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Skills Development in South Africa A Reader on the South African Skills Development Arena

Skills Development in

South Africa

A Reader on the South African

Skills Development Arena

Claudia Mummenthey

DED Reader: Skills Development in South Africa

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Imprint

Published by: German Development Service (DED) South Africa and Lesotho

Responsible: Christian Zange, Administrator Knowledge Management, German Development Service (DED) Southern and Eastern Africa, P.O. Box 13630, 1110 Arcadia Street, Hatfield 0028, Tshwane (Pre-toria), South Africa; Hatfield Gardens, Block C, 333 Grosvenor Street, Hatfield, Pretoria, South Africa.

Author: Claudia Mummenthey, CMC Consulting cc, Cape Town, [email protected]

Concept and Co-ordination: Eva Stütz, Christian Zange

Editing: Claudia Mummenthey, Eva Stütz, Christian Zange

Graphic Design/Layout: Christian Zange

Photographs: Christian Zange

February 2010

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Acknowledgements

The author would like to thank Eva Stuetz, Christian Zange, Stefan Brutscheck, Tanja Jaser and Dr. Man-

fred Dutschke for their valuable contributions to this reader.

Cape Town, 2nd February 2010

Claudia Mummenthey


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Foreword

Education, training and skills development is – nobody could argue - crucial for the economic and social

development in South Africa. Since 1994, the South African Government has been investing tremendous-

ly into the transformation of the training and education system. The whole sector has been in a conti-

nuous and comprehensive change process and lots of challenges still lie ahead.

For more than 10 years, the German Development Cooperation has supported the development of sys-

tems, structures and processes in the skills development sector. In this context, DED has been cooperat-

ing with Further Education and Training Colleges in the Eastern Cape since 2006.

Primarily, this reader is aimed at DED staff involved in skills development and in other fields of work.

The reader provides an overview of the Education and Training System in South Africa, but focuses on

skills development in the sense of further education and training (in other countries known as vocational

education training - VET). It provides background information, analytical aspects and reflects the devel-

opments of the past as well as the current reforms.

However, policies and strategies relating to skills development are currently in motion and changes to the

system may be introduced at any time. The current reader is based on the latest information available at

the time of writing, in November 2009.

Furthermore, the current political reforms have allocated the responsibility for all Skills Development and

Training towards the newly created Department of Higher Education and Training. In future, this de-

partment will therefore assume responsibility for the FET college sector. However, the detail of this

transfer is still to be formulated and implemented (December 2009).

Dr. G.M. Teuber Eva Stuetz

Regional Director South Africa and Lesotho Coordinator Skills Development and Labor Market

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Abbreviations and Acronyms

CEP Community of Expert Practitioners

DoE Department of Education

DoL Department of Labour

DHET Department of Higher Education and Training

ETQA Education and Training Quality Assurance Body

FLC Foundational Learning Certificate

GFETQF General and Further Education and Training Qualifications Framework

GFETQC General and Further Education and Training Quality Council

HEQC Higher Education Quality Council

HEQF Higher Education Qualifications Framework

NQF National Qualifications Framework

NSDS National Skills Development Strategy

NSA National Skills Authority

OFO Organising Framework for Occupations

QCTO Quality Council for Trades and Occupations

RPL Recognition of Prior Learning

SAQA South African Qualifications Council

SETA Sector Education and Training Authority


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Table of Content

Imprint ........................................................................................................................................................................... 2

Acknowledgements ...................................................................................................................................................... 3

Foreword ....................................................................................................................................................................... 4

Abbreviations and Acronyms .................................................................................................................................... 5

Table of Content .......................................................................................................................................................... 6

List of Tables ................................................................................................................................................................ 8

List of Figures ............................................................................................................................................................... 8

1 Historical Background to Key Challenges in the Skills Development Arena .......................................... 9

1.1 Education and Skills Levels ..................................................................................................................... 9

1.2 Provision of Education and Training: Institutional Landscape ....................................................... 10

1.3 Industry Training: Culture and Practices ............................................................................................. 10

1.4 Vocational Education and Training: History and National Recognition ...................................... 10

1.5 Variety of National Languages .............................................................................................................. 11

2 System Reform: The Reform Process and its 3 Major Stages ................................................................... 12

2.1 Stage 1: The Integrative NQF Vision and its Main Objectives........................................................ 12

2.2 Stage 2: Turning Vision into Legislation............................................................................................. 15

2.3 Stage 3: Implementation and Review of the System .......................................................................... 15

2.3.1 Key Implementation Agencies and Structures .......................................................................... 15

2.3.2 Financing of the Skills Development System ............................................................................ 17

2.3.3 Skills Development Strategies and Initiatives ............................................................................ 18

2.3.4 Review of the System ..................................................................................................................... 18

3 The Education System ..................................................................................................................................... 20

3.1 Key Challenges in the Three Qualification Bands ............................................................................. 20

3.2 Intermediate Skilling: The FET College Sector .................................................................................. 21

3.2.1 The FET Sector in General .......................................................................................................... 21

3.2.2 The DED and the FET College Sector ...................................................................................... 24

3.2.3 Project Description1: Development of a Human Resource Management System .............. 26

3.2.4 Project Description 2: Quality Management – a Developmental Approach ........................ 27

3.3 Intermediate Skilling: The Learnership System .................................................................................. 28

4 The Current Legislative Reforms: What Will Change? ............................................................................... 33

4.1 Revised NQF Structure: 3 Sub-Frameworks and 10 NQF Levels .................................................. 33

4.2 Quality Council for Trades and Occupations (QCTO) .................................................................... 34

4.3 Organising Framework for Occupations (OFO) ............................................................................... 34

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4.4 Occupational Qualifications and Curriculum Model ......................................................................... 36

5 Key Terms and Abbreviations of the New System ..................................................................................... 39

References ................................................................................................................................................................... 40

Annex 1 New National Qualifications Framework .............................................................................................. 43


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List of Tables

Table 1 The main NQF Objectives ........................................................................................................................ 13

Table 2 Key Terms of the NQF System ................................................................................................................ 13

Table 3 The 8-Level National Qualifications Framework ................................................................................... 14

Table 4 Legislation related to Skills Development ............................................................................................... 15

Table 5 Key implementation agencies of Skills Development ........................................................................... 15

Table 6 National Skills Development Strategies and Initiatives ......................................................................... 18

Table 7 Challenges identified by the NQF Review .............................................................................................. 19

Table 8 The three main qualifications bands ......................................................................................................... 20

Table 9 Vision for the development of the FET Colleges Sector ..................................................................... 22

Table 10 FET Programme Offer ............................................................................................................................ 23

Table 11 Key Challenges in the FET College Sector ........................................................................................... 24

Table 12 DED interventions as linked to Challenges in the FET Sector ......................................................... 25

Table 13 DED interventions in the Eastern Cape ............................................................................................... 26

Table 14 Innovative characteristics of the QMS model ...................................................................................... 27

Table 15 Learnership responsibilities ..................................................................................................................... 29

Table 16 Apprenticeships versus learnerships ...................................................................................................... 30

Table 17 The 3 Sub Frameworks and their Quality Councils ............................................................................. 33

Table 18 Revised legislation ..................................................................................................................................... 33

Table 19 Main Functions of the QCTO ................................................................................................................ 34

Table 20 OFO Structure ........................................................................................................................................... 35

Table 21 Key Areas of Occupational Learning ..................................................................................................... 36

Table 22 Occupational Qualifications .................................................................................................................... 36

Table 23 Entry Requirements to Final External National Assessment ............................................................. 37

Table 24 Key Terms and Abbreviations of the New System ............................................................................. 39

List of Figures

Figure 1 Stakeholder Framework of the Skills Development System ............................................................... 17

Figure 2 Occupational Curriculum Development Process ................................................................................. 38

Figure 3 Figure 3 New National Qualifications Framework .............................................................................. 43

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1 Historical Background to Key Challenges in the Skills

Development Arena

Since the advent of democracy in 1994 South Africa has made significant gains and progress in overcom-

ing the skills development legacy of its past. But despite this progress, low levels of skills among the ma-

jority of the formerly disadvantaged population and stubbornly high unemployment rates, especially

among youths (age 15-24), still remain one of the country‟s most pressing concerns and greatest impedi-

ments towards a better future for all.

