Presentation to Labour Portfolio Committee Maphefo Matlala, CEO 16 September 2009, Cape Town Maphefo Matlala, CEO 16 September 2009, Cape Town Labour

Presentation Outline 1. TETA Overview - Vision & Mission - Vision & Mission - Organizational Structure - Organizational Structure - Mandate - Mandate 2. Background 3. P erformance against SLA 4. Financial performance 5. Major skills development initiatives 6. Training Lay-off Scheme 1. TETA Overview - Vision & Mission - Vision & Mission - Organizational Structure - Organizational Structure - Mandate - Mandate 2. Background 3. P erformance against SLA 4. Financial performance 5. Major skills development initiatives 6. Training Lay-off Scheme Labour

TETA Overview TETA Overview Skills for sustainable growth, development and equity in the transport sector Facilitate a framework of learning through a delivery system that enhances the level of skills in the Transport Sector To provide the best quality service and maximise value for all stakeholders Vision Vision: Mission:Mission: Driving Force : Labour

TETA Overview TETA Overview Established by the Skills Development Act Promotes education, training and development in the transport sector Eight chambers: - Maritime - Road Passenger - Road Freight - Taxi - Rail - Aerospace - Freight Handling - Forwarding & Clearing Established by the Skills Development Act Promotes education, training and development in the transport sector Eight chambers: - Maritime - Road Passenger - Road Freight - Taxi - Rail - Aerospace - Freight Handling - Forwarding & Clearing Labour

Representation in Provinces Representation in Provinces Direct Representation: Direct Representation: - Gauteng- Head Office - Gauteng- Head Office - Durban – Provincial Office - Durban – Provincial Office - Cape Town - Provincial Office - Cape Town - Provincial Office Indirect Representation: Remaining six provinces Indirect Representation: Remaining six provinces - Participation in DoL Provincial SDF Fora - Participation in DoL Provincial SDF Fora - Participation in PGDS/DGDS (Premier offices) - Participation in PGDS/DGDS (Premier offices) - All Skills Development Structures - All Skills Development Structures Direct Representation: Direct Representation: - Gauteng- Head Office - Gauteng- Head Office - Durban – Provincial Office - Durban – Provincial Office - Cape Town - Provincial Office - Cape Town - Provincial Office Indirect Representation: Remaining six provinces Indirect Representation: Remaining six provinces - Participation in DoL Provincial SDF Fora - Participation in DoL Provincial SDF Fora - Participation in PGDS/DGDS (Premier offices) - Participation in PGDS/DGDS (Premier offices) - All Skills Development Structures - All Skills Development Structures Labour

TETA ‘s Mandate: NSDS 2 TETA ‘s Mandate: NSDS 2 Develop and implement the sector skills plan (Critical and Scarce Skills) Develop and implement the sector skills plan (Critical and Scarce Skills) Facilitate high Quality Education and Training Delivery in the Workplace Facilitate high Quality Education and Training Delivery in the Workplace Approve Workplace Skills Plans (WSP) and Annual Training Plans (ATR) annually Approve Workplace Skills Plans (WSP) and Annual Training Plans (ATR) annually Disburse levies (mandatory and discretionary grants) in the Transport Sector Disburse levies (mandatory and discretionary grants) in the Transport Sector Monitor Education, Training and Development (ETD) activities Monitor Education, Training and Development (ETD) activities Assure quality of education and training programmes Assure quality of education and training programmes Inform standards generation and qualifications registration Inform standards generation and qualifications registration Benchmark against International Standards Benchmark against International Standards Develop and implement the sector skills plan (Critical and Scarce Skills) Develop and implement the sector skills plan (Critical and Scarce Skills) Facilitate high Quality Education and Training Delivery in the Workplace Facilitate high Quality Education and Training Delivery in the Workplace Approve Workplace Skills Plans (WSP) and Annual Training Plans (ATR) annually Approve Workplace Skills Plans (WSP) and Annual Training Plans (ATR) annually Disburse levies (mandatory and discretionary grants) in the Transport Sector Disburse levies (mandatory and discretionary grants) in the Transport Sector Monitor Education, Training and Development (ETD) activities Monitor Education, Training and Development (ETD) activities Assure quality of education and training programmes Assure quality of education and training programmes Inform standards generation and qualifications registration Inform standards generation and qualifications registration Benchmark against International Standards Benchmark against International Standards Labour

