040810w&rseta

WHOLESALE AND RETAIL SETA

Skills Development for Economic Growth

% Increase in participating companies

Year 2001/02	Year 2002/03	Year 2003/04
94.49% 563 to 1095	179.27% 1095 to 3058	146.83% 3058 to 7548

% Increase of registered organisation in the sector

Year 2000/01

17 396 org.

Year 2001/02

27.98%

22 263 org.

Year 2002/03

26.23%

28 103 org.

Year 2003/04

23.94%

34 830 org.

Year 2004/05

11.89%

38 972 org

Number of employees trained

	AFRICAN			COLOURED			NDIAN			WHITE
Occupational group	M	F	D	M	F	D	M	F	D	M	F	D
Senior officials and managers/ owner managers	7509	4863	10	2237	3044	1	2008	1333	3	9093	7853	43
Professionals	215	140	1	171	184	0	128	105	1	775	725	5
Technicians	838	517	4	741	732	2	279	658	6	4690	2491	29
Clerical/ administrative workers	12317	19160	12	5467	15468	36	1113	2263	11	1424	5817	103
Service workers	24527	26536	86	6026	10364	31	3281	3792	100	7108	8255	72
Agricultural and fishery workers	16	4	0	3	2	0	3	1	0	4	6	0
Skilled workers	6571	6146	4	1798	3758	2	572	327	2	1361	974	4
Plant/ Machine operators and assemblers	4015	657	7	693	193	5	156	75	0	279	63	3
Labourers	11754	5750	34	1178	1022	4	436	109	6	409	155	13
Apprentices and section 18(2) learners	488	259	14	41	42	3	16	5	3	68	23	6
Total	67819	58032	172	18357	34809	84	7992	8668	132	25151	26362	275

Number of People Trained

52% African

18% Coloured

22% White

8% Indian

Total number of people trained = 247 850

Levy income by categories

Category	2000/01	2001/02	2002/03	2003/04	% of employers	Number of employers
Small (1-49)	13 948 785	37 459 083	56 384 610	71 260 741	73%	1917
Medium (50+)	3 735 027	13 006 899	19 209 900	21 203 640	2%	63
Large (150+)	2 1824 732	68 001 224	79 105 199	94 265 320	1	23
Not Known	12 737 404	27 332 885	30 261 502	31 288 933	24%	640

Grant Disbursement by Categories

Category	2000/01	2001/02	2002/03	2003/04
Small (1-49)	15 25 400	7 113 105	13 539 785	20 696 918
Medium (50+)	1 013 441	5 343 484	8 261 582	9 512 165
Large (150+)	19 104 310	59 839 502	69 331 712	69 392 910
Not Known	2 361 996	5 904 210	6 221 608	4 192 998

QUALITY ASSURANCE

Provider Accreditation

The ETQA has accredited 43 service providers and 8 more are in the process of which:

25 are fully accredited
18 are provisionally accredited

There are 7 FETs offering W&R full qualifications

By March 2005 the ETQA would have accredited 40 additional providers of which 20 would be SMME/BEE

LEARNING PROGRAMME APPROVAL AND CERTIFICATION

Quality Learning Provision practices are promoted through evaluation of learning programme.

237 learning Programmes approved
389 Learners certificated
7 MoUs signed with other ETQA's
10 MoUs to be signed

ASSESSORS AND MODERATORS

Providers are encouraged to train and register assessors with the W&RSETA
The W&RSETA has trained 2422 of which:
2025 assessors are competent
397 moderators registered

QUALIFICATIONS AND UNIT STANDARDS

5 qualifications registered on the NQF
52 Existing Unit Standards revised & registered
Further 2 qualifications submitted by the SGB:
National Certificate in Credit Control @ NQF level 4
National Certificate in Operations Supervision @ NQF level 4
17 new Unit Standards which have also been submitted to SAQA
43 new Unit Standards will be submitted to SAQA
4 new Qualifications ready for submission

BEST PRACTICE

SAQA Auditors identified the following

Qualifications Framework
Balance Score Card
IT Policies and Procedures

LEARNERSHIPS

Registered learnership

Five Learnerships Registered:

Three active learnerships - formal sector
Two inactive learnerships - informal sector

Registered Learnerships

Qualification title	NQF level	Learnership level	NQF level	Registration No
National Certificate in Retail and Wholesale Processes	2	Wholesale and Retail Generalist	2	27 Q 000001 16 168 2
National Certificate in Retail and Wholesale Processes	2	Retail Processes for Informal Businesses	2	27 Q 000002 11 168 2
National Certificate in Retail and Wholesale Sales an Service	4	Wholesale and Retail Sales and Services for Informal Businesses	4	27 Q 000003 10 120 4
National Certificate in Retail and Wholesale Sales an Service	4	Wholesale and Retail Specialist	4	27 Q 000005 15 155 4
Diploma in Retail and Wholesale Product Service Management	5	Certificate in Retail Operations Management	5	27 Q 000004 15 240 4

Active

In-active

"Pilot" Phase 1- (Commenced -April 2002)