Current unemployment figures in June 2009 reveal an unemployment rate of 23.6% on the narrow defini-

tion. On the broad definition, which includes discouraged work-seekers (i.e. those who are not/no longer

actively seeking work) the rate rises up to 34%, placing South Africa on the list of countries with one of

the highest unemployment rates in the world. Unemployment significantly decreases with the level of

education, thus being lowest in the population group with a degree or certificate (STATS, SA, 2008). Ac-

cordingly, most of the current youth unemployment is due to a low level of education, skills not meeting

the needs of employers (i.e. a „skills-mismatch‟) and the lack of relevant work-experience (Kingdon &

Knight, 2004; Soko, 2008, UNECA, 2005).

Skills deficits and unemployment do not only severely constrain the country in terms of future economic

growth and further development. Most importantly, they are the greatest impediment towards a more

equal society. After all, South Africa is among the most unequal societies in the world (right after Brazil),

with a Gini coefficient between 0.58 and 0.73 and the majority of the population (i.e. between 40% and

55% depending on the definition and methodology) is still living in poverty (Knight, 2006, p. 1; McGrath

& Akoojee, 2007, pp. 422-423; OECD, 2007, p. 24; Seekings, 2007, p. 11).

The skills development challenge as it has been inherited from the restrictive education and training poli-

cies of the past is not easy to be overcome. Apart from dealing with the general pressures produced by

globalisation and the knowledge economy, South Africa faces some unique domestic challenges in the

area of skills development. These challenges have been mainly inherited from the apartheid era. The fol-

lowing paragraphs give a short overview of some of the key challenges in the skills development arena.

The challenges given are faced besides the commonly acknowledged high prevalence of HIV/Aids in the

labour force and an additional net loss of skilled professionals through emigration (often referred to as

skilled emigration or brain drain). This is mainly attributed to high incidents of crime and violence, poor

economic growth rates, the decline in public services and a lack of financially lucrative job opportunities

as compared to overseas.

1.1 Education and Skills Levels

The overwhelming magnitude of the skills challenge, related to general education, facing the incoming

government in 1994 can best be described by figures from a report by the Joint Education Trust pub-

lished within the same year (Heitmann, 2000). According to this report:

Approximately 7.5 million people aged 15 and older were illiterate or „severely underedu-

cated‟.

Almost 3 million were totally unschooled and another

4.5 million had so little primary education that they were considered to be „barely lite-

rate‟.

Overall, the figures revealed an adult illiteracy rate of 29 percent of the total population (p.

101).


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The large majority of the population had never been exposed to any form of formal training nor received

acknowledgement of their acquired skills and/or qualifications.

1.2 Provision of Education and Training: Institutional Landscape

Furthermore, due to the disintegrative and “exclusive” education and training policy during the apartheid

era, the overall educational system as well as its delivery institutions (i.e. private and public education and

training providers) was highly fragmented and often dysfunctional. The educational landscape which was

painted in 1994, thus revealed an additional challenge in the public provision of education and training:

39 different education systems and respective regulating laws;

With no nationally acknowledged and assured qualifications framework limiting the transferability

of qualifications across learning institutions and industry sectors;

Performance level spread between institutions:

Highly resourced education and training institutions in the formerly “white system”;

Often dysfunctional rural colleges with poor quality curricula, pedagogy and infrastructure in the

“formerly disadvantaged communities”.

1.3 Industry Training: Culture and Practices

Industry training in South Africa has particular history. . Under apartheid quality training and education at

the workplace was not only reserved for whites, but also predominantly reserved for the young. Once

people had obtained their initial post-school education and training (e.g. as artisans, professionals, gene-

ralists, etc.), they tended to remain within the same profession, or with the same employer without obtain-

ing further qualification levels (DoL, 2001a). Training by employers was likely to benefit only 20-30% of

the formal workforce and the quality and depth of this training was questionable. It concentrated mostly

on informal part-time, in-house training sessions, of a short duration and with a narrow skills focus. The

majority addressed basic skills (e.g. health & safety, computer skills, etc.), which served specific employer

needs (the immediate use at the workplace) and was not externally accredited (DoL, 2001b; Kraak, 2003).

Furthermore, South Africa did not have a tradition in which employers served as an established training

partner for formal work-based training (except in the case of the apprenticeship system, refer to Section

1.4 below). There were few incentives for companies to train and many individuals in this environment

held the view that skilled staff is more easily poached externally from others than internally trained

(Kraak, 2003). This reflected an enterprise training culture that was unconvinced of the merits of partici-

pating in continuous education and training.

1.4 Vocational Education and Training: History and National

Recognition

The only established workplace-based training (VET) system, which existed, was the apprenticeship sys-

tem of the 1920s (Apprenticeship Act of 1922). At the time it was a racially defined training system re-

served purely for the white segment of the South African population. Traditionally, the apprenticeship

system was South Africa‟s major pathway for intermediate skills development, and thus the qualification

of white artisans for some major industry sectors. Artisan apprentices were fully sponsored by an em-

ployer during their apprenticeship, which had an average duration of 3-5 years. They studied in part-time

block release format at a technical college and were provided practical work experience under the supervi-

sion of a senior artisan at their workplace.

The historically „white‟ system only became inclusive and accessible to the African population with the

reforms recommended by three state commissions in the late 1970s – the Wiehahn, Riekert and De Lange

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Commission (1977-1981). With the introduction of the Manpower Training Act in 1981 and the years

following the official de-racialisation, the racial distribution in the system became more and more in-

verted. Ninety percent of the students in technical colleges were now black and studied full-time, mostly

without being able to obtain any employer participation (Kraak, 2007). As a result the system began to

experience a substantial and continuous decline, the first indication of which was a significant drop in the

number of qualified artisans (from 13500 in 1985 to 5145 in 1999). In addition there was a significant de-

crease in the number of newly indentured apprentices (from 10758 in 1991 to a low of 3129 in 1999, sig-

nifying - 70.91%). Further, the system achieved very low placement rates after training, which was esti-

mated between an average of 15% by the DoL (2001b, p. 32) and 33.6% by FET college graduates in

2001 (Kraak, 2003). Kraak (2003, pp. 680-681) reported that 69.7% of African and 24.2% of white quali-

fied artisans remained unemployed. This clearly indicated that even though the legal barriers for inclusion

had been withdrawn, the system still seemed premised on the continued exclusion of Africans to equal

education and training opportunities.

Furthermore, as the notion of VET in South Africa historically has only been linked only to a narrow

range of sectors and low skills levels of employment, it has been perceived by many as being of a „lower

status‟ than that of general education (Carton & King, 2004; Kruss 2004). The result of this national

prejudice was reflected in low enrolment rates for FET college-based education and significantly higher

enrolment rates for technicons and universities, which created an „inverted triangle‟ institutional landscape

(i.e. the largest intake of post-school enrolments should be in the FET college sector) , unique to South

Africa (Kraak, 2003).

1.5 Variety of National Languages

Another major challenge in the context of learning and training was (and still remains) the large variety of

languages. With eleven officially recognised languages, i.e. the two official languages of the former apart-

heid era (Afrikaans and English) and the nine major African languages of the country (Sepedi, Sesotho,

Setswana, siSwati, Tshivenda, Xitsonga, isiNdebele, isiXhoza and isiZulu), South Africa faces the chal-

lenge of an environment, in which according to 1996 Census data only a minority of the population indi-

cated English as their home language. According to the 1996 Census Zulu (22.9%) and Xhosa (17.9%)

were the most widely spoken home languages, followed by Afrikaans (14.6%) and English with only 8.6%

(Webb, 2002, p. 7). However, according to Webb (2002) English is the major language in terms of power

and prestige, subsequently followed by Afrikaans and is the language of the South African workplace.


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The Uniqueness of the

South Africa Approach

Typically, national qualifications frameworks

elsewhere have originated in the skills devel-

opment or vocational education and training

domain. Most have remained there. It is com-

mon for other NQFs to maintain separate

standards setting processes for industry sec-

tors, schools and higher education, with some

inter-penetration by vocational standards par-

ticularly at the further and higher education

levels, which is defined as the partial model

(Departments of Education & Labour, 2007;

Allais, 2003).

In South Africa, the comprehensive approach

was unique in the world when it was conceived

and remains unique in its architecture. The

only other country which envisaged a similar

comprehensive approach has been New Zea-

land, but failed due to strong resistance from

the Higher Education Sector (Allais, 2003).

2 System Reform: The Reform Process and its 3 Major Stages

Given these challenges the South African government has recognised skills development and providing

an “integrative framework” for all learning achievements regardless of their origin (i.e. formal/informal

learning) as being the most vital element of emancipation from poverty, and thus a key tool to deliver on

both growth and social inclusion (DoL, 2007, McGrath & Akoojee, 2007, Ndebele, 2008).

