POST-SCHOOL EDUCATION AND TRAINING SYSTEM PROPOSAL FOR: NATIONAL SKILLS DEVELOPMENT STRATEGY AND SECTOR EDUCATION AND TRAINING AUTHORITIES BEYOND 2016 WITHIN THE CONTEXT OF AN INTEGRATED, DIFFERENTIATED POST-SCHOOL EDUCATION AND TRAINING SYSTEM (NSLP-2015) GOVERNMENT GAZETTE, 10 November 2015 No. 39386 LEADERS IN CLOSING THE SKILLS GAP Kindly note that this presentation is a summarised representation of the contents of the Government Gazette No. 39386, it is not a presentation on the merSETA position with regards to the proposed SETA Landscape

STRATEGIC FOCUS The NSLP 2015 gives effect to the intentions of the 'White Paper for Post-School Education and Training: Building an Expanded, Effective and Integrated Post-School System' (WP-PSET) The NLSP 2015 aims to: Better serve the national priorities of government by prioritising skills development of occupations in demand. Striking a balance between sectoral priorities and national priorities. Strengthen the role of government departments on SETA Boards. Address efficiency and effectiveness of the SETAs. Support the National Development Plan (NDP), National Growth Plan (NGP), Industrial Policy Action Plan (IPAP). LEADERS IN CLOSING THE SKILLS GAP

serves the needs of the Nation THE NSLP 2015 NSLP VISION: Integrated and Differentiated Post School Education and Training (PSET) System to give effect to the White Paper which emphasises an Expanded, Effective, Integrated System that serves the needs of the Nation To this end Government has realised that integration of the skills development institutional landscape requires improved coordination of skills levies to support efforts in getting people ready for the world of work thus significant shifts required for: intermediary institutions who liaise between the PSET System and the world of work and the skills levy distribution system. LEADERS IN CLOSING THE SKILLS GAP

THE NSLP 2015 Overarching proposals recommend that: SETAs have a more focused mandate to improve their understanding of skills needs and supply of required skills. The skills levy distribution model be revised from a sector-specific funding model to a centralised cross-sectoral funding model. The NSF manages the cross-sectoral funding needs to ensure better coordination of the skills levy. NSDS IV be occupations-based. The language of 'occupations' becomes the accepted terminology for workplaces and learning institutions. DHET coordinates the skills planning process. The NSA’s capacity, and monitoring and evaluation roles be strengthened. Government departments be strengthened to enhance the integration of sectoral strategies. LEADERS IN CLOSING THE SKILLS GAP

PROPOSALS REGARDING SETAs: Better integration of the SETAs into the post-school education and training system. SETAS to be located as specialised service delivery units within the DHET. SETAS to be renamed Sector Education and Training Advisory Boards (SETABs). To improve their stability and ensure long-term sustainability, the SETABs are to become permanent structures (as opposed to the current 5-year SETA terms). LEADERS IN CLOSING THE SKILLS GAP

MODELS CONSIDERED (a) Option 1: Minimal change Does not address the problems. (b) Option 2: Cluster SETAs Six “mega-SETAs”, efficient BUT disruptive and skills not integrated into Post-School Education and Training (PSET) system; still a “silo” system. (c) Option 3: A National Skills Council One Council for skills, functions to be performed by other bodies; still a “silo” system. (d) Option 4: SETAs as an integral part of the larger PSET system LEADERS IN CLOSING THE SKILLS GAP

Option 1: Minimal Change Minimal change is not considered to be a viable option. LEADERS IN CLOSING THE SKILLS GAP

Option 2: Cluster SETAs Strengths Sharing of research and resources, collaboration in relation to skills training along supply chains; making effective use of offices located in TVET colleges; the development of common approaches to qualifications and programmes that cut across different SETA sectors. Weaknesses Mergers of institutions lead to major interruptions. Creates more layers between beneficiaries and service provision which may slow service delivery. Fails to address how the 'clusters' could be coordinated nationally. LEADERS IN CLOSING THE SKILLS GAP

Option 3: A National Skills Council Strengths The creation of a body that can provide coordinated and centralised guidance for implementing skills development legislation would ensure: more standardisation of service delivery; more clarity in the allocation of resources; more accountability to ensure that the resources are used optimally. Weaknesses It does not clearly articulate how such a National Skills Council would interact with the remainder of the PSET system. LEADERS IN CLOSING THE SKILLS GAP

Option 4: SETAs as an integral part of the larger PSET system Strengths Bring alignment between the work of the skills system and the education and training provider system by means of a single, integrated Ministerial Policy Statement. Proposes the introduction of a 'shared services' system to address the effectiveness and efficiency challenges and to bring into alignment the criteria, application and disbursement systems of the levy funds. Weaknesses The elevation of the role of government as opposed to the role of social partners in the governance of the system. LEADERS IN CLOSING THE SKILLS GAP

OPTION 4: SETA LANDSCAPE PROPOSED SETAs as intermediaries: They must stand between the labour market and the public provider education and training system to facilitate communication and collaboration Sector Education and Training Authorities (SETAs) will become Sector Education and Training Advisory Boards (SETABs) Build shared service model and streamline functioning of grant payments. SETABs be established as permanent structures. Build Skills Planning Unit centrally. SETAB scope and boards remain the same in general, but stronger role for government departments especially for Sector Skills Plans. Government departments prepare training plans in line with methodologies and templates set nationally. National Skills Authority will monitor SETABs.

