Portfolio Committee on Labour 20 October 2005 Presented by: Mr. Joel Dikgole (CEO – W&RSETA)

OVERVIEW OF PRESENTATION W&R SETA PROFILE W&R SECTOR PROFILE NSDS ACHIEVEMENTS OTHER ACHIEVEMENTS AFS & AUDIT RESULTS STRATEGIC PROJECTS KEY CHALLENGES

W&RSETA PROFILE BOARD MEMBERS MANAGEMENT STRUCTURE DEMOGRAPHICS REGIONS – KZN & WC

EMPLOYER ORGANIZATIONS 6 BOARD MEMBERS FROM: RA FTA SOINSA SAISA HOST

EMPLOYEE ORGANIZATIONS 6 BOARD MEMBERS FROM: SACCAWU SACTWU DICHAWU HOTELLICCA FEDCRAW ECCAWUSA

GOVERNANCE STRUCTURE Main Board Executive Committee FinanceAuditRemunerationProjects Core Functions JIPETQA

Labour COO SmmeL/ShipsSkillsIiP CFO FinanceProjectsITSCMHR Comms CEO PA ETQA PA Board Secretariat W&RSETA MGMT STRUCTURE HEAD OFFICE Regions

Organogram and Demographics

STAFF COMPLEMENT African =43Females = 32Males = 11 Whites = 7Females = 6Males = 1 Coloureds = 6Females = 4Males = 2 Indian = 3Females =1Males = 2

W&R SECTOR PROFILE STATISTICS COMPANIES REGISTERED COMPANIES PARTICIPATING CRITICAL SKILLS

W&R SECTOR PROFILE SEPTEMBER 2004 # EMPLOYED-2.5m RETAIL TRADE SALES -R352bn WHOLESALE TRADE-R485bn TOTAL SALES-R837bn Source: Stats in brief 2005-Statistic SA

Number of Companies Levy Paying Companies Including-R Threshold Small <50 employees-24k Medium employees-664 Large employees-234

W&R SECTOR PROFILE CRITICAL & SCARCE SKILLS SUPPLY CHAIN MANAGERS MANAGERS RETAIL IT EXPERTS RETAIL TECHNICAL SKILLS FINANCE Source: SSP

Scarce skills Store Managers Management  Store Management  Financial Marketer  Marketing Management  Call Center Operator  Life Skills-HIV/Culturally Diversity/Leadership Supply Chain Managers Supply Chain Management  Buyer and Planner Importer & Exporter (Merchandise Planner)  Warehouse Management Distributor-DC Warehouse Distributor  Logistics  Inventory Retail Information Technology Experts Retail IT  Management  Project Management  Business Analyst  Programmers Analysts Inventory Control Software Developers  W&R Com. Literacy Retail Technical Skills Technical Skills  Butchery/Blockman  Bakery/Confectioner  Window Dresser  Retail Beauty Sales  Food Preparation/Sales  Store Designer CAD Designer  Visual Merchandisers  Repairs-Jewellery,watch, furniture,small appliances Finance  Accounting  Internal Audit  Credit Controller  Credit Clerks

REGISTERED VS PARTICIPATING ORGANISATIONS 5 year TREND REGISTERED ORGS – 17k TO 46k LEVYPAYING ORGS- 13K TO 24K WORKPLACE SKILLS PLANS – 564 TO 9,5k IMPLEMENTATION REPORTS TO 6k

Registered Organisations vs Participating in Sector % Increase of registered organisations in the sector Year 2000/ Org. Year 2001/ % Org. Year 2002/ % Org. Year 2003/ % Org. Year 2004/ % Org.

Participating Organisations % Increase in participating companies Year 2001/2002Year 2002/2003Year 2003/2004Year 2004/ % 563 to % 1184 to % 3478 to % 8421 to 9545

Registered Organisations Per Region

Participating Organisations Per Region

Levy vs Grants paid Small (1-49) Category Category2000/ / / / /2005 Levies Received Grants Paid

Levy vs Grants paid Medium (50-149) Category Category2000/ / / / /2005 Levies Received Grants Paid

Levy vs Grants paid Large (150+) Category Category2000/ / / / /2005 Levies Received Grants Paid