TETA ‘s Mandate:NSDS 2 TETA ‘s Mandate:NSDS 2 Prioritise and Communicate critical & scarce skills for sustainable growth, development and equity Promote and Accelerate quality training for all in the Workplace Promote employability and sustainable livelihoods through Skills Development Assist designated groups, including new entrants to participate in Accredited Work, Integrated Learning and Work-Based programmes to acquire Skills to enter the Labour Market and Self- Employment Improve the Quality and Relevance of Provision Prioritise and Communicate critical & scarce skills for sustainable growth, development and equity Promote and Accelerate quality training for all in the Workplace Promote employability and sustainable livelihoods through Skills Development Assist designated groups, including new entrants to participate in Accredited Work, Integrated Learning and Work-Based programmes to acquire Skills to enter the Labour Market and Self- Employment Improve the Quality and Relevance of Provision Labour

Background: 2006/2007 Background: 2006/2007 Organisation went through turbulent times during the 2006/07 financial year Organisation went through turbulent times during the 2006/07 financial year Challenges had impact on corporate governance and performance Challenges had impact on corporate governance and performance –Investment of R200m –Disciplinary action against CEO & CFO –Under performance on SLA targets average 2.5 There were negative perceptions about the viability of organization: going concern There were negative perceptions about the viability of organization: going concern However all financial obligations were met that year and thereafter However all financial obligations were met that year and thereafter Organisation went through turbulent times during the 2006/07 financial year Organisation went through turbulent times during the 2006/07 financial year Challenges had impact on corporate governance and performance Challenges had impact on corporate governance and performance –Investment of R200m –Disciplinary action against CEO & CFO –Under performance on SLA targets average 2.5 There were negative perceptions about the viability of organization: going concern There were negative perceptions about the viability of organization: going concern However all financial obligations were met that year and thereafter However all financial obligations were met that year and thereafter Labour

Background: Status quo Background: Status quo Organization reflected, reviewed strategy and policies Organization reflected, reviewed strategy and policies - Aligned TETA investment Policy with PFMA and Treasury regulations - Aligned TETA investment Policy with PFMA and Treasury regulations - Improved internal controls - Improved internal controls - Focus on corporate governance (staff & Board) - Focus on corporate governance (staff & Board) - Streamlined business processes - Streamlined business processes Outcome & Impact : Outcome & Impact : - Stakeholder & Relationship Management - Stakeholder & Relationship Management - Website improvement & update - Website improvement & update - Realigned business strategy - Realigned business strategy - Improved performance (2008/09) - Improved performance (2008/09) - Stakeholder confidence - Stakeholder confidence Organization reflected, reviewed strategy and policies Organization reflected, reviewed strategy and policies - Aligned TETA investment Policy with PFMA and Treasury regulations - Aligned TETA investment Policy with PFMA and Treasury regulations - Improved internal controls - Improved internal controls - Focus on corporate governance (staff & Board) - Focus on corporate governance (staff & Board) - Streamlined business processes - Streamlined business processes Outcome & Impact : Outcome & Impact : - Stakeholder & Relationship Management - Stakeholder & Relationship Management - Website improvement & update - Website improvement & update - Realigned business strategy - Realigned business strategy - Improved performance (2008/09) - Improved performance (2008/09) - Stakeholder confidence - Stakeholder confidence Labour

NSDS 2 Performance Indicators NSDS 2 Performance Indicators Indicator 1.1 SSP, scarce & critical skills information dissemination  SSP has been annually updated, endorsed by all relevant stakeholders and approved by DoL  SDF and Sector Specialist trained 2006/ SDFs 2007/ SDFs 2008/ SDFs capacitated 1360 SDFs to date Information on scarce and critical skills widely disseminated to all relevant stakeholders Indicator 1.1 SSP, scarce & critical skills information dissemination  SSP has been annually updated, endorsed by all relevant stakeholders and approved by DoL  SDF and Sector Specialist trained 2006/ SDFs 2007/ SDFs 2008/ SDFs capacitated 1360 SDFs to date Information on scarce and critical skills widely disseminated to all relevant stakeholders Labour

NSDS 2 Performance Indicators (2) Indicator 2.1 (a) Mandatory grants support to Large firms:  2005/ large firms supported  2006/ large firms supported  2007/ large firms supported  2008/ large firms supported Since 2005, 730 large firms supported Indicator 2.1 (a) Mandatory grants support to Large firms:  2005/ large firms supported  2006/ large firms supported  2007/ large firms supported  2008/ large firms supported Since 2005, 730 large firms supported Labour

NSDS 2 Performance Indicators (3) NSDS 2 Performance Indicators (3) Indicator 2.1(b) Mandatory grants support to Medium firms:  2005/ medium firms  2006/ medium firms  2007/ medium firms  2008/ medium firms  Since 2005, 498 medium firms supported through Mandatory Grants Indicator 2.1(b) Mandatory grants support to Medium firms:  2005/ medium firms  2006/ medium firms  2007/ medium firms  2008/ medium firms  Since 2005, 498 medium firms supported through Mandatory Grants Labour

