Fibre Processing and Manufacturing (F P & M) SETA is a lead education authority & is mandated to ensure: F P & M workforce is Sector is sustainable and upskilled remains competitive 1 2 3 • Minister of HET • Formed through • Establishment brings announced SETA amalgamation of CTFL alignment with Govt’s landscape for period SETA, FIETA & printing, IPAP 2 & New packaging & publishing Economic Growth Path 2011-2016 in sub-sectors of MAPPP – consolidates human November 2010. SETA resources for • Saw formation of • Govt. took decision to manufacturing ONE new authority, cluster sectors to • Growing Fibre Processing & strengthen value-chain Manufacturing sector Manufacturing (F P linkages is core objective of & M) SETA. New Economic Growth Path & Development Strategy, creation of decent jobs given high labour & employment multipliers Vision/Purpose VISION / PURPOSE To provide the Fibre Processing and Manufacturing sector with a quality post-schooling education and training system that will produce a highly skilled and motivated workforce, enhancing productivity and competitiveness of the sector leading to sector growth and sustainable employment opportunities for all. Mission The Fibre Processing and Manufacturing Authority will: 1. Identify skills Develop quality 3. Provide opportunities 2 occupationally- for all, including the latent priorities and needs demands of SMMEs and based on directed learning the unemployed in collaborative input programmes satisfying the national skills development needs. from all key stakeholder groups within the F P & M Implement an integrated skills development Sector. qualifications framework to promote skills acquisition, career planning and access to the world of work LEGISLATIVE & OTHER MANDATES • Constitutional mandate: The Constitution of the Republic of South Africa, 1996 • Legislative mandate: Legal mandate of F P & M SETA defined by Skills Development Act, 1998 (Act No. 97), as amended in 2008, Skills Development Levies Act, 1999 (Act No.9), Employment Equity Act (Act. No. 55, 1998, The Public Finance Management Act, 1999 (Act No 1), South African Qualifications Authority Act, 1995, Regulations regarding the Establishment of Sector Education and Training Authorities, No. 27445, Regulations for Education and Training Quality Assurers, No. 1127 STAFFING STRUCTURE FOR MTEF FOR F P & M SETA • Staff establishment aligned with the skills development mandate priorities of NSDS III - has approximately 56 staff members . • In order to ensure productivity - the F P & M SETA human resources management function has implemented following measures: Drawn up detailed job profiles, including key performance areas and performance measurement criteria; Implemented the performance management of all staff related to their key performance areas, indicators and targets FUNCTIONS OF F P & M SETA 1.Promote job creation, economic growth & decent work 2.Co-ordinate development of overall training & education strategy 3.Develop integrated Sector Skills Plan 9. Conclude SLA with DG of Ministry of Higher Education & Training 8. Liaise with employment services of 4.Implement Sector Skills Plan DoL 5.Promote learnerships 9. Submit to DG budgets, reports & Perform functions of an Education & Training financial statements on its income & Quality Assurance Body expenditure as per PFMA, 1999 6.Liaise with National Skills Authority 7.Facilitate involvement of relevant govt. depts. 8.Promote training in SMMEs SPF is informed by key strategic POLICIES OF GOVT: Medium Term Strategic Framework [MTEF] National Skills Development Strategy III [NSDS III] National Economic Development Strategy –New Economic Growth Path National Human Resources Development Strategy of South Africa (HRDSSA) Rural Development and Poverty Alleviation Strategy SPF is informed by key strategic POLICIES OF GOVT: National Industrial Policy Framework [NIPF] Industrial Policy Action Plan [2010/11-2012/13] Provincial Growth and Development Strategy Innovation and Technology Strategy Integrated Growth and Development Plan / National Research & Development Strategy F P & M SECTOR REQUIREMENTS to meet strategic priorities of MTSF (2009-2014) • Strong focus on quality education, skills development, rural development, sustainable human settlements & sustainable use of natural resources – these issues powerfully linked to poverty reduction; social justice approach to sustainable development & national system of innovation Forestry Sector Profile • Forestry sub-sectors: forestry, wood products, furniture, pulp & paper • Majority employers located in KZN (31%), Gauteng (22%) • Majority of employers within Forestry sub-sectors • Male workforce -72% • African employees – 66.1% • Age Profile – majority aged between 