Date: 12/08/2004
Source: Ministry of Education
Title: N Pandor: Launch of BAT conference
ADDRESS BY THE MINISTER OF EDUCATION, NALEDI PANDOR MP, AT THE LAUNCH OF THE BAT CONFERENCE, Richards Bay, 12 August 2004
"SKILLS SHORTAGES IN THE CONSTRUCTION INDUSTRY"
Robert Guibault, General Manager, Hillside Alluminium
Distinguished Guests
Ladies and Gentlemen
Introduction
It is an unusual pleasure to be in Richards Bay addressing captains of Industry on educational matters. The focus of the conference on matters of productivity and technological advances is important and critical to our economy, but most critical is the important subject of skills development and the economic progress of South Africa.
I have been reliably informed that over the last 12 years BHP Billiton Aluminium division has implemented four mega projects in Southern Africa and in the process it has built capacity and created wealth for a wide range of persons living in the region.
Moreover, the integration of empowerment with the development of SME programmes on these projects has set an example to industry.
These successes are something to be proud of because they illustrate some of the forms of empowerment and partnership that the government has urged all to pursue.
Reflections on education are key indicators of a society's assessment of its progress. This is because education, training and skills development are key foundations of social and economic progress, and a primary precondition for addressing inequality and division in our society. While we have transformed the education and training system over the past ten years, much remains to be done in terms of consolidation and alignment of education in both the higher and further education bands with the needs of industry. Over the decade ahead, investment in the quality of education and promotion of work-related training opportunities will remain amongst the foremost priorities of government.
The Minister of Labour and I jointly lead the government's human resource development strategy.
Part of that strategy deals with scarce skills, which were identified using the results of commissioned research as well as data from the 25 sector skills plans from SETAs. The scarce skills identified are - and, yes, engineering is included - accounting, actuarial science, auditing, bio-informatics, biotechnology, chemistry, computer science, demography, earth sciences, engineering, financial management, information systems, management studies, mathematical sciences, microbiology, physics, tourism and transportation.
Consequently, we decided to fund bursaries to promote the qualification of students in these fields. The National Research Foundation funds postgraduate bursaries and the National Student Financial Aid Scheme funds undergraduate bursaries in the fields of science, engineering, computer science, information system, tourism management and commerce.
Demand
However, assessing the number of engineers, technologists, and artisans required by the construction industry is not a simple matter.
Recent studies reveal that the construction industry is set to spend close to a R100 billion on major projects over the next five years and that shortages of some skills could hamper their successful completion.
However, it appears that there are a number of studies that conflict with one another both in terms of interpretations of identical data and in terms of collecting conflicting information on skills that are in short supply.
Last year SASOL told the National Council on Innovation (NACI) that it forecast an undersupply of up to 60 per cent over the next three years in construction-related skills for new projects in industry. (1)
However, the recent Human Sciences Research Council's assessment of human resources in our country (Human Resource Review 2003: Education, Employment and Skills in South Africa) concluded: "there is currently little sign that there is a skills shortage of engineers. This is not surprising as engineering is not experiencing rapid growth". (2)
The study also indicated that the engineering profession still had some way to go in meeting our national aims for equity and redress.
It pointed out two significant trends in engineering employment since the end of apartheid. First, there has been a decline in employment in the military and mining sectors and a shift towards electrical and mining sectors. Second, engineers are now employed within the financial sector. This is a remarkable new development, because it appears that engineering analytical skills are in demand in financing itself and not simply for analysing the financing of large-scale construction projects.
Supply
The 2003 National Advisory Council on Innovation study - a copy of which was sent to my office prior to this engagement - reveals that the universities and technikons are responding to the demands for a transformed engineering industry.
This is a welcome development and the lead appears to have been taken by UCT and followed by other universities, although not in the exactly same format. The proportion of black and female engineering graduates has increased, the curriculum has been transformed and aligned with the needs of industry, the method of teaching modified to suit new students and all of this under the auspices of the academic development support programme and the employment of an education development officer. (3)
However, the complaint remains that the education system does not deliver enough adequately prepared mathematics and science students to universities and universities of technology.
But we have taken huge steps in overcoming this historical inadequacy through the participation of NGOs, provincial departments, and business.
One example of a public-private partnership is the Dineledi Schools. Meaning 'stars' in SeSotho, the Dineledi schools - sponsored by the Anglo American Chairman's Fund - have enabled learners from disadvantaged background to reach for the stars in Mathematics, Science and Technology. In the future, we can only hope to see more examples of corporate social investment in developing our most precious human resources.
