarain Executvie Officer FoodBev SETA

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CHAPTER 1 – SECTOR PROFILE

Chapter 1 sets out to define the Food and Beverages Manufacturing Sector and describes the context within which it functions. An analysis is done of: o Factors impacting the sector, including national, provincial and sector-specific growth and

development strategies:

� The economic environment � Policy and legislative factors � Socio-political influences � Technological changes � Environmental issues

o Changes that occurred over time, and projected future changes. o The industrial and occupational profile of the sector o The profile of the workforce

1.1 THE ECONOMIC ENVIRONMENT 1.1.1 The Macro-Economy and Labour Market Real economic growth and employment performance of the SA economy has shown a gradual deterioration over the past few decades. GDP growth declined from 6% in the 1980’s, to 2% in the late 1990’s. An upward turn has however been experienced with a GDP figure of 5,1% for 2005 and 5% for 2006 respectively. South Africa is the leading country in Africa in terms of industrial output with a growing manufacturing sector. The Accelerated and Shared Growth Initiative for South Africa (ASGI-SA) aims at achieving an economic growth rate of 4.5 % p.a. between 2005 and 2009, and an average rate of 6% between 2010 and 2014. The labour market, as from the late 1980’s, has been subject to major changes, with trade and tariff liberalisation and accelerated adoption of new technologies being major contributors. Competetiveness in both domestic and international markets increased, and led to an increase in captial intensification. Since 1994, broad macro-economic stabilisation has been achieved. Trade liberalisation has resulted in a range of positive spin-offs (diversification of exports, stimulation of domestic demand and productivity increases) but the impact on employment growth is questioned by many economists.

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What is agreed is that, whilst the net impact of trade liberalisation on aggregate employment may not have been significant, it has been associated with a change in the composition of labour demand, with an increase in the demand for skilled labour and a growing surplus of unskilled or semi-skilled people

1.

The increased demand for skilled labour (or, inadequate supply) will inhibit international investment and economic growth. Therefore, increased investment in appropriate skills development is critical, with investment targeted at the development of skills matching those required by industry. This principle is also embedded in ASGI-SA. At the bottom-end, job-shedding of unskilled and semi skilled labour intensified, referred to by some economists as “jobless growth” of the economy. However, formal sector employment growth showed signs of recovery since 1998, with and increase of 700 000 jobs in the formal sector between 1996 and 2001

2, as indicated in Figure 1.

Figure 1: Employment Trends

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

1996 1997 1998 1999 2000 2001

Total & formal sector

employment

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Informal sector employment

Formal sector employment Total Employment Informal sector employment

(HSRC’s HRD Data Warehouse http://hrdwarehouse.hsrc.ac.za)

Critically, growth in employment demand must be defined in real terms. Although employment grew by 12% between 1995 and 1999, labour supply grew by 33,4%, which implies negative net employment growth. A principle that is emerging is the necessity of streamlining the inter-dependency of economic, industrial, company and human resource development policies and legislation. The success of skills development interventions is highly dependent on government policies and processes (cross-sectoral) being successfully implemented, e.g. initiating and sustaining labour-absorbing employment growth at a national level.

1 Mc Cord, A, 2003 – Overview of the South African Economy, HRD Review 2003

2 HSRC’s HRD Data Warehouse http://hrdwarehouse.hsrc.ac.za

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Unless scarce and critical skills shortages are appropriately identified, the strategies developed may simply translate into a highly skilled group of unemployed individuals. With the adoption of the ASGI-SA, which aims at reducing unemployment and poverty by half over the next eight years, and providing the skills required by the economy, the need for focussed skills development interventions is reconfirmed. The above macro-economic scenario needs to be contextualised within the Food and Beverages Manufacturing sector. In the sections that follow, it will become evident that the macro-economic picture described above, is mirrored in this economic sector.

1.1.2 Economic Context: Food and Beverages Manufacturing Sector The food and beverages manufacturing sector is a core economic activity in South Africa, with supply-chain linkages ranging from primary producers, through processing and logistics, to the domestic retailing sector and exports. In addition to contributing to a significant trade surplus every year, it is an important provider of business opportunities, therefore employment. Although value of sales in the FoodBev sector grew by half the rate of the manufacturing sector between 1996 and 2001, a nett growth of 0,56% is reflected for 2002/03, compared to negative growth in the value of sales for manufacturing as a whole - 4,01%. This is a positive trend, especially if the impact of high food inflation rates during that period is taken into account.

3

Food and beverage exports represents 11,3% of total exports within the manufacturing sector, and experienced relative growth of 2% over the past ten years. The beverages sub-sector is regarded as the strongest nett exporter. The sector’s export figures are 65% higher than import figures (with a slight downward trend over the past two years, primarily due to the weakening of the exchange rate). Economic growth in the sector is projected to experience growth parallel to that of the broader economy - 4 – 5% annually over the next three years. Despite a substantial growth in manufacturing exports, the sector has not witnessed a direct, parallel growth in employment. The projected future economic growth of the sector should impact growth in employment opportunities, as will be discussed in the chapters to follow. Employment within the Food and Beverages manufacturing sector constitutes 2% of total employment in the formal economy, and is estimated at 160 000 workers.

1.1.3 National and Provincial Strategic Frameworks At the Growth and Development Summit, 2003, social partners committed themselves to a common vision for promoting rising levels of growth, investment, job creation and people-centred development.

3 Statistics South Africa – Quarterly Reviews; 2000 - 2005

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It was agreed that sector strategies are needed to restructure the economy toward equitable, employment-creating growth. As a result, the National Department of Agriculture released an Agri-BEE Framework in July 2004, complementary to the Strategic Plan for Agriculture. This includes a range of key deliverables to be achieved by the agricultural/agro-processing sector. FoodBev SETA is a co-signatory to this Framework and will support implementation of the strategic plan. It is highlighted that, in many agricultural areas, opportunities for participation does not only lie at the primary production/farming level, but that many potential growth areas exist as you move up the agro-processing value-chain

4. The higher end of the value chain tends to be increasingly

technology intensive and, if to be sustainable, requires improved levels of skills at all levels. At provincial level, growth and development strategies have been developed and specific projects have been identified to contribute to economic sustainable employment growth. With the introduction of ASGI-SA, infrastructure development will be a focus point and the initiative aims at reducing unemployment and poverty by half over the next nine years. One of the spin-offs would be a growth in food and beverages production and consequently an increased demand for skilled personnel. Various industry charters are in the process of being drafted - the Wine Charter and the Liquor Manufacturers and Distributors Charter. Linkages have already been established regarding skills development support.

1.2 SOCIO-POLITICAL FACTORS South Africa is in a process of social and political transformation, with emphasis on redistribution and addressing social disparity. These principles are embedded in legislation such as the Employment Equity Act, the Broad Based Black Economic Empowerment Act and the Skills Development Act. Ideological and political agreement on the priorities for the country are being reached. In 2003, however, research indicated that 46% of the population still live below the poverty line, and the unemployment rate is between 30% and 40%

5.

One of the biggest crises facing Southern Africa is HIV/Aids. The Medical Research Council

attributes 40% of mortality in the 15 – 49 year age group during 1999-2000 to Aids6. This age

group constitutes a critical period in terms of entry into the labour market and a consolidation of skills and experience. Consumer manufacturing has been identified as one of the high-risk sectors to be affected by the HIV/Aids pandemic, with a projected prevelance rate of 21% by 2010

7. There is little indication

that companies are putting into place comprehensive succession plans for the recruitment and training of new staff to replace labour and skills loss through AIDS. Financial investment in education and training may be jeopardised, as there is not guarantee that there will be a concomitant return on the investment.

4 DoA, Strategic Plan for Agriculture, 2005 5 Socio-Political Environment: Trends, Challenges and Prospects, Oct 2003, W Esterhuyse, Metlife 6 Medical Research Council, quoted by Jocelyn Vass, HRD Review 2003 7 ING Barings model as cited in Quattek, 2000

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The increase in crime in the country may impact foreign investment, tourism and contributes to the “brain drain” that the country experience.

1.3 POLICY AND LEGISLATION Various economic policies related to globalisation such as trade and tariff liberalisation, deregulation, GATT, GEAR and inflation targeting increased the potential for exporting and increased trading. With this came the technological and skills requirement adjustments necessary for competing in the global market.

1.4 TECHNOLOGY Mechanisation implied job-shedding at the lower occupational levels. With a growing number of companies adopting World Class Manufacturing processes, upskilling of the existing labour force or replacement of exiting skills with higher skills levels became essential. With increased emphasis on food safety and hygiene and the implementation of internationally recognised systems that underpin food safety, new skills requirements became a prerequisite. The anticipated promulgation of environmental legislation applicable to the manufacturing sector may have further implications for technology adjustments.

1.5 INDUSTRIAL AND OCCUPATIONAL PROFILE OF SECTOR Table 1 reflects the demarcation of FoodBev SETA (all companies involved in food and/or beverages manufacturing).

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1.5.1 Standard Industrial Classification Coding of Companies

Table 1: Business Activities according to the Standard Industrial Classification Coding System SIC Code Description

Registered Paying Levy

Baking, Cereals, Confectionary and Snacks Chamber

30312 Manufacture of breakfast foods 40 10

30410 Manufacture of bakery products 1201 257

30430 Manufacture of cocoa, chocolate and sugar confectionery 138 37

30492 Manufacture of nut food 56 22

Beverage Manufacturing Chamber

30500 Manufacture of beverages 135 40

30510 Distilling, rectifying and blending of spirits, alcohol production from fermented materials and manufacture of wine

391 112

30520 Manufacture of beer and other malt liquors and malt 56 7

30521 Breweries (except sorghum) 74 13

30522 Sorghum beer breweries 21 2

30523 Manufacture of malt 16 2

30530 Manufacture of soft drinks, production of mineral waters 135 41

Dairy manufacturing Chamber

30200 Manufacture of dairy products 260 83

30201 Processing of fresh milk 108 23

30202 Manufacture of butter and cheese 25 9

30203 Manufacture of ice cream and other edible ice 84 22

30204 Manufacture of milk powder. Condensed milk and other edible milk products

26 6

Manufacture of Food Preparation Products Chamber

30113 Production of lard and other edible fats 6 0

30140 Manufacture of vegetable and animal oils and fats 41 17

30141 Manufacture of crude oil and oil seed cake and meal 17 6

30142 Manufacture of compound cooking fats, margarine and edible oils 14 7

30401 Manufacture of food preparation products 109 187

30440 Manufacture of macaroni, noodles and similar farinaceous products 28 7

30490 Manufacture of other food products n.e.c 1244 217

30491 Manufacture of coffee, coffee substitutes and tea 66 20

30499 Manufacture of spices, condiments, vinegar, yeast, egg, products, soups and other food products

143 69

Processed and preserved meat, fish, fruit & vegetables Chamber

30100 Production, processing & preservation of meat , fish, fruit, vegetables, oils and fats

378 94

30110 Production, processing & preserving of meat and meat products 875 187

30112 Manufacture of prepared and preserved meat, including sausage 198 47

30120 Processing and preserving of fish and fish products 190 68

30121 Manufacture of canned, preserved and processed fish, crustaceans and similar foods

49 19

30130 Processing and preserving fruit and vegetables 264 62

30131 Manufacture of canned, preserved, processed and dehydrated fruit and vegetables (except soup)

96 34

Unknown 62 10

Total 7 460 1 737

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Of the above 7 460 companies, 1 737 are paying the skills development levy, and 480 participate in the mandatory grant system. The number of levy-paying companies increased by 12,14% from the previous year. This is a clear indication that the sector is growing. The sector is dominated by a small number of national and multi-national companies, with the largest contingent (90%) of companies employing less than 50 employees. Medium-sized companies (employing between 50 and 150 employees) constitute 6.1% of employers, and only 3,9% employ more than 150 workers. (Figure 3)

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1.5.2 Summary profile of employers

The industries or sub-sectors in the Food and Beverages Manufacturing sector have been grouped into five Foodbev SETA Chambers. The graph below illustrates the percentage distribution of companies per FoodBev SETA Chambers:

Figure 2: Chamber Distribution of FoodBev SETA: Number of Companies

Chamber Distribution

19%

12%

7%

33%

29% Baking, Cereals, Confectionary &

Snacks

Beverages

Dairy

Manufacture of Food PreparationProducts

Processed and Preserved Meat,Fish, Fruit and Vegetables

Source: Aggregated data from WSP’s 2005/06

The largest Chamber, the Manufacture of Food Preparation Products,, represents 33% of companies. The Dairy Manufacturing Chamber, as the smallest Chamber, represents 6% of companies. Figure 3 reflects size categories of companies contributing to the skills levy.