25 -54 years • Education Profile: 64% of employees have GETC & below, 27% have completed FET qualification, 7% of sector resides in HET band Forestry Sector Profile • Occupational Profile: Majority of workforce resides in occupational category – craft & related trade workers (31%), Elementary workers (24%), Plant & Machinery Operators & Assemblers (22%) • Skills Priorities & Scarcity: Demand for Pest Controllers (24%), Truck Drivers (14%), agricultural mobile plant operators (12%), fire fighters, entomologists, forest scientists, forestry operation managers, furniture designing skills, upholsterer, cabinet makers, industrial spray painters, wood & paper manufacturing trade workers, paper & pulp mill workers, Forestry Sector Profile • paper products machine operators, process controllers, chemical process engineers, research & development managers, wood & paper manufacturing trade workers, sawmill / timber yard workers & wood machinists • Identified areas of skills development for employed workers: technical skills, general management & supervisory skills & risk management skills CTFL Sector Profile • Employs approx. 150 000 people • Majority of employees are women (64%) • Impt. Source of employment creation for semi-skilled & unskilled workers (comprise 83% of workforce) • Education Profile: • Age profile: Majority of employed are between 20-50 CTFL Sector Profile • Education Profile: 30.8% of sector resides in GET band, majority of workforce resides in FET band, 5.9% of workforce • Annual turnover of approx. R 35 billion • Accounts for 11% of tot. manufacturing employment • Contributes approx. 2.5% of GDP CTFL Sector Profile • Majority of sales generated from domestic market • Govt. identified CTFL as key sector for economic growth & job creation • Sector is most labour intensive in SA manufacturing • Sector is under huge pressure from Asian imports, weak domestic demand, aging machinery & technology & low levels of productivity • Skills priorities include production managers, IT administrators & technical trainers, production operators, pattern makers / graders, machine mechanics, fitters & turners, millwrights & electricians CTFL Sector Profile • Ability to create jobs in geographically underdeveloped areas – more readily than most manufacturing industries • Demands relatively high levels of low-skilled & semi- skilled workers • CTFL sub-sectors is key in fight against unemployment, poverty, rural marginalization & gender inequality PRINTING, PACKAGING & PUBLISHING SECTOR PROFILE • Employs approximately 49 399 workers in formal employment – further 22 000 workers employed on contract, freelance temporary basis • Critical skills priorities: Management & supervisory skills, as well as high level specialist & conceptual skills • Sector not supported by definite industrial strategies – this should become less significant as new F P & M sector improves value-chain linkages & places sub-sectors under influence of other related industrial strategies NSDS III & MTSF NSDS III launched by Minister in January 2011 forms basis of Strategic Plan Framework Requires sector skills strategies to contribute to achievement of country’s New Economic Growth Path & Social Developmental goals encapsulated in MTSF: • Speeding up growth and transforming the economy to create decent work and sustainable livelihoods • Massive programme to build economic and social infrastructure • Comprehensive rural development strategy linked to land and agrarian reform and food security NSDS III & MTSF • Strengthen the skills and human resource base • Improve the health profile of all South Africans • Intensify the fight against crime and corruption • Build cohesive, caring and sustainable communities • Pursuing African advancement and enhanced international co- operation • Sustainable resource management and use • Building a developmental state, including improvement of public services and strengthening democratic institutions MTSF recognizes “investment in quality education for all young people & in skills development should form bedrock of government’s approach President’s outcome no.5 • “ A skilled and capable workforce to support an inclusive growth path” • F P & M SETA has established indicators, targets and key activities per output that are measurable & contribute to the President’s Outcome No.5 President’s outcome no.5 • Output 1: Establishing credible institutional mechanism for skills planning & establishing partnerships & networks with key delivery forum partners. • Output 2: Increasing access to programmes leading to intermediate & high level learning calls on SETAs to make a difference in the lives of learners by aligning “training” to “adult basic education” President’s outcome no.5 • Output 