Progress Reporton

LearnershipImplementation

toJoint Monitoring Committee

On the Improvement of Quality of Life & Status of Children, Youth &

Disabled Persons

01 November 2002

Skills Development Act(Act 58 of 1998)

Learnerships:

A SETA may establish a learnership if – • the learnership consists of a structured learning component;• the learnership includes practical work experience;• the learnership would lead to a qualification registered by SAQA and related to an occupation;• the intended learnership is registered with the Director General in the prescribed manner.

Target group for Learnerships are: People in employment 18(1) And new entrants 18(2)

Example ? Learning to drive

1. Pass your learner’s license – which means youmust learn the road signs + rules of the roadin theory – and be tested on your theoreticalknowledge.

2. Then you drive under the supervision of a personwho has already passed their test.

3. Finally you undergo a practical test on the roadsand pass or fail on whether you can show youcan actually drive.

WHERE ARE THE CONSTRAINTS?

Learnerships not yet available in all key areas Employment places linked to areas of demand or

opportunity? – Private sector / Public sector

Contract complexity Issues of provision –providers with the necessary

expertise to deliver the new learnerships to scale Employment services – how are we going to inform,

and then guide young learners into the new programmes?

Current employees – cooperation, selection and training of learners, monitoring?

Funding questions – who pays for what? Exit strategy for learners at the end of learnership? System management?

SEQUENCE OF ACTIVITIES1. Ensure required qualifications registered2. Public providers engaged more directly3. Create contract intermediaries 4. Employment services strategy devised5. Shared and agreed financial arrangements6. Establish agreements between employers

and trade unions7. Plan exit strategies from learnerships8. Conduct national campaign based on --

Marketing Political leadership

Who designs learnerships?

1. SETA’s complete Sector Skills Plans2. SETA’s identify areas where skills are scarce or where

new skills are needed.3. Apply to SAQA to establish a standards generating body4. Define the purpose of the qualification & develop the

standards5. Submit qualifications to SAQA for registration

on the NQF6. Develop the Learnership and submit to DoL for

registration

As at Friday 25 October 2002

302 Learnerships where registered

Information is available onDepartment of Labour Website – www.labour.gov.za

Levels at which learnershipshave been registered

NQF levelPercentage of registered

learnerships

1

2

3

4

5

6

7

8

3%

14%

22%

30%

17%

11%

3%

0%

SETA’s which have registeredLearnerships

NAME No.

5. FASSET 10

6. BANDSETA 4

7. CHIETA (Chemical Industries) 11

8. CTFL (Clothing, Textiles, Footwear and Leather 42

9. CETA (Construction) 4

10. DIDTETA (Defence, Trade and Industry, Foreign

Affairs and Intelligence 1

7. ETDP SETA (Education and Training) 10

8. ESETA (Energy) 5

9. FOODBEV (Food and Beverage) 34

11. HWSETA (Health and Welfare) 7

12. ISETT (Information technology) 7

13. INSETA (Insurance) 15

SETA’s which have registeredLearnerships

NAME No.

14. LGWSETA (Local Government and Water) 3

15. MAPPP (Media, advertising, printing and packaging) 31

17. MERSETA (Manufacturing, engineering, plastics) 22

19. POSLECSETA (Police, Security, Correctional

and Legal Services 4

20. PAETA (Primary Agriculture) 8

22. SETASA (Secondary Agriculture) 6

23. SERVICES 18

25. THETA (Tourism) 21

26. TETA(Transport) 4

27. W&RSETA (Wholesale and Retail) 5

Learnership Agreements(See page 29 of Guide for Employers

Employer

Provider

Learner

SETAregisters

18(1)

18(2)

18(1) Learner = worker in firm18(2) Learner = previously unemployed

Employment contractFor 18(2) learners

Allowance for LearnersCOLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4

Exit level of Learnership

Credits already earned by learner

Percentage of qualified wage to be paid as

allowance

Minimum allowance per week

NQF 1 or 2 0 - 120 35% R120.00

  121 – 240 69% R240.00

NQF 3 0 – 120 17% R120.00

  121 – 240 40% R226.00

  241 – 360 53% R370.00

NQF 4 0 – 120 13% R120.00

  121 – 240 25% R240.00

  241 – 360 53% R370.00

  361 – 480 56% R540.00

NQF 5 to 8 0 – 120 8% R120.00

  120 – 240 18% R260.00

  240 – 360 27% R389.00

  361 – 480 38% R548.00

  481 - 600 49% R700.00

Employment contractFor 18(2) learners

Terms and conditions cover:- Remuneration- Hours of work- Overtime pay- Different types of leave- Contract employment incl. Terminations- Disputes

Funding of Learnerships

Firm

Provider

Learnerallowance

1%Levy

20% - NationalSkillsFund

80% SETA

10% Admin60% WSP’s10% Discretionary

LearnershipGrant

Learnership Tax Incentive

AT STARTEmployer signs Learnership Agreement

can deduct - 18(2) 100% of annual wage for 18(2) – max R25 000 - 70% of annual wage for 18(1) - max R17 500

AT END / END OF PHASE

can deduct - 100% of annual wage for both 18(1) + 18(2) up to max of R25 000

BACK DATED TO OCTOBER 2001IN PLACE FOR 5 YEARS

How well have we done ?

• SETA’s established in March 2000 HRD Strategy strategy – target 3000 by March 2002 ACHIEVED 3203

• By end September TOTAL =15 000 18(2)’S = 5 000

Case Studies (1)

(all the case studies are additions)• Wholesale and Retail SETA – Spar Group

KZN-Thekwini College• Level 2 Learnership: Wholesale and Retail

Generalist• 24 Learners

Case Studies (2)

• Education, Training and Development SETA

• Level 4 Learnership ABET Practitioner Learnership

• Employer – Yingisani ABET Centre Letaba

• Training Provider – Project Literacy• 36 Disabled ETDP Learners

Case Studies (3)

• Tourism, Hospitality Education and Training Authority – Enyenyezi College

• Level 4 Learnership: Professional Cookery• Level 2 Accommodation Services• 120 Learners• Employers – Consortium of Bed and

Breakfast establishments• - KZN South Coast

Case Studies (4)• Fasset:

• Level 7 Audit Specialism – 5000 learners

• Level 7 Financial Management Specialism – 300 learners

• Commercial and Financial Accounting: Public Practice – 150 learners

• Level 7 Commercial and Financial Accounting: Commerce and Industry

– 5 learners

• Level 7 Charted Management Accountant – 4 learners

• Level 3 National Certificate in Business administration – 3 learners

• Associate Accounting Technician – 15 disabled learners – Access

College as Training Provider

• For all learners various employers who are FASSET levy payers – from

one person consulting accounting firms to large companies