CHAMBER: FAST MOVING CONSUMER GOODS (FMCG) AND PHARMACEUTICALS

SUBSECTOR: PHARMACEUTICALS

MARCH 2014

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Please Note:

The CHIETA developed subsector skills plans for the first time in 2013/2014, to achieve the mandate of the Chambers in terms of schedule 9(a) of the SDA 97 of 1998; to consult with the 9 sub-sectors of the Chemical Sector in areas of skills development and planning. The objective of such consultation is to compile a SSP for the sector that takes into consideration areas of skills demand, and skills supply.

The CHIETA subsector skills plans are a great start but will continue to be strengthened going forward as work in progress with particular emphasis on detailed planning.

TABLE OF CONTENTS

1 INTRODUCTION......................................................................................................................1

1.1 BACKGROUND........................................................................................................................1

1.2 SCOPE OF THE SUBSECTOR....................................................................................................1

1.3 FORMAT OF THIS SUBSECTOR SKILLS PLAN...........................................................................2

2 PROFILE OF THE SUBSECTOR...................................................................................................3

2.1 OVERVIEW OF THE SUBSECTOR.............................................................................................3

2.2 ORGANISATIONS IN THE SUBSECTOR....................................................................................4

2.2.1 EMPLOYERS AND EMPLOYER ORGANISATIONS.............................................................4

2.2.2 INDUSTRY ASSOCIATIONS..............................................................................................5

2.2.3 TRADE UNIONS..............................................................................................................5

2.3 EMPLOYEES IN THE SUBSECTOR............................................................................................6

2.3.1 TOTAL EMPLOYMENT....................................................................................................6

2.3.2 TYPE OF EMPLOYMENT..................................................................................................6

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2.3.3 EQUITY PROFILE.............................................................................................................7

2.3.4 EDUCATIONAL QUALIFICATIONS....................................................................................8

2.3.5 AGE..............................................................................................................................10

2.4 CONCLUSION.......................................................................................................................12

3 ECONOMIC GROWTH AND FACTORS IMPACTING ON THE SUBSECTOR..................................13

3.1 INTRODUCTION....................................................................................................................13

3.2 ECONOMIC GROWTH...........................................................................................................13

3.3 FACTORS THAT IMPACT ON THE SECTOR.............................................................................14

3.3.1 LEGISLATION, REGULATIONS, PLANS AND POLICIES....................................................15

3.3.2 RESEARCH AND DEVELOPMENT...................................................................................18

3.3.3 ACCESS TO MEDICINE..................................................................................................18

3.3.4 THE DEVELOPMENT OF EXPORT MARKETS..................................................................19

3.3.5 COUNTERFEIT MEDICINES............................................................................................19

3.3.6 TRANSFER OF TECHNOLOGY........................................................................................19

3.3.7 GLOBAL INTEGRATION.................................................................................................20

3.4 CONCLUSION.......................................................................................................................20

4 THE DEMAND FOR SKILLS IN THE SUBSECTOR........................................................................22

4.1 TRENDS IN EMPLOYMENT....................................................................................................22

4.2 THE OCCUPATIONAL COMPOSITION OF DEMAND...............................................................23

4.3 CONCLUSION.......................................................................................................................29

5 THE SUPPLY OF SKILLS TO THE SUBSECTOR............................................................................31

5.1 NEW ENTRANTS TO THE LABOUR MARKET..........................................................................31

5.2 THE TRAINING AND DEVELOPMENT OF EMPLOYEES...........................................................34

5.3 CONCLUSION.......................................................................................................................36

6 SKILLS SHORTAGES IN THE SUBSECTOR.................................................................................37

6.1 SKILLS SHORTAGES IN THE SUBSECTOR...............................................................................37

6.2 TRAINING EMPLOYEES.........................................................................................................39

6.3 CONCLUSION.......................................................................................................................40

7 SKILLS PLAN FOR THE SUBSECTOR.........................................................................................41

REFERENCES…………………………………………………………………………………………………………………………………….41

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LIST OF TABLES

Table 2-1 Levy-paying companies and WSP submissions......................................................................4Table 2-2 Levy-paying companies and WSP submissions in the Pharmaceutical Subsector..................5Table 2-3 Highest qualification level of employees in the Pharmaceutical Subsector...........................8Table 2-4 Occupational distribution of employees whose qualifications were not indicated...............9Table 2-5 Occupations by age in the Pharmaceutical Subsector.........................................................11Table 4-1 Average percentage change in employment, 1970-2020....................................................23Table 4-1 Managers in the Pharmaceutical Subsector.........................................................................24Table 4-2 Professionals in the Pharmaceutical Subsector...................................................................25Table 4-3 Technicians and Associate Professionals in the Pharmaceutical Subsector.........................26Table 4-4 Clerical Support Workers in the Pharmaceutical Subsector.................................................27Table 4-5 Service and Sales Workers in the Pharmaceutical Subsector...............................................28Table 4-6 Skilled and Related Trades Workers in the Pharmaceutical Subsector................................28Table 4-7 Plant and Machine Operators and Assemblers in the Pharmaceutical Subsector................29Table 4-8 Elementary Occupations in the Pharmaceutical Subsector..................................................29Table 5-1 Number of diplomas and first degrees awarded in Chemistry and Pharmaceutical Science: 2001-2011...........................................................................................................................................33Table 5-7 Number of national diplomas and first degrees awarded in selected fields in Life Science: 2010 - 2011..........................................................................................................................................33Table 5-5-1 Training opportunities in the Pharmaceutical Subsector..................................................35Table 6-6-1 Vacancies in the Pharmaceutical Subsector......................................................................38Table 6-2 Learning interventions to address scarce skills, 2011/2012................................................40

LIST OF FIGURES

Figure 2-1 Total employment in the Chemical Sector and its subsectors..............................................6Figure 2-2 Type of appointment of employees in the Pharmaceutical Subsector.................................6Figure 2-3 Race distribution of employees in the Pharmaceutical Subsector........................................7Figure 3-1 Average percentage change of Gross Value Added: 1970-2020.........................................14Figure 4-1 Employment in the Pharmaceutical Subsector compared to total employment in the Chemical Sector from 1970 to 2012....................................................................................................22Figure 4-2 Main occupations in the Pharmaceutical Subsector...........................................................23Figure 5-1 Proportion of employees who received training opportunities according to occupational category: March 2012..........................................................................................................................34

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ACRONYMS AND ABBREVIATIONS

AIDS Acquired Immune Deficiency SyndromeAPIs Active Pharmaceutical IngredientsART Antiretroviral TreatmentARVs AntiretroviralsASGISA Accelerated and Shared Growth South AfricaBBBEE Broad-based Black Economic EmpowermentCAGR Compound Annual GrowthCEPPWAWU Chemical, Energy, Paper, Printing, Wood and Allied Workers UnionCFO Chief Financial OfficerCHIETA Chemical Industries Sector Education and Training AuthorityCMS Alliance of major European law firmsDAC Department of Arts and CultureDEAT Department of Environmental Affairs and TourismDHET Department of Higher Education and TrainingDNA Deoxyribonucleic acidDPLG Department of Provincial and Local GovernmentDST Department of Science and Technologydti Department of Trade and IndustryDWAF Department of Water Affairs and ForestryEPA Environmental Protection AgencyFET Further Education and TrainingFMCG Fast Moving Consumer GoodsGDP Gross Domestic ProductGIWUSA General Industries Workers Union of South AfricaHET Higher Education and TrainingHIV Human Immunodeficiency VirusHRDC-SA Human Resource Development Council of South AfricaICH International Conference on HarmonisationICT Information Communication TechnologyIDC Industrial Development CorporationIFPMA International Federation of Pharmaceutical Manufacturers and AssociationsIGPA International Generics Pharmaceutical AllianceIK Indigenous KnowledgeIMSA Innovative Medicines South AfricaIPAP Industrial Policy Action PlanIPRs Intellectual property rightsJIPSA Joint Initiative for Priority Skills AcquisitionJSE Johannesburg Stock ExchangeMCA Marketing Code AuthorityMCC Medicines Control CouncilMN Multi-nationalNAPM National Association of Pharmaceutical ManufacturersNDoH National Department of HealthNECSA South African Nuclear Energy CorporationNEPAD New Partnership for Africa's DevelopmentNGOs Non-Governmental OrganisationsNGP New Growth Path

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NHI National Health InsuranceNPAT Net profit after taxNQF National Qualifications FrameworkOFO Organising Framework of OccupationsOHSC Office of Health Standards CompliancePHC Primary Health CarePHIF Public Health Innovation ForumPIASA Pharmaceutical Industry Association of South AfricaPPPFA Preferential Procurement Policy Framework ActQCTO Quality Council for Trades and OccupationsQLFS Quarterly Labour Force SurveyR&D Research and DevelopmentSACWU South African Chemical Workers UnionSADC South African Development CommunitySARS South African Revenue ServicesSEP Singly Exit PriceSHE&Q Safety, Health, Environment and QualitySIC Standard Industrial ClassificationTB TuberculosisTRIPS Trade-Related Aspects of Intellectual Property RightsUASA United Association of South AfricaUSD United States DollarWHO Word Health OrganisationWSP Workplace Skills Plan

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EXECUTIVE SUMMARY

INTRODUCTION

The Fast Moving Consumer Goods (FMCG) and Pharmaceuticals Chamber comprises two subsectors among the nine CHIETA subsectors: FMCG and Pharmaceuticals. Pharmaceutical products are in a separate subsector due to their highly controlled (registration, manufacturing and distribution) environment, as well as the impact of Government in controlling the major share of the end-use market. Economic activities in the Pharmaceutical Subsector are defined by SIC Code 33530: Manufacture of pharmaceuticals, medicinal chemicals and botanical products, which include: Manufacture of medicinally active substances; processing of blood; manufacture of medicament (antisera and other blood fractions, vaccines and diverse medicaments, including homeopathic preparations); manufacture of medical diagnostic preparations; manufacture of radioactive in-vivo diagnostic substances; manufacture of biotech pharmaceuticals.

The pharmaceutical industry is a knowledge-intensive sector, comprising R&D, manufacturing and sales and distribution.

The Pharmaceutical Subsector is linked with many other economic sectors, subsectors and industries, especially the health sector, tertiary education indigenous knowledge (IK), the broader chemical sector, as well as trade and industry.

PROFILE OF THE PHARMACEUTICAL SUBSECTOR

There are 131 levy-paying companies in the Pharmaceutical Subsector, which forms 8.5% of levy-paying companies in the Chemical Sector as a whole. Sixty-four of these companies submitted workplace skills plans (WSPs) to CHIETA in 2012; this represents almost half (48.9%) of the levy-paying companies in the Pharmaceutical Subsector. Even though the levy-paying companies in the subsector only forms 4.2% of levy-paying companies in the Chemical Sector as a whole, they contributed 12.9% of the total levies paid in the Chemical Sector in 2012.

About a third (32.8%) of levy-paying companies in the subsector was categorised as micro. Only seven (16.3%) of them submitted WSPs. Conversely, large companies constituted less than a quarter of all levy-paying companies in the Chemical Sector and 80.6% of them submitted WSPs. There are four large pharmaceutical firms listed on the JSE: Aspen Pharmacare, Adcock Ingram, Cipla Medpro and Litha Healthcare. Aspen Pharmacare has factories in Kenya and Tanzania, while Adcock Ingram manufactures drugs in Ghana, and has a presence in Kenya. Half of the small and almost two thirds (61.3%) of medium sized companies submitted WSPs in the 2012 period.

The Pharmaceutical Subsector employed 22 100 people – 14.2% of the employees in the total Chemical Sector. In this regard it is the fourth largest subsector in the Chemical Sector. Most (87.5%) employees in the subsector were permanent workers. In terms of equity 43.8% of workers were African, females constituted just more than half (54.4%) of the workforce, and 0.5% of workers were living with a disability. Females formed the majority in all occupational groups in the Pharmaceutical Subsector, except in the managerial, skilled and trades workers, and plant and machine operators and assemblers categories. Females comprised 47.2% of managers, two-thirds (66.4%) of the professionals and just more than half (56.2%) of the technicians and associate professionals.

In terms of educational qualifications more than half (54.5%) of the workers had a post-school qualification. This is an indication of the nature of the subsector; a large contingent of highly qualified people is employed in the subsector. A further 33.8% of workers held qualifications at NQF Level 4. The average age of all workers in the Pharmaceutical Subsector was 41. Managers and service and sales workers had the highest (44) average age; while professionals were the youngest

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group with an average age of only 39 and only 4.2% were nearing retirement. This could be an indication that professionals become managers during their career paths.

ECONOMIC PERFORMANCE AND FACTORS IMPACTING ON THE SUBSECTOR

The Pharmaceutical Subsector has a strategic role in the South African economy (especially in healthcare, science and tertiary education) and contributes 1.6% to South African GDP. Furthermore, the average percentage change in GDP over five-year periods from 1970 to 2010 shows that the subsector outperformed the whole Chemical Sector and the total economy for large parts of the period. The projected figures show an average of 2.8% for the 2010-2015 period and 4.0% for the 2015-2020 period.

It is the largest pharmaceutical sector in Africa and was estimated at R30 billion in 2011. Globally, however, the South African pharmaceutical sector accounts for only 0.4% by value and 1% by volume and it had a negative trade balance of R14.84 billion as a result of imports of R15.96 billion against exports of R1.12 billion in 2011. The pharmaceutical industry is vulnerable to competition with imports from low-cost countries, but this situation is due for improvement with the revised Preferential Procurement Policy Framework Act (PPPFA) Regulations that empowers the dti to designate locally manufactured pharmaceuticals in State procurement contracts. The Pharmaceutical Subsector is the fifth largest contributor to South Africa’s import burden, which needs to be reversed whilst still ensuring that affordable healthcare is available.

The pharmaceutical industry is, because of its nature, subject to certain regulations. The Medicine Control Council (MCC) is the statutory body that controls medicine registration and regulatory processes. Currently there are requirements, regulations, plans and policies pertaining to aspects such as health service standards, local manufacturing, access to export markets, intellectual property rights (IPR) and IK.

The establishment of Ketlaphela, a joint venture between Government through Pelchem, and Lonza, a leading global player in pharmaceuticals, will have an influence on the growth of the subsector. This R1.6 billion project will result in the establishment of the first pharmaceutical plant to manufacture active pharmaceutical ingredients for antiretroviral medicines in South Africa. This is in line with the country’s plan to address HIV and AIDS through local and cost effective production of antiretroviral drugs. Ketlaphela will significantly reduce the country’s dependence on imported drugs and will provide a security of supply of priority drugs and stable pricing with less sensitivity to exchange rate fluctuations.

THE DEMAND FOR SKILLS IN THE SUBSECTOR

The demand for labour in absolute numbers in the Chemical Sector has been declining steadily over the last two decades, with investments in capital equipment being largely used to replace labour. The reduction in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards the higher level skills. Employment in the Pharmaceutical Subsector more or less followed the same trajectory as total employment in the Chemical Sector. Employment grew steadily from 1970 to the early nineties. It then dropped steadily until 2000 but increased again until 2005, decreasing again in the 2005 to 2010 period. The projected growth is 0.7% for the 2010 to 2015 and 1.1% for the 2015 to 2020 period.

The largest occupational group in the Pharmaceutical Subsector is professionals, with 25.5% of employees. This is followed by the managerial group (14.9%) of which many are professionally qualified. The size of the elementary occupational group (14.6%); technician and associate professional group (14.5%); and plant and machine operator and assembler category (14.1%) are in the same range, in support of production processes. The sector does not employ many (2.2%) artisans. Although the service and sales workers component is small (1.4%), the Pharmaceutical Subsector employs many professionals as technical sales people..

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THE SUPPLY OF SKILLS TO THE SUBSECTOR

The supply-side of the labour market consists of the stock of skills – the skills currently employed in or available for work in the subsector and the flow of skills – the flow of new entrants into the market. In the analysis of the flow of skills the following is considered: the output from the basic education system, the further education and training colleges and higher education and training institutions. Work-based training such as apprenticeships and learnerships also plays an important role in the flow of new entrants to the market.