3: Increasing access to occupationally-directed programmes in needed areas and thereby expand the availability of intermediate level skills – training of artisans is of critical importance. F P & M SETA must develop & operationalize QCTO Qualifications Framework. • Output 4: Increase access to high level occupationally- directed programmes – aims to assist post-graduate students. • Output 5: Relates to research, development & innovation in human capital for a growing knowledge economy – partner with public higher education or research institutions for innovation & new product development. Sector specific government policy & strategies to transform F P & M sector Impact of compliance with regard to the Government’s BEE strategy in order to achieve sustainable economic development Job creation & prosperity in the medium to long term. Framework For South Africa’s Response to the Intl Economic Crisis Training Layoff Scheme Sector Specific Government Policy Interventions to transform the Sector: National Industrial Policy Framework [NIPF]: Promotes more diverse value-added production & more labour-intensive industrialisation pathway to catalyze employment creation Industrial Policy Action Plan (IPAP 2) focuses on key areas of future development and seeks to grow economic activity (investment, jobs, competitiveness) in the CTFL & Forestry sectors, and bring about shift in the economy as a whole towards a more sustainable & competitive industry. Aligned to New Growth Path that is more labour-intensive & value-adding CSP for both Clothing & Textiles and Footwear and Leather sub-sectors Sector specific government policy & strategies to transform F P & M sector • The strategy for the Clothing & Textiles sub-sector is based on six key pillars: • Investment and technology • Upgrading the skills base • Improving innovation and design capacity • Improving firm-level competitiveness • Improving weak value chains • Addressing trade distortions, illegal imports and volatile exchange rates Sector specific government policy & strategies to transform F P & M sector • Footwear & Leather strategy calls for domestic firms to increase their competitiveness by investing in new technology and capital equipment, decreasing costs and investing in marking, design and product innovation. The strategy suggests that firms improve soft competitiveness variables such as delivery times, quality, reliability and flexibility to meet value- chain buyers demands. Only non-generic strategy element is the idea of a “Shared Resource Centre” - access to skills, technology, design improvement, cost cutting improvements would be centrally available and individual firms could access these when required. Sector specific government policy & strategies to transform F P & M sector • Footwear & Leather strategy calls for domestic firms to increase their competitiveness by investing in new technology and capital equipment, decreasing costs and investing in marking, design and product innovation. The strategy suggests that firms improve soft competitiveness variables such as delivery times, quality, reliability and flexibility to meet value- chain buyers demands. Only non-generic strategy element is the idea of a “Shared Resource Centre” - access to skills, technology, design improvement, cost cutting improvements would be centrally available and individual firms could access these when required. Sector specific government policy & strategies to transform F P & M sector IPAP 2 identifies key action programmes for the Forestry, Furniture, Pulp & Paper and Wood Products sub-sector: (i) Fast tracking issuing of water licences, transfer of assets & land reform process aligned to Forestry Sector Transformation Charter (provides for preferential procurement), management of fires (National Veld & Forest Fire Act (ii) Other key issues: Implementation Forestry Sector Transformation Charter & Climate Change, Support to SMME’s (iii) Priorities in furniture sub-sector includes establishment of furniture clusters in KZN, Western Cape & Gauteng, as well as furniture centres of competence for high level skills & technology training. Support for establishing charcoal manufacturing enterprises in EC & KZN, as well as biomass sub-sector development for SMME’s (iv) In the pulp & paper & wood products sub-sectors key action programmes provides for skills & technology upgrading Critical areas of focus for the PPP industry include: Sector specific government policy & strategies to transform F P & M sector (i) Industry not attracting right talent (ii) Need for product-process- or technology specific training (iii) Poor levels of general education (iv) Develop test and adopt RPL strategies for all occupations (v) Loss of important sector