Embarking on a universal (legislative, structural and organisational) reform process of skills development

policies the South African government has been aiming to transform the cultural and institutional land-

scape for skills development and vocational education and training on all levels.

This transformation process has evolved over a period of more than a decade, which can be summarised

broadly in three major stages (Badroodien & McGrath, 2005):

Stage 1 (1994-1996): Evolution of ideas and the

„integrative‟ NQF Vision

Stage 2 (1997-1999): Turning vision into legisla-

tion

Stage 3 (2000-today): Implementing the overall

vision and review

2.1 Stage 1: The Integrative NQF Vi-

sion and its Main Objectives

The reform initiatives of the early and mid-1990s were

driven by the determination to move radically and ulti-

mately away from the disintegrative legacy of apartheid

(i.e. job reservation and retrogressive and discriminatory

training practices), which had been imposed on all forms

of education and training. In its first stage this process

was dominated by non-racial trade union movements,

particularly NUMSA (National Union of Metal Workers)

and the Congress of South African Trade Unions

(COSATU), later on by elements in the business com-

munity and by the education constituency. Strongly in-

fluenced by similar strategic debates to be found in the

Anglo-Saxon NQF community, i.e. England and Scot-

land (NVQ debate) and New Zealand and Australia (SVQ debate) (Heitmann, 2000; Carton & King,

2004), an initial vision towards an integrated South African National Qualifications Framework (NQF)

was first formed within this community and subsequently elaborated on.

The envisaged NQF aimed to create equal ladders of opportunity and progression as well as open and

transparent learning and career pathways for all South Africans. Closing skills gaps, improving equity, and

achieving greater labour market efficiency and higher levels of productivity were assumed to be outcomes

of a single, integrated national qualifications framework with a strong focus on equal recognition of

schooling, higher education and skills development. This comprehensive approach set the main NQF

objectives (compare Table 1).

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Table 1 The main NQF Objectives

The Main NQF Objectives

Create an integrated national framework for learning achievements of different learning sites;

Facilitate access to, and mobility and progression within education, training and career paths;

Enhance the quality of education, training and skills development;

Accelerate the redress of past unfair discrimination in education, training and employment opportunities; and the-

reby

Contribute to the full personal development of each learner and the social and economic development of the nation at

large.

The South African NQF concept was designed to embrace a universal system of outcomes-based edu-

cation and training (OBET), quality assured unit standards and qualifications embracing all education,

training and skills development at all levels (8-level NQF), both in and for the workplace and in learning

institutions by recognising prior learning (RPL) (Heitmann & Mummenthey, 2009). Refer to Table 1

for a detailed description of each term.

Table 2 Key Terms of the NQF System

Key Terms of the NQF System

Outcomes Based Education (OBET)

Outcomes-based education is a concept, that focuses on “… what people know and can do as a result of

learning rather than on the means used in order to achieve those results” (Hallendorff, 2002, p. 3)

Recognition of Prior Learning (RPL)

Recognition of prior learning (RPL) is the process of recognising people‟s existing skills and know-

ledge, regardless of where or how they learned and acquired them. It can be used at all levels in the

NQF (COSATU, 2000). The various levels in the ladder relate to the increasing complexity of skills re-

quired to achieve the defined „exit level outcomes‟ of the registered qualifications.

Unit Standards

Unit standards are the smallest, independent part of a qualification, which when combined together

lead to a recognised qualification. Each unit standard is then assigned a certain credit value based on

the average (national) learning time one needs to acquire the outcome. The basic formula used to

calculate the credit value is: 10 notional hours equals 1 credit (Cosatu, 2000).


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Table 3 The 8-Level National Qualifications Framework

The 8-Level National Qualifications Framework

Band NQF Level Type of Qualification

HIGHER EDUCATION

AND TRAINING (HET)

8

Post-doctoral research de-

grees

Doctorates

Masters degrees

7 Professional Qualifications

Honours degrees

6 National first degrees

Higher diplomas

5 National diplomas

National certificates

FURTHER EDUCATION

AND TRAINING (FET)

4 National Certificates (Grade

12 ”Matric” in schools, NCV

in FET Colleges, other certif-

icates private and public

training providers)

3

2

GENERAL EDUCATION

AND TRAINING (GET) 1

National certificates (Grade 9

, ABET Level 4)

Adapted from GTZ & DoL, 2007; ILO, 2004; SAQA, 2008

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2.2 Stage 2: Turning Vision into Legislation

As a consequence of the universal reform process a number of new legislations related to skills develop-

ment have been passed in recent years, most importantly in the years between 1995 and 1999.

Table 4 Legislation related to Skills Development

Legislation Related to Skills Development

South African Qualifications Authority (SAQA) Act No. 58, 1995: To ensure quality in edu-

cation and training;

Skills Development Act No 97, 1998: To ensure training delivery;

Skills Development Levies Act No 9, 1999 and Income Tax Act No. 58, 1962: To finance

training and make training affordable;

Further Education and Training Act No 98, 1998: To transform public and private training

institutions for high quality delivery;

Employment Equity Act No 55, 1998 and Broad-Based Black Economic Empowerment

Act No. 53, 2003: To ensure equitable training;

Basic Conditions of Employment Act No 75, 1997: To formalise and regulate training;

Labour Relations Act No. 66, 1995: To ensure a transparent training process;

Added to these major acts are various additional regulations, amendments and notices, which for the pur-

pose of this reader will not be outlined any further.

2.3 Stage 3: Implementation and Review of the System

Since late 1999, subsequent to the enactment of the main legislations, the focus shifted to the challenge of

implementation.

2.3.1 Key Implementation Agencies and Structures

Key concern of this era was the actual “institutionalisation” and efficient and effective organisation of the

key agencies for implementing the new skills development legislation. These institutions, which had for-

mally obtained their mandate and authority by the legal framework, were the following:

Table 5 Key implementation agencies of Skills Development

Key Implementation Agencies of Skills Development

Department of Labour (DoL) and Department of Education (DoE)1: The main overseeing

and driving departments in terms of training and education in South Africa. The DoL being re-

sponsible for training and all labour market-related initiatives, the DoE for the formal education

1 The current political reforms have allocated the responsibility for all Skills Development and Training towards the newly created Department of Higher Education and Training. In future this department will therefore also assume responsibility for the FET college sector. However, the detail of this transfer is still to be formulated and imple-mented.


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sector, and thus the Further Education and Training (FET) Colleges.

South African Qualifications Authority (SAQA): The central „quality authority‟ to all educa-

tion and training in South Africa. Established by the South African Qualifications Authority Act

No. 58 of 1995 (RSA, 1995) its primary mandate is to assure high quality education and training

by overseeing the successful development and implementation of the National Qualification Framework. Due to

its dual role as a quality assurance body for education and training it is accountable to both the

Department of Labour and the Department of Education.

Education and Training Quality Assurance (ETQA): The mandate to ensure the quality of learn-

ing, has been delegated to Education and Training Quality Assurance (ETQA) bodies, which are approved

and accredited by the SAQA for a particular sector (i.e. economic sector, educational institutions

and bodies, social sector). For all economic sectors, and thus for the quality assurance in learner-

ships each Sector Education and Training Authority (SETA) has been approved the status of an

ETQA.

Sector Education and Training Authority (SETAs): Governed by the guidelines of the Skills

Development Act and the Skills Development Levies Act No. 9 of 1999 (RSA, 1999) the Sector

Education and Training Authorities (SETAs) are the key implementation agencies for establish-

ing and ensuring quality in workplace-based training and learning. Overall 23 SETAs have been

constituted, which are responsible for overseeing the training and skills development in a specific national econom-

ic sector, and thus also develop a Sector Skills Plan (SSP). The SSPs main purpose is the outlining of the specific

strengths and challenges of a sector related to employment and skills development.

NSA: A stakeholder body which advises the DoL on the National Skills Development policy and

strategy and its implementation, allocations from the National Skills Fund (NSF) and approval of

SETAs Sector Skills Plans.

National Skills Fund: The financing of all training is based on a levy-based scheme, regulated in

the Skills Development Levies Act (RSA, 1999). The leviable amount is 1% of the total employee

payroll. The levy collected allocates 20% to the National Skills Fund (NSF) under the financial supervision of

the National Skills Authority (NSA) and pays the remaining 80% to all existing SETAs.