In respect of the supply of new skills to the subsector there has been substantial growth in the numbers of new graduates from universities and universities of technology in certain engineering fields. In terms of average annual output of national diplomas, growth is reported at 7.0% for diplomas in chemical engineering and technology and 6.0% for first degrees in the same field. Despite these positive growth trends, increases have not yet been sufficient to meet the needs of the national economy, the Chemical Sector, and the Pharmaceutical Subsector in particular. In order to ensure future growth it will be necessary to support higher education institutions through a variety of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace-training opportunities for students from the universities of technology.

The national diplomas in Chemistry increased steadily over the period 2001 to 2011 at an average annual growth rate of 5%. First three-year degrees increased until 2009. Figures dropped in 2010 - possibly because of the changes in the classification system. First four-year degrees in Pharmaceutical Sciences increased at an average annual growth rate of 4% over the 2001 to 2011 period. Information on output in the fields Botany/Plant Biology, Microbiological Sciences & Immunology, Pharmacology & Toxicology and Biotechnology is at this stage insufficient to discern any trends.

The output from the school system stays a concern in respect of the following: inadequate (in terms of quantity and quality) supply of school leavers with Mathematics and Physical Science passes that can pursue studies to become engineers, technologist, technicians and artisans; and inadequate education levels of the general workforce that enters the Chemical Sector without previous training. The supply of new skills from the further education and training sector into the Chemical Sector has traditionally been very limited. However, government’s recent focus on increasing both the quality and quantity of output from further education and training colleges indicates that this sector may in future play a more important role in the supply of skills to the Chemical Sector.

The skills of current employees need to be augmented in the workplace in order to ensure that workers acquire the skills necessary for specific positions, that they can progress in career paths and that they remain abreast of new technologies and developments in their specific fields. Employers are to a large extent responsible to ensure that employees are afforded further education and training opportunities.

In 2011/2012 training opportunities were afforded to almost two thirds (64.5%) of employees in the Pharmaceutical Subsector. A quarter of professionals received training. About 15% of managers, technicians and associated professionals; plant and machine operators and assemblers; and workers in elementary occupations, received training respectively. Stakeholders in the Pharmaceutical Subsector indicated that a lot of in-house training is being done in the subsector to address specific specialised shortages. In total about 58 441 training opportunities were afforded to employees (one employee can have access to more than one training opportunity). Just more than a quarter (29.0%) were induction training, about another quarter (26.0%) were job specific development programmes, and almost another quarter (23.2%) short courses. Just more than a tenth (11.5%) of the opportunities related to skills programmes.

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Stakeholders indicated that there is a range of supply constraints that has an impact on the subsector. Some of the constraints are insufficient funding for training, the use of non-accredited short courses, the lack of a structured internship, the lack of partnerships with FET colleges and HEIs, and the lack of a formalised framework for mentoring and coaching.

SKILLS SHORTAGES IN THE SUBSECTOR

Of the 64 organisations whose WSPs were submitted to CHIETA in 2012, 30 (46.9%) indicated that they experienced a scarcity of skills. The total number of people reported to be needed in occupations in which there were skills shortages is 506; this equates to 2.3% of total employment in the subsector. The data shows that the skills of pharmacist assistants and industrial pharmacists are highly in demand (this was confirmed by stakeholders at a workshop). The shortage of pharmacist assistants is to a large extent contributed to the fact that many of them are trained to become regulatory pharmacists that are very scarce and there are not many training providers that train pharmacist assistants.

Stakeholders also confirmed the shortage in clinical research associates, quality validation technicians, mechatronic skills, quality engineers (mechanical and electrical engineers are usually trained in-house to become quality engineers), clinical trial assistants and dieticians. Some of the reasons that were given for the difficulty in finding certain skills relate to the lack of training in certain fields, the lack of articulation between qualifications, legal requirements for certain positions and insufficient development of career paths that lead to certain occupations. The CHIETA is currently engaged in a range of partnerships, agreements and plans to contribute to both the development of new skills for the sector as well as the development of skills within the existing workforce. These initiatives range from support for further and higher education institutions and partnerships with government and industry associations.

SKILLS PLAN FOR THE SUBSECTOR

The dti has conducted a study regarding the skills development of human capital in the Pharmaceutical Subsector. Some of the recommendations for skills planning, based on this research are the following:

Financial benefits and personal growth opportunities are some of the incentives that need to be addressed in order to attract more life science skills to the country. Current laws and processes involving the importation of skills need the collaboration of industry and relevant government departments in establishing and promoting scarce resources.

Partnerships with organisations and universities abroad need to be formed. Increased collaboration is required between higher education, CHIETA, industry, trade

associations, the Pharmacy Council and research organisations. Pharmaceutical specialist training institutions need to be established. A sector strategy upon which all other strategies and initiatives can build, including skills

planning and development, is required.

A major challenge is to increase lecturing capacity and improve curricula, equipment, machinery and training facilities to align with new production methods and technology in the Pharmaceutical Subsector. The aggregate size and quality of graduate supply across the education and skills development chain has not provided a sufficient base to support growth opportunities in the Manufacturing Sector in general and new and emerging sectors in particular. The establishment of the dti-driven industry working groups (metals, plastics and pharmaceuticals) will provide further impetus for alignment with IPAP priorities, while putting a stronger focus on the promotion of a medium to long-term perspective on training for employment. Furthermore, the IPAP Pharmaceuticals Skills Strategy envisages:

Training for medicine control regulators and regulatory affairs personnel.

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Training to meet the needs for ARV APIs at Pelindaba for Project Ketlaphele, which includes the training of 50 people abroad.

A training programme for the Biovac Project (to reduce dependency on rotavirus and streptococcal pneumonia vaccine imports), which also includes the training of 50 people abroad.

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1 INTRODUCTION

1.1 BACKGROUND

The Chemical Sector Education and Training Authority (CHIETA) consists of five chambers that represent the nine subsectors of the Chemical Sector. The five chambers are:

Petroleum and Base Chemicals Fast Moving Consumer Goods and Pharmaceuticals Explosives and Fertilisers Speciality Chemicals and Surface Coatings; and Glass.

A skill planning is a core function of all SETAs and according to CHIETA’s constitution, this function cascades down to its constituent chambers. According to the CHIETA constitution, the chambers are (among other things) responsible to consult with the nine subsectors in areas of skills development and planning. The ultimate objective of such consultation is to compile a SSP for the Chemical Sector that takes into consideration areas of skills demand, skills supply, and scarce and critical skills as they manifest in the respective subsectors and a strategic plan that addresses the needs of the total Chemical Sector and its subsectors.

In 2013 the CHIETA developed subsector skills plans for each of the nine subsectors. These documents provide detailed analyses of each of the subsectors and are meant to assist the respective chambers in skills planning and to reflect the skills needs of and skills planning for each of the subsectors.

In June 2013 nine workshops were held with representatives of each of the nine subsectors. The workshops were meant to inform the subsector skills plans and covered the following topics:

• The skills planning process and chambers’ responsibilities in this regard.• The profiles of the subsectors.• Economic growth of the subsectors and factors that influence the growth of the subsectors.• The demand for skills in the respective subsectors.• The supply of skills and supply-side challenges and constraints.• Skill shortages.• Key interventions taking place and needed in the respective subsectors.

Apart from the workshops, the subsector skills plans are also based on a detailed analysis of the workplace skills plans (WSPs) and annual training reports (ATRs) submitted to CHIETA by employers in the sector in June 2012. In 2012 employers submitted individual employee records to CHIETA. For the purpose of this report, the data were weighted to extrapolate it to subsectoral totals.

Further information was obtained from desktop research and national data sources such as national accounts data. (National accounts data series were obtained from Quantec.)

1.2 SCOPE OF THE SUBSECTOR

Economic activities in the Pharmaceutical Subsector are defined by SIC Code 33530: Manufacture of pharmaceuticals, medicinal chemicals and botanical products, which include: Manufacture of medicinally active substances; processing of blood; manufacture of medicament (antisera and other blood fractions, vaccines and diverse medicaments, including homeopathic preparations); manufacture of medical diagnostic preparations; manufacture of radioactive in-vivo diagnostic substances; manufacture of biotech pharmaceuticals.1

1 dti, (2011). Human Capital Outlook Implications for Skills Development in the Pharmaceutical Sector.

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1.3 FORMAT OF THIS SUBSECTOR SKILLS PLAN

In the rest of this first chapter, the scope of the subsector and the economic activities that comprise the subsector are described. Chapter 2 provides a profile of the subsector. This profile includes the most important organisations in the subsector, as well as the employees working in the subsector.

Chapter 3 deals with the economic performance of the subsector and the factors that influence its performance. These factors include Government interventions specifically aimed at stimulating the growth of the Chemical Sector.

Chapter 4 of this subsector skills plan focuses on the demand for labour. The demand for labour is analysed from the perspective of the occupations that make up the subsector. The occupational information in turn provides insight into the type and level of skills needed.

Chapter 5 describes the supply of skills. As the subsector shares in the broader supply of skills to the Chemical Sector as a whole and to the total South African labour market, it is not possible to give a detailed analysis of supply as it would meet the demand for skills in the subsector. Instead a broad overview of supply trends is given together with supply-side interventions and constraints as identified by subsector representatives in the workshops.

Chapter 6 hones in on the mismatches that exist between the demand and supply sides of the labour market. Typically, these mismatches manifest in skills shortages and in skills deficiencies in the current workforce.

The last chapter of the sector skills plan should include the strategic planning of skills interventions aimed specifically at this subsector. This chapter will be completed once the Fast Moving Consumer Goods (FMCG) and Pharmaceutical Chamber has engaged with the content of the report and has attended to its own strategic plan.

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2 PROFILE OF THE SUBSECTOR

This part of the report provides a profile of the Pharmaceutical Subsector. It starts with and overview of the subsector and a description of its linkages with other sectors in the economy. This is followed by a description of the different role-players in the subsector such as employers, industry associations, employers’ associations and trade unions active in the industry. It also describes the employees working in the subsector as at the end of March 2012.

2.1 OVERVIEW OF THE SUBSECTOR

The major product categories produced by the Pharmaceutical Subsector are: tablets, capsules, liquids, creams, steriles and injectables. Tablets account for the majority of solid medications, while after tablets, the most common solid oral dosage form is the capsule. In formulating a liquid product, the ingredients are first weighed and then dissolved in an appropriate liquid. Ointments are usually made by blending the bulk active ingredient with a base. The production of sterile preparations is carried out in areas maintained to an appropriate standard of cleanliness and supplied with air that has passed through filters of the required efficiency.2 Injectables refer to drugs taken via intramuscular injection or subcutaneous (skin directly below the dermis and epidermis) injection.3 Sterile injectable drugs include, for example, oncology drugs used in chemotherapy, anesthesia agents and basic parenteral nutrition products like vitamins and electrolytes.4

The pharmaceutical industry is a knowledge-intensive sector, comprising research and development (R&D), manufacturing and the sales and marketing of pharmaceutical products.

The South African pharmaceutical industry is not strong in terms of local manufacturing of Active Pharmaceutical Ingredients (APIs). However, the local formulation sector is relatively strong, as 59% (by value) of the total pharmaceutical market is locally formulated. 5

In South Africa, the public health sector accounts for 75% of the volume and 35% of the value of the market for pharmaceutical products. The public health sector is essential to most domestic manufacturers of generic medicines because its purchases warrant production volumes of sufficient scale to keep costs and prices low.6 Spending on medicines in the public sector has been rising fast due to the increasing number of AIDS patients receiving free ARVs. However, the healthcare spend continues to be in favour of the private sector where the largest proportion of available funds are being spent.7

Pharmaceutical exports are very small. As a result, there is a large trade imbalance in the industry.

The self-regulatory code of practice for the marketing of medicines provides a foundation for the ethical marketing of health products, which includes all medicines that need to be registered by the Medicines Control Council (MCC), medical devices, in vitro laboratory diagnostics and veterinary medicines. Currently, alternative and complementary medicines are excluded. The code brings together manufacturers of innovative medicines, generics, veterinary medicines, over-the-counter medicines, and even industries such as laboratory diagnostics and medical devices. The pharmaceutical industry, all associations representing suppliers of health products, wholesalers and distributors have committed to the implementation of the code of practice that will assure access to

2 World Health Organization, (2011). WHO Technical Report Series, No. 961, 2011.3 http://infertility.about.com/od/infertilityglossary/g/injectables.htm. Accessed 5 June 2013.4 Yurukoglu, A. (2012). Medicare Reimbursements and Shortages of Sterile Injectable Pharmaceuticals. Graduate School of Business, Stanford University and NBER.5 Walwyn, D.R. (2008). Proposed Support for the Local Manufacture of Active Pharmaceutical Ingredients. Pretoria: dti. 6 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.7 www.imsa.org.za. Accessed 9 June 2013.

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health products by patients, the appropriate use of health products, accurate information, fair competition and legal advertising.8

2.2 ORGANISATIONS IN THE SUBSECTOR

2.2.1 EMPLOYERS AND EMPLOYER ORGANISATIONS

Employers in the Pharmaceutical Subsector include foreign owned, multi-national and local companies. They are involved in various activities including importing, manufacturing, packaging, distribution, marketing and research and development. 9 There are four large pharmaceutical firms listed on the JSE: Aspen Pharmacare, Adcock Ingram, Cipla Medpro and Litha Healthcare. Aspen Pharmacare has factories in Kenya and Tanzania, while Adcock Ingram manufactures drugs in Ghana, and has a presence in Kenya. "Aspen is already quite active outside South Africa and has made various acquisitions, with manufacturing facilities in Tanzania and Kenya.10

In the 2011/2012 financial year, 131 employers in the Pharmaceutical Subsector paid skills development levies to CHIETA, which represents 8.5% of all CHIETA levy-paying companies (refer to Table 2-1). These companies paid 12.9% of all levies in the Chemical Sector. About half (48.9%) of all levy-paying companies in the Pharmaceutical Subsector submitted WSPs.

Table 2-1 Levy-paying companies and WSP submissions

Subsector Number of levy-

paying companies

% WSP submissions

% of total companies

in sector

% of total companies

in subsector

% of total levies paid

Petroleum 251 16.3 85 5.5 33.9 43.2

Base Chemicals 314 20.4 127 8.2 40.4 13.2

Pharmaceuticals 131 8.5 64 4.2 48.9 12.9

Fertilisers 89 5.8 23 1.5 25.8 8.2

Speciality Chemicals 266 17.3 113 7.3 42.5 7.9

Glass 124 8 19 1.2 15.3 5.4

FMCG 162 10.5 72 4.7 44.4 3.5

Surface Coatings 118 7.7 60 3.9 50.8 3.5

Explosives 7 0.5 2 0.1 28.6 1.8

Other 80 5.2 6 0.4 7.5 0.4

Total 1 542 100 571 37 100

Source: SARS Levy data, 2011/2012; WSP submissions, June 2012.

About a third (32.8%) of levy-paying companies in the subsector was categorised as micro. Only seven (16.3%) of them submitted WSPs. Conversely, large companies constituted less than a quarter of all levy-paying companies in the Pharmaceutical Subsector and 80.6% of them submitted WSPs.

8 www.IMSA.org.za. Accessed 29 May 2013.

9 dti, (2011). Human Capital Outlook Implications for Skills Development in the Pharmaceutical Sector.10 Kahn, T. (2013). Pharmaceutical firms eye Africa. Business Day, 17 January 2013.

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Half of the small and almost two thirds (61.3%) of medium sized companies submitted WSPs in the 2011/2012 period.

Table 2-2 Levy-paying companies and WSP submissions in the Pharmaceutical Subsector

Glass Levy-paying companies WSP submissions

N % N % of levy-paying companies

Large 31 23.7 25 80.6

Medium 31 23.7 19 61.3

Small 26 19.8 13 50.0

Micro 43 32.8 7 16.3

Total 131 100.0 64 48.9

Source: SARS Levy data, 2011/2012; WSP submissions, June 2012.

2.2.2 INDUSTRY ASSOCIATIONS

The National Association of Pharmaceutical Manufacturers (NAPM) was established in 1977 as a Section 21 Trade Association. It is a voluntary, non-profit organisation consisting of South African and generics-based pharmaceutical manufacturers and distributors. Part of the NAPM’s function is to ensure that the sector plays a constructive role in our country’s economic growth, development and transformation.11

The Labour Affairs Association of the pharmaceutical industry was deregistered in 2007, resulting from the 2002 Labour Relations Act.12 The Pharmaceutical Industry Association of South Africa (PIASA) has also closed as of March 2013.

