Progress Report on Learnership Implementation to Joint Monitoring Committee On the Improvement of Quality of Life &am

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