Achieve - SA's manufacturing production remains resilient - THOUGHT LEADER IN SKILLS DEVELOPMENT - MerSETA
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March 2016 ISSUE 31
ISO 9001:2008
Achieve
THOUGHT LEADER IN SKILLS DEVELOPMENT
SA’s manufacturing
production remains
resilient
TALKING NOTES | A VIEW FROM THE TOP | success stories | Features |
ISO 9001:2008
Vision
Leaders in closing the skills gap
Mission
To increase access to high quality and relevant
skills development and training opportunities
to support economic growth in order to reduce
inequalities and unemployment and to promote
employability and participation in the economy
Achieve
ISO 9001:2008
/ March 2016
Contents
Contents
Contents
on the cover: South Africa's manufacturing
production remains resilient
ACHIEVE March 2016 ISSUE 31
PAGE 9 PAGE 16 PAGE 32
NSFAS turns despair into joy SETAs to continue supporting SA investing in science to tackle
NSFAS with student funding socio-economic challenges
SETA NEWS Publisher
4 Talking notes merSETA
5 A view from the top Editor
6 Artisan desk Sibongiseni Ziinjiva
Ka-Mnguni
Success stories Proof reading
Janet Lopes
9 NSFAS turns despair into joy
11 EPWP throws Babalwa a lifeline Layout and design
Rixile Mzansi Trading
FEATURES Contributors
13 Ford invests R2.5 billion in SA and creates 1 200 jobs Helen Brown
Janet Lopes
16 SETAs to continue supporting NSFAS with student funding
19 The proposed New SETA Landscape debate: What stakeholders say
24 SA’s manufacturing production remains resilient
26 The merSETA in a new partnership to raise standards
27 AIDC, Siemens honour artisan and engineering graduates
Views and editorial opinion
expressed in the merSETA
INDUSTRY NEWS magazine are not necessarily
those of the merSETA, the
29 SA car industry: Tough times ahead but it’s still world class
publication or the publisher.
EVENTS Write to: The Editor, Achieve
magazine, PO Box 61826,
31 Africa needs to industrialise, Minister Davies tells round table
Marshalltown, 2107 or
32 SA investing in science to tackle socio-economic challenges email: achievenewsletter@
merseta.org.za
Achieve / March 2016 3
From the Editor
Talking Notes
T
he Sector Education and of economic damage that is still We also carry a story in this issue
Training Authorities (SETAs) – haunting South Africa even to this on the long-standing partnership
including the Manufacturing, day – eight years on. between the Automotive Industry
Engineering and Related Services Development Centre (AIDC) and
Education and Training Authority The country’s manufacturing leading global infrastructure and
(merSETA) – have reaffirmed their industry contracted sharply and industry solutions provider Siemens.
support for the National Student its subsequent recovery has been
Financial Aid Scheme (NSFAS) in insufficient for the volume of At a graduation ceremony in
its efforts to assist disadvantaged manufacturing production to return Johannesburg recently, the two
students gain access to tertiary to its pre-crisis level. parties celebrated the success of 70
education and critical skills. young South Africans who are ready
Preliminary manufacturing data for to enter the industry after completing
The commitment was made at December 2015 reveal that South a skills development programme.
a recent meeting between the Africa’s manufacturing production,
executives of NSFAS, representatives on average, was unchanged in 2015 The partnership started in 2008 when
of the various SETAs and officials of compared to the situation in 2014. the conglomerate recognised the
the Department of Higher Education growing need to develop a pipeline
and Training (DHET) in Midrand. Still with the manufacturing sector, of scarce and critical skills across
South Africa’s new vehicle sales in various industries. It approached
At the same time, the merSETA 2015 saw a 4.1% decline compared the AIDC to manage a bursary
held a series of consultative to the same period the previous year, programme focusing on developing
stakeholder engagements in light of according to the National Association qualified individuals for absorption in
the publication in the Government of Automobile Manufacturers of SA key sectors.
Gazette in November 2015 of the (NAAMSA).
proposed new SETA Landscape. Read more on these and other
It is against this background that stories we are carrying in the latest
Workshops were also held the outlook for domestic sales in issue of Achieve, including success
countrywide to debate the future role 2016 remains uninspiring and, at this stories and industry news.
of SETAs. stage, a decline in total new vehicle
The stakeholders called on the sales of between 3% and 5% will not Be blessed!
DHET to convene a conference to be unexpected.
deliberate on the journey the country
will embark on when the New SETA The consumer-driven new car
Landscape comes into effect in market is likely to show a decline
2018. in volumes at the upper end of the
range, with new commercial vehicle
The 2008-2009 financial crisis has, sales projected to perform better in Sibongiseni Ziinjiva Ka-Mnguni
as all catastrophes do, left a trail relative terms. smnguni@merseta.org.za.
4 Achieve / March 2016
CEO’s column
A view from
the top
T
he meetings that took place It is in this context that the that can see a financial plan for
between big business and toenadering between business and each of the universities and TVET
the government before this the government is heartening. In colleges. Through creative public-
year’s State of the Nation Address a typical South African way, private partnerships all students
signalled new hope for South Africa we saw all sides rising to the can be funded, even before we
and bode well for its future. occasion, facing the world in Davos resort to blanket free education
and then coming back home to based on limited state resources.
Many take for granted the fact continue the collaboration. While Surely, the amount of money
that the challenges facing the reading all of these as good signs, that should be spent on skills
country cannot be resolved by the investors are now waiting to see development and corporate
government alone. what comes of it. social investment in the private
sector can be properly directed to
The unexpected change of guard It is natural for the relationship ensure that not only universities but
at the National Treasury at the between capital and the also TVET colleges are sustainably
end of last year and the resultant government to be laced with funded.
dramatic plummeting of the tension but it is equally clear that
rand raised eyebrows about there is a lot of common ground With the amount of money that
the relationship between the and goals that should underpin the the private sector has not released
government and private sector. relationship. for investment, there should be no
The education and training sector reason why primary schools should
Harsh words were exchanged, is a key area in this regard. The not be equipped with top-of-
leaving a bitter taste in the mouths public sector produces the skills the the range science laboratory
of many investors. The incident also business community requires. The equipment and libraries to ensure
heightened the risk of a financial private sector, on the other hand, a well-equipped future workforce.
downgrade that we don’t need as has to hire the graduates churned
a country. out by relevant institutions. At the merSETA, we have this
year alone made millions of rands
I was not privy to the detailed available for higher education
discussions between the parties initiatives as part of our contribution
but I can imagine that education to education resourcing. We
and training must have topped the challenge all stakeholders to do
agenda. This is an obvious area something concrete to ensure
where a future reservoir of skills we don’t leave funding to the
can be built to shield us from rough government alone.
times.
