occasion of the Shutdown Network Forum learnership graduation ceremony
7 march 2006
Programme Director
The Chairperson and members of the CHIETA Board present here today
The CEO of CHIETA and members of your staff
Senior Managers and staff of Shutdown Network Forum
Our most important distinguished guests, learners graduating today
Ladies and gentlemen!
I am delighted to be part of yet another important national milestone of the
Chemicals Industries Education and Training Authority (CHIETA) and Shutdown
Network Forum (SNF) Learners graduation.
During May 2004, at the Sandton Convention Centre, I announced Shutdown
Network Forum as one of the 21 Employment and Skills Development Lead Employers
to participate in a very innovative pilot project. Our intention was to test
the concept of a host employer in facilitating the intake and training of
learners in learnerships amongst small employer organisations without the
necessary training infrastructure. This project was in response to an outcry to
remove administrative burden associated with learnership from individual small
and medium enterprises (SMEs) and to enable them to contribute in equipping our
young people with skills.
The project was also aimed at exploring alternative ways of facilitating the
participation of rural young people in learnerships through the use of these
host employers.
I am glad to note that Shutdown Network Forum has succeeded in attracting
and mobilising SMEs within the chemical sector to participate in this pilot
project. Todayâs graduation ceremony is also proof that the concept has merit
and that with a proper policy or regulatory framework; we can go a long way in
maximising our learnership numbers through SME participation.
You may all be aware that the government has committed more than R370
billion over the next three years towards social and economic massive
infrastructure such as roads, schools, and municipal infrastructure. Transnet
and Eskom are also planning large scale investments in transportation and power
generation infrastructure.
The 2010 World Cup also requires much needed preparations through upgrading
and investment of infrastructure in many cities. In addition, accelerated
economic growth will also result in increased technology which requires new
skills and competencies. Within the chemical sector, South Africa is faced with
a challenge of meeting international standard on safe fuels, and the need to
develop our own alternative sources of fuel to lessen dependency on the global
world oil market.
Since the unveiling of the Accelerated and Shared Growth Initiative for
South Africa (Asgisa), in all corners of South Africa, people are beginning to
seriously engage in skills development initiatives and debates. In
KwaZulu-Natal in particular and other provinces, further education and training
(FET) and skills development colleges are mushrooming everywhere. This is
happening despite the increasing pressure on education and training providers
to improve the quality of their programmes and to respond to the needs of
various employers and learners. Some employers have repented and no longer
require a lecture on how skilled workers contribute to their competitive
advantage and to the quality of their goods and services.
Thousands of unemployed young people are eager to engage in learnerships,
they are prepared to learn, work and earn and contribute towards the growth of
our economy and the social status of their communities. I am happy that skills
development has become part of our everyday language. I am happy that a large
number of South Africans are now determined to be part of the skills
revolution.
The task of managing and developing scarce skills in the construction and
maintenance trades pertinent to CAPEX projects to be constructed between 2006
to 2010 requires extraordinary levels of facilitation and integrated effort
that transcends normal channels of communication and cooperation between sector
education and training authorities (SETAs), FET and higher education and
training (HET) providers, business, trade unions and government departments if
we are to realise the governmentâs accelerated shared growth vision of
Asgisa.
Programme Director,
It is my belief, that the result of this project is yet another milestone
and a contribution towards the objectives of the Growth and Development Summit,
Asgisa and the National Skills Development Strategy aimed at curbing the
problem of unemployment amongst young people and to re-direct their energies
towards economic growth of our country. I want to challenge today, those
companies within the chemical sector, known for requesting government permits
to import skilled labour because of âlocal skill shortagesâ to consider the 522
learners that will be graduating today for employment.
* We have spent a lot of chemical industry money in this project,
* we have made a huge investment in these young people,
* they are now skilled in programmes designed and conducted by the chemical
industry,
* these programmes were designed by a SETA controlled by the chemical industry
employers and unions, in an attempt to respond to intermediate skills shortages
identified by the chemical industries.
Programme Director, together we still face a big challenge to open up more
placement opportunities within the world of work for young people and people
with disabilities to be accommodated in learnerships, apprenticeships and
internships. I know that some people have attributed this to economic downturn,
lack of incentives, trade union unwillingness to cooperate and so on.