NSDS 2 Performance Indicators (4) NSDS 2 Performance Indicators (4) Indicator 2.2 SMME’s 2005/ SMME’s supported through Mandatory Grants and SMME voucher system 2005/ SMME’s supported through Mandatory Grants and SMME voucher system  2006/ SMME’s supported through Mandatory Grants and SMME voucher system respectively  2007/08 – 74 SMME’s supported 2007/ SMMEs supported  2008/09 – 89 Levy Paying SMMEs supported  Since SMMEs supported through Mandatory and Discretionary Grants. Indicator 2.5 BEEs  2005/ supported  2006/ BEEs supported  2007/08 – 9 BEEs supported 2007/ BEEs supported  2008/ and 5 BEEs Co-operatives supported  Since 2005, 442 BEEs supported Indicator 2.2 SMME’s 2005/ SMME’s supported through Mandatory Grants and SMME voucher system 2005/ SMME’s supported through Mandatory Grants and SMME voucher system  2006/ SMME’s supported through Mandatory Grants and SMME voucher system respectively  2007/08 – 74 SMME’s supported 2007/ SMMEs supported  2008/09 – 89 Levy Paying SMMEs supported  Since SMMEs supported through Mandatory and Discretionary Grants. Indicator 2.5 BEEs  2005/ supported  2006/ BEEs supported  2007/08 – 9 BEEs supported 2007/ BEEs supported  2008/ and 5 BEEs Co-operatives supported  Since 2005, 442 BEEs supported Labour

NSDS 2 Performance Indicators (5) NSDS 2 Performance Indicators (5) Labour

NSDS 2 Performance Indicators (6) Indicator 2.8 Support for employed learners  2005/2006– workers participated in various learning programmes including learnerships, skills programmes, apprenticeships, bursaries & internships  2006/2007– 7530 workers participated in various learning programmes including learnerships, skills programmes and apprenticeships, bursaries & internships  2007/2008– 6155 workers participated in various learning programmes including learnerships, skills programmes and apprenticeships, bursaries & internships  2008/ workers participated in various learning programmes including learnerships, skills programmes and apprenticeships, bursaries & internships Since 2005, workers participated in various learning Programmes (figure only on entered, it excludes completion) Indicator 2.8 Support for employed learners  2005/2006– workers participated in various learning programmes including learnerships, skills programmes, apprenticeships, bursaries & internships  2006/2007– 7530 workers participated in various learning programmes including learnerships, skills programmes and apprenticeships, bursaries & internships  2007/2008– 6155 workers participated in various learning programmes including learnerships, skills programmes and apprenticeships, bursaries & internships  2008/ workers participated in various learning programmes including learnerships, skills programmes and apprenticeships, bursaries & internships Since 2005, workers participated in various learning Programmes (figure only on entered, it excludes completion) Labour

NSDS 2 Performance Indicators (7) NSDS 2 Performance Indicators (7) Indicator 3.2 NLPE/NGOs/CBOs/CBCs  2005/ supported  2006/ supported  2007/ supported  2008/ supported NLPE NLPE - 21 NGOs - 21 NGOs - 2 CBOs - 2 CBOs - 1 CBC - 1 CBC Since 2005, 349 supported Since 2005, 349 supported Indicator 3.2 NLPE/NGOs/CBOs/CBCs  2005/ supported  2006/ supported  2007/ supported  2008/ supported NLPE NLPE - 21 NGOs - 21 NGOs - 2 CBOs - 2 CBOs - 1 CBC - 1 CBC Since 2005, 349 supported Since 2005, 349 supported Labour

NSDS 2 performance Indicators (8) NSDS 2 performance Indicators (8) Indicator 4.1 Support for unemployed learners  2005/ unemployed participated  2006/ participated  2007/ participated  2008/ participated and completed Since 2005, 8212 unemployed assisted through various learning programmes (learnerships, skills programmes, Apprenticeships, Bursaries & Internships) Indicator 4.1 Support for unemployed learners  2005/ unemployed participated  2006/ participated  2007/ participated  2008/ participated and completed Since 2005, 8212 unemployed assisted through various learning programmes (learnerships, skills programmes, Apprenticeships, Bursaries & Internships) Labour