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The following graph demonstrates the established key structures and displays the complex interactions

between them:

Figure 1 Stakeholder Framework of the Skills Development System

Adapted from Mummenthey, 2008

2.3.2 Financing of the Skills Development System

The levy system: The financing of the skills development system is based on so called levy-based

scheme, regulated in the Skills Development Levies Act (RSA, 1999).

Every employer, who is not generally exempt by the Act (i.e. public service employer, religious or charita-

ble institutions, national or provincial public entity), and whose total employee payroll as calculated by

PAYE (Pay as You Earn) is to exceed R 500 000 per year, has to pay a skills levy of 1% of the total em-

ployee payroll. It is also worth noting, that compared to international standards this levy is considered

relatively low, as international investment in training usually ranges between four and seven percent (The-

jane, 2007, Blaine, 2007).

The levy is collected through the South African Revenue Service (SARS). 20% of the levy is allocated to

the National Skills Fund (NSF) and the remaining 80% is paid to all existing SETA‟s. The SETA‟s

demarcate 10% to its administration and the rest of the amount to the payout of grant payments to em-

ployerswho have provided training.

Two mandatory grants are available:

Planning grant: 50% of the levy, paid out on submission and approval of a so called Workplace-

Skills Plan (WSP), which identifies the training planned by an employer for each year.

Implementation grant: A percentage of the levy that is paid out upon receipt and approval of

an annual training implementation report (ATR) from the employer.


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In addition, certain discretionary grants for pursuing relevant skills development projects can be ob-

tained by employers/training providers under specific conditions.

All grants are subject to the availability of funds from the SETAs and an efficient payout process: These

aspects have been difficult in the case of the some SETAs as financial mismanagement in the early years

after inception (e.g. double payments, fraudulent claims by unscrupulous training consultants/providers,

etc.) have led to strained finances, and thus delayed/non-payouts. Further the process of submitting

Workplace Skills Plans (WSP) and Annual Training Reports (ATR) has been commonly criticized by em-

ployers for being “too tedious and highly bureaucratic”.

Tax deductions: As an additional incentive for employers Section (12H) of the Income Tax Act No. 58,

1962 allows employers to deduct specified amounts of their payable income tax when they are conducting

accredited training. The tax incentive increases in cases where the learner was previously unemployed or

has a disability (FASSET, 2007).

2.3.3 Skills Development Strategies and Initiatives

Various national strategies and initiatives were further initiated to drive and promote skills development

in its actual implementation. These are mainly the following:

Table 6 National Skills Development Strategies and Initiatives

National Skills Development Strategies and Initiatives

Human Resource Development (HRD) Strategy (2001): Provides the overarching frame-

work for the governments approach towards skills development and its overall vision “… a na-

tion at work for a better life for all.”

National Skills Development Strategy II (NSDS II) (2005-2010): The successor strategy to

the government‟s first five-year NSDS (2001-2005). It is introduced and monitored by the De-

partment of Labour (DoL) under advice from the National Skills Authority (NSA). Its main pur-

pose is to set out national priority skills areas and the primary objectives for skills development.

Accelerated and Shared Growth Initiative for South Africa (AsgiSA) (2006): It was launched

to promote the governments mandate from 2004. This mandate is first to halve unemployment

(from 30% to 15%) and poverty (from one-third to one-sixth of the population) by 2014 and

second to accelerate employment equity.

Joint Initiative on Priority Skills Acquisition (JIPSA) (2006): The objectives and constraints

envisaged in terms of skills by the AsgiSA gave rise to the Joint Initiative on Priority Skills Acqui-

sition (JIPSA) task team in March 2006. Its primary mandate is to lead and support the imple-

mentation of AsgiSA and its objectives through the alignment of education and training with

identified skills priorities.

2.3.4 Review of the System

Beginning in July 2001 the Ministers of Labour and Education jointly appointed a Study Team to investi-

gate how the implementation of the National Qualifications Framework was progressing. The review

process noted a number of challenges in the implementation of the NQF among them most prominently

//19

the concern that the “one size fits all approach” and accordingly a single integrated framework did not

adequately accommodate the need that learning in different contexts required different qualification types

and therefore quality assurance models. Faced by the tensions between the Departments of Education

and Labour, the report proposed that „discipline-based‟ and „occupational context-based‟ learning be rec-

ognised as separate learning modes. It became clear that the different culture and identity of stakeholders

in schooling, higher education and workplace-based learning were not explicitly “conducive” to the idea

of having a fully integrated National Qualifications Framework in place (Bird & Heitmann, 2009; Heit-

mann & Mummenthey, 2009). Further challenges noted were:

Table 7 Challenges identified by the NQF Review

Challenges Identified by the NQF Review

The proliferation of NQF bodies and structures especially for standards generation and quali-

ty assurance;

Time-consuming and costly processes for the generation and registration of qualifications;

Misplaced application of the principle of stakeholder involvement;

Lack of synergy and understanding between government policy;

Duplication of qualifications; generation and registration of unused qualifications; regis-

tered qualifications were not up to industry-standards

Lack of recognition of the diversity in approaches to skills development (ONE SIZE

FITS ALL); no common language.

DoE & DoL, 2007

In 2003 the joint response of the Department of Education and Labour acknowledged the observed

weaknesses and proposed a number of changes, among them the establishment of new quality assurance

councils beneath SAQA (DoE & DoL, 2003).

Following rather time-consuming political discussions on the way forward, the Ministers of Education

and Labour finally issued a joint policy statement in October 2007 in which the Ministers agreed to make

provision for the establishment of three Quality Councils (QCs) to manage three NQF sub-frameworks,

one for Higher Education Qualifications (HEQC), one for General and Further Education Qualifications

(UMALUSI) and one for Occupational Qualifications (QCTO). These sub-frameworks fall within a single

“Meta” National Qualifications Framework (NQF) and are managed in collaboration with the South

African Qualifications Authority (SAQA) (Heitmann & Mummenthey, 2009; DoE & DoL, 2007). This

has laid the foundations to the current legislative reforms (refer to Section 4).


//20

3 The Education System

The Education System in South Africa is categorised into three broad qualification bands:

Table 8 The three main qualifications bands

The Three Main Qualifications Bands

General Education and Training (GET)

Further Education and Training (FET)

Higher Education and Training (HET)

School life spans 13 years or grades, from grade 0, also known as grade R or reception year, through to

grade 12 or “matric” - the year of matriculation.

General education and training (GET) runs from grade 0 to grade 9. Education is compulsory for

all South Africans from age 7 (grade 1) to age 15, or the completion of grade 9. General Education also

includes Adults Basic Education and Training (ABET).

The FET band consists of grades 10 to 12 in schools and all education and training from the Na-

tional Qualification Framework (NQF) levels 2 to 4 (and 5) provided at Further Education and

Training Institutions. i.e. public and private FET Colleges.

Higher Education and Training (HET or tertiary education) includes education for undergraduate and

postgraduate degrees, certificates and diplomas, up to the level of a doctoral degree. They correspond to

the NQF levels 5 to 8 (in future 6 to 10) and are provided by the Higher Education institutions, i.e.

Universities of Technology, Universities and private Higher Education Training Institutions.

3.1 Key Challenges in the Three Qualification Bands

Research has established that in primary schooling there is a serious problem with the quality of literacy

and numeracy in the foundation phase (Grade 1-3), laying the basis for all future learning (Shindler, 2007,

Kruss 2004). Hence, a majority of grade 9 school leavers do not have the necessary foundation particular-

ly in English and Maths to successfully continue with further education and training e.g. at FET colleges.

A second problem is related to poor retention and throughput rates in the secondary schooling system.

These are racially imbalanced. High rates of Coloured and African youth drop out of school at Grade

10/11, without completing Grade 12. Slightly less than half of all those, who enrol in Grade 1 continue to

Grade 12 and pass their matric – which is a key entry requirement to further learning. Furthermore, there

are few matric exemptions making the pool of those eligible for higher education very small.

Given the historically inherited low perception of vocational education and training (i.e. a second rate,

low quality education preparing for inferior working positions) a key danger for South Africa exists at

intermediate skills level. Brown, Green and Lauder (2001) describe this danger as “developing highly

skilled elites at the one end, and low skills employment opportunities at the other end, with a „hollowing

out of the middle‟. In South African in general, there is a potentially serious situation at the intermediate

skills level, that is, post General Education and Training Certificate (GETC) schooling, but pre-degree. A

huge number of sectors, particularly in the manufacturing and services sector rely on intermediate skills

(the key qualifications with exchange value at NQF Levels 3, 4 and 5), but the supply side output from

FET colleges and private accredited training providers is still insufficient and in many cases inadequate (in

//21

terms of quality) to fulfil current let alone future economic and labour market needs (Kruss, 2004, Kraak,

2007).

