Responses of NSDS I & II How far in reaching the targets Vision of the future NSDSIII

Responses of NSDS I & IIHow far in reaching the targetsVision 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. 1998 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%) 2000 25 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 grants 30% (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 I NSDS 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

700 000 have ABET 4Small companies: 20% supported and impact measured

Sustainable livelihoods (NSF): allocated and impact measured

Sustainable livelihoods (NSF) 450 000 trained and 70% placed. 2000 non-levy payers assisted, help measured. 100 000 unemployed get ABET

Targets nationally set … divided on the basis of % levy received

NSDS I NSDS II

Help new entrants: 80 000 have entered learnerships, 50% placed

Unemployed: 125 000 enter and 50% successfully complete learnerships etc

FET & HET students: All in critical areas helped to get work experience, 70% find placement

Young people: 10 000 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 6 306 557 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 95 503 small firms supported with skills development 109 647 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: 81 282 entered and 2% completed Learnerships etc:

in 2005/6 70 362 entered and 29 863 completed In 2006/7 57 577 entered and 21 423 completed

118 153 unemployed people trained (NSF) FET and HET get work experience:

8 695 (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

2008/9

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

Vision A skilled and capable workforce to support an inclusive growth path

Funding Levers

SETA NSF

Code for decent conduct SETA discretionary grants

NSF ‘catalytic grants’Equity Address 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 occupations Pivotal grant (plus discretionary grants)

NSF ‘catalytic grants’

4.3 Short courses for the employed WSP grant & discretionary grants

NSF ‘catalytic grants’

4.4 Short courses for the unemployed SETA 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 governmentOutcome 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 qualification Required 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 Grantsto 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