Employers and employees By Mr Basiami Disipi 1 LABOUR LAW CHANGES, - - PowerPoint PPT Presentation

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Employers and employees By Mr Basiami Disipi 1 LABOUR LAW CHANGES, - - PowerPoint PPT Presentation

Changes to South African Labour Laws: How they affect Employers and employees By Mr Basiami Disipi 1 LABOUR LAW CHANGES, APPLICABLE REGULATIONS & STRATEGIES 2011 -2016 1. Skills Development Act 97 of (1998) 1.1 SDA Regulations : Grant


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Changes to South African Labour Laws: How they affect Employers and employees

By Mr Basiami Disipi

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LABOUR LAW CHANGES, APPLICABLE REGULATIONS & STRATEGIES 2011 -2016

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1. Skills Development Act 97 of (1998)

1.1 SDA Regulations: ▪ Grant regulation regarding monies received by a SETA’s and related matters

2. Skills Development Levies Act 9 of (1999)

2.1 SDL Regulations: ▪ Regulations regarding levies and related issues 3.

Employment Equity Act, 55 of 1998 4. National strategies designed to support skills development:

4.1 White Paper on Post-school Education and Training (WPSET) 4.2 National Skills Development Strategy (NSDS) III (2011–2016, 2011-18 & 2011-2020) 4.3 National Skills Accord 1 (2012)

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LEGISLATIVE FRAMEWORK PERSPECTIVE

Freedom charter Constitution New Growth Path National Development Plan

  • 1. Human Resources Development Strategy of SA
  • 2. White Paper-Post School Education & Training (WP-

PSET)

  • 1. NSDS III

2.National Skills Developmnt Plan Socio-economic development Skills Development Act (1998) Skills Development Levies (1999) Employment Equity Act (1998) Applicable Skills Development regulations Applicable EEA regulations Oversight body: National Skills Authority (NSA) Oversight body: EE Commission

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4 Human Resource Development Strategy for South Africa Organisational needs Department of Higher Education and Training Human Resource Development Council for SA Workplace Skills Plans

  • 1. Nationals Skills Development Strategy (NSDS III) 2011 - 2020
  • 2. National Skills Development Plan (NSDP) 2020 -2030

Sector needs & priorities Skills Plan Office of the Deputy President of SA National Skills Authority Organisations [Public & Private] Sector Education and Training Authority (SETA) National Priorities

SKILLS DEVELOPMENT STRATEGIC ARCHITECTURE

▪Industrial Policy Action Plan (IPAP) ▪Joint Initiative on Priority Skills Acquisition (JIPSA) ▪Poverty Alleviation Strategy ▪Medium-Term Strategic Framework (MTSF) ▪ Sector Skills Plan (long-Term – 3 -5 Yrs) ▪ Annual Performance Plan (APP) – Short-term National Skills Fund

Skills Development funding

SDL (1%)

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SKILLS DEVELOPMENT AND THE WIDER PSET SYSTEM

Broader education and training system (HE, TVET & Community colleges):

❖ Broad, and speaks to individual and societal development ❖ HE, TVET and Community Colleges is wider than serving the needs of the economy

Skills Development system: ❖ Primary role is to support economic and industrial growth ❖ Combination of relevant education, training and work experience that enables a person to attain competence in a particular occupation ❖ Focus more on occupational qualifications ❖ SETA’s coordinate sector focus development

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SKILLS DEVELOPMENT ACT (1998)

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▪ To develop the skills of the South African workforce by:

  • improving the quality of life of workers, their prospects of work and labour mobility
  • improving productivity in the workplace and the competitiveness of employers

▪ To increase the levels of investment in education and training in the labour market and to improve the return on that investment ▪ Encourage employers:

  • to use the workplace as an active learning environment

▪ To improve the employment prospects of persons previously disadvantaged by unfair discrimination and to redress those disadvantages through training and education

What did SDA aim to achieve:

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NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III

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❖ To improve the effectiveness and efficiency of the skills development system ❖ To encourage linking skills development to career paths, career development and promoting sustainable employment and in-work progression ❖ To promote a skills development system and architecture that responds to the needs of the labour market and social equity ❖ To establish and promote closer links between employers and training institutions and between both of these and the SETAs ❖ To enable trainees to enter the formal workforce or create a livelihood for themselves ❖ To assist those with no relevant technical skills or adequate reading, writing and numeracy skills to enable them to access employment

What did NSD III aim to achieve?

