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Myth or Reality - the Skills Development Act destroyed the apprenticeship learning system - Empirically based Workforce Planning

The Human Sciences Research Council has recently released an HRD Data Warehouse of critical information essential for all companies embarking on workforce planning initiatives

The HRD Data Warehouse contains research on the broad areas of education, employment and skills in South Africa. Information is available in the form of documents that may be viewed and downloaded, tables of summarised statistics and information on various databases.

The HRD Data Warehouse may be accessed by following this URL: http://hrdwarehouse.hsrc.ac.za or, if this link is not operational, by visiting the HSRC homepage http://www.hsrc.ac.za/

The importance of accessing this database to inform your workforce planning or employment equity initiatives cannot be overemphasised. It will also serve to overcome typical myths which have existed about the South African workplace for many years.

To read more about or to register for the Workinfo.com Workforce and Succession Planning course – click here.

One simple illustration of this is to explore the issue of apprenticeships. Many have held the view that the introduction of learnerships and the associated Skills Development Act undermined the very successful apprenticeship learning system. We need only look at the list of Critical and Scarce skills lists published by DOL to realise that many of the artisan trades listed therein we developed through the apprenticeship training system.

So was the SDA legislation to blame? The simple answer is No.

Apprenticeships have been on the decline since the late 1980's. Viewing the data available from the HRD Data Warehouse, the following picture emerges:

Using the data in the table above, when doing an age analysis, the following interesting facts emerge:- 

Year No. of qualified apprenticeships Probable age of qualified apprenticeships in 2008 (assuming average age was 20 yrs when qualified)

1970

5500

58

 

 

1971

6050

57

 

 

1972

7000

56

 

 

1973

7000

55

 

 

1974

8000

54

 

 

1975

8050

53

 

 

1976

8050

52

 

 

1977

8500

51

 

 

1978

9500

50

67650

25%

1979

9600

49

 

 

1980

10000

48

 

 

1981

10500

47

 

 

1982

11000

46

 

 

1983

12000

45

 

 

1984

12000

44

 

 

1985

13500

43

 

 

1986

13100

42

 

 

1987

13000

41

 

 

1988

11000

40

123700

46%

1989

8000

39

 

 

1990

7500

38

 

 

1991

7200

37

 

 

1992

8000

36

 

 

1993

9550

35

 

 

1994

7000

34

 

 

1995

5000

33

 

 

1996

3000

32

 

 

1997

4874

31

 

 

1998

4933

30

65057

24%

1999

5145

29

 

 

2000

5600

28

 

 

2001

3191

27

 

 

2002

2916

26

 

 

2003

2779

25

 

 

2004

2548

24

22179

8%

 

 

 

 

 

Total

270,586

 

 

 

  Some preliminary conclusions

  • 25% of all qualified apprentices are 50yrs or older and therefore will be leaving the labour market in 10 to 15 years

  • 46% of … all qualified apprentices are now aged between 40 and 50 years.

  • Therefore, 71% of all qualified apprentices of the total intake for the period 1970 - 2004 will be retiring over the next 20 years.

  • Only 8% of apprentices are aged between 24 and 30yrs.

 Unless planning is put in place now, within 15 years we will start feeling the drastic skills shortage in this sector. Thanks to the innovative thinking of the Minister of Finance, the new SDA Act will reinvigorate apprenticeship scheme along with SARS budget plans.

An even more disturbing feature is the decline in of apprenticeships in specific high growth and critical economic sectors

The question then, is now having access to this data what measures is your organisation putting in place to ensure that it has the right people in the right place for the next 5 - 10 years?

To read more about or to register for the Workinfo.com Workforce and Succession Planning course – click here.

Recent developments since this article was first published

Finally, government is waking up to this emerging crisis in the shortfall of qualified artisans:-

Public Works Department calls upon retired engineers and artisans, Sat, 26 Feb 2011 19:29

The minister’s objective for this programme is to address the artisan shortage in South Africa. It has been found that the average current age of an artisan is 55 years and above, and the Minister of Higher Education has indicated that 70 000 artisans have to be trained within the next five years

Artisans trades DoL Report.pdf This report notes that it is estimated that nearly three quarters (72,94 per cent) of Artisans are 40 years and older.Eskom races against skills blackout, Wed, 23 Mar 2011

30% of Eskom’s artisans, technicians and engineers are approaching retirement, says Public Enterprise Minister, Malusi Gigaba. Eskom is now in a race to counteract the growing skills divide through its initiatives and investments, but is it too little too late?

 

 

 
Massive drive to increase apprenticeships

 

Cape Town – State-owned enterprises (SOEs) have embarked on a massive drive to train up engineers, artisans and technicians over the next three years, the Minister of Public Enterprises Malusi Gigaba said today, 1 June 2011.

 

Gigaba told a media briefing shortly before presenting his Budget Vote in Parliament this morning, that his department planned to increase the number of artisans trained by its eight SOEs by 60% – from the current 4 273, to 6 780 in the coming year.