2.2.3 TRADE UNIONS

The following are the main trade unions active in the Chemical Sector:13

Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU)

General Industries Workers Union of South Africa (GIWUSA)

Solidarity

South African Chemical Workers Union (SACWU)

United Association of South Africa (UASA)

These trade unions are all active in the CHIETA structures and the first four are members of the National Bargaining Council for the chemical industry.

11 http://napm.co.za/. Accessed 17 June 2013. 12 http://www.caselaw.co.za. Accessed 28 June 2013. 13 CHIETA, (2013). Five year Sector Skills Plan for the Chemical Sector: Annual update 2013-2018.

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2.3 EMPLOYEES IN THE SUBSECTOR

2.3.1 TOTAL EMPLOYMENT

It is estimated that in 2011/2012, the total Chemical Sector employed approximately 156 000 people. The Pharmaceutical Subsector employed 22 100 people – 14.2% of the employees in the total sector. It is the fourth largest subsector in the Chemical Sector (Figure 2-1).

Base Chemicals 14.4% (22 466)

Explosives3.4% (5 287)

Fast Moving Consumer Goods15.2% (23 794)

Fertilisers3.6% (5 651)

Glass5.1% (8 002)

Petroleum28.4% (44 371)

Pharmaceuticals 14.2% (22 100)

Speciality Chemicals9.9% (15 381)

Surface Coatings5.3% (8 261)

Other0.5% (786)

Figure 2-1 Total employment in the Chemical Sector and its subsectors

Source: WSP submissions, June 2012.

2.3.2 TYPE OF EMPLOYMENT

Most (87.5%) employees in the Pharmaceutical Subsector were permanent workers (Figure 2-2). Only 3.0% were contract workers and 9.6% were temporary workers. Temporary workers are usually seasonal workers such as seasonal packers. Contract workers on the other hand, are mostly part of the core clinical research component appointed on a long-term basis.14

Contractor3.0% (656)

Permanent87.5% (19 329)

Temporary9.6% (2 114)

Figure 2-2 Type of appointment of employees in the Pharmaceutical Subsector

Source: WSP submissions, June 2012.

14 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.

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2.3.3 EQUITY PROFILE

Race and gender

The majority of workers in the Pharmaceutical Subsector were African (43.8%), Coloured (18.5%) and Indian (8.4%). Females constituted just more than half (54.4%) of the workforce (Figure 2-4).

African 43.8%

(9 682)

Coloured18.5% (4 082)

Indian8.4%

(1 867)

White29.3%

(6 469)Female54.4% (12 025)

Male45.6% (10 075)

Figure 2-3 Race distribution of employees in the Pharmaceutical Subsector

Figure 2-4 Gender distribution of employees in the Pharmaceutical Subsector

Source: WSP submissions, June 2012.

Females formed the majority in all occupational groups in the Pharmaceutical Subsector, except in the managerial, skilled and trades workers, and plant and machine operators and assemblers categories (refer to Annexure 1). The managerial component consisted predominantly (29.4%) of White males and females (26.8%). Although females comprised 47.2% of managers, African females especially need to obtain opportunities to become managers. In the skilled and trades workers (artisan) component, females represented only 4.7% of the employees. African females formed a mere 3.6%, and Coloured females only 1.2% of the artisans, while there were no Indian or White female artisans. Females were better (35.5%) represented in the plant and machine operators and assemblers category, where 19.7% were African females, 13.9% were Coloured females, but only 1.1% Indian females and less than one per cent White females.

Two-thirds (66.4%) of the professionals and just more than half (56.2%) of the technicians and associate professionals were females. Most (60.0%) of the clerical support workers were also females. Transformation is most visible in the service and sales workers category and the elementary occupational category, where females not only formed the majority, but where most of the employees were African females. Among service and sales workers (where 55.1% of the workforce were females), African females represented 30.4% and among elementary workers (where 59.7% of employees were females), African females constituted 41.1%. More than half (54.9%) of the learners in the Pharmaceutical Subsector were females and half of them African females.

Disability

There were 892 employees with disabilities working in the Chemical Sector as a whole. This equates to 0.6% of all employees in the sector. Figure 2-5 below displays the proportion of disabled employees by subsector. The proportion of disabled employees in the Pharmaceutical Subsector was 0.5%.

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Stakeholders noted that it is difficult to employ disabled people (depending on their disability) in certain occupations due to health and safety requirements. It is particularly difficult in key production occupations. However, there was an acknowledgement that more effort needs to be made to identify those occupations in which people with disabilities can be employed and to recruit people with disabilities for these occupations. In addition, CHIETA will work with stakeholders on training around disability awareness. CHIETA is supporting projects aimed at people with disabilities through the discretionary grants.

Base Chem

icals

Explosiv

esFM

CG

Fertilise

rsGlas

s

Petroleu

m

Pharmace

uticals

Speci

ality

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ls

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ce Coati

ngsOther

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Perc

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ge

Figure 2-5 Percentage employees with disabilities per subsector: March 2012

Source: WSP submissions, June 2012.

2.3.4 EDUCATIONAL QUALIFICATIONS

In the 2012 mandatory grant submissions, employers provided information on the highest qualification of 77.3% of the workers employed in the Pharmaceutical Subsector. A third (33.8%) of these employees had a National Senior Certificate (NQF Level 4) and more than half (54.5%) had a post-school qualification with 29.1% at NQF Level 6. Only 2.5% had very limited schooling and had not reached NQF Level 1 (Table 2-3).

Table 2-3 Highest qualification level of employees in the Pharmaceutical Subsector

NQF Level N %

Below NQF Level 1 432 2.5

NQF Level 1 256 1.5

NQF Level 2 612 3.6

NQF Level 3 695 4.1

NQF Level 4 5 764 33.8

NQF Level 5 1 099 6.4

8

NQF Level N %

NQF Level 6 4 977 29.1

NQF Level 7 1 796 10.5

NQF Level 8 1 127 6.6

NQF Level 9 234 1.4

NQF Level 10 81 0.5

Total 17 073 100.0

Undefined 5 027

Total subsector employment 22 100

Source: WSP submissions, June 2012.

There was no indication of the qualification levels of 22.7% of employees in the Pharmaceutical Subsector (Table 2-4). Of this group 22.2% worked as professionals; 17.0% as clerical support workers; 14.7% as elementary workers; 14.5% as technicians and associate professionals; another 14.5% as plant and machine operators and assemblers; 13.8% as managers; 1.9% as service and sales workers; 1.1% as skilled agricultural, forestry, craft and related trades workers; and less than one per cent were learners.

Table 2-4 Occupational distribution of employees whose qualifications were not indicated

Occupations in which qualifications were undefined N %

Managers 695 13.8

Professionals 1 115 22.2

Technicians and associate professionals 728 14.5

Clerical support workers 856 17.0

Service and sales workers 97 1.9

Skilled agricultural, forestry, fishery, craft and related trades workers 53 1.1

Plant and machine operators and assemblers 729 14.5

Elementary occupations 741 14.7

Learners 13 0.3

Total 5 027 100.0

Source: WSP submissions, June 2012.

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2.3.5 AGE

The average age of employees in the Pharmaceutical Subsector was 41. The age distribution is provided in Table 2-5. Almost a third (32.5%) of employees were between the ages of 35 and 44, and 31.0% were between 25 and 34. Only 2.2% were younger than 25 and only 1.2% were older than 65.

Managers, and service and sales workers had the highest (44) average age, while professionals were the youngest group with an average age of only 39 (refer to Table 2-5). Only 4.2% of managers in the subsector were nearing retirement. This is probably because a large proportion of professionals become managers in the later parts of their careers.

.

10

Table 2-5 Occupations by age in the Pharmaceutical Subsector

Occupations Age groups Total Average age

Close to retirement

(55-60)

15-24 25-34 35-44 45-54 55-64 65+

N % N % N % N % N % N % N % N %

Managers 20 0.6 459 14.1 1 278 39.2 1 006 30.9 436 13.4 63 1.9 3 263 100.0 44 317 9.7

Professionals 84 1.5 1 992 35.6 1 993 35.6 1 129 20.2 343 6.1 59 1.0 5 600 100.0 39 234 4.2

Technicians and associate professionals

59 1.8 1 138 35.7 1 008 31.6 610 19.2 326 10.2 44 1.4 3 185 100.0 40 220 6.9

Clerical support workers 96 3.4 985 34.9 772 27.4 613 21.7 330 11.7 26 0.9 2 822 100.0 40 226 8.0

Service and sales workers 4 1.4 53 17.3 113 36.9 79 25.7 47 15.4 10 3.3 306 100.0 44 40 13.1

Skilled agricultural, forestry, fishery, craft and related trades workers

9 1.8 119 24.6 143 29.7 142 29.4 63 13.1 7 1.5 482 100.0 43 39 8.0

Plant and machine operators and assemblers

47 1.5 911 29.4 935 30.2 723 23.4 449 14.5 31 1.0 3 097 100.0 42 350 11.3

Elementary occupations 116 3.6 1 129 35.1 918 28.6 646 20.1 382 11.9 23 0.7 3 214 100.0 40 273 8.5

Learners 41 31.9 71 54.9 14 11.0 3 2.2 0 0.0 0 0.0 130 100.0 28 0 0.0

TOTAL 476 2.2 6 857 31.0 7 174 32.5 4 951 22.4 2 376 10.8 263 1.2 22 099 100.0 41 1 699 7.7

Source: WSP submissions, June 2012.

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2.4 CONCLUSION

The Pharmaceutical Subsector is a relatively large subsector, employing around 14% of the total Chemical Sector’s workforce. It has an important role to play in moving the country towards a knowledge based economy, as the pharmaceutical industry is seen as one of the sectors with great potential in the ten-year innovation plan for science and technology.15

The Pharmaceutical Subsector employs mainly middle to high-level skilled people – i.e. people with a post-school education. The majority of employees in the sector are professionals and approximately 19% have degrees. This subsector is highly involved in and dependent on R&D. At present about 2% of the total workforce have master’s and doctoral degrees.

15 DST, (2008). Innovation Towards a Knowledge-based Economy – A Ten Year Plan (2008-2018).

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3 ECONOMIC GROWTH AND FACTORS IMPACTING ON THE SUBSECTOR

3.1 INTRODUCTION

The Pharmaceutical Subsector has a strategic role in the South African economy, especially in healthcare, science and tertiary education, and contributes 1.6% to the South African GDP. It is the largest pharmaceutical sector in Africa and was estimated at R30 billion in 2011. Globally, however, the South African pharmaceutical sector accounts for only 0.4% by value and 1% by volume and it had a negative trade balance of R14.84 billion as a result of imports of R15.96 billion against exports of R1.12 billion in 2011.

This chapter looks in more detail at the economic performance of the subsector and at the factors that influence its performance.

3.2 ECONOMIC GROWTH

The pharmaceutical industry plays a pivotal role in any healthcare system and according to European Commission statistics: five of the 10 leading global R&D firms in 2010 were pharmaceutical companies, accounting for 19% of the R&D of the top 1 400 companies. It is forecast that the pharmaceutical market will reach nearly USD1 100 billion by 2015 (an increase of USD244 billion since 2010), with leading emerging countries accounting for 28% of global spending on pharmaceuticals as compared to 12% in 2005. Conversely, the US share will decline from 41% in 2005 to 31% in 2015, while Europe’s share will fall from 27% in 2005 to 19% in 2015. Branded products accounted for nearly two thirds of global pharmaceutical spending in 2010, but with patents expiring in developed markets, that share is expected to decline. Revenues from generics in 2015 are expected to reach USD400-430 billion, 70% of which will be outside developed markets, as most of the growth in the leading emerging markets is driven by spending on generic medicines. 16 Globally, products with an annual market of USD5 million (R50 million) lost their patent protection in 2010 and a further USD4 million (R40 million) branded products lost their protection in 2011. In 2013 the next wave of patent losses is expected, where an estimated USD3 million (R30 million) will be exposed to generic activity.17

In 2011 the South African pharmaceutical market was estimated at R30 billion18 and the market is forecast to grow to R38 billion by 2015 with the retail sector being the major contributor. 19 Increasingly, there are more and more synergies between the pharmaceutical and consumer units, and brand awareness of consumer products also helps sales of pharmaceutical products, while both markets have strong growth prospects.20 South African consumers spend approximately 1.9% of total household expenditure on medical and pharmaceutical products21 and in 2012 they spent R23 341 million on these products, which represents an increase of 19% since 2009.22

In the national accounts data the pharmaceutical industry is grouped with several others in the subsector “Other Chemicals and Man-made Fibres”. Figure 3-1 below reports the average

16 International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), (2011). The pharmaceutical industry and global health: Facts and figures. Geneva: IFPMA. 17 http://www.imshealth.com. Accessed 9 July 2013. 18 dti, (2013). Industrial Policy Action Plan Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.19 http://www.imshealth.com. Accessed 9 July 2013. 20 David Redfern, Glaxo chief strategy officer , Business Day, (2012). Glaxo to raise stakes in India, Nigeria units. Business Day, 27 November 2012.

21 http://www.health24.com/Medical/Meds-and-you/Inside-the-lab/The-pharmaceutical-industry-at-a-glance-20130521. Accessed 16 June 2013.22 Calculating SARS data. http://www.sars.gov.za. Accessed 18 June 2013.

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percentage change in GDP of this subsector over five-year periods from 1970 to 2010 in comparison with the total Petroleum, Chemical and Glass Sector/Subsectors, as well as the total economy. It also shows the projections up to 2020. It seems that the subsector outperformed the whole Chemical Sector and the total economy for large parts of the period. The projected figures show an average growth of 2.8% for the 2010-2015 period and 4.0% for the 2015-2020 period. However, industry stakeholders said they believe that the growth figures are underestimated when taking into consideration expected developments in the subsector.

1970

-197

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6.0%

8.0%

10.0%

12.0%

Other chemicals & man-made fibres Total petroleum, chemicals & glassTotal economy

Figure 3-4 Average percentage change of Gross Value Added: 1970-2020

Source: Quantec data, July 2013.

3.3 FACTORS THAT IMPACT ON THE SECTOR

Growth of the South African pharmaceutical industry, especially the generic segment, has been a host of factors including: patent expiries of blockbuster molecules; the largest treatment programme in the world of the HIV/AIDS epidemic; increasing use of generic medicines; an increase in lifestyle diseases; an aging population; a greater number of people accessing health services; and a need to contain costs.23 Stakeholders were of the view that the proposed introduction of the National Health Insurance (NHI) Scheme will have a profound impact on the subsector while the subsector will also be influenced by the sourcing of the bulk of raw materials from abroad, the exchange rate and the geopolitical climate.24

The subsector is also highly affected by the actions of Government. This section starts with a discussion of the Government interventions that affect the subsector.

3.3.1 LEGISLATION, REGULATIONS, PLANS AND POLICIES

23 dti, (2011). Human Capital Outlook Implications for Skills Development in the Pharmaceutical Sector.24 Stakeholder workshop for Pharmaceutical Subsector, 25 June 2013.

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The pharmaceutical industry is, because of its nature, subject to certain regulations. The Medicine Control Council (MCC) is the statutory body that controls medicine registration and regulatory processes. Currently there are requirements, regulations, plans and policies pertaining to aspects such as health service standards, local manufacturing, access to export markets, intellectual property rights (IPRs) and indigenous knowledge (IK). Some of the key elements are the following:

Health service standards.

Government needs to assure that health products are safe, efficacious and of good quality. The 2011-2014 Strategic Plan of the National Department of Health (NDoH), that guides all healthcare strategies and programmes in the country, is now in its third year of implementation. In order to improve the quality of health services in the country, the NDoH is responsible for policies related to legislation governing the establishment and functioning of the Office of Health Standards Compliance (OHSC) as a national certification body. The OHSC will monitor public health services and address complaints of non-compliance, while developing guidelines and providing information on the implementation of health service standards required for the roll-out of the NHI.25

With regards to the regulatory approval process, South Africa’s medicine regulatory environment follows global standards and the Medicines Control Council (MCC) is a statutory body that controls medicine registration and regulatory processes such as marketing of medication and the registration of clinical trials. Government has made great strides in addressing many gaps in the healthcare system, but delays in the medicine regulatory process still need to be addressed.

