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 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.
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?
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
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?
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