PRESENTATION TO PRESENTATION TO PORTFOLIO COMMITTEE PORTFOLIO COMMITTEE ON LABOUR ON LABOUR Dr. K.P. Govender Dr. K.P. Govender Chief Executive Officer Chief Executive Officer 14 October 2005 14 October 2005 “ “ BRIDGING THE SKILLS GAP” BRIDGING THE SKILLS GAP” Ref: 11/HWSETA/01/04/05
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PRESENTATION TO PORTFOLIO COMMITTEE ON LABOUR Dr. K.P. Govender Chief Executive Officer 14 October 2005 “BRIDGING THE SKILLS GAP” Ref: 11/HWSETA/01/04/05.
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PRESENTATION TO PRESENTATION TO PORTFOLIO COMMITTEE ON PORTFOLIO COMMITTEE ON
LABOURLABOUR
Dr. K.P. GovenderDr. K.P. GovenderChief Executive OfficerChief Executive Officer
14 October 200514 October 2005
““BRIDGING THE SKILLS GAP”BRIDGING THE SKILLS GAP”
Ref: 11/HWSETA/01/04/05
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IntroductionIntroduction
The HWSETA is a national statutory body. The HWSETA is a national statutory body. Established in 2000 under the provision of the Established in 2000 under the provision of the
Skills Development Act (1998). Skills Development Act (1998). Classified as a Schedule 3A public entity of Classified as a Schedule 3A public entity of
the Public Finance Management Act (2000).the Public Finance Management Act (2000).
Ref: 11/HWSETA/01/04/05
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Introduction cont.Introduction cont.
Governance framework of the HWSETA:Governance framework of the HWSETA:Clarified in the Constitution of the HWSETA. Clarified in the Constitution of the HWSETA. The Minister of Labour via the Department of The Minister of Labour via the Department of Labour is the Executive Authority.Labour is the Executive Authority.The Board is accountable to the Minister of Labour.The Board is accountable to the Minister of Labour.
Ref: 11/HWSETA/01/04/05
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Introduction cont.Introduction cont.
The HWSETA Board appoints:The HWSETA Board appoints:The HWSETA Chief Executive Officer (CEO) The HWSETA Chief Executive Officer (CEO)
to serve as the Accounting Officer. to serve as the Accounting Officer. The CEO is accountable to the Board.The CEO is accountable to the Board.
Ref: 11/HWSETA/01/04/05
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Introduction cont.Introduction cont.
Governance Principles:Governance Principles:The King Report (I and II) on good governance.The King Report (I and II) on good governance.In addition other key framing and guiding documents In addition other key framing and guiding documents
such as legislation and regulations, policies, code of such as legislation and regulations, policies, code of good conduct, and best practices approaches. good conduct, and best practices approaches.
Members of the HWSETA Board are both Members of the HWSETA Board are both individually and severally liable for all matters individually and severally liable for all matters pertaining to the HWSETA.pertaining to the HWSETA.
Ref: 11/HWSETA/01/04/05
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VisionVision
The creation of a skilled workforce to meet the The creation of a skilled workforce to meet the health and social development needs of all health and social development needs of all people in South Africa.people in South Africa.
Ref: 11/HWSETA/01/04/05
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MissionMission
The Health and Welfare Sector Education and The Health and Welfare Sector Education and Training Authority endeavours to create and Training Authority endeavours to create and implement an integrated approach for the implement an integrated approach for the development and provision of an appropriate development and provision of an appropriate skilled workforce that will be empowered to skilled workforce that will be empowered to render quality health and social development render quality health and social development services that are comparable to world-class services that are comparable to world-class standards.standards.
Ref: 11/HWSETA/01/04/05
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PhilosophyPhilosophy
The HWSETA espouses the philosophy of a The HWSETA espouses the philosophy of a better life for all through people development.better life for all through people development.
Ref: 11/HWSETA/01/04/05
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ValuesValues To be transparent, fair and consistent in our conduct.To be transparent, fair and consistent in our conduct. To conduct ourselves with honesty, integrity and trust.To conduct ourselves with honesty, integrity and trust. To be courteous and caring to others.To be courteous and caring to others. To honour deadlines.To honour deadlines. To commit ourselves to the principle of equity.To commit ourselves to the principle of equity. To work within a framework of co-operative governance.To work within a framework of co-operative governance. To strive for continuous service excellence.To strive for continuous service excellence. To promote people-centered development.To promote people-centered development. To uphold the values as espoused in the Skills To uphold the values as espoused in the Skills
Development Act and HWSETA Constitution.Development Act and HWSETA Constitution.
