Federation on Unions of South Africa (FEDUSA)

1. INTRODUCTION
The nature of human resources development in South Africa has a lack of career paths offered to workers and as a result has a profound effect on the development of the economy and society.

The challenge faced is one of ensuring that the potential of South Africans are realized. Human resources is about people and should remain the focus of skills development.

The women and youth of South Africa bear the brunt of the injustices of human resource development.

The challenge lies in the capabilities, abilities, knowledge and know-how which will result in the improvement of standards of living and quality of life. The process involves the acquisition of, and development of knowledge and skills necessary for occupational tasks as well as the fulfillment of social, cultural, intellectual and political roles within a democratic community.

2. EDUCATION AND TRAINING IN SOUTH AFRICA
The development of an integrated system of training and education should provide equal opportunities to all, which will enable South Africa to develop cultures, society and economy. The development of both the full potential of the individual and the community should be based on the principles of democracy, non-racism, non-sexism, equality and equity. The development of education and training in line with national standards form the basis of the national human resource development strategy.

3. INTERNATIONAL PRECEDENCE
The ILO Recommendation no.150 applies to the vocational guidance and vocational training of young persons and adults for all areas of economic, social and cultural life and at all levels of occupational skill and responsibility.

For the purpose of this Recommendation, the qualification of the terms "guidance" and "training" by the term "vocational" means that guidance and training are directed to identifying and developing human capabilities for a productive and satisfying working life and, in conjunction with the different forms of education, to improve the ability of the individual to understand and, individually or collectively, to influence working conditions and the social environment.

The Skills Development Bill should take due account of -

a) employment needs, opportunities and problems, both regional and national
b) the stage and level of economic, social and cultural development
c) the mutual relationships between human resources development and other economic, social and cultural objectives.

All employment legislation should encourage and enable all persons, on an equal basis and without any discrimination whatsoever, to develop and use their capabilities for work in their own best interest and in accordance with their own aspirations, account being taken of the needs of society.

The legislation should also encourage undertakings to accept responsibility for training workers in their employment. The legislation should -

provide opportunities to qualify for advancement to higher levels of skill and responsibility.
cover technical and other training and work experience for the persons concerned
take account of the abilities and interests of the persons concerned as well as of work requirements.

4. PROMOTION OF EQUALITY OF OPPORTUNITY OF WOMEN AND MEN IN TRAINING AND EMPLOYMENT
The promotion of equality of opportunity of women and men in employment and in society as a whole is crucial to the human resource development in South Africa. The changing of traditional attitudes regarding the work of women and men in the home and in working life should be addressed in more detail.

The promotion of equality of access for girls and women to all streams of education as well as the promotion of further training for girls and women to ensure their personal development and advancement to skilled employment is of crucial importance.

a) In the formal sector only a quarter as many women hold jobs as men. The high unemployment and the difficulties facing the informal sector hit women in particular severely. Women are discriminated against in areas such as wages, job security, specific needs of women workers and employment opportunities.

5. LACK OF SKILLS
The lack of skills forms a major obstacle in the development of a stable modern economy able to support a decent standard of living for all South Africans.

Education cannot be divorced from the manpower and economic needs of South Africa. The provision of skills which are not in demand and which can barely contribute to economic development and empowerment.

A balance is needed in the South African Education and Training System, which fails to provide students with skills necessary for development. The problem/concern with the South African education system is the mismatch between the skills produced and the need in commerce and industry. The introduction of the Skills Development Bill will ensure a career – orientated education and training system with skills relevant to the needs of industry. The provision of job specific skills through the needs of industry will deliver a product, a person with general work thinking, social and communication skills and who has achieved a proficiency within a certain industry. The main problems, which must be addressed, include:

• The incapability of the current system to provide "workspace" for all learners.
• The lack of high – quality basic education and training.
• Rising unemployment
• The influence of too high expectations regarding education should also be addressed.