And even though some tests of numeracy and literacy at grade 3, like the recent one in the Western Cape, were cause for alarm, a new assessment suggests that numeracy is beginning to show signs of improvement. (4)
So while there is improvement transformation and scientific success will only begin to show over time. There is no quick fix.
The problem of producing properly trained engineers does not appear to lie in higher education.
Mind you, we do have a problem with statistics. You might think that we know the cultural and disciplinary demography of the graduates we produce each year. Well we do not. And it is for this reason that the register of graduates needs to be completed with urgency. It is part of the government's programme of action.
No, the skills shortage problem lies elsewhere.
The National Advisory Council study estimated that the construction industry would be short of between 2,000 and 7,000 mechanical, electrical and instrumentation skilled artisans between 2003 and 2004.
And the report makes the following sober assessment of the current situation: "Non-alignment between industry and training.
Only 70 % of the industry training capacity is actually being utilised, and only 34 % of artisans from the FET system are finding employment in their fields of training. Unlike universities and technikons, where there are advisory boards with industry representation, there is no communication between the FET colleges and industry. As a result, these institutions are not aligned with industry needs.
"Limited communication between the construction industry and project owners: The business of the construction industry is highly cyclical in nature, making business forecasting very difficult. There is limited communication between project owners and the construction industry, leading to poor co-ordination and fluctuating peak demands. ... As a result of (the) unpredictable nature of the business, the construction industry is reluctant to train artisans, and also tends to maintain only a small permanent staff complement, opting to sub-contract skilled labour if and when required.
"An industry unattractive to school leavers. The construction industry is currently not attractive to school leavers, because of poor working conditions, high staff turnover and the current low levels of regard for the artisan profession, among other reasons. In Canada, by contrast, the profession is held in such a high esteem that it is normal for university graduates to train as artisans. South Africa needs a drive to make the industry united, competitive and hence world class. This would, in turn, serve to make the industry attractive to school leavers."(5)
The Education Department and the government take these three points extremely seriously. And they are the three points that we have undertaken to correct in our reconstruction of the further education and training colleges.
Our Plans for the further education and training colleges
As you may know, the government's action plan contains a commitment to recapitalise the further education and training colleges and to make sure that the courses they offer are aligned with the needs of industry.
We are on our way to creating a further education and training (FET) system ready to equip youth and adults to meet the social and economic needs of the 21st century.
We have restructured the further education and training college sector - from 152 single-campus colleges to 50 multi-campus colleges - in order to accelerate the development of medium- and high-level skills. We are currently developing a curriculum framework for colleges to meet these needs.
The evidence shows that the foundations have been laid for a new kind of college that will be able to meet the needs of industry and communities and to focus on the job creation and skills agenda that are key to South Africa's future success.
We are ready to meet the needs of a growing economy.
The transformation of the FET college sector, however, will have limited impact without the active participation of commerce and industry. We cannot succeed unless we work together. Your support of our FET colleges and institutions of higher education are critical in sustaining the drive towards ensuring that we have appropriately trained economically active citizens in all spheres and levels of our society.
Partnerships are crucial to the success of these colleges. The business community has already invested heavily in restructuring existing colleges. Both at the leadership and operational levels business has valuable skills, expertise, and experience to offer that can help to raise the college sector to a new level of relevance, responsiveness and quality. In turn, the colleges can support business by delivering the education and training, including the learnerships and skills programmes that employers and the labour market need.
Close
In conclusion, let me once again affirm our commitment towards skills development and supporting the growth of the economy and thus ensuring that a better life for all our people is achieved.
(1) National Advisory Council on Innovation, "The Potential Impact of Skills Shortages on the Innovative Capacity of Major Capital Engineering Projects", October 2003, p. 11.
(2) Media release 2004 HRD Review fact sheet 8, "Is there a shortage of engineers in South Africa"?
(3) DM Fraser, "Coping with a Diverse Student Body in Engineering Education", UCT, Centre for Engineering Education, 2003.
(4) Matthews Makgamatha, Nicolaas Claassen and Xola Mati, "Grade 3 improvement programme shows results", HSRC Review July 2004. "An intensive education improvement programme has started bearing fruit after its second year of operation, according to the results of numeracy and literacy tests administered last year to about 14 000 Grade 3 learners from 461 participating schools. The programme is conducted in collaboration with the Department of Education and the provincial departments of education in the Eastern Cape, KwaZulu-Natal, Northern Cape and Northern Province."
(5) National Advisory Council on Innovation, "The Potential Impact of Skills Shortages on the Innovative Capacity of Major Capital Engineering Projects", October 2003, pp. 56-57.