Ref: 11/HWSETA/01/04/05
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Sector ProfileSector ProfileDepartment of Labour
Health and Welfare Sector Education and Training
Authority
Social Development
Health
PrivatePublic Public Private
TrainingProviders
Learners Learners TrainingProviders
Employers Employers
Ref: 11/HWSETA/01/04/05
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Sector Profile cont.Sector Profile cont. Primary data related to the sector profile of the health and welfare sector Primary data related to the sector profile of the health and welfare sector
remains undefined.remains undefined. The health and welfare sector falls under the Standard Industrial Code (SIC) The health and welfare sector falls under the Standard Industrial Code (SIC)
category 93.category 93. Public and private health and social development sectors.Public and private health and social development sectors. Levy-exempt sector: NPOs, community-based organisations (CBOs) and Levy-exempt sector: NPOs, community-based organisations (CBOs) and
faith-based organisations (FBOs) in the health and social development faith-based organisations (FBOs) in the health and social development sector.sector.
SMME private health and social development and social services sectors.SMME private health and social development and social services sectors. Manufacturers of medical and surgical equipment and appliances.Manufacturers of medical and surgical equipment and appliances. Veterinary sectors.Veterinary sectors. Traditional healing.Traditional healing. Research and development.Research and development.
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Sector Profile cont.Sector Profile cont.
The health and welfare sector remains the second The health and welfare sector remains the second highest employment in the industry – providing highest employment in the industry – providing employment for approx. 3 million people.employment for approx. 3 million people.
Number of employers by number of size:Number of employers by number of size: No. of small business in the sector is:No. of small business in the sector is: 39003900 No. of employers between 50 – 149:No. of employers between 50 – 149: 185185 No of employers over 150:No of employers over 150: 8787
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Scarce and Critical Skills (work in Scarce and Critical Skills (work in progress)progress)
Welfare Support Workers & Social WelfareWelfare Support Workers & Social Welfare Probationary Officers.Probationary Officers. Social Security.Social Security. Child and Youth Worker.Child and Youth Worker. Social Worker.Social Worker. Social Auxiliary Worker.Social Auxiliary Worker. Community Worker.Community Worker. Social Policy Studies.Social Policy Studies. Early Childhood Development.Early Childhood Development.
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Scarce and Critical Skills cont.Scarce and Critical Skills cont.
Health WorkersHealth Workers Disability Service Officer.Disability Service Officer. Paramedics / AmbulanceParamedics / Ambulance
Pharmaceuticals:Pharmaceuticals: Pharmacists Assistant (Basic and Post Basic)Pharmacists Assistant (Basic and Post Basic)
Optical Laboratory Assistant.Optical Laboratory Assistant. Health Promotion Officer.Health Promotion Officer.
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Scarce and Critical Skills cont.Scarce and Critical Skills cont. Radiography:Radiography:
Scarce and Critical Skills cont.Scarce and Critical Skills cont. NursingNursing
Auxiliary.Auxiliary. Enrolled.Enrolled. Bridging.Bridging. Primary Health Care.Primary Health Care. Nursing Specialistion e.g. ICU Theatre.Nursing Specialistion e.g. ICU Theatre. Midwifery.Midwifery.
Indicator 1.1 – By March 2005, 70% of workers have at Indicator 1.1 – By March 2005, 70% of workers have at least a Level 1 qualification on the NQF.least a Level 1 qualification on the NQF. No. of workers in the sector.No. of workers in the sector. 322,358322,358 No. of workers at NQF 1 in the sector.No. of workers at NQF 1 in the sector. 302,358302,358 Total no. of workers to be at NQF 1 by March 2005.Total no. of workers to be at NQF 1 by March 2005. 225,651225,651 No. of workers in the sector at NQF 1 by 31 No. of workers in the sector at NQF 1 by 31
March 2005.March 2005. 409,486409,486 Target achieved.Target achieved. 181%181%
Indicator 1.2 – By March 2005, a minimum of 15% of workers to Indicator 1.2 – By March 2005, a minimum of 15% of workers to have embarked on a structured learning programme (no. of have embarked on a structured learning programme (no. of interventions), of whom at least 50% have completed their interventions), of whom at least 50% have completed their programme satisfactorily.programme satisfactorily. No. of workers in the sector.No. of workers in the sector. 322,358322,358 No. of workers to embark on structured learning No. of workers to embark on structured learning
annually.annually. 48,35448,354 No. of workers participated on structured learning in the No. of workers participated on structured learning in the
sector by 31 March 2005.sector by 31 March 2005. 367,559367,559 % of target achieved.% of target achieved. 152%152%
Indicator 1.3 – By March 2005, an average of 20 Indicator 1.3 – By March 2005, an average of 20 enterprises per sector, (to include large, medium and enterprises per sector, (to include large, medium and small enterprises), and at least five national small enterprises), and at least five national government departments, to be committed to, or have government departments, to be committed to, or have achieved, an agreed national standard for enterprise-achieved, an agreed national standard for enterprise-based people development.based people development. Total no. of enterprises agreed to achieve the national Total no. of enterprises agreed to achieve the national
standard.standard. 2020 No. of enterprises committed / recognised to national No. of enterprises committed / recognised to national
standard by 31 March 2005.standard by 31 March 2005. 3737 % of target achieved.% of target achieved.
