Forestry Skills Development Forum NATIONAL SKILLS DEVELOPMENT STRATEGY Policy and Implementation Framework 20 August 2008

Presentation outline 1. What is the mischief and Goal 2. Skills Development Framework 3. Funding framework to sustain NSDS implementation 4. NSDS 2001 – 2005, NSDS 2005 – 2010 achievements 5. DWAF and FIETA Strategic Partnership 6. What is new or in the pipeline?

1. What is the mischief? RESEARCH AND INNOVATION Need to EXPAND our capacity to Innovatee and rresearch New work opportunities to signal scarce & critical skills needs! SUPPLY SIDE Need to INCREASE the quantity of those with quality further and higher learning REDUCE Graduates without jobs? Retrenched? Long-term unemployed? DEMAND SIDE Need to INCREASE the number of employers and workers in quality lifelong learning School leavers? Very few opportunities for many General Education and Graduates EARLY CHILDHOOD DEVELOPMENT Improve and expand ADULT BASIC EDUCATION AND TRAINING Redress GENERAL EDUCATION INCREASE the quality of schooling for all

Higher Education (HSRC HRD review 2008) Full time candidates writing the Senior Certificate examination 451 000 Fail SCE: Ineligible to enter HE 131 000 29% Pass SCE Eligible to enter HE 320 000 80% Pass without Endorsement 239 000 75% Pass with Endorsement 81 000 25% Do not enter public HEIs in year after Grade 12 255 000 80% of students with SC eligible to enter HE Enter public HEIs in Year after grade 12 65 000 20% of students with SC eligible to enter HE Enter Private HE Enter public or private FET Enter or attempt to enter labour Market Other (do not study further or work)

Low skills and the Poverty Virtuous Circle “A low-skill, low-productivity, low-wage economy is unsustainable in the long term and is incompatible with poverty reduction. This is the virtuous circle of inadequate education, poor training, low productivity and poor quality jobs and low wages that traps the working poor and excludes workers without relevant skills from participating in economic growth and social development in the context of globalization. This also negatively affects the competitiveness of enterprises and their capacity to contribute to economic and social development.” www.ilo.org: Skills development for improved productivity, employment, growth and development June 2008 Conclusions

Quality skills and its impact on productivity, employment & development An international, national and regional development strategy based on improved quality and availability of education and training can engender, by contrast, a virtuous circle in which skills development fuels innovation, productivity increase and enterprise development, technological change, investment, diversification of the economy, and competitiveness that are needed to sustain and accelerate the creation of more and better jobs in the context of the Decent Work Agenda, and improve social cohesion. www.ilo.org: Skills development for improved productivity, employment, growth and development June 2008 Conclusions

Achieving 6% sustainable economic growth Labour Our National Goal Achieving 6% sustainable economic growth Halving unemployment and poverty by 2014 (Millennium Development Goal)

2.Skills Development Framework National skills Authority Stakeholder body responsible for advising the Minister on policy, strategy and implementation of the NSDS. Sector Education and Training Authorities 23 bodies responsible for NSDS implementation, learnership design and registration, accreditation of providers and grant allocation National Skill Development Strategy 2001-2005, and 2005 - 2010 Policy framework recommended by NSA on National Objectives & Targets to be achieved Seta Regulations Seta Establishment, Seta Grant Regulations, Service Level Agreement with DoL and guidelines.

Skills Development Framework Learnerships, Apprenticeships and skills programmes Regulations and guidelines, learnership determination National Skills Funding Windows Provides funding support to identified skills priorities areas to achieve NSDS Objectives. NSF Criteria and Guidelines provides procedures to access funding for projects mainly for the poor contributing towards NSDS Objectives & Targets Skills Levy Framework Collection and allocation of funding to sustain NSDS interventions

3. Funding Framework to sustain NSDS implementation SD LEVIES ACT, 1999 3. Funding Framework to sustain NSDS implementation SARS Transfer levies collected to NRF Transfer information to DG Labour Maintain employer data per SETA Collect 1% payroll levy from all eligible employers by 07th of each month National Revenue Fund Maintains record of levies as part of DoL budget Transfer funds to NSF & SETAs based on SARS informa- tion and after approval by DG Labour Department of Labour Verifying calculations and authorize transfers to SETAs within 20 days Conclude SLA with SETAs on usage Employer SETA NSF Up to 2% of levies paid to SARS to cover collection costs Up to 2% for NSF Administration 80% 20%

DoL / Seta Service Level Agreement Framework Cascades five year national objectives and targets to sectors Provide framework for each sector to negotiate and sign off on annual sector objectives and targets Establish and implement monitoring & measurement system Framework for annual performance assessment Basis for pro-active SETA support process and implementation of corrective actions quarterly

Seta Discretionary Grants Framework (20%+ Other Income) Sector skills research and planning Critical skills information dissemination Support non levy paying companies, NGOS, CBOs, Cooperatives Support learners with ABET Support learners in learning programmes linked to scarce skills

