Changes to South African Labour Laws: How they affect Employers and employees By Mr Basiami Disipi 1
LABOUR LAW CHANGES, APPLICABLE REGULATIONS & STRATEGIES 2011 -2016 1. Skills Development Act 97 of (1998) 1.1 SDA Regulations : ▪ Grant regulation regarding monies received by a SETA’s and related matters 2. Skills Development Levies Act 9 of (1999) 2.1 SDL Regulations: ▪ Regulations regarding levies and related issues 3. Employment Equity Act, 55 of 1998 4. National strategies designed to support skills development: 4.1 White Paper on Post-school Education and Training (WPSET) 4.2 National Skills Development Strategy (NSDS) III (2011 – 2016, 2011-18 & 2011-2020) 4.3 National Skills Accord 1 (2012) 2
LEGISLATIVE FRAMEWORK PERSPECTIVE Freedom charter Constitution New Growth Path National Development Plan 1. Human Resources Development Strategy of SA 2. White Paper-Post School Education & Training (WP- PSET) 1. NSDS III Socio-economic development 2.National Skills Developmnt Plan Skills Development Act (1998) Employment Equity Act (1998) Skills Development Levies (1999) Applicable Skills Development regulations Applicable EEA regulations Oversight body : National Skills Authority (NSA) Oversight body : EE Commission 3
SKILLS DEVELOPMENT STRATEGIC ARCHITECTURE Office of the Deputy President of SA Department of Higher Education and Training Human Resource Development Council for SA National Skills Authority Human Resource 1. Nationals Skills Development Strategy (NSDS III) 2011 - 2020 Development Strategy 2. National Skills Development Plan (NSDP) 2020 -2030 for South Africa ▪ Industrial Policy Action Plan (IPAP) ▪ Joint Initiative on Priority Skills Acquisition (JIPSA) ▪ Poverty Alleviation Strategy National Priorities National Skills Fund Skills Development funding ▪ Medium-Term Strategic Framework (MTSF) ▪ Sector Skills Plan (long-Term – 3 -5 Yrs) Sector Education and Training Sector needs & priorities ▪ Annual Performance Plan (APP) – Short-term Authority (SETA) Skills Plan Organisations SDL (1%) [Public & Private ] Organisational needs Workplace Skills Plans 4
SKILLS DEVELOPMENT AND THE WIDER PSET SYSTEM Broader education and training system (HE, TVET & Community colleges) : ❖ Broad, and speaks to individual and societal development ❖ HE, TVET and Community Colleges is wider than serving the needs of the economy Skills Development system : ❖ Primary role is to support economic and industrial growth ❖ Combination of relevant education, training and work experience that enables a person to attain competence in a particular occupation ❖ Focus more on occupational qualifications ❖ SETA’s coordinate sector focus development 5
SKILLS DEVELOPMENT ACT (1998) What did SDA aim to achieve: ▪ To develop the skills of the South African workforce by: - improving the quality of life of workers, their prospects of work and labour mobility - improving productivity in the workplace and the competitiveness of employers ▪ To increase the levels of investment in education and training in the labour market and to improve the return on that investment ▪ Encourage employers: - to use the workplace as an active learning environment ▪ To improve the employment prospects of persons previously disadvantaged by unfair discrimination and to redress those disadvantages through training and education 6
NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III What did NSD III aim to achieve? ❖ To improve the effectiveness and efficiency of the skills development system ❖ To encourage linking skills development to career paths, career development and promoting sustainable employment and in-work progression ❖ To promote a skills development system and architecture that responds to the needs of the labour market and social equity ❖ To establish and promote closer links between employers and training institutions and between both of these and the SETAs ❖ To enable trainees to enter the formal workforce or create a livelihood for themselves ❖ To assist those with no relevant technical skills or adequate reading, writing and numeracy skills to enable them to access employment 7
WHITE PAPER ON POST-SCHOOL EDUCATION AND TRAINING (WPSET) What did WPSET aim to achieve? ❖ To build an expanded, integrated and effective post-school ❖ A single, co-ordinated post-school education and training system ❖ A PSET that is responsive to the needs of individual citizens, employers as well as broader societal and developmental objectives. ❖ Linking education and the Workplace - close cooperation between education and training providers and employers 8