We have 24 universities, 50 technical
and vocational education and
training colleges and thousands
of listed and unlisted companies.
The collaboration between these
companies and the relevant SETAs Dr Raymond Patel
can easily produce a Marshall Plan CEO, the merSETA
Achieve / March 2016 5
Artisan Desk
Teaching apprentices
for employment
beyond 2030
T
he merSETA’s competence We know the average competence production opportunities offering
diagnostic research has laid a levels achieved and how these better returns to the end user.
solid foundation to understand compare to those of our international
how qualifications, their curricula counterparts. We know from our All our occupations are vulnerable
and teaching methods perform. tracer studies that 80% to 85% of to such changes, and disruptions
our qualified candidates are taken are already being felt by the motor
The COMET Project is one of up into employment. mechanics (car mechatronics),
our research initiatives providing industrial mechatronics artisans
valuable qualitative insights into This certainly deserves recognition. and the cluster of foundry-related
the competence levels achieved However, the important question occupations.
for apprentices over the 3-4 year is whether these apprentices will
learning period. gather sufficient “capabilities” – i.e. a How deeply will 3-D printing
wider base of experience supported systems, intelligent robotics, artificial
by further learning opportunities intelligence, nano technologies and
– to successfully sustain their alternative energy systems change
employment in our sector beyond the shape of these occupations?
2030.
We cannot simply keep changing and
Industrial manufacturing is definitely updating occupational qualifications
a sector more vulnerable to the for every area of specialisation
disruptive impact of “exponential emerging as the pace of change
technologies” on production is too rapid to capture all possible
platforms and product maintenance derivatives. We need to ask ourselves
regimes. how to mitigate the risks that these
constant changes present.
Human resource and machine
efficiency can only be taken I believe the answer lies partly in how
to a certain point of delivery. we teach our future artisans.
After that technological Over three COMET test series, the
advancements in a global diagnostic system has highlighted
delivery system will the need to address the stagnation
attract growth and new of competence development evident
over the four-year learning period.
For all occupations tested –
electrician, motor mechanic,
mechatronics artisan, welder and
millwright – apprentices’ highest
Ms Helen Brown, Senior
6 Achieve / March 2016 Manager: Projects Development
Artisan Desk
Apprentices hard at work: The tracer study indicates that 80% to 85% of qualified candidates are taken up
into employment.
average score was achieved in training (TVET) colleges to effect technology (ICT), the integration
their first year of learning, with a similar initiatives in their teaching of previously separated
deterioration in average scores in methods. production functions and an
year two and three, only to recover emphasis on knowledge creation
to the original level in year four. Three elements are crucial here: within normal work activity;
∆ A work-reflected learning
This effectively means that no approach, emphasising work- ∆ A minimum educational
conceptual development is process knowledge over and requirement is also significant.
achieved beyond a certain point above theoretical knowledge The minimum educational
in the curriculum. In other words, and practical simulations i.e. requirements have been
the more complex the skilled work a combination of practical debated for some time now,
assignment, the less efficient and understanding and theoretical with TVET teachers arguing
effective the result is. While most knowledge in solving problems that their student performance
large company-based academies at work. The basis of this is and throughput increase
embrace this phenomenon with that modern workplaces are when teaching matriculants,
creative approaches, we need characterised by increased particularly in the engineering
constructive partnerships with our functional flexibility, the use of occupations; and students
technical vocational education and information and communications arguing that if they have a
Achieve / March 2016 7
Artisan Desk
matric (NQF level 4), then they the Dual System Apprenticeship of maintaining this on a seven-
should not be obligated to start Project (DSAP) have entered the subject qualification and suggested
a vocational programme at NQF final stages of their “work-reflected that the three fundamental subjects
level 2; and learning” approach. of language, mathematics and life
orientation should have already
∆ Creating a learning environment The first COMET test results proved been completed by candidates
in which students can build that participants on this programme before entering the DSAP.
a deep commitment to their already achieved higher levels of
occupation, which in turn competence than their non-DSAP This increases available time in the
motivates an “exponential counterparts. learning programme for deeper
learning approach” with an understanding and immersion
interest beyond the stated Our next COMET test on this group into the four core subjects of the
curriculum. Some features will be implemented early in the new occupation.
of this learning environment financial year and indications are that
should include e-learning, Wi- this approach of continually rotating It also poses the obvious question
Fi access and professional learners between theory, simulated as to whether the mainstream
career guidance. An emphasis practical and workplace-based NC(V) qualification should be split
on understanding not only learning addresses the stagnation of to accommodate occupations
traditional skills but also competence development problem. leading to a trade test. Some reckon
technologies that will shape that if this qualification policy was
these skills over time is also Teachers on this project have, adjusted to allow post-matric
essential. however, expressed concern around students into a four-subject block
this type of teaching becoming the release – six months’ college and
The merSETA has deliberately built norm rather than an exception. six months’ workplace rotation over
a research agenda addressing three years – then the objective
these challenges. Apprentices on They have highlighted the challenge of work-reflected learning would
be achieved within an acceptable
college provision format.
The merSETA also recognises that
professional career guidance is
another competence that needs
strengthening beyond current
practice at the TVET college level.
Suggestions from teachers I have
engaged with are that “guidance
and placement assessments”
would ensure that the right student
is placed in the right classroom,
especially those entering a learning
programme leading to a trade test.
