Responses of NSDS I & II How far in reaching the targets Vision of the future NSDSIII Presentation to AgriSETA Adrienne Bird DHET 16 September 2010

Let’s go back even further … Before the Manpower Training Act,1981, all training laws were essentially racist It was only in that year that opportunities were first opened to all on an equal footing – after workers and young people had organised mass action in the 1970s (1973 & 1976) This Act set up the National Training Board to advise the Minister of Manpower on training policy … but the black unions were excluded And it changed the previous ‘artisan committees’ into ‘industry training boards’ – but still with a principal focus on artisans

By the end of the 1980s … We had 33 voluntary Industry Training Boards (ITBs), with racially exclusive boards With gaps in industry coverage A voluntary levy system (i.e. very limited training funds) An almost exclusive focus on artisans, White union / employer agreements that kept training white A small ‘Training of Unemployed Persons’ fund There was also a growing number of technical colleges BUT they were, for the first time, taking on ‘private students’ who studied their ‘N’ courses without apprenticeship contracts – something that was unheard of previously.

There were problems … Those with ‘N’ courses only were finding it increasingly difficult to get the workplace experience and training required to take their trade tests Training for ordinary workers was workplace based only – and they were unable to rise to artisan status Parastatals were privatising / commercialising and tax breaks were ended … so even artisan training was in trouble (the heyday for artisans was even earlier) And in the Metal Engineering Industry Education and Training Board in the late 1980s I was told: ‘If we make it compulsory for companies to have facilities for women, we’ll close down training in the industry!

Only as Mandela was being released.. Separate negotiating fora were set up to negotiate ‘education’ and ‘training’ questions. On the training side … Only in 1991 was COSATU invited to join the National Training Board where the National Training Strategy Initiative (the ‘Blue Book’) was negotiated; The agreement reached laid the basis for skills development policy adopted by the Department of Labour in the new democratic government; The Department of Education’s policies arose out of different processes and led to the adoption of parallel strategies. (e.g FET Act, 2006/7 NCV (‘N’?) etc) In 1995 the South African Qualification Authority Act was passed envisaging an integrated NQF

Post 1994, on Labour’s side … 1998 Skills Development Act  SETAs with comprehensive industry coverage 1999 Skills Development Levies Act  Compulsory 1% payroll levy (split 80% + 20%) Sector Education and Training Authorities received 80% of levy  established for ALL workers in sector And National Skills Fund – 20% of levy  To cover national priorities and NSDS targets

Broadly NSDS I and II … Directed the spending of the levy by SETAs and the NSF Divided the grants in the following way:  WSP / ATR 60% (I) 50% (II)  Discretionary grants30% (I)40% (II)  SETA functioning 10% (I)10% (II)

NSDS I & II set Equity Targets 85% black 54% women 4% people with disabilities Achievement on entry: NSDS I = black 89%; women 45%; pwd 0.2% NSDS II (2007) = black 71%; women 39%; pwd 2.1%

Targets nationally set … divided on the basis of % levy received NSDS INSDS II Access plus: 70% workers with Level 1, 15% on structured courses, 20% companies ‘good practice’ Prioritising and communicating info on scarce skills: Supports growth, info available to all Companies & govt: 75% large; 40% medium and all government departments … (WSP) Companies & govt: 80% large and 60% small; 80% govt. spend 1%; 500 firms have good practice, more small BEE firms & co-ops, new investment have ABET 4 Small companies: 20% supported and impact measured Sustainable livelihoods (NSF): allocated and impact measured Sustainable livelihoods (NSF) trained and 70% placed non-levy payers assisted, help measured unemployed get ABET

Targets nationally set … divided on the basis of % levy received NSDS INSDS II Help new entrants: have entered learnerships, 50% placed Unemployed: enter and 50% successfully complete learnerships etc FET & HET students: All in critical areas helped to get work experience, 70% find placement Young people: helped NVC & each province has 2 NCV colleges SETAs recognise and support Institutes of Sectoral or Occupational Excellence (ISOEs); support institutions; constituency capacity building

National results - highlights NSDS I …  99.4% of target on ABET achieved  workers on structured learning (over target)  73 % of large firms claiming grants (target 75%)  39% of medium firms claiming grants (target 40%)  811 learnerships registered in all SETAs, 64% active  small firms supported with skills development  learnership agreements signed (80 000)  77% of 18(2) learners employed after completion  …

National results - highlights NSDS II (2007)  Master scarce skills list developed  Large firms 96%; medium firms 79%; small exceeded targets  ABET: entered and 2% completed  Learnerships etc: in 2005/ entered and completed In 2006/ entered and completed  unemployed people trained (NSF)  FET and HET get work experience: (92% of annual target)  ISOE’s target exceeded … etc.