6. FEDUSA RESERVATIONS ON THE SKILLS DEVELOPMENT BILL
As reflected throughout the negotiations process FEDUSA has four main areas of reservation in connection with this bill. These are 6(1) Composition of National Skills Authority and the voting status of providers, 6(2) Financing of Skills development, 6(3) Demarcation of Sector Education and Training Authorities, and 6(4) Mechanisms to review the levy (Annexure B).

6.1 Composition of National Skills Authority and the voting status of providers
FEDUSA would strongly object to section 6 (2) (e) on the ground that the social partners need parity in voting. Effective consultation between the representatives of the government, employers and employees will ensure effective decision-making.

The amendments that FEDUSA hereby propose are as follows:

6 (2) (e) four non-voting members appointed by the Minister to represent the interests of education and training providers

6.2 Financing of Skills development
Section 27(2)(a) and 27(2) (c)

FEDUSA would strongly oppose to the inclusion of this section, as there is no determination of the amount of money that Government is putting forward for funding. FEDUSA will only agree to a skim-off based on a rand for rand basis where for every rand that business is contributing to the fund Government will put up the same amount of funding towards the development of skills.

The amendments that FEDUSA hereby propose are as follows:

27(2) (c) money appropriated by Parliament for the fund as determined by the Minister upon consultation and agreement within NEDLAC.

6.3 Demarcation of Sector Education and Training Authorities
FEDUSA strongly object to a closed sector list and does not agree with the National Skills Authority taking decisions on the sectoral demarcation. FEDUSA strongly suggest that the current sectoral demarcation process within NEDLAC should be utilized to establish the sectors and only then can SETA's be established in accordance with the NEDLAC process. The NEDLAC working group was unable to agree on a specific model to use as a guideline when demarcating a sector.

FEDUSA argues that it is not feasible and in fact impossible to come up with "numerous clauses" (closed list of sectors). The basis for any debate about sector classification should be the ILO's International Standard Industrial Classification of all economic activities.

FEDUSA also proposes that the following factors should be accommodated and considered when looking at an existing or possible future sector:

* The existence of a council and the sphere of functioning in terms of national and regional
* The involvement of provident and pension funds as well as medical aid funds
* The nature of the business
* Legislative restrictions
* The degree of consensus in forming of the sector in question
* Existing collective agreements
* Allocations or divisions by the Department of Trade and Industry
* Any other relevant information

To define any economic sector realistically, a number of criteria should be applied which can act as a test for sector definition. These criteria are:

a) The linkages and homogeneity of the processes used in producing goods or services. This of course includes the common technologies used and the human resource skills and competencies required.
b) The historical foundation of vocational education and training in the sector.
c) The homogeneity of the nature of the products or services provided.
d) The current vocational education and training requirements of the sector.

As an example FEDUSA would like to refer you to the case study of the Printing, Newspaper and Packaging Industries as a standalone economic sector. (Annexure A).

6.4 Mechanisms to review the levy
FEDUSA believes that the Bill should make provision for the increase of the levy-grant over a period of time which is currently not adequately catered for in the present form before this committee.

7. Conclusion and Recommendations
FEDUSA hereby appeals that our recommendations are taken in consideration when considering this bill as the impact on the sectors and the human resource development are far reaching.

In conclusion FEDUSA would like to thank the portfolio committee for the opportunity to submit our views during the public hearings on this Bill.

Annexure B
SUMMARY OF FEDUSA PROPOSED AMENDMENTS TO THE SKILLS DEVELOPMENT BILL
(B81-98)

Composition of National Skills Authority and the voting status of providers (Section 6 of the Bill)

Delete "voting" in section 6(2)(e) and replace with "non-voting"

2. Financing of Skills development (Section 27(2)(c) of the Bill

We propose the amendment of section 27 (2) (c) to include the NEDLAC process. This section would then read as follows:

27(2) (c) money appropriated by Parliament for the fund "as determined by the Minister upon consultation and agreement within NEDLAC."