Matching skills supply and demand
will also need to become a major
focus area so that the spread
of students across the different
vocational programmes matches
available jobs in the market.
As the merSETA prepares itself for
Professional career guidance is another competence that needs the proposed New SETA Landscape,
strengthening beyond current practice at TVET college level. these issues will remain on our radar.
8 Achieve / March 2016
Success Story
NSFAS
turns
despair
into joy
Matsapola is living her
dream, thanks to the multi-
billion rand student financial
aid scheme benefiting South
Africa’s poor
By Sibongiseni Ziinjiva Ka-Mnguni
W
hen Mathawe Matsapola of Botlokwa
in rural Limpopo passed her matric
with flying colours, the euphoria
that gripped her entire family was simply
unimaginable.
Mathawe Matsapola is one of more than 1.5
million students who have been assisted by the
National Student Financial Aid Scheme.
Achieve / March 2016 9
Success Story
‘
‘
To show my eternal gratitude, I made sure I paid back every cent
NSFAS contributed to my studies, accommodation and textbooks
study for a National Diploma in Legal
Assistance at TUT.
It was on registering for the diploma
that she heard about the National
Student Financial Aid Scheme
(NSFAS).
“I remember standing in a long queue
to submit my application for a student
loan. All I could do was to pray for
positive feedback and, as they say,
the rest is history,” she says.
Matsapola is now Entertainment
Editor at DRUM magazine and,
although she has taken a detour in
her career in favour of journalism,
she is living her dream thanks to the
head-start she received from NSFAS.
“It was a dream come true when I
was granted a student loan and I’ve
not looked back since that fateful
day,” she says.
“The NSFAS funding changed my life
for the better. It helped me realise my
dreams and I made it my mission to
Entertainment Editor at Drum magazine Mathawe Matsapola is living
pass my course in record time so I
her dream.
could help look after my family.
However, the joy was shortlived when at home – was devastated when she
it dawned on her that she might not realised she would not be able to pay “To show my eternal gratitude, I
be able to take her outstanding for my tuition at college or university. made sure I paid back every cent
academic achievements to the next It was nerve-racking but that was the NSFAS contributed to my studies,
level as her mother could just not reality we had to face,” Ms Matsapola accommodation and textbooks
send her to college or university. says. because there are still many students
who are academically deserving just
“My mother was a general worker at Determined to fulfil her dreams like I was when I desperately needed
the time and she was already highly despite her family’s poor background, to pursue my studies. They also
indebted. The banks would no longer she asked her mother for R1 500 so need financial assistance,” says Ms
give her a loan. she could register at the Tshwane Matsapola.
University of Technology (TUT).
“She had already taken loans to pay To date, more than 1.5 million
for my brother and sister’s tuition at “My mother wanted a better life for students have been assisted and
university. With the low salary she all her children, and I was not going more than R50-billion has been
was earning, she had to take care of to fail her and the family,” she says. spent by NSFAS towards assisting
six children,” says Ms Matsapola. academically deserving students to
“My mother – the only breadwinner In 2002, Ms Matsapola left home to fulfil their dreams.
10 Achieve / March 2016Success Story
EPWP throws
Babalwa a lifeline
By Sibongiseni Ziinjiva Ka-Mnguni
M
s Babalwa Kaboka is a top
academic achiever. But this
did not guarantee her a work
opportunity after she successfully
completed her N6 course at the
Northlink College in the Western Cape.
Just like thousands of other
determined and resourceful young
South African men and women, Ms
Kaboka was let down by the system.
With the scarcity of jobs reaching
alarming proportions – particularly in
the engineering and manufacturing
sector – Ms Kaboka was reduced to
twiddling her thumbs at home, with
nothing to show for her excellent
academic performance.
All the knowledge she had gained
during her successful schooling career
had seemingly gone to waste.
After matriculating at Fezeka High
School in Gugulethu in the Western
Cape, Ms Kaboka, the second child
in a family of six, intended to study
medicine but her teachers advised her
to pursue a technical career as she
had excelled in the field and always
wanted to know how things worked.
She initially applied for a bursary
to study engineering at the Cape
Peninsula University of Technology
Ms Babalwa Kaboka addresses the merSETA's
but her application was unsuccessful.
Annual General Meeting in Cape Town.
Achieve / March 2016 11Success Story
The merSETA Deputy Chairperson Xolani Tshayana, Thamsanqa Ngqula, Babalwa Kaboka and merSETA
Western Cape Client Relations Manager Bronwin Abrahams.
That was, of course, before she on trucks, construction equipment,
got to know about the Artisan marine and specialised equipment,
Development Programme run under literally anything with a starter or
a partnership between the merSETA alternator.
and the Department of Public Works’
Expanded Public Works Programme “Being a woman in a man’s world
(EPWP). isn’t always easy as one has to
work twice as hard to prove oneself
Ms Kaboka managed to get her foot and to be respected in the industry.
in the door after she was introduced Luckily, Auto Magneto is an equal
to the EPWP through an exhibition opportunity employer. Here I’m
at the college. measured on merit,” she says.
She is now one of the beneficiaries “I felt despondent when I couldn’t
of the programme and is at present find work, but with the assistance
undergoing her auto electrical of the merSETA and EPWP I was
apprenticeship at Auto Magneto fortunate to be placed at Auto
(Pty) Ltd in the Western Cape. Magneto,” says Ms Kaboka.
Determined to realise her dreams It was a complete eye-opener. As an auto electrical apprentice,
and not let the setback derail her, She was totally overwhelmed as she Ms Kaboka repairs cars, trucks
she enrolled at the Belhar campus had had no previous knowledge of and construction and specialised
of Northlink College in the Western the technical side of cars and trucks. equipment, and hopes to qualify as
Cape. She passed her course with When on the first day her mentor an artisan soon.
flying colours. But then life threw a asked her to pass the ratchet, she
curveball at her. Time also seemed had absolutely no knowledge of “I want to encourage other young
to have come to a standstill as she what he was talking about. people to persevere and never limit
could not enter the world of work. themselves. I also want to encourage
That is now water under the bridge. the business sector to train learners
She continuously tried to be placed Ms Kaboka is currently working and help tackle the socio-economic
in an electrical company to complete towards completing her trade test challenges facing the country,” she
her practical training to no avail. by the end of 2016 as she works says.
