Presentation to Labour Portfolio Committee

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

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

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

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

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

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

7. Labour 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

8. Labour Background: 2006/2007 • Organisation went through turbulent times during the 2006/07 financial year • 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 • However all financial obligations were met that year and thereafter

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

10. Labour 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 2006/2007- 323 SDFs 2007/2008- 647 SDFs 2008/2009- 390 SDFs capacitated 1360 SDFs to date Information on scarce and critical skills widely disseminated to all relevant stakeholders

11. Labour NSDS 2 Performance Indicators (2) Indicator 2.1 (a) Mandatory grants support to Large firms: • 2005/2006- 207 large firms supported • 2006/2007- 146 large firms supported • 2007/2008- 161 large firms supported • 2008/2009- 216 large firms supported Since 2005, 730 large firms supported

12. Labour NSDS 2 Performance Indicators (3) Indicator 2.1(b) Mandatory grants support to Medium firms: • 2005/2006- 151 medium firms • 2006/2007- 105 medium firms • 2007/2008- 89 medium firms • 2008/2009- 153 medium firms • Since 2005, 498 medium firms supported through Mandatory Grants

13. Labour NSDS 2 Performance Indicators (4) Indicator 2.2 SMME’s • 2005/06- 227 SMME’s supported through Mandatory Grants and SMME voucher system • 2006/07 -1042 SMME’s supported through Mandatory Grants and SMME voucher system respectively • 2007/08 – 74 SMME’s supported 2007/2008- 74 SMMEs supported • 2008/09 – 89 Levy Paying SMMEs supported • Since 2005 1432 SMMEs supported through Mandatory and Discretionary Grants. Indicator 2.5 BEEs • 2005/06 -176 supported • 2006/07 -12 BEEs supported • 2007/08 – 9 BEEs supported 2007/2008- 9 BEEs supported • 2008/09- 195 and 5 BEEs Co-operatives supported • Since 2005, 442 BEEs supported

14. Labour NSDS 2 Performance Indicators (5)

15. Labour NSDS 2 Performance Indicators (6) Indicator 2.8 Support for employed learners • 2005/2006– 12 912 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 • 2008/2009- 10538 workers participated in various learning programmes including learnerships, skills programmes and apprenticeships, bursaries & internships Since 2005, 63 740 workers participated in various learning Programmes (figure only on entered, it excludes completion)

16. Labour Labour NSDS 2 Performance Indicators (7) Indicator 3.2 NLPE/NGOs/CBOs/CBCs • 2005/2006- 176 supported • 2006/2007- 12 supported • 2007/2008- 9 supported • 2008/2009- 152 supported - 128 NLPE - 21 NGOs - 2 CBOs - 1 CBC Since 2005, 349 supported

17. Labour NSDS 2 performance Indicators (8) Indicator 4.1 Support for unemployed learners • 2005/2006- 818 unemployed participated • 2006/2007- 2814 participated • 2007/2008- 3188 participated • 2008/2009- 1402 participated and completed Since 2005, 8212 unemployed assisted through various learning programmes (learnerships, skills programmes, Apprenticeships, Bursaries & Internships)

18. Labour NSDS 2 Performance Indicators (9) Indicator 4.2 Workplace Experience • 2005/2006- 392 learners exposed to workplace experience • 2006/2007-381 learners exposed to workplace experience • 2007/2008- 264 learners exposed to workplace experience • 2008/2009- 760 learners exposed to workplace experience Since 2005, 1797 learners exposed to workplace experience

19. Labour NSDS 2 Performance Indicators (10) Indicator 4.3 New Venture Creation (NVC) • 2005/2006- none • 2006/2007- 87 • 2007/2008- 4 • 2008/2009- 183 Since 2005, 274 young people trained & mentored to form new ventures

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

21. Labour Financial Performance

22. Labour Financial Performance

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

24. Labour Major Skills Development Initiatives- SMMEs Taxi Industry

25. 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

26. Labour Training Lay-off Scheme (1) • 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 • 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

27. Labour Training Lay-off Scheme (2) • Implementation Strategy & Approach • Company Requirements • File a Section 189A with the CCMA • TETA levy paying member for at least one year; • Minimum retrenches' more than 10 staff members • Must have a retrenchment policy 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. • Hinges on the collaboration and cooperation of all parties (employers, employees and facilitators) • Employees must be willing to participate in retraining progam • Duration of Re-training program is 6 months • Stipends of R1200.00 paid to learners

28. Labour Questions