Figure 3: Size Categories of Levy Paying Companies

150 215

2435

0

500

1000

1500

2000

2500

No o

f C

om

panie

s

150+

50-150

Less than 50

Source: FoodBev SETA Database

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Research to obtain baseline information on BEE companies in the sector is challenging. A process of research has commenced to establish a baseline. The provincial spread of companies is concentrated in three provinces, namely Western Cape (54%), Gauteng (36) and Kwazulu-Natal (24%), with smaller representation in the other provinces.

Figure 4: Provincial Spread of Companies

14.8

8.2

36.6

24

8.2 9.3 8.2 7.1

54.1

0

10

20

30

40

50

60

Percentage

Eastern Cape

Free State

Gauteng

KZN

Limpopo

Mpumalanga

North West

Northern Prov

Western Cape

Source: FoodBev Sector Survey 2006

1.5.3 Profile of the workforce

The composition of the workforce still reflects the legacy of apartheid and illustrates an employment profile that is heavily segmented along racial and gender lines. As illustrated in Table 2 (Figures 5 & 6), 17% of the workforce is White, but at the level of Managers and Professionals 70,5% is still White. Thirty-six percent (36%) of employees is female, with only 19% females at management level. The sector consists of a predominantly male workforce except in clerical and administrative occupations.

This reconfirms signals towards skills development interventions that recognise the heterogeneity of the South African labour market and an increase in the quality and relevance of education and training (towards improving labour market mobility).

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The table and pictures below provide a profile of employees in the FoodBev sector by race, gender and broad “Organising Framework for Occupations” categories, based on as sample of 62% of employees in the sector (aggregated WSP’s 2005/06). Table 2: Occupational Breakdown of Workforce African Coloured Asian White Total

M F D M F D M F D M F D M F D

Managers 532 121 0 301 111 0 344 53 2 3067 719 12 4244 1004 14

Professionals 308 123 0 199 86 0 245 117 0 1587 709 15 2339 1035 15

Technicians and Trade Workers 1501 461 1 870 399 2 495 153 1 2046 939 6 4912 1952 10

Clerical and Admin Workers 1690 1156 8 1079 1383 4 589 521 3 729 3722 9 4087 6782 24

Sales Workers 4965 1745 3 1354 657 3 629 165 0 1259 1059 0 8207 3626 6

Machine Operators and Drivers 15843 4695 20 4850 3069 2 1088 176 3 2371 103 7 24152 8043 32

Labourers 16769 8487 65 4119 8070 21 273 118 2 253 115 5 21414 16790 93

TOTAL 41608 16788 97 12772 13775 32 3663 1303 11 11312 7366 54 69355 39232 194

Figure 5: Equity Breakdown of Workforce Figure 6: Gender Breakdown of Workforce

0

10

20

30

40

50

60

70

80

90

100

Ma nagers

Profes sionals

Te chnicai ns a nd Trade workers

Clerical

Sales

Work ers

Machine O

per. & Driv ers

Labourers

%

Black

White

0

10

20

30

40

50

60

70

80

90

100

Managers

Professionals

Technicians & Trade W

orkers

Clerical

Sales Workers

Machine O

per. & Drivers

Labourers

%

Male

Female

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Geographic distribution of employees in the sector is provided in Figure 6. The largest concentration of employees is in the Western Cape - 37%, comprising 56 289 employees, with the smallest concentration, 0,5%, in the Northern Cape (695 employees). Employment in the Western Cape increased from 30% to 37%, and in Gauteng from 25% to 34,9% compared with statistical analysis done in 2001. This probably illustrates the migration of labour to major urban areas and/or a change in concentration of enterprises.

Figure 7: Geographic Distribution of Employees

37%34.90%

11.3%

9.5%

1.9%1.8%

1.6% 1.4% 0.5% 0.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

% Employees

Western Cape

Gauteng

Eastern Cape

KwaZulu-Natal

Mpumalanga

Free State

Northern Province

North West

Northern Cape

Unknown

Source: Aggregated WSP 2005/06 Data

1.6 DRIVERS OF CHANGE A range of external factors can be described as “drivers of change” in the sector. These are provided in tabular form on the following pages. The section that follows set the scene for skills development in the sector. It identifies key issues that impact sector development and have implications for skills development.

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TABLE 3: SUMMARY OF FACTORS IMPACTING THE FOOD AND BEVERAGES MANUFACTURING SECTOR

Factor Specific Detail Nature of Impact

(Positive/ Negative/ Neutral)

Trend

(Increased impact/ stable/

decreased impact)

Nature and Implications of Impact (business/economic impact)

Labour Supply and Demand, (impact on labour supply-demand)

Implications for Skills Requirements

Policies related to globalisation: EU trade agreement, trade tariff legislation, SADC strategy, deregulation, inflation targeting, GATT, GEAR

Positive/ Negative

Stable Potential for international expansion and to develop export markets Increase in imports, forcing companies to become globally competitive - leads to increased mechanisation

Potential retrenchments due to mechanisation - “job-shedding” Differenct skills sets required – may lead to scarce skills

Higher and different skills levels required - possible new occupations emerging Possible scarce skills Critical skills within existing occupations emerging

Accelerated and Shared Growth Initiative for South Africa

Positive Increased impact

Accelerated economic/business growth Establishing of new business ventures

Inadequacy in supply in certain occupations, e.g. operations managers. Inadequate skills sets for new venture establishment

Focused skills development that addresses changing needs in the economy. Entrepreneurial skills development initiatives

Provincial Growth and Development Strategies


Economic growth at provincial level Business establishment and growth

Increase in employment opportunities Possible scarce and/or critical skills emerging

Skills development interventions linked to identified growth areas and sustainable projects

Draft Agro-Processing Sector Development Strategy (Dept of Agriculture and DTI)


Business growth at the higher end of the value chain

Possible scarce and critical skills emerging Entrepreneurial skills/competencies required

Focused skills development that addresses changing needs in the economy. Entrepreneurial skills development initiatives Literacy and Numeracy training

Policy and Legislative Issues

Industry Charters Positive Increased impact

Business growth Establishment/growth in BEE companies Change in equitey profile in industires

Possible scarce and critical skills emerging Entrepreneurial skills/competencies required

Focused skills development that addresses changing needs in the economy. Entrepreneurial skills development initiatives Literacy and Numeracy training

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Trend


decreased impact)




Food Quality and Hygiene (HACCP)

Positive/ Negative

Stable International pressure for implementation of Quality Management Systems - cost implications Increased export opportunities once implemented

Critical skills Employees are literate and numerate at all occupational levels Requirement built into unit standards (as core) Learnerships /skills programmes

OHS Act Positive Stable Legal requirement - larger enterprises well established systems and practices.

As above

Skills Development Strategy Positive Increased impact

Consolidation and building upon skills development requirements and processes Benefits of experience curve lowers delivery costs Greater emphasis on quality assurance Unfolding of the Skills Development Strategy perceived to be slow and bureaucratic Costly process

Additional skills requirements for Skills Development Facilitators; assessors; moderators; coaches and mentors to deliver on learnership targets

Employment Equity Positive Stable/ Increased impact

Transformation with regard to employment equity cannot be achieved without the support of skills development

Employment equity and skills development planning should be a complementary process

EE plan to inform skills development requirements. Linkage through new NSDS objectives Internal scarce as well as critical skills

Broad Based Black Economic Empowerment

Positive Stable/ Increased impact

Change in supply chain composition SMME Development Skills Development Corporate profile

BBBEE plan to inform skills development requirements. Linkage through new NSDS objectives Internal scarce as well as critical skills

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Trend


decreased impact)




Output/economic growth Neutral

Stable Sector output projected to grow by 3 – 4% Potential for expansion into international markets - need to become globally competitive Growth influenced negatively by imports (related to deregulation of import tariffs)

Relatively low growth rate combined with mechanisation Scarce and critical skills as a result of replacement demand and technology/globalisation

Multi-skilling and up-skilling required (To tie in with scarce and critical needs Identified)

Productivity Positive Stable/ Increased impact

Need to achieve world-class competitiveness: adoption of latest technology, emphasis on QMS Increased tendency to export raw materials - SA companies have to compete with dollar market prices - impact directly on production costs Increased imports: insufficient government emphasis on South African manufacturing

Possible decrease in employment due to technological changes, higher entry level requirements Emphasis on establishment of new businesses

Focused skills development that addresses changing needs in the economy. Entrepreneurial skills development initiatives Literacy and numeracy training

Consumer patterns Neutral

Stable Changing on a continuous basis Impact on research and development, marketing and sales

N/A Continuous research and development skills /technical and sales/marketing required Critical Skills

Mergers/international investors Neutral

Stable Increase in mergers - amongst local companies as well as with internationals.

Rationalisation and retrenchments result

Increased skills supply SMME type/entrepreneurial skills

Economic Factors

Imports/exports Positive/ Negative

Stable Growing potential for export Increase in imports - negative effect on internal markets Insufficient focus on export potential by companies and government

N/A Higher level skills shortages due to competitiveness Lower level skills supply increased

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Trend


decreased impact)




Growth and Development Summit Agreements

Growth Sectors Expanded Public Works Programme

Positive Stable/ Increase impact

Export Sectors growth Agro Processing upstream and downstream benefits Food security programs

Growth in demand Critical skills all levels; scarce skills certain occupations

HIV/AIDS Negative Increased impact

Direct increase in costs (health care, employee benefits) Indirect costs (absenteeism, reduced job performance, loss of skilled people resulting in higher recruitment and training costs) Companies restricted by legislation to plan for dealing with occurrence of HIV/AIDS (and impacting on HR planning)

Impacts especially at the lower occupational levels, but cuts across all levels of employment - decrease in available skills

Increased investment in skills development activities

Unemployment Negative Stable National increase in unemployment Increase within the sector caused by technological changes and economic growth

Increase in supply of skilled and unskilled labour

Facilitation of SMME development a key focus to assist in employment creation

Social Issues

Crime Negative High levels of crime nationally and within enterprises

Related to unemployment - reflect on the need to support SMME development

Transformation in workplace required (improved employer-employee relationships) Need for basic business understanding

Technological Changes

Increased mechanisation, computer control production processes; robotics, PLC’s

Positive/ Negative

Stable Essential to maintain world class competitiveness

Higher skills levels required; resulting in scarce skills Multi-skilling essential

Understanding of the total production process required (both operator and artisan levels) – focus on scarce skills Constant need for training and re-training - addressing critical skills identified

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Trend


decreased impact)




Growth in E-commerce and integrated IT systems

Positive/ Negative

Stable Essential to participate in a global economy Increased need due to technological changes

N/A IT skills upliftment required across all occupational levels (identifed as a critical skill)

Environmental Issues

Environmental considerations impact across all sub sectors - pollution, waste water management, etc.

Neutral

Need to comply with national and international requirements

N/A The need, especially at the lower levels exists to create an understanding of the importance of environmental awareness and its relationship to ergonomics

Page 25 of 72


1.7 Conclusion

The impact or implications of the preceeding analysis can be summarised in an anlysis of strengths, weaknesses, opportunities and threats impacting the sector.