Levy Income vs Grants paid Total Per Category CategorySmallMediumLarge Levies Received568 m52m221m Grants Paid234m18m175m % Grants Paid41%34%79%

ANNUAL FINANCIAL STATEMENTS OVERVIEW OF FINANCES CASH & CASH EQUIVALENTS SURPLUS FUNDS STRATEGIC PROJECTS REPORT OF THE AUDITOR GENERAL MATTER OF EMPHASIS

REPORT OF AUDITOR GENERAL AUDIT OPINION: UNQUALIFIED EMPHASIS OF MATTER: RESUBMISSION OF FINANCIAL STATEMENTS

Finances-General Overview Actual R’000 Levy Income971m Invest Income75m Employer grants (46% of levy inc.) Projects Expenses 446m 231m Administration costs110m Available for Strategic Projects265m

W&RSETA – 5 year overview Information based on audited financial statements PER YEARR’000 Levy income Invest Income Mandatory Grants Project expenses Administration expenses Surplus/ (deficit) (24 901)

Surplus funds - Overview CUMULATIVER’000 Surplus funds available (A) Surplus funds allocated (B) (B) as % of (A)090%41%61%95% Surplus funds spent (C) (C) as % of (B)017%44%33%49%

2004/05 Information 2004/05 Annual Financial StatementsR’000 SDL Levy Income – 80%R Investment incomeR Total revenue (including 80% levy income, NSF income, investment income etc.) R Total expenses (grant provision and project expenses etc.)R Admin expense (9%) Net Deficit(R24 901) Cash and cash equivalentsR

Cash and cash equivalents 2004/05 Annual Financial StatementsR’000 Cash and cash equivalentsR ADD: Assets, including levy receivables and fixed assetsR LESS: Current liabilities, including grants payable, accounts payables, accruals etc. (R ) Funds available for strategic projectsR LESS: Net allocation to projects (difference between total allocation and total expenditure) (R ) Unallocated fundsR23 694

Surplus funds - Overview CUMMULATIVER’000 Surplus funds available (A) Surplus funds allocated (B) (B) as % of (A)090%41%61%95% Surplus funds disbursed(C) (C) as % of (B)017%44%33%49%

STRATEGIC PROJECTS SETA FUNDED AMOUNT ALLOCATEDR472m AMOUNT DISBURSEDR230m

SETA SPONSORED STRATEGIC PROJECTS LearnershipsR217m Capacity Building for UnionsR 10m Qualifications (Dev.)R 7.5m I.S.D.F’SR 24m SMME’SR 24m ABET R 30m Assessor Training R 7m People Living with Disabilities R 30m

NSDS ACHIEVEMENTS SCORECARD ACHIEVEMENTS BY OBJECTIVE OTHER ACHIEVEMENTS

DoL SCORECARD PERFORMANCE ASSESSMENT SUMMARY ScoreComment NSDS Targets5 Execllent perfomance levels achieved by the W&RSETA Governance and Management5 Execllent perfomance levels achieved by the W&RSETA Financial Management2.5 Execllent perfomance levels achieved by the W&RSETA Sector representation and Stakeholder SupportN/A Not scored but evaluated by DoL, NSA and NEDLAC and comments on possible improvments submitted. Overall Score for SETA4.17

NSDS Targets NSDS Objective Objective 1: To develop a culture of high quality lifelong learning Seta Target March 05 A Target for 8000 ABET Learners was set workers on structured learning programmes 20 Enterprises to be committed to or have achieved the National agreed standards (IiP) Seta Progress 8000 learners embarked on a learning programme towards an NQF Level one qualification workers have embarked on structured Learning programmes 35 Levy paying organisations have committed to IiP Target Exceeded

Number of People Trained by Companies Total number of people trained =

PROFILE OF SKILLS PROGRAMMES OFFERED BY ORGS TEAMWORK153,516 CUSTOMER RELATIONSHIP 58,679 PRODUCT KNOWLEDGE 26,416 AIDS 13,800 SALES 12,136

NSDS Targets cont. NSDS Objective Objective 2: To foster skills development in the formal economy for productivity and employment growth Seta Target March Enterprise Large and Super 448 Enterprises Medium 7 Learnerships to be developed Seta Progress 210 enterprises are receiving grants 487 enterprises are receiving grants 10 learnerships developed Target Exceeded