Higher education traditionally has three functions in South Africa – teaching, research and community

outreach. As across all other educational institutions there are huge disparities between the teaching ca-

pacity of Universities and Universities of Technology across provinces. While some (mostly previously

advantaged, former “white”) institutions are well placed in comparison to global benchmarks other insti-

tutions still need to improve in their deliverance of a high skilled workforce that can meet international

standards.

In terms of research and community outreach both the National Research and Development and the

Science and Technology policy stresses the need to strengthen a national system of research and innova-

tion, in order to move up the global value chain. South Africa faces many challenges to develop its high

skill Science and Technology capacity to compete globally and harness the promise of technology for

human development. Universities and Universities of Technology still have largely untapped research and

innovation potential to contribute to regional economic development. National technology achievement

problems can be summed up in the notion of an „innovation chasm‟ between local industry, local research

and international technology sources (Kruss, 2004).

3.2 Intermediate Skilling: The FET College Sector

As to the statement of Kruss (2004), it is evident that South Africa is facing a considerable skills gap at

the intermediate level nationally, in terms of the scale, focus and quality of both public and private provi-

sion. The continuous validity of this statement in the current economic environment has been confirmed

by the JIPSA initiative (refer to section 2.3.3), which has mainly concentrated on strengthening the provi-

sion and supply mechanisms of artisan and technical skills located at intermediate level.

3.2.1 The FET Sector in General

One of the key players expected to take up the role of providing intermediate skilling within the South

African skills development arena is the public FET (Further Education and Training) College Sec-

tor. Consequently, one of the first reforms the first democratic government of South Africa embarked on

was restructuring the FET college sector landscape. This was meant to create a cohesive structure and

address the challenges inherent in a stratified system (Fester, 2006). The previous politics of race had led

to a duplication of facilities, unevenness of resourcing (i.e. financial and staff capacity) between formerly

advantaged and formerly disadvantaged colleges, and institutions located far away from any economic

activity (i.e. in poorly resourced rural neighborhoods). Furthermore, many institutions lacked in training

infrastructure, as they were undersupplied with the facilities essential for providing active practice-

orientated learning, e.g. computer laboratories, workshops, libraries, etc. (Akoojee, McGrath & Visser,

2007).

In 1998 the Further Education and Training Act No. 98, 1998 formally merged 152 former technical

colleges, colleges of education and training centers into 50 multi-site FET institutions.

The re-organisation process starting from 2002 intended to lay a solid foundation from which education

and training in this sector could respond to the imperatives of the HRD strategy (refer to 2.3.3) and be-

come more fit-for purpose in terms of labour market demands.

The merger process resulted in previously disadvantaged colleges being integrated with previously advan-

taged colleges. Consequently, despite being mainly structural in its nature it did involve fundamental ele-

ments of complex systemic change such as comprehensiveness, coherence and coordination, which posed


//22

a tremendous challenge to the newly defined institutions. This was placed on top of a new nine-point

vision for the development of FET colleges, which included, e.g.:

Table 9 Vision for the development of the FET Colleges Sector

Vision for the Development of the FET Colleges Sector

Large, multi-site institutions;

A new quality assurance framework;

Increased focus on open and distance learning;

Greater focus on access for students with special needs;

Better articulation and collaboration with higher education;

Commitment to improved student support services;

Increased responsiveness through innovative partnerships with government and the private

sector.

This vision was to be supported by a new funding regime since public expenditure on the FET college

sector has traditionally been low as compared to expenditure on basic/general education (i.e. only 2% on

average from the entire education budget is provincially allocated to FET (Fisher et al, 2003).

Other developments and efforts to boost the FET College sector include the governmental Recapitali-

sation Project starting 2006 and supporting infrastructure, equipment and human resources of all 50 col-

leges (nearly R2-billion from 2005).

The introduction of comprehensive and modern vocational and training programmes, the “National

Certificate Vocational” (NCV) on NQF level 2 to 4 has been another step. Those qualifications were

designed to provide both the theory and practical experience in a particular vocational field. To facilitate

the access to this qualification, the DoE has set aside R600 million over three years for bursaries.

The transfer of human resource management related tasks from the Department of Education to the

FET Colleges has also been an important change of the past few years. It was meant as another move to

become more autonomous and responsive training providers. However, it is still far from realizing the

original idea of fully transferring the employer function towards the colleges, respective their councils.

FET Governance

Until 2009, the FET colleges were underlying the auspices of the DoE and were governed by the FET

Chief Directorates of their respective Provincial Departments of Education. With the current political

changes, the overseeing responsibility will move towards the Department of Higher Education and Train-

ing (refer to Foreword).

Besides, each college operates under a single governing council appointed to oversee effective and ac-

countable management across and within the various FET college campuses and sites.

//23

Role and function of FET Colleges

Since their foundation, the FET Colleges have been in an ongoing process of change and transformation

and they have been exposed to multiple demands and challenges. Despite the developments of the recent

years and some very good performing institutions, the reputation of the sector as a whole is still poor and

role and profile have to be shaped urgently.

Programmes offered at FET Colleges

The programmes offered at FET colleges in South Africa vary considerably depending on management,

size, location and history of the institution. They range from the old, phasing-out “N-courses” via the

new vocational NCV programmes to occupational programmes like learnerships, skills programmes and

short courses.

Table 10 FET Programme Offer

FET Programme Offer

Vocational Pathway

(knowledge-based)

Occupational Pathway

(work-based)

National Certificate Vocational (NCV)

programmes

Learnerships/Apprenticeships (refer to

Section 3.3)

Skills programmes

Short courses

College “core business” since 2007, fi-

nanced via DoE

NQF Level 2-4

1-3 years (National certificate on each lev-

el)

13 programmes in various vocational fields

Age group 15-19 and older

Requirement: grade 9 or relevant adult ba-

sic education and training (ABET)

Aims at the provision of a basis for lifelong learning, fun-

damental subjects and vocational subjects, theory and prac-

tical element

Financed through Skills Levy/National

Skills Fund via SETAs /DoL

Mostly SETA accreditation required (in fu-

ture QCTO)

NQF level 2 to 4 and 5

Full qualification or modular (12-18

months or shorter) in various occupational

fields.

All age groups

Cooperation with private companies and

public service sector.

Focus on workplace experience

Key challenges


//24

As outlined above, the FET colleges are still in the process of transformation towards becoming flexible

and responsive, high quality training providers. In an environment often beset by a lack of resources, ca-

pacity and leadership, most colleges are still faced with numerous challenges.

Table 11 Key Challenges in the FET College Sector

Key Challenges in the FET College Sector

Leadership and management capacity

Staffing (quality and quantity, inappropriate lecturer qualification and high turnover)

Teaching and learning methods ( i.e. move from “chalk and talk” to “active learning”)

Insufficient infrastructure and equipment

Limited financial resources and viability/insufficient financial management

Inflexible modes of training delivery (lack of practical/workplace-based experience)

Limited curriculum diversification and responsiveness to labour market needs

(often solely focused on provision of DoE programmes)

Limited partnerships and linkages with the local community and industry

Unclear governance responsibilities

Guiding policies and systems (DoE, DoL) not consistent

There are significant differences between colleges based on historical racialised patterns. Depending on

the previous outlay as well as their location (rural/urban, closeness to economic centre), some colleges

struggle more than others and are extremely under-resourced in almost all aspects of training delivery (i.e.

staff capacity, infrastructure, finances, management and communication, learner enrolment rates). One of

the regions, strongly affected by numerous challenges, is the Eastern Cape Province (Akojee et al., 2007).

3.2.2 The DED and the FET College Sector

The DED has been cooperating with FET Colleges in the Eastern Cape since 2006/2007. Currently

four cooperation agreements with FET Colleges exist. DED‟s work is bound by government-to-

government agreements defining the broad areas of cooperation. At the same time, it is based on demand

of partner organisations in a specific area. In South Africa, DED‟s interventions in the sector of skills

development and training, are linked to the South African-German “Focal Area Strategy Skills Develop-

ment & Labour Market” and to the respective development cooperation programme, the “Employment

and Skills Development Service (ESDS)”, coordinated by GTZ and the Department of Labour (DoL).

