ARR 224 NEW Lectures 15-16 Skills Development and Training

Learning outcomes Provide an explanation of the purposes of the SDA. Explain the establishment and functions of the NSA. Explain the establishment and functions of a SETA. Explain the establishment and functions of a Skills Development Planning Unit and a Labour centre. Discuss learnerships and skills programmes. Explain the payment of levies and/or the payment of grants.

Introduction Skilled workforce essential requirement for growth of our economy. Training increasingly important. Since 1922 legislation for theoretical and practical training. 1997: Green Paper on Skills Development Strategy for Economic and Employment Growth in SA. Amendments to SDA: Skills Development Levies Act; the Skills Development Amendment Acts 2003 and 2008 and Higher Education Laws Amendment Act. A very important change was the transition of certain responsibilities in terms of the Act from the Minister of Labour (Private employment services and workplace productivity) to the Minister of Higher Education and Training (Administering SDA). Low Unemployment: Creation of employment opportunities Development of skilled workforce Placement of workers in appropriate positions SDA promotes skills development strategy, which is flexible, accessible, demand-led, decentralized, and based on partnership between the public and private sectors. SDA provides for establishment of labour centres, learnerships and skills programs. Not under Minister of Labour anymore but Minister of Higher Education.

Administrative structure

Skills Development Strategy Forms part of SA’s aims to reduce poverty, increase employment, improve international competitiveness, reduce crime and increase economic growth. Need for: Practical skills Ability to perform set of tasks. Foundational skills Understanding of what one does and why one does it. Reflexive skills Integrating performances to learn from mistakes. Vision: Integrated skills development system promoting economic and employment growth and social development by focussing on education and training. Core strategy: creation of enabling environment for expanded strategic investment in skills development. (Partnerships between public and private sector with joint control and shared costs). The National Skills Development Strategy III published in January 2011 sets out the current vision, principles and objectives of the National Skills Strategy. This strategy applies until 2015 and aims to increase access to high quality and relevant education and training and skills development opportunities; to enable effective participation in the economy and society by all South Africans and to reduce inequalities. The goals identified to support the national strategy are: NB to establish a credible institutional mechanism for skills planning; increasing access to occupationally-directed programs; promoting the growth of a public FET college system that is responsive to sector , local, regional and national skills needs and priorities; addressing the low level of youth and adult language and numeracy skills to enable additional training; encouraging better use of workplace-based skills development; encouraging and supporting cooperatives, small enterprises, worker-initiated, NGO and community training initiatives; increasing public sector capacity for improved service delivery and supporting the building of a development state; and supporting the building of a development state; and building career and vocational guidance.

Skills Development Strategy in the context of legislation and other policies LRA Bargaining- & Statutory Councils must develop educational schemes. Consult with WPF on education and training. SAQAA Quality and access to education. BCEA Employers and learners conclude contracts of employment. EEA Development and training of designated groups.

SDA (Introduction) Result of discussions within DoL and social partners in National Training Board and Industry training boards. Promotes skills development strategy that is flexible, accessible, demand-led, decentralised and based on partnership between public and private sectors. SDA Amendment Act 37/2008 introduces new definitions – see sect 1.

SDA (Purposes) NB Main purpose: Create institutional framework to implement strategies to develop skills. Workplace is active learning environment. Secondary purposes: Development of skills of SA workforce: to improve quality of life of workers, their prospects of work and labour mobility. to improve productivity in workplace and competitiveness of employers. to promote self-employment. to improve the delivery of social services. To increase investment in education and training in labour market. To encourage employers: to use workplace as active learning environment. to provide employees with opportunities to acquire new skills. to provide opportunities for new entrants to labour market to gain work experience. to employ persons who find it difficult to be employed. To encourage workers to participate in learning programmes. To improve employment prospects of persons previously disadvantaged by unfair discrimination and to redress those disadvantages through training and education. To ensure quality of learning in and for workplace. To assist work seekers to find work, retrenched workers to re-enter labour market and employers to find qualified employees. To provide and regulate employment services.

