Building Capacity for the unfolding REDS in the EDI

1. Building Capacity for the unfolding REDS in the EDI Naudé Van Rensburg Eskom 082 336 1611

2. Background • Government growth targets amidst acute shortage of skills • 2005 – 2009 > 4,5% • 2010 – 2014 > 6% • ASGISA’s targets to halve unemployment and poverty by 2014 • Produce 50 000 artisans in next 3 years • Government investing R430bn to realise ASGISA targets • EDI need to ensure that there will be sufficient capacity in the unfolding REDS to develop and sustain the businesses

3. Current Status • Commercialisation of SOE training facilities 1987 onwards drastically reduced capacity • Rationalisation and consolidation 1994 onwards further resulted in decline of training facilities • Severe shortage of qualified instructors • Lack of qualified Mentors, line coaches, assessors – Workplace training • Big demand on the limited skills pool • Current growth puts enormous pressure on depleted pool of skills • High growth rate developed on the back of lows in construction industry – lack of building capacity • Labour brokering vs investment in Skills development

4. EDI Needs • Estimates in Local Government and Eskom indicates a need of 8000 artisans

5. GLOBAL FACTOR 0F 70 Growth Rate Years Years to double capacity = 70/annual growth rate

6. The Challenge • Where do we start to address and put focus on ?

7. Pipeline: Less than 0,6% of pupils who wrote Senior Certificate in 2006 left school with a “C+” or better for mathematics1 Learners started Grade 1 in 1995 1 666 980 Learners reaching grade 7 in 2001 932 161 Learners wrote Grade12 in 2006 528 525 Passed Matric exemption 85 830 Less than 0.6% (10 000) of pupils that started grade 1 in 1995 qualified for admission in Science and Technology faculties, including health, engineering, economics etc. Achieve A-C 10 000 1Dr Jane Hofmeyer, ISASA Mathematics and English Programme, 2007 to 2010

8. PipelineLess than 3% of pupils who wrote Senior Certificate in 2005 left school with a “C+” or better for mathematics1 Learners writing Senior Certificate in 2005 508 363 Writing higher grade mathematics 44 055 Passing 26 383 Number of African school leavers with a “C+” or better (in 2002 was only 700) African 5 000 – 6 000 In 2002 was 3 720 1 500 1Dr Jane Hofmeyer, ISASA Mathematics and English Programme, 2007 to 2010

9. Pipeline Total number graduates NQF6 to 8 4248 4500 3783 3565 4000 3306 3500 2895 3000 2500 2000 1500 1000 500 0 2000 2001 2002 2003 2004 Output of all engineering disciplines in SA for which all industries compete Graduation trends and availability National Learners Records Database from SAQA – February 2007

10. Pipeline Engineering Graduation Trends and Availability 1912 1799 1662 1368 1250 1034 922 924 902 812 293 337 243 291 283 2003 2001 2002 2004 2000 Industrial Electrical Mechanical

11. Pipeline • Employment Equity Legislation put demands on historically disadvantaged population groups SA specific • In 2004 the following available graduates was African: • 18.5% of graduates across all engineering disciplines • 15% in industrial and mechanical engineering disciplines • 17% in metallurgical engineering • 20% in mining engineering • 19% in electrical and electronic engineering

12. Migration of Skills Canada Pakistan 100% Namibia China Rest of Africa Zimbabwe 80% Rest of Europe Nigeria New Zealand India USA 60% UK South Africa Rest of Europe Australia 40% Rest Of Africa UK 20% Other Other Leading source countries South Africa Leading destination countries 0% Documented migration, Statistics South Africa, 2003 Report No. 03-51-03

13. Migration of Skills 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Documented immigrants South Africa Self-declared emigrants 0% Other Clerical and sales Professional SA Not economically active Managerial Documented migration, Statistics South Africa, 2003 Report No. 03-51-03

14. Capacity to deliver in the need Training Resources (instructors) in EDI 73 80 70 60 50 40 22 30 16 20 10 0 Full-time Part-time Contractor

15. Capacity to deliver in the need Training Resource availability in EDI per Category 60 51 42 50 41 39 37 35 40 29 30 20 10 0 Dx Constr Generic Cables Operating Low Voltage Electrification

16. Capacity to deliver in the need Facility Capacity in EDI 554 87 36 16 12 0 0 0 0 Electrical Apprentice, Learnership Fitting & Turning MC&I Fitter Cables Rigging Operating Welding Boilermaking

17. Capacity to deliver in the need • Preliminary estimates reveal current shortage of >120 electrical instructors in SOE • Estimated shortage in Local Government and Eskom > 55 instructors • Capacity to deliver electrical training indicate 554 • Capacity to train Distribution qualified electricians < 250 • Output of existing training centres can be increased for “generic” electricians • To increase capacity for Distribution related training require significant investment in facilities and instructors

18. Capacity to deliver in the need (cont) • Current research indicates that • Not sufficient practical workplace training opportunities are available • Workplace mentoring and Coaching not effective due to the • Lack of resources • Resistance in coaching

19. Recommendations to address Capacity • Industry need to get involved at school level to • create interest in Maths and science • Assist in building expertise to deliver training • Develop environment to attract technical instructors • Create a well-skilled workforce – specialists, expertise by • Re-employment of retired artisans • Attract and training existing artisans as instructors • Within a well defined strategy consider import of instructors for the short term

20. Recommendations to address Capacity (cont) • Create partnerships to build well skills pool that all companies can access – optimisation rather than amalgamation • Create training hubs throughout the country • Create lower entry and exit level qualifications to capture school leavers at grade 10, e.g. • Linesman

21. Competence vs Experience Model NQF 5 Proposed Process 4 Current Situation 3 Proposed Situation Continuos Development 2 2 8 6 4 10 YEARS Experience

22. Recommendations to address Capacity (cont) • Develop and register skills programmes to give employees credits and mobility towards qualifications • Create capacity to develop emerging BEE and BWO companies • Seek support of EWSETA for the support in establishment of Institute of Sectoral and Occupational Excellence (ISOE)

23. Conclusion • Challenges relating to the skills pipeline cut across the education, training and workplace arenas. • The problem is not merely to equip new entrants with skills, but to ensure that they gain the appropriate workplace experience to consolidate their craftsmanship, supervisory and professional capabilities. • A further challenge is the predominance of an aging skill population which needs to be replaced without compromising quality and performance”. CIDB Skills for infrastructure delivery in South Africa the challenge of restoring the skills pipeline discussion document;

24. Conclusion • Studies by different groups revealed; • There is a lack of the physical infrastructure • A bigger contributing factor is the low level and uneven spread of training intellectual capacity (instructors), updated equipment and funding. • Consolidate existing resources to maximize existing capacity and thereafter, engagement around alliances and partnerships. • One of the biggest impediments however, is resources to drive such processes. Recapacitating the state: Locating government’s training capacity. Renee Grawitzky

25. QUESTIONS ?