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WHITE PAPER ON POST-SCHOOL EDUCATION AND TRAINING (WPSET)

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❖ To build an expanded, integrated and effective post-school ❖ A single, co-ordinated post-school education and training system ❖ A PSET that is responsive to the needs of individual citizens, employers as well as broader societal and developmental objectives. ❖ Linking education and the Workplace - close cooperation between education and training providers and employers

What did WPSET aim to achieve?

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THE SKILLS SYSTEM

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Economics

Research into skills supply and demand; trends analysis; labour market statistical analysis; econometric modelling and forecasting;

Industry expertise

Value chain identification; production processes; anticipating changes in processes requiring new skills

Education and training

Qualification and curriculum development; programme and intervention design; quality assurance

Organisation development

Strategy and planning to match training to skills needs; brokering partnerships to deliver training and work experience; project management and monitoring

Skills development

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CRADLE TO EDUCATIONAL CAREER PLANNING

Benefit of Strategic Alignment – Career Planning

Early Childhood Development Basic Education Tertiary Education and Training Career Workplace Learning Higher Education Skills Development Vocational Education and Training Adult Education and Training Community Education and Training

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INTERGRATED SKILLS PLANNING APPARATUS RESPONDING TO LABOUR MARKET AND SKILLS DEMAND NEEDS

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DHET DHET SETA’s Employers

Output Stakeholders Skills planning

DHET commissioned researches Occupations in high demand in SA Quality councils priorities Qualifications in high demand

SETA Sector Skills Plans (SSPs) informed by research from University/private consultants (96 Research reports)

Thirteen (13) priority trades Trades in demand identified Center of Specialisations established Funding directed to scarce/critical skills Skills audits/needs analysis In-house and sector aligned training ▪ Scarce & critical skills list ▪ Other interventions

▪ Individual, Task & Strategic ▪ Products/Service needs

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MAJOR CENTRES OF SPECIALISATION PROGRAMME

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13 priority trades (with OFO codes):

641201 Bricklayer 671101 Electrician 671202 Millwright 651302 Boilermaker 642601 Plumber 653101 Mechanic including automotive mechanic 653306 Diesel mechanic 641501 Carpenter and Joiner 651202 Welder 651501 Rigger 652302 Fitter and turner 653303 Mechanical fitter 642607 Pipe fitter

▪ Number of TVET colleges selected as Centres of Specialisation to implement apprentice-ship ▪ Apprentice-ships in each of the priority trades developed

DHET SETA’s Industry (private/public)

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Employers as implementers of learning programmes

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▪ Programmes delivery target groups:

  • Lower level skills
  • Middle level skills (with a large section on artisans)
  • Higher level skills.

▪ Programmes delivery targeted groups:

  • Established companies (all)
  • SMMEs
  • Unemployed youth
  • NGOs, coops, communities, worker education/trade unions
  • Informal sector
  • Local, provincial and national government

NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016

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NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016

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2011 2012 2013

Enrolled Completed Throughput Enrolled Completed Throughput Enrolled Completed Throughput Learnerships 44 050 29 170 66% 50 885 37 158 73% 75 356 38 746 51% Internships 3 654 1 005 28% 6 127 2 195 36% 8 011 2 510 31% Skills Programmes 87 906 87 527 100% 74 587 86 491 116% 92 470 109 481 118% Artisans 24 415 14 023 57% 21 849 15 277 70% 27 670 18 110 65% Total 160 025 131 725 82% 153 448 141 121 92% 203 507 168 847 83%

