News Updates

Services Seta wins court case
6 May 2011

Dear MJ,

The Services Seta were successful in a court challenge this week against actions taken by the Minister of Higher Education and Training, Dr Blade Nzimande. The Minister wanted to force the Seta to adhere to a new constitution and appointed his own representative as Chair of the training authority.

The judgement is a reminder that even if the goals are laudable (which is the subject of much debate), the law still has to be followed.

The Skills Development Act (brought into law by the ANC government) set up the Setas as independent entities, ‘capable of suing and being sued’. It left the Minister heading the skills portfolio in the unenviable position of being blamed for any problems at the Setas, without much power to do anything about these ‘independent’ organisations. Many of the subsequent amendments to the SDA have been about strengthening the oversight power of the Minister.

It might be better if the Minister has more direct control over the organisations and how they operate – but if that is to happen then the correct legal procedures should be followed.

Subsequent to the Minister’s actions an amendment to the SDA and regulations on appointing CEOs was issued for public comment, without any fanfare.

Full details in this weeks newsletter.
Regards
Alan Hammond


Publishing Editor


10 November 2010

New Seta Landscape announced

Tue, 09 Nov 2010 08:03


Nzimande tiptoes through the Seta landscape
Sad to say, the Department of Higher Education and Training does not seem to be living up to its early promise of bold and insightful action on the skills development front.
In announcing his Seta (sector education and training authority) landscape to the media at Parliament this morning, Minister Blade Nzimande appears set to do little more than tinker with the structures and ignore serious systemic flaws – at least for the time being.
Twelve of the existing 23 bodies are due to be re-established voetstoots while a further eight see sub-sectors being shuffled from one to another at greater or lesser degree.
One new Seta is expected to be created from the ashes of three authorities that are financially not viable as independent entities or have performed so badly as to be decomposing rather than decaying.
In all – and as anticipated – the total number of Setas is reduced to 21 for the duration of phase three of the National Skills Development Strategy (NSDS3), which kicks off on 1 April next year.
The announcement follows six months of intense speculation on which of the Setas would survive skills development’s transition from the Department of Labour to the Department of Higher Education and Training (DHET). On 29 April this year, Dr Nzimande proposed both a framework for NSDS3 as well as the new landscape, calling for comment and submissions to be made to the National Skills Authority.
The NSA recommended that the following Setas have their mandates extended without change:
• FASSET (finance, accounting, management consulting 
   and other financial services);
• BANKSETA (banking);
• CHIETA (chemical industries);
• ETDPSETA (education and training development 
   practices);
• FOODBEV (food and beverage);
• HWSETA (health and welfare);
• INSETA (insurance);
• MQA (mining);
• AGRISETA (agriculture);
• SERVICES;
• TETA (transport); and
• PSETA (public service).
It was recommended that the PSETA be re-established for one year only.
The NSA’s rationale was that these Setas have “sufficient levy income to sustain their functions and serve their members. Some will require access to additional resources to extend their services to non-levy-paying members and support government objectives.
“Engagement by the DHET is required to ensure improved performance for at least two of these Setas,” suggested the National Skills Authority, referring to the bodies for transport and the public service.
The NSA recommendation comes as a “stay of execution” for the FOODBEV Seta which, according Dr Nzimande’s proposals six months ago, was to have been incorporated into a new agricultural authority that would also have included elements of the forestry industries.
The Setas that are due to survive with minimal change are:
CETA (construction) and ESETA (energy) – electrical contracting transfers from the latter to the former. Environment-focused activities will be drawn in to the skills development world for the first time, which will probably require ESETA to change its name to reflect a new energy and water focus (probably EWSETA).
LGSETA (local government) and SASSETA (safety and security) – Metro police and traffic law enforcement moves from safety and security to local government. Water distribution transfers from LGSETA to EWSETA.
MERSETA (manufacturing and engineering-related services) loses petrol retail to W&RSETA (wholesale and retail).
The NSA felt that this sub-sector shuffling would “enhance sector focus, ensure viability and consolidate learning (supply) pipeline planning”. It would also result in improved alignment to government and industrial growth strategies, with “potential disruption balanced by DHET and NSA support for the transfers”.
There is something of a surprise with the dismemberment of the Seta for media, advertising, publishing, print and packaging (MAPPP). The 29 April proposals had media and advertising moving to the SERVICES SETA but, instead, the National Skills Authority has urged that these sub-sectors – together with broadcasting – be assigned to ISETT (information services, electronics and telecommunications technologies).
A name change for ISETT is on the cards. The body will probably become known as the MICTSETA (media, information and communication technologies).
The remaining elements of MAPPP, creative industries and heritage, will be transferred to the current tourism and hospitality Seta (THETA), which will be required to improve its focus on sports development and change its name accordingly.
The new landscape sees formation of one new authority, the FPM (fibre-processing and manufacturing) Seta. This will be formed through amalgamation of the CTFL (clothing, textiles, footwear and leather) SETA and FIETA (forestry industries) as well as incorporation of the printing, packaging and publishing sub-sectors of MAPPP.
There was considerable speculation in the run-up to this morning’s Parliamentary news briefing as to whether Dr Nzimande would also outline a “clustering” model whereby Setas of an industry ilk would share certain back-office activities in order to standardise practice, reduce bureaucracy and improve Seta performance.
Without any indication that this would be a distinct feature of the new Seta landscape at time of publication, one can only hope that Dr Nzimande’s announcement will be accompanied by the promise that this is but a work in progress.
If not, it should be regarded as a major opportunity that has been lost or, in South African political parlance, another Rubicon that has not been crossed.

