Fred Hugo SA Academy of Engineering 2006

1. Two Sides of a Coin!Presentation to Road Pavement Forum on Work Force Development Issues – A Challenges for the Construction Industry Fred Hugo SA Academy of Engineering 2006

2. ITT - University of Stellenbosch South Africa

3. Question: Where have the following statements been made? “Several initiatives have led to the conclusion that workforce is a critical issue to all related organizations – public, private, and academic.” “……workforce shortages are of significant proportions!”

4. Answer…..Debate on Trends in Transportation in the USA! • Other observations from that debate…….. • Rising level in education • More are returning to education • Increase in female, minority and immigration hirings • There has been a demand for skills increase for several decades • Public sector has become less popular ----old fashioned, rigid and less innovative • Gaps in wages between school leavers and college graduates increasing • Transportation is “in-grown”

5. More observations….…..Debate on Trends in USA! • Four year degree in CE is inadequate ! • 115 PhDs in CE /y is inadequate! • Private sector is now doing its own training • Successful organizations are those that ID HR as a strategic management function • Partnerships that will work have to be identified • Contracting out (outsourcing) is increasing but….need for technical skills has not been reduced since management is needed! • Centres of Excellence in Transportation have increased from the initial 10 in early nineties to more than 60 in 2006

6. More observations….…..Debate on Trends in Work Force Development in South Africa! • There has been a demand for skills increase for several years in South Africa and the SETA system has been in place for several years but the results have not been forthcoming • Six weeks ago SEIFSA reported that Dept of Labour declined a request for financial support of R50 mil for its efforts to train 3200 scarce artisans because proper procedures had not been followed….. • Despite fact that there has been a surplus of R3 000 mil in the national skills development fund for several years …..Die Burger 9 Oct 2006 and… • shortage was identified as a necessity in the training initiative of JIPSA

7. Observations….…..Debate on Trends in Work Force Development in South Africa! • Technology is defining our future • Educated labour force is needed • Need to be able to interpret and manage data • Account needs to be taken of different learning styles • Need to understand and manage career mobility in the new era of globalisation

8. Observations….…..Debate on Trends in Work Force Development in South Africa! • Do we have the management staff with the necessary skills to manage the future expansion in the built environment? • UP estimates that we produce only 10 000 students/yith symbols between A & C in higher grade Maths & Science. Dept of Educ intends growing this to 50 000 by 2008!

9. Observations….…..Debate on Trends in Work Force Development in South Africa! • Dramatic increase in the enrolments in Civil Engineering in South Africa eg. Stellenbosch ..> twice between 2004 and 2007! • The aim is to increase engineering graduates by 1000 per year by 2010 as will be seen later • The problem is that it will take at least four years before they graduate!!

10. Observations from other SAAE Fellows….…..Carl Grim in his keynote address during at an induction function of new members of the South African Academy of Engineer – 4 September 2006 in Johannesburg Roy Marcus SAAE Exco member interacting with JIPSA

11. THE TECHNICAL SKILLS CRISIS UPDATE ON STATUS OF THE JIPSA INVESTIGATIONS AND RECOMMENDATIONS Roy Marcus - SAAE Exco

12. Focus on technical skills shortages Assessment of needs of various industry sectors Attempt to gain some consensus of technical skills requirements Concern over discrepancies particularly in the construction industry where there are large differences of opinions Attempt to derive a model for the ratios of the various categories – engineers technicians/technologists, artisans Shock over realisation that average age of artisans is 56 years Deep concern over apparent failure of learnership system – the quality of the end product simply inadequate!! Initial agreement to focus on engineers and artisans FIRST PHASE

13. THE HARSH REALITIES • The Supply Side: Pitifully low numbers of matriculants who qualify for admission to tertiary technical training operations (maths and science). • The Teacher Quality Problems: Quality of science and mathematics teachers at secondary school level. • The Bulge of Retirements: Bulge of retirements of senior top class scientists and engineering academics at tertiary educational institutions - little prospect of filling the voids with a new crop of young highly qualified people. • Career as an Academic: The reality of the fact is that there is a paucity of black science graduates and that within this small group very few see a future in the world of academia. • Confusing Roles: – there is a serious problem in education and training being separated between DoE and DoL.

14. THE HARSH REALITIES • Tertiary HDI’s the Poor Cousins: In spite of the restructuring process Previously Historically Disadvantaged Tertiary Education Institutions (HDI) are destined to remain the poor cousins of the system. • Unemployable Graduates: There are a large number of graduates who have graduated with excellent gradings, but because their grounding does not include technical subjects, are simply unemployable. (Between 30 000 – 60 000) • The Untapped Talent: Within the “shop floor” environment there are literally thousands of people who have acquired technical competencies through a “process of osmosis” and who if given an opportunity could become the future technical leaders in the country. • Migration of Skills: Urban drift is a serious problem to rural development

