TETA PRESENTATION TO PARLIAMENT Dr Piet Bothma 19 October 2005 Dr Piet Bothma 19 October 2005

TRANSPORT SECTOR PROFILE ChamberMicroSmallMediumLargeUnclassifiedTotalLevies AC FC FH MC RC RF RP TC Unknown Total

Transport Sector Profile OCCUPATIONAL CATEGORIES AFRICANCOLOUREDINDIANWHITETOTAL Legislators, Senior Officials and Managers Professionals Technicians and Associate Professionals Clerks Service and Sales workers Skilled agricultural and fishery workers Craft and related trade workers Plant and machine operators and assemblers Elementary occupations TOTAL PERMANENT

TETA Structure Driving Force: To provide the best quality service and maximise value for all stakeholders Eight chambers: - Aerospace - Forwarding and Clearing - Freight Handling - Maritime - Rail - Road Freight - Road Passenger - Taxi Driving Force: To provide the best quality service and maximise value for all stakeholders Eight chambers: - Aerospace - Forwarding and Clearing - Freight Handling - Maritime - Rail - Road Freight - Road Passenger - Taxi

TETA STRUCTURE TETA currently has 49 full time staff. This will be increasing to 54 with the addition of 5 new positions currently being recruited. TETA currently has Offices in Gauteng, Kwa-Zulu Natal and Western Cape. STAFF COMPLIMENTPDIFemaleMaleVacant CEO11 Senior Managers Practitioners Admin Staff Support Total % Black 61 % Female15 % Vacant TETA currently has 49 full time staff. This will be increasing to 54 with the addition of 5 new positions currently being recruited. TETA currently has Offices in Gauteng, Kwa-Zulu Natal and Western Cape. STAFF COMPLIMENTPDIFemaleMaleVacant CEO11 Senior Managers Practitioners Admin Staff Support Total % Black 61 % Female15 % Vacant

SCARCE & CRITICAL SKILLS High level Transport Management, General Management and IT Skills to ensure Redress and Transformation of the Transport Sector. The Technical Critical and Scarce skills per Sub-Sector/Industry is as follows: AEROSPACE Fixed wing pilot training, specifically the progression from Commercial Pilot Licence (CPL) level to Airline Transport Pilot (ATP) level. Aircraft Maintenance Staff – Mechanical, electrical, structural and avionics. Airport Planning Engineers FORWARDING & CLEARING Supply Chain Management Customer Care Logistic & Data Analysis Project Management IT Skills High level Transport Management, General Management and IT Skills to ensure Redress and Transformation of the Transport Sector. The Technical Critical and Scarce skills per Sub-Sector/Industry is as follows: AEROSPACE Fixed wing pilot training, specifically the progression from Commercial Pilot Licence (CPL) level to Airline Transport Pilot (ATP) level. Aircraft Maintenance Staff – Mechanical, electrical, structural and avionics. Airport Planning Engineers FORWARDING & CLEARING Supply Chain Management Customer Care Logistic & Data Analysis Project Management IT Skills

SCARCE & CRITICAL SKILLS (Cont.) FREIGHT HANDLING Logistics Management Port Operation/Management Operators (Forklift and Lifting Machinery) / Technical IT Skills MARITIME Navigation Skills – Watch Officer (Fishing & Merchant Marine) Engineering Skills – Watch Officer (Fishing & Merchant Marine) Fishing Technologies / Fish Hunting competencies Marine Pilots RAIL Train Driving Railway Engineering (Maintenance, Repairs, Building and Designing) Production Planning and Logistics IT Skills Rail Traffic Management (Development & Implementation) FREIGHT HANDLING Logistics Management Port Operation/Management Operators (Forklift and Lifting Machinery) / Technical IT Skills MARITIME Navigation Skills – Watch Officer (Fishing & Merchant Marine) Engineering Skills – Watch Officer (Fishing & Merchant Marine) Fishing Technologies / Fish Hunting competencies Marine Pilots RAIL Train Driving Railway Engineering (Maintenance, Repairs, Building and Designing) Production Planning and Logistics IT Skills Rail Traffic Management (Development & Implementation)

SCARCE & CRITICAL SKILLS (Cont.) ROAD FREIGHT Dangerous Goods Professional Driver Qualifications Porters, Loaders and Packers (Material Handling) Technical Skills (Maintenance & Support) IT Skills ROAD PASSENGER Professional Driver Qualifications Maintenance Management & Technical Skills IT Skills Logistics and Supply Chain Management TAXI Professional Driver Qualifications (Upgrading Code 8 to 10) Legislation Customer Care Business Administration ROAD FREIGHT Dangerous Goods Professional Driver Qualifications Porters, Loaders and Packers (Material Handling) Technical Skills (Maintenance & Support) IT Skills ROAD PASSENGER Professional Driver Qualifications Maintenance Management & Technical Skills IT Skills Logistics and Supply Chain Management TAXI Professional Driver Qualifications (Upgrading Code 8 to 10) Legislation Customer Care Business Administration

