TRANSPORT EDUCATION AND TRAINING AUTHORITY

TRANSPORT EDUCATION AND TRAINING AUTHORITY
PRESENTATION TO THE TRANSPORT PORTFOLIO COMMITTEE
2 April 2003
By Dr Piet Bothma – Chief Executive Officer

INTRODUCTION: SETA ESTABLISHMENT

After experiencing various practical problems with South Africa’s Education, Training and Development Legislation, Policies and Strategies a Global Research was done to benchmark Education, Training and Development Legislation, Policies and Strategies on an International basis. These findings were documented, work shopped and discussed with all possible interested parties in South Africa.

The result of International Benchmark and consultation with stakeholders in South Africa was the SAQA Act, which provided the framework to a high quality Education and Training Strategy. This legislation was complemented by the Skills Development Act (SDA), which provided the framework to implement the SAQA Act.

These two legislation pieces were then complemented with the Skills Levy Act, which provided the resources to ensure the implementation of one of the best Education, Training and Development Strategies in the world to ensure the development and improvement of skills that enhances global competitiveness, quality of product and services as well as social economic development within South Africa.

SETAs were established to oversee the implementation of these three core legislative pieces to enhance Skills Development in South Africa.

SKILLS LEVY ACT

The collection of levy funds (1% of payroll) are managed and controlled by SARS, which is the collecting agency for skills levies. 80% of these funds are transferred to DOL and 20% transferred to National Skills Fund (NSF).

After receiving the funds from DOL the SETA has to follow the criteria set out in the Funding Regulations in line with the PFMA to ensure effective and efficient management of skills levy funds.

Each SETA has to ensure their ongoing operating costs are covered within the 10% of total levies paid by stakeholders. SETA’s also have to ensure that they manage an effective and efficient disbursement of 70% of the levies through a system that is transparent and justified.
The funds not committed or disbursed in the respective year become surplus funds. These funds become part of the SETA discretionary grant pool of funds to be utilised by the respective SETA to add value to Human Resources Development in the Sector. These discretionary funds have three funding windows within which the SETA can approve projects/programmes/ activities. The three windows are:

Learnerships
Skills Programme
Strategic

SKILLS DEVELOPMENT IN THE TRANSPORT SECTOR

The Transport Sector is a very diverse Sector covering the four modes of transport namely, Air, Sea, Rail and Road, which include transport via pipelines as well as the support functions to ensure the effectiveness and efficiency of the national economy. TETA established eight Chambers to provide high quality services to this diverse Sector.

The Chambers are:
Aerospace Chamber
Forwarding & Clearing Chamber
Freight Handling Chamber
Maritime Chamber
Rail Chamber
Road Freight Chamber
Road Passenger Chamber
Taxi Chamber

According to the latest information from SARS, a total of 8 053 companies in the Transport Sector are paying levies to SARS. The number of companies registered with the eight chambers of TETA are 6 833. According to the proxy method 4 188 employ less than 49 people. The total amount of people employed by formal business 258 000 – non-formal part of Taxi, Small Boat and SMMEs employment is ± 200 000.

The Transport Sector can only be as good and effective as the people employed in the sector. It is therefore important to all employers in the Transport Sector to cultivate a culture of high quality life long learning in the workplace to stimulate productivity, economic growth and job creation. It is within this context that the Transport Sector stakeholders in South Africa embraced the Skills Development Legislation and made skills development an integral part of their business development strategy.
The number of companies that actively participate in the National Skills Development Strategy (NSDS) increased by 107% in the Transport Sector over the last 3 years. Training costs spent by companies actively participating in the National Skills Development Strategy decreased by 20% from 2000/1 to 2001/2002 whilst TETA’s disbursement of grants increased by 430% during the same time period. The number of Learners benefiting from training increased from 92 000 to 134 011 during the same time period.

Chairperson: TETA established effective Policies, Procedures and Systems of Corporate Governance and Administrative Framework – which I am not going to discuss but to share some of TETA’s achievements and challenges I will take the house through the National Skills Development Strategies, five objectives, as set by the Minister of Labour.

OBJECTIVE 1:
DEVELOPING A CULTURE OF HIGH QUALITY LIFELONG LEARNING

TETA Stakeholders agreed that the first step in developing a culture of high quality lifelong learning is to facilitate the development of a framework of high quality learning through a delivery system that enhances the level of skills in the workplace and the Transport Sector at large. This was done by TETA by being accredited as an Education Training Quality Assurance Body during 2001.

