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Progress Report on Learnership Implementation to Joint Monitoring Committee

An informative report outlining learnership establishment, target groups, constraints faced, sequence of activities, and funding aspects based on the Skills Development Act.

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Progress Report on Learnership Implementation to Joint Monitoring Committee

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  1. Progress Report on Learnership Implementation to Joint Monitoring Committee On the Improvement of Quality of Life & Status of Children, Youth & Disabled Persons 01 November 2002

  2. Skills Development Act (Act 58 of 1998) • Learnerships: • A SETA may establish a learnership if – • the learnership consists of a structured learning component; • the learnership includes practical work experience; • the learnership would lead to a qualification registered by • SAQA and related to an occupation; • the intended learnership is registered with the Director General • in the prescribed manner. • Target group for Learnerships are: People in employment 18(1) • And new entrants 18(2)

  3. Example ? Learning to drive • Pass your learner’s license – which means you • must learn the road signs + rules of the road • in theory – and be tested on your theoretical • knowledge. • Then you drive under the supervision of a person • who has already passed their test. • Finally you undergo a practical test on the roads • and pass or fail on whether you can show you • can actually drive.

  4. WHERE ARE THE CONSTRAINTS? • Learnerships not yet available in all key areas • Employment places linked to areas of demand or opportunity? • Private sector / Public sector • Contract complexity • Issues of provision –providers with the necessary expertise to deliver the new learnerships to scale • Employment services – how are we going to inform, and then guide young learners into the new programmes? • Current employees – cooperation, selection and training of learners, monitoring? • Funding questions – who pays for what? • Exit strategy for learners at the end of learnership? • System management?

  5. SEQUENCE OF ACTIVITIES • Ensure required qualifications registered • Public providers engaged more directly • Create contract intermediaries • Employment services strategy devised • Shared and agreed financial arrangements • Establish agreements between employers and trade unions • Plan exit strategies from learnerships • Conduct national campaign based on --Marketing Political leadership

  6. Who designs learnerships? • SETA’s complete Sector Skills Plans • SETA’s identify areas where skills are scarce or where • new skills are needed. • Apply to SAQA to establish a standards generating body • Define the purpose of the qualification & develop the • standards • Submit qualifications to SAQA for registration • on the NQF • Develop the Learnership and submit to DoL for • registration

  7. As at Friday 25 October 2002 302 Learnerships where registered Information is available on Department of Labour Website – www.labour.gov.za

  8. Levels at which learnerships have been registered NQF level Percentage of registered learnerships 3% 1 2 14% 3 22% 4 30% 5 17% 6 11% 7 3% 8 0%

  9. SETA’s which have registered Learnerships NAME No. • FASSET 10 • BANDSETA 4 • CHIETA (Chemical Industries) 11 • CTFL (Clothing, Textiles, Footwear and Leather 42 • CETA (Construction) 4 • DIDTETA (Defence, Trade and Industry, Foreign • Affairs and Intelligence 1 • 7. ETDP SETA (Education and Training) 10 • 8. ESETA (Energy) 5 • 9. FOODBEV (Food and Beverage) 34 • 11. HWSETA (Health and Welfare) 7 • 12. ISETT (Information technology) 7 • 13. INSETA (Insurance) 15

  10. SETA’s which have registered Learnerships NAME No. • 14. LGWSETA (Local Government and Water) 3 • 15. MAPPP (Media, advertising, printing and packaging) 31 • 17. MERSETA (Manufacturing, engineering, plastics) 22 • POSLECSETA (Police, Security, Correctional • and Legal Services 4 • 20. PAETA (Primary Agriculture) 8 • 22. SETASA (Secondary Agriculture) 6 • 23. SERVICES 18 • 25. THETA (Tourism) 21 • 26. TETA(Transport) 4 • 27. W&RSETA (Wholesale and Retail) 5

  11. Learnership Agreements (See page 29 of Guide for Employers Employer Learner 18(1) 18(2) SETA registers Provider 18(1) Learner = worker in firm 18(2) Learner = previously unemployed

  12. COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 Employment contract For 18(2) learners Exit level of Learnership Credits already earned by learner Percentage of qualified wage to be paid as allowance Minimum allowance per week NQF 1 or 2 0 - 120 35% R120.00 121 – 240 69% R240.00 NQF 3 0 – 120 17% R120.00 121 – 240 40% R226.00 241 – 360 53% R370.00 NQF 4 0 – 120 13% R120.00 121 – 240 25% R240.00 241 – 360 53% R370.00 361 – 480 56% R540.00 NQF 5 to 8 0 – 120 8% R120.00 120 – 240 18% R260.00 240 – 360 27% R389.00 361 – 480 38% R548.00 481 - 600 49% R700.00 Allowance for Learners

  13. Employment contract For 18(2) learners • Terms and conditions cover: • Remuneration • Hours of work • Overtime pay • Different types of leave • Contract employment incl. Terminations • Disputes

  14. Funding of Learnerships 20% - National Skills Fund Provider Firm 1% Levy Learner allowance 80% SETA 10% Admin 60% WSP’s 10% Discretionary Learnership Grant

  15. Learnership Tax Incentive AT START Employer signs Learnership Agreement can deduct - 18(2) 100% of annual wage for 18(2) – max R25 000 - 70% of annual wage for 18(1) - max R17 500 AT END / END OF PHASE can deduct - 100% of annual wage for both 18(1) + 18(2) up to max of R25 000 BACK DATED TO OCTOBER 2001 IN PLACE FOR 5 YEARS

  16. How well have we done ? • SETA’s established in March 2000 • HRD Strategy strategy – target 3000 • by March 2002 ACHIEVED 3203 • By end September • TOTAL =15 000 • 18(2)’S = 5 000

  17. Case Studies (1) (all the case studies are additions) • Wholesale and Retail SETA – Spar Group KZN-Thekwini College • Level 2 Learnership: Wholesale and Retail Generalist • 24 Learners

  18. Case Studies (2) • Education, Training and Development SETA • Level 4 Learnership ABET Practitioner Learnership • Employer – Yingisani ABET Centre Letaba • Training Provider – Project Literacy • 36 Disabled ETDP Learners

  19. Case Studies (3) • Tourism, Hospitality Education and Training Authority – Enyenyezi College • Level 4 Learnership: Professional Cookery • Level 2 Accommodation Services • 120 Learners • Employers – Consortium of Bed and Breakfast establishments • - KZN South Coast

  20. Case Studies (4) • Fasset: • Level 7 Audit Specialism – 5000 learners • Level 7 Financial Management Specialism – 300 learners • Commercial and Financial Accounting: Public Practice – 150 learners • Level 7 Commercial and Financial Accounting: Commerce and Industry – 5 learners • Level 7 Charted Management Accountant – 4 learners • Level 3 National Certificate in Business administration – 3 learners • Associate Accounting Technician – 15 disabled learners – Access College as Training Provider • For all learners various employers who are FASSET levy payers – from one person consulting accounting firms to large companies

  21. Thank you S Morotoba

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