12 Achieve / March 2016Artisan
Features
Desk
Ford invests R2.5 billion in
SA and creates 1 200 jobs
By Independent Correspondent
T
he Ford Motor Company The investment will create 1 200 new specification levels – XLT and the
is to pump more than R2.5 jobs. At present, the all-new Everest range-topping Limited.
billion into the South African is imported from Thailand but is
economy to expand its Silverton, using the locally produced 3.2-litre With the commencement of local
Pretoria, plant for the production of five-cylinder Duratorq TDCi engine. production in the third quarter of
the Ford Everest and extended Ford It is only available in South Africa in 2016, a 2.2-litre Duratorq TDCi four-
Ranger derivatives. the 3.2-litre automatic guise in two cylinder diesel engine will be added
Achieve / March 2016 13Features
‘
to the range, along with a wider transmissions for exceptional
spread of specification levels.
The R2.5-billion capability.”
The first units are expected to come investment reaffirms In recent years, Africa has emerged
to the market in the fourth quarter. as an increasingly important region
the importance of
South African-produced models
will be sold locally and exported to
markets across Sub-Saharan Africa.
“Our customers love the capability
and utility offered by the all-new
‘
these markets as
part of our growth
strategy across the
Middle East and
for Ford, with continued investment
and growth.
In 2008, Ford announced plans to
build the Ford Ranger at its Silverton
plant with an investment of R3.4
billion. The investment allowed Ford
Ford Everest. By producing the
Everest in South Africa, we will be
Africa to transform both its South African
plants into world-class facilities
able to make it more readily available to produce the Ford Ranger and
and in a greater variety of models Duratorq TDCi engines for local
for customers throughout Sub- produce 10 000 Everests per year. consumption and export.
Saharan Africa,” said Jim Farley,
Ford Executive Vice-President and “The all-new Everest has been The Ford Ranger is exported to
President of Europe, Middle East extremely well received since it 148 countries in Africa, the Middle
and Africa. was launched in September last East and Europe, while engines and
year, with demand far outstripping machined components are supplied
“The R2.5-billion investment supply,” said Jeff Nemeth, President to Argentina, Thailand, North
reaffirms the importance of these and CEO of Ford Motor Company in America, India and China.
markets as part of our growth the Sub-Saharan Africa Region.
strategy across the Middle East and In 2014, Ford formed its newest
Africa. It further reinforces South “This crucial investment will enable business unit – Middle East and
Africa’s position as a strategic export us to increase volumes and expand Africa – comprising 67 markets to
base for Ford Motor Company.” the Everest range to eight derivatives support the region with a dedicated
across a broader price range. It focus and clear understanding of
The Silverton assembly plant will allow customers across Sub- the unique conditions and customer
features state-of-the-art automation Saharan Africa to choose from two needs.
using Ford’s global manufacturing powerful engines mated to robust
processes and will be equipped to six-speed automatic or manual The African growth story continued
in 2015 when Ford confirmed it
would assemble the Ford Ranger
in Nigeria, using semi knock-
down (SKD) kits and components
imported from South Africa.
14 Achieve / March 2016Features Achieve / March 2016 15
Features
SETAs to continue supporting
NSFAS with student funding
The scheme has spent R50 billion to assist more
than 1.5 million poor students over the past 17 years,
reports Sibongiseni Ziinjiva Ka-Mnguni
National Student Financial Aid Scheme Chief Executive Officer Msulwa Daca addresses the media.
16 Achieve / March 2016Features
S
ector education and training various SETAs and officials of the ∆ SETAs, because of their close
authorities (SETAs) – including Department of Higher Education and proximity to employers, must as-
the Manufacturing, Engineer- Training (DHET) in Midrand. sist NSFAS-funded students to
ing and Related Services Education access internships, work place-
and Training Authority (merSETA) The meeting also agreed that NSFAS ments and employment.
– have reaffirmed their support for must tighten its policies, improve
the National Student Financial Aid fund administration and review ad- The meetings formed part of the gov-
Scheme (NSFAS) in its efforts to as- ministrative guidelines and criteria. ernment’s resolve to channel various
sist disadvantaged students gain ter- It also resolved that learner-student sources of funding through NSFAS to
tiary education and critical skills. selection processes and enrol- increase access to higher education
ment for critical and scarce skills or and training as announced by Higher
The commitment was made at a academic and/or technical learn- Education and Training Minister Dr
recent meeting between executives ing courses be aligned with South Blade Nzimande.
of NSFAS, representatives of Africa’s Human Resource Develop-
ment Strategy. The partnership between NSFAS and
SETAs dates back to 2012.
Other agreements included: “At the time, we had few SETAs on
∆ Alignment in reporting and collab- board committing to funding stu-
oration with the Auditor-General dents in the form of bursaries for first
to ensure an effective, efficient year students. Now most of those
and consistent way of reporting; students are graduates. So, we
thought it was important to convene
∆ Improvement of the support for a meeting to review the partnership
financial aid offices of universi- and the work and the commitment
ties in identifying and conduct- made over the years, says NSFAS
ing eligibility testing of bursary- Executive Officer Msulwa Daca.
qualifying-students in line with
established eligibility criteria and NSFAS was established in
the NSFAS means test; and accordance with Section 3 of the
Health and Welfare SETA Chief Executive Officer Yvonne Mbane
and Chief Director: SETA Coordination at the Department of Higher
Education and Training Maliviwe Lumka.