OPTION 4: ROLES OF SETABs IN NSDS 4 The primary roles of SETAs post-2016 will be to: Determine the skill needs of employers by occupation using the OFO in their sector, report to Occupational Teams under DHET for cross-sectoral consolidation and analysis (DHET will consolidate across sectors, generate national scarce skills list and inform providers). Support the development of institutions to meet these needs (from qualification design to qualification delivery). Secure workplace-based learning opportunities for learners. Support institutional and workplace-based learning of the current workforce. LEADERS IN CLOSING THE SKILLS GAP

THE COMPOSITION OF SETAB BOARDS The broad architecture of the new SETAB Boards will remain unchanged, with one important exception: No fewer than one senior government official (at the level of Chief Director or above) must be represented on each SETAB Board, drawn from sectorally relevant departments. The government representatives will have a veto right in relation to the adoption of the sectoral brief to be submitted to the DHET to ensure that the strategic priorities are addressed therein, provided that their respective Directors-General formally mandate such a veto. LEADERS IN CLOSING THE SKILLS GAP

SETAB CLUSTER MANAGEMENT IN DHET The Chief Director responsible for SETA Coordination be supported by five new Directors. The Director for each cluster should have at least ten years working experience in one or more of the sectors to be served and should enjoy respect at CEO level of key firms and departments. They should also be willing to undergo intensive training in all the roles and functions to be performed. LEADERS IN CLOSING THE SKILLS GAP

SKILLS DEVELOPMENT LEVY (SDL) AND NATIONAL SKILLS FUND (NSF) The following proposal is put forward with regards to the SDL c That 39,6% of the current SETA Discretionary Grant (8O% of 49,5% of the total levy) be allocated to the NSF for Professional, Vocational, Technical and Academic learning ( PIVOTAL Grant). SETABs apply for discretionary funding from the NSF (9.9% of total levy) to address Sector Priorities that support and are aligned with National priorities as well as those interventions to be funded by SETAs through their Mandatory Grant (20% of total levy) for Workplace Skills Plan Projects. The NSF allocates funds to the Quality Council for Trades and Occupations (0.5% of total levy) through an application process that is aligned with the development of qualifications that are scarce and critical. LEADERS IN CLOSING THE SKILLS GAP

SKILLS DEVELOPMENT LEVY DISTRIBUTION MODEL ON A LEVY AMOUNT OF R 100 SETAB’s

SETAB ROLE REGARDING GRANT ALLOCATIONS SETABs will manage the following grant funding: Administration budget – although a portion of this will support the shared services unit. ‘Mandatory’ grant (to become known as Workplace Skills Planning Grant) (20%). Sectoral component of Discretionary Grant (currently 20%) to become known as Sector Specific Grant to be used for sector-specific initiatives. Projects funded from the National Skills Fund (applications from SETABs, supported by Boards, will need to be managed). LEADERS IN CLOSING THE SKILLS GAP

National Structural Implications The Human Resource Development Council of South Africa (HRDC). DHET will submit a draft NSDS IV to the HRDC for input. The National Skills Authority (NSA), an expert body with high level monitoring and evaluation skills. There will be a close relationship between the NSA and the DHET Skills Branch with regard to the monitoring and evaluation of SETAB performance. There will also need to be role clarification between the NSA and DHET's Skills Planning Unit. The NSA should oversee the establishment and running of a dedicated training unit whose primary task is the training of government officials. The NSA should report directly to the Minister of Higher Education and Training. LEADERS IN CLOSING THE SKILLS GAP

National Structural Implications The Department of Higher Education and Training Skills Planning The SETAB Cluster co-ordinators, under the authority of the Skills Branch will have a strong relationship with the Skills Planning Unit within the Skills Development Branch Structures. Shared Services Established in the DHET Skills Development Branch to manage a range of standardised systems and procedures for the SETABs; and collaborates with the NSF for on-line application and disbursement procedures to businesses and institutions. LEADERS IN CLOSING THE SKILLS GAP

National Structural Implications The Department of Higher Education and Training Occupational Teams DHET to formally establish Intermediate Bodies under the Skills Planning Unit and that they be charged with the responsibility of establishing and managing national occupational teams for each of the occupations identified as being in high demand or scarce. SETAB Cluster Management To promote closer collaboration between SETABS, it is proposed that the Chief Director in charge of SETAB Coordination be supported by 5 Cluster Directors. Clusters to be formed as follows: LEADERS IN CLOSING THE SKILLS GAP

CLUSTERS TO BE FORMED AS FOLLOWS

STRUCTURAL IMPLICATIONS OF POLICY