EPWP VUK’UPHILE CONTRACTOR LEARNERSHIP PROGRAMME – OVERVIEW-Select Committee 13 June 2007

1. EPWP VUK’UPHILE CONTRACTOR LEARNERSHIP PROGRAMME – OVERVIEW-Select Committee 13 June 2007

2. PROGRAMME OUTLINE

3. Vuk’uphile Contractor Learnership Programme • Presently 1,500 individuals on the Vuk’uphile Programme (plan for further 1,500 individuals) • Constituted within 500 Learner Contracting Companies, have: - one contractor (trained at NQF 2) - two site supervisors (trained at NQF 4)

4. Objectives and Outcomes • Increase capacity in the labour intensive construction sector to support EPWP • Contractors to emerge with: • Recognised Qualification • Project Track Record • Financial Track Record • Relationship with a bank • CIDB Ranking of Grade 3 to 4

5. EMERGING CONTRACTOR ? Defined as an enterprise owned, managed and controlled by historically disadvantaged individuals which is still overcoming business impediments arising from the legacy of apartheid.

6. EMERGED CONTRACTOR ? Defined as an enterprise owned, managed and controlled by historically disadvantaged individuals which is able to sustain itself in the open market, and is able to operate locally and wider.

7. Proposed Learnership Model for the EPWP Year 1 Year 2 Training Project 1 Training Project 2 Training Project 3 6-8 weeks 6-8 weeks 6-8 weeks Mentorship

8. Learnership Structure • Learnership Regulations • based on Unit Standards • Certificate on NQF as outcome • National ownership • Min 30%, max 70% workplace training Learner Between learner and workplace provider a contract of employment has to be signed Standard Learnership agreement Workplace provider - EMPLOYER Accredited Training provider

9. Learnership: Classroom training and Project Execution Training Provider Learning Training At a employer

10. ROLES AND RESPONSIBILITIES – VUK”UPHILE STAKEHOLDERS DPW DOL IDT CETA Mentors for training providers Trainers of trainers Programme Management support Community Facilitation Support Training providers for learnerships Province / municipality Mentors for learners Training projects Training providers for workers Access to credit Learner contractor 2 learner supervisors ABSA Unemployed EPWP beneficiaries

12. EPWP Learnership Location (Cont.)

13. Vuk’uphile Programme – Learner No.s • E. Cape – 285 Lnrs • Mpum. – 282 Lnrs • Gauteng – 252 Lnrs • K. Natal – 162 Lnrs • F. State – 151 Lnrs • W. Cape – 132 Lnrs • Limpopo – 108 Lnrs • N. West – 85 Lnrs • N. Cape – 45 Lnrs

14. Typical Contracts to be provided by Province or Municipality • Civil Contract (Road or Stormwater) contract • Duration 4 to 9 months • Value R1 to R3 million • Awarded on a negotiated price basis. Permission received from the State Tender Board • Contractor will be awarded three over the learnership period (subject to prior performance).

15. Critical Factors for Success Custodian and/or Champion of Programme Competent Entrepreneurs (selection based on aptitude, ability and interest) Projects and funds (long-term) Programme Manager EffectiveTraining and mentorship through learnerships Enabling contracting environment

16. Problems affecting success • Learner Attitudes, Commitment and Skill Levels, • Availability and timing of suitable projects, • Poor Mentoring/Training of Learners, • Unrealistic Expectations,

17. Problems affecting success (2) • Budget Constraints (Both from NDPW/CETA/ Public Body), • Poor Consulting Services (Limited understanding of EPWP, Labour Intensive Construction, Contractual Procedures, Negotiating of Rates, etc.),

18. Problems affecting success (3) • Complex model, many role players, • Lack of Capacity of Public Body Officials, • Learner Contractor / Learner Supervisor Disputes mainly on profit sharing, bonuses, etc.,