PRESENTATION TO PORTFOLIO COMMITTEE ON LABOUR

1

• PRESENTATION TO PORTFOLIO COMMITTEE ON LABOUR
• Dr. K.P. Govender
• Chief Executive Officer
• 14 October 2005
• BRIDGING THE SKILLS GAP

2
Introduction

• The HWSETA is a national statutory body.
• Established in 2000 under the provision of the
  Skills Development Act (1998).
• Classified as a Schedule 3A public entity of the
  Public Finance Management Act (2000).

3
Introduction cont.

• Governance framework of the HWSETA
• Clarified in the Constitution of the HWSETA.
• The Minister of Labour via the Department of
  Labour is the Executive Authority.
• The Board is accountable to the Minister of
  Labour.

4
Introduction cont.

• The HWSETA Board appoints
• The HWSETA Chief Executive Officer (CEO) to
  serve as the Accounting Officer.
• The CEO is accountable to the Board.

5
Introduction cont.

• Governance Principles
• The King Report (I and II) on good governance.
• In addition other key framing and guiding
  documents such as legislation and regulations,
  policies, code of good conduct, and best
  practices approaches.
• Members of the HWSETA Board are both
  individually and severally liable for all
  matters pertaining to the HWSETA.

6
Vision

• The creation of a skilled workforce to meet the
  health and social development needs of all people
  in South Africa.

7
Mission

• The Health and Welfare Sector Education and
  Training Authority endeavours to create and
  implement an integrated approach for the
  development and provision of an appropriate
  skilled workforce that will be empowered to
  render quality health and social development
  services that are comparable to world-class
  standards.

8
Philosophy

• The HWSETA espouses the philosophy of a better
  life for all through people development.

9
Values

• To be transparent, fair and consistent in our
  conduct.
• To conduct ourselves with honesty, integrity and
  trust.
• To be courteous and caring to others.
• To honour deadlines.
• To commit ourselves to the principle of equity.
• To work within a framework of co-operative
  governance.
• To strive for continuous service excellence.
• To promote people-centered development.
• To uphold the values as espoused in the Skills
  Development Act and HWSETA Constitution.

10
Sector Profile
11
Sector Profile cont.

• Primary data related to the sector profile of the
  health and welfare sector remains undefined.
• The health and welfare sector falls under the
  Standard Industrial Code (SIC) category 93.
• Public and private health and social development
  sectors.
• Levy-exempt sector NPOs, community-based
  organisations (CBOs) and faith-based
  organisations (FBOs) in the health and social
  development sector.
• SMME private health and social development and
  social services sectors.
• Manufacturers of medical and surgical equipment
  and appliances.
• Veterinary sectors.
• Traditional healing.
• Research and development.

12
Sector Profile cont.

• The health and welfare sector remains the second
  highest employment in the industry providing
  employment for approx. 3 million people.
• Number of employers by number of size
• No. of small business in the sector is 3900
• No. of employers between 50 149 185
• No of employers over 150 87

13
Scarce and Critical Skills (work in progress)

• Welfare Support Workers Social Welfare
• Probationary Officers.
• Social Security.
• Child and Youth Worker.
• Social Worker.
• Social Auxiliary Worker.
• Community Worker.
• Social Policy Studies.
• Early Childhood Development.

14
Scarce and Critical Skills cont.

• Health Workers
• Disability Service Officer.
• Paramedics / Ambulance
• Pharmaceuticals
• Pharmacists Assistant (Basic and Post Basic)
• Optical Laboratory Assistant.
• Health Promotion Officer.

15
Scarce and Critical Skills cont.

• Radiography
• Diagnostic.
• Ultrasound.
• Nuclear Sound.
• Physiotherapist Assistant.
• Speech Therapist Assistant.
• Medical Practitioners.
• Pathologists.
• Dentistry
• Dentists.
• Oral Hygienists.
• Dental Assistants.
• Orthodontist.

16
Scarce and Critical Skills cont.

• Nursing
• Auxiliary.
• Enrolled.
• Bridging.
• Primary Health Care.
• Nursing Specialistion e.g. ICU Theatre.
• Midwifery.
• Medical Technologist.
• Phlebotomy Technician.
• Medical Laboratory Technicians.
• Veterinary Nurse.
• Clinical Engineers.
• Clinical Technicians.
• Laboratory Assistant.

17
Scarce and Critical Skills cont.

• Project Management.
• Financial Management.
• Management
• Computer Skills (Basic Intermediate)
• Human Resource Management.
• Customer Care
• HIV /Aids Awareness.
• Entrepreneurial Skills.
• Fund Raising.
• Researchers.
• Life Skills.
• ABET.

