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SUBSECTOR SKILLS PLAN

BASE CHEMICALS

16 SEPTEMBER 2014

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CONTENTS

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

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

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

3.2 Artisans ............................................................................................................................... 4

3.3 TECHNICIANS ....................................................................................................................... 4

3.4 ENGINEERS .......................................................................................................................... 5

4. SKILLS DEVELOPMENT PRIORITIES ...............................................................................................5

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

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

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1. INTRODUCTION

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

Petroleum and Base Chemicals

Fast Moving Consumer Goods and Pharmaceuticals

Explosives and Fertilisers

Speciality Chemicals and Surface Coatings

Glass.

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

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

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

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

Statistical Overview

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

Key Challenges and Opportunities

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

Skills development Priorities

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

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Scarce skills

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

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

2. STATISTICAL OVERVIEW

ORGANISATIONS IN THE SUBSECTOR

Number of levy-payers in subsector 563 Percentage of levy-payers in the Chemical Sector 29 Percentage of levies paid in the Chemical Sector 11

EMPLOYMENT IN THE SUBSECTOR

Total employment 20 662

PROVINCIAL DISTRIBUTION OF EMPLOYEES

Province N %

Eastern Cape 964 4.7

Free State 1 934 9.4

Gauteng 8 774 42.5

KwaZulu-Natal 4 201 20.3

Limpopo 648 3.1

Mpumalanga 1 148 5.6

North West 1 248 6.0

Northern Cape 164 0.8

Western Cape 1 579 7.6

Total 20 662 100.0

AGE DISTRIBUTION OF EMPLOYEES

Age category N %

Younger than 35 7 480 36.2

35 - 54 10 433 50.5

55 - 59 1 611 7.8

60 and older 1 137 5.5

Total 20 662 100.0

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OCCUPATIONAL DISTRIBUTION OF EMPLOYEES

Occupational Group N %

Managers 2 547 12.3

Professionals 2 370 11.5

Technicians and associate professionals 4 786 23.2

Clerical support workers 2 306 11.2

Service and sales workers 560 2.7

Skilled and related trades workers 1 162 5.6

Plant and machine operators and assemblers 3 908 18.9

Elementary occupations 2 631 12.7

Learners 391 1.9

Total 20 662 100

EQUITY Race and gender distribution of employees

Female Male Total

N %* N %* N %*

African 2 118 10.3 9 292 45.0 11 410 55.2

Coloured 589 2.9 1 132 5.5 1 721 8.3

Indian 465 2.3 1 100 5.3 1 565 7.6

White 1 983 9.6 3 984 19.3 5 967 28.9

Total 5 155 25.0 15 506 75.0 20 662 100.0

*Percentage of total employment in subsector. Number of women and Blacks per occupational group

Occupational Group

Women Blacks

N %* N %*

Managers 644 25.3 893 35.1

Professionals 873 36.8 1 212 51.1

Technicians and associate professionals 1 173 24.5 3 163 66.1

Clerical support workers 1 222 53.0 1 609 69.8

Service and sales workers 219 39.1 389 69.5

Skilled and related trades workers 87 7.5 774 66.6

Plant and machine operators and assemblers 277 7.1 3 772 96.5

Elementary occupations 589 22.4 2 520 95.8

Learners 71 18.2 362 92.7

Total 5 155 25.0 14 695 71.1

*Percentage of employment in occupational group.

Number of disabled people employed 121

Disabled people as % of employment 0.6

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HIGHEST EDUCATIONAL QUALIFICATIONS OF EMPLOYEES

NQF Level N %

Below Level 01 430 2.1

Level 01 342 1.7

Level 02 1 094 5.3

Level 03 1 042 5.0

Level 04 7 992 38.7

Level 05 1 485 7.2

Level 06 2 123 10.3

Level 07 1 486 7.2

Level 08 572 2.8

Level 09 258 1.2

Level 10 70 0.3

Undefined 3 767 18.2

Total 20 662 100

3. KEY CHALLENGES AND OPPORTUNITIES

Key challenges and unrealised opportunities related to skills development in the Base Chemicals Subsector were identified during a chamber meeting held in July 2014.