15. THE HARSH REALITIES • Stigmatization and the Anti Technology Mindset: Negative mindset amongst the youth of South Africa that following a career as artisan is below their dignity. • The Failure of an Inflexible Educational System: The articulation within the technical training environment is virtually non-existent. Inability to fully integrate the offerings from FET colleges, Universities of Technology and Universities into a flexible modular outcomes based model is seen to be nothing short of scandalous. • Anti Feminine Culture: Still a strong anti-feminine culture within technical environment. Unlike Eastern Europe, SA clings to an outmoded mind-set in which women are not seen as an integral part of the technical team. • Under-utilised Facilities: There are a large number of technical training centres grossly under-utilised. • Turf War – home of professional councils • Pool of Retired Specialists – many skilled people are excluded from the workplace due to quotas

16. THE HARSH REALITIES • Outmoded Training Techniques and Facilities: Technical training programmes in South Africa have failed to adapt to modern training processes, and in many cases the trainers themselves have not upgraded their skills. As such, the training centres are simply unable to attract people into the environment. • Outmoded Trainers: Many of the training personnel are imbued with outdated mindsets and are certainly very uninspiring. • Lack of Resource Planning: – The role of the HR executive. • Flight of the White Skills:The whole world is short of technical, managerial and project management skills. • HIV &AIDS: – This is hardly mentioned in our observations • Salary Discrepancy: – impossible to attract people into academia • Funding Formula: - huge mismatch – engineering faculties are severely disadvantaged • Contract Employment – chief executives are on 5 –year contracts – bonus system mitigates against development of human resources

17. 450 18.0 University Graduates 400 16.0 350 14.0 300 12.0 250 10.0 200 8.0 Civil Spending R bn Number of graduates 150 6.0 100 4.0 50 2.0 0 0.0 02 72 74 76 78 80 82 84 86 88 90 92 94 00 96 98 60 62 64 66 68 70 The numbers challenge Human Resources in the Construction Sector Source: Allyson Lawless

18. A highly segmented industry Number of companies per size category Employees Source: Allyson Lawless

19. Technical skills in Local Municipalities Source: Allyson Lawless

20. Technical skills in Districts Source: Allyson Lawless

21. Artisans certified at BITB 125 BRICKLAYER 100 BRICKLAYER & PLASTERER CARPENTER 75 JOINER & WOODMACHINIST 50 PLUMBER 25 0 2002 2003 2004 1994 1995 1996 1997 1998 1999 2000 2001 Artisans – Building Industry Source: BITB

22. 16000 14000 12000 10000 All Artisans registered 8000 6000 4000 2000 0 0 1980 1990 2000 2020 1960 1970 2010 Artisan registered The numbers challenge – All artisans Source: COTT

23. Artisan Ages Source: CIDB

24. Strategic Objectives of the National Strategy for Mathematics, Science and Technology Education 1. Performance targets in all schools 2. In every classroom a qualified and competent teacher 3. Improving the language of teaching and learning (LOLT) • Identifying and nurturing talent and potential • Co-operation with the Department of Science and Technology - NSW, camps, etc. 6. Partnerships with relevant stakeholders - resources and technical support 7. Evaluation and monitoring of MST in provinces

25. Goals of the Expanded MST Strategy • Increase number of learners passing HG mathematics and science • Increase number of Dinaledi schools - dedicated Mathematics and Science schools • Provide basic ‘package’ of support to Dinaledi schools • Monitor and report on progress on bi-annual basis

26. Numbers passing 2004 and 2005

27. Performance Targets 50 000 40 000 33 500 Physical Science 28 000 Mathematics 24000 Are we going to meet the targets set? Do we have the enrolment to deliver?

28. CURRENT STATUS • Agreement on increase of output from universities on engineering graduates to an additional 1000 per year • Waiting on universities to come back with proposal on how to achieve these goals • Suggested ratio for South Africa Engineer: Technologist/Technician:Artisan 1:5:16 • Plan to develop 50 000 artisans over the next 10 years in an advanced stage • Plan will include budgetary requirements • Concerted effort to create linkages between all initiatives • TRAC-SA programme good example…..

29. CURRENT STATUS (cont) • TRAC-SA science and maths school programme expanding very strongly with • Four regional centres, • mobile laboratory units >>1-10; 3 are full- time 7 @centre, • 12 mini centres and 56 schools, • interactive science centres www.trac.sunac.za • 44 000 learners exposed to maths and science • 1000 teachers trained,

30. Legislative environment • More than 120 pieces of legislation currently regulate the industry • Policies are often uncoordinated between five national Government departments, provincial roads and works departments and engineering departments in local authorities • Government departments unable to spend budgets • Large contracts often split into a number of small contracts

31. Technical personnel required to deliver existing tasks • Public sector • Number of civil engineers in local Government (including technologists and technicians) • Local government Vacancies 800-1200 about ~ 1550 employed • Provincial government • Central government • Parastatals Vacancies 500+ about ~ 1500 employed Source: Allyson Lawless

32. Perhaps you will now understand why we observed Two Sides of a Coin in the current state of affairs in the Work Force! • The problem is that one side yields a win and….. the other a loose!! • Will this situation prevail or will we lift ourselves by the bootstraps?...Then we need to do what needs to be done in order to be ….. • An industry that unites our nation and leaves a legacy of which we can all be justly proud