Well I am not sure what excuses they will give now because currently our
economy is growing and it is anticipated that it will continue to grow further
when ASGISA projects are implemented.
As for the incentives, Government has during this yearâs annual budget
allocation, also extended the Learnership Tax Incentive from September 2006 to
September 2011 as part of our commitment to skills development and recognition
of the need to provide tax incentives to the private sector. The Tax Rebate
amount was increased from R25 000 to R30 000 when a company takes on an
unemployed learner and another R30 000 at exit level when a leaner qualifies.
The amount for a formerly employed learner participating in these structured
programme also increased from R17 500 to the lesser of 70% of her annual salary
or R20 000. I also know that companies qualify for various amounts from SETA
mandatory grants when they enrol both employed and unemployed learners in
learnerships, apprenticeships, internships or offer scare skills bursaries.
Within the public service, the National Treasury made provision for
government departments to budget for learnerships or use savings in their
personnel budget to fund these programmes.
My Department has also allocated a further R106 million under the National
Skills Fund to the Public Service SETA to fund learnership programmes within
the public service while they sort out some of those administrative
technicalities. The incentives are also extended to learners participating in
our programmes as they are paid a discounted wage or allowance as they learn.
How much more should we be putting into the system, are these incentives
insufficient? I would welcome further suggestions in this regard.
As for trade unions, I recognise the fears and uneasiness that is emerging
as more and more young people enter the various workplaces as part of these
learnerships and apprenticeship programmes. There are genuine fears that these
young people are there to take your members jobs as they are more educated,
paid low wages and maybe also not trouble makers as they are not unionised or
very ignorant. There are also unscrupulous employers who have exploited these
programmes and are cashing on the system and using learners as a cheap labour,
confirming fears of some of these unions.
The most important thing to remember is that those young people are your
daughters and sons, your cousins and nephews. Annually an additional 350 000
matriculants enter the labour market and nobody is going to give them the
necessary workplace experience unless we cooperate on these matters.
Trade unions control 50% of all SETA seats and don not have to campaign for
votes to retain these percentages, these are guaranteed in the skills Act.
These young people are potential trade union subscription payers and future
leaders if they are given proper guidance. Chasing them out of factories
because of âtheir ignoranceâ of labour matters when you have not supplemented
their learning with trade union education is not a solution. I will also not
tolerate any exploitation of learners under the disguise of learnerships by an
employer.
I therefore challenge all employers and labour federations including your
respective affiliates to assist us in dealing with those unscrupulous employers
and those despondent trade union members who may become a threat to this
innovative programme.
To the Shutdown Network Forum and CHIETA, thank you very much for embracing
the Department of Labourâs call to invest in our people and thank you for
taking the challenge to mobilise SMEs within the chemical sector to assist us
in changing lives and changing our communities. Thank you to all chemical
sector SMEs and education and training providers for providing these learners
with an opportunity to learn, I hope others in the chemical sector will take a
leaf from your good book and extend this gesture as we enter the next phase of
employment and skills development agencies once the National Skills Authority
(NSA) has concluded the necessary regulatory framework.
Let me also take this opportunity to congratulate in particular, the 522
learners that will be receiving their certificates in the various categories.
Your determination in completing this programme shows learner commitment to the
cause of the skills revolution. Every one of you has the potential to achieve
anything you want in life.
You were born with many talents that you do not even know you have. You are
the reason for our presence here today and you all deserve applause.
As you leave this room to celebrate your achievement, please consider
todayâs graduation as a first step towards the right direction. I believe you
can go very far if you are prepared to pursue some of these programmes to the
end.
As R Kelly sang: "I believe I can fly. I believe I can touch the sky. I
think about it every night and day. Spread my wings and I fly away. I believe I
can soar, see me running through the open doorsâ. You can soar if you believe
in yourself.
Education and training will bring the best out of you and enable you to
fulfil your potential, achieve your goals and live your dreams. I believe I can
fly.
Let me also thank on your behalf, your families, who have taken the efforts
and did everything in their power, to support you throughout your learning
process. I am sure they also stand to benefit from your achievements.
Congratulations and well done!
I thank you!
Issued by: Department of Labour
7 March 2006