Indicator 2.1 – By March 2005, at least 75% of enterprises with Indicator 2.1 – By March 2005, at least 75% of enterprises with more than 150 workers are receiving skills development grants more than 150 workers are receiving skills development grants and the contributions towards productivity and employee and the contributions towards productivity and employee benefits are measures.benefits are measures. No. of enterprises paying levy.No. of enterprises paying levy. 8787 No. of enterprises paying levy receiving WSP grants.No. of enterprises paying levy receiving WSP grants. 7373 % of target achieved.% of target achieved.
84%84% No. of enterprises paying levy receiving ATR grants.No. of enterprises paying levy receiving ATR grants. 4040 % of target achieved.% of target achieved.
Indicator 2.2 – By March 2005, at least 40% of enterprises Indicator 2.2 – By March 2005, at least 40% of enterprises employing between 50 and 150 workers are receiving skills employing between 50 and 150 workers are receiving skills development grants and the contribution towards productivity and development grants and the contribution towards productivity and employer and employee benefits are measured.employer and employee benefits are measured. No. of enterprises paying levy.No. of enterprises paying levy. 185185 No. of enterprises paying levy receiving WSP grants.No. of enterprises paying levy receiving WSP grants. 6666 % of target achieved.% of target achieved. 36%36% No. of enterprises paying levy receiving ATR grants.No. of enterprises paying levy receiving ATR grants. 4040 % of target achieved.% of target achieved. 22%22%
Indicator 2.3 – By March 2005, learnerships are Indicator 2.3 – By March 2005, learnerships are available to workers in every sector.available to workers in every sector. No. of learnerships to be registered.No. of learnerships to be registered. 1616 No. of learnerships registered.No. of learnerships registered. 2020 % of target achieved.% of target achieved.
Indicator 2.4 – By March 2005, all government Indicator 2.4 – By March 2005, all government departments assess and report on budgeted departments assess and report on budgeted expenditure for skills development relevant to Public expenditure for skills development relevant to Public Service Sector and Departmental priorities.Service Sector and Departmental priorities. No. of Government Departments have submitted No. of Government Departments have submitted
WSPs.WSPs. 55 No. of Government Departments that have No. of Government Departments that have
submitted WSPs.submitted WSPs. 1515
% of target achieved.% of target achieved. 300%300%
Indicator 3.1 – By March 2005, 20% of new or existing registered Indicator 3.1 – By March 2005, 20% of new or existing registered small business to be supported in skills development initiatives small business to be supported in skills development initiatives and the impact of such measured.and the impact of such measured. No. of small business in the sector.No. of small business in the sector. 3,9003,900 No. of small businesses to receive WSP grants and No. of small businesses to receive WSP grants and
support.support. 780780 No. of small businesses receiving WSP grants and No. of small businesses receiving WSP grants and
support.support. 2,7592,759 % of target achieved.% of target achieved. 354%354%
Indicator 5.1 – By March 2005, a minimum of 80,000 Indicator 5.1 – By March 2005, a minimum of 80,000 (unemployed) people under the age of 30 (amended to (unemployed) people under the age of 30 (amended to 35 in GDS) have entered learnerships.35 in GDS) have entered learnerships. Sector baseline.Sector baseline. 322,358322,358 Total no. of 18(2) learners to be registered.Total no. of 18(2) learners to be registered. 3,1003,100 Total no. of 18(2) learners registered.Total no. of 18(2) learners registered. 7,9887,988 % of target achieved.% of target achieved. 258%258%
SDL Income SDL Income R 133,633mR 133,633m Total Investment Income Total Investment Income R 11,134mR 11,134m Total revenue Total revenue R 145,410mR 145,410m Total expenses Total expenses R 91,365mR 91,365m Expenses as percent of SDL Expenses as percent of SDL 62,8%62,8% Net surplus Net surplus R 54,045mR 54,045m Total Cash & Cash equivalents Total Cash & Cash equivalents R 224,142mR 224,142m
Ref: 11/HWSETA/01/04/05
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Annual Financials & Audit ResultsAnnual Financials & Audit Results As evidenced in the Annual Report the report of the As evidenced in the Annual Report the report of the
Auditor-General is unqualified and contains no matters of Auditor-General is unqualified and contains no matters of emphasis nor significant matters. emphasis nor significant matters.
