Progress Report on Learnership Implementation to Joint Monitoring Committee On the Improvement of Quality of Life & Status of Children, Youth & Disabled Persons 01 November 2002

Skills Development Act (Act 58 of 1998) Learnerships: A SETA may establish a learnership if – the learnership consists of a structured learning component; the learnership includes practical work experience; the learnership would lead to a qualification registered by SAQA and related to an occupation; the intended learnership is registered with the Director General in the prescribed manner. Target group for Learnerships are: People in employment 18(1) And new entrants 18(2)

Example ? Learning to drive 1.Pass your learner’s license – which means you must learn the road signs + rules of the road in theory – and be tested on your theoretical knowledge. 2.Then you drive under the supervision of a person who has already passed their test. 3.Finally you undergo a practical test on the roads and pass or fail on whether you can show you can actually drive.

WHERE ARE THE CONSTRAINTS? Learnerships not yet available in all key areas Employment places linked to areas of demand or opportunity? –Private sector / Public sector Contract complexity Issues of provision –providers with the necessary expertise to deliver the new learnerships to scale Employment services – how are we going to inform, and then guide young learners into the new programmes? Current employees – cooperation, selection and training of learners, monitoring? Funding questions – who pays for what? Exit strategy for learners at the end of learnership? System management?

SEQUENCE OF ACTIVITIES 1. Ensure required qualifications registered 2. Public providers engaged more directly 3. Create contract intermediaries 4. Employment services strategy devised 5. Shared and agreed financial arrangements 6. Establish agreements between employers and trade unions 7. Plan exit strategies from learnerships 8. Conduct national campaign based on --  Marketing  Political leadership

Who designs learnerships? 1.SETA’s complete Sector Skills Plans 2.SETA’s identify areas where skills are scarce or where new skills are needed. 3.Apply to SAQA to establish a standards generating body 4.Define the purpose of the qualification & develop the standards 5.Submit qualifications to SAQA for registration on the NQF 6.Develop the Learnership and submit to DoL for registration

As at Friday 25 October Learnerships where registered Information is available on Department of Labour Website –

Levels at which learnerships have been registered NQF level Percentage of registered learnerships % 14% 22% 30% 17% 11% 3% 0%

SETA’s which have registered Learnerships NAMENo. 1.FASSET 10 2.BANDSETA4 3.CHIETA (Chemical Industries)11 4.CTFL (Clothing, Textiles, Footwear and Leather42 5.CETA (Construction)4 6.DIDTETA (Defence, Trade and Industry, Foreign Affairs and Intelligence 1 7.ETDP SETA (Education and Training)10 8.ESETA (Energy)5 9.FOODBEV (Food and Beverage)34 11.HWSETA (Health and Welfare)7 12.ISETT (Information technology)7 13.INSETA (Insurance) 15

SETA’s which have registered Learnerships NAME No. 14.LGWSETA (Local Government and Water)3 15.MAPPP (Media, advertising, printing and packaging)31 17.MERSETA (Manufacturing, engineering, plastics)22 19.POSLECSETA (Police, Security, Correctional and Legal Services 4 20.PAETA (Primary Agriculture)8 22.SETASA (Secondary Agriculture)6 23.SERVICES18 25.THETA (Tourism)21 26.TETA(Transport)4 27.W&RSETA (Wholesale and Retail)5

Learnership Agreements (See page 29 of Guide for Employers Employer Provider Learner SETA registers 18(1) 18(2) 18(1) Learner = worker in firm 18(2) Learner = previously unemployed

Employment contract For 18(2) learners Allowance for Learners COLUMN 1COLUMN 2COLUMN 3COLUMN 4 Exit level of Learnership Credits already earned by learner Percentage of qualified wage to be paid as allowance Minimum allowance per week NQF 1 or %R – 24069%R NQF 30 – 12017%R – 24040%R – 36053%R NQF 40 – 12013%R – 24025%R – 36053%R – 48056%R NQF 5 to 80 – 1208%R – 24018%R – 36027%R – 48038%R %R700.00

Employment contract For 18(2) learners Terms and conditions cover: - Remuneration - Hours of work - Overtime pay - Different types of leave - Contract employment incl. Terminations - Disputes

Funding of Learnerships Firm Provider Learner allowance 1% Levy 20% - National Skills Fund 80% SETA 10% Admin 60% WSP’s 10% Discretionary Learnership Grant

Learnership Tax Incentive AT START Employer signs Learnership Agreement can deduct - 18(2) 100% of annual wage for 18(2) – max R % of annual wage for 18(1) - max R AT END / END OF PHASE can deduct - 100% of annual wage for both 18(1) + 18(2) up to max of R BACK DATED TO OCTOBER 2001 IN PLACE FOR 5 YEARS

How well have we done ? SETA’s established in March 2000 HRD Strategy strategy – target 3000 by March 2002 ACHIEVED 3203 By end September TOTAL = (2)’S = 5 000

Case Studies (1) (all the case studies are additions) Wholesale and Retail SETA – Spar Group KZN-Thekwini College Level 2 Learnership: Wholesale and Retail Generalist 24 Learners

Case Studies (2) Education, Training and Development SETA Level 4 Learnership ABET Practitioner Learnership Employer – Yingisani ABET Centre Letaba Training Provider – Project Literacy 36 Disabled ETDP Learners

Case Studies (3) Tourism, Hospitality Education and Training Authority – Enyenyezi College Level 4 Learnership: Professional Cookery Level 2 Accommodation Services 120 Learners Employers – Consortium of Bed and Breakfast establishments - KZN South Coast

Case Studies (4) Fasset: Level 7 Audit Specialism – 5000 learners Level 7 Financial Management Specialism – 300 learners Commercial and Financial Accounting: Public Practice – 150 learners Level 7 Commercial and Financial Accounting: Commerce and Industry – 5 learners Level 7 Charted Management Accountant – 4 learners Level 3 National Certificate in Business administration – 3 learners Associate Accounting Technician – 15 disabled learners – Access College as Training Provider For all learners various employers who are FASSET levy payers – from one person consulting accounting firms to large companies