skills planning for the fpm sector

Skills Planning for the FPM Sector

Daryl McLean

Pauline Matlhaela and Associates

Outline of Presentation SSP requirements

Relationship between SSP/ASP/APP Questions an SSP is trying to answer The structure of a sector skills plan “Performance-based” sector skills planning

Methodology and Project Plan Analyses for

Leather and footwear Clothing and textiles Forestry, wood, pulp and paper Furniture Publishing Printing and packaging Print media

Priority Skills Interventions

The Legal Mandate A SETA must, in accordance with any requirements that

may be prescribed:

a. develop a sector skills plan within the framework of the national skills development strategy;

b. implement its sector skills plan by-i. establishing learnerships;

ii. approving workplace skills plans;

iii. allocating grants in the prescribed manner and in accordance with any prescribed standards and criteria to employers, education and training providers and workers; and

iv. monitoring education and training in the sector;

v. promote learnerships by – 1. identifying workplaces for practical work experience;

2. supporting the development of learning materials;

3. improving the facilitation of learning; and

4. assisting in the conclusion of learnership agreements;

Treasury Regulations 5 and 30 require FPMSETA to:

“Produce and table a Strategic Plan with a five-year planning horizon, outlining the planned sequencing of projects and programme implementation and associated resource implications and other prescribed information

Produce and table an Annual Performance Plan including forward projections for a further two years, consistent with the medium-term expenditure framework (MTEF) period, with annual and quarterly performance targets, where appropriate, for the current financial year and the MTEF

Identify a core set of indicators needed to monitor institutional performance Adopt a quarterly reporting system, including submission of agreed information

to executive authorities, the Presidency or Premier’s Offices, the relevant treasury and Parliamentary portfolio committees. Public entities are encouraged to submit the reports to their executive authorities and responsible departments.

Ensure that there is alignment of reporting between the Strategic Plans, Annual Performance Plans, budget documents and annual and quarterly reports”.

“Performance” Requirements and Framework

Content and Structure of Strat Plans and Performance Plans

Top-Down and Bottom-Up Planning

Under NSDS1 and 2

The targets were set in NSDS

These were cascaded to 22 SETAs

The budgets were divided by the targets in developing the plans

Under NSDS3:

There are top-down

AND bottom-up processes

What is a “Sector Skills Plan”?

What is Required in Each SSP Section

SSP Section Purpose, Questions, Data and Analysis Required

Profile of the Sector

Purpose is to scope the sector – who is included/excluded in the analysis? What are the key features of the sector that are relevant to the analysis? The impact level of measurement must be defined here.

Demand for skills

Purpose is to identify how many (new and existing) employees must be trained over a 5 – 10 year timeframe; for which jobs; and why (the impacts intended). This includes growth demand and replacement demand. Data must include growth forecasts; employer/employee data; labour market trends; and key strategy drivers.

Supply of skills Purpose is to analyze the supply-side capacity required to achieve the demand-side targets. Data must include current providers; provider capacity; programs; enrolment, retention and achievement rates (all analyzed against demand side/regional distribution). Also budgets, EEEE analysis.

Priority areas for skills interventions

Purpose is to list the scarce/critical needs and to prioritize the most important. Then to identify the priority (systemic) interventions required to address the problems.

Strategies for delivering priority interventions

Purpose is to identify the key challenges in delivering the priority skills, and to propose strategic framework for SETA operations. These must relate back to the impact level of measurement and the RoI/EEEE baselines.

Performance Information

Categories of Performance Information

Using SMART Performance Measures

ManagingManagingPerformancePerformance

What are we tryingWhat are we tryingto achieve?to achieve?

PerformancePerformanceMeasuresMeasures

Where are weWhere are wenow?now?

Baselines and Baselines and Targets Targets

How do we How do we add value?add value?

Actions and Actions and OutputsOutputs

What evidence doWhat evidence dowe use?we use?

Performance Performance IndicatorsIndicators

Measuring “Effectiveness”Level Effectiveness Objective

LevelSample Indicator

1 Are learners satisfied?• Course evaluation forms

completed by learners

2 Are learners learning? • Assessor and moderator reports

3Are learners transferring what they learn to the workplace?

• Transfer of learning evaluation forms completed by learners, supervisors and managers

4Is the transfer improving productivity or service delivery?