Legislation, regulations and plans addressing health service standards include:26

o The National Health Act, 61 of 2003 which provides for the protection, promotion and maintenance of the health of the population.

o The National Department of Health 10 Point Strategic Plan that guides all healthcare strategies and programmes in the country.

o The SA Code of Practice for the marketing of health products that has been effective since 2012. The code serves as an important step towards guiding the ethics of the local healthcare industry.27 The Marketing Code Authority (MCA) will oversee the South African Marketing Code of Practice.

o The National Drug Policy of 1996 that aims “to ensure an adequate and reliable supply of safe, cost-effective drugs of acceptable quality to all citizens of South Africa and the rational use of drugs by prescribers, dispensers and consumers”.

o The Medicines and Related Substances Control Act of 1997 (as amended) that provides for mandatory generic substitution, for the establishment of the MCC, for the setting of single exit price regulations, for the regulation of dispensing fees for pharmacists and logistics fees, for international benchmarking, and for pharmaco-economic evaluations, among others.

o The Consumer Protection Act, 68 of 2008 that promotes a fair, accessible and sustainable marketplace for consumer products and services, and establishes national norms and standards relating to consumer protection.

o The Counterfeit Goods Act, 37 of 1997 that introduces measures to counteract trade in counterfeit goods and protects trademarks, copyrights and intellectual property rights

25 http://dai.com. Accessed 13 June 2013.26 http://www.acts.co.za. Accessed 28 June 2013.27 http://www.frontshop.co.za. Accessed 4 June 2013.

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o The Pharmacy Act, 53 of 1974 that provides, inter alia, for the ownership of pharmacies.

o The Single Exit Price regulations (2003), which flowed from the Medicines Act and was promulgated with the aim of controlling the prices of medicines.

Local Manufacturing.

The need to reduce Africa’s dependence on imports and donations of pharmaceuticals has been expressed and in 2005 the African Union began work on developing a NEPAD-inspired “Pharmaceutical Manufacturing Plan for Africa”. The South African Development Community (SADC) published its pharmaceutical business plan for the period 2007-2013 and focused on increasing generic production in Africa.28

Government has introduced a number of policies to improve the performance of the Pharmaceutical Sector. Industrial Policy Action Plan (IPAP) II has identified key opportunities for development in the Pharmaceutical Sector that targets domestic production of: Active pharmaceutical ingredients for key antiretrovirals (ARVs); reagents for AIDS/HIV diagnostics under licence; vaccines under licence; and biological medicines such as erythmpoietin, monoclonal antibodies and vaccines. IPAP II highlighted the removal of certain regulatory barriers and constraints such as the lack of key skills in highly specialised areas of new drug design, pharmaceutical formulation and pharmaceutical biotech in supporting the growth of the clinical research market in the country. The ‘second wave’ of the designation of certain pharmaceutical products for domestic production that is in line with the amendments of the Preferential Procurement Policy Framework Act (PPPFA), includes 70 pharmaceutical products.

The pharmaceutical industry is vulnerable to competition with imports from low-cost countries, but this situation is due to improve with the revised PPPFA that empowers the dti to designate locally manufactured pharmaceuticals in State procurement contracts.

Project Ketlaphela is a R1.6 billion joint venture of the IDC and Pelchem (NECSA) in partnership with the Swiss company Lonza. The project will meet 50% of South Africa’s needs for ARV APIs from 2017. Further independent projects planned in the Ketlaphela cluster (the Pelindaba valley) are bio-pharmaceuticals (insulin, erythropoietin, etc.), various fluorine-related APIs and fine chemicals. The SA vaccine project, Biovac, a 40-60 public-private partnership has been experiencing long delays since its inception in 2003 due to a sharp increase in the project’s capital cost – from R40 million (2003 estimates) to R250 million – driven by the need to keep up with rapid advances in the sophistication of vaccine technology globally. Biovac is expected to be fully operational by 2017. It will be the third vaccine factory in Africa (after Egypt and Senegal).29

Access to export markets.

It is highlighted in IPAP30 that the potential for economic growth and improved quality, and potential to access export markets are underpinned by the capacity to comply with international standards, norms and technical regulations. The dti’s regional integration key action programmes target the Pharmaceutical Subsector, among other sectors, for adopting or adapting international and regional standards.

Intellectual Property Rights (IPRs).28 dti, (2011). The South African Pharmaceutical Sector Profile for the Consideration of Designation of Pharmaceutical Products in terms of the PPPFA.29 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.30 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.

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The Public Health Innovation Forum (PHIF), established by the NDoH, examines the relationship between IPRs, innovation and public health, and the gap in the innovation cycle. The PHIF is concerned that the commercial incentives provided by IPRs have neither resulted in sufficient improvements in public health in developing countries, nor has it increased access to the benefits of innovations that take place in the developed world. IPRs need to find a balance between fostering innovation and ensuring that innovative medication end up in the public domain. South Africa, unlike most other countries that compensate innovators, does not have a mechanism to add back patent life to a pharmaceutical product, due to delays in the registration process. Furthermore, one of the most important assets of a research-based pharmaceutical company is data submitted to a regulatory agency and in South Africa there is no form of data protection as it relates to the application of the Medicines and Related Substances Act in the process of medicine registration. By protecting data, the country would be in line with competitors and attract investments. Already incorporated into the SA legal framework and intended to increase access to medicines, are the Trade-Related Aspects of Intellectual Property Rights (TRIPS) flexibilities of parallel importation and the “Bolar” provision for early registration of generics whilst the medicine is still patent-protected.31

Legislation and regulations addressing IPRs include:32

o The Patent Act of 1978, amended in 2002, which covers and deals with all issues related to IPRs such as trademarks, patents, copyrights and was amended to include provisions for early working and the Bolar provision. The Bolar provision allows certain experiments to be conducted on a patented pharmaceutical during the lifetime of the patent, to enable generic manufacturers to demonstrate bioequivalence prior to the expiry of a patent.33

o The International Treaty on Plant Genetic Resources for Food and Agriculture assures international co-operation of genetic resources that is essential for food security.34

o TRIPS require the World Trade Organisation (WTO) member governments to give copyright and patent protection for 20 years to a wide range of new products, including pharmaceutical goods.

Indigenous knowledge.

The dti’s paper on IK indicates that the IPRs system, Customary Laws, as well as other laws may protect IK. The Food and Agriculture Organisation administers the International Treaty on Plant Genetic Resources for Food and Agriculture that has a bearing on the “protection of knowledge relevant to plant genetic resources for food and agriculture”. The United Nations Environment Programme administers the Convention on Biological Diversity and this has a bearing on IPR developed with the assistance of IK from local communities. IK, innovation and the country’s rich biodiversity can contribute to the country becoming an important emerging economy.35

Legislation and regulations addressing IK include:

o The Traditional Health Practitioners Act, 22 of 2007 ensures the efficacy, safety and quality of traditional health care services.

31 Ibid.32 http://www.acts.co.za. Accessed 28 June 2013.33 CMS, (2007). Bolar Provision and Regulatory Data Exclusivity in Europe. CMS London: CMS (The alliance of major European law firms). 34 http://www.wipo.int. Accessed 12 June 2013.35 DST, (2008). Innovation Towards a Knowledge-based Economy – A Ten Year Plan (2008-2018).

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o The International Generics Pharmaceutical Alliance (IGPA) is an international network of generic associations, promoting access to affordable generic medicines.36

3.3.2 RESEARCH AND DEVELOPMENT

Globally the research-based pharmaceutical industry has invested in R&D even in times of economic turmoil. No other business sector has such high levels of R&D intensity and pharmaceutical innovations are behind some of the greatest achievements in modern medicine. The growth and development of the subsector is highly dependent on its R&D.

The R&D capacity of the pharmaceutical industry is located in the manufacturing firms themselves as well as in state-funded research institutions and universities. The R&D facilities employ highly skilled personnel and are generally dependent on high-level and specialised skills – some of which are in short supply in South Africa.

3.3.3 ACCESS TO MEDICINE

Unfortunately, not everyone has yet fully benefited from these medical advances and poverty and great wealth inequality means that many do not have access even to the simplest healthcare interventions. There are two elements pertaining to access to medicine in South Africa. The first is the lack of access of the general population to health services in general and the second is problems experienced with the registration process of medication.

The proposed NHI scheme is aimed at providing improved access to health services for all South Africans. The NHI scheme is set to procure services on behalf of the entire population and control financial resources. Membership of the NHI scheme will be mandatory for all South Africans, although membership of private medical schemes may continue as a supplementary measure, but without tax subsidies. All citizens will register through the Department of Home Affairs, while provision of healthcare will be by accredited public and private providers through a district management system. The proposed establishment of a NHI scheme will pose challenges to the private sector, as businesses will have to be reengineered to access the new landscape. National Treasury and the NDoH will refine the model and look at long-term fiscal implications and effects of the NHI contribution on households.37

Regulatory delays in South Africa have major implications for access to medicines and for businesses in the pharmaceutical industry. Although the standards of the MCC in South Africa are aligned with international norms, the prolonged period required for the registration process to be completed impacts on the access to medication. The time taken to approve products in the country is significantly longer than in globally benchmarked countries. In South Africa it takes 34 months for approval of generics and new entities and 38 months for outstanding applications, while the average registration timeline across benchmarked countries is only 13.5 months. For fast-track registrations in South Africa, submissions made in 2003-2006 are still outstanding. Innovative Medicines South Africa (IMSA), a pharmaceutical industry association, which represents research-based pharmaceutical companies that originate, develop and market medicines, proposes the following: a streamlined approval process that prevents costly, time-consuming and unnecessary duplication of dossier preparation and assessment; a binding timeline for regulatory processes; and adequate resources to increase efficiency and reduce regulatory timelines.

3.3.4 THE DEVELOPMENT OF EXPORT MARKETS

36 http://www.igpagenerics.com/. Accessed 12 June 2013.37 http://www.doh.gov.za/list.php?type=National%20Health%20Insurance. Accessed 12 June 2013.

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The South African pharmaceutical industry has a relatively small domestic market. However, Sub-Saharan Africa offers significant opportunities for South Africa’s pharmaceutical manufacturing firms, as a growing middle class and an increasing burden of disease push up demand for medicines 38 Pharmaceutical sales in sub-Saharan Africa generated revenues of USD2.28bn in 2011 and were forecast to reach USD5.02bn in 2018.39

3.3.5 COUNTERFEIT MEDICINES

Although South Africa has a sophisticated regulatory authority that assesses all products for quality and safety, counterfeit medicines still occur as a result of global, illegal trade. Counterfeit medicines are fake products produced at low cost in the absence of deterrent legislation in many countries. As counterfeiting becomes more sophisticated, these products are increasingly present, even in better controlled markets.40 The United States Food and Drug Administration estimates that counterfeits make up more than 10% of the global medicines market and are present in both industrialised and developing countries. It is estimated that up to 25% of the medicines consumed in poor countries are counterfeit or substandard.41 Counterfeiting of medicines is not yet reported to be a major problem in South Africa,42 but it may become a factor that influences the subsector in future.

3.3.6 TRANSFER OF TECHNOLOGY

Transfer of advanced technology is essential for economic development. It is one of the means by which low and middle-income countries can accelerate the acquisition of knowledge, advanced equipment and innovative products and processes. Technology transfer has the potential to help improve health, increase the reliability of supply, decrease reliance on imports and raise the competence of the local workforce. In order for pharmaceutical technology transfer to take place, the following conditions are required: an available and accessible local market; political stability and good economic governance; clear development priorities; effective regulation; availability of skilled workers; adequate capital markets; strong IPRs with effective enforcement; and a quality relationship between industry and government.43 When technologies are transferred in BEE transactions or to manufacturers of generics, these transfers are usually accompanied by extensive skills and knowledge transfers.44

38 Kahn, T. (2013). Pharmaceutical firms eye Africa. Business Day, 17 January 2013. 39 Ibid. 40 http://www.who.int/medicines/services/counterfeit/impact/ImpactF_S/en/. Accessed 11 June 2013.41 http://www.who.int/mediacentre/factsheets/2003/fs275/en/. Accessed 11 June 2013.42 www.IMSA.org.za. Accessed 29 May 2013. 43 International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), (2011). The pharmaceutical industry and global health: Facts and figures. Geneva: IFPMA.44 www.IMSA.org.za. Accessed 29 May 2013.

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3.3.7 GLOBAL INTEGRATION

The South African Pharmaceutical Subsector is in various ways integrated in and influenced by international economic trends and markets. As indicated earlier in this chapter, many of the pharmaceutical companies as foreign owned and/or multi-national. The sector is also highly dependent on imports. In many respects the South African Pharmaceutical Subsector is bound to international quality, safety and environmental standards.

The fact that the sector is highly integrated in the global environment has many implications, some of which are listed below:

The sector is sensitive to fluctuations in exchange rates. Multi-national companies have to adhere to accounting and administrative practices that

satisfy the local legislative requirements, as well as those of their mother companies and the countries where they are located. This in turn has an impact on the skills needed by those companies.45

Staffing and human resources development are complex in the international environment. International companies have to ensure that their staff are adequately equipped to implement international business strategies. They also have to overcome shortages of skilled managers and professionals, particularly in emerging markets, and they need to train their staff to be sensitive to cultural differences in the workplace and marketplace.

South African operations of multi-nationals have to adhere to the training requirements and standards prescribed by their mother companies. In most instances these programmes are not accredited in South Africa and for this reason the companies cannot claim any grants for this training.46

The sector is dependent on advanced technological training that is not available locally. This training has to be procured at very high cost.

3.4 CONCLUSION

Indications are that the Pharmaceutical Subsector is in a positive growth phase. As domestic manufacturing will increase competitiveness and create more employment, Government has introduced a number of policies to improve domestic production of pharmaceuticals. Some of the key opportunities for development in this regard are the following:

The domestic production of active pharmaceutical ingredients for key antiretrovirals (ARVs). The domestic production of vaccines under licence, which will involve the restart of the

production of vaccines to supply the domestic market. The domestic production of biological medicines such as erythmpoietin, monoclonal

antibodies and vaccines.

Due to its nature, different factors have an impact on the subsector. Some of the most important factors relate to access to medicines, access to export markets, and research and development. The broader vision of the proposed NHI scheme in South Africa is to provide improved access to health services for all South Africans and to procure services on behalf of the entire population. The dti’s regional integration key action programmes target the Pharmaceutical Subsector, among other sectors, for adapting international and regional standards in order to grow the export market. To grow further, the subsector is highly dependent on R&D. Companies are mainly involved in R&D in order to keep their competitive advantage (by developing new or better products, processes and

45 Ibid.

46 Ibid.

20

technology) and to reduce their environmental impact. The subsector’s dependence on R&D means that it is also dependent on highly skilled professionals and scientists – some of which are often in short supply in South Africa.

21

4 THE DEMAND FOR SKILLS IN THE SUBSECTOR

This section looks at the demand for skills in the Pharmaceutical Subsector. It shows the trends in employment, as well as the occupational composition of demand in the subsector.

4.1 TRENDS IN EMPLOYMENT

The demand for labour in absolute numbers in the Chemical Sector has been declining steadily over the last two decades, with investments in capital equipment being largely used to replace labour. The reduction in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards the higher level skills. The exception to this rule is the glass industry, which also lost jobs overall, but has remained largely driven by semi-skilled and low-skilled labour with reductions in employment affecting all skills levels.

Employment in the Pharmaceutical more or less followed the same trajectory as total employment in the Chemical Sector. Employment grew steadily from 1970 to the early nineties. It then dropped steadily until 2000 but increased again until 2005, decreasing again in the 2005 to 2010 period. Table 4-1 shows a projected growth of 0.7% for the 2010 to 2015 and 1.1% for the 2015 to 2020 period.

