FOODBEV SETA Food and Beverages Manufacturing Parliamentary Labour Portfolio Committee 3rd November 2009 Ravin Deonarain CEO

Introduction and Appreciation Thanks and Appreciation: Hon Minister of Labour Hon Chairperson of Labour Portfolio Committee Hon Committee Members Representatives of FoodBev Seta Council Member: Mr Hennie Korff Council Member Mr Boaz Mashele Corporate Services Manager: Ms Liezl Gerryts CFO: Mr Raj Rajcoomar Skills Development Projects Manager: Mr Khotso N Potele CEO: Mr Ravin Deonarain Company Name

Presentation Outline FoodBev Sector Highlights and Challenges Funds Management NSDS Performance Customer Satisfaction Portfolio Committee Specific Concerns Consultants Training Layoff Provision Employment Equity Ravin Deonarain

FoodBev Sector Economic Characteristics Diverse sector Price sensitive products High production volumes – costs driven Capital intensive and technology driven Intense brand competitiveness Dominance - large companies and multinationals Large number small food manufacturers (85%) Mergers and acquisitions (brands)

FoodBev Sector Companies and Products: SA Breweries, Kellogg's, Nestle, Frito-Lay Simba, ABI, Coke Cola, Tiger Brands, Unilever Foods, Clover, Oceana Fishing, Enterprize Meats, Nabisco, McCain's Foods, Beacon, Cadbury’s Bokomo Contribution to GDP : R83.2 b for Food R30 b for Beverages Total employment : +-176 000 (known) Company Name

Labour Market 1994: Macro Economic Stabilisation and Trade Liberalisation Growth in demand for skilled labour Job shedding of unskilled and semi skilled Production - 17,16 % of manufacturing sector output Employment - 15,63% of manufacturing sector Wages - 13,74% of manufacturing sector Employment – 2 % of total economy (DTI, 2007) Ravin Deonarain

Funds Management Trend (Rm) Ravin Deonarain

Success Indicator 2008/9 Target PERF %age 80% LARGE 128 140 109% 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 Success Indicator 2008/9 Target PERF %age 80% LARGE 128 140 109% 60% MEDIUM 148 106% Ravin Deonarain

2.2 SKILLS DEVELOPMENT IN AT LEAST 40% OF SMALL LEVY-PAYING FIRMS SUPPORTED AND IMPACT MEASURED Success Indicator 2008/9 Target PERF %age 40% SMALL 330 450 136% Ravin Deonarain

Success Indicator 2008/9 Target PERF %age BEE Co’s supported 24 36 2.5 ANNUALLY INCREASING NUMBER OF SMALL BEE FIRMS AND BEE CO-OPERATIVES SUPPORTED BY SKILLS DEVELOPMENT. SURVEY PROGRESS AND MEASURE IMPACT. Success Indicator 2008/9 Target PERF %age BEE Co’s supported 24 36 150% Ravin Deonarain

2.7 700 000 workers have achieved ABET Level 4 Success Indicator ABET Level 1-4 2008/9 Target PERF %age Entered 800 1806 301% Completed 600 1448 359% Ravin Deonarain

2.8. 125 000 WORKERS ASSISTED TO ENTER AND AT LEAST 50% SUCCESSFULLY COMPLETE APPROVED PROGRAMMES Success Indicator Learning Programmes 2008/9 Target PERF %age Entered 800 2324 291% Completed 500 717 143% Ravin Deonarain

Target Success Indicator Skills Dev Support 2008/9 PERF %age 3.2. 2000 non-levy paying enterprises, NGOs, CBOs, and community-based co-operatives supported by skills development. Impact of support on sustainability measured with a targeted 75% success rate. Success Indicator Skills Dev Support 2008/9 Target PERF %age NGOs, CBOs, Co-ops Non Levy Paying Companies 40 82 177% Ravin Deonarain

4.1. 125 000 unemployed people assisted to enter and 50% successfully complete programmes Success Indicator Learning Programmes 2008/9 Target PERF %age Entered 600 1283 214% Completed (50%) 300 381 127% Ravin Deonarain

To Gain Work Experience 5 7 140% 4.2. 100% of learners in critical skills programmes covered by sector agreements and Nat Priorities from local FET and HET institutions assisted to gain work experience. 70% find placement in employment or self-employment. Success Indicator 2008/9 Target PERF %age To Gain Work Experience 5 7 140% Find placement after completion 70 67 96% Ravin Deonarain

70% operational after 12 months 90 111 123% 4.3. 10,000 young people trained and mentored to form sustainable new ventures and at least 70% of new ventures in operation Success Indicator New Venture Creation 2008/9 Target PERF %age Entered 5 12 240% 70% operational after 12 months 90 111 123% Ravin Deonarain

ISOE’s recognised/supported 1 2 200% 5.1. By March 2010 each SETA recognises and supports at least five Institutes of Sectoral or Occupational Excellence (ISOE) within public and private institutions and through Public Private Partnerships (PPPs) Success Indicator 2008/9 Target PERF %age ISOE’s recognised/supported 1 2 200% Ravin Deonarain

New Venture Creation Provider 4 5 125% 5.2. Each province has at least two provider institutions accredited to manage the delivery of a new venture creation qualification. 70% of new ventures still operating after 12 months Success Indicator 2008/9 Target PERF %age New Venture Creation Provider 4 5 125% Ravin Deonarain

SAQA Audit of FoodBev Seta 1 100% 5.3. Measurable improvements in the quality of the services delivered by skills development institutions Success Indicator 2005/6 Target PERF %age SAQA Audit of FoodBev Seta 1 100% Ravin Deonarain

Beneficiaries Employment Equity Company Name

NSDS 2 2005-2009 Total Learning Programmes: 13 890 Learnerships Completion Rate 30% (average) Drop out 12% In Progress 58% Issues L/ship completion rate slow – 15 months Withhold/recover grant funds Investigation report commissioned

NSDS 2 2005-2009 Skills Programmes Internships/Work Experience Completion rate – 83% Drop out rate - 5% Internships/Work Experience Employment Rate - 100 % Apprentices in training - 850

FoodBev Seta SLA Performance 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 DoL Rating Excellent 5/5 Exceeds Targets 4/5 NSDS 1 NSDS 2 Rating Includes: NSDS/SLA target performance for sector Financial Performance

Customer Survey Results Ravin Deonarain 24

FoodBev Staff Employment Equity Company Name

Consultants Very specialized skills Non recurring and infrequent Specific tasks or projects Costs and resources Area Number Costs Scarce Skills Research 1 R 371 000 Skills Forecasting Tool Development R 201 600 Customer Satisfaction Survey R 112 400 Assessors and Moderators 12 R 438 900

Training Layoff Communication in sector - all media Briefing Organised Labour Forum Employer Forum Council Decision 300 skills programmes – R 1.8 m 30 new venture creation – R 0.75 m

Thank you Questions