Changing the face of business

Friday, 27 November 2009 09:46

Collaboration between Setas, the Department of Labour and the Commission for Conciliation, Mediation and Arbitration (CCMA), has resulted in the development of the Training Layoff Scheme

"Desperate times call for desperate measures” is the adage to the credit crunch, and countless initiatives have been introduced across the world seeking solutions for survival.
International alliances, stimulus packages, governmental rescue plans, production cutbacks, restructuring, retrenchments, voluntary separations, bonus cuts and salary sacrifices became the new agenda in the 2009 business reality.

The South African government is primarily concerned with reversing the rising trend in unemployment, but for many corporate leaders, ensuring the survival of their firms takes precedence over saving jobs.

The difficult decision they face is not whether to cut, but how to do so in a way that strengthens their competitive position rather than damages it.

Organisations constantly try to find the right people with the right skills, to do the right things at the right time in achieving desired business results. This requires an ongoing process of identifying talent, planning for talent, attracting and finding new talent, developing talent, and retaining the best people in the company.

Some employers admit the crisis is giving them a chance to restructure their firms and now have the opportunity to shed poor performers and hire talent from outside in what is presently a buyer’s market. Firms identify which workers to keep, and do everything in their power to retain them, discussing innovative and pragmatic approaches to further development.

Sector Education and Training Authorities (Setas) play a useful role within this process, working with firms to smooth the movement of labour by providing skills training and financial incentives to workers.

In order to retain skills and to protect workers from losing their employment benefits, the Department of Labour and the Commission for Conciliation, Mediation and Arbitration (CCMA), in consultation with the Setas, have developed a Training Layoff Scheme as a way of reducing potential retrenchments in all industries in South Africa.

According to the CCMA, the scheme can be defined as a temporary suspension of a worker, or group of workers, which is used for training purposes.

The Mining Qualifications Authority (MQA) is one of eight Setas that has been requested to participate in the implementation of the scheme. The project is expected to receive support from employers, as it will provide a possible alternative to retrenchment. “This scheme is the first of its kind that government has launched and we have designed its implementation to be as simple as possible,” said Ebrahim Patel, Minister of Economic Development.

The Manufacturing, Engineering and Related Services Seta (merSETA) and the Construction Seta (CETA) are establishing programmes of driving skills development beyond 2010, focusing on issues of human capital development and the delivery of training and development.

South Africa currently produces approximately 10 000 artisans a year, and while merSETA has the funding for this training, the challenge is to attain funding for future training and to assist organisations and employers to provide support to trained artisans.

Skills training programmes invariably are linked to production processes and economic systems, and the starting point for addressing these is fundamental to the reconstruction of the entire economic and political system.

merSETA also implemented the Retrenchment Assistance Plan, with the aim to prevent job losses and a decline in unemployment where possible; and if retrenchments are unavoidable, to manage large-scale retrenchment and reduce its effects on individuals, companies and local economies.

merSETA’s assistance rests on existing and ongoing projects and programmes, with one of the initiatives being Special Project grants for innovative company and sector-specific interventions.

It is recognised that different companies and sectors have their own dynamics and imperatives, and a flexible approach that recognises these will be followed in assessing project proposals from companies.

In addition, costs not directly associated with training such as incubation, land and management are considered under a multi-party approach, including internal work security funds and development finance.

CETA’s primary objective is to boost the course of training and skills development in the construction sector. Various skills development projects and learnership programmes are initiated with a view to developing a pool of skilled and motivated construction workforce whose skills are recognised and valued in terms of the National Qualifications Framework.

CETA ensures that effective and efficient control measures are not only put into place, but adhered to in all processes.

Intensive on-site training and classroom instruction projects are rolled out in every province in South Africa with education and training programmes targeting delivery of qualified construction contractors and formal qualifications for men and women within the construction industry.

Across the board, Setas enabled the ‘triple agenda’, which entails deconstruction, reconstruction and regeneration, establishing links between institutions, government and community.

This is a perpetual challenge: markets have changed, strategy has changed, and organisations change, and are required to have a far more focused and flexible workforce established through growth strategies, innovation, mergers, skills transformation, regulatory adoption and human capital right-sizing.

Rizel Delano

Comments (0)

< Prev		Next >

Endorsed by

In stores now

opps_mag_fa_print_hr-250