Seta Discretionary Grants Framework (20%+ Other Income) continued Support learners to gain workplace experience Train and mentor youth to from new ventures Support institutes of sectoral or occupational excellence Support new venture creation projects or learning institutes Support providers or institutions that are implementing the NQF in support of NSDS

Seta Discretionary Grants Framework (20%+ Other Income) continued Support ESDAs on learnerships Support Employment & Skills Development Lead Employers on learnerships (ESDLEs) Support learnerships and apprenticeships Support other sector priority skills development initiatives

NSF – Core Purpose Funds in the NSF may be used only to fund: Projects identified in the National Skills Development Strategy (NSDS) as National Priorities or Other projects related to the achievement of the purpose of the Skills Development Act as the DG determines

NSF FUNDING WINDOWS..cross-cutting criteria NSDS Equity targets BBBEE (Procurement) Geographic spread (e.g. urban/rural split) Legal and corporate governance compliance by implementing agencies Funding excludes financing of capital expenditure and operating costs SA Citizenship

NSF FUNDING WINDOWS NSDS 2005 2010 No NSF Funding Window NSDS Indicators/Mandates 1 Social Development Initiatives (Incl EPWP) Indicator 3.1 2 Adult Basic Education & Training (ABET) Indicator 3.3 3 Critical Skills Support Indicators 1.2 & 4.1 4 Provisioning Support Indicators 2.4 & 5.3 (SDA Amendment Act) 5 Industry Support Programme Indicator 2.3 & Job Summit Agreement 6 Informal Sector Support Indicators 3.2; 4.3 & 5.2 7 Constituency Capacity Building & Advocacy Indicator 5.4 8 Special Projects NSDS Principles 9 Discretionary Projects & Innovation SDA

4. NSDS 2001 – 2005 Achievements Learnerships & apprenticeships and other skills programmes achievements, by March 2005: During the period April 2001 to 31 March 2005 109 647 unemployed and 61 279 employed learners entered learnerships and apprenticeship structured programmes Bussaries allocated R27 to NRF for 693 post graduate, R46 m to NASFAS for 6 195 undergraduate and R13 m of this amount benefited 441 learners with disabilities. 95 503 SMEs assisted in various skills programmes 899 686 learners participated in NSF and SETA sponsored ABET programmes. Equity targets across all programmes was 89% black, 45% women and 0.2% people with disability

NSDS 2001 – 2005 Achievements Employability and sustainable livelihoods Social Development Projects for unemployed during 2004 – 2005 spent +R 271 million in training 53 990 learners, 82% of whom were placed within formal, social development, informal or further education opportunities. Beneficiaries were 59% Youth, 99% Black, 57% Women and 3% People with Disabilities Small business assistance Out of 131 073 levy paying SMEs, 95 503 claimed their grants and supported in skills interventions.

NSDS 2001 – 2005 Achievements During the period April 2005 to 31 March 2008 Youth that benefited from SETAs, NSF & UYF 142 031 unemployed people trained and 55 747 successfully completed those learning programmes Employed workers 238 809 workers entered learning programmes, 121 812 completed 121 884 workers entered all ABET levels and 32 147 completed Unemployed people 330 645 unemployed people trained and 217 121 were placed and on average 32% received accredited training

DWAF and FIETA Partnerships is of strategic importance in a number of areas within and beyond the borders of South Africa 5. Partnerships

Social dialogue, coordination and cooperation Social dialogue, coordination and cooperation centrality in ensuring successful policy frameworks ILO Skill for improved productivity, employment, growth and development 2008. Governments and social partners need to work in the framework of social dialogue for shaping national, regional and international skills development programmes that can promote the integration of the economic, social and environmental dimensions of sustainable development. The relationship between skills development, productivity, employment growth and development is complex. For skills development policies to be effective, governments, in consultation with the social partners, must build policy coherence by linking education, research and skills development to labour markets, social policy, technology, public services delivery, trade, investment and macro-economic policies.

Understanding the importance of promoting Improved coordination at multiple levels in order to make a seamless pathway between education, training, lifelong learning and employment. At the national level, inter-ministerial coordination platforms are critical for concerted actions and coordinating education and skills development programmes offered by various ministries within the country. The coordination between the different levels of government as relevant is equally essential to maintain a balance between decentralized authority in order to be responsive to local labour market needs and quality assurance and standards so that qualifications receive national recognition. (c) At the local level, the coordination and cooperation among municipalities, enterprises, employers’ and workers’ organizations and training providers can significantly contribute to aligning training to the needs of the local labour market. (d) At the regional level there should be coordination between countries and between professional organizations and other relevant related bodies for recognition of skills so as to promote mobility within the region. (e) At the international level, collaboration among international agencies for coherent aid delivery and effectiveness for developing countries to meet the (MDGs) on education.