knowledge base with retirements: (vi) Impact of HIV/Aids Sector specific government policy & strategies to transform F P & M sector Youth Development Skills: Challenges exist in education system. Loss of capacity of youth who graduate at Grade 12 level with Mathematics & Science & who are lost to higher education & F P & M sector occupational opportunities. Number of learners in basic education schooling declining (2006-2009). In 2009, 28.3% & 28.2% of students enrolled in public higher education institutions into SET & business & management related studies Rural Growth & Development Strategy: Imperative that F P & M SETA support expanded public works programme (EPWP) & communities by making its resources available Provincial Growth & Development Strategy: Greater collaboration & alignment with both national & provincial goverments in support of industrial policy intervention & develop provincial sector strategy. Given the high concentration of F P & M industries in Gauteng, KZN, Western Cape & Mpumalanga it is paramount that provincial growth & sector strategies be consolidated Sector specific government policy & strategies to transform F P & M sector National Research & Development Strategy : Accentuate need for qualified R & D personnel & increasing funding for R & D activities Technology & Innovation Strategy: Research, science and technology innovation context is a significant driver of skills needs in SA. Improving science, technology, social and ICT skills are necessary for building knowledge economy & addressing needs of poor. Integrated Growth & Development Plan (IGDP): DWAFF launched IGDP (2011-2031) that sets out 4 strategic objectives : (i) Equity & transformation (ii) Growth & competitiveness (iii) Environmental sustainability (iv) Governance STRATEGIC PLAN FRAMEWORK FOR MTEF FOR F P & M SETA MAIN SOURCES OF REVENUE • The main sources of revenue for the SETA are: • Skills development levies • Skills development interest and penalties on late levy payments • Interest on investments • Donor funding from partnership and collaboration projects. DISTRIBUTION OF LEVY INCOME Grant = 10% Mandatory Pivotal Grant = 40% Discretionary Grant = 20% (Previously 50%) Admin Budget = 10% OBJECTIVES OF NSDS III Objectives of NSDS III NSDS Output 4.1 Establishing a credible institutional 220.127.116.11 Capacity is established within the mechanism for skills planning Department of Higher Education and Training to co-ordinate research and skills planning 18.104.22.168 Sector skills plans are professionally researched, provide a sound analysis of the sector and articulate an agreed sector strategy to address skills needs 22.214.171.124 Sector and nationally commissioned research and data is analysed, validated and captured in an integrated database that is accessible to stakeholders OBJECTIVES OF NSDS III Objectives of NSDS III NSDS Output 4.2 Increasing access to 126.96.36.199 SETAs research and identify middle level skills needs in their sectors and put in place strategies to occupationally-directed address them, particularly through the use of the public FET colleges and universities of technology working programmes in partnership with employers providing workplace-based training 4.2.12 Projects are established to address middle-level skills in each sector 188.8.131.52 SETAs establish projects and partnerships to enable the relevant number of artisans for their sector to be trained, to qualify and become work-ready 184.108.40.206 The National Artisan Development Project developed by JIPSA and now located in the DHET and M & E framework, is planned, managed and reported on, with interventions made where blockages occur 220.127.116.11 Sector skills plans identify the supply challenges in relation to high level scarce skills gaps and set out strategies for addressing them 18.104.22.168 Agreements are entered into between SETAs, university faculties and other stakeholders on appropriate interventions to support improved entry to priority programmes, increased work experience and experiential learning for students and access to post-graduate work 22.214.171.124 Sector skills plans identify the focal areas for research, innovation and development 126.96.36.199 Agreements are entered into between SETAs, university faculties and other stakeholders on flagship research projects linked to sector development in a knowledge economy 188.8.131.52 Programmes are put in place that focus on the skills needed to produce research that will be relevant and have an impact on the achievement of economic and skills development goals OBJECTIVES OF NSDS III Objectives of NSDS III NSDS Output 4.3 Promoting the growth of a public 184.108.40.206 The NCV is reviewed with inputs from stakeholders and the FET college system that is responsive curriculum is revised to ensure that it provides a sound foundational to sector, local, regional and national basis for building labour market relevant skills. skills needs and priorities 220.127.116.11 The programmes offered to meet industry needs, including those supporting apprenticeships and N-courses, are reviewed, updated and made available to and accessed by employers. 