The Challenge of Skills Development & Retention in the P&P Industry Mike Truelock - Sappi

1. The Challenge of Skills Development & Retention in the P&P Industry Mike Truelock - Sappi

2. Were are we going as an Industry?

3. How can I help you? What is your mental map? • ‘You can not Talk yourself out of something you Behave your self into!!’ • Career paths – credibility & “Status” • A stable or growing industry

4. What do they see and hear? Where To Now?

5. Macro view / Imperatives • Huge confidence in SA and an Interest rate vs inflation rate which holds the rand strong in currency terms • SA sits on a socio -political nightmare 40% of population on the poverty line/ 6-8 million young people between 18-28yrs of age with no hope of a future job wise and a explosion of children as head of house holds. • Legislative and structural complexity linked to 5 yr term’s of Government & Skills legislation.

6. Industry view / Outlook • Definition of skills shortage by economists and government & Industry differs:- • Economists link skills shortage to productivity • Govt defines this as lack of scarce or critical skills but excludes effect on productivity • Industry interested in the right skill at the right time for the right job & (at the right price) • Current Employee profiles and the effort to change vs risk of staying complacent (Operators vs Artisan career credibility) • Do we truly believe Technology changes will require new skill sets or will we just wait for natural experiential knowledge transfer? • My Question to you all is- do we act as though we believe that people are our competitive advantage; • worth investing on every level from “Macro SA” through to “on the job”? OR are they just an escalating cost pressure

7. Legislation; are we leveraging change Crises or Opportunity • National Skills Development Strategy 3 • National Skills Framework • King 3 • BEE • Priority focus areas for score cards and funding (Sector Skills Plans) • Integrated education delivery (Funding Grants & Fiscus) • Economic & Social stability with required growth of 7% for 20-30 yrs (Minister Pravin Gordhan’s warning) 40% population burgeoning poor

8. Drivers of Change DoL DoHET NSDS II NSDS III • Funding required to drive access to further education/skills for the school leavers • Compensate for Education failure;- repair the decision to close 100 Technical colleges,14 tertiary institutions & amalgamation of Universities and Technikons in 2001

9. THE HIGHER EDUCATION AND TRAINING SYSTEMWITHIN THE HUMAN RESOURCE DEVELOPMENT SYSTEM AND THE LINKAGES BETWEEN THEHUMAN RESOURCE DEVELOPMENT STRATEGY ANDHUMAN RESOURCE DEVELOPMENT COUNCIL ON THE ONE HAND AND THE NATIONAL SKILLS DEVELOPMENT STRATEGYAND THE NATIONAL SKILLS AUTHORITY ON THE OTHER HANDPROJECTSFEBRUARY 2010 Complexity of change 9

10. EMPLOYMENT WORKPLACE SKILLS DEVELOPMENT TRAINING, EXPERIENCE INSTITUTIONAL EDUCATION AND TRAINING 4+5 Increasing numbers and quality of workplace learning Expand Access to Youth specifically and to all generally relevance of academic professional technical and vocational learning – (PIVOT) 6 10 Promote employability and sustainable livelihoods Institutional and System shape and capacity 7 3 Expand R&D and Innovation capacity for socio-economic development Raise the learning base: for DHET: Second Chance opportunities for those who do not qualify for other post school learning 8 9 Improved institutional efficiencies, capability and strengthened alignment in information, finance, governance and management in the post school system 1 Understand Skills needs (2) manage, plan and provide for learning Communicate Skills needs through reliable information system to inform, steer and guide learning choices and (2) manage, plan and provide for learning 2 ORDINARY SCIENTIST POST DOCTORAL ENGINEER UNIVERSITY TECHNOLOGIST TECHNICIAN SHAPE THE FUTURE FOR SCIENCES AND TECHNOLGY COLLEGE RAISE THE LEARNING BASE UNSKILLED AND SEMI SKILLED OCCUPATIONS QUALITY/LEVEL SECTORS: LAW, EDUCATION, ENGINEERING, AGRICULTURE, FINANCE AND BANKING, SECURITY AND SAFETY, ETC BASIC Institutional/ Project Funding Institutional support: ops sys, hrd, prog dev, student/learners support International cooperation and migration Partnerships System planning and resourcing Quality Assurance (SAQA, QCs) Governance and Management Policy Advisory bodies Information Research & M&E QUANTITY

11. LINKAGES BETWEEN THE HRDC, HRDS-SA, NSA AND NSDS Human Resource Development Strategy National Skills Development Strategy Organised Labour Human Resource Development Council National Skills Authority Organised Labour Organised Business Organised Business Organised Community Organised Community Organised Providers Organised Providers SOEs, COHORT, Other councils Inputs and outputs Inputs and outputs Government Experts and Researchers Special Role Players Government Special Role Players Chair and EO of NSA 11