TETA Achievements in line with National Skills Development Strategy Objectives SLA TARGETS 2000 – 2005ACHIEVEMENTS 2000 – 2005 By March 2005 at least workers in the transport sector have at least a level one qualification on the NQF or higher workers completed at least a NQF level one Qualification learners have embarked on a structured learning programme with at least having successfully completed their programme learners participated on a structured learning programme completed structured learning programme. 20 Enterprises committed to implement QMS 27 Enterprises committed and implementing QMS NSDS 1 - Developing a culture of high quality lifelong learning

NSDS 2 (1):Fostering skills development in the formal economy for productivity and employment growth SLA TARGETS ACHIEVEMENTS 2000 – 2005 By March 2005, at least 198 enterprises with more than 150 workers are receiving skills development grants 217 enterprises with more than 150 workers received skills development grants and contribution towards productivity were measured At least 88 enterprises employing between 50 and 150 employees are receiving Skills Development grants 109 enterprises employing 50 – 150 employees received skills development grants and the contribution towards productivity were measured

NSDS 2 (2):Fostering skills development in the formal economy for productivity and employment growth SLA TARGETS ACHIEVEMENTS 2000 – 2005 By March 2004, 50 learnerships are available in the Transport Sector 55 learnerships registered and 52 apprenticeships available in the Transport Sector NDoT pay levies to TETA. NDoT align HRD strategy with TETA’s strategy - TETA signed MOU with 7 Provincial DoT - NDoT Contributed their component of the skills levy to TETA - NDoT and TETA do joint research on skills demands in the Transport Sector - NDoT align their HRD strategy with TETA Skills Development strategy for the Transport Sector

NSDS 3: Stimulating & supporting skills development in small businesses  Working relationship with DTI on SMME development. TARGETS: ACHIEVEMENTS: 2000 – 2005 By March 2005, at least new and existing registered small businesses supported through Skills Development initiatives A total of new and existing registered small businesses were supported and the impact of such support measured

NSDS 4: Promoting skills development for employability and sustainable livelihoods through social development initiatives SLA TARGETS ACHIEVEMENTS 2000 – 2005 By March % of the NSF apportionment disbursed on viable development projects By March 2005, R 26.4 million were disbursed. A further R 38.6 million were committed, to be disbursed before end of June 2005 By March 2005, at least learners from the Taxi and Small Boat Fishing Industries have benefited through structured training A total of learners have benefited from structured training in the Taxi Industry and in the Small Boat Fishing Industry

NSDS 5: Assisting new entrants into employment TARGETS: ACHIEVEMENTS: 2000 – 2005 By March 2005, a minimum of learners have entered learnerships in the Transport Sector 6568 learners entered learnerships, in the Transport Sector By March 2005, 50% of those learners who entered learnerships will have employable skills or are in Social Development Programmes 85 % of learners successfully completed their learnership and achieved placement in the Transport Sector

Innovative Achievements TETA accredited as an IiP Organisation (35 % of TETA staff in Higher Positions) Awarding over R140 mill to DG Projects R 20 mill SMME Project – employees and 927 Companies employing less than 49 people benefited R 72 mill NSF Project People benefited from structured learning R 58 mill NSF Learnership Project – Unemployed Learners R 14 mill DG Learnership Project – 560 Unemployed Learners 27 TETA Stakeholders committed to IiP Freight Handling, Dangerous Goods, Supply Chain Management, Maintenance Management and SMME Project successfully implemented in co-operation with the Belgium Government support TETA signed MOU’s with 5 Provinces - Department of Transport to add value in TAXI Industry Training Labour (552), Assessors (118), SDF’s (160) and Moderation Training successfully implemented TETA accredited as an IiP Organisation (35 % of TETA staff in Higher Positions) Awarding over R140 mill to DG Projects R 20 mill SMME Project – employees and 927 Companies employing less than 49 people benefited R 72 mill NSF Project People benefited from structured learning R 58 mill NSF Learnership Project – Unemployed Learners R 14 mill DG Learnership Project – 560 Unemployed Learners 27 TETA Stakeholders committed to IiP Freight Handling, Dangerous Goods, Supply Chain Management, Maintenance Management and SMME Project successfully implemented in co-operation with the Belgium Government support TETA signed MOU’s with 5 Provinces - Department of Transport to add value in TAXI Industry Training Labour (552), Assessors (118), SDF’s (160) and Moderation Training successfully implemented