Table 4: Strengths, Weaknesses, Opportunities, Threats

Strengths

• Projected economic growth

• Increase in exports

• National and provincial growth strategies

• Industry charters

• Expanded scope of NSDS – more opportunities to contribute to decreasing scarce skills and addressing critical skills

Weaknesses

• Relatively low productivity levels

• Low levels of literacy and numeracy

• Inadequate skills levy funds to address all scarce and critical skills identified

• Inadequate skills sets of existing employees and potential new recruits

• Scarce skills in certain occupational groups and the lead time to develop people too long

Opportunities

• Link with national and provincial growth strategies

• Strategic partnerships to support sustainability

• Broader scope of new NSDS

• Clear identificatiom of scarce and critical skills

Threats

• Increase in imports

• Insufficient government emphasis on local manufacturing

• Retrenchments due to technology changes

• HIV/Aids

• National increase in unemployment

Within the context of a healthy, growing South African economy, positive economic growth of the food and beverages manufacturing sector is expected. Although parallel growth in employment opportunities is not anticipated, it is projected that employment opportunites will neverthelss grow at a slower rate. With national emphasis on BBBEE and establishment and growth of sustainable new businesses, opportunities exist to support growth of the sector though support to new small business development across the agro-processing value-chain. In the sections that follow, this analysis will be used as input into developing a focused skills development strategy for the sector. For the first time it will be possible to focus skills development interventions on quantified scarce and critical skills, and to track the impact of skills development interventions aimed at addressing these skills needs.

Page 26 of 72


CHAPTER 2 – DEMAND FOR SKILLS

This chapter provides a broad analysis of the demand for skills at two levels: occupational scarcity and skills gaps within occupations. The demand for skills has been analysed through an evaluation of: o Current employment and more specifically, current skills levels o An evaluation of changes in occupational structure o Replacement needs in the sector, evaluated against projected sector

growth/decline o Growth or decline in demand for different occupational categories, i.e an

analysis of employment trends The discussion in this chapter reflects both quantitative and qualitative analyses.

2.1 CURRENT QUALIFICATIONS PROFILE OF WORKFORCE

Section 1.2.2 (previous Chapter) provides a description of the current labour composition in the sector. The following table illustrates the current educational profile of employees in the sector, based on a sample of 50% of total employment (aggregated data from WSP’s).

Table 5: Qualifications Profile of Workforce

African Coloured Indian White Total

M F M F M F M F M F D

8 31 13 4 2 17 8 134 56 186 79 1

7 89 40 45 35 51 25 662 235 847 335 2

6 423 185 197 149 155 94 1230 694 2005 1122 5

HET 5 1097 420 550 352 326 140 1867 1086 3840 1998 13

4 5357 2024 2521 1920 848 307 2876 2400 11602 6651 45

3 3040 1078 938 746 191 37 275 130 4444 1991 14

FET 2 3450 1007 1425 1226 163 11 440 226 5478 2470 23

GET 1 4990 1751 1393 1282 116 17 109 99 6608 3149 21

Below Get 4015 1932 41 762 1055 36 16 29 4842 3013 60

No proof of Qualification

4447 1595 968 1184 224 117 577 524 6216 3420 158

TOTAL 26939 10045 8803 7951 2127 772 8199 5460 46068 24228 342

Page 27 of 72


The qualifications profile of employees in the sector, expressed as percentages, is

illustrated in Figure 8. Figure 8: Qualifications Profile of Employees in the Sector

4.85%

28.28%

9.96%

12.32%

15.11%

12.16%

0.15%

14.93%1.83%

0.41% NQF 8

NQF 7

NQF 6

NQF 5

NQF 4

NQF 3

NQF 2

NQF 1

Below GET

No proof of

Qualification

Source: Aggregated data from WSP’s 2005-2006

From the above is evident that o 14,8% of the workforce in the sector has a post-matric qualification, compared to

12% the previous year o the biggest concentration (25.97%) of workers has a high school qualification

(matric) o 34% have a completed a Further Education grade o 24,8% have a qualification below NQF 1/below FET level, or companies do not

know the qualification level of employees. This is a substantial improvement on the 30% reported the previous year.

o Overall the qualification levels of employees in the sector have improved.

Figure 9: Equity Breakdown: Sector Qualifications

42.72

80.45

97.8793.48

57.28

19.45

2.136.52

0

20

40

60

80

100

120

HETFET

GET

Below GET

%

African

White

Source: Aggregated data from WSP’s 2006-2007

Page 28 of 72


The above statistics reconfirm the legacy of differential educational policies and employment opportunities: o Ninety-eight percent (98.6%) of employees with a primary school qualification

are Black o Of those with a qualification below NQF 1 only 2,13% is White.

Although the above employment profile may be typical of a blue-collar environment in South Africa, various signals for skills development should be drawn. Importantly, skills development interventions should support redress and the achievement of equity targets. Literacy and numeracy levels are low. This remains a skills development focus/priority, since technology changes and world class manufacturing processes are increasingly requiring higher skills levels, especially numeracy and computer literacy.

2.2 OCCUPATIONAL STRUCTURE

The composition of the workforce remained relatively stable over the past four years, and this trend is expected to continue. The implication is that, although the skills sets required within occupations are changing, the composition of occupational structure will remain fairly static (the same percentages of people employed across occupational categories, with a possibility of a small decrease of numbers employed at the lower occupational levels). This may signal relative scarcity of skills and skills gaps or critical skills shortages. Higher skills levels and more complex competency sets are required across most occupational groupings, whilst literacy and numeracy have become basic requirements for entry into the sector. More diverse skills are required at operator level, with computer literacy and technical maintenance skills as new/ broadened requirements. More emphasis is placed on research and product development competencies - a requirement to adjust to lifestyle changes (convenience foods) and an increase in health consciousness, among other. This function is frequently outsourced by companies.

2.3 EMPLOYMENT TRENDS AND PATTERNS

An analysis of employment trends and patterns has been based on: o Indicators for sector employment growth/decline o An analysis of recruitment and replacement demands, based on labour turnover

statistics. A concise overview is provided of national employment trends and patterns. The analysis of sector trends closely mirrors the national picture.

Page 29 of 72


Figure 10 differentiates between formal and informal sector employment growth/decline between 1996 and 2001, and illustrates the relatively faster growth of informal sector employment over this period.

Figure 10: Employment Trends: Formal and Informal Sector Employment

(HSRC’s HRD Data Warehouse http://hrdwarehouse.hsrc.ac.za)

Total employment in the country increased substantially between 1998 and 2000, with informal sector employment growing relatively faster than formal sector employment

8.

Table 3 indicates that employment in the manufacturing sector as a whole grew by 13% between 1995 and 2001

9.

Table 6: Sectoral Employment Totals

Sector 1995 2001 2001 as % of 1995

Agriculture 1184712 1051000 89

Mining 432857 487000 113

Manufacturing 1420956 1605000 113

Utilities 84041 95000 113

Construction 433492 594000 137

Trade 1650017 2397000 145

Transport 469200 543000 116

Financial 582897 975000 167

Community services 2151382 1988000 92

Domestic 800887 1055000 132

Unspecified 186601 43000 23

Total 9397042 10833000 115

Stats SA Labour Force Survey Sept. 2001 (P0210)

8 HSRC’s HRD Data Warehouse http://hrdwarehouse.hsrc.ac.za 9 Stats SA Labour Force Survey Sept. 2001 (P0210)

Page 30 of 72


2.3.1 Sectoral growth/decline

Employment in the food and beverages manufacturing sector declined by 4,33% between 1996 and 2003

10. However, from the year 2001, there are indications that a

gradual upward turn is occuring. This is further supported by research and projections of the Department of Labour National Skills Survey, 2003 which forecast a growth of 5 000 jobs by the end of 2006

11.

Research conducted in the sector in 2005 indicated a need for 10 495 new appointments in the sector by 2010 - actual number based on a sample size of 34% (Detail provided in chapter 4). The research updated in 2006 (based on as sample size of 40%) however show a need for 7 300 new appointments. Total employment of companies registered with FoodBev SETA increased from 140 000 in 2000 to 160 000 currently, which supports the projected upward trend in employment opportunities.

2.3.2 Industry projections: growth/decline FoodBev SETA conducted a sector survey in 2004. The following data is based on this survey. Figure 11 reflects industry projections on the number of vacant positions or positions that will be created in future across all occupational categories. Overall the forecast indicates a growing number of vacant positions.

Figure 11: Industry projections: Vacancies

Source: Sector survey 2004

(It should be noted that these figures are based on the perceptions of the individuals who completed research questionnaires during the first sector survey).

10 Statistics South Africa – Labour Force Surveys (p0210 series); 2000 - 2005

11 Department of Labour – Labour Market Survey, 2003. Compiled by HSRC.

Grand Total

0

5000

10000

15000

20000

25000

1999 2000 2001 2002 2003 2004 2005 2006

Weighted Number

Page 31 of 72


2.3.3 Recruitment and replacement requirements

FoodBev SETA commissioned sector research in October 2005. The following data is based on the findings of this research. Analysis of employee turnover per occupational category (cumulative for the period 1999 to 2006), indicated that the highest employee turnover occur among: o Operators o Managers o Technical and commercial sales representatives The main causes of employee turnover are: 39% resignations; 22.8% dismissals; 16.8% retirement; and 10.3% retrenchments. In terms of recruitment, 62,4% of appointments are made in a pre-existing vacancy, whilst 17,3% of appointments are made to a new position. The remaining 20,1% of appointments is a result of employing a former bursary holder, a mentorship programme or a job rotation programme. Employee turnover constituted 12,1% of total employment during 2002/03 (NSS 2003). If this trend remains relatively constant, it could imply a replacement demand of approximately 18 000 positions per year. Occupational categories where recruitment difficulties, generally, are experienced include: o Supply and distribution managers o Quality assurance managers o Production/Operations managers o Engineering specialists and engineers o Fitters o Millwrights o Electricians o Cellar masters In addition to the above occupational categories an inadequate supply, or relative scarcity of equity candidates are experienced in the following occupational categories: o General managers o Advertising, sales and marketing managers o Engineering managers o Accountants o Marketing specialists o Production/Operations managers o Technical sales representatives o Electronics and mechanical engineers o Electrical engineering technicians

Page 32 of 72


2.4 SKILLS REQUIREMENTS 2.4.1 Scarce Skills Requirements Detail in terms of scarce skills is provided in Chapter 4. In summary, the following number of people will be required over the next five years (sample size 45%):

Table 7: Scarce Skills Requirements

Occupational Grouping Refer Chapter 4 for Detail

Numbers required By 2010

Engineering 310

Trades 1 900

Manufacturing/production/operations management 450

Science/Food technology/microbiology/quality assurance specialists and managers

550

Specialised process and packaging operators 1600

Sales and marketing 800

Finance 250

Logistics, warehousing and distribution 550

Human resources 200

Cognisance must be taken of the fact that the above figures are based on estimates provided by companies, and on a sample size of 45%. The real need should therefore be much higher, and closer to the projected 18 000 identified as replacement demand during 2003 (NSS, 2003). 2.4.2 Critical Skills Needs In addition to the above, a number of occupations have been identified where critical skills shortages exit. Even though potential recruits are available to fill vacancies, they do not have the required skills sets to comply with the requirements of the occupation/position. These skills needs include: o Problem solving and problem identification, o Mathematical and numeracy skills, o Language and literacy, and o People handling skills o Conflict handling and o Working in Teams o ICT - at most occupational levels. Critical skills shortages are mainly “generic” and training can be supported though skills programmes that address these shortages as well as inclusion of these competencies in occupationally-based qualifications. In Chapter 4, detail is provided regarding scarce and critical skills, and critical skills needs are discussed within occupations where they have been identified. In summary,

Page 33 of 72


the occupations identified most frequently as scarce, require technical expertise specific to the Food and Beverage industry. Therefore, the most common category of scarce skills can be grouped as:

o Industry specific, technical occupations (including employees at management

level) Scarce occupations mentioned therefore cover a broad range, and frequently include elements of ciritical skills as well.