NSDS 2 Performance Indicators (9) NSDS 2 Performance Indicators (9) Indicator 4.2 Workplace Experience  2005/ learners exposed to workplace experience  2006/ learners exposed to workplace experience  2007/ learners exposed to workplace experience  2008/ learners exposed to workplace experience Since 2005, 1797 learners exposed to workplace experience Indicator 4.2 Workplace Experience  2005/ learners exposed to workplace experience  2006/ learners exposed to workplace experience  2007/ learners exposed to workplace experience  2008/ learners exposed to workplace experience Since 2005, 1797 learners exposed to workplace experience Labour

NSDS 2 Performance Indicators (10) Indicator 4.3 New Venture Creation (NVC)  2005/2006- none  2006/  2007/  2008/ Since 2005, 274 young people trained & mentored to form new ventures Indicator 4.3 New Venture Creation (NVC)  2005/2006- none  2006/  2007/  2008/ Since 2005, 274 young people trained & mentored to form new ventures Labour

Performance Highlights (2008/09) Performance Highlights (2008/09) Observed an increase in WSP submission from large firms 25% and medium firms with 30%. Observed an increase in WSP submission from large firms 25% and medium firms with 30%. Supported 4 Institute of Sectoral & Occupational Excellence. Supported 4 Institute of Sectoral & Occupational Excellence. Registered increase of 114% in New Venture Creation. Registered increase of 114% in New Venture Creation. Had 640% increase in Non-levy Paying Enterprises. Had 640% increase in Non-levy Paying Enterprises. Improved Performance score in Provincial support from 3 to 4 Improved Performance score in Provincial support from 3 to 4 Improved Funds management performance from 3 to 4 Improved Funds management performance from 3 to 4 Unqualified audit opinion for two consecutive years (2007/08 – 2008/2009) Unqualified audit opinion for two consecutive years (2007/08 – 2008/2009) Consistent highest score (5) in corporate governance Consistent highest score (5) in corporate governance Observed an increase in WSP submission from large firms 25% and medium firms with 30%. Observed an increase in WSP submission from large firms 25% and medium firms with 30%. Supported 4 Institute of Sectoral & Occupational Excellence. Supported 4 Institute of Sectoral & Occupational Excellence. Registered increase of 114% in New Venture Creation. Registered increase of 114% in New Venture Creation. Had 640% increase in Non-levy Paying Enterprises. Had 640% increase in Non-levy Paying Enterprises. Improved Performance score in Provincial support from 3 to 4 Improved Performance score in Provincial support from 3 to 4 Improved Funds management performance from 3 to 4 Improved Funds management performance from 3 to 4 Unqualified audit opinion for two consecutive years (2007/08 – 2008/2009) Unqualified audit opinion for two consecutive years (2007/08 – 2008/2009) Consistent highest score (5) in corporate governance Consistent highest score (5) in corporate governance Labour

Financial Performance Total income Admin reserve Mandatory grant reserve Discretionary grant reserve Total revenue 358, ,540 41,829 41, , ,135109,576 Expenditure 262, ,624 39,375 39, , ,92578,324 Surplus/(deficit) 95,916 95,916 2,454 62,210 31,252 Expenditure as % of revenue 2008/09 73%94%70%71% Prior year comparison 2007/08 71%103%59%82% In 2007/08 TETA and 2008/09 received an unqualified audit report from the Office of the Auditor General Labour

Financial Performance Aug-09Mar-09 Cash and cash equivalents 355,396, ,396, ,981, ,981,000 Less current and non current liabilities (78,136,000) (58,472,000) (58,472,000) Less contracted discretionary grants (245,973,000) (245,973,000) Training layoff scheme project (11,800,000) (11,800,000) - Funds available for other discretionary grants 19,487,000 19,487,000 (3,464,000) (3,464,000) With 5 months TETA has been able to turn around the negative cash flow which existed as at year end Labour

Major Skills Development Initiatives- SMME’s Bus Industry Successful Implementation of SABOA SMME Bus Operator Successful Implementation of SABOA SMME Bus Operator Training Project: Training Project: –321 learners competent in the SABOA SMME / School Bus Operator Project: Gauteng: 56 learnersGauteng: 56 learners Free state: 80 learnersFree state: 80 learners Western Cape: 42 learnersWestern Cape: 42 learners Eastern Cape: 40 learnersEastern Cape: 40 learners Mpumalanga: 36 learnersMpumalanga: 36 learners Northwest Province: 23 learnersNorthwest Province: 23 learners Limpopo: 30 learnersLimpopo: 30 learners KwaZulu Natal: 14 learnersKwaZulu Natal: 14 learners Successful Implementation of SABOA SMME Bus Operator Successful Implementation of SABOA SMME Bus Operator Training Project: Training Project: –321 learners competent in the SABOA SMME / School Bus Operator Project: Gauteng: 56 learnersGauteng: 56 learners Free state: 80 learnersFree state: 80 learners Western Cape: 42 learnersWestern Cape: 42 learners Eastern Cape: 40 learnersEastern Cape: 40 learners Mpumalanga: 36 learnersMpumalanga: 36 learners Northwest Province: 23 learnersNorthwest Province: 23 learners Limpopo: 30 learnersLimpopo: 30 learners KwaZulu Natal: 14 learnersKwaZulu Natal: 14 learners Labour