 

There are currently 9 000 students at the eight SOEs, which also include 2 242 trainee engineers and 1 064 technician students.

 

Transnet and Eskom, which together employ about 90 000 people, would play a central role.

 

While Transnet would increase their artisans threefold – from 500 to 1 500, Eskom plans to more than double the number of apprenticeships it offers, from the current 4 500 to 10 000 by 2015.

 

Gigaba said he was engaging with the Minister of Higher Education and Training, Blade Nzimande, to get access to National Skills Fund to finance learners placed at the department’s parastatals.

 

The department also intends to engage with engineers in Eskom who are about to retire, to provide mentorship in FET colleges.

 

Turning to infrastructure spending, Gigaba said South Africa still had a serious infrastructure backlog, much of it owing to the sharp decline in investment in this area between 1976 and 2004.

 

”Had we been consistently investing at 10% of GDP in infrastructure between 1994 and 2009, we would have invested a further, R1.5 trillion in today’s currency,” Gigaba revealed.

 

He said SOEs were running at 75% or less of their capacity largely because of a shortage of funds.

 

To tackle this, Gigaba said the department would also begin engaging more actively with the private sector to fill the funding gap which exists in financing infrastructure projects.

 

The department had also implemented a Competitive Supplier Development Programme, which requires SOEs to have a more focused approach to procurement when planning.

 

This would be complemented by a drive to support localisation of production.

 

The department would soon begin holding bi-monthly meetings with chairpersons and chief executives of SOEs that fall under the department.

 

“These meetings will systematically identify areas requiring productivity improvements and define interventions in these areas,” said Gigaba.

 

The presidential review committee report looking at the landscape, governance and direction of all the country’s more than 300 SOEs is expected to be released in September, he said, adding that “intensive work” was under way on the review by expert teams.

 

 

Gigaba, in consultation with Cabinet, was also reviewing the remuneration of SOE executives and board members.

 

During the current financial year, the eight parastatals under the department would invest over R105 billion, with the bulk to be spent on infrastructure.

 

Most of this would go to Eskom (R76 billion), Transnet (R25.8 billion, of which R15 billion will be on rail) and Broadband Infraco (R500 million).

 

The R105 billion investment is expected to create about 13 000 direct jobs and a further 40 000 jobs in supply chains jobs, said Gigaba.

 

Eskom is expected to spend R540 billion on infrastructure until 2017.

 

The parastatal contributes about three percent to GDP.

 

Eskom has since April last year signed contracts, worth 373MW in capacity, with five independent power producers.

 

The electricity utility has also signed up about 200MW of municipal regeneration for this winter.

 

Gigaba also announced that the African Development Bank had approved a $365 million for Eskom to fund a 100MW wind and a 100MW concentrated solar power plant.

 

Eskom is expected to hear later this year about a $250 million loan it had applied for from the World Bank for funding clean energy.

 

Transnet, meanwhile, would spend R110.6 billion on infrastructure over the next five years, which includes updating ports by investing in new equipment and a drive to fund the local production of locomotives.

 

“Given the scale of our national demand over the next 15 years, we will be a significant market globally for locomotives and we will use this as an opportunity to ensure that South Africa becomes a global manufacturing hub for electrical and diesel locomotives, in partnership with leading original equipment manufacturers and their home countries,” said Gigaba.

 

He said his department was in talks with the Department of Transport on the planned Prasa fleet renewal programme.

 

Added to this, his department was also talking to the Industrial Development Corporation (IDC) to help fund investment in procurement and supply chain initiatives.

 

The new multi-purpose pipeline connecting Durban to Johannesburg would be commissioned in the last quarter of this year and is expected to be fully operational by December 2013, said Gigaba.

 

He said the department wanted South African Airways (SAA) to enter the African market more rigorously to take South Africans into Africa and bring tourists to South Africa.

 

SAA should compete more strongly against airlines such as Air France and Emirates Airlines, which dominate the continent’s skies, he said.  SA Express, which currently flies to five countries, also needed to fly to more destinations in the region.

 

In the meantime, SAA would modernise its existing fleet by procuring 25 new planes over the next two years to cover long-range as well as short-to-medium range flights, said Gigaba.

 

He said a new turnaround strategy was being developed for military equipment parastatal, Denel, to bring the organisation into a healthy balance sheet following the unsuccessful implementation of a 2005 turnaround strategy.

 

Gigaba said Denel needed to rethink its strategic direction and explore non-defence capabilities.

 

He said state-owned enterprises could contribute to the New Growth Path – which aims to create five million jobs by 2020 – by providing infrastructure that can add more jobs, expanding procurement of locally-manufactured components and by keeping tariffs for services at a competitive level, and thus helping keep costs down in economy.

 

He singled out five areas in which SOEs could improve their governance, namely: planning, funding, procurement, productivity improvement and integrating SOE initiatives more in line with government programmes. – BuaNews

 

 

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