19701975

19801985

19901995

20002005

20102012

,0

50,000

100,000

150,000

200,000

250,000

Other chemicals & man-made fibres Total petroleum, chemicals & glass

Figure 4-5 Employment in the Pharmaceutical Subsector compared to total employment in the Chemical Sector from 1970 to 2012

Source: Quantec , June 2013

22

Table 4-6 Average percentage change in employment, 1970-2020

Sector

Average % change

1970-1975

1975-1980

1980-1985

1985-1990

1990-1995

1995-2000

2000-2005

2005-2010

2010-2015

2015-2020

Other chemicals & man-made fibres 3.1% 3.0% 3.4% 2.3% -

3.4%-4.7% 6.4% -

0.7% 0.9% 1.1%

Total petroleum, chemicals & glass 3.2% 1.7% 2.3% 0.7% -

1.9%-6.9% 4.7% -

2.4%-0.6%

-0.7%

Source: Quantec, June 2013

4.2 THE OCCUPATIONAL COMPOSITION OF DEMAND

The largest occupational group in the Pharmaceutical Subsector is professionals, with 25.5% of employees. This is followed by the managerial group (14.9%) of which many are professionally qualified. The size of the elementary occupational group (14.6%); technician and associate professional group (14.5%); and plant and machine operator and assembler category (14.1%) are in the same range, in support of production processes. The sector does not employ many (2.2%) artisans. Although the service and sales workers component is small (1.4%), the Pharmaceutical Subsector employs many professionals as technical sales people.

Managers14.9% (3 263)

Professionals,25.5% (5 600)

Technicians and associate professionals14.5% (3 185)

Clerical support workers12.8% (2 822)

Service and sales workers1.4% (306)

Skilled agricultural, trade workers, etc.

2.2% (482)

Plant and machine operators and assemblers14.1% (3 097)

Elementary occupations14.6% (3 214)

Figure 4-6 Main occupations in the Pharmaceutical Subsector

Source: WSP submissions, June 2012.

Occupations in each of the eight main occupational groups in the Pharmaceutical Subsector with a count of 10 or higher are shown in subsequent tables (Tables 4-1 to 4-8). Specialisations are indicated in Annexure 2.

23

Selling of pharmaceutical products is a main activity in the pharmaceutical industry and therefore sales managers (510) comprised the largest part of the managerial component. Standards and quality products are paramount in this industry and quality systems managers thus made up a substantial number (390) of the managers. In some companies, more quality validation technicians or quality analysts (analytical chemists) are employed, instead of quality systems managers.47

Table 4-7 Managers in the Pharmaceutical Subsector

OFO Code Managers N122102 Sales Manager 510121908 Quality Systems Manager 390121101 Finance Manager 219132102 Production/Operations Manager (Manufacturing) 216112101 Director (Enterprise/Organisation) 210122101 Sales and Marketing Manager 210132402 Logistics Manager 183122103 Director of Marketing 163132401 Supply and Distribution Manager 116122301 Research and Development Manager 91121901 Corporate General Manager 89121905 Programme or Project Manager 83121201 Personnel/Human Resource Manager 81121202 Business Training Manager 80134201 Medical Superintendent 69134902 Laboratory Manager 56132101 Manufacturer 50132104 Engineering Manager 50132404 Warehouse Manager 50133105 Information Technology Manager 30133101 Chief Information Officer 23122105 Customer Service Manager 21122201 Advertising and Public Relations Manager 20121301 Policy and Planning Manager 19121902 Corporate Services Manager 19133104 Application Development Manager 17134903 Small Business Manager 14121206 Health and Safety Manager 11133103 Data Management Manager 11121102 Payroll Manager 10121103 Credit Manager 10121903 Physical Asset Manager 10134904 Office Manager 10Source: WSP submissions, June 2012.

With sales playing a central role in the Pharmaceutical Subsector, sales representatives of medical and pharmaceutical products were the majority (2 601) of professionals in this industry, as were marketing practitioners, industrial pharmacists and retail pharmacists. Most of these professionals

47 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.

24

are qualified pharmacists.48 The professional category further also included many other health professionals, such as medical scientists, specialist physicians, microbiologists, chemists, hospital pharmacists and others. A medical scientist is actually a medical advisor in the pharmaceutical industry, but for a lack of a better title available in the OFO, this term was used in the WSP submissions.

Table 4-8 Professionals in the Pharmaceutical Subsector

OFO Code Professionals N243302 Sales Representative (Medical and Pharmaceutical Products) 2 601243103 Marketing Practitioner 453226202 Industrial Pharmacist 439226203 Retail Pharmacist 199243301 Sales Representative/Salesman (Industrial Products) 139213110 Medical Scientist 119242207 Compliance Officer 119243102 Market Research Analyst 107221210 Specialist Physician (General Medicine) 99213108 Microbiologist 91211301 Chemist 86242303 Human Resource Advisor 81242101 Management Consultant 74241101 Accountant (General) 73241102 Management Accountant 66252201 Systems Administrator 60241107 Financial Accountant 49214101 Industrial Engineer 47143901 Facilities Manager 33226302 Safety, Health, Environment and Quality (SHE&Q) Practitioner 33226201 Hospital Pharmacist 31252301 Computer Network and Systems Engineer 31243201 Communication Coordinator 29214401 Mechanical Engineer 26251202 Programmer Analyst 24242208 Organisational Risk Manager 23242401 Training and Development Professional 23251101 ICT Systems Analyst 23242102 Organisation and Methods Analyst 21252101 Database Designer and Administrator 21242402 Occupational Instructor/Trainer 19142101 Importer or Exporter 17241301 Financial Investment Advisor 17243203 Corporate Communication Manager 17214908 Materials Engineering Technologist 16214502 Chemical Engineering Technologist 14222104 Registered Nurse (Community Health) 14222114 Nurse Educator 14

48 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.

25

OFO Code Professionals N242202 Policy Analyst 13251201 Software Developer 13261101 Attorney 13214402 Mechanical Engineering Technologist 11216601 Graphic Designer 11222109 Registered Nurse (Medical Practice) 11251401 Applications Programmer 11214102 Industrial Engineering Technologist 10214907 Materials Engineer 10222115 Nurse Researcher 10241104 External Auditor 10Source: WSP submissions, June 2012.

Chemistry technicians were the majority (723) of the technicians and associate professionals category. Many pharmaceutical technicians (176) were employed, because there is a shortage of pharmacists, assistants and technicians are employed instead.49 The high number (207) of credit loan officers can be attributed to the fact that the retail part of the pharmaceutical industry, to a large extent, sells on credit.

Table 4-9 Technicians and Associate Professionals in the Pharmaceutical Subsector

OFO Code Technicians and associate professionals N311101 Chemistry Technician 723312201 Production/Operations Supervisor (Manufacturing) 532334302 Personal Assistant 249331201 Credit or Loans Officer 207321301 Pharmaceutical Technician 176332302 Purchasing Officer 139311102 Physical Science Technician 127311302 Electric Substation Operations Manager 106313301 Chemical Plant Controller 69311401 Electronic Engineering Technician 67325201 Health Information Manager 67321201 Medical Laboratory Technician 50332203 Sales Representative (Personal and Household Goods) 49335402 Import-export Administrator 41333908 Marketing Coordinator 39331301 Bookkeeper 37314101 Life Science Technician 36334102 Office Administrator 34332301 Retail Buyer 33351201 ICT Communications Assistant 33314201 Agricultural Technician 29332207 Chemical Sales Representative 29325703 Agricultural/Horticultural Produce Inspector 26311501 Mechanical Engineering Technician 23312202 Maintenance Planner 2349 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.

26

OFO Code Technicians and associate professionals N313907 Food and Beverage Manufacturing Process Controller 19313909 Miller 17313201 Water Plant Operator 16313901 Integrated Manufacturing Line Process Control Technician 16351301 Computer Network Technician 16324102 Veterinary Technician 13332208 Pharmacy Sales Assistant 13325601 Medical Assistant 10Source: WSP submissions, June 2012.

The Pharmaceutical Subsector predominantly employed general clerks (776), production coordinators (583), stock clerks/officers (379), accounts clerks (184), programme or project administrators (102), and various other clerical workers to cope with administrative responsibilities that accompany retail and sales in the industry.

Table 4-10 Clerical Support Workers in the Pharmaceutical Subsector

OFO Code Clerical support workers N411101 General Clerk 776432201 Production Coordinator 583432101 Stock Clerk/Officer 379431101 Accounts Clerk 184441903 Programme or Project Administrators 102422501 Enquiry Clerk 91432104 Warehouse Administrator/Clerk 89432102 Dispatching and Receiving Clerk/Officer 87422601 Receptionist (General) 86412101 Secretary (General) 80413201 Data Entry Operator 56432103 Order Clerk/Officer 50431301 Payroll Clerk 39441501 Filing or Registry Clerk 39441902 Contract Administrator 39441601 Human Resources Clerk 26431102 Cost Clerk 20422202 Outbound Contact Centre Consultant 17422201 Inbound Contact Centre Consultant 16441203 Mail Clerk 10441602 Skills Development Administrator 10Source: WSP submissions, June 2012.

The number of sales people tends to be small in the services and sales workers category, because most sales people are industrial or technical sales people that fall under the professional category. Highly technical knowledge is required in order to assist with the marketing and sales of pharmaceutical products. The term special force’s operator was used for a lack of a better term in the OFO.50

50 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.

27

Table 4-11 Service and Sales Workers in the Pharmaceutical Subsector

OFO Code Service and sales workers N542203 Special Forces Operator 73515301 Caretaker 49522301 Sales Assistant (General) 41524903 Sales Clerk/Officer 34541401 Security Officer 34522201 Retail Supervisor 14513102 Cafe Worker 13524201 Sales Demonstrator 13523102 Office Cashier 11516401 Animal Attendant/Groomer 10Source: WSP submissions, June 2012.

Although the Pharmaceutical Subsector does not make use of many artisans, the industry did employ a substantial number of mechanical fitters (170). Only 71 electricians were employed, although stakeholders indicated that electricians were trained in-house to become regulators, which are in great demand in the pharmaceutical industry.51

Table 4-12 Skilled and Related Trades Workers in the Pharmaceutical Subsector

OFO Code Skilled agricultural, forestry, fishery, craft and related trades workers N653303 Mechanical Fitter 170671101 Electrician 71652301 Metal Machinist 46652302 Fitter and Turner 34671202 Millwright 33653301 Industrial Machinery Mechanic 21642607 Pipe Fitter 10Source: WSP submissions, June 2012.

Central to pharmaceutical production processes is chemical production machine operators, that was the single most (2 445) populated occupational category after sales representatives (2 601) in the pharmaceutical industry. The packaging and transport of pharmaceutical products are also key activities in this industry and there were 127 packaging machine operators, 127 packaging manufacturing machine minders and 117 delivery drivers employed in the sector.

Table 4-13 Plant and Machine Operators and Assemblers in the Pharmaceutical Subsector

OFO Code Plant and machine operators and assemblers N713101 Chemical Production Machine Operator 2 445718302 Packing Machine Operator 127718304 Packaging Manufacturing Machine Minder 127732101 Delivery Driver 117734402 Forklift Driver 83718906 Bulk Materials Handling Plant Operator 66718303 Filling Line Operator 46733201 Truck Driver (General) 27718907 Weighbridge Operator 19Source: WSP submissions, June 2012.

51 Ibid.

28

With strict regulations and standards required in the production of pharmaceutical products, especially sterile preparations, the industry employed as many as 1 168 commercial cleaners to assure that commercial premises and equipment are clean. The packaging and storage of products and maintenance of sites also require the employment of various elementary workers.

Table 4-14 Elementary Occupations in the Pharmaceutical Subsector

OFO Code Elementary occupations N811201 Commercial Cleaner 1 168832101 Packer (Non Perishable Products) 593833402 Store Person 439833401 Shelf Filler 329832907 Chemical Plant Worker 167831302 Drainage, Sewerage and Storm Water Worker 79811101 Domestic Cleaner 67832901 Metal Engineering Process Worker 37862915 Chemical Mixer 37862202 Handyperson 36831310 Surveyor's Assistant 33832904 Food and Beverage Factory Worker 30811203 Tea Attendant 27833301 Freight Handler (Rail or Road) 27862919 Mechanic's Assistant 24821104 Harvester/Picker 21821501 Forestry Worker 17831301 Builder's Worker 16862918 Electrical or Telecommunications Trades Assistant 13832902 Plastics, Composites and Rubber Factory Worker 10Source: WSP submissions, June 2012.

4.3 CONCLUSION

Employment in the Pharmaceutical Subsector more or less followed the same trajectory as total employment in the Chemical Sector. Employment grew steadily from 1970 to the early nineties, and then dropped steadily until 2000, increased again until 2005 only to decrease again in the 2005 to 2010 period. The projections until 2020 show a positive growth in employment again.

The professional nature of the sector and the high intensity of highly skilled and skilled labour are clear from the WSP information. It can be expected to remain this way. The sector will continue to need highly skilled pharmacists and pharmacist assistants. The service and sales workers component is small because the Pharmaceutical Subsector employs many professionals as technical sales people as highly technical knowledge is required in order to assist with the marketing and sales of pharmaceutical products.

29

5 THE SUPPLY OF SKILLS TO THE SUBSECTOR

The supply of skills is viewed from different perspectives in this section. The supply of skills refers in the first instance to new entrants to the labour market from basic education, FET colleges and HET institutions (new skills). However, it is also important to consider the skills needs of the current workforce and the training initiatives aimed at developing their skills levels.

The first part of this chapter deals with new entrants to the labour market. Key trends and supply-side constraints are highlighted. Initiatives undertaken by the subsector to increase the number of appropriately skilled new entrants are described.

The second part of the chapter describes the inputs of employers to train their current staff.

5.1 NEW ENTRANTS TO THE LABOUR MARKET

The formation of skills starts with general education and training (i.e. the school system). The output from this system remains a concern to the Chemical Sector, mainly because the the system seems to be unable to supply adequate numbers (and quality) of school leavers with mathematics and physical science passes that can pursue studies to become engineers, technologist, technicians and artisans. The general standard of education of school leavers who enter the labour market without any further training is also insufficient.

The supply of new skills from the FET colleges into the Chemical Sector has traditionally been very limited. However, Government’s recent focus on increasing both the quality and quantity of output from FET colleges holds the promise that these institutions can play a more significant role in skills supply to the Chemical Sector in future.

At HET level, three fields of study that are of particular importance to the Pharmaceutical Subsector: Engineering, Chemistry and Pharmaceutical Science and Life Science.

In respect of the supply of new skills to the subsector there has been substantial growth in the numbers of new graduates from universities and universities of technology in certain engineering fields. In terms of average annual output of national diplomas, growth is reported at 7.0% for diplomas in chemical engineering and technology and 6.0% for first degrees in the same field. Despite these positive growth trends, increases have not yet been sufficient to meet the needs of the national economy, the Chemical Sector, and the Pharmaceutical Subsector in particular. In order to ensure future growth it will be necessary to support higher education institutions through a variety of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace-training opportunities for students from the universities of technology.

The number of national diplomas and first degrees awarded in the field of Chemistry and Pharmaceutical Sciences can be seen in Table 5-1. The national diplomas in Chemistry increased steadily over the period 2001 to 2011 at an average annual growth rate of 5%. First three-year degrees increased until 2009. The drop in figures in 2010 could possibly be ascribed to the changes

30

in the SAPSE system52. First four-year degrees in Pharmaceutical Sciences increased at an average annual growth rate of 4% over the 2001 to 2011 period.

Information on qualifications awarded in Life Sciences is only available for the years 2010 and 2011. Output in the fields Botany/Plant Biology, Microbiological Sciences & Immunology, Pharmacology & Toxicology and Biotechnology are shown in Table 5-2. The time period is too short to discern any trends in these fields.

52 Information presented on HET achievements was obtained from the Department of Higher Education and Training’s database called the Higher Educations Management Information System (HEMIS). This database contains data required for quality assurance, national and institutional higher education planning, and the allocation of government funds to higher education institutions. After its inception in 2000, HEMIS used the subject matter classifications of the old South African Post-Secondary Education (SAPSE) system. The key skills needed in the Pharmaceutical Subsector relate to the following HEMIS categories: Life Science and Physical Science. In 2008, the system was revised and category changes were made. The revised categories were used to collect output data from 2010 onwards. The category “Life Science and Physical Science” was divided into two separate categories i.e. “Life Science” and “Physical Science” with more second-order categories than before. In the absence of official information about the correspondence between the two systems (mapping), HEMIS data from 2010 onwards cannot always be compared to the data of earlier years.