15 Sep 2010
Numsa strike may be over by Friday
Johannesburg – The strike by the National Union of Metalworkers (Numsa) in the automotive and fuel sector may be over by Thursday, the Fuel Retailers’ Association said late on Wednesday. 
CEO Reggie Sibiya told Sapa he was initially under the impression that Numsa had signed the wage agreement, but the union had not done so by the afternoon as there was “a problem with the mandating process”.
Sibiya said mandates still had to be received by Numsa from two regions,
However, “in principle” Numsa had accepted the deal, Sibiya said.
Earlier, he told Sapa that the parties had agreed to a wage increment of nine percent for the first year, eight percent for the second year and seven percent for the third year.
This excluded sector five, sector six and chapter three workers.
National Skills Summit
Government plans to open access to training
09-SEP-10
Higher Education and Training Minister Dr Blade Nzimande is focusing on a key agreement he has made with President Jacob Zuma to develop the workforce.
A skilled and capable workforce to support an inclusive growth path,’ is the Minister’s challenging mission.
“This requires a major shake-up in the higher education and training system. It means we all need to do things differently and synergise our efforts particularly in the area of skills training,” Nzimande said to delegates at the National Skills Summit.
“It is not only a matter of meeting targets and performance indicators, but one of meeting the deepest needs and desires of our people, especially rural people, the poor and the working class”.
“To create the kind of country that our people long for and deserve, we must meet their education and training expectations because these are the basis of so much more: a more developed economy, a higher standard of living and a richer social and cultural life for all”.
Minister Nzimande then highlighted five key areas to be addressed by delegates attending the Summit on behalf of business, labour, goverment and communities:
Establishing a credible institutional mechanism for skills planning
Increasing access to intermediate and high level learning for youth and adults who do not meet entry requirements for post-school programmes
Increasing access to occupationally-directed programmes in needed areas with special focus on artisan training
Increasing access to high level skills in target areas such as in the fields of engineering, animal and health sciences, physical and life sciences and teacher education
Research, development and innovation in human capital for a growing knowledge economy


There is increased optimism about a possible breakthrough in the about week-long strike in the automotive component and retail motor sectors over improved wages and working conditions.
The strike has now paralysed all seven of the local motor manufacturing plants because of shortages of component supplies.
Negotiations between the National Union of Metalworkers of South Africa (Numsa) and employer representatives for the component and motor retail sectors were continuing on Tuesday but the gap between the positions of the parties is narrowing.
Mark Roberts, convener of the component manufacturing sector at the motor industry bargaining council, said on Tuesday the parties to the negotiations were floating various proposals.
“It’s looking much better than in the last while. We’re floating proposals in the sectors and the gap between the positions of the parties is narrowing fast.”
Roberts said wage increases of 10 percent, 9 percent and 9 percent on minimum wages in a three-year agreement had been proposed for the fuel sector.
Increases in the fuel sector are subject to a fuel price margin adjustment by the energy minister.
Roberts said wage increases of 8 percent, 7 percent and 7 percent either on actual wages or a guaranteed increase, also in a three-year agreement, had been proposed for all the other sectors, including the automotive component sector.
“We’re waiting for the unions to come back with a formal response [to these proposals]. We’re probably not far off [a settlement]. The facilitator has indicated that this is the area [level] where a settlement lies,” he said.
Workers in the retail motor industry went on strike a week ago. The strike by about 4 000 workers in the tyre manufacturing sector commenced on August 30.



Attempts to obtain comment from the New Tyre Manufacturing Employers Association (NTMEA) were unsuccessful.
Production at Nissan South Africa’s Rosslyn plant shut down on Tuesday.
This means only General Motors South Africa’s (GMSA) is still operational out of the seven local vehicle plants.
Volkswagen South Africa shut its plant last Wednesday with most of the other plants shutting down production from the beginning of this week.
Veralda Schmidt, a Nissan South Africa spokesperson, said its Rosslyn plant had shut down production on Tuesday because of the supplier strike in the rubber and component industries.
Schmidt said the loss of production impacted negatively on the local and export market and in the long term could have a negative impact on how the country was viewed as a reliable export supplier.
She said loss of production amounted to about 220 vehicles a day, of which a third was targeted for export to sub Saharan Africa.
Denise van Huyssteen, a spokesperson for GMSA, said certain of its production lines were affected from Tuesday afternoon by the ongoing component sector strike.
“We anticipate more lines will be impacted by tomorrow [Wednesday] despite efforts to continue manufacturing operations. We are deeply concerned about the viability of the industry as industrial action like this sends a negative message regarding labour cost and flexibility in South Africa, and in so doing, we risk becoming a less attractive destination for future investment.”
“In the interest of protecting the South African economy, it is absolutely vital that all the stakeholders work together to resolve this strike as a matter of urgency,” she said.
Numsa to decide on latest motor industry wage offer JP du Plessis | Yesterday The National Union of Metalworkers of South Africa (Numsa) was on Wednesday expected to announce whether it would accept the Fuel Retailers’ Association and Retail Motor Industry’s revised wage offer. Numsa is demanding a 15 percent wage increase and rejected the RMI’s initial offer of a six percent. An ongoing wage strike in the industry was having a massive impact on the production of vehicle components while service at some petrol stations was a somewhat slower because some pump attendants were also on strike. But the RMI’s Jeff Osborne said retailers pitched an increase package on Tuesday which will see workers getting a 10 percent increase this year, followed by nine percent increases over the next two years.
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