Achieve / March 2016 17Features
NSFAS Act No 56 of 1999 to operate of financial aid depended on an ac- and standards in managing and
a national financial aid scheme in tive and collaborative partnership administering the funds. We have
terms of which low-cost loans or between the SETAs and NSFAS. been doing it since 1999. Therefore,
bursaries were to be made available we have the capacity, resources,
to disadvantaged students at higher In 2013, more SETAs came on board experience and expertise to
education institutions. to fund students through NSFAS. administer the funds effectively and
This was at the time when the efficiently,” says Mr Daca.
The SETAs were, on the other hand, scheme was faced with huge debt
established in accordance with the challenges and DHET had to make “We are also happy that this continued
Skills Development Act No 97 of R1 billion available to assist. partnership has helped us to sustain
1998 as amended to, among other our 25 years of funding for students
things, develop the skills of the At present, the SETAs make available from working class families. To date,
South African workforce; increase a total of R365 million to assist poor more than 1.5 million students have
the levels of investment in education students through NSFAS. been assisted and we have spent
and training in the labour market more than R50 billion in this regard.
and improve the return on that NSFAS manages and administers So we are moving forward, we are
investment. bursary funds on behalf of the SETAs strengthening ties with our funders.
with “due skill, care and diligence”. They are an important part of what
The three parties recognised that the we do. Without the SETAs we would
effective and efficient administration “We utilise professional techniques be funding fewer students.”
Health and Welfare SETA Chief Executive Officer Ms Yvonne Mbane; Chief Director: SETA Coordination at the
Department of Highter Education & Training Mr Maliviwe Lumka; NSFAS Chief Executive Officer Mr Msulwa
Daca and Services SETA acting CEO Ms Liesel Kostlich.
18 Achieve / March 2016Features
The proposed New SETA Landscape
debate: What the stakeholders say
By Achieve Correspondent
T
he merSETA, its board and a strengthened social partnership
stakeholders have called on model for planning, implementation,
the Department of Higher monitoring and evaluation of skills
Education and Training (DHET) to development.
convene a conference to debate the
journey the country will embark on It also provides new opportunities for
when the new SETA Landscape has collaboration and synchronisation
been finalised and comes into effect of the skills development
in 2018. implementation roles of private and
public sector stakeholders.
This follows a consultative process
that the merSETA engaged in after Several reviews have been
the publication in the Government conducted, including the NQF
Gazette in November 2015 of the new Review of 2002, Nedlac Review,
SETA Landscape proposal. work of the MTT and the Skills
System Review of the Human
The merSETA solicited inputs from Resource Development Council.
about 700 stakeholders. Workshops These have consistently reflected
were held countrywide. on weaknesses in the system
in relation to skills planning;
“The merSETA’s stakeholders have governance; facilitation and
trust in this process of consultation management of learning; and
and will be willing to avail [themselves] management of the levy
for further engagement that will result grant system.
to find the best solutions for our 2030
Vision,” says a report compiled after The proposal builds
the consultative process. on activities
already being
“It is a national imperative that implemented e.g.
the skills system is fixed and standardisation for
improved so as a country we do not planning.
implement yet another system that
will be inadequate to address the The proposal also
employment and economic growth contains aspects The merSETA CEO,
priorities of government, its social of change that might bring about Dr Raymond Patel,
partners as well as South African inefficiencies, which would be a puts a point across
citizens.” barrier to implementing a responsive during a stakeholder
and flexible skills development engagement session
The proposal contains positive system. on the proposed New
elements and provides a platform for SETA Landscape
Achieve / March 2016 19Features
The merSETA’s submission highlights planning by labour market actors and
both the positive aspects and those systemic responses from education
that raise concern as to whether they and training providers to skills
would bring about improvements. priorities across sectors.
Positive highlights It also presents the opportunity for
Below are some of the positive the sharing of best practices and
developments in the proposed cross-pollination of knowledge and
landscape to which the merSETA expertise in SETAs.
subscribes:
Centralised skills planning would
Strategy assist in the standardisation, co-
The proposed landscape is set to ordination and consolidation of skills
bring alignment to the work of the research and planning to enhance the
skills system and the education and systemic labour market alignment.
training provider system by means of
a single, integrated post-school skills Cluster management would also
development strategy. enable the sharing of resources
and the development of common
The White Paper for Post-School Programme Director: The approaches to qualifications and
Education and Training envisages merSETA Strategy and Research programmes cutting across different
the integration of the work of skills Executive Sebolelo Nomvete. SETA sectors.
development bodies and education
and training institutions for the Education and Training to integrate Legal status and governance
enhancement of the development of the skills development strategy with SETAs, as permanent structures, will
skills. those of universities and colleges and increase their stability. The current
produce a single strategy. five-year relicensing notion does
The draft proposal is an effort not work for medium- to long-term
to enable this vision through the The use of the Organising Framework planning for skills development
reassignment of functions among for Occupations as a tool of analysis needed to support the 2030 Vision.
various bodies and institutions, for skills research and planning is
including the DHET. welcomed. Functions and Roles
A consistent finding of the various
The proposal, based on experience This approach provides clear focus reviews has been the difficulty
since the implementation of the skills for skills development – ensuring that that users of the skills system find
system, seems to be an appropriate people are occupationally competent in navigating the requirements of
intervention to address the shortage and can access jobs and other the different SETAs for accessing
of skills. income-generation opportunities. services, each SETA having a
different ICT system.
The Human Resource Development The changing nature of business SETAs execute their functions in very
Council has reviewed the Human operations and ownership has different ways.