THE SKILLS SYSTEM Economics Industry expertise Research into skills supply and demand; trends analysis; labour market statistical Value chain identification; production analysis; econometric modelling and processes; anticipating changes in forecasting; processes requiring new skills Skills development Organisation development Education and training Strategy and planning to match training Qualification and curriculum to skills needs; brokering partnerships to development; programme and deliver training and work experience; intervention design; quality assurance project management and monitoring 9
CRADLE TO EDUCATIONAL CAREER PLANNING Benefit of Strategic Alignment – Career Planning Skills Development Adult Education and Training Community Education and Training Early Childhood Basic Education Vocational Education and Training Career Development Tertiary Education and Training Higher Education Workplace Learning 10
INTERGRATED SKILLS PLANNING APPARATUS RESPONDING TO LABOUR MARKET AND SKILLS DEMAND NEEDS Output Skills planning Stakeholders Quality councils priorities Occupations in high DHET DHET commissioned researches demand in SA Qualifications in high demand Trades in demand Center of Specialisations established DHET Thirteen (13) priority trades identified SETA Sector Skills Plans (SSPs) informed by ▪ Scarce & critical skills list Funding directed to SETA’s research from University/private consultants ▪ Other interventions scarce/critical skills (96 Research reports) ▪ Individual, Task & Strategic In-house and sector Employers Skills audits/needs analysis ▪ Products/Service needs aligned training 11
MAJOR CENTRES OF SPECIALISATION PROGRAMME ▪ Number of TVET colleges selected as Centres of Specialisation 13 priority trades to implement apprentice-ship (with OFO codes): ▪ Apprentice-ships in each of the priority trades developed 641201 Bricklayer 671101 Electrician 671202 Millwright DHET 651302 Boilermaker 642601 Plumber 653101 Mechanic including automotive SETA’s mechanic 653306 Diesel mechanic 641501 Carpenter and Joiner 651202 Welder Industry 651501 Rigger (private/public) 652302 Fitter and turner 653303 Mechanical fitter 642607 Pipe fitter 12
NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016 Employers as implementers of learning programmes ▪ Programmes delivery target groups: - Lower level skills - Middle level skills (with a large section on artisans) - Higher level skills. ▪ Programmes delivery targeted groups: - Established companies (all) - SMMEs - Unemployed youth - NGOs, coops, communities, worker education/trade unions - Informal sector - Local, provincial and national government 13
NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016 Enrolments vs completions: per learning programme 2011 2012 2013 Enrolled Completed Throughput Enrolled Completed Throughput Enrolled Completed Throughput Learnerships 44 050 29 170 66% 50 885 37 158 73% 75 356 38 746 51% Internships 3 654 1 005 28% 6 127 2 195 36% 8 011 2 510 31% Skills Programmes 87 906 87 527 100% 74 587 86 491 116% 92 470 109 481 118% Artisans 24 415 14 023 57% 21 849 15 277 70% 27 670 18 110 65% Total 160 025 131 725 82% 153 448 141 121 92% 203 507 168 847 83% 2014 2015 Over 5 years Enrolled Completed Throughput Enrolled Completed Throughput Enrolled Completed Throughput Learnerships 77 931 40 891 52% 94 369 43 322 46% 342 591 189 287 55% Internships 12 006 3 663 31% 13 135 3 352 26% 42 933 12 725 30% Skills Programmes 137 880 106 459 77% 123 593 127 144 103% 516 436 517 102 100% Artisans 28 302 14 389 51% 28 640 16 114 56% 130 876 77 913 60% Total 256 119 165 402 65% 259 737 189 932 73% 1 032 836 797 027 77% 14
NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016 Enrolments vs completions: per learning programme Learnerships Internships 90% 100% 81% 90% 89% 77% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 4% 4% 4% 4% 9% 10% 2% 2% 1% 1% 6% 6% 6% 5% 5% 10% 3% 2% 0% 0% African Coloured Indian White Unknown Black Coloured Indian White undefined Entered Completed Enrolments Completions 70% 60% 60% 60% 55% 54% 50% 50% 50% 46% 43% 42% 39% 40% 40% 30% 30% 20% 20% 10% 10% 3% 4% 1% 3% 0% 0% Female Male Unknown Female Male Undefined Enrolment Completions Enrolments Completions
NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016 Overall enrolments vs completions: per financial year Totals over 5 years Enrolments 1 041 347 Completions 799 483 Throughput 77% 16
NATIONAL SKILLS DEVELOPMENT STRATEGY (NSDS) III 2011 -2016 Enrolments over 5 years per SETA Included in the annual numbers above are: Learnerships, Internships, Skills Programmes and Artisans 17
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