SDA (Institutional and financial framework) Components of system should be linked with each other and with strategy. NSA and DoL assists Minister in developing strategy. NSA liaise with QCTO (Quality Council for Trades & Occupations) and SETA; SETA implements strategy by registering skills programmes, learning programmes and learnership agreements. DoL assisted by provincial offices of DoL and labour centres. Other bodies such as accredited trade test centres, skills development institutes, provincial skills development forums, national artisan moderation body and PSA (Productivity SA) also play a role.

SDA (National Skills Authority) Promotes strategic focus of skills development and co-ordination between different stakeholders. Replaces old National Training Board with stronger advisory powers (giving industry, community representatives and other government departments stronger voice). Composed of voting chairperson, non-voting executive officer, 24 voting and 6 non-voting members. Appointed by Minister and DG and represent organized business, organized labour, State, organizations of community development, training providers, SAQA, QCTO etc. Five deputy chairpersons also appointed. Functions: NB Advise Minister on national skills development policy, national skills development strategy, guidelines on implementation of the strategy, strategic framework and criteria for allocation of funds from the NSF and any regulations to be made. Liaise with SETAs. Report to Minister on progress made in implementation of national strategy. Conduct necessary investigations on any matter arising out of application of Act. To liase with the QCTO on occupational standards and qualifications. Exercise powers and perform duties conferred/imposed on NSA by the Act.

SDA (Sector Education and Training Authorities- SETA) Minister may establish SETA for any national economic sector. In determining specific sector, Minister must take into account the following: Education and training needs of employers and employees who use similar materials, processes and technologies and who make similar products or render similar services. Potential of sector for coherent occupational structures and career pathing. Scope of any national strategy for economic growth and development. Financial and organizational ability. Organizational structures of trade unions, employers’ organizations and government departments must be considered and consensus between them with regard to sector must be sought. Employers and employees in sector must be equally represented on SETA. State departments, professional bodies and bargaining councils must also be represented. Chambers may also be established. Each chamber must have equal representation of employees and employers, must perform functions delegated to it and is entitled to percentage of skills development levies as determined by Minister. Functions: NB To develop sector skills plan within framework of national strategy. To implement its plan. To establish and promote learning programmes and to register agreements for learning programmes. To approve workplace skills plans and annual training reports. To apply for accreditation as a body monitoring education and training standards and qualifications. To collect and disburse levies. To liaise with NSA on national policy and strategy and its sector skills plan. To report to DG on income and expenditure and implementation of its service level agreements. To liaise with provincial offices and labour centres of DoL and any other education bodies to improve information regarding placement opportunities. To liaise with provincial skills development forums on prescribed issues. To appoint necessary personnel. To perform any functions delegated to it by the QCTO.

SDA (Department of Labour) Functions of SDPU has been taken over by provincial offices and labour centres of DoL. Must research and analyse labour market trends to determine skills development for SA as a whole, each sector of the economy and organs of State. Must assist Minister and NSA in formulating national strategy and plans for sectors. Must advise Minister, NSA, SETAs, education and skills development providers, skills development forums, QCTO and organs of State on skills trends and future skills needs.

SDA (Provincial offices and labour centres) Refer to sect 23 of SDAA to distinguish between functions of provincial offices and labour centres. Employment services are rendered to employees, unemployed persons, work seekers and employers. Services comprise counselling on career choices, assessing work seekers for entry or re-entry into labour market or for education and training, referring work seekers to employers or education and training providers, assisting employers by providing recruitment and placement services, advising employers on availability of work seekers and advising them on retrenchments and development of social plans. Functions of labour centres: to provide information for workers, employers, skill development providers and the unemployed to register workseekers and placement opportunities; to assist workers and categories of persons prescribed by regulation to enter learning programmes, find placement opportunities, start income generating projects and participate in placement programmes; develop plans, programmes and strategies to extend employment services to rural communities; and; perform any other related functions prescribed by regulation.