NSDS Targets cont. NSDS Objective Objective 3: To stimulate and support skills development in small businesses Seta Target March SMMEs receiving Seta support Seta Progress 7350 SMMEs received support 2566 SMMEs received training. 145 SMME retail training companies received facilitation skills training Total of SMME received support Target Exceeded

NSDS Targets cont. NSDS Objective Objective 4: To promote skills development for employability and sustainable livelihoods through social development initiatives Seta Target March 05 Project RAVE Learners to be trained in nine provinces Seta Progress learners have completed the training and mentorship Target Exceeded

NSDS Targets cont. NSDS Objective Objective 5: To assist new entrants into employment Seta Target March SETA Target 3000 GDS Target Seta Progress 18.1 Employed Learners – Unemployed Learners Target Exceeded

LEARNERSHIPS STATUS SETA Target Total Achieved Total Complete d Total In Progress Termination s Total

Learnership Achievements National Certificate: W&R Processes (NQF 2) National Certificate: W&R Sales and Service Technology (NQF 4) National Certificate: Certificate in Retail Operations Management (NQF 5) Total

STRATEGIC PROJECTS NSF FUNDED (R 000m) PROJECT RAVE AMOUNT ALLOCATEDR68m AMOUNT DISBURSEDR54m 18.2 LEARNERSHIP (unemployed) AMOUNT ALLOCATEDR50m AMOUNT DISBURSEDR38m

W&RSETA QUALIFICATIONS 20 QUALIFICATIONS DEVELOPED 11 REGISTERED WITH SAQA & DoL National certificate: Retail shop floor practices - NQF Level 2 National certificate: Retail and wholesale sales and services technology 4 National certificate: Wholesale and retail credit control 4 National certificate: Wholesale and retail operations supervision 4 National certificate: Wholesale and retail sales practices3 National certificate: Wholesale and retail operations management 5 National certificate: Retail and wholesale processes 2 National certificate: Wholesale and retail distribution 2 Wholesale and Retail Generalist2 Wholesale and Retail Specialist4 Wholesale and Retail Management 5

OTHER ACHIEVEMENTS 5 Unqualified Audit reports Re-Accreditation as an ETQA by SAQA -3years Re-Established as a SETA for next 5 years 57 Providers Accredited  30 In house – organisations  15 External  12 BEE 68 FET Colleges participating in W&RSETA qualifications 1421 Assessors Registered 125 Moderators Registered 2193 Certificates for Full Qualifications issued 2500 Record of Achievements in SMMEs 295 Learning Programmes approved

BEST PRACTICE SAQA Auditors congragulates : Qualifications Framework Balance Score Card IT Policies and Procedures

CHALLENGES Increase training and participation of SMME’S Form strategic private,public & community partnerships Capacitate and Accredit SMME Providers Develop exit strategies - Learnerships Develop new demand-led qualifications Address Scarce Skills National Presence –Provincial Roll-out Strategy Implement our Vision Plan Assess & Evaluate impact

Specific Issues for Portfolio Committee Attention… R500K exemption has caused the following:  There will be no database of businesses to work with (A suggestion to work with DTI database)  Number of SMMEs participating has been reduced  Reduced funding base  Increased administration to better manage non-levy paying companies Companies pay levies but do not train employees. Placement of unemployed remains a challenge. Other government agencies should be encouraged to work with the SETAs

Key Challenges for 2005 – 2006 contd…. To establish partnerships with Education Institutions for driving.  New Venture Creation  ABE  Institutes of Sectoral Excellence  High Level Qualifications  Informal Sector Skills Development  RPL To foster cooperation with Provincial & Local Government to localise delivery To initiate Public Private Partnerships with Corporates in the Sector for the benefit of SMMEs and the unemployed, especially women To improve our impact assessment mechanisms so that we can be able to improve our delivery to the sector. To refine our discretionary grant disbursement capability

Key Challenges for To establish the SETA presence in all provinces To establish a comprehensive list of scarce skills in the sector To develop skills programmes that adequately address the needs of the sector To create a seamless interface with other SETAs that will enable employees in our sector to access skills programmes in those SETAs To initiate learnerships that result in placement for the unemployed To increase the number of providers that are accredited to deliver Wholesale and Retail training programmes To increase the number of SMMEs that participate in skills development

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