2.4.3 Skills Needs Related to Compliance Requirements: A further category of skills needs relates to compliance requirements. Three categories have been identified: o Food safety and hygiene (inadequate skills seta available - literacy and

numeracy training is a pre-requisite, with additional incentives for skills programmes)

o Occupational health and safety (adequate skills sets available, but legislation requires regular re-training)

o Forklift training (adequate skills sets available, but legislation requires regular re-training)

These areas require regular re-training to ensure “currency” of skills and competencies, and are a legal requirement or, in the case of food safety and hygiene, an international compliance requirement for companies involved in exporting.

2.5 FUTURE EMPLOYMENT SIGNALLING Scarcity of skills should be contextualised within the Food and Beverages Manufacturing sector. Reasons for scarcity, as noted by companies in the sector, include the following:

Figure 12: Reasons for Scarcity of Skills

FOODBEV SCARCE SKILLS SURVEY

The main reason for the scarcity of the skill

69.9

50.8

62.3

32.824.6

0

20

40

60

80

100

People do not

have the right

skills to perform

the job?

There are no

learning

programmes

available w hich

w ould qualify

people for the job.

There are no

people entering

programmes

w hich w ould

qualify them for

the job (i.e. lack of

career information

and guidance)

There are not

enough BEE

candidates w ith

the right skills for

the job?

People w ith these

skills are not

w illing to w ork in

the Food and

Beverage

industry?

Percentage (%)

Source: FoodBev sector survey 2006

Page 34 of 72


It must be noted that 25% of respondents indicated that “willingness to work in the sector” is the reason for scarcity of skills. Recruitment difficulties that are experienced as a result of perceived or real working conditions and remuneration, is difficult to influence directly through any skills development intervention (unless the labour market is “flooded” with skills). As a SETA, a more direct impact can be made in at least four of the five areas identified as reasons for scarcity:

Table 8: Addressing Reasons for Scarcity

Reason Type of Intervention Duration/Time scale

People do not have the right skills to perform the job

o Bursaries o Learnerships o Internships o Work experience o Apprenticeships o Skills programmes

6 months – 4 years

There are no learning programmes available which would qualify people for the job

o Develop unit standard based qualifications

o Influence curriculum design at FET and HET institutions

Challenging objective - 1 – 5/6 years

There are no people entering programmes which would qualify them for the job



There are not enough BEE candidates



People with required skills are not prepared to work in the sector

o Cannot influence the compensation bands in the sector

o Can publish scarce skills guide and ensure that this is used in career guidance processes

Ongoing

From the preceding analyses, a trend of marginal growth in labour demand can be projected over the next three to five years. A largest portion of the demand will probably result from replacement requirements. The projected requirement over the next 3 year period will be between 7 000 and 18 000 positions to be filled. The current skills base in the sector is low (26% of the workforce has a below NQF 1 qualification), with all indications in the food and beverages manufacturing sector (and nationally) that a higher skilled workforce is needed to comply with production requirements and global competitiveness.

.

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CHAPTER 3 - Supply of Skills

The qualifications profile of employees in the sector has been discussed in Chapter 2. In this chapter, the adequacy of these skills in meeting the projected future scarce and critical skills needs of the sector will be expanded upon. Secondly, the relevance and adequacy of supply through the national education and training system (both formal and non-formal education and training) will be evaluated and conclusions will be drawn on the extent to which the current situation will be able to meet the skills needs of the sector. The above will provide key inputs into the formulation of a skills development strategy for the food and beverages manufacturing sector.

3.1 THE NATIONAL SCENARIO

Despite there being 7,8 million unemployed people in South Africa12

, research from the South African Institute for Race Relations reports that South Africa has a shortage of between 350 000 and 500 000 people in the managerial and technical positions

13

(SAIRR 2001). A large number of people are entering the labour market prior to completing compulsory schooling, due to a number of reasons which includes the political history of the country and inadequate financial resources. In 2002 only 8% of the working age population held post-secondary qualifications. Significantly, the unemployment rate among this group was less than 5%, with a comparative rate of 46% among those with grade 11, and 32% among those with grade 12

14.

This scenario has improved somewhat over the past three years, as reflected in the General Household Survey from Stats SA in 2005

15:

Table 9: Qualifications Profile of South Africans

Educational Level Achieved % of Population

Tertiary 10%

Matric 25%

A secondary level 25%

Primary schooling 30%

No schooling 10%

Source: Statistics South Afica; General Household Survey, July 2005

12 Statistics South Africa – Labour Force Survey, 2002

13 South African Institute of Race Relations, 2001

14 Statistics South Africa – Labour Force Surveys (P0210 series), 2000 - 2005

15 Statistics South Africa, General Household Survey, July 2005

Page 36 of 72


The educational levels of South Africans are however still alarmingly low when compared to comparable statistics from developed countries, with only 35% holding a matric of post matric qualification. These statistics are probably the best available indicators of skills available in a country and provide an indication of the employability of people and of a country’s ability to compete in the global arena. A more in-depth analysis of the types of qualifications achieved through the formal education system will be made later in this chapter. This will illustrate that the qualifications developed through the mainstream educational system does not adequately meet the demand for skills in the economy. The extent of enterprise training noted a dramatic decrease from the 1980’s onwards and was characterised by, among other o The pre-dominance of short and informal training courses frequently only

addressing narrow, employer specific needs o The absence of systematic linkages between education and training providers,

and industry o The absence of qualifications pathways that allowed for progression o The failure of companies to respond to the new global competitive

environment through training and skills development initiatives16

This is confirmed by the Labour Force Survey (September 2004)

17 which indicated that

only 9% of the labour force (13% of the economically active population) received structured, work-related training. With this background companies reported recruitment difficulties in the following occupations: (Kraak et al, 2000) Figure 13: National Recruitment Difficulties

Kraak et al (2000) Baseline Survey of Industrial Training in South Africa

16

Kraak et al (2000) Baseline Survey of Industrial Training in South Africa 17 Statistics South Africa: Labour Force Survey, September 2004

Page 37 of 72


Even though the research findings (above) were published in 2000, the Food and Beverages Manufacturing sector still experience a scarcity of skills in the managerial and technical/trades fields.

3.2 STOCKS AND FLOWS OF SKILLS AND QUALIFICATIONS WITHIN THE FOOD AND BEVERAGES MANUFACTURING SECTOR

Chapter 2 illustrates that only 14,8% of the workforce in the sector has a post-matric qualification, 25,9% has completed matric and 34% has some further education. More than 24% have a qualification below NQF 1 (aggregated WSP data). People who do not complete formal schooling in most instances have access only to “blue collar” working environments, typically the manfucaturing sector. The implication is that many employees lack basic literacy and numeracy skills. The is further compounded by the political and educational history of South Africa, where different schooling systems allowed for vastly different standards in education. In many instances people with further education qaulifications still lack the level of literacy and numeracy required by the sector and the country. Research in the sector tested the recruitment demand by evaluating the educational levels needed over the next 3 – 4 years. As indicated in the graph below, recruitment will focus on higher skills levels, with an NQF 5 qualification quoted by the majority of companies as the most typical educational level required.

Figure 14: Required Educational Levels of Recruits


What NQF level should the learning programme be

directed

13.1

6.6

38.8

53.658.5

44.8

18.6

10.9

0

20

40

60

80

100

NQF 1 NQF 2 NQF 3 NQF 4 NQF 5 NQF 6 NQF 7 NQF 8

Percentage (%)

Source: FoodBev SETA Sector survey 2006

Page 38 of 72


This illustrates a discrepency between the qualifications of the existing workforce (only 14,8% have a post-matric qualification) and the recruitment demand indicated by die sector (58,5% indicated a recruitment need at NQF level 5).

This is confirmed by the projected skills needs, with more than 50% of projected numbers of people required by 2010 being in occupations where the entry level requirement is NQF 5 and above.

Research in the sector indicated that, in a range of occupations: o people do not have the right skills to perform the job, even though there may be

adequate output in terms of numbers from public and private training institutions (e.g. food technololgists, engineering technicians).

o This is further intensified by the fact that there are not enough BEE candidates with the right skills for the job.

o In addition, there are occupations that are difficult to fill and are linked to a national scarcity, eg. millwrights, engineers, accountants.

These have been identified as a challenge in the following occupations:

Table 10: Occupations Experiencing Relative and Absolute Scarcity

Inadequate skills Insufficient BEE cadidates Absolute Scarcity of skilled people

Chief Executive Officers and Managing Directors

Chief Executive Officers and Managing Directors

Engineering professionals and engineers

Production/Operations Manager Advertising, sales and marketing managers

Trades: Fitter/Fitter and turner; Millwright; Electrician (General)

Advertising, sales and marketing managers

Engineering managers Financial managers and specialists

Finance managers Production/operations managers Logistics, warehousing and distribution: Supply and distribution managers

Human Resource Managers Quality assurance managers

Marketing specialists Accountants

Supply and distribution managers

Marketing specialists

Quality assurance managers Technical sales representatives

Accountants Electronics and mechanical engineers

Training and development specialists

Primary products inspectors

Marketing specialists Electrical engineering technician

Technical sales representatives Integrated Manufacturing Line Technician

Electronics and mechanical engineers

Fitter (General)

Food technologists and science technicians

Millwright

Electronic and mechanical engineering technician

Electrician (General)

Mechatronics Technician


Food and Beverage Process Machine Operator

Packing Machine Operator

Page 39 of 72


3.3 QUALITY AND ADEQUACY OF SUPPLY Four sources of supply will be discussed: o Supply from further education institutions o Supply from higher education institutions o Skills development initiatives at company level o Supply from private providers

3.3.1 Supply: Further Education The restructured Public FET sector is expected to play a significant role in supplying intermediate to high level skills. It comprises 50 merged, multi-campus institutions (many with 2 – 3 satellite campuses) with great potential for meeting the country’s skills development needs. FET colleges are located throughout South Africa with a good geographical spread and have the capacity to accommodate 400 000 students at any given point in time. Traditionally, FET colleges worked in close partnerships with industry, and the emphasis of their delivery was on technical/engineering training, based on a model that included structured workplace exposure. Gradually, with changes in the educational system, the emphasis of delivery moved towards general and business studies. This was fuelled by the expectation that the apprenticeship system would cease to exist. Against this background, the country is experiencing a growing need for qualified artisans and tradesmen in the engineering field. To re-align the focus of FET colleges, new curriculum guidelines have been released earlier in 2006, and an extensive re-capitalisation programme has been launched to support the upgrading and development needs of these colleges. However, considerable work is still required to address the responsiveness of college programmes to labour market demands

18. The “N-courses” which provided the

theoretical base for apprenticeship training are being be repealed. This whilst the national shortage of qualified apprentices is increasing and the “import” of skills is discussed in many sectors. Additionally, there is discomfort among companies with the new curriculum (and the absence of engineering vocational courses) and a strong sense that this will not address the skills needs of the economy.

A positive trend, even though small, is found in the increase of colleges offering alternative programmes to the traditional DoE courses, particularly evident in engineering learnerships and skills programmes. This indicates some responsiveness to labour market needs. No funding is however provided from the Department of Education to support these programmes The offering of these programs is still limited, and FET Colleges remain overwhelmingly focused on formal DoE approved study programmes. The centralised control of curricula

18 HRD Review, 2003

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makes it difficult to respond quickly to local demands for changes in the national curriculum.

Modes of delivery are inflexible and geared towards young, full-time students, whilst the range of provision is narrow. As a source of supply to the Food and Beverages Manufacturing sector, it must be accepted that, currently, FET colleges contributes only marginally.