31

Table 5-15 Number of diplomas and first degrees awarded in Chemistry and Pharmaceutical Science: 2001-2011

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011AAG (%)

Chemistry: National diploma 266 272 268 85 337 339 339 535 394 450 422 5Chemistry: First 3-year degree 422 408 408 516 544 619 693 601 666 360 424 0.1Pharmaceutical science: First 4-year degree 359 380 380 491 367 308 385 394 386 466 508 4

Source: HEMIS (DHET), 2001-2011.

Table 5-16 Number of national diplomas and first degrees awarded in selected fields in Life Science: 2010 - 2011

Category Qualification 2010 2011AAG (%)

Botany/Plant BiologyNational diploma 5 0 -94Three-year degree 147 105 -29

Microbiological Sciences & Immunology

National diploma 42 46 9Three-year degree 212 226 7

Pharmacology & ToxicologyNational diploma 29 28 -1Three-year degree 33 37 13

BiotechnologyNational diploma 136 144 6Three-year degree 103 94 -9Three-year degree 212 226 7

Source: HEMIS (DHET), 2010-2011.

32

5.2 THE TRAINING AND DEVELOPMENT OF EMPLOYEES

Companies in the Chemical Sector are involved in a range of training and development initiatives that focus on developing the skills of their employees. Such initiatives not only supplement, but also build on the training that supplies new skills to the sector. This training and development of the current workforce forms a critical source of skills supply.

In 2011/2012 training opportunities were afforded to almost two thirds (64.5%) of employees in the Pharmaceutical Sector. A quarter of professionals received training (Figure 5-1). About 15% of managers, technicians and associated professionals; plant and machine operators and assemblers; and workers in elementary occupations, received training respectively. Stakeholders in the Pharmaceutical Subsector indicated that a lot of in-house training is being done in the subsector to address specific specialised shortages.53

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Perc

enta

ge

Figure 5-7 Proportion of employees who received training opportunities according to occupational category: March 2012

Source: WSP submissions, June 2012.

In total about 58 441 training opportunities were afforded to employees (one employee can have access to more than one training opportunity). The type of training opportunities is listed in the table below. Just more than a quarter (29.0%) were induction training, about another quarter (26.0%) were job specific development programmes, and almost another quarter (23.2%) short courses. Just more than a tenth (11.5%) of the opportunities related to skills programmes.

53 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.

33

Table 5-5-17 Training opportunities in the Pharmaceutical Subsector

Qualification /learning type N %

Induction and other training 5 120 29.0

Job Specific Development Programme 4 591 26.0

Short Courses 4 092 23.2

Skills Programme 2 024 11.5

CHIETA Learning Programme 692 3.9

NQF Level 1 649 3.7

Work Placement 170 1.0

NQF Level 4 109 0.6

NQF Level 5 59 0.3

Learnership 53 0.3

Below NQF Level 1 37 0.2

NQF Level 7 29 0.2

NQF Level 6 29 0.2

NQF Level 9 10 0.1

NQF Level 8 4 0.0

Total 17 668 100

Source: WSP submissions, June 2012.

Training and education challenges54

During the workshop, stakeholders mentioned a range of training and education challenges faced by the industry. Some of these challenges are the following:

The difficulty to access discretionary grants. The lack of funding for in-house training. The fact that short courses are not always accredited. The lack of sufficient assessors. The poaching of skills. The lack of structured internships. The lack of sufficient partnerships regarding skills development. The need for a review of qualifications in the pharmaceutical environment. The expiring of the two-year training qualification for pharmacist assistants, while there is a

shortage of pharmacist assistants. The difference in standards and critical content regarding e-learning and classroom based

training. The lack of a formalised process for mentoring and coaching. The need to repackage the generic skills component of training. The need to investigate the role of Pivotal grants and programmes.

54 Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.

34

5.3 CONCLUSION

The output from the school system remains a concern in respect of the following: inadequate (in terms of quantity and quality) supply of school leavers with mathematics and physical science passes that can pursue studies to become chemists, pharmacists, technologist and technicians (at HET level) and artisans (at FET level); and inadequate education levels of the general workforce that enters the Chemical Sector without previous training. The supply of new skills from the FET sector into the Chemical Sector has traditionally been very limited. However, Government’s recent focus on increasing both the quality and quantity of output from FET colleges is an indication of the future role that these institutions can play in skills development in the Chemical Sector.

Changes to the HEMIS limits the analysis of trends in the graduation of the main professional skills used in the pharmaceutical sector.

Stakeholders indicated that there is a range of supply constraints that has an impact on the subsector. Some of the constraints are insufficient funding for training, the use of non-accredited short courses, the lack of a structured internship, the lack of partnerships with FET colleges and HEIs, and the lack of a formalised framework for mentoring and coaching.

35

6 SKILLS SHORTAGES IN THE SUBSECTOR

There are various ways of identifying and monitoring skills shortages in a particular labour market. One of these is to ask employers about their experiences when recruiting people for positions in their organisations. Another way is by monitoring vacancy rates in that sector because skills shortages are bound to lead to unusually high vacancy rates. Skills shortages will also drive up the costs of the skills that are in short supply and therefore the monitoring of remuneration trends can also shed light on trends in relation to skills shortages.

CHIETA attempts to glean an understanding of skills shortages in the Chemical Sector by asking employers to identify these shortages when they submit their mandatory grant applications to the SETA. This information was requested for the first time in June 2011 – i.e. in the WSPs submitted for the 2011/2012 financial year. The information submitted by employers in the Pharmaceutical Subsector is analysed in this chapter. In addition the feedback of stakeholders during the subsector workshops is also reported.

It has become customary in South Africa to use the term “scarce skills” to refer to quantitative shortages in the labour market – in other words there are not enough people with the necessary qualifications available to be appointed in positions that become available in the market. This term is also used in this chapter. Another aspect of skills shortages has to do with the qualitative components of the labour market – there may be people available to appoint, but they don’t have the right skills, abilities or other attributes that employers are looking for. Skills deficiencies can also develop among the workers that are already employed, because of the introduction of new technologies, new legislative requirements etc. These aspects are not discussed at this stage as they are generally taken care of by employers through in-service training.

6.1 SKILLS SHORTAGES IN THE SUBSECTOR

As mentioned above, the information on scarce skills was obtained by analysing the WSPs submitted in June 2012. This information reflects the situation as experienced by employers at the end of March 2012.

In the scarce-skills table that employers completed, they first had to name the occupation in which they experienced scarcity, and then had to select from two possible descriptions the one that best described the scarcity they experienced – i.e. “relative scarce skill” (referring to a situation where people are available in the labour market, but cannot easily be attracted to the sector); and “absolute scarce skill” (where people are generally in short supply in the labour market). For all the occupations in which scarcity was experienced, employers also had to indicate how many vacant positions were available at the time they completed the WSP. In addition, they were requested to identify what type of learning interventions they were planning to use to address the skills shortages.

Of the 64 pharmaceutical organisations who submitted WSPs to the CHIETA in 2012, 30 (46.9%) indicated that they experienced a scarcity of skills. The total number of people reported to be needed in occupations in which there were skills shortages is 506; this equates to 2.3% of total employment in the subsector. The data shows that the skills of pharmacist assistants and industrial pharmacists are highly in demand (this was confirmed by stakeholders at a workshop). There were 103 vacancies for pharmacist assistants and 70 vacancies for industrial pharmacists. These shortages were confirmed by participants in the stakeholder workshop.55 Stakeholders also confirmed the shortage in clinical research associates. Stakeholders further indicated a shortage in quality validation technicians, mechatronic skills, quality engineers (mechanical and electrical engineers are usually trained in-house to become quality engineers), clinical trial assistants and dieticians.

55 Stakeholder workshop for Pharmaceutical Subsector, 25 June 2013.

36

The Pharmaceutical Subsector operates in a technology-driven environment, which requires the skills of pack lab technologists. The main role of pack lab technologists is to ensure that packaging is compatible with modern technology and legislation. Due to the unavailability of a qualification, the subsector is at present offering learners with Matric a one-year in-house training course to prepare them to work as pack lab technologists.56

There is also a shortage of medical advisors holding a medical qualification (these advisors are usually involved in advice regarding industry-related regulations). The stakeholders mentioned that this occupation is not reflected by the WSP-ATR data due to challenges related to aligning it with the OFO.57

Table 6-6-18 Vacancies in the Pharmaceutical Subsector

OFO Code Occupation Number of vacancies

226203 Pharmacist Assistant 103226202 Industrial Pharmacist 70243302 Sales Representative (Medical and Pharmaceutical Products) 65422501 Customer Services Clerk/Officer/Reception Officer 39213110 Clinical Research Associate 24313301 Pharmaceutical Production Controller 14713101 Pharmaceutical Products Machine Operator 14862918 Artisan Aide Electrical 14121908 Quality Manager 11311101 Chemical Laboratory Technician/Analyst 11122105 Customer Care Manager/Representative 10523102 Cash Accounting Clerk 8213105 Bioprocess Engineer 7213105 Biotechnologist 7214501 Pharmaceutical Engineer 7134201 Medical Manager 7214101 Industrial Engineer 7311401 Electronic Engineering Technician 7652302 Fitter and Turner 7122301 Research and Development Manager 6243103 Marketing Specialist 6653303 Machine Fitter 6671101 Electrician (Engineering) 6651302 Boilermaker 4121101 Chief Financial Officer (CFO) 4132102 Operations Manager (Production) 3132401 Supply Chain Manager 3134903 Small Business Manager 3211301 Analytical Chemist 3213108 Microbiologist 3242102 Organisation and Methods Official 3263101 Health Economist 3311904 Plastician 3

56 Ibid.57 Ibid.

37

OFO Code Occupation Number of vacancies

321301 Pharmacist Technician 3671202 Millwright 3121901 Corporate General Manager 1132104 Engineering Manager 1132402 Logistics Manager 1133105 Information Technology Manager 1134902 Laboratory Manager 1134906 Accounting Practice Manager 1212103 Statistical Analyst 1221210 Clinical Immunologist 1243102 Market Research Analyst 1432201 Material and Production Planning Clerk 1432201 Production Planner/Officer 1311904 Glass, Clay and Stone Manufacturing Technician 1Total 0

% of employment in Subsector 2.3Source: WSP submissions, June 2012.

6.2 TRAINING EMPLOYEES

Employers were asked what type of learning interventions they planned on using to address the scarcity. Table 6-2 below provides a summary of the type of learning interventions employers plan to apply to address the scarcity of skills. Close to a third (31.8%) specifically mentioned that they were going to use formal training that would lead to certificates, diplomas and degrees. Just more than a quarter (28.0%) indicated that they were going to use job specific development programmes. Other learning interventions employers plan to apply are workplace experience, learnerships, mentorships, and skills programmes.

38

Table 6-19 Learning interventions to address scarce skills, 2011/2012

Learning intervention N %Certificate 5 3.8CHIETA Learning Programme 6 4.5Degree 24 18.2Diploma 13 9.8Job Specific Development Programme 37 28.0Learnership 11 8.3Mentorship 11 8.3Short Course 3 2.3Skills Programme 9 6.8Work Placement 13 9.8Total 132 100.0Source: WSP submissions, June 2012.

6.3 CONCLUSION

The demand for pharmacists remains high, as their knowledge and skills are used in a variety of units in companies. However, many qualified pharmacists prefer over-the-counter or sales-related jobs and that causes scarcity in other areas of the business. The CHIETA is currently engaged in a range of partnerships, agreements and plans to contribute to both the development of new skills for the subsector, as well as the development of skills within the existing workforce. These initiatives range from support for HET institutions and partnerships with Government and industry associations.

39

7 SKILLS PLAN FOR THE SUBSECTOR

The dti has conducted a study regarding the skills development of human capital in the Pharmaceutical Subsector. Some of the recommendations for skills planning, based on this research are the following:58

Financial benefits and personal growth opportunities are some of the incentives that need to be addressed in order to attract more life science skills to the country. Current laws and processes involving the importation of skills need the collaboration of industry and relevant government departments in establishing and promoting scarce resources.

Partnerships with organisations and universities abroad need to be formed. Increased collaboration is required between higher education, CHIETA, industry, trade

associations, the Pharmacy Council and research organisations. Pharmaceutical specialist training institutions need to be established. A sector strategy upon which all other strategies and initiatives can build, including skills

planning and development, is required.

A key structural constraint to sustainable industrialisation in South Africa has been the absence of demand-driven, sector specific skills strategies and programmes, aligned with investment, employment and technological imperatives. The Human Resource Development Council of South Africa (HRDC-SA) is in the process of developing improved sector skills alignment interventions that could address the problem of high and mid-level skills shortages and underpin demand-driven skills interventions. The aim is a shift away from the current oversupply of low-skill qualifications (e.g. NQF levels 1-3) towards an increased supply of mid and high-level qualifications (NQF levels 4 and higher). Furthermore, the National Skills Accord aims to strengthen more effective co-ordination and articulation across the entire education and skills development pipeline, with key commitments by Government, business and labour.

A major challenge is to increase lecturing capacity and improve curricula, equipment, machinery and training facilities to align with new production methods and technology in the Pharmaceutical Subsector. The aggregate size and quality of graduate supply across the education and skills development chain has not provided a sufficient base to support growth opportunities in the Manufacturing Sector in general and new and emerging sectors in particular. The establishment of the dti-driven industry working groups (metals, plastics and pharmaceuticals) will provide further impetus for alignment with IPAP priorities, while putting a stronger focus on the promotion of a medium to long-term perspective on training for employment. Furthermore, the IPAP Pharmaceuticals Skills Strategy envisages:59

Training for medicine control regulators and regulatory affairs personnel. Training to meet the needs for ARV APIs at Pelindaba for Project Ketlaphele, which includes

the training of 50 people abroad. A training programme for the Biovac Project (to reduce dependency on rotavirus and

streptococcal pneumonia vaccine imports), which also includes the training of 50 people abroad.

Other skills plans are:60

The use of RPL and in-house training to fast-track internal development of talent. The continuation of social investments and the capacitation of mathematics and science

teachers with the hope of improving the pass rate at matric level.58 dti, (2011). Human Capital Outlook Implications for Skills Development in the Pharmaceutical Sector.59 dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.60 Stakeholder workshop for Pharmaceutical Subsector, 25 June 2013.

40

The formalisation of the e-learning programmes of multi-nationals in the QCTO environment.

The skills plan for the Pharmaceutical Subsector will be developed by the Pharmaceutical and FMCG Chamber.

41

REFERENCES

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ACTS Online, http://www.acts.co.za. Accessed 28 June 2013.

Business Day, (2012). Glaxo to raise stakes in India, Nigeria units. Business Day, 27 November 2012.

CCMA, (2013). Online searchable database of CCMA awards and Labour Court judgments. http://www.caselaw.co.za. Accessed 28 June 2013.

CHIETA, Five Year Sector Skills Plan for the Chemical Sector. Annual Update, 2013 – 2018.

CMS, (2007). Bolar Provision and Regulatory Data Exclusivity in Europe. London: CMS (The alliance of major European law firms).

DAI, (2013). Establishment of the Office of Health Standards Compliance. http://dai.com. Accessed 13 June 2013.

Deloitte, (2007). The economic & socio-economic benefits of R&D-based multinational pharmaceuticals on the South African economy. Johannesburg: Studio of Deloitte.

DHET, (2012). Green Paper for Post-school Education and Training 2012. Pretoria: DHET.

dti, (2011). The South African Pharmaceutical Sector Profile for the Consideration of Designation of Pharmaceutical Products in terms of the PPPFA.

DST, (2008). Innovation Towards a Knowledge-based Economy – A Ten Year Plan (2008-2018).

dti, (2011). Human Capital Outlook Implications for Skills Development in the Pharmaceutical Sector. Pretoria:dti.

dti, (2011). The South African Pharmaceutical Sector Profile for the Consideration of Designation of Pharmaceutical Products in terms of the PPPFA.

dti, (2012). Government announces pharmaceutical sector for designation. http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=26647&tid=64480. Accessed 2 July 2013. Pretoria:dti.

dti, (2013). Industrial Policy Action Plan: Economic Sectors and Employment Cluster IPAP 2013/14 – 2015/16. Pretoria: dti.

dti, (2013). IK and Pharma. Pretoria: dti.