But problems persisted SETA performance troublesome in some cases (gave all SETAs a bad name) Funding inefficiencies (under-expenditure) And quality concerns raised (some learnerships) SETAs complained they were chasing numbers and not able to address real sectoral concerns Too many indicators – not enough space to serve sector appropriately

2008/ SDA and SAQA Acts Amended  ETQA function removed from SETAs  QCTO legislated  Standard setting to move from SETAs to QCTO delegated bodies … 2009 President restructured government department  DHET established!!!  NSDS II extended for a year  SETA’s extended for a year

NSDS III - process Announced on 30 April 2010 Emphasis on SSPs – targets to be derived from sectoral priorities (not to be administratively led) SETA SSPs – link to HRD Council NSA led consultation NSA advice to be submitted to Minister this week Minister to announce his decision by end of September SETAs to submit NSDS III targets for their sector derived from SSPs

VisionA skilled and capable workforce to support an inclusive growth path Funding Levers SETANSF Code for decent conductSETA discretionary grants NSF ‘catalytic grants’ EquityAddress six key: class, race, gender, age, disability and HIV/AIDS Strategic objectives and impacts (including measures) 4.1 Promote access, success and progression: –Information and career guidance –RPL –Educational base SETA discretionary grants NSF ‘catalytic grants’ 4.2 PIVOTAL occupationsPivotal grant (plus discretionary grants) NSF ‘catalytic grants’ 4.3 Short courses for the employedWSP grant & discretionary grants NSF ‘catalytic grants’ 4.4 Short courses for the unemployedSETA discretionary grants NSF SDFW 4.5 Build the academic profession and engender innovation SETA discretionary grants NSF NRF bursaries 4.5 Strengthen our own capacity and that of our delivery partners to enhance achievement of other strategic objectives. Measure improved success profile of institutions – as throughput etc. SETA discretionary grants NSF ‘capacity building grants’

Vision – taken from MTSF of government Outcome 5 of 12 “A skilled and capable workforce to support an inclusive growth path” At Skills Summit last week social partners including SETAs agreed to work with government to achieve 5 key outputs: Strategic planning and information Raise the base Increase intermediate level skills Increase high level skills Improve research and innovation Support all other outcomes including rural development

Equity expanded  Class  Race  Gender  Age  Disability  HIV / AIDS To measure impact – a baseline must be set sectorally and nationally.

Code of Decent Conduct Sectors, in partnership with others, need to find ways whereby ‘codes of decent conduct’ can be advanced across the board. Let’s get rid of the tarnished brush forever!

Pivotal programmes and Grants Required qualificationRequired for practice PROFESSIONAL BODY CO-OPERATIVE LEARNING DIPLOMA MODEL Work Int. Learning APPRENTICESHIP Structured workplace-based learning Occupational theory INTERNSHIP General institution- based qualification Workplace learning – access with educ. Qual. level e.g. matric Professional Para-professional Trade / trade equiv. General to occupation

WSP and PIVOTAL Grants to build partnerships Firms will continue to submit WSPs and Annual Training Reports and in return receive a Workplace Skills Plan grant – however, it is proposed that this grant now consist of two parts: A guaranteed 40% of levy paid PLUS An additional ‘pivotal grant’ calculated on a standard cost per learner per programmes basis (set by programme type and level) multiplied by the number of students accepted onto accredited workplace learning programmes. This component is NOT limited to the levy paid by the firm. Since the second component may well stretch the grant paid to firms beyond the historical 50%, the SETAs will have to have a degree of authority over the payment of this component (based on the availability of funds) - however, it is envisaged that this discretion will not extend to the first 10% of grant claimed. Where a firm accepts learners or graduates from a particular institution, that institution will earn a complimentary ‘grant’ from the SETA.

The new goals … and new stage DHET is new environment Alignment with MTSF / HRD Strategy Priority given to SSPs Improved alignment with formal learning (colleges have a special place) Retain emphasis on workplace focus QCTO key component of new environment for quality occupational learning

QCTO Start with SSPs Identify priority occupations AND occupational pathways Engage for qualification and curriculum design and quality assurance  ‘Theory’ to be institution linked …  ‘Conditional’ grants for work placements  Meeting soon to discuss new opportunities and transitional arrangements Build and improve on what we have … whilst continuing with delivery

From 1981 … to 2010 Enormous progress Significant milestones have been passed New opportunities have opened since 2009 Commitment to work together towards national goals for an ‘inclusive growth path’ SETAs have key roles to play Rural development a key priority … There’s plenty to be done