12. PROJECTS THAT HAVE BEEN MIGRATED FROM JIPSA TO HRDS-SA What happens with change 12

13. Engineers, Technicians and Technologists Project: To produce 1000 additional engineers and 300 additional technicians per year starting in 2007 over a four year period Research: Extent to which professional bodies impede the skills in scarce skills areas. Recommendations: Conditional grants to HE linked to specific outcomes 13

14. Artisans Project: To train 50 000 artisans by 2010 Research: Key aspects of current artisan training Strategy to increase number and quality of trainers and assessors Recapacitate state in providing training capacity Recommendations: Incentivize artisan development and training through NSF, track and Monitor initiatives, alleviate backlog at INDLELA, improve SOE capacity to train artisans 14

15. Micro Company view / Outlook • Is it true that;- • We react on a project based approach or do we have industry vision? • We defend our current mindset or are we conversing robustly about our realities • We have boring business strategy and goals; is it possible to make this sector “Sexy” for new work entrants? • We are at the mercy of the skill set that comes from education institutions or can we do something about our future? • We can poach from other industries when we need skills ie buy rather than develop • Our retiring workforce can be used ‘on contract’ for a number of years to come. • The development ‘Rules” are just too complex to embrace

16. The World moves !!!

17. SA HRD Strategy National Skills Development Strategy; II (2005-2010) Vision;- Skills for sustainable growth, development & equity With 5 key objectives Extended to March 2011 Objectives extended to include focus on FET integration and creating opportunities for access to further education for school leavers National Skills Development Strategy; III (2011- 2016) Will we use this 5 year opportunity?

18. NSDS 111 5.3. Learning programmes for decent work: • Programmes to facilitate access, success and progression; • • PIVOTAL programmes • • Skills Programmes and other non-accredited short courses and • • Programmes that build the academic profession and engender innovation. 5.3.1. Programmes to facilitate access, success and progression 5.3.1.1. Information and career guidance • Success indicator: • SETAs submit a comprehensive occupational profile of their sector and guide to employment opportunities in their sector in the format prepared by DHET by March 2013. Such a profile and guide to be updated by March 2016. • 2. SETAs provide information on the steps taken to expose prospective learners to work in their sector.

19. NSDS 111 5.3. Learning programmes for decent work: cont- • Programmes to facilitate access, success and progression; • •PIVOTAL programmes • • Skills Programmes and other non-accredited short courses and • • Programmes that build the academic profession and engender innovation. 5.3.1. Programmes to facilitate access, success and progression 5.3.1.2. Recognition of Prior Learning Success indicator: All principal sectoral and national programmes to include RPL access routes by 2016. Number of learners assisted to access further learning to be counted against programmes entered. 5.3.1.3. Raising the base Success indicator: Where sectoral or national programmes specify an entry requirement of NQF Level 4 or above, these programmes must be complimented by the provision of either Adult Education and Training or Foundational Learning Programmes which enable those who do not meet these requirements to have the opportunity of doing so. Number of learners assisted to access further learning to be counted against programmes entered.

20. NSDS 111 5.3. Learning programmes for decent work: cont- 5.3.2. PIVOTAL occupational programmes “Pivotal programmes are those ‘Professional, Vocational, Technical and Academic Learning’ programmes that meet the critical needs for economic growth and social development. They are also programmes that generally combine course work at universities, universities of technology and colleges with structured learning at work. This is achieved by means of professional placements, work-integrated learning, apprenticeships, learnerships, internships and the like. To achieve this goal, there must not only be improved access to, and success at post-school learning sites, such as universities and colleges, but there must also be structured bridges to the world of work and quality learning upon arrival there.” The DHET’s first Five Year Strategic Plan defines PIVOTAL programmes as follows:

21. Our P&P Industry value proposition • We provide an experience for people to do interesting and diverse jobs that bring meaning to life. (equipment, process and innovation) • We have the opportunity for people to develop in the most holistic and integrated way possible • We have the collaborative mindset, agreements and framework to leverage both funding and delivery of development. • We have the ‘Old Bulls’ who have a lifetime of knowledge to share. • The Fibre & Paper industry is a sustainable player in the world economy • Do you have the WILL to make the difference?

23. Process Planning is important…. …..but execution is what ultimately matters….

24. Bring back the FEEL - Pasion & Energy We work with living vibrant natural resources Sustainable Dinga asked Is the paper industry in South Africa sustainable? My response is;- YES - we will be different but we are not going to fade into the sun set. A “SEXY” Industry?

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