Resource Development Strategy in resulted in industries once seen
view of the new social and economic as distinct now offering the same Despite the fact that all SETAs
challenges that have emerged since cluster of services e.g. insurance, essentially have the same functions,
the last one. accounting, banking and retail. the difference with regard to
The nature of business is such that issues such as organisational
The review necessitates the occupations are more often than not structure, corporate services,
realignment of all role players as it applicable across various industries. financial management policies and
is a key component of strategy. The procedures, staff conditions of
new SETA landscape proposal is an Cluster management of SETAs has service and the like varies.
opportunity for the Minister of Higher the potential to facilitate integrated It has become apparent that there
20 Achieve / March 2016Features
could be more standardisation landscape also emerged as one of the proposal to reduce SETA
through centralised approaches for the weaknesses. Stakeholder voices, boards into advisory bodies with
procedures, tools and methodologies such as key labour and business no decision-making powers as this
for the mandated functions of SETAs partners, are not reflected in the would affect the ability of boards to
and a shared services model for proposal. make critical strategic decisions.
some of the corporate support
services. The absence of input of all social This is seen as bringing an
partners in the draft discussion imbalance into the decision-making
This would allow for more efficiency, document might lead to decisions power of social partners, risking
easier navigation of the system that would defeat the vision of an non-participation of labour market
and savings so more of the levy integrated WP-PSET, which should social partners, who might feel their
grant funding can go towards acknowledge the complementary capability and expertise are not seen
service. The proposed centralisation capability and resources of the as adding value.
approach and shared services labour market and education and
model would enable the systemic training components equally. The proposal to make SETAs
application of best practice from the service-delivery units within DHET
better performing SETAs towards Legal status and governance would result in them being subjected
standardising and streamlining The elevation of the government to internal bureaucracy of decision-
processes. in the running of SETAs has been making and slow their ability to make
criticised. The argument is that the critical decisions.
Concerns regarding the government is too far removed from
new SETA Landscape proposals what is happening on the ground to The belief is that DHET does not
The merSETA stakeholder concerns have sole veto powers in decision- have the capacity to assume such a
are unpacked below. These concerns making. responsibility.
need attention before finalisation and
implementation of the proposed new It was argued that business and Accountability is critical in the
SETA landscape. labour had a better understanding of governance of any institution. The
the respective sectors. stripping of accounting functions
Strategy from SETA boards and CEOs might
There is a view that the proposal Stakeholders are concerned about well increase inefficiencies.
fails to locate the proposed change
within an analysis of current socio-
economic and global economic
contexts, national policies and
strategic priorities.
This was seen as a significant
weakness as it would result in a SETA
system not responsive to the needs
of the labour market and economy.
The proposal also fails to provide
a clear implementation plan to
facilitate a smooth transition into the
new landscape.
This would lead to loss of stakeholder
confidence and unnecessary
disruption.
The top-down approach in the A section of the audience enjoys robust debate at
development of the proposed one of the stakeholders' engagement sessions.
Achieve / March 2016 21Features
A participant asks a question during one of the sessions. Plastics SA Executive Director
Anton Hanekom
Functions and Roles received major criticism. approaches and methodologies
The absorption of SETAs into DHET and the implementation of shared
would increase the distance between Chief among the concerns is that services would bring efficiencies and
them and industries/sector and stakeholders do not have confidence improved service delivery. Reinforcing
education and training institutions, in the ability of the National Skills the role of the government in the
compromising their ability to Fund (NSF) to manage the funds system is necessary, though it has
execute their role of facilitating efficiently. to be aligned with the government’s
skills development and being mandate – enabling business
intermediaries between employer/ There is also a perceived risk of funds investment and economic growth.
industry/sector and education and being diverted to other priorities if
training institutions. centralisation occurs. Key national The stakeholders’ reservations
skills development priorities may be should be considered, particularly
A number of SETAs do not have overlooked in favour of other social those pertaining to the role of labour
sufficient internal capacity to conduct priorities. market actors.
thoroughgoing skills planning. Most
of this work ends up in the hands of The proposed model would result in If the proposal is about building
consultants. unnecessary bureaucracy and delays a systemic partnership and
in accessing funding. Employers complementarity between labour
The proposed structure, functions would have to go through four layers market actors and education and
and roles of SETAs in the new of bureaucracy to access skills funds. training institutions, the legal status
landscape do not adequately This would consequently delay skills and governance and management
acknowledge best practices and development interventions. of the levy grant system needs to be
pockets of excellence in the current revisited.
SETA system. It is difficult to envisage how The complementarity, dialogue and
complementarity and partnership partnership principles have to hold in
Best practices should be replicated would work for a responsive skills a balanced decision-making model
while focusing on improving on those development system in what seems that recognises equally the value-
parts of the system that are not to be an inequitable management add of all social partners.
working. This would be less disruptive approach.
and could be used as a means to get Recommendations
buy-in for improvements needed Conclusion Strategy
for greater efficiencies and optimal The merSETA acknowledges that the There does seem to be a strategy
utilisation of resources. proposed landscape has positive underlying the proposal. However,
elements. unpacking the current, emerging and
Proposed Funding Model future economic conditions in which
The proposed funding model has Centralised standardisation of the new SETA bodies would operate
22 Achieve / March 2016Features
The merSETA engaged about 700 stakeholders and hosted workshops
countrywide.
might possibly assist in clarifying industries and businesses. The Funding Model
their most appropriate shape and government’s involvement should be SETAs should retain the discretionary
form going forward. as an equal partner. grant disbursement function but
with more stringent monitoring
Strengthening the current strategic Government does not run mechanisms to improve efficiency
intent contained in the proposal companies/industries and more credible mechanisms.
would embed the conception of However, it is imperative that the
skills. It would assist to clearly government consolidates and The proposed model should be
articulate how skills development of drives strategy through enabling revisited as there is a strong belief
employed and unemployed youth dialogue and partnerships for that centralisation would be likely to
and adults should underpin growth the implementation of correct introduce unnecessary bureaucracy,
and development. interventions for all social partners. A delays in grant disbursements and
balance needs to be struck between inefficiencies in the administration of
The development of this strategy the role of the government and the funds.
should be multi-stakeholder driven its social partners in determining
to leverage the rich knowledge skills needs priorities and ensuring Regulations for strong sanctions
and understanding possessed by appropriate systemic responses by should be put in place for all forms
different role players and increase other institutions. of financial mismanagement and
stakeholder buy-in. There also needs corrupt activities.
to be a clear implementation plan The solution for the governance
to ensure minimal disruption in the and management of SETAs should The Creation of Shared
transition to a new landscape. be one that does not introduce new Services for SETAs
bureaucratic processes. The proposal refers to the duplication
Legal status and governance . and weakness within the current
The SETA boards should continue as Functions and Roles SETA system. It also states that the
decision-making bodies instead of The centralisation of standardised SETA system is not pro-active and
being reduced to advisory bodies. approaches should be implemented. efficient.