18
HWSETA Board
EXCO
Standing Committees
Personal Assistant Ms M Annandale
Board Administration Office
Chief Executive Officer Dr KP Govender
Board Administrator Ms E. Woodward
Administrator to CEOs Office Ms A Rammutla
Committee Secretary Ms P Donald
HR / SUPPORT SERVICES DIVISION
ETQA DIVISION
SKILLS DEVELOPMENT DIVISION
FINANCE DIVISION
Sdp Executive Manager Ms I Masilela
Secretary Ms R Takoorpersadh
ETQA Executive Manager Mr B Zulu
Secretary Ms M van der Merwe
Manager HR Support Services Ms S Pochee
Secretary Ms C Bezuidenhout
Chief Financial Officer Mr K Keys
Secretary Ms L Jooste
Sub Division Capacity Building
Sub Division Provider Accreditation
Sub Division Learner Achievement
Sub Division Health Sector
Sub Division Social Development Sector
Sub Division Human Resources
Sub Division Support Services
Sub Division PR / Marketing
Financial Accountant Ms P Dlamini
IT Co-ordinator Vacant Mr M Cross
Manager Capacity Building and Quality Promotion Ms
C Gopal
Manager Provider Accreditation Ms B Rantloane
Manager Learner Achievement Mr A Roman
WSP/SDP Manager 1x Vacant (On Hold)
Public Relations Officer Ms S Pressly
WSP/SDP Manager Ms H Forbes
SDP Administrator Ms D Mokheseng Ms L Gaba
SDP Administrator
HR Officer Mr J Pieterse
SS Officer Ms C Bench
Grant Disbursement Administration Officer Ms R
van Rooyen
Procurement Officer Ms B Mmcube
Manager Learnership Mr V Nkalitshana
SDP Administrator Mr N Motsa Ms D Brown Ms M
Lekhotla Ms P Greaver
Manager Learnership Mr P Samuels
SDP Administrator Mr E Palmer Ms V Mpumza
Provider Accreditation And Audit Officer Ms N
Zondi
Learners Achievement Officer Ms A Maki
Capacity Building and Quality Promotion Officer Mr
K Muthavhine
Registry Administrator Mr L Mda
HR Administrator Ms A Treurnicht
Marketing Officer Vacant
Receptionist Ms N Matanjana
ETQA Administrator Ms I Mpofu
ETQA Administrator Ms N Mdladla
Skills Development Technical Advisors Ms M
Singh Mr S Zulu Mr Mngomo
Skills Development Technical Advisors Ms N
Yako Ms N Bessit 1x (On Hold
ETQA Administrator Mr R Mohamed
Financial Administrator Mr F Rikhotso
Payroll Administrator Ms G Hlungwane
Driver Vacant
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HWSETA Employment EquityStaff profile per
occupational category
JOB TITLE African African African Coloured Coloured Coloured Indian Indian Indian White White White Total Total Total
JOB TITLE M F D M F D M F D M F D M F D
CEO 1 1
Executive Managers 1 2 1 2 2
Managers 1 1 1 1 1 1 3 3
SDTA 2 1 1 1 2 3
IT Co-ordinator 1 1
Accountant 1 1
Officers 1 4 0 1 2 2 6
Secretaries 2 1 3 6
Board Administrator 1 1
Administrators 3 6 1 1 3 1 0 5 9 2
Payroll Administrator 1 1
Receptionist 1 1
Driver 1 1
Total 9 17 1 2 7 0 3 2 0 2 8 0 17 33 2
20
HWSETA Employment Equity
Equity breakdown within the HWSETA
African Coloured Indian White of Persons with Disability
Female 17 4.2 6.4 4.2 2.12
Male 29.8 12.8 6.4 17 -
48.9 17 12.8 21.3 2.12
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Equity breakdown of the HWSETA Board
African Coloured Indian White of Persons with Disability
Female 20.8 8.3 0 20.8 4.1
Male 25 0 4.1 20.8 0
45.8 8.3 4.1 41.6 4.1
22
NSDS 2001 2005 Achievements

• Indicator 1.1 By March 2005, 70 of workers
  have at least a Level 1 qualification on the NQF.
• No. of workers in the sector. 322,358
• No. of workers at NQF 1 in the sector. 302,358
• Total no. of workers to be at NQF 1 by March
  2005. 225,651
• No. of workers in the sector at NQF 1 by 31
• March 2005. 409,486
• Target achieved. 181

23
NSDS 2001 2005 Achievements cont.

• Indicator 1.2 By March 2005, a minimum of 15
  of workers to have embarked on a structured
  learning programme (no. of interventions), of
  whom at least 50 have completed their programme
  satisfactorily.
• No. of workers in the sector. 322,358
• No. of workers to embark on structured learning
• annually. 48,354
• No. of workers participated on structured
  learning in the
• sector by 31 March 2005. 367,559
• of target achieved. 152

24
NSDS 2001 2005 Achievements cont.

• Indicator 1.3 By March 2005, an average of 20
  enterprises per sector, (to include large, medium
  and small enterprises), and at least five
  national government departments, to be committed
  to, or have achieved, an agreed national standard
  for enterprise-based people development.
• Total no. of enterprises agreed to achieve the
  national
• standard. 20
• No. of enterprises committed / recognised to
  national
• standard by 31 March 2005. 37
• of target achieved. 185