Income Statement for the year ended March 2005 R’000 INCOME Levy income – Admin Levy income – Grant Levy income – Interest & penalties NSF Investment Income Other Income 91 EXPENSES Administration expenses NSF Project expenses Mandatory Grant Disbursement Discretionary Grants SURPLUS Notes: Grants Disbursed as a percentage of grant income, is 64% Administration expenditure for the year was within the administration income of the Seta. Interest income was earned on the funds placed on call on surplus funds. The net surplus funds are all committed funds for the mandatory and discretionary grants and projects in terms of its contract obligations. The income statement recognizes all payments made for the year in terms of contracts concluded and the difference is regarded as committed funds in terms of Generally Accepted Accounting Practice. Grants Disbursed as a percentage of grant income, is 64% Administration expenditure for the year was within the administration income of the Seta. Interest income was earned on the funds placed on call on surplus funds. The net surplus funds are all committed funds for the mandatory and discretionary grants and projects in terms of its contract obligations. The income statement recognizes all payments made for the year in terms of contracts concluded and the difference is regarded as committed funds in terms of Generally Accepted Accounting Practice.

Grant Disbursement Schedule for the year ended March 2005 Financial YearAcademicImplementationTotal MandatoryDiscretionaryTOTAL GRANTS Year-ended Year-ended

ANNUAL FINANCIALS & AUDIT RESULTS 2004 – 2005 Financial Year –SDL Income = R –Total Investment Income = R –Total revenue = R –Total expenses = R –Expenses as percentage of SDL Income = 93% –Net surplus / (deficit) = R –Total Cash & Cash equivalents = R – 2005 Financial Year –SDL Income = R –Total Investment Income = R –Total revenue = R –Total expenses = R –Expenses as percentage of SDL Income = 93% –Net surplus / (deficit) = R –Total Cash & Cash equivalents = R

COMMITTED FUNDS AND PROJECTS 1Discretionary Grant Contracts 70,670, Project Contracts 32,675, Learnership Contracts 7,828, SMME Contracts 3,924, General Trade Suppliers 1,173, Provision for Audit Fees 250, Provision for Unpaid Leave 672, Provision for Academic/Imp Grants 108,051, Provision for Discretionary Grants 12,348, SMME for year ,000, Taxi Technical Training 1,000, Taxi Follow up Training 10,000, Learnership ETDP with TETA 1,000, Service Provider Support 5,000, NGO's and CBO's 5,000, BEE Company Support 5,000, Investors in People 1,000, Fishing Industry Support - 7 Hubs 7,000, Discretionary Grant ,500, Total Committed Funds = 304,611,678.55

ANNUAL FINANCIALS & AUDIT RESULTS –TETA has achieved unqualified audits by the Auditor General’s (AG’s) office for the last five years. This can be attributed to the stringent controls that are in place. –No matters of emphasis were identified by the AG’s office –No significant matters were identified by the AG’s office with the exception of reporting of surplus vs committed funds. –TETA has achieved unqualified audits by the Auditor General’s (AG’s) office for the last five years. This can be attributed to the stringent controls that are in place. –No matters of emphasis were identified by the AG’s office –No significant matters were identified by the AG’s office with the exception of reporting of surplus vs committed funds.

KEY CHALLENGES Ensure High Quality Service Delivery to TETA Stakeholders Implementation of Total Quality Management Systems (ISO 9002) Facilitate a high quality delivery framework in line with Critical and Scarce Skills and logistical spread of stakeholders Avail information on Supply and Demand of Skills in the Transport Sector Addressing Transformation, Economic Growth, Retirement, Flow of HR between sectors, New entrants Support to SMME and SMME sustainability Challenges facing the Transport Sector preparing for 2010 Skills demand for Gautrain Project Formalisation of TAXI Industry and Skills demands for the Industry Small Boat Operators Safety at Sea Impact of HIV/AIDS on the Transport Sector demand for Skills Inter-Model Transport Operations and an Integrated Supply Chain Management Strategy Demand Different Skills Mix International Best Practices Ensure High Quality Service Delivery to TETA Stakeholders Implementation of Total Quality Management Systems (ISO 9002) Facilitate a high quality delivery framework in line with Critical and Scarce Skills and logistical spread of stakeholders Avail information on Supply and Demand of Skills in the Transport Sector Addressing Transformation, Economic Growth, Retirement, Flow of HR between sectors, New entrants Support to SMME and SMME sustainability Challenges facing the Transport Sector preparing for 2010 Skills demand for Gautrain Project Formalisation of TAXI Industry and Skills demands for the Industry Small Boat Operators Safety at Sea Impact of HIV/AIDS on the Transport Sector demand for Skills Inter-Model Transport Operations and an Integrated Supply Chain Management Strategy Demand Different Skills Mix International Best Practices

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