Training tends to be offered in areas that do not require excessive capital investment and infrastructure. Furthermore, FET colleges find it difficult to adapt to a mode of delivery different from classroom instruction only, as this is a costly approach and requires workplace instruction and assessment. Due to the geographic spread of FET colleges (206 campuses), they are ideally situated to be a primary source of training provision, especially at NQF levels 3 and 4. This is a relatively large skills development need in the sector, in terms of actual numbers required. Sector partnerships with FET colleges should be explored to facilitate a stronger delivery model to address skills needs. The private FET sector is growing and is generally offering courses that are NQF aligned. Training is however often focused on “soft skills” (addressing critical rather than scarce skills) that does not require major capital or infrastructure investment.

3.3.2 Supply: Higher Education

When analysing the supply of skills from Higher Education institutions, an analysis needs to be made of the subject choices and pass rate of matriculants that are entering higher education. This could will give a broad indication of supply over the next few years. In 2003 and 2004 combined, only 23 000 matriculants passed matric with mathematics at higher grade

19. For study in accounting, engineering and science, this is a minimum

entry level requirement. If this is considered against the projected need for 27 000 engineers and medical and science professionals by 2010 (Scarce Skills aggregated data – DoL) it is probable that there are not a sufficient number of people that can enter studies towards the engineering or science professions. Findings of the HSRC

20 indicate that the human resource development function of higher

education must expand in specific areas required by the changing labour market and must achieve a more appropriate and equitable spread of graduates – by field, qualification levels, race and gender – and across the university-technikon divide. Training content is not responsive to changing demand, and there is no link between quantity of supply and the need/opportunity that exist in the labour market. Only 3% of graduates are from the engineering and engineering technology faculties. This is equivalent to 3 500 graduates per year, if the completion rate across all study fields in 2004 are taken into account (119 000 graduates). Twenty-two percent (22%) of graduates are from Business and Commerce and 53% of graduates complete studies in the humanities, social sciences and education fields

21.

19 Education Statistics in South Africa at a Glance, 2004 (Department of Education)

20 HRD Review, 2003

21 Education Statistics in South Africa at a glance in 2004 (Department of Education)

Page 41 of 72


In addition, the perception of the sector is that new graduates are not well prepared for the world of work and require additional work-based training.

3.3.3 Enterprise Initiatives Training initiatives as reported in company workplace skills plan implementation reports have increased from 0.54% of payroll in 2003 to 0,92% in 2006. Although this is a positive trend, this is still low when compared with first world countries such as Germany, where it is estimated that 7% of payroll is spent on training. (aggregated WSPIR data) The following figure illustrates company training initiatives per occupational category:

Figure 15: Structured learning per occupational group

5.8% 4.4% 7.2%10.3%

6%

28.3%

38.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Occupational Categories

Managers

Professionals

Technicians & Trade

w orkersClerical & Admin

Sales Workers

Machine Operators &

DriversLabourers

Source: Aggregated WSPIR data 2005-2006

Table 11: Equity profile of training interventions

Black 84.0%

Women 36.0%

White 16.0%

Disabled 0.2%

A positive trend is the fact that 84% of recipients of training are Black. This illustrates the realisation that training and development is one contributing factor to redress and ensuring that the employment equity of the sector reflects the demographics of the country. Figure 16 compares the number of employees in certain occupational categories with the number of training interventions, differentiating between equity groups:

Page 42 of 72


Figure 16: Investment in training: Equity

28

72

22

78

99

1

67

33

67

33

98

2

0

20

40

60

80

100

120

Managers Black

Managers W

hite

Professionals Black

Professionals White

Operators Black

Operators W

hite

% of Workforce

% Recipiets of Training

Source: Aggregated WSPIR data 2005-2006

A positive trend can be noted in the data supplied in Figure 16. Although employment in the managerial and professional occupational categories is still dominated by Whites, there is a significantly higher investment in training of previously disadvantaged employees. A similar pattern regarding equity is reflected in people registered on learnerships in the sector:

Figure 17: Learnership statistics

642

2055

300 331

12544

20340 9 22

0

500

1000

1500

2000

2500

African Coloured Indian White Disabled

Employed

Unemployed

Source: FoodBev SETA Database 2006

Of the total number of people enrolled on learnerships, 93,5% are Black; and 98,4% of unemployed people on learnerships are Black.

Page 43 of 72


The number of unemployed people registered on learnerships is nearly double that of employed people. This is expected to be a valuable potential recruitment source for the sector. Workplace training is still, to an extent, characterised by short courses and non-structured training. Companies have however bought into the learnership system, and despite challenges in terms of the time required to complete learnerships, feedback generally indicates that learnerships make a tangible contribution to the development of skills required by the sector. This is supported by the results of the FoodBev SETA sector survey, where learnerships are indicated as the preferred learning pathway to develop people. Figure 18: Type of Learning Programmes best suited to Develop Scarce Skills


Type of learning programme best suited for the scarcity

61.2

86.9

49.7

6.6

30.1

10.4

0

20

40

60

80

100

Theoretical

institution based

education

Learnerships Skills

programmes

Short-term

experiential work

placements

(locally or

overseas)

Apprenticeships Internships

Percentage (%)

Source: FoodBev SETA sector survey 2006

As indicated in Chapter 4, a need has been identified for the development of a large number of appropriately qualified and specialised operators (processing and packaging). Learnerships and skills programmes are indicated as the appropriate route to qualify people for these positions. The availability of sufficient providers poses a challenge, as will be discussed later in this chapter. FoodBev SETA will focus attention at increasing the pool of providers available. Additionally, grant funding from Foodbev SETA will be available to address the relative scarcity. Theoretical, institution-based training is indicated as the second most appropriate and required learning intervention to develop people for occupations identified as scarce.

Only a small number of larger companies in the sector have bursary schemes for young

people entering the labour market. This normally only addresses internal human resources planning, and is inadequate to address the greater demand in the sector.

A similar argument applies to making internship opportunities available to students from

tertiary institutions. Inadequate opportunities are supplied by companies to address the skills needs existing in the sector.

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Development/training of apprentices has decreased largely due to the emphasis of NSDS 1 on learnerships and the costly nature of apprenticeship training. This resulted in a scarcity of fitters, millwrights and electricians, as reported by companies during the sector survey. Historically, apprentices were “bought” rather than developed by companies in the sector.

3.3.4 Supply from Private Providers

Private Training Colleges/Providers serve a significant number of companies in the sector. This applies to the provision of learnerships, skills programmes, artisan training, apprenticeship training as well as short courses. Currently 90 providers have been accredited by Foodbev SETA, of which only a small number are external providers who can cater for companies who do not have the internal capacity to implement accredited training. These external providers have limited capacity i.t.o. range of services and geographical spread. Recent research indicated that a need for all exists for all learnerships registered by FoodBev SETA. However, not all learnerships are currently being implemented, despite various efforts to identify and support training providers. The biggest gap in provision exists in the dairy industry and for two qualifications that will develop specialised process artisans at a NQF 4 and 5 level. Provision for managerial development via the learnership route is limited due to availability and capacity of providers, and largely confined to private providers. This is a significant skills need in the sector and cited by companies as the most appropriate learning route to develop people for entry into operations management.

A large capacity building need has been experienced by working with both public and private providers. Curricula have not been appropriate, assessment and moderation capacity and practices underdeveloped. With the assistance of Foodbev SETA discretionary funds, capacity building support has been provided through the development of learning material, assessment instruments and guidelines, and assessor and moderator training.

In terms of awarding Institute of Occupational and Sectoral Excellence awards, Foodbev SETA will explore possible FET college/private provider partnerships, emphasising support to emerging private providers. Many scarce and critical skills needs identified lie outside the “primary focus” of Foodbev SETA, e.g. supply and distribution, sales and marketing and skills related to the field of engineering. This is supported by findings of research conducted in the sector (refer Chapter 4). A scarcity of managers across occupational fields has been identified, with the largest need for Production/Operations managers. Although this may partially reflect an absolute scarcity (in the engineering trade, for example) it may also be illustrative of a relative scarcity, i.e. qualified people being released into the labour market without the skills required by industry. This either lies in the higher education band, or within the scope of other SETA ETQA’s. Due to the inconsistency across SETA’s in applying quality assurance processes and practices, implementation of these learnerships is challenging. Support has nevertheless been provided to companies implementing these learnerships, and continued support will be provided whilst effort will be made to streamline collaboration across SETA ETQA’s.

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3.3.5 Adequacy of provision The availability of appropriate learning programmes (which would qualify people for the job) has been identified as a key issue in the following occupational categories

Table 12: Adequacy of Learning Programmes Occupation Detail

Production/operations managers Candidates from come from an engineering or business management background. Training does not include production or operations management modules

Supply and distribution managers Relatively new degree offered by a small number of tertiary institutions - programmes not fully addressing supply and distribution in food and beverages manufactuing sector. (fast moving consumer goods)

Quality assurance managers Candidates normally from engineering, science or food technology backgrounds. No programmes tailormade to industry needs

Cellar master No training programmes available

Trades/apprentices Poor quality of theoretical training (N-courses) provided by FET colleges

Mechanical engineering technician Training too generic for requirements of a fast moving consumer goods factory

Food technologists; science technicians

Training too generic for requirements of a fast moving consumer goods environment

3.6 CONCLUSION A long-term human resource development strategy is required in South Africa, aligning education and training to the needs in the economy. The inadequate number of school leavers with Mathematics and Science as subjects will seriously hamper the supply of skills in the country, and this is where a long-term human resource strategy should start. School leavers with the appropriate school subjects for entry into studies in science and engineering should be recruited and developed for scarce occupations identified in the country. Career guidance should, nationally, focus on scarce skills identified. Partnerships should be formed with Higher Education providers to ensure closer alignment of curricula to industry needs, either through adjustments to existing curricula and/or the inclusion of compulsory work-based training as part of the learning programme. Apprenticeship training must be actively revived, and the range of learnerships should be broadened to include all trades at different levels. When comparing the current low skills level of employees in the FoodBev sector with qualifications required (biggest need on NQF 5) investment in education and training across the sector should be intensified and accelerated.

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CHAPTER 4 – Scarce and Critical Skills Identification

4.1 INTRODUCTION In researching scarce and critical skills, the tentative nature thereof needs to be recognised. The level of sophistication in South Africa in terms of skills forecasting is relatively low. Only a few companies in the country do long-term skills forecasting, whilst the concept of and differentiation between scarce and critical skills is a still a new concept for many HR professionals.

4.2 RESEARCH METHODOLOGY A sector survey was conducted in the Food and Beverages Manufacturing sector three years ago, based on a statistical modelling approach. The availability of trend data however posed a challenge, and as a result only perceptional research findings from this survey is included in the update of the SSP. Research conducted by Foodbev SETA two years ago established a starting point for the identification of scarce and critical skills. This was done through telephonic interviews, but the sample was biased towards larger companies in the sector and did not represent an even distribution across the various industries. Over the past two years, extensive resources were allocated to inform the sector of the strategic importance of long-term skills forecasting and the benefits to be derived from contributing towards a database where scarce and critical skills are recorded and updated regularly. This was done through all the communications media of FoodBev SETA. Follow-up research (through telephonic interviews) was conducted a year ago and all food and beverages manufacturing companies that participate in the skills development strategy were contacted. Effort was made to communicate with senior staff members responsible for HR forecasting. Forty-six percent (46%) of companies participated, representing 40% of employees in the sector. Participating companies were well-represented across small, medium and large companies. For purposes of updating the SSP in 2007, a questionnaire (based on the Organising Framework for Occupations (refer section 4.3) was included in the Workplace Skills Plan template. Thirty-nine percent of companies completed the questionnaire, representing 45% of employees in the sector.

Table 13: Distribution of research participants according to company size

Company size Percentage of companies that participated

Less than 50 employees 29%

Between 50 and 150 employees 40%

More than 150 employees 31%

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Companies were relatively well distributed across the five Foodbev SETA Chambers, as illustrated in the graph below.

