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Department of Labour Progress Report to Portfolio Committee on Skills Development and

Department of Labour Progress Report to Portfolio Committee on Skills Development and Human Resources Development 22 May 2001. Skills Development Act. Purposes of the Act: Increase quality of life of workers Increase productivity in the workplace Promote self-employment

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Department of Labour Progress Report to Portfolio Committee on Skills Development and

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  1. Department of Labour Progress Report to Portfolio Committee on Skills Development and Human Resources Development 22 May 2001

  2. Skills Development Act • Purposes of the Act: • Increase quality of life of workers • Increase productivity in the workplace • Promote self-employment • Delivery of social services • Improve employability work seekers • Ensure quality of education and training

  3. Purposes of the Act to be achieved by: (i) NSA (ii) NSF (iii) Levy-grant scheme (iv) Labour Centres (v) SDPU (vi) Learnerships / Skills programmes

  4. National Skills Authority • Advise the Minister on the NSDS • Any regulations to be made

  5. National Skills Authority • Advised on NSDS (9 Provincial Consultations) • NSDS launch 22/23 February 2001 • (b) Regulations • - SETA Establishment (20 March 2000) • - Funding Year 1 (7 February 2000) • - Learnerships (3 April 2001) • - Financing (awaited with SLA’s)

  6. National Skills Fund: Income = 2001/2 Provinces DTI/DoL DoL H/O Total SETA’s R270 m R 450 m R 71 m R 69 m R 860 m

  7. National Skills Fund: Provinces Identify Provincial Skills Dev. Forum Project Labour Centre Project Recruit + Select Unemployed Project Fund Province Project Skills Plan

  8. National Skills Fund: SETAs Approval DoL SETA + Govt. Dept. Key Strategic Project NSA Government’s Job + Social Dev. Strategy S.S.P’s DG/ Minister

  9. National Skills Fund: Skills Support Programme (SSP) SSP 1. Development of curriculum etc. 2. Upgrade training provider (capital) 3. Skills training New investment proposal DoL DTI Approval

  10. National Skills Fund: DoL H/O • Innovation/ • Research DoL H/O Applications Criteria • Capacity • building of • stakeholders • Marketing/ • Promotion

  11. National SD levy/grant Enterprise Year 2 1% of payroll Year 2 15% + 50% SARS to DoL 80% to SETA SETA 20% to NSF National Skills Fund

  12. National SD levy/grant: LEVY INCOME April 2000 – March 2001 Total Collected by SARS (0,5%) : R1 250 003 750,64 80% to SETA’s (to Feb) : R 799 314 880,10 Total Employers paying : 109 925 Total employers on SARS database : 221 600 = 50,9% [Estimated that 10% firms pay 85% levy] Projected for 2001/2 (1%) = R2 625 000 000,00

  13. National SD levy/grant: GRANT PAYMENTS • 1 April 2000 to 31 December 2000 • 13 SETA’s made grant payments • 2298 grants paid • R21 067 910,00 paid • 1 April 2000 to 31 March 2001 • 15 SETA’s made grant payments • 4 227 grants paid • R47 263 000,00 paid Issues: Public Sector, VAT, PMFA

  14. LABOUR CENTRES: Restructuring • Opportunities for social development initiatives • identified • Skills of unemployed developed and assisted with • placement into work • Opportunities within formal sector large scale firms • (reactive interventions) identified • Threats within formal sector large-scale (reactive • interventions) identified • Learners referred and placed into learnerships • Dept of Home Affairs advised on Work Permits • Appropriate skills to work seekers provided • by service providers • Efficient and high quality services to work seekers • by private employment agencies

  15. Job placements by Province

  16. Job recruitment by firms - study

  17. Skills Development Planning Unit (SDPU) • 25 Sector Skills Plans (draft 1) by Sep 2000 • 24 approved in March 2001 • Overall shortages • Management Skills • Engineering • Information Technology • Also • Health and Safety • Customer service • Literacy and Numeracy

  18. NSA / SDPU: Negotiations with SETA’s NSDS 5 yr Targets SETA 5 yr Targets SETA 1 yr Targets Assumptions DoL Services 13 negotiations completed

  19. Learnerships • Number of learnerships identified by SETAs – 416 • Number of learnerships in development – 70 • Number of learnerships submitted for registration – 56 • Number of learnerships to be implemented by 2002 – 150 • Number of SETAs accredited as ETQA - 13 The ETDP SETA has embarked on training a minimum of 1250 educators, mentors, supervisors etc. by 2002.

  20. HRD Strategy 4 National systems of Innovation, Research and Development 2 SUPPLY SIDE Provision of Further And Higher Education And Training HRD Strategy Linking the four Strategic objectives 3 DEMAND SIDE Demand for skills From Employers. 1 GENERAL EDUCATION The underpinning supply of Compulsory schooling; Early Childhood Development and Adult Basic Education and Training

  21. Co-ordinating structure Cabinet Cluster Ministers of Education/ Labour FOSAD Directors-General Education/ Labour HRD CC Chief Director’s Education/ Labour + HSRC Public Service Delivery Research & Development Scarce Skills Learnerships ABET ECD SMME

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