• Multivariate analysis of performance data

5Is the workplace performing better as a result?

• Multivariate analysis of workplace/industry data

6Is the country or sector doing better as a result?

• Analysis and synthesis of data collated at previous levels

Illustrative Framework of Indicators

Education and training outcomes

% correlation of enrolment figures against scarce and critical needs of sector

% rise in achievement rates, measured by the number of learners passing divided by those who enrolled

% rise in retention rates, measured by the number of learners completing divided by those who enrolled

Stakeholder Satisfaction Outcomes

% learner satisfaction, measured against standardized course evaluation ratings

% employer satisfaction, measured against standardized employer feedback ratings

Employment Outcomes

% of unemployed learners in jobs 6 months after training

% transfer of learning to the workplace, measured against standardized transfer of learning ratings

Social Outcomes

% contribution to sector employment equity objectives (applicable to all providers for reporting, but only to SETA-

funded provision as measurement)

Equity Baseline – Gender and Disability (ATR)

Occupation Group Male Female Disabled

Clerks 3824 6427 1686

Craft & Related Trades 3915 446 80

Elementary Occupations 7109 2506 73

Legislators, Senior Officials and Managers 3498 1872 40

Plant & Machine Operators & Assemblers 12562 2195 92

Professionals 1991 1987 22

Services & Sales Workers 5032 4960 102

Skilled Argricultural & Fishery Workers 10 5 0

Technicians & Associate Professionals 5333 5052 63

Baseline Expenditure 63% 37% 3%

Equity Baselines - RaceOccupation Group Number African Coloured Indian White

Clerks 2778 3181 3162 2816

Craft & Related Trades 1212 1177 775 1277

Elementary Occupations 6316 2492 619 261

Legislators, Senior Officials and Managers

660 668 613 3469

Plant & Machine Operators & Assemblers

7043 4616 2104 1086

Professionals 658 563 402 2377

Services & Sales Workers 2641 1706 1621 4126

Skilled Argricultural & Fishery Workers

2 7 0 6

Technicians & Associate Professionals

1830 1743 2462 4413

Baseline Expenditure 32.6% 22.8% 16.6% 28%

Baselines for Effectiveness/EfficiencyCosts Divided by Pass Rates

COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 168 168 100%

DEPT OF POLICE,ROADS AND TRANSPORT 7 72 10%

DEPT OF SPORT,ARTS,CULTURE AND RECREATION 35 63 56%

DEPT OF AGRICULTURE AND RURAL DEVELOPMENT 34 327 10%

DEPT OF ECONOMIC DEVELOPMENT AND PLANNING 9 64 14%

DEPT OF INFRASTRUCTURE DEVELOPMENT . .

DEPT OF ECONOMIC DEVELOPMENT AND TOURISM 304 227 134%

DEPT OF PUBLIC WORKS 43 575 7%

DEPT OF LOCAL GOVERNMENT AND TRADISTIONAL AFFAIRS 9 639 1%

DEPT OF AGRICULTURE 729 .

DEPT OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 4 301 1%

SETA Performance Value Chain

Increased WorkplaceParticipation in

Planning/DeliveringSkills Development

Improved CorrelationBetween Provider

Capacity and SectorSkills Needs

Measured Against Framework of Indicators

Projects

InnovatesBest Practice

Solutions

Grants

ImplementsBest Practice

Solutions

LearningProgramsImplements

Best PracticeSolutions

ETQASteers

ProvisionTowardNeeds

Sector Skills PlanningIdentifies Strategic Issues, Needs, Causes, Policy Options

ManagementSteers Organisation Toward Goals / Responds to Context

Gov Serv Fin Ops

METHODOLOGYAND

PROJECT PLAN

19

Past Approaches to SSPs in SA Past Approaches to SSPs in SA

Current approach WSPs/ATRs analysis Employer surveys Consultations with stakeholders

Reliance on WSP/ATR and employer information Coverage of employer through WSPS WSPs skewed to large employers WSPs not necessarily based on best practice WS

planning Partial picture of scale and shortages Not differentiate between frictional as opposed to

structural causes Limited predictive potential

Sector Skills Planning models internationally

Skills forecasting

Labour market signaling

Qualitative models

Cost – benefit models

Each model has weaknesses – mixture of different models more effective to achieve purposes of

sector skills planning

Appropriate mix of models depends on availability of data; resources available for planning;

timeframes

20

Qualitative Methods“…Qualitative methods involve attempting to

reach an assessment of skill needs through in-depth interviews with key stakeholders

such as policy makers, and of course, employers. Wilson, Woolard and Lee (2004)

conclude that where the data permits, standard occupational forecasts should be produced regularly, complemented by the more qualitative approaches, to produce a

more rounded and enriched view of changing skill needs”.