Target
500 Learners
Registered
631 Learners
Completed
389 Graduated in November 2003

Total Budget -R 14 099 226

Phase 2-(Commenced-April 2003)

Target
1200 learners (50/50 split on 18.1 and 18.2)
Registered
1276 Learners
Completed
40 %

Total Budget - R 19 647 319.00

Learnership Phase 3 & 4

Phase 3

Target
3000 (18.2) learners only
Registered
3800 Learners

Total Budget - R 84m

Phase 4

Target
2000 (18.2) learners only
Budget

NSF Project-R 50m

Total Learnership Grant Disbursed

Projects	Budget	Expenditure
Pilot phase	R 14 099 336	R 11 677 416
Phase 2	R 19 647 319	R 11 511 925
Phase 3	R 84 000 000	R 48 371 882
Phase 4	R 50 514 000	-
Total	R 168 260 655	R 71 561 226

Exit Strategy

The W&RSETA is working closely with DoL and the Services SETA to engage in the Venture Creation

Learnership Project for the 18(2) learners currently in our programmes

FINANCES

Finances-General Overview

Actual	2004 R’000
Income (#)	722 008
Employer grants paid (*)	221 703
Administration costs	71 541
Projects expenses	117 563

# Income received to date for the four scheme years

* Grants paid to date for the four scheme years

Overview year by year

	2001	2002	2003	2004
Per year	R ‘000	R ‘000	R ‘000	R ‘000
Project expenses paid	-	15 867	24 853	32 813
Adjusted income (#)	74 189	163 791	212 388	234 998
Income % variance	-	120%	30%	11%
Administration costs	16 406	15 209	21 718	24 687
Admin cost % variance	-	-7%	43%	14%
Administration surplus- Rand	0	2 655	990	1 650
Administration surplus- %	-	15%	4%	6%

# Income adjusted for changes in estimates in respect of previous years

Surplus funds – Projects

Total surplus funds allocated: R223 million

Total surplus funds spent: R73.5 million

	2001	2002	2003	2004
Cumulative	R’000	R’000	R’000	R ‘000
Surplus funds available (A)	26 359	101 827	227 950	363 912
Surplus funds allocated (B)	20 736	101 827	106 493	223 070
(B) as % of (A)	79%	100%	47%	62%
Surplus funds spent (C)	0	15 867	40 720	73 533
(C) as % of (B)	-	16%	29%	33%

R 44 million spent after year end

Mandatory grants

Total mandatory grants paid: R221, 7 million

	2001	2002	2003	2004 (#)
Per scheme year	R’000	R’000	R’000	R’000
Mandatory grants paid	26 345	77 715	97 292	20 351 #

Pay-out %	54%	53%	53%	9%

# An amount of R85 million is due for payment ( excl. DISCRETIONARY). This will result in an adjusted mandatory grant payment of R105 million.

Recognition of Prior Learning
Venture Creation Learnership
Capacity Building Programme for Shop Stewards
Independent Skills Development Facilitators
Quality Management System
Monitoring and Evaluation System
ABET for SMMEs

GOVERNANCE

The W&RSETA Board

The Board consists of 12 members

6 Business representatives

6 Labour representatives

The Board met 7 times during 2003-2004 financial year,
A strategic planning session was held on 25-26 June 2003.
The Board has 9 Sub-committees

EXCO
Audit
Finance
Remunerations
ETQA
Projects
JIP
Project RAVE
Core Functions

(Skills, Learnerships, SMME, Communications)

PROGRESS IN TERMS OF THE NSDS OBJECTIVES

OBJECTIVE 1: Developing the culture of high quality life-long learning

Key performance indicators	Achievements to date	Challenges/ opportunities
1.1 By March 2005,70% of all workers have at least a Level One qualification on the NQF	12 000 learners have been assessed for placement on appropriate ABET levels. 4 500 are currently in training	The Wholesale & Retail SETA was not preceded by an Industry Training Board. This presented a challenge as the SETA had to Venture into unfamiliar, fragmented terrains and without any precedent to follow Education and Training was a secondary catalyst to the economic growth of the sector. There were no formal qualifications aligned to registered unit standards. As a result there is lack of capacity within the sector to deliver such outcome-based training programmes. This presents a challenge of inculcating a culture of quality life-long learning and learning provision. W&RSETA will fast track the implementation of an RPL to accelerate the mobility of Learners up the NQF ladder. W&RSETA will assist the 10 000 learners assessed to achieve or work towards achieving an NQF level 1 by March 2005.
1.2 By March 2005, a minimum of 15% of workers to have embarked on a structured skills learning programme, of whom at least 50% have completed their programme satisfactorily	According to WSPs received to date, 31% (247 850 of 806 000 workers) of all workers in the Wholesale & Retail sector are involved in structured learning	To encourage employers to use the NQF -aligned learning programmes for their learning interventions. To continue to inculcate the culture of high quality life-long and quality promotion (as per SAQA regulations) in the sector.
1.3 By March 2005, and average of 20 enterprises per sector, to be committed to, or have achieved, an agreed national standard for enterprise-based, people development.	Project plan approved by the Board! To identify and recruit at least 25 companies which are interested in piloting liP in their workplaces	The challenge is to recruit 25 companies within the sector to participate in the pilot project.