Focus should be on addressing the
The focus should rather be on varied approaches in the current The system would largely benefit from
addressing current challenges in system that lead to duplication and a shared services model that would
the governance of SETAs. The SETA wastage of resources. The focus provide expertise in IT, Supply Chain
boards should continue having should also be on identifying best Management, Financial Planning,
a strong role for labour market practices and pockets of excellence Financial and Technical Advisory
social partners as they have an in the current SETA system and Services, Human Resources and a
understanding of critical issues determining how these can be centralised planning and research
confronting their respective sectors, replicated system wide. function.
Achieve / March 2016 23Features
SA’s manufacturing
production remains resilient
By Achieve Correspondent
South Africa's manufacturing sector faces challenges but remains resilient.
T
hat the South African economy recovery has been insufficient for the of convalescence. Between mid-
was hit hard by the 2008-2009 volume of manufacturing production 2009 and mid-2013, South Africa’s
global financial crisis of 2008- to return to its pre-crisis level. manufacturing production showed
2009 is not a matter for debate. positive growth. But between mid-
Preliminary manufacturing data for 2013 and the end of 2015, growth
The financial crisis, as all catastrophes December 2015 reveal that South in manufacturing production was
do, left a trail of economic destruction Africa’s manufacturing production, generally flat.
that is still haunting South Africa even on average, was unchanged in 2015
to this day – eight years on. compared to the situation in 2014. There are many factors that influence
the manufacturing industry. These
The country’s manufacturing industry The severe contraction of 2008- include global and domestic business
contracted sharply and its subsequent 2009 was followed by a period cycles, productivity, business
24 Achieve / March 2016Features
confidence, investment, industrial the effective rand weakened during relationships between variables is
relations problems, input and output 2011–2013, was relatively stable that there may be lags between
prices, monetary and fiscal policy, during much of 2014 and weakened causes and effects, e.g. exporters
infrastructure and the rand-dollar during 2015. may need time to respond to a
exchange rate. weaker exchange rate if they face
The Reserve Bank also calculates the supply-side constraints, such as
In the five-year period from 2011 effective rand in real terms, which is shortages of production capacity,
to 2015, the rand weakened from the nominal effective rand adjusted labour, electricity and other inputs.
around R6.90/$ (in January 2011) to for inflation differences between
around R15$ (in December 2015). South Africa and its trading partners. Finally, let’s take a brief look at the
The rand’s weakness tends to breakdown of manufacturing.
assist South African manufacturers For example, the benefits of a There are 10 manufacturing divisions.
in two ways. Firstly, manufacturing weakening rand in the nominal
exporters receive more revenue in effective terms are counteracted The strongest performer during
rand terms for every unit of foreign if South Africa’s inflation is higher 2011–2015 was communication and
‘
exchange received, and secondly, than average inflation of its trading professional equipment. Its growth
it becomes more expensive for partners. was well above average in all years
importers to compete with local except for 2015, when it contracted.
manufacturers. The next strongest division of food
These benefits may be eroded over
The real effective and beverages was a relatively
consistent performer throughout the
time if the weaker rand and related exchange rate period.
factors result in cost inflation for
manufacturers, e.g. more expensive
imports and for manufacturers who
rely heavily on imports for their inputs,
a weaker rand is not good news at all.
Between January 2011
December 2015, the rand lost 54% of
and
of the rand may
be regarded as a
barometer of external
competitiveness in
‘ This division appears less sensitive
to the business cycle than other
divisions.
For example, in the 2008-2009 global
economic crisis, it was the only
its value against the dollar. manufacturing division that recorded positive growth
(total manufacturing contracted
Following the 4.6% growth in 2010, by almost 14%, whereas food and
manufacturing production slowed to beverages grew by 2%).
2.8% in 2011, 2.2% in 2012, 1,3% in In general, the benefits of a weaker
2013, 0.1% in 2014 and 0% in 2015. rand for manufacturers would be Transport had average growth of
However, comparing manufacturing eroded by higher cost inflation in 2.3% for the period 2011–2015. This
production to the rand price of a South Africa (compared to its trading was similar to food and beverages,
basket of currencies (instead of partners). but the breakdown by year was much
the US dollar) provides a different more erratic.
perspective. “The real effective exchange rate of
the rand may be regarded as a ba- Apart from the “other” divisions, the
The South African Reserve Bank rometer of external competitiveness weakest performer during 2011–2015
calculates the “effective exchange in manufacturing” (SARB Quarterly was textiles and clothing, which
rate of the rand”, which shows Bulletin, December 2008). has faced strong competition from
changes in the value of the rand Chinese imports.
against a basket of currencies. How will manufacturers fare in 2016?
Five currencies account for about That remains to be seen. “Industrial production refers to the
three-quarters of the basket – the output of industrial establishments
euro (29%), yuan (21%), US dollar As noted earlier, there are multiple and covers sectors such as mining,
(14%), yen (6%) and the pound (6%). factors that affect manufacturing, manufacturing and public utilities
which makes it difficult to quantify (electricity, gas and water),” says
In nominal terms, which means there their individual impact. An additional the Organisation for Economic Co-
has been no adjustment for inflation, complication in measuring economic operation and Development (OECD).