SDA (Learnerships) NB May be established by SETA if such learnership is related to occupation, includes a structured learning component and structured work experience component and will lead to SAQA-qualification. Learnership agreement entered into between learner, employer/group of employers and accredited training provider. I.t.o. agreement: Employer must employ learner for period specified, provide him with specified practical work experience and allow him to attend specified education and training. Learner must work for employer and attend specified education and training. Skills development provider, accredited by QCTO must provide specified education and training and necessary support to learner. All learnership agreements must be registered with relevant SETA. Learnership agreement can be terminated before specified date if learner successfully completes learnership, if SETA approves of termination or if learner, as an employee, is fairly dismissed for incapacity/misconduct. Possible to substitute employer/skills development provider with consent of learner. Any dispute arising from learnership agreements must be dealt with through dispute resolution procedures set out in sect 133 of LRA. Employer and learner must enter into contract of employment if learner was not in employment of employer when learnership agreement was concluded.

SDA (Skills programmes) Programme that is occupationally based and, when completed, will constitute a credit towards a qualification registered i.t.o. National Qualifications Framework. Any person who has developed skills programme may apply to SETA for grant or to DG for subsidy. Programme may be funded if all requirements have been complied with and if it has been developed in accordance with sector skills plan and national skills strategy. Programme will be monitored by SETA/DG, and funds may be withheld/recovered if not used for purpose they have been made available.

SDA (Artisan development) Artisan = Person certified as competent to perform listed trade. Refer to sect 26A-26D of SDAA. Provision is made for a national artisan body, a national register of artisans and trade tests.

SDA (Skills Development Institutes-SDI) Refer to sect 26E of SDAA. Main functions include advisory services, mentoring and recognition of prior learning and providing learning programmes.

SDA (Quality Council for Trades and Occupations) Refer to sects 26F-26J of SDAA. Advise Minister on policy on occupational standards and qualifications and regulations regarding occupational standards and qualifications.

SDA (Productivity South Africa) Refer to sects 26K-26N of SDAA. Must promote culture of productivity in workplaces, develop productivity competencies etc.

SDA (Financing of skills development) National Skills Fund (NSF) established by SDA. Derives funding from 20% of levies collected in relevant sectors, levies collected from those sectors in which there is no SETA, money appropriated by Parliament, interest earned on investments and any donations. NSF may only be approached for projects identified in national skills development strategy as national priorities or any other projects related to achievement of purpose of SDA. DG controls Fund. Every public service employer in national and provincial governments must budget for at least 1% of its payroll for training and education of employees.

SDA (Miscellaneous) Labour Court exclusive jurisdiction i.r.o. all matters arising from SDA. Monitoring and enforcement of SDA will be done in exactly same manner as BCEA. Number of offences are created in Act, e.g. obstruction/undue influence of any person performing function i.t.o. SDA.

SDLA (Introduction) Employers exempted from paying levies: NB Makes provision for compulsory levy scheme to fund education and training. Administered by DG and Commissioner for SARS. All employers who are not exempted from provisions of SDLA must register with Commissioner of SARS and pay prescribed monthly levy. Employers exempted from paying levies: NB Any public service employer in national/provincial sphere of government. Any employer whose total payroll for the next 12 months will not exceed R500.000.00. Any public benefit organization which solely carries on religious/charitable benefit activity or any public benefit organization which provides funds solely to such organization. Any national/public entity if 80% or more of expenditure is defrayed from funds voted by Parliament. Any municipality i.r.o. which certificate of exemption has been granted. Levy payable by employer is 1% of employer’s payroll (monthly). Leviable amount includes all remuneration paid to employers and all alternative remuneration. Pension, superannuation allowance or retiring allowance is excluded. Levies must be paid to Commissioner of SARS within 7 days after end of each month.

SDLA (Payment of grants) Regulations published by Minister make provision that employers who are up to date with payment of skills levy can claim grants from their SETA. The following are the six different grants which may be claimed by employer:NB Workplace skill grant. Workplace skill implementation grant. Grant towards costs of learnerships and learner allowances. Grant towards costs of skills programmes. Grant towards costs of providing apprenticeship training. Grant towards a programme, project or research activity that helps relevant SETA to implement sector skills plan.