Imshealth, (2013). Healthcare Growth Markets. http://www.imshealth.com. Accessed 9 July 2013.

Independent Project Analysis, (2013). Speciality Chemicals. http://www.ipaglobal.com/Industries/Specialty-Chemicals. Accessed 12 June 2013.

Innovative Medicines South Africa (IMSA), (2013). Quality Medicines: Valued Healthcare Solutions. www.imsa.org.za. Accessed 29 May 2013.

Innovative Pharmaceutical Industry Association of South Africa (IPASA), (2013). The pharmaceutical industry at a glance. http://www.health24.com/Medical/Meds-and-you/Inside-the-lab/The-pharmaceutical-industry-at-a-glance-20130521. Accessed 16 June 2013.

International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), (2011). The pharmaceutical industry and global health: Facts and figures. Geneva: IFPMA.

International Finance Corporation, (2007). The Business of Health in Africa. New York: World Bank Group.

42

International Generics Pharmaceutical Alliance (IGPA), http://www.igpagenerics.com/. Accessed 12 June 2013.

Kahn, T. (2013). Pharmaceutical firms eye Africa. Business Day, 17 January 2013.

Kirk-Othmer Encyclopedia of Chemical Technology (Fourth Edition), (1994). New York: John Wiley and Sons.

National Association of Pharmaceutical Manufacturers (NAPM), http://napm.co.za/. Accessed 17 June 2013.

NDoH, (2011). National Health Research Summit Report, Proceedings and recommendations of the 2011 National Health Research Summit, 26 – 27 July 2011.

NdoH, (2013). National Health Insurance. http://www.doh.gov.za/list.php?type=National%20Health%20Insurance. Accessed 12 June 2013.

OECD, (2008). The Economic Impact of Counterfeiting and Piracy. Paris: OECD.

PMG, (2007). Joint Initiative for Priority Skills Acquisition (JIPSA) Progress Report. http://www.pmg.org.za. Accessed 14 June 2013.

SARS, (2013). Data. http://www.sars.gov.za. Accessed 18 June 2013.

South African Government, (2009). Human Resource Development Strategy for South Africa 2010-2030. Pretoria: SA Government.

SouthAfrica.info, (2013). Aspen in Dutch pharmaceutical deal. http://www.southafrica.info. Accessed 28 June 2013.

Stakeholder viewpoint at workshop on 25 June 2013, Johannesburg.

The International Treaty, (2013). On Plant Genetic Resources for Food and Agriculture. http://www.wipo.int. Accessed 12 June 2013.

The Presidency, (2010). Accelerated and Shared Growth Initiative - South Africa (ASGISA). http://www.info.gov.za/asgisa/asgisadoc.pdf. Accessed 14 June 2013.

US Environmental Protection Agency (EPA), (1997). Profile of the Pharmaceutical Manufacturing Industry. Washington, DC: EPA.

Walwyn, D.R. (2008). Proposed Support for the Local Manufacture of Active Pharmaceutical Ingredients. Pretoria: dti.

Webmaster, (2012). SA Marketing Code of Practice. http://www.frontshop.co.za. Accessed 4 June 2013.

World Health Organisation (WHO), (2003). Substandard and counterfeit medicines. http://www.who.int/mediacentre/factsheets/2003/fs275/en/. Accessed 11 June 2013.

World Health Organisation (WHO), (2006). Counterfeit Medicines. http://www.who.int/medicines/services/counterfeit/impact/ImpactF_S/en/. Accessed 11 June 2013.

World Health Organization (WHO), (2011). Technical Report Series, No. 961, 2011.

Yurukoglu, A. (2012). Medicare Reimbursements and Shortages of Sterile Injectable Pharmaceuticals. Stanford: Graduate School of Business, Stanford University and NBER.

43

ANNEXURE 1 OCCUPATIONS BY RACE AND GENDER IN THE PHARMACEUTICAL SUBSECTOR

Equity Managers Professionals Technicians and associate

professionals

Clerical support workers

Service and sales

workers

Skilled and trade

workers

Plant and machine operators and

assemblers

Elementary occupations

Learners

African Female 289 746 752 626 93 17 610 1 322 66

% 8.9 13.3 23.6 22.2 30.4 3.6 19.7 41.1 50.5

African Male 402 500 826 726 83 173 1 430 976 43

% 12.3 8.9 25.9 25.7 27.1 35.9 46.2 30.4 33.0

Total African 691 1 247 1 578 1 352 176 190 2 040 2 299 109

% 21.2 22.3 49.6 47.9 57.5 39.5 65.9 71.5 83.5

Coloured Female 183 385 350 447 46 6 430 575 3

% 5.6 6.9 11.0 15.9 15.0 1.2 13.9 17.9 2.2

Coloured Male 153 209 224 236 10 110 443 266 4

% 4.7 3.7 7.0 8.4 3.3 22.8 14.3 8.3 3.3

Total Coloured 336 593 575 683 56 116 874 841 7

% 10.3 10.6 18.0 24.2 18.2 24.0 28.2 26.2 5.5

Indian Female 194 453 164 173 7 0 34 6 1

% 6.0 8.1 5.2 6.1 2.3 0.0 1.1 0.2 1.1

Indian Male 207 274 143 90 9 24 60 17 9

% 6.4 4.9 4.5 3.2 2.8 5.0 1.9 0.5 6.6

Total Indian 402 728 307 263 16 24 94 23 10

% 12.3 13.0 9.6 9.3 5.1 5.0 3.0 0.7 7.7

44

Equity Managers Professionals Technicians and associate

professionals

Clerical support workers

Service and sales workers

Skilled and trade

workers

Plant and machine operators and

assemblers

Elementary occupations

Learners Total

White Female

874 2 133 525 447 23 0 26 16 1

% 26.8 38.1 16.5 15.9 7.5 0.0 0.8 0.5 1.1

White Male

961 899 200 76 36 152 63 36 3

% 29.4 16.1 6.3 2.7 11.7 31.5 2.0 1.1 2.2

Total White

1 834 3 032 725 523 59 152 89 51 4

% 56.2 54.1 22.8 18.5 19.2 31.5 2.9 1.6 3.3

Total Female

1 540 3 717 1 791 1 694 169 23 1 101 1 919 71

% 47.2 66.4 56.2 60.0 55.1 4.7 35.5 59.7 54.9

Total Male

1 723 1 883 1 394 1 128 137 459 1 996 1 295 59

% 52.8 33.6 43.8 40.0 44.9 95.3 64.5 40.3 45.1

TOTAL 3 263 5 600 3 185 2 822 306 482 3 097 3 214 130 22 098

Occupation Not Specified 2

Subsector Total employment 22 100

Source: WSP submissions, June 2012.

45

ANNEXURE 2 OFO OCCUPATIONS AND SPECIALISATION NAMES USED IN THE PHARMACEUTICAL SUBSECTOR

OFO Code Occupation Specialisation name

111204 Senior Government Official Spokesperson

111207 Senior Government Manager Head of Department

112101 Director (Enterprise / Organisation) Managing Director

Senior / Lead Independent Non-executive Director

Managing Director (Enterprise / Organisation)

Executive Director

Company Director

Chief Executive Officer (CEO)

Alternative Director

Non-executive Director

121101 Finance Manager Chief Accountant

Financial Administration Manager

Foreign Exchange Manager

Financial Controller

Financial Administrator

Chief Financial Officer (CFO)

Account Systems Manager

Finance Director

121102 Payroll Manager Remuneration Manager

121103 Credit Manager Billing and Settlement Plan (BSP) Manager

121201 Personnel / Human Resource Manager Employee Relations Manager

121202 Business Training Manager Education Training and Skills Development Manager

Human Resources Development Manager

Learning and Development Manager

Technical Training Manager

Training & Development Manager

Training Manager

Assessments Manager

121206 Health and Safety Manager Safety, Health and Environmental (SHE) Manager

121301 Policy and Planning Manager Strategic Planning Manager

Corporate Planning Manager

Planning & Development Manager

121901 Corporate General Manager Business Operations Manager

Administrative Services Manager

Business Services Manager

Corporate Services Manager

121903 Physical Asset Manager Resources Manager

121905 Programme or Project Manager Project Director

121908 Quality Systems Manager ETQA Manager

Management System Auditor

Quality Assurance / Systems Auditor

Quality Auditor

Quality Certification Manager

Quality Control Manager

46

OFO Code Occupation Specialisation name

Quality Manager

Quality Systems Coordinator

122101 Sales and Marketing Manager Business Development Manager

Business Support Manager

Key Account Manager

122102 Sales Manager Sales Director

Sales Executive

122103 Director of Marketing Market Research Manager

Marketing Director

Marketing Manager

122105 Customer Service Manager Client Service Manager

Client Services Advisor

Customer Care Manager / Representative

122201 Advertising and Public Relations Manager Media Advisor / Manager

Public Relations Manager

Relationship Manager

Corporate Relations Manager

Advertising Manager

Media & Communications Manager

122301 Research and Development Manager Product Development Manager

Research Director

Research Manager

131103 Production / Operations Supervisor (Forestry) Forestry Production Foreman

132101 Manufacturer Factory Manager

132102Production / Operations Manager (Manufacturing) Operations Manager (Production)

Plant Manager (Manufacturing)

132104 Engineering Manager Engineering Maintenance Manager

132105Power Generation Production/Operations Manager Hydroelectric Production Manager

132302 Project Builder Building Site Manager / Agent

132401 Supply and Distribution Manager Supply Chain Executive

Depot Manager

Supply Lead Manager

Supply Chain Manger

Procurement Manager

Freight Manager

132402 Logistics Manager Dispatch Logistics Manager

132404 Warehouse Manager Storage and Warehousing Manager

133101 Chief Information Officer ICT / IT Director

ICT / IT Manager

133102 ICT Project Manager ICT Project Director

133103 Data Management Manager Data Operations Manager

Data Processing Manager

133104 Application Development Manager Technical Solutions Manager

133105 Information Technology Manager Information Systems Director

134201 Medical Superintendent Public Health Manager

47

OFO Code Occupation Specialisation name

Director of Clinical Services

Director of Medical Services

Medical Manager

134204 Secondary Health Services Manager Director of Pharmacy

134602 Credit Bureau Manager Credit Control Manager

134901 Environmental Manager Agriculture and Forestry Coordinator

134902 Laboratory Manager Laboratory Manager

134903 Small Business Manager Owner Manager

134904 Office Manager Office Manager

134906 Practice Manager Accounting Practice Manager

Veterinary Practice Manager

134915 Operations Manager (Non Manufacturing) Mill Manager

141103 Reception Manager Reception Manager

142101 Importer or Exporter Export Manager

142103 Retail Manager (General) Retail Store Manager

143104 Arts / Culture Manager Arts / Culture Manager

143901 Facilities Manager Facilities Supervisor

143904 Security Services Manager Security Services Manager

143905 Call or Contact Centre Manager Call or Contact Centre Supervisor

Telesales Manager

211301 Chemist Pharmacologist (Non-clinical)

Analytical Chemist

Laboratory Chemist

Manufacturing Chemist

212102 Mathematician Operations Research Analyst

212103 Statistician Reporting Analyst

213108 Microbiologist Clinical Evaluation Advisor

Microbiology Researcher

213110 Medical Scientist Microbiologist (Medical Research)

Pharmacologist (Clinical Research)

Medical Technologist

Medical Researcher

Medical Laboratory Scientist

Clinical Research Associate

Medical Scientific Officer

213302 Environmental Scientist Environmental Advisor

214101 Industrial Engineer Plant Engineer

214101 Industrial Engineer Quality Management Engineer

Process Engineer

Manufacturing Logistics Engineer

Production Engineer

214102 Industrial Engineering Technologist Quality Management Technologist

Operations Research Technologist

Process Design Technologist

Process Technologist

214401 Mechanical Engineer Maintenance Management Engineer

48

OFO Code Occupation Specialisation name

214402 Mechanical Engineering Technologist Maintenance Technologist

Mechatronics Engineering Technologist

214501 Chemical Engineer Pharmaceutical Engineer

214502 Chemical Engineering Technologist Pharmaceutical Technologist

214908 Materials Engineering Technologist Materials and Non Destructive Testing Technologist

215201 Electronics Engineer Instrumentation Engineer

216302 Industrial Designer Commercial Product Designer

216402 Transport Analyst Logistics Analyst

221101 General Medical Practitioner Medical Practitioner

Physician

221102 Resident Medical Officer Medical Intern

221210 Specialist Physician (General Medicine) Clinical Pharmacologist

Renal Medicine Specialist

222101 Clinical Nurse Practitioner Clinical Nurse Specialist

222104 Registered Nurse (Community Health) Health Education and Promotion Nurse

Occupational Health Nurse

Registered Nurse (Medical Practice)

222114 Nurse Educator Staff Development Nurse

Clinical Nurse Educator

226201 Hospital Pharmacist Clinical Pharmacist

Health Service Pharmacist

Hospital Chemist

226203 Retail Pharmacist Pharmacist Assistant

Dispensing Chemist

226302Safety, Health, Environment and Quality (SHE&Q) Practitioner Health and Safety Officer / Coordinator / Professional

Occupational Health and Safety Advisor

Occupational Hygienist

Occupational Safety Advisor

Occupational Safety Practitioner / Officer

Risk and Safety Manager

Safety Coordinator

226401 Physiotherapist Occupational Health Physiotherapist

226501 Dietician Nutritionist

Health Advisor (Nutrition)

235101 Education or Training Advisor Education / Training Consultant

Education / Training Specialist

241101 Accountant (General) Debtors Manager

241102 Management Accountant Budget Accountant

Cost Accountant

Project Accountant

241103 Tax Practitioner Tax Consultant

241104 External Auditor Auditor

241107 Financial Accountant Corporate Accountant

Company Accountant

241202 Investment Manager Portfolio Manager

241301 Financial Investment Advisor Financial Business Analyst

49

OFO Code Occupation Specialisation name

Financial Planner

242101 Management Consultant Corporate Planner

Financial Systems Advisor

Ecommerce Programme Manager

Business Support Project Manager

Business Analyst

Business Consultant

Technology Development Coordinator

Business Turnaround Management Consultant

242102 Organisation and Methods Analyst Change Management Facilitator

Efficiency Engineer

Organisational Performance Improvement Manager

Work Study Officer / Observer

242202 Policy Analyst Special Projects Analyst

Strategy Analyst

Commerce Projects Advisor

Systems Advisory Officer Evaluations

242204 Corporate Treasurer Financial Risk Manager

242208 Organisational Risk Manager Organisational Development Manager / Practitioner

Organisational Risk Coordinator

Organisational Risk Officer

Risk Compliance Manager

242303 Human Resource Advisor Hr Analyst

Hr Coordinator

Hr Officer

Human Resource Consultant

Personnel Consultant

Personnel Officer

Remuneration and Benefits Specialist

Hr Administrator

242401 Training and Development Professional Training Consultant

Training Officer

Training Coordinator

Training and Development Practitioner

Training Material Developer

242402 Occupational Instructor / Trainer Business Leadership / Executive Coach

Business Skills Trainer

Maintenance Instructor

On-the-job Trainer

Product Trainer

243101 Advertising Specialist Advertising Account Executive

Advertising Coordinator / Specialist

243102 Market Research Analyst Marketing AnalystMarketing Research Accounts Manager / Key Account Manager

Trade Marketing Analyst

Market Research Project Manager / Project Leader

50

OFO Code Occupation Specialisation name

Market Access Counsellor

243103 Marketing Practitioner Sales Account Manager

Brand Manager

Sales Coordinator

Product Manager

Marketing Specialist

Marketing Professional

Marketing Officer

Marketing Consultant

Category Manager

Business Strategy Manager

Sales Promotion Officer

243201 Communication Coordinator Company Promoter

Public Relations (PR) Coordinator / Practitioner

Media Liaison Officer

Customer Relations Officer

Coordinator External / Internal Communication

Communication Management Coordinator

Corporate Affairs Officer / Coordinator

243203 Corporate Communication Manager Manager Public Affairs / Relations

Manager External / Internal Communication)

