Caleb Mabaso

“Skills Revolution”

Attending the Labour Portfolio Committee last week got me thinking about the role of SETA’s in our society. The public debate has been raging on whether these institutions are relevant and effective. Based on the acute skills shortages in the country, the first question becomes relatively easy to respond to. It is the question about effectiveness that merits further debate.

The questioning by portfolio committee signaled a clear progression on how government intends assessing these establishments in the future. Throught no fault of these institutions, it was in most instances not easy to provide information that was asked of them.
SETA’s are used to reporting on numbers which in most instances do not readily provide comfort that we are indeed winning the war against skills shortages – which is one of the main contributor to the unemployment challenge that we have. This kind of reporting is in line with the Service Level Agreement signed with the Executive Authority.
This time the questions were very qualitative, requiring of these institutions to think differently and broadly about their mandate. The central enquiry to all the SETA’s was what ‘have they done to transform the lives of the people of this country?
I am encouraged by this shift and have no doubt it will effect a mind-set change that will compel officials of these institutions to broaden their thinking on their mandate!

The other issue that becomes central in the discussion about sustainability of the SETA’s is the funding model. In terms of the act, companies with a payroll of over R500k/year are required to pay a Skills Development Levy. Most (80%) of these funds are channeled to the relevant SETA’s and that is how SETA’ survive. Problem with this model, is when you find some industries (like the one I represent) that are largely SMME-driven. In our industry, over 90% of the businesses are SMME’s -most of which do not pay skills development levies. The organizations that badly need assistance from SETA’s, are by design not the key focus of the SETA’s – this situation surely needs reviewing!!

The composition and appointment of the directors of these institutions might also merit some discussion. Currently board appointments are based on propotional representation between business and labour. Thought not faulty in itself, would it not result in improved cohesion if these were appointed and represent the shareholder. The concern is mainly about mandate – do this individuals operate on the mandate of their constituencies or that of the shareholder (government in this instance). Ideally the interests of these parties should be the same, but are they?

Caleb Mabaso
Chairman : Federated Hospitality Association of Southern Africa (Fedhasa) Inland