Figure 19: Chamber distribution of companies that participated in survey

29.1

25.3

21.4

15.4

8.8

0

5

10

15

20

25

30

Food Prep

Processed

BCCS

Beverages

Dairy

Source: FoodBev WSP’s 2007

A focus group discussion was held with the FoodBev SETA Sector Skills Planning Committee and other industry “champions” to discuss and lend further insights into the quantitative findings. Desktop research was conducted to benchmark research findings against comparative studies, but research findings of this nature are not available. The identification of scarce skills is a challenge for many companies, especially the quantification of skills required. The list of scarce occupations provided in this chapter should therefore be seen as an indication of prioritised scarce skills needs rather than an exact quantification of the need, despite the fact that a representative sample of companies in the sector participated in the research.

4.3 DEFINITION: SCARCE AND CRITICAL SKILLS The template prescribed by the Department of Labour - based on an occupational classification system referred to as the Organising Framework for Occupations (OFO) - was used as a tool for identifying, reporting and monitoring scarce and critical skills. The detailed responses are provided at the end of this chapter. It contains a list of scarce skills identified, categorised according to the organising framework for occupations. Projections of numbers needed are included in this template along with the types of learning interventions required, the NQF level and the number of companies that mentioned the need.

Within the Organising Framework for Occupations (OFO), ”skill” is defined as the ability to perform competently the roles and tasks associated with an occupation. For the purpose of this SSP, the following definitions are to be applied:

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SCARCE SKILLS refer to those occupations in which there are a scarcity of qualified and experienced people, currently or anticipated in the future, either (a) because such skilled people are not available or (b) they are available but do not meet employment criteria. This scarcity can arise from one or a combination of the following, grouped as relative or absolute: o Absolute scarcity: suitably skilled people are not available, for example:

� A new or emerging occupation, i.e. there are few, if any, people in

the country with the requisite skills (qualification and experience) and education and training providers have yet to develop learning programmes to meet the skills requirements.

� Firms, sectors and even the country are unable to implement planned growth strategies and experience productivity, service delivery and quality problems directly attributable to a lack of skilled people.

� Replacement demand would reflect an absolute scarcity where there are no people enrolled or engaged in the process of acquiring the skills that need to be replaced.

o Relative scarcity: suitably skilled people available but do not meet other employment criteria, for example:

� Geographical location, i.e. people are unwilling to work outside of

urban areas. � Equity considerations, i.e. there are few if any candidates with the

requisite skills (qualifications and experience) from specific groups available to meet the skills requirements of firms and enterprises.

� Replacement demand would reflect a relative scarcity if there are people in education and training (formal and work-place) who are in the process of acquiring the necessary skills (qualification and experience) but where the lead time will mean that they are not available in the short term to meet replacement demand.

CRITICAL SKILLS, on the other hand, refers to specific key or generic and “top up” skills within an occupation. In the South African context there are two groups of critical skills:

� Key or generic skills, including (in SAQA-NQF terminology) critical

cross-field outcomes. These would include cognitive skills (problem solving, learning to learn), language and literacy skills, mathematical skills, ICT skills and working in teams.

� Particular occupationally specific “top-up” skills required for performance within that occupation to fill a “skills gap” that might have arisen as a result of changing technology or new forms of work organisation.

Both scarce and critical skills have been identified at occupational level, with scarce skills being considered against the occupation itself and critical skills being reflected as specific skills within the occupation.

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4.4 INTERPRETING SCARCE AND CRITICAL SKILLS WITHIN THE FOOD AND BEVERAGES MANUFACTURING SECTOR

A further dimension needs to be considered when defining scarce skills - the remuneration and labour “economics” of a specific sector, resulting in recruitment difficulty. According to research conducted, economic factors were identified by 25% of respondents as the main reason for scarcity of skills. As a result of remuneration and compensation, companies cannot find candidates for appointment in certain occupations. In addition, the perception of a “blue collar” working environment further contributes to scarcity of recruits for certain occupations. This raises questions on the impact that FoodBev SETA can make in addressing skills needs in certain occupations identified as scarce, as a service specifically to the sector. The possibility exist that people trained will be employed by companies form other economic sectors. Consequently, a service is rendered to the broader economy rather than to FoodBev Seta companies. A further diffusing factor in the research findings is reference to skills programmes as a learning pathway to develop scarce skills. This probably refers to “top-up skills”, i.e. critical skills, required by the sector or even by a specific company to equip employees for specific production requirements. Skills programmes as “stand-alone” learning pathways will most probably not equip prospective employees with all the skills sets required in most of the occupations identified as scarce, especially at higher occupational levels.

4.5 SCARCE SKILLS PRIORITISED One of the main objectives of researching and identifying scarce and critical skills is to develop a strategy to address the identified scarcity. To assist the development of a strategy, the scarce occupations identified have been grouped “functionally” in this section, and scarcity is analysed across groups of career “families”. Although the numbers of employees required are provided in the tables that follow, the tentative/relative nature thereof needs to be borne in mind. Due to the lack of skills forecasting competencies in South Africa, the numbers projected can only be tentative at this point. This also explains the variation in numbers provided between last year and this year. At best, the numbers provided should give an indication of prioritised scarce skills. In prioritising scarce skills and developing a FoodBev strategy, the differentiation between absolute and realitive scarcity has been considered.

4.5.1 Engineering and Trades Workers Engineering and trades have been identified as “absolute scarce skills” across all of the occupations listed in the table below, and the Cross-sectoral Scarce Skills Report published by the Department of Labour indicate a national scarcity.

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The table below indicates the needs of the Food and Beverages Manufacturing sector in tabular form.

Table 14: Engineering and Trades Workers

Engineering and Trades

Occupation No’s required by 2007

No’s required by 2010

Total no’s required by 2010

Managers

Engineering manager 50 80 130

Specialists

Mechanical engineer 40 70 110

Electrical engineer 20 30 50

Electronic engineer 10 10 20

Trades/Apprenticeships

Millwright 510 240 750

Electrician 480 200 680

Fitter and turner 150 190 340

Fitter 50 50 100

Electrical and electronics engineering technicians

50 60 110

With the exception of millwrights and electicians (showing a decrease of approximately 20% from the previous year), there is an increase in numbers required across the other occupations. This may be due to more accurate projections made by companies, as well as the larger sample size that supplied data. Trades/Apprenticeships Qualified apprentices have been identified as a scarce skill nationally. As indicated in Chapter 3, FET Colleges were originally established to provide industry led education and training with a focus on technical training (engineering studies). Due to the expected repeal of the apprenticeship system and changes in the education system, these colleges allowed their linkages with business and industry to erode. Gradually more and more students enrolled on general and business studies to the extent that there may be an inadequate supply of students in theory training to enable them to enter onto apprentice training programmes. Concern has been expressed by a number of companies about the quality of training provided by FET Colleges. Students that complete the theory part of apprenticeship training frequently have inadequate mathematical skills, language ability (both written and verbal communication), skills to work in teams and time management skills. In addition, the old “N-courses” which provided students with the theoretical base for apprenticeships, are in the process of being repealed by the Department of Education. Investment by many companies to develop apprentices have been totally inadequate. Until 6 – 8 years ago, state-owned enterprises such as ISCOR, ESCOM and Sasol trained large numbers of apprentices and developed a supply pool for the broader economy, who simply recruited from this supply without investing own resources into the development of apprentices. Although many organisations have replaced apprenticeship training with learnerships, the perception still exist among many that the competencies developed though learnerships are not comparable to that of apprentieship training.

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As indicated in the table above, research indicated that at least 1 900 apprentices will be needed by the sector within the next three years. The following approach is recommended:

1. There is a need to identify “excellence” among providers of apprenticeship

training and to provide support where required. 2. Priority focus will be placed on providing incentives for apprenticeship

training. 3. Companies that have the capacity to recruit more than their need will be

motivated in incentivised to assist in the development of a pool of qualified apprentices.

4. Support will be provided for the development of critical skills gaps as identified, through incentivising skills programmes.

5. Research and a comparative study between learnerships and apprenticeships, in terms of the depth, breadth and quality of competencies developed, will be conducted and research findings published in the sector.

6. The implemenation of learnerships for the various trades identified as scarce skills will be incentivised.

The Food and Beverages Manufacturing sector has bought into learnerships as a preferred vehicle for skills development, and over the past year actively utilised incentives for apprenticeship training and providing work experience to young people. The employment rate of previously unemployed people that benefited from these interventions is 55%.

Engineering A national scarcity of engineers exist (and frequently General Managers and Operations Managers in the food and beverages manufacturng sector have an engineering background). To develop skills for prospective employees, interventions could start at school or higher education institutions through the provision of bursaries. As discussed in Chapter 3, there is not enough school leavers with Mathematics and Science to allow sufficient numbers of students entering study in engineering sciences. The implication is that there are not a sufficient number of learners in study programmes to provide in the need identified at national level. A long-term, costly, strategy could be assistance to teachers in mathematics, science, biology and computer science to promote and deliver excellent learning and to grow student numbers in these fields. This should be a national strategy driven by the Department of Education. Employers in the industry could adopt a school as their as part of their social responsibility programme and students should be encouraged in the specific schools by the employers to take mathematics. Employers could recruit matriculants in mathematics and science and bursaries could be made available for study in the engineering sciences. Feedback from companies in the sector indicates that graduates from Higher Education Institutions are not well prepared for the skills sets requirements of the sector. Specific critical skills identified include problem identification and problem solving, understanding of food safety requirements and people handling skills.

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What is required, in addition, is the provision of work experience opportunities for graduates or the development and funding of learnerships that will complement the formative training received at higher education institutions. These two interventions should include the development of critical skills deficits identified.

Similtaneouesly, linkages between Higher Education Institutions and the sector must be facilitated to ensure that the alignment between curricula of HET institutions and the needs of industry are improved.

Although research indicates a projected need of approximately 300 engineers over the next three years, the image and recruitment challenges as a result of remuneration, may make it difficult for the sector to attract recruits if the national scarcity of engineers are considered.

4.5.2 Manufacturing/Production/Operations

The scarce skills listed below reflect a relative scarcity, i.e. there are people available in the labour market, but the potential recruits do not have the skills sets required by the sector.

The table below indicate the needs of the Food and Beverages Manufacturing sector in tabular form.

Table 15: Manufacturing/Production/Operations

Manufacturing/Production/Operations Occupation No’s required by 2007 No’s required by 2010 Total no’s required by

2010 Managers

General manager 30 50 80

Production/Operations Manager

160 210 370

Quality Assurance Managers

30 40 70

Research and development manager

20 20 40

Specialists

Food technologist 150 150 300

Cellar master 20 30 50

Science technician 70 70 140

Specialised operators/factory workers

Process machine operator 240 330 570

Packing machine operators

100 210 310

Bakers 220 270 490

Butchers 30 50 80

Dairy process contoller 30 70 100

Boiler engine operator 20 20 40

Although skills at middle and senior management level can be “bought” and not developed through a career progression process, (and both “buying” skills and developing skills will serve the sector well in the long run) indications are that the image and economics of the food and beverages manufacturing sector are inhibiting the ease with which employees can be ”bought”. If people are to be developed through a process of learning progression from operator level, ABET should be supported on a continued basis, and through supporting a GETC Level 1 learnership, a broader skills set for employees entering the manufacting envrionment would be developed.

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School-leavers and unemployed people available in the labour market frequently do not have the numeracy, science, IT and basic technical competencies required in the role of process or packaging operator, especially not in high-speed production environments. This also a limits skills development in the wine, distilling, dairy and baking industries. Employers should be motivated to recruit learners onto the process operator qualifications for career development purposes (special incentives to companies recruiting top talent among school leavers and unemployed young people and developing those people accross occupational levels could be considered). Continued support should be provided for the development and skilling of process and packaging operators at and NQF level 3 across all food and beverage processes. Factors such as changes in technology, companies’ increased involvement in World Class Manafucturing and continuous improvement processes, and increased emphasis on food safety and hygiene require contiuous upskilling of operators. Lack of competence in these areas have been identified as critical skills, and should be included in training programmes. To develop people for managerial positions, support should be provided for the level 4 FETC Generic Management (Food Manufacturing), Level 5 Manufacturing Management and level 6 Manufacturing Management learnerships. Qualifications in the specialised areas of the industry, such as master baker, cellar master, master distiller, master brewer, master pasta maker, master canner, and master dairy man should be developed and established as learnerships. These should be accessible to employees through a career development process, or linked to higher education qualifications, as discussed below.