Main objective of the intervention

In line with both the requests of the FET Colleges and the above mentioned framework, the primary ob-

jective of the DED intervention is to assist the FET colleges to better meet the requirements of the

labour market and of communities, as well as to provide high quality and practical-oriented edu-

cation and training. Thus, DED contributes to the implementation of the reforms in the FET sector,

specifically to the capacity development on management and operational level and to the improvement of

training programmes in selected fields. In order to join hands and to concentrate efforts in supporting

FET Colleges, DED is also closely cooperating with other stakeholders in the Eastern Cape, above all,

with the Eastern Cape Department of Education/the Department of Higher Education and Training.

//25

Secondment of DED advisors

The long-term secondment of technical advisors to the partner organisations is DED‟s main instrument

of support. In the context of the agreed development interventions, complementary services are offered,

such as advice in planning and monitoring, knowledge management or crosscutting issues, e.g.

HIV&AIDS mainstreaming.

Performance areas

The DED supports the capacity development of the FET Colleges in the following areas, which directly

link to some of the key challenges previously identified for the sector.

Table 12 DED interventions as linked to Challenges in the FET Sector

DED Interventions as Linked to Challenges in the FET Sector

DED Intervention Challenges in the FET College Sec-

tor

FET College management (Quality Management,

Human Resource Management, etc.)

Leadership and Management capacity

Staffing (quantity and quality)

Vocational and occupational training pro-

grammes (development of curricula and teaching

materials, upgrading of training workshops, training

and mentoring of lecturers, etc.)

Inflexible modes of training delivery

(lack of practical/workplace-based expe-

rience)

Limited curriculum diversification

and responsiveness to labour market

needs (often solely focused on provision

of DoE programmes)

Teaching and learning methods

Strengthening of partnerships and linkages be-

tween college and the labour market (work-

placement of students, etc.)

Limited partnerships and linkages

with the local community and industry

Promotion of networking and “collective learn-

ing” (Study Tours, joint introduction of QMS, etc.)

Leadership and Management capacity

Staffing (quantity and quality)


//26

The current interventions for each assisted college are as follows:

Table 13 DED interventions in the Eastern Cape

DED Interventions in the Eastern Cape

IKHALA FET College, Queenstown:

o Capacity development for engineering campus

o Development and introduction of Quality Management System

Buffalo City FET College, East London:


o Capacity development on planning and monitoring

King Hintsa FET College, Butterworth:


o Development of Human Resource Management System

Lovedale FET College, King Williams Town:

o Capacity development for engineering campus

o Support to agricultural programmes

3.2.3 Project Description1: Development of a Human Resource Management

System

Beginning of 2009 DED launched a new development intervention with King Hintsa Public FET College

in Butterworth as partner organisation. Focus of the development intervention is to consult King Hintsa

Public FET College in all Human Resources related topics, to support the improvement of the Human

Resources work and processes and to upskill the Human Resources Team.

As major framework in this consulting process, a comprehensive Human Resources Strategy Plan was

developed. This Human Resources Strategy Plan covers all HR aspects from an overall HR vision to de-

tailed HR process descriptions with owners and clients. The development and the progress of the Human

Resources Strategy Plan is also closely linked to the implementation and activities of the QMS project

work – the second focus in the development intervention at King Hintsa Public FET College. The pro-

gress of the development intervention is guided and monitored by a strategic plan and a monitoring ma-

trix on the operational level.

Furthermore, the college identified the need for a detailed skills demand analysis to be conducted with all

lecturers in 2009. Khanyiswa Jele – Assistant Director Human Resources – points out “The skills demand

analysis was focussing on upskilling and training needs and activities for the lecturers without a link to

performance management. Based on the outcome of the skills demand analysis, a training plan for the

lecturers was developed last year.” Beginning of 2010 the skills demand analysis will be conducted again

in order to update the training plan for 2010.

The first human resources process updated in 2009 was the exit management, in order to secure a proper

administration for employees, when leaving the college and gathering information about resignation rea-

sons. In 2010 the onboarding process will be focussed on including an induction programme as well as a

review of important employee retention strategies.

//27

3.2.4 Project Description 2: Quality Management – a Developmental Approach

As key players within the South African skills arena the public FET Colleges had to undergo massive re-

forms to respond to the changing sector. The FET Act No 98.1998 officially merged 152 former techni-

cal colleges and training centres into 50 multi-site-institutions.

Though formally this process should be concluded by now, the aftermath of this massive institutional

earthquake, where former racially divided colleges were integrated can still be felt. Further reforms in the

skills sector followed and the current drive to drastically increase the number of learners in the FET sec-

tor will create additional challenges for the institutions.

Organizational development aiming at the “Learning Organisation” has five major features: systems

thinking, personal mastery, mental models, shared vision and team learning (Peter M. Senge: The Fifth

Discipline: The Art and Practice of the Learning Organisation). Beside others, those principles are also

fundamental in the Quality Management System implementation tool, designed and successfully imple-

mented in other provinces by GTZ. That makes it the ideal instrument for FET colleges in the Eastern

Cape to achieve the implementation of a holistic QMS and to support colleges in their own endeavour

towards a learning organisation.

German Development Cooperation together with the partnering colleges use an innovative approach

whereby the actual development is done by the people involved. Whilst an external facilitator from GTZ

facilitates the development, internal support with a focus on vital capacity building even beyond the de-

velopment phase is provided by advisors from DED, who closely work with the newly appointed college

quality managers.

Table 14 Innovative characteristics of the QMS model

Innovative Characteristics of the QMS Model

1. Holistic

Covering all processes of an organisation

Management, core and support processes

QMS as a tool for organisational development

2. Sustainable

Management and staff develop the QMS, supported by German Development Cooperation

Active participation of management and staff

Capacity building throughout the development and implementation phase

3. Proven industry standards applied to service delivery in education and training

Focus on process thinking

Emphasis on failure prevention

Continuous improvement embedded in processes

Conformance with ISO 9000 requirements


//28

The Quality Management programme in the Eastern Cape started with three colleges (King Hintsa, Ikhala

and Buffalo City FET Colleges) whose quality managers form one QMS core group. In addition, to the

rendered outside support this also encourages stronger networking and interaction.

This college cluster is now more than halfway through the 18 months development phase and the launch

of the system is scheduled for October 2010. During the subsequent implementation phase an intensive

training programme for all staff will be conducted. At the same time tools and measures for the continual

improvement will be developed and implemented. Whilst support from GTZ ends after the development

phase, DED will continue support to the end of implementation, scheduled for end of 2011.

Though the programme is still at an early stage, the first encouraging results triggered more Eastern Cape

colleges to come on board and a second cluster will be formed in 2010 to follow the same Quality Man-

agement approach.

3.3 Intermediate Skilling: The Learnership System

The Skills Development Act of 1998 and the Skills Development Levies Act of 1999 provide the legal

underpinnings for what has been promoted as the “cornerstone”, a “key means” and a “creative vehicle”

to providing intermediate skilling, while thereby addressing unemployment and the scarce skills shortage

in South Africa (Davies & Farquharson, 2004; Heitmann, 2003, Vorwerk, 2006) - The learnership system.

The learnership system, which is effectively in place since 2000, can be considered the democratic succes-

sor model of the previous apprenticeship system (refer to Section 1.4). Given the racial stigma and histor-

ical decline of the apprenticeship system prior to 1994, the government attempted to replace the previous

system by a newly designed, work-based learning system, which was free of the “history” and the system-

related criticisms (e.g. time-based model; low quality of workplace training, only catering for certain age

groups and industries, etc.) that were inherited with the apprenticeship system. In order to ensure work-

related training, the system is defined as a structured dual-learning programme, which combines theoreti-

cal learning at a formal training institution (i.e. FET college or Private Accredited Training Provider) with

practical on-the-job-training at the workplace (similar to the German “Berufsausbildungssystem”). It is legally

defined that the practical, on- the-job learning must be allocated a min. of 30% to a maximum of 70% of

the learning time.

Learnership agreement and SETA registration

Central to conducting a learnership are two components, i.e. first the signing of a learnership agreement

between the three immediate parties to a learnership (i.e. Learner, Employer and Training Provider) and

second its registration with the respective SETA.

The learnership agreement is a legally binding agreement which stipulates the obligations (and concomitantly rights)

on all three parties to the learnership agreement (similar to the German “Ausbildungsvertrag”).