18.104.22.168 A highly articulated system of qualifications between the FET and university programmes 22.214.171.124 The capacity of FET colleges to provide quality vocational training is reviewed. Each college has a strategic plan in place to build capacity and engage in skills development programmes, including programmes offered in partnership with employers. 126.96.36.199 SETAs identify FET colleges with relevant programmes and put in place partnerships to offer vocational courses and work experience for college learners 188.8.131.52 The capacity of college educators to deliver programmes is reviewed. F P & M Skills development programmes and strategy, including work placement opportunities, are discussed with college educators OBJECTIVES OF NSDS III Objectives of NSDS III NSDS Output 4.4 Addressing the low level of youth and 184.108.40.206 A DHET-led process, including adult language and numeracy skills to stakeholders, develops a strategy enable additional training supported by all stakeholders 220.127.116.11 A national database tracks training and work opportunities, and reports on implementation of the strategy. 18.104.22.168 The DHET partners with stakeholders in the youth sector to put in place training and work experience projects for young people. OBJECTIVES OF NSDS III Objectives of NSDS III NSDS Output 4.5 Encouraging better use of workplace- 22.214.171.124 SETA stakeholders agree on the based skills development provision of substantial quality programmes for employed workers and report on the impact of the training 126.96.36.199 Sector projects are in place to address specific sector skills gaps 188.8.131.52 Cross-sectoral projects are established to address skills needs along local supply chains aimed at supporting local economic development OBJECTIVES OF NSDS III Objectives of NSDS III NSDS Output 4.6 Encouraging and supporting co- 184.108.40.206 SETAs identify in their skills planning research, established and emergent co- operatives, small enterprises, worker operatives and their skills needs. initiated, NGO and community 220.127.116.11 Sector projects are established by sector stakeholders supported by the NSF training initiatives 18.104.22.168 A national database of co-operatives supported with skills development is established and the impact of training reported on 22.214.171.124 SETAs, through their skills planning research, identify the skills needs of small and emerging businesses in their sector, and promote relevant programmes 126.96.36.199 Sector projects are developed that are piloted by SETAs and expanded through partnership funding 188.8.131.52 A national database of small businesses supported with skills development is established and the impact of training reported on 184.108.40.206 SETAs engage with trade unions, NGOs and community-based organizations in their sector and identify skills needs and strategies to address skills priorities 220.127.116.11 SETAs establish quality pilot projects 18.104.22.168 Stakeholders expand successful projects with support from the NSF OBJECTIVES OF NSDS III Objectives of NSDS III NSDS Output 4.7 Increasing public sector capacity for 22.214.171.124 SETAs with responsibility for public improved service delivery and supporting the sector training conduct analysis and reflection building of a developmental state on achievements and challenges and education and training plans for the public sector are revised and programmes are implemented to build capacity. 126.96.36.199 DHET leads a discussion on factors impacting on provision and publishes proposals on improving the institutional framework for public sector education and training. 188.8.131.52 Sector skills plans set out the capacity needs of relevant departments and entities 184.108.40.206 Plans and funding arrangements are agreed between the relevant departments / entities and the SETAs, and reported on. OBJECTIVES OF NSDS III Objectives of NSDS III NSDS Output 4.8 Building career and vocational 220.127.116.11 Career guides are developed with labour guidance market information from SETAs, addressing sub- sectors within their sector 18.104.22.168 Sector stakeholders are engaged and programmes are adjusted to meet the skills and qualification needs to promote comprehensive career development.
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