An Assessment of International Trends in Occupational Forecasting and Skills Research: IRNI 2008

Project Plan

Labour Market Forecasting Model

1 Macroeconomic model

2 Occupational employment model

3 Replacement demand model

4 Skills demand model

Growth Demand CalculationsFORMULA: GROWTH IN OUTPUT = GROWTH IN DEMAND FOR LABOUR (LESS

PRODUCTIVITY IMPROVEMENTS, CAPACITY UNDER-UTILISATION, CAPITALISATION, LABOUR ELASTICITY)

Separate growth scenarios were formulated based on conservative over- and under-projections of the previous average growth in the sectors in the FP&M SETA (-1%, 2%, 5%).

The total employment figures based on the Quarterly Labour Force Survey (QLFS) 2012 dataset from the first quarter

The capacity under-utilisation percentage was found in the Statistics South Africa document entitled Manufacturing: Utilisation of production capacity by large enterprises, 2012. (Except for forestry)

The productivity figures were calculated based on output data derived from the Quantec database

Capital intensity data was collected from the Quantec database. (Except for Forestry)

Labour elasticity was calculated based on sectoral output and wage data from the Quantec database. For the forestry sector, employment data was derived from Forestry South Africa’s Forestry and Forest Products and wage data was derived from the Quantec database.

Occupational ModellingFORMULA: DIVIDE THE TOTAL NUMBER OF JOBS FORECAST ACROSS THE VARIOUS OCCUPATIONS

ACCORDING TO PERCENTAGES

The occupational employment figures and disaggregation were derived from the QLFS datasets from 2008 – 2012

Some of these look odd, so

We are checking with Stats SA

We may use the WSP categories/percentages instead

Replacement DemandFACTORS: RETIREMENT, MORTALITY, MORBIDITY, MOBILITY

The retirement forecast figure was calculated using the age profile from QLFS 2012. It was assumed that all of the workers aged between 60 and 65 years of age will retire in the next 5 years; and those aged between 55 and 60 years of age will retire in the next 10 years.

The HIV/AIDS prevalence rate was modelled on various data sets (see following slides) but remains a very generic estimate compared to the modelling required

For replacement demand based on deaths from causes other than HIV/Aids-related issues, a figure of 5% was picked. This was based on the ratio of the number of working people who died in 2009 (the latest available Cause of death data from Statistics South Africa) to total employed people which was 4.4%. This was rounded up to 5%.

Mortality and Morbidity - HIV/AIDSOccupational Bands

HIV/AIDS – Education Levels

Impact of HIV/AIDS on Companies

Epidemiology of HIV/AIDS

SUMMARY OF FPM INDUSTRIES SKILLS PLAN FINDINGS

Clothing, Footwear, Textiles, Leather and General Goods

- Shrinking Output -

Clothing, Footwear, Textiles, Leather and General Goods

- Imports vs Exports-

Growth Prospects

The growth prospects for the sector remain by and large unchanged for the future unless the sector fundamentally

restructures itself and improves product offering and pricing. Growth for the sector in the next 5 years is more a

matter of retaining market share against cheap imports than about growth. If the

DTI strategy works growth may be an option post 2015.

Capacity Utilisation

The overall sectoral utilisation of factors of production is down from 77.2% in 2009 and 74.1% in 2010. Stats SA conducted a sectoral survey on reasons for the under-utilisation of the factors of production…. The unused 22.6% was accounted for as follows:

Lack of raw materials : 2%

Lack of skilled labour : 0.9%

Lack of unskilled labour : 0.4%

Insufficient demand : 16.7%

Other : 2.9%

Productivity

2004 2005 2006 2007 2008 2009

Textiles, clothing and leather [311-317] 14.8 7.3 7.2 7.2 20.4 -2.0

Textiles [311-312] 25.6 12.1 6.5 3.3 15.5 -6.0

Wearing apparel [313-315] 0.7 1.6 7.1 7.8 22.3 4.6

Leather and leather products [316] 15.1 10.4 8.5 22.2 34.1 -23.2

Footwear [317] 17.6 8.2 2.8 5.0 4.2 -4.8

Growth and Replacement Scenarios: Leather

Scenarios -1% 2% 5%

Current total employment 12278 12278 12278

Job losses forecast -7743 -7504 -7265

New level of employment 4535 4774 5013

Total replacement demand* 3120 3120 3120

Final employment level 7655 7894 8133

Factor Totals

Retirement 664

Mortality (HIV/AIDS) 1228

Mortality (Other deaths) 614

Migration 614

Total 3120

Growth and Replacement Scenarios: Footwear

Scenarios -1% 2% 5%





Factor Totals

Retirement 408



Migration 696

Total 3192

Footwear Occupational Modelling

(Major Occupational Groups)Legislators, senior officials and managers 839

Technical and associate professionals 1073

Clerks 2032

Craft and related trades workers 4733

Plant and machine operators 4326

Elementary Occupation 919

Total 13922

Footwear Occupational Modelling (Minor Occupational

Groups)Supply and distribution managers 839

Technical and commercial sales representatives 814

Decorators and commercial designers 259

Stock clerks 677

Receptionist and information clerk 894

Other office clerks 461

Millers, bakers, pastry chefs 2947

Shoemakers and related workers 1786

Sewing-machine operators 902

Fur and leather-preparing machine operators 982

Shoemaking and related machine operator 2442

Hand-packers and other manufacturing labourers 919

Supply and distribution managers 839

Technical and commercial sales representatives 814

DTI Industry Strategy Leather is divided into cattle hides, ostrich, crocodile, etc

2.5m cattle slaughtered in SA annually

60% of the hides used in auto industry

251m pairs of shoes consumed domestically, only 50m made here

Thus beneficiating the hides in footwear potentially brings these jobs back to SA

Footwear design, quality of workmanship, branding and international retail linkages are key constraints

Limited supply-side training to address these concerns

Leather and Footwear Strategy: Projections

Strategy Driver 2008 Strategic Framework for Leather and Footwear Industries

Growth demand 30 000 new jobs

Supply-side capacity/ interventions

General:

•Build local design training capacity•Strengthen quality of workmanship/career pathing•Ethical branding/quality management implications•Small business competitiveness improvement•Strengthen international networks/linkages•Collaborative clustering” strategy behind training

Specific:

•Leather technologists•Ethical branding – quality management

Specific Skills PrioritiesLeather and Footwear Skills

Strategy Leather

Leather technologists NB

Quality control (ethical branding) focus

Career pathing from NQF2 upwards

Electrical and engineering NB

Footwear

“Collaborative clustering” to inform skills interventions

Bursaries for international design studies (short-term)

Design Institute

Growth and Replacement Scenarios: Textiles

Scenarios -1% 2% 5%





Factor Totals

Retirement 10214



Migration 12687

Total 60962

Textiles Retirement Demand

Male Female Total15-19 1498 785 228320-24 2784 1172 395625-29 5,513 2076 7,58930-34 2,584 3,152 5,73635-39 9,254 6,943 16,19740-44 1,923 5,578 7,50145-49 3,433 5214 8,64750-54 1,919 4,092 6,01155-59 3,267 4,817 8,08460+ 2,289 2518 4,807Total 34,464 36347 70,811

Growth and Replacement Scenarios: Clothing

Scenarios -1% 2% 5%Current total employment 121324 121324 121324Job losses forecast - 35370 - 31466 - 27563New level of employment 156694 152790 148887Total replacement demand*

30979 30979 30979

Factor Totals

Retirement 6715



Migration 6066

Total 30979

Retirement Demand (Clothing)Male Female Total

15-19 0 1,800 1,800

20-24 0 7,790 7,790

25-29 2,828 11,621 14,449

30-34 2,243 15,575 17,818

35-39 4,817 13,982 18,799

40-44 2,200 12,037 14,237

45-49 3,374 17,065 20,439

50-54 705 13,195 13,900

55-59 1,466 9,288 10,754

60+ 0 1,338 1,338

Total 17,633 103,691 121,324

Clothing and Textiles CSPStrategy Driver DTI Customised Sector Program

Growth demand 50 – 60 000 new jobs

Clothing and Textiles CSP/Charter

CSP focus areas

Domestic market development (local sourcing, trade measures, combat illegal imports, promote local)