Food Technologists and Science Technicians Higher Education providers have a specific role to play in developing learners and deliver a more generic curriculum that enables a learner to gain access into the broader economy rather than specialize in a specific area. In this regard it makes sense to establish and promote a development strategy that brings the needs of the employer and the skills of the higher education provider together. Relationships with Higher Education Providers should be developed to link qualifications developed by industry (such as cellar master, master baker, etc) to honours or B.Tech curriculum so those specialist food technologists with work experience are being developed. Collaboration with Higher Education Institutions should be established to enable employers to be involved in the recruitment for the national diploma, with focus on schools that are from previously disadvantaged areas. Consideration should be given to incentivize employers who establish social responsibility links with schools and recruitment from those schools for either bursary support or learnership opportunities.

4.5.3 Support Functions In this section, all “support functions” are grouped. Two occupational groups were identified as “absolute scarce skills” - finance and logistics. The rest of the identified occupations are identified as a relative scarcity, i.e. potential recruits are available in the labour market, but do not have the skills sets required by the sector.

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Table 16: Support Functions

Support Functions

Occupation No’s required by 2007

No’s required by 2010

Total no’s required by 2010

Sales and marketing

Sales and marketing manager

100 140 240

Technical sales representatives

230 350 580

Finance

Accountant 60 110 170

Finance manager 30 45 75

Management accountant 10 10

Logistics, warehousing and distribution

Supply and distribution manager

80 120 200

Truck driver/delivery driver

160 200 360

Human Resources

Human Resource manager

20 40 60

HR and Training and Development specialist

60 90 150

Sales and Marketing Although there is an adequate supply from Higher Education Institutions of students graduating in marketing, people are not equipped for the sector specific requirements of a sales or a marketing career. Learnerships are available to develop employees for sector specific requirements of these positions. Support is currently provided for development of people at various occupational levels in sales and marketing, and continued support will be provided to develop a skills pool for the sector. Logistics, Warehousing and Distribution In terms of Supply and Distribution Managers, degree courses are available at a limited number of universities, but current student numbers are low. Bursaries could be made available in this area. Learnerships are available at different levels, and continued support will be provided to develop people for occupations and career progression within this field of specialisation. Human Resource Managers and Specialists It is interesting that human resource management is registered as a relative scarce skill. Human resource management involves industrial relations, training and development, recruitment and selection, career development, human resource planning, compensation management. The human resource function should be a leadership and line management function, human resource planning should be a line function and compensation should be a strategic executive function. Human Resource Managers should be expert consultants to line managers. The possibility exists that this is not as much a scarce skill as the fact

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that human resources are not allocated the necessary strategic role within a company that it should be awarded.

4.6 SCARCE SKILLS: EQUITY CANDIDATES Research findings identified a scarcity of equity candidates for the following occupations:

Table 17: Scarce Skills: Equity Candidates

Occupation

General managers

Advertising, sales and marketing managers

Engineering managers

Production/operations managers

Quality assurance managers

Accountants

Technical sales representatives

Electronics and mechanical engineers

Electrical engineering technician

Fitter and turner

Fitter (General)

Millwright


FoodBev SETA grants will support training according to the equity targets contained in the National Skills Development Strategy, being 85% black persons and 54% female. If equity candidates are developed through a process of career progression (top talent recruited at previously disadvantaged schools or support provided through bursaries and work experience) this scarcity could be addressed over a period of 4 – 7 years.

4.7 DEVELOPING A STRATEGY TO ADRESS SCARCE SKILLS In developing an approach to address scarce skills, a differentiation is made between occupations that reflect an absolute scarcity, i.e. where it is not possible to find potential recruits, and relative scarcity, i.e. where potential employees do not have the required skills sets. What is proposed is a multi-pronged approach: 1. Specific FoodBev SETA projects to address absolute scarcity (e.g. apprenticeships,

bursaries, learnerships) 2. Grant incentives to employes to address relative scarcity.

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The following strategy will be adopted in addressing scarce skills: 1. continue emphasising the importance of long-term skills forecasting at company

level 2. publish a guide on scarce skills and communicate opportunities for employment in

the sector; providing information that will make the sector more attractive to propsective employees

3. distribute this guide widely to scholars at the point of making subject or study choices and to students at higher eduction institutions marking career choices.

4. disseminate information on the provincial location of scarce skills needs 5. train career guidance specialists in the utilisation of information contained in this

guide. 6. inform companies in the sector of scarce skills, and incentivese them to train in

areas identifed as scarce 7. motivate companies to train for the broader sector and the economy, and not only for

internal needs and requirements 8. develop qualifications to bridge the gap between formative qualifications obtained at

higher education institutions and strive to build these “work-based qualifications” into the higher education cirricula (e.g. cellar master)

9. motivate companies to adopt schools and recruit talent among matriculants, for either bursaries or learnerships

10. continue to provide grant incentives to subsidise development of scarce skills identified by the sector (apprenticeships, learnerships, work-expereince, internships and bursaries)

11. focus on support to providers that can offer excellence in training across career pathway/s

12. Launch special projects to accelerate training in areas identified as absolute scarce skills needs

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4.8 FOODBEV APPROACH TO ADDRESSING SCARCE SKILS IN THE SECTOR In summary, FoodBev SETA will focus it’s approach to decreasing scarcity of skills in the sector by

1. Project-based interventions to accelate training across learning pathways to develop people for occupations where absolute scarcity exists 2. Provide grant incentives to employers to address relative scarcity (for all occupations listed in Section 4.10).

More detail is provided in the table below

ABSOLUTE SCARCE SKILLS

Occupational groups Reasons for scarcity FoodBev and sector interventions

Engineering • Inadequate supply form educational institutions

• Sector-specific “top-up” training needed

• Image of sector (“blue collar” with low remuneration and poor working conditions)

• Bursaries (recruitment of “top talent” from schools)

• Grants and projects to support the development of sector-specific skills requirements via learnerships

• Publication of “scarce skills guide” to, among other, generate interest in engineering as a study and career choice and the sector as a “sector of choice” for prospective employees

Trades • Inadequate numbers of learners in practical training

• Quality of theory provision poor


• Grants and projects to support the development of trades workers via the apprenticeship route

• Grants and projects to support the development of trades workers via learnerships

• Identification of and support to “excellence” among providers

• Publication of “scarce skills guide” to, among other, generate interest in trades as a study and career choice and the sector as a “sector of choice” for prospective employees

Logistics, warehousing and distribution

• Inadequate supply form educational institutions




Finance • Inadequate supply form educational institutions



• Grant incentives and projects (learnerships and work-experience)

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Specialist food technologists & science technicians, e.g. cellar master


• No qualifications available

• Development of occupationally based qualifications

• Link qualifications to B Tech curricula

• Grant incentives and projects (learnerships and work-experience)

RELATIVE SCARCE SKILLS

Occupational groups Reasons for scarcity FoodBev and sector interventions

Manufacturing management • Sector-specific “top-up” training needed




Specialised operators • Sector-specific “top-up” training needed • Grant incentives for learnerships and skills programmes

Specialists • Sector-specific “top-up” training needed

• Grant incentives for learnerships and skills programmes

Sales and marketing • Sector-specific “top-up” training needed • Grant incentives for learnerships

• Work experience grants

Human Resources • Sector-specific “top-up” training needed • Grant incentives for learnerships and skills programmes

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4.9 DETAILED LIST OF SCARCE SKILLS AS PER THE OCCUPATIONAL

FRAMEWORK FOR OCCUPATIONS (OFO) As per the requirements of the Department of Labour, the scarce skills identified is provided in the “OFO” template. The following are guidelines for interpreting the data provided in the table. o Where critical skills shortages have been identified, these are listed against

specific occupations. o Projected need is provided for 2008 and 2010. These two figures combined

provide the need by 2010. Typical training interventions to develop people for employment in these occupations are provided.

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NQF Need/ Period

Comments

Aligned

OCCUPATION SS Specialisation/ Job

Critical skills

Intervention NQF levels

Y N

2008 2010

1 MANAGERS

11 Chief Executives, General Managers and Legislators

111 Chief Executives, General Managers and Legislators

1112 General managers

111201 Corporate General Manager (incl Senior Government and Local Government Officers)

Problem solving; people handling

Theoretical institution plus experiental work placements

6/7 Y 30 50

13 Specialist Managers

131 Advertising, Marketing and Sales Manager

1311 Advertising, Marketing and Sales Manager

131102 Sales and Marketing manager

Theoratical based & experiential work based placements

6/7 Y 100 140

132 Business Administration Managers

1322 Finance manager

132201 Finance manager Problem solving

Theoretical institution & work based placements

6/7 Y 30 45

1323 Human Resource Manager

132301 Personnel/Human Resource Manager

Theoretical institution plus learnerships

6/7 Y 20 40

1325 Research and Development Managers

132501 Research and Development Managers

Theoretical institution

6/7 Y 20 20

133 Construction, Distribution and Production/Operations Managers

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1332 Engineering Manager

133201 Engineering Manager People handling skills


6/7 Y 50 80

1335 Production/Operations Manager

133502 Production/Operations Manager

People handling skills; working in teams


5/7 Y 160 210

1336 Supply and Distribution Manager

133601 Supply and Distribution Manager

People handling skills


5/7 Y 80 120

139 Miscellaneous Specialist Manager

1399 Other Specialist Managers

139904 Quality Assurance Manager


5/6 Y 30 40

2 PROFESSIONALS

22 Business, Human Resource and Marketing Professionals

221 Accountants, Auditors and Company Secretaries

2211 Accountants

221101 Accountants (General) Theoratical based & experiential work based placements

6/7 Y 60 110

223 Human Resource and Training Professionals

2231 Human Resource Professionals

223101 Human Resource Advisor Mathe-matical skills


5/6 Y 60 90

225 Sales, Marketing and Public Relations Professionals

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2251 Advertising and Marketing Professionals

225103 Marketing Specialist Mathe-matical skills


5/6 Y 20 30

2254 Technical Sales Representatives

225404 Technical Sales Representatives

Mathe-matical skills; working in teams


5/6 Y 230 350

233 Engineering Professionals

2333 Electrical Engineers

233301 Electrical Engineer Working in teams


6 Y 20 30

2334 Electronics Engineers

233401 Electronics Engineer Working in teams


6/7 Y 10 10

2335 Industrial, Mechanical and Production Engineers

233501 Mechanical Engineer Working in teams


6 Y 40 70

234 Natural and Physical Science Professionals

2342 Chemist, Food and Wine Scientists

234202 Food Technologists Conflict handling, working in teams


5/6 Y 150 150

3 TECHNICIANS AND TRADE WORKERS

32 Engineering, ICT and Science Technicians

311 Agricultural, Medical and Science Technicians

3114 Science Technicians

NEW OCCUPATION Food Science Technicians Theoratical based & experiential

5/6 Y 70 70

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work based placements

312 Building and Engineering Technicians

3123 Electrical Engineering Draftpersons and Technicians

312302 Electrical Engineering Technician

Working in teams

Apprentice-ship/learner-ship

5 Y 20 25

3124 Electronic Engineering Draftpersons and Technicians

312402 Electronic Engineering Technician

Working in teams

Apprentice-ship/learner-ship

5 Y 30 35

32 Automative and Engineering Trades Workers

323 Mechanical Engineering Trades Workers

3232 Metal Fitters and Machinists

323201 Fitters (General) Apprentice-ship/learner-ship

5 Y 50 50

323202 Fitters and Turners Apprentice-ship/learner-ship

5 Y 150 190

3235 Millwrights and Mechatronics Trades Workers

323501 Millwright Apprentice-ship/learner-ship

5 Y 510 240

34 Electrotechnology and Telecommunications Trades Workers

341 Electricians

3411 Electricians

341101 Electrician (general) Apprentice-ship/learner-ship

5 Y 480 200

35 Food Trades Workers

351 Food Trades Workers

3511 Bakers and Pastrycooks 220 270

351101 Bakers Learnership 4/5

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3512 Butchers and Smallgoods makers