TETA then put in place a development strategy to support training providers to achieve accreditation status and more than 103 providers benefited from this approach in the last two years. Up to date 51 of these providers achieved provisional accreditation.

134 SDF’s were trained towards a formal qualification and 425 shop stewards were trained by TETA to understand their role within the SDA.

TETA has further supported employers and service providers in the development of 938 assessors. TETA also engaged more than 16 subject matter experts to assess and develop curricula and course materials.

TETA also integrated National and International Regulatory requirements regulated by the South African Maritime Safety Authority (SAMSA) and the Civil Aviation Authority (CAA) as part of the formal qualification process, quality assurance and accreditation of programmes. The TETA Council and SAMSA Board approved the signing of a Memorandum of Understanding (MOU) in this regard. The Task Team set-up to finalise the proposed working agreement between CAA and TETA is in the process of finalising the proposal for the MOU between CAA and TETA.

Although the official target for workers to have at least NQF 1 Qualification by March 2005, is set at 70% as the first success indicator, up to date 74% of formal workers in the Transport Sector are in possession of a least a NQF 1 Qualification. 11 268 Workers participated in ABET up to NQF 1 learning over the last 2 years and 5 354 completed a NQF 1 Qualification.

By March 2005, a minimum of 15 per cent of workers must have embarked on a structured learning programme, of which at least 50 per cent must have completed their programme satisfactorily.

The total number of workers benefiting through structured learning programmes in the Transport Sector during the last two years was 226 011 (50%) and the successful completion rate of the training is being assessed through the TETA monitoring strategy, which assess the impact that Human Resources Development (HRD) has on business success as well as the placement of unemployed learners.

By March 2005, an average of 20 enterprises (to include small, medium and large enterprises) and at least five national government departments, must be committed to, or have achieved the Investors in People Standard.

TETA has been selected as a pilot site for the implementation of the Investors in People (IiP) Standards. Up to date 20% of TETA staff was developed into the next level of employment within TETA.

We were also selected as part of the role out strategy on IiP where we selected 12 companies and a further 4 companies committed themselves to implement Investors in People standards. Therefore a total of 16 companies of which 2 small, 4 medium and 10 large will implement IiP standards with the support and guidance form TETA and the IiP Project Team during 2003/2004.

OBJECTIVE 2:
FOSTERING SKILLS DEVELOPMENT IN THE FORMAL ECONOMY FOR PRODUCTIVITY AND EMPLOYMENT GROWTH

TETA Stakeholders approved the development of a comprehensive Qualifications Matrix for the Transport Sector that promote an Intermodal Strategy, enhancing quality of services and productivity in the Transport Sector.

TETA benchmarked this concept with a range of countries. Expertise, know-how and funds were sought from the South Africa Netherlands Transport Forum to finalise this project.

The comprehensive qualification matrix supports recognition of prior learning, increase flexibility and mobility of qualifications and learner achievement within the Sector. Provide clarity and support to Career Pathing; support the employer with performance management as well as task management in the context of multi-tasking and multi-skilling. The qualification matrix also indicates what qualifications; unit standards are cross-sectoral or generic.

By March 2005, at least 75 per cent of enterprises with more than 150 workers must be receiving skills development grants and the contributions towards productivity and employer and employee benefits are measured.

To date 73% Enterprises within the Transport Sector employing more than 150 workers are receiving skills development grants.

By March 2005, at least 40 per cent of enterprise employing between 50 and 150 workers must be receiving skills development grants and the contributions towards productivity and employer and employee benefits are measured.

Currently, 30% Enterprises within the Transport Sector employing between 50-150 workers receiving grants

By March 2005, Learnerships are available in every sector.

One of the key deliverables to develop learnerships is the availability of Unit standards. The challenge that TETA faced in delivering on this objective was to manage the constraint in actual delivery of unit standards. The TETA Council took a decision to support Standard Generating Bodies (SGB’s) in the development of unit standards and are funded from the strategic window within the discretionary grant funds. TETA actively supports 5 SGB’s to develop unit standards within the Transport Sectors comprehensive qualifications matrix. This fast tracked the development of learnerships to a large extent.

The status of Learnerships in the Transport Sector is as follows:
9 Registered Learnerships
13 Learnerships are in development / due for feedback from the Department of Labour on registration status
11 apprenticeships are in the process of transformation from apprenticeship to learnerships

By March 2005, all government departments must assess and report on budgeted expenditure for skills development relevant to Public Service, Sector and Departmental priorities.