Issued by: Ministry of Education
12 August 2004
Source: Department of Education (http://education.pwv.gov.za)
Source: Ministry of Education
Title: N Pandor: Launch of BAT conference
ADDRESS BY THE MINISTER OF EDUCATION, NALEDI PANDOR MP, AT THE LAUNCH OF THE BAT CONFERENCE, Richards Bay, 12 August 2004
"SKILLS SHORTAGES IN THE CONSTRUCTION INDUSTRY"
Robert Guibault, General Manager, Hillside Alluminium
Distinguished Guests
Ladies and Gentlemen
Introduction
It is an unusual pleasure to be in Richards Bay addressing captains of Industry on educational matters. The focus of the conference on matters of productivity and technological advances is important and critical to our economy, but most critical is the important subject of skills development and the economic progress of South Africa.
I have been reliably informed that over the last 12 years BHP Billiton Aluminium division has implemented four mega projects in Southern Africa and in the process it has built capacity and created wealth for a wide range of persons living in the region.
Moreover, the integration of empowerment with the development of SME programmes on these projects has set an example to industry.
These successes are something to be proud of because they illustrate some of the forms of empowerment and partnership that the government has urged all to pursue.
Reflections on education are key indicators of a society's assessment of its progress. This is because education, training and skills development are key foundations of social and economic progress, and a primary precondition for addressing inequality and division in our society. While we have transformed the education and training system over the past ten years, much remains to be done in terms of consolidation and alignment of education in both the higher and further education bands with the needs of industry. Over the decade ahead, investment in the quality of education and promotion of work-related training opportunities will remain amongst the foremost priorities of government.
The Minister of Labour and I jointly lead the government's human resource development strategy.
Part of that strategy deals with scarce skills, which were identified using the results of commissioned research as well as data from the 25 sector skills plans from SETAs. The scarce skills identified are - and, yes, engineering is included - accounting, actuarial science, auditing, bio-informatics, biotechnology, chemistry, computer science, demography, earth sciences, engineering, financial management, information systems, management studies, mathematical sciences, microbiology, physics, tourism and transportation.
Consequently, we decided to fund bursaries to promote the qualification of students in these fields. The National Research Foundation funds postgraduate bursaries and the National Student Financial Aid Scheme funds undergraduate bursaries in the fields of science, engineering, computer science, information system, tourism management and commerce.
Demand
However, assessing the number of engineers, technologists, and artisans required by the construction industry is not a simple matter.
Recent studies reveal that the construction industry is set to spend close to a R100 billion on major projects over the next five years and that shortages of some skills could hamper their successful completion.
However, it appears that there are a number of studies that conflict with one another both in terms of interpretations of identical data and in terms of collecting conflicting information on skills that are in short supply.
Last year SASOL told the National Council on Innovation (NACI) that it forecast an undersupply of up to 60 per cent over the next three years in construction-related skills for new projects in industry. (1)
However, the recent Human Sciences Research Council's assessment of human resources in our country (Human Resource Review 2003: Education, Employment and Skills in South Africa) concluded: "there is currently little sign that there is a skills shortage of engineers. This is not surprising as engineering is not experiencing rapid growth". (2)
The study also indicated that the engineering profession still had some way to go in meeting our national aims for equity and redress.
It pointed out two significant trends in engineering employment since the end of apartheid. First, there has been a decline in employment in the military and mining sectors and a shift towards electrical and mining sectors. Second, engineers are now employed within the financial sector. This is a remarkable new development, because it appears that engineering analytical skills are in demand in financing itself and not simply for analysing the financing of large-scale construction projects.
Supply
The 2003 National Advisory Council on Innovation study - a copy of which was sent to my office prior to this engagement - reveals that the universities and technikons are responding to the demands for a transformed engineering industry.
This is a welcome development and the lead appears to have been taken by UCT and followed by other universities, although not in the exactly same format. The proportion of black and female engineering graduates has increased, the curriculum has been transformed and aligned with the needs of industry, the method of teaching modified to suit new students and all of this under the auspices of the academic development support programme and the employment of an education development officer. (3)
However, the complaint remains that the education system does not deliver enough adequately prepared mathematics and science students to universities and universities of technology.
But we have taken huge steps in overcoming this historical inadequacy through the participation of NGOs, provincial departments, and business.
One example of a public-private partnership is the Dineledi Schools. Meaning 'stars' in SeSotho, the Dineledi schools - sponsored by the Anglo American Chairman's Fund - have enabled learners from disadvantaged background to reach for the stars in Mathematics, Science and Technology. In the future, we can only hope to see more examples of corporate social investment in developing our most precious human resources.
