The recent reported failure by sectoral education and training authorities (Setas) to spend millions of rands allocated to them to deliver skills development and training mandates has given fresh impetus to calls to reduce their number from 23 to five.
Since their inception in 2000, the Setas have recorded few successes in addressing the skills weaknesses in the labour market. With a combined annual budget of R5-billion, the government punted them as primary drivers of its ambitious national skills development strategy to accelerate economic growth by 6% and to halt the galloping unemployment rate by 2014.
In a recent damning report 80% of the Setas failed to spend a total of R600-million in 2006/07. Seta representatives blamed this on the failure of their business constituencies to claim grants for training. Companies are levied a certain percentage, housed within the relevant Setas, which they can claim back through the provision of workplace skills training.
‘The surplus could be attributed to the fact that most employers in the construction industry are not training their employees, resulting in us sitting with a huge amount of money collected from skills levies,†Narius Moloto, of the construction education and training authority (Ceta), told City Press.
Joel Dikgole, of the wholesale and retail Seta, said: ‘Although an amount of R50-million was set aside for stipends to assist companies to employ qualified learners on a one-year contract, the response has been very disappointing.â€
Frustrated by their impotence, Labour Minister Mandisi Mdladlana engineered a review of the Setas. This culminated in the national industrial policy framework (NIPF), the crux of which was to cluster the Setas around five related sectors.
But Zolisa Sigabi, spokesperson for the labour ministry, said the roll-out of the mergers, including any other radical development relating to the Setas, would take effect only in March 2010 after the Setas had run their legal lifespan. ‘However,†she said, ‘this does not preclude the minister [of labour from] instituting specific changes to Setas based on poor performance or advice from the national skills authority as allowed by the law.â€
Sigabi said the fate of the incumbent chief executives and their staff would be dealt with in terms of ‘standard human resources policies and proceduresâ€. But she said it would be ‘wrong and premature to assume the Setas would be trimmed or enlarged in any manner until stakeholders have agreed through the Nedlac Seta review processâ€.
Mdladlana’s vision was endorsed by the ruling party’s resolution, taken during the recent Polokwane conference, which calls for a drastic reduction in Setas into a few mega institutions.
Hoosen Rasool, chief executive of the clothing and textile Seta, which is cited among those that failed to use their surpluses, disputed the view that Setas were sitting on the millions instead of using them to address skills shortages. ‘The unspent funds reflected in our audited financials are monies committed to a range of skills development projects that are currently in progress,†said Rasool.
Vic van Vuuren, chief operating officer of Business Unity South Africa (Busa), does not support mergers. He said it would be unfair to tar all Setas with the same brush.
‘The culprits are traditionally underperforming Setas, which have lost contact with their business constituencies,†said Van Vuuren.
Rasool said the problem was that no proper scientific evidence was proffered to back up the claim that downsizing would yield efficiency.
‘A worrying concern is that discussions around Seta mergers are taking place outside the context of a proper research or feasibility study. Without the benefit of a comprehensive policy impact assessment study, there is a real risk that the medication prescribed might well be worse than the disease,†said Rasool.