The basic responsibilities according to the learnership agreement are:

//29

Table 15 Learnership responsibilities

Learnership Responsibilities

Learner duties:

o to work for the employer

o to attend any education/training programmes as specified

Employer duties:

o to employ the learner for the defined period

o to provide the learner with practical work experience

o to allow the learner to attend off-the-job education and training measures

Training provider duties:

o to provide the learner with the education and training as specified

o to support the learner in the learning process

Type of learners

The Skills Development Act differentiates between two types of learners as referred to in Section 18 of

the Act:

Section 18.1 (Employed learner): The learner is already employed prior to the agreement of the

learnership. The contract of employment is not affected by the agreement.

Section 18.2 (Unemployed learner): The learner is not employed prior to the agreement of the

learnership. A contract of employment between the learner and the employer has to be entered

into in addition to the learnership.

Given this definition the different types of learners are commonly referred to as 18.1 or 18.2 learners.

Contract of employment – learnership allowance

The learnership agreement is concluded in addition to a general contract of employment, depending on

whether the learner was employed or not employed by the workplace provider prior to the learnership

agreement. The contract of employment specifies the general working and employment conditions (i.e. working

hours, leave, determination of contract, etc.) and, most importantly the payment of the learner.

As is stipulated by the Basic Conditions of Employment Act No. 75 of 1997 (Sectoral Determination No.

5: Learnerships) the learner has to be paid an allowance. This learnership allowance is calculated as a

percentage of the „qualified wage‟ based on the credits the learner has already achieved. The „qualified

wage‟ is defined as the wage the employer would pay the learner on obtaining the qualification for which

the learnership is registered. The exact remuneration as well as its calculation (and the minimum allow-

ance) are regulated by the Act.

Continuation of apprenticeships

Despite the introduction of the new learnership system, the apprenticeship system has been continued

through Section 13 and Section 28 of the Manpower Training Act of 1981. Whilst the majority of the

regulations of the Act were repealed after the enactment of the new skills legislation, these sections have

been retained.

They still provide for two major apprenticeship pathways to obtain artisan status. Section 13 refers to the

traditionally young indentured learners under the age of 24, who acquire their qualification over


//30

the full time period and pass the central trade test as prescribed by the Act. Section 28 applies to

adult learners, who are not indentured as prescribed in Section 13, but who prove sufficient work

experience to the Registrar of Training to undergo the trade test for attaining an artisan qualifica-

tion. In the new system the NSA (National Skills Authority) has taken over the responsibility of the for-

mer National Training Board (NTB), the SETAs the responsibilities of the former Industry Training

Boards (ITB) and accredited training institutions provide the theoretical training (Kraak, 2007). Conse-

quently, the apprenticeship system still exists parallel to the learnership route as a recognised pathway for

qualifying as an artisan.

The continuation of apprenticeships has caused confusion in practice concerning the actual role of the

two systems. As stated by Erasmus et al. (2007), the learnership system should replace the apprenticeship

system. However, the current reality and wording of the NSDS targets for work-based training pro-

grammes, as well as the latest legislative revisions demonstrate a continued governmental support for the

apprenticeship route and that both routes are nationally acknowledged viable routes towards a recognised

qualification.

The following table reflects some of the key characteristics and main differences between the two sys-

tems:

Table 16 Apprenticeships versus learnerships

Apprenticeships versus Learnerships

(characteristic features and main differences)

Offering principle

Mainly supply-side driven: Offered

by providers, independent of an articu-

lated demand by the labour market,

traditionally limited to some industries.

Demand-led: Offered in response

to an articulated social or economic

need for all sectors.

Trained qualifications Traditionally blue collar trades at

intermediate skills levels (N1-N4)

All range of occupations in the

NQF, in which a work-based learn-

ing route is viable.

Primary quality as-

surance institution

Sector Education and Training Au-

thority (SETA)

Sector Education and Training Au-

thority (SETA)

Addressed

learner group

Indentured learners under the age

of 24

All types of learners (employed,

pre- and unemployed) with disparate

levels of prior learning. No age re-

strictions.

//31

Underlying training

principle

Time-based, Input-oriented

Time-based theoretical education

combined with practical, less struc-

tured on-the-job learning for ad hoc

occupational application. Focus on

input rather than an active participa-

tion of the learner in the learning

process.

Outcomes-based, Learner

oriented

Integration of theoretical education

and structured workplace training of

a specified nature and duration, in-

cluding generic skills with a clear

future orientation. The learner

stands at the centre of the process

and takes an active role in learning.

Training providers

(Theoretical; Practic-

al)

Technical colleges; one employer Public (FET) and Private Accredited

Provider(s); Employer/group of employers (large, medium, small)

Duration

3-5 years

for qualifying artisans depending on the specific trade.

Part-time studies in block release for-mat.

On average 12-18 months

Dependent on the final credit value of the NQF qualification.

Format according to needs, not spe-cified.

Assessment Final, central trade test

Multiple, individual assessments by accredited assessors. Evidence

provided in portfolio (i.e. Portfolio of Evidence).

Primary legislation

Manpower Training Act of 1981 Skills Development Act of 1998

Adapted from Mummenthey, 2008


//32

As is evident from the table, the application of learnerships as compared to apprenticeships has been ex-

tended to sectors, which are larger than industries and include a number of industries, previously not in-

corporated by the Industry Training Boards (ITBs). Moreover, they apply to a much wider range of occu-

pational and qualification levels. The new system addresses a larger number of potential learners, in terms

of employment status as well as age. It places the learner at the centre of a more active learning process

towards a specified outcome. Accordingly, the primary role of the learner in a learnership is that of a

learner and not that of an employee as often practised in apprenticeships.

The integration between learning and application happens deliberately and requires a collaborative plan-

ning between institutional and workplace provider. In addition, the shorter duration as well as the possi-

bility of engaging multiple providers in the workplace seeks to make learnerships more responsive to eco-

nomic needs, most notably to the needs of small, micro and medium enterprises (SMME).

The time-based apprenticeship learning system, which has been criticised as attributing artisan status by

the mere “effluxion of time”, has been replaced by an outcomes-based approach, which enables learners

to acquire credits and competence over time at their own learning pace. The original idea of the appren-

ticeship system for training artisans over a learning period of 3-5 years was transcribed into the learner-

ships system by placing a sequence of learnerships at consecutive levels (i.e. NQF 1-4) towards the quali-

fication of an artisan. However, in practise this principle has often been misunderstood, which has led to

under-qualified artisans with a learning period of only 12-18 months.

//33

4 The Current Legislative Reforms: What Will Change?

The current legislative reforms, which have been the result of a lengthy NQF review process since 2001

(refer to 2.3.4) is the replacement of a single, integrated NQF structure by a tracked and linked

NQF-structure. While this represents a major change in the architecture of the South African NQF, the

broad purpose of the original NQF remains, i.e. national recognition of learning achievements and the

quality assurance of education and training to enable access, progression and mobility for both learning

and career development.

4.1 Revised NQF Structure: 3 Sub-Frameworks and 10 NQF Levels

The new tracked and linked NQF is arranged around three sub-frameworks for which the NQF will

still provide the overarching “Meta”-framework.

The three sub-frameworks are one for Higher Education Qualifications (HEQC), one for General and

Further Education Qualifications (UMALUSI) and one for Occupational Qualifications (QCTO). Each

sub-framework is managed by one respective Quality Council. In Future SAQA‟s role will be more of an

overseeing coordinating body.

Table 17 The 3 Sub Frameworks and their Quality Councils

The 3 Sub Frameworks and their Quality Councils

Higher Education Higher Education Quality Council

(HEQC )

General and Further Education General and Further Education Quality Council (UMALUSI)

Occupational Qualifications Quality Council for Trades and Occupations (QCTO)

Annex 1 gives a detailed overview of the structure of the reformed NQF. It also displays the newly estab-

lished 10 levels of the NQF, which will replace the previous 8-level NQF. The revised ten-level frame-

work aims to provide particularly for the post-matric and pre-higher educational levels, where most of the

intermediate skills development is located. This structure has been legally enforced by the following Acts:

Table 18 Revised legislation

Revised Legislation

NQF Act 2008

General and Further Education and Training Quality Assurance Amendment Act 2008

Higher Education Act Amendment Act 2008

Skills Development Amendment Act 2008

Other laws and regulations will also be affected, which are currently work in progress and will be open to public comment as

soon as available.