Ref: 11/HWSETA/01/04/05
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Committed Funds and Projects cont.Committed Funds and Projects cont. Of the balance of R143,941m available in the Discretionary Of the balance of R143,941m available in the Discretionary
Reserve at the end of March 2005, R128,676m has been Reserve at the end of March 2005, R128,676m has been approved and allocated for future projects and skills approved and allocated for future projects and skills priorities as set out below:priorities as set out below: LearnershipsLearnerships R 98,997mR 98,997m Sector Skills PrioritiesSector Skills Priorities R 13,939mR 13,939m Standards Generating BodiesStandards Generating Bodies R 740,000R 740,000 BursariesBursaries R 15,000mR 15,000m TOTALTOTAL R128,676mR128,676m
Ref: 11/HWSETA/01/04/05
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Key Challenges for 2005 - 2010Key Challenges for 2005 - 2010 Legal challenges need to be reduced.Legal challenges need to be reduced. Spread of the discretionary funding allocation and to ensure that this Spread of the discretionary funding allocation and to ensure that this
is distributed equitably within reason.is distributed equitably within reason. Ensure that there is a balance and considered approach in funding a Ensure that there is a balance and considered approach in funding a
diverse group of sectoral stakeholders.diverse group of sectoral stakeholders. Design a track record of graduates on learnership programmes Design a track record of graduates on learnership programmes
through a formal evaluation process to find out the extent to which through a formal evaluation process to find out the extent to which they have become employed or self-employed.they have become employed or self-employed.
Expanding the skills development agenda for the sector caught in the Expanding the skills development agenda for the sector caught in the “second-economy” and to focus on how the HWSETA can make “second-economy” and to focus on how the HWSETA can make further contributions towards poverty alleviation and socio-economic further contributions towards poverty alleviation and socio-economic improvement through the skills development agenda.improvement through the skills development agenda.
Ref: 11/HWSETA/01/04/05
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Key Challenges for 2005 – 2010 cont.Key Challenges for 2005 – 2010 cont. Implementation of the new National Skills Development Strategy Implementation of the new National Skills Development Strategy
especially capacity and financial constraints.especially capacity and financial constraints. Implementation of the Quality Management System for the HWSETA.Implementation of the Quality Management System for the HWSETA. New legislation required that employers who have an annual payroll New legislation required that employers who have an annual payroll
of less that R500,000, no longer have to make Skills Development of less that R500,000, no longer have to make Skills Development Levy Contributions. However, these employers must still be Levy Contributions. However, these employers must still be encouraging to participate in Skills Development and must be encouraging to participate in Skills Development and must be accommodated from a reduced financial base.accommodated from a reduced financial base.
Participation by stakeholders in the Northern Cape, North West, Participation by stakeholders in the Northern Cape, North West, Mpumalanga and Free State in education and training activities still Mpumalanga and Free State in education and training activities still poses a big challenge.poses a big challenge.
The perceived complexity and inaccessibility of the provider The perceived complexity and inaccessibility of the provider accreditation criteria and process.accreditation criteria and process.
Ref: 11/HWSETA/01/04/05
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Key Challenges for 2005 – 2010 cont.Key Challenges for 2005 – 2010 cont. Community based organisations whose Community based organisations whose
involvement is motivated mainly by the social involvement is motivated mainly by the social development challenges arising from the development challenges arising from the communities they serve, which makes it difficult for communities they serve, which makes it difficult for them to meet most of the accreditation them to meet most of the accreditation requirements.requirements.
Monitoring of HWSETA constituent providers’ Monitoring of HWSETA constituent providers’ education and training activities poses an enormous education and training activities poses an enormous challenge. This led to the need to outsource this challenge. This led to the need to outsource this function as an interim function.function as an interim function.