Exports (promote trade, market access)

Competitiveness (capitalisation, supply chain)

Sustainable HR (training of managers, avoid sweatshops…)

Empowerment

Empowerment (charter commits to 30% BEE in textiles, 50% in clothing)

Clothing and Textiles Technical textiles

Replacement demand – aging workforce

New equipment coming in

Critical skills: new equipment; technical artisan skills especially; mechanical engineers; technicians; mechanics; quality contollers

Challenges with existing provision: no external training capacity due to specialisation

Have to send people oversees, or bring people in from outside country – could look at partnerships with industry (esp india) or at increasing stipend since learning is international

Clothing

Replacement demand: aging workforce; provident fund debacle

Need for versatile/multi-skilled machinists

Three most important things: supporting more learnerships in companies and trying to see how we can multi-skill

Bridging courses from ABET to higher levels, to enable progress toward supervisor

Growth and Replacement Scenarios: Forestry

Scenarios -1% 2% 5%Current total employment 36174 36174 36174Job losses forecast - 15884 - 14974 - 13704New level of employment 52058 50968 49878Total replacement demand*

8844 8844 8844

Factor Totals

Retirement 1609



Migration 1809

Total 8844

Retirement Demand (Forestry)

Age group Male Female Total

20-24 1146 874 2020

25-29 1939 3452 5391

30-34 2569 1916 4485

35-39 4434 867 5301

40-44 3750 348 4098

45-49 583 780 1363

50-54 312 1013 1325

55-59 1333 0 1333

60-64 0 784 784

Total 16066 10034 26100

Growth and Replacement Scenarios: Wood

Scenarios -1% 2% 5%Current total employment 53364 53364 53364Job losses forecast -10233 -9782 -9330New level of employment 43131 43582 44034Total replacement demand*

13178 13178 13178

Factor Totals

Retirement 2506



Migration 2668

Total 13178

Retirement Demand (Wood)

Male Female Total

15-19 1,229 0 1,229

20-24 3,578 619 4,197

25-29 3,903 4,025 7,928

30-34 13,112 3,487 16,599

35-39 5,218 1,493 6,711

40-44 3,001 1,436 4,437

45-49 7,278 4,441 11,719

50-54 4,852 1,181 6,033

55-59 3,278 565 3,843

60-64 742 0 742

Total 46,191 17,247 63,438

Pulp and Paper This sector has had the highest output in the past

10 years but around the 3rd lowest employment figures. Consequently, the labour productivity in this sector is particularly high. Therefore, the growth projection scenarios used in this example are so low that they would result in negative employment growth and negative employment in this sector. Because the labour productivity is so high, this sector is not likely to require new labour at such low growth situations. Only at very high growth levels would positive employment be maintained.

Forestry, Timber, Pulp, PaperStrategy Driver 2007 Forestry Strategy/Charter

Growth demand 26 000 new jobs in Forestry (EC) and 300 downstream15 000 new jobs KZN, with 500 downstream3% of payroll on learning programmes for black employees, over and above the 1% spent on the skills levy

Scarce Skills in Forestry

Forestry, Wood, Pulp and Paper

Relevant growth demand: targets are almost certainly wrong, need to be reviewed – closer to 6000,. Problems include land reclamation debates; number of hectares constrained; some shrinkage taking place in land use;

Main drivers: aging workforce.

Main factors in terms of critical skills. We are driving more timber from less land through critical skills development, therefore this should be an important focus.

Challenges with existing provision: not a lot of basic training (sawmilling etc). For pulp and paper we need a lot of higher levels (scientists, engineers)

Areas for intervention: Improve skills of existing employees; dedicated training centres for these skills; problems for reinvestmnt of timber; private companies don’t have cashflow to invest in new areas (costs more to clear land etc). Forums for large roleplayers to talk about the needs of their employees for training.

FurnitureStrategy Driver Furniture Industry Strategy

Growth demand 9 932 new jobs

Furniture Growth demand drivers: domestic market development,

empowerment, technology

Replacement demand: aging, remuneration (other sectors poaching our technical skills)

Main factors driving critical skills: technology, design, aging.

