SEIFSA President, Norbert Claussen
SEIFSA CEO, David Carson
Guests, ladies and gentlemen
I am delighted to have this opportunity to speak to employers in the metal and engineering industry as this sector is critical to government’s plan for inclusive growth. We have a great deal of work to do together. I have been asked to speak on ‘a radically new approach to post�"school education and training in South Africa.’ Indeed we do need a radical approach from all of us.
I wonder if you would consider the following propositions:
* Government policy and incentives should ensure that employers observe their fundamental obligations for the education and training of their workers
* Individuals have the right to access lifelong learning and training
* Mechanisms must exist to ensure horizontal and vertical mobility and flexibility of access between different levels of the education and training system (general formative, technical, industrial and adult education and training) in the formal and non-formal sectors
* Learners should be able to accumulate credits earned in the same or different learning contexts, which may be accumulated towards the achievement of a national qualification.
Are these radical new ideas? Well, all of them are taken from the 1993 publication: A policy framework for education and training which was published by the ANC prior to the 1994 elections. They capture what was intended to be the integration of education and training. In the policy framework, we committed ourselves to ‘learn both from our mistakes and the successes of others’.
It is my view that one of the mistakes made in the first 15 years of democracy was the separate location of education and training in the Departments of Labour and of Education. What was intended as the significant undertaking of bringing our social partners behind the project of education and training instead resulted in a skills infrastructure which increasingly depended on private provision and neglected the need to sustain dynamic linkages with public colleges and universities to ensure responsiveness to the needs of the economy and of development, and truly integrate education and training.
The policy framework for education and training had several other things to say to which I remain firmly committed, and here I wish to quote directly from the text: In democratic systems of government, policies must be arrived at through open social and political processes which involve all major stakeholders and interest groups, and which citizens feel free to influence. Implementation must be steered by the public service or statutory bodies, but can only succeed if the affected organs of civil society feel that they are partners with a stake in the outcome.
Ladies and gentlemen, that is why I am here today. I believe that the creation of the new Department of Higher Education and Training gives us opportunities to assess the progress we have made in the integration of education and training; to learn from our mistakes and the success of others; and to renew our commitment to the goals we have set ourselves. I also believe that SEIFSA is a major stakeholder with a stake in the outcome of these processes of reflection and renewal, and I invite you to engage and work with us to develop policies which we all believe to be right, necessary and implementable; and to be partners with us in the implementation of these policies. I believe this to be critical in the development of our economy and our society.
I am also here because I know that this sector is critical to our industrial policy. You will all be aware that in January 2007 Cabinet adopted the National Industrial Policy Framework (NIPF). Amongst its core objectives were the long-term intensification of South Africa’s industrialisation process and the promotion of a broader-based industrialisation path characterised by the increased participation of historically disadvantaged people and marginalised regions in the mainstream of the industrial economy. Our priority should be investment into our productive economy (instead speculative activity) supported by appropriate skills development.
In August 2007 Cabinet approved IPAP (1) for 2007/08 which reflected mainly ‘easy-to-do’ actions, or what some might call ‘low-hanging fruits’. The 2007/08 IPAP has largely been implemented. Highlights include finalisation of a revised programme for the automotive sector for 2013 to 2020 the automotive production and development programme, in which SEIFSA has been an active participant. This provides long-term certainty, creating conditions of meeting the target of production of 1.2 million vehicles by 2020. In addition IPAP (1) lowered input costs through the removal or lowering of a range of imports tariffs, particularly on key intermediate inputs into manufacturing. Tariffs have been removed or lowered on products not produced in sufficient commercial quantities in South Africa.
Of course, it was unfortunate that the global economic crisis in 2009 had a significant impact on the national economy and on manufacturing in particular and that many SEIFSA members struggled to remain viable in the face of extreme trading conditions. I know that the past year has been a very difficult one with major job losses in the sector I believe SEIFSA estimates this to have affected as many as 75 000 industry workers in the 10 months between February and December 2009 and a significant numbers of workers were placed on short-time across all occupational categories and skills levels. I understand that you now believe industry employment has stabilised and the shedding of jobs has been arrested.
Government has recognised that deeper structural changes need to be made if we are to sustain a new path of industrialisation. In fact, this mandate has been strengthened under the new administration and was formalised in the President’s State of the Nation Address of 3 June 2009:
“Building on the successes of our industrial policy interventions, a scaled up Industrial Policy Action Plan will be developed.”
The President and this government have also further committed to the development of a new inclusive growth path. Our skills development plans must contribute toward the realisation of this. IPAP II is one such intervention which lays the basis towards the creation of this new growth path.
A process of intensive consultation and analysis led by the Minister of Trade and Industry culminated in a revised IPAP for the 2010/11 to 2012 /13 financial years which has been adopted by Cabinet. IPAP II seeks to address some of the structural imbalances in South Africa’s current growth path. Government is of the view that growth has been driven by unsustainable increases in credit extension and consumption which have not been sufficiently underpinned by growth in the productive sectors of the economy such as manufacturing. This is simply unsustainable and short term thinking at its worst. You will all know that manufacturing accounts for the biggest share of the production sectors of the economy, 54.3 percent in 2008. Within manufacturing itself, there has been a wide divergence of performance.