Governments role in developing forward-looking skills policies that can help enterprises, society and workers to respond positively and benefit from change early identification of sectoral trends and skills needs, including of sectors most likely to be affected by change and sectors most likely to offer substantial growth potential; (b) development of occupational and skills profiles as a base for meeting future skills needs in emerging sectors and industries; (c) balancing vocational and higher general skills to improve the investment climate, productivity and decent jobs; and (d) guiding young people to take up technology-related subjects, including science and mathematics to drive innovation and technological development, whilst also helping workers to develop other creative capabilities.

Special measures to promote social inclusion of target groups (a) Access to education and training is of paramount importance for those who are disadvantaged in society to support them in moving out of the vicious circle of low-skills, low-productivity and low-wage employment. (b) Education and training infrastructure is particularly scarce in rural areas and thus the problem of access to education and training is most acute in rural areas. Innovative outreach programmes are needed (c) In the informal economy, skills development can contribute to improving productivity and working conditions while at the same time might help to address the challenges facing workers in the informal economy. (d) Apprenticeships, cadetships, traineeships and internships are effective means of bridging school and the world of work for young people by making it possible for them to acquire work experience along with technical and professional training and helps overcome their lack of work experience when trying to get a first job.

(e) Special and innovative programmes need to be further explored to meet the specific needs of disadvantaged groups of young people, such as providing school drop-outs with the “second chance” to obtain basic literacy and numeracy skills, special programmes aiming to increase school attendance by girls (f) Training and skills development assist greater integration of people with disabilities in the labour market. While sheltered workshops could build competencies and self-confidence and thus support a transition to the mainstream labour market, integrating people with disabilities into mainstream workplaces is a better approach, whenever possible. Incentives such as tax reduction, reduction of contributory costs of social insurance and assistance in workplace modifications can encourage enterprises to employ people with disabilities. (g) Improved portability of skills, supported by national and/or regional or international qualification frameworks, helps migrant workers obtain employment commensurate with their qualifications and expertise.

Social partners have an equal role to develop and implement internal policy frameworks that complement government interventions: active participation in developing and implementing training systems to ensure that skills are relevant, flexible and that training is accessible to all; (b) mechanisms to motivate and support workers in investing – in terms of effort and commitment – and developing skills, including providing a supportive environment and building the confidence of learners; (c) ensuring that the working conditions observe core labour standards and occupational safety and health standards and facilitate productivity and sustainable development; (d) launching initiatives to advise the social partners and society on the value of the work and life experience of older workers while providing coordinated packages of age-friendly employment measures, including continuous updating of skills, in particular in new technologies; and (e) developing innovative new business ideas which also cater to the use of alternative energies or recycling and meet local or global problems, such as rising water levels, drought and hurricanes.

Interventions in support of AU Heads of States commitments Heads of State and Government of the African Union, 3rd Extraordinary Session Assembly held in Ouagadougou, Burkina Faso, 8th to 9th September 2004, amongst others agreed to: EMPOWER the poor and the vulnerable, particularly in the rural communities and the urban informal economy, the unemployed and the underemployed by enhancing their capacities through education, skills and vocational training and retraining of labour force, access to financial resources, in particular micro-financing, land, infrastructure, markets, technology and services in order to meaningfully integrate them into the labour market;

Skills development role in assisting to manage global drivers of change Skills development should form part of an effective response to changing conditions. Technology and trade have significant impacts on countries whatever their level of development. Other drivers of change, such as migration, demographic trends, and the growing corporatization of agricultural activities, and crises, create similar tensions between displacement of existing jobs and new employment opportunities. What is important is that governments, in consultation with the social partners, develop good active labour market policies and systems, including skills policies as well as sustainable social protection policies which effectively address these challenges as part of a broader proactive and responsive strategy.

Forestry and other Multinational enterprises obligations to host countries. In accordance with paragraph 30 of the MNE Declaration, multinational enterprises “should ensure that relevant training is provided for all levels of the employees in the host country as appropriate, to meet the needs of the enterprise as well as the development policies of the country”. Skills development along global value chains provides opportunities for new knowledge and technology transfers as lead firms provide skills to suppliers further down the supply chain.

Other areas Insuring that FIETA continues to function effectively Relevance of qualifications Government participation and financial contribution towards the administration of the SETA

6. What is new or in the pipeline? The Skills Development Amendment Bill, 2008 and the NQF Bill, 2008 were tabled for 2nd reading in the National Assembly and referred to NCOP National Skills Conference will take place at Ghallager Convention Center on 15 – 17 October 2008 - 2008/9 Achievements and Awards to Best skill development practices 16th October 2008 - Strategic matters affecting NSDS implementation - The New NSDS 2010 - 2015 SETA Landscape Review Implementation of Skills Development Amendment Bill elements such: QCTO, Artisan development, a

215 Schoeman Street, Pretoria, 0001, South Africa Thank You Sam Morotoba Deputy Director General: Employment and Skills Development Services Executive Officer: National Skills Authority Department of Labour: 215 Schoeman Street, Pretoria, 0001, South Africa sam.morotoba@labour.gov.za Tel +2712 309 4783 Fax +2712 320 0792 www.labour.gov.za