Manager Corporate Communications

Account / Regional Director (Communications Consultancy)Director Public Relations / Corporate Communications (Public Service)

243204 Event Producer Conference and Event Organiser / Coordinator

Event Coordinator

243301Sales Representative / Salesman (Industrial Products) Technical Representative / Salesman

Technical Sales Consultant / Coordinator / ManagerSales Representative (Medical and Pharmaceutical Products)

Medical Detailer

Medical Representative

Pharmaceutical Territory Manager

243403 ICT Sales Representative Computer Systems Consultant

251101 ICT Systems Analyst ICT Systems Architect

ICT Systems Coordinator

ICT Systems Specialist

Internet Consultant / Specialist

Systems Programmer

ICT Business Systems Analyst

251201 Software Developer Information Architect Software

Software Architect

Software Engineer

251202 Programmer AnalystArchitect ( Applications / Call Centre / Computing / Desktop / Ecommerce)Engineer (Applications / Content / IT / Software / Systems / WAN)

51

OFO Code Occupation Specialisation name

Architect (Enterprise / Internet / IT / Network / Software / Unix / Web)

251301 Multimedia Specialist Graphical Programmer

251401 Applications Programmer Applications Integrator

Software and Applications Developer

251901 Quality Assurance Analyst (Computers) Software tester

252101 Database Designer and Administrator Data Administrator

Database Administrator

252201 Systems Administrator Network / Computer System Coordinator

Network Administrator

IT Information Systems Administrator

Advisor Systems Management

252301 Computer Network and Systems Engineer Computer Systems / Service Engineer

ICT Customer Support Officer

Network Support Engineer

Systems Engineer

Systems Integrator

252302 Network Analyst Network Architect

252901 ICT Security Specialist Information Technology Security Manager

261101 Attorney Solicitor

Commercial Rights Manager

261102 Administrative Lawyer Legal Researcher

262101 Archivist Document Restorer

262201 Librarian Collection Development Manager

Information Scientist / Officer

262202 Information Services Manager Information System Consultant

Records Administrator

263101 Economist Health Economist

Development Finance Project Analyst

311101 Chemistry Technician Chemical Laboratory Technician / Analyst

Chemical Manufacturing Technician

Chemical Process AnalystChemical Technician (Food, Fuel, Gas, Paint, Liquefied Petroleum Gas, Leather)

Chemistry Technical Officer

311102 Physical Science Technician Product Quality Laboratory Technician

311202 Surveying or Cartographic Technician Surveying Technician

311301 Electrical Engineering Technician Electrical Instrument Technician

311302 Electric Substation Operations Manager Electric Power Plant Operator

Distribution Control Operator

311401 Electronic Engineering Technician Computer-numeric Control (CNC) Technical Officer

Digital Controls Technical Officer

Clinical Engineering Technician

311501 Mechanical Engineering Technician Mechanical Instrument Technician

311704 Geophysical Technician Geological Laboratory Technician

311801 Draughtsperson Mechanical Engineering Draughtsperson

Tool Designer

52

OFO Code Occupation Specialisation name

311904 Manufacturing Technician Plastics Component Manufacturing Technician

Plastics Manufacturing Technician

312201Production / Operations Supervisor (Manufacturing) Manufacturing Foreman

Production Plant Supervisor

Shift Manager (Production)

Assembly Supervisor

312202 Maintenance Planner Maintenance Scheduler

313201 Water Plant Operator Liquid Waste Process Operator

313301 Chemical Plant Controller Pharmaceutical Plant Controller

Pharmaceutical Production Controller

Chemical Process Technician

313401 Gas or Petroleum Controller Petroleum Blending Plant Controller

313901Integrated Manufacturing Line Process Control Technician Automated Assembly Line Operator

313907Food and Beverage Manufacturing Process Controller Food and Beverage Process Technician / Artisan

313910 Juice Extraction Process Controller Formulations Controller

314101 Life Science Technician Life Sciences Laboratory Technologist

Microbiology Technician

Biomedical Technician

Biochemistry Technician

314201 Agricultural Technician Seed Production Technician

Agricultural Sampling Officer

321101 Medical Diagnostic Radiographer Radiographer

321201 Medical Laboratory Technician Medical Laboratory Assistant

Medical Research Officer

Medical Laboratory Technical Officer

321301 Pharmaceutical Technician Pharmacy Technician

Dispensary Technician

Pharmaceutical Assistant

Pharmacist Technician

325201 Health Information Manager Clinical Trial Data Manager

Health Information Strategy Advisor

Medical Records Administrator

Medical Records Analyst

Medical Records Clerk

325601 Medical Assistant Clinical Assistant

325703 Agricultural / Horticultural Produce Inspector Dairy Quality Assurance Officer

331201 Credit or Loans Officer Credit Analyst / Control Officer

Finance Clerk / Officer

Credit Clerk

Credit Controller

331301 Bookkeeper Ledger Keeper

331401 Statistical and Mathematical Assistant Data Quality Officer

331501 Valuer Asset Protection Manager

331502 Insurance Investigator Insurance Case Manager

332201 Commercial Sales Representative After-sales Service Adviser

53

OFO Code Occupation Specialisation name

332203Sales Representative (Personal and Household Goods) Sales Representative (Cosmetics and Skincare Products)

Beauty Sales Consultant

332205 Manufacturers Representative Manufacturers Sales Agent

332207 Chemical Sales Representative Veterinary Products Sales Representative

332208 Pharmacy Sales Assistant Pharmacy Salesperson

Retail Dispensary / Pharmacy Assistant

332301 Retail Buyer General / Company Buyer

332302 Purchasing Officer Purchasing and Logistics Officer

Purchasing Agent / Assistant / Buyer / Clerk / Controller

Procurement Officer (Consumer Sensitive Consumables)

Procurement Clerk

Procurement Administrator / Coordinator / Officer

Purchasing Stores Officer

333101 Clearing and Forwarding Agent Shipping Agent

Shipping Agent Coordinator

333301 Recruitment Consultant / Officer Recruitment Coordinator

Recruitment Officer

333905 Supply Chain Practitioner Supply Chain Administrator

333908 Marketing Coordinator Marketing Support Coordinator

334101 Office Supervisor Personnel Clerks Supervisor

Data Entry Supervisor

Clerical Supervisor

334102 Office Administrator Office Coordinator

334201 Legal Secretary Legal Practice Manager

334302 Personal Assistant Administrative Secretary

Executive Assistant

Private Secretary

335101 Customs Officer Valuation and Origin Industry Complaints Officers

335402 Import-export Administrator Export Documentation Officer

Export Agent / Clerk

Shipping Tally Clerk

335907 Weights and Measures Inspector Weights and Measures Inspector

341102 Legal Executive Legal Executive

341110 Associate Legal Professional Legal Advisor

Legal Coordinator

Legal Officer

343401 Chef Head Chef

351201 ICT Communications Assistant Programme Analyst Data Processing

Computer Engineering Assistant

Computer Help Desk Operator

ICT Systems Analysis Assistant

351301 Computer Network Technician Network Support Technician

351302 Geographic Information Systems Technicians Technical Support Specialist

411101 General Clerk Tender Evaluation Coordinator

Administration Clerk / Officer

Administrative Assistant

54

OFO Code Occupation Specialisation name

Clerical Assistant / Officer

Client Services Administrator

Lab Administrator

Office / Field Assistant

Operation Services / Support Officer

Recording Clerk

413101 Word Processing Operator Typist

413201 Data Entry Operator Data Capturer

Data Compiler / Enterer / Officer / Operator

Data Control / Input Clerk

Data Processing Operator

421101 Bank Teller Bank Clerk / Officer

422201 Inbound Contact Centre Consultant Inbound Call Centre Customer Service Representative

Inbound Contact Centre Team Leader

422202 Outbound Contact Centre Consultant Call Centre Customer Service Representative (Outbound)

Call or Contact Centre Sales Agent / Consultant

422501 Enquiry Clerk Information Clerk / Officer / Advisor / Assistant

Customer Services Clerk / Officer / Reception Officer

Complaints Clerk

Customer Centre Support Officer

Corporate / Front Office Receptionist

422601 Receptionist (General) Front Desk Coordinator

422602 Medical Receptionist Patient Information Officer

431101 Accounts Clerk Ledger Clerk

Account Coordinator / Controller

Accounting Clerk

Accounts Payable or Receivable Clerk

Creditors Clerk

Debtors Clerk

431102 Cost Clerk Pricing Clerk / Analyst / Estimator

Costing Estimator

Costing Clerk

431202 Securities Services Administrative Officer Cash Management Officer

431301 Payroll Clerk Payroll Officer / Administrator / Advisor / Analyst

Salaries Clerk / Officer / Administrator

Wage Clerk

432101 Stock Clerk / Officer Purchasing and Inventory Officer

Stores Maintenance Clerk

Stores Coordinator

Supply Clerk / Assistant / Officer / Scheduler

Stores Controller

Packaging Material Stores Clerk-Perishable Produce

Inventory Clerk / Controller / Administrator

Stock Control Clerk

Stores Clerk / Officer

432102 Dispatching and Receiving Clerk / Officer Shipping and Receiving Clerk

55

OFO Code Occupation Specialisation name

Workshop Clerk

Receiving Clerk

Goods Receiving Clerk

Distribution Officer

Dispatch Clerk / Officer / Operator / Assistant / Worker

432103 Order Clerk / Officer Customer Orders Clerk

432104 Warehouse Administrator / Clerk Ca / Ra Storage Manager / Controller (Perishable Produce)

432201 Production Coordinator Parts Warehouse Clerk

Production Recorder / Scheduler

Production Planning Officer

Production Planner / Officer

Production Leader

Production Foreman

Schedule Clerk

Material and Production Planning ClerkLogistics Clerk / Assistant / Controller / Coordinator / Planner / Officer

Fresh Produce Dispatch Controller

Distribution Controller

Delivery Clerk

Production Clerk

432301 Transport Clerk Fleet Contracts Manager / Controller / Coordinator

Fleet Maintainer / Supply Officer

Truck Dispatcher

441101 Library Assistant Documentation Officer

Document Services Coordinator

441202 Postal Delivery Officer Messenger

441203 Mail Clerk Mail Handler

Mailroom Assistant / Clerk

Mail Centre Coordinator

441501 Filing or Registry Clerk Document Control Officer

Documentation Clerk / Officer

Listing Clerk

441502 Office Machine Operator Office Assistant Photocopying

441601 Human Resources Clerk Human Resources Systems Administrator

441602 Skills Development Administrator Training Administrator

441603 Compensation and Benefits Clerk Compensation and Benefits Administrator

441902 Contract Administrator Contracts Officer

441903 Program or Project Administrators Administration Officer

Administrator

Programme / Project Coordinator

Project Coordinator

Project Planner

Project Programme Specialist

513102 Cafe Worker Canteen Attendant / Worker

Cafeteria Assistant / Worker

515301 Caretaker Maintenance Officer

56

OFO Code Occupation Specialisation name

522201 Retail Supervisor Checkout Supervisor

Sales Promotions Officer

522301 Sales Assistant (General) Sales Person / Consultant

Cosmetic Sales Assistant

Telephone Salesperson

523102 Office Cashier Cashier

524201 Sales Demonstrator Merchandiser

524401 Call Centre Salesperson Telephone Sales Person

524903 Sales Clerk / Officer Internal Salesperson

532904 Personal Care Assistant Personal Care Assistant

541401 Security Officer Security Services Coordinator

Security Guard

Security Safety and Emergency Services Manager

542203 Special Forces Operator Team Leader (Tm Ldr)

611302 Landscape Gardener Gardener

613101 Mixed Crop and Livestock Farmer Mixed Crop and Livestock Production Supervisor

641201 Bricklayer Retort Setter (Bricklaying)

641501 Carpenter and Joiner Building Maintenance Repairman

641502 Carpenter Carpenter Maintenance

642701 Air-conditioning and Refrigeration Mechanic Air Conditioning and Refrigeration Technician

Air Conditioning Technician

642702 Refrigeration Mechanic Hvac Control Technician / Fitter

643201 Industrial Spraypainter Powder Coater

652301 Metal Machinist Fitter-machinist

Lathe Operator / Setter / Tradesperson

Machine Setter

Machine Tool Fitter

Machine Tool Setter

Machinist and Fitter (Automotive)

652302 Fitter and Turner Industrial Mechanician

653301 Industrial Machinery Mechanic Plant Maintenance Mechanic

653303 Mechanical Fitter Maintenance Fitter

General Fitter

661502 Optical Mechanic Optical Laboratory Assistant

671101 Electrician Electrician (General)

Electrical Contractor

Electrical Fitter

Electrician (Engineering)

671202 Millwright Millwright (Electromechanician)

Machine Tool Millwright

672101 Avionics Mechanician Aircraft Maintenance Engineer (Instruments)

672103 Business Machine Mechanic Office Machinery Maintenance Tradesperson

672104 Electronic Equipment Mechanician Electronic Adjuster / Fitter / Serviceman

672107 Special Class Electrician Electrician (Power Electronics)

672203 Computer Engineering Mechanic Computer Engineering Serviceperson

684301 Crop Produce Analyst Seed Sampler

57

OFO Code Occupation Specialisation name

711201 Mineral Processing Machine Operator Crusher Operator

711203 Diamond Cutter Sorter

712201 Electroplater Metal Coating Machine Operator

Metal Plating Machine Operator

713101 Chemical Production Machine Operator Chemical Crusher / Grinder

Cleaning Materials Machine Operator

Cosmetics Machine Operator

Explosives Mixer Operator

Pharmaceutical Products Machine Operator

Tablet Making Machine Operator

Toiletry Products Machine Operators

714202Plastic Compounding and Reclamation Machine Operator Shredder / Granulator Operator

714301 Paper Products Machine Operator Cutting Machine Operator

718201 Boiler or Engine Operator Ship's Boiler Operator

718302 Packing Machine Operator Wrapping Machine Operator

718303 Filling Line Operator Bottle Filler

Container Filler

718304 Packaging Manufacturing Machine Minder Packaging Machine Operator

718906 Bulk Materials Handling Plant Operator Palletiser Operator

718907 Weighbridge Operator Licensed Weigher

732101 Delivery Driver Driver-messenger

Van Driver

733201 Truck Driver (General) Logging Truck Driver

734402 Forklift Driver Forklift Operator

811201 Commercial Cleaner Cleaner (Non-domestic)

Office Cleaner

Building Exterior / Interior Cleaner

Factory Cleaner / Sweeper

811202 Healthcare Cleaner Medium Risk Area Cleaner

811203 Tea Attendant Tea Lady

812201 Vehicle Detailer (Valet Servicer) Wash bay Attendant

821104 Harvester / Picker Picker Quality Controller

821301Mixed Crop and Livestock Farm Worker / Assistant General Farm Worker

821501 Forestry Worker Forest Labourer / Hand / Pruner

831101 Mining Support Worker Centrifuge Pump Operator/ Pump Attendant

831301 Builder's Worker Artisan Aide Building Trade

Maintenance Person / Coordinator

Road Construction / Maintenance Labourer

831302 Drainage, Sewerage and Storm Water Worker Hydro Contract Worker

831310 Surveyor's Assistant Sampler/ MRM Sampler/ MRT Grade Controller

832102 Meat Packer Shrinkwrap Operator

832901 Metal Engineering Process Worker Fitter's Assistant

832902Plastics, Composites and Rubber Factory Worker Plastics Packer

832904 Food and Beverage Factory Worker Line Attendant

832907 Chemical Plant Worker Chemical Tester (Physical/ Routine)

58

OFO Code Occupation Specialisation name

833301 Freight Handler (Rail or Road) Checker and Loader Transport Vehicle

Freight Loader

833401 Shelf Filler Storeperson Packer / Shelver

Warehouse Worker / Shelver

833402 Store Person Warehouse Assistant

Manufacturing Storeperson

Order Picker / Assembler

Stores Assistant

862102 Luggage Porter Baggage Checker

Doorperson

862202 Handyperson Handy Man

862918Electrical or Telecommunications Trades Assistant Artisan Aide Electrical

Instrument Artisan Assistant

862919 Mechanic's Assistant Stripper / Assembler

59