Through the motor industry development programme, the automotive sector has more than doubled in size since 1994, with an exponential growth in exports but challenges remain in terms of localisation and employment generation. Whilst the natural resource-based sectors have also demonstrated relatively strong growth, and this includes steel and aluminium, the rest of manufacturing has by and large stagnated, although there has been some improvement since 2003 which coincides with the growth in public capital expenditure led by improvements in sectors such as metal fabrication and capital equipment.
Economic growth and development is essential for growth in employment. Growth on its own without a developmental perspective is inadequate. We all know that our employment gains are precarious and have been driven by private credit extension rather than income growth in productive sectors. This has been demonstrated by the large reversals of employment in this sector in the light of the collapse in credit extension as a consequence of the economic crisis. Therefore long-term increases in employment in all sectors of the economy need to be underpinned by higher growth in the production sectors of the economy, led by manufacturing.
We welcome the initiative by labour and employers in the manufacturing industry seeking industrial and economic policy interventions to create decent jobs. However I must express my disappointment that the joint declaration which was released yesterday, signed by the country’s three major trade union federations and a grouping of important South African manufacturers, failed to make any mention about the importance of skills development and the necessity for a skills development strategy to support those initiatives. I intend engaging organised labour on this matter as the creation of decent work and skills development are indivisible.
Ladies and gentlemen, SEIFSA is an important partner in the goal of achieving growth in the productions sectors in order to increase employment. In this partnership we know that there are expectations on both sides and I am sure you have invited me here today to make sure we have a common understanding of what you expect from me and my department. Fortunately, we are developing good working relations with SEIFSA and I have a sense of your expectations. I would like to thank Janet Lopez for her immense contribution to skills development in South Africa. She represents industry in the National Skills Authority which advises me on matters governed by the Skills Development Act, and sits on the Human Resource Development Council in her own right as an acknowledged expert.
I understand that in order for SEIFSA members to play the part that government expects in growing our economy inclusively so that we see growth in employment and the reduction of poverty, this industry needs skilled personnel. I know that SEIFSA and some of its members are investing a great deal in skills development, but I would anticipate that you would like the public sector to do more and to play its role more effectively. If this is your view, I would agree with you. We must and can do more �" working together.
Key priority areas for us, which I know are areas where you have expectations of your government include:
* We need to expand artisan training
* We need a credible and effective NSDS III and SETAs and NSF
* We need to stabilise and strengthen the FET Colleges.
Let me begin with artisan training. South Africa faces a serious skills challenge and this is evident in the decline of artisans in training. The MERSETA figures for the apprentice intake for 1982 to 2010 show a steady decline from over 6 000 in 1993 to an all time low below 2 000 in 2003. There has been a small annual increase since then, but we are only now approaching 1993 levels. One of the priorities of government is to accelerate artisan training and whilst we build on the progress achieved in recent years, we must accelerate progress.
This is one area where the slogan ‘together we can do more’ is entirely appropriate. I wish to acknowledge the strong support of business which has indicated its firm intentions to increase participation in the training of artisans in national priority and scarce skills and has taken forward several major initiatives in partnership with government. Six of the largest companies have established a joint initiative, the Technical Skills Business Partnership (TSBP) to train artisans for the national skills pool over and above their own expansion/replacement demand requirements. The Metal Engineering and Related Services SETA (merSETA), with the strong support of members of SEIFSA, has established the Accelerated Artisan Training Project (AATP) through which, again, companies train more skilled artisans than required for their own replacement and expansion needs. Business Leadership South Africa (BLSA) which has established a focus group to develop a framework for quality artisan training.
Government has increased financial and funding incentives for artisan development, including parity in tax allowances for companies employing learners in learner ships and apprenticeships; and additional funding for artisan development has been made available through both the National Skills Fund and Sector Education and Training Authority (SETA) discretionary grants.
But we do need to do more. We have established a SETA Artisan Development Forum and a SETA Artisan Development Committee to address the quality of artisan training and assessment. We are continuing and will strengthen these initiatives. In addition to addressing funding issues and establishing a benchmark for costing artisan development, these structures are focused on revising the trade-related occupational qualifications and the associated trade tests as well as curriculum and workplace experiential learning requirements. I have now launched the Quality Council for Trades and Occupations (QCTO) and its institutional ‘nuts and bolts’ are being put into place.
One of its first tasks will be to put in place the processes to establish the National Artisan Moderating Body (NAMB) which will ensure the quality of standards for artisan occupational qualifications in both development and assessment. We will also take forward to intentions of the Skills Development Act and establish a platform for the ‘professionalisation’ and ongoing monitoring of artisans in South Africa through the creation of a national register for artisans which will hold the names and details of all persons who have qualified through the relevant trade test and are practising as artisans in the trade in which they have qualified.