3.2 ARTISANS

Some companies still find it difficult to recruit qualified artisans.

Opportunities to develop semi-skilled staff into artisans through the recognition of prior learning (RPL) are not yet optimally utilised by companies. There seems to be a need for public or private training institutions to take over the responsibility for RPL.

The poor quality of maths and science teaching at all levels remains a challenge as it stifles the supply of candidates who qualify for artisan training programmes.

The quality of education and training offered by the technical vocational education and training (TVET) colleges, is not to the satisfaction of the industry. This impacts negatively on the quality of artisan training and on the numbers of apprentices and learners who qualify as artisans.

Organisations in the sector are willing to release staff to teach at the TVET colleges. However, this potential resource still needs to be harnessed by the TVET sector.

Artisans should not only be trained in technical skills, but training should also include administrative skills such as report writing.

The articulation between TVET colleges and universities of technology can be improved so that artisans can have the opportunity to develop into higher level professionals – not only into managers.

3.3 TECHNICIANS

Some companies find the recruitment of technicians challenging.

The training content of the programmes offered by the universities of technology are not always to the satisfaction of the industry.

There is not a training programme in place for the up-skilling of technicians to higher level technical positions.

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Specialised training programmes need to be moved from private to public education and training institutions.

There is a need for the recognition of prior learning for technicians.

Generally technicians don’t register with the Engineering Council of South Africa (ECSA). One of the most important reasons why they don’t register is the fact that they cannot meet the training requirements for registration. This and other aspects of the registration and professionalisation of technicians need to be discussed with ECSA.

There is a need for more support for training that prepares candidates for the Government Certificates of Competence (GCC). People with these certificates are sought after in industry and the certificates can open up career opportunities for artisans and technicians.

3.4 ENGINEERS

Shortages of engineers are experienced in the subsector and there is a clear need to increase the number of enrolments on engineering programmes.

Engineering programmes don’t address the specific needs of this industry.

Engineers don’t register with ECSA and those who do don’t always meet the continuous professional development (CPD) requirements in order to maintain their registration. This poses a problem to the industry.

4. SKILLS DEVELOPMENT PRIORITIES

For the Petroleum and Base Chemicals Chamber the following are priorities:

The implementation of the South African Petroleum Institute in support of an integrated skills development strategy in the petroleum industry. The Institute will be virtual in nature, consisting of a select number of affiliated educational institutions (FET colleges, universities of technology, universities and private providers) recognised as key providers to the industry and accredited by the CHIETA Education and Training Quality Assurance Body(ETQA). A centralised institute office will fulfil a facilitating and coordinating role in: o the provision of appropriate skills for the industry across the value chain, i.e.

upstream, midstream and downstream, through curriculum development, alignment

with technological advances, continuous professional development (CPD)

programmes, etc.;

o building capacity in educational institutions by supporting educators to become

subject matter experts in their respective fields, and by periodic engagement of

experts from educational institutions abroad and/or from industry as guest

lecturers;

o the provision of placements for experiential and work-based training – learnerships,

apprenticeships and internships;

o guiding and facilitating the articulation of appropriately skilled staff to higher

qualification levels through the recognition of prior learning and career

development, with a special emphasis on equity and redress; and

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o collaborating with accreditation bodies such as CHIETA-ETQA, the Quality Council for

Trades and Occupations (QCTO), ECSA, and the departments responsible for the

Government Certificate of Competence (GCC), where appropriate.1

The implementation of a coherent approach to skills development in the oil and gas industry, inclusive of a Marine Oil and Gas Academy, aimed at linking industry with public and private providers and learners in the oil and gas value chain, and developing local capacity, benchmarked against global standards.

Skills to support new and emerging developments such as shale gas exploration and extraction through hydraulic fracturing or “fracking”. It is expected that this new development will require people with a strong maths and science base, that skills will have to be developed across all levels and that emphasis will have to be placed on trans-disciplinary natural and social science skills.

