Issued by the Ministry of Labour
26 June 2001
Labour Minister Membathisi Mdladlana and Education1 Minister Kader Asmal today kick-started the learnership programme – a critical intervention intended to address the existing skills shortage and youth unemployment.
The launch today of the learnership programme is an attempt to address these issues and ensure the successful implementation of the government’s human resource development strategy.
The skills shortage in the country has been identified as a critical factor in determining the country’s competitiveness and ability to create jobs. The learnership programme is intended to encourage employers to lift the level of skills not only of their existing workers, but also of potential future recruits and would-be entrepreneurs by providing learning opportunities to the unemployed and those entering the job market for the first time.
The Skills Development Act, 1998 provides for employers to enter into learnership arrangements either with their own employees or the unemployed. A learnership is somewhat similar to the traditional apprenticeship system. Like apprenticeships, learnerships potentially prepare people for any occupation, but not only blue-collar trades. One of their most innovative features is that learnerships provide a bridge between vocational and professional training programmes.
Learnerships have huge benefits for all sectors of society ranging from employers to the employed and unemployed (especially the youth).
For employers, the learnership arrangement is a flexible and cost effective way of increasing the skills pool that will lead to productivity improvements. It provides employers with the opportunity of assessing a person’s suitability before they are permanently employed and ensures subsidised labour for a fixed duration.The Minister of Labour underlined the fact that a skilled worker is better able to deal with new technology, extract the benefit from new technology and cope with non-routine activities or challenges.
For workers already in employment, learnerships provide an opportunity to improve on existing skills base which may be a route to better promotion (or mobility) and improvements in income prospects as well as job satisfaction and increased job security. A higher skills base could also assist in laying the foundation for people to move into self-employment.
Learnerships are critical for young people entering the job market. The vast majority of matriculants, who are unable to pursue higher education, are faced with the daunting task of trying to get a job with no work experience.
During 2000, of the 489 941 pupils who wrote matric, only about 14% (68 626) passed with exemptions to enable them to enter universities or technikons.The remainder faced limited other options – either to pursue jobs in the formal/informal sector or life on the streets. Learnerships provide the unemployed and in particular young people with an opportunity to gain work experience and skills at the same time. The provision of a basic learning allowance will hopefully make this kind of learning accessible to the poor – and will ensure their transition to economic independence, through jobs or self-employment, considerably easier. Armed with meaningful, relevant skills, their chances of finding decent work, as opposed to poor quality jobs, are also enhanced.
The Labour Minister released three separate legal documents that together provide the legislative framework for learnerships. The first – the Funding Regulations 2001 – sets out the arrangements for Sector Education and Training Authorities (SETA) to allocate grants to employers, including grants for learnerships.One of the discretionary grants that a SETA can make is for the implementation of learnerships. An employer may be able to claim a grant towards the cost of a learnership and in the case of an unemployed person a contribution towards the learner allowance as well.
The second regulation – Learnership Regulations - sets out the way in which learnerships for new occupations can be developed, registered and become eligible for grants. This regulation requires SETAs, when registering a new learnership, to state the specific amount of grant to be paid to the employer for employed and previously unemployed learners.
SETAs are given the power to decide whether or not to pay the grants. This is in case the SETA does not have enough money for its levy revenue or in case the learnership does not contribute to the scarce skills in its sector. Employers will have to check with their SETA that it is willing to pay a grant before they start the training. SETAs have 30 days in which to respond.
The third and final legal document launched by the Minister of Labour is the Learnership Determination. This determination is being published by the Minister on advice of the Employment Conditions Commission, the body set up under the Basic Conditions of Employment Act. The sectoral determination sets conditions of employment and rates of allowances for learners. This determination will be binding on all employers and learners who enter learnership agreements. This determination stipulates that no learner can be paid less than a minimum allowance of R120 a week. This rate will increase depending on the type of learnership and the skills/qualifications acquired. The actual rate is calculated as a percentage of the wage paid to a person who has the qualification that the learnership is intended to provide.
The Minister of Labour stressed that the strategic value of learnerships for both labour and business is clear and would become more evident by the day. More and more new learnership programmes are being registered by SETAs with the Department.
SETAs in sectors critical to job creation such as hospitality and tourism are a long way down the road in registering learnership programmes – with titles ranging from car rental and event management through to tour guiding and receptionist. Two weeks ago saw the Wholesale and Retail SETA launch its first five learnerships including wholesale and retail management.Many more are expected to be launched ranging from basic entry-level skills to more skilled levels such as the Chartered Accountant: Audit Specialism proposed by the Financial and Accounting Services SETA.
In the Human Resources Development Strategy jointly launched by the Ministers of Education and Labour in April, the Ministers committed themselves to ensuring at least 3000 learners which be in learnerships by March 2002. The Minister of Labour set a target of 80 000 by March 2005 when he launched the department’s National Skills Development Strategy in February. These are ambitious targets but they reflect the level of commitment by the South African government to overcome the legacy of the past – to open the door of learning and work to all – and convince investors that our country is serious about growth.
The Ministers of Labour and Education are committed to ensure that this process achieves the ultimate objectives of the human resource development strategy- which seeks to increase the supply of higher quality skills and “maximise the potential of people through the acquisition of skills and knowledge”.
The Minister of Labour said the learnership launch was a timely and exciting development for the country and he urged employers, workers and education and training providers to commit themselves to a programme that will revolutionise South Africa’s skills, economy and prospects for its people
For more information contact:
Mr Eddie Jayiya
Ministerial Liaison Manager
083 676 3802
Executive Manager: Communications
Mr Eddie Mohoebi
083 680 4331