Achieve / March 2016 25Features
The merSETA in a new
partnership to raise standards
By Independent Correspondent
T
he merSETA and Retail Motor will contribute to businesses. qualifications and accreditation
Industry Organisation (RMI), have portability across South Africa
a South African automotive A similar Return on Investment and the Southern Africa region.
employer organisation, have (ROI) study sponsored by the UK
entered into a partnership with government and IMI showed that “It’s an extremely exciting time to
the Institute of the Motor Industry well-trained employees under be part of the automotive industry
(IMI) to raise standards in the local the apprenticeship model could and the IMI will continue to work
automotive industry in recognition produce up to 300% return on with governments around the globe
that investment in trainees through employer investment. to develop standards that can be
vocational training will result in adopted by every country – as well as
direct benefits for businesses. In South Africa, the merSETA demonstrating the very real benefits
and RMI, working with IMI, will to employers and governments of
The London-based IMI is a encourage employers to participate investing in quality apprenticeships,
professional body in the retail in an ROI project to ascertain the training and skills for individuals
motor industry that also operates added value to businesses that working in the automotive sector.”
as a governing body of automotive apprentice motor mechanics, spray
technicians. painters and body repairers will Dr Spear said that by driving
deliver to their employers and the improvements in vocational
Both the merSETA and RMI economy. qualifications, employers could help
recently signed a Memorandum governments to draw the youth into
of Understanding (MoU) at the On their visit to the United Kingdom, apprenticeships and training.
IMI’s annual dinner in London that the merSETA and RMI executives
seeks to add value to employers by joined IMI’s International Manager, “As a developing country, South
facilitating the creation of a better Mr Herbert Lonsdale, and ROI Africa has its own unique challenges,
trained and skilled workforce in the Manager Dr Paul Spear on a fact- which are apparent in the high
automotive sector. finding tour of Britain’s motor unemployment rate, especially
industry, visiting several vocational among the young.
The merSETA and RMI have shown training facilities, including Emtec,
their commitment to improving Mercedes-Benz, Kwik-Fit, BMW “The IMI’s ROI Calculator will
their current automotive training Academy, Castle Coachworks and illustrate the immediate results a
standards and enhancing the Sytner BMW. young employee, provided with
school-to-work transition by using quality apprentice training, can
practical work-based learning that Mr Lonsdale said working with the have. We will be working closely
can lead to potential employment. merSETA and RMI would help IMI with the RMI to engage employers
enhance and promote automotive to conduct research and obtain
IMI, working in partnership with the skills throughout Southern Africa the data required to build an ROI
merSETA and RMI, will embark on and worldwide. Calculator designed for merSETA
comparative research to quantify and to align precisely with the South
the business value that skilling “Benchmarking to IMI’s global African market and the experience
workers through apprenticeships standards will ensure our of employers,” he said.
26 Achieve / March 2016Features
AIDC, Siemens honour artisan
and engineering graduates
By Independent Correspondent
The AIDC and Siemens have partnered to alleviate the chronic of skills shortage.
T
he longstanding partner- young talent in South Africa. a skills development programme.
ship between the Automotive
Industry Development Centre At a graduation ceremony in The partnership started in 2008 when
(AIDC) and leading global infrastruc- Johannesburg recently, the two the conglomerate recognised the
ture and industry solutions provider parties celebrated the success of 70 growing need to develop a pipeline
Siemens is continuing to yield signifi- young South Africans who are ready of scarce and critical skills across
cant outcomes in the development of to enter the industry after completing various industries and approached
Achieve / March 2016 27Features
‘
the AIDC to manage a bursary administered the training of students
programme focusing on developing
qualified individuals for absorption in
Developing skills on this programme,” she explained.
key sectors. and creating jobs is Mr Clifford Klaas, Siemens’ Executive
Director and Head of Human
The programme involved the not just a fulfilment Resources in Southern and Eastern
development of artisans, engineers, of our contractual Africa, said South Africa had a severe
technicians and a range of semi-
skilled workers who, once qualified,
could contribute to the government’s
goal to continuously grow and create
sustainable jobs.
The AIDC’s Skills Development
obligations but an
investment which
enables us to be
successful as an
‘ shortage of engineering and technical
skills, adding that the company was
working hard to train and develop
people appropriate for a developing
industrial economy.
“Developing skills and creating jobs is
and Training Department acted as engineering business not just a fulfilment of our contractual
an administration hub on behalf of obligations but an investment that
Siemens by facilitating training at enables us to be successful as an
external training institutions and engineering business,” Mr Klaas said.
managing all aspects of the training In addition, the centre identified 26
programme according to a budget. suitable companies for the placement “The government is encouraging
of students for on-job training in the development of skills that
The total value of the programme Gauteng, Mpumalanga and North benefit every South African. This is
over the past eight years is estimated West. a great example of business and the
at more than R65 million. government working well together,”
The AIDC also ensured that the study he added.
Under the government’s then and placement programmes were
Accelerated and Shared Growth project-specific and linked to Eskom Siemens has also absorbed many of
Initiative (ASGI-SA) scheme, Siemens power stations, including Kusile, the graduates in the company.
became committed to training South Medupi, Duvha, Ingula and Hendrina. One such student is Ms Jaquolyn
Africans as part of its contract The AIDC continues to monitor the Mononyane, who matriculated in
agreements for work at South performance and progress of the 2008 before studying electrical
African power stations and other students and provides reports to engineering at the Tshwane University
infrastructure projects. Siemens and Eskom. of Technology (TUT). She was later
placed on a further two-year Siemens
Special attention was given to people Speaking at the graduation ceremony, graduate training programme,
with economic and educational Ms Portia Mkhabela, AIDC’s Skills studying towards a B Tech degree in
disadvantages. Development Manager, said it was electrical engineering. As part of her
a privilege for the organisation to be training, she worked at the Sere Wind
Since the inception of the programme, entrusted with a project of this nature Farm in the Western Cape.
the AIDC has facilitated the training of and magnitude.
206 students through 15 accredited In 2015, Ms Mononyane became the
universities and Further Education “We are proud to have contributed first female supervisor in Siemens’
and Training (FET) colleges (now to the development of young North Riding facility. She is currently
known as Technical Vocational
Education and Training Colleges or
individuals,” said Ms Mkhabela.
‘
a supervisor in the facility’s medium
voltage division, a job previously held
‘
TVET institutions). “We are privileged to have by a skilled German employee.
The government is encouraging the development of skills that
benefit every South African. This is a great example of business and
the government working well together
28 Achieve / March 2016You can also read