We also need to strengthen the governance and management of SETAs and I intend to announce steps to achieve this in the few months. I also know that we need to address the inefficiencies within the national skills fund. We will soon be able to announce the steps we are taking to address the backlogs and inefficiencies so that serious, industry-driven initiatives, and other commendable initiatives, receive funding. I find it unacceptable that the NSF has significant unspent funds whilst worthy projects remain unfunded.
Ladies and gentlemen, many of you would be aware that last month we released the draft framework of the NSDS III 2011/12 to 2015/16 as well as the proposed new SETA landscape for public comment. The proposed new SETA landscape suggests a reduction of the total number of SETAs from 23 to 21 and provides for the creation of six new SETAS. It also proposes the amalgamation of some of the existing SETAs and minor changes to others.
You will also know that we released the new NSDS framework, which amongst other things, seeks to strengthen the partnerships between SETAs, employers and institutions of learning, especially public institutions. We expect immediate work to begin on the first part of developing the sector skill plan, the detailed economic sectoral analysis. This will include an analysis of economic outlooks for the sector and the implications of this for employment and projected skills needs. We expect this to be developed in rigorous conversation with industry at the highest level and with government.
Once the sectoral analysis has been completed and I have finalised the framework of the NSDS3, the sector skills plans will be developed. Again, we will expect the Director-General of the Department of Trade and Industry (DTI) and senior leaders from business and labour to approve these plans. I cannot stress enough that the sectoral skills plan must be credible to the sector, must involve labour, must be aligned to government priorities, must based on sound research and must reflect a thorough understanding of the impact of economic performance projections on skills needs.
I look forward to receiving your comments on NSDS III. The draft proposes a new and innovative programme called PIVOT which provides for increased numbers and relevance of academic, professional and vocational learning that meets the critical needs for economic growth and social development. These programmes generally combine course work at universities, universities of technology and colleges with structured learning at work. This is achieved by means of professional placements, work-integrated learning, apprenticeships, learner ships and internships. Linked to this is the need to improve the interface and articulation of programmes at universities, universities of technology, colleges and SETAs. There must be improved synergy and closer working relationships amongst all these institutions.
The third area in which we need to make a commitment to you to make a difference is in the performance of the FET Colleges. This has been recognised as a major challenge. SEIFSA was present at the Further Education and Training Round Table of 9 April 2010 which brought together all key stakeholders in the FET college subsystem to engage in a rigorous debate informed by an analysis of the challenges facing the colleges.
It was agreed that the challenges facing the colleges are such that they need a concerted and intensive effort from all stakeholders and a commitment to urgent progress was made. A high-level Steering Committee, supported by focused task teams, has been established and work has begun to prepare for a broader FET Summit in August 2010 at which a set of short-to medium-term proposals and coasted action plans for longer-term work which will be presented. Business is an active participant and we are grateful that highly experienced individuals have made themselves to assist us and several of them are associated with SEIFSA.
I am making firm commitments today, but we also will ask more of employers. We strongly believe that while the numbers and quality of graduates from FET and higher education institutions need to increase, the real bottleneck is the availability of quality, structured workplace experience that is aligned with the theoretical and practical curricula.
I must therefore appeal to employers with a proven track record in engineering-related artisan development to open up their workplaces and take on additional learners in artisan and trade-related apprenticeships, learner ships and structured work experience programmes to enable them to meet the requirements for trade testing and achieve artisan certificated status. I cannot emphasise this enough. I must appeal to you to assist us in revitalising the FET Colleges so that they are truly fit for the purposes that we expect from them.
Given the high number of young people who are not in education, training or employment and the inappropriate structure of the post-school system with a too small college sector, we must increase the enrolments at FET Colleges. We do not want to expand enrolment until we have consolidated the base, and this means addressing the quality challenges. But expansion is urgent. Public FETs clearly have the widest reach in terms of geographical reach in the most remote areas. The 50 colleges, located at more than 250 sites means that they are most likely catchment to those that are least likely to be exposed to quality skills development. We invite you to be our active partner in strengthening these institutions.
Much as we know that we have a huge demand for artisans and other low to mid level skills, we however need to accelerate the training of technicians and engineers from black communities. To this end, I want to work together with you and the professional associations to identify and remove blockages to access and success at this level of skills. We cannot perpetually blame the schooling system for not producing well prepared matriculates but we need to ask ourselves what we can do with the matriculates we have to increase the supply of skills at this level as well. We believe that the creation of the Department of Higher Education and Training to focus on increasing access to post school opportunities provides the platform needed to address skills shortages at all levels. Hence there is the need for high articulation between workplaces, FET colleges, universities of technology and universities in general.
Let me wish you well in your deliberations over the next two days and we look forward to the outcome of your discussions especially in the areas I have expanded on. We also look forward to a strengthened relationship between SEIFSA and government as we develop the education and training landscape in South Africa.
I thank you.
Enquiries:
Ranjeni Munusamy
Tel: 012 312 5555
Cell: 072 571 2812
E-mail: munusamy.r@dhet.gov.za
Issued by: Department of Higher Education and Training
11 May 2010