Challenges with training: appropriate accreditation, qualifications, staff, technology

Someone decided not to offer technical subjects in school, a big problem in industry

Partnerships with industry and training providers – the providers (esp FET colleges) approach only for placement – partnership ratther than a dumping ground

Important things the SETA can do: engage majority of employers not only Gauteng; engage more with SMMEs; turnaround times with grants and programs

Growth and Replacement Scenarios: Printing

Scenarios -1% 2% 5%Current total employment 75156 75156 75156Job losses forecast -7791 -7604 -7510New level of employment 67365 67552 67646Total replacement demand*

19364 19364 19364

Factor Totals

Retirement 4332



Migration 3758

Total 19364

Retirement Demand (Printing)Male Female Total

15-19 1,450 0 1,450

20-24 2,556 3,478 6,034

25-29 6,359 7,082 13,441

30-34 6,407 4,521 10,928

35-39 8,596 5,711 14,307

40-44 8,417 3,503 11,920

45-49 2,742 2,354 5,096

50-54 2,140 1126 3266

55-59 5011 2569 7580

Publishing and Print Media Strategy Driver Publishing Industry Strategy

Growth demand 0 new jobs forecast

Publishing and Print Media Move to digital driving industry, therefore not employment growth

Understanding how to use digital in business terms

Small niche market, individuals are not leaving industry thus no replacement demand

Critical skills: sustainability of business/market needs

Gap between younger and older employees – we have an aging workforce, training focused on bridging this gap

Institutions do provide training, but learners graduating are not fully competent when they enter the workforce

Engagement at all levels, pointing industry in right direction, assisting in meeting with stakeholders (eg universities)

Understanding the collaborative clustering, bringing it together in the industry

Funding for discretionary grant: training is in-house, often can’t be funded from DG – how do we do this?

List of experts in our industry, SETA to make use of this for eg. program design

Language in training is a concern

Straddling FPMSETA and MICSETA – SIC CODE SPLIT; INDUSTRY COMPETITION; MDDA, ENTRY HEQ BUT PORTFOLIO; PROFILE NB; AIP STRAT;

Is it possible to bring

Printing and PackagingStrategy Driver No Industrial Strategy As Yet

Growth demand ? new jobs

Printing and Packaging Strategy

Critical skills drivers

Technology changes

Multiskilling

Strengthening the Skills Pipeline

Grow skills pipeline into the industry – attracting new/right talent

Improve base level of learning within the sector

Generation Y factors

Succession planning/knowledge management to address aging workforce

Industrial strategy

Lack of industrial strategy in SA – upstream/downstream linkages

Building supply-side platform, capacity, throughput – incl HEI

Industrial cooperation

Printing No industrial strategy.

Growth demand issues: technology; poor levels of general education; upskilling of currently qualified staff to improve skills levels; aging workforce; shift from low skill to high skills base;

Are not training enough people overall; are promoting unqualified people to senior positions, need to qualify these people properly.

Critical skills drivers: science and technology; life skills at more basic levels; business skills for the succession planning strategy;

Challenges in terms of training provision: more than enough providers of artisan development; but at higher levels there are gaps, need to create programs and build HET capacity to do this;

Realistic funding model needs to be developed (especially to sustain the private training provider capacity)

Three most important things: develop an industry strategy; develop the higher level intellectual leadership; speed up development of new curriculum that’s been in process for the past three years

Obstacles to the industrial strategy: we need to understand why there isnt, deal with the challenges behind this. Industry currently fragmented, silo mentality that is inhibiting this. Also have seen steady decline in training of apprentices. We need representation and inclusivity.

RoI Planning More than 150 000 new jobs

Guesstimate of 10% replacement demand pa (on 209323 employees) = 100 000 existing employees will need to be replaced

Thus total of 250 000 people to be trained excluding critical skills development

Total skills budget of R200m pa?

Learnership = R25k

Apprenticeships = R35k

Skills program = R120 per credit, 60 credits?