The National Department of Transport is not just contributing to the skills levy paid to the TETA; their HRD strategy is integrated with TETA’s strategy.

There have been various projects and Roadshows implemented jointly by NDOT and TETA. The NDOT also submitted Workplace Skills Plans (WSP) to TETA and timeously reported on activities within the WSP.

TETA has also signed various Memorandums of Understand (MOUs) with Provincial Department of Transport to support the key deliverables within the Sector Skills Plan.

OBJECTIVE 3:
STIMULATING AND SUPPORTING SKILLS DEVELOPMENT IN SMALL BUSINESSES

By March 2005, at least 20 per cent of new and existing registered small businesses to be supported in skills development initiatives and the impact of such support to be measured.

The challenge for TETA was to understand the diversity of needs and demands of small businesses in the Transport Sector, as well as the existing infrastructure to support small business in South Africa.

After consultation with TETA stakeholders, TETA Council approved a proposal to the Minister of Labour and Minister of Finance to implement a levy system for Small Boat Owners. TETA received the support from the respective ministries to implement a levy system for small Boat Operators in the Fishing Industry.

The levy system proved to be very successful and TETA launched a Pilot Programme for Small Boat Operators that benefited 1819 workers in the Fishing Industry. TETA also developed 17 community-based providers to execute this project. These community providers include 4 community co-ordinators, which facilitated and co-ordinated the integration of service delivery at the community level.

With the support from the Minister of Transport, TETA consulted with the Taxi Industry. After clarifying the representation within the Industry, TETA established a Taxi Chamber to ensure proper consultation within the Industry.

TETA developed a holistic strategy for SMMEs in the Transport Sector and signed a Memorandum of Understanding clarifying roles and responsibilities with Ntsika, various SMME Forum, other SETAs (Services SETA), as well as International Organisations to ensure effective and efficient delivery of integrated development services to SMME’s in the Transport Sector.

TETA Council approved a pool of funds (R10 million) out of discretionary grant to benefit SMMEs.

TETA is confident that this strategy will be able to improve quality; productivity and economic growth for SMME’s and these key deliverables will complement job creation in the Transport Sector. TETA aims to support at least 70 % (2 930 companies) SMME’s in the Transport Sector through this strategy by March 2005.

OBJECTIVE 4:
PROMOTING SKILLS DEVELOPMENT FOR EMPLOYABILITY AND SUSTAINABLE LIVELIHOODS THROUGH SOCIAL DEVELOPMENT INITIATIVES

After assessing the need to develop the informal Taxi and the Fishing Industries, TETA submitted a proposal to the National Skills Fund (NSF) to reach out to rural areas and Historically Disadvantaged Individuals (HDI) to develop and implement learnerships for these industries, which will improve safety aspects within the respective industry and enhance the quality of service and products within the Taxi and Fishing Industry.

TETA had a slow start with this project as the first draw down of National Skills Funds was received in July 2002.

By March 2005, 100 per cent of the NSF apportionment is spent on viable development projects.

TETA received two drawdowns to date with the third due in March 2003.

TETA implemented Community based Programmes for Small Boat Owners in Kwazulu Natal; Western Cape; Eastern Cape and Saldannah Bay; where 1362 Small Boat Operators benefited through structured skills programmes in the following disciplines:
Maritime Safety
Adult Basic Education and Training (ABET)
Fish Processing
Fish Harvesting
Basic Legislation
Business Skills

Chairperson: I think it is appropriate to mention that one of the unemployed learners that attended this programme in Port Elizabeth was employed as a crewmember. On 3^rd March the crew went out to sea where the boat caught alight and this member saved 12 crewmembers’ lives.
After prioritising the needs of the Taxi Industry TETA finalised the procurement of service providers to render training in the following disciplines to learners in the Taxi Industry

Adult Basic Education and Training (ABET) – (70 Learners per Province – total 630)
Professional Driving Skills (25 Learners per Province – total 225)
Customer Care for Rank Managers (20 Learners per Province – Total 180)
Business Management for Owner/Operators (20 Learners per Province – Total 180)

The total beneficiaries of this phase of the project will be 1215. The learners will represent all provinces in South Africa. TETA further budgeted for an additional 1200 learners in the Taxi Industry and 1700 in the Small Boat Fishing Industry to benefit through structured learning by the end of 2003/2004 financial year

TETA further signed a Memorandum of Understanding (MOU) with 5 Provincial Departments to align their development strategy for the Taxi Industry with TETA’s Taxi Chamber Skills Plan. Together the 5 Provinces committed an additional R4 million and NDOT R2 million to Education and Training in the Taxi Industry.

