Portfolio Committee on Labour 20 October 2005 Presented by: Mr. Joel Dikgole (CEO – W&RSETA)

1. Portfolio Committee on Labour 20 October 2005 Presented by: Mr. Joel Dikgole (CEO – W&RSETA)

2. OVERVIEW OF PRESENTATION • W&R SETA PROFILE • W&R SECTOR PROFILE • NSDS 2001-2005 ACHIEVEMENTS • OTHER ACHIEVEMENTS • AFS & AUDIT RESULTS • STRATEGIC PROJECTS • KEY CHALLENGES 2005-2006

3. W&RSETA PROFILE • BOARD MEMBERS • MANAGEMENT STRUCTURE • DEMOGRAPHICS • REGIONS – KZN & WC

4. EMPLOYER ORGANIZATIONS • 6 BOARD MEMBERS FROM: • RA • FTA • SOINSA • SAISA • HOST

5. EMPLOYEE ORGANIZATIONS • 6 BOARD MEMBERS FROM: • SACCAWU • SACTWU • DICHAWU • HOTELLICCA • FEDCRAW • ECCAWUSA

6. GOVERNANCE STRUCTURE

7. Labour W&RSETA MGMT STRUCTURE HEAD OFFICE CEO PA Board Secretariat COO CFO PA PA Smme L/Ships Regions Skills IiP ETQA Comms Projects HR Finance IT SCM

8. Organogram and Demographics

9. STAFF COMPLEMENT

10. W&R SECTOR PROFILE • STATISTICS • COMPANIES REGISTERED • COMPANIES PARTICIPATING • CRITICAL SKILLS

11. W&R SECTOR PROFILE • SEPTEMBER 2004 • # EMPLOYED -2.5m • RETAIL TRADE SALES -R352bn • WHOLESALE TRADE -R485bn • TOTAL SALES -R837bn • Source: Stats in brief 2005-Statistic SA

12. Number of Companies • Levy Paying Companies • Including-R500 000 Threshold • Small <50 employees -24k • Medium 50-150 employees -664 • Large 150 + employees -234

13. W&R SECTOR PROFILE • CRITICAL & SCARCE SKILLS • SUPPLY CHAIN MANAGERS • MANAGERS • RETAIL IT EXPERTS • RETAIL TECHNICAL SKILLS • FINANCE • Source: SSP

14. Scarce skills

15. REGISTERED VS PARTICIPATING ORGANISATIONS5 year TREND • REGISTERED ORGS – 17k TO 46k • LEVYPAYING ORGS - 13K TO 24K • WORKPLACE SKILLS PLANS – 564 TO 9,5k • IMPLEMENTATION REPORTS - 287 TO 6k

16. Registered Organisations vs Participating in Sector % Increase of registered organisations in the sector

17. Participating Organisations % Increase in participating companies

18. RegisteredOrganisations Per Region

19. Participating Organisations Per Region

20. Levy vs Grants paid Small (1-49) Category

21. Levy vs Grants paid Medium (50-149) Category

22. Levy vs Grants paid Large (150+) Category

23. Levy Income vs Grants paid Total Per Category

24. ANNUAL FINANCIAL STATEMENTS • OVERVIEW OF FINANCES • CASH & CASH EQUIVALENTS • SURPLUS FUNDS • STRATEGIC PROJECTS • REPORT OF THE AUDITOR GENERAL • MATTER OF EMPHASIS

25. REPORT OF AUDITOR GENERAL • AUDIT OPINION: • UNQUALIFIED • EMPHASIS OF MATTER: • RESUBMISSION OF FINANCIAL STATEMENTS

26. Finances-General Overview

27. W&RSETA – 5 year overview Information based on audited financial statements

28. Surplus funds - Overview

29. 2004/05 Information

30. Cash and cash equivalents

31. Surplus funds - Overview

32. STRATEGIC PROJECTS • SETA FUNDED • AMOUNT ALLOCATED R472m • AMOUNT DISBURSED R230m

33. SETA SPONSORED STRATEGIC PROJECTS • Learnerships R217m • Capacity Building for Unions R 10m • Qualifications (Dev.) R 7.5m • I.S.D.F’S R 24m • SMME’S R 24m • ABET R 30m • Assessor Training R 7m • People Living with Disabilities R 30m

34. NSDS 2001-2005 ACHIEVEMENTS • SCORECARD • ACHIEVEMENTS BY OBJECTIVE • OTHER ACHIEVEMENTS

35. DoL SCORECARDPERFORMANCE ASSESSMENT SUMMARY

36. NSDS Targets Target Exceeded

37. Number of People Trained by Companies Total number of people trained = 337687

38. PROFILE OF SKILLS PROGRAMMES OFFERED BY ORGS • TEAMWORK 153,516 • CUSTOMER RELATIONSHIP 58,679 • PRODUCT KNOWLEDGE 26,416 • AIDS 13,800 • SALES 12,136

39. NSDS Targets cont. Target Exceeded

40. NSDS Targets cont. Target Exceeded

41. NSDS Targets cont. Target Exceeded

42. NSDS Targets cont. Target Exceeded

43. LEARNERSHIPS STATUS

44. Learnership Achievements

45. STRATEGIC PROJECTS • NSF FUNDED • (R 000m) • PROJECT RAVE • AMOUNT ALLOCATED R68m • AMOUNT DISBURSED R54m • 18.2 LEARNERSHIP (unemployed) • AMOUNT ALLOCATED R50m • AMOUNT DISBURSED R38m

46. W&RSETA QUALIFICATIONS • 20 QUALIFICATIONS DEVELOPED • 11 REGISTERED WITH SAQA & DoL • National certificate: Retail shop floor practices - NQF Level 2 • National certificate: Retail and wholesale sales and services technology 4 • National certificate: Wholesale and retail credit control 4 • National certificate: Wholesale and retail operations supervision 4 • National certificate: Wholesale and retail sales practices 3 • National certificate: Wholesale and retail operations management 5 • National certificate: Retail and wholesale processes 2 • National certificate: Wholesale and retail distribution 2 • Wholesale and Retail Generalist 2 • Wholesale and Retail Specialist 4 • Wholesale and Retail Management 5

47. OTHER ACHIEVEMENTS • 5 Unqualified Audit reports • Re-Accreditation as an ETQA by SAQA -3years • Re-Established as a SETA for next 5 years • 57 Providers Accredited • 30 In house – organisations • 15 External • 12 BEE • 68 FET Colleges participating in W&RSETA qualifications • 1421 Assessors Registered • 125 Moderators Registered • 2193 Certificates for Full Qualifications issued • 2500 Record of Achievements in SMMEs • 295 Learning Programmes approved

48. BEST PRACTICE • SAQA Auditors congragulates : • Qualifications Framework • Balance Score Card • IT Policies and Procedures

49. CHALLENGES • Increase training and participation of SMME’S • Form strategic private,public & community partnerships • Capacitate and Accredit SMME Providers • Develop exit strategies - Learnerships • Develop new demand-led qualifications • Address Scarce Skills • National Presence –Provincial Roll-out Strategy • Implement our Vision Plan • Assess & Evaluate impact

50. Specific Issues for Portfolio Committee Attention… • R500K exemption has caused the following: • There will be no database of businesses to work with (A suggestion to work with DTI database) • Number of SMMEs participating has been reduced • Reduced funding base • Increased administration to better manage non-levy paying companies • Companies pay levies but do not train employees. • Placement of unemployed remains a challenge. • Other government agencies should be encouraged to work with the SETAs