2014 2015 Over 5 years

Enrolled Completed Throughput Enrolled Completed Throughput Enrolled Completed Throughput Learnerships 77 931 40 891 52% 94 369 43 322 46% 342 591 189 287 55% Internships 12 006 3 663 31% 13 135 3 352 26% 42 933 12 725 30% Skills Programmes 137 880 106 459 77% 123 593 127 144 103% 516 436 517 102 100% Artisans 28 302 14 389 51% 28 640 16 114 56% 130 876 77 913 60% Total 256 119 165 402 65% 259 737 189 932 73% 1 032 836 797 027 77%

Enrolments vs completions: per learning programme

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81% 6% 2% 6% 5% 77% 6% 3% 9% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Black Coloured Indian White undefined Enrolments Completions 54% 43% 3% 50% 46% 4% 0% 10% 20% 30% 40% 50% 60% Female Male Undefined Enrolments Completions

Learnerships Internships

89% 4% 2% 4% 2% 90% 4% 1% 4% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% African Coloured Indian White Unknown Entered Completed 55% 42% 3% 60% 39% 1% 0% 10% 20% 30% 40% 50% 60% 70% Female Male Unknown Enrolment Completions

Enrolments vs completions: per learning programme

NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016

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Overall enrolments vs completions: per financial year

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Totals over 5 years Enrolments 1 041 347 Completions 799 483 Throughput 77%

NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016

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Enrolments over 5 years per SETA

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Included in the annual numbers above are: Learnerships, Internships, Skills Programmes and Artisans

NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016

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Enrolments over 5 years per SETA: per learning programme

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  • 20,000

40,000 60,000 80,000 100,000 120,000 140,000

Learnership Internship Skills Programme Artisan

NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016

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Enrolments over 5 years per SETA: per learning programme (%)

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Learnership Internship Skills Programme Artisan

NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016

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Financial support Skills demand Output SETA’s R50b National Skills Fund (NSF) 12b National/Provincial Dept R19b

Skills supply

FINANCIAL RESOURCES CHANNELLED TO SUPPORT SKILLS DEVELOPMENT 2011 -2016

R81b ▪ Learnerships ▪ Internships ▪ Artisans ▪ Skills programmes ▪ Full qualifications NB: 2013 SETA grant regulation focused more funds on PIVOTAL and as result directed more funds at full qualification programmes.

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FINANCIAL RESOURCES CHANNELLED TO SUPPORT SKILLS DEVELOPMENT 2011 -2016

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▪ Tax incentives developed by National Treasury have added to the available funds for apprenticeships and learnerships. ▪ Dept of Trade and Industry led BBBEE score cards have also contributed. ▪ A shift in focus of NSF has resulted in funds being allocated to bursaries in universities and TVET colleges, artisan training and infrastructure to support delivery of skills in colleges.

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WHAT IS THE IMPACT CHANGES 2011 -2016?

  • 1. Employers (public/private)
  • 2. Individual employees
  • 3. Socio-economic challenges

Impact on:

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IMPACT ON INDIVIDUALS: EMPLOYMENT

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Based on data from 8 SETAs (Meta Review)

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IMPACT ON INDIVIDUALS: EMPLOYMENT

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Whi hile pos positiv ive impact t the there ar are e still till concerns reg egarding high high levels ls of

  • f

une unemplo loyment: t:

NSF Tracer

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EMPLOYMENT IMPACT HAS A GENDER DIMENSION

25 NSF Tracer

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EMPLOYMENT IMPACT ALSO HAS A PROVINCIAL DIMENSION

26 NSF Tracer

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Productivity

▪ In the Employer Survey, when asked about whether training has contributed to an increase in employee productivity, 80.9% of employers stated that it did indicating that: there is a decrease in errors in the workplace (73.3%) as well as an improvement in the quality of product or service delivered (79.3%). This view was confirmed in interviews with organised labour. ▪ An increase in employee productivity typically contributes towards an increase in business productivity and profit margins (though it is acknowledged that there are other factors that impact on the extent of this change)

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IMPACT ON THE FIRMS

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Thank you