Objective 2: Fostering skills development in the formal economy for productivity and employment growth

Key performance indicators	Achievements to date	Challenges/ opportunities
2.1 By March 2005, 75% of enterprises with more than 150 workers are receiving skills development grants.	143 out of 159 of large companies employing more than 150 workers are claiming grants. This represents 90% of large companies are claiming grants.	To assist the remaining 16 large companies that are not claiming grants to start participate.
2.2 By March 2005, at least 40% of enterprises employing 50 and 150 workers are receiving skills development grants.	224 out of 448 companies employing between 50and 150 workers are claiming grants. This represents 50% of medium companies in the middle category are claiming grants.	To intensify the Contract Skills Development project to include medium-sized companies.
2.3 By March 2005, Learnerships are available to workers in every sector.	5 Learnerships qualifications have been registered. More Learnerships to be registered once the W&R Qualifications Framework is completed.	Communicate the availability of the first-ever W&R Qualifications Framework to all stakeholders. To ensure that the Learnerships that are developed are demand- driven.

OBJECTIVE 3: Stimulating and supporting skills development in small businesses

Key performance indicators	Achievements to date	Challenges/ Opportunities
3.1 By March 2005, at least 20% of new and existing small registered businesses to be supported in skills development initiatives.	Currently, the W&RSETA has 39 369 registered companies. Only 26 327 of these companies are paying the skills development levy. A total of 4 809 SMMEs are claiming grants. This represents 18,3% of SMMEs that are actively involved in the skills revolution. 508 Learners from 202 registered SMMEs benefited from the initial pilot SMME development project launched by the SETA in July 2002. 1 480 learners from 606 registered SMMEs have been enrolled to participate in SETA-sponsored learning interventions.	5 500 SMMEs (non-levy and levy paying) will be supported in skills development initiatives. The recruitment of SMMEs to participate in SETA-sponsored programmes remains a challenge. 91% of levy-paying SMMEs pay less than R1 000 per month. Most of these SMMEs cannot afford the costs of training. These companies contribute 43% of the total levies received. The challenge is to take training to their doorsteps through innovative ways.

OBJECTIVE 4: Promoting skills development for emplovabilitv and sustainable livelihoods through social development initiatives

Key performance indicators	Achievements to date	Challenges/Opportunities
4.1 By March 2005, 100% of the NSF apportionment to social development is spent on viable development projects.	Project RAVE Office has spent R14.8 million to date. R53.8 million will be spent on Phase II and III of the project. This money is paid on a draw down basis.
4.2 By March 2005, the impact of the NSF is measured by project type and duration, including details of placement rates which shall be at 70%	Project RAVE was successfully launched in Soweto Vista College was the epicenter of the pilot project. To date 2 089 learners were trained in Phase I of the Project RAVE. This represents at 21% of the target. Phase II- Additional 4 000 learners will be trained by August 2004. Phase III - The last batch of 4 000 learners will be trained in January 2005	10 000 Learners (100% of the target) will be trained by March 2005. The project is spread across all the nine provinces. The identification of training providers and the selection of candidates is a major challenge yet achievable task. Strategic alliances were formed with retail financial intermediaries to assist the 5 000 learners to be enrolled in Business-Start Up Programme to start their own business.

OBJECTIVE 5: Assisting new entrants into employment

Key performance indicators	Achievements to date	Challenges/Opportunities
5.1 By March 2005, a minimum of 80 000 people under the age of 30 have entered learnerships.	389 learners (35 unemployed and 354 employed) from the learnership pilot project made history when they graduated in the first-ever official graduation ceremonies on the Wholesale and Retail sector held in KZN, Gauteng, the Eastern Cape and Western Cape provinces. Phase II of the learnership commenced during 2003 with 1 267 learners. This phase is characterised by a 50/50 split between pre/unemployed and employed learners. Most of these learners will complete their training during 2004. 3 800 agreements have been registered for Phase III. W&RSETA has successfully implemented a pilot Learnership for People living with disabilities, in which 9 learners have completed the Wholesale and Retail Generalist Learnership at NQF level 2.	By March 2005, W&RSETA will have registered (cumulative!) at least 5 000 (18.2) learners under the age of 30 and to 2 000 (18.1) learners. The SETA is has currently sponsoring a project for 65 learners with disabilities in a large organization. The Challenge is to replicate this project in the whole sector
5.2 By March 2005, a minimum of 50% of those who have completed learnerships are, within six months of completion employed (e.g. have a job or self-employed, in full- time study or further training or are in a social development programme).	As part of the exit strategy, over and above the placing of learners into permanent employment, the SETA will be enrolling learners on Venture Creation Learnership Programme.	Implementation of an Exit Strategy for learners who have completed the Learnerships programmes

Thank you

QUESTIONS?