1 Statement of Intent: A South African Petroleum Institute, 18

th July 2014.

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5. PRIORITY AND SCARCE SKILLS O

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121101 Finance Manager YES 1 490 NO 6 8 0.5 2

121206 Health and Safety Manager YES 367 NO 5 18 4.9 1

122101 Sales and Marketing Manager YES 1 238 NO 13 57 4.6 9

132102 Operations Manager - Manufacturing

YES 1 843 NO 12 28 1.5 Plant managers scarce in certain areas, e.g. East London.

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133103 Data Management Manager YES 7 NO 1 1 13.4 1

133105 Information Technology Manager

YES 177 NO 2 10 5.5 10

134915 Operations Manager - Non Manufacturing

YES 46 YES 3 14 30.4 2

211101 Physicist YES 1 NO 3 27 2090.0 26

213110 Medical Scientist YES 255 YES 10 16 6.3 2

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

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214104 Production Engineering Technologist

YES 39 YES 1 20 51.7 20

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

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

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214901 Biomedical Engineer YES 5 NO 1 1 22.0 1

215101 Electrical Engineer YES 293 NO 5 11 3.8 Engineers not registered. Experienced engineers are scarce.

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

YES 1 410 NO 11 65 4.6 13

241104 External Auditor YES 20 NO 3 16 80.5 5

241107 Financial Accountant YES 432 NO 3 15 3.5 4

243301 Sales Representative - Industrial Products

YES 2 126 NO 19 58 2.7 Industry is very specialised and requires technical and sales ability - multi skilled people with experience are difficult to fin

243302 Sales Representative - Medical and Pharmaceutical Products

YES 3 031 NO 12 33 1.1 Medical Reps shortage 3

251202 Programmer Analyst YES 119 NO 1 1 0.8 1

311101 Chemistry Technician YES 3 736 NO 14 38 1.0 14

311103 Radiation Control Technician YES 12 NO 1 11 88.9 Shortage of Black radiation practitioners.

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311301 Electrical Engineering Technician

YES 569 NO 6 10 1.8 7

311801 Draughtsperson YES 165 YES 8 25 15.1 1

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312202 Maintenance Planner YES 1 012 NO 2 1 0.1 1

313104 Nuclear Power Plant Process Controller

YES 3 NO 1 7 257.0 7

313301 Chemical Plant Controller YES 5 802 NO 26 52 0.9 6

313401 Gas or Petroleum Controller YES 1 547 NO 1 1 0.1

332207 Chemical Sales Representative YES 594 NO 10 20 3.3 4

334302 Personal Assistant YES 847 NO 1 1 0.1 1

432301 Transport Clerk YES 170 NO 1 1 0.6 1

321201 Medical Laboratory Technician YES 66 NO 2 3 5.1 1

325705 Safety Inspector YES 522 NO 2 3 0.6 1

524903 Sales Clerk YES 784 NO 3 3 0.4 2

651302 Boiler Maker YES 202 YES 2 103 51.0 9

652302 Fitter and Turner YES 862 NO 7 28 3.3 13

653303 Mechanical Fitter YES 2 078 NO 6 18 0.9 11

671102 Electrical Installation Inspector YES 6 NO 2 83 1313.5 3

684305 Quality Examiner (Manufactured Products)

YES 272 NO 1 4 1.7 4

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ANNEXURE A Methodology used to weight WSP data to sector totals

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

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

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

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

Subsector < R100 000 R100 000 - R999 999

R1 mil – R4 999 999

R5 mil – R9 999 999

R10 mil +

Base Chemicals 4.5 1.1 1.3 1.0 Explosives

1.0

1.0

FMCG 2.2 1.1 1.2

1.0

Fertilisers 3.7 1.2 1.0 Glass 5.3 1.7

1.0

Petroleum 1.9 1.3 1.3 1.0 1.0

Pharmaceuticals 1.8 1.1 1.3 Speciality Chemicals 1.7 1.1 1.0 1.0

Surface Coatings 2.0 1.1 1.0