351201 Butcher Team-work, numer-acy skills

Learnership 3/4 Y 30 50

NEW OCCUPATION Dairy Process Controller Learnership 4/5 Y 30 70

7 MACHINERY OPERATORS AND DRIVERS

71 Machine and Stationary Plant Operators

711 Machine Operators

7119 Other Machine Operators

711909 Food and Beverages Process Machine Operators nec

Literacy and nume-racy

Learnership, skills programme

3/4 Y 240 330

NEW OCCUPATION Packing Machine Operator Literacy and nume-racy


3/4 Y 100 210

712 Stationary Plant Operators

7129 Other Stationary Plant Operators

712901 Boiler or Engine Operator Literacy and nume-racy


3/4 Y 20 20

73 Road and Rail Drivers

732 Delivery Drivers

7321 Delivery drivers

732101 Delivery driver (vehicle) Literacy and nume-racy


3/4 Y 160 200

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CHAPTER 5 – Small Business, Entrepreneurial Opportunities and other NSDS priorities SETA’s have been established as key implementation agents of the National Skills Development Strategy. A broad range of objectives are contained in the second NSDS, which includes support to small businesses, entrepreneurs, NGO’s/CBO’s and BEE firms. The guidelines from the Department of Labour for the drafting of this sector skills plan require that the last chapter of the document addresses the SETA’s planned activities in support of the above. This chapter therefore focuses on broader skills development interventions aligned to the objectives and deliverables contained in the National Skills Development Strategy 2005 - 2010. It also proposes a range of potential partnerships which could maximise delivery against the performance indicators in the strategy, and contribute to sustainability of interventions. It would however not do justice to the sector skills plan if this chapter does not conclude with a strategy for skills development in the food and beverages manufacturing sector.

5.1 GROWTH AND DEVELOPMENT STRATEGIES Two sector charters - the wine charter and the Agri-BEE charter - provide strategic direction to, among other, skills development interventions. The need to develop an adequate pool of BEE candidates for appointment in senior positions will be strongly supported whilst, at the bottom end of the spectrum of skills development needs, continued support will be provided for the improvement of the baseline educational level of employees in the sector.

5.2 SCARCE SKILLS PROJECTS FoodBev SETA has launched a “Scarce Skills Project” where a pool of skilled people are developed in a range of areas identified as scarce skills (millwrights, electricians, fitter and turners, operations managers, food scientists, engineering technicians and food technologists). In addition, funds from the National Skills Fund, received early in 2007, will provide further support in these areas. A “Scarce Skills Guide” has been developed with target audience being: o Scholars at the point of making subject choices o School leavers at the point of making study choices o Students at tertiary institutions, at the point of making career choices. The focus will be on career opportunities in the sector, whilst striving to make the sector attractive to prospective employees. This guide has been distributed widely, and also proved to add value within companies for career progression opportunities, but also to create awareness on sectoral scarcity and focus areas for skills development.

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5.3 QUALITY AND ADEQUACY OF PROVISION Discussions with Higher Education Institutions regarding the applicability of their curricula have commenced. This will be further pursued and work-based qualifications will be developed to support HET curricula, if required. Providers with the capacity to deliver multiple qualifications and comply with the criteria for “centres of excellence” are be supported, and cross-sectoral support in the area of trades and engineering will be further explored. Qualifications will be developed in areas where no current training programmes exist, e.g. for the occupation of “cellar master”. Similarly, learning pathways will be developed for specialised areas in the sector, such as master baker. This will allow for career progression from the level of operator or factory worker. A comparative study between apprenticeship and learnership training are in progress, to evaluate if differences exist between the skills sets developed. Providers that comply with quality requirements will be identified and supported.

5.4 SUPPORT FOR ENTREPRENEURIAL AND SMALL BUSINESS DEVELOPMENT The establishment and growth of small businesses is one area that can contribute to alleviating unemployment in South Africa, as indicated in among other, ASGI-SA. A range of projects are being supported, with sustainability as a critical consideration in selection of these projects. In the section that follows, FoodBev Seta’s contribution to the NSDS, but also it’s the strategic focus, is provided.

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5.5 FOODBEV SETA CONTRIBUTION TO THE NSDS

NSDS 2005 – 2010

Objectives

NSDS 2005 - 2010 Success Indicators: Sector Targets

and Outcomes

Sector strategy

Mechanism

1. Prioritising and communicating critical skills for sustainable growth and development and equity

1.1 Skills development supports national and sectoral growth, development and equity priorities

− Identify scarce and critical skills requirements within sector

− quantify scarce and critical skills

− specify equity profile of people trained

− Align incentives to support development of scarce and critical skills

Sector Skills Plan Sector skills guide

1. Prioritising and communicating critical skills for sustainable growth and development and equity

1.2 Information on critical skills widely available to learners. Impact of information dissemination researched, measured and communicated in terms of rising entry, completion and placement of learners

− Develop Sector Skills Guide

− Train sector specialists and SDF’s in use of scarce and critical skills information

Scarce skills guide Training sessions

2. Promoting and accelerating quality training for all in the workplace

2.1 80% of large firms’ and 60% of medium firms’ employment equity targets supported by skills development. Impact on overall equity profile of firms and sectors measured

– Companies plan for skills development as part of company strategy

Mandatory Grants Process


2.2 40% of small levy paying firms supported and the impact of support measured

– Companies plan for skills development as part of company strategy

Mandatory Grants Process Free training courses/projects


2.5 Increasing number of BEE firms and cooperatives supported by skills development

– Establish baseline, with support from DoL – Analyse needs – Develop and implement skills development

support strategy

Discretionary Grants Process

2. Promoting and accelerating quality training for all in the

2.7 At least 5 000 workers have achieved ABET level 4

– Grants to companies – ABET projects

Discretionary Grants Process

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workplace – Numbers completing ABET levels 1 - 4


2.8 2 444 learners assisted to enter and at least 50% complete learning programmes

– Bursaries, internships, apprenticeships, workplace experience

– Learnerships, skills programmes – 50% completion

Discretionary Grants Process NSF

3. Promoting employability and sustainable livelihoods through skills development

3.2 Skills development support to 39 non-levy paying organisations, NGO’s / CBO’s

− Percentage of discretionary funds to be used to support business in the informal economy – and of those businesses supported

– structured and participative youth and community programmes

– number of skills development facilitators within communities capacitated

– Support delivery of social services, EPWP, exit strategies, and projects initiated by communities and other stakeholders and cooperatives.

– Link skills development to national, provincial, and local growth and development strategies. (also include sector linkages, ie SETAs)

Discretionary Grants Process NSF Projects

4. Assisting new entrants to participate in accredited work, integrated learning and work-based programmes to acquire critical skills to enter the labour market and self-employment

4.1 2 444 young people participating in learnerships, internships, bursary schemes and apprenticeships, successfully completing these programmes and finding placement thereafter

– Learning programmes supported through discretionary grants

– Identify number of participants, 50%

completion

NSF project Discretionary Grants Projects and Process

4. Assisting new entrants to participate in accredited work, integrated learning and work-based programmes to acquire critical skills to enter the labour market and self-employment

4.2 Number of young students in sector relevant programmes in FET and HET institutions assisted to gain work experience. Target to be determined after baseline established.

– provide support to learners in FET band to assist their entrance into the world of work

Discretionary Grants Projects and Process

4. Assisting new entrants to participate in accredited work, integrated learning and work-based programmes to acquire critical skills to enter the labour market and self-

4.3 195 young people trained and mentored to form sustainable new venture and at least 70% of new ventures in operation 12 months after completion of programme

– develop providers’ capacity to support new ventures

Discretionary Grants Projects and Process NSF

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employment

Improving the quality and relevance of provision

Each SETA recognises and supports at least 5 Institutes of Sectoral excellence

− Identify FET and HET institutes that can provide identified scarce skills

− Support programme developed

− Support programme implemented

Discretionary Grants Projects and Process supplemented by NSF project Discretionary Grants Projects and Process

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ANNEXURE A: REFERENCES

Mc Cord, A. Overview of the South African Economy, HRD Review 2003 HSRC: HRD Data Warehouse http://hrdwarehouse.hsrc.ac.za) Statistics South Africa, Quarterly Reviews 2000 - 2005 Department of Agriculture. 2004. AgriBEE: Broad-Based Black Economic Empowerment Framework for Agriculture. Available. [Online]: http://www.nda.agric.gov.za (November 2004). Esterhuyse, W. Socio-political Environment: Trends, Challenges and Prospects. Metlife. Oct. 2003. Medical Research Council, quoted by Jocelyn Vass, HRD Review 2003 Department of Agriculture. 2001. The Strategic Plan for South African Agriculture. Available. [Online]: http://www.nda.agric.gov.za (December 2004). NEDLAC. 2003. Growth and Development Summit Agreement. Available. [Online]: www.polity.org.za/pdf/ GDSAgreement.pdf (August 2005). Luüs, Christo (Oct 2003) Economic Overview of the South African Economy, ABSA Economic Research Group, October 2003 HSRC (2003) Human Resources Development Review 2003, Pretoria Statistics SA, September 2003 Labour Force Study P0210September 2003.pdf DTI SA Economy www.thedti.gov.za/econdb/manufrev Dept of Labour (2003) National Skills Survey Compiled by HRD Research Programme, HSRC Kraak et al (2000) Baseline Survey of Industrial Training in South Africa Gelb, (2003) S An Overview of Inequality, Poverty and Growth in south Africa The EDGE Institute Bhorat, H. (2003b) The Post Apartheid Challenge: Labour Demand Trends in the South African Labour Market, 1995-1999. Development Policy Research Unit, University of Cape Town. DPRU WP 03/82. Statistics South Africa. The South African Labour Market. Pretoria, 2002b Bhorat, H (2000) The Impact of Trade and Structural Changes on Sectoral Employment in South Africa. Development South Africa. Gujarati, DN, 2003, Basic Econometrics, McGraw-Hill

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ANNEXURE B: ABBREVIATIONS AND ACRONYMS

ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

ASGI-SA Accelerated Shared Growth Initiative South Africa

DoL Department of Labour

ETQA Education and Training Quality Assurance Bodies

FAWU Food and Allied Workers Union

FoodBev SETA Food and Beverages Manufacturing Sector Education and

GDP Gross Domestic Product

HACCP Hazard Analysis Critical Control Points

HIV Human Immuno-Deficiency virus

HR Human Resources

HSRC Human Science Research Council

ISC International Standard Classification

ISO International Standards Organisation

IT Information Technology

NQF National Qualifications Framework

NSB National Standards Body

NSDS National Skills Development Strategy

NUFBWSAW National Union of Food, Beverage, Wine, Spirits and Allied

Workers

QMS Quality Management System

RPL Recognition of Prior Learning

SAFATU South African Food and Allied Trade Union

SAQA South African Qualifications Authority

SARS South African Revenue Services

SDA Skills Development Act

SDLA Skills Development Levies Act

SDS Skills Development Strategy

SETA Sector Education and Training Authority

SETA Sector Education and Training Authority

SGB Standards Generating Body

SMME Small, Medium and Micro Enterprises

SSP Sector Skills Plan

SWOT Strengths, Weaknesses, Opportunities, Threats

WSP Workplace Skills Plan

Documents

Sector Skills Plan - Food & Bev · o The industrial and occupational profile of the sector o The profile of the workforce 1.1 THE ECONOMIC ENVIRONMENT 1.1.1 The Macro-Economy and