As part of TETA investment in training TETA also implemented an aggressive HIV/AIDS Project for the Road Freight Industry in partnership with the National Bargaining Council (NBC). With support from the Minister of Transport this project was reviewed and realigned to form the basis of a HIV/AIDS strategy for the Transport Sector.

The Minister established a National Transport HIV/AIDS Co-ordinating Committee (NTHCC), which has strong representation from TETA stakeholders, and is chaired by TETA. TETA Council committed R3.2 million to HIV/AIDS projects, which funded 18 HIV/AIDS Projects up to date and the NBC employed 3 HIV/AIDS trainers on a 3-year contract, which are managed by TETA, to provide HIV/AIDS training to stakeholder companies within the Transport Sector.

4.2 By March 2005, the impact of the NSF will be measured by project type and duration, including details of placement rates, which shall be at least 70 per cent.

Up to date it was only possible to measure the successes within the Pilot Project for Small Boat Operators with two certificate ceremonies, where the Minister of Transport was the keynote speaker and presented the learners with their certificates. The success rate for the pilot project was 80%.

OBJECTIVE 5:
ASSISTING NEW ENTRANTS INTO EMPLOYMENT

By March 2005, a minimum of 80,000 people has entered Learnerships.

Through the eight Chambers of TETA, we facilitated the implementation of seven learnerships where 2356 new entrants / unemployed learners will benefit from TETA Grant System and commitment from employers in the Transport Sector in availing their workplace as a place of learning.

To date 315 learners successfully completed their learnerships.

By March 2005, a minimum of 50 per cent of those who have completed Learnerships are, within six months of completion, employed, in full-time study or further training or are in a social development programme.

After implementing learnerships for the last 18 months, it shows that 85% of learners completing a learnership get formal employment within six months in the Transport Sector.

TETA is presently disbursing more than 85% of the total levy income. For the last two years TETA committed its’ total amount of surplus funds to discretionary grants and strategic project. TETA is presently managing 357 discretionary grant projects at company level and 87 strategic projects at TETA level. For the last two years TETA Council approved a total value of R62 million for discretionary grant projects and R24 million for strategic projects.

TETA BUDGET 2003/2004

Chairperson: In conclusion I would like to provide this Committee with an overview of TETA’s Budget for 2003/2004 financial year.

TETA overhead costs to provide strategic leadership and support to the Transport Sector as well as to ensure a framework of high quality learning provision and to ensure high quality delivery to all Transport Sector Stakeholders on a national basis are R25 million.

To execute structured Education, Training and Development Programmes that will enhance productivity, quality of services and products which will lead to global competitiveness in the Transport Sector. The implementation budget are R115 million which will be disbursed to companies which implement Education, Training and Development Programmes to enhance their business development strategy.

Furthermore TETA has identified strategic projects in the Transport Sector that need to be prioritised to enhance development in areas where there are a lack of support, infrastructure, processes and systems, which can be utilised to compliment Human Resources Development. TETA has budgeted R16 million to role out these projects. Within TETA budgeted income, there are a shortfall of ± R10 million to oversee the implementation of these strategic projects. The shortfall is mainly for the Taxi Industry and the Small Boat Operators in the Maritime Industry, as the contribution to the skills levy in both these areas are very low and in some cases non-existent.

In the Taxi Industry the projects will be focused to support and compliment the recapitalisation programme.

These projects are:

ABET Training
Professional Driving Learnership
Business Management Skills

Small Boat Operators Project will focus to enhance Safety-at-sea.

Chairperson:

With my relationship with the Minister of Transport, NDOT and TETA always see how we could compliment these priority areas with support from NDOT. We also seek funding from other sources from time to time. I hereby request the Transport Portfolio Committee to see if funds can be allocated to TETA to oversee the implementation of these important projects.

In conclusion – Chairperson:

I would also like to invite the Committee members to visit TETA and its Chambers, as well as some of our projects, to get a feel of what really happens at grass root level regarding Human Resources Development. I also want to commit myself and TETA to work closer with this Committee in achieving our goals.

/ms(presentation – transport portfolio com – 31 march 2003 - DOL parliament)