ABET = R3500

Interns = R25k for 6 months

Therefore need to

Improve economy and efficiency of skills efforts

Improve completion and pass rates

Explore more cost-effective training

…

SUMMARY OF FPM INDUSTRIES SKILLS PLAN FINDINGS

Generic Patterns in Analysis Literature survey

Industrial strategies aim to achieve growth in employment, through various strategies

Labour market analysis

LMA shows high replacement demand (due to retirement/HIV)

Yet despite replacement demand, LMA shows overall negative employment growth in every single industry, because employers are buying machines and improving productivity

Stakeholder interviews and engagements

Almost unanimous that industry strategies are ambitious

Positive sentiment toward industrial strategies, constraints in industrial cooperation to achieve these

WSP/ATR/ETQA findings and project allocations?? Return on investment analysis will point to equity/effficiency baselines.

Generic Skills Priorities “Salvage” strategies?

Training layoff scheme?

State procurement

Turnaround/growth strategies

Collaborative clustering to inform when, how and what interventions take place

Organising some parts of sector

HET role in sector leadership development/think-tanks? Branding, international networks, retail linkages and SMME

FET role in SMME/coop development?

Supply-side strategies

Feeder systems into schools/FETs?

Specialist capacity/international linkages

Mainstreaming into FETs

Research partnerships with HETs?

Non-formal/”whole organisation” interventions

Succession planning linked to coaching and mentoring

HIV/AIDS strategy

Efficiency strategies

Effectiveness strategies

Non-Formal InterventionsA “More Developmental”

SETA? Non-formal interventions can be

conducted through Recruit/select sample of participant

companies/practitioners

Agree and develop package of tools (policies, procedures, ME criteria, codes of practice, etc)

Pilot, revise and link to grant windows

Non-Formal Interventions

Non-formal interventions can be conducted through

Recruit/select sample of participant companies/practitioners

Agree and develop package of tools (policies, procedures, ME criteria, codes of practice, etc)

Pilot, revise and link to grant windows

Clothing, Textiles, Footwear and Leather

Work closely with DTI, sector designations are an important growth driver (means preferential procurement will include local manufacturing) – our industry isn’t adequately prepared for this (barganing council, OSH, business plans, etc are weaknesses).

But this is a major potential lifeline to the current industry, which is struggling to survive

New skins and hides policy will also ensure local beneficiation, need to gear for this in finishing plans, die houses within southern africa

Informal sector needs not being adequatley addressed, is a major growth point – not high capitalisation required. Also not a lot of training, but there are career paths, business development skills required, quality assurance

Leather technologistss

Industry on verge of collapse, we need to link skills strategy to the survival strategies under discussion with DTI and the industry

Printing/Packaging Growth demand drivers: needs to be a national industrial strategy. Will help to give direction to the

industry.

Another driver is government itself – expressed demands for printed material, scale challenges (eg. textbooks = 30m books a year – how this is managed impacts on industry. Also example of etolling tender – thus state procurement is a demand driver that should be managed carefully.

Replacement demand: aging workforce, technological changes in industry

Skilled professionalism is needed

Poaching of staff is a problem

General skills shortage because industry is highly technical, unless training infrastructure exists to supply these skills we will always have a problem

Critical skills drivers: technology; supply of training;

Closure of centralised capacity resulted in proliferation of private training providers; FET capacity not yet build to address the gap

Print training is highly capital intensive, need FPMSETA to explore support in this. Eg, training facility for electronic origination.

Updating qualifications/standards or development of new ones – these will enable RPL and skills training to be properly focused

SETA support priorities: work closely with industry to build supply side capacity for FETS, including equipment. An industrial strategy would help. Also standardise learning material. Also SETA red tape is frustrating, SETA staff need to be better equipped within the industry to be able to lead the industry adequaely.

Leather and Footwear Beneficiation of ostrich and crocodile focus

No design institute

No specialist training for designers in terms of specific materials

Partnerships between industries and providers

- links between theory and practice/provider and workplace

Capacity-building to increase output

International training to benchmark internationally

Productivity focus

Niche market focus to competitiveness strategies

Profiling what we can do, where we can compete

Links between manufacturing and brand strategies – affiliations and international networking

Quality control issues and systems – ethical production focus to quality

Supply chain program to improve competitiveness

Training of people on learnrships – NQF 2 upwards career pathing

Growth demand optimistic

Policy levers and systems – eg. tracking systems for each hide in each ractory

Electrical and engineering side – provifer capacity in the more rural areas NB

skills planning for the fpm sector

Documents

annual performance plans

workplace skills plans

quarterly performance

performance requirements

institutional performance

performance planstop

strategic plans

prescribed information