Major Skills Development Initiatives- SMMEs Taxi Industry Province 2005/ / /09TotalMpumalanga Free State N/West Limpopo W/Cape E/Cape Gauteng KZN TOTAL Labour

Major Skills Development Initiatives- Collaborative Efforts Ongoing collaboration and cooperation with other government agencies & departments –R6m Taxi Training Project with DoT –Training and accreditation of Gautrain drivers in cooperation with Bombela –Training and accreditation of 2010 professional drivers –Collaboration with SEDA; SARS; CIPRO & SANWIT on SMME Development. –SABOA on Bus Driver Skills Development Ongoing collaboration and cooperation with other government agencies & departments –R6m Taxi Training Project with DoT –Training and accreditation of Gautrain drivers in cooperation with Bombela –Training and accreditation of 2010 professional drivers –Collaboration with SEDA; SARS; CIPRO & SANWIT on SMME Development. –SABOA on Bus Driver Skills Development Labour

Training Lay-off Scheme (1) Training Lay-off Scheme (1) Purpose and Objectives Purpose and Objectives –To contribute to government efforts to mitigate economic downturn impact on both employers and employees. –Assist and support companies in financial distress –Minimize job losses in transport sector –Re-skill and/or up-skill potential retrenchees Resources Resources –TETA committed budget of about R12m to support the scheme –More funding will be sought from NSF depending on uptake –Redeploy dedicated Project Manager to this project Purpose and Objectives Purpose and Objectives –To contribute to government efforts to mitigate economic downturn impact on both employers and employees. –Assist and support companies in financial distress –Minimize job losses in transport sector –Re-skill and/or up-skill potential retrenchees Resources Resources –TETA committed budget of about R12m to support the scheme –More funding will be sought from NSF depending on uptake –Redeploy dedicated Project Manager to this project Labour

Training Lay-off Scheme (2) Training Lay-off Scheme (2) Implementation Strategy & Approach Implementation Strategy & Approach –Company Requirements File a Section 189A with the CCMAFile a Section 189A with the CCMA TETA levy paying member for at least one year;TETA levy paying member for at least one year; Minimum retrenches' more than 10 staff membersMinimum retrenches' more than 10 staff members Must have a retrenchment policy in placeMust have a retrenchment policy in place Must have a negotiated retrenchment agreement in place.Must have a negotiated retrenchment agreement in place. Must have submitted a Workplace Skills Plan and Annual Training Report (where applicable) for the relevant financial year.Must have submitted a Workplace Skills Plan and Annual Training Report (where applicable) for the relevant financial year. Hinges on the collaboration and cooperation of all parties (employers, employees and facilitators)Hinges on the collaboration and cooperation of all parties (employers, employees and facilitators) Employees must be willing to participate in retraining progamEmployees must be willing to participate in retraining progam Duration of Re-training program is 6 monthsDuration of Re-training program is 6 months Stipends of R paid to learnersStipends of R paid to learners Implementation Strategy & Approach Implementation Strategy & Approach –Company Requirements File a Section 189A with the CCMAFile a Section 189A with the CCMA TETA levy paying member for at least one year;TETA levy paying member for at least one year; Minimum retrenches' more than 10 staff membersMinimum retrenches' more than 10 staff members Must have a retrenchment policy in placeMust have a retrenchment policy in place Must have a negotiated retrenchment agreement in place.Must have a negotiated retrenchment agreement in place. Must have submitted a Workplace Skills Plan and Annual Training Report (where applicable) for the relevant financial year.Must have submitted a Workplace Skills Plan and Annual Training Report (where applicable) for the relevant financial year. Hinges on the collaboration and cooperation of all parties (employers, employees and facilitators)Hinges on the collaboration and cooperation of all parties (employers, employees and facilitators) Employees must be willing to participate in retraining progamEmployees must be willing to participate in retraining progam Duration of Re-training program is 6 monthsDuration of Re-training program is 6 months Stipends of R paid to learnersStipends of R paid to learners Labour

Questions Labour