25
NSDS 2001 2005 Achievements cont.

• Indicator 2.1 By March 2005, at least 75 of
  enterprises with more than 150 workers are
  receiving skills development grants and the
  contributions towards productivity and employee
  benefits are measures.
• No. of enterprises paying levy. 87
• No. of enterprises paying levy receiving WSP
  grants. 73
• of target achieved. 84
• No. of enterprises paying levy receiving ATR
  grants. 40
• of target achieved. 46

26
NSDS 2001 2005 Achievements cont.

• Indicator 2.2 By March 2005, at least 40 of
  enterprises employing between 50 and 150 workers
  are receiving skills development grants and the
  contribution towards productivity and employer
  and employee benefits are measured.
• No. of enterprises paying levy. 185
• No. of enterprises paying levy receiving WSP
  grants. 66
• of target achieved. 36
• No. of enterprises paying levy receiving ATR
  grants. 40
• of target achieved. 22

27
NSDS 2001 2005 Achievements cont.

• Indicator 2.3 By March 2005, learnerships are
  available to workers in every sector.
• No. of learnerships to be registered. 16
• No. of learnerships registered. 20
• of target achieved. 125

28
NSDS 2001 2005 Achievements cont.

• Indicator 2.4 By March 2005, all government
  departments assess and report on budgeted
  expenditure for skills development relevant to
  Public Service Sector and Departmental
  priorities.
• No. of Government Departments have submitted
• WSPs. 5
• No. of Government Departments that have
• submitted WSPs. 15
• of target achieved. 300

29
NSDS 2001 2005 Achievements cont.

• Indicator 3.1 By March 2005, 20 of new or
  existing registered small business to be
  supported in skills development initiatives and
  the impact of such measured.
• No. of small business in the sector. 3,900
• No. of small businesses to receive WSP grants and
  
• support. 780
• No. of small businesses receiving WSP grants and
• support. 2,759
• of target achieved. 354

30
NSDS 2001 2005 Achievements cont.

• Indicator 5.1 By March 2005, a minimum of
  80,000 (unemployed) people under the age of 30
  (amended to 35 in GDS) have entered learnerships.
• Sector baseline. 322,358
• Total no. of 18(2) learners to be
  registered. 3,100
• Total no. of 18(2) learners registered. 7,988
• of target achieved. 258

31
Annual Financials Audit Results 2004 - 2005

• SDL Income R 133,633m
• Total Investment Income R 11,134m
• Total revenue R 145,410m
• Total expenses R 91,365m
• Expenses as percent of SDL 62,8
• Net surplus R 54,045m
• Total Cash Cash equivalents R 224,142m

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Annual Financials Audit Results

• As evidenced in the Annual Report the report of
  the Auditor-General is unqualified and contains
  no matters of emphasis nor significant matters.

33
Committed Funds and Projects cont.

• Of the balance of R143,941m available in the
  Discretionary Reserve at the end of March 2005,
  R128,676m has been approved and allocated for
  future projects and skills priorities as set out
  below
• Learnerships R 98,997m
• Sector Skills Priorities R 13,939m
• Standards Generating Bodies R 740,000
• Bursaries R 15,000m
• TOTAL R128,676m

34
Key Challenges for 2005 - 2010

• Legal challenges need to be reduced.
• Spread of the discretionary funding allocation
  and to ensure that this is distributed equitably
  within reason.
• Ensure that there is a balance and considered
  approach in funding a diverse group of sectoral
  stakeholders.
• Design a track record of graduates on learnership
  programmes through a formal evaluation process to
  find out the extent to which they have become
  employed or self-employed.
• Expanding the skills development agenda for the
  sector caught in the second-economy and to
  focus on how the HWSETA can make further
  contributions towards poverty alleviation and
  socio-economic improvement through the skills
  development agenda.

35
Key Challenges for 2005 2010 cont.

• Implementation of the new National Skills
  Development Strategy especially capacity and
  financial constraints.
• Implementation of the Quality Management System
  for the HWSETA.
• New legislation required that employers who have
  an annual payroll of less that R500,000, no
  longer have to make Skills Development Levy
  Contributions. However, these employers must
  still be encouraging to participate in Skills
  Development and must be accommodated from a
  reduced financial base.
• Participation by stakeholders in the Northern
  Cape, North West, Mpumalanga and Free State in
  education and training activities still poses a
  big challenge.
• The perceived complexity and inaccessibility of
  the provider accreditation criteria and process.

36
Key Challenges for 2005 2010 cont.

• Community based organisations whose involvement
  is motivated mainly by the social development
  challenges arising from the communities they
  serve, which makes it difficult for them to meet
  most of the accreditation requirements.
• Monitoring of HWSETA constituent providers
  education and training activities poses an
  enormous challenge. This led to the need to
  outsource this function as an interim function.