And even though some tests of numeracy and literacy at grade 3, like the recent one in the Western Cape, were cause for alarm, a new assessment suggests that numeracy is beginning to show signs of improvement. (4)
So while there is improvement transformation and scientific success will only begin to show over time. There is no quick fix.
The problem of producing properly trained engineers does not appear to lie in higher education.
Mind you, we do have a problem with statistics. You might think that we know the cultural and disciplinary demography of the graduates we produce each year. Well we do not. And it is for this reason that the register of graduates needs to be completed with urgency. It is part of the government's programme of action.
No, the skills shortage problem lies elsewhere.
The National Advisory Council study estimated that the construction industry would be short of between 2,000 and 7,000 mechanical, electrical and instrumentation skilled artisans between 2003 and 2004.
And the report makes the following sober assessment of the current situation: "Non-alignment between industry and training.
Only 70 % of the industry training capacity is actually being utilised, and only 34 % of artisans from the FET system are finding employment in their fields of training. Unlike universities and technikons, where there are advisory boards with industry representation, there is no communication between the FET colleges and industry. As a result, these institutions are not aligned with industry needs.
"Limited communication between the construction industry and project owners: The business of the construction industry is highly cyclical in nature, making business forecasting very difficult. There is limited communication between project owners and the construction industry, leading to poor co-ordination and fluctuating peak demands. ... As a result of (the) unpredictable nature of the business, the construction industry is reluctant to train artisans, and also tends to maintain only a small permanent staff complement, opting to sub-contract skilled labour if and when required.
"An industry unattractive to school leavers. The construction industry is currently not attractive to school leavers, because of poor working conditions, high staff turnover and the current low levels of regard for the artisan profession, among other reasons. In Canada, by contrast, the profession is held in such a high esteem that it is normal for university graduates to train as artisans. South Africa needs a drive to make the industry united, competitive and hence world class. This would, in turn, serve to make the industry attractive to school leavers."(5)
The Education Department and the government take these three points extremely seriously. And they are the three points that we have undertaken to correct in our reconstruction of the further education and training colleges.
Our Plans for the further education and training colleges
As you may know, the government's action plan contains a commitment to recapitalise the further education and training colleges and to make sure that the courses they offer are aligned with the needs of industry.
We are on our way to creating a further education and training (FET) system ready to equip youth and adults to meet the social and economic needs of the 21st century.
We have restructured the further education and training college sector - from 152 single-campus colleges to 50 multi-campus colleges - in order to accelerate the development of medium- and high-level skills. We are currently developing a curriculum framework for colleges to meet these needs.
The evidence shows that the foundations have been laid for a new kind of college that will be able to meet the needs of industry and communities and to focus on the job creation and skills agenda that are key to South Africa's future success.
We are ready to meet the needs of a growing economy.
The transformation of the FET college sector, however, will have limited impact without the active participation of commerce and industry. We cannot succeed unless we work together. Your support of our FET colleges and institutions of higher education are critical in sustaining the drive towards ensuring that we have appropriately trained economically active citizens in all spheres and levels of our society.
Partnerships are crucial to the success of these colleges. The business community has already invested heavily in restructuring existing colleges. Both at the leadership and operational levels business has valuable skills, expertise, and experience to offer that can help to raise the college sector to a new level of relevance, responsiveness and quality. In turn, the colleges can support business by delivering the education and training, including the learnerships and skills programmes that employers and the labour market need.
Close
In conclusion, let me once again affirm our commitment towards skills development and supporting the growth of the economy and thus ensuring that a better life for all our people is achieved.
(1) National Advisory Council on Innovation, "The Potential Impact of Skills Shortages on the Innovative Capacity of Major Capital Engineering Projects", October 2003, p. 11.
(2) Media release 2004 HRD Review fact sheet 8, "Is there a shortage of engineers in South Africa"?
(3) DM Fraser, "Coping with a Diverse Student Body in Engineering Education", UCT, Centre for Engineering Education, 2003.
(4) Matthews Makgamatha, Nicolaas Claassen and Xola Mati, "Grade 3 improvement programme shows results", HSRC Review July 2004. "An intensive education improvement programme has started bearing fruit after its second year of operation, according to the results of numeracy and literacy tests administered last year to about 14 000 Grade 3 learners from 461 participating schools. The programme is conducted in collaboration with the Department of Education and the provincial departments of education in the Eastern Cape, KwaZulu-Natal, Northern Cape and Northern Province."
(5) National Advisory Council on Innovation, "The Potential Impact of Skills Shortages on the Innovative Capacity of Major Capital Engineering Projects", October 2003, pp. 56-57.
Issued by: Ministry of Education
12 August 2004
Source: Department of Education (http://education.pwv.gov.za)
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