The management of the quality of the Higher Education as well as the General and Further Education

and training sub-framework is based on already existing structures, i.e. HEQC and UMALUSI. The Qual-

ity Council for occupational qualifications however requires the establishment of a new structure.


//34

4.2 Quality Council for Trades and Occupations (QCTO)

Central to the legal reforms in the field of skills development is the introduction of the new Quality

Council for Trades and Occupations (QCTO), which is endorsed by the NQF Act 2008 and the Skills

Development Amendment Act 2008. This council will coordinate learning towards occupational compe-

tence within the broader national learning system.

The QCTO will manage and coordinate the development, provision and assessment of a demand-

driven NQF sub-framework for occupational qualifications that will provide learners with the occupa-

tional skills relevant in the workplace. The main functions of the body are:

Table 19 Main Functions of the QCTO

Main Functions of the QCTO

Overseeing and quality assuring the development of occupational qualifications and curricula as

required by the labour market (fit for purpose)

Accrediting training providers and external assessment centers in the field of occupational

qualifications

Awarding National Occupational Awards and National Occupational Skills Certificates

One quality assurance body for all, replacement of SETA – ETQA structure

The QCTO will function as the one and only quality assurance body for all trades and occupational quali-

fications, and will thus replace the ETQA function currently performed by 23 different SETAs. The SE-

TAs will therefore be able to focus their resources and support stronger on facilitating and enhancing

skills development within their respective sector.

The QCTO has the aim of becoming fully functional by April 2010. However, due to current political

developments the responsibility for the establishment and implementation of the QCTO has been trans-

ferred from the DoL to the Ministry of Higher Education and Training. This may lead to delays in the

process.

4.3 Organising Framework for Occupations (OFO)

As a starting point for the development of occupational qualifications, the QCTO analyses the relevant

occupations as listed in the Organizing Framework for Occupations (OFO), a skills-based coded

classification system for all trades, occupations and professions in South Africa.

The OFO captures all jobs in the form of occupations. Occupations are jobs grouped by similarity of

their tasks and skill specialisation. The OFO is constructed from the bottom-up by

Analysing jobs and identifying similarities in terms of tasks and skills

Categorising similar jobs into occupations

Classifying occupations into occupational groups at increasing levels of generality.

Based on skill level and skill specialisation, occupations are thus divided into Major (one digit), Sub-

Major (two digits), Minor (three digits), and Unit (four digits) groupings. Occupations (six di-

gits) are subdivisions of the unit groups and are further detailed through specialisation and alternative

occupation titles. Accordingly, the OFO is structured in the following way:

//35

Table 20 OFO Structure

OFO Structure

Major Groups (1 digit)

The broadest level of the classification – e.g. 3. Technicians and Trades Workers

Distinguished from each other on the basis of skill level and the broadest concept of skill specia-

lisation

Sub-Major Groups (2 digits)

Sub-divisions of major groups - e.g. 32. Automotive and Engineering Trades Workers

Distinguished from other sub-major groups on the basis of broadly stated skill specialisation

Minor Groups (3 digits)

Sub-divisions of sub-major groups – e.g. 323. Mechanical Engineering Trades Workers

Distinguished from other minor groups in the same sub-major group on the basis of less broadly

stated skill specialisation

Unit Groups (4 digits)

Sub-divisions of the minor groups – e.g. 3232 Metal Fitters and Machinists

Distinguished from other unit groups in the same minor group on the basis of a finer degree of

skill specialisation

Occupations (6 digits)

Sub-divisions of the unit groups – e.g. 323201 Fitter (General)

Distinguished from other occupations in the same unit group on the basis of detailed skill specia-

lisation

A set of jobs which involve the performance of a common set of tasks.

Adapted from DoL, 2009

National Occupational Pathways Framework (NOPF)

All occupations are further linked to the National Occupational Pathways Framework which demon-

strates Occupational Career Pathways and Progression at national level.

The purpose of the OFO is to enable labour market dialogue through the establishment of a common

language for talking about skills demand and supply. The purpose of using the OFO across the SETAs is

to ensure consistency in reporting and monitoring in order that trends can be identified and aggregated


//36

across economic sectors. In essence, it is the Department of Labour’s key tool for identifying, reporting and monitor-

ing skills demand and supply in the South African labour market.

The current OFO was based on the Australian and New Zealand Standard Classification of Occupations

(ANZSCO). Inputs from stakeholders in South Africa were used to adapt its content to the South African

context (DoL, 2009).

4.4 Occupational Qualifications and Curriculum Model

A key concept underlying the QCTO thinking is a revised and new curriculum model for the develop-

ment and quality assurance of occupational qualifications. It identifies skills, knowledge and tasks asso-

ciated with each occupation and the kind and scope of work experience required to become “work-

readiness”. Central to acquiring an occupational qualification is that learners will need to be assessed

competent in three areas of learning:

Table 21 Key Areas of Occupational Learning

Key Areas of Occupational Learning

Area Credit Allocation

Knowledge and theory component 20%

Practical skills component 20%

Work experience component 20%

As to be seen from above, the model values each of these components equally (20% of credits for each

component) and makes a structured work-experience for each learner a compulsory learning requirement.

Foundational learning component: In addition, all learners up to NQF Level 4 have to be assessed

competent in a national foundational learning component. This component replaces the previous funda-

mentals and will include Foundational Mathematical Literacy (FML) and Foundational Communications

(FC). For all qualifications above NQF level 4 this learning is assumed to be in place.

There are two types of occupational qualifications, which can be registered and awarded by the

QCTO, i.e. National Occupational Awards and National Occupational Skills Certificates.

Table 22 Occupational Qualifications

Occupational Qualifications

National Occupational Award Only to be developed on occupations level; several National

Occupational Skills Certificates can make up an award.

National Occupational

Skills Certificates

Smaller than an award; certifies additional learning (e.g.

specialisation) or learning that makes up an occupational

award. Minimum of 20 Credits.

//37

National external assessment

To attain the award/certificate all learning components have to be completed as well as a final national

external assessment passed as it is specified in the developed curriculum. Entry requirements for the

national external assessment are thus the following documents:

Table 23 Entry Requirements to Final External National Assessment

Entry Requirements to Final External National Assessment

Up to NQF Level 4 Above NQF Level 4

1) National Foundational Learning Certificate

2) Statements of results issued by training pro-

vider for:

Theory and knowledge

Practical skills

3) Logbook signed off by employer

Foundational learning assumed to be in place

1) Statements of results issued by training

provider for:

Theory and knowledge

Practical skills

2) Logbook signed off by employer

These documents replace the former Portfolio of Evidence (PoE).

Communities of Expert Practitioners (CEP)

All occupational qualifications will be developed by communities of expert practitioners (CEPs). Such

communities comprise expert practitioners from industries active, and with a vested interest in the partic-

ular occupation.

The process will be guided by an accredited curriculum development facilitator and follows a subse-

quent order of steps:


//38

Figure 2 Occupational Curriculum Development Process

This process will ensure that all relevant parties are involved in the development process and that the re-

sulting occupational curricula/qualifications are directly linked to labour-market skills needs. It aims to

increase the occupational competence, and hence future employability of learners.

//39

5 Key Terms and Abbreviations of the New System

The QCTO system comes with a number of new terms and abbreviations, which do require some further

explanation. The following table gives a quick overview of the most important ones:

Key Terms and Abbreviations of the New System

QCTO

Quality Council for Trades and Occupations

OFO

Organising Framework for Occupations

NOPF

National Occupational Pathway Framework

Development Quality Partner

The selected organisation/body/institution funding and managing the development process for an oc-cupational curriculum; building a database on CEPs; monitoring the necessity for revisions of the developed occupational curriculum

External Assessment Quality Partner

The selected organisation/body/institution con-ducting the national external assessment. Set indus-try standard for assessment; accredit assessment sites; develop a databank of question items; execute assessments

National Occupational Award

Developed on occupations level; several National Occupational Skills Certificates can make up an award.

National Occupational Skills Certificate

Smaller than an award; certifies additional learning (e.g. specialisation) or learning that makes up an occupational award. Minimum of 20 Credits.

Table 24 Key Terms and Abbreviations of the New System


//40

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Annex 1 New National Qualifications Framework

Figure 3 Figure 3 New National Qualifications Framework

German Development Service (DED) South Africa

PO Box 13 630, Hatfield 0028, Pretoria

Fon: +27(0)12 423 5900

Fax: +27(0)12 342 5521

Mail: [email protected]

http://www.ded.org.za

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