Dichotomy SDA vs B-BBEE Chrissy Berichon on behalf of Auto Chamber

5 4 3 2 1 Skills Development Act This Act aims to improve the skills of workers by promoting education and training in the workplace. to improve the delivery of social services to promote self-employment It governs the National Skills Authority and Fund, the skills development levy-grant scheme, the Sector Education Training Authorities (SETAs), labour centres and the Skills Development Planning Unit. These bodies encourage partnerships between the public and private sectors of the economy and help new entrants into the labour market to find work. to improve productivity in the workplace and the competitiveness of employers 5 Act to improve the quality of life of workers, their prospects of work and labour mobility 4 the To develop the skills of the South African workforce 3 of 2 Purpose 1 The

4 2 1 5 3 Broad-Based Black Economic Empowerment Act Manual This Act aims to advance economic transformation and enhance the economic participation of black people in the South African economy. Clarified that international trainings are recognisable provided they meet the SAQA requirements for recognition Manual Introduced a 15% cap for non-core training costs such as accommodation, catering etc. Verification The 6% compliance target for skills development expenditure maintained and clarification provided that it include external training expenditure. the Informal and work based training (Category F and G) is recognisable but capped at 15% of the total value of Skills Expenditure. Of 5 Manual 4 Verification The threshold requirement for this priority element is 40% of the total weighting points for Skills Development General Principles 3 the 2 of 1 General Principles

C B A Synopsis Cohesive, all inclusive Act? Problem Statement 1 C SDA: Train as many as you can. (Grants Policy 2016/17 – 85% PDI, 2% disabled, 54% Female) B-BBEE: Train black and disabled people. B Problem Statement 2 B-BBEE Code of Good Practice SDA: Create opportunities for employment through adequate skills training. B-BBEE: Enforce employment through bonus points. Problem Statement 3 SDA: Implementation tracked through WSP/ATR. (Zero cost) B-BBEE: Implementation tracked through Verification Agency. Skills Development Act A

Employment opportunities Impact Train Less Learners 2 Inconsistent Application Ref 3 Train all learners Employment opportunities Train less learners 1 95% 100% 30% The quick brown fox jumped over the lazy dog

B-BBEE Verification Agencies Comparison (Ref 3) Questions Verifier Agency? A B C D E Train all employees? No Yes, not all count AMIC Category? F Overseas training? Yes, 15% Employment of Learners- all the time? Yes Learner, employed and unemployed? Unemployed learners count towards Bonus Points?

Additional Questions With regards to B-BBEE, what is the role of the following different forums NAAMSA B-BBEE Task Group? NBF Industry Policy Forum? In-Plant Training Committees? Employment Equity Forums? Transformation Committees? merSETA Auto Chamber? AIDC?